Pleasant Hill City Council
February 26, 2024

CITY OF PLEASANT HILL

CITY COUNCIL MEETING AGENDA
FEBRUARY 26, 2024
REGULAR MEETING – 7:00 PM
Watch on YouTube at: www.pleasanthillca.org/councilmeeting The public meeting of the City Council will be held in person at City Hall, 100 Gregory Lane, Pleasant Hill, CA 94523.

A Zoom link is provided herewith as a courtesy, but members of the public are advised that they will only have the option to participate via teleconference using the Zoom platform in the event that a member of the legislative body is approved to attend remotely pursuant to the provisions of Assembly Bill 2449. Meeting link: www.zoom.us; Meeting ID: 890 6865 3148; Passcode: 387557 For information on Public Participation Options see below.

City Council Meeting Agenda Page 1 February 26, 2024
Council Chambers, 100 Gregory Lane, Pleasant Hill, CA 94523 Telephone (925) 671-5267

MAYOR MATTHEW RINN COUNCILMEMBER TIMOTHY FLAHERTY

VICE MAYOR SUE NOACK COUNCILMEMBER ZAC SHESS

COUNCILMEMBER ALLEN VINSON
Options for observing the meeting and participating in public comment are provided below.

Public Communication. The public is welcome to address the City Council on items on the Consent Calendar or other items not listed on the agenda but within the Council’s jurisdiction during the general Public Comment period. There is an opportunity for the public to comment on other agenda items at the time they are discussed.

Comments are generally limited to two minutes.

Public Participation Options
1) Watch the Meeting via Youtube Livestream at www.pleasanthillca.org/councilmeeting. 2) Submit Written Comments by 4 pm the Day of the Meeting to [email protected] (comments received by deadline will be provided to the City Council before the meeting). Please specify that the correspondence is for public comment at the Council meeting. 3) Make Public Comment During the Meeting
When the Mayor invites public comment (or public comments on specific agenda items), members of the public may attend the meeting in person and may speak on any matter within the City Council's jurisdiction.

Please fill out a speaker's card, available at the entry to the Council Chambers, and turn it in to the City Clerk.

If, due to a disability, a reasonable accommodation is needed to participate in this meeting, please refer to the Providing Accessible Communication to the Public Under the Americans with Disabilities Act and AB 2449 document online at www.pleasanthillca.org/accessiblecommunications and contact the ADA Coordinator 48 hours in advance of the meeting at (925) 671-5267 or via California Relay at 711.

City Council Meeting Agenda Page 2 February 26, 2024
Materials related to an item on this agenda submitted to the Council after distribution of the agenda packet are available to the public in the City’s Public Records Portal at https://cityarchive.pleasanthillca.org/WebLink/ (click on City Council Agenda Packets) or by contacting the City Clerk at [email protected] or 925-671-5267.

City Council Meeting Recordings and Broadcasts.

Recorded City Council meetings are broadcast on Comcast Channel 28, Wave Channel 1029, and AT&T UVerse Channel 99 on the Wednesday following the meeting. Video recordings are generally available within 48 hours of the meeting, and may be viewed on the City’s website at www.pleasanthillca.org/MeetingVideos and selecting “City Council” from the meeting groups.

Agendas are Available for Review on the City Hall official noticing bulletin board (100 Gregory Lane), at the Pleasant Hill Police Department (330 Civic Drive), the Pleasant Hill Senior Center (233 Gregory Lane), and on the City’s website at www.pleasanthillca.org/agendas. Agenda packets will be available to the public on the City’s website at the same time as they are made available to the City Council.

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL

4. CLOSED SESSION REPORT

5. PRESENTATIONS

5.1 Introduction of Traffic Safety Commissioner Paul Maxwell

5.2 Proclamation Designating March 2, 2024 as Pleasant Hill Baseball Association (PHBA) Day

5.3 Proclamation Designating the Month of February as Black History Month

5.4 2024 Summer Concert Series Update

6. CITY MANAGER COMMENTS:
(Brief updates on pending City business without discussion by the City Council.)

7. COUNCIL ANNOUNCEMENTS AND REPORTS

7.1 Reports from Councilmembers on Meetings or Conferences Attended at City Expense

7.2 Announcements from Councilmembers

8. PUBLIC COMMENT:

The public is welcome at this time to address the City Council on items on the Consent Calendar or other items not listed on the agenda but within the Council’s jurisdiction. There is an opportunity for the public to comment on other agenda items at the time they are discussed.

Comments are limited to two minutes per speaker. To provide public comments, please see the Public Participation Options above.

City Council Meeting Agenda Page 3 February 26, 2024

9. CONSENT CALENDAR: All matters listed under “Consent Calendar” are considered by the Council to be routine and will be enacted by one motion. There will be no separate Council discussion of these items unless requested by a Councilmember prior to the time Council votes on the motion to adopt.

9.1 Approve Minutes for the Regular City Council Meeting of February 5, 2024

9.2 Approve Checks Dated: February 02, 2024; February 09, 2024; February 16, 2024

9.3 Approve Appointment Recommendations to the Civic Action Commission and Diversity Commission

9.4 Accept Update on Contra Costa Transportation Authority and TRANSPAC

9.5 Adopt Resolution No. ___-24 Approving an Additional Contribution to the Public Agencies Post-Employment Benefits Trust Program with Public Agency Retirement Services (PARS) Section 115 Trust

9.6 Adopt Resolution No. ___- 24 Authorizing the City Manager to Execute a Change Order With Kerex Engineering, Inc. for the Taylor Boulevard Improvements Project (Civic Drive To Ruth Drive), Project No. 01-23

9.7 Adopt Resolution No. ___-24 Authorizing the City Manager to Execute a Side Letter of Agreement Between the City of Pleasant Hill and the Management Pay Plan (MPP) Adding the Classification Public Works Director to the Plan

10. ACTION CALENDAR

10.1 Adopt Resolution No. ___-24 Authorizing the City Manager to Execute a Professional Services Agreement with Harris & Associates for Assessment Engineering Services for a Proposed Assessment Rate Increase for Assessment District 20 and Assessment District 22

10.2 Accept the Audited Annual Comprehensive Financial Report, Measure K Fund Report, and the Management Letter for the Fiscal Year Ended June 30, 2023

10.3 Receive Conceptual Design Options and Provide Direction to Staff for the City Hall Pond, Fountain, Plaza Paving, and Donor Memorial Rehabilitation Project

10.4 Adopt Resolution No. ___-24 Authorizing the City Manager to Execute a Funding Agreement Between The Contra Costa Transportation Authority (CCTA) and the City of Pleasant Hill for Cost Sharing Commitments to Design and Construct the CCTA Countywide Smart Signals Project
Exempt pursuant to Sections 21080.20 and 21080.25 of the California Public Resources Code

11. ADJOURNMENT
Next City Council Meeting: March 18, 2024

CITY COUNCIL STAFF REPORT
Meeting Date: February 26, 2024
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: APPROVE MINUTES FOR THE REGULAR CITY COUNCIL MEETING OF FEBRUARY 5, 2024

RECOMMENDED CITY COUNCIL ACTION
Approve the minutes.

ATTACHMENT(S):

February 5, 2024 – Tentative Minutes
Prepared by: Lyone Conner, City Clerk

9.1 Packet Pg. 4

MINUTES OF THE
REGULAR MEETING – CITY COUNCIL
February 5, 2024
City Council Meeting Minutes Page 1 January 22, 2024
Mayor Rinn called a Regular Meeting of the City Council to order at 7:00 PM, in the Council Chambers, 100 Gregory Lane, Pleasant Hill, CA, complete proceedings of which were electronically recorded. The meeting agenda was posted on the City Hall outdoor bulletin board at 100 Gregory Lane, Pleasant Hill, CA on February 2, 2024, by City Clerk Lyone Conner.

1. CALL TO ORDER

2. PLEDGE OF ALLEGIANCE

3. ROLL CALL
Attendee Name Title Status
Matthew Rinn Mayor Present
Sue Noack Vice Mayor Absent
Timothy M. Flaherty Councilmember Present
Allen Vinson Councilmember Present
Zac Shess Councilmember Present

4. CLOSED SESSION REPORT
Mayor Rinn reported that there was no closed session this evening, and there is nothing to report.

5. PRESENTATIONS

5.1 Introduction of Education Commissioner Anne Launt
Councilmember Flaherty introduced Anne Launt, who was appointed to the Education Commission in October 2023.

Commissioner Launt expressed appreciation to the Council.

5.2 Update on Pleasant Hill Recreation and Park District Programs Michelle Lacy, General Manager of the Pleasant Hill Recreation and Park District, provided an update on the District’s programs and facilities, General Manager Lacy responded to questions from the City Council.

Mayor Rinn and Councilmember Vinson thanked Rec and Park for their services and congratulated them on their improvements.

6. CITY MANAGER COMMENTS
Ethan Bindernagel, City Manager, reported that:
• City staff from the Maintenance Division and Police Department responded appropriately and in a timely fashion to keep roadways clear of fallen trees from the recent storm event.

9.1.a
Packet Pg. 5
Attachment: February 5, 2024 – Tentative Minutes (Minutes) City Council Meeting Minutes Page 2 February 5, 2024
• Pleasant Hill employees, along with staff from Pleasant Hill Rec and Park, and volunteers from the Community Emergency Response Team (CERT) participated in an emergency disaster response simulation at the Pleasant Hill Police Department. • The City of Pleasant Hill will move to a by-district election process in November 2024. Residents may look up their district using a mapping tool located at www.pleasanthillca.org/mydistrict.
• City Hall will be closed on Monday, February 12, 2024, in observance of President Lincoln’s birthday.

7. COUNCIL ANNOUNCEMENTS AND REPORTS

7.1 Reports from Councilmembers on Meetings or Conferences Attended at City Expense
Mayor Rinn, as well as Councilmembers Flaherty and Shess reported their attendance at Pleasant Hill’s State of the City, Mayor’s Breakfast.

Mayor Rinn and Councilmember Shess reported their attendance at the Mayor’s Conference in El Cerrito, CA.

Mayor Rinn clarified voting options for Non-Party Preference voters, as described by Contra Costa County Clerk Recorder Kristin Connelly at the Mayor’s Conference.

7.2 Announcements from Councilmembers
Councilmember Vinson reported his attendance at the Martinez, CA Loaves and Fishes Kitchen.

Mayor Rinn and Councilmember Shess announced the invitation of a Superbowl challenge with the City of Pleasant Hill, MO.

Mayor Rinn, along with Councilmembers Flaherty, Shess, and Vinson reported their attendance at the College Park High School Crab Feed.

Mayor Rinn congratulated College Park High School’s alumni, Natalie Gonzales, on winning a Grammy Award. Mayor Rinn reported his attendance as a speaker at the Carrington College Graduation Ceremony.

8. PUBLIC COMMENT
Mayor Rinn opened public comment.

There were no comments from the public.

Mayor Rinn closed public comment.

9.1.a
Packet Pg. 6
Attachment: February 5, 2024 – Tentative Minutes (Minutes) City Council Meeting Minutes Page 3 February 5, 2024

9. CONSENT CALENDAR
Motion (Flaherty/Vinson) to Approve all consent items, carried as follows:

AYES: Flaherty, Shess, Vinson, Rinn
ABSENT: Noack

9.1 Approve Minutes for the Regular City Council Meeting of January 22, 2024

9.2 Approve Checks Dated: January 19, 2024; January 26, 2024

9.3 Approve Appointment Recommendations to the Contra Costa County Aviation Advisory Committee, Contra Costa County Iron Horse Corridor Advisory Committee and the Traffic Safety Commission

9.4 Adopt Resolution No. 7-24 Authorizing an Increase in Salary for Diablo Vista Water System Operating Personnel, Including the Chief Engineer, Engineer, Secretary and Dispatcher

9.5 Adopt Resolution No. 8-24 Amending the Conflict of Interest Code and Rescinding Resolution No. 1-22

9.6 Adopt Resolutions No. 9-24 with TRB and Associates and No. 10-24 with WC3, Inc., Each Authorizing the City Manager to Execute Professional Services Agreements to Provide Permit Technician, Plan Review, and Inspection Services

9.7 Adopt Resolution No. 11-24 Approving the Pleasant Hill Recreation and Park District Event Sponsorship Proposal for Calendar Year 2024

9.8 Adopt Resolution No. 12-24 Approving Continued Participation in the Stormwater Pollution Management Utility District and Authorizing the Contra Costa County Flood Control and Water Conservation District to Adopt the Fiscal Year 2024/25 Stormwater Utility Area Fee for the City of Pleasant Hill

9.9 Adopt Resolutions No. 13-24 with Schaaf & Wheeler and No. 14-24 with Wood Rogers, Each Authorizing the City Manager to Execute Professional Services Agreements to Provide Hydrologic, Hydraulic, and Stormwater On-Call Engineering Services

10. ACTION CALENDAR

10.1 Adopt Resolution No. 15-24 Accepting Funds and Authorizing Expenditures from the California Supplemental Law Enforcement Services Account (SLESA) Lieutenant (Lt.) Leonard of the Pleasant Hill Police Department (PD) introduced the item and delivered a presentation on the proposed expenditures of the SLESA funds.

9.1.a
Packet Pg. 7
Attachment: February 5, 2024 – Tentative Minutes (Minutes) City Council Meeting Minutes Page 4 February 5, 2024
Pleasant Hill PD Chief, Scott Vermillion, and Lt. Leonard answered questions posed by Councilmembers.

No one from the public spoke on the item.

Motion (Flaherty/Shess) to Approve item 10.1, carried as follows:

AYES: Flaherty, Shess, Vinson, Rinn
ABSENT: Noack

10.2 Adopt Resolution No. 16-24 Accepting the Oak Park Boulevard Sidewalk Gap Closure Project No. 04-23 as Complete and Authorizing the City Engineer to Issue and Record a Notice of Completion and Authorizing a Transfer of Project Savings to the Measure K Fund
Omar Adina, City of Pleasant Hill Assistant Engineer, delivered a presentation on the details of the Oak Park Boulevard completed construction project.

Mr. Adina answered questions posed by Councilmembers.

No one from the public spoke on the item.

Motion (Flaherty/Vinson) to Approve item 10.2, carried as follows:

AYES: Flaherty, Shess, Vinson, Rinn
ABSENT: Noack

11. ADJOURNMENT
Mayor Rinn adjourned the meeting at 8:05 p.m. The next Regular City Council meeting will be held on Monday, February 26, 2024, beginning at 7:00 p.m.

LYONE P. CONNER, CITY CLERK

9.1.a
Packet Pg. 8
Attachment: February 5, 2024 – Tentative Minutes (Minutes)

CITY COUNCIL STAFF REPORT
Meeting Date: February 26, 2024
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: APPROVE CHECKS DATED: FEBRUARY 02, 2024; FEBRUARY 09, 2024; FEBRUARY 16, 2024

RECOMMENDED CITY COUNCIL ACTION
Approve the check register.

ATTACHMENT(S):

Check Register
Prepared by: Maria Alfredo, Accounting Technician I
Approved by: Erick Cheung, Finance Manager

9.2 Packet Pg. 9
2/5/2024 10:21:01 AM Page 1 of 7
Expense Approval Report
Pleasant Hill, CA By Vendor Name
Payment Dates 2/2/2024 - 2/2/2024
Vendor Name Payable Number Post Date Description (Item) Account Number Payment Number Payment Date Amount Vendor: ADV13 - ADVANCED CONSTRCUTION SUPPLY
ADVANCED CONSTRCUTION … 1340 02/02/2024 PERMA PATCH-25 BAGS (60L… 101-5097-0000-650023 342791 02/02/2024 736.08 Vendor ADV13 - ADVANCED CONSTRCUTION SUPPLY Total: 736.08 Vendor: AMA05 - AMAZON CAPITAL SERVICES
AMAZON CAPITAL SERVICES 1QP4-7DHL-1Y6N 02/02/2024 2 BOTTLES OF HONEY FOR PH…101-1016-0000-660016 342792 02/02/2024 20.97 Vendor AMA05 - AMAZON CAPITAL SERVICES Total: 20.97
Vendor: AVS20 - AV STRUCTURAL, INC.

AV STRUCTURAL, INC. 2024-2049 02/02/2024 AV UPDATE IN PHPD TRAINI… 402-2001-0000-710844 342793 02/02/2024 19,050.15 Vendor AVS20 - AV STRUCTURAL, INC. Total: 19,050.15
Vendor: 10028 - BINDERNAGEL, ETHAN
BINDERNAGEL, ETHAN 240202 02/02/2024 PER DIEM-LEAGUE OF CAL CI… 101-1005-0000-640021 342794 02/02/2024 185.00 Vendor 10028 - BINDERNAGEL, ETHAN Total: 185.00
Vendor: BMO23 - BMO BANK N.A. COMMERCIAL CARD
BMO BANK N.A. COMMERCI… 240202 02/02/2024 STMT DATED 12/28/23 ACCT… 101-200030 342795 02/02/2024 27,942.55 BMO BANK N.A. COMMERCI… 240202A 02/02/2024 STMT DATED 1/28/23 ACCT … 101-200030 342795 02/02/2024 17,947.00 Vendor BMO23 - BMO BANK N.A. COMMERCIAL CARD Total: 45,889.55 Vendor: CAL51 - CALTRONICS C/O JJR ENTERP
CALTRONICS C/O JJR ENTERP 3981881 02/02/2024 COPIER MAINT FOR PD AND … 401-1012-0000-650031 342796 02/02/2024 717.84 CALTRONICS C/O JJR ENTERP 3981881 02/02/2024 COPIER MAINT FOR PD AND … 402-2001-0000-650031 342796 02/02/2024 151.33 Vendor CAL51 - CALTRONICS C/O JJR ENTERP Total: 869.17
Vendor: CIN10 - CINTAS CORPORATION #38K
CINTAS CORPORATION #38K 240202 02/02/2024 INV 4180220117 101-5097-0000-620133 342797 02/02/2024 893.24 CINTAS CORPORATION #38K 240202 02/02/2024 INV 4178804263 101-5097-0000-620133 342797 02/02/2024 893.24 CINTAS CORPORATION #38K 240202 02/02/2024 INV 4180904631 101-5097-0000-620133 342797 02/02/2024 893.24 CINTAS CORPORATION #38K 240202 02/02/2024 INV 4181629274 101-5097-0000-620133 342797 02/02/2024 893.24 CINTAS CORPORATION #38K 240202 02/02/2024 INV 4179473707 101-5097-0000-620133 342797 02/02/2024 893.24 Vendor CIN10 - CINTAS CORPORATION #38K Total: 4,466.20
Vendor: COD02 - CODE PUBLISHING COMPANY
CODE PUBLISHING COMPANY GCI0012982 02/02/2024 PH MUNICIPAL CD- WEB UP… 101-1008-0000-630043 342798 02/02/2024 893.00 Vendor COD02 - CODE PUBLISHING COMPANY Total: 893.00
Vendor: CON31 - CONCORD FEED AND PET SUPP
CONCORD FEED AND PET SU… 14721/A 02/02/2024 25# BLU RIDGE KOI COLOR 101-5097-0000-650015 342799 02/02/2024 110.77 Vendor CON31 - CONCORD FEED AND PET SUPP Total: 110.77

9.2.a
Packet Pg. 10
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/2/2024 - 2/2/2024 2/5/2024 10:21:01 AM Page 2 of 7
Vendor Name Payable Number Post Date Description (Item) Account Number Payment Number Payment Date Amount Vendor: CON70 - CONTRA COSTA HEALTH SERVI
CONTRA COSTA HEALTH SER… IN02869480 02/02/2024 PD: CITY JAIL FEES 101-2001-0000-630041 342800 02/02/2024 710.00 Vendor CON70 - CONTRA COSTA HEALTH SERVI Total: 710.00
Vendor: CRI07 - CRIME SCENE CLEANERS INC
CRIME SCENE CLEANERS INC 83959 02/02/2024 OAK PRK/MONTICELLO/SNT … 103-5105-0000-660021 342801 02/02/2024 500.00 CRIME SCENE CLEANERS INC 88861 02/02/2024 PD: CLEAN & DISINFECT HOL… 101-2001-0000-630041 342801 02/02/2024 130.00 Vendor CRI07 - CRIME SCENE CLEANERS INC Total: 630.00
Vendor: CAL60 - CSMFO
CSMFO 240202 01/31/2024 2024 CSMFO PROFESSIONAL… 101-1010-0000-620121 342802 02/02/2024 55.00 Vendor CAL60 - CSMFO Total: 55.00
Vendor: DIV04 - DIVISION OF THE STATE ARC
DIVISION OF THE STATE ARC 4TH QTR 02/02/2024 SB1186 QTR REPORT-OCT-D… 203-240096 342803 02/02/2024 240.00 Vendor DIV04 - DIVISION OF THE STATE ARC Total: 240.00
Vendor: 10119 - ENERGY SERVICE PARTNERS
ENERGY SERVICE PARTNERS 240202 02/02/2024 80 % OF BLDG PRMT FEE PD … 101-0000-0000-430030 342804 02/02/2024 363.09 Vendor 10119 - ENERGY SERVICE PARTNERS Total: 363.09
Vendor: 10118 - ERICKSON, JAMES
ERICKSON, JAMES 240202 02/02/2024 FINANCE- CST RECOV REF RE… 101-220010 342805 02/02/2024 2,305.26 Vendor 10118 - ERICKSON, JAMES Total: 2,305.26
Vendor: FJK01 - F.J. KENNEDY AND ASSOCIAT
F.J. KENNEDY AND ASSOCIAT 23-257 02/02/2024 (PP40)- DEC 1-31, 2023 INV 2…231-3001-0000-630040 342806 02/02/2024 1,279.43 Vendor FJK01 - F.J. KENNEDY AND ASSOCIAT Total: 1,279.43 Vendor: FOR06 - FORENSIC SERVICES DIVISIO
FORENSIC SERVICES DIVISIO PHPD-2312 02/02/2024 PD: DRUG/ALCOHOL/ TOX TE…101-2001-0000-630033 342807 02/02/2024 15,155.00 FORENSIC SERVICES DIVISIO PHPD-2312-SUPP 02/02/2024 PD:DRUG/ALCOHOL/TOX TES…101-2001-0000-630033 342807 02/02/2024 239.40 Vendor FOR06 - FORENSIC SERVICES DIVISIO Total: 15,394.40 Vendor: GOR10 - FRANK GORHAM
FRANK GORHAM 240202 02/02/2024 DVWS STAFF ENGINEER FOR … 501-7010-0000-611040 342808 02/02/2024 375.00 Vendor GOR10 - FRANK GORHAM Total: 375.00
Vendor: FUT05 - FUTURE FORD OF CONCORD LL
FUTURE FORD OF CONCORD …240202 02/02/2024 INV 309510; 309512; 309894;…101-5097-0000-620065 342809 02/02/2024 678.36 Vendor FUT05 - FUTURE FORD OF CONCORD LL Total: 678.36
Vendor: KIS02 - KIS
KIS 79559 02/02/2024 CISCO C9300-48UXM-A SWIT…402-2001-0000-710844 342810 02/02/2024 11,504.03 KIS 79559A 02/02/2024 CISCO SOFTWARE LICENSE &… 402-2001-0000-710841 342810 02/02/2024 6,910.01 Vendor KIS02 - KIS Total: 18,414.04
Vendor: KLE01 - KLEVEN, JASON
KLEVEN, JASON 240202 02/02/2024 PER DIEM WHILE AT TRAIN P… 101-2001-0000-640011 342811 02/02/2024 333.00 Vendor KLE01 - KLEVEN, JASON Total: 333.00

9.2.a
Packet Pg. 11
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/2/2024 - 2/2/2024 2/5/2024 10:21:01 AM Page 3 of 7
Vendor Name Payable Number Post Date Description (Item) Account Number Payment Number Payment Date Amount Vendor: KON01 - KONE
KONE 1158628288 02/02/2024 CH ELEVATOR CALLOUT: 9AU…101-5097-0000-650017 342812 02/02/2024 1,478.44 Vendor KON01 - KONE Total: 1,478.44
Vendor: THO01 - MARGARET THORNTON
MARGARET THORNTON 240202 02/02/2024 RETIREE MEDICAL FOR FEB 2… 101-1019-0000-612210 342813 02/02/2024 205.90 Vendor THO01 - MARGARET THORNTON Total: 205.90
Vendor: WOR10 - MEL SERVICES INCORPORATED
MEL SERVICES INCORPORAT… 240202 02/02/2024 INV 138047 1/19/24 231-5020-0000-800030 342814 02/02/2024 1,646.56 MEL SERVICES INCORPORAT… 240202 02/02/2024 INV 138108 1/26/24 231-5020-0000-800030 342814 02/02/2024 1,578.69 Vendor WOR10 - MEL SERVICES INCORPORATED Total: 3,225.25 Vendor: NAT95 - NATIONAL TRENCH SAFETY
NATIONAL TRENCH SAFETY 778086 02/02/2024 TRENCH PLATE-BOYD RD & … 101-5097-0000-650023 342815 02/02/2024 141.71 Vendor NAT95 - NATIONAL TRENCH SAFETY Total: 141.71
Vendor: NEG02 - NEGI, RISHI
NEGI, RISHI 240202 02/02/2024 PER DIEM WHILE AT TRAINI… 101-2001-0000-640011 342816 02/02/2024 351.00 Vendor NEG02 - NEGI, RISHI Total: 351.00
Vendor: NEL06 - NELSON
NELSON 240202 02/02/2024 INV : 6440732 W/E 1/14/24 101-3001-0000-630019 342817 02/02/2024 1,330.18 NELSON 240202 02/02/2024 INV : 6441159 W/E 1/21/24 101-3001-0000-630019 342817 02/02/2024 1,015.77 Vendor NEL06 - NELSON Total: 2,345.95
Vendor: 10056 - NINYO & MOORE
NINYO & MOORE 282340 02/02/2024 LT 91 SLOPE GEOTECH GRDG… 231-5065-0000-630018 342818 02/02/2024 7,741.50 Vendor 10056 - NINYO & MOORE Total: 7,741.50
Vendor: NUN01 - NUNES, JAMES R.

NUNES, JAMES R. 240202 02/02/2024 RETIREE FOR FEB 2024 101-1019-0000-612210 342819 02/02/2024 162.00 Vendor NUN01 - NUNES, JAMES R. Total: 162.00
Vendor: OFF20 - OFFICE DEPOT, INC
OFFICE DEPOT, INC 350429728002 02/02/2024 PD: ELECTRIC STAPLERS 101-2001-0000-660016 342820 02/02/2024 619.82 Vendor OFF20 - OFFICE DEPOT, INC Total: 619.82
Vendor: OTI02 - OPERATIONAL TECHNOLOGY INTEGRATORS, INC.

OPERATIONAL TECHNOLOGY …89572 02/02/2024 TECHNOLOGY SUPP AT PUM… 501-7010-0000-650026 342821 02/02/2024 300.00 Vendor OTI02 - OPERATIONAL TECHNOLOGY INTEGRATORS, INC. Total: 300.00 Vendor: PAK01 - PAKPOUR CONSULTING GROUP,
PAKPOUR CONSULTING GRO… 4324 02/02/2024 INV 4324 (RD #1645) 101-220013 342822 02/02/2024 1,870.00 PAKPOUR CONSULTING GRO… 4325 02/02/2024 INV 4325 (RD#1565 ) 101-220013 342822 02/02/2024 510.00 PAKPOUR CONSULTING GRO… 4326 02/02/2024 INV 4326 (RD#1664 ) 101-220013 342822 02/02/2024 3,825.00 PAKPOUR CONSULTING GRO… 4327 02/02/2024 INV 4327 (RD#1532) 101-220013 342822 02/02/2024 4,420.00 PAKPOUR CONSULTING GRO… 4328 02/02/2024 INV 4328 (RD#1660) 101-220013 342822 02/02/2024 2,465.00 Vendor PAK01 - PAKPOUR CONSULTING GROUP, Total: 13,090.00

9.2.a
Packet Pg. 12
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/2/2024 - 2/2/2024 2/5/2024 10:21:01 AM Page 4 of 7
Vendor Name Payable Number Post Date Description (Item) Account Number Payment Number Payment Date Amount Vendor: PGE01 - PG&E
PG&E 240202A 02/02/2024 AD#20 WHITE ZONE 101-5097-0000-670015 342823 02/02/2024 711.97 PG&E 240202A 02/02/2024 AD #20 ZONE 1 226-4019-0000-670015 342823 02/02/2024 4,599.03 PG&E 240202A 02/02/2024 AD #20 ZONE 2 226-4020-0000-670015 342823 02/02/2024 388.57 PG&E 240202A 02/02/2024 AD #20 ZONE 3 226-4021-0000-670015 342823 02/02/2024 703.60 PG&E 240202A 02/02/2024 AD #20 ZONE 4 226-4022-0000-670015 342823 02/02/2024 44.01 PG&E 240202A 02/02/2024 AD #20 ZONE 5 226-4023-0000-670015 342823 02/02/2024 274.60 PG&E 240202A 02/02/2024 AD #20 ZONE 6 226-4024-0000-670015 342823 02/02/2024 2,388.98 PG&E 240202B 02/02/2024 2 MONTICELLO AVE- LIBRARY…103-5105-0000-670015 342823 02/02/2024 7,556.14 PG&E 240202C 02/02/2024 SUMM BLG-SAFETY ST LGHT … 221-1020-0000-670015 342823 02/02/2024 1,909.06 PG&E 240202D 02/02/2024 SUMM BLG- AD22 LGHT SVCS…227-4025-0000-670015 342823 02/02/2024 259.15 PG&E 240202 02/03/2024 PD: ELECTRICITY ACCT 1090… 101-2001-0000-670015 342823 02/02/2024 6,305.04 Vendor PGE01 - PG&E Total: 25,140.15
Vendor: PRA01 - PRATT, JOHN F.

PRATT, JOHN F. 240202 02/02/2024 RETIREE MEDICAL FOR FEB 2… 101-1019-0000-612210 342824 02/02/2024 1,909.05 Vendor PRA01 - PRATT, JOHN F. Total: 1,909.05
Vendor: PRE12 - PRESTIGE PRINTING & GRAPHICS
PRESTIGE PRINTING & GRAPH…90975 02/02/2024 PH: BUSINESS CARD PRINTIN… 101-2001-0000-620116 342825 02/02/2024 82.20 Vendor PRE12 - PRESTIGE PRINTING & GRAPHICS Total: 82.20 Vendor: REV01 - REVEL ENVIRONMENTAL MANUF
REVEL ENVIRONMENTAL MA… 59471 PP2 02/02/2024 CITY ST., SVC PROGRAM-JPHV…231-5037-0000-630042 342826 02/02/2024 2,542.05 Vendor REV01 - REVEL ENVIRONMENTAL MANUF Total: 2,542.05 Vendor: ROB03 - ROBERT HALF
ROBERT HALF 63094382 02/02/2024 TEMP SVCS FOR W/E 01/12/… 101-1010-0000-630019 342827 02/02/2024 1,500.15 ROBERT HALF 63130435 02/02/2024 TEMP SVCS FOR W/E 01/26/… 101-1010-0000-630019 342827 02/02/2024 861.66 Vendor ROB03 - ROBERT HALF Total: 2,361.81
Vendor: SCI03 - SCIARONI, JACK
SCIARONI, JACK 240202 02/02/2024 DVWS CHIEF ENGINEER FOR … 501-7010-0000-611040 342828 02/02/2024 500.00 Vendor SCI03 - SCIARONI, JACK Total: 500.00
Vendor: SUM05 - SUMMIT SPRINGS WATER COMPANY
SUMMIT SPRINGS WATER C… 240202 02/02/2024 INV 392153 AND 391957 101-5097-0000-660016 342829 02/02/2024 39.93 Vendor SUM05 - SUMMIT SPRINGS WATER COMPANY Total: 39.93 Vendor: TIL01 - TILLMAN, KEVIN
TILLMAN, KEVIN 240202 02/02/2024 PD: EDUCATIONAL INCENTIVE 101-2001-0000-630033 342830 02/02/2024 450.00 TILLMAN, KEVIN 240202A 02/02/2024 PER DIEM WHILE AT TRAINI… 101-2001-0000-640011 342830 02/02/2024 277.00 Vendor TIL01 - TILLMAN, KEVIN Total: 727.00
Vendor: TIR03 - TIREHUB, LLC
TIREHUB, LLC 240202 02/02/2024 INV 39768000 101-5097-0000-620065 342831 02/02/2024 907.88 TIREHUB, LLC 240202 02/02/2024 INV 39406759 101-5097-0000-620065 342831 02/02/2024 975.14 Vendor TIR03 - TIREHUB, LLC Total: 1,883.02

9.2.a
Packet Pg. 13
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/2/2024 - 2/2/2024 2/5/2024 10:21:01 AM Page 5 of 7
Vendor Name Payable Number Post Date Description (Item) Account Number Payment Number Payment Date Amount Vendor: T-M02 - T-MOBILE USA, INC
T-MOBILE USA, INC 9556767095 02/02/2024 PH: PHONE SVC FOR INVESTI… 101-2001-0000-670020 342832 02/02/2024 175.00 T-MOBILE USA, INC 9557440801 02/02/2024 PD: PHONE SVC FOR INVESTI… 101-2001-0000-670020 342832 02/02/2024 25.00 T-MOBILE USA, INC 9557440802 02/02/2024 PD: PHONE SVC FOR INVESTI… 101-2001-0000-670020 342832 02/02/2024 25.00 Vendor T-M02 - T-MOBILE USA, INC Total: 225.00
Vendor: TYL02 - TYLER TECHNOLOGIES, INC
TYLER TECHNOLOGIES, INC 025-453429 02/02/2024 2023-11-03 MA 401-1012-0000-630040 342833 02/02/2024 3,027.51 Vendor TYL02 - TYLER TECHNOLOGIES, INC Total: 3,027.51
Vendor: VIS08 - VISIONEERS INTEGRATED SYSTEMS, INC.

VISIONEERS INTEGRATED SY… 177254 02/02/2024 SECURE 1ST FLOOR SWING … 401-1012-0000-710844 342837 02/02/2024 4,740.00 Vendor VIS08 - VISIONEERS INTEGRATED SYSTEMS, INC. Total: 4,740.00 Vendor: VOO01 - VOORHIES, CLAIRE
VOORHIES, CLAIRE 240202 02/02/2024 DVWS SECRETARY & DISPAT… 501-7010-0000-611040 342835 02/02/2024 375.00 Vendor VOO01 - VOORHIES, CLAIRE Total: 375.00
Vendor: YAN02 - YANGWAS, ROSALIO PALOY
YANGWAS, ROSALIO PALOY 240202 02/02/2024 1099- NEC ENVELOPES 101-1019-0000-660016 342836 02/02/2024 87.36 Vendor YAN02 - YANGWAS, ROSALIO PALOY Total: 87.36
Grand Total: 186,300.12

9.2.a
Packet Pg. 14
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/2/2024 - 2/2/2024 2/5/2024 10:21:01 AM Page 6 of 7
Report Summary
Fund Summary
Fund Payment Amount
101 - GENERAL FUND 104,997.88
103 - MEASURE K FUND 8,056.14
203 - DISABILITY ACCESS FUND 240.00
221 - UNIFIED LIGHTING DISTRICT FUND 1,909.06
226 - COMMERCIAL LANDSCAPE & LIGHTING - DISTRICT … 8,398.79 227 - LANDSCAPE AND LIGHTING-ASSESSMENT DISTRICT… 259.15 231 - NPDES/STORMWATER 14,788.23
401 - CITY HALL/PUBLIC SERVICE CENTER TECHNOLOGY … 8,485.35 402 - PD TECHNOLOGY FUND 37,615.52
501 - DIABLO VISTA WATER FUND 1,550.00
Grand Total: 186,300.12
Account Summary
Account Number Account Name Payment Amount
101-0000-0000-430030 BUILDING PERMITS 363.09
101-1005-0000-640021 EDUC/CONF/O/N 185.00
101-1008-0000-630043 CODIFICATN SVCS 893.00
101-1010-0000-620121 MEMBERSHIP 55.00
101-1010-0000-630019 TEMP AGNCY SVCS 2,361.81
101-1016-0000-660016 SUPPLIES/OFFICE 20.97
101-1019-0000-612210 SICK LEAVE CONVERSIO… 2,276.95
101-1019-0000-660016 SUPLS/OFFICE 87.36
101-200030 CREDIT CARD PAYABLE 45,889.55
101-2001-0000-620116 PD PRINTING 82.20
101-2001-0000-630033 P.D. OTHER SVCS 15,844.40
101-2001-0000-630041 HAZ WASTE SVCS 840.00
101-2001-0000-640011 POST TRAING SVC 961.00
101-2001-0000-660016 SUPPLIES/OFFICE 619.82
101-2001-0000-670015 UTIL/GAS-ELECTR 6,305.04
101-2001-0000-670020 UTIL/TELEPHONE 225.00
101-220010 REFUNDABLE DEPOSITS … 2,305.26
101-220013 REFUNDABLE DEPOSITS … 13,090.00
101-3001-0000-630019 TEMP AGNCY SVCS 2,345.95
101-5097-0000-620065 AUTO/PRTS/TIRES 2,561.38
101-5097-0000-620133 UNIFORM MAINTENANC… 4,466.20
101-5097-0000-650015 MNT/FNTN & LAKE 110.77
101-5097-0000-650017 MAINT/CH BLDG 1,478.44
101-5097-0000-650023 MAINT/STREETS 877.79
101-5097-0000-660016 SUPPLIES/OFFICE 39.93
101-5097-0000-670015 UTIL/GAS-ELECTR 711.97

9.2.a
Packet Pg. 15
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/2/2024 - 2/2/2024 2/5/2024 10:21:01 AM Page 7 of 7
Account Summary
Account Number Account Name Payment Amount
103-5105-0000-660021 SUPLS/JANITORAL 500.00
103-5105-0000-670015 UTIL/GAS-ELECTR 7,556.14
203-240096 DISABILITY ACCESS FEE 240.00
221-1020-0000-670015 UTIL/GAS-ELECTR 1,909.06
226-4019-0000-670015 UTIL/GAS-ELECTR 4,599.03
226-4020-0000-670015 UTIL/GAS-ELECTR 388.57
226-4021-0000-670015 UTIL/GAS-ELECTR 703.60
226-4022-0000-670015 UTIL/GAS-ELECTR 44.01
226-4023-0000-670015 UTIL/GAS-ELECTR 274.60
226-4024-0000-670015 UTIL/GAS-ELECTR 2,388.98
227-4025-0000-670015 UTIL/GAS-ELECTR 259.15
231-3001-0000-630040 CONTRACTUAL SVC 1,279.43
231-5020-0000-800030 CONSTRUCTION 3,225.25
231-5037-0000-630042 NPDES COSTS 2,542.05
231-5065-0000-630018 MISC OUTSD SVCS 7,741.50
401-1012-0000-630040 CONTRACTUAL SVC 3,027.51
401-1012-0000-650031 MAINT/CPY MCHNS 717.84
401-1012-0000-710844 CAPITAL ASSETS-EQUIP… 4,740.00
402-2001-0000-650031 MAINT/CPY MCHNS 151.33
402-2001-0000-710841 CAPITAL ASSETS-SOFTW… 6,910.01
402-2001-0000-710844 CAPITAL ASSETS-EQUIP… 30,554.18
501-7010-0000-611040 SALARY-PART TIME PER… 1,250.00
501-7010-0000-650026 MAINT/DV WATER 300.00
Grand Total: 186,300.12
Project Account Summary
Project Account Key Payment Amount
**None** 186,300.12
Grand Total: 186,300.12
02-05-2024

9.2.a
Packet Pg. 16
Attachment: Check Register (Check Register)
2/9/2024 11:35:28 AM Page 1 of 7
Expense Approval Report
Pleasant Hill, CA By Vendor Name
Payment Dates 2/9/2024 - 2/9/2024
Vendor Name Payable Number Post Date Description (Item) Account Number Payment Number Payment Date Amount Vendor: AAN01 - AANTEX PEST CONTROL
AANTEX PEST CONTROL 559825 02/09/2024 MONTHLY PEST CONTROL AT…101-5097-0000-650016 342838 02/09/2024 80.00 Vendor AAN01 - AANTEX PEST CONTROL Total: 80.00
Vendor: ADV13 - ADVANCED CONSTRCUTION SUPPLY
ADVANCED CONSTRCUTION … 240209 02/09/2024 INV 482 101-5097-0000-660030 342839 02/09/2024 2,848.01 ADVANCED CONSTRCUTION … 240209 02/09/2024 INV 1410 101-5097-0000-660030 342839 02/09/2024 719.42 ADVANCED CONSTRCUTION … 240209 02/09/2024 INV: 567;1383;1384;504 101-5097-0000-660030 342839 02/09/2024 433.71 Vendor ADV13 - ADVANCED CONSTRCUTION SUPPLY Total: 4,001.14 Vendor: ACM02 - ALL CITY MANAGEMENT SERVI
ALL CITY MANAGEMENT SER… 90716 02/09/2024 PD: CRSSG GUARD SVCS: 196…243-2001-0000-630040 342840 02/09/2024 6,675.64 Vendor ACM02 - ALL CITY MANAGEMENT SERVI Total: 6,675.64 Vendor: ALS01 - ALSCO
ALSCO LSAC2024384 02/09/2024 PD: MATS. TOWELS, LAUNDRY 101-2001-0000-660014 342841 02/09/2024 169.00 Vendor ALS01 - ALSCO Total: 169.00
Vendor: ARM03 - ARMOUR PETROLEUM
ARMOUR PETROLEUM WO-26376 02/09/2024 PSC UNLEADED PUMP SVC C… 101-5097-0000-630040 342842 02/09/2024 618.81 Vendor ARM03 - ARMOUR PETROLEUM Total: 618.81
Vendor: ATT23 - AT&T
AT&T 240209 02/09/2024 INTERNET FOR LIBRARY ACCT…101-1012-0000-670020 342843 02/09/2024 143.74 Vendor ATT23 - AT&T Total: 143.74
Vendor: BEL10 - BELLECCI & ASSOCIATES, IN
BELLECCI & ASSOCIATES, IN 210032.00-0000019 02/09/2024 PP29-ENGR SVCS- DEC 1 - DE… 301-5137-0000-630034 342844 02/09/2024 17,066.43 BELLECCI & ASSOCIATES, IN 210032.00-0000019A 02/09/2024 PP29-ENGR SVCS-DEC 1-DEC …301-5137-0000-630034 342844 02/09/2024 3,895.18 Vendor BEL10 - BELLECCI & ASSOCIATES, IN Total: 20,961.61 Vendor: BER12 - BERTRAND,FOX & ELLIOT
BERTRAND,FOX & ELLIOT 240209 02/09/2024 PD: PHPD - LEGAL ASSISTAN… 101-2001-0000-630033 342845 02/09/2024 2,700.00 BERTRAND,FOX & ELLIOT 43225 02/09/2024 LEGAL SVCS FORDEC 2023 101-1007-0000-630013 342845 02/09/2024 2,258.75 Vendor BER12 - BERTRAND,FOX & ELLIOT Total: 4,958.75
Vendor: WAS02 - CASTLE TIRE
CASTLE TIRE 14244019 02/09/2024 DISPOSE/ RECYCLE TIRES 101-5097-0000-650047 342846 02/09/2024 502.24 Vendor WAS02 - CASTLE TIRE Total: 502.24
Vendor: CHA21 - CHARLES KOPP
CHARLES KOPP 240209 02/09/2024 INV CEI 12646 101-5097-0000-650046 342847 02/09/2024 892.80

9.2.a
Packet Pg. 17
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/9/2024 - 2/9/2024 2/9/2024 11:35:28 AM Page 2 of 7
Vendor Name Payable Number Post Date Description (Item) Account Number Payment Number Payment Date Amount CHARLES KOPP 240209 02/09/2024 INV CEI 12645 226-4019-0000-650046 342847 02/09/2024 407.00 Vendor CHA21 - CHARLES KOPP Total: 1,299.80
Vendor: CHE19 - CHEUNG, ERICK
CHEUNG, ERICK 240209 02/09/2024 TRAV EXP 1/30-2/1'24 3 DAY…101-1010-0000-640022 342848 02/09/2024 1,270.38 Vendor CHE19 - CHEUNG, ERICK Total: 1,270.38
Vendor: CON70 - CONTRA COSTA HEALTH SERVI
CONTRA COSTA HEALTH SER… CCEH 7/1/23-12/31/23 02/09/2024 EDIBLE FOOD GENE INSPECT …201-4009-0000-630040 342849 02/09/2024 3,034.75 Vendor CON70 - CONTRA COSTA HEALTH SERVI Total: 3,034.75 Vendor: DEP02 - DEPT. OF TRANSPORTATION
DEPT. OF TRANSPORTATION SL240509 02/09/2024 SIGNALS AND LIGHTING-OCT… 306-5107-0000-650043 342850 02/09/2024 4,448.03 Vendor DEP02 - DEPT. OF TRANSPORTATION Total: 4,448.03
Vendor: DIA11 - DIABLO PRESS
DIABLO PRESS 3764 02/09/2024 PD: CORRECTION NOTICE FO… 101-2001-0000-620116 342851 02/09/2024 323.93 Vendor DIA11 - DIABLO PRESS Total: 323.93
Vendor: DUA01 - DU-ALL SAFETY, LLC
DU-ALL SAFETY, LLC 25047 02/09/2024 SAFETY TRAINING JAN 2024 101-1014-0000-630020 342852 02/09/2024 1,085.00 Vendor DUA01 - DU-ALL SAFETY, LLC Total: 1,085.00
Vendor: 10122 - FAST & EASY
FAST & EASY 240209 02/09/2024 CUSTOMER CLOSED BUSINES…101-0000-0000-404010 342853 02/09/2024 959.00 FAST & EASY 240209 02/09/2024 CUSTOMER CLOSED BUSINES…203-240096 342853 02/09/2024 4.00 Vendor 10122 - FAST & EASY Total: 963.00
Vendor: FED09 - FEDEX
FEDEX 8-382-95153 02/09/2024 R. BRIGGS CITY CELLPHONE R…101-1014-0000-620113 342854 02/09/2024 37.03 FEDEX 9-667-61811 02/09/2024 LATE FEE FOR INV 8-357-038… 101-1014-0000-620113 342854 02/09/2024 3.38 Vendor FED09 - FEDEX Total: 40.41
Vendor: IDI58 - IDI
IDI IN6295889 02/09/2024 MONTHLY SVCS FOR INVESTI… 101-2001-0000-620122 342855 02/09/2024 270.50 Vendor IDI58 - IDI Total: 270.50
Vendor: IED01 - IEDA
IEDA 200616156 02/09/2024 MEMBER DUES FOR LABOR R…101-1014-0000-630040 342856 02/09/2024 1,983.64 Vendor IED01 - IEDA Total: 1,983.64
Vendor: JAC09 - JACKSON LEWIS P.C.

JACKSON LEWIS P.C. 8430471 02/09/2024 CASE PREPARATION 101-1014-0000-630040 342857 02/09/2024 6,476.50 Vendor JAC09 - JACKSON LEWIS P.C. Total: 6,476.50
Vendor: JOS01 - JOSEPH'S LAWNMOWER
JOSEPH'S LAWNMOWER 240209 02/09/2024 INV 374494;374493;374232 101-5097-0000-660036 342858 02/09/2024 93.01 Vendor JOS01 - JOSEPH'S LAWNMOWER Total: 93.01

9.2.a
Packet Pg. 18
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/9/2024 - 2/9/2024 2/9/2024 11:35:28 AM Page 3 of 7
Vendor Name Payable Number Post Date Description (Item) Account Number Payment Number Payment Date Amount Vendor: KIR01 - KIRBY, CYNTHIA M.

KIRBY, CYNTHIA M. 2402008 02/09/2024 PD: POLYGRAPH EXAMINATI… 101-2001-0000-630033 342859 02/09/2024 2,800.00 Vendor KIR01 - KIRBY, CYNTHIA M. Total: 2,800.00
Vendor: 10081 - KRAMER WORKPLACE INVESTIGATIONS
KRAMER WORKPLACE INVEST…1378 02/09/2024 PERSONNEL INVESTIGATION … 101-1014-0000-630040 342860 02/09/2024 12,702.00 Vendor 10081 - KRAMER WORKPLACE INVESTIGATIONS Total: 12,702.00 Vendor: CUR06 - L.N. CURTIS & SONS
L.N. CURTIS & SONS 868604 02/09/2024 PD: BALLISTIC VEST FOR JUST…101-2001-0000-612270 342861 02/09/2024 1,405.69 Vendor CUR06 - L.N. CURTIS & SONS Total: 1,405.69
Vendor: MCF03 - MCFARLAND, LEAH
MCFARLAND, LEAH 240209 02/09/2024 PHPA MED PREMIUM PMT R… 101-1019-0000-612210 342862 02/09/2024 1,000.00 Vendor MCF03 - MCFARLAND, LEAH Total: 1,000.00
Vendor: MOR08 - MORGAN-BONANNO DEVELOPMEN
MORGAN-BONANNO DEVEL… 6817 02/09/2024 POTHOLE REPAIRS- TEMPE C… 101-5097-0000-650023 342863 02/09/2024 12,555.00 Vendor MOR08 - MORGAN-BONANNO DEVELOPMEN Total: 12,555.00 Vendor: OFF20 - OFFICE DEPOT, INC
OFFICE DEPOT, INC 351624286001 02/09/2024 PD: BINDING CASES 101-2001-0000-660016 342864 02/09/2024 309.83 Vendor OFF20 - OFFICE DEPOT, INC Total: 309.83
Vendor: OTI02 - OPERATIONAL TECHNOLOGY INTEGRATORS, INC.

OPERATIONAL TECHNOLOGY …89696 02/09/2024 MONITORING & MGMT SVC … 402-2001-0000-630016 342865 02/09/2024 1,187.06 Vendor OTI02 - OPERATIONAL TECHNOLOGY INTEGRATORS, INC. Total: 1,187.06 Vendor: PET14 - PETRO-ANALYTICAL INC
PETRO-ANALYTICAL INC 128810 12/08/2023 PHPD UNDRGRND STORAGE … 308-5147-0000-800030 342866 02/09/2024 80,275.00 Vendor PET14 - PETRO-ANALYTICAL INC Total: 80,275.00
Vendor: PGE01 - PG&E
PG&E 240209 02/09/2024 SUMM BLG-UNIFIED ST LGHT…221-1020-0000-670015 342867 02/09/2024 19,144.65 PG&E 240209A 02/09/2024 WHITE ZONE 101-5097-0000-670035 342867 02/09/2024 432.34 PG&E 240209A 02/09/2024 BLUE ZONE 1 226-4019-0000-670035 342867 02/09/2024 253.40 PG&E 240209A 02/09/2024 BLUE ZONE 2 226-4020-0000-670035 342867 02/09/2024 11.58 PG&E 240209A 02/09/2024 BLUE ZONE 3 226-4021-0000-670035 342867 02/09/2024 104.82 PG&E 240209A 02/09/2024 BLUE ZONE 5 226-4023-0000-670035 342867 02/09/2024 108.24 PG&E 240209A 02/09/2024 BLUE ZONE 6 226-4024-0000-670035 342867 02/09/2024 11.58 PG&E 240209A 02/09/2024 GALLERY WALK 227-4026-0000-670035 342867 02/09/2024 15.79 PG&E 240209A 02/09/2024 TRAFFIC SIGNALS 306-5107-0000-670015 342867 02/09/2024 2,028.55 PG&E 240209B 02/09/2024 TRAFFIC SIGNAL- 389 GOLF C… 306-4019-0000-670015 342867 02/09/2024 284.90 PG&E 240209C 02/09/2024 CITY HALL GAS ACCT 139859… 101-1016-0000-670015 342867 02/09/2024 1,723.84 Vendor PGE01 - PG&E Total: 24,119.69
Vendor: ALL02 - REPUBLIC SERVICES #210
REPUBLIC SERVICES #210 240209 02/09/2024 SVCS- CURBSIDE OIL COLL O… 201-4009-0000-630040 342868 02/09/2024 879.84 Vendor ALL02 - REPUBLIC SERVICES #210 Total: 879.84

9.2.a
Packet Pg. 19
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/9/2024 - 2/9/2024 2/9/2024 11:35:28 AM Page 4 of 7
Vendor Name Payable Number Post Date Description (Item) Account Number Payment Number Payment Date Amount Vendor: ROB03 - ROBERT HALF
ROBERT HALF 63175418 02/09/2024 TEMP SVCS W/E 02/02/24 - L…101-1010-0000-630019 342869 02/09/2024 893.70 Vendor ROB03 - ROBERT HALF Total: 893.70
Vendor: 10057 - ROBERT NEBOLON ARCHITECTS
ROBERT NEBOLON ARCHITEC…3730 02/09/2024 PP3-JAN 2024 CH POND & F… 308-5148-0000-630034 342870 02/09/2024 8,686.48 Vendor 10057 - ROBERT NEBOLON ARCHITECTS Total: 8,686.48 Vendor: SAF01 - SAFETY-KLEEN SYSTEMS, INC
SAFETY-KLEEN SYSTEMS, INC 240209 02/09/2024 INV 93579628 101-5097-0000-620065 342871 02/09/2024 141.42 SAFETY-KLEEN SYSTEMS, INC 240209 02/09/2024 INV 93579586 101-5097-0000-650047 342871 02/09/2024 204.40 Vendor SAF01 - SAFETY-KLEEN SYSTEMS, INC Total: 345.82
Vendor: SUE45 - SS Lam Enterprise dba SUE's Hair Salon
SS Lam Enterprise dba SUE's … 240209 02/09/2024 TECH SUPP GRANT REIM (P… 295-4001-0000-700115 342872 02/09/2024 1,900.00 Vendor SUE45 - SS Lam Enterprise dba SUE's Hair Salon Total: 1,900.00 Vendor: COR69 - STACY CORR
STACY CORR 240209 02/09/2024 PD: EDUCATION INCENTIVE 101-2001-0000-630033 342873 02/09/2024 283.00 Vendor COR69 - STACY CORR Total: 283.00
Vendor: SWR01 - STATE WATER RESOURCES CONTROL BOARD
STATE WATER RESOURCES C… WD-0259027 02/09/2024 ANNUAL PER FEE- GRAYSON … 301-5138-0000-620123 342874 02/09/2024 399.00 Vendor SWR01 - STATE WATER RESOURCES CONTROL BOARD Total: 399.00 Vendor: SUN27 - SUN RIDGE SYSTEMS, INC
SUN RIDGE SYSTEMS, INC 7992 02/09/2024 ANNUAL REN 2024-2025 OF … 402-2001-0000-650036 342875 02/09/2024 47,320.00 Vendor SUN27 - SUN RIDGE SYSTEMS, INC Total: 47,320.00
Vendor: SUP02 - SUPER STATION CAR WASH
SUPER STATION CAR WASH 6680 02/09/2024 PD: CAR WASHES FOR OCT 2… 101-2001-0000-650051 342876 02/09/2024 280.40 Vendor SUP02 - SUPER STATION CAR WASH Total: 280.40
Vendor: TAL02 - TALX UC EXPRESS
TALX UC EXPRESS 2058664959 02/09/2024 UNEMPLOYMENT CS MGMT … 101-1015-0000-680035 342877 02/09/2024 500.00 Vendor TAL02 - TALX UC EXPRESS Total: 500.00
Vendor: THE62 - THE RADAR SHOP, INC.

THE RADAR SHOP, INC. 15357 02/09/2024 PD: CALIBRA OF RADARS US… 101-2001-0000-660014 342878 02/09/2024 782.00 Vendor THE62 - THE RADAR SHOP, INC. Total: 782.00
Vendor: UND01 - UNDERGROUND SERVICE ALERT OF NORTHERN CAL AND NEVADA UNDERGROUND SERVICE AL… 1406412024 02/09/2024 2024 MEMBERSHIP FEE USA … 501-7010-0000-620123 342879 02/09/2024 390.84 Vendor UND01 - UNDERGROUND SERVICE ALERT OF NORTHERN CAL AND NEVADA Total: 390.84 Vendor: INT46 - UNITED STATES TREASURY
UNITED STATES TREASURY CP215 02/09/2024 EMPLOYER ID: 94-1527260 101-0000-0000-450010 342880 02/09/2024 15,400.00 Vendor INT46 - UNITED STATES TREASURY Total: 15,400.00

9.2.a
Packet Pg. 20
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/9/2024 - 2/9/2024 2/9/2024 11:35:28 AM Page 5 of 7
Vendor Name Payable Number Post Date Description (Item) Account Number Payment Number Payment Date Amount Vendor: AST02 - WAVE
WAVE 103860301-0010630 02/09/2024 DARK FIBER MAINT FOR CO… 402-2001-0000-650035 342882 02/09/2024 520.15 Vendor AST02 - WAVE Total: 520.15
Vendor: AST03 - WAVE
WAVE 103859701-0010630 02/09/2024 CH INTERNET CONN ACCT 15… 401-1012-0000-670010 342881 02/09/2024 943.20 Vendor AST03 - WAVE Total: 943.20
Vendor: ACE21 - WESTLAKE ACE HARDWARE
WESTLAKE ACE HARDWARE 240209 02/09/2024 INV 17600322 101-5097-0000-650016 342883 02/09/2024 43.23 WESTLAKE ACE HARDWARE 240209 02/09/2024 INV 17600324 101-5097-0000-660011 342883 02/09/2024 16.58 WESTLAKE ACE HARDWARE 240209 02/09/2024 INV 17600323 AND 17600318 101-5097-0000-660036 342883 02/09/2024 140.82 WESTLAKE ACE HARDWARE 240209 02/09/2024 INV 17600319 AND 17600317 226-4023-0000-660036 342883 02/09/2024 58.97 Vendor ACE21 - WESTLAKE ACE HARDWARE Total: 259.60
Vendor: WEX02 - WEX HEALTH INC
WEX HEALTH INC 0001851342-IN 02/09/2024 FSA MONTHLY FEE NOV 2023 101-1010-0000-612170 342884 02/09/2024 70.00 Vendor WEX02 - WEX HEALTH INC Total: 70.00
Grand Total: 275,608.18

9.2.a
Packet Pg. 21
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/9/2024 - 2/9/2024 2/9/2024 11:35:28 AM Page 6 of 7
Report Summary
Fund Summary
Fund Payment Amount
101 - GENERAL FUND 75,553.10
201 - WASTE MANAGEMENT/RECYCLING FUND 3,914.59
203 - DISABILITY ACCESS FUND 4.00
221 - UNIFIED LIGHTING DISTRICT FUND 19,144.65
226 - COMMERCIAL LANDSCAPE & LIGHTING - DISTRICT … 955.59 227 - LANDSCAPE AND LIGHTING-ASSESSMENT DISTRICT… 15.79 243 - TRAFFIC SAFETY FUND 6,675.64
295 - AMERICAN RESCUE PLAN ACT (ARPA) FUND 1,900.00
301 - GAS TAX FUND 21,360.61
306 - MEASURE J FUND 6,761.48
308 - CAPITAL PROJECT FUND 88,961.48
401 - CITY HALL/PUBLIC SERVICE CENTER TECHNOLOGY … 943.20 402 - PD TECHNOLOGY FUND 49,027.21
501 - DIABLO VISTA WATER FUND 390.84
Grand Total: 275,608.18
Account Summary
Account Number Account Name Payment Amount
101-0000-0000-404010 BUSINESS LICENSE FEE 959.00
101-0000-0000-450010 INTEREST REVENUE 15,400.00
101-1007-0000-630013 OUTSIDE COUNSEL/LITI… 2,258.75
101-1010-0000-612170 FLEXIBLE SPENDING AD… 70.00
101-1010-0000-630019 TEMP AGNCY SVCS 893.70
101-1010-0000-640022 EDUC/MTGS/LOCAL 1,270.38
101-1012-0000-670020 UTIL/TELEPHONE 143.74
101-1014-0000-620113 POSTAGE 40.41
101-1014-0000-630020 EMPLYEE TRAING 1,085.00
101-1014-0000-630040 CONTRACTUAL SVC 21,162.14
101-1015-0000-680035 INSURANCE/UNEMPLY… 500.00
101-1016-0000-670015 UTIL/GAS-ELECTR 1,723.84
101-1019-0000-612210 SICK LEAVE CONVERSIO… 1,000.00
101-2001-0000-612270 UNIFORM ALLOWANCE/… 1,405.69
101-2001-0000-620116 PD PRINTING 323.93
101-2001-0000-620122 PUBLICATIONS/SUBSCRI… 270.50
101-2001-0000-630033 P.D. OTHER SVCS 5,783.00
101-2001-0000-650051 MAINT/P.D. AUTO 280.40
101-2001-0000-660014 SUPPLIES/OPERATING 951.00
101-2001-0000-660016 SUPPLIES/OFFICE 309.83
101-5097-0000-620065 AUTO/PRTS/TIRES 141.42
101-5097-0000-630040 CONTRACTUAL SVC 618.81

9.2.a
Packet Pg. 22
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/9/2024 - 2/9/2024 2/9/2024 11:35:28 AM Page 7 of 7
Account Summary
Account Number Account Name Payment Amount
101-5097-0000-650016 MAINT/PD BLDG 123.23
101-5097-0000-650023 MAINT/STREETS 12,555.00
101-5097-0000-650046 MAINT/STR LITES 892.80
101-5097-0000-650047 MNT/HAZ WST MGT 706.64
101-5097-0000-660011 AUTO/SUPPLIES 16.58
101-5097-0000-660030 SUPPLIES/SIGN MATERI… 4,001.14
101-5097-0000-660036 SUPPLIES/LAND MATERI… 233.83
101-5097-0000-670035 UTIL/OTHER 432.34
201-4009-0000-630040 CONTRACTUAL SVC 3,914.59
203-240096 DISABILITY ACCESS FEE 4.00
221-1020-0000-670015 UTIL/GAS-ELECTR 19,144.65
226-4019-0000-650046 MAINT/STR LITES 407.00
226-4019-0000-670035 UTIL/OTHER 253.40
226-4020-0000-670035 UTIL/OTHER 11.58
226-4021-0000-670035 UTIL/OTHER 104.82
226-4023-0000-660036 SUPPLIES/LAND MATERI… 58.97
226-4023-0000-670035 UTIL/OTHER 108.24
226-4024-0000-670035 UTIL/OTHER 11.58
227-4026-0000-670035 UTIL/OTHER 15.79
243-2001-0000-630040 CONTRACTUAL SVC 6,675.64
295-4001-0000-700115 GRANT LOANS RETAIL M… 1,900.00
301-5137-0000-630034 ENGINEERING 20,961.61
301-5138-0000-620123 GOVERNMENT LICENSE … 399.00
306-4019-0000-670015 UTIL/GAS-ELECTR 284.90
306-5107-0000-650043 MAINT/TRAF SGNLMAIN… 4,448.03
306-5107-0000-670015 UTIL/GAS-ELECTR 2,028.55
308-5147-0000-800030 CONSTRUCTION 80,275.00
308-5148-0000-630034 ENGINEERING 8,686.48
401-1012-0000-670010 UTIL/COMMUNCTNS 943.20
402-2001-0000-630016 COMPTR CONSLTNT 1,187.06
402-2001-0000-650035 MAINT/HARDWARE 520.15
402-2001-0000-650036 MAINT/SOFTWARE 47,320.00
501-7010-0000-620123 GOVERNMENT LICENSE … 390.84
Grand Total: 275,608.18
Project Account Summary
Project Account Key Payment Amount
**None** 275,608.18
Grand Total: 275,608.18
2024-02-10

9.2.a
Packet Pg. 23
Attachment: Check Register (Check Register)
2/16/2024 11:41:16 AM Page 1 of 7
Expense Approval Report
Pleasant Hill, CA By Vendor Name
Payment Dates 2/16/2024 - 2/16/2024
Vendor Name Payable Number Post Date Description (Item) Account Number Payment Number Payment Date Amount Vendor: ALL01 - AG SECURITY SERVICES INC
AG SECURITY SERVICES INC A437808 02/16/2024 MONTHLY RADIO MONITORI… 101-5097-0000-650041 342885 02/16/2024 60.35 Vendor ALL01 - AG SECURITY SERVICES INC Total: 60.35
Vendor: AMA05 - AMAZON CAPITAL SERVICES
AMAZON CAPITAL SERVICES 17PC-R4GV-11NQ 02/16/2024 WIRELESS HEADSET FOR SH… 401-1012-0000-660024 342886 02/16/2024 213.04 AMAZON CAPITAL SERVICES 1M3W-9LXL-GL3Q 02/16/2024 PROT CS FOR CHIEF BLD OFFI…401-1012-0000-660024 342888 02/16/2024 53.15 AMAZON CAPITAL SERVICES 1XN6-GKRJ-FVJ1 02/16/2024 MOUS PROT CASE FOR PHPD… 402-2001-0000-660024 342887 02/16/2024 77.22 Vendor AMA05 - AMAZON CAPITAL SERVICES Total: 343.41
Vendor: AND06 - ANDERSON, CHRISTOPHER
ANDERSON, CHRISTOPHER 240216 02/16/2024 PER DIEM WHILE AT TRAINI… 101-2001-0000-640011 342889 02/16/2024 814.00 Vendor AND06 - ANDERSON, CHRISTOPHER Total: 814.00
Vendor: ATT04 - AT&T
AT&T 21196501 02/16/2024 ANALOG PH LN FOR FR ALA… 101-1012-0000-670020 342891 02/16/2024 113.07 AT&T 21196508 02/16/2024 ANALOG PH LN ENGR FAX 92… 101-1012-0000-670020 342890 02/16/2024 112.81 AT&T 211989859 02/16/2024 PRI LN AT CH FOR VOIP ACCT…101-1012-0000-670020 342893 02/16/2024 1,708.60 AT&T 21201816 02/16/2024 SIP TRUNK FOR LIBRARY PH… 101-1012-0000-670020 342892 02/16/2024 579.88 AT&T 21237558 02/16/2024 ANALOG POTS LINES FOR LIB… 101-1012-0000-670020 342894 02/16/2024 112.85 Vendor ATT04 - AT&T Total: 2,627.21
Vendor: BES14 - BEST BEST & KRIEGER LLP
BEST BEST & KRIEGER LLP 981155 02/16/2024 RE:TELECOMMUNICATION S… 101-1007-0000-630040 342895 02/16/2024 1,037.00 BEST BEST & KRIEGER LLP 986277 02/16/2024 GENE CT ATTY SVCS - THRO… 101-1007-0000-630013 342895 02/16/2024 46,410.50 Vendor BES14 - BEST BEST & KRIEGER LLP Total: 47,447.50 Vendor: 10110 - BMI IMAGING SYSTEMS, INC.

BMI IMAGING SYSTEMS, INC. 321261 02/16/2024 PO #1012004 DOCUMENT S… 295-1012-0000-630040 342897 02/16/2024 12,332.54 Vendor 10110 - BMI IMAGING SYSTEMS, INC. Total: 12,332.54 Vendor: BMI01 - BMI
BMI 11237422 02/16/2024 LIC FEE FOR CONCERT MUSIC…101-4002-0000-700085 342896 02/16/2024 435.00 Vendor BMI01 - BMI Total: 435.00
Vendor: CHA21 - CHARLES KOPP
CHARLES KOPP 240216 02/16/2024 INV CEI 12649 306-5107-0000-650043 342898 02/16/2024 847.00 CHARLES KOPP 240216 02/16/2024 INV CEI 12648 306-5107-0000-650043 342898 02/16/2024 381.60 CHARLES KOPP 240216A 02/16/2024 INV CEI 12650 101-5097-0000-650046 342898 02/16/2024 885.50 CHARLES KOPP 240216A 02/16/2024 INV CEI 12651 101-5097-0000-650046 342898 02/16/2024 1,195.60 CHARLES KOPP 240216A 02/16/2024 INV CEI 12406 101-5097-0000-650046 342898 02/16/2024 770.00

9.2.a
Packet Pg. 24
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/16/2024 - 2/16/2024 2/16/2024 11:41:16 AM Page 2 of 7
Vendor Name Payable Number Post Date Description (Item) Account Number Payment Number Payment Date Amount CHARLES KOPP 240216A 02/16/2024 INV CEI 12560 226-4019-0000-650046 342898 02/16/2024 407.00 Vendor CHA21 - CHARLES KOPP Total: 4,486.70
Vendor: COM02 - COMCAST
COMCAST 240216 02/16/2024 MONTHLY FOR FEB 2024 AC… 101-1012-0000-670010 342899 02/16/2024 73.59 Vendor COM02 - COMCAST Total: 73.59
Vendor: DEL20 - DE LAGE LANDEN
DE LAGE LANDEN 81954410 02/16/2024 CH & PD COPIER LEASE ACCT… 401-1012-0000-620052 342900 02/16/2024 1,746.00 DE LAGE LANDEN 81954410 02/16/2024 CH & PD COPIER LEASE ACCT… 402-2001-0000-620052 342900 02/16/2024 1,051.25 Vendor DEL20 - DE LAGE LANDEN Total: 2,797.25
Vendor: DIA02 - DIABLO TROPHIES & AWARDS
DIABLO TROPHIES & AWARDS 18504 02/16/2024 APPRECIATION AWRD PLAQ… 101-1001-0000-700015 342901 02/16/2024 183.54 DIABLO TROPHIES & AWARDS 18504 02/16/2024 APPRECIATION AWRD PLAQ… 101-1001-0000-700015 342901 02/16/2024 27.31 DIABLO TROPHIES & AWARDS 18504 02/16/2024 APPRECIATION AWRD PLAQ… 101-1005-0000-660016 342901 02/16/2024 45.89 DIABLO TROPHIES & AWARDS 18504 02/16/2024 APPRECIATION AWRD PLAQ… 101-1005-0000-660016 342901 02/16/2024 11.47 DIABLO TROPHIES & AWARDS 18504 02/16/2024 APPRECIATION AWRD PLAQ… 101-1005-0000-660016 342901 02/16/2024 11.47 DIABLO TROPHIES & AWARDS 18523 02/16/2024 NAME BADGES & BUSINESS … 101-1001-0000-660016 342901 02/16/2024 88.50 DIABLO TROPHIES & AWARDS 18560 02/16/2024 INFORMATION TECHNOLOGY…401-1012-0000-660024 342901 02/16/2024 675.17 DIABLO TROPHIES & AWARDS 18562 02/16/2024 NAME PLATE ENGRAVED - AL…101-1010-0000-660016 342901 02/16/2024 21.85 Vendor DIA02 - DIABLO TROPHIES & AWARDS Total: 1,065.20 Vendor: EAS19 - EAST BAY DIVISION
EAST BAY DIVISION 5258 02/16/2024 MEMBERSHIP DUES FOR EBD 101-1001-0000-620121 342902 02/16/2024 300.00 Vendor EAS19 - EAST BAY DIVISION Total: 300.00
Vendor: FJK01 - F.J. KENNEDY AND ASSOCIAT
F.J. KENNEDY AND ASSOCIAT 23-277 02/16/2024 DEVELOPMENT ENGINEERIN… 231-3001-0000-630040 342903 02/16/2024 3,912.85 Vendor FJK01 - F.J. KENNEDY AND ASSOCIAT Total: 3,912.85 Vendor: BLU03 - FIRE RISK MANAGEMENT SERVICES
FIRE RISK MANAGEMENT SE… 240216 02/16/2024 COBRA BLUE SHIELD FOR M… 101-210037 342904 02/16/2024 1,547.91 FIRE RISK MANAGEMENT SE… 240216A 02/16/2024 COBRA BLUE SHIELD FOR M… 101-210037 342904 02/16/2024 1,547.91 Vendor BLU03 - FIRE RISK MANAGEMENT SERVICES Total: 3,095.82 Vendor: KAI04 - FIRE RISK MANAGEMENT SERVICES
FIRE RISK MANAGEMENT SE… 240216 02/16/2024 COBRA PAID KAISER MAR 20… 101-210037 342905 02/16/2024 1,795.16 FIRE RISK MANAGEMENT SE… 240216A 02/16/2024 KAISER MAR 2024 - DOWNS,… 101-2001-0000-612070 342905 02/16/2024 2,540.22 Vendor KAI04 - FIRE RISK MANAGEMENT SERVICES Total: 4,335.38 Vendor: FRA28 - FRANK AND GROSSMAN LANDSC
FRANK AND GROSSMAN LA… 26769 02/16/2024 FEB 2024 JANITORIAL SVCS C… 101-5097-0000-650012 342906 02/16/2024 6,200.00 FRANK AND GROSSMAN LA… 26769 02/16/2024 FEB 2024 JANITORIAL SVCS P… 101-5097-0000-650012 342906 02/16/2024 4,500.00 FRANK AND GROSSMAN LA… 26769 02/16/2024 FEB 2024 JANITORIAL SVCS P… 101-5097-0000-650012 342906 02/16/2024 1,050.00 FRANK AND GROSSMAN LA… 26769 02/16/2024 FEB 2024 JANITORIAL SVCS L… 103-5105-0000-660021 342906 02/16/2024 6,350.00 Vendor FRA28 - FRANK AND GROSSMAN LANDSC Total: 18,100.00

9.2.a
Packet Pg. 25
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/16/2024 - 2/16/2024 2/16/2024 11:41:16 AM Page 3 of 7
Vendor Name Payable Number Post Date Description (Item) Account Number Payment Number Payment Date Amount Vendor: GRA84 - GRANITE TELECOMMUNICATION
GRANITE TELECOMMUNICAT…634918643 02/16/2024 ANALOG LNS LIBRARY USG C… 101-1012-0000-670020 342907 02/16/2024 305.11 Vendor GRA84 - GRANITE TELECOMMUNICATION Total: 305.11
Vendor: GREEN - GREENHALO SYSTEMS
GREENHALO SYSTEMS 4757 02/16/2024 HOSTING AND MAINTENANC…101-4013-0000-630040 342908 02/16/2024 204.00 Vendor GREEN - GREENHALO SYSTEMS Total: 204.00
Vendor: HEA04 - HEALTH CARE DENTAL TRUST
HEALTH CARE DENTAL TRUST 240216 02/16/2024 CITY- PAID DENTAL MAR 202… 101-2001-0000-612090 342909 02/16/2024 126.70 HEALTH CARE DENTAL TRUST 240216A 02/16/2024 CITY PAID DENTAL MAR 2024…101-1010-0000-612090 342909 02/16/2024 126.70 HEALTH CARE DENTAL TRUST 240216B 02/16/2024 CITY PAID DENTAL FOR MAR … 101-1005-0000-612090 342909 02/16/2024 87.71 HEALTH CARE DENTAL TRUST 240216C 02/16/2024 CITY PAID DENTAL FOR MAR … 101-1010-0000-612090 342909 02/16/2024 51.80 HEALTH CARE DENTAL TRUST 240216D 02/16/2024 COBRA DENTAL FOR MAR 20… 101-210037 342909 02/16/2024 121.81 HEALTH CARE DENTAL TRUST 240216E 02/16/2024 COBRA DENTAL FOR MAR 20… 101-210037 342909 02/16/2024 75.84 HEALTH CARE DENTAL TRUST 240216F 02/16/2024 COBRA DENTAL FOR MAR 20… 101-210037 342909 02/16/2024 51.80 HEALTH CARE DENTAL TRUST 240216G 02/16/2024 COBRA DENTAL FOR MAR 20… 101-210037 342909 02/16/2024 121.81 HEALTH CARE DENTAL TRUST 240216H 02/16/2024 COBRA DENTAL FOR MAR 20… 101-210037 342909 02/16/2024 87.71 Vendor HEA04 - HEALTH CARE DENTAL TRUST Total: 851.88
Vendor: HUN04 - HUNT, LAURENCE III
HUNT, LAURENCE III 2181 02/16/2024 FIELD SHT AND EDITNG FOR … 101-1001-0000-630040 342910 02/16/2024 540.00 HUNT, LAURENCE III 2181 02/16/2024 FIELD SHT AND EDITNG FOR … 101-1001-0000-630040 342910 02/16/2024 360.00 HUNT, LAURENCE III 2182 02/16/2024 2-6-24-PST PROD-VID FINAL … 101-1001-0000-630040 342910 02/16/2024 225.00 HUNT, LAURENCE III 2182 02/16/2024 2-5-24- HYBRD CT COUNCIL … 101-1001-0000-630040 342910 02/16/2024 150.00 Vendor HUN04 - HUNT, LAURENCE III Total: 1,275.00
Vendor: JEW02 - IJWC
IJWC 240216 02/16/2024 SPONSORSHIP OF THE 2024 … 101-4001-0000-660040 342911 02/16/2024 2,000.00 Vendor JEW02 - IJWC Total: 2,000.00
Vendor: INF04 - INFINITY TECHNOLOGIES
INFINITY TECHNOLOGIES 2114 02/16/2024 PRCL UPDATE, COUNCIL DIST…401-1012-0000-630040 342912 02/16/2024 5,745.00 Vendor INF04 - INFINITY TECHNOLOGIES Total: 5,745.00
Vendor: JOH16 - JOHNSON, DANNY
JOHNSON, DANNY 240216 02/16/2024 PER DIEM WHILE AT TRNG N… 101-2001-0000-640011 342913 02/16/2024 68.00 Vendor JOH16 - JOHNSON, DANNY Total: 68.00
Vendor: JUA01 - JUAREZ, DANIELLE
JUAREZ, DANIELLE 240216 02/16/2024 PER DIEM WHILE AT TRNG C… 101-2001-0000-640011 342914 02/16/2024 407.00 Vendor JUA01 - JUAREZ, DANIELLE Total: 407.00
Vendor: KLE01 - KLEVEN, JASON
KLEVEN, JASON 240216 02/16/2024 PER DIEM WHILE AT TRAINI… 101-2001-0000-640011 342915 02/16/2024 333.00 Vendor KLE01 - KLEVEN, JASON Total: 333.00

9.2.a
Packet Pg. 26
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/16/2024 - 2/16/2024 2/16/2024 11:41:16 AM Page 4 of 7
Vendor Name Payable Number Post Date Description (Item) Account Number Payment Number Payment Date Amount Vendor: LCC01 - LCC ENGINEERING & SURVEYI
LCC ENGINEERING & SURVEYI 33486 02/16/2024 ENGR SVCS- 180 RANDOM … 231-5065-0000-630034 342916 02/16/2024 2,147.00 Vendor LCC01 - LCC ENGINEERING & SURVEYI Total: 2,147.00 Vendor: 10124 - MARTINEZ, PRISCILLA
MARTINEZ, PRISCILLA 240216 02/16/2024 PER DIEM WHILE AT TRNG C… 101-2001-0000-640011 342917 02/16/2024 407.00 Vendor 10124 - MARTINEZ, PRISCILLA Total: 407.00
Vendor: NEL06 - NELSON
NELSON 240216 02/16/2024 INV 6442561 2/11/24 101-3001-0000-630019 342918 02/16/2024 1,160.88 NELSON 240216 02/16/2024 INV 6442124 02/04/24 101-3001-0000-630019 342918 02/16/2024 1,160.88 NELSON 240216 02/16/2024 INV 6441637 1/28/24 101-3001-0000-630019 342918 02/16/2024 1,160.88 Vendor NEL06 - NELSON Total: 3,482.64
Vendor: 10125 - NICHAPORN SMAILI
NICHAPORN SMAILI 240216 02/16/2024 I APPLIED PMT TO WRONG B… 101-0000-0000-404010 342919 02/16/2024 151.00 NICHAPORN SMAILI 240216 02/16/2024 STATE FEE 203-240096 342919 02/16/2024 4.00 Vendor 10125 - NICHAPORN SMAILI Total: 155.00
Vendor: PET14 - PETRO-ANALYTICAL INC
PETRO-ANALYTICAL INC 128901 02/16/2024 PROFESSIONAL SVCS- PHPD … 308-5147-0000-800030 342920 02/16/2024 52,867.50 Vendor PET14 - PETRO-ANALYTICAL INC Total: 52,867.50
Vendor: PGE01 - PG&E
PG&E 240216 02/16/2024 CITY HALL ELEC ACCT 144026…101-1016-0000-670015 342921 02/16/2024 12,592.86 Vendor PGE01 - PG&E Total: 12,592.86
Vendor: ROB03 - ROBERT HALF
ROBERT HALF 240216 02/16/2024 TEMP SVCS FOR W/E 02/09/… 101-1010-0000-630019 342922 02/16/2024 854.40 Vendor ROB03 - ROBERT HALF Total: 854.40
Vendor: RSG - RSG, INC.

RSG, INC. I011474 02/16/2024 PO INCREASE / ACCT 78-8090…225-4027-0000-630040 342923 02/16/2024 8,393.75 RSG, INC. I011475 02/16/2024 PROJ- FY23-24 SUCCESSOR A… 899-6001-0000-750924 342923 02/16/2024 7,168.75 Vendor RSG - RSG, INC. Total: 15,562.50
Vendor: STA67 - STANLEY CONVERGENT SECURI
STANLEY CONVERGENT SEC… 6003895972 02/16/2024 MONITOR SVC FOR ALRM SYS…101-5097-0000-650041 342924 02/16/2024 284.49 Vendor STA67 - STANLEY CONVERGENT SECURI Total: 284.49
Vendor: STA26 - STAPLES BUSINESS CREDIT
STAPLES BUSINESS CREDIT 1653581430 02/16/2024 OFFICE SUPP ACCT 10087073…101-4013-0000-660016 342925 02/16/2024 962.98 Vendor STA26 - STAPLES BUSINESS CREDIT Total: 962.98
Vendor: REG01 - THE REGENTS OF THE UNIVERSITY OF CALIFORNIA THE REGENTS OF THE UNIVE… 11140775 02/16/2024 PUBLICATION- CA GOV TORT… 101-1007-0000-620122 342926 02/16/2024 383.81 Vendor REG01 - THE REGENTS OF THE UNIVERSITY OF CALIFORNIA Total: 383.81 Vendor: TIL01 - TILLMAN, KEVIN
TILLMAN, KEVIN 240216 02/16/2024 PER DIEM WHITE AT TRAING/…101-2001-0000-640011 342927 02/16/2024 277.00 Vendor TIL01 - TILLMAN, KEVIN Total: 277.00

9.2.a
Packet Pg. 27
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/16/2024 - 2/16/2024 2/16/2024 11:41:16 AM Page 5 of 7
Vendor Name Payable Number Post Date Description (Item) Account Number Payment Number Payment Date Amount Vendor: TYL02 - TYLER TECHNOLOGIES, INC
TYLER TECHNOLOGIES, INC 025-453933 02/16/2024 PO/10007 BEN G.- PROD ASS… 401-1012-0000-630040 342928 02/16/2024 650.00 Vendor TYL02 - TYLER TECHNOLOGIES, INC Total: 650.00
Vendor: USP01 - U.S. POSTMASTER
U.S. POSTMASTER 240216 02/16/2024 BULK MAIL PST PER#21 OUT… 101-4002-0000-620113 342929 02/16/2024 2,325.00 U.S. POSTMASTER 240216 02/16/2024 BULK MAIL PST PER#21 OUT… 201-4009-0000-620113 342929 02/16/2024 775.00 Vendor USP01 - U.S. POSTMASTER Total: 3,100.00
Vendor: VER09 - VERIZON WIRELESS
VERIZON WIRELESS 9953084968 02/16/2024 PH SVC- PSC (DEC 02- JAN 01)…101-5097-0000-670010 342932 02/16/2024 410.84 VERIZON WIRELESS 9955556993 02/16/2024 ACCT 442062726-00004 101-3001-0000-670010 342933 02/16/2024 247.05 VERIZON WIRELESS 9955580384 02/16/2024 PH SVCS JAN-FEB 2024 ACCT …101-1010-0000-670010 342931 02/16/2024 24.39 VERIZON WIRELESS 9955595540 02/16/2024 PH SVC FOR PLG DIV- LUIS M. 101-4004-0000-670020 342930 02/16/2024 129.28 Vendor VER09 - VERIZON WIRELESS Total: 811.56
Vendor: VIS05 - VISION SERVICE PLAN- (CA)
VISION SERVICE PLAN- (CA) 240216 02/16/2024 COBRA PREMIUM FOR MAR … 101-210037 342934 02/16/2024 15.22 VISION SERVICE PLAN- (CA) 240216A 02/16/2024 COBRA PREMIUM FOR MAR … 101-210037 342934 02/16/2024 15.22 VISION SERVICE PLAN- (CA) 240216B 02/16/2024 COBRA PREMIUM FOR MAR … 101-210037 342934 02/16/2024 15.22 VISION SERVICE PLAN- (CA) 240216C 02/16/2024 COBRA PREMIUM FOR MAR … 101-210037 342934 02/16/2024 15.22 Vendor VIS05 - VISION SERVICE PLAN- (CA) Total: 60.88
Vendor: WIL50 - WILLDAN FINANCIAL SERVICE
WILLDAN FINANCIAL SERVICE 010-57480 02/16/2024 CONSULTANT SERVICES 101-1005-0000-630040 342935 02/16/2024 2,475.00 Vendor WIL50 - WILLDAN FINANCIAL SERVICE Total: 2,475.00 Vendor: WIL15 - WILLIAMS, JACOB
WILLIAMS, JACOB 240216 02/16/2024 TRAINING MATERIALS FOR D… 101-2001-0000-660014 342936 02/16/2024 83.00 Vendor WIL15 - WILLIAMS, JACOB Total: 83.00
Vendor: 10123 - YOUNG, ANA
YOUNG, ANA 240216 02/16/2024 PER DIEM WHILE AT TRAINI… 101-2001-0000-640011 342937 02/16/2024 814.00 Vendor 10123 - YOUNG, ANA Total: 814.00
Vendor: ZEL01 - ZELLMANN, GARY
ZELLMANN, GARY 240216 02/16/2024 PER DIEM WHILE AT TRAINI… 101-2001-0000-640011 342938 02/16/2024 425.50 Vendor ZEL01 - ZELLMANN, GARY Total: 425.50
Grand Total: 211,812.91

9.2.a
Packet Pg. 28
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/16/2024 - 2/16/2024 2/16/2024 11:41:16 AM Page 6 of 7
Report Summary
Fund Summary
Fund Payment Amount
101 - GENERAL FUND 106,015.09
103 - MEASURE K FUND 6,350.00
201 - WASTE MANAGEMENT/RECYCLING FUND 775.00
203 - DISABILITY ACCESS FUND 4.00
225 - LOW/MODERATE INCOME HOUSING-SUCCESSOR … 8,393.75
226 - COMMERCIAL LANDSCAPE & LIGHTING - DISTRICT … 407.00 231 - NPDES/STORMWATER 6,059.85
295 - AMERICAN RESCUE PLAN ACT (ARPA) FUND 12,332.54
306 - MEASURE J FUND 1,228.60
308 - CAPITAL PROJECT FUND 52,867.50
401 - CITY HALL/PUBLIC SERVICE CENTER TECHNOLOGY … 9,082.36 402 - PD TECHNOLOGY FUND 1,128.47
899 - REDEVELOP PROP TAX TRUST FUND-SUCCESSOR A… 7,168.75 Grand Total: 211,812.91
Account Summary
Account Number Account Name Payment Amount
101-0000-0000-404010 BUSINESS LICENSE FEE 151.00
101-1001-0000-620121 MEMBERSHIP 300.00
101-1001-0000-630040 CONTRACTUAL SVC 1,275.00
101-1001-0000-660016 SUPPLIES/OFFICE 88.50
101-1001-0000-700015 PROMOS/CONTRIBUTIO… 210.85
101-1005-0000-612090 INSURANCE/DENTAL 87.71
101-1005-0000-630040 CONTRACTUAL SVC 2,475.00
101-1005-0000-660016 SUPPLIES/OFFICE 68.83
101-1007-0000-620122 PUBLICATIONS/SUBSCRI… 383.81
101-1007-0000-630013 OUTSIDE COUNSEL/LITI… 46,410.50
101-1007-0000-630040 CONTRACTUAL SVC 1,037.00
101-1010-0000-612090 INSURANCE/DENTAL 178.50
101-1010-0000-630019 TEMP AGNCY SVCS 854.40
101-1010-0000-660016 SUPPLIES/OFFICE 21.85
101-1010-0000-670010 UTIL/COMMUNCTNS 24.39
101-1012-0000-670010 UTIL/COMMUNCTNS 73.59
101-1012-0000-670020 UTIL/TELEPHONE 2,932.32
101-1016-0000-670015 UTIL/GAS-ELECTR 12,592.86
101-2001-0000-612070 INSURANCE/KAISER 2,540.22
101-2001-0000-612090 INSURANCE/DENTAL 126.70
101-2001-0000-640011 POST TRAING SVC 3,545.50
101-2001-0000-660014 SUPPLIES/OPERATING 83.00
101-210037 COBRA - HEALTH BENEFI… 5,410.83

9.2.a
Packet Pg. 29
Attachment: Check Register (Check Register)
Expense Approval Report Payment Dates: 2/16/2024 - 2/16/2024 2/16/2024 11:41:16 AM Page 7 of 7
Account Summary
Account Number Account Name Payment Amount
101-3001-0000-630019 TEMP AGNCY SVCS 3,482.64
101-3001-0000-670010 UTIL/COMMUNCTNS 247.05
101-4001-0000-660040 SPCL EVENT SPNS 2,000.00
101-4002-0000-620113 POSTAGE 2,325.00
101-4002-0000-700085 SUMMER CONCERT SERI… 435.00
101-4004-0000-670020 UTIL/TELEPHONE 129.28
101-4013-0000-630040 CONTRACTUAL SVC 204.00
101-4013-0000-660016 SUPPLIES/OFFICE 962.98
101-5097-0000-650012 MAINT/JANITORALMAIN… 11,750.00
101-5097-0000-650041 MAINT/FIR/SCRTY 344.84
101-5097-0000-650046 MAINT/STR LITES 2,851.10
101-5097-0000-670010 UTIL/COMMUNCTNS 410.84
103-5105-0000-660021 SUPLS/JANITORAL 6,350.00
201-4009-0000-620113 POSTAGE 775.00
203-240096 DISABILITY ACCESS FEE 4.00
225-4027-0000-630040 CONTRACTUAL SVC 8,393.75
226-4019-0000-650046 MAINT/STR LITES 407.00
231-3001-0000-630040 CONTRACTUAL SVC 3,912.85
231-5065-0000-630034 ENGINEERING 2,147.00
295-1012-0000-630040 CONTRACTUAL SVC 12,332.54
306-5107-0000-650043 MAINT/TRAF SGNLMAIN… 1,228.60
308-5147-0000-800030 CONSTRUCTION 52,867.50
401-1012-0000-620052 EQ/LSE&INST PMT 1,746.00
401-1012-0000-630040 CONTRACTUAL SVC 6,395.00
401-1012-0000-660024 SUPPLIES/NON CAPITALI… 941.36
402-2001-0000-620052 EQ/LSE&INST PMT 1,051.25
402-2001-0000-660024 SUPPLIES/NON CAPITALI… 77.22
899-6001-0000-750924 ADMINISTRATIVE COSTS… 7,168.75
Grand Total: 211,812.91
Project Account Summary
Project Account Key Payment Amount
**None** 211,812.91
Grand Total: 211,812.91
2024-02-16

9.2.a
Packet Pg. 30
Attachment: Check Register (Check Register)
100 Gregory Lane, Pleasant Hill, CA 94523-3323 – (925) 671-5270 www.pleasanthillca.org

MEMORANDUM
TO: City Councilmembers
FROM: Interview and Nominating Committee
Mayor Tim Flaherty, Councilmember Allen Vinson
DATE: February 26, 2024
SUBJECT: Approve Appointment Recommendations to the Civic Action Commission and Diversity Commission
The Interview and Nominating Committee recommends the following appointment and requests the City Council’s confirmation:

APPOINTMENTS TERMS/EXPIRATION DATES
Civic Action Commission
Dave Chung (reappointment) Unfilled term through February 2026 Julie McCoy Four-year term through February 2028
Nancy O’Grady Four-year term through February 2028
John Stephens (reappointment) Four-year term through February 2028 Diversity Commission
Elizabeth Nunan Unfilled term through September 2027
Sandra Spellman Unfilled term through September 2027

9.3 Packet Pg. 31

CITY COUNCIL STAFF REPORT
Meeting Date: February 26, 2024
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ACCEPT UPDATE ON CONTRA COSTA TRANSPORTATION

AUTHORITY AND TRANSPAC

SYNOPSIS
TRANSPAC meets to provide direction to its staff and make recommendations to the Contra Costa Transportation Authority (CCTA) on significant transportation and land use issues. The attachments to this report include the CCTA Executive Summary and Board meeting minutes for December 20, 2023, and the TRANSPAC Committee meeting summary minutes for December 14, 2023.

DISCUSSION
Background
TRANSPAC was formed in 1986 to provide the cities of Central Contra Costa County a forum to discuss mutual planning and transportation issues. When Measure C, a countywide transportation proposition, was adopted in 1988, TRANSPAC became the official regional transportation, land use, and housing forum for Central Contra Costa County. The member agencies include Contra Costa County, Clayton, Concord, Martinez, Walnut Creek, and Pleasant Hill.

TRANSPAC meets to discuss transportation-related issues. A Councilmember and a Planning Commissioner represent each jurisdiction. The Chair of the CCTA then submits the actions.

Analysis
An Executive Summary of the actions taken on December 20, 2023, at the CCTA Board meeting is included along with the meeting minutes. The actions taken at the TRANSPAC Committee meeting on December 14, 2023, are included in the attached minutes.

Items related to the City of Pleasant Hill include Vice Mayor Noack being selected as both the TRANSPAC Chair from February 1, 2024, to January 31, 2025, and the primary TRANSPAC representative to the CCTA Board. Ryan McClain was appointed as the primary representative to the CCTA Technical Coordinating Committee (TCC) for the term ending March 31, 2025.

9.4 Packet Pg. 32

FISCAL IMPACT
None

PUBLIC CONTACT
Public contact was made through posting the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.

RECOMMENDED CITY COUNCIL ACTION
Accept the report.

ALTERNATIVES TO RECOMMENDED ACTION
The City Council may want to discuss one or more of the actions taken during the last meeting.

Should the City Council require detailed information pertaining to any issues, a comprehensive report could be scheduled for a subsequent City Council meeting. Contingent on the amount of information required, staff would need adequate time to prepare a comprehensive report addressing the item or items.

ATTACHMENT(S):

CCTA Executive Summary and Board Meeting Minutes for December 20, 2023 TRANSPAC Committee Meeting Summary Minutes for December 14, 2023 Prepared by: Ananthan Kanagasundaram, City Engineer
Approved by: Ethan Bindernagel, City Manager

9.4 Packet Pg. 33

COMMISSIONERS
Federal Glover,
Chair
Newell Arnerich,
Vice Chair
Ken Carlson
Paul Fadelli
Loella Haskew
Chris Kelley
Aaron Meadows
Sue Noack
Scott Perkins
Renata Sos
Lamar Thorpe
Timothy Haile,
Executive Director
2999 Oak Road
Suite 100
Walnut Creek
CA 94597
PHONE: 925.256.4700
FAX: 925.256.4701
www.ccta.net
https://cctauthority.sharepoint.com/sites/Common/09Correspondences/RTPC Memos/2023/December 20 2023 RTPC Memo_Final_.doc

MEMORANDUM
To: Matt Todd, TRANSPAC
Chris Weeks, SWAT
Robert Sarmiento, TRANSPLAN
Sai Midididdi, TVTC
John Nemeth, WCCTAC
Sivakumar Natarajan, LPMC
From: Timothy Haile, Executive Director
Date: January 11, 2024
Re: Items of interest for circulation to the Regional Transportation Planning Committees (RTPCs)
At its December 20, 2023 meeting, the Authority discussed the following items, which may be of interests to the Regional Transportation Planning Committees:

A. Bay Area Rapid Transit (BART) – Central County BART Next Generation Fare Gates (NGFG) (Project 10001-09) – Approval to Appropriate Measure J Funds to BART for Design and Construction Phases
Recommendation: Staff sought approval of Resolution 23-48-p, which will appropriate $3.5 million in Measure J funds to BART for design and construction phases of the Central County BART NGFG project.

Action: The Authority Board approved Resolution 23-48-p, which will appropriate $3.5 million in Measure J funds to BART for the design and construction phases of the Central County BART NGFG project.

B. Interstate 680/State Route 4 Interchange Improvements, Phases 1, 2A, and 4 (Project 6001) (Project) – Approval of Resolution 23-21-P to Adopt Amendment No. 2 to the 2022 Measure J Strategic Plan

9.4.a
Packet Pg. 34
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation RTPC Memorandum
January 11, 2024

https://cctauthority.sharepoint.com/sites/Common/09Correspondences/RTPC Memos/2023/December 20 2023 RTPC Memo_Final_.doc Recommendation: Staff sought approval of Resolution 23-21-P, which will adopt Amendment No. 2 to the 2022 Measure J Strategic Plan, to reprogram $150,000 from the Central County – Construction Reserve to the Project.

Action: The Authority Board approved Resolution 23-21-P, which will adopt Amendment No. 2 to the 2022 Measure J Strategic Plan, to reprogram $150,000 from the Central County – Construction Reserve to the Project.

C. Authorization to Execute Funding Memorandum of Understanding (MOU) Agreement No. 679 with Contra Costa County for $1,470,00 of Measure X Funds to Support Implementation of the Accessible Transportation Strategic Plan
Recommendation: Staff sought authorization for the Chair to execute Funding MOU Agreement No. 679 with Contra Costa County for the Authority to receive $1,470,000 in Measure X funding, authorize the funds to be used for the tasks identified in the Service Plan in Agreement No. 679, and to allow the Executive Director or designee to make any nonsubstantive changes to the language.

Action: The Authority Board approved authorization for the Chair to execute Funding MOU Agreement No. 679 with Contra Costa County for the Authority to receive $1,470,000 in Measure X funding, authorize the funds to be used for the tasks identified in the Service Plan in Agreement No. 679, and to allow the Executive Director or designee to make any nonsubstantive changes to the language.

D. 2025 Countywide Transportation Plan (CTP) Environmental Impact Report (EIR) – Authorization to Execute Agreement No. 680 with Circlepoint for Environmental Analysis Services
Recommendation: Staff sought authorization for the Chair to execute Agreement No. 680 with Circlepoint in the amount of $424,687.66, for development of the 2025 CTP EIR, and to allow the Executive Director or designee to make any non-substantive changes to the language. The term will be through December 20, 2026.

9.4.a
Packet Pg. 35
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation RTPC Memorandum
January 11, 2024

https://cctauthority.sharepoint.com/sites/Common/09Correspondences/RTPC Memos/2023/December 20 2023 RTPC Memo_Final_.doc Action: The Authority Board approved authorization for the Chair to execute Agreement No. 680 with Circlepoint in the amount of $424,687.66, for development of the 2025 CTP EIR, and to allow the Executive Director or designee to make any non-substantive changes to the language with a term extended through December 20, 2026.

E. Consider the Conduct for Meetings of the Legislative Bodies of the Authority for December 2023
Recommendation: Staff requested that the Authority Board consider the options for meeting conduct after December 2023 and provide direction to staff on the conduct of meetings for the Authority’s legislative body.

Action: The Authority Board authorized staff to conduct all of the Authority’s legislative body meeting in‐person with a hybrid component for public participation and comment effective January 2, 2023.

F. Approval of the 2023 Congestion Management Program (CMP) Update for Contra Costa County
Recommendation: Staff sought approval of Resolution 23-43-G, which will adopt the 2023 CMP update for Contra Costa County, authorize staff to make any non-substantive changes to finalize the document, and authorize staff to forward the CMP to the Metropolitan Transportation Commission.

Action: The Authority Board approved Resolution 23-43-G, which will adopt the 2023 CMP update for Contra Costa County, authorize staff to make any non-substantive changes to finalize the document, and authorize staff to forward the CMP to the Metropolitan Transportation Commission.

G. Approval to Form a Sub-Committee of the Authority Board to Develop the Countywide Transportation Plan 2050 (CTP2050)
Recommendation: Staff sought approval to form a sub-committee of up to three members of the Authority Board to assist with the development of the CTP2050, and appointment of members to serve on the sub-committee.

Action: The Authority Board approved the formation of a CTP2050 SubCommittee of up to three members of the Authority Board to assist with the

9.4.a
Packet Pg. 36
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation RTPC Memorandum
January 11, 2024

https://cctauthority.sharepoint.com/sites/Common/09Correspondences/RTPC Memos/2023/December 20 2023 RTPC Memo_Final_.doc development of the CTP2050, and appointed Commissioners Carlson, Kelley, and Sos to serve on the CTP Sub-Committee.

9.4.a
Packet Pg. 37
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation Authority Board Meeting MINUTES
MEETINGDATE: Wednesday, December 20, 2023
MINUTESPREPAREDBY: Tarienne Grover
MEMBERSPRESENT: STAFFPRESENT: MEMBERS ABSENT:

Federal Glover, Chair/MTCRep.

Newell Arnerich, Vice Chair
Paul Fadelli, Commissioner
Loella Haskew, Commissioner
Chris Kelley, Commissioner
Aaron Meadows, Commissioner
Colin Clarke
Tarienne Grover
Timothy Haile
Jack Hall
John Hoang
Stephanie Hu
Ken Carlson, Commissioner
H.E. Christian Peeples, Ex-Officio Rep.

Sue Noack, Commissioner/MTC Rep. Lindy Johnson
Renata Sos, Commissioner
Lamar Thorpe, Commissioner
Scott Perkins, Commissioner
Mark Foley, Ex-Officio Rep.

Rashida Kamara
Brian Kelleher
Matt Kelly
Daniel Mermelstein
Hisham Noeimi
Emily Owen
Ivan Ramirez
Jackie Reyes
Ying Smith
Sherri Sylva
Yuliana Tjeng
Neal Parish, Legal Counsel

1. CONVENE MEETING: Federal Glover, Chair
DISCUSSION: Chair Glover convened the meeting at 6:00 PM. Commissioner Carlson and Rep. Peeples were absent.

2. PLEDGE OF ALLEGIANCE

3. PUBLIC COMMENT: Members of the public are invited to address the Authority regarding any item that is not listed on the agenda. Please refer to the Teleconferencing Special Notice for Public Comment guidelines.

DISCUSSION: There were no public comments on items not on the agenda.

4. PRESENTATIONS
A. Richmond-San Rafael Bridge Updates: Representatives from Bay Area Toll Authority/Metropolitan Transportation Commission will provide an update on

9.4.a
Packet Pg. 38
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation Authority Board Meeting MINUTES
December 20, 2023

current pilot projects and planned improvements as part of the Richmond-San Rafael Bridge Forward project.

DISCUSSION: Hisham Noeimi, Director, Programming, provided a brief background and introduced Lisa Klein with the Metropolitan Transportation Commission to present the item.

Ms. Klein provided an overview of the Richmond-San Rafael (RSR) Bridge Access Improvement pilot program, an update from the Bay Area Toll Authority (BATA) Oversight Committee, discussed pilot design for the purpose of reducing congestion and improving the bicycle/pedestrian access, bicycle and pedestrian path usage, success of reducing congestion on Eastbound Interstate 580 through use of a part-time transit lane on the lower deck, incident and safety response, next steps and timeline for the pilot program.

Ms. Klein further discussed considerations for westbound traffic and the potential impacts on congestion and air quality in addition to the cost of converting the third lane to a part-time high-occupancy vehicle (HOV)/bus lane, and summarized that there is a significant cost for improvements, it would need to meet California Environmental Quality Act of 1970 requirements, and that no funding has been identified in BATA’s Capital Improvement Plan for these improvements.

She further discussed the projects that are fully funded with Regional Measure 3 as part of the RSR Forward Project which will include open road tolling, an HOV lane extension, Richmond Parkway improvements, and would help reduce congestion, freeway operations, and air quality in the City of Richmond. However, this doesn’t include structural strengthening as part of the proposed budget for improvements.

Commissioners provided comments. Ms. Klein and David Ambuehl with the California Department of Transportation responded to comments from commissioners.

Public Comment:

Bruce Ohlson, Bike East Bay

CONSENT CALENDAR
ACTION: Commissioner Thorpe moved to approve the consent calendar, seconded by Commissioner Noack. The motion was adopted by unanimous vote of the commissioners present, unless otherwise noted.

9.4.a
Packet Pg. 39
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation Authority Board Meeting MINUTES
December 20, 2023

Noes-None
Absent-Commissioner Carlson
Abstain-None
DISCUSSION: Commissioner Kelley provided comments on Consent Calendar Item 6G. Rep.

Foley responded to the comments.

5. APPROVAL OF MINUTES
A. Authority Board Minutes of November 15, 2023

6. Administration & Projects Committee - Consent:

A. Accept Monthly Accounts Payable Invoice Report for October 2023 Recommendation: Staff seeks acceptance of the monthly accounts payable invoice report for October 2023.

B. Authorization to Execute Amendment No. 3 to Agreement No. 489 with Tai Ginsberg & Associates, LLC (TGA) for Federal Advocacy Services Recommendation: Staff seeks authorization for the Chair to execute Amendment No. 3 to Agreement No. 489 with TGA in the amount of $7,000 per month ($84,000/year), with an additional $3,500 per year for pre-approved travel expenses, for a new total agreement value of $546,500 for federal advocacy services, extend the agreement termination date to January 1, 2026, and to allow the Executive Director or designee to make any non-substantive changes to the language.

C. Authorization to Execute Amendment No. 6 to Agreement No. 451 with Mark Watts Advocacy, LLC (MWA) for State Advocacy Services
Recommendation: Staff seeks authorization for the Chair to execute Amendment No. 6 to Agreement No. 451 with MWA in the amount of $5,000 per month ($60,000/year), for a new total agreement value of $468,000, to provide state advocacy services, extend the agreement termination date to December 31, 2026, and to allow the Executive Director or designee to make any non-substantive changes to the language.

D. Project and Program Management (PPM) Services – Authorization to Issue Request for Proposals (RFP) No. 23-7 for PPM Services
Recommendation: Staff seeks authorization to issue RFP No. 23-7 to obtain proposals from firms interested in providing the Authority with PPM services.

E. Authorization to Execute Amendment No. 1 to Agreement No. 596 with Elevate Public Affairs (EPA) for Media Relations Services

9.4.a
Packet Pg. 40
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation Authority Board Meeting MINUTES
December 20, 2023

Recommendation: Staff seeks authorization for the Chair to execute Amendment No. 1 to Agreement No. 596 with EPA to provide media relations services and increase EPA’s billing fees to its 2023 rates.

F. Bollinger Canyon Road – Iron Horse Trail (IHT) Bicycle and Pedestrian Overcrossing (POC) (Project 120025):

1. Authorization to Execute Amendment No. 4 to Agreement No. 545 with COWI North America, Inc. (COWI) for Additional Design and Engineering Services Recommendation: Staff seeks authorization for the Chair to execute Amendment No. 4 to Agreement No. 545 with COWI in the amount of $160,000, for a new total agreement value of $2,926,082, to provide additional design and engineering services, and to allow the Executive Director or designee to make any non-substantive changes to the language.

2. Approval of Resolution 23-47-P for Construction Services Recommendation: Staff seeks approval of Resolution 23-47-P, which will establish a total construction allotment of $21,817,973.07 for construction services of which $200,000 will be in contingency, and authorize the Executive Director or designee to shift funds between construction allotment categories as long as the total expenditures do not exceed the total construction allotment.

G. Bay Area Rapid Transit (BART) – Central County BART Next Generation Fare Gates (NGFG) (Project 10001-09) – Approval to Appropriate Measure J Funds to BART for Design and Construction Phases
Recommendation: Staff seeks approval of Resolution 23-48-P, which will appropriate $3.5 million in Measure J funds to BART for the design and construction phases of the Central County BART NGFG project.

H. Project and Program Management (PPM) Services for the Construction Program – Authorization to Issue Request for Proposals (RFP) No. 23-6 for the Construction Program
Recommendation: Staff seeks authorization to issue RFP No. 23-6 to obtain proposals from firms interested in providing the Authority with PPM services for the construction program.

I. Project and Program Management (PPM) Services for the Construction Program – Authorization to Execute Amendment No. 6 to Agreement No. 521 with Cole Management & Engineering, Inc. (CME) for Additional PPM Services

9.4.a
Packet Pg. 41
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation Authority Board Meeting MINUTES
December 20, 2023

Recommendation: Staff seeks authorization for the Chair to execute Amendment No. 6 to Agreement No. 521 with CME in the amount of $483,683.33, for a new total agreement value of $5,955,596.23, to provide additional PPM services, and to allow the Executive Director or designee to make any non-substantive changes to the language.

J. Interstate 680/State Route 4 Interchange Improvements, Phases 1, 2A, and 4 (Project 6001) (Project) – Approval of Resolution 23-21-P to Adopt Amendment No. 2 to the 2022 Measure J Strategic Plan
Recommendation: Staff seeks approval of Resolution 23-21-P, which will adopt Amendment No. 2 to the 2022 Measure J Strategic Plan, to reprogram $150,000 from the Central County – Construction Reserve to the Project.

K. Legislative Update
Recommendation: Staff will provide an update on legislation, along with addressing any questions that may arise. The Authority may take action on any item presented in the attachment or any State or Federal legislation pertaining to the Authority’s legislative program.

L. Interstate 80 (I-80)/San Pablo Dam Road Interchange, Phase 2 (Project 7002) (Project):

1. Authorization to Execute Amendment No. 10 to Agreement No. 316 with AECOM Technical Services Inc. (AECOM) for Engineering Support Services Recommendation: Staff seeks authorization for the Chair to execute Amendment No. 10 to Agreement No. 316 with AECOM, in the amount of $4,797,013, for a new total agreement value of $11,543,013, to provide additional design and right-of-way services for the Project, and to allow the Executive Director or designee to make any non-substantive changes to the language. This amendment will extend the agreement termination date from December 31, 2023 to December 31, 2026.

2. Authorization to Execute Cooperative Agreement No. 07W.08 with the City of San Pablo (City)
Recommendation: Staff seeks authorization for the Chair to execute Cooperative Agreement No. 07W.08 with the City to outline the roles and responsibilities for Phase 2 of the Project, and to allow the Executive Director or designee to make any non-substantive changes to the language.

M. State Route 4 Mokelumne Bike Trail/Pedestrian Overcrossing (Project 5002b):

1. Approval to Increase the Construction Allotment for Agreement No. 561 with Joseph J. Albanese for Construction Services

9.4.a
Packet Pg. 42
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation Authority Board Meeting MINUTES
December 20, 2023

Recommendation: Staff seeks approval of Resolution 21-41-P (Rev 2), which will increase the construction allotment amount by $131,987, for a new total construction allotment value of $10,334,257, to provide additional construction services.

2. Authorization to Approve Contract Change Order No. 24 (CCO No. 24) to Construction Contract No. 561 with Joseph J. Albanese, Inc. (JJA) for Construction Services
Recommendation: Staff seeks approval of CCO No. 24 to Construction Contract No. 561 with JJA in the amount of $462,477.40, for the direct costs associated with measures to make the deck grades at Frame 3 compliant with the Americans with Disabilities Act of 1990, contingent upon approval of Resolution 21-41-P (Rev 2).

3. Approval of Resolution 23-49-P to Submit a Regional Measure 3 Allocation Request
Recommendation: Staff seeks approval of Resolution 23-49-P, which will authorize submittal of an allocation request to the Metropolitan Transportation Commission for an additional amount of $1 million for construction services.

N. NEW ITEM: Authorization to Execute Task Order No. 5 (TO5) to Letter Agreement No. 601 with Fennemore LLP dba Fennemore Wendel (Fennemore) for Legal Services to Trademark the Authority’s Assets
Recommendation: Staff seeks authorization for the Chair to execute TO5 to Letter Agreement No. 601 with Fennemore, in an amount not-to-exceed $4,645, to provide legal services to trademark the Authority’s PRESTO mobility brand, with a term through March 15, 2024.

O. NEW ITEM: Authorization to Execute Amendment No. 3 to Agreement No. 578 with Baker Tilly US, LLP (Baker Tilly) for Executive Recruitment Services Recommendation: Staff seeks authorization for the Chair to execute Amendment No. 3 to Agreement No. 578 with Baker Tilly in the amount of $30,000, for a new total agreement value of $135,000, to provide additional executive recruitment services, and to allow the Executive Director or designee to make any nonsubstantive changes to the language. The agreement termination date will be extended through December 31, 2024.

7. Planning Committee - Consent:

9.4.a
Packet Pg. 43
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation Authority Board Meeting MINUTES
December 20, 2023

A. Authorization to Execute Amendment No. 01 to Agreement No. ARV-20-008 with the California Energy Commission (CEC) to Revise the Terms, Scope, and Budget Allocation and to Rename Previous Amendment No. 1 to Amendment A - Streamlining Terms and Conditions
Recommendation: Staff seeks authorization for the Chair to execute Amendment No. 01 to Agreement No. ARV-20-008 with the CEC to modify the scope, budget allocation between categories, and extend the term from March 17, 2024 to March 17, 2026, to rename previous Amendment No. 1 to Amendment A - Streamlining Terms and Conditions, and to allow the Executive Director to enter into necessary amendments with the cities of Richmond and Pittsburg, the Community Choice Aggregator previously named Marin Clean Energy, and Advanced Mobility Group that are consistent with Amendment No. 01.

B. City of Pleasant Hill (City) – Contra Costa Boulevard Improvements, Viking Drive to Harriet Drive (Project 120054/130026) (Project) – Approval to Revise Project Scope for Previous Measure J Funding Appropriation Resolution 23-09-G for Construction Phase
Recommendation: Staff seeks approval of the proposed revised scope (still consistent with Attachment A to Resolution 23-09-G as adopted on May 17, 2023) to be constructed with the previously appropriated Measure J Transportation for Livable Communities (Program 12) funds in the amount of $3,792,000 and Pedestrian, Bicycle, and Trail Facilities (Program 13) funds in the amount of $1,000,000, for a total of $4,792,000 in Measure J funds to the City, for the construction phase of the Project.

C. Town of Danville (Town) – Approval of Resolution 16-02-G (Rev 4) to Withdraw the Sycamore Valley Park and Ride Expansion (Project 120052) to Reprogram and Appropriate its $1,500,000 Savings to the Diablo Road Circulation Improvements (Project 120030/24035) – Construction Phase
Recommendation: Staff seeks approval of Resolution 16-02-G (Rev 4), on behalf of the Town, to withdraw the Sycamore Valley Park and Ride Expansion (Project 120052) from the Measure J Transportation for Livable Communities (TLC) and Pedestrian, Bicycle, and Trail Facilities Programming Plan, and authorization to reprogram and appropriate (a funding resolution action to extend 16-02-G past its current expiration of December 31, 2023) Measure J TLC project savings in the amount of $1,500,000 from the Sycamore Valley Park and Ride Expansion (Project 120052) to the Diablo Road Circulation Improvements (Project 120030/24035), also known as the Diablo Road Trail project.

D. Development of the Bi-County Travel Model (Project) – Authorization to Execute Amendment No. 1 to Cooperative Agreement No. 18W.04 with Alameda County Transportation Commission (Alameda CTC) for a Time Extension

9.4.a
Packet Pg. 44
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation Authority Board Meeting MINUTES
December 20, 2023

Recommendation: Staff seeks authorization for the Chair to execute Amendment No. 1 to Cooperative Agreement No. 18W.04 with Alameda CTC, to allow additional time to complete the Project, and to allow the Executive Director or designee to make any non-substantive changes to the language. This amendment will extend the agreement termination date from December 31, 2023 to December 31, 2024.

E. Approval of Proposed Action to Funding Resolution
Recommendation: Staff seeks approval of Resolution 12-43-G (Rev 8), which will extend the term of the resolution to December 31, 2025 with the Town of Moraga for the Livable Moraga Road (Project 120022).

F. Authorization to Execute Funding Memorandum of Understanding (MOU) Agreement No. 679 with Contra Costa County for $1,470,000 of Measure X Funds to Support Implementation of the Accessible Transportation Strategic Plan Recommendation: Staff seeks authorization for the Chair to execute Funding MOU Agreement No. 679 with Contra Costa County for the Authority to receive $1,470,000 in Measure X funding, authorize the funds to be used for the tasks identified in the Service Plan in Agreement No. 679, and to allow the Executive Director or designee to make any non-substantive changes to the language.

G. NEW ITEM: 2025 Countywide Transportation Plan (CTP) Environmental Impact Report (EIR) – Authorization to Execute Agreement No. 680 with Circlepoint for Environmental Analysis Services
Recommendation: Staff seeks authorization for the Chair to execute Agreement No. 680 with Circlepoint in the amount of $424,687.66, for development of the 2025 CTP EIR, and to allow the Executive Director or designee to make any nonsubstantive changes to the language. The term will be through December 20, 2026.

H. NEW ITEM: Approval of the City of Antioch Calendar Years CY 2020 and 2021 Measure J Growth Management Program (GMP) Compliance Checklist Recommendation: Staff seeks approval of the City of Antioch GMP Compliance Checklist and payment of $1,781,217 in Fiscal Year (FY) 2020-21 Local Street Maintenance and Improvement funds to the City of Antioch, with a second (offyear) payment of FY 2022-23 funds on the one-year anniversary of the first payment.

I. NEW ITEM: Approval of the City of Martinez Calendar Years 2020 and 2021 Measure J Growth Management Program (GMP) Compliance Checklist Recommendation: Staff seeks approval of the City of Martinez GMP Compliance Checklist and payment of $750,637 in Fiscal Year (FY) 2021-22 Local Street Maintenance and Improvement funds to the City of Martinez, with a second (offyear) payment of FY 2022-23 funds on the one-year anniversary of the first payment.

9.4.a
Packet Pg. 45
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation Authority Board Meeting MINUTES
December 20, 2023

REGULAR AGENDA ITEMS

8. Administration & Projects Committee - Regular:

A. Interstate 680/State Route 4 Interchange Improvements, Phases 1, 2A, and 4 (Project 6001) – Authorization to Execute Amendment No. 4 to Agreement No. 503 and Task Order 1A (TO1A) with WMH Corporation (WMH) for Environmental and Final Design Services
Recommendation: Staff seeks authorization for the Chair to execute Amendment No. 4 to Agreement No. 503 and TO1A with WMH in the amount of $3 million, for a new total agreement value of $26,155,044, to provide additional environmental revalidation, final design, and bid support services, and to allow the Executive Director or designee to make any non-substantive changes to the language.

ACTION: Vice Chair Arnerich moved to authorize the Chair to execute Amendment No. 4 to Agreement No. 503 and Task Order 1A with WMH Corporation in the amount of $3 million, for a new total agreement value of $26,155,044, to provide additional environmental revalidation, final design, and bid support services, and to allow the Executive Director or designee to make any non-substantive changes to the language, seconded by Commissioner Kelley. The motion was adopted by unanimous vote of the commissioners present, unless otherwise noted.

Noes-None
Absent-Commissioner Carlson
Abstain-None
DISCUSSION: Ivan Ramirez, Director, Construction, provided an overview and background of the project including environmental revalidation, issues encountered, and potential solutions to reduce design errors during construction such as 3D building models.

Commissioners provided comments. Staff responded to comments from commissioners.

Public Comment:

Bruce Ohlson, Bike East Bay
B. NEW ITEM: Approval of Fourth Amendment to Employment Agreement with Timothy Haile, Executive Director
Recommendation: The Chair seeks Authority Board approval of the fourth amendment to the Authority’s employment agreement with Timothy Haile, Executive Director, which will adjust his compensation to $365,967 per year effective December 27, 2023. The term of the amendment will be extended for three additional years through December 27, 2026.

9.4.a
Packet Pg. 46
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation Authority Board Meeting MINUTES
December 20, 2023

ACTION: Vice Chair Arnerich moved to approve the fourth amendment to the Authority’s employment agreement with Timothy Haile, Executive Director, which will adjust his compensation to $365,967 per year effective December 27, 2023 and extend the term of the amendment for three additional years through December 27, 2026, seconded by Commissioner Haskew. The motion was adopted by unanimous vote of the commissioners present, unless otherwise noted.

Noes-None
Absent-Commissioner Carlson
Abstain-None
DISCUSSION: Tarienne Grover, Director, Administrative Services, provided a brief overview and stated the recommendation in accordance with the Brown Act to memorialize the Authority Board’s amendment to the agreement with Timothy Haile, Executive Director.

Chair Glover requested that the Authority Board Chair be given a more significant role in the evaluation process for future amendments.

C. NEW ITEM: Consider the Conduct for Meetings of the Legislative Bodies of the Authority
Recommendation: Staff requests that the Authority Board consider the options for meeting conduct after December 2023, and provide direction to staff on the conduct of meetings for the Authority’s legislative body meetings.

ACTION: Commissioner Noack moved to authorize staff to return to in-person meetings with a remote component for public participation and comment effective January 2, 2024 for all legislative body meetings of the Authority, seconded by Commissioner Perkins. The motion was adopted by unanimous vote of the commissioners present, unless otherwise noted.

Noes-None
Absent-Commissioner Carlson
Abstain-None
DISCUSSION: Tarienne Grover, Director, Administrative Services, provided a background and overview of the options for legislative body meetings after December 2023, and sought direction from the Authority Board on meeting conduct for all legislative body meetings.

Commissioners provided comments. Commissioner Sos requested that we monitor a potential legislative bill related to Citizens Advisory Committees and their ability to continue meeting remotely. Staff responded to comments from commissioners.

9.4.a
Packet Pg. 47
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation Authority Board Meeting MINUTES
December 20, 2023

9. Planning Committee - Regular:

A. PUBLIC HEARING: Approval of the 2023 Congestion Management Program (CMP) Update for Contra Costa County
Recommendation: Staff seeks approval of Resolution 23-43-G, which will adopt the 2023 CMP update for Contra Costa County, authorize staff to make any nonsubstantive changes to finalize the document, and authorize staff to forward the CMP to the Metropolitan Transportation Commission.

ACTION: Commissioner Kelley moved to approve Resolution 23-43-G, which will adopt the 2023 Congestion Management Program (CMP) update for Contra Costa County, authorize staff to make any non-substantive changes to finalize the document, and authorize staff to forward the CMP to the Metropolitan Transportation Commission, seconded by Commissioner Sos. The motion was adopted by unanimous vote of the commissioners present, unless otherwise noted.

Noes-None
Absent-Commissioner Carlson
Abstain-None
DISCUSSION: Matt Kelly, Senior Transportation Planner, provided an overview and background of the 2023 CMP update for Contra Costa County, discussed the five components such as monitoring the level-of-service standards on roadways and major arterials, establishing performance measures for roadways and the multimodal system, developing a Capital Improvement Program, analyzing the impacts of land use on the transportation system, and establishing a Travel Demand Element, and discussed the current efforts to demonstrate consistency with Plan Bay Area 2050, monitor level-of-service at intersections around the county, and adopt the Metropolitan Transportation Commission’s model.

Chair Glover opened the Public Hearing at 7:28 PM. There were no public comments received. Chair Glover closed the Public Hearing at 7:29 PM.

B. NEW ITEM: Approval to Form a Sub-Committee of the Authority Board to Develop the Countywide Transportation Plan 2050 (CTP2050)
Recommendation: Staff seeks approval to form a sub-committee of up to three members of the Authority Board to assist with the development of the CTP2050, and appointment of members to serve on the sub-committee.

ACTION: Vice Chair Arnerich moved to approve the formation of a Countywide Transportation Plan (CTP) 2050 Sub-Committee of up to three members of the Authority Board to assist with the development of the CTP2050, and nominated and appointed Commissioners Carlson, Kelley and Sos to serve on the CTP Sub-Committee, seconded by Commissioner Noack. The motion was adopted by unanimous vote of the commissioners present, unless otherwise noted.

9.4.a
Packet Pg. 48
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation Authority Board Meeting MINUTES
December 20, 2023

Noes-Commissioner Thorpe
Absent-Commissioner Carlson
Abstain-None
DISCUSSION: John Hoang, Director, Planning, provided a background and overview of the CTP 2050, need for a sub-committee to assist with the development of the CTP 2050, and appointment of up to three Authority Board members to serve on the sub-committee.

Vice Chair Arnerich nominated Commissioners Carlson, Kelley, and Sos to serve on the CTP 2050 Sub-Committee.

Commissioners provided comments. Commissioner Thorpe stated that there was a lack of representation from East Contra Costa County.

10. CORRESPONDENCE AND COMMUNICATIONS

11. ASSOCIATED COMMITTEE REPORTS
A. Central County (TRANSPAC): Meeting Reports for the regular meetings on October 12, 2023, November 9, 2023, and December 14, 2023 (Attachment and meeting handout if available)
B. East County (TRANSPLAN): Meeting Report for the regular meeting on December 14, 2023 (Meeting handout if available)
C. Southwest County (SWAT): Meeting Report for the regular meeting on December 4, 2023
D. West County (WCCTAC): Meeting Reports for the regular meeting on October 27, 2023 and a special meeting on December 8, 2023 (Attachment and meeting handout if available)

12. AUTHORITY BOARD AND STAFF COMMENTS
A. Chair's Comments and Reports
B. Commissioners' and Ex-Officio Representatives’ Comments and Reports on Activities and Meetings

9.4.a
Packet Pg. 49
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation Authority Board Meeting MINUTES
December 20, 2023

DISCUSSION: Commissioner Haskew provided a report from the California Association of Councils of Governments Board meeting and Retreat on December 7, 2023.

Commissioner Kelley thanked Reps. Glover and Noack for their comments at the Metropolitan Transportation Commission (MTC) Board meeting.

Rep. Foley thanked the commissioners for their support on the Bay Area Rapid Transit (BART) Next Generations Fare Gates project, provided an update on the fare gates project at the BART stations, and discussed improvements for payment processing for BART fares.

Rep. Noack provided an update from the MTC meeting on December 20, 2023, regarding the need for enabling legislation to pursue a ballot measure in 2026, MTC’s authority, public acceptance of a measure, and announced that in January 2024 they will review a proposal for potential legislation.

Rep. Glover discussed the concerns of the transit operators and efforts to work closely together to build a network that works for Contra Costa County. He announced that a meeting will be scheduled with the small transit operators.

C. Executive Staff Comments
DISCUSSION: Timothy Haile, Executive Director, discussed the regional transportation working group meetings, staying apprised of direction from the Metropolitan Transportation Commission (MTC) on transit coordination versus consolidation, announced that the authorizing legislation if approved by MTC in January will be authored by Senator Wiener, and that Authority staff is working closely with the transit operators to form a unified voice around the regional measure, and will keep the Authority Board apprised. Mr. Haile further discussed the 10-year anniversary of the Caldecott Tunnel, provided an update on the dynamic personal micro-transit project, and announced that the Authority won the legacy award for the East Bay Innovation Awards with the ceremony to be held on March 28, 2024 and the Redefining Mobility Summit confirmed for May 7, 2024.

13. CALENDAR
A. December 2023, and January, February, and March 2024 B. Calendar of Upcoming Events

14. ADJOURNMENT to the next regular meeting proposed for January 17, 2024 at 6:00 PM.

DISCUSSION: The meeting was adjourned at 7:47 PM.

9.4.a
Packet Pg. 50
Attachment: CCTA Executive Board Summary and Meeting Minutes December 20, 2023 (Accept Update on Contra Costa Transportation TRANSPAC Committee Meeting Summary Minutes
MEETING DATE: December 14, 2023
MEMBERS PRESENT: Sue Noack (Vice Chair), Carlyn Obringer, Concord; Pleasant Hill, Loella Haskew, Walnut Creek; Mark
Ross, Martinez; Ken Carlson, Contra Costa County
PLANNING COMMISSIONERS PRESENT:

STAFF PRESENT: Pranjal Dixit, County Connection; Smadar Boardman, Walnut Creek; Celestine Do, BART; Ryan
McClain, Pleasant Hill; Matt Todd, TRANSPAC;
Tiffany Gephart, TRANSPAC; Debi Lawrence,

TRANSPAC
GUESTS/PRESENTERS: Scott Simmons
MINUTES PREPARED BY: Tiffany Gephart

1. Convene Regular Meeting / Pledge of Allegiance / Self-Introductions Vice Chair Noack called the meeting to order at 9:00 A.M.

2. Public Comment
There were no comments from the public.

3. Consent Agenda
a. Approval of Minutes:
• Minutes of the November 9, 2023 TRANSPAC Board Meeting. b. CCTA Executive Director’s Report Regarding CCTA Actions/Discussion Items c. Items Approved by the CCTA for Circulation to the Regional Transportation Planning Committees and Related Items of Interest
d. RTPC Meeting Summary Letters
e. CCTA Meeting Updates and Countywide Information Links f. TRANSPAC TAC Appointments to CCTA Committees. Action: Appoint Briana Byrne (Walnut Creek) as the primary representative, Lynne Filson (Martinez) as the alternate representative and Scott Simmons as the citizen representative to the CBPAC for the term January 1, 2024 through December 31, 2025. Appoint Ryan McClain (Pleasant Hill) to serve as the

9.4.b
Packet Pg. 51
Attachment: TRANSPAC Committee Meeting Summary Minutes December 14, 2023 (Accept Update on Contra Costa Transportation Authority primary representative and Lynne Filson (Martinez) as the alternate representative to the TCC for the term ending March 31, 2025. Appoint Abhishek Parikh as the primary representative and Virendra Patel as the alternate representative for the City of Concord on the Innovate 680 TAC.

On a motion by Commissioner Haskew seconded by Commissioner Carlson to approve the consent agenda by unanimous vote of the members present (Ross, Obringer, Noack, Haskew, Carlson).

End Consent Agenda

4. Election of Chair and Vice Chair
On a motion by Commissioner Carlson seconded by Commissioner Haskew to appoint Commissioner Noack as the TRANSPAC Chair and Commissioner Obringer as the TRANSPAC Vice Chair for the term February 1, 2024 through January 31, 2025 by unanimous vote of the members present (Ross, Obringer, Noack, Haskew, Carlson).

5. Appointment of TRANSPAC Representatives to the CCTA.

On a motion by Commissioner Haskew seconded by Commissioner Obringer to appoint Commissioner Noack, as the primary TRANSPAC representative to the CCTA Board and Commissioner Cloven as the alternate TRANSPAC representative to the CCTA Board for the term February 1, 2024 through January 31, 2026 by unanimous vote of the members present (Ross, Obringer, Noack, Haskew, Carlson).
.

6. MEASURE J LINE 20A FUNDS PROGRAM POLICIES – FY 2024/2025 – FY 2025/2026.

Tiffany Gephart introduced the item and commented that staff has incorporated the feedback with regard to outreach and would review the next steps. Ms. Gephart noted that there were no substantive changes to the application material itself. Mr. Todd reviewed the Measure J Line 20a fund estimate and cash flow.

Commissioner Noack commented that the reserve was large and in the past the reserve was used to supplement the Measure J Line 20a program when application requests exceed the available funding and asked if this should be discussed when the applications are submitted.

Mr. Todd confirmed that in the past cycle the reserve was used as stated by Commissioner Noack. Mr. Todd also noted that part of the reason for the large reserve is to account for the year gap looking ahead to the end of Measure J collections.

Ms. Gephart reviewed the outreach and program schedule. Ms. Gephart commented staff is requesting the approval of the call for projects at this meeting. Following the release of the call

9.4.b
Packet Pg. 52
Attachment: TRANSPAC Committee Meeting Summary Minutes December 14, 2023 (Accept Update on Contra Costa Transportation Authority for projects to the TRANSPAC distribution list, staff will contact past recipients to notify them of the call for projects release. A reminder email will also be sent to the distribution list a week before the application deadline. An application workshop is tentatively scheduled for January 9th. A summary of applications received will be brought to TAC in January and the Board in February. Review and scoring of the applications will take place between February and April.

Staff will seek Board approval of the draft program in May and the final program approval will be sought in June.

Commissioner Noack asked if there is sufficient time in the process for applicant presentations if desired as applicant presentations have been requested in the past. Mr. Todd suggested that presentations be held in April.

Ms. Gephart continued with more detailed outreach efforts which are summarized in the staff report.

Commissioner Obringer asked if staff recalled which agency missed the application deadline in a past cycle and was not considered. Mr. Todd reiterated that staff will reach out to past applicants and send a reminder to the TRANSPAC distribution to ensure that organizations have every opportunity to apply. In addition, staff will send out social media language to the jurisdictions and CCTA to expand the reach as much as possible.

Commissioner Obringer asked if the past late application was for an organization that had not been previously funded. Commissioner Haskew affirmed that it was not a previous recipient.

Commissioner Haskew asked how vast the distribution list is and if the Board will be provided a list of names organizations requesting funding. Mr. Todd summarized the general agencies that receive the distribution list then noted relevant subcommittees that staff intend to reach out to.

Commssioner Noack expressed a concern that with extensive outreach there may be requests beyond what funding is available and that it will be necessary to thoroughly review the applications rather than adopting the approach that previously funded programs will be assumed to be funded again.

On a motion by Commissioner Haskew seconded by Commissioner Obringer to approve the final call for projects and application material for the FY 2024/2025 and FY 2025/2026 Measure J Line 20a Program and release the call for projects by unanimous vote of the members present(Ross, Obringer, Noack, Haskew, Carlson).

9.4.b
Packet Pg. 53
Attachment: TRANSPAC Committee Meeting Summary Minutes December 14, 2023 (Accept Update on Contra Costa Transportation Authority

7. TRANSPAC CCTA REPRESENTATIVE REPORTS.

Planning Committee: Commissioner Haskew commented that the Planning Committee approved the MOU for Measure X funds for Accessible Transportation and there was a Congestion Management Program update for Contra Costa County. Commissioner Haskew further noted that a main issue under discussion at CALCOG is the gas tax.

Administration and Project Committee: Commissioner Noack noted that the two items of discussion were Phase 2 of San Pablo Dam Road and the I-80 Interchange engineering focus as well as design changes that needed to happen along the McCallum Trail crossing due to an engineering issue. Commissioner Noack further noted administrative items such as a legislative update and review of the calendar.

8. METROPOLITAN TRANSPORTATION COMMISSION REPORT.

Commissioner Noack noted that there was substantive discussion on legislation that will allow a transportation ballot measure in 2026. There was discussion on what type of measure, the amount of funding and what MTC’s authority will be and the transformation of the transit system in the Bay Area to work more efficiently and address the fiscal cliff. On the November 24th ballot there will be bond measure for affordable housing as well as a state mental health bond measure. Commissioner Noack noted that 80% of the measure will go to four cities not in Contra Costa County and 20% of the measure will be controlled by MTC.

Commissioner Obringer asked what the 20% will go toward. Commissioner Noack replied that it will be a grant process and there is discussion around funding priorities. Commissioner Noack noted that 52% of the 20% will go towards production and then there is a portion for programming and services.

Commissioner Obringer further asked if MTC will be looking at projects close to transportation.

Commissioner Noack commented that the funding is not tied to the Transit Oriented Development (TDM) policy.

9. TAC ORAL REPORTS BY JURISDICTION
No comments from the TAC.

10. BOARDMEMBER COMMENTS
No Comments from the Board.

10. MANAGING DIRECTOR’S REPORT

No comments from the Managing Director.

9.4.b
Packet Pg. 54
Attachment: TRANSPAC Committee Meeting Summary Minutes December 14, 2023 (Accept Update on Contra Costa Transportation Authority

11. ADJOURN / NEXT MEETING The meeting adjourned at 9:35 a.m. The next regular meeting will be held on February 8, 2023 at the City of Pleasant Hill Large Community Room – 100 Gregory Lane, Pleasant Hill. Remote teleconferencing information for members of the public will be included in the posted meeting materials.

9.4.b
Packet Pg. 55
Attachment: TRANSPAC Committee Meeting Summary Minutes December 14, 2023 (Accept Update on Contra Costa Transportation Authority

CITY COUNCIL STAFF REPORT
Meeting Date: February 26, 2024
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-24 APPROVING AN ADDITIONAL

CONTRIBUTION TO THE PUBLIC AGENCIES POST-EMPLOYMENT

BENEFITS TRUST PROGRAM WITH PUBLIC AGENCY RETIREMENT
SERVICES (PARS) SECTION 115 TRUST

SYNOPSIS
The City Council is requested to review and adopt the proposed resolution approving an additional contribution into the City’s Public Agencies Post-Employment Benefits Trust Program with Public Agency Retirement Services (PARS), a Section 115 Trust based on the Pension Rate Stabilization Funding Policy, as recommended by the Budget Committee

DISCUSSION
Background
On May 2, 2022, the City Council adopted Resolution No. 30-22 approving a Section 115 Trust with PARS, with an initial contribution of $1.0 million, and approved the Pension Rate Stabilization (PRSP) Funding Policy, which includes potential contributions based on excess audited unassigned General Fund Balance.
“The City will consider making additional contributions to the Trust based on the net position of the General Fund recommended by the City Manager and Finance Manager. The amount will be based on unassigned General Fund Balance when revenues exceed costs (not including Measure K funds) in the audited financial statements. The contribution amount will be based on the annual excess audited unassigned General Fund Balance (not including Measure K). The recommended contribution amount will be based on the higher of 10% or $50,000 of the excess unassigned General Fund Balance.”
Audited General Fund Balance
At its meeting of February 14, 2024, the Budget Committee received the Fiscal Year 2022/2023 (FY 22/23) audited financial statements. For financial reporting purposes, the General Fund in the Annual Comprehensive Financial Report (ACFR) includes other general ledger funds, such as the Measure K Fund and the CARES Act Fund. The Measure K Fund is included since this is considered a general sales tax revenue, even though the City Council has prioritized specific

9.5 Packet Pg. 56
projects and programs. The CARES Act Fund was created to track COVID-19 costs, so the City could reimburse itself from available grant sources. The fund was named the CARES Act Fund to reflect the initial source of funding, without which the General Fund would have been responsible for covering these costs. Below is a detail of each of those components that is reflected in the General Fund ACFR:

General Fund
Only Measure K CARES Act
ACFR - General
Fund
Beginning Fund Balance - June 30, 2022 $11,908,277 $10,190,465 ($149) $22,098,593 Fiscal Year 2023 Activity:

Revenues including transfers in 31,171,619 5,693,890 100,000 36,965,509 Expenditures including transfer out (29,293,870) (11,426,844) (99,851) (40,820,565) Change in Fund Balance 1,877,749 (5,732,954) 149 (3,855,056) Ending Fund Balance - June 30, 2023 $13,786,026 $4,457,511 $0 $18,243,537 The fiscal year ending result was a net increase of $1,877,749 for the “General Fund Only.” Based on the audited results, the General Fund Balance increased from the previous fiscal year.

Therefore, there are excess funds to contribute to the PARS Section 115 Trust. Based on the policy approved by City Council, the unassigned fund balance increased $157,009 (see table below, amount is in Annual Comprehensive Financial Report p.19), since some of the amounts are assigned to the reserves and/or encumbrances. Also, the City Council approved an initial transfer based on preliminary financial results last December, pursuant to the recommendation of the Budget Committee, for $100,000 (Resolution No. 82-23). In accordance with the PRSP Funding Policy, there is an additional $57,009 to be transferred to the Section 115 PARS Trust.

General
Fund Only
Unassigned Fund Balance - June 30, 2023 (1) $2,968,559
Unassigned Fund Balance - June 30, 2022 (2) $1,398,465
Increase (1) - (2) = (3) $1,570,094
PRSP Policy - 10% of Unassigned Fund Balance
or $50,000
(3) * 10% = (4) $157,009
City Council approved $100,000 transfer on
December 18, 2023 (5) ($100,000)
PRSP Transfer to PARS 115 Trust per Policy
(4) - (5) $57,009

9.5 Packet Pg. 57
The Budget Committee’s recommendation to the City Council is to increase the annual contribution to $300,000 based on the increase of the audited unassigned fund balance of $1.57 million. Since the City Council already approved a contribution of $100,000 last December, the Budget Committee’s recommendation would require an additional contribution of $200,000, in lieu of the required $57,009, to the PARS Section 115 Trust.

FISCAL IMPACT
Adoption of the proposed resolution will result in a transfer of $200,000 into the PARS Section 115 Trust using the audited financial information in accordance with the PRSP Funding Policy.

PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.

RECOMMENDED CITY COUNCIL ACTION
Adopt the proposed resolution approving an additional contribution into the City’s Public Agencies Post-Employment Benefits Trust Program with Public Agency Retirement Services (PARS) a Section 115 Trust, as recommended by the Budget Committee.

ALTERNATIVES TO RECOMMENDED ACTION
Do not adopt the proposed resolution and provide direction to staff.

ATTACHMENT(S):
a. Proposed Resolution – approving additional contribution into the City’s Public Agencies Post-Employment Benefits Trust Program with Public Agency Retirement Services a Section 115 Trust
b. Resolution No. 30-22 - includes the City of Pleasant Hill Pension Rate Stabilization Program Funding Policy Proposed Resolution
c. Resolution No. 82-23 – approving the City of Pleasant Hill’s additional contribution of $100,000 to Public Agency Retirement Services a Section 115 Trust Prepared by: Erick Cheung, Finance Manager
Approved by: Ethan Bindernagel, City Manager

9.5 Packet Pg. 58
RESOLUTION NO. -24

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANT HILL APPROVING AN ADDITIONAL CONTRIBUTION TO THE PUBLIC AGENCIES POSTEMPLOYMENT BENEFITS TRUST PROGRAM WITH PUBLIC AGENCY RETIREMENT SERVICES (PARS) SECTION 115 TRUST
WHEREAS, the City provides its permanent employees with a defined benefit pension through the California Public Employees’ Retirement System (CalPERS); and WHEREAS, Public Agency Retirement Services (PARS) has developed Public Agencies Post-Employment Benefits Trust (the “Program”) as a multiple employer trust so that public agencies, regardless of size, can join the program to receive the necessary economies of scale to keep administrative fees low and avoid any setup costs; and WHEREAS, PARS has partnered with U.S. Bank and its sub-adviser HighMark Capital Management Inc., as trustee to provide investment services for the Program. To date, 259 California public agencies have adopted the Program for the establishment of a Pension Rate Stabilization program through PARS, including 125 cities and towns; and WHEREAS, the City Council, at its meeting of May 2, 2022, adopted Resolution No. 30- 22 approving a Section 115 Trust with PARS, with an initial contribution of $1 million, and adopted the City of Pleasant Hill Pension Rate Stabilization Program Funding and Withdrawal Policy; and
WHEREAS, the City of Pleasant Hill Pension Rate Stabilization Program Funding and Withdrawal Policy states the City will make additional contributions based on audited financial statements. The amount will be the higher of 10% or $50,000 of the excess unassigned General Fund Balance; and
WHERAS, the City Council approved Resolution No. 83-23 to transfer $100,000 based on the Fiscal Year 2022/2023 unaudited information to take advantage of potential interest earnings; and
WHEREAS, the Budget Committee received the audited financial information for the City at its meeting of February 14, 2024, which showed the unassigned General Fund balance increasing $1,570,094 million for Fiscal Year 2022/2023; and WHERAS, the Pension Rate Stabilization Program Funding and Withdrawal Policy would require an additional $57,009; and
WHEREAS, the Budget Committee’s recommendation to City Council is to contribute an additional $200,000, in lieu of the required $57,009, for a total contribution of $300,000, based on the audited unassigned fund balance results.

NOW, THEREFORE, BE IT RESOLVED, the City Council of the City of Pleasant Hill approves an additional contribution to the Public Agencies Post-Employment Benefits Trust Program with Public Agency Retirement Services Section 115 Trust for $200,000.

9.5.a
Packet Pg. 59
Attachment: Proposed Resolution (PARS Additional Contribution) ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting of the City Council held on the 26th day of February, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
MATTHEW RINN, Mayor
ATTEST:

LYONE P. CONNER, City Clerk

9.5.a
Packet Pg. 60
Attachment: Proposed Resolution (PARS Additional Contribution) RESOLUTION NO. 30-22

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANT HILL RESCINDING AND REPLACING RESOLUTION NO. 26-22, AUTHORIZING THE CITY

MANAGER TO EXECUTE AN AGREEMENT WITH PUBLIC AGENCY RETIREMENT SERVICES TO ESTABLISH AND ADMINISTER A SECTION 115 TRUST WITH AN INTIAL CONTRIBUTION OF $1 MILLION AND ADOPT THE PUBLIC AGENCIES POSTEMPLOYMENT BENEFITS TRUST FOR THE CITY OF PLEASANT HILL PENSION

RATE STABILIZATION PROGRAM FUNDING AND WITHDRAWAL POLICY WHEREAS, the City provides its permanent employees with a defined benefit pension through the California Public Employees' Retirement System (CalPERS); and WHEREAS, CalPERS has made a number of changes in recent years which have increased the City's required payments to the pension plan and decreased the plan's funded status. Those changes that CalPERS has enacted are designed to increase the financial stability of its pension program, but result in higher City contributions; and
WHEREAS, City had an actuarial firm, Bartel Associates, review the City's funding options to manage the pension liability and recommended establishing a Section 115 Trust; and WHEREAS, a Section 115 Trust is a tool to pre-fund pension liabilities through an IRS reviewed program; and
WHEREAS, Public Agency Retirement Services (PARS) has developed Public Agencies Post-Employment Benefits Trust (the "Program") as a multiple employer trust so that public agencies regardless of size can join the program to receive the necessary economies of scale to keep administrative fees low and avoid any setup costs; and WHEREAS, PARS has partnered with U.S. Bank and its sub-adviser HighMark Capital Management Inc., as trustee to provide investment services for the Program. To date, 259 California public agencies have adopted the Program for the establishment of a Pension Rate Stabilization program through PARS, including 125 cities and towns; and WHEREAS, the Budget Committee, at its meeting of April 6, 2022, approved the recommendation to proceed with the Section 115 Trust with PARS, an initial contribution of $1 million and adopt the City of Pleasant Hill Pension Rate Stabilization Program Funding and Withdrawal Policy.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Pleasant Hill that:

1. The resolution rescinds and replaces Resolution No. 26-22;

2. Adopts the PARS Public Agencies Post-Employment Benefits Trust, effective May 2, 2022;

9.5.b
Packet Pg. 61
Attachment: Resolution No. 30-22 (PARS Additional Contribution)

3. Approves the PARS Services and Trust Agreement attached as Exhibit 1;

4. Approves an initial contribution of $1.0 million to be deposited into the Section 115 Trust;

5. Adopts the City of Pleasant Hill Pension Rate Stabilization Program Funding and Withdrawal Policy attached as Exhibit 2;

6. Appoints the City Treasurer, and/or the Finance Manager, or their successors/designees as the City's Plan Administrators for the Program; and

7. The City's Plan Administrators are hereby authorized to execute the PARS legal and administrative documents on behalf of the City and to take whatever additional actions are necessary to maintain the City's participation in the Program and to maintain compliance of any relevant regulation issued or as may be issued; therefore, authorizing him/her to take whatever additional actions are required to administer the City's Program.

ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting of the City Council held on the 2nd day of May, 2022, by the following vote:

AYES:

NOES:

ABSENT:

RECUSED:

ATTEST:

Carlson, Flaherty, Noack, Harris
None
None
Rinn
MICHAEL G. HARRIS, OD, Mayor

9.5.b
Packet Pg. 62
Attachment: Resolution No. 30-22 (PARS Additional Contribution) Exhibit 1

AGREEMENT FOR ADMINISTRATIVE SERVICES
This agreement ("Agreement") is made this __ day of ______ , 2022, between Phase II Systems, a corporation organized and existing under the laws of the State of California, doing business as Public Agency Retirement Services and PARS (hereinafter "PARS") and the City of Pleasant Hill ("Agency").

WHEREAS, the Agency has adopted the PARS Public Agencies Post-Employment Benefits Trust for the purpose of pre-funding pension obligations and/or Other Post-Employment Benefits ("OPEB") obligations ("Plan") and is desirous of retaining PARS as Trust Administrator to the Trust, to provide administrative services.

NOW THEREFORE, the parties agree:

1. Services. PARS will provide the services pertaining to the Plan as described in the exhibit attached hereto as "Exhibit IA" ("Services") in a timely manner, subject to the further provisions of this Agreement.

2. Fees for Services. PARS will be compensated for performance of the Services as described in the exhibit attached hereto as "Exhibit lB".

3. Payment Terms. Payment for the Services will be remitted directly from Plan assets unless the Agency chooses to make payment directly to PARS. In the event that the Agency chooses to make payment directly to PARS, it shall be the responsibility of the Agency to remit payment directly to PARS based upon an invoice prepared by PARS and delivered to the Agency. If payment is not received by PARS within thirty (30) days of the invoice delivery date, the balance due shall bear interest at the rate of 1.5% per month. If payment is not received from the Agency within sixty ( 60) days of the invoice delivery date, payment plus accrued interest will be remitted directly from Plan assets, unless PARS has previously received written communication disputing the subject invoice that is signed by a duly authorized representative of the Agency.

4. Fees for Services Beyond Scope. Fees for services beyond those specified in this Agreement will be billed to the Agency at the rates indicated in the PARS' standard fee schedule in effect at the time the services are provided and shall be payable as described in Section 3 of this Agreement. Before any such services are performed, PARS will provide the Agency with a detailed description of the services, terms, and applicable rates for such services. Such services, terms, and applicable rates shall be agreed upon in writing and executed by both parties.

5. Information Furnished to PARS. PARS will provide the Services contingent upon the Agency providing PARS the information specified in the exhibit attached hereto as "Exhibit 1 C" ("Data"). It shall be the responsibility of the Agency to certify the accuracy, content, and completeness of the Data so that PARS may rely on such information without further audit. It shall further be the responsibility of the Agency to deliver the Data to PARS in such a manner that allows for a reasonable amount of time for the Services to be performed. PARS shall indicate to Agency the time in which to deliver the Data so it can perform the Services. Unless specified in Exhibit IA, PARS

9.5.b
Packet Pg. 63
Attachment: Resolution No. 30-22 (PARS Additional Contribution) shall be under no duty to question Data received from the Agency, to compute contributions made to the Plan, to determine or inquire whether contributions are adequate to meet and discharge liabilities under the Plan, or to determine or inquire whether contributions made to the Plan are in compliance with the Plan or applicable law.

In addition, PARS shall not be liable for nonperformance of Services to the extent such nonperformance is caused by or results from erroneous and/or late delivery of Data from the Agency. In the event that the Agency fails to provide Data in a complete, accurate and timely manner and pursuant to the specifications in Exhibit 1 C, PARS reserves the right, notwithstanding the further provisions of this Agreement, to terminate this Agreement upon no less than ninety (90) days written notice to the Agency.

6. Records. Throughout the duration of this Agreement, and for a period of five (5) years after termination of this Agreement, PARS shall provide duly authorized representatives of Agency access to all records and material relating to calculation of PARS' fees under this Agreement. Such access shall include the right to inspect, audit and reproduce such records and material and to verify reports furnished in compliance with the provisions of this Agreement. All information so obtained shall be accorded confidential treatment as provided under applicable law.

7. Confidentiality. Without the Agency's consent, PARS shall not disclose any information relating to the Plan except to duly authorized officials of the Agency, subject to applicable law, and to parties retained by PARS to perform specific services within this Agreement. The Agency shall not disclose any information relating to the Plan to individuals not employed by the Agency without the prior written consent of PARS, except as such disclosures may be required by applicable law.

8. Independent Contractor. PARS is and at all times hereunder shall be an independent contractor. As such, neither the Agency nor any of its officers, employees or agents shall have the power to control the conduct of PARS, its officers, employees, or agents, except as specifically set forth and provided for herein. PARS shall pay all wages, salaries, and other amounts due its employees in connection with this Agreement and shall be responsible for all reports and obligations respecting them, such as social security, income tax withholding, unemployment compensation, workers' compensation, and similar matters.

9. Indemnification. PARS and Agency hereby indemnify each other and hold the other harmless, including their respective officers, directors, and employees, from any claim, loss, demand, liability, or expense, including reasonable attorneys' fees and costs, incurred by the other as a consequence of, to the extent, PARS' or Agency's, as the case may be, negligent acts, errors or omissions with respect to the performance of their respective duties hereunder.

10. Compliance with Applicable Law. The Agency shall observe and comply with federal, state, and local laws in effect when this Agreement is executed, or which may come into effect during the term of this Agreement, regarding the administration of the Plan.

PARS shall observe and comply with federal, state, and local laws in effect when this Agreement is executed, or which may come into effect during the term of this Agreement, regarding Plan administrative services provided under this Agreement.

9.5.b
Packet Pg. 64
Attachment: Resolution No. 30-22 (PARS Additional Contribution)

11. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. In the event any party institutes legal proceedings to enforce or interpret this Agreement, venue and jurisdiction shall be in the County of Contra Costa.

12. Force Majeure. When a party's nonperformance hereunder was beyond the control and not due to the fault of the party not performing, a party shall be excused from performing its obligations under this Agreement during the time and to the extent that its performance is prevented by such cause. Such cause shall include, but not be limited to:
any incidence of fire, flood, acts of God or unanticipated communicable disease, acts of terrorism or war commandeering of material, products, plants or facilities by the federal, state or local government, a material act or omission by the other party or any law, ordinance, rule, guidance or recommendation by the federal, state or local government, or any agency thereof, which becomes effective after the date of this Agreement that delays or renders impractical either party's performance under the Agreement.

13. Ownership of Reports and Documents. The originals of all letters, documents, reports, and data produced for the purposes of this Agreement shall be delivered to and become the property of the Agency. Copies may be made for PARS but shall not be furnished to others without written authorization from Agency.

14. Designees. The Plan Administrator of the Agency, or their designee, shall have the authority to act for and exercise any of the rights of the Agency as set forth in this Agreement, subsequent to and in accordance with the written authority granted by the Governing Body of the Agency, a copy of which writing shall be delivered to PARS.

Any officer of PARS, or his or her designees, shall have the authority to act for and exercise any of the rights of PARS as set forth in this Agreement.

15. Notices. All notices hereunder and communications regarding the interpretation of the terms of this Agreement, or changes thereto, shall be effected by delivery of the notices in person or by depositing the notices in the U.S. mail, registered or certified mail, return receipt requested, postage prepaid and addressed as follows:
(A) To PARS: PARS; 4350 Von Karman Avenue, Suite 100, Newport Beach, CA 92660; Attention: President
(B) To Agency: City of Pleasant Hill; 100 Gregory Lane, Pleasant Hill, CA 94523; Attention: City Manager
Notices shall be deemed given on the date received by the addressee.

16. Term of Agreement. This Agreement shall remain in effect for the period beginning May 2, 2022 and ending May 1, 2025 ("Term"). This Agreement may be terminated at any time by giving thirty (30) days written notice to the other party of the intent to terminate. Absent a thirty (30) day written notice to the other party of the intent to terminate, this Agreement will continue unchanged for successive twelve-month periods following the Term.

17. Amendment. This Agreement may not be amended orally, but only by a written instrument executed by the parties hereto.

9.5.b
Packet Pg. 65
Attachment: Resolution No. 30-22 (PARS Additional Contribution)

18. Entire Agreement. This Agreement, including exhibits, contains the entire understanding of the parties with respect to the subject matter set forth in this Agreement.

In the event a conflict arises between the parties with respect to any term, condition or provision of this Agreement, the remaining terms, conditions, and provisions shall remain in full force and legal effect. No waiver of any term or condition of this Agreement by any party shall be construed by the other as a continuing waiver of such term or condition.

19. Attorneys Fees. In the event any action is taken by a party hereto to enforce the terms of this Agreement the prevailing party herein shall be entitled to receive its reasonable attorney's fees.

20. Counterparts. This Agreement may be executed in any number of counterparts, and in that event, each counterpart shall be deemed a complete original and be enforceable without reference to any other counterpart.

21. Headings. Headings in this Agreement are for convenience only and shall not be used to interpret or construe its provisions.

22. Effective Date. This Agreement shall be effective on the date first above written, and also shall be the date the Agreement is executed.

AGENCY:

BY:

June Catalano
TITLE: City Manager
DATE:

PARS:

BY: ~~2_
Tod Hammeras
TITLE: Chief Financial Officer
DATE: 4/14/2022

9.5.b
Packet Pg. 66
Attachment: Resolution No. 30-22 (PARS Additional Contribution)

EXHIBIT IA

SERVICES
PARS will provide the following services for the City of Pleasant Hill Public Agencies PostEmployment Benefits Trust:

1. Plan Installation Services:
(A) Meeting with appropriate Agency personnel to discuss plan prov1s10ns, implementation timelines, actuarial valuation process, funding strategies, benefit communication strategies, data reporting, and submission requirements for contributions/reimbursements/ distributions;
(B) Providing the necessary analysis and advisory services to finalize these elements of the Plan;
(C) Providing the documentation needed to establish the Plan to be reviewed and approved by Agency legal counsel. Resulting final Plan documentation must be approved by the Agency prior to the commencement of PARS Plan Administration Services outlined in Exhibit IA, paragraph 2 below.

2. Plan Administration Services:
(A) Monitoring the receipt of Plan contributions made by the Agency to the trustee of the PARS Public Agencies Post-Employment Benefits Trust ("Trustee"), based upon information received from the Agency and the Trustee;
(B) Performing periodic accounting of Plan assets, reimbursements/distributions, and investment activity, based upon information received from the Agency and/or Trustee;
(C) Coordinating the processing of distribution payments pursuant to authorized direction by the Agency, and the provisions of the Plan, and, to the extent possible, based upon Agency-provided Data;
(D) Coordinating actions with the Trustee as directed by the Plan Administrator within the scope of this Agreement;
(E) Preparing and submitting a monthly report of Plan activity to the Agency, unless directed by the Agency otherwise;
(F) Preparing and submitting an annual report of Plan activity to the Agency; (G) Facilitating actuarial valuation updates and funding modifications for compliance with the applicable GASB pronouncements and/or statements, if prefunding OPEB obligations;
(H) Coordinating periodic audits of the Trust;
(I) Monitoring Plan and Trust compliance with federal and state laws.

3. PARS is not licensed to provide and does not offer tax, accounting, legal, investment or actuarial advice.

9.5.b
Packet Pg. 67
Attachment: Resolution No. 30-22 (PARS Additional Contribution) EXHIBIT 1B

FEES FOR SERVICES
PARS will be compensated for performance of Services, as described in Exhibit IA based upon the following schedule:

An annual asset fee shall be paid from Plan assets based on the following schedule:

For Plan Assets from:
$1 to
$10,000,001 to
$15,000,001 to
$50,000,001 and
$10,000,000
$15,000,000
$50,000,000
above
Annual Rate:

0.25%

0.20%

0.15%

0.10%
Annual rates are prorated and paid monthly. The annual asset fee shall be calculated by the following formula [Annual rate divided by 12 (months of the year) multiplied by the Plan asset balance at the end of the month]. Trustee and Investment Management Fees are not included.

9.5.b
Packet Pg. 68
Attachment: Resolution No. 30-22 (PARS Additional Contribution)

EXHIBIT IC

DATA REQUIREMENTS
PARS will provide the Services under this Agreement contingent upon rece1vmg the following information. Agency is solely responsible for ensuring that all information and documentation provided to PARS is true, correct, and authorized:

1. Executed Legal Documents:
(A) Certified Resolution
(B) Adoption Agreement to the Public Agencies Post-Employment Benefits Trust (C) Trustee Investment Forms

2. Contribution - completed Contribution Transmittal Form signed by the Plan Administrator ( or authorized Designee) which contains the following information:
(A) Agency name
(B) Contribution amount
(C) Contribution date
(D) Contribution method (Check, ACH, Wire)

3. Distribution - completed Payment Reimbursement/Distribution Form signed by the Plan Administrator ( or authorized Designee) which contains the following information:
(A) Agency name
(B) Payment reimbursement/distribution amount
(C) Applicable statement date
(D) Copy of applicable premium, claim, statement, warrant, and/or administrative expense evidencing payment
(E) Signed certification of reimbursement/distribution from the Plan Administrator ( or authorized Designee)

4. Other information pertinent to the Services as reasonably requested by PARS and Actuarial Provider.

9.5.b
Packet Pg. 69
Attachment: Resolution No. 30-22 (PARS Additional Contribution) Exhibit 2
City of Pleasant Hill
Pension Rate Stabilization Program
(PRSP)
Funding Policy

9.5.b
Packet Pg. 70
Attachment: Resolution No. 30-22 (PARS Additional Contribution) Purpose and Introduction
The purpose of this Pension Rate Stabilization Program (PRSP) Funding Policy ("Policy") is to establish a methodology and a process for funding current and future costs associated with the City's contractual obligations to provide pension benefits as set forth in the City's labor agreements.

Adoption and Implementation
The City Council is responsible for adopting the Pension Rate Stabilization Program (PRSP) and for approving any significant revision. The designated Plan Administrators are responsible for developing administrative procedures, as needed, to implement the Policy. In this role, the Plan Administrators are authorized to make minor administrative changes in the Policy as long as they are intended to carry out the purpose of this Policy and will not have any significant policy impact. The City Council will review and approve this policy via resolution, as needed, to ensure it meets the current and future needs of the City.

Initial Set Up
The City shall establish an Internal Revenue Service Code Section 115 approved irrevocable trust to achieve a higher rate of return on investments than that earned in LAIF.

Once the City transfers funds into such a trust, they can only be utilized for payment of employee pension costs.

The following outlines the governance and administration of the proposed Trust:

City Council has the authority to establish the Trust and define policies for the administration of the Trust funds.

The Plan Administrator will have overall responsibility for the Trust funds and will develop and manage procedures in accordance with the City Council's adopted policies. The City Council will designate the City Treasurer and the Finance Manager as the Plan Administrators.

Trust Administrator, Public Agency Retirement Services (PARS), keeps plan documents current to ensure that they reflect the substantive plan and provides ongoing consulting, reporting and plan accounting records.

Trustee, currently US Bank, will be the plan's trustee and custodian and will safeguard the assets in the Trust, hold the investment securities for safekeeping and make disbursements on request.
1 9.5.b
Packet Pg. 71
Attachment: Resolution No. 30-22 (PARS Additional Contribution) Investment Manager, currently Highmark Capital Management, will recommend investment portfolio allocations based upon the Pension Trust Funds' adopted investment policies and manage those assets accordingly.

Trust Administrator
PARS has established a multiemployer irrevocable trust in compliance with the requirements of Section 115 of the Internal Revenue Code. While it is a multi-employer trust, each employer's contributions benefit only its own employees. There is no sharing of either liability or investment earnings, and separate employer accounts are maintained.

PARS serves as the administrator of the Trust.

Trustee
Any contributions made to the program are held and invested by a trustee. The trustee duties include:

1. Safeguarding assets for the benefit of retirees;

2. Providing oversight protection of the investments;

3. Custodian of the assets; and

4. Disbursing funds to pay for pension costs.

Investment Manager
Investment Manager assists the City with selecting investment strategy depending on what rate of return the City expects to earn and level of risk tolerance the City is willing to take. Investment Manager provides annual review of the investment portfolio and asset allocation as well as takes on fiduciary responsibility for the City's pension asset management.

Asset Allocation Investment Strategy
PARS provides flexibility to the City in the selection of the investment strategy for its funds in the Trust, giving the City control on target yield and level of risk on its investments. The City has the ability to select one of five Investment Options that best suits its desired or expected return on its investments in the Trust. Each Investment Option allocates the assets in varying investment combinations of equity, fixed income, and cash. With each Investment Option, as the expected rate of return increases, so does the assumed risk. 2 9.5.b
Packet Pg. 72
Attachment: Resolution No. 30-22 (PARS Additional Contribution) The Asset Allocation Strategies and the corresponding Investment Options currently available are:

Equity Fixed Income Cash
Conservative 5%-20% 60% - 95% 0% - 20%
Moderately Conservative 20% -40% 50% - 80% 0% - 20%
Moderate 40% - 60% 40% - 60% 0% - 20%
Balanced 50% - 70% 30% - 50% 0% - 20%
Capital Appreciation 65% - 85% 10% - 30% 0% - 20%
The City Council will select the most appropriate investment option in the Trust.

This Policy recognizes that there will be investment market place volatility and that actual economic and demographic experience will differ from assumed experience. Accordingly, this Policy is intended to provide flexibility to smooth such volatility and experience in a reasonable, systematic and financially sound manner.

Contributions
To begin the funding of the Trust, the City will make a one-time contribution of $1.0 million to the Trust utilizing General Fund resources.

The City will consider making additional contributions to the Trust based on the net position of the General Fund recommended by the City Manager and Finance Manager. The amount will be based on unassigned General Fund Balance when revenues exceed costs (not including Measure K funds) in the audited financial statements. The contribution amount will be based on the annual excess audited unassigned General Fund Balance (not including Measure K). The recommended contribution amount will be based on the higher of 10% or $50,000 of the excess unassigned General Fund Balance.

Withdrawals
In order to establish a procedure for withdrawals of the funds:
a. City Manager will make recommendations to City Council during the budget process.
b. If needed immediately, City Manager will bring City Council Agenda Item for approval.
3 9.5.b
Packet Pg. 73
Attachment: Resolution No. 30-22 (PARS Additional Contribution) RESOLUTION NO. 82-23

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANT HILL APPROVING AN ADDITIONAL CONTRIBUTION TO THE PUBLIC AGENCIES POSTEMPLOYMENT BENEFITS TRUST PROGRAM WITH PUBLIC AGENCY RETIREMENT SERVICES ( PARS) SECTION 115 TRUST
WHEREAS, the City provides its permanent employees with a defined benefit pension through the California Public Employees’ Retirement System ( CalPERS); and WHEREAS, Public Agency Retirement Services ( PARS) has developed Public Agencies Post-Employment Benefits Trust (the “ Program”) as a multiple employer trust so that public agencies regardless of size can join the program to receive the necessary economies of scale to keep administrative fees low and avoid any setup costs; and WHEREAS, PARS has partnered with U.S. Bank and its sub-adviser HighMark Capital Management Inc., as trustee to provide investment services for the Program. To date, 259 California public agencies have adopted the Program for the establishment of a Pension Rate Stabilization program through PARS, including 125 cities and towns; and WHEREAS, the City Council, at its meeting of May 2, 2022, approved a Section 115 Trust with PARS with an initial contribution of $1 million, and adopted the City of Pleasant Hill Pension Rate Stabilization Program Funding and Withdrawal Policy.

WHEREAS, the City of Pleasant Hill Pension Rate Stabilization Program Funding and Withdrawal Policy states the City will make additional contributions based on audited financial statements. The amount will be the higher of 10% or $50,000 of the excess unassigned General Fund Balance.

WHEREAS, the Budget Committee received the unaudited financial information for the City on November 29, 2023, which showed the General Fund balance increasing $ 1.69 million for Fiscal Year 2022/2023.

WHERAS, the Budget Committee recommended the City Council approve a transfer of 100,000 based on the unaudited information to take advantage of potential interest earnings.

NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Pleasant Hill approves an additional contribution to the Public Agencies Post-Employment Benefits Trust Program with Public Agency Retirement Services Section 115 Trust for $100,000.

Signatures on Following Page]

9.5.c
Packet Pg. 74
Attachment: Resolution No. 82-23 (PARS Additional Contribution) ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting of the City Council held on the 18th day of December, 2023, by the following vote:

AYES: Flaherty, Noack, Shess, Vinson, Rinn
NOES: None
ABSENT: None
ABSTAIN: None
MATTHEW RINN, Mayor
ATTEST:

LYONE P. CONNER, City Clerk

9.5.c
Packet Pg. 75
Attachment: Resolution No. 82-23 (PARS Additional Contribution)

CITY COUNCIL STAFF REPORT
Meeting Date: February 26, 2024
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___- 24 AUTHORIZING THE CITY

MANAGER TO EXECUTE A CHANGE ORDER WITH KEREX
ENGINEERING, INC. FOR THE TAYLOR BOULEVARD

IMPROVEMENTS PROJECT (CIVIC DRIVE TO RUTH DRIVE),
PROJECT NO. 01-23

SYNOPSIS
The Taylor Boulevard Improvements Project will construct a new traffic signal at the intersection of Taylor Boulevard and Civic Drive, new sidewalk on the north side of Taylor Boulevard between Civic Drive and Ruth Drive, and new sidewalk on both sides of Civic Drive.

The purpose of this item is to receive authorization for the City Manager to execute a contract change order with Kerex Engineering, Inc. The Budget Committee reviewed this item at its February 21, 2024 meeting and recommended adoption by City Council.

DISCUSSION
Background
Project Details: This Project is included in the Fiscal Year (FY) 2022-2027 Capital Improvement Plan (CIP) (Project MK-3B). It is funded through Measure K, the Traffic Mitigation Fund, and two Transportation Development Act (TDA) grants. The project scope includes the installation of a new traffic signal, ADA curb ramps, and sidewalks. When complete, the Project will provide a continuous ADA accessible path of travel for residents to walk or bike from Lucille Lane and Ruth Drive to Valley View Middle School, College Park High School, Diablo Valley College, City Police Department, Community Center, YMCA, and other office complexes on the north side of Taylor Boulevard. The plans, specifications, and estimate (PS&E) were completed by LCC Engineering and Surveying, Inc.

Construction Contract Award: On May 1, 2023, via Resolution No. 28-23, the City Council awarded the Taylor Boulevard Improvements Project (Civic Drive to Ruth Drive) Project No. 01-23 (project) to Kerex Engineering, Inc. (contractor) in the base bid amount of $1,465,424.50.

The project bid documents also included an alternate bid item to construct sidewalk on the west side of Civic Drive (the east side was included in the base bid) in the amount of $69,362.00. The project construction cost totaled $1,534,786.50 ($1,465,424.50 + $69,362.00). A construction contingency of approximately 10 percent or $154,213.50 was included for a total construction

9.6 Packet Pg. 76
budget of $1,689,000.

Analysis
Kerex Engineering, Inc. has completed installation of traffic signal pole foundations, conduits, irrigation lines, sidewalk, curb, and gutter along Taylor Boulevard and Civic Drive. The City is currently waiting for traffic signal poles and signal timing controllers to arrive before commencing the final phase of the traffic signal installation. This work is expected to start at the beginning of March and will be followed by pavement repair work (slurry seal) by the end of the month. Weather permitting, the final pavement restoration, striping changes, and landscaping work will take place in April before activating the newly installed traffic signal.

This change order includes the following items:
• Replacement of traffic signal pole foundation damaged in vehicle crash • Installation of temporary crosswalk striping at Civic Drive/Police Station Driveway • Installation of brick pavers at the Civic Drive Median • Additional electrical work to connect to PG&E service • Replacement of mulch with sod
• Microsurfacing and striping on Norse Drive between Taylor Boulevard and Civic Drive These items are detailed below.

On December 16, 2023, at approximately 12:42 a.m. a single vehicle crash resulted in damage to the construction zone. The street sign located on the center median on Civic Drive was knocked over completely. In addition, a foundation for one of the new traffic signal poles was damaged at the northwest corner of the intersection. Upon inspection of the anchor bolts within the foundation, it was determined that the foundation would need to be replaced.

After the new sidewalk was installed along Taylor Boulevard and Civic Drive, new pedestrian connections were created in the vicinity of the project. To support pedestrian travel, the contractor added crosswalk striping as an interim measure until final striping is completed in the spring.

The median nose of Civic Drive is an ongoing maintenance issue and was also damaged in the vehicle crash. The contractor will install pavers in this location to repair the damaged landscaping and reduce maintenance.

Additional work is required to connect the traffic signal to PG&E service due to unforeseen field conditions. This includes new trenching and electrical conduits.

After discussions with maintenance and expanded work to regrade slopes in the vicinity of the project, the contractor will install sod instead of mulch in certain areas.

The residential development at 401 Taylor will be installing bicycle facilities on Lucille Drive approaching Taylor Boulevard. Community feedback has indicated a desire to extend this striping across Taylor Boulevard and continue it on the first block of Norse Drive to provide

9.6 Packet Pg. 77
better connections to destinations like the YMCA, Community Center, and schools via Norse Drive and Civic Drive (see attached Norse Drive Striping Plan). This project provides the opportunity to install this striping using better pricing from the larger Taylor Boulevard/Civic Drive project. This will include pavement treatment and striping at the same time as the overall project.

The proposed change order cost is $127,462. It is reasonable to include a construction contingency of 10 percent, or $12,746, to cover unforeseen field conditions that would result in minor changes to the proposed change order. The total of the proposed change order with contingency is $140,208.

FISCAL IMPACT
The majority of this change order will be funded from the City’s Measure K pedestrian and bike program for FY 2023/24 for $92,335. The City will reimburse the Measure K funds when payment is received from the insurance company for the vehicle crash ($39,984); the net funding from the City’s Measure K pedestrian and bike program for FY 2023/24 for Norse Drive striping will be $52,351. The remainder will be absorbed by the existing project budget.

If approved, the proposed change order would increase the contract with Kerex Engineering, Inc. for the Taylor Boulevard Improvements Project No. 01-23, as follows:

Original Contract $1,465,424.50
Alternate Bid Item: $69,362.00
Contingency: $154,213.50
Proposed Change Order $127,462.00
Contingency: $12,746.00
TOTAL $1,829,208.00

PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department.

The agenda and staff report are posted on the City’s web page.

RECOMMENDED CITY COUNCIL ACTION
Adopt the Proposed Resolution authorizing the City Manager to execute a change order with Kerex Engineering, Inc., for the Taylor Boulevard Improvements Project No. 01-23 in the amount of $127,462 and change order contingency funds in the amount of $12,746 for a not-to-exceed total of $140,208, and to transfer $92,335 from the Measure K pedestrian bike program, as recommended by the Budget Committee on February 21, 2024.

9.6 Packet Pg. 78

ALTERNATIVES TO RECOMMENDED ACTION
Alternatively, the Council may choose not to authorize the proposed change order for the Taylor Boulevard Improvements Project No. 01-23, and may provide direction to staff.

ATTACHMENT(S):

Proposed Resolution
Exhibit 1 – Change Order
Norse Drive Striping Plan
Prepared by: Ryan McClain, Transportation Manager
Reviewed by: Ananthan Kanagasundaram, City Engineer
Approved by: Ethan Bindernagel, City Manager

9.6 Packet Pg. 79
[Signatures on the Following Page]
RESOLUTION NO. -24

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANT HILL

AUTHORIZING THE CITY MANAGER TO EXECUTE A CONTRACT CHANGE ORDER WITH KEREX ENGINEERING, INC. FOR THE TAYLOR BOULEVARD IMPROVEMENTS PROJECT (CIVIC DRIVE TO RUTH DRIVE) PROJECT NO. 01-23
WHEREAS, the City has adopted the FY 2022–2027 Capital Improvement Plan (CIP), which includes the Taylor Boulevard Improvements Project (Civic Drive to Ruth Drive) Project No. 01-23, (Project MK-3B) in the CIP as a funded Project; and
WHEREAS, the Taylor Boulevard Improvements Project (Civic Drive to Ruth Drive) Project No. 01-23 will construct a new traffic signal at the intersection of Taylor Boulevard and Civic Drive, new sidewalk on the north side of Taylor Boulevard between Civic Drive and Ruth Drive, and new sidewalk on both sides of Civic Drive; and
WHEREAS, on May 1, 2023, via Resolution No. 28-23, the City Council awarded the Taylor Boulevard Improvements Project (Civic Drive to Ruth Drive) Project No. 01-23 to Kerex Engineering (Contractor) in the base bid amount of $1,465,424.50. The project bid documents also included an alternate bid item to construct sidewalk on the west side of Civic Drive (the east side was included in the base bid) in the amount of $69,362.00. The project construction cost totaled $1,534,786.50 ($1,465,424.50 + $69,362.00) plus 10 percent contingency funds in the amount of $154,213.50, for a total not-to-exceed construction cost of $1,689,000; and WHEREAS, a contract between the City of Pleasant Hill and Kerex Engineering, Inc. was executed on June 15, 2023, for the Taylor Boulevard Improvements Project (Civic Drive to Ruth Drive) Project No. 01-23; and
WHEREAS, City staff has obtained a proposed change order from Kerex Engineering, Inc. in the amount of $127,462.58 with an added 10 percent contingency of $12,746.26 (total change order cost of $140,208.84) for the Taylor Boulevard Improvements Project (Civic Drive to Ruth Drive) Project No. 01-23 currently under construction; and WHEREAS, the City Council Budget Committee reviewed and recommended that City Council adopt this resolution at its February 21, 2024 meeting.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pleasant Hill that

1. The City Council authorizes the City Manager to execute a contract change order (Exhibit 1) with Kerex Engineering, Inc., in the amount of $127,462.58 for the replacement of the damaged traffic signal pole foundation, installation of striping on Norse Drive, additional PG&E connection work, and landscaping for the Taylor Boulevard Improvements Project (Civic Drive to Ruth Drive) Project No. 01-23.

2. The City Council authorizes an additional 10 percent in contingency funds, or $12,746.26, for a total not-to-exceed change order cost of $140,208.84 at the unit prices set forth in

9.6.a
Packet Pg. 80
Attachment: Proposed Resolution (Change Order with Kerex Engineering for Taylor Boulevard/Civic Drive Project) Kerex Engineering, Inc.’s proposal.

3. The City Council authorizes the transfer of $92,335 from the City’s Measure K pedestrian and bike program for FY 2023/24, increasing the budget for the Taylor Boulevard Improvements Project (Civic Drive to Ruth Drive) Project No. 01-23 to $1,829,208.

ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting held on the 26th day of February, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
MATTHEW RINN, Mayor
ATTEST:

LYONE P. CONNER, City Clerk

9.6.a
Packet Pg. 81
Attachment: Proposed Resolution (Change Order with Kerex Engineering for Taylor Boulevard/Civic Drive Project) Engineering
100 Gregory Lane, Pleasant Hill, CA 94523-3323 – (925) 671-5270 www.pleasanthillca.org
February 22, 2024
Mr. Patrick Madden, President
Kerex Engineering, Inc.

P.O. Box 23831
Pleasant Hill, CA 94523
Re: Taylor Boulevard Improvement Project (Civic Drive to Ruth Drive), Project No. 01-23 – Change Order #6
Dear Mr. Madden:

Per the General Conditions, Section 4.04, Changes and Extra Work, of our Contract Agreement, “The City may order extra work, or make changes by altering, adding to or deducting from the work as defined in the original contract.” Additional work shall be added at an agreed upon price or in accordance with Section 9-1.04 Force Account of the State Standard Specifications as follows: Contractor shall provide additional miscellaneous work, which is outside of the scope of work and/or unexpected conditions, as defined in the Project Plans and Specifications, and as directed by the Engineer, including but not limited to:

1. Replacement of traffic signal pole foundation damaged in vehicle crash. The contractor has agreed to perform this work at the agreed total itemized price of $39,984.16.

2. Installation of temporary crosswalk striping at Civic Drive/Police Station Driveway. The contractor has agreed to perform this work at the agreed total itemized price of $1,911.00.

3. Installation of brick pavers at the Civic Drive Median. The contractor has agreed to perform this work at the agreed price of $16,462.88.

4. Additional electrical work to connect to PG&E service on Taylor Boulevard. The contractor has agreed to perform this work at the agreed price of $7,993.65.

5. Replacement of mulch with sod at the project site. The contractor has agreed to perform this work at the agreed price of $8,760.00.

9.6.b
Packet Pg. 82
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic Drive Project)

6. Microsurfacing and striping on Norse Drive between Taylor Boulevard and Civic Drive.

The contractor has agreed to perform this work at the agreed price of $52,350.90.

Estimate of Work at Force Account is $127,462.58. This amount may not be exceeded unless this Change Order is revised and approved by Engineer.

The contract shall be modified to allow for additional working days to be determined upon agreement between Kerex Engineering, Inc., and the City.

The work shall be completed per the Contract Special Provisions or as directed by the Engineer unless otherwise specified in this change order. The price for this work includes full compensation for Contractor profit and furnishing all labor, mobilization, disposal of waste materials, materials, tools, equipment and all incidentals for this work. No additional payment will be made.

City Authorization: Contractor Acknowledgement:

Signature and Date Signature and Date
Ethan Bindernagel, City Manager Printed Name, Title & Date 2-22-24

9.6.b
Packet Pg. 83
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic Drive Project) K
erexEngineering Inc. C
ORSummary
POBox23831
PleasantHill, CA94523DATE2/16/2024
Phone: [925-255-5810] Fax: 877-413-9730 email: patrick@kerexen gineering.com
ToAn
anthanKanagasundaram
CityofPleasantHill Additional Test Swit
chPanel $1,945.65Pending
MikeBrown-Additional TrenchingWorkrequiredatTie intoPGEBoxonTaylor$6,048.00Pending Demo&ReplaceofDamagedPoleGFoundation-MikeBrown$39,984.16Pending Install Temp Crosswalk Striping $1,911.00 Pending Install New Brick Pavers at the Median Nose at Civic/Taylor (275 SF)-Not To Exceed Price, Work to be tracked on $16,462.88 Pending Replace Mulch w/sod (Per Unit Prices, 2190Sf @$4 per Sf) $8,760.00 Pending Additional Microsurfacing and Traffic Markings on Norse Dr $52,350.90 Pending [42] OTHER COMMENTS SBE# 2000633 DIR# 1000033698 $127,462.58 CA License# 1002913

9.6.b
Packet Pg. 84
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic Drive Project) PROJECT: 2571-Taylor Blvd Improvements Project REPORT No.: XWK - To City of Pleasant Hill
DATE:

Completion Date
PM# Estimate PCO No.:

PO#
Page No.:

WORK PERFORMED BY: Kerex Engineering Inc.

DESCRIPTION OF WORK: Additional Test Switch Panel
A- EQUIPMENT HOURLY EXTENDED P.R. D-LABOR RATE EXT. AMOUNT NO. ACTUAL PAY AMOUNT
$0.00
COST OF EQUIPMENT - A $0.00 SUBTOTAL $0.00

B-MATERIALS
No. Unit No. Unit UNIT COST AMOUNT SUBTOTAL $0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00 TOTAL COST OF LABOR - D $0.00
$0.00
$0.00 TOTAL COST OF-A & B & C $1,945.65
COST OF MATERIALS & WORK-B $0.00

C-SUBCONTRACTORS
No. Unit No. Unit UNIT COST AMOUNT
Mike Brown 1 LS $ 1,853.00 1,853.00 $ SUBTOTAL $1,945.65 TOTAL $1,945.65
COST OF SUBCONTRACTOR & WORK-C $ 1,853.00
TOTAL COST A(Equipment) $0.00
TOTAL COST & 15 % MARK- UP B (Material) $0.00
TOTAL COST & 5 % MARK- UP C (Subcontractor) $1,945.65
TOTAL COST A & B & C (Incl. Markup) $1,945.65
Kerex Engineering Inc

HOURS HOURS

9.6.b
Packet Pg. 85
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic Mike Brown Electric
561-A Mercantile Dr
Cotati CA 94931
(707)792-8100
Fax (707) 792-8110
COP DATE:

MBE JOB #:

PCO #:

PCO TYPE:

I. SCOPE OF WORK
Layout/staking, permits fees (including Caltrans, City's if any), traffic Control & TC Plans, Off hauls II. CLARIFICATIONS / INCLUSIONS / EXCLUSIONS
a.) This proposal shall remain good for 10 days from the date indicated above. b.)
III. COST PROPOSAL
a.) The ORIGINAL Contract Amount was:
b.) Amount of Previously SUBMITTED Change Order Proposals (TOTAL):
c.) Amount of Previously APPROVED Change Order Proposals (TOTAL):
d.) The REVISED Contract Amount PRIOR to this Change Order Proposal (COP):
e.) The Contract will be:
f.) The NEW Contract SUM will be:
g.) The Contract TIME will be: 5 DAYS
h.) The REVISED Date of Substantial Completion will be:

Thank you, Accepted By:

MIKE BROWN ELECTRIC KEREX ENGINEERING
Prepared By Printed Name / Title
Reviewed By Signature / Date
Attached is breakdown of MBE's LS proposal to provide the additional labor, materials, & eqpt for the of additional test switch panel in the Controller Cabinet as requested in the submittal comment.

CHANGE ORDER PROPOSAL - "ELECTRICAL"
CUSTOMER:

ADDRESS:

KEREX ENGINEERING
PO BOX 23831
PLEASANT HILL, CA 94523
15-Dec-23
CONTACT: 6

ARNOLD GONZALES
$ 1,853
Additional Work
Unless otherwise noted, the Clarifications from the Original bid proposal shall apply to this CCO proposal

PATRICK MADDEN

ADD'L TEST SWITCH PANEL
CHANGE
DESCRIPTION:
2571
$ 607,080.00
$ -
$ -
$ 607,080.00
PROJECT NAME: TAYLOR BLVD IMPROVEMENT PROJECT

PATRICK MADDEN
EXCLUSIONS:
$ 605,226.52
Increased Decreased Unchanged
Increased Decreased Unchanged
SES CONFIDENTIAL COP-Cover Date Printed: 1/19/2024

9.6.b
Packet Pg. 86
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic Drive Project) Mike Brown Electric
561-A Mercantile Dr
Cotati CA 94931
(707)792-8100
Fax (707) 792-8110
COP DATE:

MBE JOB #:

PCO #:

I. Cost Breakdown:

A.) Labor Cost:

1.0T 1.5T 2.0T 1.0T 1.5T 2.0T
Gnl Foreman 0 0 0 125.20 $ 156.54 $ 198.52 $
Foreman 4 0 0 115.74 $ 141.58 $ 178.63 $ 463 $
Journeyman 0 0 0 106.28 $ 126.52 $ 158.74 $
Operator 0 0 0 98.53 $ 128.77 $ 159.73 $ - $
Laborers 0 0 0 72.95 $ 93.73 $ 114.51 $
Apprentice 0 0 0 46.12 $ 72.05 $ 72.05 $
Total Labor Additions:

1.0T 1.5T 2.0T 1.0T 1.5T 2.0T
Gnl Foreman 00 0 $ 156.54 125.20 $ 198.52 $
Foreman 00 0 $ 141.58 115.74 $ 178.63 $ $ -
Journeyman 00 0 $ 126.52 106.28 $ 158.74 $ $ -
Operator 00 0 $ 128.77 98.53 $ 159.73 $ $ -
Laborers 00 0 $ 90.99 72.95 $ 110.49 $
Apprentice 00 0 $ 72.05 46.12 $ 72.05 $
Total Labor Credits:

B.) Material and/or Work done by Specialist:

Material Material $ 1,000.00 0 $ -
SUB $ - SUB $ -
Total Material Additions:

Material Material $ -
Specialist SUB $ -
Total Material Credits:

C.) Subcontract
Specialist SUB $ - SUB $0.00 $ -
Total Subcontract Additions: $ -
D.) Equipment:

Equip. #: Class/make/code: Units Rate Sum
JT-057 Truck / T&TT / 20-28 4 37.19 $ 148.76 $
JT-053 Truck / T&TT/ 20-28 0 37.19 $ - $
JT-047 Truck / T&TT/12-20 0 37.19 $ - $
DT -025 DUMP TRUCK 0 51.07 $ - $
AC 030 Air Comp 0 20.80 $ - $
CR-002 HCETD / NATL / 4987 0 48.70 $ - $
BH-003A LDRRT DEER/ 2508J 0 63.64 $ - $
JT-020 Bore Rig T&TT/12-20 0 37.19 $ - $
UND-014 AUGHZ/DW/5040 0 46.66 $ - $
Total Additions:

Equipment:

Total Equipment Credits:

Labor Sub-Total
Mark up on Labor 15%

Total Labor Cost:

Material Sub-Total
Mark up on Material 15%
Total Material Cost:

Subcontract Sub-Total - $
Mark up on Subs 5.00%
Total Subs Cost:

Equipment Sub-Total
Mark up on Equipment 15%
Total Equipment Cost:

SUB TOTAL:

TOTAL COST:
$ 148.76
$ 1,853
2571
$ -
$ 149
$ -
$ 462.96
$ 1,000.00
$ 1,000
$ -
$ 69.44
$ -
$ -
$ -
Credits
Additions
Additions
$ -
$ -
$ 463
$ -
$ -
Hours Rate (w Burden)

TAYLOR BLVD IMPROVEMENT PROJECT

ADD'L TEST SWITCH PANEL
CHANGE
DESCRIPTION:

CHANGE ORDER PROPOSAL - "ELECTRICAL"
CUSTOMER:

ADDRESS:

KEREX ENGINEERING
PO BOX 23831
PLEASANT HILL, CA 94523
$ 150.00
Credits
Credits / Deduct
PROJECT NAME:

Additions
$ 149
$ -
$ -
$ -
$ -
$ 1,853.48
$ 171.07
15-Dec-23
6 $ -
Extended
$ -
$ 22.31
$ 1,000
$ -
$ -
$ 532.40
$ 1,150
SES CONFIDENTIAL COP-Break Down Date Printed: 1/19/2024

9.6.b
Packet Pg. 87
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic Drive Project)

9.6.b
Packet Pg. 88
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic Drive Project) PROJECT: 2571-Taylor Blvd Improvements Project REPORT No.: XWK - To City of Pleasant Hill
DATE:

Completion Date
PM# Estimate PCO No.:

PO#
Page No.:

WORK PERFORMED BY: Kerex Engineering Inc.

DESCRIPTION OF WORK: Mike Brown-Additional Trenching Work required at Tie in to PGE Box on Taylor A- EQUIPMENT HOURLY EXTENDED P.R. D-LABOR RATE EXT. AMOUNT NO. ACTUAL PAY AMOUNT
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00
COST OF EQUIPMENT - A $0.00 SUBTOTAL $0.00

B-MATERIALS
No. Unit No. Unit UNIT COST AMOUNT SUBTOTAL $0.00
$0.00 OH/P 15% $0.00
$0.00 Total $0.00
$0.00
$0.00 TOTAL COST OF LABOR - D $0.00
$0.00
$0.00 TOTAL COST OF-A & B & C $6,048.00
COST OF MATERIALS & WORK-B $0.00

C-SUBCONTRACTORS
No. Unit No. Unit UNIT COST AMOUNT
Mike Brown 1 ls $ 5,760.00 5,760.00 $ SUBTOTAL $6,048.00 $0.00 TOTAL $6,048.00
COST OF SUBCONTRACTOR & WORK-C $ 5,760.00
TOTAL COST A(Equipment) $0.00
TOTAL COST & 15 % MARK- UP B (Material) $0.00
TOTAL COST & 5 % MARK- UP C (Subcontractor) $6,048.00
TOTAL COST A & B & C (Incl. Markup) $6,048.00
Kerex Engineering Inc

HOURS HOURS

9.6.b
Packet Pg. 89
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic Mike Brown Electric
561-A Mercantile Dr
Cotati CA 94931
(707)792-8100
Fax (707) 792-8110
COP DATE:

MBE JOB #:

PCO #:

PCO TYPE:

I. SCOPE OF WORK
Layout/staking, permits fees (including Caltrans, City's if any), traffic Control & TC Plans, Off hauls II. CLARIFICATIONS / INCLUSIONS / EXCLUSIONS
a.) This proposal shall remain good for 10 days from the date indicated above. b.)
III. COST PROPOSAL
a.) The ORIGINAL Contract Amount was:
b.) Amount of Previously SUBMITTED Change Order Proposals (TOTAL):
c.) Amount of Previously APPROVED Change Order Proposals (TOTAL):
d.) The REVISED Contract Amount PRIOR to this Change Order Proposal (COP):
e.) The Contract will be:
f.) The NEW Contract SUM will be:
g.) The Contract TIME will be: Time Differe DAYS
h.) The REVISED Date of Substantial Completion will be:

Thank you, Accepted By:

MIKE BROWN ELECTRIC KEREX ENGINEERING
Prepared By Printed Name / Title
Reviewed By Signature / Date
2571
$ 607,080.00
$ -
$ -
$ 607,080.00
PROJECT NAME: TAYLOR BLVD IMPROVEMENT PROJECT

PATRICK MADDEN
EXCLUSIONS:
$ 601,319.79

ARNOLD GONZALES
$ 5,760
Additional Work
Unless otherwise noted, the Clarifications from the Original bid proposal shall apply to this CCO proposal

PATRICK MADDEN
ADDITIONAL TRENCH FROM #5PB TO PGE
#2 BOX SHOWN IN THE PLAN TO BE
CHANGE
DESCRIPTION:

Attached is MBE's LS proposal to provide the additional labor, materials, & eqpt for the installation of additional trench between #5pb and PGE's #2 shown in the plan to be performed by PG&E. This extra work was discussed during the field meeting with the City, PG&E, & MBE, where PG&E informed the City that they will not be installing said trench.

CHANGE ORDER PROPOSAL - "ELECTRICAL"
CUSTOMER:

ADDRESS:

KEREX ENGINEERING
PO BOX 23831
PLEASANT HILL, CA 94523
14-Feb-24
CONTACT: 8
Increased Decreased Unchanged
Increased Decreased Unchanged
SES CONFIDENTIAL COP-Cover Date Printed: 2/14/2024

9.6.b
Packet Pg. 90
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic Drive Project) Mike Brown Electric
561-A Mercantile Dr
Cotati CA 94931
(707)792-8100
Fax (707) 792-8110
COP DATE:

MBE JOB #:

PCO #:

I. Cost Breakdown:

A.) Labor Cost:

1.0T 1.5T 2.0T 1.0T 1.5T 2.0T
Gnl Foreman 0 0 0 125.20 $ 156.54 $ 198.52 $
Foreman 16 0 0 115.74 $ 141.58 $ 178.63 $ 1,852 $
Journeyman 0 0 0 106.28 $ 126.52 $ 158.74 $
Operator 8 0 0 98.53 $ 128.77 $ 159.73 $ 788 $
Laborers 8 0 0 72.95 $ 93.73 $ 114.51 $
Apprentice 0 0 0 46.12 $ 72.05 $ 72.05 $
Total Labor Additions:

1.0T 1.5T 2.0T 1.0T 1.5T 2.0T
Gnl Foreman 00 0 $ 156.54 125.20 $ 198.52 $
Foreman 00 0 $ 141.58 115.74 $ 178.63 $ $ -
Journeyman 00 0 $ 126.52 106.28 $ 158.74 $ $ -
Operator 00 0 $ 128.77 98.53 $ 159.73 $ $ -
Laborers 00 0 $ 90.99 72.95 $ 110.49 $
Apprentice 00 0 $ 72.05 46.12 $ 72.05 $
Total Labor Credits:

B.) Material and/or Work done by Specialist:

Material Material $ 570.00 0 $ -
SUB $ - SUB $ -
Total Material Additions:

Material Material $ -
Specialist SUB $ -
Total Material Credits:

C.) Subcontract
Specialist SUB $ - SUB $0.00 $ -
Total Subcontract Additions: $ -
D.) Equipment:

Equip. #: Class/make/code: Units Rate Sum
JT-057 Truck / T&TT / 20-28 0 37.19 $ - $
JT-053 Truck / T&TT/ 20-28 8 37.19 $ 297.52 $
JT-047 Truck / T&TT/12-20 0 37.19 $ - $
DT -025 DUMP TRUCK 8 51.07 $ 408.56 $
AC 030 Air Comp 0 20.80 $ - $
CR-002 HCETD / NATL / 4987 0 48.70 $ - $
BH-003A LDRRT DEER/ 2508J 8 63.64 $ 509.12 $
JT-020 Bore Rig T&TT/12-20 0 37.19 $ - $
UND-014 AUGHZ/DW/5040 0 46.66 $ - $
Total Additions:

Equipment:

Total Equipment Credits:

Labor Sub-Total
Mark up on Labor 15%

Total Labor Cost:

Material Sub-Total
Mark up on Material 15%
Total Material Cost:

Subcontract Sub-Total - $
Mark up on Subs 5.00%
Total Subs Cost:

Equipment Sub-Total
Mark up on Equipment 15%
Total Equipment Cost:

SUB TOTAL:

TOTAL COST:
$ -
$ 5,760.21
$ 1,397.48
14-Feb-24
8 $ -
Extended
$ -
$ 182.28
$ 570
$ -
$ -
$ 3,707.23
$ 656
$ 85.50
Credits
Credits / Deduct
PROJECT NAME:

Additions
$ 1,215
$ -
$ -
$ -
CUSTOMER:

ADDRESS:

KEREX ENGINEERING
PO BOX 23831
PLEASANT HILL, CA 94523
Credits
Additions
Additions
$ 584
$ -
$ 3,224
$ -
$ -
Hours Rate (w Burden)

TAYLOR BLVD IMPROVEMENT PROJECT
ADDITIONAL TRENCH FROM #5PB TO PGE #2

BOX SHOWN IN THE PLAN TO BE INSTALLED
CHANGE
DESCRIPTION:

CHANGE ORDER PROPOSAL - "ELECTRICAL"
$ 1,215.20
$ 5,760
2571
$ -
$ 1,215
$ -
$ 3,223.68
$ 570.00
$ 570
$ -
$ 483.55
$ -
$ -
$ -
SES CONFIDENTIAL COP-Break Down Date Printed: 2/14/2024

9.6.b
Packet Pg. 91
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic Drive Project)

ADD'L ITEMS CCO
Description Quantity Trade Price Unit Net Cost Labor Total Material Total Hours

ADD:

Install 2" pvc conduit between #5pb and PGE's #2
box 10 20 lf 20 0 200 24
Install Sweeps 2 60 Ea 60 120
Misc 1 150 Lot 150 150
PGE U/G and Mandrel Inspections 1 100 8

TOTAL $570.00 32

9.6.b
Packet Pg. 92
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic Drive Project) PO Box 23831
Pleasant Hill, CA 94523 DATE 2/9/2024Phone: [925-255-5810] 722Fax: 877-413-9730email: [email protected] To
City of Pleasant Hill
$34,488.30
$5,495.86
[42]
$39,984.16
Thank You For Your Business!
OTHER COMMENTSSBE# 2000633DIR# 1000033698CA License# 1002913 If you have any questions about this invoice, please contact Patrick Madden,925-255-5810, [email protected] Offhaul Spoils/Landscape Restoration/Partial Demo of Footing Kerex Engineering Inc. COR
Install New Pole G Foundation -Mike Brown

9.6.b
Packet Pg. 93
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic PROJECT: 2571-Taylor Blvd Improvements Project REPORT No.: XWK - To City of Pleasant Hill
DATE:

Completion Date
PM# Estimate PCO No.:

PO#
Page No.:

WORK PERFORMED BY: Kerex Engineering Inc.

DESCRIPTION OF WORK: Install New Pole G Foundation -Mike Brown A- EQUIPMENT HOURLY EXTENDED P.R. D-LABOR RATE EXT. AMOUNT NO. ACTUAL PAY AMOUNT
$0.00
COST OF EQUIPMENT - A $0.00 SUBTOTAL $0.00
B-MATERIALS No. Unit No. Unit UNIT COST AMOUNT SUBTOTAL $0.00 OH/P 15% $0.00
Total $0.00
TOTAL COST OF LABOR - D $0.00
TOTAL COST OF-A & B & C $34,488.30
COST OF MATERIALS & WORK-B $0.00

C-SUBCONTRACTORS
No. Unit No. Unit UNIT COST AMOUNT
Mike Brown 1 LS $ 29,246.00 29,246.00 $ SUBTOTAL $34,488.30Traffic Control 2 days 1,800.00 $ $3,600.00 TOTAL $34,488.30 COST OF SUBCONTRACTOR & WORK-C $ 32,846.00
TOTAL COST A(Equipment) $0.00
TOTAL COST & 15 % MARK- UP B (Material) $0.00
TOTAL COST & 5 % MARK- UP C (Subcontractor) $34,488.30
TOTAL COST A & B & C (Incl. Markup) $34,488.30
Kerex Engineering Inc

HOURS HOURS

9.6.b
Packet Pg. 94
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic PROJECT: 2571-Taylor Blvd Improvements Project REPORT No.: XWK - To City of Pleasant Hill
DATE:

Completion Date
PM# Estimate PCO No.:

PO#
Page No.:

WORK PERFORMED BY: Kerex Engineering Inc.

DESCRIPTION OF WORK:

Demo Damaged concrete Footing Below Grade-Kerex Engineering IncBackfill/Compact Regrade around Pole after foundation is Poured-kerex Engineering IncMisc landscape repairs-Kerex Engineering Inc A- EQUIPMENT HOURLY EXTENDED P.R. D-LABOR RATE EXT. AMOUNT NO. ACTUAL PAY AMOUNT 2 Laborers O.T.
1 Foreman Truck 8 $28.65 $229.20 REG. 8 $77.18 $1,234.88 1 Crew Truck 8 $28.65 $229.20 1 Foreman O.T. $0.00
1 Mini Exavator 8 $26.21 $209.68 REG. 8 $107.71 $861.68 1 Bobtail Truck 8 $55.00 $440.00 1 Operator O.T. $0.00
1 Backhoe/Breaker 8 $63.64 $509.12 REG. 8 $107.71 $861.68 $0.00
COST OF EQUIPMENT - A $1,388.00 SUBTOTAL $2,958.24
B-MATERIALS No. Unit No. Unit UNIT COST AMOUNT SUBTOTAL $2,958.24 Dump Fees/Spoils 1 ls $300.00 $300.00 OH/P 15% $443.74
Backfill material/topsoil 1 LS $300.00 $300.00 Total $3,401.98 $0.00$0.00 TOTAL COST OF LABOR - D $3,401.98$0.00$0.00 TOTAL COST OF-A & B & C $2,093.88 COST OF MATERIALS & WORK-B $600.00

C-SUBCONTRACTORS
No. Unit No. Unit UNIT COST AMOUNT
SUBTOTAL $5,495.86
$0.00 TOTAL $5,495.86
COST OF SUBCONTRACTOR & WORK-C $ -
TOTAL COST A(Equipment) $1,388.00
TOTAL COST & 15 % MARK- UP B (Material) $705.88
TOTAL COST & 5 % MARK- UP C (Subcontractor) $0.00
TOTAL COST A & B & C (Incl. Markup) $2,093.88
Kerex Engineering Inc

HOURS HOURS

9.6.b
Packet Pg. 95
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic PROJECT: 2571-Taylor Blvd Improvements Project REPORT No.: XWK - To City of Pleasant Hill
DATE:

Completion Date
PM# Estimate PCO No.:

PO#
Page No.:

WORK PERFORMED BY: Kerex Engineering Inc.

DESCRIPTION OF WORK: Install Temp Crosswalk Striping
A- EQUIPMENT HOURLY EXTENDED P.R. D-LABOR RATE EXT. AMOUNT NO. ACTUAL PAY AMOUNT
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00
COST OF EQUIPMENT - A $0.00 SUBTOTAL $0.00

B-MATERIALS
No. Unit No. Unit UNIT COST AMOUNT SUBTOTAL $0.00
$0.00 OH/P 15% $0.00
$0.00 Total $0.00
$0.00
$0.00 TOTAL COST OF LABOR - D $0.00
$0.00
$0.00 TOTAL COST OF-A & B & C $1,911.00
COST OF MATERIALS & WORK-B $0.00

C-SUBCONTRACTORS
No. Unit No. Unit UNIT COST AMOUNT
Install Temp Traffic Crosswalk 1 ls $ 1,820.00 1,820.00 $ SUBTOTAL $1,911.00 $0.00 TOTAL $1,911.00
COST OF SUBCONTRACTOR & WORK-C $ 1,820.00
TOTAL COST A(Equipment) $0.00
TOTAL COST & 15 % MARK- UP B (Material) $0.00
TOTAL COST & 5 % MARK- UP C (Subcontractor) $1,911.00
TOTAL COST A & B & C (Incl. Markup) $1,911.00
Kerex Engineering Inc

HOURS HOURS

9.6.b
Packet Pg. 96
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic Invoice
Date
1/9/2024
Invoice #
311
Bill To
Kerex Engineering
PO Box 23831
Pleasant Hill, CA 94523
Ship To
Civic Drive
Pleasant Hill, CA

BRUCE ENTERPRISES
PO Box 839
Petaluma, CA 94953-0839
P.O. No.

Verbal
Terms
Net 30
Due Date
2/8/2024
Project
Civic Dr/Pleas...

Total
Description Amount
Work performed at Civic Drive in Pleasant Hill
includes the following:

Layout and stripe using traffic paint with reflective beads: 1,820.00 Approx. 320 LF 12" parallel crosswalk
$1,820.00

9.6.b
Packet Pg. 97
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic Drive Project) PROJECT: 2571-Taylor Blvd Improvements Project REPORT No.: XWK - To City of Pleasant Hill
DATE:

Completion Date
PM# Estimate PCO No.:

PO#
Page No.:

WORK PERFORMED BY: Kerex Engineering Inc.

DESCRIPTION OF WORK: Install New Brick Pavers at the Median Nose at Civic/Taylor (275 SF) A- EQUIPMENT HOURLY EXTENDED P.R. D-LABOR RATE EXT. AMOUNT NO. ACTUAL PAY AMOUNT 2 Laborers O.T.
1 Foreman Truck 32 $28.65 $916.80 REG. 32 $77.18 $4,939.52 1 Crew Truck 32 $28.65 $916.80 1 Foreman O.T. $0.00
1 Mini Exavator 8 $26.21 $209.68 REG. 32 $107.71 $3,446.72 1 Bobtail Truck 8 $55.00 $440.00 1 Operator O.T. $0.00
$0.00 REG. 8 $107.71 $861.68
2 Cement Masons O.T.

Install Pavers REG. 8 $77.18 $1,234.88
$0.00
COST OF EQUIPMENT - A $1,566.48 SUBTOTAL $10,482.80

B-MATERIALS
No. Unit No. Unit UNIT COST AMOUNT SUBTOTAL $10,482.80
Brick Pavers(Plug Number) 275 sf $7.00 $1,925.00 OH/P 15% $1,572.42 Agg Base 5 tons $18.00 $90.00 Total $12,055.22
Sand 1 tons $50.00 $50.00
Dump Fees 1 LS $350.00 $350.00
$0.00 TOTAL COST OF LABOR - D $12,055.22
$0.00
$0.00 TOTAL COST OF-A & B & C $4,407.66
COST OF MATERIALS & WORK-B $2,415.00

C-SUBCONTRACTORS
No. Unit No. Unit UNIT COST AMOUNT
$ - SUBTOTAL $16,462.88
$0.00 TOTAL $16,462.88
COST OF SUBCONTRACTOR & WORK-C $ -
TOTAL COST A(Equipment) $1,566.48
TOTAL COST & 15 % MARK- UP B (Material) $2,841.18
TOTAL COST & 5 % MARK- UP C (Subcontractor) $0.00
TOTAL COST A & B & C (Incl. Markup) $4,407.66
Kerex Engineering Inc

HOURS HOURS

9.6.b
Packet Pg. 98
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic PROJECT: 2571-Taylor Blvd Improvements Project REPORT No.: XWK - To City of Pleasant Hill
DATE:

Completion Date
PM# Estimate PCO No.:

PO#
Page No.:

WORK PERFORMED BY: Kerex Engineering Inc.

DESCRIPTION OF WORK: Replace Mulch w/sod (Per Unit Prices, 2190Sf @$4 per Sf) A- EQUIPMENT HOURLY EXTENDED P.R. D-LABOR RATE EXT. AMOUNT NO. ACTUAL PAY AMOUNT
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
COST OF EQUIPMENT - A $0.00 SUBTOTAL $0.00

B-MATERIALS
No. Unit No. Unit UNIT COST AMOUNT SUBTOTAL $0.00
Replace Mulch W/Sod 2,190 sf $4.00 $8,760.00 OH/P 15% $0.00 $0.00 Total $0.00
$0.00
$0.00
$0.00 TOTAL COST OF LABOR - D $0.00
$0.00
$0.00 TOTAL COST OF-A & B & C $8,760.00
COST OF MATERIALS & WORK-B $8,760.00

C-SUBCONTRACTORS
No. Unit No. Unit UNIT COST AMOUNT
$ - SUBTOTAL $8,760.00
$0.00 TOTAL $8,760.00
COST OF SUBCONTRACTOR & WORK-C $ -
TOTAL COST A(Equipment) $0.00
TOTAL COST & 15 % MARK- UP B (Material) $8,760.00
TOTAL COST & 5 % MARK- UP C (Subcontractor) $0.00
TOTAL COST A & B & C (Incl. Markup) $8,760.00
Kerex Engineering Inc

HOURS HOURS

9.6.b
Packet Pg. 99
Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic

9.6.b
Packet Pg. 100 Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic

9.6.b
Packet Pg. 101 Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic PROJECT: 2571-Taylor Blvd Improvements Project REPORT No.: XWK - To City of Pleasant Hill
DATE:

Completion Date
PM# Estimate PCO No.:

PO#
Page No.:

WORK PERFORMED BY: Kerex Engineering Inc.

DESCRIPTION OF WORK: Additional Microsurfacing and Traffic Markings on Norse Dr A- EQUIPMENT HOURLY EXTENDED P.R. D-LABOR RATE EXT. AMOUNT NO. ACTUAL PAY AMOUNT
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00 $0.00
$0.00
COST OF EQUIPMENT - A $0.00 SUBTOTAL $0.00

B-MATERIALS
No. Unit No. Unit UNIT COST AMOUNT SUBTOTAL $0.00
$0.00 OH/P 15% $0.00
$0.00 Total $0.00
$0.00
$0.00 TOTAL COST OF LABOR - D $0.00
$0.00
$0.00 TOTAL COST OF-A & B & C $52,350.90
COST OF MATERIALS & WORK-B $0.00

C-SUBCONTRACTORS
No. Unit No. Unit UNIT COST AMOUNT
Microsurfacing 1 ls $ 14,625.00 14,625.00 $ SUBTOTAL $52,350.90 Striping 1 ls $ 31,633.00 31,633.00 $
Traffic Control 2 days 1,800.00 $ $3,600.00 TOTAL $52,350.90 COST OF SUBCONTRACTOR & WORK-C $ 49,858.00
TOTAL COST A(Equipment) $0.00
TOTAL COST & 15 % MARK- UP B (Material) $0.00
TOTAL COST & 5 % MARK- UP C (Subcontractor) $52,350.90
TOTAL COST A & B & C (Incl. Markup) $52,350.90
Kerex Engineering Inc

HOURS HOURS

9.6.b
Packet Pg. 102 Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic CHANGE
ORDER
Date: February 16, 2024
1 Project COR #
Bayside Stripe & Seal, Inc. TO: Patrick Madden
P.O. Box 703 Kerex Construction
Petaluma, CA 94953
Phone 707-765-2871
Fax 707-765-2773 P
[email protected] F
Project Name
Project No.

QUANTITY UOM Item # DESCRIPTION UNIT PRICE TOTAL
1 Norse (Taylor-Civic) $ 31,633.00 $ 31,633.00
**See attached detail $ -
$ -
***Work to be don concurrently with contract work $ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Total $ 31,633.00
Acceptance _________________________________
Date_______________________________________
Bayside COR #
Taylor Blvd Improvements
Thank you for your business!

9.6.b
Packet Pg. 103 Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic Drive Project) No. Description Quantity Bid Set Unit Cost Extension
1 Grinding (Existing Striping) 1,500 LF $1.50 $ 2,250.00 2 Grinding (Ex. Pavement Messages/Arrows) 350 SQ FT $4.50 $ 1,575.00 3 Traffic Control 1 LS $ 2,500.00
4 Detail 38 100 LN FT $4.50 $ 450.00
5 Detail 22 160 LN FT $5.00 $ 800.00
6 Detail 29 100 LN FT $10.00 $ 1,000.00
7 Detail 39 936 LN FT $2.50 $ 2,340.00
8 Detail 39A 40 LN FT $1.75 $ 70.00
9 Arrow - Type IV 4 EA $135.00 $ 540.00
10 Arrow - Type VII 4 EA $243.00 $ 972.00
10A Bike Legend & Arrow 4 EA $95.00 $ 380.00
11 12" White 84 LN FT $9.00 $ 756.00
12 Green Fill 900 SQ FT $20.00 $ 18,000.00
13 Microsurfacing 12,500 SQ FT $ -
Total $ 31,633.00
City of Pleasant Hill
Norse (Taylor-Civic)
Quantity Takeoff / Estimate
Thank you for your business!

9.6.b
Packet Pg. 104 Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic Drive Project) THIS PROPOSAL IS VALID FOR 30 DAYS AFTER BID DATE
BOND BLACKTOP, INC. IS SIGNATORY TO THE LABORERS’ UNION V09.22 BOND BLACKTOP, INC.

P.O. Box 616
Union City, CA 94587
Ph: (510) 783-9909 Fax: (510) 783-9907
CA Contractors License #746432
DIR Registration No. 1000001972 SBE #1765614
PROPOSAL WBE #2005124629
Attn: Estimating Fax #:

Project: Taylor Boulevard Improvements Project Civic Drive to Ruth Drive, City of Pleasant Hill Project No. 01-23 Type of Work: Slurry Seal Bid Date: 04/18/2023
Number of Move-Ins: 1 Each Additional: $ 6,500
Estimator: Mark Pierce
UNIT
ITEM # DESCRIPTION UNIT QTY PRICE TOTAL
31 Crack Sealing LF 1,000 $ 13.000 $13,000.00
32 Micro-Surfacing TYPE II SY 6,050 8.270 50,033.50
33 Sanding SY 6,050 0.300 1,815.00
2 Post Sweeps Included 0.00

0.00 EW13 Microsurfacing SF 12,500 1.170 14,625.00
Extra work includes crack seal 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00

0.00 0.00
TOTAL: $79,473.50
NOTES: Prime contractor to provide stockpile to stage equipment/material & provide water meter/source.

Temporary floppies are included.
--To assure crew availability, work must be scheduled 20 days in advance --Prices subject to CalTrans asphalt index as outlined in the latest standards specifications --Insurance to be provided until the completion and acceptance of Subcontractors work --BY ACCEPTING THIS PROPOSAL, YOU AGREE TO THE INCLUSIONS / EXCLUSIONS AS LISTED BELOW REGARDLESS OF

REQUIREMENTS BY OWNER
Exclusions:

Posting/Notification (our work only) Striping Crack filling Fog Seal Inspection, Testing, Engineering, Surveying Stripe Removal Weed Sterilization/Removal Grading/Base Rock Permits/Bonds Temporary Delineation Patching Rolling
Traffic Control Plans Traffic Control Tack Coat Night Work SWPPP (Storm Water Pollution Flagmen Pre-Sweeping Calibrations Prevention Program) Traffic Officers Heavy Cleaning Retention QC/QA Program Pilot Car Prime Oil
OCIP/Wrap Up Changeable Message Sign Boards Light Towers Waiver of Subrogation Construction Area Signs
Other: 2 Post Sweep

9.6.b
Packet Pg. 105 Attachment: Exhibit 1 - Change Order (Change Order with Kerex Engineering for Taylor Boulevard/Civic Drive Project) Civic Drive Taylor Blvd Norse Drive
10' 11' 6' 6' 11' 3' 3' 11' 7' 11' 11' 6' 2' 2' Striping Concept Norse Drive (Taylor Boulevard to Civic Drive)
39A 39 12" W
39 38 38
39 TYPE IV

TYPE VII
38 (YELLOW)
Limit of microsurfacing
22 22 29 By others

9.6.c
Packet Pg. 106 Attachment: Norse Drive Striping Plan (Change Order with Kerex Engineering for Taylor Boulevard/Civic Drive Project)

CITY COUNCIL STAFF REPORT
Meeting Date: February 26, 2024
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-24 AUTHORIZING THE CITY

MANAGER TO EXECUTE A SIDE LETTER OF AGREEMENT

BETWEEN THE CITY OF PLEASANT HILL AND THE MANAGEMENT

PAY PLAN (MPP) ADDING THE CLASSIFICATION PUBLIC WORKS

DIRECTOR TO THE PLAN

SYNOPSIS
The City is continuously seeking ways to better manage operations and streamline staff work.

After the announcement of two retirements in the Engineering Division, Human Resources staff looked closely at the functions in Public Works areas, including Engineering and Maintenance.

Staff is seeking Council’s authorization to create a new classification in the Management Pay Plan to streamline the reporting structure for the City Manager and merge the two Public Works divisions into one cohesive department. This classification will manage all City engineering and maintenance functions and will report directly to the City Manager.

Adoption of the proposed resolution would authorize the City Manager to execute a side letter of agreement between the City of Pleasant Hill and the Pleasant Hill Management Pay Plan Group (MPP) adding the classification Public Works Director to the compensation plan.

DISCUSSION
Background
As part of the City’s routine recruitment and selection process Human Resources staff reviews the organizational structure and job classifications with the hiring manager prior to moving forward with a recruitment. There are typically simple formatting and legal updates to be made to the job description, and sometimes, but far less frequently, changes to the organizational structure are recommended. In this case, two management-level employees in the Engineering Division announced their retirements within a short period of time. When reviewing the division’s needs and overall organizational structure with the hiring manager, there was an opportunity to streamline reporting and place the Engineering and Maintenance divisions within one department.

Further, staff noted that these two divisions typically work collaboratively within a Public Works Department, and Public Works Director is a common title in municipal government. The addition of this classification will streamline the City Manager’s direct reports; couple the two stand-alone

9.7 Packet Pg. 107
divisions under one Public Works Department; and provide an additional department head to act during the City Manager’s absences.

Analysis
The proposed job description was sent to the MPP representatives for review and consideration.

The MPP did not have any objections to the proposed new classification or salary range. The proposed new classification will provide for streamlined management and reporting of the Engineering and Maintenance divisions.

FISCAL IMPACT
The adoption of the proposed resolution and the execution of the side letter of agreement will not have a fiscal impact, as it will replace the currently budgeted but vacant Community Development Director/Assistant City Manager in the budget.

PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department. The agenda and staff report are posted on the City’s web page.

RECOMMENDED CITY COUNCIL ACTION
Staff recommends that the City Council adopt the proposed resolution, which authorizes the City Manager to execute the side letter of agreement.

ALTERNATIVES TO RECOMMENDED ACTION
The City Council could decline to adopt the proposed resolution and direct staff to maintain the status quo.

ATTACHMENT(S):

Proposed Resolution
Exhibit 1 - Side Letter of Agreement with Classification and Salary Range Changes Job Description
Prepared by: Ericka R. Mitchell, Chief Human Resources Officer Approved by: Ethan Bindernagel, City Manager

9.7 Packet Pg. 108
RESOLUTION NO. -24

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANT HILL APPROVING A SIDE

LETTER OF AGREEMENT WITH THE MANAGEMENT PAY PLAN GROUP TO ADD THE NEW CLASSIFICATION PUBLIC WORKS DIRECTOR.

WHEREAS, representatives of the City and the Management Pay Plan group (“MPP”) tentatively agreed to the Public Works Director title and job description; and WHEREAS, enactment of the proposed side letter would provide a more efficient and streamlined organizational structure; and
WHEREAS, enactment of the side letter of agreement will not have a fiscal impact, as it will replace the currently budgeted but vacant Community Development Director/Assistant City Manager position in the budget.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pleasant Hill that the City Council does hereby approve and authorize the City Manager to sign Exhibit 1 Side Letter of Agreement – MPP, amending the compensation plan between the City of Pleasant Hill and MPP.

ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting held on the 26th day of February, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
MATTHEW RINN, Mayor
ATTEST:

LYONE P. CONNER, City Clerk

9.7.a
Packet Pg. 109 Attachment: Proposed Resolution (New Classification - Public Works Director)

ADDITION OF THE PUBLIC WORKS DIRECTOR JOB TITLE AND DESCRIPTION

SIDE LETTER OF AGREEMENT

AMENDING THE MANAGEMENT PAY PLAN BETWEEN

CITY OF PLEASANT HILL AND

THE MANAGEMENT PAY PLAN GROUP
Subject to the approval of the City of Pleasant Hill City Council, the City and the MPP hereby agree to add the job title and description for the classification Public Works Director to Exhibit A and Exhibit B in the Management Pay Plan that is in effect September 1, 2023 through August 30, 2026. Modified Exhibits A and B are attached hereto.

Except as set forth above, all other terms and conditions of employment remain unchanged and shall remain in full force and effect.

Agreed to this __________ day of ____________________ 2024.

City of Pleasant Hill: City of Pleasant Hill Management Group:
___________________________________ ____________________________________ Ethan Bindernagel, City Manager Zach Seal, MPP Group Representative ____________________________________
Matt Kristic, MPP Group Representative
APPROVED AS TO FORM:
___________________________________
Janet Coleson, City Attorney

9.7.b
Packet Pg. 110 Attachment: Exhibit 1 - Side Letter of Agreement with Classification and Salary Range Changes (New Classification - Public Works Director) 25 EXHIBIT “A”
Management Classifications Covered by the
Management Pay Plan (as of September 1, 2023)
Accounting Manager
Assistant City Manager
Chief Building Official
Chief of Police
Chief Human Resources Officer
Chief Technology Officer
City Clerk
City Engineer
City Planner
Director of Community Development/Assistant City Manager Economic Development Manager
Finance Manager
Human Resources Manager
Maintenance Superintendent
Maintenance Supervisor
Police Captain
Police Lieutenant
Principal Management Analyst/City Clerk
Public Works Director
Public Works Manager
Senior Civil Engineer
Senior Management Analyst/Deputy City Clerk
Senior Management Analyst/Public Information Officer
Senior Planner
Senior Traffic Engineer

9.7.b
Packet Pg. 111 Attachment: Exhibit 1 - Side Letter of Agreement with Classification and Salary Range Changes (New Classification - Public Works Director) 26 EXHIBIT B

MANAGEMENT GROUP SALARY RANGES
EFFECTIVE SEPTEMBER 1, 2023 – 3.25%

POSITION MONTHLY

MINIMUM

MONTHLY

MAXIMUM
Accounting Manager $11,656 $15,502
Assistant City Manager $14,477 $19,255
Chief BuildingOfficial $10,926 $14,530
Chief of Police $17,116 $22,765
Chief Human ResourcesOfficer $13,821 $18,384
Chief TechnologyOfficer $13,821 $18,384
City Clerk $10,444 $14,100
City Engineer $12,794 $17,529
City Planner $12,794 $17,529
Director of Community Development/Assistant CityManager $15,299 $20,348 Economic DevelopmentManager $11,656 $15,502
Finance Manager $13,821 $18,384
Human Resources Manager $13,016 $17,312
Maintenance Superintendent $11,005 $14,636
Maintenance Supervisor $10,123 $13,464
Police Captain $14,505 $19,292
Police Lieutenant $13,059 $17,368
Principal Management Analyst/CityClerk $13,951 $15,731
Public Works Director $14,505 $19,292
Public Works Manager $12,794 $17,530
Senior CivilEngineer $11,076 $14,730
Senior Management Analyst/Deputy CityClerk $11,076 $14,730 Senior Management Analyst/Public Info Officer $11,076 $14,729 Senior Planner $10,033 $13,344
Senior TrafficEngineer $11,076 $14,730
Adopted by Resolution No. _- on

9.7.b
Packet Pg. 112 Attachment: Exhibit 1 - Side Letter of Agreement with Classification and Salary Range Changes (New Classification - Public Works Director) 27 MANAGEMENT GROUP SALARY RANGES
EFFECTIVE SEPTEMBER 1, 2024 – 3.25%

POSITION MONTHLY

MINIMUM

MONTHLY

MAXIMUM
Accounting Manager $12,035 $16,006
Assistant City Manager $14,947 $19,880
Chief BuildingOfficial $11,282 $15,002
Chief of Police $17,673 $23,505
Chief Human ResourcesOfficer $14,270 $18,981
Chief TechnologyOfficer $14,270 $18,981
City Clerk $10,783 $14,558
City Engineer $13,210 $18,099
City Planner $13,210 $18,099
Director of Community Development/Assistant CityManager $15,796 $21,009 Economic DevelopmentManager $12,035 $16,006
Finance Manager $14,271 $18,981
Human Resources Manager $13,439 $17,875
Maintenance Superintendent $11,363 $15,112
Maintenance Supervisor $10,453 $13,902
Police Captain $14,976 $19,919
Police Lieutenant $13,484 $17,933
Principal Management Analyst/CityClerk $14,404 $16,242
Public Works Director $14,976 $19,919
Public Works Manager $13,210 $18,100
Senior CivilEngineer $11,436 $15,208
Senior Management Analyst/Deputy CityClerk $11,436 $15,208 Senior Management Analyst/Public Info Officer $11,436 $15,208 Senior Planner $10,359 $13,778
Senior TrafficEngineer $11,436 $15,208
Adopted by Resolution No. _- on

9.7.b
Packet Pg. 113 Attachment: Exhibit 1 - Side Letter of Agreement with Classification and Salary Range Changes (New Classification - Public Works Director) 28 MANAGEMENT GROUP SALARY RANGES
EFFECTIVE SEPTEMBER 1, 2025 – 3.5%

POSITION MONTHLY

MINIMUM

MONTHLY

MAXIMUM
Accounting Manager $12,456 $16,566
Assistant City Manager $15,470 $20,576
Chief BuildingOfficial $11,676 $15,528
Chief of Police $18,291 $24,328
Chief Human ResourcesOfficer $14,770 $19,645
Chief TechnologyOfficer $14,770 $19,645
City Clerk $11,161 $15,068
City Engineer $13,672 $18,733
City Planner $13,672 $18,733
Director of Community Development/Assistant CityManager $16,349 $21,744 Economic DevelopmentManager $12,456 $16,566
Finance Manager $14,770 $19,646
Human Resources Manager $13,910 $18,501
Maintenance Superintendent $11,761 $15,641
Maintenance Supervisor $10,818 $14,389
Police Captain $15,501 $20,616
Police Lieutenant $13,955 $18,560
Principal Management Analyst/CityClerk $14,908 $16,811
Public Works Director $15,501 $20,616
Public Works Manager $13,672 $18,733
Senior CivilEngineer $11,837 $15,741
Senior Management Analyst/Deputy CityClerk $11,837 $15,741 Senior Management Analyst/Public Info Officer $11,837 $15,740 Senior Planner $10,721 $14,260
Senior TrafficEngineer $11,837 $15,741
Adopted by Resolution No. _- on

9.7.b
Packet Pg. 114 Attachment: Exhibit 1 - Side Letter of Agreement with Classification and Salary Range Changes (New Classification - Public Works Director) Director of Public Works
Bargaining Group: Management
Created: 2023; Revised February. 2024

DEFINITION
To plan, direct and review the activities of the divisions comprising the Public Works Department to include Engineering and Maintenance; and to provide professional technical staff assistance.

EQUIPMENT, METHODS AND GUIDELINES
Uses Federal, State and Local laws, policies, procedures and practices; statistical data, knowledge of public works principles and practices; knowledge of statues related to general building practices. Uses City vehicles, telephones, PC terminal and software, calculator, printer and copier. Uses statistical material and a variety of resource materials.

WORKING CONDITIONS
Predominantly inside work. Conditions also involve attendance at meetings, including some that are conducted during the evenings or on weekends. May also include occasional irregular hours.

PHYSICAL DEMANDS
The work emphasizes speech, hearing and vision (including that color vision necessary to accurately interpret visual displays). Ability to lift and carry files, blue prints and plan documents.

SUPERVISION RECEIVED AND EXERCISED
Receives administrative direction from the City Manager.

Exercises direct and indirect supervision over professional, technical, and clerical staff.

EXAMPLES OF DUTIES
Duties may include, but are not limited to, the following:

Direct and participate in the development and implementation of goals, objectives, policies and procedures.

Plan, direct, and review all public works engineering activities including design and surveying.

Plan, direct, and review the design and construction of the City's street and drainage structures.

Select, supervise and evaluate consulting engineering services; prepare requests for proposals; coordinate activities and provide technical assistance.

Confer with and advise administrative staff on problems related to the design and construction of public works systems, the interpretation and enforcement of construction specifications, and the

9.7.c
Packet Pg. 115 Attachment: Job Description (New Classification - Public Works Director) design and operation of traffic systems.

Review plans, engineering reports, budget estimates, and proposed ordinances submitted by department staff and consulting engineers.

Review and sign plans for public works improvement projects.

Serve as technical advisor to the City Manager and City Council on public works, engineering and traffic matters; develop comprehensive recommendations for management use.

May act as the City Engineer and Traffic Engineer and perform related duties as required by state and City laws.

Respond to and resolve difficult citizen inquiries and complaints.

Meet with the public in small and large groups to discuss City public works policies, practices and problems.

Supervise and participate in the preparation and administration of the Department budget.

Coordinate public works and engineering activities with other City departments and with outside agencies.

Select, supervise, train, and evaluate professional, technical and clerical subordinates.

Perform related duties as assigned.

QUALIFICATIONS
Knowledge of:

Principles and practices of engineering and administration as applied to the design and construction of public works facilities.

Methods, materials and techniques employed in public works construction.

Principles and practices of modern office management.

Recent developments, current literature and sources of information in municipal public works administration.

Principles of organization, administration, budget and personnel management.

Ability to:

Organize, direct, and coordinate the activities of a department in an efficient manner.

Delegate authority and responsibility, and schedule and program work on a long-term basis.

9.7.c
Packet Pg. 116 Attachment: Job Description (New Classification - Public Works Director) Communicate effectively, both orally and in writing.

Supervise, train and evaluate subordinates.

EXPERIENCE AND EDUCATION
Any combination of experience, education and/or training that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities would be:

Experience:

Five years of progressively responsible experience in municipal engineering and public works administration, including two years in a supervisory capacity.

Education:

Equivalent to a Bachelor's degree from an accredited college or university with major course work in civil engineering or a related field.

LICENSE AND/OR CERTIFICATES
Possession of a certificate of registration as a professional civil engineer in the State of California.

Possession of, or ability to obtain, a valid California driver's license and a satisfactory driving record.

9.7.c
Packet Pg. 117 Attachment: Job Description (New Classification - Public Works Director)

CITY COUNCIL STAFF REPORT
Meeting Date: February 26, 2024
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ADOPT RESOLUTION NO. ___-24 AUTHORIZING THE CITY

MANAGER TO EXECUTE A PROFESSIONAL SERVICES

AGREEMENT WITH HARRIS & ASSOCIATES FOR ASSESSMENT

ENGINEERING SERVICES FOR A PROPOSED ASSESSMENT RATE
INCREASE FOR ASSESSMENT DISTRICT 20 AND ASSESSMENT
DISTRICT 22

SYNOPSIS
The purpose of this item is for the City Council to authorize the City Manager to execute a Professional Services Agreement with Harris & Associates, to provide Assessment Engineering Services for proposed assessment rate increases within Assessment District 20 and Assessment District 22.

DISCUSSION
Background
An assessment district is a financial mechanism that allows for the levy of assessments on a specific geographic area or parcels of real estate that have been identified as receiving a direct and special “benefit” from a public improvement or service. The City has two assessment districts:

Assessment District 20 (AD20), Zones 1 – 6, and Assessment District 22 (AD22), both of which are governed by the Landscape and Lighting Act of 1972. AD20 was formed in 1988 and funds the maintenance of lighting, landscaping, and sidewalks at an enhanced level along certain commercial streets. AD22 consists of two subdivisions: Grayson Woods, which was formed in 1997; and Gallery Walk, which was annexed into AD22 in 2002. AD22 pays for the ongoing maintenance and servicing of landscaping and lighting improvements along public streets and easements within the District.

These landscape and lighting improvements are considered to be of direct benefit to the properties within AD20 and AD22 boundaries. The maintenance activities include weekly mowing and edging of turf; maintenance and repair of irrigation systems; pruning; weeding; debris removal; graffiti removal; streetlight repair; as well as utility charges for water and electricity. The funding for the maintenance and services is provided through annual assessments paid by benefiting property owners within the two Assessment Districts. Over the past several years, the annual

10.1 Packet Pg. 118
maintenance and servicing costs have increased while the assessment rates for AD20 and AD22 have remained relatively unchanged.

Harris & Associates has been the City’s Engineer of Work since 2019, helping the City to confirm there are secure funding sources for the ongoing maintenance within the Districts. The annual reports prepared by Harris & Associates for FY2023/24 determined that the zones within AD20 and AD22 were either in a funding deficit or trending in that direction, and without additional assessment revenue, the City would have to reduce the level of services being provided to each zone within AD20, as well as AD22, commensurate with the available funds. The City Council, at the June 5, 2023 City Council meeting, directed staff to pursue a Proposition 218 vote for both AD20 and AD22 to establish an increased assessment rate for the under-funded zones and to incorporate an annual escalation factor to keep pace with inflation.

Analysis
On October 11, 2023, Harris & Associates submitted a proposal for Assessment Engineering Services (see Exhibit A) for proposed assessment rate increases in AD20 and AD22. A list of zones and the recommended actions to be taken for each is listed below. The zones shown are either being supplemented by the City’s General Fund, because they do not generate sufficient revenues from the annual assessments, and/or they were created prior to the implementation of Proposition 218, and as a result have an annual escalation clause written into the method of assessment.
• AD20, Zone 1 – Assessment Rate Increase and Annual Escalator • AD20, Zone 2 – Annual Escalator only
• AD20, Zone 3 – Annual Escalator only
• AD20, Zone 4 – Annual Escalator only
• AD20, Zone 5-A – Annual Escalator only
• AD20, Zone 5-B – Assessment Rate Increase and Annual Escalator • AD20, Zone 6 – Assessment Rate Increase and Annual Escalator • AD22, Grayson Woods – Assessment Rate Increase and Annual Escalator • AD22, Gallery Walk – Annual Escalator only
Harris & Associates cost proposal for the work is $39,310 and includes the following:
• Evaluation of Funding Needs
• Preparation of the Engineer’s Reports, Staff Reports and Resolutions • Outreach and Public Meetings
• Preparation of Property Owner Notice and Mailed Ballot The project will include the preparation of an Engineer’s Report for each District, based on the requirements of the 1972 Act and Proposition 218. Harris & Associates team understands the requirements of Proposition 218 and the importance of developing a strategy that will minimize the risk of a challenge. Based on Harris & Associates’ experience as the Engineer of Work for AD20 and AD22, and the firm’s familiarity with the City and City personnel, staff believes the firm is uniquely qualified to complete the work efficiently and with minimal guidance. Harris &

10.1 Packet Pg. 119
Associates’ historical knowledge of the assessment districts enables the firm to quickly answer questions from the City Council, staff, and the general public, while maintaining and protecting the best interests of the City and ensuring a positive outcome.

FISCAL IMPACT
The cost of preparing all necessary reports required for the Assessment Engineering Services for the Proposed Assessment Rate Increases for AD20 and AD22 will be borne by the property owners within AD20 and AD22. The not-to-exceed amount for the engineering services specified in the Professional Services Agreement is $39,310, which will be paid by the Assessment Districts.

PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department.

The agenda and staff report are posted on the City’s web page.

RECOMMENDED CITY COUNCIL ACTION
Adopt the proposed resolution.

ALTERNATIVES TO RECOMMENDED ACTION
None Recommended.

ATTACHMENT(S):

Proposed Resolution
Exhibit A – Cost Proposal and Scope of Work
Exhibit B – Agreement
Prepared by: Ann James, Public Works Manager
Reviewed by: Erick Cheung, Finance Manager
Approved by: Ethan Bindernagel, City Manager

10.1 Packet Pg. 120
RESOLUTION NO. __-24

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANT HILL

AUTHORIZING THE CITY MANAGER TO EXECUTE A PROFESSIONAL SERVICES

AGREEMENT WITH HARRIS & ASSOCIATES FOR ASSEMENT ENGINEERING SERVICES FOR A PROPOSED RATE INCREASE FOR ASSESSMENT DISTRICT 20 AND ASSESSMENT DISTICT 22
WHEREAS, on August 1, 1988, by Resolution No. 75-88, the City Council of the City of Pleasant Hill ordered the formation of and levied the first assessment within Assessment District No. 20, City of Pleasant Hill, Contra Costa County, State of California (AD20), pursuant to the provisions of the Landscape and Lighting Act of 1972 (commencing at Section 22500 of the California Streets and Highways Code herein referred to as "the Act"); and WHEREAS, AD20 was amended in 1999 by creating a new zone (Zone 6) that includes the Downtown area; and
WHEREAS, on December 1, 1997, by Resolution No. 88-97, the City Council of the City of Pleasant Hill ordered the formation of and levied the first assessment within Assessment District No. 22, City of Pleasant Hill, Contra Costa County, State of California (AD22), pursuant to the provisions of the Act; and
WHEREAS, AD22 was amended in 2002 to include Subdivision 8304, Gallery Walk; and WHEREAS, Section 22620 et seq., of the Act provides for the levy of annual assessments after the formation of AD20 and AD22; and
WHEREAS, Harris & Associates, Inc. is designated as Engineer of Work for purposes of the AD20 and AD22 within the assessment districts; and
WHEREAS, the annual maintenance and servicing costs have increased while the assessment rates for AD20 and AD22 have remained relatively unchanged, and the City Council is initiating a Proposition 218 vote based on the requirements of the Act and Proposition 218.

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Pleasant Hill that:

1. The City Council accepts the Harris & Associates cost proposal in the amount of $39,310 at the prices set forth in Exhibit A.

2. Authorizes the City Manager to execute a Professional Services Agreement (Exhibit B) with Harris & Associates for Assessment Engineering Services for a proposed rate increase for AD20 and AD22.
[Signatures on the Following Page]

10.1.a
Packet Pg. 121 Attachment: Proposed Resolution (AD20 and AD22 Assessment Enginereing Services) ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting held on the 26th day of February, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________________
MATTHEW RINN, Mayor
ATTEST:
_________________________________
LYONE P. CONNER, City Clerk

10.1.a
Packet Pg. 122 Attachment: Proposed Resolution (AD20 and AD22 Assessment Enginereing Services) 1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com October 11, 2023
Ms. Ann James
City of Pleasant Hill
100 Gregory Lane
Pleasant Hill, CA 94523

PROPOSAL TO PROVIDE ASSESSMENT ENGINEERING SERVICES FOR PROPOSED ASSESSMENT RATE INCREASES ASSESSMENT DISTRICT NO. 20 AND ASSESSMENT DISTRICT NO. 22 Dear Ann:

Since 1987, Harris & Associates (Harris) has been providing numerous public finance, financial engineering, and special projects to public agencies throughout the State of California, including the City of Pleasant Hill (“City”). As the City’s Assessment Engineer for your Landscape and Lighting Districts (LLD’s) for the past 4 years, we have helped the City confirm that there are secure funding sources for the ongoing maintenance of streetlights and landscaping. Our team looks forward to continuing to serve as a “trusted advisor” to the City. Harris has a proven track record with agencies throughout the state, administering special financing districts and successfully developing and implementing funding strategies. References may be provided as requested.

Proven Success. Our work as the Assessment Engineer for the City over the past four years has proven to be a successful partnership. Our team has the right knowledge and experience to continue this work and expand on the success of our partnership.

Providing the Right Solution. We understand the City’s districts and the expectations of the City and its staff. We develop creative solutions that address the City’s needs. We have experience providing district administration, financial reviews, formations and annexations, and Proposition 218 compliance services.

We understand that cities have limited resources and rely on Harris to keep their best interests in mind and act as an extension of their staff when managing such projects.

Familiarity with the City. Our project manager, Rick Clark, will continue to be your primary point of contact and will be actively engaged in project assignments. He has experience managing numerous project types and understands the importance of serving as an extension of staff. Rick’s experience working with the City and your districts prepares the Harris team to work efficiently with minimal guidance to carry out the scope of services, reducing demands on City staff and assuring the best interests of the City will be carefully maintained and protected. Because of our history with the City, we can quickly answer questions from Council, City staff, and the public.

10.1.b
Packet Pg. 123 Attachment: Exhibit A - Cost Proposal and Scope of Work (AD20 and AD22 Assessment Enginereing Services) Ms. Ann James
City of Pleasant Hill
October 11, 2023

1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com The following is our proposal for Financial Engineering Services related to a Proposition 218 Assessment Rate Increase and/or Implementing an Annual Assessment Rate Escalator for various Zones within the City of Pleasant Hill (the “City”) Assessment District No. 20 and Assessment District No. 22 (“AD 20” and “AD 22”, respectively). A list of the Zones to be addressed and the recommended actions to be performed for each are listed below:
• AD 20, Zone 1 – Assessment Rate Increase and Annual Escalator • AD 20, Zone 2 – Annual Escalator only
• AD 20, Zone 3 – Annual Escalator only
• AD 20, Zone 4 – Annual Escalator only
• AD 20, Zone 5-A – Annual Escalator only
• AD 20, Zone 5-B – Assessment Rate Increase and Annual Escalator • AD 20, Zone 6 – Assessment Rate Increase and Annual Escalator • AD 22, Grayson Woods – Assessment Rate Increase and Annual Escalator • AD 22, Gallery Walk – Annual Escalator only
The Zones shown above are either being supplemented by the City General Fund because they do not generate sufficient revenues from the annual assessments, and/or they were created prior to the implementation of Proposition 218, and as a result, do not have an annual escalation clause written into the Method of Assessment. The purpose of this project is to establish an increased assessment rate for the under-funded Zones and to incorporate an annual escalation factor to keep up with inflation.

The project will include the preparation of an Engineer’s Report for each District based upon the requirements of the 1972 Act and Proposition 218 (Article XIII D of the California State Constitution).

Our staff has been helping public agencies throughout California evaluate financing options and implement successful funding strategies for many years. Our team members understand the requirements of Proposition 218 and the importance of developing a strategy that will minimize the risk of a challenge.

PROJECT APPROACH, SCHEDULE AND COMPENSATION

SCOPE OF WORK
Phase 1 – Evaluate Funding Needs

1.1 Working with City staff, review past financials and future funding needs for the Zones, to gain an understanding of the existing or desired levels of service and where the funding falls short.

1.2 Review and identify special versus general benefits that the Zone improvements and services provide, based upon a review the assessed parcels, annual budgets, recent court decisions and pending challenges.

10.1.b
Packet Pg. 124 Attachment: Exhibit A - Cost Proposal and Scope of Work (AD20 and AD22 Assessment Enginereing Services) Ms. Ann James
City of Pleasant Hill
October 11, 2023

1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com

1.3 Prepare a preliminary assessment methodology based on a detailed review of “special and general benefit,” quantify the special benefit conferred by the improvements and services provided, and identify an appropriate assessment rate for each Zone.

1.4 Meet with City staff to discuss and review preliminary assessment methodology and make one set of consolidated comments as appropriate.

Phase 2 – Prepare the Engineer’s Reports

2.1 Harris will finalize an assessment methodology. The methodology will be compliant with Proposition 218 and take into account the types of parcels that make up the Zones and the improvements and services provided. The assessment methodology will ensure that the proportionality requirements of Proposition 218 are incorporated into the calculation of the assessments for each Zone.

2.2 Prepare the Engineer’s Report for the increased assessment to include the following items:
• A brief description of the existing and increased assessments, • Description of improvements and services funded by the assessments, • Estimate of costs for landscape and lighting services funded by the assessments, • Method of Apportionment for the assessments,
• Identify and quantify general versus special benefit, • Description of an annual escalation factor for increasing the assessments, • A listing of parcels in each Zone and their maximum assessment amounts.

2.3 Provide a draft report for review by City staff and legal counsel, and incorporate one set of consolidated comments into the Engineer’s Report as appropriate.

2.4 Create and provide staff reports and Resolutions for Council meetings.

2.5 Present Preliminary Engineer’s Report, if requested, to adopt Resolution of Intention and authorize an assessment ballot procedure. Attendance for this meeting is assumed to be via Zoom or other on-line platform.

OPTIONAL/ALTERNATIVE SERVICES
Phase 3 – Development of Public Outreach Strategy

3.1 Harris will assist City Staff in the development of key messages for property owners that clearly explain the services provided, financial limitations and the need for additional revenue. The key messages can be woven into communication materials and public outreach efforts.

10.1.b
Packet Pg. 125 Attachment: Exhibit A - Cost Proposal and Scope of Work (AD20 and AD22 Assessment Enginereing Services) Ms. Ann James
City of Pleasant Hill
October 11, 2023

1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com Phase 4 – Coordinate Printing and Mailing of Property Owner Notice and Mailed Ballot

4.1 Prepare Preliminary Assessment Roll for mailing.

4.2 Prepare a draft Notice of Public Hearing and Assessment Ballot for review and comment by City staff and legal counsel.

4.3 Printing and mailing of individual notices and assessment ballots to property owners may be performed and coordinated with a mailing house. Costs of using a mailing house is not included in the Cost Estimate and will be invoiced at our cost if chosen. The City may also choose to conduct the mailing in-house.

4.4 Respond to requests for replacement ballots and to answer questions received from property owners during the balloting period.

4.5 Attend the Public Hearing to present Final Engineer’s Report and assist in the tabulation of the assessment ballots received following the close of the Public Hearing. Provide a ballot tabulation spreadsheet to facilitate calculation of the assessments for and opposed to the assessment to determine if a majority protest exists.

RESPONSIBILITIES OF THE CITY

1. Provide financial information and other pertinent data necessary to develop the budgets and prepare the assessment methodology.

2. Provide posting and publishing of all legally required meeting documents.

3. Retain qualified legal counsel to provide legal advice related to the increased assessment.

4. Postage and out of pocket costs for printing of Notices and Property Owner Assessment Ballots.

TENTATIVE SCHEDULE
Harris & Associates is available to begin work immediately. Prior to the start of work, we will schedule a conference call to develop a detailed project schedule with specific milestones. After approval of the Preliminary Engineer’s Reports by the City Council, Harris will coordinate the printing and mailing of the property owner Notices and Assessment Ballots.

10.1.b
Packet Pg. 126 Attachment: Exhibit A - Cost Proposal and Scope of Work (AD20 and AD22 Assessment Enginereing Services) Ms. Ann James
City of Pleasant Hill
October 11, 2023

1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com

ESTIMATED FEE
Harris & Associates will provide the above described Scope of Services for the following lump sum fees.

Phase 1 – Evaluate Funding Needs ............................................................................ $15,335.00 Phase 2 – Prepare the Engineer’s Report.. ................................................................ $13,270.00 Total Harris Fee ...................................................................................................... ..$28,605.00

OPTIONAL/ALTERNATIVE SERVICES
Phase 3 – Development of Public Outreach Strategy ..................................................... $2,715.00 Phase 4 – Coordinate Printing/Mailing of Ballots/Attend Public Hearing ..................... $7,990.00 Total Optional/Alternative Services ......................................................................... $10,705.00 Total Cost Estimate ................................................................................ $39,310.00 The fee for printing, postage, and mailing of the Notice and Property Owner Ballots is not included in the lump sum fee above. These fees will be based on the actual cost to produce and mail the final approved documents based on the actual cost to produce and mail the final approved documents, based on, but not limited to, the number pages, printing both sides, the number of colors, the type of envelope, preprinted return envelopes, and return postage. If using a third-party mail house, the third-party mail house will invoice the City directly. If Harris is to cover these costs, a handling fee of 15% will be added to the costs for printing and mailing. Postage must be paid prior to mailing.

Invoices will be submitted once each phase has been completed. Should the City direct the work to stop at any point during the process, an invoice will be submitted for work completed to date. All invoices shall be paid within 30 days of receipt
Additional services will be provided as mutually agreeable based upon Harris’ Hourly Rate Schedule at the time services are provided. Harris’ Hourly Rate Schedule for 2024 is shown below. Our rates will be adjusted by the consumer price index (CPI) on January 1, 2025 and each subsequent January 1st .

10.1.b
Packet Pg. 127 Attachment: Exhibit A - Cost Proposal and Scope of Work (AD20 and AD22 Assessment Enginereing Services) Ms. Ann James
City of Pleasant Hill
October 11, 2023

1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com

PROJECT TEAM
Harris & Associates specializes in serving the professional service needs of public agencies. Founded in 1974, Harris has a staff of 200 employee owners that includes financial and assessment engineering specialists and licensed civil engineers. We understand that successful projects have to address the concerns of property owners and taxpayers, be sensitive to the economic climate, and conform to local political realities. Harris team members are experts in special benefit analysis and have extensive knowledge of State codes and funding mechanisms relating to special financing districts, including Article XIIID of the California Constitution (Proposition 218) and related legislation. Team member for this project will include:

Alison Bouley, PE, will serve as the Assessment Engineer and Project Director on the project. Mrs. Bouley is a registered engineer and is Vice President of our Municipal and District Finance team. She has 25 years of experience in managing the programming and financing of infrastructure improvements consulting to cities, counties and special districts throughout the State. She has assisted agencies with the analysis of special benefit from various types of improvements, in accordance with the requirements of Article XIII D of the California State Constitution (Proposition 218). She will be in “responsible charge” as required by Section 4(b) of Article XIIID of the State Constitution, which requires that “all assessments be supported by a detailed engineer’s report prepared by a registered professional engineer certified by the State of California.” Ultimately, Mrs. Bouley will serve as the licensed professional who will oversee authorship of and sign the Engineer’s Report.

Rick Clark will serve as the Project Manager for this project. He has more than 28 years of experience in public finance and in-depth knowledge of Proposition 218. He has also been working with the City’s Districts for the past four years. Rick has comprehensive experience in special district formation, developing funding strategies to meet public agencies’ and constituents’ needs, and implementing those strategies. As project manager, Rick will have responsibility for the development and review of deliverables. He will coordinate project team activities, participate in key meetings and calls, and manage the project schedule and budget.

Title 2024 Billing
Rate
Vice President $285.00
Director $270.00
Senior Consultant $270.00
Project Manager $200.00
Senior Analyst $170.00
Analyst $140.00

10.1.b
Packet Pg. 128 Attachment: Exhibit A - Cost Proposal and Scope of Work (AD20 and AD22 Assessment Enginereing Services) Ms. Ann James
City of Pleasant Hill
October 11, 2023

1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com • Principal-in-Charge – Donna Segura is a Director of in our Municipal and District Finance team and leads the district formation and administration team. She has over 23 years of special district formation and administration experience consulting to cities, counties and special districts throughout the State of California. She has assisted agencies with the analysis of special benefit from various types of improvements, in accordance with the requirements of Article XIIID of the California State Constitution (Proposition 218). She has also performed formation and annual administration services for Mello-Roos Community Facilities Districts, and various other fee and special tax districts Dennis Anderson, will serve as a Technical Advisor on the project. He has over 30 years of financial engineering experience consulting to cities, counties and special districts throughout the State of California. Dennis has assisted agencies with feasibility studies and the analysis of special benefit or approximate use from various types of improvements in accordance with the requirements of Article XIIID of the California State Constitution (Proposition 218) and the various fee, assessment and special tax acts within the State Codes. He has prepared Engineer’s Reports and Special Tax Rate and Method of Apportionments, Boundary Maps and Assessment Diagrams, staff reports, and resolutions, and has assisted with presentations to agency boards and property owners, the preparation and mailing of notices and ballots, and ballot tabulation. He has also managed the annual administration of both bonded and maintenance districts, including facility acquisition and reimbursement. Early in his career, Dennis was an employee for 2 adjacent sanitary sewer districts in San Diego County which shared staff.

In addition to preparing public notices related to sewer charges, he was responsible for calculating connection charges, issuing sewer connection permits, preparing conditions of approval for new development, calculating annual sewer charges, placing charges on the annual property tax bills for collection, and responding to inquiries related to the sewer ordinances.

The Harris project team shown above will be supported by additional members of Harris’ public finance group as needed.

We are looking forward to working with you on this important project. If you have any questions regarding this proposal, we are pleased to discuss them at your convenience. As the project manager for this engagement, you may contact me at (949) 536-2526 or via email at [email protected].

Sincerely,
Harris & Associates Harris & Associates
Rick Clark, Project Manager Alison Bouley, P.E. Vice President Municipal + District Finance Municipal + District Finance

10.1.b
Packet Pg. 129 Attachment: Exhibit A - Cost Proposal and Scope of Work (AD20 and AD22 Assessment Enginereing Services) 1 AGREEMENT FOR PROFESSIONAL SERVICES
This Agreement is made and entered into as of the 20th day of February, 2024, by and between the City of Pleasant Hill ("City") and Harris & Associates, Inc., ("Consultant").

RECITALS
A. Consultant is specially trained, experienced and competent to perform the special services which will be required by this Agreement; and
B. Consultant possesses the skill, experience, ability, background, certification and knowledge to provide the services described in this Agreement on the terms and conditions described herein.

AGREEMENT

1. Scope of Services. The Consultant shall furnish the services listed on Exhibit A in a professional manner.

2. Time of Performance. The services of Consultant are to commence upon execution of this Agreement and shall continue until all authorized work is approved by the City. All such work shall be completed no later than September 30, 2024.

3. Compensation. Compensation to be paid to Consultant shall be in accordance with the Schedule of Charges set forth in Exhibit A, which is attached hereto and incorporated herein by reference. In no event shall Consultant's compensation exceed $39,310 without additional authorization from the City. Payment by City under this Agreement shall not be deemed a waiver of defects, even if such defects were known to the City at the time of payment.

4. Method of Payment. Consultant shall submit a monthly billing to City describing the work performed. Consultant's bills shall include a brief description of the services performed, the date the services were performed, the number of hours spent and by whom, and a description of any reimbursable expenditures. City shall pay Consultant no later than 30 days after approval of the invoice by City staff. When payments made by City equal 90% of the maximum fee provided for in this Agreement, no further payments shall be made until the final work under this Agreement has been accepted by City.

5. Ownership of Documents. All plans, studies, documents and other writings prepared by and for Consultant, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notes and internal documents, shall become the property of the City upon payment to Consultant for such work, and the City shall have the sole right to use such materials in its discretion without further compensation to Consultant or to any other party. Consultant shall, at Consultant's expense, provide such reports, plans, studies, documents and other writings to City upon written request. Any modifications made by the City or any agents of the City, to any of the Consultant’s documents or any partial use or reuse of the documents without the express written consent of the Consultant will be at the City’s sole risk and

10.1.c
Packet Pg. 130 Attachment: Exhibit B - Agreement (AD20 and AD22 Assessment Enginereing Services) 2 without liability to the Consultant.
6 Independent Contractor. It is understood that Consultant, in the performance of the work and services agreed to be performed, shall act as and be an independent contractor and shall not act as an agent or employee of the City. Consultant shall obtain no rights to retirement benefits or other benefits which accrue to City's employees, and Consultant hereby expressly waives any claim it may have to any such rights.

7. Interest of Consultant. Consultant (including principals, associates and professional employees) covenants and represents that it does not now have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source of income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant's services hereunder. Consultant further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.

Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant will not:
a. make a governmental decision whether to:

1. approve a rate, rule, or regulation;

2. adopt or enforce a law;

3. issue, deny, suspend, or revoke any permit, license, application, certificate, approval, order, or similar authorization or entitlement;

4. authorize the City to enter into, modify, or renew a contract provided it is the type of contract that requires agency approval;

5. grant City approval to a contract that requires agency approval and to which the City is a party, or to the specifications for such a contract;

6. grant City approval to a plan, design, report, study, or similar item;

7. adopt, or grant City approval of, policies, standards, or guidelines for the agency, or for any subdivision thereof; or
b. serve in a staff capacity with the City and in that capacity participate in making a governmental decision as defined in 2 California Code of Regulations (“C.C.R”) § 18704(a) and (b) or perform the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City’s Conflict of Interest Code under 2 C.C.R. § 87302. (2 C.C.R. § 18700.3.)

10.1.c
Packet Pg. 131 Attachment: Exhibit B - Agreement (AD20 and AD22 Assessment Enginereing Services) 3 8. Professional Ability of Consultant. City has relied upon the professional training and ability of Consultant to perform the services hereunder as a material inducement to enter into this Agreement. Consultant shall therefore provide properly skilled professional and technical personnel to perform all services under this Agreement. All work performed by Consultant under this Agreement shall be in accordance with applicable legal requirements and shall meet the standard of quality ordinarily to be expected of competent professionals in Consultant's field of expertise.

9. Indemnity. Consultant agrees to defend, indemnify and hold harmless the City, its officers, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damages, injuries, and liability, direct or indirect (including any and all related costs and expenses in connection therein), arising out of the performance of services under this Agreement, except for any such claim arising out of the sole negligence or willful misconduct of the City, its officers, agents, employees or volunteers.

To the extent that the Consultant’s services are subject to California Civil Code 2782.8, the above indemnity and duty to defend shall be limited to the extent required by Civil Code Section 2782.8.

10. Insurance Requirements.
a. Consultant, at Consultant's own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies. To the extent that any portion of the following requirements are satisfied through excess or umbrella coverage, such coverage shall be maintained on the same terms as are required for the primary policies under this Agreement.
i. Workers' Compensation Coverage. Consultant shall maintain Workers' Compensation Insurance and Employer's Liability Insurance for his/her employees in accordance with the laws of the State of California. In addition, Consultant shall require each subcontractor to similarly maintain Workers' Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the subcontractor's employees. Any notice of cancellation or nonrenewal of all Workers' Compensation policies must be received by the City at least thirty (30) days prior to such change. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from work performed by Consultant for City.
ii. General Liability Coverage. Consultant shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury and property damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit.

10.1.c
Packet Pg. 132 Attachment: Exhibit B - Agreement (AD20 and AD22 Assessment Enginereing Services) 4 iii. Automobile Liability Coverage. Consultant shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than two million dollars ($2,000,000) combined single limit for each occurrence.
iv. Professional Liability Coverage. Consultant shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant's operations under this Agreement, whether such operations be by the Consultant or by its employees, subcontractors, or subconsultants. The amount of this insurance shall not be less than two million dollars ($2,000,000) on a claims-made annual aggregate basis, or a combined single-limit per occurrence basis.
b. Policy Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a Best's rating of no less than A:VII and shall be endorsed with the following specific language:
i. The City of Pleasant Hill, its elected or appointed officers, officials, employees, agents and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the Consultant, including materials, parts or equipment furnished in connection with such work or operations. ii. This policy shall be considered primary insurance as respects the City, its elected or appointed officers, officials, employees, agents and volunteers. Any insurance maintained by the City, including any self-insured retention the City may have, shall be considered excess insurance only and shall not contribute with it.

If Company maintains higher insurance limits than the minimums specified herein, City shall be entitled to coverage for the higher limits maintained by the Company. iii. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
iv. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents or volunteers.
v. If the insurance required to be provided by this policy is suspended, voided, canceled, or reduced in coverage or in limits, Consultant shall notice City in writing at least thirty (30) days prior to the effective date of such action described above. If less than thirty (30) days’ notice is provided to Consultant, Consultant shall notify City immediately of such action.

10.1.c
Packet Pg. 133 Attachment: Exhibit B - Agreement (AD20 and AD22 Assessment Enginereing Services) 5 c. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. At the City's option, Consultant shall demonstrate financial capability for payment of such deductibles or self-insured retentions. d. Certificates of Insurance and Endorsements. Consultant shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times during the term of this Agreement. e. Wasting Policies. No policy required herein shall include a “wasting” policy limit (i.e. limit that is eroded by the cost of defense).
f. 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.

11. Compliance with Laws. Consultant shall use the standard of care in its profession to comply with all applicable federal, state and local laws, codes, ordinances and regulations.

12. Licenses. Consultant represents and warrants to City that it has all licenses, permits, qualifications, insurance and approvals of whatsoever nature which are legally required of Consultant to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, insurance and approvals which are legally required of Consultant to practice its profession. Consultant shall maintain a City of Pleasant Hill business license.

13. Controlling Law Venue. This Agreement and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this Agreement shall be held exclusively in a state court in the County of Contra Costa, Martinez, California.

14. Written Notification. Any notice, demand, request, consent, approval or communication that either party desires or is required to give to the other party shall be in writing and either served personally or sent prepaid, first class mail. Any such notice, demand, etc. shall be addressed to the other party at the address set forth herein below. Either party may change its address by notifying the other party of the change of address. Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section.

If to City: City of Pleasant Hill
C/O Ann James
310 Civic Drive
Pleasant Hill, CA 94523-3323

10.1.c
Packet Pg. 134 Attachment: Exhibit B - Agreement (AD20 and AD22 Assessment Enginereing Services) 6 If to Consultant: Harris & Associates, Inc.

C/O Alison Bouley, P.E.
1401 Willow Pass Rd., Suite 500
Concord, CA 94520

15. Consultant's Books and Records.
a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant to this Agreement.
b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Consultant's address indicated for receipt of notices in this Agreement.
d. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant's business, City may, by written request by any of the above named officers, require that custody of the records be given to the City and that the records and documents be maintained in City Hall.

Access to such records and documents shall be granted to any party authorized by Consultant, Consultant's representatives, or Consultant's successor-in-interest.

16. Entire Agreement. This Agreement constitutes the complete and exclusive statement of Agreement between the City and Consultant. All prior written and oral communications, including correspondence, drafts, memoranda, and representations, are superseded in total by this Agreement.

17. Amendments. This Agreement may be modified or amended only by a written document executed by both Consultant and City and approved as to form by the City Attorney.

18. Waiver. No failure on the part of either party to exercise any right or remedy hereunder shall operate as a waiver of any other right or remedy that party may have hereunder.

19. Litigation Expenses and Attorneys' Fees. If either party to this Agreement commences any legal action against the other party arising out of this Agreement, the prevailing party shall be entitled to recover its reasonable litigation expenses, including court costs, expert witness fees,

10.1.c
Packet Pg. 135 Attachment: Exhibit B - Agreement (AD20 and AD22 Assessment Enginereing Services) 7 discovery expenses, and attorneys' fees.

20. Execution. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart.

21. Assignment and Subcontracting. The parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Consultant. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the express consent of the City. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the written authorization of the City. If City consents to such subcontract, Consultant shall be fully responsible to City for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between City and subcontractor nor shall it create any obligation on the part of the City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise is required by law.

22. Termination. This Agreement may be terminated immediately for cause or by either party without cause upon fifteen days' written notice of termination. Upon termination, Consultant shall be entitled to compensation for services performed up to the effective date of termination.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.

CITY OF PLEASANT HILL: CONSULTANT:
__________________________ By:

Ethan Bindernagel, City Manager
Title:

Business License #
APPROVED AS TO FORM: ATTEST:
__________________________ __________________________
Janet E. Coleson, City Attorney Lyone Conner, City Clerk Attachments: Exhibit A – Scope of Services and Compensation Director

10.1.c
Packet Pg. 136 Attachment: Exhibit B - Agreement (AD20 and AD22 Assessment Enginereing Services) 1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com October 11, 2023
Ms. Ann James
City of Pleasant Hill
100 Gregory Lane
Pleasant Hill, CA 94523

PROPOSAL TO PROVIDE ASSESSMENT ENGINEERING SERVICES FOR PROPOSED ASSESSMENT RATE INCREASES ASSESSMENT DISTRICT NO. 20 AND ASSESSMENT DISTRICT NO. 22 Dear Ann:

Since 1987, Harris & Associates (Harris) has been providing numerous public finance, financial engineering, and special projects to public agencies throughout the State of California, including the City of Pleasant Hill (“City”). As the City’s Assessment Engineer for your Landscape and Lighting Districts (LLD’s) for the past 4 years, we have helped the City confirm that there are secure funding sources for the ongoing maintenance of streetlights and landscaping. Our team looks forward to continuing to serve as a “trusted advisor” to the City. Harris has a proven track record with agencies throughout the state, administering special financing districts and successfully developing and implementing funding strategies. References may be provided as requested.

Proven Success. Our work as the Assessment Engineer for the City over the past four years has proven to be a successful partnership. Our team has the right knowledge and experience to continue this work and expand on the success of our partnership.

Providing the Right Solution. We understand the City’s districts and the expectations of the City and its staff. We develop creative solutions that address the City’s needs. We have experience providing district administration, financial reviews, formations and annexations, and Proposition 218 compliance services.

We understand that cities have limited resources and rely on Harris to keep their best interests in mind and act as an extension of their staff when managing such projects.

Familiarity with the City. Our project manager, Rick Clark, will continue to be your primary point of contact and will be actively engaged in project assignments. He has experience managing numerous project types and understands the importance of serving as an extension of staff. Rick’s experience working with the City and your districts prepares the Harris team to work efficiently with minimal guidance to carry out the scope of services, reducing demands on City staff and assuring the best interests of the City will be carefully maintained and protected. Because of our history with the City, we can quickly answer questions from Council, City staff, and the public.

EXHIBIT A 10.1.c
Packet Pg. 137 Attachment: Exhibit B - Agreement (AD20 and AD22 Assessment Enginereing Services) Ms. Ann James
City of Pleasant Hill
October 11, 2023

1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com The following is our proposal for Financial Engineering Services related to a Proposition 218 Assessment Rate Increase and/or Implementing an Annual Assessment Rate Escalator for various Zones within the City of Pleasant Hill (the “City”) Assessment District No. 20 and Assessment District No. 22 (“AD 20” and “AD 22”, respectively). A list of the Zones to be addressed and the recommended actions to be performed for each are listed below:
• AD 20, Zone 1 – Assessment Rate Increase and Annual Escalator • AD 20, Zone 2 – Annual Escalator only
• AD 20, Zone 3 – Annual Escalator only
• AD 20, Zone 4 – Annual Escalator only
• AD 20, Zone 5-A – Annual Escalator only
• AD 20, Zone 5-B – Assessment Rate Increase and Annual Escalator • AD 20, Zone 6 – Assessment Rate Increase and Annual Escalator • AD 22, Grayson Woods – Assessment Rate Increase and Annual Escalator • AD 22, Gallery Walk – Annual Escalator only
The Zones shown above are either being supplemented by the City General Fund because they do not generate sufficient revenues from the annual assessments, and/or they were created prior to the implementation of Proposition 218, and as a result, do not have an annual escalation clause written into the Method of Assessment. The purpose of this project is to establish an increased assessment rate for the under-funded Zones and to incorporate an annual escalation factor to keep up with inflation.

The project will include the preparation of an Engineer’s Report for each District based upon the requirements of the 1972 Act and Proposition 218 (Article XIII D of the California State Constitution).

Our staff has been helping public agencies throughout California evaluate financing options and implement successful funding strategies for many years. Our team members understand the requirements of Proposition 218 and the importance of developing a strategy that will minimize the risk of a challenge.

PROJECT APPROACH, SCHEDULE AND COMPENSATION

SCOPE OF WORK
Phase 1 – Evaluate Funding Needs

1.1 Working with City staff, review past financials and future funding needs for the Zones, to gain an understanding of the existing or desired levels of service and where the funding falls short.

1.2 Review and identify special versus general benefits that the Zone improvements and services provide, based upon a review the assessed parcels, annual budgets, recent court decisions and pending challenges.

10.1.c
Packet Pg. 138 Attachment: Exhibit B - Agreement (AD20 and AD22 Assessment Enginereing Services) Ms. Ann James
City of Pleasant Hill
October 11, 2023

1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com

1.3 Prepare a preliminary assessment methodology based on a detailed review of “special and general benefit,” quantify the special benefit conferred by the improvements and services provided, and identify an appropriate assessment rate for each Zone.

1.4 Meet with City staff to discuss and review preliminary assessment methodology and make one set of consolidated comments as appropriate.

Phase 2 – Prepare the Engineer’s Reports

2.1 Harris will finalize an assessment methodology. The methodology will be compliant with Proposition 218 and take into account the types of parcels that make up the Zones and the improvements and services provided. The assessment methodology will ensure that the proportionality requirements of Proposition 218 are incorporated into the calculation of the assessments for each Zone.

2.2 Prepare the Engineer’s Report for the increased assessment to include the following items:
• A brief description of the existing and increased assessments, • Description of improvements and services funded by the assessments, • Estimate of costs for landscape and lighting services funded by the assessments, • Method of Apportionment for the assessments,
• Identify and quantify general versus special benefit, • Description of an annual escalation factor for increasing the assessments, • A listing of parcels in each Zone and their maximum assessment amounts.

2.3 Provide a draft report for review by City staff and legal counsel, and incorporate one set of consolidated comments into the Engineer’s Report as appropriate.

2.4 Create and provide staff reports and Resolutions for Council meetings.

2.5 Present Preliminary Engineer’s Report, if requested, to adopt Resolution of Intention and authorize an assessment ballot procedure. Attendance for this meeting is assumed to be via Zoom or other on-line platform.

OPTIONAL/ALTERNATIVE SERVICES
Phase 3 – Development of Public Outreach Strategy

3.1 Harris will assist City Staff in the development of key messages for property owners that clearly explain the services provided, financial limitations and the need for additional revenue. The key messages can be woven into communication materials and public outreach efforts.

10.1.c
Packet Pg. 139 Attachment: Exhibit B - Agreement (AD20 and AD22 Assessment Enginereing Services) Ms. Ann James
City of Pleasant Hill
October 11, 2023

1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com Phase 4 – Coordinate Printing and Mailing of Property Owner Notice and Mailed Ballot

4.1 Prepare Preliminary Assessment Roll for mailing.

4.2 Prepare a draft Notice of Public Hearing and Assessment Ballot for review and comment by City staff and legal counsel.

4.3 Printing and mailing of individual notices and assessment ballots to property owners may be performed and coordinated with a mailing house. Costs of using a mailing house is not included in the Cost Estimate and will be invoiced at our cost if chosen. The City may also choose to conduct the mailing in-house.

4.4 Respond to requests for replacement ballots and to answer questions received from property owners during the balloting period.

4.5 Attend the Public Hearing to present Final Engineer’s Report and assist in the tabulation of the assessment ballots received following the close of the Public Hearing. Provide a ballot tabulation spreadsheet to facilitate calculation of the assessments for and opposed to the assessment to determine if a majority protest exists.

RESPONSIBILITIES OF THE CITY

1. Provide financial information and other pertinent data necessary to develop the budgets and prepare the assessment methodology.

2. Provide posting and publishing of all legally required meeting documents.

3. Retain qualified legal counsel to provide legal advice related to the increased assessment.

4. Postage and out of pocket costs for printing of Notices and Property Owner Assessment Ballots.

TENTATIVE SCHEDULE
Harris & Associates is available to begin work immediately. Prior to the start of work, we will schedule a conference call to develop a detailed project schedule with specific milestones. After approval of the Preliminary Engineer’s Reports by the City Council, Harris will coordinate the printing and mailing of the property owner Notices and Assessment Ballots.

10.1.c
Packet Pg. 140 Attachment: Exhibit B - Agreement (AD20 and AD22 Assessment Enginereing Services) Ms. Ann James
City of Pleasant Hill
October 11, 2023

1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com

ESTIMATED FEE
Harris & Associates will provide the above described Scope of Services for the following lump sum fees.

Phase 1 – Evaluate Funding Needs ............................................................................ $15,335.00 Phase 2 – Prepare the Engineer’s Report.. ................................................................ $13,270.00 Total Harris Fee ...................................................................................................... ..$28,605.00

OPTIONAL/ALTERNATIVE SERVICES
Phase 3 – Development of Public Outreach Strategy ..................................................... $2,715.00 Phase 4 – Coordinate Printing/Mailing of Ballots/Attend Public Hearing ..................... $7,990.00 Total Optional/Alternative Services ......................................................................... $10,705.00 Total Cost Estimate ................................................................................ $39,310.00 The fee for printing, postage, and mailing of the Notice and Property Owner Ballots is not included in the lump sum fee above. These fees will be based on the actual cost to produce and mail the final approved documents based on the actual cost to produce and mail the final approved documents, based on, but not limited to, the number pages, printing both sides, the number of colors, the type of envelope, preprinted return envelopes, and return postage. If using a third-party mail house, the third-party mail house will invoice the City directly. If Harris is to cover these costs, a handling fee of 15% will be added to the costs for printing and mailing. Postage must be paid prior to mailing.

Invoices will be submitted once each phase has been completed. Should the City direct the work to stop at any point during the process, an invoice will be submitted for work completed to date. All invoices shall be paid within 30 days of receipt
Additional services will be provided as mutually agreeable based upon Harris’ Hourly Rate Schedule at the time services are provided. Harris’ Hourly Rate Schedule for 2024 is shown below. Our rates will be adjusted by the consumer price index (CPI) on January 1, 2025 and each subsequent January 1st .

10.1.c
Packet Pg. 141 Attachment: Exhibit B - Agreement (AD20 and AD22 Assessment Enginereing Services) Ms. Ann James
City of Pleasant Hill
October 11, 2023

1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com

PROJECT TEAM
Harris & Associates specializes in serving the professional service needs of public agencies. Founded in 1974, Harris has a staff of 200 employee owners that includes financial and assessment engineering specialists and licensed civil engineers. We understand that successful projects have to address the concerns of property owners and taxpayers, be sensitive to the economic climate, and conform to local political realities. Harris team members are experts in special benefit analysis and have extensive knowledge of State codes and funding mechanisms relating to special financing districts, including Article XIIID of the California Constitution (Proposition 218) and related legislation. Team member for this project will include:

Alison Bouley, PE, will serve as the Assessment Engineer and Project Director on the project. Mrs. Bouley is a registered engineer and is Vice President of our Municipal and District Finance team. She has 25 years of experience in managing the programming and financing of infrastructure improvements consulting to cities, counties and special districts throughout the State. She has assisted agencies with the analysis of special benefit from various types of improvements, in accordance with the requirements of Article XIII D of the California State Constitution (Proposition 218). She will be in “responsible charge” as required by Section 4(b) of Article XIIID of the State Constitution, which requires that “all assessments be supported by a detailed engineer’s report prepared by a registered professional engineer certified by the State of California.” Ultimately, Mrs. Bouley will serve as the licensed professional who will oversee authorship of and sign the Engineer’s Report.

Rick Clark will serve as the Project Manager for this project. He has more than 28 years of experience in public finance and in-depth knowledge of Proposition 218. He has also been working with the City’s Districts for the past four years. Rick has comprehensive experience in special district formation, developing funding strategies to meet public agencies’ and constituents’ needs, and implementing those strategies. As project manager, Rick will have responsibility for the development and review of deliverables. He will coordinate project team activities, participate in key meetings and calls, and manage the project schedule and budget.

Title 2024 Billing
Rate
Vice President $285.00
Director $270.00
Senior Consultant $270.00
Project Manager $200.00
Senior Analyst $170.00
Analyst $140.00

10.1.c
Packet Pg. 142 Attachment: Exhibit B - Agreement (AD20 and AD22 Assessment Enginereing Services) Ms. Ann James
City of Pleasant Hill
October 11, 2023

1401 Willow Pass Road, Suite 500, Concord, CA 94520  p: 925.827.4900  f: 866.356.0998  www.WeAreHarris.com • Principal-in-Charge – Donna Segura is a Director of in our Municipal and District Finance team and leads the district formation and administration team. She has over 23 years of special district formation and administration experience consulting to cities, counties and special districts throughout the State of California. She has assisted agencies with the analysis of special benefit from various types of improvements, in accordance with the requirements of Article XIIID of the California State Constitution (Proposition 218). She has also performed formation and annual administration services for Mello-Roos Community Facilities Districts, and various other fee and special tax districts Dennis Anderson, will serve as a Technical Advisor on the project. He has over 30 years of financial engineering experience consulting to cities, counties and special districts throughout the State of California. Dennis has assisted agencies with feasibility studies and the analysis of special benefit or approximate use from various types of improvements in accordance with the requirements of Article XIIID of the California State Constitution (Proposition 218) and the various fee, assessment and special tax acts within the State Codes. He has prepared Engineer’s Reports and Special Tax Rate and Method of Apportionments, Boundary Maps and Assessment Diagrams, staff reports, and resolutions, and has assisted with presentations to agency boards and property owners, the preparation and mailing of notices and ballots, and ballot tabulation. He has also managed the annual administration of both bonded and maintenance districts, including facility acquisition and reimbursement. Early in his career, Dennis was an employee for 2 adjacent sanitary sewer districts in San Diego County which shared staff.

In addition to preparing public notices related to sewer charges, he was responsible for calculating connection charges, issuing sewer connection permits, preparing conditions of approval for new development, calculating annual sewer charges, placing charges on the annual property tax bills for collection, and responding to inquiries related to the sewer ordinances.

The Harris project team shown above will be supported by additional members of Harris’ public finance group as needed.

We are looking forward to working with you on this important project. If you have any questions regarding this proposal, we are pleased to discuss them at your convenience. As the project manager for this engagement, you may contact me at (949) 536-2526 or via email at [email protected].

Sincerely,
Harris & Associates Harris & Associates
Rick Clark, Project Manager Alison Bouley, P.E. Vice President Municipal + District Finance Municipal + District Finance

10.1.c
Packet Pg. 143 Attachment: Exhibit B - Agreement (AD20 and AD22 Assessment Enginereing Services)

CITY COUNCIL STAFF REPORT
Meeting Date: February 26, 2024
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: ACCEPT THE AUDITED ANNUAL COMPREHENSIVE FINANCIAL

REPORT, MEASURE K FUND REPORT, AND THE MANAGEMENT
LETTER FOR THE FISCAL YEAR ENDED JUNE 30, 2023

SYNOPSIS
The Budget Committee reviewed the Annual Comprehensive Financial Report, Measure K Fund Report, and the Management Letter as of June 30, 2023, on February 14, 2024, and recommends that the City Council receive and accept the report, as presented.

DISCUSSION
Background
The City’s fiscal year operates from July 1 through June 30. The Annual Comprehensive Financial Report (ACFR) summarizes the City’s financial activities and fund balances as of June 30, 2023.

Analysis
The Annual Comprehensive Annual Financial Report (ACFR) summarizes the City’s financial activities for fiscal year (FY) 2022/2023 and fund balances as of June 30, 2023. The ACFR was prepared in accordance with generally accepted accounting principles (GAAP) as promulgated by the Governmental Accounting Standards Board (GASB). The financial statements contained within the ACFR were audited by Macias, Gini & O’Connell LLP (MGO), the City’s independent Certified Public Accountant, which issued an unmodified opinion - the highest possible rating.

The ACFR for FY 2022/2023 is attached for the City Council to review and consideration for acceptance. The ACFR provides extensive and detailed financial information for the City during the fiscal year, but a summary financial analysis can be found in the transmittal letter (ACFR pp. iiii) and management’s discussion and analysis (ACFR pp. 5-16) sections.

MGO also prepares the Management Letter to the City Council. This report provides the auditors with an opportunity to determine any audit issues and/or areas needing improvement. In summary, the auditors had no material audit issues, findings, or disagreements with the City.

10.2 Packet Pg. 144
Finally, the Pleasant Hill Transactions and Use Tax (Measure K) Ordinance requires that an independent auditor complete an annual report on the funds collected and expended. Similar to the ACFR, the auditors have an unmodified opinion on the Measure K Fund Report, which is the highest possible rating.

FISCAL IMPACT
None

PUBLIC CONTACT
Public contact was made through posting of the City Council agenda on the City’s official notice bulletin board, at the Pleasant Hill Senior Center, and at the Pleasant Hill Police Department.

The agenda and staff report are posted on the City’s web page.

RECOMMENDED CITY COUNCIL ACTION
Accept the City of Pleasant Hill’s Annual Comprehensive Financial Report, Measure K Fund Report, and Management Letter for the fiscal year ended June 30, 2023, as recommended by the Budget Committee.

ALTERNATIVES TO RECOMMENDED ACTION
Do not accept the City of Pleasant Hill’s Annual Comprehensive Financial Report, Measure K Fund Report, and Management Letter for the fiscal year ended June 30, 2023, and provide direction to staff.

ATTACHMENT(S):

1. Annual Comprehensive Financial Report (ACFR) for June 30, 2023

2. Management Letter to the City of Pleasant Hill for June 30, 2023

3. Measure K Fund Report for June 30, 2023
Prepared by: Erick Cheung, Finance Manager
Approved by: Ethan Bindernagel, City Manager

10.2 Packet Pg. 145

10.2.a
Packet Pg. 146 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

10.2.a
Packet Pg. 147 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL

ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDED JUNE 30, 2023
Prepared by

FINANCE DIVISION

10.2.a
Packet Pg. 148 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

10.2.a
Packet Pg. 149 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Annual Comprehensive Financial Report
Year Ended June 30, 2023
Table of Contents
Page

INTRODUCTORY SECTION
Letter of Transmittal ............................................................................................................................................. i List of Principal Officials .................................................................................................................................... iv California Map ..................................................................................................................................................... v Organization Chart .............................................................................................................................................. vi GFOA Certificate of Achievement for Excellence in Financial Reporting ..................................................... vii

FINANCIAL SECTION
Independent Auditor’s Report ......................................................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information - Unaudited) .............. 5 Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Position ................................................................................................................. 17 Statement of Activities ..................................................................................................................... 18 Fund Financial Statements:

Governmental Funds:

Balance Sheet ................................................................................................................................... 19 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position - Governmental Activities ................................................................. 20 Statement of Revenues, Expenditures and Changes in Fund Balances ............................................ 21 Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities - Governmental Activities ............................................................................................................. 22 Statement of Revenues, Expenditures and Changes in Fund Balance – Budget and Actual:

General Fund ............................................................................................................................... 23 Traffic Mitigation Fund ............................................................................................................... 24 Measure J Growth Management Fund ........................................................................................ 25 Gas Tax Fund .............................................................................................................................. 26 American Rescue Plan Act Fund ................................................................................................. 27 Proprietary Fund:

Statement of Fund Net Position ........................................................................................................ 28 Statement of Revenues, Expenses and Changes in Fund Net Position ............................................. 29 Statement of Cash Flows .................................................................................................................. 30 Fiduciary Funds:

Statement of Fiduciary Net Position ................................................................................................. 31 Statement of Changes in Fiduciary Net Position .............................................................................. 32 Notes to Basic Financial Statements ...................................................................................................... 33

10.2.a
Packet Pg. 150 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Annual Comprehensive Financial Report
Year Ended June 30, 2023
Table of Contents
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):

Schedule of City’s Proportionate Share of the Net Pension Liability ......................................................... 63 Schedule of City Contributions .................................................................................................................... 64 Other Supplementary Information:

Nonmajor Governmental Funds:

Combining Balance Sheet ................................................................................................................ 68 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ......................... 72 Schedules of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual .......... 76 Custodial Funds:

Combining Statement of Fiduciary Net Position .............................................................................. 86 Combining Statement of Changes in Fiduciary Net Position ........................................................... 87

STATISTICAL SECTION
Financial Trends:

Net Position by Component – Last Ten Fiscal Years .................................................................................. 90 Changes in Net Position – Last Ten Fiscal Years ........................................................................................ 91 Fund Balances of Governmental Funds – Last Ten Fiscal Years ............................................................... 93 Changes in Fund Balances of Governmental Funds – Last Ten Fiscal Years ............................................ 94 Revenue Capacity:

Assessed and Estimated Actual Net Value of Taxable Property – Last Ten Fiscal Years ......................... 95 Property Tax Rates – All Direct and Overlapping Governments – Last Ten Fiscal Years ........................ 96 Principal Property Taxpayers – Current Year and Ten Years Ago ............................................................. 97 Property Tax Levies and Collections – Last Ten Fiscal Years ................................................................... 98 Debt Capacity:

Ratio of Outstanding Debt by Type – Last Ten Fiscal Years ..................................................................... 99 Computation of Direct and Overlapping Debt .......................................................................................... 100 Computation of Legal Bonded Debt Margin – Last Ten Fiscal Years ..................................................... 101 Demographic and Economic Information:

Demographic Statistics – Last Ten Calendar Years .................................................................................. 102 Top 25 Sales Tax Producers – Current Year and Nine Years Ago ........................................................... 103 Sales by Categories – Last Ten Calendar Years ........................................................................................ 104 Operating Information:

Full-Time Equivalent City Government Employees by Function – Last Ten Fiscal Years ..................... 105 Operating Indicators by Function/Program – Last Ten Fiscal Years ........................................................ 106 Capital Asset Statistics by Function/Program – Last Ten Fiscal Years .................................................... 107

10.2.a
Packet Pg. 151 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) i
January 29, 2024
To the City Council and Residents of Pleasant Hill
I am pleased to submit the City of Pleasant Hill’s (City) Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023. The ACFR, which contains the City’s basic financial statements, auditor’s report, and important supplemental information, is intended to present the reader with a comprehensive view of the City’s financial position and activities.

The ACFR was prepared by the City’s Finance Division, which assumes responsibility for its accuracy, completeness, and fairness. The City’s financial statements were audited by Macias Gini & O’Connell LLP, the City’s independent certified public accountant, in order to provide reasonable assurance that the financial statements are free of material misstatement and are fairly presented in accordance with accounting principles generally accepted in the United States of America (GAAP). Macias Gini & O’Connell LLP issued an unmodified opinion, the highest possible rating, for the fiscal year ending June 30, 2023.

The Management’s Discussion and Analysis (MD&A) section of the ACFR provides an overview of the City’s fiscal position and activities. The MD&A complements this transmittal letter and should be read in conjunction with it.

City of Pleasant Hill Government
Pleasant Hill is a general law city incorporated in 1961. It delivers a range of municipal services under the council-manager form of government, and offers outstanding quality of life to its approximately 33,400 residents across 8.1 square miles.

City Council
The City Council consists of five members who are elected at large to staggered four-year terms.

Beginning in November 2024, the City Council will transition from at-large to district-based elections, which was approved by City Council in March 2023. The City Treasurer was an elected position, but beginning December 2024, the City Manager will appoint this public official. The Mayor and Vice-Mayor are elected by the Council from its own ranks and serve one-year terms.

The City Council appoints the City Manager and City Attorney. The City Attorney is a contracted position.

Budget Committee
While retaining authority to approve all actions, the City Council has established a Budget Committee to review and oversee financial matters. Staff provides the Budget Committee and City Council with reports such as the ACFR, Long-Term Financial Plan, and quarterly budget-versusactual results that are utilized in evaluating the City’s financial position.

10.2.a
Packet Pg. 152 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) ii
Economic Conditions and Budget Challenges
The local and regional condition of the economy have significant influence on the City’s financial position. During the Fiscal Year 2022/2023 (FY 22/23), the City continued to deal with the impacts of the COVID-19 pandemic, from supply chain issues to changing health recommendations, as restrictions returned to pre-COVID-19 pandemic levels. In March 2020, the City Council adopted a resolution regarding the existence of a local emergency due to the COVID-19 pandemic. Based on information from the State and the County, the City ended the local emergency on February 27, 2023. While the local emergency may have ended, the economic recovery from COVID-19 continued to grow for the first half of the fiscal year and then leveled off. Inflation was a serious concern for the Federal Reserve, which raised rates 11 times beginning March 2022 from nearly 0% to 5.25% in July 2023. The intent by the Federal Reserve is to bring inflation back toward its 2% inflation target, which was 3.1% in November 2023 as compared to 9.1% in June 2022. Higher interest rates may address inflation, but could have negative impacts to the economy such as jobs and the housing market. This could affect the City’s economically sensitive revenues, such as Sales Tax and Transient Occupancy Tax (TOT). Sales tax revenue has been at historical highs over the last couple of years due to the demand for goods and automobiles, but higher prices due to inflation and rising interest rates did level off this growth during the fiscal year. TOT recovery remains slow and still below pre-COVID-19 levels, travel demand could be affected by negative impacts to jobs and rising costs. Finally, higher interest rates will make housing affordability more difficult and may result in fewer homes being sold.

The federal government approved the American Rescue Plan Act (ARPA) in March 2021 for $350 billion to address the economic impact of the COVID-19 pandemic. The United States Treasury provided $1.2 billion to the State of California for distribution among smaller cities, which was allocated based on population. The City received $8.3 million in ARPA funds to help the City recover from COVID-19. These funds must be obligated by December 31, 2024, and spent by December 31, 2026. The City Council has allocated the ARPA funds and spent approximately $3.9 million through FY 22/23 towards local business improvement from the PERKS program and grant assistance; storm drain infrastructure improvements; public safety services and equipment, from crossing guards and the CORE program to police radio equipment; and additional library hours for the public. The City Council has approved some of these programs for an additional year, such as crossing guards, library hours and the CORE program, while funding previously unfunded projects, such as replacement of the underground storage tank at the police department.

The City has prudently maintained or reduced costs whenever possible, but personnel costs continue to be a significant share of the City’s total expenditures. The City’s required contribution toward its CalPERS unfunded liability will continue to increase rapidly over the next few years despite the City’s best efforts on cost containment. The City will continue to work with experts in this area to analyze the City’s options for reducing the lifecycle net cost and volatility of required contributions. The City implemented one of the recommendations made by an independent actuarial firm and deposited $1 million into a Pension Trust Fund in the prior fiscal year. The City Council also approved an additional contribution of $0.1 million into the Pension Trust Fund in December 2023. The Pension Trust Fund is an investment tool to offset future pension costs and is under the direction of the City. Unlike many municipalities, the City does not provide postretirement health care, and therefore has no liability costs nor contributions to record.

10.2.a
Packet Pg. 153 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) iii
Addressing critical capital asset and infrastructure needs continues to be a top priority. The City’s Capital Improvement Plan (CIP) for FY 2022-2027 illustrates the City’s infrastructure needs, and proposes a plan for making infrastructure investments. Pleasant Hill residents recognized the need for additional local funding for capital improvements, and supported the Measure K sales tax increase in November 2016. Measure K is currently projected to generate in excess of $5.0 million annually. The funds can be used for important City services including repaving and maintaining neighborhood streets; maintaining and upgrading the City’s storm drains; adding new sidewalks and walking and bike paths; constructing a new community library; and funding other City projects and services that Pleasant Hill residents and the City Council have identified as key priorities. The City achieved one of the major objectives with the opening of the new City Library on July 30, 2022. The City Council was cautious during COVID-19 pandemic and reduced allocations of Measure K funds towards projects and programs due to the potential affect to sales tax revenues in previous years. This resulted in additional Measure K funds, as sales tax revenues actually grew due to online purchases and auto sales. The City Council authorized $1.9 million in additional projects for FY 22/23 such as Oak Park Sidewalk Gap Closure ($0.8 million) and Zone 17 Street Resurfacing ($1.0 million), and setting up a debt service reserve for $2.5 million.

Biennial Budget
During FY 21/22, the City adopted the biennial budget for FY 22/23 – FY 23/24. The goal was to create a realistic plan that addresses major revenue and expenditure issues while reflecting the priorities of the City Council and community.

Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded the City a Certificate of Achievement for Excellence in Financial Reporting for the fiscal year ending June 30, 2022. The City has received this award for the past 31 years. To receive the award, a jurisdiction must publish an easily readable and efficiently organized ACFR that satisfies GAAP and applicable legal requirements. Staff believes that the ACFR for the fiscal year ended June 30, 2023, again meets the Certificate of Achievement Program’s requirements, and will submit it to the GFOA for consideration.

Acknowledgments
This ACFR is the result of the combined efforts of the City’s Finance Division, other City departments, and Macias Gini & O’Connell LLP. Acknowledgment should also be given to the City Council Budget Committee for its thoughtful, prudent guidance and direction on the financial affairs of the City.

Respectfully submitted,
Ethan Bindernagel Erick Cheung
City Manager Finance Manager

10.2.a
Packet Pg. 154 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) iv

ELECTED OFFICIALS
Timothy M. Flaherty, Mayor
Matthew Rinn, Vice Mayor
Susan Noack, Councilmember
Zac Shess, Councilmember
Allen Vinson, Councilmember
Andrew Kalinowski, City Treasurer (Appointed)

CITY STAFF
Ethan Bindernagel, City Manager
June Catalano, City Manager (retired)
Janet Coleson, City Attorney
Scott Vermillion, Chief of Police
Zach Seal, Economic Development Manager
Troy Fujimoto, City Planner
Geoff Gillette, Public Information Officer
Juanita Davalos, Acting City Clerk
Ann James, Public Works Manager
Ling King, Chief Technology Officer
Erick Cheung, Finance Manager
Ericka Mitchell, Chief Human Resources Officer
Ananthan Kanagasundaram, City Engineer
Geoffrey Simmons, Chief Building Official

10.2.a
Packet Pg. 155 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
v
California Map

10.2.a
Packet Pg. 156 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) vi

CITY OF PLEASANT HILL
Organization Chart

10.2.a
Packet Pg. 157
Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report vii

10.2.a
Packet Pg. 158 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) viii
This page is left intentionally blank.

10.2.a
Packet Pg. 159 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N California Blvd. Suite 750
Walnut Creek, CA 94596
1 Independent Auditor’s Report
Honorable Mayor and Members
of the City Council
City of Pleasant Hill, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Pleasant Hill, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof and for the respective budgetary comparison for the General Fund, Traffic Mitigation Fund, Measure J Growth Management Fund, Gas Tax Fund, and American Rescue Plan Act Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a

10.2.a
Packet Pg. 160 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) 2 guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, the schedule of City’s proportionate share of the net pension liability, and the schedule of City contributions, as listed in the table of contents, be presented to supplement the basic financial statements.

Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.

We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the individual and

10.2.a
Packet Pg. 161 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) 3 combining fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Information
Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 29, 2024, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Walnut Creek, California
January 29, 2024

10.2.a
Packet Pg. 162 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) 4 This page is left intentionally blank.

10.2.a
Packet Pg. 163 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
5 The Management’s Discussion and Analysis (MD&A) section of the Annual Comprehensive Financial Report (ACFR) provides City management’s summary of the financial statements and assessment of the City’s financial condition.

Financial Highlights
 The City’s total net position (assets and deferred outflows of resources less liabilities and deferred inflows of resources) was $77.2 million as of June 30, 2023, compared to $64.9 million as of June 30, 2022.  The City’s General Fund reported an ending fund balance of $18.2 million, approximately $14.8 million of which was assigned, $0.5 million of which was restricted, and $2.9 million was unassigned.  The City’s General Fund ending fund balance decreased $3.9 million, mainly due to the expected capital costs of $4.2 million for the completed library.

Overview of the Annual Comprehensive Financial Report
This Annual Comprehensive Financial Report is organized into five sections:
 An Introduction, which includes the Transmittal Letter;  Management’s Discussion and Analysis;
 Basic Financial Statements and Notes;
 Supplemental information; and
 Statistical information.

Basic Financial Statements
The Basic Financial Statements summarize the City’s activities and financial position. They contain the Government-Wide Financial Statements, Fund Financial Statements, and Notes to these financial statements.

Government-Wide Financial Statements
The Government-Wide Financial Statements provide an overview of the City’s complete financial activities. They include the Statement of Net Position and the Statement of Activities.

The Statement of Net Position reports the City’s capital assets and long-term liabilities on a full accrual basis of accounting similar to that used by private-sector businesses in their balance sheets. Over time, changes in net position may serve as an indication of whether the City’s financial position is improving or deteriorating.

The Statement of Activities provides information about the City’s revenues and expenses on a full accrual basis, similar to that used by private-sector businesses in their income statements, with an emphasis on measuring net revenues or expenses for each of the City’s functions. The Statement of Activities explains in detail the change in net position for the year.

The amounts in the Statement of Net Position and the Statement of Activities are separated into Governmental and Business-Type Activities, as follows:
 Governmental Activities - Governmental activities include all of the City’s basic services: general government, public safety, transportation, and community development. These services are supported by the City’s general revenues, such as taxes, and by specific program revenues, such as fees.  Business-Type Activities - The City’s only enterprise activity, Diablo Vista Water, is reported as a business-type activity. The activity is supported by fees and assessments paid by the users.

The Government-Wide Financial Statements can be found on pages 17-18 of this report.

10.2.a
Packet Pg. 164 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
6 Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that are intended for specific activities or objectives. A fund is an independent accounting entity with a self-balancing set of accounts.

The City uses fund accounting to ensure compliance with finance-related legal requirements. The Fund Financial Statements provide detailed information about each of the City’s most significant funds, called major funds. All non-major funds are combined into a single column on each fund statement. The General Fund is always considered a major fund. The other funds that the City considers major funds may change from year to year based on City activities.

The Fund Financial Statements display the City’s operations in more detail than the Government-Wide Financial Statements. There are three main types of funds in governmental accounting: governmental funds, proprietary funds, and fiduciary funds, defined below.
 Governmental funds: These are the funds that support most governmental functions. The fund types in this category include general, special revenue, debt service, and capital project funds.  Proprietary funds: These funds are used to account for a government’s ongoing activities that are similar to those found in the private sector. This fund type includes Diablo Vista Water.  Fiduciary funds: These funds are used to account for assets held by a governmental unit in a trustee capacity or as a custodian for individuals, private organizations, or other government agencies.

Governmental Funds
Governmental Fund Financial Statements are prepared on the modified accrual basis of accounting, which means they measure only current financial resources and uses. Long-lived assets, such as capital assets, and long-term liabilities, such as pension and compensated absences, are only presented in the Government-Wide Financial Statements.

Because the focus of governmental funds is narrower than that of Government-Wide Financial Statements, it is useful to compare the two. Reconciliation between the Governmental Fund Balance Sheet and the Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances facilitates this analysis.

The City normally adopts a biennial budget on or before June 30 of even-numbered years for each of the ensuing two fiscal years. The Budgetary Comparison Statements are provided to demonstrate performance against budget.

The Governmental Fund Financial Statements and Budgetary Comparison Statements can be found on pages 19- 27 of this report.

Proprietary Funds
Proprietary Funds are prepared on the full accrual basis of accounting. These statements include all of their assets and liabilities, both current and long-term.

The Proprietary Fund Financial Statements can be found on pages 28-30 of this report.

Fiduciary Funds
Fiduciary Funds are used to account for resources held for the benefit of parties outside of the City. They are not reported in the Government-Wide Financial Statements because the resources of those funds are not available to support the City’s own programs.

10.2.a
Packet Pg. 165 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
7 The City has two different types of fiduciary funds: a Private-Purpose Trust Fund is used to report trusts or similar arrangements that benefit other entities, and a Custodial Fund is used to report resources held in a custodial capacity for other public entities.

The Fiduciary Fund Financial Statements can be found on pages 31-32 of this report.

Notes to the Financial Statements
The Notes to the financial statements provide additional information that is necessary to acquire a full understanding of the data provided in the Government-Wide and Fund Financial Statements. The Notes to the financial statements can be found on pages 33-63 of this report.

Required Supplementary Information (RSI)
RSI is presented in addition to the basic financial statements and accompanying notes. This required information includes the schedule of City’s proportionate share of the net pension liability and the schedule of City contributions. The RSI can be found on pages 65-66 of this report.

Other Supplementary Information
The combining statements referred to earlier in connection with non-major Governmental Funds are presented immediately following the Notes to the financial statements. Combining statements and schedules can be found on pages 67-89 of this report.

Financial Analysis of Government-Wide Financial Statements The City’s total assets and deferred outflows of resources in governmental activities exceeded its liabilities and deferred outflows of resources by $75.7 million at the end of the fiscal year (“FY”), an increase in net position of $12.1 million.

Condensed Governmental Activities Net Position at June 30 ($ in Millions) 2023 2022
Cash and investments 40.6 $ 40.1 $
Other assets 8.4 8.1
Capital assets 93.3 90.9
Total assets 142.3 139.1
Deferred outflows of resources - pension items 22.7 10.2 Net pension liabilities 52.1 29.0
Long-term debt 18.5 22.8
Other liabilities 13.6 10.4
Total liabilities 84.2 62.2
Deferred inflows of resources - pension items 5.1 23.5
Net position:

Net investment in capital assets 73.1 72.3
Restricted 16.5 13.7
Unrestricted (13.9) (22.4)
Total net position 75.7 $ 63.6 $

10.2.a
Packet Pg. 166 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
8 The largest portion of the City’s net position is its net investment in capital assets such as buildings, infrastructure (e.g., streets), and vehicles, less any related debt used to acquire those assets. The City uses these assets to provide services to citizens. This amount is reported separately because it cannot easily be liquidated to pay liabilities.

The restricted portion of the City’s net position represents resources that are subject to external restrictions on how they are used.

The Statement of Net Position for Government-Wide Statements includes three pension-related balances: net pension liability, deferred outflows of resources, and deferred inflows of resources. Further details for the employee benefits can be found in Note 10 to the basic financial statements.

Cash and investments increased by $0.5 million in FY 22/23 due to investment earnings of $0.8 million and receiving $4.2 million in American Rescue Plan Act (ARPA) funds. This was offset by the construction of the new library for $4.2 million.

Net pension liabilities increased by $23.1 million to $52.1 million and deferred outflows of resources for pension items increased by $12.5 million to $22.7 million in FY 22/23, due to investment losses by CalPERS in FY 21/22.

CalPERS always reports financial information a year behind, so the impact of FY 21/22 investment returns of -6.1% are included in the City’s current year financial reports. The assumed rate of return by CalPERS is 6.9%, therefore the lower investment return results in higher pension liability and higher deferred pension costs. It is important to note, CalPERS has disclosed its preliminary investment return is 5.8% for FY 22/23.

Governmental Activities
The table below shows that Governmental Activities net position increased by $12.1 million in FY 22/23.

Changes in Governmental Activities Net Position ($ in Millions) 2023 2022
Expenses
General government 5.3 $ 13.2 $
Public safety 11.2 13.8
Transportation 14.4 9.0
Community development 2.4 2.8
Interest and fiscal charges 0.4 0.4
Total expenses 39.2 33.7
Revenue
Program revenues:

Charges for services 5.5 3.1
Operating contributions and grants 5.3 4.6
Capital contributions and grants 0.1 0.2
Subtotal program revenues 7.9 10.9
General revenues:

Property taxes 9.4 8.7
Sales taxes 11.0 11.0
Measure K transactions and use tax 5.5 5.3
Transient occupancy tax 2.2 2.2
Other taxes 5.9 6.4
Investment earnings 0.8 (0.5)
Miscellaneous 0.1 0.1
Subtotal general revenues 33.2 34.9
Total revenues 41.1 45.8
Changes in net position 1.9 12.1
Net position, beginning 63.6 61.7
Net Position, ending 75.7 $ 63.6 $

10.2.a
Packet Pg. 167 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
9 Revenue Highlights
Total governmental revenues increased by $4.7 million to $45.8 million in FY 22/23.

Program Revenues
Program revenues increased by $3.0 million. The increase is primarily due to the City using $2.8 million in ARPA funds in FY 22/23 for various programs and projects (see additional information on ARPA at page 14 of this report). Grant revenues and contributions from other agencies typically vary year over year depending upon the stage of projects underway during the year.

General Revenues
Property taxes increased by $0.7 million due to higher assessed valuations on residential properties that have changed ownership.

Sales tax and Measure K transactions use tax revenues increased by $0.2 million to $16.5 million in FY 22/23.

The increase was due to both strong online sales (resulting in a larger pool allocation) and auto sales for the first six months of the fiscal year that started to level off the second half of the year.

Transient occupancy tax is similar to the prior year at $2.2 million, as both business and personal travel are slow to return to pre-COVID-19 levels.

Expense Highlights
Expenses are classified by governmental function. Total expenses for governmental activities were $33.7 million, which was $5.5 million less than the prior year. Major reasons for the net overall changes are explained below.

General government and public safety expenses decreased from the prior year due to accounting for deferred pension expenses in the current year for -$2.3 million and was $10.0 million in the prior year. The pension expense mainly affects these two functions since this is where most City personnel are accounted for. This will vary annually pending on CalPERS investment returns (21.3% in prior year and -6.1% current year) and/or assumption changes, since these factors can have a significant impact on future pension contributions. Transportation expenses were higher by $5.4 million due to the composition and timing of projects, especially as some projects were delayed due to COVID-19 in previous years. Most of the transportation expenses incurred are primarily in the Gas Tax Fund.

The following table presents the net expense of each of the City’s governmental activities. Net expense is defined as total program cost over the revenue generated by the program through charges for services, grants, and contributions.

Net Expenses of Governmental Activities ($ in Millions) 2023 2022
General government (1.8) $ (11.9) $
Public safety (10.9) (13.4)
Transportation (9.8) (5.1)
Community development 0.3 (0.4)
Interest and fiscal charges (0.4) (0.4)
Total $ (31.2) (22.6) $

10.2.a
Packet Pg. 168 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
10 Overall, program revenues collected are significantly lower than the program expenses. Consequently, the City is very dependent upon general revenues, particularly property and sales taxes. In April 2022, the City Council adopted by resolution an updated General Fund reserve policy that kept the $5 million Reserve for Working Capital and modified the $5 million Budget Stabilization Reserve. The Budget Stabilization Reserve is $4 million with $1 million going to the Pension Rate Stabilization Reserve. The $1 million was deposited into a Section 115 Pension Trust to help the City address pension costs as interest income is earned over time. This contingency reserve is available for working capital needs and to mitigate the impacts of an economic downturn or unplanned major expenditure.

Business-Type Activities
The Statement of Net Position and Statement of Activities present a summary of the City’s Business-Type Activities, which only comprises the City’s Diablo Vista Water Enterprise Fund. The City spent $0.6 million in water system infrastructure additions in FY 22/23.

Condensed Business-Type Activity Net Position ($ in Millions) 2023 2022
Cash and investments 0.5 $ 0.9 $
Capital assets 1.0 0.4
Total assets 1.5 1.3
Net position:

Net investment in capital assets 1.0 0.4
Unrestricted 0.5 0.9
Total net position 1.5 $ 1.3 $
The net position of the business-type activity was $1.5 million at June 30, 2023, which consisted of a $1.0 million investment in capital assets and $0.5 million of unrestricted net position. The overall net position is $0.2 million higher than the prior fiscal year.

Changes in Business-type Activity Net Position ($ in Millions) 2023 2022
Expenses
Diablo Vista Water 0.3 $ 0.3 $
Revenue
Program revenues:

Charges for services 0.2 0.1
General revenues 0.3 0.3
Total revenues 0.4 0.5
Changes in net position 0.1 0.2
Beginning net position 1.3 1.2
Ending net position 1.5 $ 1.3 $

10.2.a
Packet Pg. 169 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
11 Financial Analysis of Governmental Funds
As discussed earlier, the City uses governmental fund accounting to ensure compliance with finance-related legal requirements.

Governmental Funds
The City’s Governmental Funds Statement provides information on short term inflows, outflows and the balance of spendable resources. Unassigned fund balance illustrates the City’s net resources available for discretionary use.

As of June 30, 2023, the City’s governmental funds reported a combined fund balance of $38.2 million.

Approximately $3.0 million of the combined total fund balance is unassigned and available for spending at the City’s discretion. The remainder of the fund balance is either restricted ($15.3 million), committed ($1.7 million), or assigned ($18.2 million). The restricted portion includes $0.5 million from remaining loan proceeds for the library project in the General Fund, $5.2 million for Low and Moderate Income Housing Funds, and $4.9 million related to street improvements with Measure J and Gas Tax Funds. The assigned portion includes approximately $0.8 million for General Fund encumbrances, with $3.9 million related to Measure K programs and projects, $3.5 million for various capital projects, and $10.0 million for contingencies associated with cash flow, pension stabilization, economic uncertainty or catastrophic events.

General Fund
Balance Sheet
The General Fund is the primary operating fund of the City. At the end of FY 22/23, the fund balance for the General Fund was $18.2 million, compared to $22.1 million in the prior year. The $3.9 million decrease was due to capital outlay costs of $4.2 million for the construction of the completed library. This project was financed when the City entered into a lease financing private placement loan transaction with the Bank of Montreal (formerly Bank of the West) for $26.4 million.

Revenues
Total General Fund revenues, excluding other financing sources, increased by $1.4 million over FY 21/22 for a total of $36.3 million for FY 22/23. The year-over-year change in revenue sources is noted below.

General Fund Revenues for the Year Ended June 30 ($ in Millions) 2023 2022 Incr./(Decr.)
Revenues by Sources:

Property Tax 8.7 $ 8.0 $ 0.7 $
Sales Tax 10.9 11.4 (0.5)
Measure K Transaction & Use Tax 5.5 5.3 0.2
Transient Occupancy Tax 2.2 2.2 -
Other Taxes 5.9 6.2 (0.3)
Licenses and Permits 1.7 1.4 0.3
Intergovernmental 0.1 0.3 (0.2)
Charges for Services 0.6 0.5 0.1
Use of Money and Property 0.5 (0.5) 1.0
Other 0.2 0.1 0.1
Total Revenues $ 34.9 36.3 $ 1.4 $

10.2.a
Packet Pg. 170 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
12 Property taxes increased by $0.7 million year-over-year to $8.7 million. The increase was primarily due to higher assessed valuations on residential properties that have changed ownership.

Sales tax revenues and Measure K transactions and use tax for the fiscal year leveled off from the previous year for a combined $16.4 million compared to $16.7 million in the previous year. The City continued to see improving sales tax growth in the first six months from strong auto sales and additional taxes from marketplace facilitators from online sales, which led to a larger pool allocation. This leveled off as concerns of inflation and rising interest rates tempered sales tax revenues in the second half the fiscal year.

Transient Occupancy Tax (TOT) revenues was heavily impacted by the COVID-19 pandemic due to less travel for personal and business purposes. TOT revenues have recovered slowly but have not returned to pre-COVID19 levels. The revenues were $2.2 million in FY 22/23 and FY 21/22.

Use of Money and Property increased $1.0 million due to rising interest rates and adjusting for the prior year negative fair value adjustment. This adjustment resulted from the requirement by the Governmental Accounting Standard Board Statement No. 31 (GASB 31), to record the fair value of investments at June 30. The intent of GASB 31 was to reflect the resale value of the City’s investments at a point in time. The GASB 31 unrealized investment loss in the prior year was $0.6 million due to rising interest rates. In general, the City holds investments to maturity and the fair value adjustment has no impact to ongoing operations but is required to be reported.

Further details can be found in Note 3 to the basic financial statements.

Expenditures
Total General Fund expenditures decreased by $9.1 million over the FY 21/22 amount for a total of $34.0 million for FY 22/23. The year-over-year change in significant expenditures by function is noted below.

General Fund Expenditures for the Year Ended June 30 ($ in Millions) 2023 2022 Incr./(Decr.)
Expenditures by Function and Type
General Government 9.7 $ 9.0 $ 0.7 $
Public Safety 12.2 12.3 (0.1)
Transportation 3.5 3.7 (0.2)
Community Development 2.3 2.2 0.1
Capital Outlay 3.8 13.4 (9.6)
Debt Service - Principal 2.1 2.1 -
Debt Service - Interest and
fiscal charges 0.4 0.4 -
Total Expenditures $ 43.1 34.0 $ (9.1) $
The lower capital outlay expenditures of $3.8 million were mainly due to the completion of the library project.

General government is higher due to higher pension costs and facilities expense since the library is now operational. Public safety, Transportation, and Community Development were similar to the previous year. FY 22/23 is the second year of debt service on the lease financing the private placement loan for $2.5 million.

10.2.a
Packet Pg. 171 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
13 Other Financing Sources (Uses)
General Fund Other Financing Sources (Uses) for the Year Ended June 30 ($ in Millions) 2023 2022 Incr./(Decr.)
Other Financing Sources (Uses)
Transfers In 0.6 $ 0.7 $ (0.1) $
Transfers Out (6.7) (3.4) (3.3)
Total Other Financing Sources (Uses) $ (2.7) (6.1) $ (3.4) $ During FY 22/23, the City transferred $6.7 million out of General Fund, whereas $3.4 million was transferred during the prior year. Transfers to other funds were $3.3 million higher than prior year due to available Measure K sales tax revenues: a) General Fund transfers to the Gas Tax fund increased by $2.9 million to $4.4 million; b) General Fund transfers to the NPDES fund increased by $0.4 million to $0.5 million. The transfer of funds fluctuates year-to-year due to the discretionary operating or capital needs among funds as directed by the managing departments.

Traffic Mitigation Fund
The Traffic Mitigation fund accounts for revenues such as grants and fees assessed on new development. Traffic Mitigation funds are primarily used for the enhancement and expansion to the City’s transit, bicycle, and pedestrian facilities. Revenues vary year to year based on the amount of fees collected by the City. During FY 22/23, the fund received charges for services and interest of $0.6 million and transferred $0.5 million to the Gas Tax Fund for capital projects. The fund balance was $0.3 million as of June 30, 2023.

Measure J Growth Management Fund
The Measure J Growth Management fund accounts for resources for transportation improvement and maintenance that are distributed by the Contra Costa Transportation Authority to the City annually from the countywide Measure J program. Measure J is a one-half cent countywide transportation sales tax approved by Contra Costa County voters in 2004 to help generate funding for various transportation improvement and maintenance programs throughout Contra Costa County.

Total revenue and expenditures, including transfers between funds, were $1.8 million and $0.4 million, respectively. It is typical for revenue and expenditures to vary annually due to the timing of projects and reimbursements for grants. The fund balance was $1.4 million as of June 30, 2023.

Gas Tax Fund
The Gas Tax fund accounts for gas taxes apportioned by the State and grants for capital projects. The authorization for the levy and expenditure of gas taxes is codified in the California Streets and Highway Code, Sections 2103- 2107. Gas tax is apportioned to cities based on three factors: vehicle registration, assessed valuation, and population. These funds are restricted to engineering and administrative costs related to street projects. On April 28, 2017, Senate Bill 1 (SB 1) was signed into law by the California Governor. SB 1 imposed additional fuel tax and vehicle fees to supplement funding for roadway maintenance and other transportation needs in the State. A portion of SB 1 is allocated to the City for roadway maintenance or improvement projects.

10.2.a
Packet Pg. 172 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
14 The Gas Tax fund had an excess of revenues over expenditures, including transfers to/from other funds, of $1.3 million during FY 22/23. Grant revenue and gas tax apportionments were $1.7 million, transfers in from other funds were $5.3 million, and expenditures were $5.8 million. During the year, $4.4 million in Measure K funds were transferred in from the General Fund, and $0.5 million was transferred in from Traffic Mitigation Fund.

These funds will be used for the street program and pedestrian and bicycle program. The Gas Tax fund has a fund balance of $6.2 million at June 30, 2023.

Low and Moderate Income Housing Asset Fund
Redevelopment agencies in California were dissolved effective February 1, 2012. Successor agencies and oversight boards oversee the dissolution and the winding down of redevelopment activities. At the City Council meeting on January 9, 2012, the City Council adopted Resolution 3-12 determining it would serve as Successor Agency to the Pleasant Hill Redevelopment Agency, and elected to serve as the Housing Successor Agency, which would retain the housing assets, functions, and powers performed by the former Agency. The City no longer serves as the Successor Agency to the Redevelopment Agency; however, it continues to serve as the Housing Successor Agency. The Housing Successor Agency’s financial data and transactions are reported in the City’s Low and Moderate Income Housing Asset major governmental fund. The Low and Moderate Income Housing Asset Fund had a restricted fund balance of $5.2 million as of June 30, 2023. The fund balance remains consistent from prior years when the housing assets and liabilities were transferred to this fund.

American Rescue Plan Act Fund
The American Rescue Plan Act (ARPA) fund accounts for the resources provided by the federal government to assist with the impacts of COVID-19. ARPA established a State and Local Fiscal Recovery Fund, which provided $130 billion for local governments to enable them to continue to support the public health response and assist with economic recovery. The City received an ARPA allocation for $8.3 million, which is paid in two tranches. The first tranche was received in July 2021 for $4.2 million and the second funding tranche was received in July 2022. Eligible costs must be expended between March 3, 2021 and December 31, 2026, and obligated by December 31, 2024.

The City obligated $8.3 million and spent $3.9 million as of June 30, 2023. In FY 22/23, the City spent approximately $2.8 million in ARPA funds for the following major projects:
a. $0.9 million for the Gregory Garden Storm Drain Project b. $0.7 million for updated radio equipment for the Police Department c. $0.4 million for crossing guards, CORE homeless program and library services d. $0.4 million for the Diablo View Storm Drain Project e. $0.4 million for essential employee retention
Other Governmental Funds
These funds are not presented separately in the basic financial statements, but are individually presented as other supplementary information.

10.2.a
Packet Pg. 173 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
15 Financial Analysis of Enterprise Fund
Diablo Vista Water System Enterprise Fund
The Diablo Vista Water (“DVW”) system provides raw canal water for irrigation purposes to 474 homes. In order to maintain the system, a usage fee of $150 per household per year was adopted by City Council Ordinance No. 786 on June 21, 2004, and took effect in FY 2004/05. An additional Capital Improvements fee of $135 per household per year was also approved, and was phased in over three years, beginning in FY 2004/05. The fees help to provide a financially solvent system. See analysis of the fund in the Business-type Activities analysis above.

General Fund Budgetary Highlights
Revenues and other financing sources, were originally budgeted at $34.3 million and increased to $38.1 million in the final budget. Expenditures, including transfers to other funds, were originally budgeted at $38.1 million and increased to $47.0 million in the final budget.

The FY 22/23 final budget projected the General Fund would have a deficit of $8.9 million. It is important to note that the General Fund includes Measure K, and $4.2 million in capital costs for the library is funded by $26.4 million in debt financing. At the close of FY 22/23, the actual deficit was $3.9 million. Significant items contributing to the variance of $5.0 million are as follows:

Total revenues were $1.9 million higher than budgeted. The most significant increase was due to higher property tax revenues based on valuations for $0.4 million, licenses and permits revenues for $0.7 million for one-time payments for a new apartment project and new home project, and use of money of property due to rising interest rates for $0.3 million.

Total expenditures were $3.2 million lower than budgeted. This variance was primarily due to the timing of expenditures for the Measure K library project close out costs of $1.1 million. Public safety was under budget for $0.7 million, mainly due to salary savings from vacancies. Transportation was under budget for $0.8 million from salary savings and underspending in engineering services.

Total other financing sources/uses were $0.1 million higher than budget. The budget transfers consist of funding for vehicles, information technology, and capital projects and programs related to the Measure K funds. The increase in net transfers from $1.6 million in the original budget to $6.1 million in the final budget is the rollover of capital budget related to the Library Project from the previous fiscal year due to project timing.

Capital Assets
The City’s infrastructure capital assets include streets, storm drains, streetlights, and traffic control devices. Each year, based on the determination of the City’s Engineering Division, completed projects that meet certain criteria are capitalized. Capitalizable projects that are under construction at fiscal year-end are recorded as constructionin-progress and are capitalized as depreciable assets in the year they are completed. Capital assets and accumulated depreciation that are recorded in the City’s financial statements are shown in the table below. Further details for the capital assets can be found in Note 7 to the basic financial statements.

10.2.a
Packet Pg. 174 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
16 Capital Assets as of June 30 ($ in Millions)
2023 2022
Governmental Activities:

Land 3.4 $ 3.4 $
Construction in progress 1.5 28.4
Buildings and improvements 46.2 15.1
Equipment and furniture 12.8 11.2
Streets and roads 68.6 68.6
Curbs and gutters 16.9 16.9
Storm drains 11.0 11.0
Street lights 4.1 4.1
Traffic control devices 6.7 6.7
Less: accumulated depreciation (77.9) (74.5)
Total 93.3 $ 90.9 $
Business-type Activities:

Water system infrastructure 1.4 $ 0.8 $
Less: accumulated depreciation (0.4) (0.4)
Total 1.0 $ 0.4 $
During FY 22/23, buildings and improvements increased $31.1 million with the opening of the new City Library, which caused construction in progress to decrease. The City also purchased $1.6 million in equipment and furniture during the year with additions of $0.7 million in police radios with ARPA funding, $0.3 million in police and maintenance vehicles after a delay due to supply chain issues, and $0.2 million in equipment in the Council Chambers and various conference rooms to assist with virtual meetings. In addition, the City improved the water system infrastructure by adding $0.6 million in improvements to the Diablo Vista Water system. The City depreciates its depreciable capital assets over their estimated useful lives. Current year depreciation expenses totaled $3.5 million. Additional information on the estimated useful life of each capital asset category may be found in Note 1(H).

Long-Term Debt
The City issued $26.4 million in long-term debt for the construction of a new library building, and a portion of the Oak Park Monticello Backbone Infrastructure Improvements through a private placement loan with a bank on August 1, 2020. As of June 30, 2023, total debt service remaining on the capital financing is $20.7 million with annual debt service of $2.5 million. Further details for the long-term debt can be found in Note 8 to the basic financial statements.

Economic Factors
The economic factors of the City are discussed in the accompanying Transmittal Letter.

Request for Information
This Annual Comprehensive Financial Report (ACFR) is intended to provide residents, taxpayers, investors, and creditors with a detailed overview of the City’s finances. Questions about this report should be directed to the Finance Department at 100 Gregory Lane, Pleasant Hill, CA 94523.

10.2.a
Packet Pg. 175 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Statement of Net Position
June 30, 2023
Governmental Business-Type
Activities Activities Total
Assets:

Cash and investments held in City Treasury 40,563,488 $ 477,265 $ 41,040,753 $ Receivables:

Accounts and others 4,224,618 - 4,224,618
Interest 295,312 3,971 299,283
Notes and loans receivable, net 2,619,858 - 2,619,858
Land held for redevelopment 191,049 - 191,049
Restricted cash and investments with trustees 1,044,835 - 1,044,835 Capital assets:

Nondepreciable 4,940,962 - 4,940,962
Depreciable, net of accumulated depreciation 88,391,282 1,034,920 89,426,202 Total assets 142,271,404 1,516,156 143,787,560
Deferred outflows of resources - Pension items 22,742,569 - 22,742,569 Liabilities:

Accounts payable and accrued liabilities 2,063,351 53,597 2,116,948 Deposits payable 2,548,095 - 2,548,095
Unearned revenue 4,441,277 - 4,441,277
Interest payable 28,662 - 28,662
Compensated absences payable:

Due within one year 470,000 - 470,000
Due in more than one year 1,879,548 - 1,879,548
Noncurrent liabilities:

Long-term debt - Due within one year 2,139,956 - 2,139,956 Long-term debt - Due in more than one year 18,530,742 - 18,530,742 Net pension liability - Due in more than one year 52,056,955 - 52,056,955 Total liabilities 84,158,586 53,597 84,212,183
Deferred inflows of resources - Pension items 5,110,838 - 5,110,838 Net position:

Net investment in capital assets 73,152,809 1,034,920 74,187,729 Restricted for:

Special revenue:

General government 2,027,676 - 2,027,676
Public safety projects 654,172 - 654,172
Transportation projects 5,551,053 - 5,551,053
Community development projects 8,048,869 - 8,048,869
Capital projects 226,025 - 226,025
Total restricted net position 16,507,795 - 16,507,795
Unrestricted (13,916,055) 427,639 (13,488,416)
Total net position $ 75,744,549 $ 1,462,559 $ 77,207,108 See accompanying notes to basic financial statements.
17 10.2.a
Packet Pg. 176 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Statement of Activities
For the Year Ended June 30, 2023
Net (Expense) Revenue and
Program Revenues Changes in Net Position
Operating Capital
Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental Activities:

General government 5,231,155 $ 253,534 $ 3,051,537 $ 96,920 $ (1,829,164) $ - $ (1,829,164) $ Public safety 126,900 11,198,560 175,024 - (10,896,636) - (10,896,636) Transportation 14,347,929 2,394,612 2,113,646 - (9,839,671) - (9,839,671) Community development 2,762,111 2,478,310 5,555 - 289,356 - 289,356 Interest and fiscal charges 386,463 - - - (386,463) - (386,463) Total governmental activities 33,642,417 5,537,157 5,345,762 96,920 (22,662,578) - (22,662,578) Business-type activities:

Diablo Vista Water System 272,115 133,950 - - - (138,165) (138,165) Total business-type activities 272,115 133,950 - - - (138,165) (138,165) $ 5,671,107 33,914,532 $ 5,345,762 $ 96,920 $ (22,662,578) (138,165) (22,800,743) General revenues:

Taxes:

Property taxes 287,428 9,422,570 9,709,998
Sales taxes - 10,999,559 10,999,559
Measure K transactions & use tax - 5,478,120 5,478,120
Transient occupancy taxes - 2,231,880 2,231,880
Franchise taxes - 2,370,149 2,370,149
Other taxes - 3,480,028 3,480,028
Investment earnings 16,608 788,597 805,205
Miscellaneous - 57,696 57,696
Total general revenues 304,036 34,828,599 35,132,635
Change in net position 165,871 12,166,021 12,331,892
Net position, beginning of year 1,296,688 63,578,528 64,875,216 Net position, end of year $ 1,462,559 75,744,549 $ 77,207,108 $ See accompanying notes to basic financial statements.
18 10.2.a
Packet Pg. 177 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Governmental Funds
Balance Sheet
June 30, 2023
Low and
Measure J Moderate American Other
Traffic Growth Income Rescue Plan Governmental
General Mitigation Management Gas Tax Housing Asset Act Funds Total Assets:

Cash and investments held in City Treasury $ 311,074 17,950,309 $ 1,489,241 $ 6,134,679 $ 3,024,861 $ 4,492,676 $ 7,160,648 $ 40,563,488 $ Receivables:

Accounts and other 3,826,491 - 1,140 243,195 12,712 - 141,080 4,224,618 Interest 205,258 2,585 12,414 39,425 - - 35,630 295,312 Due from other funds 5,224 - - - - - - 5,224
Notes and loans receivable, net 100,000 - - - 2,519,858 - - 2,619,858 Land held for redevelopment - - - - 191,049 - - 191,049 Restricted cash and investments with trustees 1,044,835 - - - - - - 1,044,835 Total assets 23,132,117 $ 313,659 $ 1,502,795 $ 6,417,299 $ 5,748,480 $ 4,492,676 $ 7,337,358 $ 48,944,384 $ Liabilities, Deferred Inflows of Resources
and Fund Balances:

Liabilities:

Accounts payable and
accrued liabilities 1,204,457 $ 34,911 $ 58,649 $ 214,714 $ 275 $ 51,399 $ 498,946 $ 2,063,351 $ Deposits payable 2,548,095 - - - - - - 2,548,095
Unearned revenue - - - - - 4,441,277 - 4,441,277
Due to other funds - - - - - - 5,224 5,224
Total liabilities 3,752,552 34,911 58,649 214,714 275 4,492,676 504,170 9,057,947 Deferred inflows of resources - unavailable revenue 1,136,028 - - - 594,987 - - 1,731,015 Fund balances (deficits):

Restricted 278,748 491,263 1,444,146 3,414,108 5,153,218 - 4,491,784 15,273,267 Committed - - - - - - 1,661,214 1,661,214
Assigned - 14,783,715 - 2,788,477 - - 685,414 18,257,606 Unassigned - 2,968,559 - - - - 2,963,335 (5,224)
Total fund balances 18,243,537 278,748 1,444,146 6,202,585 5,153,218 - 6,833,188 38,155,422 Total liabilities, deferred inflows of
resources and fund balances 23,132,117 $ 313,659 $ 1,502,795 $ 6,417,299 $ 5,748,480 $ 4,492,676 $ 7,337,358 $ 48,944,384 $ See accompanying notes to basic financial statements.
19 10.2.a
Packet Pg. 178 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position - Governmental Activities June 30, 2023
Total fund balances reported on the governmental funds balance sheet 38,155,422 $ Amounts reported for governmental activities in the statement of net position are different from those reported in the governmental funds above because of the following:

Capital assets:

Capital assets used in governmental activities are not current assets or financial resources and therefore are not reported in the governmental funds. 93,332,244 Deferred outflows of resources and deferred inflows of resources:

Certain items are not financial resources, and therefore, are not reported in the governmental funds:

Deferred outflows of resources - Pension items 22,742,569 Deferred inflows of resources - Pension items (5,110,838) Receivables not available:

Certain receivables are not available to pay for current period expenditures and therefore are deferred in the governmental funds. 1,731,015 Long-term liabilities:

The liabilities below are not due and payable in the current period and therefore are not reported in the governmental funds:

Bonds payable (20,670,698)
Interest payable (28,662)
Compensated absences (2,349,548)
Net pension liability (52,056,955)
Net position of governmental activities 75,744,549 $
See accompanying notes to basic financial statements.
20 10.2.a
Packet Pg. 179 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2023
Low and
Measure J Moderate American Other
Traffic Growth Income Rescue Plan Governmental
General Mitigation Management Gas Tax Housing Asset Act Funds Total Revenues:

Property taxes 8,674,191 $ - $ - $ - $ - $ - $ 748,379 $ 9,422,570 $ Sales taxes 10,905,858 - - - - - - 10,905,858
Measure K transactions & use tax 5,505,620 - - - - - - 5,505,620 Transient occupancy taxes 2,231,880 - - - - - - 2,231,880 Other taxes and -
special assessments - 5,850,177 - - - - 834,429 6,684,606 Licenses and permits 1,706,870 - - - - - - 1,706,870
Intergovernmental 116,261 30 1,708,822 1,683,726 - 2,877,902 374,257 6,760,998 Charges for services 622,308 616,850 - - - - 362,447 1,601,605 Fines and forfeitures 15,289 - - - - - 31,832 47,121
Use of money and property 7,106 503,395 22,714 130,689 27,129 - 97,567 788,600 Other - 152,321 - - - - - 152,321
Total revenues 36,284,170 623,986 1,731,536 1,814,415 27,129 2,877,902 2,448,911 45,808,049 Expenditures:

Current:

General government - 9,738,138 - - - 100,451 230,743 10,069,332 Public safety - 12,195,990 - - - - 180,903 12,376,893
Transportation 3,557,581 - 359,540 5,777,784 - - 971,926 10,666,831 Community development - 2,273,639 40,226 - 46,321 73,318 369,249 2,802,753 Capital outlay - 3,739,648 - - - 672,510 3,191,591 7,603,749 Debt service:

Principal 2,102,993 - - - - - - 2,102,993
Interest and fiscal charges 389,379 - - - - - - 389,379 Total expenditures 33,997,368 - 399,766 5,777,784 46,321 846,279 4,944,412 46,011,930 Excess (deficiency) of revenues
over (under) expenditures 2,286,802 623,986 1,331,770 (3,963,369) 2,031,623 (19,192) (2,495,501) (203,881) Other financing sources (uses):

Transfers in - 589,033 50,000 5,289,700 - - 3,780,237 9,708,970 Transfers out (6,730,647) - (521,700) - - (2,031,623) (425,000) (9,708,970) Total other financing
sources (uses) (6,141,614) 50,000 (521,700) 5,289,700 - 3,355,237 (2,031,623) - Change in fund balances 102,286 (3,854,812) 1,381,770 1,326,331 - (19,192) 859,736 (203,881) Fund balances, beginning of year 22,098,349 176,462 62,376 4,876,254 5,172,410 - 5,973,452 38,359,303 Fund balances, end of year $ 278,748 18,243,537 $ 1,444,146 $ 6,202,585 $ 5,153,218 $ - $ 6,833,188 $ 38,155,422 $ See accompanying notes to basic financial statements.
21 10.2.a
Packet Pg. 180 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities - Governmental Activities For the Year Ended June 30, 2023
Net change in fund balances - total governmental funds (203,881) $ Amounts reported for governmental activities in the statement of activities are different because of the following:

Capital assets transactions:

Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.

Expenditures for capital assets reported as:

Capital outlay 7,603,749
Amounts reported in capital outlay that are not capitalizable (1 ,750,791) Less current year depreciation (3,447,621)
Pension transactions:

Pension contribution made subsequent to the measurement date is an expenditure in the governmental funds, but reported as a deferred outflows of resources in the government-wide financial statements 5,611,338
Pension expense reported in the statement of activities does not require the use of current financial resources and, therefore, is not reported as an expenditure in governmental funds 2,314,254 Long-term debt transactions:

Repayment of debt principal is an expenditure in the governmental funds, but in the statement of net position the repayment reduces long-term liabilities. 2,102,993 Accrual of noncurrent items:

The amounts below included in the statement of activities do not provide or use current financial resources and therefore are not reported as revenues or expenditures in governmental funds:

Change in compensated absences (67,325)
Change in interest payable 2,916
Change in deferred inflows of resources - unavailable revenue 38 9 Change in net position of governmental activities 12,166,021 $ See accompanying notes to basic financial statements.
22 10.2.a
Packet Pg. 181 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Property taxes 3,913,000 $ 3,913,000 $ 4,362,050 $ 449,050 $ Property tax in lieu of Vehicle License Fee 4,297,800 4,297,800 4,312,141 14,341 Sales taxes 10,795,600 10,795,600 10,905,858 110,258
Measure K transaction & use tax 5,366,000 5,366,000 5,505,620 139,620 Transient occupancy taxes 2,324,300 2,324,300 2,231,880 (92,420) Other taxes 5,601,435 5,601,435 5,850,177 248,742
Licenses and permits 1,024,172 1,024,172 1,706,870 682,698 Intergovernmental 101,958 101,958 116,261 14,303
Charges for current services 466,192 466,192 622,308 156,116 Fines and forfeitures 30,000 30,000 15,289 (14,711)
Use of money and property 167,120 126,950 503,395 336,275 Other 258,840 258,840 152,321 (106,519)
Total revenues 34,306,247 34,346,417 36,284,170 1,937,753 Expenditures:

Current:

General government:

City Council 167,034 167,034 150,669 16,365
City Manager 965,108 978,669 1,033,787 (68,679)
City Attorney 526,321 526,321 287,730 238,591
City Clerk 211,312 211,312 192,493 18,819
City Treasurer 11,433 11,433 10,852 581
Finance 914,013 914,013 925,967 (11,954)
Computer services 470,523 477,192 472,301 4,891
Human Resources 645,333 652,660 699,111 (46,451)
Risk management 1,139,814 1,139,814 1,034,173 105,641
City Hall facility 148,325 148,325 153,560 (5,235)
Measure K 451,240 451,240 177,472 273,768
Non-departmental 4,493,816 4,493,816 4,600,023 (106,207) Total general government 10,158,268 10,157,833 9,738,138 420,130 Public safety:

Police 12,764,757 12,883,850 12,195,990 687,860
Transportation:

Public works administration 1,676,174 1,242,568 1,187,413 488,761 Public works maintenance 2,684,193 2,715,877 2,370,168 345,709 Total transportation 4,392,051 3,926,761 3,557,581 834,470 Community development:

Planning 1,103,661 1,185,736 1,137,921 47,815
Building inspection 522,336 522,336 495,572 26,764
Community relations 195,381 187,440 200,227 (4,846)
Economic development 490,674 489,941 439,919 50,755
Total community development 2,394,127 2,303,378 2,273,639 120,488 Capital outlay - Measure K 4,869,486 4,869,486 3,739,648 1,129,838 Debt Service:

Principal 2,102,993 2,102,993 2,102,993 -
Interest and fiscal charges 389,379 389,379 389,379 -
Total debt service 2,492,372 2,492,372 2,492,372 -
Total expenditures 36,514,587 37,190,154 33,997,368 3,192,786 Excess of revenues over expenditures (2,208,340) (2,843,737) 2,286,802 5,130,539 Other financing sources (uses):

Transfers in 3,725,785 30,000 589,033 (3,136,752)
Transfers out (9,786,054) (1,599,148) (6,730,647) 3,055,407 Total other financing sources (uses) (1,569,148) (6,060,269) (6,141,614) (81,345) Change in fund balance (3,777,488) $ (8,904,006) $ (3,854,812) 5,049,194 $ Fund balance, beginning of year 22,098,349
Fund balance, end of year $ 18,243,537
See accompanying notes to basic financial statements.
23 10.2.a
Packet Pg. 182 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Traffic Mitigation Fund
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental - $ - $ 30 $ 30 $
Charges for services 1,023,036 1,023,036 616,850 (406,186) Use of money and property 367 367 7,106 6,739
Total revenues 1,023,403 1,023,403 623,986 (399,417)
Expenditures:

Current:

Transportation 8,932 8,932 - 8,932
Excess (deficiency) of revenues over (under) expenditures 1,014,471 1,014,471 623,986 (390,485) Other financing uses:

Transfers out (521,700) (521,700) (521,700) -
Change in fund balance 492,771 $ 492,771 $ 102,286 (390,485) $ Fund balance, beginning of year 176,462
Fund balance, end of year 278,748 $
See accompanying notes to basic financial statements.
24 10.2.a
Packet Pg. 183 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Measure J Growth Management Fund
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 810,000 $ 810,000 $ 1,708,822 $ 898,822 $ Use of money and property 773 773 22,714 21,941
Total revenues 810,773 810,773 1,731,536 920,763
Expenditures:

Current:

Transportation 840,000 768,176 359,540 408,636
Community development 36,838 36,838 40,226 (3,388)
Total expenditures 876,838 805,014 399,766 405,248
Excess (deficiency) of revenues over (under) expenditures (66,065) 5,759 1,331,770 1,326,011 Other financing sources (uses):

Transfers in 50,000 50,000 50,000 -
Change in fund balance (16,065) $ 55,759 $ 1,381,770 1,326,011 $ Fund balance, beginning of year 62,376
Fund balance, end of year 1,444,146 $
See accompanying notes to basic financial statements.
25 10.2.a
Packet Pg. 184 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Gas Tax Fund
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 1,565,473 $ 2,345,840 $ 1,683,726 $ (662,114) $ Use of money and property 8,755 - 130,689 121,934
Total revenues 1,565,473 2,354,595 1,814,415 (540,180)
Expenditures:

Current:

Transportation 8,341,588 10,349,769 5,777,784 4,571,985 Excess (deficiency) of revenues over (under) expenditures (6,776,115) (7,995,174) (3,963,369) 4,031,805 Other financing sources (uses):

Transfers in 2,143,000 5,289,700 5,289,700 -
Change in fund balance (4,633,115) $ (2,705,474) $ 1,326,331 4,031,805 $ Fund balance, beginning of year 4,876,254
Fund balance, end of year 6,202,585 $
See accompanying notes to basic financial statements.
26 10.2.a
Packet Pg. 185 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
American Rescue Plan Act Fund
Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the Year Ended June 30, 2023
Variance with
Final Budget
Budgeted Amounts Actual Positive
Original Final Amounts (Negative)
Revenues:

Intergovernmental 4,167,115 $ 4,167,115 $ 2,877,902 $ (1,289,213) $ Expenditures:

Current:

General government 450,000 557,546 100,451 457,095
Community development 259,500 259,500 73,318 186,182
Capital outlay 674,949 - 672,510 2,439
Total expenditures 709,500 1,491,995 846,279 645,716
Excess of revenues over expenditures 3,457,615 2,675,120 2,031,623 (643,497) Other financing sources (uses):

Transfers out (2,640,000) (3,190,679) (2,031,623) 1,159,056 Change in fund balance 817,615 $ (515,559) $ - 515,559 $ Fund balance, beginning of year -
Fund balance, end of year $ -
See accompanying notes to basic financial statements.
27 10.2.a
Packet Pg. 186 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Proprietary Fund
Statement of Fund Net Position
June 30, 2023
Diablo Vista
Water System
Enterprise Fund
Assets:

Current assets:

Cash and investments held in City Treasury 477,265 $
Interest receivable 3,971
Total current assets 481,236
Noncurrent assets:

Capital assets:

Depreciable, net of accumulated depreciation 1,034,920
Total assets 1,516,156
Liabilities:

Current liabilities:

Accounts payable and accrued liabilities 53,597
Net position:

Net investment in capital assets 1,034,920
Unrestricted 427,639
Total net position 1,462,559 $
See accompanying notes to basic financial statements.
28 10.2.a
Packet Pg. 187 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Proprietary Fund
Statement of Revenues, Expenses and Changes in Fund Net Position For the Year Ended June 30, 2023
Diablo Vista
Water System
Enterprise Fund
Operating revenues:

Water district assessments and charges 133,950 $
Operating expenses:

Purchased water 175,467
Personnel services 11,138
Contract services 12,625
Administration and office utilities 25,078
Repairs and maintenance 35,539
Depreciation 12,268
Total operating expenses 272,115
Operating loss (138,165)
Nonoperating revenues:

Property taxes 287,428
Interest income 16,608
Total nonoperating revenues 304,036
Change in net position 165,871
Net position, beginning of year 1,296,688
Net position, end of year 1,462,559 $
See accompanying notes to basic financial statements.
29 10.2.a
Packet Pg. 188 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Proprietary Fund
Statement of Cash Flows
For the Year Ended June 30, 2023
Diablo Vista
Water System
Enterprise Fund
Cash flows from operating activities:

Cash received from customers 133,950 $
Cash payments to suppliers for goods and services (231,079) Cash payments to other funds for services provided (11,138) Net cash used in operating activities (108,267)
Cash flows from noncapital financing activities:

Property tax received 287,428
Cash flows from capital and related financing activities:

Acquisition of capital assets (607,248)
Cash flows from investing activities:

Interest income received 14,328
Net change in cash and cash equivalents (413,759)
Cash and cash equivalents, beginning of year 891,024
Cash and cash equivalents, end of year $ 477,265
Reconciliation of operating loss to
net cash used in operating activities:

Operating loss (138,165) $
Adjustments to reconcile operating loss to
net cash used in operating activities:

Depreciation 12,268
Change in accounts payable and accrued liabilities 17,630 Net cash used in operating activities $ (108,267)
See accompanying notes to basic financial statements.
30 10.2.a
Packet Pg. 189 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Fiduciary Funds
Statement of Fiduciary Net Position
June 30, 2023
Private-Purpose
Trust Fund -
Successor Custodial
Agency Funds
Assets:

Cash and investments:

Held in City Treasury 2,461,167 $ 531,871 $
Receivables:

Interest - 1,921
Loans receivable 135,953 -
Land held for redevelopment 86,100 -
Total assets 2,683,220 533,792
Liabilities:

Accounts payable and accrued liabilities 258 64,475
Interest payable 55,055 -
Long-term debt:

Due within one year 300,000 -
Due in more than one year 3,365,000 -
Total liabilities 3,720,313 64,475
Net Position (Deficit):

Restricted for governmental entities and others - 469,317 Unrestricted held in trust (1,037,093) -
Total net position (deficit) (1,037,093) $ 469,317 $
See accompanying notes to basic financial statements.
31 10.2.a
Packet Pg. 190 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) Private-Purpose
Trust Fund -
Successor Custodial
Agency Funds
Additions:

Redevelopment property tax revenues 2,169,672 $ - $
Investment earnings 4,007 5,864
Members contributions - 277,001
Others - 232,837
Total additions 2,173,679 515,702
Deductions:

Community development expenses 1,606,997 -
Interest and fiscal charges 180,314 -
Benefits paid to participants or beneficiaries - 20,840 Administrative and general - 257,560
Total deductions 1,787,311 278,400
Change in net position 386,368 237,302
Net position (deficit), beginning of year (1,423,461) 232,015 Net position (deficit), end of year (1,037,093) $ 469,317 $

CITY OF PLEASANT HILL
Fiduciary Funds
Statement of Changes in Fiduciary Net Position
For the Year Ended June 30, 2023
See accompanying notes to basic financial statements.
32 10.2.a
Packet Pg. 191 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
33 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Pleasant Hill (City) was incorporated on November 14, 1961 under the laws of the State of California. The City operates under the Council-City Manager form of government and provides the following services: public safety, transportation, community development, and general government.

The basic financial statements include the financial activities of the City, Successor Agency to the Pleasant Hill Redevelopment Agency (Successor Agency) and the Pleasant Hill Joint Powers Financing Authority (Authority).

The Successor Agency is a separate governmental entity established on February 1, 2012 for the purpose of serving as a custodian of the assets of the former Pleasant Hill Redevelopment Agency (Agency) and winding down the former Agency’s activities subject to the direction of a Countywide Oversight Board.

The Countywide Oversight Board serves as the governing body and is comprised of seven members: 1) a County of Contra Costa (County) Supervisors representative, 2) a mayor appointed by a city selection committee, 3) a special district representative, 4) a school district representative, 5) a community college district representative, 6) a member of the public, and 7) a successor agency employee appointed from the largest employer of successor agency employees in the County. The Successor Agency’s financial transactions are accounted for in a private-purpose trust fund, a fiduciary fund type.

The Authority is a separate government entity whose purpose is to assist with the financing or refinancing of certain public capital facilities within the City. The Authority is controlled by the City and is governed by a board consisting of the City Manager, City Attorney, and Finance Manager, who also manage all accounting and administrative functions for the Authority. The Authority is a blended component unit, and is in substance part of the City’s operations and has a financial benefits and burden relationship with the City.

The Successor Agency and Authority do not issue separate financial statements and are reported in the City’s basic financial statements.

B. Basis of Presentation
The City's basic financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The Governmental Accounting Standards Board (GASB) is the acknowledged standard setting body for establishing accounting and financial reporting standards followed by governmental entities in the United States.

Government-Wide Statements: The statement of net position and the statement of activities display information about the City’s primary government. These statements include the financial activities of the overall City government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities, except where interfund services have been received or provided.

These statements distinguish between the governmental and business-type activities of the City.

Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. The City’s business-type activities are financed in whole or in part by fees charged to external parties.

10.2.a
Packet Pg. 192 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
34 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The statement of activities presents a comparison between direct expenses and program revenues for the business-type activities of the City and for each function of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include: (a) charges paid by the recipients for goods or services offered by the programs, (b) grants and contributions that are restricted to meeting the operational needs of a particular program, and (c) fees, grants and contributions that are restricted to financing the acquisition or construction of capital assets. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

Fund Financial Statements: The fund financial statements provide information about the City's funds, including fiduciary funds and the blended component units. Separate statements for each fund categorygovernmental, proprietary, and fiduciary are presented. The emphasis of fund financial statements is on major individual governmental and enterprise funds, each of which is displayed in a separate column. All remaining governmental funds are aggregated and reported as nonmajor funds.

Proprietary fund operating revenues include charges for services provided to customers. Operating expenses for the enterprise fund include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

C. Major Funds
Major funds are defined as funds that have either assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues or expenditures/expenses equal to ten percent of their governmental or enterprise fund-type total and five percent of the combined grand total. The General Fund is always a major fund. The City may also select other funds it believes should be presented as major funds.

The City reported the following major governmental funds in the accompanying basic financial statements.

General Fund - Accounts for all of the general revenues and financial resources of the City not specifically levied or collected for the other City funds, as well as the related expenditures.

Traffic Mitigation Fund - Accounts for contributions received and traffic mitigation fees assessed on new developments to provide for street or other traffic improvements.

Measure J Growth Management Fund - Accounts for resources provided by the one-half cent sales tax dedicated to transportation improvement projects.

Gas Tax Fund - Accounts for gas tax apportioned by the State to cities based upon three factors: vehicle registration, assessed valuation, and population. These funds are used for street construction and maintenance.

Low and Moderate Income Housing Asset Fund – Accounts for housing assets and functions related to the Low and Moderate Income Housing Program retained by the City following the dissolution of the former Agency. Revenues are generated from the housing assets, including loan repayments and proceeds from the sale of the housing assets.

American Rescue Plan Act Fund – Accounts for funds received from the federal government from the American Rescue Plan Act of 2021. These funds provide relief from COVID-19 pandemic-related economic impacts to the City’s operations. The funds are to be used for general City services and capital projects.

10.2.a
Packet Pg. 193 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
35 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City reports its only enterprise fund as a major fund in the accompanying basic financial statements.

The Diablo Vista Water System Fund - Accounts for the financing of self-supporting activities, which render irrigation water to the homeowners in a specific geographical area of the City, paid from property taxes and user charges.

The City also reports the following fiduciary funds:

Private-Purpose Trust Fund - The Successor Agency was created to serve as a custodian for the nonhousing assets and to wind down the affairs of the former Agency. This fund accounts for the receipt of property tax revenues pursuant to the Redevelopment Dissolution Act and the value of the assets transferred from the former Agency. The Successor Agency’s assets can only be used to pay enforceable obligations in existence at the date of dissolution pursuant to the Recognized Obligation Payment Schedules approved by the State Department of Finance (DOF) under the Redevelopment Dissolution Act.

Custodial Funds - Custodial funds are used to account for assets held by the City as a custodian for individuals, private organizations, and other governments. The City maintains four custodial funds.

The financial activities of these fiduciary funds are excluded from the government-wide financial statements, but are presented in separate fiduciary fund financial statements.

D. Basis of Accounting
The government-wide, proprietary, and fiduciary fund financial statements are reported using the economic resources measurement focus and the full accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place.

For the Diablo Vista Water System Enterprise Fund, revenues are billed to customers by the County of Contra Costa and are included on each customer's property tax statement. Revenues for services provided but not billed at the end of a fiscal period are not considered material and are not accrued.

Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available.

Generally, the City considers all revenues, except property tax revenues, reported in the governmental funds to be available if the revenues are collected within 45 days after year-end. Property tax revenues are recognized by the City in the fiscal year they are assessed provided they become available within 60 days after year-end for governmental funds. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. Governmental capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of governmental long-term debt and acquisitions under capital leases are reported as other financing sources.

Revenues susceptible to accrual include taxes, intergovernmental revenues, charges for services, and interest. Fines, licenses, and permits are not susceptible to accrual because they are not measurable until received in cash.

10.2.a
Packet Pg. 194 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
36 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Non-exchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include taxes, grants, entitlements, and donations. On the accrual basis, revenue from taxes is recognized in the fiscal year for which the taxes are levied or assessed. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

The City may fund programs with a combination of cost-reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and unrestricted net position may be available to finance program expenditures. The City's policy is to first apply restricted grant resources to such programs, followed by general revenues if necessary.

Certain indirect costs are included in program expenses reported for individual functions and activities.

Transactions representing the exchange of interfund goods and services have also been included.

E. Cash and Cash Equivalents
For purposes of reporting cash flows for the City’s proprietary fund, pooled cash and investments held by City Treasury are considered cash equivalents as the proprietary fund can access pooled cash and investments in a manner similar to a demand deposit account.

F. Investments
The City's investments are stated at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value measurements are categorized within the fair value hierarchy established by generally accepted accounting principles. The City adjusts the carrying value of its investments to reflect their fair value at each fiscal year end, and it includes the effects of these adjustments in income for that fiscal year.

G. Interfund Transactions
Interfund loans and balances related to unsettled service transactions are reported as receivables and payables as appropriate, and are subject to elimination upon consolidation of similar fund types, and are referred to as either “due from/to other funds” (i.e., the current portion of inter-fund loans and unsettled service transactions) or “advances to/from other funds” (i.e., the non-current portion of interfund loans).

Any residual balances outstanding between the governmental activities and the business-type activities are reported in the government-wide financial statements as “internal balances”.

Services provided or used, deemed to be at market or near market rates, are treated as revenues and expenditures or expenses. Transactions constituting reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds, if any, are netted as part of the reconciliation to the government-wide presentation.

H. Capital Assets
Capital assets are valued at cost or estimated historical cost if actual cost is not available. Donated capital assets are stated at their acquisition value. Infrastructure capital assets consisting of streets, roads, curbs, gutters, storm drains, street drainage, street lights, and traffic control devices have been capitalized and depreciated. Capital assets are defined as assets with an initial individual cost of more than $1,500 and a useful life of in excess of one year.

10.2.a
Packet Pg. 195 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
37 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Major outlays for capital assets and improvements are capitalized as projects are constructed. Some capital assets may be acquired using federal and state grant funds, or they may be contributed by developers or other governments. These contributions are accounted for as revenues at the time the capital assets are contributed.

Depreciation is recorded using the straight-line method over the following useful lives:

Buildings and improvements 10-50 years
Equipment and furniture 3-15 years
Streets and roads 50 years
Curbs and gutters 50 years
Storm drains 50 years
Street lights 50 years
Traffic control devices 50 years
Diablo Vista Water system infrastructure 50 years
I. Deferred Outflows and Inflows of Resources
In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then.

In addition to liabilities, the statement of net position reports a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time.

The City reports the following deferred items:

Deferred Outflows and Inflows of Resources Related to Pensions These deferred items are recognized and measured in financial statements prepared using the economic resources measurement focus and the accrual basis of accounting. The deferral is for changes in the net pension liability that are not included in pension expense and must be amortized in a systematic and rational manner over a closed period depending on cause beginning with the current period. These causes may include changes of future economic and demographic assumptions or other inputs, differences between expected and actual experience with regard to economic or demographic factors, differences between projected and actual earnings on pension plan investments, changes in employer’s proportion, and differences between the employer’s actual and proportionate share of contributions.

Employer contributions subsequent to the measurement date of the net pension liability are also required to be reported as deferred outflows of resources.

Unavailable Revenue
Unavailable revenue is only reported in the governmental funds balance sheet. The governmental funds report unavailable revenues from sources such as housing loans, State-mandated cost reimbursements, expenditure-driven grants, etc.

10.2.a
Packet Pg. 196 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
38 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) J. Land Held for Redevelopment
Land held for redevelopment is carried at the lower of cost, net realizable value, or agreed-upon sales price if a disposition and development agreement has been made with a developer.

K. Compensated Absences
Compensated absences are comprised of vacation and vested sick time, which are accrued as earned. The City's liability for compensated absences is recorded in governmental activities. The liability for compensated absences is determined annually. For all governmental funds, amounts expected to be permanently liquidated (matured due to termination) are recorded as fund liabilities; the long-term portion is recorded in the statement of net position.

The changes of the compensated absences were as follows for the year ended June 30, 2023:

Governmental
Activities
Beginning Balance 2,282,223 $
Additions 530,427
Payments (463,102)
Ending Balance 2,349,548 $
Current Portion 470,000 $
The compensated absences of governmental activities are liquidated primarily by the General Fund.

L. Net Pension Liability
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The net pension liability is typically liquidated by the General Fund.

M. Property Tax
The County distributes property taxes to jurisdictions according to the “alternate method of property tax distribution” known as the Teeter Plan. Under this plan, the County remits 100% of the levied taxes to the appropriate jurisdictions by June 30 each year, pursuing delinquencies and keeping related late penalties to cover their costs. The City receives property taxes and property tax increments, respectively, on the following schedule: 55% in December, 40% in April, and 5% in June. The lien date for secured and unsecured property taxes is established as of January 1 of the preceding fiscal year.

10.2.a
Packet Pg. 197 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
39 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Secured property tax is due in two equal installments, on November 1 and February 1. It becomes delinquent after December 10 and April 10, respectively. Unsecured property tax is due upon receipt of billing and becomes delinquent on August 31. The term “unsecured” refers to taxes not secured by real property. These taxes are secured by liens on the property being taxed.

Pursuant to the Redevelopment Dissolution Act, funds that would have been distributed to the former Agency as tax increment, hereafter referred to as redevelopment property tax revenues, are deposited into the Successor Agency’s Redevelopment Property Tax Trust Fund (Trust Fund) administered by the City for the benefit of holders of the former Agency’s enforceable obligations. Distributions from the Trust Fund are to be made on the following cycles:

Distribution Dates
Covers Recognized Obligation Payment
Schedules to be Paid
January 2 January 1 through June 30
June 1 July 1 through December 31
N. Effect of New Pronouncements
The City implemented the following GASB Statements during the year:

In May 2019, the GASB issued Statement No. 91, Conduit Debt Obligations. The objectives of this statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice associated with 1) commitments extended by issuers, 2) arrangements associated with conduit debt obligations, and 3) related note disclosure. Implementation of this statement did not have a significant impact on the City’s financial statements for the fiscal year ending June 30, 2023.

In March 2020, the GASB issued Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements. The objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). This statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). As defined in this statement, an APA is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction.

Implementation of this statement did not have a significant impact on the City’s financial statements for the fiscal year ended June 30, 2023.

In May 2020, the GASB issued Statement No. 96, Subscription-Based Information Technology Arrangements. This statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. Implementation of this statement did not have a significant impact on the City’s financial statements for the fiscal year ended June 30, 2023.

In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The requirements related to leases, public-private partnerships (PPPs), and SBITAs are effective for the City’s fiscal year ended June 30, 2023.

Implementation of these requirements did not have a significant impact on the City’s financial statements for the fiscal year ended June 30, 2023.

10.2.a
Packet Pg. 198 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
40 NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The City is currently analyzing its accounting practices to determine the potential impact on the financial statements for the following GASB Statements:

In April 2022, the GASB issued Statement No. 99, Omnibus 2022. The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of statement 53 are effective for the City’s fiscal year ending June 30, 2024.

In June 2022, the GASB issued Statement No. 100, Accounting Changes and Error Corrections – An Amendment of GASB Statement No. 62. The primary objective of this statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant consistent, and comparable information for making decisions or assessing accountability. The requirements of this statement are effective for the City’s fiscal year ending June 30, 2024.

In June 2022, the GASB issued Statement No. 101, Compensated Absences. The objective of this statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.

The requirements of this statement are effective for the City’s fiscal year ending June 30, 2025.

O. Leases
A lease is defined as a contract that conveys control of the right to use another entity’s nonfinancial asset (the underlying asset) as specified in the contract for a period of time in an exchange or exchange-like transaction. Examples of nonfinancial assets include buildings, land, vehicles, and equipment. The City will record lease liabilities and lease assets for leases with an individual net present value of $100,000 or more.

The City had no leases with an individual net present value of $100,000 or more as of June 30, 2023.

P. Subscription-Based Information Technology Arrangements (SBITAs) A SBITA is defined as a contract that conveys control of the right to use another party’s (a SBITA vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period in time in an exchange or exchange-like transaction. The City will record SBITA liabilities and SBITA assets for arrangements with an individual net present value of $100,000 or more. The City had no SBITA arrangements with an individual net present value of $100,000 or more as of June 30, 2023.

Q. Use of Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain amounts and disclosures. Accordingly, actual results could differ from those estimates.

10.2.a
Packet Pg. 199 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
41 NOTE 2 – STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgets and Budgetary Accounting
The City adopts a biennial budget on or before June 30 of even-numbered years for each of the ensuing two fiscal years generally for all funds except fiduciary funds. The Low and Moderate Income Housing Asset major governmental fund, as well as Parkland Dedication, Park and Recreation, and CLEEP Grant nonmajor governmental funds, were not budgeted for the year ended June 30, 2023. The operating budget takes the form of a two-year budget, which is adopted in its entirety by the City Council by resolution.

The operating budget is subject to supplemental appropriations throughout its term in order to provide flexibility to meet changing needs and conditions. The City Manager may approve supplemental appropriations up to $100,000 in the General Fund in increments no larger than $25,000. Council may approve additional appropriations throughout the year as well.

The City Manager is also authorized to transfer budgeted amounts between individual departments and funds. Budget transfers between accounts within a department may be approved by the department director.

Budgeted amounts reported in the accompanying basic financial statements include original and final budget amounts. The level of budgetary control (that is, the level at which expenditures cannot exceed the appropriated amount) is established at the fund level. Budgets for governmental funds are adopted on a basis consistent with generally accepted accounting principles.

B. Deficit Fund Balance and Net Position
At June 30, 2023, the Gas Tax 2107.5 Fund has a deficit fund balance of $5,224. This deficit is expected to be cured in the year ended June 30, 2024 through receipt of grant funding and transfers from other funds.

The Successor Agency Private-Purpose Trust Fund had a deficit net position of $1,037,093. The deficit is due to the nature of the redevelopment financing in which long-term debt were incurred for redevelopment activities. The deficit is expected to be eliminated with future redevelopment property tax revenues distributed from the Redevelopment Property Tax Trust Fund administered by the County.

C. Excess of Expenditures over Appropriations
The following funds had expenditures in excess of budget due to unanticipated expenditures for the year ended June 30, 2023, which are expected to be covered with existing fund balance and revenues in fiscal year 2023:

Amount
Nonmajor governmental funds:

Traffic Safety 42,181 $
Senior Van Services 1,399

10.2.a
Packet Pg. 200 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
42 NOTE 3 – CASH AND INVESTMENTS
The City's dependence on property tax receipts, which are received semi-annually, requires it to maintain significant cash reserves to finance operations during the remainder of the year. The City pools cash from all sources and all funds except for cash and investments held with trustees. The City’s pooled idle funds are invested pursuant to investment policy guidelines adopted by the City Council. The objectives of the policy are to invest funds to the fullest extent possible and to invest in accordance with the provisions of the California Government Code with the priority of safety, liquidity, and return on investment. The policy addresses the safekeeping of securities, types of authorized investment instruments, diversification, maturities, and reporting requirements. The City maintains a cash and investment pool that is available for use by all funds.

Each fund type’s portion of this pool is displayed on the financial statements as “cash and investments – held in City Treasury.” Cash and investments held in trust for pension benefits are treated as restricted.

A. Policies
The City invests in individual investments and in investment pools. Individual investments are evidenced by specific identifiable securities instruments, or by an electronic entry registering the owner in the records of the institution issuing the security, called the book entry system. Security instruments owned by the City are held in safekeeping by a third-party custodian acting as agent for the City under the terms of a custody agreement. The City has mitigated its exposure to custodial credit risks for investments at June 30, 2023.

California law requires banks and savings and loan institutions to pledge government securities with a fair value of 110% of the City’s cash on deposit, or first trust deed mortgage notes with a fair value of 150% of the deposit, as collateral for these deposits. Under California law, this collateral is held in a separate investment pool by another institution in the City’s name and places the City ahead of general creditors of the institution.

The City has mitigated its exposure to custodial credit risks for deposits at June 30, 2023.

B. Classification
The City's total cash and investments, at fair value, are presented on the accompanying financial statements in the following allocation:

Primary Private-Purpose Custodial
Government Trust Fund Funds Total
Cash and investments:

Held in City Treasury 41,040,753 $ 2,461,167 $ 531,871 $ 44,033,791 $ Held with trustees 1,044,835 - - 1,044,835
Total cash and investments 42,085,588 $ 2,461,167 $ 531,871 $ 45,078,626 $ C. Investments Authorized by the California Government Code and the City's Investment Policy The City's Investment Policy and the California Government Code allow the City to invest in the following provided the credit ratings of the issuers are acceptable to the City and approved percentages and maturities are not exceeded.

10.2.a
Packet Pg. 201 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
43 NOTE 3 – CASH AND INVESTMENTS (Continued)
The table below identifies investments that are authorized under the California Government Code and the City's Investment Policy:

Minimum Maximum Maximum
Maximum Credit Percentage of Investment in
Authorized Investment Type Maturity Quality Portfolio One Issuer U.S. Treasury bills, bonds, and notes 5 years N/A 100% No Limit U.S. Government Agency Securities 5 years N/A 100% No Limit Medium Term Corporate Notes 5 years A or better 30% No Limit Repurchase Agreements 1 year N/A 100% No Limit
Negotiable Certificates of Deposits 5 years N/A 30% No Limit Money Market Mutual Funds 5 years Highest Category 20% 10% State of California Local
Agency Investment Fund (LAIF) N/A N/A Up to $75 million No Limit D. Investments Authorized by Debt Agreements
The City must maintain required amounts of cash and investments with trustees or fiscal agents under the terms of certain debt issues. These funds are unexpended bond proceeds or are pledged reserves to be used if the City fails to meet its obligations under these debt issues. The California Government Code requires these funds to be invested in accordance with City ordinances, bond indentures, or State statutes. The bond indentures contain no limitations for the maximum investment in any one issuer or the maximum percentage of the portfolio that may be invested in any one investment type. The table below identifies the investment types that are authorized for investments held by trustees under the terms of the bond indentures.

Maximum Minimum
Authorized Investment Type Maturity Credit Quality
U.S. Treasury Obligations N/A N/A
U.S. Agency Securities N/A N/A
U.S. Governmental Sponsored Enterprise N/A N/A
State Obligations:

General Obligation N/A A to AA
General Short-term Obligation N/A A to AA
Special Revenue Bonds N/A AA
Municipal Obligations N/A Two Highest Categories
Pre-funded Municipal Obligations N/A AAA
Unsecured Certificates of Deposit 30 days A-1
FDIC insured deposits N/A N/A
Repurchase Agreements 30 days A
Commercial Paper 270 days A-1 to Highest
Bankers Acceptances 360 days A-1
Certificate of Deposit N/A N/A
Collateralized Certificates of Deposit 365 days A-1
Money Market Funds N/A AAAm or AAAm-G
Investment Agreement N/A N/A
Local Agency Investment Fund N/A N/A

10.2.a
Packet Pg. 202 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
44 NOTE 3 – CASH AND INVESTMENTS (Continued)
E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment the greater the sensitivity of its fair value to changes in market interest rates. The City generally manages its interest rate risk by holding investments to maturity.

Information about the sensitivity of the fair values of the City's investments (including investments held by trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity or earliest call date:

Less Than 3 to 12 1 to 5
Investment Type 3 Months Months Years Total
Investments Held in City Treasury:

U.S. Treasury Securities - $ $ 1, 410,802 $ 1, 531,204 $ 942,006 Local Agency Investment Fund * - 32, - 611,122 32, 611,122 Money Market Mutual Funds * 43,671 - - 43,671
Medium Term Corporate Securities 119,717 344,120 1, 796,214 260,051 U.S. Government Agency Securities 158,745 1, 446,032 1, 121,885 726,662 Total investments held in City Treasury 322,133 33, 3, 812,076 37, 449,303 583,512 Investments Held with Trustees:

Equity Mutual Funds (Irrevocable Pension Trust) 1, - 044,835 - 1, 044,835 Total investments 1,366,968 $ 33, $ 3,449,303 812,076 $ 38, 628,347 Cash and Deposits not subject to Interest Rate Risk:

Petty cash on hand 3,586
Cash in banks 6,446,693
Total cash and investments 45,078,626 $
Maturities in
* Weighted-average of maturity.

LAIF is part of the Pooled Money Investment Account (PMIA). PMIA oversight is provided by the Pooled Money Investment Board (PMIB) and an in-house Investment Committee. PMIB members are the State Treasurer, State Director of Finance, and State Controller. The Local Investment Advisory Board provides oversight for LAIF. The Board consists of five members as designated by statute. The Chairman is the State Treasurer or his designated representative. Two members are qualified by training and experience in the field of investment or finance, and the State Treasurer appoints two members who are treasurers, finance or fiscal officers, or business managers employed by any county, city, or local district or municipal corporation of this state. LAIF determines fair value on its investment portfolio based on market quotations for those securities where market quotations are readily available, and on amortized cost or best estimate for those securities where fair value is not readily available. The balance available for withdrawal by the City is based on the accounting records maintained by the State. At June 30, 2023, PMIA has a total amount of approximately $178.4 billion and of that amount, 97.22% was invested in non-derivative financial products and 2.78% in structured notes and asset-backed securities, while the weighted average maturity of LAIF was 260 days.

F. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The City manages credit risk in accordance with the City's Investment Policy.

10.2.a
Packet Pg. 203 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
45 NOTE 3 – CASH AND INVESTMENTS (Continued)
Presented below is the actual rating as of June 30, 2023 for each investment type, including those with trustees, as provided by Moody’s ratings:

Investment Type Ratings Total
Money Market Mutual Funds Aaam 43,671 $
U.S. Government Agency Securities Aaa 1,726,662
Medium Term Corporate Securities Aaa 63,944 $
Aa2 84,199
A1 557,887
A2 461,940
A3 92,081
Total Medium Term Corporate Securities 1,260,051
Total rated 3,030,384
Exempt from credit rating disclosures:

U.S. Treasury Securities Exempt 1,942,006
Not rated:

Local Agency Investment Fund Not rated 32,611,122
Equity Mutual Funds (Irrevocable Pension Trust) 1,044,835 Total investments 38,628,347 $
G. Concentration of Credit Risk
The City’s investment policy contains certain limitations on the amount that can be invested in any one issuer. No investment type held by the City accounted for more than 5% of total investments held in the City Treasury as of June 30, 2023.

H. Fair Value Hierarchy
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant unobservable inputs. The City does not measure any of its investments using level 3 inputs.

The following is a summary of the fair value measurements of the City as of June 30, 2023:

Investment Type Total Level 2
Investment by fair value levels
U.S. Treasury Securities 1,942,006 $ 1,942,006 $
U.S. Government Agency Securities 1,726,662 1,726,662
Medium Term Corporate Securities 1,260,051 1,260,051
Total investment by fair value levels 4,928,719 4,928,719 $ Investment not subject to fair value levels
Money Market Mutual Funds 43,671
Local Agency Investment Fund 32,611,122
Equity Mutual Funds (Irrevocable Pension Trust) 1,044,835 Total investment not subject to fair value levels 33,699,628 Total investments 38,628,347 $
Fair Value Measurement Hierachy

10.2.a
Packet Pg. 204 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
46 NOTE 3 – CASH AND INVESTMENTS (Continued)
Securities classified in Level 2 of the fair value hierarchy are valued using prices determined by the use of matrix pricing techniques maintained by the pricing vendors of these securities. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices.

NOTE 4 – INTERFUND TRANSACTIONS
A. Advances to the Successor Agency
For fiscal years 1985-86 through 1991-92, the former Agency deferred the required 20% set aside of all tax increment received annually on the original Commons Project Area totaling $638,957, which was recorded as advances to the Low and Moderate Income Housing Assets Fund. No interest was charged on the outstanding balance. This advance was transferred from the former Agency to the Successor Agency on February 1, 2012, when all redevelopment agencies in California ceased to exist. This obligation was included in the FY2022-23 Successor Agency’s Recognized Obligation Payment Schedule (ROPS) and the remaining balance was paid off in FY2022-23.

B. Transfers Between Funds
With Council or City Manager approval, resources may be transferred from one City fund to another. The purpose of the majority of transfers is to support capital projects activities or operating activities of another fund. The following schedule summarized the City’s transfer activities:

Amount
Fund Making Transfers Fund Receiving Transfers Transferred General Fund Gas Tax Fund 4,363,000 $
General Fund Nonmajor Governmental Funds 2,317,647
General Fund Measure J Growth Management Fund 50,000
Traffic Mitigation Gas Tax Fund 521,700
American Rescue Plan Act Fund General Fund 569,033
Nonmajor Governmental Funds 1,462,590
Nonmajor Governmental Funds General Fund 20,000
Gas Tax Fund 405,000
Total interfund transfers 9,708,970 $
C. Current Interfund Balances
Current interfund balances arise in the normal course of business and are expected to be repaid shortly after the end of the fiscal year. At June 30, 2023, the nonmajor Gas Tax 2107.5 special revenue fund owed the General Fund $5,224.

10.2.a
Packet Pg. 205 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
47 NOTE 5 – NOTES AND LOANS RECEIVABLE
Low and Moderate Income Housing Asset Fund
A. Owner-Occupied Housing Rehabilitation Loans
The former Agency administered a housing rehabilitation loan program under which very low and lowincome homeowners were eligible to receive loans up to $60,000 to be used to construct improvements on their homes. The loan was transferred from the former Agency to the City’s Low and Moderate Income Housing Asset major governmental fund and the annual operating grant commitment was transferred to the Successor Agency on February 1, 2012, when all redevelopment agencies in California ceased to exist.

These loans bear three to five percent simple interest, have a fifteen-year term, and are secured by deeds of trust. Payments on the loans may be made monthly or may be deferred and paid at the end of the term or transfer of ownership. At June 30, 2023, principal and interest related to these loans totaled to $283,035, of which the City determined the accrued interest of $123,014 to be unavailable.

B. Grayson Creek Apartments
In fulfillment of its obligation to replace low and moderate-income housing destroyed as part of the Pleasant Hill Downtown Project, the former Agency entered into a loan agreement with Bridge Housing Corporation, a non-profit housing developer. The loan was transferred from the former Agency to the City’s Low and Moderate Income Housing Asset major governmental fund and the annual operating grant commitment was transferred to the Successor Agency on February 1, 2012, when all redevelopment agencies in California ceased to exist. The loan bears three percent simple interest and will mature in year 2032. At June 30, 2023, principal and interest related to this loan totaled to $1,476,973 of which the City determined the accrued interest of $471,973 to be unavailable.

C. Rehabilitation Services of Northern California
On October 17, 2016, the City entered into a Predevelopment Loan Agreement with Rehabilitation Services of Northern California for feasibility studies for constructing a new facility to house its current programs as well as provide long-term supportive housing to low-income seniors for a loan amount not to exceed $236,000. On March 21, 2022, the City approved an additional $500,000 for predevelopment costs. The loan bears 3% simple interest for a loan amount not to exceed $736,000. The loan matures at the earliest of following dates: (1) date of loan default, (2) date of borrower’s abandonment of the housing project or sale or transfer of interest, or (3) fifty-five years after the loan date. At June 30, 2023, principal and interest related to this loan totaled $759,850 of which $23,850 is accrued interest.

D. Hookston Manor Apartments
On December 8, 1998, the City entered into loan agreement with Hookston Senior Associates for the acquisition and rehabilitation of the Hookston Manor Apartments to provide low income seniors with affordable housing. The loan bears no interest and the loan amount is $500,000. The loan matures at the earliest of following dates: (1) date of loan default by the borrower, (2) the expiration of applicable cure periods under the loan agreement, or (3) January 1, 2053. At June 30, 2023, the outstanding balance of the loan receivable is $500,000 and a full allowance was recorded against the balance as the City determined the balance to be uncollectible.

10.2.a
Packet Pg. 206 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
48 NOTE 5 – NOTES AND LOANS RECEIVABLE (Continued)
General Fund
The Friends of the Pleasant Hill Library
On November 30, 2022, the City entered into a loan agreement with The Friends of the Pleasant Hill Library, a 501(c)(3) nonprofit organization, doing business as the Pleasant Hill Library Foundation (Foundation). The purpose of the loan was to fund improvements purchased by the Foundation for the new Pleasant Hill Library. The loan amount is for the amount of $200,000, bears no interest, and to be repaid within 2 years. The funds to repay this loan by the Foundation is expected from the County of Contra Costa. Absent receipt of funds by the Foundation from the County of Contra Costa, the entire loan is due to the City no later than December 1, 2023. On June 30, 2023, the balance of this loan was $100,000.

Successor Agency
Jack’s Restaurant
One property in the downtown area was vacant and in need of remodeling to improve its marketability and appeal to prospective tenants. A prospective tenant, Marcovici Management Group, LLC expressed interest in opening a casual fine dining restaurant, under the trade name Jack’s Restaurant if certain improvements were made to the property. Under the California Community Redevelopment Law, the former Agency was authorized to make rehabilitation loans for the purpose of financing rehabilitation of commercial buildings and structures within the Redevelopment Project area. The former Agency entered into a Façade Loan Agreement with Marcovici Management Group, LLC for $460,000 in order to make improvements to the property. The loan bears one percent simple interest and had a final maturity date on November 25, 2019.

The loan was transferred from the former Agency to the Successor Agency on February 1, 2012, when all redevelopment agencies in California ceased to exist. $100,000 of the loan was forgiven due to Jack’s Restaurant meeting certain criteria. On June 14, 2017, the City and Jack’s Restaurant entered into a settlement agreement on improvements disputes and the loan was adjusted to $330,000. The maturity date of the promissory note was extended to May 1, 2027. At June 30, 2023, the outstanding balance of the note was $135,953.

NOTE 6 – LAND HELD FOR REDEVELOPMENT
The former Agency purchased parcels of land in order to develop or redevelop blighted properties within the redevelopment areas. Land held for redevelopment in the amount of $191,049 and $86,100 were transferred from the former Agency to the City’s Low and Moderate Income Housing Asset major governmental fund and the Successor Agency, respectively, on February 1, 2012, when all redevelopment agencies in California ceased to exist. There were no additions or sales activities for the year ended June 30, 2023. At June 30, 2023, the land held for redevelopment was $191,049 and $86,100 for the City’s Low and Moderate Income Housing Asset major governmental fund and the Successor Agency, respectively.

10.2.a
Packet Pg. 207 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
49 NOTE 7 – CAPITAL ASSETS
A. Capital Asset Additions and Retirements
A summary of changes in capital assets for the year ended June 30, 2023 is as follows:

Balance, Balance,
June 30, 2022 Additions Retirements Transfers June 30, 2023 Governmental activities
Capital assets, not being depreciated:

Land and improvements 3,406,821 $ - $ - $ - $ 3,406,821 $ Construction in progress 28,369,328 4,230,506 - (31,065,693) 1,534,141 Total capital assets, not being depreciated 31,776,149 4,230,506 - (31,065,693) 4,940,962 Capital assets, being depreciated:

Buildings and improvements 15,108,347 - - 31,065,693 46,174,040 Equipment and furniture 11,211,877 1,622,452 - - 12,834,329 Streets and roads 68,561,771 - - - 68,561,771
Curbs and gutters 16,909,216 - - - 16,909,216
Storm drains 10,963,119 - - - 10,963,119
Street lights 4,149,266 - - - 4,149,266
Traffic control devices 6,731,698 - - - 6,731,698
Total capital assets, being depreciated 133,635,294 1,622,452 - 31,065,693 166,323,439 Less accumulated depreciation for:

Buildings and improvements (9,928,758) (283,275) - - (10,212,033) Equipment and furniture (8,863,065) (844,283) - - (9,707,348) Streets and roads (33,628,782) (1,237,142) - - (34,865,924) Curbs and gutters (10,349,290) (344,867) - - (10,694,157) Storm drains (7,220,743) (375,717) - - (7,596,460)
Street lights (1,570,799) (138,171) - - (1,708,970)
Traffic control devices (2,923,099) (224,166) - - (3,147,265) Total accumulated depreciation (74, (3,447,621) 484,536) - - (77,932,157) Total capital assets, being depreciated, net 59,150,758 (1,825,169) - 31,065,693 88,391,282 Governmental activities, capital assets, net 90,926,907 $ 2,405,337 $ - $ - $ 93,332,244 $ Business-type activity
Capital assets, being depreciated:

Water system infrastructure 781,443 $ 607,248 $ - $ - $ 1,388,691 $ Less accumulated depreciation for:

Water system infrastructure (341,503) (12,268) - - (353,771) Total capital assets, being depreciated, net 439,940 594,980 - - 1,034,920 Business-type activity, capital assets, net 439,940 $ 594,980 $ - $ - $ 1,034,920 $ B. Construction in Progress
Project
Expended to June
30, 2023
Gregory Lane Storm Drain Project 1,380,155 $
Contra Costa Blvd. Harriet-Viking Project 143,125
Taylor Blvd - Civic Drive Intersection and
Pathway Improvement Project
Total Construction in Progress 1,534,141 $
10,861

10.2.a
Packet Pg. 208 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
50 NOTE 7 – CAPITAL ASSETS (Continued)
C. Depreciation Allocation
Depreciation expense was charged to functions and programs based on their usage of the related assets. For the year ended June 30, 2023, depreciation expense was charged to each function or program for governmental and the business-type activities as follows:

Governmental activities
General government 385,995 $
Public safety 645,561
Transportation 2,416,065
Total depreciation expense - governmental activities 3,447,621 $ Business-type activity
Diablo Vista Water 12,268 $
Total depreciation expense - business-type activities 12,268 $ NOTE 8 –LONG-TERM DEBT
A. Composition and Changes
A summary of changes in long-term debt of the City’s governmental activities for the year ended June 30, 2023 is as follows:

Amount
Balance Balance Due Within
June 30, 2022 Retirements June 30, 2023 One Year
2020 Lease Financing Private Placement, New Library
Interest 1.75% per annum, due 6/1/2032 22,773,691 $ (2,102,993) $ 20,670,698 $ 2,139,956 $ A summary of changes in long-term debt of the Successor Agency for the year ended June 30, 2023 is as follows:

Amount
Balance Balance Due Within
June 30, 2022 Retirements June 30, 2023 One Year
Special Tax Refunding Bonds,
Subordinated Series 2002 3,950,000 $ ( $ 3,665,000 285,000) $ 300,000 $

10.2.a
Packet Pg. 209 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
51 NOTE 8 –LONG-TERM DEBT (Continued)
B. Summary of Debt Terms
2020 Lease Financing Private Placement, New Library
The City is financing the construction of a new library building, a portion of the Oak Park Monticello Backbone Infrastructure Improvements, and incidental expenses in the amount of $26,396,078 through a lease financing private placement loan with Bank of the West executed on August 1, 2020. The interest rate on the private placement is 1.75% per annum. Payments are to be made semiannually on December 1 and June 1 with final maturity on June 1, 2032. The loan’s debt service payments will be funded with Measure K revenues.

The financing is being provided through a lease/leaseback structure. Under this structure, the City leases real property consisting of City Hall, Police Headquarters Building and Downtown Parking Garage to the Authority in return for a one-time site lease payment equal to the proceeds of the lease that were received on the closing date from Bank of the West. This amount is being used to finance the Project and pay the costs of issuance of the transaction. The Authority is a separate government entity authorized to assist with the financing or refinancing of certain capital public improvements within the City. As of June 30, 2023, total debt service requirements remaining on the Lease Financing are $22,431,346.

Special Tax Refunding Bonds, Subordinated Series 2002
On November 20, 2002, the City assisted the Pleasant Hill Downtown Community Facilities District No. 1 (District) by issuing $7,290,000 of Special Tax Refunding Bonds, Subordinated Series 2002 (Special Tax Series 2002 Bonds) to refund Special Tax Bonds, Series 1998A. Interest ranged from 2.4% to 6.0% and is payable semi-annually on March 1 and September 1, and principal is payable each September 1 with final maturity on September 1, 2032. Property tax revenues allocated to the former Agency are pledged for the repayment of the Special Tax Series 2002 Bonds.

The outstanding principal of the Special Tax Series 2002 Bonds were transferred from the former Agency to the Successor Agency on February 1, 2012, when all redevelopment agencies in California ceased to exist. Total debt service requirements remaining on the Special Tax Series 2002 bonds are $4,570,654 payable through September 1, 2032. The redevelopment property tax revenues recognized during the year ended June 30, 2023 were $2,169,672 as against the total debt service payments paid by the Successor Agency of $460,373.

10.2.a
Packet Pg. 210 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
52 NOTE 8 – LONG-TERM DEBT (Continued)
C. Debt Service Requirements
Annual debt service requirements are shown below for the City’s governmental activities and the Successor Agency:

Governmental Activities:

For the Year
Ending June 30, Principal Interest
2024 2,139,956 $ 352,416 $
2025 2,177,569 314,803
2026 2,215,843 276,528
2027 2,254,790 237,582
2028 2,294,422 197,950
2029-2032 9,588,118 381,369
$ 1,760,648 20,670,698 $
Successor Agency:

For the Year
Ending June 30, Principal Interest
2024 300,000 $ 161,901 $
2025 310,000 147,853
2026 325,000 133,228
2027 340,000 117,914
2028 355,000 101,907
2029-2033 2,035,000 242,851
$ 905,654 3,665,000 $
Special Tax Series 2002 Bonds
Lease Financing Private Placement - New
Library Loan
D. Events of Default and Acceleration Clauses
Generally, the City and Successor Agency are considered to be in default if the City or Successor Agency fail to pay the principal of and interest on the outstanding long-term debt when become due and payable.

For the Lease Financing Library Loan, if an event of default has occurred and is continuing, the principal of the debt, together with the accrued interest, may be declared due and payable immediately. For the Special Tax Series 2002 Bonds, there are no provision allowing for the acceleration of the debt service payments in the event of default.

10.2.a
Packet Pg. 211 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
53 NOTE 9 – NET POSITION AND FUND BALANCES
Net position is measured on the full accrual basis while fund balances are measured on the modified accrual basis.

A. Net Position
The government-wide, proprietary, and fiduciary fund financial statements utilize a net position presentation. Net position is categorized as follows:

Net Investment in Capital Assets – This category groups all capital assets including, infrastructure, into one component of net position. Accumulated depreciation and outstanding balances of debt and any debt-related deferred outflows and inflows of resources that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.

Restricted – This category consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Enabling legislation authorizes the City to assess, levy, charge, or otherwise mandate payment of resources and includes a legally enforceable requirement that those resources be used only for the specific purposes stipulated in the legislation. A legally enforceable enabling legislation restriction is one that a party external to a government—such as citizens, public interest groups, or the judiciary - can compel a government to honor. At June 30, 2023, the government-wide statement of net position reported restricted net position of $16,507,795 in governmental activities, of which $944,287 are restricted by enabling legislation.

Unrestricted – This category represents net position of the City that does not meet the definition of “net investment in capital assets” or “restricted.”
B. Fund Balances
As prescribed by GASB Statement No. 54, governmental funds report fund balance in classifications based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in the funds can be spent. Fund balances for governmental funds are made up of the following:

Nonspendable Fund Balance – includes amounts that are (a) not in spendable form, or (b) legally or contractually required to be maintained intact. The “not in spendable form” criterion includes items that are not expected to be converted to cash, i.e., prepaid items. There were no funds with nonspendable fund balance as of June 30, 2023.

Restricted Fund Balance – includes amounts that can be spent only for the specific purposes stipulated by external resource providers, constitutionally or through enabling legislation. Restrictions may effectively be changed or lifted only with the consent of resource providers.

Committed Fund Balance – includes amounts that can only be used for the specific purposes determined by a formal action of the City’s highest level of decision-making authority. The City Council is the highest level of decision-making authority for the City that can commit fund balances by adoption of an ordinance.

Commitments may be changed or lifted only by the City Council taking the same formal action that imposed the constraint originally.

10.2.a
Packet Pg. 212 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
54 NOTE 9 – NET POSITION AND FUND BALANCES (Continued)
Assigned Fund Balance – comprises amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by the City Council or the City Manager to whom the City Council has delegated the authority to assign amounts to be used for specific purposes by adoption of a resolution.

Unassigned Fund Balance – is the residual classification for the General Fund and includes all amounts not contained in the other classifications. Unassigned amounts are technically available for any purpose. Other governmental funds may only report a negative unassigned balance that was created after classification in one of the other four fund balance categories.

In circumstances when an expenditure may be made for which amounts are available in multiple fund balance classifications, fund balance is depleted in the order of restricted, committed, assigned, and unassigned.

The City Council has established reserve policy levels for contingency and pension benefit purposes. At June 30, 2023, $10,044,835 is reported as part of General Fund’s assigned fund balance.

Fund balances for all major and nonmajor governmental funds as of June 30, 2023, were classified as follows: Measure J Low and Moderate Other
Traffic Growth Income Governmental
General Mitigation Management Gas Tax Housing Asset Funds Total Restricted for:

General government - $ - $ - $ - $ - $ 891,648 $ 891,648 $ Public safety - - - - - 654,172 654,172
Transportation - 278,748 1,444,146 3,414,108 - 419,275 5,556,277 Community development - - - - 5,153,218 2,300,664 7,453,882 Capital projects - new library & others 491,263 - - - - 226,025 717,288 Subtotal 491,263 278,748 1,444,146 3,414,108 5,153,218 4,491,784 15,273,267 Committed to:

Capital projects - - - - - 1,661,214 1,661,214
Assigned to:

Contingency reserve 10,044,835 - - - - - 10,044,835
Encumbrances - others 772,631 - - - - - 772,631
Capital projects 3,966,249 - - 2,788,477 - 685,414 7,440,140 Subtotal 14,783,715 - - 2,788,477 - 685,414 18,257,606
Unassigned: - 2,968,559 - - - (5,224) 2,963,335
Total 18,243,537 $ 278,748 $ 1,444,146 $ 6,202,585 $ 5,153,218 $ 6,833,188 $ 38,155,422 $ NOTE 10 – EMPLOYEE BENEFITS
A. Sick Leave Conversion Benefits
Employees hired before certain dates (ranging from August 2011 to November 2011) as stated in the applicable Memorandum of Understanding are entitled to a sick leave conversion benefit. Specific terms of the conversion differ for each employee group. In general, when employees with more than 20 years of service retire, they may convert the net present value of their unused sick leave hours to a Retirement Health Savings plan in accordance with the terms of their bargaining group’s Memorandum of Understanding. A scaled down conversion plan exists for employees with a service retirement of 15 to 19 years of City employment for certain bargaining groups. Employees of the Police Officers Association bargaining groups were provided limited reimbursements for medical insurance based on the unused sick leave hours on the employee’s date of retirement. For the year ended June 30, 2023, the City provided medical benefits for 2 retirees from the converted sick leave bank and total benefits expended on a pay-as-you-go basis and amounted to $31,222.

10.2.a
Packet Pg. 213 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
55 NOTE 10 – EMPLOYEE BENEFITS (Continued)
B. Deferred Compensation Plan
City employees may defer a portion of their compensation under a City sponsored Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457. Under this plan, participants are not taxed on the deferred portion of their compensation until it is distributed to them as defined by the plan.

The laws governing deferred compensation plan assets require plan assets to be held by a trust for the exclusive benefit of plan participants and their beneficiaries. Since the assets held under these plans are not the City's property and are not subject to City control, they have been excluded from these financial statements.

The City has a contract with International City Managers' Association (ICMA) to manage and invest the assets of the Deferred Compensation Plan; ICMA pools the assets of the Deferred Compensation Plan with those of other participants and does not make separate investments for employees.

The City's contract with ICMA was amended January 1, 1997 to substitute a separate trust for the City as owner of the assets in the plan, with the City becoming a trustee, but with no power over investment decisions. As a result, the assets in the Deferred Compensation Plan are not subject to claims by creditors of the City and are not reflected in the City's financial statements.

C. CalPERS Safety and Miscellaneous Employees Plans
Plan Description
The City participates in a cost-sharing multiple-employer pension plan that is administered by the CalPERS.

All qualified permanent and probationary employees are eligible to participate in the City’s CalPERS plan.

The City participates in six rate plans within the Miscellaneous and Safety Risk Pools of the CalPERS Public Agency Cost-Sharing Plan as follows:

CalPERS Plan Participants
Miscellaneous Plan All non-sworn employees who began employment between July 1, 1963 and April 15, 2012
Miscellaneous Tier 2 Plan
All non-sworn employees who began employment between April 16, 2012 and December 31, 2012, or on or after January 1, 2013 but were previously members of CalPERS through another agency.

Miscellaneous PEPRA
Plan
All non-sworn employees who began employment on or after January 1, 2013 but were not previously members of CalPERS through another agency.

Safety Plan All sworn employees who began employment between July 1, 1963 and April 15, 2012
Safety Tier 2 Plan
All sworn employees who began employment between April 16, 2012 and December 31, 2012, or on or after January 1, 2013 but were previously members of CalPERS through another agency.

Safety PEPRA Plan All sworn employees who began employment on or after January 1, 2013 but were not previously members of CalPERS through another agency.

10.2.a
Packet Pg. 214 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
56 NOTE 10 – EMPLOYEE BENEFITS (Continued)
CalPERS acts as a common investment and administrative agent for its participating member employers.

Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov.

CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on a final average compensation period of 12 months or 36 months. The cost of living adjustments for the CalPERS plans are applied as specified by the Public Employees’ Retirement Law. The California Public Employees’ Pension Reform Act (PEPRA), which took effect in January 2013, changes the way CalPERS retirement and health benefits are applied, and places compensation limits on members. As such, members who established CalPERS membership on or after January 1, 2013 are known as “PEPRA” members.

The CalPERS provisions and benefits in effect at June 30, 2023 for each rate plan are summarized as follows:

Miscellaneous PEPRA
Miscellaneous Second Miscellaneous
Plan Tier Plan Plan
Hire date Between
July 1, 1963 and
April 15, 2012
Between
April 16, 2012 and
December 31, 2012
On or after
January 1, 2013
Benefit formula 2% @ 55,
2% @ 60 2% @ 60 2% @ 62
Benefit vesting schedule 5 yrs of service 5 yrs of service 5 yrs of service Benefit payments monthly for life monthly for life monthly for life Retirement age 55 - 60 60 62
Required employee contribution rates 7.00% 7.00% 6.75%
Required employer contribution rates - normal cost 10.87% 8.63% 7.47% Required employer contribution - annual unfunded
accrued liability (UAL) $1,803,101 $8,023 $6,583
(*) Employees whose employment date began on or after January 1, 2013 but were previously members of CalPERS through other agency.
(**) Employees whose employment date began on or after January 1, 2013 but were not previously members of CalPERS through other agency.

Miscellaneous
Safety PEPRA
Safety Second Safety
Plan Tier Plan Plan
Hire date Between
August 1, 1969 and
April 15, 2012
Between
April 16, 2012 and
December 31, 2012
On or after
January 1, 2013
Benefit formula 2% @ 50,
3% @ 50 3% @ 55 2.7% @ 57
Benefit vesting schedule 5 yrs of service 5 yrs of service 5 yrs of service Benefit payments monthly for life monthly for life monthly for life Retirement age 50 55 57
Required employee contribution rates 9.00% 9.00% 13.00% Required employer contribution rates - normal cost 23.75% 20.64% 12.78% Required employer contribution - annual unfunded
accrued liability (UAL) $1,999,422 $4,876 $15,650
(*) Employees whose employment date began on or after January 1, 2013 but were previously members of CalPERS through other agency.
(**) Employees whose employment date began on or after January 1, 2013 but were not previously members of CalPERS through other agency.

Safety

10.2.a
Packet Pg. 215 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
57 NOTE 10 – EMPLOYEE BENEFITS (Continued)
Contributions
For the year ended June 30, 2023, the City’s contractually required contributions, which are actuarially determined, were as follows:

Miscellaneous - All Plans 2,402,931 $
Safety - All Plans 3,208,407
Total 5,611,338 $
Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.

In June 2022, the City established a Section 115 irrevocable trust with the Public Agency Retirement Services (PARS). The Trust Account allows more control and flexibility in investment allocations compared to the City’s portfolio which is restricted by State regulations to fixed income instruments. On June 27, 2022, the City made a one-time initial contribution of $1,000,000 into the trust. The City will consider making additional contributions to the Trust based on the net position of the General Fund recommended by the City Manager and Finance Manager. The amount will be based on unassigned General Fund Balance when revenues exceed costs (excluding Measure K funds) in the audited financial statements.

The recommended contribution amount will be based on the higher of 10% or $50,000 of the excess unassigned General Fund Balance. At June 30, 2023, the City reported the account balance of $1,044,835 as restricted cash and investments with trustees in the General Fund.

Net Pension Liability
At June 30, 2023, the City’s proportionate share of the net pension liability of Miscellaneous Plans and Safety Plans were 0.20406%, or $23,570,846 and 0.24662% or $28,486,109, respectively. The total net pension liability for the City was $52,056,955.

The City’s net pension liability was based on the proportionate shares (in dollars) determined by CalPERS based on individual actuarial measurements specific to each rate plan in the Miscellaneous and the Safety Risk Pools. The City’s total proportionate share of the cost-sharing plan pension amounts is the sum of the pension amounts allocated to each of the City’s Miscellaneous and Safety rate plans. The City’s net pension liability is measured as of June 30, 2022, using annual actuarial valuations as of June 30, 2021 rolled forward to June 30, 2022 using standard update procedures. The City’s proportions of the net pension liability for the Miscellaneous Plans and Safety Plans were actuarially determined as of the valuation dates.

The City’s proportionate share in the percentage of the net pension liability for the Miscellaneous Plans decreased by 0.0463% while that for the Safety Plans decreased by 0.0399%, from the previous measurement date.

10.2.a
Packet Pg. 216 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
58 NOTE 10 – EMPLOYEE BENEFITS (Continued)
Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources For the year ended June 30, 2023, the City recognized pension expense/(income) of ($2,314,254). At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pension from the following sources:

Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 5,611,338 $ - $ Change in assumptions 5,287,588 -
Differences between expected and actual experience 1,652,286 626,366 Net differences between projected
and actual earnings on plan investments 8,815,908 -
Changes in employer's proportion 1,375,449 2,218,565
Difference between the employer's contributions
and the employer's proportionate share of contributions - 2,265,907 $ 5,110,838 22,742,569 $
$5,611,338 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:

For the Year Ending June 30,
Deferred
Outflows/(Inflows)
of Resources
2024 2,861,069 $
2025 2,435,417
2026 1,339,090
2027 5,384,817
$ 12,020,393

10.2.a
Packet Pg. 217 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
59 NOTE 10 – EMPLOYEE BENEFITS (Continued)
Actuarial Assumptions
A summary of the actuarial assumptions and methods used to calculate the total pension liability as of June 30, 2022 are as follows:

Valuation date June 30, 2021
Measurement date June 30, 2022
Measurement period July 1, 2021 to June 30, 2022
Actuarial cost method Entry-age normal cost method
Actuarial assumptions:

Discount rate 6.90%
Inflation 2.30%
Salaries increase Varies by entry age and service
Mortality Derived using CalPERS Membership Data for all funds (1) Post Retirement Benefit Increase The lessor of contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on Purchasing Power applies,

2.30% thereafter.
(1) The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study from 2001 to 2019. Pre-retirement and post-retirement mortality rates include generational mortality improvements using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on the table, refer to the 2021 CalPERS Experience Study available on the CalPERS website.

All other actuarial assumptions used in the June 30, 2021 valuation were based on the 2021 CalPERS Experience Study for the period 2001 to 2019, including updates to salary increase, mortality and retirement rates. Further details of the 2021 CalPERS Experience Study can be found on the CalPERS website under Forms and Publications.

Change of Assumptions
During measurement period 2022, the discount rate was reduced from 7.15% to 6.90%, inflation rate was reduced from 2.50% to 2.30%, and demographic assumptions were changed in accordance with the 2021 CalPERS Experience Study.

Discount Rate
The discount rate used to measure the total pension liability was 6.90 percent for each Plan. The projection of cash flows used to determine the discount rate assumed that the contributions from plan members will be made at the current member contributions rates and that the contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

10.2.a
Packet Pg. 218 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
60 NOTE 10 – EMPLOYEE BENEFITS (Continued)
In determining the long-term expected rate of return, CalPERS took into account both short-term and longterm market return expectations. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows:

Assumed Asset Real Return
Asset Class Allocation (a)(b)
Global Equity - Cap-weighted 30.0% 4.54%
Global Equity - Non-Cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
(a) An expected inflation rate of 2.30% used for this period. (b) Figures are based on the 2021 Asset Liability Management study.

Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the net pension liability of the City’s proportionate share of the net pension liability of the plan as of the measurement date, calculated using the discount rate of 6.90 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (5.90 percent) or 1 percentage-point higher (7.90 percent) than the current rate:
-1% (5.90%) Current (6.90%) +1% (7.90%)
Net Pension Liability $ 52,056,955 75,783,207 $ 32,609,135 $ Discount Rate
Pension Plan Fiduciary Net Position
Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

10.2.a
Packet Pg. 219 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
61 NOTE 11 – RISK MANAGEMENT
Municipal Pooling Authority
The City is a member of the Municipal Pooling Authority (MPA), a joint powers agency that provides coverage against the following types of loss risks:

Type of Coverage Deductible Coverage Limits
Liability Program $25,000 $34,500,000
Vehicle Physical Damage $3,000 for police vehicles $250,000 $2,000 for all others
Workers' Compensation No deductible Statuory excess of $50,000,000 All Risk Fire & Property Including Flood $25,000 $1,000,000,000 Boiler & Machinery $10,000 $100,000,000
Cyber Liability $50,000 $2,000,000
Public Entity Pollution Liability $250,000 $2,000,000
Government Crime Coverage $2,500 $5,000,000
Employment Liability $50,000 $2,000,000
The MPA is governed by the MPA Board consisting of representatives from member municipalities. The MPA Board controls the operations of the MPA, including selection of management and approval of operating budgets, independent of any influence by member municipalities beyond their representation on the MPA Board. The City's premium payments to the MPA are calculated in accordance with formulas established by the MPA. Actual surpluses or losses are shared according to a formula developed from overall loss costs and spread to member entities on a percentage basis after a retrospective rating. Financial statements may be obtained from MPA at 1911 San Miguel Drive, Suite 200, Walnut Creek, CA 94596.

For the year ended June 30, 2023, the City paid MPA net premiums of $1,700,600.

Liability for Uninsured Claims
Municipalities are required to record their liability for uninsured claims and to reflect the current portion of this liability as expenditure in the fund financial statements. The City has insurance coverage for such claims, but it has retained the risk for the deductible or uninsured portion of these claims.

The City's liability for uninsured claims is incurred and expected to be repaid within the next fiscal year and was recorded under accounts payable and accrued liabilities in the General Fund. Settlements have not exceeded insurance coverage in the past five years. Changes in the balances of uninsured claims liabilities during the years ended June 30, 2023 and 2022 are as follows:
2023 2022
Uninsured claims, beginning of year 96,237 $ 81,811 $
Incurred claims and changes in estimate 75,605 96,012
Claim payments (96,229) (81, 586)
Uninsured claims, end of year 75,613 $ 96,237 $

10.2.a
Packet Pg. 220 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Notes to Basic Financial Statements
For the Year Ended June 30, 2023
62 NOTE 12 – COMMITMENTS AND CONTINGENCIES
A. Contingent Liabilities
The City is subject to litigation arising in the normal course of business. In the opinion of the City Attorney there is no pending litigation which is likely to have a material adverse effect on the financial position of the City.

The City participates in Federal and State grant programs. These programs are audited by the City's independent accountants in accordance with the provisions of the Federal Single Audit Act as amended in 1996, Uniform Guidance and applicable State requirements. These programs are subject to further examination by the grantors, and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

B. Encumbrances
Under encumbrance accounting, purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary integration in all budgeted funds.

Unencumbered operating appropriations lapse at year-end and may be reappropriated in the following year.

Encumbrances outstanding at year-end are not accounted for as expenditures and liabilities, but as part of fund balance.

As of June 30, 2023, the City had outstanding encumbrances for the following governmental funds by fund balance categories:

Fund Balance
Amount Classification
General Fund 491,263 $ * Restricted
General Fund 905,277 Assigned
Gas Tax 811,054 Restricted
Gas Tax 1,614,846 Assigned
Nonmajor Governmental Funds 434,902 Restricted
Nonmajor Governmental Funds 306,841 Committed
Total encumbrances 4,564,183 $
* General fund restricted fund balance relates to encumbrances for construction commitments that remain outstanding as of June 30, 2023 for the New Library construction project.

10.2.a
Packet Pg. 221 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) Fiscal year 2022-23 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 Measurement period 2021-22 2020-21 2019-20 2018-19 2017-18 2016-17 2015-16 2014-15 2013-14 City's proportion of the net pension liability (NPL) 0.45068% 0.53688% 0.41357% 0.42149% 0.41428% 0.40312% 0.40112% 0.39264% 0.39231% City's proportionate share of the NPL 52,056,955 $ 29,035,811 $ 44,998,297 $ 43,189,907 $ 39,921,703 $ 39,978,270 $ 34,709,774 $ 26,950,065 $ 24,412,267 $ City's covered payroll 12,420,321 $ 11,974,531 $ 11,569,693 $ 11,527,431 $ 11,198,394 $ 10,760,992 $ 10,723,402 $ 10,610,000 $ 10,107,834 $ City's proportionate share of the NPL
as a percentage of its covered payroll 419.13% 242.48% 388.93% 374.67% 356.49% 371.51% 323.68% 254.01% 241.52% Plan's fiduciary net position as a percentage of the
Plan's total pension liability 76.68% 88.29% 75.10% 75.26% 75.26% 73.31% 74.06% 78.40% 80.43% Note to schedule:
*
Benefit Changes - The figures above do not include any liability impact that may have resulted from plan changes, which occurred after the June 30, 2021 valuation date, as they have minimal cost impact. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Change in assumptions - During measurement period 2014, the discount rate was 7.50%. During measurement period 2015, the discount rate was increased from 7.50 percent to 7.65 percent. There was no change assumptions during measurement period 2016. During measurement period 2017, the discount rate was reduced from 7.65 percent to 7.15 percent. During measurement period 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in assumptions during measurement periods 2019, 2020, or 2021. During measurement period 2022, the discount rate was reduced from 7.15% to 6.90%, inflation rate was reduced from 2.50% to 2.30%, and demographic assumptions were changed in accordance with the 2021 CalPERS Experience Study.

Fiscal year ended June 30, 2015 was the first year of implementation of GASB Statement No. 68, therefore only nine years of information is shown.

CITY OF PLEASANT HILL
Required Supplementary Information (Unaudited)
Schedule of the City's Proportionate Share of the Net Pension Liability Last Nine Fiscal Years*
63 10.2.a
Packet Pg. 222 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) Fiscal Year Ended 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Contractually required contributions
(actuarially determined) (CRC) 5,611,338 $ 5,263,128 $ 4,664,449 $ 4,191,149 $ 3,701,227 $ 3,127,536 $ 2,771,458 $ 2,419,864 $ 1,797,824 $ 1,787,116 $ Contributions in relation to the CRC (5,611,338) (5,263,128) (4,664,449) (4,191,149) (3,701,227) (3,127,536) (2,771,458) (2,419,864) (1,797,824) (1,787,116) Contribution deficiency (excess) $ - - $ - $ - $ - $ - $ - $ - $ - $ - $ Covered payroll $ 12,420,321 12,687,544 $ 11,974,531 $ 11,569,693 $ 11,527,431 $ 11,198,394 $ 10,760,992 $ 10,723,402 $ 10,610,000 $ 10,107,834 $ Contributions as a percentage of
covered payroll 44.23% 42.38% 38.95% 36.23% 32.11% 27.93% 25.75% 22.57% 16.94% 17.68% ADC for fiscal year June 30, 2023
Actuarial valuation date June 30, 2020
Actuarial cost method Entry-Age Normal Cost Method
Asset valuation method Actuarial value of assets
Inflation 2.50%
Salary increases Varies by entry age and services
Payroll growth 2.75%
Investment rate of return 7.00%, net of pension plan investment expenses and administrative expenses, includes inflation.

Retirement age The probabilities of retirement are based on the 2017 CalPERS Experience Study for the period 1997 to 2015.

Mortality
The actuarial methods and assumptions used to set the actuarially determined contributions for the fiscal year ended June 30, 2023 were as follows:

The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries.

CITY OF PLEASANT HILL
Required Supplementary Information (Unaudited)
Schedule of City Contributions
Last Ten Fiscal Years
64 10.2.a
Packet Pg. 223 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Other Nonmajor Governmental Funds
Year Ended June 30, 2023
65 All funds not considered as major funds on the Fund Financial Statements are consolidated in one column entitled “Other Governmental Funds.” These nonmajor funds are identified and included in this supplementary section and includes all of the City’s Special Revenue Funds and Capital Project Funds.

SPECIAL REVENUE FUNDS:

The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are restricted, committed or assigned to expenditures for specified purposes other than debt service or capital projects.

Traffic Safety Fund - accounts for fines collected from misdemeanor traffic violations involving a moving vehicle. These funds are used to provide crossing guards at major streets near elementary schools.

Gas Tax 2107.5 Fund - accounts for gas tax apportioned by the State to cities based on population. This fund is used for engineering and administrative costs only.

Unified Street Lighting Fund - accounts for an allocation of property taxes used to provide street lighting.

Parkland Dedication Fund – accounts for Parkland dedication fees paid by developers, which are distributed quarterly to the Pleasant Hill Recreation and Park District for parkland purposes.

Commercial Landscaping and Lighting District 20 Fund - accounts for assessments on commercial property that pay for landscape maintenance, street lighting and sidewalk repair costs within commercial districts.

NPDES Fund - accounts for storm water utility fees assessed to property owners citywide on their property tax bills. The funds are used to pay for the “National Pollution Discharge Elimination System,” mandated by the Federal government to prevent further polluting of streams and bays.

Supplemental Law Enforcement Service Fund - accounts for funds allocated by the State for front-line municipal police services.

Waste Management/Recycling Fund - accounts for activities to implement AB939, which mandates a decrease in the volume of landfill waste, as well as for household hazardous waste programs.

Police Special Services Fund - accounts for asset forfeitures from drug-related convictions. These funds may only be used for drug-related education and enforcement activities.

Park and Recreation Fund - accounts for funds received from the Pleasant Hill Recreation and Park District and from any park-related revenue source. Proceeds will be used for park-related and recreationrelated purposes.

Landscaping and Lighting Assessment District 22 Fund - accounts for assessments received from Grayson Woods and Gallery Walk property owners to pay for landscaping and lighting costs in these developments.

Senior Van Services Fund - accounts for donations and fare revenues, as well as City-paid expenses of operating a van service for transporting non-driving Pleasant Hill seniors to medical and dental appointments in the local area, shopping within Pleasant Hill, and to the Pleasant Hill Senior Center for social activities.

10.2.a
Packet Pg. 224 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Other Nonmajor Governmental Funds
Year Ended June 30, 2023
66 CLEEP (California Law Enforcement Equipment Program) Grant Fund - accounts for State grant funds to be used for law enforcement-related equipment purchases.

Vehicle Abatement Fund - accounts for funds received quarterly from the County of Contra Costa for vehicle abatement (based on the number of vehicles abated), as well as an annual year-end transfer from the General Fund to cover expenses beyond the amount of the County's contribution. On an annual basis, 40% of the Code Enforcement investigator's salary and benefits are charged to this fund to approximate the amount of time spent on vehicle abatement.

Affordable Housing Fund - accounts for fees received from developers in lieu of providing affordable housing in their project, as is otherwise required. The City is developing a plan to use these funds to provide assistance to low-income families and individuals in acquiring housing.

Traffic Congestion Relief Fund – accounts for the funds received from the State as a result of AB 2928 and SB 1662 (Statutes of 2000) and the related expenditures. These funds are to be used for maintenance, rehabilitation, and reconstruction projects for public streets and roads.

Disability Access Fund - accounts for funds collected through $1 fee from business license application and renewal for the purpose of increasing certified access specialist services and facilitate compliance with construction-related disability requirements.

General Plan Fee Fund - accounts for the accumulation of revenue levied on building permits for payment of expenditures related to the City’s General Plan Update and Housing Element Update.

HCD Housing Grant Fund - accounts for housing related activities for the City. The fund supports the update of the City of Pleasant Hill Housing Element Update required by the State of California and also supports the streamlining of the permitting of various types of housing projects throughout the City. These funds are supported by the State of California Department of Housing and Community Development grants.

CAPITAL PROJECTS FUNDS:

Capital Projects Funds account for the financial resources that are restricted or committed to expenditure for capital outlays, including the acquisition or construction of capital facilities and other capital assets.

Capital Outlay Fund - also known as Bedroom Tax Fund. Accounts for acquiring, building, improving or expanding public property and facilities.

Computer Technology Replacement Fund - accounts for scheduled and unscheduled replacement of computer-related technology (such as servers, computer, printers, etc.) for City Hall and the Corporation Yard. A flat amount is transferred from General Fund annually for that purpose.

Public Educational and Governmental Access Capital Grant Fund (PEG) - accounts for PEG grant revenues to be used to fund capital costs associated with acquiring PEG capital equipment Vehicles and Equipment Replacement Fund - accounts for acquiring City vehicles, and communication gear, and is funded by General Fund transfers.

10.2.a
Packet Pg. 225 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Other Nonmajor Governmental Funds
Year Ended June 30, 2023
67 Police Technology Fund - accounts for scheduled and unscheduled replacement of radios, copiers, and computer-related technology (such as servers, computers, printers, etc.) for the Police Department.

Annually, a flat amount is transferred from General Fund for that purpose.

Capital Projects Fund - accounts for making capital improvements and funding large maintenance projects.

10.2.a
Packet Pg. 226 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2023
Special Revenue Funds
Commercial
Landscaping
Gas Tax Unified Street Parkland and Lighting
Traffic Safety 2107.5 Lighting Dedication District 20 NPDES Assets:

Cash and investments:

Held in City Treasury $ - 48,283 $ 899,555 $ 41 $ $ 1,734,801 228,591 $ Receivables:

Accounts and other - - - - - 118,187
Interest - 174 7,497 - 2,820 9,195
Total assets 48,457 $ - $ 907,052 $ 41 $ 231,411 $ 1,862,183 $ Liabilities and fund balances:

Liabilities:

Accounts payable and accrued liabilities $ - - $ 15,404 $ 41 $ 24,737 $ 88,798 $ Due to other funds - 5,224 - - - -
Total liabilities - 5,224 15,404 41 24,737 88,798
Fund balances:

Restricted 48,457 - 891,648 - 206,674 1,157,971
Committed - - - - - -
Assigned - - - - - 615,414
Unassigned - (5,224) - - - -
Total fund balances (deficits) 48,457 (5,224) 891,648 - 206,674 1,773,385 Total liabilities and fund balances 48,457 $ - $ 907,052 $ 41 $ 231,411 $ 1,862,183 $ 68 10.2.a
Packet Pg. 227 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2023
Special Revenue Funds
Supplemental Landscaping
Law Waste and Lighting
Enforcement Management/ Police Special Park and Assessment Senior Van CLEEP Vehicle Services Recycling Services Recreation District 22 Services Grant Abatement $ 412,687 385,454 $ 64,152 $ 2 $ 94,661 $ 15,791 $ - $ 152,375 $ - - - - - - - -
3,433 3,205 529 - 811 123 - -
$ 416,120 388,659 $ 64,681 $ 2 $ 95,472 $ 15,914 $ - $ 152,375 $ $ 2,957 - $ - $ - $ 1,226 $ - $ - $ - $
- - - - - - - -
2,957 - - - 1,226 - - -
413,163 388,659 64,681 2 94,246 15,914 - 152,375
- - - - - - - -
- - - - - - - -
- - - - - - - -
413,163 388,659 64,681 2 94,246 15,914 - 152,375
$ 416,120 388,659 $ 64,681 $ 2 $ 95,472 $ 15,914 $ - $ 152,375 $ (Continued)
69 10.2.a
Packet Pg. 228 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) Traffic
Affordable Congestion Disability General HCD Housing
Housing Relief Fund Access Plan Fee Grant
Assets:

Cash and investments:

Held in City Treasury $ 118,355 579,915 $ 74,034 $ 127,806 $ - $ Receivables:

Accounts and other - - - - -
Interest - 4,744 612 814 -
Total assets 584,659 $ 118,355 $ 74,646 $ 128,620 $ - $ Liabilities and fund balances:

Liabilities:

Accounts payable and accrued liabilities $ - - $ 70,946 $ 3,365 $ - $ Due to other funds - - - - -
Total liabilities - - 70,946 3,365 -
Fund balances:

Restricted 584,659 118,355 3,700 125,255 -
Committed - - - - -
Assigned - - - - -
Unassigned - - - - -
Total fund balances (deficits) 584,659 118,355 3,700 125,255 - Total liabilities and fund balances 584,659 $ 118,355 $ 74,646 $ 128,620 $ - $

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2023
Special Revenue Funds
70 10.2.a
Packet Pg. 229 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) Public
Educational and
Computer Governmental Vehicles and
Technology Access Capital Equipment Police
Capital Outlay Replacement Grant Replacement Technology Capital Projects Total $ 108,378 58,225 $ 143,234 $ 493,999 $ 960,181 $ 460,128 $ $ 7,160,648 - - 22,893 - - - 141,080
- 483 1,190 - - - 35,630
$ 108,378 58,708 $ 167,317 $ 493,999 $ 960,181 $ 460,128 $ 7,337,358 $ $ 48,193 - $ - $ $ 12,340 230,939 $ - $ $ 498,946
- - - - - - 5,224
48,193 - - 230,939 12,340 - 504,170
- 58,708 167,317 - - - 4,491,784
60,185 - - 193,060 947,841 460,128 1,661,214
- - - 70,000 - - 685,414
- - - - - - (5,224)
60,185 58,708 167,317 263,060 947,841 460,128 6,833,188 $ 108,378 58,708 $ 167,317 $ 493,999 $ 960,181 $ 460,128 $ 7,337,358 $ (Concluded)
Capital Projects Funds

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Balance Sheet
June 30, 2023
71 10.2.a
Packet Pg. 230 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2023
Special Revenue Funds
Commercial
Landscaping
Gas Tax Unified Street Parkland and Lighting
Traffic Safety 2107.5 Lighting Dedication District 20 NPDES Revenues:

Property taxes - $ - $ 748,379 $ - $ - $ - $
Other taxes and special assessments - - - - 423,891 341,598 Intergovernmental - 6,000 - - - -
Charges for services - - - - - -
Fines and forfeitures 31,832 - - - - -
Use of money and property 224 - 18,174 - 6,081 25,197
Total revenues 32,056 6,000 766,553 - 429,972 366,795
Expenditures:

Current:

General government - - 230,737 - - -
Public safety - 140,155 - - - -
Transportation - - - - 541,006 9,438
Community development - - - - - 276,090
Capital outlay - - - - - 1,349,838
Total expenditures 140,155 - 230,737 - 541,006 1,635,366 Excess (deficiency) of revenues
over (under) expenditures (108,099) 6,000 535,816 - (111,034) (1,268,571) Other financing sources (uses):

Transfers in - 140,155 - - 98,802 1,785,131
Transfers out - - (200,000) - - (205,000)
Total other financing sources (uses) 140,155 - (200,000) - 98,802 1,580,131 Change in fund balances 32,056 6,000 335,816 - (12,232) 311,560 Fund balances, beginning of year 16,401 (11,224) 555,832 - 218,906 1,461,825 Fund balances, end of year 48,457 $ (5,224) $ 891,648 $ - $ 206,674 $ 1,773,385 $ 72 10.2.a
Packet Pg. 231 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2023
Special Revenue Funds
Supplemental Landscaping
Law Waste and Lighting
Enforcement Management/ Police Special Park and Assessment Senior Van CLEEP Vehicle Services Recycling Services Recreation District 22 Services Grant Abatement $ - - $ - $ - $ - $ - $ - $ - $
- - - - 59,640 - - -
5,555 165,271 - - - - - 9,121
141,669 - - - - 2,881 - (100)
- - - - - - - -
9,365 9,117 1,512 - 2,013 364 - -
156,589 174,388 1,512 - 61,653 3,245 - 9,021
- - - - - - 6 -
- 35,452 3,868 - - - - -
- - - - 57,695 - - -
78,262 - - - - 4,779 - 10,057
- - - - - - - -
78,262 35,452 3,868 - 57,695 4,779 6 10,057
78,327 138,936 (2,356) - 3,958 (1,534) (6) (1,036)
- - - - 5,355 - - -
- (20,000) - - - - - -
- (20,000) - - 5,355 - - -
78,327 118,936 (2,356) - 9,313 (1,534) (6) (1,036)
334,836 269,723 67,037 2 84,933 17,448 6 153,411
$ 413,163 388,659 $ 64,681 $ 2 $ 94,246 $ 15,914 $ - $ 152,375 $ (Continued)
73 10.2.a
Packet Pg. 232 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) Traffic
Affordable Congestion Disability General HCD Housing
Housing Relief Fund Access Plan Fee Grant
Revenues:

Property taxes - $ - $ - $ - $ - $
Other taxes and special assessments - - - - -
Intergovernmental - - - - 91,390
Charges for services - - - 217,997 -
Fines and forfeitures - - - - -
Use of money and property 13,898 - 1,750 5,799 -
Total revenues 13,898 - 1,750 223,796 91,390
Expenditures:

Current:

General government - - - - -
Public safety - - - - -
Transportation - - - 363,787 -
Community development - 61 - - -
Capital outlay - - - - -
Total expenditures 61 - - 363,787 -
Excess (deficiency) of revenues
over (under) expenditures 13,837 - 1,750 (139,991) 91,390 Other financing sources (uses):

Transfers in - - - - -
Transfers out - - - - -
Total other financing sources (uses) - - - - -
Change in fund balances 13,837 - 1,750 (139,991) 91,390 Fund balances, beginning of year 570,822 118,355 1,950 265,246 (91,390) Fund balances, end of year 584,659 $ 118,355 $ 3,700 $ 125,255 $ - $

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2023
Special Revenue Funds
74 10.2.a
Packet Pg. 233 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) Public
Educational and
Computer Governmental Vehicles and
Capital Technology Access Capital Equipment Police Capital Outlay Replacement Grant Replacement Technology Projects Total $ - - $ - $ - $ - $ - $ 748,379 $
- 9,300 - - - - 834,429
- - 96,920 - - - 374,257
- - - - - - 362,447
- - - - - - 31,832
- 1,351 2,722 - - - 97,567
- 10,651 99,642 - - - 2,448,911
- - - - - - 230,743
- - - - - 1,428 180,903
- - - - - - 971,926
- - - - - - 369,249
821,850 - - 354,413 383,655 281,835 3,191,591
821,850 - - 354,413 383,655 283,263 4,944,412
(821,850) 10,651 99,642 (354,413) (383,655) (283,263) (2,495,501) 883,112 - - 306,297 450,000 111,385 3,780,237
- - - - - - (425,000)
883,112 - - 306,297 450,000 111,385 3,355,237
61,262 10,651 99,642 (48,116) 66,345 (171,878) 859,736
(1,077) 48,057 67,675 311,176 881,496 632,006 5,973,452 $ 60,185 58,708 $ 167,317 $ 263,060 $ 947,841 $ 460,128 $ 6,833,188 $ (Concluded)
Capital Projects Funds

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures and Changes in Fund Balances For the Year Ended June 30, 2023
75 10.2.a
Packet Pg. 234 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2023
Traffic Safety Gas Tax 2107.5
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues:

Property taxes - $ - $ - $ - $ - $ - $
Other taxes and special assessments - - - - - -
Intergovernmental - - - 6,000 6,000 -
Charges for services - - - - - -
Fines and forfeitures 38,950 31,832 (7,118) - - -
Use of money and property 206 224 18 - - -
Total revenues 39,156 32,056 (7,100) 6,000 6,000 -
Expenditures:

Current:

General government - - - - - -
Public safety 97,974 140,155 (42,181) - - -
Transportation - - - 1,157 - 1,157
Community development - - - - - -
Capital outlay - - - - - -
Total expenditures 97,974 140,155 (42,181) 1,157 - 1,157 Excess (deficiency) of revenues
over (under) expenditures (58,818) (108,099) (49,281) 4,843 6,000 1,157 Other financing sources (uses):

Proceeds from sale of capital asset - - - - - -
Transfers in 113,679 140,155 26,476 - - -
Transfers out - - - - - -
Total other financing sources (uses) 113,679 140,155 26,476 - - - Change in fund balances 54,861 $ 32,056 (22,805) $ 4,843 $ 6,000 1,157 $ Fund balances, beginning of year 16,401 (11,224)
Fund balances, end of year 48,457 $ (5,224) $
76 10.2.a
Packet Pg. 235 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2023
Unified Street Lighting NPDES
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $ 748,379 676,750 $ 71,629 $ - $ - $ - $ - $ - $ - $
- - - 423,892 423,891 (1) 350,000 341,598 (8,402)
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
18,174 1,200 16,974 14,837 6,081 (8,756) 3,090 25,197 22,107 766,553 677,950 88,603 438,729 429,972 (8,757) 353,090 366,795 13,705 230,737 263,989 33,252 - - - - - -
- - - - - - - - -
- - - 1,107,939 541,006 566,933 14,416 9,438 4,978
- - - - - - 533,029 276,090 256,939
- - - - - - 1,833,665 1,349,838 483,827
230,737 263,989 33,252 1,107,939 541,006 566,933 2,381,110 1,635,366 745,744 535,816 413,961 121,855 (669,210) (111,034) 558,176 (2,028,020) (1,268,571) 759,449 - - - - - - - - -
- - - 197,946 98,802 (99,144) 1,155,121 1,785,131 630,010 (200,000) (200,000) - - - - (205,000) (205,000) -
(200,000) (200,000) - 197,946 98,802 (99,144) 950,121 1,580,131 630,010 $ 335,816 213,961 121,855 $ (471,264) $ (12,232) 459,032 $ (1,077,899) $ 311,560 1,389,459 $ 218,906 555,832 1,461,825
$ 206,674 891,648 $ 1,773,385 $
(Continued)
Commercial Landscaping and
Lighting District 20
77 10.2.a
Packet Pg. 236 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) Supplemental Law
Enforcement Services Management/Recycling
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues:

Property taxes - $ - $ - $ - $ - $ - $
Other taxes and special assessments - - - - - -
Intergovernmental 100,000 165,271 65,271 10,219 5,555 (4,664) Charges for services - - - 128,220 141,669 13,449
Fines and forfeitures - - - - - -
Use of money and property 824 9,117 8,293 1,340 9,365 8,025 Total revenues 100,824 174,388 73,564 139,779 156,589 16,810 Expenditures:

Current:

General government - - - - - -
Public safety 138,000 35,452 102,548 - - -
Transportation - - - - - -
Community development - - - 120,928 78,262 42,666
Capital outlay - - - - - -
Total expenditures 138,000 35,452 102,548 120,928 78,262 42,666 Excess (deficiency) of revenues
over (under) expenditures (37,176) 138,936 176,112 18,851 78,327 59,476 Other financing sources (uses):

Proceeds from sale of capital asset - - - - - -
Transfers in - - - - - -
Transfers out (20,000) (20,000) - - - -
Total other financing sources (uses) (20,000) (20,000) - - - - Change in fund balances (57,176) $ 118,936 176,112 $ 18,851 $ 78,327 59,476 $ Fund balances, beginning of year 269,723 334,836
Fund balances, end of year 388,659 $ 413,163 $

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2023
Waste
78 10.2.a
Packet Pg. 237 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) Police Special Services Senior Van Services
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $ - - $ - $ - $ - $ - $ - $ - $ - $
- - - 59,641 59,640 (1) - - -
- 1,500 (1,500) - - - - - -
- - - - - - 2,060 2,881 821
- - - - - - - - -
1,512 264 1,248 763 2,013 1,250 52 364 312
1,512 1,764 (252) 60,404 61,653 1,249 2,112 3,245 1,133 - - - - - - - - -
3,868 75,000 71,132 - - - - - -
- - - 94,105 57,695 36,410 - - -
- - - - - - 3,380 4,779 (1,399)
- - - - - - - - -
3,868 75,000 71,132 94,105 57,695 36,410 3,380 4,779 (1,399) (2,356) (73,236) 70,880 (33,701) 3,958 37,659 (1,268) (1,534) (266) - - - - - - - - -
- - - 5,355 5,355 - - - -
- - - - - - - - -
- - - 5,355 5,355 - - - -
$ (2,356) (73,236) 70,880 $ (28,346) $ 9,313 37,659 $ (1,268) $ (1,534) (266) $ 84,933 67,037 17,448
$ 94,246 64,681 $ 15,914 $
(Continued)

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2023
Landscaping and Lighting
Assessment District 22
79 10.2.a
Packet Pg. 238 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) Vehicle Abatement Affordable Housing
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues:

Property taxes - $ - $ - $ - $ - $ - $
Other taxes and special assessments - - - - - -
Intergovernmental 15,450 9,121 (6,329) - - -
Charges for services 100 (100) (200) - - -
Fines and forfeitures - - - - - -
Use of money and property - - - 1,545 13,898 12,353
Total revenues 15,550 9,021 (6,529) 1,545 13,898 12,353 Expenditures:

Current:

General government - - - - - -
Public safety - - - - - -
Transportation - - - - - -
Community development 10,057 22,760 12,703 1,030 61 969 Capital outlay - - - - - -
Total expenditures 22,760 10,057 12,703 1,030 61 969
Excess (deficiency) of revenues
over (under) expenditures (7,210) (1,036) 6,174 515 13,837 13,322 Other financing sources (uses):

Proceeds from sale of capital asset - - - - - -
Transfers in - - - - - -
Transfers out - - - - - -
Total other financing sources (uses) - - - - - -
Change in fund balances (7,210) $ (1,036) 6,174 $ 515 $ 13,837 13,322 $ Fund balances, beginning of year 153,411 570,822
Fund balances, end of year 152,375 $ 584,659 $
For the Year Ended June 30, 2023

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
80 10.2.a
Packet Pg. 239 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) Traffic Congestion Relief
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $ - - $ - $ - $ - $ - $ - $ - $ - $
- - - - - - - - -
- - - - - - - - -
- - - - - - 130,000 217,997 87,997
- - - - - - - - -
- - - - 1,750 1,750 1,500 5,799 4,299
- - - - 1,750 1,750 131,500 223,796 92,296
- - - - - - - - -
- - - - - - - - -
- - - - - - 1,048,563 363,787 684,776
- - - - - - - - -
- - - - - - - - -
- - - - - - 1,048,563 363,787 684,776
- - - - 1,750 1,750 (917,063) (139,991) 777,072
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
$ - - - $ - $ 1,750 1,750 $ (917,063) $ (139,991) 777,072 $ 1,950 118,355 265,246
$ 3,700 118,355 $ 125,255 $
(Continued)
Disability Access General Plan Fee

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2023
81 10.2.a
Packet Pg. 240 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) HCD Housing Grant Capital Outlay
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues:

Property taxes - $ - $ - $ - $ - $ - $
Other taxes and special assessments - - - - 9,300 9,300 Intergovernmental - 91,390 91,390 - - -
Charges for services - - - - - -
Fines and forfeitures - - - - - -
Use of money and property - - - 103 1,351 1,248
Total revenues - 91,390 91,390 103 10,651 10,548
Expenditures:

Current:

General government - - - - - -
Public safety - - - - - -
Transportation - - - - - -
Community development - 80,000 80,000 - - -
Capital outlay - - - - - -
Total expenditures 80,000 - 80,000 - - -
Excess (deficiency) of revenues
over (under) expenditures (80,000) 91,390 171,390 103 10,651 10,548 Other financing sources (uses):

Proceeds from sale of capital asset - - - - - -
Transfers in - - - - - -
Transfers out - - - - - -
Total other financing sources (uses) - - - - - -
Change in fund balances (80,000) $ 91,390 171,390 $ 103 $ 10,651 10,548 $ Fund balances, beginning of year (91,390) 48,057
Fund balances, end of year - $ 58,708 $
For the Year Ended June 30, 2023

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
82 10.2.a
Packet Pg. 241 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) Computer Technology and
Replacement
Variance Variance Variance
Final Positive Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative) Budget Actual (Negative) $ - - $ - $ - $ - $ - $ - $ - $ - $
- - - - - - - - -
- - - 45,753 96,920 51,167 - - -
- - - - - - - - -
- - - - - - - - -
- - - 93 2,722 2,629 - - -
- - - 45,846 99,642 53,796 6,000 - (6,000)
- - - 1,185 - 1,185 - - -
- - - - - - - - -
- - - - - - - - -
- - - - - - - - -
821,850 1,094,538 272,688 - - - 559,991 354,413 205,578 821,850 1,094,538 272,688 1,185 - 1,185 559,991 354,413 205,578 (821,850) (1,094,538) 272,688 44,661 99,642 54,981 (553,991) (354,413) 199,578 - - - - - - 6,000 - (6,000)
883,112 709,550 173,562 - - - 306,297 306,297 -
- - - - - - - - -
883,112 709,550 173,562 - - - 312,297 306,297 (6,000)
$ 61,262 (384,988) 446,250 $ 44,661 $ 99,642 54,981 $ (241,694) $ (48,116) 193,578 $ 67,675 (1,077) 311,176
$ 167,317 60,185 $ 263,060 $
(Continued)
Replacement
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2023
Public Educational and
Capital Grant
Governmental Access Vehicles and Equipment

CITY OF PLEASANT HILL
83 10.2.a
Packet Pg. 242 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) Police Technology Capital Projects
Variance Variance
Final Positive Final Positive
Budget Actual (Negative) Budget Actual (Negative)
Revenues:

Property taxes - $ - $ - $ - $ - $ - $
Other taxes and special assessments - - - - - -
Intergovernmental - - - - - -
Charges for services - - - - - -
Fines and forfeitures - - - - - -
Use of money and property - - - - - -
Total revenues - - - - - -
Expenditures:

Current:

General government - - - - - -
Public safety - - - - 1,428 (1,428)
Transportation - - - - - -
Community development - - - - - -
Capital outlay 539,765 383,655 156,110 1,977,608 281,835 1,695,773 Total expenditures 539,765 383,655 156,110 1,977,608 283,263 1,694,345 Excess (deficiency) of revenues
over (under) expenditures (539,765) (383,655) 156,110 (1,977,608) (283,263) 1,694,345 Other financing sources (uses):

Proceeds from sale of capital asset - - - - - -
Transfers in 450,000 450,000 - 1,920,000 111,385 (1,808,615) Transfers out - - - - - -
Total other financing sources (uses) 450,000 450,000 - 1,920,000 111,385 (1,808,615) Change in fund balances (89,765) $ 66,345 156,110 $ (57,608) $ (171,878) (114,270) $ Fund balances, beginning of year 881,496 632,006
Fund balances, end of year 947,841 $ 460,128 $
(Concluded)

CITY OF PLEASANT HILL
Nonmajor Governmental Funds
Schedules of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
For the Year Ended June 30, 2023
84 10.2.a
Packet Pg. 243 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Custodial Funds
Year Ended June 30, 2023
85 Custodial funds are used to account for assets held by the City in a fiduciary capacity on behalf of others.

Specific custodial funds are as follows:

Acme Landfill Closure Fund - accounts for funds collected by Pleasant Hill Bayshore Disposal Company from their Pleasant Hill ratepayers prior to February 8, 1993 and turned over to the City on that date for the purpose of covering future costs of the closure of the Acme Landfill. In addition, from November 1994 through June 1997, savings from the Keller Canyon Landfill rate reduction were deposited into this fund.

Transpac Fund - accounts for contributions from TRANSPAC member agencies in central County of Contra Costa and the use of those funds for transportation planning and information purposes.

Asset Forfeiture Holding Fund - accounts for cash seized in drug cases, the distribution of which is determined later by the court. Distribution is most often among the law enforcement agencies involved in the arrest and investigation. If the City receives a portion, it is transferred to the Police Special Services Fund.

10.2.a
Packet Pg. 244 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) Acme Landfill Asset Forfeiture
Closure Transpac Holding Fund Total
Assets:

Cash and investments held in City Treasury 72,390 $ 158,534 $ 300,947 $ 531,871 $ Interest receivable 603 1,318 - 1,921
Total Assets 72,993 159,852 300,947 533,792
Liabilities:

Accounts payable and accruals - 64,475 - 64,475
Net Position:

Restricted for:

Governmental entities and others 72,993 95,377 300,947 469,317 Total net position 72,993 $ 95,377 $ 300,947 $ 469,317 $

CITY OF PLEASANT HILL
Custodial Funds
Combining Statement of Fiduciary Net Position
For the Year Ended June 30, 2023
86 10.2.a
Packet Pg. 245 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) Acme Landfill Asset Forfeiture
Closure Transpac Holding Fund Total
Additions:

Members contributions - $ 277,001 $ - $ 277,001 $
Investment earnings - 5,864 - 5,864
Others 1,723 - 231,114 232,837
Total additions 1,723 282,865 231,114 515,702
Deductions:

Benefits paid to participants or beneficiaries - 10,510 10,330 20,840 Administrative and general - 257,560 - 257,560
Total deductions - 268,070 10,330 278,400
Changes in net position 1,723 14,795 220,784 237,302
Net position, beginning of year 71,270 80,582 80,163 232,015 Net position, end of year 72,993 $ 95,377 $ 300,947 $ 469,317 $

CITY OF PLEASANT HILL
Custodial Funds
Combining Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2023
87 10.2.a
Packet Pg. 246 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) 88 This page is left intentionally blank.

10.2.a
Packet Pg. 247 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Statistical Section
Year Ended June 30, 2023
89 This part of the City’s Annual Comprehensive Financial Report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City’s overall financial health. In contrast to the financial section, the statistical section information is not subject to independent audit.

Financial Trends
These schedules contain trend information to help the reader understand how the City’s financial performance and well being have changed over time:

1. Net Position by Component

2. Changes in Net Position

3. Fund Balances of Governmental Funds

4. Changes in Fund Balances of Governmental Funds
Revenue Capacity
These schedules contain information to help the reader assess the City’s most significant local revenue source, the property tax:

1. Assessed and Estimated Actual Net Value of Taxable Property

2. Property Tax Rates, All Direct and Overlapping Governments

3. Principal Property Taxpayers

4. Property Tax Levies and Collections
Debt Capacity
These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future:

1. Ratio of Outstanding Debt by Type

2. Computation of Direct and Overlapping Debt

3. Computation of Legal Bonded Debt Margin
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place:

1. Demographic Statistics

2. Top 25 Sales Tax Producers

3. Taxable Sales by Category
Operating Information
These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs:

1. Full-Time Equivalent City Government Employees by Function

2. Operating Indicators by Function/Program

3. Capital Asset Statistics by Function/Program
Sources
Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year.

10.2.a
Packet Pg. 248 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
June 30,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental activities
Net investment in capital assets 66,029,250 $ 65,099,649 $ 66,114,333 $ 66,589,844 $ 63,663,298 $ 65,031,586 $ 68,718,885 $ 68,319,097 $ 72,317,902 $ 73,152,809 $ Restricted 11,586,938 11,474,912 12,279,862 8,990,013 10,184,878 10,926,436 12,540,185 13,702,342 13,683,554 16,507,795 Unrestricted 12,351,893 (19,918,513) (18,511,367) (20,106,826) (17,751,134) (21,879,791) (24,614,367) (20,353,944) (22,422,928) (13,916,055) Total governmental activities net position $ 56,656,048 89,968,081 $ 59,882,828 $ 55,473,031 $ 56,097,042 $ 54,078,231 $ 56,644,703 $ 61,667,495 $ 63,578,528 $ 75,744,549 $ Business-type activities
Net investment in capital assets 418,115 $ 532,590 $ 524,375 $ 508,158 $ 491,941 $ 479,673 $ 464,476 $ 452,208 $ 439,940 $ 1,034,920 $ Unrestricted 593,780 530,294 641,480 752,682 481,814 570,177 688,812 711,427 856,748 427,639 Total business-type activities net position $ 1,062,884 1,011,895 $ 1,165,855 $ 1,260,840 $ 973,755 $ 1,049,850 $ 1,153,288 $ 1,163,635 $ 1,296,688 $ 1,462,559 $ Primary government
Net investment in capital assets 66,447,365 $ 65,632,239 $ 66,638,708 $ 67,098,002 $ 64,155,239 $ 65,511,259 $ 69,183,361 $ 68,771,305 $ 72,757,842 $ 74,187,729 $ Restricted 11,586,938 11,474,912 12,279,862 8,990,013 10,184,878 10,926,436 12,540,185 13,702,342 13,683,554 16,507,795 Unrestricted 12,945,673 (19,388,219) (17,869,887) (19,354,144) (17,269,320) (21,309,614) (23,925,555) (19,642,517) (21,566,180) (13,488,416) Total primary government net position $ 57,718,932 90,979,976 $ 61,048,683 $ 56,733,871 $ 57,070,797 $ 55,128,081 $ 57,797,991 $ 62,831,130 $ 64,875,216 $ 77,207,108 $ (40,000)
(20,000)
0 20,000
40,000
60,000
80,000
100,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
Primary Government Net Position
Net investment in capital assets Restricted Unrestricted 90 10.2.a
Packet Pg. 249 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Changes in Net Position
Last Ten Fiscal Years
(Accrual Basis of Accounting)
For the Fiscal Year Ended June 30,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Expenses:

Governmental Activities:

General Government $ 4,800,859 4,486,256 $ 4,586,389 $ 5,701,798 $ 7,804,038 $ 7,507,044 $ 9,741,367 $ 8,432,265 $ 13,230,100 $ 5,231,155 $ Public Safety 8,789,637 8,931,818 10,061,265 11,729,664 11,259,884 12,791,053 14,033,317 12,925,841 13,757,204 11,198,560 Transportation 6,618,300 16,701,264 9,105,613 14,220,552 13,224,055 13,283,195 8,187,274 12,319,001 9,043,753 14,347,929 Community Development 2,450,528 2,550,154 2,927,165 3,206,118 3,010,100 3,015,887 2,333,180 2,360,910 2,735,359 2,478,310 Interest and fiscal charges 176,388 223,433 120,227 60,991 17,092 - - 540,308 422,838 386,463 Total Governmental Activities Expenses 32,918,676 22,809,961 26,800,659 34,919,123 35,315,169 36,597,179 34,295,138 36,578,325 39,189,254 33,642,417 Business-Type Activities:

Water 253,159 225,220 217,928 244,104 639,196 293,878 277,436 374,555 267,391 272,115 Total Primary Government Expenses $ 33,171,835 23,035,181 $ 27,018,587 $ 35,163,227 $ 35,954,365 $ 36,891,057 $ 34,572,574 $ 36,952,880 $ 39,456,645 $ 33,914,532 $ Program Revenues:

Governmental Activities:

Charges for Services:

General Government $ 166,381 166,671 $ 192,303 $ 211,572 $ 170,460 $ 184,576 $ 193,465 $ 169,873 $ 219,754 $ 253,534 $ Public Safety 159,012 157,498 184,889 138,235 171,815 144,705 168,603 136,890 152,063 126,900 Transportation 663,656 401,395 404,750 689,386 459,815 517,371 443,989 588,604 559,516 2,394,612 Community Development 1,279,317 1,813,011 1,559,622 1,497,427 2,338,500 1,894,162 1,976,711 1,858,417 2,200,779 2,762,111 Operating Grants and Contributions 4,021,630 1,870,975 2,956,236 1,957,507 4,003,002 2,920,746 3,976,194 7,357,717 4,603,393 5,345,762 Capital Grants and Contributions 6,784,859 7,382,654 2,863,421 2,516,719 1,822,233 56,542 398,901 561,295 208,381 96,920 Total Governmental Activities Program Revenues 12,812,594 12,054,465 8,161,221 7,010,846 8,965,825 5,718,102 7,157,863 10,672,796 7,943,886 10,979,839 Business-Type Activities:

Charges for Services:

Diablo Vista Water System 134,520 134,520 134,235 134,235 133,950 133,950 133,950 133,950 133,950 133,950 $ 12,947,114 12,188,985 $ 8,295,456 $ 7,145,081 $ 9,099,775 $ 5,852,052 $ 7,291,813 $ 10,806,746 $ 8,077,836 $ 11,113,789 $ Net (Expense)/Revenue
Governmental Activities $ (20,106,082) (10,755,496) $ (18,639,438) $ (27,908,277) $ (26,349,344) $ (30,879,077) $ (27,137,275) $ (25,905,529) $ (31,245,368) $ (22,662,578) $ Business-Type Activities (118,639) (90,700) (83,693) (109,869) (505,246) (159,928) (143,486) (240,605) (133,441) (138,165) Total Primary Government Net Expense $ (20,224,721) (10,846,196) $ (18,723,131) $ (28,018,146) $ (26,854,590) $ (31,039,005) $ (27,280,761) $ (26,146,134) $ (31,378,809) $ (22,800,743) $ Total Primary Government Program Revenues
91 10.2.a
Packet Pg. 250 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Changes in Net Position (continued)
Last Ten Fiscal Years
(Accrual Basis of Accounting)
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Governmental Activities:

Taxes:

Property Taxes $ 5,975,571 5,706,908 $ 6,231,850 $ 6,619,240 $ 6,986,641 $ 7,257,893 $ 7,817,772 $ 8,298,137 $ 8,714,018 $ 9,422,570 $ Sales Taxes 7,508,399 7,736,714 8,598,230 8,437,462 8,547,152 8,595,458 9,498,892 10,650,037 11,001,808 10,999,559 Measure K Transaction and Use Tax - - - 913,316 3,934,343 4,419,035 4,182,302 4,885,076 5,344,293 5,478,120 Other Taxes (a) 6,036,889 6,510,044 6,830,548 7,120,733 7,238,645 7,739,278 7,626,265 6,840,111 8,411,477 8,082,057 Investment Earnings 137,025 18,997 113,924 117,561 168,458 657,998 472,936 190,610 (447,458) 788,597 Miscellaneous 46,688 45,330 91,666 290,168 98,116 190,604 105,580 64,350 132,263 57,696 Total Governmental Activities 20,406,042 19,316,523 21,866,218 23,498,480 26,973,355 28,860,266 29,703,747 30,928,321 33,156,401 34,828,599 Business-Type Activities:

Property Taxes 168,073 149,214 184,412 199,345 209,118 222,338 234,529 247,463 263,325 287,428 Investment Earnings 1,555 1,350 2,252 5,509 9,043 13,685 12,395 3,489 3,169 16,608 Total Business-Type Activities 169,628 150,564 186,664 204,854 218,161 236,023 246,924 250,952 266,494 304,036 Total Primary Government $ 20,575,670 19,467,087 $ 22,052,882 $ 23,703,334 $ 27,191,516 $ 29,096,289 $ 29,950,671 $ 31,179,273 $ 33,422,895 $ 35,132,635 $ Change in Net Position
Governmental Activities $ 299,960 8,561,027 $ 3,226,780 $ (4,409,797) $ 624,011 $ (2,018,811) $ 2,566,472 $ 5,022,792 $ 1,911,033 $ 12,166,021 $ Business-Type Activities 50,989 59,864 102,971 94,985 (287,085) 76,095 103,438 10,347 133,053 165,871 Total Primary Government $ 350,949 8,620,891 $ 3,329,751 $ (4,314,812) $ 336,926 $ (1,942,716) $ 2,669,910 $ 5,033,139 $ 2,044,086 $ 12,331,892 $ (a) Includes franchise, transient occupancy, and other taxes General Revenues and
Other Changes in Net Position
92 10.2.a
Packet Pg. 251 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
General Fund
Restricted 890,703 $ 890,703 $ 890,703 $ 890,703 $ - $ - $ - $ 14,405,714 $ 4,164,686 $ 491,263 $ Assigned 8,088,146 8,138,277 8,244,143 9,079,046 12,403,387 11,923,505 11,829,908 17,254,645 16,535,198 14,783,715 Unassigned 5,087,502 5,031,285 5,175,170 3,386,999 2,955,251 386,350 575,986 1,442,001 1,398,465 2,968,559 Total General Fund $ 14,060,265 14,066,351 $ 14,310,016 $ 13,356,748 $ 15,358,638 $ 12,309,855 $ 12,405,894 $ 33,102,360 $ 22,098,349 $ 18,243,537 $ All Other Governmental Funds
Nonspendable 124,489 $ 41,496 $ 217,163 $ 128,707 $ 41,750 $ - $ - $ - $ - $ - $ Restricted 9,918,262 10,267,097 10,752,993 8,764,911 9,786,935 10,443,105 11,911,302 11,637,657 13,190,336 14,782,004 Committed 1,349,207 1,167,308 789,585 742,454 1,105,078 773,160 1,022,449 1,004,658 1,824,678 1,661,214 Assigned - - - - - 676,000 857,771 181,631 1,349,631 3,473,891 Unassigned (273,571) (292,053) (349) (2,442,390) (250,125) (122,615) (646) (38,451) (103,691) (5,224) Total all other governmental funds 11,118,387 $ 11,183,848 $ 11,759,392 $ 7,193,682 $ 10,683,638 $ 11,769,650 $ 13,790,876 $ 12,785,495 $ 16,260,954 $ 19,911,885 $ Notes:

The change in total fund balance for the General Fund and other governmental funds is explained in the Management's Discussion and Analysis section.

June 30,

CITY OF PLEASANT HILL
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
‐
5,000
10,000
15,000
20,000
25,000
30,000
35,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
General Fund
Restricted Assigned Unassigned
93 10.2.a
Packet Pg. 252 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
Fiscal Year Ended June 30,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenues
Taxes 20,020,926 $ 21,004,157 $ 22,430,711 $ 23,702,930 $ 27,678,904 $ 28,803,232 $ 29,894,153 $ 30,053,298 $ 34,653,497 $ 34,750,534 $ Licenses, permits and fees 583,804 532,040 713,527 672,519 937,122 935,597 992,074 979,185 1,380,049 1,706,870 Intergovernmental revenues 9,688,815 10,994,559 5,845,401 3,432,676 6,929,650 3,023,531 4,432,153 7,913,725 4,816,806 6,760,998 Charges for services 1,250,908 553,551 660,785 931,803 1,221,440 888,450 871,529 936,198 905,192 1,601,605 Fines and forfeitures 109,892 136,499 161,505 196,481 122,079 112,911 97,347 39,298 47,858 47,121 Use of money and property 18,997 137,025 113,923 117,560 168,458 657,993 472,935 190,610 (447,457) 788,600 Other 58,310 32,808 58,241 274,902 79,873 159,503 51,431 39,217 73,042 152,321 Total Revenues 31,731,652 33,390,639 29,984,093 29,328,871 37,137,526 34,581,217 36,811,622 40,151,531 41,428,987 45,808,049 Expenditures
Current:

General government 4,184,701 4,519,012 4,562,647 5,345,224 6,913,938 7,150,693 8,143,854 7,983,400 9,393,390 10,069,332 Public safety 8,545,697 8,854,439 9,602,520 10,376,494 9,901,567 11,136,367 11,475,213 11,393,541 12,644,842 12,376,893 Transportation 12,454,552 14,431,482 8,881,519 12,915,352 10,119,727 11,056,926 9,834,764 12,231,771 6,276,410 10,666,831 Community development 2,540,791 2,527,121 2,985,366 3,058,412 2,934,130 2,908,926 2,289,434 2,265,054 2,631,025 2,802,753 Capital outlay 946,311 1,325,838 1,472,864 1,425,460 899,411 4,305,349 2,977,497 10,921,175 15,539,289 7,603,749 Debt service:

Principal repayment 1,458,000 1,499,000 1,550,000 1,668,000 872,000 - - 1,555,719 2,066,668 2,102,993 Interest and fiscal charges 220,609 179,575 123,524 64,593 18,283 - - 505,864 425,704 389,379 Total Expenditures 30,350,661 33,336,467 29,178,440 34,853,535 31,659,056 36,558,261 34,720,762 46,856,524 48,977,328 46,011,930 Excess (deficiency) of revenues over
(under) expenditures 1,380,991 54,172 805,653 (5,524,664) 5,478,470 (1,977,044) 2,090,860 (6,704,993) (7,548,341) (203,881) Other Financing Sources (Uses)
Transfers in 2,930,815 3,243,517 3,271,101 4,315,992 3,912,300 7,184,244 6,237,614 3,046,721 5,935,299 9,708,970 Transfers (out) (2,930,815) (3,243,517) (3,271,101) (4,315,992) (3,912,300) (7,184,244) (6,237,614) (3,046,721) (5,935,299) (9,708,970) Proceeds from issuance of long term debt - - - - - - 26,396,078 - - Proceeds from sale of capital assets 11,060 5,203 19,642 5,686 13,376 14,273 26,405 - 19,789 - Total other financing sources (uses) 11,060 5,203 19,642 5,686 13,376 14,273 26,405 26,396,078 19,789 - Net change in fund balances 1,392,051 $ 59,375 $ 825,295 $ (5,518,978) $ 5,491,846 $ (1,962,771) $ 2,117,265 $ 19,691,085 $ (7,528,552) $ (203,881) $ Debt service as a percentage of
noncapital expenditures 5.7% 5.2% 6.0% 5.2% 2.9% 0.0% 0.0% 5.7% 7.5% 6.5% 94 10.2.a
Packet Pg. 253 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Assessed and Estimated Actual
Net Value of Taxable Property
Last Ten Fiscal Years
Real Property Total Real Total
Fiscal Residential Commercial Industrial Secured Unsecured Total Estimated Direct Year Property Property Property Other Property Property Assessed (a) Full Market (a) Tax Rate (b) 2014 $3,638,619,711 $736,703,106 $14,875,080 $55,498,231 $4,445,696,128 $105,093,519 $4,550,789,647 $4,550,789,647 5.66% 2015 4,046,306,836 760,045,593 13,317,659 77,930,272 4,874,257,873 107,861,285 4,982,119,158 4,982,119,158 5.66% 2016 4,328,068,359 804,447,646 15,245,789 59,799,203 5,207,537,997 110,394,079 5,317,935,076 5,317,935,076 5.66% 2017 4,561,291,596 821,147,666 15,478,279 73,434,814 5,471,352,355 110,532,287 5,581,884,642 5,581,884,642 5.66% 2018 4,809,775,559 883,832,421 15,787,834 61,281,511 5,770,677,325 105,018,890 5,875,696,215 5,875,696,215 5.66% 2019 5,045,097,655 941,272,641 24,799,843 57,874,754 6,069,044,893 103,265,968 6,172,310,861 6,172,310,861 5.66% 2020 5,412,543,931 982,813,017 25,295,829 87,548,623 6,508,201,400 108,631,243 6,616,832,643 6,616,832,643 5.66% 2021 5,692,653,247 1,077,462,192 25,801,736 65,424,606 6,861,341,781 103,580,600 6,964,922,381 6,964,922,381 5.66% 2022 5,979,006,914 1,089,701,150 26,069,032 110,351,306 7,205,128,402 102,552,352 7,307,680,754 7,307,680,754 5.66% 2023 6,366,321,529 1,130,221,737 26,590,402 121,438,881 7,644,572,549 118,110,873 7,762,683,422 7,762,683,422 5.66% Source: Contra Costa County Assessor Combined Tax Rolls-report provided by HdL Companies (a) The State Constitution requires property to be assessed at one hundred percent of the most recent purchase price, plus an increment of no more than two percent annually, plus any local over-rides.
(b) California cities do not set their own direct tax rate. The State Constitution establishes the rate at 1% and allocates a portion of that amount, by an annual calculation, to all the taxing entities within a tax rate area.

Exempt Values are not included in totals.
‐
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Assessed Value
Unsecured Property Secured Property
95 10.2.a
Packet Pg. 254 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Property Tax Rates (1)
All Direct And Overlapping Governments
Last Ten Fiscal Years
##
Contra Schools and Miscellaneous Total
Fiscal Costa College Special Direct
Year County City (2) Districts Districts Rate
2014 0.1030 0.0566 0.5349 0.3055 1.0000
2015 0.1030 0.0566 0.5349 0.3055 1.0000
2016 0.1030 0.0566 0.5349 0.3055 1.0000
2017 0.1030 0.0566 0.5349 0.3055 1.0000
2018 0.1030 0.0566 0.5349 0.3055 1.0000
2019 0.1030 0.0566 0.5349 0.3055 1.0000
2020 0.1030 0.0566 0.5349 0.3055 1.0000
2021 0.1030 0.0566 0.5349 0.3055 1.0000
2022 0.1030 0.0566 0.5349 0.3055 1.0000
2023 0.1030 0.0566 0.5349 0.3055 1.0000
Source: County Auditor/Controller's Office
(1) Per $1,000 assessed value
(2) The rates shown are not levied rates, but rather "rate-equivalents." The County, in the application of the Tax Equity Allocation (TEA) formula specified by the 1987 amendments to the Trial Court Funding Act, created these rates to accomplish the property tax shift required by the law. See Note (1) on the "Property Values and Tax Levies and Collections" page for a more detailed explanation.

0.0 0.2

0.4 0.6
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Property Tax Rates (per $1000 Assessed Value)
City Contra Costa County Miscellaneous Special District Schools and College Districts 96 10.2.a
Packet Pg. 255 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) Percentage Percentage
of Total City of Total City
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Rank Value Value Rank Value
PH Crescent Drive Investors 115,023,644 $ 1 1.48% n/a n/a n/a IMT Capital IV Pleasant Hill 95,818,684 2 1.23% n/a n/a n/a 235 Camelback LLC 93,728,103 3 1.21% n/a n/a n/a
FW California PH Shopping Center LLC 74,448,494 4 0.96% 62,093,438 2 1.36% WM Villa Montanaro LLC 55,661,489 5 0.72% 45,064,190 3 0.99% Tilden Ellinwood LLC 49,209,583 6 0.63% n/a n/a n/a
Terra Hospitality-SFMSA LLC 40,602,843 7 0.52% n/a n/a n/a Q Van Ness LLC 39,312,008 8 0.51% n/a n/a n/a
Pennisular Realty LLC 38,130,986 9 0.49% n/a n/a n/a
LMOF III 400 Taylor LLC 37,801,204 10 0.49% n/a n/a n/a Loja Pleasant Hill LLC n/a n/a n/a 80,623,707 1 1.77%
GSG Residl Iron Horse Park n/a n/a n/a 42,590,934 4 0.94% Grupe Real Estate Investors 29 n/a n/a n/a 35,357,667 5 0.78% Oxford Gardens LLC n/a n/a n/a 33,112,568 6 0.73%
EQR Watson General Partnership n/a n/a n/a 32,416,337 7 0.71% MGP X DVC LLC n/a n/a n/a 31,164,294 8 0.68%
Gallup and Whalen Santa Maria n/a n/a n/a 23,021,000 9 0.51% ERP Operating Limited n/a n/a n/a 21,939,326 10 0.48%
Total Ten Total 639,737,038 $ 8.24% 407,383,461 $ 8.95% City Total 7,762,683,422 $ 4,550,789,647 $

Source: County Assessor Fiscal Year Combined Tax Rolls.

CITY OF PLEASANT HILL
Principal Property Taxpayers
Current Year and Ten Years Ago
2022-2023 2013-2014
97 10.2.a
Packet Pg. 256 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Property Tax Levies and Collections
Last Ten Fiscal Years (1)
2004
Collections
Total Tax as of the end
Levied and of the Levy Year
Fiscal Year Collected as a % of Levy
2014 5,706,908 $ 100%
2015 5,975,571 100%
2016 6,231,850 100%
2017 6,619,240 100%
2018 6,986,641 100%
2019 7,257,893 100%
2020 7,817,772 100%
2021 8,298,137 100%
2022 8,714,018 100%
2023 9,422,570 100%
Source: City of Pleasant Hill Annual Comprehensive Financial Reports and Contra Costa County Please note the County distributes property taxes to jurisdications under the "alternate method of property tax distribution known as the Teeter Plan Under this plan the County remits 100% of the levied taxes to the City by June 30 of each year. (1) Pleasant Hill was incorporated in 1961 as a "No-Property Tax" city. The citizens wanted a minimum-service city that could be supported by revenues other than property taxes. Annexations over the years brought a minimum amount of annual property tax revenue to the City from Contra Costa County, as required by the annexation process. Beginning in fiscal year 1989-90, and due to State legislation in 1988 which was designed to bring some relief to no/low property tax cities, the County shifted some of its property taxes to Pleasant Hill in exchange for state trial court funding. The shift was designed to be phased in over seven years, starting at 1% and increasing 1% per year for seven years, leveling out at 7%.

Due to later ERAF legislation, the shift was adjusted to level out at 6.09% instead of 7% and will remain there unless the law changes. The annual shift is a result of a formula specified in the law, and is included in the amounts listed here. In addition, the Redevelopment Agency has received property tax increments since 1975 to service debt and, as required by law since 1977, to fund low and moderate housing and rehabilitation; only the amount used for debt service is included here. $1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Millions
Taxes Levied and Collected
Taxes Levied
98 10.2.a
Packet Pg. 257 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Ratio of Outstanding Debt by Type
Last Ten Fiscal Years
2013 CalPERS Bank of Montreal Lease
Refunding Loan Loan for Revenue
Fiscal Year with Umpqua Bank Library Project Refunding Total 2014 3,319,000 $ n/a 2, $ 5, 270,000 $ 589,000
2015 2,530,000 n/a 1, 4, 560,000 090,000
2016 1,715,000 n/a 2, 825,000 540,000
2017 872,000 n/a - 872,000
2018 - n/a - -
2019 - n/a - -
2020 - n/a - -
2021 - 24, $ - 840,359 24, 840,359
2022 - 22, - 773,691 22, 773,691
2023 - 20, - 670,698 20, 670,698
Fiscal Year
Total Primary
Government
Percentage of
Personal Income Per Capita
2014 4,090,000 0.29% 121.61
2015 2,540,000 0.18% 74.99
2016 872,000 0.06% 25.71
2017 n/a n/a n/a
2018 n/a n/a n/a
2019 n/a n/a n/a
2020 n/a n/a n/a
2021 24,840,359 (a) 1.37% 724.91
2022 22,773,691 1.15% 667.20
2023 20,670,698 0.96% 618.94
Sources: Reported as calendar year provided by HdL Companies report based on the following sources:

Population: California Department of Finance
Unemployment Data: California Employment Development Department (a)
Income, Age and Education Data: ESRI-Demographic estimates based on the last available Census. Projections are developed by incorporating all of the prior census data released to date. Post census trends in the population are extracted from a variety of date sources. Demographic Data is totaled form Census Block Groups that overlap the City's boundaries.

Governmental Activities-includes General, Redevelopment and Special Assessment Debt (excludes Successor Agency) During fiscal year 20/21, the City entered into loan financing with Bank of Montreal (formerly Bank of the West) for the library project.
$‐
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Thousands
Amount of Outstanding Debt
Governmental Activities
99 10.2.a
Packet Pg. 258 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Computation of Direct and Overlapping Debt
June 30, 2023
2022-23 Assessed Valuation $ 7,762,683,422
Percentage Amount
Net Applicable Applicable
Debt To City of To City of
OVERLAPPING TAX AND ASSESSMENT DEBT: Outstanding Pleasant Hill (1) Pleasant Hill Bay Area Rapid Transit District $ 0.815% 20,246,923 2,484,285,000 $ East Bay Regional Park District 1.290% 2,269,820 175,955,000 Contra Costa Community College District 649,015,000 3.087% 20,035,093 Mount Diablo Unified School District 388,584,259 15.225% 59,161,953 Mount Diablo Unified School District Community Facilities District No. 1 3,170,000 15.251% 483,457 Pleasant Hill Recreation and Park District 21,920,000 76.545% 16,778,664 TOTAL GROSS DIRECT AND OVERLAPPING TAX AND ASSESSMENT DEBT $ 118,975,910 3,722,929,259 $ TOTAL OVERLAPPING TAX AND ASSESSMENT DEBT $ 118,975,910 DIRECT AND OVERLAPPING GENERAL FUND DEBT:

Contra Costa County General Fund Obligations 193,515,000 $ 3.077% 5,954,457 $ Mount Diablo Unfiied School District Certificates of Participation 11,350,000 15.225% 1,728,038 Pleasant Hill Recreation and Park District Certificates of Participation 5,058,000 76.545% 3,871,646 City of Pleasant Hill General Fund Obligation 20,670,698 100.000% 20,670,698 TOTAL OVERLAPPING GENERAL FUND OBLIGATION DEBT $ 32,224,839 230,593,698 $ Less: Contra Costa County self-supported 1,567,096
NET DIRECT AND OVERLAPPING GENERAL FUND DEBT $ 30,657,743 OVERLAPPING TAX INCREMENT DEBT (Successor Agency) 3,680,000 $ 100.000% 3,680,000 $ TOTAL DIRECT DEBT $ 20,670,698
TOTAL GROSS OVERLAPPING DEBT $ 134,210,051
TOTAL NET OVERLAPPING DEBT $ 132,642,955
GROSS COMBINED TOTAL DEBT $ 154,880,749
NET COMBINED TOTAL DEBT $ 153,313,653 (1) Percentage of overlapping agency's assessed valuation located within boundaries of the City.

RATIOS TO 2022-23 ASSESSED VALUATION:

Total Overlapping Tax and Assessment Debt 1.53%
Total Direct Debt ($24,840,359) 0.27%
Gross Combined Total Debt 2.00%
Net Combined Total Debt 1.98%
RATIOS TO REDEVELOPMENT SUCCESSOR AGENCY INCREMENTAL VALUE ($745,432,590):

Total Overlapping Tax Increment Debt 0.49%
Source: California Municipal Statistics, Inc.

Excludes tax and revenue anticipation notes, enterprise revenue, mortgage revenue and tax allocation bonds and non-bonded capital lease obligations. 100

10.2.a
Packet Pg. 259 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Computation of Legal Bonded Debt Margin
Last Ten Fiscal Years
ASSESSED VALUATION:

Secured property assessed value, net of exempt real property $ 7,762,683,422 BONDED DEBT LIMIT (3.75% OF ASSESSED VALUE) (a) $ 291,100,628 AMOUNT OF DEBT SUBJECT TO LIMIT (b): (20,670,698)
LEGAL BONDED DEBT MARGIN $ 270,429,930
Total net debt
Total Net Debt Legal applicable to the limit
Fiscal Debt Applicable to Debt as a percentage
Year Limit Limit Margin of debt limit
2014 170,654,612 2,270,000 168,384,612 1.35%
2015 186,829,468 1,560,000 185,269,468 0.84%
2016 198,597,565 825,000 197,772,565 0.42%
2017 209,320,674 - 209,320,674 0.00%
2018 220,338,608 - 220,338,608 0.00%
2019 231,461,657 - 231,461,657 0.00%
2020 248,131,224 - 248,131,224 0.00%
2021 261,184,589 24,840,359 236,344,230 10.51%
2022 274,038,028 22,773,691 251,264,337 9.06%
2023 291,100,628 20,670,698 270,429,930 7.64%
NOTE:
(a)
(b)
California Government Code, Section 43605 sets the debt limit at 15%. The Code section was enacted prior to the change in basing assessed value to full market value when it was previously 25% of market value. Thus, the limit shown as 3.75% is onefourth the limit to account for the adjustment of showing assessed valuation at full cash value.

Includes special assessment bonds and all debt supported by general fund revenues, including general obligations, street bonds, refunding lease revenue bonds and lease financing loan. Excludes Pleasant Hill Redevelopment Agency tax allocation refunding bonds.
101

10.2.a
Packet Pg. 260 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Demographic Statistics
Last Ten Calendar Years
Calendar
Year
City
Population
Personal Income
(in thousands)
Per Capita
Personal
Income
Unemployment
Rate
2013 33,872 $1,396,373 $41,225 4.9%
2014 33,917 1,442,083 42,518 5.1%
2015 34,077 1,474,841 43,279 4.2%
2016 34,657 1,480,283 42,712 3.7%
2017 35,068 1,619,591 46,184 3.0%
2018 35,055 1,736,518 49,593 2.8%
2019 34,267 1,810,977 52,849 2.7%
2020 34,133 1,974,023 57,833 7.5%
2021 34,026 2,026,959 59,570 5.2%
2022 33,397 2,156,060 64,558 3.1%
Source: Reports as of calendar year provided by the HdL Companies 32,500
33,000
33,500
34,000
34,500
35,000
35,500
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
City Population
$0
$20,000
$40,000
$60,000
$80,000
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Per Capita Personal Income

0.0%

2.0%

4.0%

6.0%

8.0%
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Unemployment Rate
102

10.2.a
Packet Pg. 261 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Top 25 Sales Tax Producers
Current Year and Nine Years Ago
* Business in Top 25 of the Sales Tax Producers
Business Name Business Category 2022-23 2013-14
Arco Service Stations x
AT&T Mobility Electronics/Appliance Stores x
Bed Bath & Beyond Home Furnishings x
Best Buy Electronics/Appliance Stores x x
Burlington Family Apparel x
Buskirk Chevron Service Stations x x
Buy Buy Baby Family Apparel x
Carmax Used Automobile Dealer x
Dick's Sporting Goods Sporting Goods/Bike Stores x
Floor & Décor Building Materials x
Friedman's Appliances Electronics/Appliance Stores x x
Harbor Freight Tools Building Materials x
Home Goods Home Furnishings x
In N Out Burger Quick-Service Restaurants x x
Jacks Restaurant Casual Dining x x
Kohls Department Stores x x
Lookingpoint Office Equipment x
Marshalls Family Apparel x x
Michaels Arts & Crafts Art/Gift/Novelty Store x x
Nordstrom Rack Department Stores x x
Pacific States Petroleum Petroleum Prod/Equipment x
Pleasant Hill Chevron Service Stations x x
Ross Family Apparel x x
Safeway Grocery Stores x x
Safeway Fuel Service Stations x x
Staples Office Supplies/Furniture x
Sun Valley Chevron Service Stations
Sun Valley Shell Service Stations x x
Target Discount Department Stores x x
TJ Maxx Family Apparel x
Total Wine & More Convenience Stores/Liquors x
Toys R Us Speciality Store x
USA Gas Service Stations x x
Verizon Wireless Electronics/Appliance Stores x
Source: State Board of Equalization, California Department of Taxes and Fees Administration, the HdL Companies. 103

10.2.a
Packet Pg. 262 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Apparel Stores 51,402 $ 52,931 $ 57,028 $ 57,335 $ 53,372 $ 49,873 $ 56,898 $ 37,637 $ 58,358 $ 56,048 $ General Merchandise 79,481 92,507 94,199 93,452 96,134 91,851 83,497 60,527 71,340 71,544 Food Stores 31,117 31,741 30,307 30,301 28,409 28,145 28,807 30,967 29,812 30,803 Eating and Drinking Places 102,055 108,428 118,019 122,788 123,566 127,238 127,896 97,097 123,529 141,868 Building Materials 29,894 28,809 29,659 34,630 36,243 35,637 31,577 33,647 44,211 50,712 Auto Dealers and Supplies 10,492 12,551 14,218 18,909 16,261 14,023 31,036 59,813 93,165 88,167 Service Stations 87,660 83,653 69,702 60,334 68,476 81,146 82,471 51,153 71,741 92,867 Other Retail Stores 221,871 239,907 252,981 252,284 255,597 258,428 263,172 243,042 302,245 308,304 All Other Outlets 54,288 50,718 65,615 63,542 67,028 56,580 99,496 87,753 290,704 293,815 Total 668,260 $ 701,245 $ 731,728 $ 733,575 $ 745,086 $ 742,921 $ 804,850 $ 701,636 $ 1,085,105 $ 1,134,128 $ Sources: State Board of Equalization, California Department of Taxes and Fees Administration, State Contoller's Office, the HdL Companies Note: Due to confidentiality issues, the names of the ten largest revenue payers are not available. The categories presented are intended to provide alternative information regarding the sources of the City's revenue.

CITY OF PLEASANT HILL
Taxable Sales by Category
Last Ten Calendar Years
(Dollars in thousands)
Adjusted for Economic Data
104

10.2.a
Packet Pg. 263 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Full-Time Equivalent City Government Employees by Function Last Ten Fiscal Years
#
Adopted for Fiscal Year Ended June 30,
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function
General government 16.75 17.75 16.00 17.00 20.00 17.00 17.00 17.00 18.00 18.00 Public safety 54.00 55.00 56.00 58.00 56.00 57.00 58.00 58.00 59.00 59.00 Public works 23.00 23.00 27.00 24.00 26.00 28.00 25.00 24.00 23.00 23.00 Community development 11.00 11.00 8.00 7.00 7.00 7.00 7.00 6.00 7.00 7.00 Total 115.25 117.75 105.50 104.75 106.75 107.00 106.00 109.00 107.00 107.00 Source: City of Pleasant Hill
‐

20.00 40.00

60.00 80.00
100.00
120.00
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
FTE's
Number of Employees
General government Public safety Public works Community development 105

10.2.a
Packet Pg. 264 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Operating Indicators by Function/Program
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Public safety: (a)
Incident numbers issued 19,582 20,685 20,054 21,145 21,473 27,185 25,634 22,921 23,035 23,669 Traffic citations issued 3,964 5,626 5,126 5,940 3,176 5,282 912 943 1,047 706 Violent Crimes 195 217 235 221 217 74 97 75 66 59
Willful homicide - - - - 1 - - - - 2
Forcible rape 3 2 3 4 6 10 5 1 6 4
Robbery 30 37 44 37 32 42 50 34 18 35
Aggravated assaults 50 48 41 37 27 25 42 59 41 37
Property Crimes 1,564 1,854 1,511 1,623 1,536 1,439 1,476 1,220 1,448 1,588 Burglary 233 211 142 169 143 104 191 119 147 164
Motor Vehicle theft 158 189 198 170 77 86 153 132 143 117 Public works:

Miles of paved streets 110 110 110 110 110 110 110 110 110 110 Number of street lights 1,966 1,966 1,966 1,966 1,966 1,966 1,966 1,966 1,966 1,966 General Government:
(b) Business Licenses renewals (excludes Out of City) 2,961 3,011 3,320 3,250 3,400 3,450 3,300 3,495 3,150 N/A (b) Business License Out of City Contractor 2,523 2,700 2,400 2,100 2,200 2,300 2,100 1,900 2,050 N/A Community Development:

Building permits issued 1,074 2,217 2,145 1,428 1,564 1,558 1,492 1,784 1,472 1,942 Approximate value of building permits 29,054,093 31,562,332 43,311,461 32,110,238 52,602,460 38,848,143 58,981,804 83,578,342 123,776,547 143,169,044 Building inspections conducted 7,013 7,225 7,453 5,915 5,585 N/A 5,682 5,844 8,148 6,346 Source: City of Pleasant Hill
(a) Covers twelve months period November to November.
(b) City has implemented a new system and the data is not aviailable for FY 2023. 106

10.2.a
Packet Pg. 265 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Capital Asset Statistics by Function/Program
Last Ten Fiscal Years
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Function/Program
Public safety:

Police stations 1 1 1 1 1 1 1 1 1 1
Public works:

Miles of streets 110 110 110 110 110 110 110 110 110 110 Street lights 1,966 1,966 1,966 1,966 1,966 1,966 1,966 1,966 1,966 1,966 Pavement Condition
Index 66 66 66 66 68 68 68 70 73 73
Recreation:

Open space acres 207 207 207 207 207 207 207 207 207 207 Number of parks owned 11 11 11 11 11 11 11 11 11 11
Number of acres 66.2 66.2 66.2 66.2 66.2 66.2 66.2 66.2 66.2 66.2 Library - - - - - - - - - 1
Fire protection:

Number of stations 2 2 2 2 2 2 2 2 2 2
Source: City of Pleasant Hill
107

10.2.a
Packet Pg. 266 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) 108
This page is left intentionally blank.

10.2.a
Packet Pg. 267 Attachment: Annual Comprehensive Financial Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL, CALIFORNIA
Report to Those Charged With Governance
For the Year Ended June 30, 2023

10.2.b
Packet Pg. 268 Attachment: Management Letter - FY2023 (Annual Comprehensive Financial Report (ACFR)) www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N California Blvd. Suite 750
Walnut Creek, CA 94596 1
January 29, 2024
To the Honorable Mayor and Members
of the City Council of the City of Pleasant Hill
Pleasant Hill, California
We are pleased to present this report related to our audit of the governmental activities, the business type activities, each major fund, and the aggregate remaining fund information of the City of Pleasant Hill (City), as of and for the year ended June 30, 2023. This report summarizes certain matters required by professional standards to be communicated to you in your oversight responsibility for the City’s financial reporting process.

This report is intended solely for the information and use of the City Council and management, and is not intended to be, and should not be, used by anyone other than these specified parties. It will be our pleasure to respond to any questions you have about this report. We appreciate the opportunity to continue to be of service to the City.

Walnut Creek, California

10.2.b
Packet Pg. 269 Attachment: Management Letter - FY2023 (Annual Comprehensive Financial Report (ACFR)) 2 TABLE OF CONTENTS
Required Communications 3
Exhibits
Exhibit A—Recent Accounting Pronouncements 10
Exhibit B—Summary of Uncorrected Financial Statement Misstatements 12

10.2.b
Packet Pg. 270 Attachment: Management Letter - FY2023 (Annual Comprehensive Financial Report (ACFR)) 3 REQUIRED COMMUNICATIONS
Auditing standards generally accepted in the United States of America (AU-C 260, The Auditor’s Communication With Those Charged With Governance) require the auditor to promote effective two-way communication between the auditor and those charged with governance. Consistent with this requirement, the following summarizes our responsibilities regarding the financial statement audits as well as observations arising from our audits that are significant and relevant to your responsibility to oversee the financial reporting process.

Our Responsibilities With Regard to the Financial Statement Audit Our responsibilities under auditing standards generally accepted in the United States of America and Government Auditing Standards issued by the Comptroller General of the United States have been described to you in our engagement letter dated June 27, 2023. Our audit of the City’s financial statements does not relieve management or those charged with governance of their responsibilities, which are also described in that letter.

Overview of the Planned Scope and Timing of the Financial Statement Audits We conducted our audits consistent with the planned scope and timing in our engagement letter dated June 27, 2023.

Accounting Policies and Practices
Preferability of Accounting Policies and Practices
Under accounting principles generally accepted in the United States of America, in certain circumstances, management may select among alternative accounting practices. In our view, in such circumstances, management has selected the preferable accounting practice.

Adoption of, or Change in, Accounting Policies
Management has the ultimate responsibility for the appropriateness of the accounting policies used by the City. A summary of the significant policies adopted by the City is included in Note 1 to the financial statements. As described in Note 1.N. to the financial statements, the following is a description of Governmental Accounting Standards board (GASB) Statements that the City implemented during the year:
• GASB Statement No. 91 – Conduit Debt Obligations
This statement provides a single method of reporting conduit debt obligations by issuers and eliminates diversity in practice associated with (1) commitments extended by issuers, (2) arrangements associated with conduit debt obligations, and (3) related note disclosures. This statement achieves those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. The statement did not have any effect on the City’s financial statements. • GASB Statement No. 94 - Public-Private and Public-Public Partnerships and Availability Payment Arrangements
This statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial

10.2.b
Packet Pg. 271 Attachment: Management Letter - FY2023 (Annual Comprehensive Financial Report (ACFR)) 4 asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Some PPPs meet the definition of a service concession arrangement (SCA), which the Board defines in this statement as a PPP in which (1) the operator collects and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify or approve which services the operator is required to provide, to whom the operator is required to provide the services, and the prices or rates that can be charged for the services; and (3) the transferor is entitled to significant residual interest in the service utility of the underlying PPP asset at the end of the arrangement. This statement also provides guidance for accounting and financial reporting for availability payment arrangements (APAs). As defined in this statement, an APA is an arrangement in which a government compensates an operator for services that may include designing, constructing, financing, maintaining, or operating an underlying nonfinancial asset for a period of time in an exchange or exchange-like transaction. The statement did not have any effect on the City’s financial statements.
• GASB Statement No. 96 – Subscription-Based Information Technology Arrangements This statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset— an intangible asset—and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended. A SBITA is defined as a contract that conveys control of the right to use another party’s (a SBITA vendor’s) information technology (IT) software, alone or in combination with tangible capital assets (the underlying IT assets), as specified in the contract for a period of time in an exchange or exchange-like transaction. The subscription term includes the period during which a government has a noncancelable right to use the underlying IT assets. The subscription term also includes periods covered by an option to extend (if it is reasonably certain that the government or SBITA vendor will exercise that option) or to terminate (if it is reasonably certain that the government or SBITA vendor will not exercise that option). Under this statement, a government generally should recognize a right-to-use subscription asset—an intangible asset—and a corresponding subscription liability. The statement did not have any effect on the City’s financial statements.
• GASB Statement No. 99 – Omnibus 2022
The objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing: (1) Classification and reporting of derivative instruments within the scope of Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, that do not meet the definition of either an investment derivative instrument or a hedging derivative instrument; (2) Clarification of provisions in Statement No. 87, Leases, as amended, related to the determination of the lease term, classification of a lease as a short-term lease, recognition and measurement of a lease liability and a lease asset, and identification of lease incentives; (3) Clarification of provisions in Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, related to (a) the determination of the public-private and publicpublic partnership (PPP) term and (b) recognition and measurement of installment payments and the transfer of the underlying PPP asset; (4) Clarification of provisions in Statement No. 96, SubscriptionBased Information Technology Arrangements, related to the subscription-based information technology arrangement (SBITA) term, classification of a SBITA as a short-term SBITA, and recognition and measurement of a subscription liability; (5) Extension of the period during which the London Interbank Offered Rate (LIBOR) is considered an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap that hedges the interest rate risk of taxable debt;

10.2.b
Packet Pg. 272 Attachment: Management Letter - FY2023 (Annual Comprehensive Financial Report (ACFR)) 5 (6) Accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance Program (SNAP); (7) Disclosures related to nonmonetary transactions; (8) Pledges of future revenues when resources are not received by the pledging government; (9) Clarification of provisions in Statement No. 34, Basic Financial Statements—and Management’s Discussion and Analysis—for State and Local Governments, as amended, related to the focus of the government-wide financial statements; (10) Terminology updates related to certain provisions of Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position; and (11) Terminology used in Statement 53 to refer to resource flows statements.

The requirements of this statement that are effective as follows: Items (5), (6), (7), (8), (9), (10), and (11) were implemented starting FY 2022; items (2), (3), and (4) related to leases, PPPs, and SBITAs were implemented for FY 2023 reporting purposes. The required changes are reflected in the City’s financial statements and notes to the statements, as necessary. Item (1), which is related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement No. 53 will take effect for financial statements starting with the fiscal year that ends June 30, 2024.

Significant Accounting Policies
We did not identify any significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Unusual Transactions
We did not identify any significant unusual transactions.

Management’s Judgments and Accounting Estimates
Accounting estimates are an integral part of the preparation of financial statements and are based upon management’s current judgment. The process used by management encompasses their knowledge and experience about past and current events, and certain assumptions about future events. You may wish to monitor throughout the year the process used to determine and record these accounting estimates.

The following is summary information about the process used by management in formulating particularly sensitive accounting estimates and about our conclusions regarding the reasonableness of those estimates:

Significant Accounting Estimates
Measurement of
investments at fair value
The City’s investments are accounted for in accordance with the provisions of GASB Statement No. 72, Fair Value Measurement and Application, and accordingly, its fair value measurements are categorized within the fair value hierarchy established by the standard.

The following levels indicate the hierarchy of inputs used to measure fair value and the primary valuation methodologies used for financial instruments measured at fair value on a recurring basis:
o Level 1 – Investments whose values are based on quoted prices (unadjusted) for identical assets in active markets that a government can access at the measurement date.
o Level 2 – Investments whose values are based on inputs – other than quoted prices including prices included within level 1 – that are observable for an asset, either directly or indirectly.

10.2.b
Packet Pg. 273 Attachment: Management Letter - FY2023 (Annual Comprehensive Financial Report (ACFR)) 6 Significant Accounting Estimates
o Level 3 – Investments whose values are based on
unobservable inputs for an asset and may require a degree of professional judgment.

All the City’s investments are measured using level 2 inputs, except for investments in California Local Agency Investment Fund, money market mutual funds, and equity mutual funds which are not subject to fair value hierarchy.

MGO compared investment values from quoted market information and using pricing applications and models obtained from custodian bank, fiscal agents or other sources and determined that they were reasonable.

Depreciation and
amortization of capital
assets, including
depreciation/amortization
methods and useful lives
assigned to
depreciable/amortizable
property
Useful lives for depreciable capital assets were determined by management based on the nature of the capital asset. Depreciation was calculated based on the straight-line method.

MGO assessed the reasonableness of the useful lives based on the nature of the capital assets and performed substantive analytical procedures on depreciation expense and determined the estimates were reasonable.

Estimated allowance for
losses on notes and loans
receivable
The allowance for losses on notes and loans receivable was based on management’s estimate regarding the likelihood of collectability.

MGO assessed the reasonableness of the allowances based on the nature of the notes and loans receivable and performed substantive analytical procedures on the balances and determined the estimates were reasonable.

Accrual of compensated
absences
The accruals of compensated absences are based on accrued eligible hours of vacation and other compensated leave for eligible employees.

MGO assessed the reasonableness of the accrual based on the nature of the compensated absences and performed substantive analytical procedures on the balances and determined the accrual was reasonable.

Net pension liabilities,
contributions, expenses,
and other related balances
These balances are based on actuarial valuations performed by the California Public Employees’ Retirement System’s independent actuaries.

MGO agreed the calculations to the actuarial valuations developed through CalPERS and tested the reasonableness of allocations to various City funds.

Claims loss reserve The City is exposed to a variety of risks of loss due to general liability, workers’ compensation and other claims, and records an estimate of these losses based on actuarial studies performed by third-party

10.2.b
Packet Pg. 274 Attachment: Management Letter - FY2023 (Annual Comprehensive Financial Report (ACFR)) 7 Audit Adjustments and Uncorrected Misstatements
Uncorrected misstatements are summarized in the attached list of Uncorrected misstatements (Exhibit B).

Uncorrected misstatements or matters underlying these uncorrected misstatements could potentially cause future-period financial statements to be materially misstated, even if we have concluded that the uncorrected misstatements are immaterial to the financial statements under audit.

Departure From the Auditor’s Standard Report
There were no departures from the Auditor’s Standard Report.

Observations About the Audit Process
Disagreements With Management
We encountered no disagreements with management over the application of significant accounting principles, the basis for management’s judgments on any significant matters, the scope of the audit or significant disclosures to be included in the City’s financial statements.

Consultations With Other Accountants
We are not aware of any consultations management had with other accountants about accounting or auditing matters.

Significant Issues Discussed With Management
No significant issues arising from the audit were discussed or were the subject of correspondence with management.

Significant Difficulties Encountered in Performing the Audit We did not encounter any significant difficulties in dealing with management during the audit.

Shared Responsibilities for Independence
Independence is a joint responsibility and is managed most effectively when management, audit committees (or their equivalents), and audit firms work together in considering compliance with American Institute of Certified Public Accountants (AICPA) and Government Accountability Office (GAO) independence rules.

For MGO to fulfill its professional responsibility to maintain and monitor independence, management, the Board of Commissioners, and MGO each play an important role.

Significant Accounting Estimates
actuaries. These studies are prepared based on the City’s prior claims history, which is used as a basis for extrapolating losses for known and incurred but not reported claims. Actual loss experience may vary from these estimates.

MGO reviewed the actuarial valuations and the related assumptions used in the City’s calculations for these liabilities, and determined them to be reasonable.

10.2.b
Packet Pg. 275 Attachment: Management Letter - FY2023 (Annual Comprehensive Financial Report (ACFR)) 8 Our Responsibilities

1. AICPA and GAO rules require independence both of mind and in appearance when providing audit and other attestation services. MGO is to ensure that the AICPA and GAO’s General Requirements for performing non-attest services are adhered to and included in all letters of engagement.

2. Maintain a system of quality management over compliance with independence rules and firm policies.

The City’s Responsibilities

1. Timely inform MGO, before the effective date of transactions or other business changes, of the following:
a. New affiliates, directors, or officers.
b. Changes in the organizational structure or the reporting entity impacting affiliates such as subsidiaries, partnerships, related entities, investments, joint ventures, component units, and jointly governed organizations.

2. Provide necessary affiliate information such as new or updated structure charts, as well as financial information required to perform materiality calculations needed for making affiliate determinations.

3. Understand and conclude on the permissibility, prior to the City and its affiliates, officers, directors, or persons in a decision-making capacity, engaging in business relationships with MGO.

4. Not entering into arrangements of nonaudit services resulting in MGO being involved in making management decisions on behalf of the City.

5. Not entering into relationships resulting in close family members of MGO covered persons, temporarily or permanently acting as an officer, director, or person in an accounting, financial reporting or compliance oversight role at the City.

10.2.b
Packet Pg. 276 Attachment: Management Letter - FY2023 (Annual Comprehensive Financial Report (ACFR)) 9 EXHIBIT A
Recent Accounting Pronouncements

10.2.b
Packet Pg. 277 Attachment: Management Letter - FY2023 (Annual Comprehensive Financial Report (ACFR)) 10 RECENT ACCOUNTING PRONOUNCEMENTS
The following accounting pronouncements have been issued as of the date of this communication but are not yet effective and may affect the future financial reporting by the City.

Pronouncement Summary
GASB Statement No. 99,
Omnibus 2022
The objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees.

The requirements related to financial guarantees and the classification and reporting of derivative instruments within the scope of Statement 53 are effective for the City’s fiscal year ending June 30, 2024.

GASB Statement No. 100,
Accounting Changes and Error
Corrections—an amendment of
GASB Statement No. 62
The primary objective of this statement is to enhance accounting and financial reporting requirements for accounting changes and error corrections to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability.

Statement No. 100 is effective for the City’s fiscal year ending June 30, 2024.

GASB Statement No. 101,
Compensated Absences
The objective of this statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures.

Statement No. 101 is effective for the City’s fiscal year ending June 30, 2025.

GASB Statement No. 102,
Certain Risk Disclosures
The objective of this statement is to provide users of government financial statements with essential information about risks related to a government’s vulnerabilities due to certain concentrations or constraints.

Statement No. 102 is effective for the City’s fiscal year ending June 30, 2025.

10.2.b
Packet Pg. 278 Attachment: Management Letter - FY2023 (Annual Comprehensive Financial Report (ACFR)) 11 EXHIBIT B
Summary of Uncorrected Financial Statements Misstatements

10.2.b
Packet Pg. 279 Attachment: Management Letter - FY2023 (Annual Comprehensive Financial Report (ACFR)) 12 Number Accounts/Adjustment Descriptions Debit Credit #1 Expenditures $ 5,444
Accounts Payable $ 5,444
#2 Expenditures 5,636
Accounts Payable 5,636
#3 Expenditures 65,140
Accounts Payable 65,140
(NPDES Fund / Governmental Activities - to record expenditures incurred as of June 30, 2023)
(Measure J Fund / Governmental Activities - to record expenditures incurred as of June 30, 2023)
(Traffic Mitigation Fund / Governmental Activities - to record expenditures incurred as of June 30, 2023)

10.2.b
Packet Pg. 280 Attachment: Management Letter - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Measure K Fund
Independent Auditor’s Reports and
Financial Statements
For the Year Ended June 30, 2023

10.2.c
Packet Pg. 281 Attachment: Measure K Fund Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Measure K Fund
For the Year Ended June 30, 2023
Table of Contents
Page
Financial Section
Independent Auditor’s Report ....................................................................................................................... 1 Balance Sheet ................................................................................................................................................ 3 Statement of Revenues, Expenditures, and Changes in Fund Balance ......................................................... 4 Notes to Financial Statements ....................................................................................................................... 5 Internal Control and Compliance Section
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards ........................................................................... 9

10.2.c
Packet Pg. 282 Attachment: Measure K Fund Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N California Blvd. Suite 750
Walnut Creek, CA 94596
1 Independent Auditor’s Report
City Council and
Measure K Oversight Committee
City of Pleasant Hill, California
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of the Measure K Fund (Fund) of the City of Pleasant Hill, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the financial position of the Fund as of June 30, 2023, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Emphasis of a Matter
As discussed in Note 2, the financial statements present only the Fund and do not purport to, and do not, present fairly the financial position of the City as of June 30, 2023, and the changes in its financial position, or, where applicable, its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

10.2.c
Packet Pg. 283 Attachment: Measure K Fund Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) 2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS and Government Auditing Standards, we  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 29, 2024, on our consideration of the City’s internal control over the Fund’s financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over the Fund’s financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over the Fund’s financial reporting and compliance.

Walnut Creek, California
January 29, 2024

10.2.c
Packet Pg. 284 Attachment: Measure K Fund Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) June 30, 2023
Assets
Cash and investments held in City Treasury 3,421,357 $
Tax receivable 1,003,182
Interest receivable 41,148
Total assets $ 4,465,687
Liabilities and Fund Balance
Liabilities
Accounts payable 8,175 $
Fund Balance
Restricted 491,263
Assigned 3,966,249
Total fund balance 4,457,512
Total liabilities and fund balance $ 4,465,687

CITY OF PLEASANT HILL
Measure K Fund
Balance Sheet
See accompanying Notes to Financial Statements.
3 10.2.c
Packet Pg. 285 Attachment: Measure K Fund Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) For the Year Ended June 30, 2023
Revenues
Measure K transactions & use tax 5,505,620 $
Contributions from other agencies 27,500
Use of money and property 160,771
Total revenues 5,693,891
Expenditures
Capital outlay - New library project 3,738,878
Library maintenance and operations 169,914
Others 7,559
Debt service:

Principal 2,102,993
Interest and fiscal charges 389,379
Total expenditures 6,408,723
Other Financing Sources (Uses)
Transfers out to other funds (5,018,121)
Net change in fund balance (5,732,953)
Fund balance - beginning 10,190,465
Fund balance - ending $ 4,457,512

CITY OF PLEASANT HILL
Measure K Fund
Statement of Revenues, Expenditures, and Changes in Fund Balance See accompanying Notes to Financial Statements.
4 10.2.c
Packet Pg. 286 Attachment: Measure K Fund Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Measure K Fund
Notes to Financial Statements
For the Year Ended June 30, 2023
5 NOTE 1 – DESCRIPTION OF REPORTING ENTITY
In November 2016, registered voters of the City of Pleasant Hill (City) approved Measure K, authorizing a half-cent transaction and use tax to for the funding of the construction of improvements to neighborhood library facilities and infrastructure throughout the City.

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of Presentation
The Measure K Fund (Fund) is accounted for as part of the City’s General Fund, which is a type of governmental fund included in the City’s basic financial statements. The City’s General Fund accounts for all of the general revenues and financial resources of the City not specifically levied or collected for the other City funds, as well as the related expenditures.

The financial statements do not purport to, and do not, present the financial position or changes in financial position of the City. The projects represent a portion of the activities of the City and, as such, are included in the City’s basic financial statements. (b) Basis of Accounting
The accompanying financial statements have been prepared on the modified accrual basis of accounting. Under the modified accrual basis of accounting, expenditures are recorded when the related governmental fund liabilities are incurred. Revenues, including transaction and uses tax, are recognized when they become measurable and available (generally received within 45 days after year-end).
(c) Fund Balance
The City established a policy on governmental fund balance financial reporting to provide necessary clarification on the terminology used in the fund balance classifications and assist with adhering to the requirements of Governmental Accounting Standards Board (GASB) Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions. GASB Statement No. 54 outlines the requirements to report fund balance for governmental funds in specific classifications (nonspendable, restricted, committed, assigned and unassigned), which create a hierarchy primarily based on the extent to which the City is bound to the constraints on the specific purposes for which funds can be spent. Restricted fund balance represents amount that can be spent for specific purposes stipulated by external resource providers, constitutionally, or through enabling legislation. Assigned fund balance represents amounts intended to be used by the City for specific purposes that are neither restricted nor committed. Intent is expressed by the City Council or the City Manager to whom the City Council has delegated the authority to assign amounts to be used for specific purposes by adoption of a resolution. As of June 30, 2023, $491,263 represents restricted fund balance for capital projects funded through a lease financing loan, all of which related to encumbrances. $3,966,249 was assigned fund balance for capital projects funded by Measure K revenue, of which $132,646 related to encumbrances.

10.2.c
Packet Pg. 287 Attachment: Measure K Fund Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Measure K Fund
Notes to Financial Statements
For the Year Ended June 30, 2023
6 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) (d) Use of Estimates
The preparation of financial statements requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Actual results could differ from those estimates.

NOTE 3 – CASH AND INVESTMENTS HELD IN CITY TREASURY
Cash and investments held in City Treasury represent the Fund’s share of the City Treasury’s pool. All of the Fund’s cash and investments are deposited in the City Treasury’s pool as described in the City’s Annual Comprehensive Financial Report, which can be obtained from the City’s Department of Finance. Investments in the pool are made in accordance with the City’s investment policy as approved by the City Council. Investments are stated at fair value. However, the value of the pool shares in the City Treasury’s pool that may be withdrawn is determined on an amortized cost basis, which is different from the fair value of the Fund’s position in the pool.

Interest earned from cash and investments held in City Treasury is allocated quarterly to all City funds, including the Fund, based on the City funds’ cash balance. At June 30, 2023, the City Treasury’s pool is unrated and has a weighted average maturity of 310 days. The Fund’s investments in the City Treasury’s pool is exempt from fair value hierarchy disclosure.

NOTE 4 – TRANSFERS TO AND FROM OTHER FUNDS
Resources may be transferred from one City fund to another with City Council or City Manager approval. The purpose of the transfers is to support capital projects activities of another City fund. During the year ended June 30, 2023, the Fund transferred $5,018,121 to other City funds.

The following schedule summarized the Fund’s transfer out activities:

Current Year Total Amount
Amount Unspent as of
Fund Receiving Transfers Transfer Purpose Transferred June 30, 2023 Gas Tax Fund Pedestrian and Bicycle Program $ 509,600 $ 774,230 Gas Tax Fund Street Resurfacing Program 1,248,400 587,289 Gas Tax Fund Pot Hole Repair 100,000 -
Gas Tax Fund Zone 17 Street Maintenance 1,000,000 -
Gas Tax Fund Pedestrian Crossing Project 700,000 683,650 Gas Tax Fund Oak Park Gap Closure 805,000 743,308
NPDES Fund Storm Drain Improvement Program 535,121 615,414 Vehicle Replacement Fund Library Maintenance Vehicle 70,000 70,000 Measure J Fund Measure J Sidewalk Replacement 50,000 -
Total Transfers To Other Funds $ 5,018,121 $ 3,473,891

10.2.c
Packet Pg. 288 Attachment: Measure K Fund Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY OF PLEASANT HILL
Measure K Fund
Notes to Financial Statements
For the Year Ended June 30, 2023
7 NOTE 5 – LOAN FINANCING – NEW LIBRARY
The City is financing the construction of a new library building, a portion of the Oak Park Monticello Backbone Infrastructure Improvements, and incidental expenses in the amount of $26,396,078 through a lease financing private placement loan with Bank of the West executed on August 1, 2020. The interest rate on the private placement is 1.75% per annum. Payments are to be made semiannually on December 1 and June 1 with final maturity on June 1, 2032. The loan’s debt service payments will be funded with Measure K revenues. As of June 30, 2023, total debt service requirements remaining on the Lease Financing are $22,431,346.

10.2.c
Packet Pg. 289 Attachment: Measure K Fund Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) 8 This page is intentionally blank.

10.2.c
Packet Pg. 290 Attachment: Measure K Fund Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) www.mgocpa.com
Macias Gini & O’Connell LLP
2121 N California Blvd. Suite 750
Walnut Creek, CA 94596
9 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards City Council and
Measure K Oversight Committee
City of Pleasant Hill, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards), the financial statements of the Measure K Fund (Fund) of the City of Pleasant Hill, California (City), as of and for the year ended June 30, 2023, and the related notes to the financial statements, and have issued our report thereon dated January 29, 2024.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over the Fund’s financial reporting (internal control) as a basis of designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Fund’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

10.2.c
Packet Pg. 291 Attachment: Measure K Fund Report - FY2023 (Annual Comprehensive Financial Report (ACFR)) 10 Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Walnut Creek, California
January 29, 2024

10.2.c
Packet Pg. 292 Attachment: Measure K Fund Report - FY2023 (Annual Comprehensive Financial Report (ACFR))

CITY COUNCIL STAFF REPORT
Meeting Date: February 26, 2024
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
SUBJECT: RECEIVE CONCEPTUAL DESIGN OPTIONS AND PROVIDE

DIRECTION TO STAFF FOR THE CITY HALL POND, FOUNTAIN,

PLAZA PAVING, AND DONOR MEMORIAL REHABILITATION

PROJECT

SYNOPSIS
Robert Nebolon Architects (consultant) will present his preliminary conceptual design options for the City Hall Pond, Fountain, Plaza Paving, and Memorial Wall Rehabilitation Project (Project) for the City Council’s consideration and feedback. The preliminary conceptual design(s) have identified deficiencies and potential solutions, evaluated preliminary construction estimates, and provided conceptual schematic designs that enhance the architectural style of Pleasant Hill City Hall. Staff requests that the City Council consider the proposed concepts and options and provide feedback and direction to staff regarding the Project.

DISCUSSION
Background
Pleasant Hill City Hall. Constructed in 1991, the Pleasant Hill City Hall consists of three structures, including a two-story office building, council chamber, and single-story community room, totaling 32,803 square feet. Highly acclaimed architect Charles Moore designed the facility whose characteristics were inspired by concepts of community and public service. Features such as the fountain, pond, garden, connecting walkways, and use of non-potable well water represent an ecological balance between the natural and built environments. Several components of City Hall have been selected for renovation and/or replacement, as follows: