Agenda packet — Pleasant Hill City Council, February 2, 2026

City of Pleasant Hill

CITY COUNCIL MEETING AGENDA
Monday, February 02, 2026
REGULAR MEETING - 07:00 PM
Watch on YouTube at www.phillca.gov/councilmeeting
The public meeting of the City Council will be held in person at City Hall 100 Gregory Lane, Pleasant Hill, CA 94523. Telephone (925) 671-5267 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: 849 1785 1033 Passcode: 435844

MAYOR ZAC SHESS
VICE MAYOR & DISTRICT 2 COUNCILMEMBER ANDREI OBOLENSKIY

COUNCILMEMBER AT LARGE SUE NOACK
DIST. 1 COUNCILMEMBER BELLE LA
DIST. 5 COUNCILMEMBER AMANDA SZAKATS
Options for observing the meeting and participating in public comments 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.phillca.gov/councilmeeting. 2) Submit Written Comments by 4 pm the Day of the Meeting to [email protected] (comments received by the 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.

City Council Meeting Agenda - Page 1 of 118 - Monday, February 02, 2026 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.phillca.gov/accessiblecommunications and contact the ADA Coordinator 48 hours in advance of the meeting at (925) 671-5267 or via California Relay at 711.

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.phillca.gov/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 U-Verse 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.phillca.gov/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.phillca.gov/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.

CALL TO ORDER

PLEDGE OF ALLEGIANCE

ROLL CALL

CLOSED SESSION REPORT

PRESENTATIONS
Annual Update from the Pleasant Hill Library
Proclamation Recognizing Lunar New Year

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

COUNCIL ANNOUNCEMENTS AND REPORTS
Reports from Councilmembers on Meetings or Conferences Attended at City Expense

1. 2.

3. 4.

5. 5.1

5.2 6.

7. 7.1
City Council Meeting Agenda - Page 2 of 118 - Monday, February 02, 2026 Announcements from Councilmembers

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.

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.

Approve Minutes for the Regular City Council Meeting of January 26, 2026 Page 4 Approve Appointment Recommendation to the Civic Action Commission Page 8 Adopt Resolution No. __-26 Approving a Side Letter of Agreement with the Professional and Confidential Employees’ Association (PACE) to Amend the Memorandum of Understanding Article XIV Evaluations/Bonus Awards

Page 9 ends

Adopt Resolution No. __-26 Authorizing the City Manager to Enter into a Consent to Collateral Assignment of an existing Grant Agreement for the Grayson Creek Apartments at 100 Chilpancingo Parkway

Page 15 ends

ACTION CALENDAR
Adopt Resolution No. __-26 Approving Amended and Restated Municipal Pooling Authority Joint Exercise of Powers Agreement

Page 61 ends

Adopt Resolution No. __-26 Directing the Preparation and Filing of the 2026/2027 Annual Report for Assessment District No. 20 (Commercial Area Landscape and Lighting) and Adopt Resolution No. __-26 Requesting Consent from the City of Concord for Ordering of Improvements and Assessments of Costs for Benefited Property in Assessment District No. 20

Page 85 ends

Adopt Resolution No. __-26 Directing the Preparation and Filing of the 2026/2027 Annual Report for Assessment District No. 22

Page 103 ends

ADJOURNMENT
Next Regular City Council Meeting: February 23, 2026

7.2 8.

9. 9.1

9.2 9.3

9.4 10.

10.1 10.2

10.3 11.

City Council Meeting Agenda - Page 3 of 118 - Monday, February 02, 2026

CITY COUNCIL STAFF REPORT
Meeting Date: February 2, 2026
100 Gregory Lane, Pleasant Hill, CA 94523-3323 – (925) 671-5270 www.pleasanthillca.org
TO: The Honorable Mayor and City Councilmembers
SUBJECT: Approve Minutes for the Regular City Council Meeting of January 26, 2026 RECOMMENDED CITY COUNCIL ACTION: Approve the Minutes
ATTACHMENT(S): January 26, 2026 – Tentative Minutes
Prepared by: Lyone Conner, City Clerk
Item 9.1
City Council Meeting Agenda - Page 4 of 118 - Monday, February 02, 2026

MINUTES OF THE
REGULAR MEETING – CITY COUNCIL
January 26, 2026
City Council Meeting Minutes Page 1 January 26, 2026

1. CALL TO ORDER
Mayor Shess called a Regular Meeting of the City Council to order at 7:03 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 January 22, 2026, by City Clerk Lyone Conner.

2. PLEDGE OF ALLEGIANCE
Mayor Shess invited the Council and Public to join him in reciting the Pledge of Allegiance.

3. ROLL CALL
Attendee Name Title Status
Zac Shess Mayor Present
Andrei Obolenskiy Vice Mayor Present
Belle La District 1 Councilmember Present
Sue Noack District 2 Councilmember Present
Amanda Szakats District 5 Councilmember Present

4. CLOSED SESSION REPORT
Mayor Shess announced that there was a closed session earlier in the evening, and there is nothing to report.

5. PRESENTATIONS

5.1 Presentation on the Summer Concert Series from the Civic Action Commission Civic Action Commissioner Hunter Roberts shared results of the 2026 Summer Concert line-up and discussed changes to the upcoming concert experience.

5.2 Proclamation Designating January 27, 2026 as International Day of Holocaust Remembrance
Vice Chair of the Diversity Commission, Liz Nunan, received the proclamation and shared remarks regarding the observance.

5.3 Introduction of Commission on Aging Commissioner Jenny Lind Councilmember Szakats, Chair of the Interview and Nominating Committee, introduced Jenny Lind of the Commission on Aging.

Commissioner Lind offered her thanks to the Council.

5.4 Introduction of Diversity Commissioner Sharon Jacob Item 9.1
City Council Meeting Agenda - Page 5 of 118 - Monday, February 02, 2026 City Council Meeting Minutes Page 2 January 26, 2026
Councilmember Szakats also introduced Sharon Jacob of the Diversity Commission.

Commissioner Jacob provided remarks to the Council regarding her appointment.

6. CITY MANAGER COMMENTS
Ethan Bindernagel, City Manager, reported that:
• The City is developing a Safety Action Plan, and the community is invited to complete the survey.
• The Pleasant Hill Climate Action Plan (CAP) is on the City’s website, and the Planning Commission public hearing related to the CAP will be held on February 10, 2026. • The 4th of July Committee is looking for volunteers.
• City of Pleasant Hill events and activities may be found on social media, the website, the bi-weekly e-Newsletter, and the mailed Outlook Newsletter

7. COUNCIL ANNOUNCEMENTS AND REPORTS

7.1 Reports from Councilmembers on Meetings or Conferences Attended at City Expense
Councilmember Szakats, Vice Mayor Obolenskiy, and Councilmember La reported their attendance at the California League of Cities Councilmember Academy.

Councilmember Szakats also reported her attendance at the Environmental Policy Committee meeting.

7.2 Announcements from Councilmembers
All Councilmembers reported their attendance at the Lion’s Club Crab Feed.

Councilmember Szakats reported her attendance at the Martin Luther King Jr. Celebration hosted by the Diversity Coalition in San Ramon.

Councilmember Szakats also announced that she is hosting a Coffee Chat on January 30, 2026, with special guest BART Director Matt Rinn.

Councilmember Noack reported her attendance at Supervisor Diane Burgis’ reorganization luncheon. She also reported that she was a speaker at the San Ramon Valley Citizens Academy.

Councilmember La announced that she is hosting a Coffee Chat on January 30, 2026, with special guests Diversity Commission Chair Lloyd Schine and Diablo Valley College AANHPI Coordinator Dr. Andrea Medina.

Vice Mayor Obolenskiy reported his attendance at the Town Hall with Mayor Shess and Senator Tim Grayson. He also reported his attendance at the Visit Pleasant Hill Luncheon, the Ribbon Item 9.1
City Council Meeting Agenda - Page 6 of 118 - Monday, February 02, 2026 City Council Meeting Minutes Page 3 January 26, 2026
Cutting for the OCD and Anxiety Center, which he attended with Mayor Shess, and at the Slavic celebration of the Old New Year.

Vice Mayor Obolenskiy announced that the 4th of July Commission is seeking members.

Mayor Shess reported his attendance at the Town Hall with Senator Grayson, the Ribbon Cutting for the OCD & Anxiety Center, and at the Chamber of Commerce Government Affairs meeting.

8. PUBLIC COMMENT
The following members of the public provided a comment:
• Chris Stieger
• Jim Bonato
• Lindsay Dohlman
• Quy Tran

9. CONSENT CALENDAR
Motion (Noack/La) to Approve consent items 9.1 – 9.2, carried unanimously as follows:

AYES: La, Noack, Obolenskiy, Szakats, Shess

9.1 Approve Minutes for the Regular City Council Meeting of January 12, 2026

9.2 Approve Checks Dated: January 09, 2026; January 16, 2026

10. ACTION CALENDAR

10.1 Study Session for the Participation of the City of Pleasant Hill in the Contra Costa County Regional Alternative Compliance System Joint Powers Authority Ann James, Public Works Director, introduced Rinta Perkins, Manager of the Contra Costa Water, who provided a report on.

No members of the public provided comments.

As this item was a Study Session, no vote was required of the City Council.

ADJOURNMENT
Mayor Shess adjourned the meeting at 8:54 p.m. The next Regular City Council meeting will be held on Monday, February 2, 2026, beginning at 7:00 p.m. ______________________________
LYONE P. CONNER, CITY CLERK
Item 9.1
City Council Meeting Agenda - Page 7 of 118 - Monday, February 02, 2026 100 Gregory Lane, Pleasant Hill, CA 94523-3323 – (925) 671-5270 www.pleasanthillca.org

MEMORANDUM
TO: City Councilmembers
FROM: Interview and Nominating Committee:

Councilmember Amanda Szakats, Councilmember Belle La
DATE: February 2, 2026
SUBJECT: Approve Reappointment Recommendation to the Civic Action Commission The Interview and Nominating Committee recommends the City Council approve the appointments:

APPOINTMENTS TERMS/EXPIRATION DATES
Scott Roberts - Reappointment Through February 2030
Item 9.2
City Council Meeting Agenda - Page 8 of 118 - Monday, February 02, 2026

CITY COUNCIL STAFF REPORT
Meeting Date: February 2, 2026
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
TITLE: ADOPT RESOLUTION NO. ____-26 APPROVING A SIDE LETTER OF

AGREEMENT WITH THE PROFESSIONAL AND CONFIDENTIAL
EMPLOYEES’ ASSOCIATION (PACE) TO AMEND THE

MEMORANDUM OF UNDERSTANDING ARTICLE XIV

EVALUATIONS/ BONUS AWARDS

SYNOPSIS
Adoption of the proposed resolution would authorize the Mayor and City Manager to execute the side letter of agreement between the City of Pleasant Hill and the Professional and Confidential Employees’ Association (PACE).

DISCUSSION
Following the October 2024 employee survey, the City established a cross-departmental project team to review the results and address key feedback. In partnership with Holistic Consulting LLC, this team developed an updated performance evaluation process designed to clarify the process and definitions used. The updated system introduces standardized performance definitions, incorporates scheduled "touch points" to facilitate ongoing dialogue between supervisors and employees, and utilizes a streamlined form to improve administrative efficiency.

The City presented the new evaluation tool and procedures to all relevant bargaining groups for review and comment. The Professional and Confidential Employees’ (PACE) unit requested to "meet and confer" regarding the proposed changes. Throughout this collaborative process, PACE provided constructive input to align the existing MOU language with the new evaluation process.

The parties reached a tentative agreement on December 29, 2025, and the membership voted to ratify the necessary language updates to support the implementation of the new process on January 20, 2026.

ANALYSIS
The City has met and conferred in compliance with the Meyers-Milias-Brown Act (MMBA) and all other applicable requirements to reach agreement with the PACE unit on a side letter of Item 9.3
City Council Meeting Agenda - Page 9 of 118 - Monday, February 02, 2026 agreement that meets the interests of both parties in relation to a revised performance evaluation process.

FISCAL IMPACT
The adoption of the proposed resolution and the execution of the side letter of agreement will not have a fiscal impact.

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, which authorizes the Mayor and City Manager to execute the side letter of agreement.

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

ATTACHMENT(S)
Proposed Resolution
Exhibit 1 – Proposed Side Letter of Agreement
Prepared by: Ericka R. Mitchell, Chief Human Resources Officer Approved by: Ethan Bindernagel, City Manager
Item 9.3
City Council Meeting Agenda - Page 10 of 118 - Monday, February 02, 2026 RESOLUTION NO. -26

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

APPROVING A SIDE LETTER OF AGREEMENT WITH THE PROFESSIONAL AND CONFIDENTIAL EMPLOYEES’ ASSOCIATION (PACE) TO AMEND THE MEMORANDUM

OF UNDERSTANDING ARTICLE XIV EVALUATIONS/BONUS AWARDS
WHEREAS, representatives of the City and the Professional and Confidential Employees’ Association (“PACE”) met and conferred and tentatively agreed to amend Article XIV, Evaluations/Bonus Awards of the PACE Memorandum of Understanding (“MOU”) to align the language with the City’s new performance evaluation process.

WHEREAS, enactment of the proposed side letter would allow for language consistent with the City’s new streamlined performance evaluation process.

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, updating Section XIV of the MOU.

ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting held on the 2nd day of February 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
ZAC SHESS, Mayor
ATTEST:

LYONE P. CONNER, City Clerk
Item 9.3
City Council Meeting Agenda - Page 11 of 118 - Monday, February 02, 2026 2026 Side Letter of Agreement
City of Pleasant Hill and Professional and Confidential Employees Association Amending Article XIV of the MOU
Performance Evaluations/Bonus Awards
I. Parties
The Parties to this Side Letter of Agreement (herein after “Side Letter”) are City of Pleasant Hill (hereinafter referred to as the “City”) and Professional and Confidential Employees Association (hereinafter referred to as “PACE”).

II. Background
The Parties are the signatories to a 2023-2026 Memorandum of Understanding (hereinafter referred to as the “MOU”) setting forth terms and conditions of employment for certain City employees within PACE.

The parties hereby agree that Article XIV of the MOU is amended as follows:

III. MOU Amendments
A. For Purposes of the MOU amendments set forth below, language that is overstruck (e.g. overstruck) will be omitted from the MOU. Language that is italicized and boldfaced will be added to the MOU as indicated. The existing MOU will, in all other respects, remain in effect without change through the term specified.

B. Section XIV is amended as follows:

ARTICLE XIV

PERFORMANCE EVALUATIONS/BONUS AWARDS
A. Performance Evaluations. The City will continue to use an annual performance evaluation. Performance evaluations will be made once a year during the month of January of each calendar year.

All performance evaluations shall be signed by the employee indicating knowledge of the evaluation and that said evaluation is being placed in the employee’s personnel file.

If an employee receives an evaluation where five of the ten categories are rated at the lowest possible rating, If an employee receives an evaluation of “below standard” on six (6) of the twelve (12) categories, they may be reduced in pay up to 7% for a one-year period upon recommendation of the Department Head and approval of the City Manager.

B. Bonus Awards. Each year, employees who meet the following threshold eligibility requirements may be considered for a bonus:

1. The employee must be at the top of his/her salary range; and

2. The employee must receive a rating of either “exceptional” or “very good” in at least half of the rating categories in his/her performance evaluation.

2. The employee must receive the highest possible rating in at least of the rating categories in his/her performance evaluation.

Item 9.3
City Council Meeting Agenda - Page 12 of 118 - Monday, February 02, 2026 2026 Side Letter of Agreement
City of Pleasant Hill and Professional and Confidential Employees Association Amending Article XIV of the MOU
Performance Evaluations/Bonus Awards
Meeting these threshold eligibility requirements renders the employee eligible to be considered for a bonus. It does not guarantee that a bonus will be awarded.

Where an employee meets the threshold eligibility requirements, his/her immediate supervisor may recommend that the employee be awarded a bonus. The employee’s Department Head must approve the recommendation. If the Department Head approves the recommendation, he/she will forward it to the Personnel Officer, who will confirm that the employee is in fact eligible for consideration for a bonus. The Personnel Officer will then forward the recommendation to the City Manager. The City Manager shall have discretion to approve or disapprove the bonus recommendation. If the City Manager approves, he/she shall also determine the amount of the bonus, which shall not exceed a maximum of 7% (seven percent) of the employee’s base salary for that evaluation year.

If the employee receives a bonus award, he/she may elect to have the bonus paid either as a lump sum contribution to his/her 457 plan or as a lump sum cash award paid directly to him/her.

The bonus does not become a part of the employee’s salary. After payment (whether as a contribution to the employee’s 457 plan or as a cash payment directly to the employee), the employee receives no further payment under his/her bonus award for that evaluation year. Employees may receive bonus awards more than once during their employment with the City, provided all the requirements of this section are met.

IV. General Provisions
A. This Side Letter of Agreement will take effect February 3, 2026, upon approval and adoption by the City Council.

B. The written terms herein embody the entire Side Letter of Agreement between the Parties.

In witness hereof, this Side Letter of Agreement was approved and adopted by a vote of the Pleasant Hill City Council on this ______ day of _____________, 2026.

FOR CITY OF PLEASANT HILL: FOR PROFESSIONAL AND CONFIDENTIAL EMPLOYEES’ ASSOCIATION:
__________________________ ____________________________________ Zac Shess Jeffrey Finn
Mayor PACE President
__________________________ ____________________________________ Ethan Bindernagel Shannon DeFroscia
City Manager PACE Vice-President
Item 9.3
City Council Meeting Agenda - Page 13 of 118 - Monday, February 02, 2026 2026 Side Letter of Agreement
City of Pleasant Hill and Professional and Confidential Employees Association Amending Article XIV of the MOU
Performance Evaluations/Bonus Awards
____________________________ ______________________________ Ericka R. Mitchell Ross Yangwas
Chief Human Resources Officer Treasurer
APPROVED AS TO FORM:
____________________________
Janet Coleson, City Attorney
Item 9.3
City Council Meeting Agenda - Page 14 of 118 - Monday, February 02, 2026

CITY COUNCIL STAFF REPORT
Meeting Date: February 2, 2026
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
TITLE: ADOPT RESOLUTION NO. __-26 AUTHORIZING THE CITY

MANAGER TO ENTER INTO A CONSENT TO COLLATERAL

ASSIGNMENT OF AN EXISTING GRANT AGREEMENT FOR THE
GRAYSON CREEK APARTMENTS AT 100 CHILPANCINGO

PARKWAY

SYNOPSIS
Bridge Housing has requested the City of Pleasant Hill enter into a collateral assignment of an existing grant agreement for the Affordable Housing project - Grayson Creek Apartments at 100 Chilpancingo Parkway. The collateral assignment would provide that current annual grant payments, that the City has already committed to paying, would continue to the subsequent owner that would continue to provide affordable housing should the current owner default on the loan and the lender is forced to foreclose. The assignment would not result in any additional funding from the City; thus, Staff recommends that the City Council adopt the proposed resolution authorizing the City Manager to execute the collateral assignment.

DISCUSSION
Background
The Grayson Creek Apartments was completed in 2002. Prior to development of the project, the former Pleasant Hill Redevelopment Agency agreed to provide a loan to help facilitate the project. The original loan from 1998 was $4,500,000 with a maturity date of 55 years. At that time, the City was also subordinate to the primary loan for the project.

The agreement was amended in 2001 when it was split into a grant and loan. The loan was in the amount of $1,005,000, and is repayable out of residual receipts (i.e., net proceeds) from the affordable housing project, with a maturity date of 55 years after recordation of the Certificate of Completion for the project (2057). The Grant was in the amount of $6,815,000, and the Developer executed a note stating that the Grant would only have to be repaid in the event of a default under the Grant and Loan Agreement. As part of this agreement, the City continued to agree to subordinate its loan and regulatory agreement to a permanent loan from CalHFA in Item 9.4
City Council Meeting Agenda - Page 15 of 118 - Monday, February 02, 2026 the original principal amount of $5.7 million, and a second loan from HCD in the original principal amount of $4,074,510. The Developer has been paying down the CalHFA loan consistently for several years, and it currently has a remaining balance of approximately $2,570,463. The HCD loan is paid out of residual receipts, and as a result very little principal has been paid down, and the loan has been accruing interest. The current outstanding principal and interest on the HCD loan is $5,774,215.40.

At the November 17, 2025, City Council meeting, the Council authorized the City Manager to enter into a new subordination agreement due to the property owner’s desire to refinance the existing loans to make funds available for capital improvements at the property.

As part of the refinancing process, the new lender, Berkadia/Freddie Mac, is requiring that the Grant Agreement, which provides an operating subsidy to the project, between the borrower and the City be collaterally assigned to the lender; this is a common lending requirement for affordable housing operating subsidies, such as HUD Section 8/project-based vouchers.

Analysis
As part of the refinancing, Bridge Housing is now requesting the City enter into a Consent to Collateral Assignment of an existing Grant Agreement for the Grayson Creek Apartments.

Under the current agreement with Grayson Creek Apartments, the City is providing a grant of $235,000 on an annual basis (until 2031) to the project that helped to subsidize 70 affordable units onsite. Approval of the request would ensure that these payments would be made to the subsequent owner of the project in the event that the current owner defaults on the loan and the lender is forced to foreclose. Staff notes that the lender must continue to provide affordable units to be eligible to receive the $235,000 annual payment.

The refinancing will also update the previously approved subordination agreements; however, the only changes to that document would be a change of dates and updated interest amounts.

The City Attorney has reviewed the request and determined that, due to the minor nature of the amendments to the previously approved subordination agreement, the City Council review and approval is not necessary, as it is substantially the same document, except for new dates and updated interest amounts.

Staff has reviewed the requests, with assistance from legal counsel, and believes that the request is necessary to allow the refinancing process to continue that would allow capital improvements to the site. As noted in November 2025, the City has not had any prior issues with Bridge Housing and its loan standing; accordingly, given Bridge Housing's extensive portfolio of affordable housing projects, Staff believes there is minimal risk of entering into the Consent to Collateral Assignment of the Grant Agreement.

Item 9.4
City Council Meeting Agenda - Page 16 of 118 - Monday, February 02, 2026

FISCAL IMPACT
None, no additional funds are requested as part of this request.

RECOMMENDED CITY COUNCIL ACTION
Adopt the attached resolution authorizing the City Manager to execute a collateral assignment to a subsequent lender in the event of a loan default of the current primary lenders for the Grayson Creek Affordable Housing Apartments at 100 Chilpancingo Parkway.

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

ATTACHMENT(S)
Attachment A: Proposed Resolution
Attachment B: Proposed Consent to Collateral Assignment of Grant Agreement Attachment C: November 17, 2025, City Council Staff Report (subordination agreement attachment included)
Attachment D: Resolution No. 51-25
Prepared by: Troy Fujimoto, City Planner
Approved by: Ethan Bindernagel, City Manager
Item 9.4
City Council Meeting Agenda - Page 17 of 118 - Monday, February 02, 2026 RESOLUTION NO. __-26

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

AUTHORIZING THE CITY MANAGER TO ENTER INTO A CONSENT TO COLLATERAL

ASSIGNMENT OF GRANT AGREEMENT WITH BERKADIA COMMERCIAL
MORTGAGE LLCFOR THE GRAYSON CREEK APARTMENTS AT 100 CHILPANCINGO

PARKWAY
WHEREAS, the former City of Pleasant Hill Redevelopment Agency provided a $4,500,000 dollar loan to assist the affordable housing project, Grayson Creek Apartments at 100 Chilpancingo Parkway and agreed to subordinate to the primary project loan; and WHEREAS, in 2001, the former City of Pleasant Hill Redevelopment Agency agreed to an amendment that split the original loan into a $1,005,000 loan and a $6,815,000 grant and continue to subordinate to project loans from the California Housing Finance Agency (“CalHFA”) and California Department of Housing and Community Development (“HCD”); and WHEREAS, in 2025, the City authorized the City Manager to enter into a subordination agreement with Berkadia Commercial Mortgage LLC due to a refinance for the CalHFA loan, such that the City’s original subordinate financial position does not change; and WHEREAS, based on provisions required by Freddie Mac, Bridge Housing has requested the City enter into a new Consent to Collateral Assignment of Grant Agreement with Berkadia Commercial Mortgage LLC and Freddie Mac to ensure that, in the event of a loan default, the City’s grant will continue to Freddie Mac, thus ensuring that the affordability of the project remains in place; and WHEREAS, the purpose of the Consent to Collateral Assignment of Grant Agreement is to ensure that, in the event of a loan default, the City’s grant will continue to the current lender in the event of foreclosure, thereby ensuring that the affordability of the project remains in place.

NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Pleasant Hill that the City Manager is authorized to execute a Consent to Collateral Assignment of the Grant Agreement between the City, Berkadia Commercial Mortgage LLC, in substantially the form attached hereto as Exhibit A, for the Grayson Creek Apartments at 100 Chilpancingo Parkway. [Signatures on the Following Page]
Item 9.4
City Council Meeting Agenda - Page 18 of 118 - Monday, February 02, 2026 ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting held on this 2nd day of February 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
________________________________
ZAC SHESS, Mayor
ATTEST:
_________________________________
LYONE P. CONNER, City Clerk
Item 9.4
City Council Meeting Agenda - Page 19 of 118 - Monday, February 02, 2026 Freddie Mac Loan Number: 510842429
Property Name: Grayson Creek Apartments

CONSENT TO COLLATERAL ASSIGNMENT OF GRANT AGREEMENT

THIS CONSENT TO COLLATERAL ASSIGNMENT OF GRANT AGREEMENT (“Assignment”) is made effective as of the February ___, 2026, by CITY OF PLEASANT HILL, as housing successor to the Pleasant Hill Redevelopment Agency (“City”) for the benefit of BERKADIA COMMERCIAL MORTGAGE LLC, a Delaware limited liability company (“Lender”), and acknowledged BRIDGE GRAYSON CREEK ASSOCIATES, A CALIFORNIA LIMITED PARTNERSHIP, a California limited partnership (“Borrower”).

RECITALS:

A. Pursuant to an Amended and Restated Loan and Grant Agreement dated as of September 14, 2001 (“Loan and Grant Agreement”), by and between the City and Borrower, the City, among other things, made a grant to Borrower in the amount of $6,815,000 (“Grant Award”).

B. Pursuant to Section 3.2 of the Loan and Grant Agreement, the City is obligated to disburse annual installments of the Grant Award in the amount of $235,000 (each an “Annual Grant Payment”) through 2031.

C. Borrower has requested that Lender make a loan to Borrower (“Loan”). The Loan will be evidenced by a Multifamily Note from Borrower to Lender effective as of the date of this Assignment (“Note”). The Note is secured by, among other things, a Multifamily Loan and Security Agreement (“Loan Agreement”) and a Multifamily Mortgage, Deed of Trust, or Deed to Secure Debt (“Security Instrument”), dated as of the date of this Assignment, which grants Lender a lien on the property encumbered by the Security Instrument (“Mortgaged Property”). The Note, the Loan Agreement, the Security Instrument, this Assignment and any of the other documents evidencing the Loan are collectively referred to as the “Loan Documents”. Other capitalized terms used but not defined in this Assignment will have the meanings given to those terms in the Loan Agreement.

D. Lender requires as a condition to the making of the Loan that Borrower assign all of Borrower’s right, title, and interest in and to the grant provisions of the Loan and Grant Agreement (“Grant Assignment”) to Lender as collateral security for the Loan.

NOW, THEREFORE, for and in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

Docusign Envelope ID: 02FFB812-7BEB-4074-9347-43ECD2D2D3EB Item 9.4
City Council Meeting Agenda - Page 20 of 118 - Monday, February 02, 2026

1. Assignment. Pursuant to Section 9.1 of the Loan and Grant Agreement, the Loan and Grant Agreement may not be assigned without the prior written consent of the City.

Borrower has advised the City that Borrower wants to make the Grant Assignment to Lender, as security for the Loan by Lender to Borrower, and that Lender will assign the Loan to Freddie Mac. The City consents to the Grant Assignment by Borrower to Lender as security for the Loan and consents that Lender may assign its security interest in the Grant Assignment to Freddie Mac.

2. Effect of Consent to Assignment. The City is not a party to the Loan, nor the Grant Assignment by the Borrower to the Lender, nor to any assignment of the Grant Assignment or the Loan to Freddie Mac. The consent to the Grant Assignment does not change the terms of the Loan and Grant Agreement in any way and does not change the rights or obligations of the City or the Borrower under the Loan and Grant Agreement.

The creation or transfer of any security interest in the Grant Assignment is limited to an Annual Grant Payment payable under the Loan and Grant Agreement in accordance with the terms of the Loan and Grant Agreement. The grant of consent by the City to the Grant Assignment by Borrower to Lender, and the grant of consent by the City of the Grant Assignment by Lender to Freddie Mac, does not constitute consent to any further assignment or other transfer of the Grant Assignment.

3. Payment to Assignee (Lender or Freddie Mac. When the assignee (Lender or Freddie Mac) notifies the City, in writing, that an Annual Grant Payment payable pursuant to the Loan and Grant Agreement should be directed to the assignee, the City may make such Annual Grant Payment to the assignee instead of the Borrower. In making such payments, the City is not required to consider or make any inquiry as to the existence of a default under the Loan Documents but may rely on notice by the assignee; and any payments by the City to the assignee shall be credited against amounts payable by the City to the Borrower pursuant to the Loan and Grant Agreement.

4. Counterpart. This Assignment shall be deemed to be effective on and as of the date written above and may be executed by the parties in as many counterparts as may be deemed necessary and convenient, but all such counterparts shall constitute but one and the same instrument.
[SIGNATURE AND ACKNOWLEDGMENT PAGES FOLLOW]
Docusign Envelope ID: 02FFB812-7BEB-4074-9347-43ECD2D2D3EB Item 9.4
City Council Meeting Agenda - Page 21 of 118 - Monday, February 02, 2026 IN WITNESS WHEREOF, the parties have duly executed this Assignment as of the day and year first above written.

CITY:

CITY OF PLEASANT HILL
By: ____________________________________
Name: ___________________________________
Title: ___________________________________
Approved as to form:

By: ____________________________________
Name: ___________________________________
Its: ___________________________________
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City Council Meeting Agenda - Page 22 of 118 - Monday, February 02, 2026 The Borrower has read the terms of the City’s consent to the Grant Assignment by the Borrower to the Lender, and by the Lender to Freddie Mac. In consideration for the City’s grant of such consent to the Grant Assignment, the Borrower agrees to all the terms of the consent to assignment, and agrees that any assignment by the Borrower is subject to all such terms.

BORROWER:

BRIDGE GRAYSON CREEK ASSOCIATES, A CALIFORNIA LIMITED
PARTNERSHIP, a California limited partnership
By: CHURCH STREET HOUSING, INC.,
a California nonprofit public benefit corporation,
its General Partner
By: __________________
Name: Sierra Atilano
Title: Vice President
Docusign Envelope ID: 02FFB812-7BEB-4074-9347-43ECD2D2D3EB Item 9.4
City Council Meeting Agenda - Page 23 of 118 - Monday, February 02, 2026

CITY COUNCIL STAFF REPORT
Meeting Date: November 17, 2025
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
TITLE: Adopt a Resolution Authorizing the City Manager to Enter into Subordination Agreements with Bridge Housing and Two Senior Lenders for the Grayson Creek Apartments at 100 Chilpancingo Parkway

SYNOPSIS
Bridge Housing has requested the City of Pleasant Hill enter into two separate replacement subordination agreements for existing loans for the Affordable Housing project - Grayson Creek Apartments at 100 Chilpancingo Parkway. The subordination agreements would restate the City’s subordinate loan position for the Grayson Creek Apartments. Bridge Housing is refinancing the project to complete various on-site improvements and upgrades including repairs for building balconies, outdoor courtyard, and other interior modifications, including new appliances. The project is not requesting any additional funds from the City, thus, Staff recommends that the City Council adopt the proposed resolution authorizing the City Manager to execute the replacement agreement.

The agreement was amended in 2001 when it was split into a grant and loan. The loan was in the amount of $1,005,000, and is repayable out of residual receipts (i.e., net proceeds) from the affordable housing project, with a maturity date of 55 years after recordation of the Certificate of Completion for the project (2057). The Grant was in the amount of $6,815,000, and the Developer executed a note stating that the Grant would only have to be repaid in the event of a default under the Grant and Loan Agreement. As part of this agreement, the City continued to agree to subordinate its loan and regulatory agreement to a permanent loan from CalHFA in the original principal amount of $5.7 million, and a second loan from HCD in the original Item 9.4
City Council Meeting Agenda - Page 24 of 118 - Monday, February 02, 2026 principal amount of $4,074,510. The Developer has been paying down the CalHFA loan consistently for several years, and it currently has a remaining balance of approximately $2,570,463. The HCD loan is paid out of residual receipts, and as a result very little principal has been paid down, and the loan has been accruing interest. The current outstanding principal and interest on the HCD loan is $5,774,215.40.

Analysis
Bridge Housing is now seeking to refinance the CalHFA loan, mainly so they can take out additional loan funds to make repairs to the project and fund a reserve fund for future repairs.

The estimated cost of repairs is $747,609; the reserve is $600,000 and there are $365,010.80 in additional costs built into the loan. The new loan amount (with the outstanding balance combined with the money being taken out) is $4,500,000. As part of the newly refinanced loan, they are asking that the City agree to subordinate its loan to the new loan made by Berkadia Commercial Mortgage LLC.

The City’s $1,005,000 loan (and the grant) are subordinate to the existing CalHFA loan, and the original loan document specifically authorized the City to subordinate to the CalHFA loan.

Because Bridge Housing is taking out additional money to fund improvements, they are asking the City to subordinate to a loan amount that is higher than the current outstanding principal (though it is still lower than the original loan amount).

As part of this transaction, HCD is preparing new loan documents to commemorate its existing loan. HCD is also requesting that the City subordinate to these new loan documents; however, this simply preserves the status quo, in that the City is currently subordinate to HCD’s loan, and the outstanding loan amount is not changing.

Staff has reviewed the requests, with assistance from legal counsel, and believes that the improvements proposed are appropriate to continue to provide necessary accommodations for the affordable housing project. These types of projects do not generate a lot of cash flow, so it can be difficult to make needed repairs without refinancing. By refinancing, Bridge Housing is actually reducing its annual debt service and will have money to maintain the condition of the project.

The new primary loan has a 15-year term, with a balloon payment at the end of the period. At some point over the next 15 years, it is expected that Bridge Housing will need to refinance again, or re-syndicate its tax credits to bring more equity into the project. These types of projects generally refinance or re-syndicate regularly to bring more money into the project and keep the units in good condition. The City has not had any prior issues with Bridge Housing and its loan Item 9.4
City Council Meeting Agenda - Page 25 of 118 - Monday, February 02, 2026 standing; accordingly, given Bridge Housing's extensive portfolio of affordable housing projects, Staff believes there is minimal risk of entering into the subordination agreement for the new primary loan. Similarly, Staff recommends that the City agree to subordinate to the new HCD loan documents, since this simply preserves the priority order between the City and HCD and does not change any of the current loan terms.

FISCAL IMPACT
None, no additional funds are required as part of this request.

RECOMMENDED CITY COUNCIL ACTION
Adopt the attached resolution authorizing the City Manager to execute subordination agreements with Bridge Housing and two Senior Lenders for the Grayson Creek Affordable Housing Apartments at 100 Chilpancingo Parkway.

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

ATTACHMENT(S)
Attachment A: Proposed Resolution
Attachment B: Proposed Berkadia Subordination Agreement Attachment C: Proposed HCD Subordination Agreement
Attachment D: Grayson Creek Apartments List of Improvements Attachment E: Amended and Restated Loan and Grant Agreement Grayson Creek Apartments (2001)
Prepared by: Troy Fujimoto, City Planner
Approved by: Ethan Bindernagel, City Manager
Item 9.4
City Council Meeting Agenda - Page 26 of 118 - Monday, February 02, 2026 Prepared by, and after recording
return to:

Lanre A. Popoola, Esquire
Troutman Pepper Locke LLP
P.O. Box 1122
Richmond, VA 23218

SUBORDINATION AGREEMENT

GOVERNMENTAL ENTITY
(Revised 2-25-2025)
Item 9.4
City Council Meeting Agenda - Page 27 of 118 - Monday, February 02, 2026 Subordination Agreement – Governmental Entity Page 1
Freddie Mac Loan Number: 510842429
Property Name: Grayson Creek Apartments _

SUBORDINATION AGREEMENT

GOVERNMENTAL ENTITY
(Revised 2-25-2025)
THIS SUBORDINATION AGREEMENT (“Agreement”) is entered into this ___ day of ____________________, 2025, by and between (i) BERKADIA COMMERCIAL MORTGAGE LLC, a limited liability company organized and existing under the laws of the State of Delaware (“Senior Lender”) and (ii) CITY OF PLEASANT HILL, as housing successor to the Pleasant Hill Redevelopment Agency (“Subordinate Lender”).

RECITALS
A. BRIDGE GRAYSON CREEK ASSOCIATES, a limited partnership organized under the laws of the State of California (“Borrower”) is the owner of certain land located in Contra Costa County, California, described in Exhibit A (“Land”). The Land is improved with a multifamily rental housing project (“Improvements”).

B. Senior Lender has made or is making a loan to Borrower in the original principal amount of $[4,500,000].00 (“Senior Loan”) upon the terms and conditions of a Multifamily Loan and Security Agreement dated as of __________, 2025 between Senior Lender and Borrower (“Senior Loan Agreement”) in connection with the Mortgaged Property. The Senior Loan is secured by a Multifamily Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing dated as of the date of the Senior Loan Agreement (“Senior Mortgage”) encumbering the Land, the Improvements and related personal and other property described and defined in the Senior Mortgage as the “Mortgaged Property.”
C. Pursuant to an Amended and Restated Loan and Grant Agreement dated as of September 14, 2001 between Subordinate Lender and Borrower (“Subordinate Loan Agreement”), Subordinate Lender has made or is making (i) a loan to Borrower in the original principal amount of $1,005,000 (“Subordinate Loan”) and a grant to the Borrower in the original principal amount of $6,815,000 (“Subordinate Grant”). Each of the Subordinate Loan and the Subordinate Grant is or will be secured by an Amended and Restated Construction ad Permanent Deed of Trust, Assignment of Rents, andSecurity Agreement dated as of September 14, 2001 (“Subordinate Mortgage”) encumbering all or a portion of the Mortgaged Property.

Item 9.4
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D. The Senior Mortgage will be]recorded in the land records of Contra Costa County, California (“Recording Office”). The Subordinate Mortgage is recorded in the Recording Office at Document No. 2001-0315912-00.

E. The execution and delivery of this Agreement is a condition of Senior Lender’s making of the Senior Loan.

AGREEMENT
NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are acknowledged, the parties agree as follows:

1. Definitions. The following terms, when used in this Agreement (including, as appropriate, when used in the above recitals), will have the following meanings:

The terms “Condemnation,” “Imposition Reserve Deposits,” “Impositions,” “Leases,” “Rents” and “Restoration,” as well as any term used in this Agreement and not otherwise defined in this Agreement, will have the meanings given to those terms in the Senior Loan Agreement.
“Bankruptcy Proceeding” means any bankruptcy, reorganization, insolvency, composition, restructuring, dissolution, liquidation, receivership, assignment for the benefit of creditors, or custodianship action or proceeding under any federal or state law with respect to Borrower, any guarantor of any of the Senior Indebtedness, any of their respective properties, or any of their respective partners, members, officers, directors, or shareholders.
“Borrower” means all persons or entities identified as “Borrower” in the first Recital of this Agreement, together with their successors and assigns, and any other person or entity who acquires title to the Mortgaged Property after the date of this Agreement; provided that the term “Borrower” will not include Senior Lender if Senior Lender acquires title to the Mortgaged Property.
“Casualty” means the occurrence of damage to or loss of all or any portion of the Mortgaged Property by fire or other casualty.
“Enforcement Action” means any of the following actions taken by or at the direction of Subordinate Lender: the acceleration of all or any part of the Subordinate Indebtedness, the advertising of or commencement of any foreclosure or trustee’s sale proceedings, the exercise of any power of sale, the acceptance of a deed or assignment in lieu of foreclosure or sale, the collecting of Rents, the obtaining of or seeking of the appointment of a receiver, the seeking of default interest, the taking of possession or control of any of the Mortgaged Property, the commencement of any suit or other legal, administrative, or arbitration proceeding based upon the Subordinate Note or any other of the Subordinate Loan Documents, the exercising of any banker’s lien or rights of set-off or recoupment, or the exercise of any other remedial action against Borrower, any other party liable for Item 9.4
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any of the Subordinate Indebtedness or obligated under any of the Subordinate Loan Documents, or the Mortgaged Property.
“Enforcement Action Notice” means a Notice given from Subordinate Lender to Senior Lender following one or more Subordinate Mortgage Default(s) and the expiration of any applicable notice or cure periods, setting forth in reasonable detail the Subordinate Mortgage Default(s) and the Enforcement Actions proposed to be taken by Subordinate Lender.
“Grant Note” means the promissory note or other evidence of the Subordinate Indebtedness, except for the Subordinate Loan and any replacement of the Grant Note. “Lien” means any lien, encumbrance, estate or other interest, recorded against or secured by the Mortgaged Property.
“Loss Proceeds” means all monies received or to be received under any insurance policy, from any condemning authority, or from any other source, as a result of any Condemnation or Casualty.
“Notice” means all notices, requests, demands, consents, approvals or other communication pursuant to this Agreement provided in accordance with the provisions of Section 10.
“Regulatory Agreement” means, collectively, (i) the Regulatory Agreement between Borrower and Subordinate Lender dated as of July 29, 1998 and recorded in the Recording Office as Document No. 98-0181887-00 and (ii) First Amendment to Regulatory Agreement dated as of September 14, 2001 and recorded in the Recording Office as Document No. 2001-0315913-00.
“Senior Indebtedness” means the “Indebtedness” as defined in the Senior Loan Agreement.
“Senior Lender” means the “Lender” as defined in the Senior Mortgage. When any other person or entity becomes the legal holder of the Senior Note, such other person or entity will automatically become Senior Lender.
“Senior Loan Documents” means the “Loan Documents” as defined in the Senior Loan Agreement, as such documents may be amended.
“Senior Mortgage Default” means any act, failure to act, event, condition, or occurrence which constitutes, or which with the giving of Notice or the passage of time, or both, would constitute, an “Event of Default” as defined in the Senior Loan Agreement. “Senior Note” means the promissory note or other evidence of the Senior Indebtedness and any replacement of the Senior Note.

Item 9.4
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“Subordinate Indebtedness” means all sums evidenced or secured or guaranteed by, or otherwise due and payable to Subordinate Lender pursuant to, the Subordinate Loan Documents.
“Subordinate Lender” means the person or entity named as such in the first paragraph of this Agreement and any other person or entity who becomes the legal holder of the Subordinate Note after the date of this Agreement.
“Subordinate Loan Documents” means the Subordinate Mortgage, the Subordinate Note, the Grant Note, the Subordinate Loan Agreement, the Regulatory Agreement and all other documents at any time evidencing, securing, guaranteeing, or otherwise delivered in connection with the Subordinate Indebtedness, as such documents may be amended.
“Subordinate Mortgage Default” means any act, failure to act, event, condition, or occurrence which allows (but for any contrary provision of this Agreement), Subordinate Lender to take an Enforcement Action.
“Subordinate Note” means the promissory note or other evidence of the Subordinate Indebtedness, except for the Subordinate Grant and any replacement of the Subordinate Note.
“Surplus Cash” means, with respect to any period, any revenues of Borrower remaining after paying, or setting aside funds for paying, all the following:
(a) All sums due or currently required to be paid under the Senior Loan Documents, including any reserves and Imposition Reserve Deposits. (b) All reasonable operating expenses of the Mortgaged Property, including real estate taxes, insurance premiums, utilities, building maintenance, painting and repairs, management fees, payroll, administrative expenses, legal expenses and audit expenses (excluding any developer fees payable with respect to the Mortgaged Property).

2. Subordinate Lender’s Representations and Warranties. (a) Subordinate Lender represents and warrants that each of the following is true as of the date of this Agreement:
(i) Subordinate Lender is now the owner and holder of the Subordinate Loan Documents.
(ii) No Subordinate Mortgage Default has occurred and is continuing. (iii) The current unpaid principal balance of the Subordinate Indebtedness is $________.

Item 9.4
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(iv) No scheduled payments under the Subordinate Note have been prepaid. (b) Without the prior written consent of Senior Lender, Subordinate Lender will not do any of the following:
(i) Pledge, assign, transfer, convey, or sell any interest in the Subordinate Indebtedness or any of the Subordinate Loan Documents.
(ii) Take any action which has the effect of increasing the Subordinate Indebtedness, except to cure a Senior Mortgage Default as contemplated under Section 5(a) of this Agreement.
(iii) Accept any prepayment of the Subordinate Indebtedness.

3. Terms of Subordination.
(a) Agreement to Subordinate. The Subordinate Indebtedness is and will at all times continue to be subject and subordinate in right of payment to the prior payment in full of the Senior Indebtedness. Each of the Subordinate Loan Documents is, and will at all times remain, subject and subordinate in all respects to the liens, terms, covenants, conditions, operations, and effects of each of the Senior Loan Documents.
(b) Subordination of Subrogation Rights. If Subordinate Lender, by indemnification, subrogation or otherwise, acquires any Lien on any of the Mortgaged Property, then that Lien will be fully subject and subordinate to the receipt by Senior Lender of payment in full of the Senior Indebtedness, and to the Senior Loan Documents, to the same extent as the Subordinate Indebtedness and the Subordinate Loan Documents are subordinate pursuant to this Agreement. (c) Payments Before Senior Mortgage Default; Soft Subordinate Debt. Until the occurrence of a Senior Mortgage Default, Subordinate Lender will be entitled to retain for its own account all payments of the principal of and interest on the Subordinate Indebtedness pursuant to the Subordinate Loan Documents; provided that Subordinate Lender expressly agrees that it will not accept any such payment that is made more than 10 days in advance of its due date and provided further that Subordinate Lender will not accept any payment in an amount that exceeds 75% of then available Surplus Cash.
(d) Payments After Senior Mortgage Default or Bankruptcy. (i) Immediately upon Subordinate Lender’s receipt of Notice or actual knowledge of a Senior Mortgage Default, Subordinate Lender will not accept any payments of the Subordinate Indebtedness, and the provisions of this Section 3(d) will apply.

Item 9.4
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(ii) If Subordinate Lender receives any of the following, whether voluntarily or by action of law, after a Senior Mortgage Default of which Subordinate Lender has actual knowledge (or is deemed to have actual knowledge as provided in Section 4(c)) or has been given Notice, such will be received and held in trust for Senior Lender:
(A) Any payment, property, or asset of any kind or in any form in connection with the Subordinate Indebtedness.
(B) Any proceeds from any Enforcement Action.
(C) Any payment, property, or asset in or in connection with any Bankruptcy Proceeding.
(iii) Subordinate Lender will promptly remit, in kind and properly endorsed as necessary, all such payments, properties, and assets described in Section 3(d)(ii) to Senior Lender. Senior Lender will apply any payment, asset, or property so received from Subordinate Lender to the Senior Indebtedness in such order, amount (with respect to any asset or property other than immediately available funds), and manner as Senior Lender determines in its sole and absolute discretion.
(e) Bankruptcy. Without the prior written consent of Senior Lender, Subordinate Lender will not commence, or join with any other creditor in commencing, any Bankruptcy Proceeding. In the event of a Bankruptcy Proceeding, Subordinate Lender will not vote affirmatively in favor of any plan of reorganization or liquidation unless Senior Lender has also voted affirmatively in favor of such plan.

4. Default Under Subordinate Loan Documents.
(a) Notice of Subordinate Mortgage Default and Cure Rights. (i) Subordinate Lender will deliver to Senior Lender a copy of each Notice delivered by Subordinate Lender pursuant to the Subordinate Loan Documents within 5 Business Days of sending such Notice to Borrower.

Neither giving nor failing to give a Notice to Senior Lender pursuant to this Section 4(a) will affect the validity of any Notice given by Subordinate Lender to Borrower.
(ii) For a period of 90 days following delivery to Senior Lender of an Enforcement Action Notice, Senior Lender will have the right, but not the obligation, to cure any Subordinate Mortgage Default. However, if such Subordinate Mortgage Default is a non-monetary default and is not capable of being cured within such 90-day period and Senior Lender has Item 9.4
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commenced and is diligently pursuing such cure to completion, Senior Lender will have such additional period of time as may be required to cure such Subordinate Mortgage Default or until such time, if ever, as Senior Lender takes either of the following actions:
(A) Discontinues its pursuit of any cure.
(B) Delivers to Subordinate Lender Senior Lender’s written consent to the Enforcement Action described in the Enforcement Action Notice.
(iii) Senior Lender will not be subrogated to the rights of Subordinate Lender under the Subordinate Loan Documents as a result of Senior Lender having cured any Subordinate Mortgage Default.
(iv) Subordinate Lender acknowledges that all amounts advanced or expended by Senior Lender in accordance with the Senior Loan Documents or to cure a Subordinate Mortgage Default will be added to and become a part of the Senior Indebtedness and will be secured by the lien of the Senior Mortgage. (b) Subordinate Lender’s Exercise of Remedies After Notice to Senior Lender. (i) In the event of a Subordinate Mortgage Default, Subordinate Lender will not commence any Enforcement Action until 90 days after Subordinate Lender has delivered to Senior Lender an Enforcement Action Notice.

During such 90-day period or such longer period as provided in Section 4(a), Subordinate Lender will be entitled to seek specific performance to enforce covenants and agreements of Borrower relating to income, rent, or affordability restrictions contained in the Regulatory Agreement, subject to Senior Lender’s right to cure a Subordinate Mortgage Default set forth in Section 4(a).
(ii) Subordinate Lender may not commence any other Enforcement Action, including any foreclosure action under the Subordinate Loan Documents, until the earlier of:
(A) The expiration of such 90-day period or such longer period as provided in Section 4(a).
(B) The delivery by Senior Lender to Subordinate Lender of Senior Lender’s written consent to such Enforcement Action by
Subordinate Lender.
(iii) Subordinate Lender acknowledges that Senior Lender may grant or refuse consent to Subordinate Lender’s Enforcement Action prior to the expiration of such 90-day period in Senior Lender’s sole and absolute Item 9.4
City Council Meeting Agenda - Page 34 of 118 - Monday, February 02, 2026 Subordination Agreement – Governmental Entity Page 8
discretion. At the expiration of such 90-day period or such longer period as provided in Section 4(a) and, subject to Senior Lender’s right to cure set forth in Section 4(a), Subordinate Lender may commence any Enforcement Action.
(iv) Senior Lender may pursue all rights and remedies available to it under the Senior Loan Documents, at law, or in equity, regardless of any Enforcement Action Notice or Enforcement Action by Subordinate Lender. No action or failure to act on the part of Senior Lender in the event of a Subordinate Mortgage Default or commencement of an Enforcement Action will constitute a waiver on the part of Senior Lender of any provision of the Senior Loan Documents or this Agreement. (c) Cross Default. Subordinate Lender acknowledges that a Subordinate Mortgage Default constitutes a Senior Mortgage Default. Accordingly, upon the occurrence of a Subordinate Mortgage Default, Subordinate Lender will be deemed to have actual knowledge of a Senior Mortgage Default. If Subordinate Lender notifies Senior Lender in writing that any Subordinate Mortgage Default of which Senior Lender has received Notice has been cured or waived, as determined by Subordinate Lender in its sole discretion, then provided that Senior Lender has not conducted a sale of the Mortgaged Property pursuant to its rights under the Senior Loan Documents, any Senior Mortgage Default under the Senior Loan Documents arising solely from such Subordinate Mortgage Default will be deemed cured, and the Senior Loan will be reinstated.

5. Default Under Senior Loan Documents.
(a) Notice of Senior Mortgage Default and Cure Rights.
(i) Senior Lender will deliver to Subordinate Lender a copy of any Notice sent by Senior Lender to Borrower of a Senior Mortgage Default within 5 Business Days of sending such Notice to Borrower. Failure of Senior Lender to send Notice to Subordinate Lender will not prevent the exercise of Senior Lender’s rights and remedies under the Senior Loan Documents. (ii) Subordinate Lender will have the right, but not the obligation, to cure any monetary Senior Mortgage Default within 30 days following the date of such Notice. During such 30-day period Senior Lender will be entitled to continue to pursue its remedies under the Senior Loan Documents. (iii) Subordinate Lender may, within 90 days after the date of the Notice, cure a non-monetary Senior Mortgage Default if during such 90-day period, Subordinate Lender keeps current all payments required under the Senior Loan Documents. If such a non-monetary Senior Mortgage Default creates an unacceptable level of risk relative to the Mortgaged Property, or Senior Lender’s secured position relative to the Mortgaged Property, as determined Item 9.4
City Council Meeting Agenda - Page 35 of 118 - Monday, February 02, 2026 Subordination Agreement – Governmental Entity Page 9
by Senior Lender in its sole discretion, then during such 90-day period Senior Lender may exercise all available rights and remedies to protect and preserve the Mortgaged Property and the Rents, revenues and other proceeds from the Mortgaged Property.
(iv) All amounts paid by Subordinate Lender to Senior Lender to cure a Senior Mortgage Default will be deemed to have been advanced by Subordinate Lender pursuant to, and will be secured by the lien of, the Subordinate Mortgage. Notwithstanding anything in this Section 5(a) to the contrary, Subordinate Lender’s right to cure any Senior Mortgage Default will terminate immediately upon the occurrence of any Bankruptcy Proceeding. (b) Release of Mortgaged Property.
(i) Subordinate Lender consents to and authorizes any future release by Senior Lender of all or any portion of the Mortgaged Property from the lien, operation, and effect of the Senior Loan Documents. Subordinate Lender waives to the fullest extent permitted by law, all equitable or other rights it may have in connection with the release of all or any portion of the Mortgaged Property, including any right to require Senior Lender to do any of the following:
(A) To conduct a separate sale of any portion of the Mortgaged Property.
(B) To exhaust its remedies against all or any portion of the Mortgaged Property or any combination of portions of the Mortgaged Property or any other collateral for the Senior Indebtedness.
(C) To proceed against Borrower, any other party that may be liable for any of the Senior Indebtedness (including any general partner of Borrower if Borrower is a partnership), all or any portion of the Mortgaged Property or combination of portions of the Mortgaged Property or any other collateral, before proceeding against all or such portions or combination of portions of the Mortgaged Property as Senior Lender determines. Subordinate Lender waives to the fullest extent permitted by law any and all benefits under California Civil Code Sections 2845, 2849 and 2850.
(ii) Subordinate Lender consents to and authorizes, at the option of Senior Lender, the sale, either separately or together, of all or any portion of the Mortgaged Property. Subordinate Lender acknowledges that without Notice to Subordinate Lender and without affecting any of the provisions of this Agreement, Senior Lender may do any of the following:

Item 9.4
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(A) Extend the time for or waive any payment or performance under the Senior Loan Documents.
(B) Modify or amend in any respect any provision of the Senior Loan Documents.
(C) Modify, exchange, surrender, release, and otherwise deal with any additional collateral for the Senior Indebtedness.
(c) Termination Upon Foreclosure. The lien of the Subordinate Loan Documents will automatically terminate upon the acquisition by Senior Lender or by a third-party purchaser of title to the Mortgaged Property pursuant to a foreclosure of, deed in lieu of foreclosure, or trustee’s sale or other exercise of a power of sale or similar disposition under the Senior Mortgage.

6. Conflicts. If there is any conflict or inconsistency between the terms of the Subordinate Loan Documents and the terms of this Agreement, then the terms of this Agreement will control. Borrower acknowledges that the terms and provisions of this Agreement will not, and will not be deemed to do any of the following:
(a) Extend Borrower’s time to cure any Senior Mortgage Default or Subordinate Mortgage Default.
(b) Give Borrower the right to receive notice of any Senior Mortgage Default or Subordinate Mortgage Default, other than that, if any, provided, respectively under the Senior Loan Documents or the Subordinate Loan Documents. (c) Create any other right or benefit for Borrower as against Senior Lender or Subordinate Lender.

7. Rights and Obligations of Subordinate Lender Under the Subordinate Loan Documents and of Senior Lender under the Senior Loan Documents. (a) Insurance.
(i) All requirements pertaining to insurance under the Subordinate Loan Documents (including requirements relating to amounts and types of coverages, deductibles and special endorsements) will be deemed satisfied if Borrower complies with the insurance requirements under the Senior Loan Documents and of Senior Lender.
(ii) All original policies of insurance required pursuant to the Senior Loan Documents will be held by Senior Lender.
(iii) Nothing in this Section 7(a) will preclude Subordinate Lender from requiring that it be named as a mortgagee and loss payee, as its interest Item 9.4
City Council Meeting Agenda - Page 37 of 118 - Monday, February 02, 2026 Subordination Agreement – Governmental Entity Page 11
may appear, under all policies of property damage insurance maintained by Borrower with respect to the Mortgaged Property, provided such action does not affect the priority of payment of Loss Proceeds, or that Subordinate Lender be named as an additional insured under all policies of liability insurance maintained by Borrower with respect to the Mortgaged Property.
(b) Condemnation or Casualty.

In the event of a Condemnation or a Casualty, the following provisions will apply:
(i) The rights of Subordinate Lender (under the Subordinate Loan Documents or otherwise) to participate in any proceeding or action relating to a Condemnation or a Casualty, or to participate or join in any settlement of, or to adjust, any claims resulting from a Condemnation or a Casualty, will be and remain subordinate in all respects to Senior Lender’s rights under the Senior Loan Documents, and Subordinate Lender will be bound by any settlement or adjustment of a claim resulting from a Condemnation or a Casualty made by Senior Lender.
(ii) All Loss Proceeds will be applied either to payment of the costs and expenses of Restoration or to payment on account of the Senior Indebtedness, as and in the manner determined by Senior Lender in its sole discretion; provided however, Senior Lender agrees to consult with Subordinate Lender in determining the application of Casualty proceeds.

In the event of any disagreement between Senior Lender and Subordinate Lender over the application of Casualty proceeds, the decision of Senior Lender, in its sole discretion, will prevail.
(iii) If Senior Lender holds Loss Proceeds, or monitors the disbursement of Loss Proceeds, Subordinate Lender will not do so. Nothing contained in this Agreement will be deemed to require Senior Lender to act for or on behalf of Subordinate Lender in connection with any Restoration or to hold or monitor any Loss Proceeds in trust for or otherwise on behalf of Subordinate Lender, and all or any Loss Proceeds may be commingled with any funds of Senior Lender.
(iv) If Senior Lender elects to apply Loss Proceeds to payment on account of the Senior Indebtedness, and if the application of such Loss Proceeds results in the payment in full of the entire Senior Indebtedness, any remaining Loss Proceeds held by Senior Lender will be paid to Subordinate Lender unless another party has asserted a claim to the remaining Loss Proceeds.
(c) Modification of Subordinate Loan Documents. Subordinate Lender agrees that, until the principal of, interest on and all other amounts payable under the Senior Item 9.4
City Council Meeting Agenda - Page 38 of 118 - Monday, February 02, 2026 Subordination Agreement – Governmental Entity Page 12
Loan Documents have been paid in full, it will not, without the prior written consent of Senior Lender, increase the amount of the Subordinate Loan, increase the required payments due under the Subordinate Loan, decrease the term of the Subordinate Loan, increase the interest rate on the Subordinate Loan, or otherwise amend the Subordinate Loan terms in a manner that creates an adverse effect upon Senior Lender under the Senior Loan Documents. If Subordinate Lender either (i) amends the Subordinate Loan Documents in the manner set forth above or (ii) assigns the Subordinate Loan without Senior Lender’s consent, then such amendment or assignment will be void ab initio and of no effect whatsoever.

Notwithstanding the foregoing, Subordinate Lender may modify the Subordinate Loan Documents to account for increases to the Subordinate Loan that result from advances made to cure defaults under the Senior Loan Documents. (d) Modification of Senior Loan Documents. Senior Lender may amend, waive, postpone, extend, renew, replace, reduce or otherwise modify any provisions of the Senior Loan Documents without the necessity of obtaining the consent of or providing Notice to Subordinate Lender, and without affecting any of the provisions of this Agreement. Notwithstanding the foregoing, Senior Lender may not modify any provision of the Senior Loan Documents that increases the Senior Indebtedness, except for increases in the Senior Indebtedness that result from advances made by Senior Lender to protect the security or lien priority of Senior Lender under the Senior Loan Documents or to cure defaults under the Subordinate Loan Documents.
(e) Commercial or Retail Leases. If requested, Subordinate Lender will enter into attornment and non-disturbance agreements with all tenants under commercial or retail Leases, if any, to whom Senior Lender has granted attornment and nondisturbance, on the same terms and conditions given by Senior Lender. (f) Consent Rights. Whenever the Subordinate Loan Documents give Subordinate Lender approval or consent rights with respect to any matter, and a right of approval or consent for the same or substantially the same matter is also granted to Senior Lender pursuant to the Senior Loan Documents or otherwise, Senior Lender’s approval or consent or failure to approve or consent will be binding on Subordinate Lender. None of the other provisions of Section 7 are intended to be in any way in limitation of the provisions of this Section 7(f). (g) Escrows. Except as provided in this Section 7(g), and regardless of any contrary provision in the Subordinate Loan Documents, Subordinate Lender will not collect any escrows for any cost or expense related to the Mortgaged Property or for any portion of the Subordinate Indebtedness. However, if Senior Lender is not collecting escrow payments for one or more Impositions, Subordinate Lender may collect escrow payments for such Impositions; provided that all payments so collected by Subordinate Lender will be held in trust by Subordinate Lender to be applied only to the payment of such Impositions.

Item 9.4
City Council Meeting Agenda - Page 39 of 118 - Monday, February 02, 2026 Subordination Agreement – Governmental Entity Page 13
(h) Certification. Within 10 days after request by Senior Lender, Subordinate Lender will furnish Senior Lender with a statement, duly acknowledged and certified setting forth the then-current amount and terms of the Subordinate Indebtedness, confirming that there exists no default under the Subordinate Loan Documents (or describing any default that does exist), and certifying to such other information with respect to the Subordinate Indebtedness as Senior Lender may request.

8. Refinancing. Subordinate Lender agrees that its agreement to subordinate under this Agreement will extend to any new mortgage debt which is for the purpose of refinancing all or any part of the Senior Indebtedness (including reasonable and necessary costs associated with the closing and/or the refinancing, and any reasonable increase in proceeds for rehabilitation in the context of a preservation transaction). All terms and covenants of this Agreement will inure to the benefit of any holder of any such refinanced debt, and all references to the Senior Loan Documents and Senior Lender will mean, respectively, the refinance loan documents and the holder of such refinanced debt.

9. Governmental Powers. Nothing in this Agreement is intended, nor will it be construed, to in any way limit the exercise by Subordinate Lender of its governmental powers (including police, regulatory and taxing powers) with respect to Borrower or the Mortgaged Property to the same extent as if it were not a party to this Agreement or the transactions contemplated by this Agreement.

10. Notices.
(a) Any Notice required or permitted to be given pursuant to this Agreement will be in writing and will be deemed to have been duly and sufficiently given if (i) personally delivered with proof of delivery (any Notice so delivered will be deemed to have been received at the time so delivered), or (ii) sent by a national overnight courier service (such as FedEx) designating earliest available delivery (any Notice so delivered will be deemed to have been received on the next Business Day following receipt by the courier), or (iii) sent by United States registered or certified mail, return receipt requested, postage prepaid, at a post office regularly maintained by the United States Postal Service (any Notice so sent will be deemed to have been received on the date of delivery as confirmed by the return receipt), addressed to the respective parties as follows:

Notices intended for Senior Lender will be addressed to:

Berkadia Commercial Mortgage LLC
323 Norristown Road, Suite 300
Ambler, Pennsylvania 19002
Attention: Servicnig
Notices intended for Subordinate Lender will be addressed to:

City of Pleasant Hill
Item 9.4
City Council Meeting Agenda - Page 40 of 118 - Monday, February 02, 2026 Subordination Agreement – Governmental Entity Page 14
100 Gregory Lane
Pleasant Hill, CA 94523
Attention:
(b) Any party, by Notice given pursuant to this Section 10, may change the person or persons and/or address or addresses, or designate an additional person or persons or an additional address or addresses, for its Notices, but Notice of a change of address will only be effective upon receipt. Neither party will refuse or reject delivery of any Notice given in accordance with this Section 10.

11. Reserved.

12. Miscellaneous Provisions.
(a) Assignments/Successors. This Agreement will be binding upon and will inure to the benefit of the respective legal successors and permitted assigns of the parties to this Agreement. Without prior notice to or the consent of the Subordinate Lender or the Borrower, the Senior Lender may freely transfer or assign the Senior Loan and the Senior Loan Documents, including this Agreement, in whole or in part, and the Subordinate Lender acknowledges and agrees that any future legal holder of the Senior Note will automatically be a legal successor and permitted assignee of Senior Lender hereunder, without the necessity of any further action or instrument. No other party will be entitled to any benefits under this Agreement, whether as a third-party beneficiary or otherwise. (b) No Partnership or Joint Venture. Nothing in this Agreement or in any of the Senior Loan Documents or Subordinate Loan Documents will be deemed to constitute Senior Lender as a joint venturer or partner of Subordinate Lender. (c) Further Assurances. Upon Notice from Senior Lender, Subordinate Lender will execute and deliver such additional instruments and documents, and will take such actions, as are required by Senior Lender to further evidence or implement the provisions and intent of this Agreement.
(d) Amendment. This Agreement may be amended, changed, modified, altered or terminated only by a written instrument signed by the parties to this Agreement or their successors or assigns.
(e) Governing Law. This Agreement will be governed by the laws of the State in which the Land is located.
(f) Severable Provisions. If any one or more of the provisions contained in this Agreement, or any application of any such provisions, is invalid, illegal, or unenforceable in any respect, the validity, legality, enforceability, and application of the remaining provisions contained in this Agreement will not in any way be affected or impaired.

Item 9.4
City Council Meeting Agenda - Page 41 of 118 - Monday, February 02, 2026 Subordination Agreement – Governmental Entity Page 15
(g) Term. The term of this Agreement will commence on the date of this Agreement and will continue until the earliest to occur of the following events:
(i) The payment of all the Senior Indebtedness; provided that this Agreement will be reinstated in the event any payment on account of the Senior Indebtedness is avoided, set aside, rescinded or repaid by Senior Lender. (ii) The payment of all the Subordinate Indebtedness other than by reason of payments which Subordinate Lender is obligated to remit to Senior Lender pursuant to this Agreement.
(iii) The acquisition by Senior Lender or by a third-party purchaser of title to the Mortgaged Property pursuant to a foreclosure of, deed in lieu of foreclosure, or trustee’s sale or other exercise of a power of sale or similar disposition under the Senior Mortgage.
(iv) With the prior written consent of Senior Lender, without limiting the provisions of Section 4(b)(iv), the acquisition by Subordinate Lender of title to the Mortgaged Property subject to the Senior Mortgage pursuant to a foreclosure, or a deed in lieu of foreclosure, of (or the exercise of a power of sale under) the Subordinate Mortgage.
(h) Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument.
(i) Entire Agreement. This Agreement represents the entire understanding and agreement between the parties regarding the matters addressed in this Agreement, and will supersede and cancel any prior agreements regarding such matters. (j) Authority. Each person executing this Agreement on behalf of a party to this Agreement represents and warrants that such person is duly and validly authorized to do so on behalf of such party with full right and authority to execute this Agreement and to bind such party with respect to all of its obligations under this Agreement.
(k) No Waiver. No failure or delay on the part of any party to this Agreement in exercising any right, power, or remedy under this Agreement will operate as a waiver of such right, power, or remedy, nor will any single or partial exercise of any such right, power or remedy preclude any other or further exercise of such right, power, or remedy or the exercise of any other right, power or remedy under this Agreement.
(l) Remedies. Each party to this Agreement acknowledges that if any party fails to comply with its obligations under this Agreement, the other parties will have all Item 9.4
City Council Meeting Agenda - Page 42 of 118 - Monday, February 02, 2026 Subordination Agreement – Governmental Entity Page 16
rights available at law and in equity, including the right to obtain specific performance of the obligations of such defaulting party and injunctive relief.

13. Attached Riders. The following Riders are attached to this Agreement: None

14. Attached Exhibits. The following Exhibits, if marked with an “X” in the space provided, are attached to this Agreement:
|X| Exhibit A Description of the Land (required)
| | Exhibit B Ground Lease Description (if applicable)
[SIGNATURE AND ACKNOWLEDGMENT PAGES FOLLOW]
Item 9.4
City Council Meeting Agenda - Page 43 of 118 - Monday, February 02, 2026 Subordination Agreement – Governmental Entity Page S-1
IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first above written.

SENIOR LENDER:

BERKADIA COMMERCIAL MORTGAGE
LLC, a Delaware limited liability company
By: _____________________
Amy Jesberger
Authorized Representative

ACKNOWLEDGMENT

COMMONWEALTH OF PENNSYLVANIA

COUNTY OF MONTGOMERY
On ________________________ before me, _________________________________________, (Insert Name and Title of the Officer)
personally appeared Amy Jesberger, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the Commonwealth of Pennsylvania that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature____________________________________(Seal)
A notary public or other officer
completing this certificate verifies only
the identity of the individual who
signed the document to which this
certificate is attached, and not the
truthfulness, accuracy, or validity of
that document.

Item 9.4
City Council Meeting Agenda - Page 44 of 118 - Monday, February 02, 2026 Subordination Agreement – Governmental Entity Page S-2
SUBORDINATE LENDER:

CITY OF PLEASANT HILL
By: ______________________________________
Name: ___________________________________
Title: ____________________________________

ACKNOWLEDGMENT
State of
County of
On _____________, 2025 before me, _________________________________________, (Insert Name and Title of the Officer)
personally appeared ___________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature____________________________________(Seal)
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

Item 9.4
City Council Meeting Agenda - Page 45 of 118 - Monday, February 02, 2026 Subordination Agreement – Governmental Entity Page S-3

CONSENT OF BORROWER
Borrower acknowledges receipt of a copy of this Subordination Agreement, dated _____________, 2025, by and between BERKADIA COMMERCIAL MORTGAGE LLC and CITY OF PLEASANT HILL and consents to the agreement of the parties set forth in this Agreement.

Item 9.4
City Council Meeting Agenda - Page 46 of 118 - Monday, February 02, 2026 Subordination Agreement – Governmental Entity Page S-4
BORROWER:

BRIDGE GRAYSON CREEK ASSOCIATES,
a California limited partnership
By: CHURCH STREET HOUSING, INC.,
a California nonprofit public benefit corporation,
its General Partner
By: __________________
Name:

Title:

ACKNOWLEDGMENT
State of
County of
On ________________________ before me, _________________________________________, (Insert Name and Title of the Officer)
personally appeared __________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Item 9.4
City Council Meeting Agenda - Page 47 of 118 - Monday, February 02, 2026 Subordination Agreement – Governmental Entity Page A-1

EXHIBIT A

LEGAL DESCRIPTION
Item 9.4
City Council Meeting Agenda - Page 48 of 118 - Monday, February 02, 2026 LPR Subord. Agrmt Page 1 of 10
Rev: 3/5/2024
Prep: 10/28/2025 (RDA of the City of Pleasant Hill Loan) Dev: Grayson Creek Apartments
Assessor’s Identification Number: 153-030-105-8 & 153-030-077-9 Loan No.: 24-LPR-0109 (formerly, 00-MHP-0021)

FREE RECORDING IN ACCORDANCE

WITH CALIFORNIA GOVERNMENT
CODE SECTION 27383 and 27388.1.

RECORDING REQUESTED BY, AND
WHEN RECORDED, MAIL TO:

State of California
Department of Housing and
Community Development
Loan Portfolio Restructuring Program
P. O. Box 952052
Sacramento, CA 94252-2052
Attn: Legal Affairs Division
24-LPR-0109

SUBORDINATION AGREEMENT
NOTICE: THIS SUBORDINATION AGREEMENT RESULTS IN YOUR SECURITY

INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF LOWER PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT.

THIS SUBORDINATION AGREEMENT (the "Agreement") is dated as of November 26, 2025, for reference purposes only, and is entered into by and among City of Pleasant Hill, as housing successor agency to the Pleasant Hill Redevelopment Agency, a political body corporate and politic (the "Junior Lienholder"), and BRIDGE Grayson Creek Associates, a California Limited Partnership, a California limited partnership (the "Borrower"), and the Department of Housing and Community Development, a public agency of the State of California (the "Senior Lender").

RECITALS
A. Borrower is the owner of the fee simple interest in that real property described in Exhibit A attached hereto and made a part hereof (the "Property"). The Borrower has acquired and is rehabilitating a 70-unit multifamily residential rental development on the Property (the "Improvements"). The Property and the Improvements are sometimes referred to collectively as the "Development."
B. The Junior Lienholder has made (i) a loan to the Borrower in the principal sum of One Million Five Thousand and no/100 Dollars ($1,005,000.00) (the "Junior Lienholder Loan") and a grant to the Borrower in the principal sum of Six Million Eight Hundred Fifteen Thousand and Item 9.4
City Council Meeting Agenda - Page 49 of 118 - Monday, February 02, 2026 LPR Subord. Agrmt Page 2 of 10
Rev: 3/5/2024
Prep: 10/28/2025 (RDA of the City of Pleasant Hill Loan) Dev: Grayson Creek Apartments
Assessor’s Identification Number: 153-030-105-8 & 153-030-077-9 Loan No.: 24-LPR-0109 (formerly, 00-MHP-0021)
no/100 Dollars ($6,815,000.00) (the “Junior Lienholder Grant”). The Junior Lienholder Loan is evidenced by a certain promissory note (the “Junior Lienholder Loan Note”) and the Junior Lienholder Grant is evidenced by a certain promissory note (the “Junior Lienholder Grant Note”), both of which are secured by a certain Amended and Restated Construction and Permanent Deed of Trust, Assignment of Rents, and Security Agreement (the “Junior Lienholder Deed of Trust”) recorded on October 19, 2001, as Instrument No. 2001-315912, in the Official Records of Contra Costa County, California (the “Official Records”).

1. The Junior Lienholder and Borrower have also entered into a “Amended and Restated Intercreditor Agreement” affecting the use of the Development, recorded on October 19, 2001, under Recorder's Serial Number 2001-0315910, in the Official Records (the “Junior Lienholder Intercreditor Agreement”).

2. The Junior Lienholder and Borrower have also entered into a Regulatory Agreement affecting the use of the Development, recorded on July 31, 1998, under Recorder's Serial Number 1998-0181887, as modified by a document recorded in the Official Records on October 19, 2001, as Instrument No. 2001- 315913 (collectively, the “Junior Lienholder Regulatory Agreement”).

3. The Junior Lienholder Deed of Trust, the Junior Lienholder Intercreditor Agreement, the Junior Lienholder Regulatory Agreement, and all other documents evidencing or securing the Junior Lienholder Loan and the Junior Lienholder Grant are collectively referred to herein as the “Junior Lienholder Documents”.

C. In order to finance the development of the Improvements, the Senior Lender has agreed to allow the Borrower to restructure an existing Senior Lender loan into a new Loan Portfolio Restructuring Program Loan in a sum not to exceed Five Million Seven Hundred Seventy Four Thousand Two Hundred Fifteen and 40/100 Dollars ($5,774,215.40) with accrued interest thereon (the "LPR Loan"), subject to the terms and conditions of: (i) that certain Loan Portfolio Restructuring Program Junior Regulatory Agreement and that certain Loan Portfolio Restructuring Program Senior Regulatory Agreement (Affordability Restrictions) restricting the use and occupancy of the Development and the income derived therefrom, both recorded concurrently herewith as encumbrances on the Property in the Official Records (collectively, the "LPR Regulatory Agreements"), and (ii) other loan documents. The LPR Loan will be evidenced by a promissory note (the "LPR Note"), the repayment of which will be secured by, among other things, a deed of trust by Borrower as trustor, to Department, as beneficiary, recorded concurrently herewith as an encumbrance on the Property in the Official Records (the "LPR Deed of Trust"), and by such other security as is identified in other loan documents. The LPR Regulatory Agreements, LPR Note, LPR Deed of Trust, and any and all other documents evidencing or securing the LPR Loan shall hereinafter be collectively referred to as the “Senior Lender Documents.”
D. The Senior Lender is willing to make the LPR Loan provided the Senior Lender Documents are liens, claims or charges upon the Development prior and superior to the Junior Item 9.4
City Council Meeting Agenda - Page 50 of 118 - Monday, February 02, 2026 LPR Subord. Agrmt Page 3 of 10
Rev: 3/5/2024
Prep: 10/28/2025 (RDA of the City of Pleasant Hill Loan) Dev: Grayson Creek Apartments
Assessor’s Identification Number: 153-030-105-8 & 153-030-077-9 Loan No.: 24-LPR-0109 (formerly, 00-MHP-0021)
Lienholder Documents, and provided that the Junior Lienholder specifically and unconditionally subordinates and subjects the Junior Lienholder Documents to the liens, claims or charges of the Senior Lender Documents.

AGREEMENT
NOW, THEREFORE, in consideration of the mutual benefits accruing to the parties hereto and other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and in order to induce the Senior Lender to make its LPR Loan, it is hereby declared, understood and agreed as follows:

1. The Senior Lender Documents, and any and all renewals, modifications, extensions or advances thereunder or secured thereby (including interest thereon) shall unconditionally be and remain at all times liens, claims, or charges on the Development prior and superior to the Junior Lienholder Documents, and to all rights and privileges of the Junior Lienholder thereunder; and the Junior Lienholder Documents, together with all rights and privileges of the Junior Lienholder thereunder are hereby irrevocably and unconditionally subject and made subordinate to the liens, claims or charges of the Senior Lender Documents.

2. This Agreement shall be the whole and only agreement with regard to the subordination of the Junior Lienholder Documents, together with all rights and privileges of the Junior Lienholder thereunder, to the liens, claims or charges of the Senior Lender Documents, and this Agreement shall supersede and cancel any prior agreements to subordinate the claims, liens or charges of, but only insofar as would affect the priority between the claims, liens or charges of the Junior Lienholder Documents to the Senior Lender Documents including, but not limited to, those provisions, if any, contained in the Junior Lienholder Documents, which provide for the subordination of the lien or charge thereof to another lien or charge on the Property or the Improvements.

3. The Junior Lienholder declares, agrees and acknowledges that:
(a) The Junior Lienholder consents and approves (i) all provisions of the LPR Note, the LPR Deed of Trust and the LPR Regulatory Agreements, and (ii) all agreements among the Junior Lienholder, Borrower and Senior Lender for the disbursement of the proceeds of the LPR Loan, including without limitation any loan escrow agreements which have been provided to the Junior Lienholder for review; (b) The Senior Lender, in making disbursements of the LPR Loan pursuant to the LPR Note or any other agreement, is under no obligation or duty to, nor has the Senior Lender represented that it will, see to the application of such proceeds by the person or persons to whom the Senior Lender disburses such proceeds, and any application or use of such proceeds for purposes other than those provided for in such agreement or Item 9.4
City Council Meeting Agenda - Page 51 of 118 - Monday, February 02, 2026 LPR Subord. Agrmt Page 4 of 10
Rev: 3/5/2024
Prep: 10/28/2025 (RDA of the City of Pleasant Hill Loan) Dev: Grayson Creek Apartments
Assessor’s Identification Number: 153-030-105-8 & 153-030-077-9 Loan No.: 24-LPR-0109 (formerly, 00-MHP-0021)
agreements shall not defeat the subordination herein made in whole or in part; (c) That none of the execution, delivery or recordation of any of the LPR Note, LPR Deed of Trust, or LPR Regulatory Agreements, or the performance of any provision, condition, covenant or other term thereof, will conflict with or result in a breach of the Junior Lienholder Documents or the Junior Lienholder Note; and (d) The Junior Lienholder intentionally and unconditionally waives, relinquishes, subjects and subordinates the claims, liens or charges upon the Development of the Junior Lienholder Documents, all present and future indebtedness and obligations secured thereby, in favor of the claims, liens or charges upon the Development of the Senior Lender Documents, and understands that in reliance upon, and in consideration of, this waiver, relinquishment, subjection, and subordination, the LPR Loan and advances thereof are being and will be made and, as part and parcel thereof, specific monetary and other obligations are being and will be entered into which would not be made or entered into but for said reliance upon this waiver, relinquishment, subjection and subordination.

4. Senior Lender hereby agrees, but only as a separate and independent covenant of the Senior Lender and not as a condition to the continued effectiveness of the covenants and agreements of the Borrower and the Junior Lienholder as set forth herein, as follows:
(a) Following a notice from the Senior Lender to the Borrower that a default or breach exists under the terms of the Senior Lender Documents and each of them, the Senior Lender shall promptly (but in no event later than the following business day) send a copy of such notice to the Junior Lienholder and the Junior Lienholder shall have the right, but not the obligation, to cure the default as follows:
(i) If the default is reasonably capable of being cured within thirty (30) days, as determined by the Senior Lender in its sole discretion, the Junior Lienholder shall have such period to effect a cure prior to exercise of remedies by Senior Lender under the Senior Lender Documents, or such longer period of time as may be specified in the Senior Lender Documents.
(ii) If the default is such that it is not reasonably capable of being cured within thirty (30) days, as determined by the Senior Lender in its sole discretion, or such longer period if so specified, and if the Junior Lienholder (a) initiates corrective action within said period, and (b) diligently, continually, and in good faith works to effect a cure as soon as possible, then the Junior Lienholder shall have such additional time as is determined by the Senior Lender, in its sole discretion, to be reasonably necessary to cure the default prior to exercise of any Item 9.4
City Council Meeting Agenda - Page 52 of 118 - Monday, February 02, 2026 LPR Subord. Agrmt Page 5 of 10
Rev: 3/5/2024
Prep: 10/28/2025 (RDA of the City of Pleasant Hill Loan) Dev: Grayson Creek Apartments
Assessor’s Identification Number: 153-030-105-8 & 153-030-077-9 Loan No.: 24-LPR-0109 (formerly, 00-MHP-0021)
remedies by Senior Lender.

In no event shall Senior Lender be precluded from exercising remedies if its security becomes or is about to become materially jeopardized by any failure to cure a default or the default is not cured within ninety (90) days after the first notice of default is given, or such longer period of time as may be specified in the Senior Lender Documents.

Nothing in this subparagraph (a) is intended to modify any covenant, term or condition contained in the Senior Lender Documents, including, without limitation, the covenant against creating or recording any liens or encumbrances against the Property without the prior written approval of the Senior Lender.
(b) The provisions of this paragraph 4 are intended to supplement, and not to limit, waive, modify or replace, those provisions of law pertaining to notice and cure rights of junior lenders including, without limitation, those set forth in California Civil Code sections 2924b and 2924c.

5. The Senior Lender would not make the LPR Loan without this Agreement.

6. This Agreement shall be binding on and inure to the benefit of the legal representatives, heirs, successors and assigns of the parties.

7. This Agreement shall be governed by and construed in accordance with the laws of the State of California.

8. In the event that any party to this Agreement brings an action to interpret or enforce its rights under this Agreement, the prevailing party in such action shall be entitled to recover its costs and reasonable attorneys' fees as awarded by the court in such action.

9. This Agreement may be signed by different parties hereto in counterparts with the same effect as if the signatures to each counterpart were upon a single instrument. All counterparts shall be deemed an original of this Agreement. [Signatures commence on following page.]
[Remainder of this page is intentionally left blank.]
Item 9.4
City Council Meeting Agenda - Page 53 of 118 - Monday, February 02, 2026 LPR Subord. Agrmt Page 6 of 10
Rev: 3/5/2024
Prep: 10/28/2025 (RDA of the City of Pleasant Hill Loan) Dev: Grayson Creek Apartments
Assessor’s Identification Number: 153-030-105-8 & 153-030-077-9 Loan No.: 24-LPR-0109 (formerly, 00-MHP-0021)
NOTICE: THIS SUBORDINATION AGREEMENT CONTAINS A PROVISION WHICH

ALLOWS THE PERSON (OR ENTITY) OBLIGATED ON YOUR REAL PROPERTY

SECURITY TO OBTAIN A LOAN A PORTION OF WHICH MAY BE EXPENDED FOR OTHER PURPOSES THAN IMPROVEMENT OF THE LAND.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above and agree to be bound hereby:

JUNIOR LIENHOLDER:

City of Pleasant Hill as the housing
successor to the Pleasant Hill
Redevelopment Agency,
a California municipal corporation
By:

Name:

Title:

APPROVED AS TO FORM:

BY:

NAME:

ITS:
[Signatures continue on following page.]
[Remainder of this page is intentionally left blank.]
Item 9.4
City Council Meeting Agenda - Page 54 of 118 - Monday, February 02, 2026 LPR Subord. Agrmt Page 7 of 10
Rev: 3/5/2024
Prep: 10/28/2025 (RDA of the City of Pleasant Hill Loan) Dev: Grayson Creek Apartments
Assessor’s Identification Number: 153-030-105-8 & 153-030-077-9 Loan No.: 24-LPR-0109 (formerly, 00-MHP-0021)
BORROWER:

BRIDGE Grayson Creek Associates,
a California limited partnership
By:Church Street Housing, Inc.,
a California nonprofit public benefit corporation
Its: Managing General Partner
By:

Sierra Atilano, Vice President
[Signatures continue on following page.]
[Remainder of this page is intentionally left blank.]
Item 9.4
City Council Meeting Agenda - Page 55 of 118 - Monday, February 02, 2026 LPR Subord. Agrmt Page 8 of 10
Rev: 3/5/2024
Prep: 10/28/2025 (RDA of the City of Pleasant Hill Loan) Dev: Grayson Creek Apartments
Assessor’s Identification Number: 153-030-105-8 & 153-030-077-9 Loan No.: 24-LPR-0109 (formerly, 00-MHP-0021)
SENIOR LENDER:

Department of Housing and Community Development,
a public agency of the State of California
By:

Emeline T. Alvarez, Manager
Transactions Unit
[All signatures must be acknowledged.]
[Remainder of this page is intentionally left blank.]
Item 9.4
City Council Meeting Agenda - Page 56 of 118 - Monday, February 02, 2026 LPR Subord. Agrmt Page 9 of 10
Rev: 3/5/2024
Prep: 10/28/2025 (RDA of the City of Pleasant Hill Loan) Dev: Grayson Creek Apartments
Assessor’s Identification Number: 153-030-105-8 & 153-030-077-9 Loan No.: 24-LPR-0109 (formerly, 00-MHP-0021)

EXHIBIT A

LEGAL DESCRIPTION OF THE PROPERTY
Real property in the City of Pleasant Hill, County of Contra Costa, State of California, described as follows:

PARCEL ONE:

Parcel “B”, as shown on the Parcel Map recorded March 9, 1972, in Book 21 of Maps, at

Page 10 ends

Parcel Maps, at Page 19, Contra Costa County Records, described as follows:

Beginning at the northeast corner of said Parcel “B” (21 PM 10); thence from said point of beginning along the exterior lines of said Parcel “B” the following courses: South 43° 15’ 15” East 131.15 feet to the beginning of a tangent curve concave to the northeast, having a radius of 424.98 feet; a radial line to the beginning of said curve bears South 46° 44’ 45” West; thence southeasterly 154.99 feet along the arc of said curve through a central angle of 20° 53’ 44” a radial line to the end of said curve bears South 25° 51’ 01” West to the beginning of a non-tangent curve concave to the North, having a radius of 1940.00 feet, a radial line to the beginning of said curve bears South 17° 37’ 15” East; thence westerly 326.25 feet along the arc of said curve through a central angle of 09° 38’ 08”; thence South 07° 59’ 07” East

10.00 feet to the beginning of a non-tangent curve concave to the North, having a radius of 550.00 feet, a radial line to the beginning of said curve bears South 07° 59’ 07” East; thence westerly 44.48 feet along the arc of said curve through a central angle of 04° 38’ 02”; thence North 20° 30’ 00” West 200.35 feet to the northwest corner of said parcel “B” (21 PM 10) being the southwest corner of said Parcel “2” (94 PM 19); thence leaving said exterior line of Parcel “B” along the exterior line of said Parcel “2” (94 PM 19) the following courses: North 57° 00’ 00” West 38.00 feet; thence North 33° 00’ 00” East 111.00 feet; thence North 05° 12’ 06” West 33.16 feet; thence North 60° 29’ 30” West 160.00 feet; thence North 77° 30’ 16” West 60.00 feet; thence North 06° 01’ 53” East, 497.23 feet to the beginning of a non-tangent curve concave to the North, having a radius of 35.00 feet, a radial line to the beginning of said curve bears South 37° 49’ 14” West; thence easterly 23.71 feet along the arc of said curve through a central angle of 38° 48’ 48” to the beginning of a reverse curve concave to the West, having a radius of 42.00 feet, a radial line to the beginning of said curve bears North 00° 59’ 34” West; thence southerly 19.27 feet along the arc of said curve through a central angle of 124° 30’ 44”; thence South 56° 32’ 57” East, 20.87 feet to the beginning of a non-tangent curve concave to the East, having a radius of 349.98 feet, a radial line to the beginning of said curve bears North 89° 10’ 05” West; thence southerly 146.86 feet along the arc of said curve through a central angle of 24° 02’ 35”; thence South 23° 12’ 40” East, 225.75 feet to the beginning of a tangent curve concave to the northeast, having a radius of 674.96 feet; a radial line to the beginning of said curve bears South 66° 47’ 20” West; thence southeasterly 236.11 feet through a central angle of 20° 02’ 35”; thence South 43° 15’ 15” East 22.58 feet to the point of beginning.

Item 9.4
City Council Meeting Agenda - Page 57 of 118 - Monday, February 02, 2026 LPR Subord. Agrmt Page 10 of 10
Rev: 3/5/2024
Prep: 10/28/2025 (RDA of the City of Pleasant Hill Loan) Dev: Grayson Creek Apartments
Assessor’s Identification Number: 153-030-105-8 & 153-030-077-9 Loan No.: 24-LPR-0109 (formerly, 00-MHP-0021)
Said Parcel One is also described in that certain Certificate of Lot Line Adjustment recorded July 28, 1999, Series No. 99-201561, Contra Costa County Records.

PARCEL TWO:

A non-exclusive easement appurtenant to Parcel One above for roadway access purposes and the installation and maintenance of sanitary sewers, storm drainage facilities, gas, electric, telephone, water, cable television and other utilities or facilities deemed necessary by county in, on, over and across the following described parcel of land:

Beginning at a point on the North line of Chilpancingo Parkway at the most southeasterly corner of Parcel “1” as said parcel is shown on the Parcel Map filed April 20, 1981 in Book 94 of Parcel Maps at Page 19, Contra Costa County Records, thence along the exterior line of said Parcel 1, North 20° 30’ 00” West, 200.35 feet; thence leaving said exterior line, North 57° 00’ 00” West, 38.00 feet; South 33° 00’ 00” West, 27.86 feet; South 20° 30’ 00” East, 145.00 feet and South 15° 46’ 14” West, 49.91 feet to the northerly line of said Chilpancingo Parkway; thence easterly along said northerly line 80.12 feet, more or less, to the point of beginning.

APN: 153-030-105 and 153-030-077
Item 9.4
City Council Meeting Agenda - Page 58 of 118 - Monday, February 02, 2026 RESOLUTION NO. 51-25

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

AUTHORIZING THE CITY MANAGER TO ENTER INTO SUBORDINATION

AGREEMENTS WITH BRIDGE HOUSING AND TWO SENIOR LENDERS FOR THE GRAYSON CREEK APARTMENTS AT 100 CHILPANCINGO PARKWAY
WHEREAS, the former City of Pleasant Hill Redevelopment Agency provided a $4,500,000 dollar loan to assist the affordable housing project, Grayson Creek Apartments at 100 Chilpancingo Parkway and agreed to subordinate to the primary project loan; and WHEREAS, in 2001, the former City of Pleasant Hill Redevelopment Agency agreed to an amendment that split the original loan into a $1,005,000 loan and a $6,815,000 grant and continued to subordinate to project loans from the California Housing Finance Agency (“CalHFA”) and California Department of Housing and Community Development (“HCD”); and WHEREAS, Bridge Housing has requested the City enter into a new subordination agreement with Berkadia Commercial Mortgage LLC due to a refinancing of the CalHFA loan, such that the City’s original subordinate financial position does not change, only to note that the City is subordinate to the new primary loan, which will replace the existing CalHFA loan; and WHEREAS, HCD is preparing new loan documents to commemorate its existing loan, and Bridge Housing has further requested that the City enter into a new subordination agreement among the City, Bridge Grayson Creek Associates, and HCD to affirm the City’s position as subordinate to the HCD loan; and
WHEREAS, the purpose of the refinancing of the existing loan is to make improvements and maintenance repairs to the apartment complex.

NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Pleasant Hill that the City Manager is authorized to execute a subordination agreement between the City and Berkadia Commercial Mortgage LLC in substantially the form attached hereto as Exhibit A, and is further authorized to execute a second subordination agreement by and among the City, Bridge Grayson Creek Associates, and HCD in substantially the form attached hereto as Exhibit B, both for the Grayson Creek Apartments at 100 Chilpancingo Parkway. [Signatures on the Following Page]
ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting held on this 17th day of November, 2025, by the following vote:

Item 9.4
City Council Meeting Agenda - Page 59 of 118 - Monday, February 02, 2026 AYES: La, Obolenskiy, Shess, Szakats, Noack
NOES: None
ABSENT: None
ABSTAIN: None
SUE NOACK, Mayor
ATTEST:
_____________________________
LYONE P. CONNER, City Clerk
_________________________
ONE P. CONNER, City Clerk
Item 9.4
City Council Meeting Agenda - Page 60 of 118 - Monday, February 02, 2026

CITY COUNCIL STAFF REPORT
Meeting Date: February 2, 2026
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
TITLE: ADOPT RESOLUTION NO. ____-26 APPROVING AMENDED AND

RESTATED MUNICIPAL POOLING AUTHORITY JOINT EXERCISE OF

POWERS AGREEMENT

SYNOPSIS
Adoption of the proposed resolution will approve the Municipal Pooling Authority Amended and Restated Joint Exercise of Powers Agreement for providing property, workers' compensation, public liability, and other insurance coverages and authorize and direct the designated primary or alternate MPA Board member to execute the same on behalf of the City.

BACKGROUND
The City of Pleasant Hill is a member of Municipal Pooling Authority (“MPA”) a Joint Exercise of Powers Authority (“JPA”). MPA provides members with administration and self-insured coverage for liability, workers’ compensation, vehicle physical damage, and short-term disability, as well as access to participate in 14 additional programs that offer coverage for property, crime, cyber, and employee benefits. MPA was formally approved by the state as of July 1, 1977. Many of its founding members are still members today. Currently, MPA has 21 member municipalities, which are primarily located in Contra Costa County, with a few outlying members in Stanislaus County and San Mateo County.

MPA was formed primarily to mitigate the rising costs of private insurance for liability and workers’ compensation. The founding members agreed to pool fiscal resources to share in the cost of administering and litigating claims. This pooling of funds is permitted under the Joint Powers Act, Government Code, Sections 6500-6536. There are over 1,800 JPAs in California that provide public agencies with pooled coverage for benefits, liability, workers' compensation, and other services. By pooling funds, MPA members share in the risk and cost of claims, thereby stabilizing the impact on individual members' costs. The share in claims cost is spread among the members.

However, pooling is not just a means of sharing the cost of claims; MPA members receive economies of scale benefits for a variety of additional insurances that can only be accessed through membership in the pool, such as, for example, property, cyber, crime, and deadly weapons coverage for the members. MPA also provides valuable resources for training and education, as well as access to a comprehensive wellness program, ergonomics program, life insurance, and Item 10.1
City Council Meeting Agenda - Page 61 of 118 - Monday, February 02, 2026 online training modules. MPA’s risk mitigation support includes mandatory safety training and inspection support to ensure regulatory compliance, as well as mandatory employee certifications.

Participation in a JPA is invaluable in reducing claims exposure and cost. Due to the pooling aspect, members also receive dividends for years the reserved funds have exceeded the actual cost for that year. These dividends were instrumental in aiding members through the revenue decline that resulted from COVID-19. MPA has also been able to provide members with grants to address safety needs within their cities.

MPA has a board of directors, with each member of the pool holding a position on the Board. The Board collectively decides on how claims are administered and what is covered by the pool.

Through the Coverage and Governance Committee, the Board regularly reviews the bylaws and memorandums of coverage for each program annually to determine how coverage will be provided. To be a member of MPA, each member’s governing body must agree to the Joint Exercise of Powers Agreement (“JPA Agreement”), which is the foundational document that outlines MPA’s powers and organizational structure. The JPA is the required governing document regulating member participation in any of MPA’s programs. The last version was adopted by the Board of Directors in 2004 and executed in 2005 by its members and has recently undergone an extensive review and revision process.

DISCUSSION
At the February 27, 2025, meeting, as part of its review of MPA’s governing documents, the MPA Coverage and Governance Committee approved recommended amendments to update the JPA Agreement to ensure alignment with other MPA governing documents and applicable laws. Those recommended amendments were then reviewed by the MPA Executive Committee, which approved the recommended amendments with certain revisions on March 26, 2025. The revised recommended amendments were then approved by the MPA Board of Directors on April 10, 2025.

The amendments approved by the MPA Board of Directors were then sent to each member for review and feedback. The feedback received was reviewed by MPA Staff and Legal Counsel, and additional revisions were made based on that feedback. The final recommended amendments were approved by the MPA Board of Directors on January 13, 2026, and include updates and formatting refinements to ensure clarity and consistency:
• Section 3 (Creation of MPA): Language revised to clarify that MPA was previously formed and is continued pursuant to current Government Code provisions (title also changed to “Amended and Restated).”
• Section 8 (Powers of MPA): Additional language added to address CAJPA accreditation recommendation regarding language specifying limitation of powers.

Item 10.1
City Council Meeting Agenda - Page 62 of 118 - Monday, February 02, 2026 • Section 17 (Member Responsibilities): Minor re-wording to clarify that obligations continue beyond participation and to better define a Member’s duty to provide requested information and support investigations.
• Section 23 (Effect of Withdrawal or Expulsion): Clarified language confirming that withdrawal or expulsion does not relieve a Member from obligations under MPA’s governing documents.
• General Formatting and Language Consistency: Several non-substantive edits were made throughout the document to correct formatting issues that arose during the conversion of the original PDF into an editable format. These changes improve internal consistency and readability without altering meaning.

The Amended and Restated JPA Agreement (included as Attachment A) must now be approved by each member by resolution of the member’s governing body and signed by each member’s designee. Staff is requesting City Council’s consideration and adoption of the amended agreement.

FISCAL IMPACT
There is no fiscal impact associated with approving the MPA Amended and Restated JPA Agreement.

RECOMMENDED CITY COUNCIL ACTION
Adopt the proposed resolution approving the Amended and Restated Municipal Pooling Authority Joint Exercise of Powers Agreement for providing Property, Workers' Compensation, Public Liability, and other insurance coverages.

ATTACHMENT(S)
Proposed Resolution – MPA Amended and Restated JPA Agreement Attachment A – MPA Amended and Restated JPA Agreement
Attachment B – MPA Amended and Restated JPA Agreement (track changes) Prepared by: Ericka R. Mitchell, Chief Human Resources Officer Approved by: Ethan Bindernagel, City Manager
Item 10.1
City Council Meeting Agenda - Page 63 of 118 - Monday, February 02, 2026 RESOLUTION NO. -26

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

APPROVING THE MUNICIPAL POOLING AUTHORITY AMENDED AND RESTATED

JOINT EXERCISE OF POWERS AGREEMENT FOR PROVIDING PROPERTY, WORKERS’ COMPENSATION, PUBLIC LIABILITY, AND OTHER INSURANCE

COVERAGES
WHEREAS, Municipal Pooling Authority (MPA) wasformed in 1977 by a Joint Exercise of Powers Agreement; and
WHEREAS, MPA was formed primarily to mitigate the rising costs of private insurance for liability and workers’ compensation by pooling fiscal resources to share in the cost of administering and litigating claims; and
WHEREAS, the City of Pleasant Hill is a Member Agency of MPA; and WHEREAS, to be a member of MPA and participate in any of its programs, each member’s governing body must agree to the Joint Exercise of Powers Agreement (“JPA Agreement”), as this is the required foundational and governing document that outlines MPA’s powers and organizational structure; and
WHEREAS, the last version of the JPA Agreement was adopted by the Board of Directors in 2004 and executed in 2005 by its members and has recently undergone an extensive review and revision process involving the MPA Board of Directors, MPA staff and legal counsel, and each member agency; and
WHEREAS, the recommended amendments include updates and formatting refinements to ensure clarity and consistency; and
WHEREAS, the MPA Board of Directors on January 13, 2026, approved the Municipal Pooling Authority Amended and Restated Joint Exercise of Powers Agreement, a copy of which is included as Attachment A; and
WHEREAS, the PleasantHillCity Council isfamiliar with the contents thereof.

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

1. That the adoption of the Municipal Pooling Authority Amended and Restated Joint Exercise of Powers Agreement for providing property, workers' compensation, public liability, and other insurance coveragesis hereby approved, and the designated primary or alternate MPA Boardmember adopted underResolutionNo. 25-037 is hereby authorized and directed to execute the same on behalf of the City.

Item 10.1
City Council Meeting Agenda - Page 64 of 118 - Monday, February 02, 2026

2. The recitals set forth above are true and correct, and they are incorporated into this Resolution by this reference.

ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting held on the 2nd day of February 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
ZAC SHESS, Mayor
ATTEST:
____________________________
LYONE P. CONNER, City Clerk
Item 10.1
City Council Meeting Agenda - Page 65 of 118 - Monday, February 02, 2026 A p p r o v e d b y t h e B O D o n J a n u a r y 1 3 , 2 0 2 6 , P a g e 1 | 10

MUNICIPAL POOLING AUTHORITY

AMENDED AND RESTATED JOINT EXERCISE OF POWERS AGREEMENT This Amended and Restated Joint Exercise of Powers Agreement (hereafter “Agreement”) is entered into by and among the public entities listed in Appendix A ( hereafter referred to as "Members").

RECITALS

1. The Members are public entities organized and operating under the laws of the State of California;

2. The following State laws, among others, authorize the Members to enter into this Agreement:
a. Labor Code Section 3700, allowing a public entity to fund its own workers' compensation claims;
b. Government Code Sections 989 and 990, permitting a local public entity to insure itself against liability and other losses;
c. Government Code Section 990.4, permitting a public entity to provide insurance and self-insurance in any desired combination.
d. Government Code Section 990.6, providing that the cost of insurance authorized under the related sections is a proper charge against the local public entity. e. Government Code Section 990.8, permitting two or more local public entities to enter into an agreement to jointly fund such expenditures under the authority of Government Code Sections 6500, et seq.; and
f. Government Code Sections 6500, et seq., permitting two or more l o c a l public entities to jointly exercise under an agreement any power which is common to each of them.

3. Each of the Members desires to enter into an agreement with each of the others for the purpose of insuring against various risks jointly, rather than individually.

4. Pursuant to Government Code Section 6508.1, the debts, liabilities, and obligations of MPA shall not constitute debts, liabilities, or obligations of the Members.

5. MPA was originally formed by a Joint Powers Agreement in 1977. Since that time, the Agreement has been amended several times, and Members have withdrawn from, and new Members have been added to MPA.

Item 10.1
City Council Meeting Agenda - Page 66 of 118 - Monday, February 02, 2026 A p p r o v e d b y t h e B O D o n J a n u a r y 1 3 , 2 0 2 6 , P a g e 2 | 10 NOW, THEREFORE, for and in consideration of the mutual benefits, covenants and agreements set forth herein, the Members agree as follows:

SECTION 1
Authority and Purpose
This Agreement is made under the authority of California Government Code Sections 6500, et seq., between the Members. The purpose of this Agreement is to exercise jointly t h e powers common to each Member by managing risks and pooling or purchasing coverage for losses.

SECTION 2
Definitions
Unless the context otherwise requires:

1. "MPA" shall mean the public entity known as the Municipal Pooling Authority created by this Agreement.

2. "Board" shall mean the governing body of MPA.

3. "Chief Administrative Officer" shall mean the person appointed by the Board as the Chief Administrative Officer of MPA.

4. "Claim" shall mean a claim or demand made against a Member arising out of an occurrence that is covered or alleged to be covered by any Memoranda of Coverage issued by MPA or by a purchased policy of insurance.

5. "Member" shall mean any public entity listed in Appendix A to this Agreement.

6. "Memoranda of Coverage" shall mean documents issued by MPA specifying the type, terms, conditions, and limitations of coverage provided by MPA to each Member that participates in the program.

SECTION 3
Creation of MPA
A public entity, separate and apart from the parties hereto and known as the Municipal Pooling Authority, was previously created and is continued pursuant to Article 1, Chapter 5, Division 7, Title 1 of the California Government Code (commencing with Section 6500).

Item 10.1
City Council Meeting Agenda - Page 67 of 118 - Monday, February 02, 2026 A p p r o v e d b y t h e B O D o n J a n u a r y 1 3 , 2 0 2 6 , P a g e 3 | 10 SECTION 4
TermsofAgreement
This Agreement is effective as of January 13, 2026, and continues until terminated as hereafter provided. The prior Joint Exercise of Powers Agreement is terminated upon the effective date hereof.

SECTION 5

1.1.1 GoverningBoard
MPA shall be governed by a Board composed of one individual representative from each Member, each serving in an individual capacity as a member of the Board. Each Member's governing body shall appoint to the Board either its Manager or Director, or the department head or staff person, responsible for its risk management function. Each Board member shall have one vote. Each Member shall appoint one Alternate to the Board. The Alternate shall have the same qualifications as the Board member. The Alternate may vote at any meeting of the Board at which the regular Board member is absent.

SECTION 6
Meetings and Committees
(a) Committees. The Board may establish an Executive Committee comprised of members of the Board and delegate to it any powers or functions not reserved to the entire Board or otherwise nondelegable. Other regular committees may be created by, or in accordance with, the procedures set forth in Bylaws adopted by the Board. Ad hoc committees may, from time to time, be established by the President of the Board to serve as temporary committees for a limited purpose. (b) Meetings. The Board shall hold at least one regular meeting each year. The Board shall fix the date upon which, and the hour and place at which, each regular meeting is to be held, and the Chief Administrative Officer shall notify each Member of that action. Other meetings of the Board and meetings of any duly established committees may be held in accordance with applicable law. All meetings of the Board and regular committees shall be held in a manner consistent with the Bylaws and in compliance with the Ralph M. Brown Act (California Government Sections 54950, et seq.). (c) Bylaws and Regulations. The Board may adopt Bylaws and regulations that are not inconsistent either with applicable law or with this Agreement. In the event the Bylaws or regulations are inconsistent with this Agreement, this Agreement shall control. The Chief Administrative Officer shall send to each Member all such Bylaws and regulations, and any amendments thereto, promptly after adoption by the Board.

SECTION 7
Item 10.1
City Council Meeting Agenda - Page 68 of 118 - Monday, February 02, 2026 A p p r o v e d b y t h e B O D o n J a n u a r y 1 3 , 2 0 2 6 , P a g e 4 | 10

1.1.2 Officers
(a) The Board shall elect a President and Vice-President from among its members to perform the duties set forth in the Bylaws.
(b) The Chief Administrative Officer shall be the Secretary of MPA and shall be responsible for maintaining all records of MPA.
(c) The Board shall elect a Treasurer with the qualifications and to perform the duties set forth in the Bylaws.
(d) The Board may appoint such other officers, employ individuals, and contract with consultants and other professional persons or firms as it considers necessary to carry out the purposes of this Agreement.

SECTION 8
Powers of MPA
MPAshall have the powers and authority to exercise any powers common to its Members and is hereby authorized, in its own name,to do all acts necessary for the exercise of such common powers, including, but not limited to, each of the following:
(1) Make and enter into contracts;
(2) Incur debts, liabilities, and obligations, but no debt, liability, or obligation of MPA is a debt, liability, or obligation of any Member, pursuant to Government Code Section 6508.1; (3) Acquire, hold, or dispose of real and personal property; (4) Receive contributions and donations of property, funds, services, and other forms of assistance from any source;
(5) Sue and be sued in its own name;
(6) Employ agents and employees;
(7) Acquire, construct, manage, and maintain buildings; (8) Lease real or personal property, including that of a Member; Item 10.1
City Council Meeting Agenda - Page 69 of 118 - Monday, February 02, 2026 A p p r o v e d b y t h e B O D o n J a n u a r y 1 3 , 2 0 2 6 , P a g e 5 | 10 (9) Receive, collect, invest, and disburse monies; and
(10) Carry out other duties as required to accomplish other responsibilities as set forth in this Agreement.

These powers shall be exercised in the manner provided by law and as expressly set forth in this Agreement. Pursuant to Section 6509 of the California Government Code, the exercise of such powers shall be subject only to those restrictions upon the manner of exercising the powerswhich are imposed upon Members, such as the City of Pleasant Hill, in the exercise of similar powers.

SECTION 9
Fiscal Year
The "fiscal year" of MPA is the period from the first day of July of each year to and including the 30th day of June of the following year.

SECTION 10
Coverage Provided byMPA
Pursuant to the payment of contributions by each Member, MPA shall provide coverage pursuant to one or more Memoranda of Coverage and/or purchased policies of insurance under the programs selected by the Member.

SECTION 11

1.1.3 Establishment and Administration of Funds
The Board shall establish such funds as it deems necessary to conduct the business of MPA.

SECTION 12

1.1.4 Budget
MPA shall adopt an annual budget nolater than the first day of itsfiscal year.

SECTION 13

1.1.5 Member Contributions
Item 10.1
City Council Meeting Agenda - Page 70 of 118 - Monday, February 02, 2026 A p p r o v e d b y t h e B O D o n J a n u a r y 1 3 , 2 0 2 6 , P a g e 6 | 10 The Chief Administrative Officer shall be responsible for calculating annually the amount of contributions to be charged for coverage selected by Members. The Board shall approve each charge before ittakes effect. Each Member, by the act of paying its contribution, accepts the coverage provided by MPA.

SECTION 14
Accounts and Records
The Chief Administrative Officer shall be responsible for establishing and maintaining the funds and accounts in accordance with acceptable accounting practices and maintaining such other records as the Board requires pursuantto the procedures setforth in the Bylaws. The ChiefAdministrativeOfficer shall have the custody of and be responsible for the disbursement of MPA funds as provided by accounting procedures developed in accordance with this Agreement and the Bylaws.

SECTION 15

1.1.6 Reserves
Separate reserves shall be maintained in the funds for each type of coverage.

SECTION 16

1.1.7 MPA Functions and Responsibilities
MPA shall provide comprehensive risk management services to its Members.

SECTION 17

1.1.8 Member Responsibilities
Each Member has responsibilities, including the following:
(1) Appoint its representative and alternate to the MPA Board in accordance with the applicable practices and procedures.
(2) Cooperate fully with MPA in the investigation, defense, and settlement of Claims, including compliance with any applicable Memoranda of Coverage.
(3) Comply with risk management recommendations, guidelines, and requirements established by MPA;
Item 10.1
City Council Meeting Agenda - Page 71 of 118 - Monday, February 02, 2026 A p p r o v e d b y t h e B O D o n J a n u a r y 1 3 , 2 0 2 6 , P a g e 7 | 10 (4) Pay contributions and assessments approved by the Board when due. (5) Provide MPA with data and other information requested; and (6) Cooperate with and assist MPA and any insurer, adjuster, or legal counsel retained by MPA in matters related to this Agreement, any Bylaws adopted by the Board, and any other governing documents, policies, or procedures adopted by the Board.

SECTION 18
New Members
Upon the vote of two-thirds of all members of the Board, any other public entity in Contra Costa County or in the general geographic area reasonably serviceable from Contra Costa County may become a party to this Agreement upon execution of this Agreement, and shall forthwith pay to MPA its current contribution payment as determined in accordance herewith, as well as any fees and expenses set by the Board.

SECTION 19
Cancellation of Coverage ina Program or Programs
lf a Member fails to comply with this Agreement, any Bylaws adopted by the Board, or any procedures or policies established by the Board, the Board may, by a two-thirds vote of all members of the Board, refuse to provide coverage or may cancel any coverage being provided to that Member in any program(s).

SECTION 20
Termination of Agreement and Disposition of
AssetsUponTerminationofAgreement
This Agreement may be terminated upon the unanimous consent of all parties to it. Upon complete termination of this Agreement by all Members and the settlement of all liabilities and claims, including incurred but not reported claims, all property of MPA shall be divided among the Members in a ratio equal to that of the total amounts paid by the Members for the five (5) fiscal years preceding the year in which the Agreement is terminated.

SECTION 21
Withdrawal of aMember
A Member may withdraw as a Member and party to the Agreement, effective at the end of any fiscal year upon giving MPA six (6) months prior written notice of its intent to withdraw.

SECTION 22
Expulsion
Item 10.1
City Council Meeting Agenda - Page 72 of 118 - Monday, February 02, 2026 A p p r o v e d b y t h e B O D o n J a n u a r y 1 3 , 2 0 2 6 , P a g e 8 | 10 The Board, by a three-fourths vote of all members of the Board, may expel any member for the reasons and under the procedures set forth in the Bylaws.

SECTION 23
Effect ofWithdrawal or Expulsion
The withdrawal or expulsion of any Member shall not terminate its responsibilities and obligations as set forth in MPA’s governing documents.

Upon withdrawal of a Member, that Member is entitled only to its pro rata share of the balance of the amount paid by it for the fiscal year in which withdrawal takes place. That Member shall not participate in or be entitled to any other funds, property, or other assets of MPA. Coverages under all pool coverage programs for the coverage periods in which that Member participated will remain in effect and continue until the conclusion of their respective program years.

SECTION 24
Liability and Indemnification
MPA shall defend and indemnify its Board members, officers, and employees to the same extent as any other public entity of the State of California is obliged to defend and indemnify its public employees pursuant to California Government Code Section 825, et seq., or other applicable provisions of law.

MPA may insure or self-insure itself to the extent deemed necessary by the Board against loss, liability and claims arising out of or connected to the conduct of MPA's activities.

SECTION 25
Assessment
Upon a two-thirds vote of all members of the Board, the Board shall have the authority to levy a cash assessment for any pooled coverage program if the Board finds that there are insufficient funds available to MPA to meetits legal obligations.

Any cost, including attorneys' fees, incurred by MPA in collecting any cash assessment shall be reimbursed by the Member against which such collection action has been taken.

Section 26
Dividends and Premium Rebates
Upon a two-thirds vote of all members of the Board, the Board shall have the authority to declare a dividend, rebate of excess contributions, and/or reduction of future contributions for any pooled coverage program if the Board finds there are excess reserves in the retention fund.

Item 10.1
City Council Meeting Agenda - Page 73 of 118 - Monday, February 02, 2026 A p p r o v e d b y t h e B O D o n J a n u a r y 1 3 , 2 0 2 6 , P a g e 9 | 10 SECTION 27
Severability
lf any portion, term, condition or provision of this Agreement is determined by a court to be illegal or in conflict with a law of the State of California, or is otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions, and provisions is not affected.

SECTION 28
Prohibition Against Assignment
No Member may assign a right, claim, or interest it may have under this Agreement. No creditor, assignee, or third party beneficiary of a Member has a right, claim, or title to any part, share, interest, fund, premium or asset of MPA.

SECTION 29
Amendment
This Agreement may be amended by Resolution of the governing bodies of two- thirds of the thenparticipating Members. Appendix A to this Agreement may be amended to correctly list current Members without separate action by the governing bodies of the Members or the Board, and provided any additional members execute the Agreement.

SECTION 30
Notices
Notices to Members under this Agreement shall be sufficient if delivered to the office of the Member. Notices to MPA shall be sufficient if delivered to the office of the Chief Administrative Officer.

Item 10.1
City Council Meeting Agenda - Page 74 of 118 - Monday, February 02, 2026 A p p r o v e d b y t h e B O D o n J a n u a r y 1 3 , 2 0 2 6 , P a g e 10 | 10 Member Date Joined
Antioch 5/2/1977
Brentwood 5/2/1977
Clayton 5/2/1977
Danville 2/1/1983
Gilroy 7/1/2015
El Cerrito 5/2/1977
Hercules 5/2/1977
Lafayette 5/2/1977
Manteca 1/1/1998
Martinez 5/2/1977
Moraga 5/2/1977
Mountain House 7/1/2024
Oakley 7/1/2002
Orinda 7/1/1986
Pacifica 7/1/2006
Pinole 5/2/1977
Pittsburg 5/2/1977
Pleasant Hill 5/2/1977
San Pablo 5/2/1977
San Ramon 7/1/1986
Walnut Creek 5/2/1977

MUNICIPAL POOLING AUTHORITY JOINT EXERCISE OF POWERS AGREEMENT Appendix A - List of MPA Members
Item 10.1
City Council Meeting Agenda - Page 75 of 118 - Monday, February 02, 2026

MUNICIPAL POOLING AUTHORITY

RECITALS

1. The Members are public entities organized and operating under the laws of the State of California;

2. The following State laws, among others, authorize the Members to enter into this Agreement:
a. Labor Code Section 3700, allowing a public entity to fund its own workers' compensation claims;
b. Government Code Sections 989 and 990, permitting a local public entity to insure itself against liability and other losses;
c. Government Code Section 990.4, permitting a public entity to provide insurance and self-insurance inanydesired combination;
d. Government Code Section 990.6, providing that the cost of insurance authorized under the related sections is a proper charge against the local public entity; e. Government Code Section 990.8, permitting two or more local public entities to enter into an agreement to jointly fund such expenditures under the authority of Government CodeSections 6500, et seq.; and
f. Government Code Sections 6500, et seq., permitting two or more local public entities to jointly exercise under an agreement any power which is common to each of them.

3. Each of the Members desires to enter into an agreement with each of the others for the purpose of insuring against various risks jointly, rather than individually.

4. Pursuant to Government Code Section 6508.1, the debts, liabilities and obligations of MPA shall not constitute debts, liabilities, or obligations of the Members.

5. MPA was originally formed by a Joint Powers Agreement in 1977. Since that time the Agreement has been amended several times and Members have withdrawn from and new Members have been added to MPA.

Item 10.1
City Council Meeting Agenda - Page 76 of 118 - Monday, February 02, 2026 NOW, THEREFORE, for and in consideration of the mutual benefits, covenants and agreements set forth herein, the Members agree as follows:

SECTION 1
Authority and Purpose
This Agreement is made under the authority of California Government Code Sections 6500, et seq. between the Members. The purpose of this Agreement is to exercise jointly powers common to each Member by managing risks and pooling or purchasing coverage for losses.

SECTION 2
Definitions
Unless the context otherwise requires:

1. "MPA" shall mean the public entity known as the Municipal PoolingAuthority created by thisAgreement.

2. "Board" shall mean the governing body of MPA.

3. "Chief Administrative Officer" shall mean the person appointed by the Board as the Chief Administrative Officer of MPA.

5. "Member" shall mean any public entity listed in Appendix Ato this Agreement.

6. "Memoranda of Coverage" shall mean documents issued by MPA specifying the type, terms, conditions, and limitations of coverage provided by MPA to each Member that participates in the program.

SECTION 3
Creation of MPA
Pursuant to Article 1, Chapter 5, Division 7, Title 1 of the California Government Code (commencing with Section 6500), the parties hereto create a A public entity, separate and apart from the parties hereto and , to be known as the Municipal Pooling Authority, was previously created and is continued .pursuant to Article 1, Chapter 5, Division 7, Title 1 of the California Government Code (commencing with Section 6500).

SECTION 4
Terms ofAgreement
This Agreement is effective as of __________________ and continues until terminated as hereafter provided. The prior Joint Exercise of Powers Agreement is terminated upon the effective date hereof.

Item 10.1
City Council Meeting Agenda - Page 77 of 118 - Monday, February 02, 2026 SECTION 5
GoverningBoard
MPA shall be governed by a Board composed of one individual representative from each Member, each serving in an individual capacity as a member of the Board. Each Member's governing body shall appoint to the Board either its Manager or Director, or the department head or staff person, responsible for its risk management function. Each Board member shall have one vote. Each Member shall appoint one Alternate to the Board. The Alternate shall have the same qualifications as the Board member. The Alternate may vote at any meeting of the Board at which the regular Board member is absent.

Other meetings of the Board and meetings of any duly established committees may be held in accordance with applicable law. All meetings of the Board and regular committees shall be held in a manner consistent with the Bylaws and in compliance with the Ralph M. Brown Act (California Government Sections 54950, et seq.). (c) Bvlaws and Regulations. The Board may adopt Bylaws and regulations that are not inconsistent either with applicable law or with this Agreement. In the event the Bylaws or regulations are inconsistent with this Agreement, this Agreement shall control. The Chief Administrative Officer shall send to each Member all such Bylaws and regulations, and any amendments thereto, promptly after adoption by the Board.

SECTION 7
Officers
(a) The Board shall elect a President and Vice-President from among its members to perform the duties set forth in the Bylaws.
(b) The Chief Administrative Officer shall be the Secretary of MPA and shall be responsible for maintaining all records of MPA.
(c) The Board shall elect a Treasurer with the qualifications and to perform the duties set forth in the Bylaws.

Item 10.1
City Council Meeting Agenda - Page 78 of 118 - Monday, February 02, 2026 (d) The Board may appoint such other officers, employ individuals, and contract with consultants and other professional persons or firms as it considers necessary to carry out the purposes of this Agreement.

SECTION 8
Powers of MPA
MPA shall have the powers and authority to exercise any powers common to its Members and is hereby authorized, in its own name, to do all acts necessary for the exercise of those such common powers, referred to in the Recitals including, but not limited to, each of the following:
(1) Make and enter into contracts;
(2) Incur debts, liabilities and obligations but no debt, liability or obligation of MPA is a debt, liability or obligation of any Member, pursuant to Government Code Section 6508.1;
(3) Acquire, hold or dispose of real and personal property; (4) Receive contributions and donations of property, funds, services and other forms of assistance from any source;
(5) Sue and be sued in its own name;
(6) Employ agents and employees;
(7) Acquire, construct, manage and maintain buildings;
(8) Lease real or personal property including that of a Member; (9) Receive, collect, invest, and disburse monies; and
(10) Carry out other duties as required to accomplish other responsibilities as set forth in this Agreement.

These powers shall be exercised in the manner provided by law and as expressly set forth in this Agreement. Pursuant to Section 6509 of the California Government Code, the exercise of such powers shall be , subject only to those restrictions upon the manner of exercising the powers which are imposed upon Members such as the City of Pleasant Hill, in the exercise of similar powers.

SECTION 9
Fiscal Year
The "fiscal year" of MPA is the period from the first day of July of each year to and including the 30th day of June of the following year.

Item 10.1
City Council Meeting Agenda - Page 79 of 118 - Monday, February 02, 2026 SECTION 10
Coverage Provided by MPA
Pursuant to the payment of contributions by each Member, MPA shall provide coverage pursuant to one or more Memoranda of Coverage and/or purchased policies of insurance under the programs selected by the Member.

SECTION 11
Establishment and Administration of Funds
The Board shall establish such funds as it deems necessary to conduct the business of MPA.

SECTION 12
Budget
MPA shall adopt an annual budget no later than the first day of its fiscal year.

SECTION 13
Member Contributions
The Chief Administrative Officer shall be responsible for calculating annually the amount of contributions to be charged for coverage selected by Members. The Board shall approve each charge before it takes effect. Each Member by the act of paying its contribution accepts the coverage provided by MPA.

The Chief Aministrative Officer shall have the custody of and be responsible for the disbursement of MPA funds as provided by accounting procedures developed in accordance with this Agreement and the Bylaws.

SECTION 15
Reserves
Separate reserves shall be maintained in the funds for each type of coverage.

SECTION 16
MPA Functions and Responsibilities
MPA shall provide comprehensive risk management services to its Members.

Formatted: Normal, Tab stops: Not at 0"
Item 10.1
City Council Meeting Agenda - Page 80 of 118 - Monday, February 02, 2026 SECTION 17
Member Responsibilities
Each Member has responsibilities, including the following:
(1) Appoint its representative and alternate to the MPA Board in accordance with the procedures set forth in the Bylawsapplicable practices and procedures; (2) Cooperate fully with MPA in the investigation, defense, and settlement of Claims, including compliance with any applicable Memoranda of Coverage; (3) Comply with risk management recommendations, guidelines, and requirements established by MPA;
(4) Pay contributions and assessments approved by the Board when due; (5) Provide MPA with statistical and loss experience, data and other information requested; and
(6) Cooperate with and assist MPA and any insurer, adjuster, or legal counsel retained by MPA in matters related to this Agreement, any Bylaws adopted by the Board, and any other governing documents, policies, or procedures adopted by the Board.

SECTION 19
Cancellation of Coverage i n a Program or Programs
lf a Member fails to comply with this Agreement, any Bylaws adopted by the Board, or any procedures or policies established by the Board, the Board may, by a two-thirds vote of all members of the Board, refuse to provide coverage or may cancel any coverage being provided to that Member in any program(s).

SECTION 20
Termination of Agreement and Disposition of
Assets UponTermination of Agreement
This Agreement may be terminated upon the unanimous consent of all parties to it. Upon complete termination of this Agreement by all Members and the settlement of all liabilities and claims, including incurred but not reported claims, all property of MPA shall be divided among the Members in a ratio equal to that of the total amounts paid by the Members for the five (5) fiscal years preceding the year in which the Agreement is terminated.

Item 10.1
City Council Meeting Agenda - Page 81 of 118 - Monday, February 02, 2026 SECTION 21
Withdrawal of a Member
A Member may withdraw as a Member and party to the Agreement, effective at the end of any fiscal year upon giving MPA six (6) months prior written notice of its intent to withdraw.

SECTION 22
Expulsion
The Board, by a three-fourths vote of all members of the Board, may expel any member for the reasons and under the procedures set forth inthe Bylaws.

SECTION 23
Effect of Withdrawal or Expulsion
The withdrawal or expulsion of any Member shall not terminate its responsibilities and obligations as set forth in MPA’s governing documents.

MPA may insure or self-insure itself to the extent deemed necessary by the Board against loss, liability and claims arising out of or connected to the conduct of MPA's activities.

Any cost, including attorneys' fees, incurred by MPA in collecting any cash assessment shall be reimbursed by the Member against which such collection action has been taken.

Item 10.1
City Council Meeting Agenda - Page 82 of 118 - Monday, February 02, 2026 Section 26
Dividends and Premium Rebates
Upon a two-thirds vote of all members of the Board, the Board shall have the authority to declare a dividend, rebate of excess contributions, and/or reduction of future contributions for any pooled coverage program if the Board finds there are excess reserves in the retention fund.

SECTION 27
Severability
lf any portion, term, condition or provision of this Agreement is determined by a court to be illegal or in conflict with a law of the State of California, or is otherwise rendered unenforceable or ineffectual, the validity of the remaining portions, terms, conditions, and provisions is not affected.

SECTION 29
Amendment
This Agreement may be amended by Resolution of the governing bodies of two thirds of the then-participating Members. Appendix A to this Agreement may be amended to correctly list current Members without separate action by the governing bodies of the Members or the Board, and provided any additional members execute the Agreement.

Item 10.1
City Council Meeting Agenda - Page 83 of 118 - Monday, February 02, 2026 IN WITNESS WHEREOF, the parties hereto have executed this Joint Exercise of Powers Agreement as of the day and year first above written.

City of Antioch City of Mountain House
City of Brentwood City of Oakley
City of Clayton City of Orinda
Town of Danville City of Pacifica
City of El Cerrito City of Pinole
City of Gilroy City of Pittsburg
City of Hercules City of Pleasant Hill
City of Lafayette City of San Pablo
City of Manteca City of San Ramon
City of Martinez City of Walnut Creek
Town of Moraga
Item 10.1
City Council Meeting Agenda - Page 84 of 118 - Monday, February 02, 2026

CITY COUNCIL STAFF REPORT
Meeting Date: February 2, 2026
TO: THE HONORABLE MAYOR AND CITY COUNCILMEMBERS
TITLE: ADOPT RESOLUTION NO. -26 DIRECTING THE PREPARATION AND FILING OF THE 2026/2027 ANNUAL REPORT FOR
ASSESSMENT DISTRICT NO. 20 (COMMERCIAL AREA
LANDSCAPE AND LIGHTING) AND ADOPT RESOLUTION NO. - 26

REQUESTING CONSENT FROM THE CITY OF CONCORD FOR

ORDERING OF IMPROVEMENTS AND ASSESSMENTS OF COSTS
FOR BENEFITED PROPERTY IN ASSESSMENT DISTRICT NO. 20

SYNOPSIS
An assessment district is a financial mechanism that is levied on a specific geographic area or parcels of real estate which have been identified as receiving a direct and unique “benefit” from a public improvement. Assessment District No. 20 (AD 20) enables the City to provide landscape maintenance and street lighting at an enhanced level along certain commercial streets. These landscape and lighting improvements are considered to be of direct benefit to the properties within AD 20 boundaries. The funding for the maintenance and services is provided through annual assessments paid by benefiting property owners within AD 20. A total of 17 properties within AD 20’s boundaries are located in the city of Concord. The City annually requests consent from the city of Concord to levy assessments on these benefiting properties.

In order for the City to continue to levy and collect assessments within AD 20 for the 2026/2027 fiscal year, an Annual Report is required. The Annual Report must include a description of the improvements to be made during the fiscal year; an estimate of costs to maintain the improvements; an allocation of costs to each parcel; confirmation of each benefiting parcel and levy of assessments; current expenditures; and proposed budget for services.

DISCUSSION
Background
AD 20 was formed in 1988 pursuant to the provisions of the Landscape and Lighting Act of 1972 and the California Streets and Highways Code. AD 20 was amended in 1999 by creating Item 10.2
City Council Meeting Agenda - Page 85 of 118 - Monday, February 02, 2026 a new zone (Zone 6) that includes the Downtown area (see attached map). The District enables the City to collect assessments from property owners in order to provide landscape maintenance and street lighting at an enhanced level and quality along certain commercial streets. These services are considered to be of direct benefit to the properties within AD 20’s boundaries. The costs to provide these services have been paid annually by these benefiting property owners.

There are 17 properties within AD 20’s boundaries that are located in the city of Concord.

Eight of these properties are located east of Contra Costa Boulevard and south of Sun Valley Boulevard. The Sun Valley Mall Shopping Center contains six properties. The remaining three properties are east of Contra Costa Boulevard and south of Concord Avenue at the on-ramp to Interstate 680. The city of Concord has granted the city of Pleasant Hill authority to levy assessments on these properties since AD 20 was established. This authority must be requested and granted annually. A resolution requesting consent from the city of Concord for the 2026/2027 fiscal year is attached.

Analysis
The collecting of assessments from properties within the boundaries of AD 20 will ensure continued maintenance of lighting and landscape improvements. The maintenance activities include weekly mowing and edging of turf; maintenance and repair of irrigation systems; pruning; debris removal; graffiti removal; street light repair, and maintenance and weeding, as well as utility charges for water and electricity. In order for the City to continue to levy and collect assessments within AD 20 for the 2026/2027 fiscal year, the District Engineer has to prepare an Annual Report. The Annual Report must include descriptions of the improvements to be made during the fiscal year, an estimate of costs, and the levy of assessments upon the benefiting properties.

SCI Consulting Group is the Engineer of Work and will prepare the Annual Report and submit the assessments to the County Auditor for placement on the 2026/2027 Property Tax Roll. A not-to-exceed fee of $9,200 will provide for these and other requested services.

Once the Annual Report is complete, the City Council will review and approve it (if appropriate); be asked to approve a resolution announcing the intent to levy assessments for the current year and issue a notice of intent to levy and collect assessments within the District; and hold a public hearing on the levy of the assessments.

FISCAL IMPACT
Item 10.2
City Council Meeting Agenda - Page 86 of 118 - Monday, February 02, 2026 The cost of preparing all necessary reports required for the levy and collecting of assessments will be borne by the property owners within AD 20. The not-to-exceed amount for the engineering services specified in the Scope of Services and Compensation attachment is $9,200, which will be paid by the Assessment District.

RECOMMENDED CITY COUNCIL ACTION
Adopt resolutions.

ALTERNATIVES TO RECOMMENDED ACTION
Should Assessment District 20 not be renewed for the 2026/2027 fiscal year, there would be a loss of approximately $471,500 in assessment revenues to fund maintenance activities within AD 20. The City would then need to fund these maintenance activities or maintenance would be suspended.

ATTACHMENT(S)
AD 20 Proposed Resolution
AD 20 Proposed Resolution of Intention
AD 20 Boundary Map
AD 20 SCI Consulting Group Agreement and Scope of Services and Compensation Prepared by: Ann James, Public Works Director
Reviewed by: Erick Cheung, Chief Financial Officer
Approved by: Ethan Bindernagel, City Manager
Item 10.2
City Council Meeting Agenda - Page 87 of 118 - Monday, February 02, 2026 RESOLUTION NO. -26

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANT HILL DIRECTING THE PREPARATION AND FILING OF 2026/2027 ANNUAL REPORT FOR ASSESSMENT DISTRICT NO. 20 (COMMERCIAL AREA LANDSCAPE AND LIGHTING) 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 (the "District"), 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, the District was amended in 1999 by creating a new zone (Zone 6) that includes the Downtown area; and
WHEREAS, Section 22620 et seq., of the Act provides for the levy of annual assessments after the formation of the District; and
WHEREAS, within the District, the existing and proposed improvements and any substantial changes proposed to be made to existing improvements are generally described as the installation, servicing, and maintenance of public landscape and street lighting; and NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Pleasant Hill that, SCI Consulting Group is hereby designated as Engineer of Work for purposes of the District and is hereby ordered to prepare and file a 2026/2027 Annual Report in accordance with Section 22565 et seq. of the Act.

ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting held on the 2nd day of February 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
ZAC SHESS, Mayor
ATTEST:
___________________________
LYONE P. CONNER, City Clerk
Item 10.2
City Council Meeting Agenda - Page 88 of 118 - Monday, February 02, 2026 RESOLUTION NO. __-26

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

REQUESTING CONSENT FROM THE CITY OF CONCORD FOR ORDERING OF

IMPROVEMENTS AND ASSESSMENTS OF COSTS FOR BENEFITED PROPERTY IN ASSESSMENT DISTRICT NO. 20 (COMMERCIAL AREA LANDSCAPE AND LIGHTING) WHEREAS, the City Council has conducted proceedings for Assessment District No. 20 (the "District") and by Resolution No. 75-88 adopted August 1, 1988, ordered improvements generally described as installation, servicing and maintenance of public landscape and street lighting within the territory shown on the boundary map of the District, and levied assessments for improvements beginning with the fiscal year 1988/1989 and in each fiscal year thereafter, all pursuant to the Landscape and Lighting Act of 1972, Section 22500, and following, of the California Streets and Highways Code (the "Act"); and
WHEREAS, by its Resolution No. -26, the Council has directed the filing of an Annual Report for the District for the fiscal year 2026/2027. A map of the boundaries of the District is on file in the office of the City Clerk and reference is hereby made to such map for further particulars; and
WHEREAS, the proposed assessments will be imposed exclusively to finance the installation, servicing and maintenance of public landscape and street lighting; and WHEREAS, the improvements to be made are of such a character that they will directly and particularly affect property not only within the boundaries of the City of Pleasant Hill, but also incorporated territory within the City of Concord described on Exhibit A, attached hereto, and the purposes sought to be accomplished can best be accomplished by a single comprehensive scheme of work.

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

1. The public interest, convenience, and necessity will be served by the making of improvements and the levying of assessments.

2. Request is hereby made of the City Council of the City of Concord, being the legislative body having jurisdiction over incorporated territory in which a portion of the improvements are to be made and the assessments are to be levied, via Exhibit A, attached hereto, to grant to this Council its consent, expressed by resolution, to the ordering of the improvements, and to the assessment of the costs thereof upon the property benefited, and the assumption of jurisdiction for the said purposes, and to the making of such changes and modifications as may be proper or advisable in the manner provided by law.

3. The City Clerk is directed to file with the City Clerk of the City of Concord a certified copy of this resolution, together with a copy of the form of Resolution of Intention (Form) and a copy of the boundary map.
[Signatures on the Following Page]
Item 10.2
City Council Meeting Agenda - Page 89 of 118 - Monday, February 02, 2026 ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting held on the 2nd day of February, 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
____________________________________
ZAC SHESS, Mayor
ATTEST:
___________________________________
LYONE P. CONNER, City Clerk
Item 10.2
City Council Meeting Agenda - Page 90 of 118 - Monday, February 02, 2026 EXHIBIT “A”
TO RESOLUTION -26

CITY OF PLEASANT HILL COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA ASSESSMENT DISTRICT NO. 20
(COMMERCIAL AREA LANDSCAPE AND LIGHTING)
2026/2027 FISCAL YEAR

TERRITORY WITHIN THE CITY OF CONCORD

PARCEL SITUS
127-032-035-9 1130 CONTRA COSTA BLVD
127-032-038-3 1212 CONTRA COSTA BLVD
127-032-039-1 1200 CONTRA COSTA BLVD
127-032-042-5 1000 SUN VALLEY BLVD
127-032-043-3 1050 CONTRA COSTA BLVD
127-032-044-1 1090 CONTRA COSTA BLVD
127-032-045-8 1100 CONTRA COSTA BLVD
127-032-046-6 1150 CONTRA COSTA BLVD
153-230-007-4 715 CONTRA COSTA BLVD
153-230-021-5 410 SUN VALLEY MALL
153-230-022-3 1053 SUN VALLEY BLVD
153-230-023-1 901 SUNVALLEY BLVD
153-230-024-9 CONTRA COSTA BLVD
153-230-025-6 1001 SUN VALLEY BLVD
153-250-003-8 625 CONTRA COSTA BLVD
153-250-008-7 627 CONTRA COSTA BLVD
153-250-009-5 605 CONTRA COSTA BLVD
Item 10.2
City Council Meeting Agenda - Page 91 of 118 - Monday, February 02, 2026

LEGEND - - - ----

CITY BOUNDARY
A. D. and ZONE BOUNDARY CD ZONE DESIGNAllON

ASSESSMENT NUMBERS ARE THE ASSESSOR'S PARCEL NUMBERS

AS DESIGNATED ON THE CURRENT OWNERSHIP ROLL
AUGUST 2002
MAP OF

BOUNDARIES AND ZONES

CITY OF PLEASANT HILL
ASSESSMENT DISTRICT NO. 20
(COMMERCIAL LANDSCAPING AND UGKTlNQ)
2020-2021 Fiscal Year
SCALE: N.T.S.

FIGURE 1
Item 10.2
City Council Meeting Agenda - Page 92 of 118 - Monday, February 02, 2026 1 AGREEMENT FOR PROFESSIONAL SERVICES
This Agreement is made and entered into as of the day of 2026, by and between the City of Pleasant Hill ("City") and SCI Consulting Group, ("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, 2026.

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 $9,200.00 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 Item 10.2
City Council Meeting Agenda - Page 93 of 118 - Monday, February 02, 2026 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.) Item 10.2
City Council Meeting Agenda - Page 94 of 118 - Monday, February 02, 2026 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.

Item 10.2
City Council Meeting Agenda - Page 95 of 118 - Monday, February 02, 2026 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.

Item 10.2
City Council Meeting Agenda - Page 96 of 118 - Monday, February 02, 2026 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
Item 10.2
City Council Meeting Agenda - Page 97 of 118 - Monday, February 02, 2026 6 If to Consultant: SCI Consulting Group
C/O John Bliss, P.E.
4745 Mangels Blvd
Fairfield, CA 94534

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, Item 10.2
City Council Meeting Agenda - Page 98 of 118 - Monday, February 02, 2026 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: President
Business License #GENL-047336
APPROVED AS TO FORM: ATTEST:
__________________________ __________________________
Janet E. Coleson, City Attorney Lyone Conner, City Clerk Attachments: Exhibit A – Scope of Services and Compensation Item 10.2
City Council Meeting Agenda - Page 99 of 118 - Monday, February 02, 2026 Wednesday, January 29, 2025
City of Pleasant Hill
Attn: Ann James, Public Works Director
100 Gregory Lane
Pleasant Hill, CA 94523-3323
Re: Revised Fee Proposal for Assessment Engineering and District Administration Services Dear Ms. James:

In response to the City’s RFP, our fee proposal for Assessment Engineering, District Administration Services, and related professional services is provided herein. Our professional fees are based on our understanding of the City’s needs and the level of effort we expect to be necessary to complete the Service Plan successfully.

Please let me know if you have any questions or require additional information regarding this fee proposal.

Sincerely,
John W. Bliss, P.E., President
SCI Consulting Group
cc: Melanie Lee, SCI Consulting Group

EXHIBIT A
Item 10.2
City Council Meeting Agenda - Page 100 of 118 - Monday, February 02, 2026 City of Pleasant Hill
January 29, 2025

Page 2 ends

FEE SCHEDULE / MANNER OF PAYMENT
In consideration of the services provided, as outlined in the Service Plan, the fee structure for each of the two assessment districts is detailed below.

ASSESSMENT DISTRICT NO. 20 FY 25-26 FY 26-27 FY 27-28
Task 1: Prop. 218-Compliance, Parcel and Levy Audit $4,975 NA NA Task 2: Assessment Engineering and Levy Administration $8,465 $8,700 $8,950 Incidental Costs NTE 1 $500 $500 $500
Total 2,3 $13,940 $9,200 $9,450
ASSESSMENT DISTRICT NO. 22 FY 25-26 FY 26-27 FY 27-28
Task 1: Prop. 218-Compliance, Parcel and Levy Audit $4,975 NA NA Task 2: Assessment Engineering and Levy Administration $8,465 $8,700 $8,950 Incidental Costs NTE 1 $500 $500 $500
Total 2,3 $13,940 $9,200 $9,450
1 Customary incidental expense, such as travel, lodging, printing, postage, data, or other out-ofpocket costs, will be billed at actual cost plus 10%, not exceeding $1,000 for both assessments, without prior authorization from the City. Mileage expenses will be billed at the IRS-approved rate. 2 For each fiscal year, 50% of the annual fixed fee for Task 1 shall be due upon the filing of the levies with the County Tax Collector in August, with the remaining 50% due on January 15. Task 2 fees shall be due upon completion of the task.
3 The Service Plan anticipates that the Assessment Engineer will perform 40% of Task 1 and 20% of Task 2, with the remaining work carried out by a Senior Consultant and administrative staff. The Service Plan includes one (1) in-person meeting for Task 1 and up to one (1) in-person meeting for Task 2 each fiscal year. All other meetings and presentations will be conducted virtually. However, at the discretion of the City, compensation for additional in-person meetings shall be billed at $1,050 per consultant per in-person meeting.

Out‐of‐scope services shall be billed at prevailing hourly billing rates. These rates shall be subject to annual increases based on the change in the San Francisco Bay Area Consumer Price Index (“CPI”), as published by the U.S. Bureau of Labor Statistics.

SCI 2025 Hourly Billing Rates
President $306
Vice President $287
Senior Assessment Engineer $284
Director $234
Senior consultant $217
Consultant $184
Project Analyst $139
Software Developer $273
GIS Staff $150
Item 10.2
City Council Meeting Agenda - Page 101 of 118 - Monday, February 02, 2026 City of Pleasant Hill
January 29, 2025

Page 3 ends

Research Assistant $95
Support staff $78
Fees for Proposition 218 Ballot Proceeding. SCI has extensive experience conducting Proposition 218 ballot proceedings, a service we have provided since 1996. Fees for such proceedings depend on factors including the size of the assessment district, the number of notices and ballots to be mailed, the level of non-advocacy community outreach support, and any required feasibility analysis / survey or initial outreach to affected property owners. Additionally, a new Engineer’s Report would be required. SCI can provide a fee estimate for such a project with more information tailored to a specific work plan and approach.

Item 10.2
City Council Meeting Agenda - Page 102 of 118 - Monday, February 02, 2026

SYNOPSIS
An assessment district is a financial mechanism that is levied on a specific geographic area or parcels of real estate, which have been identified as receiving a direct and unique "benefit" from a public improvement. Assessment District No. 22 (AD 22) enables the City to provide landscape maintenance and street lighting at an enhanced level within the scenic easements in the Grayson Woods and Gallery Walk Subdivisions. These landscape and lighting improvements are considered to be of direct benefit to the properties within AD 22’s boundaries. The funding for the maintenance and services is provided through annual assessments paid by these benefiting property owners within AD 22.

In order for the City to continue to levy and collect assessments within AD 22 for the 2026/2027 fiscal year, an Annual Report is required. The Annual Report will include a description of the improvements to be made during the fiscal year; an estimate of costs to maintain the improvements; an allocation of costs to each parcel; confirmation of each benefiting parcel and levy of assessments; current expenditures; and proposed budget for services.

DISCUSSION
Background
AD 22 (Grayson Woods) was formed in 1997 pursuant to the provisions of the Landscape and Lighting Act of 1972 and the California Streets and Highways Code. AD 22 was amended in 2002 to include Subdivision 8304, Gallery Walk. AD 22 enables the City to collect assessments from property owners in order to provide landscape maintenance and street lighting at an enhanced level and quality within the Grayson Woods and Gallery Walk Subdivisions (see maps). These services are considered to be of direct benefit to the properties within the AD 22 boundaries. The costs for providing these services have been paid annually by these benefiting property owners.

Item 10.3
City Council Meeting Agenda - Page 103 of 118 - Monday, February 02, 2026 Analysis
The collecting of assessments from properties within the boundaries of AD 22 will ensure continued maintenance of lighting and landscape improvements. Since July 2007, City staff has provided maintenance services for Grayson Woods (previously contracted out to a private landscape company), and City staff continues to provide maintenance services for Gallery Walk through the collection of assessments. The maintenance activities include weekly mowing and edging of turf; maintenance and repair of irrigation systems; pruning; debris removal; graffiti removal; street light repair; maintenance and weeding, as well as utility charges for water and electricity.

In order for the City to continue to levy and collect assessments within AD 22 for the 2026/2027 fiscal year, the District Engineer must prepare an Annual Report. The Annual Report will include descriptions of the improvements to be made during the fiscal year, an estimate of costs, and the levy of assessments upon the benefiting properties.

SCI Consulting Group, as the designated Engineer of Work, would prepare the Annual Report and submit the assessments to the County Auditor for placement on the 2026/2027 Property Tax Roll. A not-to-exceed fee of $9,200 will provide for these services.

Once the Annual Report is complete, the City Council will review and approve it (if appropriate), be asked to approve a resolution announcing the intent to levy assessments for the current year, issue a notice of intent to levy and collect assessments within the District, and hold a public hearing on the levy of the assessments.

FISCAL IMPACT
The cost of preparing all necessary reports required for the levy and collecting of assessments will be borne by the property owners within the AD 22 boundaries. The not-to-exceed amount for the engineering services specified in the Scope of Services and Compensation attachment is $9,200, which will be paid by the Assessment District.

RECOMMENDED CITY COUNCIL ACTION
Adopt the proposed resolution
Item 10.3
City Council Meeting Agenda - Page 104 of 118 - Monday, February 02, 2026

ALTERNATIVES TO RECOMMENDED ACTION
Should AD 22 not be renewed for the 2026/2027 fiscal year, there would be a loss of approximately $63,000 in collected assessments to fund revenue maintenance activities within AD 22. The City would then need to fund these maintenance activities or maintenance would be suspended.

ATTACHMENT(S)
Proposed Resolution
AD 22 Boundary Maps
SCI Consulting Group Agreement and Scope of Services and Compensation Prepared by: Ann James, Public Works Director
Reviewed by: Erick Cheung, Chief Financial Officer
Approved by: Ethan Bindernagel, City Manager
Item 10.3
City Council Meeting Agenda - Page 105 of 118 - Monday, February 02, 2026 RESOLUTION NO. -26

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

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANT HILL DIRECTING THE PREPARATION AND FILING OF 2026/2027 ANNUAL REPORT FOR ASSESSMENT DISTRICT NO. 22 (GRAYSON WOODS AND GALLERY WALK)
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 (the "District"), 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, the District 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 the District; and
WHEREAS, within the District, the existing and proposed improvements and any substantial changes proposed to be made to existing improvements are generally described as the installation, servicing, and maintenance of public landscape and street lighting; and NOW THEREFORE, BE IT RESOLVED, by the City Council of the City of Pleasant Hill that SCI Consulting Group is designated as Engineer of Work for purposes of the District and is hereby ordered to prepare and file a 2026/2027 Annual Report in accordance with Section 22565 et seq. of the Act.

ADOPTED by the City Council of the City of Pleasant Hill at a regular meeting held on the 2nd day of February 2026, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
___________________________________
ZAC SHESS, Mayor
ATTEST:
___________________________
LYONE P. CONNER, City Clerk
Item 10.3
City Council Meeting Agenda - Page 106 of 118 - Monday, February 02, 2026 LEGEND
ED

ASSESSMENT DISTRICT BOUNDARY

INDICATES AREA TO BE MAINTAINED
NOVEMBER. 1997

ASSESSMENT DIAGRAM

CITY OF PLEASANT HILL
ASSESSMENT DISTRICT NO. 22
(GRAYSON WOODS)
City of Pleasant Hill, Contra Costa County, California
2020-21 FISCAL YEAR
•
" " " . . . .
....

ASSESSMENT NUMBERS ARE THE ASSESSOR'S PARCEL NUMBERS
AS DESIGNATED ON THE CURRENT OWNERSHIP ROLL.

THE AMOUNT OF EACH ASSESSMENT IS DESIGNATED IN THE
ENGINEER'S REPORT.

SHEET 1 OF 1
Item 10.3
City Council Meeting Agenda - Page 107 of 118 - Monday, February 02, 2026 ~
~
i
1§

CLEAVELAND
2325

CONTRA COSTA
§~I I I q~ I EXISTING~ &J ROAD ~ 2324.
~ EXts'rlNG
~
..,
BLVD

ASSESSMENT DIAGRAM

CITY OF PLEASANT HILL
ASSESSMENT DISTRICT NO. 22
SUBDMSION 8304, GALLERY WALK
x:x
B
"
City of Pleasant Hiii
Contra Costa County, Callfornla
201&-20 FISCAL YEAR
Prapcirad by:

I.CC Engln..tr>g a: Surla'jlng, Inc.
wart1nez, canromra JANUARY 2002
LEGEND

PROPOSED ANNEXATION BOUNDARY

INDICATES AREA TO BE MAINTAINED

STREET LIGHTING AND STREET TREE TRIMMING

ONLY BETWEEN BACK OF SIDEWALK AND

PROPERTY LINE ALONG WEST HOOKSTON RD,
CLEAVELAND RD AND ASTRID DR.

STREET LIGHT

PARCEL NUMBER FROM ASSESSOR'S PARCEL
BOOK 149, PAGE 12, BLOCK 1
SUBDIVISION 8304 LOT NUMBER
ASSESSMENT NUt.lBERS ARE THE ASSESSOR'S PARCEL NUMBERS

AS DESIGNATED ON THE CURRENT OWNERSHIP ROLL
THE AMOUNT OF EACH ASSESSMENT IS DESIGNATED IN THE ENGINEER'S REPORT.

SHEET 1 OF 1
Item 10.3
City Council Meeting Agenda - Page 108 of 118 - Monday, February 02, 2026 1 AGREEMENT FOR PROFESSIONAL SERVICES
This Agreement is made and entered into as of the day of 2026, by and between the City of Pleasant Hill ("City") and SCI Consulting Group, ("Consultant").

AGREEMENT

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

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 $9,200 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.

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 Item 10.3
City Council Meeting Agenda - Page 109 of 118 - Monday, February 02, 2026 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.

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.) Item 10.3
City Council Meeting Agenda - Page 110 of 118 - Monday, February 02, 2026 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.

Item 10.3
City Council Meeting Agenda - Page 111 of 118 - Monday, February 02, 2026 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.

Item 10.3
City Council Meeting Agenda - Page 112 of 118 - Monday, February 02, 2026 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.

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.

If to City: City of Pleasant Hill
C/O Ann James
100 Gregory Lane
Pleasant Hill, CA 94523-3323
Item 10.3
City Council Meeting Agenda - Page 113 of 118 - Monday, February 02, 2026 6 If to Consultant: SCI Consulting Group
C/O John Bliss, P.E.
4745 Mangels Blvd
Fairfield, CA 94534

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

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, Item 10.3
City Council Meeting Agenda - Page 114 of 118 - Monday, February 02, 2026 7 discovery expenses, and attorneys' fees.

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: President
Business License # GENL-047336__
APPROVED AS TO FORM: ATTEST:
__________________________ __________________________
Janet E. Coleson, City Attorney Lyone Conner, City Clerk Attachments: Exhibit A – Scope of Services and Compensation Item 10.3
City Council Meeting Agenda - Page 115 of 118 - Monday, February 02, 2026 Wednesday, January 29, 2025
City of Pleasant Hill
Attn: Ann James, Public Works Director
100 Gregory Lane
Pleasant Hill, CA 94523-3323
Re: Revised Fee Proposal for Assessment Engineering and District Administration Services Dear Ms. James:

Please let me know if you have any questions or require additional information regarding this fee proposal.

Sincerely,
John W. Bliss, P.E., President
SCI Consulting Group
cc: Melanie Lee, SCI Consulting Group

EXHIBIT A
Item 10.3
City Council Meeting Agenda - Page 116 of 118 - Monday, February 02, 2026 City of Pleasant Hill
January 29, 2025

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FEE SCHEDULE / MANNER OF PAYMENT
In consideration of the services provided, as outlined in the Service Plan, the fee structure for each of the two assessment districts is detailed below.

SCI 2025 Hourly Billing Rates
President $306
Vice President $287
Senior Assessment Engineer $284
Director $234
Senior consultant $217
Consultant $184
Project Analyst $139
Software Developer $273
GIS Staff $150
Item 10.3
City Council Meeting Agenda - Page 117 of 118 - Monday, February 02, 2026 City of Pleasant Hill
January 29, 2025

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Item 10.3
City Council Meeting Agenda - Page 118 of 118 - Monday, February 02, 2026

Pleasant Hill City CouncilFebruary 2, 2026

Pleasant Hill City Council
February 2, 2026