Agenda packet — Pleasanton City Council, November 19, 2024 (part 2 of 5)

7 Performance Expectations
Over the long-term, five years or longer, the performance objective for the Trust will be to achieve an average total annual rate of return that is equal to or greater than the Trust’s actuarial discount rate.

Additionally, it is expected that the annual rate of return on Trust assets will be commensurate with the then prevailing investment environment. Measurement of this return expectation will be judged by reviewing returns in the context of industry standard benchmarks, peer universe comparisons for individual Trust investments and blended benchmark comparisons for the Trust in its entirety.

Selection of Investment Managers
The Advisor shall prudently select appropriate Managers to invest the assets of the Trust. Managers must meet the following criteria:
The Manager must provide historical quarterly performance data compliant with Global Investment Performance Standards (GIPS ®), Securities & Exchange Commission (“SEC”), Financial Industry Regulatory Agency (“FINRA”) or industry recognized standards, as appropriate. The Manager must provide detailed information on the history of the firm, key personnel, support personnel, key clients, and fee schedule (including most-favored-nation clauses). This information can be a copy of a recent Request for Proposal (“RFP”) completed by the Manager or regulatory disclosure.
The Manager must clearly articulate the investment strategy that will be followed and document that the strategy has been successfully adhered to over time. The investment professionals making the investment decisions must have a minimum of three (3) years of experience managing similar strategies either at their current firm or at previous firms. Where other than common funds such as mutual funds or commingled trusts are utilized, the Manager must confirm receipt, understanding and adherence to this Policy Statement and any investment specific policies by signing a consent form provided to the Manager prior to investment of Trust assets.

Guidelines for Portfolio Holdings
Direct Investments by Advisor
Every effort shall be made, to the extent practical, prudent and appropriate, to select investments that have investment objectives and policies that are consistent with this Policy Statement (as outlined in the following sub-sections of the “Guidelines for Portfolio Holdings”). However, given the nature of the investments, it is recognized that there may be deviations between this Policy Statement and the objectives of these investments.

Limitations on Portfolio Holdings

EQUITIES

Page 130 of 658 ends

8 No more than the greater of 5% or weighting in the relevant index (Russell 3000 Index for U.S. issues and MSCI ACWI ex-U.S. for non-U.S. issues) of the total equity portfolio valued at market may be invested in the common equity of any one corporation; ownership of the shares of one company shall not exceed 5% of those outstanding; and not more than 40% of equity valued at market may be held in any one sector, as defined by the Global Industry Classification Standard (GICS).

Domestic Equities. Other than the above constraints, there are no quantitative guidelines as to issues, industry or individual security diversification. However, prudent diversification standards should be developed and maintained by the Manager.

International Equities. The overall non-U.S. equity allocation should include a diverse global mix that is comprised of the equity of companies from multiple countries, regions and sectors.

FIXED INCOME
Fixed income securities of any one issuer shall not exceed 5% of the total bond portfolio at time of purchase. The 5% limitation does not apply to issues of the U.S. Treasury or other Federal Agencies.

The overall rating of the fixed income assets as calculated by the Advisor shall be investment grade, based on the rating of one Nationally Recognized Statistical Rating Organization (“NRSRO”).

Eligible Investments
•Debt obligations of the U.S. Government, its agencies, and Government Sponsored Enterprises •Mortgage-Backed Securities (MBS)
•Asset Backed Securities (ABS)
•Collateralized Mortgage Obligations (CMO)
•Commercial Mortgage-Backed Securities (CMBS)
•Corporate debt securities issued by U.S. or foreign entities including, but not limited to, limited partnerships, equipment trust certificates and enhanced equipment trust certificates •Municipal Bonds
•Fixed income mutual funds.
•Eligible instruments issued pursuant to SEC Rule 144a (only if the Client is a documented Qualified Institutional Buyer ; QIB)
Quality
The individual securities portfolio will maintain a minimum weighted average effective quality of A- at all times. At the time of purchase, individual securities shall have a minimum effective quality rating of BBB-.

For purposes of determining an effective rating, when three agencies rate a security (S&P, Moodys, Fitch) the middle rating will be used. When only two of the three agencies rate a security the lower of the two ratings will be used. When only one agency rates a security that rating will be used.

Page 131 of 658 ends

9 Duration
The manager will maintain the portfolio duration within +/- 25% of the ICE BofA 1-3 Year Govt/Credit Bond Index duration at all times for the individual securities portfolio.

Diversification
•No more than 30% of the portfolio may be invested in securities issued under Rule 144A* without registration rights (no limit on Rule 144a securities with registration rights). * Note: Rule 144A is an administrative rule under the SEC allowing, under certain circumstances, for qualified institutional investors to trade certain securities with other institutional investors without registering the trade with the SEC. Specifically, the rule allows private companies, both domestic and international, to sell unregistered securities, also known as Rule 144 securities, to qualified institution buyers (QIBs) through a broker-dealer.

OTHER ASSETS (ALTERNATIVES)
Alternatives may consist of non-traditional asset classes such as hedge funds, private equity, private debt and real assets, when deemed appropriate. The total allocation to this category may not exceed 30% of the overall portfolio.

Diversifying Liquid Alternatives): Primary objective shall be to enhance the risk-return profile of the overall portfolio. This can be accomplished by using liquid alternative strategies that may enhance returns at a reasonable level of risk or reduce volatility while providing a reasonable level of return.

These asset classes may differ from traditional public market asset classes due to the use of certain strategies including short-selling, leverage, and derivatives. Liquid alternatives may also invest across asset classes. For purposes of asset allocation targets and limitations, liquid alternatives funds will be categorized under the specific asset class of the fund. For example, a long/short U.S. equity fund will be categorized as “Other” in the Growth Assets category while a long/short credit fund will be categorized as “Other” in the Income Assets category. Multi-strategy liquid alternatives funds that cannot be easily categorized under one asset class will be included in “Other” under either the Growth Assets or Income Assets category depending on the risk-return profile of the strategy.

Real Assets: Real assets are typically physical assets that have intrinsic worth due to their substance and properties. Real assets are primarily used for their lower correlation to traditional assets (i.e. stocks and bonds) and their inflation hedging properties. Categories of real asset investments include, but are not limited to, real estate, infrastructure, land, farmland, timberland, precious metals, and commodities.

Public real assets are publicly traded and liquid. The benefit of lower correlation investments is that, when implemented correctly, these investments can potentially improve a portfolio’s expected risk- adjusted return over the long-term. The real assets category can be extended to include other forms of assets that offer similar inflation hedging properties such as pooled vehicles holding: commodities contracts, Treasury Inflation Protected Securities (“TIPS”), index-linked derivative contracts, certain forms of intellectual property, and the equity of companies in businesses thought to hedge inflation. For purposes of asset allocation targets and limitations, real assets may be categorized as “Other” under

Page 132 of 658 ends

10 either the Growth Assets or Income Assets category or in the Real Return Assets category, depending on the nature and risk/return profile of the investment.

CASH EQUIVALENTS
Cash equivalents shall be held in funds complying with Rule 2(a)-7 of the Investment Company Act of 1940.

Portfolio Risk Hedging
Portfolio investments designed to hedge various risks including volatility risk, interest rate risk, etc. are allowed to the extent that the investments are not used for the sole purpose of leveraging Trust assets.

One example of a hedge vehicle is an exchange traded fund (“ETF”) which takes short positions.

Prohibited Investments
Except for purchase within authorized investments, securities having the following characteristics are not authorized and shall not be purchased: letter stock and other unregistered securities, direct commodities or commodity contracts, or private placements (with the exception of Rule 144A securities). Further, derivatives, options, or futures for the sole purpose of direct portfolio leveraging are prohibited. Direct ownership of real estate, natural resource properties such as oil, gas or timber and the purchase of collectibles is also prohibited.

Safekeeping
All assets of the Trust shall be held by a custodian approved by the Administrator for safekeeping of Trust assets. The custodian shall produce statements on a monthly basis, listing the name and value of all assets held, and the dates and nature of all transactions in accordance with the terms in the Trust Agreement. Investments of the Trust not held as liquidity or investment reserves shall, at all times, be invested in interest-bearing accounts. Investments and portfolio securities may not be loaned.

Control Procedures
Review of Investment Objectives
The Advisor shall review annually and report to the Administrator the appropriateness of this Policy Statement for achieving the Trust’s stated objectives. It is not expected that this Policy Statement will change frequently. In particular, short-term changes in the financial markets should not require an adjustment in this Policy Statement.

Review of Investment Performance
The Advisor shall report on a quarterly basis to the Administrator to review the investment performance of the Trust. In addition, the Advisor will be responsible for keeping the Administrator advised of any

Page 133 of 658 ends

11 material change in investment strategy, Managers, and other pertinent information potentially affecting performance of the Trust.

The Advisor shall compare the investment results on a quarterly basis to appropriate peer universe benchmarks, as well as market indices in both equity and fixed income markets. Examples of benchmarks and indexes that will be used include the Russell 3000 Index for broad U.S. equity strategies; S&P 500 Index for large cap U.S. equities, Russell 2000 Index for small cap U.S. equities, MSCI ACWI ex-U.S. Index for broad based non-U.S. equity strategies, MSCI Europe, Australasia, and Far East (EAFE) Index for developed markets international equities, ICE BofA 1-3 Year Govt/Credit Index for fixed income securities, and the U.S. 91 Day T-bill for cash equivalents. The Russell 3000 Index will be used to benchmark the U.S. equities portfolio; the MSCI ACWI ex-U.S. Index will be used to benchmark the non-U.S. equities portfolio; the ICE BofA 1-3 Year Govt/Credit Index will be used to benchmark the fixed income portfolio. The categories “Other” will be benchmarked against appropriate indices depending on the specific characteristics of the strategies and funds used.

Voting of Proxies
The Administrator recognizes that proxies are a significant and valuable tool in corporate governance.

The voting rights of individual stocks held in separate accounts or collective, common, or pooled funds will be exercised by the investment managers in accordance with their own proxy voting policies. The voting rights of funds will be exercised by the Advisor.

Page 134 of 658 ends

12 Adoption of Investment Policy Statement
Any changes and exceptions to this Policy Statement will be made in writing and adopted by the Administrator. Once adopted, changes and exceptions will be delivered to each Manager, as appropriate, by the Advisor.

Approved by the City of Pleasanton Plan Administrator:

Member
____________
Date
Member
____________
Date

Page 135 of 658 ends

Exhibit B

INVESTMENT POLICY STATEMENT
FOR

CITY OF PLEASANTON CAPITAL GROWTH FUND
SECTION 115 TRUST PENSION FUND

Page 136 of 658 ends

2 TABLE OF CONTENTS

SECTION PAGE
Purpose..........................................................................................................................................3 Investment Authority ....................................................................................................................3 Statement of Investment Objectives .............................................................................................4 Investment Guidelines ..................................................................................................................5 Time Horizon
Liquidity and Diversification
Asset Allocation
Rebalancing Philosophy
Risk Tolerance
Performance Expectations
Selection of Investment Managers................................................................................................7 Guidelines for Portfolio Holdings.................................................................................................7 Direct Investments by Advisor
Limitations on Managers’ Portfolios
Portfolio Risk Hedging
Prohibited Portfolio Investments
Safekeeping
Control Procedures........................................................................................................………..11 Review of Investment Objectives
Review of Investment Performance
Voting of Proxies
Adoption of Investment Policy Statement………………………………………………………12

Page 137 of 658 ends

3 The City of Pleasanton “City” has established a section 115 Trust known as the City of Pleasanton Section 115 Pension Trust (the “Trust”). This Trust will be used to invest monies to fund the City’s unfunded liability in the California Public Employee Retirement System (“CalPERS”). The City has developed two sub-accounts under this Trust. The sub-account for this portfolio is named the ‘Capital Growth” account. It is seen as the pool of assets that maintain a long-term horizon, and a growth objective is the primary focus. The City of Pleasanton City Council (“Council”) has given authority to the Plan Administrator to establish and adopt the investment Policy Statement (“Policy Statement”) for the following purposes.

Purpose
Funds set aside in the Section 115 Trust are safeguarded from diversion to other budgetary uses and generally may be invested in a broader range of securities than would typically be permitted for public agency operating funds, potentially increasing earnings. Therefore, higher returns can improve the City’s ability to meet future pension obligations. An additional advantage of holding funds in the Trust rather than contributing an equivalent amount directly to CalPERS is that the City retains control over the timing and amount of disbursements from the Trust. Retaining control of the funds in the Trust provides the flexibility to meet current or accrued liabilities based on the financial circumstances at that time. The City also controls the timing of contributions to the Trust.

The main investment objective of the Trust is to achieve long-term growth of Trust assets by maximizing long-term rate of return on investments and minimizing risk of loss.

The purpose of this Policy Statement is to achieve the following:

1. Document investment objectives, performance expectations, and investment guidelines for Fund assets.

2. Establish an appropriate investment strategy for managing all Trust assets, including an investment time horizon, risk tolerance ranges, and asset allocation to provide sufficient diversification and overall return over the long-term time horizon of the Trust.

3. Establish investment guidelines to control overall risk and liquidity.

4. Establish periodic performance reporting requirements to monitor investment results and confirm that the investment policy is being followed.

5. Comply with fiduciary, prudence, due diligence, and legal requirements for Trust assets.

Investment Authority
The City has appointed the Plan Administrator (the “Administrator”) to oversee certain policies and procedures related to the operation and administration of the Trust. The Administrator will have authority to implement the investment policy and guidelines in the best interest of the Trust to best satisfy the purposes of the Trust. In implementing this Policy Statement, the Administrator believes it may delegate certain functions to:

Page 138 of 658 ends

4 1. An investment advisor (“Advisor”) to assist the Administrator in the investment process and to maintain compliance with this Policy Statement. The Advisor may assist the Administrator in establishing investment policy objectives and guidelines. The Advisor will adjust asset allocation for the Trust subject to the guidelines and limitations set forth in this Policy Statement. The Advisor will also select investment managers (“Managers”) and strategies consistent with its role as a fiduciary for the Trust. The investment vehicles allowed may include mutual funds, commingled trusts, separate accounts, limited partnerships and other investment vehicles deemed to be appropriate by the Advisor. The Advisor is also responsible for monitoring and reviewing investment managers; measuring and evaluating performance; and other tasks as deemed appropriate in its role as Advisor for Trust assets. The Advisor may also select investments with discretion to purchase, sell, or hold specific securities, such as Exchange Traded Funds, that will be used to meet the Trust’s investment objectives. The Advisor shall never take possession of securities, cash or other assets of the Trust, all of which shall be held by the custodian. The Advisor must be registered with the Securities and Exchange Commission.

2. A custodian selected by the Trust to maintain possession of physical securities and records of street name securities owned by the Trust, collect dividend and interest payments, redeem maturing securities, and effect receipt and delivery following purchases and sales. The custodian may also perform regular accounting of all assets owned, purchased, or sold, as well as movement of assets into and out of the Trust.

3. A trustee appointed by the Trust, such as a bank trust department, if the Trust does not have its own Trustees, to assume fiduciary responsibility for the administration of Trust assets; provided, however, that if the Administrator shall have appointed an investment advisor, then any trustee appointed under this paragraph shall have no authority with respect to selection of investments.

4. Specialists such as attorneys, auditors, actuaries and, retirement plan consultants to assist the Administrator in meeting its responsibilities and obligations to administer Trust assets prudently.

Statement of Investment Objectives
The investment objectives of the Trust are as follows:

1. To invest assets of the Trust in a manner consistent with the following fiduciary standards:
(a) all transactions undertaken must be for the sole interest of Trust beneficiaries, and (b) assets are to be diversified in order to minimize the impact of large losses from individual investments.

2. To provide for funding and anticipated withdrawals on a continuing basis for payment of benefits and reasonable expenses of operation of the Trust.

3. To enhance the value of Trust assets in real terms over the long-term through asset appreciation and income generation, while maintaining a reasonable investment risk profile.

4. Subject to performance expectations over the long-term, to minimize principal fluctuations over the Time Horizon (as defined below).

Page 139 of 658 ends

5 5. To achieve a long-term level of return commensurate with contemporary economic conditions and equal to or exceeding the investment objective set forth in this Policy Statement under the section labeled “Performance Expectations”.

Investment Guidelines
Within this section of the Policy Statement, several terms will be used to articulate various investment concepts. The descriptions are meant to be general and may share investments otherwise considered to be in the same asset class. They are:
"Growth Assets" - a collection of investments and/or asset classes whose primary risk and return characteristics are focused on capital appreciation. Investments within the Growth Assets category can include income and risk mitigating characteristics, so long as the predominant investment risk and return characteristic is capital appreciation. Examples of such investments or asset classes are:
domestic and international equities or equity funds, private or leveraged equity, certain real estate investments, and hedge funds focused on equity risk mitigation or equity-like returns. "Income Assets" - a collection of investments and/or asset classes whose primary risk and return characteristics are focused on income generation. Investments within the Income Assets category can include capital appreciation and risk mitigating characteristics, so long as the primary investment risk and return characteristic is income generation. Examples of such investments or asset classes are:
fixed income securities, guaranteed investment contracts, certain real estate investments, and hedge funds focused on interest rate risk mitigation or income investment-like returns. "Real Return Assets" - a collection of investments and/or asset classes whose primary risk and return characteristics are focused on real returns, net of inflation. Investments within the Real Return category may include, but are not limited to, inflation protected securities, commodities, certain real estate investments, natural resources, liquid alternatives and hedge funds.

Time Horizon
The Trust’s investment objectives are based on a long-term investment horizon (“Time Horizon”) of five years or longer. Interim fluctuations should be viewed with appropriate perspective. The Administrator has adopted a long-term investment horizon such that the risks and duration of investment losses are carefully weighed against the long-term potential for appreciation of assets.

Liquidity and Diversification
In general, the Trust may hold some cash, cash equivalent, and/or money market funds for near-term Trust benefits and expenses (the “Trust Distributions”). Remaining assets will be invested in longer-term investments and shall be diversified with the intent to minimize the risk of long-term investment losses.

Consequently, the total portfolio will be constructed and maintained to provide diversification with regard to the concentration of holdings in individual issues, issuers, countries, governments or industries.

Page 140 of 658 ends

6 Asset Allocation
The Administrator believes that to achieve the greatest likelihood of meeting the Trust’s investment objectives and the best balance between risk and return for optimal diversification, assets will be invested in accordance with the targets for each asset class as follows to achieve an average total annual rate of return that is equal to or greater than the Trust’s target rate of return over the long-term, as described in the section titled “Performance Expectations”.

Asset Weightings
Asset Classes Range Target
Growth Assets
Domestic Equity 25% - 65% 45.0%
International Equity 12% - 40% 22.5%
Other 0% - 20% 7.5%
Income Assets
Fixed Income
Other
10% - 30%
0% - 20%

23.0%
0%
Real Return Assets 0% - 20% 0%
Cash Equivalents 0% - 20% 2%
The Advisor and each Manager will be evaluated against their peers on the performance of the total funds under their direct management.

Rebalancing Philosophy
The asset allocation range established by this Policy Statement represents a long-term perspective. As such, rapid unanticipated market shifts or changes in economic conditions may cause the asset mix to fall outside Policy Statement ranges. When allocations breach the specified ranges, the Advisor will rebalance the assets within the specified ranges. The Advisor may also rebalance based on market conditions.

Risk Tolerance
Subject to investment objectives and performance expectations, the Trust will be managed in a style that seeks to minimize principal fluctuations over the established Time Horizon.

Page 141 of 658 ends

Limitations on Portfolio Holdings

EQUITIES

Page 142 of 658 ends

International Equities. The overall non-U.S. equity allocation should include a diverse global mix that is comprised of the equity of companies from multiple countries, regions and sectors.

The overall rating of the fixed income assets as calculated by the Advisor shall be investment grade, based on the rating of one Nationally Recognized Statistical Rating Organization (“NRSRO”).

Page 143 of 658 ends

9 Duration
The manager will maintain the portfolio duration within +/- 25% of the Bloomberg US Aggregate Bond Index duration at all times for the individual securities portfolio.

Page 144 of 658 ends

10 either the Growth Assets or Income Assets category or in the Real Return Assets category, depending on the nature and risk/return profile of the investment.

CASH EQUIVALENTS
Cash equivalents shall be held in funds complying with Rule 2(a)-7 of the Investment Company Act of 1940.

One example of a hedge vehicle is an exchange traded fund (“ETF”) which takes short positions.

Page 145 of 658 ends

11 material change in investment strategy, Managers, and other pertinent information potentially affecting performance of the Trust.

The Advisor shall compare the investment results on a quarterly basis to appropriate peer universe benchmarks, as well as market indices in both equity and fixed income markets. Examples of benchmarks and indexes that will be used include the Russell 3000 Index for broad U.S. equity strategies; S&P 500 Index for large cap U.S. equities, Russell 2000 Index for small cap U.S. equities, MSCI ACWI ex-U.S. Index for broad based non-U.S. equity strategies, MSCI Europe, Australasia, and Far East (EAFE) Index for developed markets international equities Bloomberg US Aggregate Bond Index for fixed income securities, and the U.S. 91 Day T-bill for cash equivalents. The Russell 3000 Index will be used to benchmark the U.S. equities portfolio; the MSCI ACWI ex-U.S. Index will be used to benchmark the non-U.S. equities portfolio; the Bloomberg US Aggregate Bond Index will be used to benchmark the fixed income portfolio. The categories “Other” will be benchmarked against appropriate indices depending on the specific characteristics of the strategies and funds used.

Voting of Proxies
The Administrator recognizes that proxies are a significant and valuable tool in corporate governance.

Page 146 of 658 ends

Approved by the City of Pleasanton Plan Administrator:

Member
____________
Date
Member
____________
Date

Page 147 of 658 ends

Page 1 of 2 ends

Item #10

CITY COUNCIL AGENDA REPORT

November 19, 2024
Library and Recreation

TITLE: APPROVE FIRST AMENDMENT TO THE SERVICES AGREEMENT WITH

FOLGER GRAPHICS FOR ACTIVITIES GUIDE, CITY NEWSLETTER, AND CITY

ANNUAL REPORT PRINTING SERVICES IN AN AMOUNT NOT TO EXCEED $76,238 FROM DECEMBER 1, 2024 TO NOVEMBER 30, 2025

SUMMARY
The City produces a Library and Recreation Activities Guide, which is distributed three times a year. The City also produces a City newsletter up to three times a year, and a City Annual Report once a year. This amendment extends the agreement with Folger Graphics for printing services to produce these documents for an additional year at an annual not to exceed amount of $76,238 for the extension year, a reduction from $98,426 in the previous year.

RECOMMENDATION
Approve first amendment to the services agreement with Folger Graphics for Activities Guide, City Newsletter, and City Annual Report printing services in an amount not to exceed $76,238 from December 1, 2024 to November 30, 2025.

BACKGROUND
The Library and Recreation Department provides a variety of recreational classes, preschool activities, and environmental education and civic arts programs. It also manages and coordinates all youth and adult sports, recreation activities for developmentally disabled adults, and community-wide special events. The department advertises these classes and programs in its triannual Activities Guide, and residents utilize the document to register for the wide variety of activities available.

The City also provides the Progress Newsletters and an Annual Report to inform residents of important topics, events, and key milestones.

The City and Folger Graphics executed the original agreement on November 20, 2021 with a three-year term and a not to exceed amount of $91,000 in year one, $94,640 in year two, and $98,426 in year three for a total amount of $284,066 (four percent increase per year).

DISCUSSION
In an effort to reduce general fund expenses, the Library and Recreation Department recommends reducing the Activities Guide paper quality to newsprint. This would save the City approximately $21,400 per year compared to the original agreement terms. The front and back inside and outside covers would retain their current glossy color format to ensure the Activities Guide is noticeable when it is mailed to Pleasanton residents. The City Newsletter and City Annual Report will remain the same, and both have price increases.

In addition to transitioning to newsprint, the City no longer needs quotations from Folger

Page 148 of 658 ends

Page 2 of 2 ends

Graphics at page counts as high as in the original agreement, which reduces the not to exceed amount as well.

Folger Graphics has provided excellent service to the City of Pleasanton and has demonstrated a high level of professionalism and quality of work.

EQUITY AND SUSTAINABILITY
Not applicable.

OUTREACH
No outreach was conducted as this is a matter of routine City business.

STRATEGIC PLAN ALIGNMENT
By reducing printing costs for the Activities Guide, this Amendment advances the ONE Pleasanton Goal A - Funding our Future to support financial health and sound fiscal policies through long-term planning, cost recovery, and cost containment.

FISCAL IMPACT
Funding for this contract is included in the Library and Recreation Department budget and in the City Manager’s Office’s Communication Division budget. The not to exceed amount is $41,346 for Library and Recreation, and $34,892 for the City Manager’s Office for a total of $76,238.

The not to exceed amount of this Amendment assumes the City will request the maximum page numbers for the Activities Guide, City Newsletter, and City Annual Report. If the City chooses to create an item that is fewer pages, there will be additional cost savings.

Prepared by: Submitted by: Approved by:

Zachary Reda, Management
Analyst
Heidi Murphy, Director of Library and
Recreation

Gerry Beaudin, City
Manager

Attachments:

1. First Amendment to Agreement

Page 149 of 658 ends

First Amendment Page 1

FIRST AMENDMENT TO AGREEMENT
T
his First Amendment to Agreement ("First Amendment") is entered into this First day of December 2024 by the City of Pleasanton ("City") and Folger Graphics, Inc. ("Contractor”) W
hereas, on November 30, 2021 City and Contractor entered into an Agreement for printing services ("Agreement"); and
W
hereas, respective to Section 1. Contractor’s Services, Contractor has provided Quotation 89775, 89775 Version: 1, 89775 Version: 2, 89775 Version: 3, and 89671, to reflect new paper quality and prices, included herein as Exhibit A.

W
hereas, respective to Section 6. Terms, the Parties wish to extend the term of this Agreement through November 30, 2025
W
hereas, respective to Section 7. Compensation, the Parties wish to update the total compensation of this Agreement; and
W
hereas, the parties desire to amend to the Agreement
N
ow, therefore, in exchange for valuable consideration, the receipt of which is hereby acknowledged, the parties agree as follows:

1. S
ection 1 of the Agreement, "Contractor’s Services" is amended to read:

1. Contractor’s Services. Contractor shall diligently perform the services and produce the materials, as hereinafter set forth;
a. Contractor shall perform all work as described in Quotation 89775, 89775 Version: 1, 89775 Version: 2, 89775 Version: 3, and 89671, included herein as Exhibit A, Scope of Work, attached hereto and incorporated herein by this reference. b
. Contractor shall meet with City staff as necessary to complete the Scope of Work described in Section 1.a, above.

2. S
ection 6 of the Agreement, "Terms" is amended to extend the term through November 30, 2025.

3. S
ection 7 of the Agreement, "Compensation" is amended to make the not to exceed amount $76,238 From December 1, 2024, to November 30, 2025; the not to exceed amount for the original Agreement and the First Amendment total $360,304.

4. Th
is amendment may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with U.S. federal E-Sign Act of 2000 (15 U.S. Code §7001 et seq.), California Uniform Electronic Transactions Act (Cal. Civil Code §1633.1 et seq.), or other applicable law) or other transmission method, and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

ATTACHMENT 1

Page 150 of 658 ends

P age 2

5. All other terms and conditions of the Agreement shall remain in full force and effect.

I
n witness whereof, authorized representatives of the parties have executed this First Amendment to the Agreement as of the date first above written.

CO
NTRACTOR or CONSULTANT
B
y: __________________________
Signature
__________________________

Print name
T
itle: __________________________
[I
f Contractor or Consultant is a corporation,
signatures must comply with California
Corporations Code §313]
B
y: __________________________
Signature
__________________________

Print name
T
itle: __________________________

CITY OF PLEASANTON
_____________________________
Gerry Beaudin, City Manager
ATTEST:
____________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
_____________________________
Daniel G. Sodergren, City Attorney
Rev. 3/23
First Amendment

Page 151 of 658 ends

Exhibit A for First AmendmentScope of Work with Folger Graphics Scope of work will include the following projects and tasks: Library and Recreation Activities Guide Task 1: Produce a final printing proof from an uploaded file (PDF) received from City’s contract graphics artist. The production timeline should allow for changes (spelling, dates, grammar, corrections, etc.) before the final draft is printed. The contractor shall submit costs associated with revisions made on the printing proof to the Project Manager and receive the Project Manager’s approval before final printing of the project. Task 2:Provide same-day courier service to drop off and deliver printing proof copy to and from the City of Pleasanton Library and Recreation Office, located at 400 Old Bernal Avenue, Pleasanton, CA. Task 3: Produce up to 32,000 copies of the Library and Recreation Activities Guide three (3) times a year. Each brochure will contain up to 76 pages, cover to cover, depending upon content, and will be produced in accordance with the specifications below: The document shall consist of a four-color, smooth Hi-Brite offset cover (outside front cover, inside front cover, inside back cover, outside back cover), and inside document color shall consist of newsprint throughout. Paperweight shall be 80# House Gloss for cover and 27.7# Newsprint for inside material. Bindery shall be stapled using saddle stitch. Task 4:Obtain City of Pleasanton residential mailing list/routes for zip codes 94566 and 94588 and deliver the appropriate number of activities guides to Pleasanton Post Office, located at 4300 Black Avenue, Pleasanton, CA. Post office boxes and commercial addresses are not to be included. Task 5:Deliver remaining activities guides to the Library and RecreationDepartment-Administration Office on the same day as delivery is made to the Post Office.City NewsletterTask 1: Produce up to 33,308 copies of the City’s Newsletter up to threetimes per year, generally Spring, Summer, Fall. Each publication will contain up to 12 pages, cover to cover, depending upon content, and will be produced in accordance with the specifications below: 4 Color Process & 60# web offset ThroughoutCut, Score, Fold, Mail

Page 152 of 658 ends

Task 2: Obtain City of Pleasanton residential mailing list/routes for zipcodes 94566 and 94588 and deliver the appropriate number of newsletters toPleasanton Post Office, located at 4300 Black Avenue, Pleasanton, CA. Post office boxes and commercial addresses are not to be included. Task 3: Deliver remaining newsletters to the City of Pleasanton Administration Office, located at 200 Old Bernal Avenue, Pleasanton CA on the same day as delivery is made to the Post Office. City Annual Report Task 1: Produce up to 33,294 copies of the City’s Annual Report one time per year, usually early spring. Each Annual Report will contain up to 8 pages, cover to cover, depending upon content, and will be produced in accordance with the specifications below: 8.5 x 11 on 80# Silk 500 qty8.5 x 11 on 70# Silk 32,794 qty4 Color Process & Satin Aqueous ThroughoutTask 2: Insert Annual Report into Newsletter for mailing.Printing for up to 33,308 per guide, by page count Amount (Annual)72 pages + Cover $13,690 ($41,070) Annual sales tax on approximately 6,000 booklets (2,000 per Guide @ 76 pages) to be delivered directly to the Library and Recreation Administration Office (400 Bernal Avenue) $275.94Maximum Total Annual Costs Turnaround time to receive, print and deliver blueline and color key to Library and Recreation Administration Office (400 Bernal Avenue)2-3 daysTurnaround time from receipt of blueline to print and deliver to Post Office and Library and Recreation Administration Office (400 Bernal Avenue) 7 days* The parties shall agree in writing to a production timeline for each Activity Guide, which shallinclude these and other relevant elements.Printing for up to 32,000 per newsletter, by page count Amount (Annual)12 pages $6,890($20,670) Additional Price quotes included below

Page 153 of 658 ends

Annual sales tax on all booklets to be delivered directly to the City of Pleasanton Administration Office $2,222.03 Maximum Total Annual Costs Turnaround time to receive, print and deliver blueline and color key to the City of Pleasanton Administration Office (200 Bernal Avenue)2-3 daysTurnaround time from receipt of blueline to print and deliver to Post Office and City of Pleasanton Administration Office (200 Bernal Avenue)7 daysPrinting for up to 33,294 annually, by page count Amount (Annual)8 pages $10,835 Annual sales tax on all reports to be delivered directly to the City of Pleasanton Administration Office $1,164.76 Maximum Total Annual Costs Turnaround time to receive, print and deliver blueline and color key to the City of Pleasanton Administration Office (200 Bernal Avenue)2-3 daysTurnaround time from receipt of blueline to print and deliver to Post Office and City of Pleasanton Administration Office (200 Bernal Avenue)7 days Additional Price Quotes included below

Page 154 of 658 ends

Quotation
89775
FolgerGraphics
21093 Forbes Avenue
Hayward, CA 94545-1115
Phone: (510) 887-5656
Fax: (510) 887-5831
http://www.folgergraphics.com/
To:

City of Pleasanton
Kara Yost
400 Old Bernal Avenue
Pleasanton, CA 94566
Phone: (925) 931-3422
Email: [email protected]
Date
Salesperson
Estimator Julia Mullins
Kirk Folger
10/24/24
We would like to thank you for your time and consideration in regards to this quotation. Included is the detailed product specifications and prices. The quotation is confidential and is intended solely for the use of the addressee(s) named above.

Dear Kara Yost
Below Is Your Detailed Production Specifications for this Request Description Activities Guide
40 Pages + Cover

8.25 x 10.5
Cover:
70# gloss book - 4CP + GAQ / Same
Text (1-40):

27.7# Newsprint - 4CP / Same
PDF supplied - Signa Proof
Stitch and Trim
CRT sort 29,361 qty (x2 setups)
Deliver to Pleasanton PO
Box 700 qty
Deliver to Customer
Prices
Quantity Price
30,061 $9,665.00
Schedule Delivery dates are based on proof being returned as expected Sincerely,
Upon acceptance please indicate the quantity required
Thank You for giving us the opportunity to submit this quote. As always, quotes are based on a physical inspection of your originals and are valid for 30 days unless otherwise specified.

Stock price and availability are subject to change at time of actual order. If a change is needed you will be notified.

Page 1 of 2 ends

Page 155 of 658 ends

Quotation
89775
FolgerGraphics
21093 Forbes Avenue
Hayward, CA 94545-1115
Phone: (510) 887-5656
Fax: (510) 887-5831
http://www.folgergraphics.com/
Quoted By: Sign: Date:Kirk Folger
Accepted By: Sign: Date:

Thank You for giving us the opportunity to submit this quote. As always, quotes are based on a physical inspection of your originals and are valid for 30 days unless otherwise specified.

Stock price and availability are subject to change at time of actual order. If a change is needed you will be notified.

Page 2 of 2 ends

Page 156 of 658 ends

Quotation
89775
FolgerGraphics
21093 Forbes Avenue
Hayward, CA 94545-1115
Phone: (510) 887-5656
Fax: (510) 887-5831
http://www.folgergraphics.com/
Version: 1
To:

Dear Kara Yost
Below Is Your Detailed Production Specifications for this Request Description Activities Guide
48 Pages + Cover

8.25 x 10.5
Cover:
70# gloss book - 4CP + GAQ / Same
Text (1-48):

27.7# Newsprint - 4CP / Same
PDF supplied - Signa Proof
Stitch and Trim
CRT sort 29,361 qty (x2 setups)
Deliver to Pleasanton PO
Box 700 qty
Deliver to Customer
Prices
Quantity Price
30,061 $10,165.00
Schedule Delivery dates are based on proof being returned as expected Sincerely,
Upon acceptance please indicate the quantity required
Thank You for giving us the opportunity to submit this quote. As always, quotes are based on a physical inspection of your originals and are valid for 30 days unless otherwise specified.

Stock price and availability are subject to change at time of actual order. If a change is needed you will be notified.

Page 1 of 2 ends

Page 157 of 658 ends

Quotation
89775
FolgerGraphics
21093 Forbes Avenue
Hayward, CA 94545-1115
Phone: (510) 887-5656
Fax: (510) 887-5831
http://www.folgergraphics.com/
Version: 1
Quoted By: Sign: Date:Kirk Folger
Accepted By: Sign: Date:

Thank You for giving us the opportunity to submit this quote. As always, quotes are based on a physical inspection of your originals and are valid for 30 days unless otherwise specified.

Stock price and availability are subject to change at time of actual order. If a change is needed you will be notified.

Page 2 of 2 ends

Page 158 of 658 ends

Quotation
89775
FolgerGraphics
21093 Forbes Avenue
Hayward, CA 94545-1115
Phone: (510) 887-5656
Fax: (510) 887-5831
http://www.folgergraphics.com/
Version: 2
To:

Dear Kara Yost
Below Is Your Detailed Production Specifications for this Request Description Activities Guide
56 Pages + Cover

8.25 x 10.5
Cover:
70# gloss book - 4CP + GAQ / Same
Text (1-32+1-24):

27.7# Newsprint - 4CP / Same
PDF supplied - Signa Proof
Stitch and Trim
CRT sort 29,361 qty (x2 setups)
Deliver to Pleasanton PO
Box 700 qty
Deliver to Customer
Prices
Quantity Price
30,061 $12,235.00
Schedule Delivery dates are based on proof being returned as expected Sincerely,
Upon acceptance please indicate the quantity required
Thank You for giving us the opportunity to submit this quote. As always, quotes are based on a physical inspection of your originals and are valid for 30 days unless otherwise specified.

Stock price and availability are subject to change at time of actual order. If a change is needed you will be notified.

Page 1 of 2 ends

Page 159 of 658 ends

Quotation
89775
FolgerGraphics
21093 Forbes Avenue
Hayward, CA 94545-1115
Phone: (510) 887-5656
Fax: (510) 887-5831
http://www.folgergraphics.com/
Version: 2
Quoted By: Sign: Date:Kirk Folger
Accepted By: Sign: Date:

Thank You for giving us the opportunity to submit this quote. As always, quotes are based on a physical inspection of your originals and are valid for 30 days unless otherwise specified.

Stock price and availability are subject to change at time of actual order. If a change is needed you will be notified.

Page 2 of 2 ends

Page 160 of 658 ends

Quotation
89775
FolgerGraphics
21093 Forbes Avenue
Hayward, CA 94545-1115
Phone: (510) 887-5656
Fax: (510) 887-5831
http://www.folgergraphics.com/
Version: 3
To:

Dear Kara Yost
Below Is Your Detailed Production Specifications for this Request Description Activities Guide
64 Pages + Cover

8.25 x 10.5
Cover:
70# gloss book - 4CP + GAQ / Same
Text (2-32s):

27.7# Newsprint - 4CP / Same
PDF supplied - Signa Proof
Stitch and Trim
CRT sort 29,361 qty (x2 setups)
Deliver to Pleasanton PO
Box 700 qty
Deliver to Customer
Prices
Quantity Price
30,061 $12,745.00
Schedule Delivery dates are based on proof being returned as expected Sincerely,
Upon acceptance please indicate the quantity required
Thank You for giving us the opportunity to submit this quote. As always, quotes are based on a physical inspection of your originals and are valid for 30 days unless otherwise specified.

Stock price and availability are subject to change at time of actual order. If a change is needed you will be notified.

Page 1 of 2 ends

Page 161 of 658 ends

Quotation
89775
FolgerGraphics
21093 Forbes Avenue
Hayward, CA 94545-1115
Phone: (510) 887-5656
Fax: (510) 887-5831
http://www.folgergraphics.com/
Version: 3
Quoted By: Sign: Date:Kirk Folger
Accepted By: Sign: Date:

Thank You for giving us the opportunity to submit this quote. As always, quotes are based on a physical inspection of your originals and are valid for 30 days unless otherwise specified.

Stock price and availability are subject to change at time of actual order. If a change is needed you will be notified.

Page 2 of 2 ends

Page 162 of 658 ends

Quotation
89671
FolgerGraphics
21093 Forbes Avenue
Hayward, CA 94545-1115
Phone: (510) 887-5656
Fax: (510) 887-5831
http://www.folgergraphics.com/
To:

City of Pleasanton - City Manager's Office
Heather Tiernan
400 Old Bernal Ave.

Pleasanton, CA 94566
Phone: (925) 931-5044
Email: [email protected]
Date
Salesperson
Estimator Julia Mullins
Kirk Folger
10/21/24
We would like to thank you for your time and consideration in regards to this quotation. Included is the detailed product specifications and prices. The quotation is confidential and is intended solely for the use of the addressee(s) named above.

Dear Heather Tiernan
Below Is Your Detailed Production Specifications for this Request Description City Newsletter - 8 Pages
Size 8.25 x 10.75
4CP throughout
60# Web Offset
PDF supplied - Signa Proof
Fold, Stitch and Trim
CRT 32,808 qty (2 setups)
Deliver to Pleasanton PO - FG Truck
Deliver 500 qty to Customer - FG Van
Prices
Quantity Price
33,308 $5,875.00
Schedule Delivery dates are based on proof being returned as expected Sincerely,
Upon acceptance please indicate the quantity required
Quoted By: Sign: Date:Kirk Folger
Accepted By: Sign: Date:

Thank You for giving us the opportunity to submit this quote. As always, quotes are based on a physical inspection of your originals and are valid for 30 days unless otherwise specified.

Stock price and availability are subject to change at time of actual order. If a change is needed you will be notified.

Page 1 of 1 ends

Page 163 of 658 ends

Page 1 of 3 ends

Item #11

CITY COUNCIL AGENDA REPORT

November 19, 2024
Public Works - Utilities Division

TITLE: APPROVE AMENDMENT NO. 1 TO AGREEMENT BETWEEN THE CITY OF PLEASANTON AND ZONE 7 WATER AGENCY TO PERFORM PHASE I

FEASIBILITY REVIEW FOR THE REGIONAL GROUNDWATER FACILITIES PROJECT FOR A REVISED TOTAL NOT-TO-EXCEED AMOUNT OF $2,733,178

SUMMARY
Following Zone 7 Water Agency's (Zone 7) contract solicitations and awards for the Regional Groundwater Facility Project-Phase 1 Feasibility study, staff recommends the City amend its agreement with Zone 7 to reflect the new total not-to-exceed amount of $2,733,178 inclusive of a 10 percent contingency. Zone 7 and the City will share the cost of Phase I - Feasibility Study for the consultant and construction contract with $1,449,947 allocated to Zone 7 and $1,283,231 allocated to the City.

RECOMMENDATION
Authorize the City Manager or their delegate(s) to execute Amendment No. 1 to the Agreement between the City of Pleasanton and Zone 7 Water Agency to perform Phase I Feasibility Study for the Regional Groundwater Facilities Project
to reflect the new total not-to-exceed amount of $2,733,178 inclusive of a 10 percent contingency, by which Zone 7 and the City will share the cost of Phase I - Feasibility Study for the consultant and construction contract with $1,449,947 allocated to Zone 7 and $1,283,231 allocated to the City.

BACKGROUND
On June 18, 2024, the City Council approved an agreement between the City and Zone 7 Water Agency to perform Phase I of the Regional Groundwater Facilities Project to determine the feasibility for the City and Zone 7 to construct and operate new groundwater well facilities in the Bernal subbasin to recover the use of the City’s groundwater production quota (GPQ) and increase Zone 7’s groundwater production capacity for the Tri-Valley region. Per the original agreement, the contractor and consultant services cost will be equally shared (50/50 cost sharing) with a not-to-exceed limit of $2,000,000.

Concurrently, in June 2024, the well siting analysis was completed to identify the top three locations for potential groundwater facilities. The locations resulting from the analysis are in public parks owned and operated by the City: Del Prado Park, Pleasanton Tennis and Community Park, and Hansen Park.

DISCUSSION
Zone 7 prepared and advertised a Request for Bids to solicit bids for up to three test well constructions (up to one test well per park location). Zone 7 received five bids; the bid from Nor-Cal Pump & Well Drilling, Inc. was deemed the lowest, responsive, responsible, and qualified bid with a total bid amount of $1,400,871. Zone 7 also prepared and advertised a

Page 164 of 658 ends

Page 2 of 3 ends

Request for Proposals (RFP) for consulting services to perform test well construction oversight, water quality and yield testing, an assessment of groundwater sustainability, a feasibility review of alternative project configurations, and a basis of design for the recommended alternative. Zone 7 received five proposals and, after interviews were conducted by a committee consisting of Zone 7 and City staff, Luhdorff & Scalmanini Consulting Engineers (LSCE) was selected as the most qualified for this project, with a final and best contract amount for the Phase 1 project of $1,083,836. As noted, City staff participated in the contract solicitation and selection processes which align with the City’s procurement process.

On October 16, 2024, the Zone 7 Board of Directors authorized its General Manager to enter into agreement with Nor-Cal Pump & Well Drilling, Inc. for a not-to-exceed limit of $1,540,958 which includes a 10 percent contingency. Also on October 16, 2024, the Zone 7 Board authorized its General Manager to enter into agreement with LSCE for a not-to-exceed limit of $1,192,220 which includes a 10 percent contingency. This agreement includes approximately $175,000 of optional services that are specific to Zone 7 regional efforts and, if performed, will not be part of the cost share with the City. The Zone 7 agenda report is provided as Attachment 2.

When combined, anticipated services for the contractor test well construction agreement, the consultant feasibility study agreement, and other minor services are $2,733,178, which exceeds the not-to-exceed limit of the original City and Zone 7 agreement of $2,000,000.

Therefore, staff recommends the City approve Amendment No. 1 (Attachment 1) to the original agreement with Zone 7 to increase the total not-to-exceed limit by $733,178 to a revised not- to-exceed limit of $2,733,178 with cost sharing of $1,449,947 for Zone 7 and $1,283,231 for the City.

Other terms and conditions in the original agreement are unchanged.

EQUITY AND SUSTAINABILITY
Approval of this action advances the Citywide Climate Action Plan 2.0 (CAP) - Water Resources - Reduce GHG emissions from water usage (including conveyance) and prepare community water resources for a changing climate which will result in cost savings, enhance water quality and availability, improve infrastructure, and increase resiliency.

OUTREACH
Phase I of the project include community engagement efforts led by the City, including notifications of test well construction activities and outreach to understand and mitigate potential impacts. A November 1 community meeting held in the Pleasanton Tennis and Community Park was promoted to neighborhoods near the three identified parks and shared more broadly on the City's social media platforms.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the ONE Pleasanton strategic goal of Investing in Our Environment - Strategy 3 to identify funding and implement the recommendations from the Water Supply Alternative Study to resolve PFAS water quality issues.

Page 165 of 658 ends

Page 3 of 3 ends

FISCAL IMPACT
This project is funded by the City Groundwater Supply Project (CIP 24174). The total programmed amount in the four-year Capital Improvement Program for CIP 24174 is $4,000,000, which includes a budget allowance of approximately $1,500,000 for feasibility review (Phase I) and $2,500,000 for final design (first part of Phase II). Amendment No.1 to the agreement between the City and Zone 7 for Phase I increases anticipated City expenditures associated with the agreement to $1,283,231, which leaves a remaining Phase I balance of $216,769. Expenditures for final design activities will occur after the completion of the feasibility review, on approval to proceed by the City Council, and are anticipated to be less than the total programmed funding.

Prepared by: Submitted by: Approved by:

Ryan Smith, Assistant Dir. of
Public Works - Utilities
Siew-Chin Yeong, Director of Public
Works

Gerry Beaudin, City
Manager

Attachments:

1. First Amendment to Final Cost Sharing Agreement between the City and Zone 7

2. Zone 7 Board Award Contract October 16, 2024

Page 166 of 658 ends

FIRST AMENDMENT TO
AGREEMENT BETWEEN ZONE 7 WATER AGENCY AND THE CITY OF PLEASANTON FOR THE REGIONAL GROUNDWATER FACILITIES PROJECT – PHASE I FEASIBILITY STUDY This First Amendment (“First Amendment”) is entered into on November 19, 2024, between the Alameda County Flood Control and Water Conservation District, Zone 7, a public body, corporate and politic, (“Zone 7” or “Zone 7 Water Agency”) and the City of Pleasanton, a municipal corporation (“City”). Zone 7 and City may be referred to individually as party, or collectively as parties.

RECITALS
WHEREAS, on August 8, 2024, Zone 7 and the City entered into an Agreement For The Regional Ground Water Facilities Project – Phase I (“Agreement”); and
WHEREAS, the parties wish to amend the Agreement to increase the not-to-exceed limit for the total costs of Phase I.

NOW, THEREFORE, for valuable consideration of the contributions and commitments hereinafter set forth, both parties agree as follows:

Section 1. The first sentence of section 3 of the Agreement (Cost-sharing) is amended to read as follows:

Zone 7 and the City shall share the cost of Phase I-Feasibility Study for the consultant and construction contract with cost sharing of One Million, Four Hundred Forty Nine Thousands, Nine Hundred Forty Seven Dollars ($1,449,947.00) for Zone 7 and One Million, Two Hundred Eighty Three Thousands, Two Hundred Thirty One Dollars ($1,283,231.00) for Pleasanton, for a total cost of Phase 1 for an amount Not-To-Exceed Two Million, Seven Hundred Thirty Three Thousands, One Hundred Seventy Eight Dollars ($2,733,178.00) including a 10% contingency.

Section 2. All other terms and conditions of the Agreement shall remain in full force and effect.

Section 3. All parties consent to using DocuSign for this First Amendment.

CITY OF PLEASANTON ALAMEDA COUNTY FLOOD CONTROL &
WATER CONSERVATION DISTRICT, ZONE 7
Gerry Beaudin, City Manager Valerie Pryor, General Manager ATTEST:

Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:

Daniel G. Sodergren, City Attorney
ATTACHMENT 1

Page 167 of 658 ends

Page 168 of 658 ends

Page 169 of 658 ends

Page 170 of 658 ends

Page 171 of 658 ends

Page 172 of 658 ends

Page 173 of 658 ends

Page 1 of 3 ends

Item #12

CITY COUNCIL AGENDA REPORT

November 19, 2024
Public Works - Engineering Division

TITLE: APPROVE A PURCHASE ORDER WITH SHAPE INCORPORATED IN THE AMOUNT OF $1,170,000 AND AUTHORIZE A $117,000 CONTINGENCY FOR

THE PURCHASE OF A PRE-PACKAGED BOOSTER STATION FOR TURNOUT NO. 4 PRE-PACKAGED BOOSTER STATION PROCUREMENT, CIP NO. 24181

SUMMARY
As part of the Near-Term Water Improvements project, a permanent booster station is required at Turnout No. 4 to help pull water from the Zone 7 supply lines and ensure an adequate water supply for current and future demands. The pre-packaged booster station procurement was solicited through the City’s design consultant services as permitted under the Uniform Public Construction Cost Accounting Act 22002.5, with three final proposals received. Staff recommends awarding a purchase order in the amount of $1,170,000 to Shape Incorporated of Pleasanton, California, with the lowest responsible proposal for the Turnout No. 4 Pre- Packaged Booster Station Procurement, CIP No. 24181. In addition, staff recommends approving a 10 percent contingency of $117,000 for additional changes and modifications during the shop drawing process.

RECOMMENDATION

1. Approve a purchase order for $1,170,000 with Shape Incorporated of Pleasanton, California, for the Turnout No. 4 Pre-Packaged Booster Station Procurement, CIP No. 24181.

2. Authorize the City Manager or their delegate(s) to enter into the purchase order.

3. Authorize the Director of Public Works, or designee, to approve and execute contract change order(s) for a contingency amount not to exceed $117,000 (approximately 10 percent of the purchase order).

BACKGROUND
Turnout No. 4 is located at the southwest corner of the intersection of Stoneridge Drive and Hopyard Road and connects to Zone 7’s 20-inch supply line in Hopyard Road. It was built in 1980 with a capacity of 4,500 gpm (gallons per minute). The control and metering equipment are housed below grade in a concrete vault with a small building to house the fluoride chemicals and control systems. The site is shared with a "Welcome to Pleasanton" sign, electrical cabinet, and traffic signal equipment.

The turnout operates with higher pressure from Zone 7, pushing water into the City's distribution system. As the Tri-Valley area grew, the available pressure from Zone 7's system decreased when other agencies filled their systems, thus reducing the turnout's capacity to below 1,000 gpm during peak demand. A water booster station is required to ensure the demand can be met regardless of other agencies' activity. The booster station will use electric

Page 174 of 658 ends

Page 2 of 3 ends

pumps to pull water from Zone 7's system and increase the pressure to the City's system- desired water-pressure setting. It will also be designed to meet the future peak demand of 5,200 gpm.

As the existing site has minimal space, staff and the City’s design consultant, Woodard & Curran, Inc., developed plans and a request for proposals to solicit bids for purchasing a prefabricated (built off-site) booster station. The existing turnout, fluoride system, and traffic signal controller will remain in operation during construction.

DISCUSSION
The procurement of the pre-packaged booster station was done in conformance with the Uniform Public Construction Cost Accounting Act 22002.5, which allows flexibility from the conventional design, bid, and build process for public works projects necessary to maintain publicly owned water, power, or waste disposal systems.

The consultant solicited proposals from several qualified pre-packaged booster stations through a Request for Proposal process outlining the station's requirements. Proposals were received in February 2024, ranging from $1.7 million - $1.8 million, exceeding the Engineer’s estimate of $850,000. After a detailed review, the project was value-engineered, which reduced the building size, modified the style of pumps, and clarified electrical equipment needs. A value-engineered proposal was developed, and three new proposals were received in August 2024, ranging from $1.17 million - $1.23 million.

The City’s design consultants reviewed and approved the proposals, and confirmed the system would meet the City’s needs and that the design and pricing were valid. The designer reviewed their original engineer’s estimate and updated it to $1.2 million, with the earlier estimates not reflecting the market costs for the electrical and control equipment and the building structure.

After the purchase order, City staff and the manufacturer will work through the specifics of the equipment and finishes.

The City Engineer reviewed and confirmed that the solicitation and selection process conducted by the design consultant is in alignment with the City’s purchasing requirements and recommends awarding a purchase order in the amount of $1.17 million to Shape Incorporated of Pleasanton, California, for the Turnout No. 4 Pre-Packaged Booster Station Procurement, CIP No. 24181. In addition, staff recommends approving a 10 percent contingency (not to exceed $117,000) to cover potential City-requested changes and modifications during the shop drawing process.

Engineer’s Estimate Shape Flow-Line Romtec
$1,200,000 $1,170,000 $1,221,960 $1,228,875

The pre-packaged system will be housed in a 14-foot by 18-foot by 10-foot-tall fiberglass building (similar to the recycled water booster station in Ken Mercer Sports Park) mounted to a metal skid that allows for the building and equipment to be set in one piece. It will house three 50-horsepower pumps and motors that will deliver a firm capacity of 5,600 gpm and peak capacity of 7,000 gpm, meeting the City’s current and future demands. All electrical equipment, including PG&E metering, generator connections, and controls, are included. The installation of the pre-packaged booster station was included in the construction contract with JMB

Page 175 of 658 ends

Page 3 of 3 ends

Construction under the Near-Term Water Improvements, CIP No. 24171, contract.

Schedule
Due to the extended time for the PG&E meter equipment, the estimated time for fabrication is 44 to 54 weeks from when the purchase order is issued, putting the system installation in fall 2025. JMB Construction will remobilize the installation of the pre-packaged booster station as part of their contract agreement. The long lead time on the booster station work will not impact the City’s ability to meet the peak water demands in 2025 and 2026.

EQUITY AND SUSTAINABILITY
Staff followed the City Procurement Policy for purchasing procedures as these types of projects are routine matters of City business.

OUTREACH
Construction notices have been sent to adjacent residences and businesses prior to the start of construction and posted on the City’s website.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the ONE Pleasanton strategic plan goal of Investing in Our Environment, Strategy 1 – Implement the Four Year Capital Improvement Program (CIP) to complete the design and construction of budgeted capital projects, and Strategy 3 – Identifying funding and implement the recommendations from the Water Supply Alternative Study to resolve PFAS water quality issues.

FISCAL IMPACT
A total of $1.3 million is currently budgeted from the 2024 Water Bonds for the Turnout No. 4 Pre-Packaged Booster Station Procurement, CIP No. 24181, which is sufficient for an estimated $1.3 million in anticipated expenditures, inclusive of the $1,170,000 purchase and a $117,000 contingency (approximately 10 percent).

Prepared by: Submitted by: Approved by:

Adam Nelkie, Assistant Dir.
of Public Works -
Engineering
Siew-Chin Yeong, Director of Public
Works

Gerry Beaudin, City
Manager

Attachments:

1. Shape Incorporated Proposal

Page 176 of 658 ends

SANITAT
ION • HYDRAULIC • AND PROCESSING EQUIPMENT
SHAPE INC. Page 1of 2
___________________________________________
Travis Headen
QUOT
ATION DOES NOT INCLUDE ANY SALES OR USE TAX PAYABLE UNDER ANY STATE OR FEDERAL STATURE. THIS QUOTATION PRICE IS FOR MATERIAL LISTED ABOVE. ANY ADDITIONS OR MODIFICATIONS THAT BECOME NECESSARY FOR APPROVED SUBMITTALS, UPON AWARDING OF THIS CONTRACT, MAY RESULT IN NECESSARY PRICE CHANGES.

NOTE: ITEMS NOT SPECIFIED ON THIS QUOTATION ARE NOT INCLUDED IN OUR PRICE AND ARE TO BE SUPPLIED BY OTH
ERS. PRICES ARE FOR IMMEDIATE ACCEPTANCE AND SUBJECT TO CHANGE WITHOUT NOTICE. Rev. 11/22 SALE SUBJECT TO MANUFACTURERS STANDARD TERMS AND CONDITIONS. 30% Re-stocking fee.

PLEASANTON SACRAMENTO STOCKTON
3825 Hopyard Road #195 2356 Gold Meadow Way #270 119 Val Dervin Parkway #2 Pleasanton, CA 94588 Gold River, CA 95670 Stockton, CA 95206 Phone (925) 485-9720 Phone (916) 309-4132 Phone (209) 234-5909 TO: City of Pleasanton DATE: 27-Aug-24
QUOTE #: 115057
JOB: Pleasanton Turnout T-4 Booster Pump
Station
LOCATION: Pleasanton, CA
ATTN: Bill Carlson/Joe Sinacori PHONE:

Fax:

WE ARE PLEASED TO QUOTE ON THE FOLLOWING EQUIPMENT
SUBJECT TO CONDITIONS PRINTED ON THE BACK HEREOF, F.O.B. FACTORY THESE CONDITIONS MAY BE CHANGED ONLY BY A WRITTEN F.F.A. TO FIRST DESTINATION STATEMENT SIGNED BY AN OFFICER OF SHAPE, INCORPORATED.

QTY ITEM PRICE
T-4 Turnout Packaged Booster Pump Station
VSS, inc/ MCI-Flowtronex Packaged Booster Pump Assembly See Below for Scope Overview – Each individual section provides complete scope package
1 Seismic Calculations and Engineering
1 1
PLC programming
Lot: Factory Performance Test
1 Field Performance Testing and Start Up
1 Lot: Assembly Assistance & Training As Specified
1 Lot: Documents, O&Ms, & Freight
Total For Above Equipment: $1,170,000
NOTES:

1. Price includes freight: F.F.A.

2. Price does not include any applicable taxes

3. Price does not include: installation, equipment unloading, anchor bolts, foundation

Page 177 of 658 ends

SANI
TATION • HYDRAULIC • AND PROCESSING EQUIPMENT
SHAPE INC. Page 2of 2
___________________________
________________
Travis Headen
QU
OTATION DOES NOT INCLUDE ANY SALES OR USE TAX PAYABLE UNDER ANY STATE OR FEDERAL STATURE. THIS QUOTATION PRICE IS FOR MATERIAL LISTED ABOVE. ANY ADDITIONS OR MODIFICATIONS THAT BECOME NECESSARY FOR APPROVED SUBMITTALS, UPON AWARDING OF THIS CONTRACT, MAY RESULT IN NECESSARY PRICE CHANGES.

NOTE: ITEMS NOT SPECIFIED ON THIS QUOTATION ARE NOT INCLUDED IN OUR PRICE AND ARE TO BE SUPPLIED BY O
THERS. PRICES ARE FOR IMMEDIATE ACCEPTANCE AND SUBJECT TO CHANGE WITHOUT NOTICE. Rev. 11/22 SALE SUBJECT TO MANUFACTURERS STANDARD TERMS AND CONDITIONS. 30% Re-stocking fee. design or any items not listed.

4. Total Estimated Lead Time – 44 to 54 Weeks includes submittals and procurement

5. ESTIMATED delivery of Documentation A) Station Design submittals 6-8 weeks B) Tesco Design submittals 12-16 weeks C) Tesco Package supply 24 to 32 weeks D) Station 32 to 36 Weeks + additional 4 weeks after tesco panels arrive

6. All Drawings and Schematics provided are conceptual only. Full design documents to be provided at later date

7. Warranties 25 year on structure, 2 year on pumps, 1year on Tesco for workmanship

Page 178 of 658 ends

Turnout T-4 Booster PS – Request for Value Engineering
Addendum No. 1 Page 3

4. Bid Form
The Bid Form is modified to add the “Investigation of Existing SCADA System” line item. See below for the updated Bid Form:

Item Price
Engineering & Submittals $
Pumps & Mechanical $
Enclosure $
Electrical $
Instrumentation & Controls $
RTU and Integration 1 $
Investigation of Existing SCADA System 2,3 $ 60,000 (Allowance) Delivery & Startup $
Contingency $
Total Price $
Alternative #1 TESCO RTU and Integration $
1) Items excluded in Section 3 above shall be included in the RTU and Integration Bid Item. 2) Scope of Allowance item for investigation is described in Section 3 above. 3) Compensation under the Allowance shall only be made based on written authorization from the City.
145,000.00
Tesco RTU and Integration included
0 70,000
300,000
250,000
1,170,000 Tesco has scada configuration included
Using Tesco
40,000
240,000
125,000

Page 179 of 658 ends

Overview
Booster Skid Package. Shape is designated the single supplier of the unit and accepts unit responsibility for coordina�on of all equipment Supplier including but not limited to pumps, piping, valves, controls, electrical distribu�on, drives, instrumenta�on, and building enclosure.

Addi�onal informa�on provided in the detailed scope sec�on.

Site Ready Sta�on Shelter
Heavy-Duty, Fiberglass Sta�on Shelter 14FT Wide x 28FT Long x 10FT UV Stable Exterior for Added Protec�on Against Corrosion and Solar Bleaching of Shelter Color
Color: Custom per Customer Speciﬁca�on (Conﬁrm at Time of Order) Fully Gasketed, Leak Proof Rooﬁng and Siding Panels w/ Noise reducing insula�on HVAC Climate Control 480/3/65 5ton/9Kw Bard HVAC
Gabled Roof w/ Pump Access for Easy Crane Removal and Servicing Electrical
Meter Socket Panel w/ pull box
Square D Service entrance w/ MTS – 3R Rated, Safety Switch, double throw non fusible Temp Generator receptacle
QTY (1) 400A 600V Rated Manual Transfer Switch for Total System Overcurrent Protec�on and Single Point Power Connec�on
QTY (5) Interior, Energy Eﬃcient, Long Las�ng, Instant-On LED lights with a Set of Three- Way Light Switches
QTY (6) Exterior, Energy Eﬃcient, Long Las�ng, Instant-On LED lights with a Set of Three- Way Light Switches
QTY (4) Customer Use 15AMP GFCI Receptacle for Convenient, Readily Available Power QTY (1) Dedicated 120/240VAC 10KVA Power Zone for All Shelter Low Voltage Power Requirements Including Extra Breakers for Customer Use
VFD Main Panel (MCC)
UL 508a Listed Control Panel Custom Engineered & Manufactured in Same Facility as Pump Sta�on

Page 180 of 658 ends

Water�ght UL Type 3R Enclosure
72INx72INx18IN (HxWxD),,Final Panel Size Conﬁrmed in Approval Drawings 12 ga. Mild Steel Construc�on with Self-Healing Zinc Primer and Superior Outdoor Rated Powder Coated Textured Finish
400-Amp Main Fused Disconnect to Protect Valuable and Cri�cal Components from Overloads and Abnormal Supply Power Condi�ons
ABB ACQ 580 Drives
Industry Leading Short Circuit Current Ra�ng (SCCR) of 100,000 Amps to Impede Catastrophic Failure
Type 1 Surge Protec�on w/Status Indicators for Safeguarding of Electrical System Against Destruc�ve Transient Power Surges
Ac�ve Incoming Line Phase Monitor W/Primary Fusing for Detec�on of Voltage Imbalance, Phase Sequence, and Loss of Phase
RTU Panel – Tesco Controls Provided
Nema 4 Galvanized Wall Mount Enclosure,
120V, 1-Phase Panel Disconnect Breaker,
Surge Arrestor, EMI/RFI Line Filter UPS & Convenience Receptacles, Uninterruptable Power Supply, 24V Power Supply
DC Power Supply, 5-Slot Chassis, CPU Card with Ethernet & Serial Ports, HDIO Cards, Terminal Boards, & Cables as required, Compact Operator Interface with Keypad & LED Display
12” Touchscreen HMI
MDS SD9 900MHz Radio
Tesco Control L3000 PLC inc PLC/OIT Programming,
SCADA/HMI Programming integra�on into the City’s exis�ng AVEVA (formally known as Wonderware) SCADA applica�on
Skid
Reinforced, Custom, Carbon Steel Pump Skid
Fabricated Using Heavy Duty, High Strength Structural Channel, Tubing, and Plate Fully Seal Welded Pump Skid Deck Plate
Integral High Thrust Structural Pipe Supports

Page 181 of 658 ends

Self-healing, Corrosion Reducing, Zinc Powder Coat Primer Wet Painted Skid
Corrosion and Wear Resistant 316SS Hardware
Seismic Anchoring Calcula�ons
1500lb Davit Crane w/ electric hoist- mounted to skid
Pump Assemblies • QTY (3) 50 HP Split Coupled End Suc�on Pump, (88% Eﬃciency), Each Rated for 2334 GPM @ 68 FT TDH Including Sta�on Losses. To Include:

Precision Engineered, Hydraulic Load Balancing, Cast Iron Double Volute with Suc�on Spliter Providing Increased Eﬃciency and Lifespan
Noise and Vibra�on Reducing Dynamically Balanced and Corrosion Resistant 304SS Impellers with Enlarged Impeller Eye
High Strength Steel Sha�ing
Wear Resistant Mechanical Seal for Drip Proof Sealing
50 HP , 460/3/60, Premium Eﬃcient, Baldor TEFC Motors Wired for Motor Space Heaters, Motor Sha� Grounding Rings, and Motor High Temperature Thermostats Sta�on Piping
Carbon Steel Sta�on Piping
Custom Formulated, Electrosta�cally Adhering, Thermally Cross-Linking, Fusion Bonded Epoxy Coa�ng
NSF 61 Cer�ﬁed, Drinking Water Safe, Fusion Bonded Epoxy Coa�ng All Piping Above 2IN Shall Be Both Internally and Externally Coated Corrosion and Wear Resistant 316SS Hardware
VALVES:
10IN Suc�on Isola�on Buterﬂy Valve w/Gear Operator, Corrosion-Inhibi�ng 316SS Disc and EPDM Elastomers, Abrasion Resistant Fusion Bonded Body, and 250PSI Bubble Tight Shutoﬀ Capacity
10IN Discharge Isola�on Buterﬂy Valve w/Gear Operator, Corrosion-Inhibi�ng 316SS Disc and EPDM Elastomers, Abrasion Resistant Fusion Bonded Body, and 250PSI Bubble Tight Shutoﬀ Capacity

Page 182 of 658 ends

10IN Pump Silent Wafer Check Valves with Corrosion and Abrasion Resistant Fusion Bonded Epoxy, SS Disc, and Heavy-Duty Spring to Reduce Hydraulic Shock Sta�on Pressure Relief and Surge An�cipa�ng Valve
Fusion Bonded Epoxy Cla-Val 50-01 Sta�on Pressure Relief Valve with Corrosion Mi�ga�ng 316SS Internals, Bronze Pilo�ng, Piped to Inlet Manifold with Isola�on Buterﬂy Valve w/Lever Operator, SS Disc, EPDM Elastomers, and Bonnet Quick Air Purge Ball Valve
Pipe Supports – 120 degree pipe saddles, coated hardened steel. Lay out to be determined in detailed design documents. Photo atached for sample

Page 183 of 658 ends

PLEASANTON SACRAMENTO STOCKTON
5976 W. Las Positas Blvd. #226 2200 Sunrise Blvd #240 119 Val Dervin Parkway # 2 Pleasanton CA 94588 Gold River, CA 95670 Stockton, CA 95206 Phone (925) 485-9720 Phone (916) 309-4132 Phone (209) 234-5909 Submittal Table of Contents

1.Cover Page / Quote

2. Station Layout

3. Skid Scope of Supply

4. Pump Performance

5. Tesco Scope of Supply

6. ABB VFD Scope of Supply

7. Project Team

8. Sample Photos

Page 184 of 658 ends

Station Layout
28' x 14'W x 10' Tall

Page 185 of 658 ends

Page 186 of 658 ends

Skid Detailed Scope of Supply

Page 187 of 658 ends

VALUE ENGINEERED PROPOSAL
D
ate: August 27, 2024
ATTN: Shape Industries
Q
uotation Number VSS-16648089879r4
Q
uoted by Mark LaVarnway
P
roject Name: Pleasanton BPS

PROJECT SITE PARAMETERS
Inlet Condition: 60/75 PSI PRESSURIZED
Supply Power: 480Y/277 3PH 60HZ
Existing Station FTX#: NA
Pump Station Requirements: 7000 GPM AT 90 PSI At Station Discharge (max with all 3 pumps operating at matched speeds to maintain 90 psi)
SC

OPE OF SUPPLY
Bui
lt Under ISO9001:2015 Certification
Ma
in Control Panel
MCI to provide a VFD panel ONLY. VFDs, PLC, and programming to be provided by other.

MCI to be provided with full I/O list, electrical schematics, electrical BOM, and VFD parameters.

VFD
Custom Enclosure
• UL 508a Listed Control Panel Custom Engineered & Manufactured in Same Facility as Pump Station • W
atertight UL Type 3R Enclosure
• 72INx72INx18IN (HxWxD),,Final Panel Size Confirmed in Approval Drawings • 12 ga. Mild Steel Construction with Self-Healing Zinc Primer and Superior Outdoor Rated Powder Coated T
extured Finish
• H
eavy Duty Concealed Hinge / 3- Point Latch with Handle (Pad Lock Capable), Easily Removeable Doors and Center Post for Servicing
• Rigid Steel Backplate with Pure White Powder Coat
• Stainless Steel Doorstop(s), (Standard on All Doors)
• 12I
N Data Pocket Containing All Pertinent Panel Documentation and As Built Drawings for Easy in Field R
eference
• Manufactured in the USA
Cool
ing/Heating
• QTY (1) UL Listed Low Profile Forced Air Cooling for Quick, Quiet, Efficient Heat Rejection for Increased Electrical Component Longevity (Panel to utilize cooling from building HVAC to provide cooling to VFDs with the panels forced air cooling fan system)

Page 188 of 658 ends

16182 Gothard Street, Unit I
Huntington Beach, CA 92647
Tel: 714-847-5957 / Fax: 714-847-5958
1 6182 Gothard #I Huntington Beach Ca. 92647 / Office 714-847-5957, Fax 714-847-5958 Pumping Station Specialists
CA Lic# 665995
INT.____________
VFD
Panel Main Power
• 400-Amp Main Fused Disconnect to Protect Valuable and Critical Components from Overloads and Abnormal Supply Power Conditions
• Industry Leading Short Circuit Current Rating (SCCR) of 100,000 Amps to Impede Catastrophic Failure • Type 1 Surge Protection w/Status Indicators for Safeguarding of Electrical System Against Destructive Transient Power Surges
• Active Incoming Line Phase Monitor W/Primary Fusing for Detection of Voltage Imbalance, Phase Sequence, and Loss of Phase
• Regulated & Adjustable DC Power Supply for Safe User Operation and Stable Clean Power to Control Processing Components
• GFCI Outlet for Convenient Laptop Power
• Robust Industrial Control Power Transformer w/Primary Fusing S
ystem Instrumentation
• Inlet Pressure Transducer
o IFM 316SS Multi-output Programmable Pressure Transducer, with Local Display, Protective Display Cap, and Cord Set
• Discharge Pressure Transducer
o IFM 316SS Multi-output Programmable Pressure Transducer, with Local Display, Protective Display Cap, and Cord Set
P
ump Assemblies
• QTY (3) 50 HP Split Coupled End Suction Main Pump, (88% Efficiency), Each Rated for 2334 GPM @ 68 FT TD
H. To Include:
o PUMP
 Precision Engineered, Hydraulic Load Balancing, Cast Iron Double Volute with Suction Splitter Providing Increased Efficiency and Lifespan
 Noise and Vibration Reducing Dynamically Balanced and Corrosion Resistant 304SS Impellers with Enlarged Impeller Eye
 High Strength Steel Shafting
 Wear Resistant Mechanical Seal for Drip Proof Sealing  All Pumps Shall Receive a Non-Witnessed Flow Test by Pump Manufacturer  SPARE PARTS PER PUMP
 98434909 seal kit per pump
 97757675 Casing O Ring per pump
 97757693 Seal cover O Ring per pump
o MOTOR
 50 HP, 1200rpm, 460/3/60, Premium Efficient, ODP Motors Wired for Motor Space Heaters, Includes Motor Shaft Grounding Rings, and Motor High Temperature Thermostats. (Tstats to
b
e wired to TESCOs PLC for monitoring)
o VALVES
 10IN Suction Isolation Butterfly Valve w/Gear Operator, Corrosion-Inhibiting 316SS Disc a nd
E
PDM Elastomers, Abrasion Resistant Fusion Bonded Body, and 250PSI Bubble Tight Shutoff Capacity
 10IN Discharge Isolation Butterfly Valve w/Gear Operator, Corrosion-Inhibiting 316SS Disc a
nd EPDM Elastomers, Abrasion Resistant Fusion Bonded Body, and 250PSI Bubble Tight Shutoff Capacity

Page 189 of 658 ends

16182 Gothard Street, Unit I
Huntington Beach, CA 92647
Tel: 714-847-5957 / Fax: 714-847-5958
161 82 Gothard #I Huntington Beach Ca. 92647 / Office 714-847-5957, Fax 714-847-5958 Pumping Station Specialists
CA Lic# 665995
INT.____________
 10IN Pump Globe Check Valves with Corrosion and Abrasion Resistant Fusion Bonded Epoxy, SS Disc, and Heavy-Duty Spring to Reduce Hydraulic Shock Statio
n Isolation Valving
• 316SS Threaded Ball Valves, 1.5IN and Below
Statio
n Pressure Relief and Surge Anticipating Valve
Skid

• Fusion Bonded Epoxy Cla-Val 52-03 8IN Station Pressure Relief and Surge Anticipating Valve with Corrosion Mitigating 316SS Internals, Bronze Piloting, Piped to Inlet Manifold with Isolation Butterfly Valve w/Lever Operator, SS Disc, EPDM Elastomers, and Bonnet Quick Air Purge Ball Valve • Reinforced, Custom, Carbon Steel Pump Skid Not to Exceed 14’ x 28’ Footprint o Fabricated Using Heavy Duty, High Strength Structural Channel, Tubing, and Plate o Fully Seal Welded Pump Skid Deck Plate
o Integral High Thrust Structural Pipe Supports
o Self-healing, Corrosion Reducing, Zinc Powder Coat Primer o Wet Painted Skid
o Drain with Drain Line
o Corrosion and Wear Resistant Zinc Hardware
o Includes Seismic Anchoring Calculations as Well as Associated Anchors NOT
E: Any changes made per customer request that increase the overall system footprint past what is stated above may be subject to a change order.

Site Rea
dy Station Shelter
• Construction
o Heavy-Duty, Fiberglass Station Shelter, 14 x 28
 UV Stable Exterior for Added Protection Against Corrosion and Solar Bleaching of Shelter Color
 Color: Custom per Customer Specification (Confirm at Time of Order)  Fully Gasketed, Leak Proof Roofing and Siding Panels
 All Shelters are Mounted to the Pump Skid and Wired Prior to Shipping o Gabled Roof w/ Pump Access for Easy Crane Removal and Servicing o Vandalism Resistant, Pad-Lockable Access Doors with Heavy Duty Doorstop o 25 Year Shelter Only Warranty
• Internal Climate Control
o 480/3/60 5ton/9Kw Bard HVAC Unit
o Noise Reducing, Thermally Protective Insulation for Non-Disruptive, Energy Efficient Performance o Dehumidifier
• Electrical
o QTY (1) 400A 600V Rated Manual Transfer Switch for Total System Overcurrent Protection and Single Point Power Connection
o QTY (5) Interior, Energy Efficient, Long Lasting, Instant-On LED lights with a Set of Three-Way Light Switches
o QTY (6) Exterior, Energy Efficient, Long Lasting, Instant-On LED lights with a Set of Three-Way Light Switches
o QTY (4) Customer Use 15AMP GFCI Receptacle for Convenient, Readily Available Power

Page 190 of 658 ends

16182 Gothard Street, Unit I
Huntington Beach, CA 92647
Tel: 714-847-5957 / Fax: 714-847-5958
16 182 Gothard #I Huntington Beach Ca. 92647 / Office 714-847-5957, Fax 714-847-5958 Pumping Station Specialists
CA Lic# 665995
INT.____________
o QTY (1) Dedicated 120/240VAC 10KVA Power Zone for All Shelter Low Voltage Power Requirements Including Extra Breakers for Customer Use
St
ation Piping
• Carbon Steel Station Piping
o Custom Formulated, Electrostatically Adhering, Thermally Cross-Linking, Fusion Bonded Epoxy Coating
 NSF 61 Certified, Drinking Water Safe, Fusion Bonded Epoxy Coating  Extreme Resistance to Corrosive Water and Harsh Chemicals o All Piping Above 2IN Shall Be Both Internally and Externally Coated • Piping Below 2IN shall be 304SS
• Hose Bibb Connection for Handy, Pressurized Water Access • Corrosion and Wear Resistant Zinc Hardware
• 16IN System Bypass Including Globe Style Check Valve
Tr
ansition Pipe
• QTY (1) 18IN Flanged X 18IN Flanged Inlet Transition Pipe with 90-Degree Elbows o Piping to Stop Above Skid to Terminate with Customer Piping Extending Through the Floor • QTY (1) 16IN Flanged X 18IN Flanged Discharge Transition Pipe with 90-Degree Elbows o Piping to Stop Above Skid to Terminate with Customer Piping Extending Through the Floor Test
ing
• Pump Station Shall be Hydrostatically Tested to the Design Pressure Prior to Shipment • A Flow Test can be Performed Onsite at MCI’s Facility but Only Up to a Max of 2000GPM as Limited by the Size of MCI’s Testing Equipment
• MCI to Test One Pump at a Time.
• For Any Flow Testing Done on Site at MCI a TESCO Representative with the Ability to Operate the Control Panel Must be Present to Help with Testing
• MCI shall provide Power Connections to Provide Enough Power to Operate the PLC Platform and One Pump for Testing of the System
• TESCO will provide pump station control via PLC and HMI in a panel to be wall mounted.

Page 191 of 658 ends

Submittals: 6-8 weeks following order acceptance at MCI, Dallas, TX Shipment: 32-36 weeks following approved drawings subject to adjustment.

Liquidated damages of any kind will NOT be accepted or implied by any other contract or by reference.

A
dditional Warranty items
• Warranty Excludes crane if needed
• 1-year warranty on Station (excluding PLC/HMI controls) • 25 year warranty on equipment building by building manufacturer subject to building manufacturers war
ranty statement.

Clarifications and Exceptions
• Exception is taken to the Seismic and Building Codes of the pump station shelter. The shelter is only meant to offer equipment protection. Seismic calculations will only be provided for the anchoring of t
he system to the slab.
• Exception is taken to the piping and skid materials of construction. The system shall be built using carbon steel for both.
• Exception is taken to the pump vibration isolators. Due to the pump now being used vibration isolators ca
n no longer be offered.

ERMS AND CONDITIONS OF SALE
All sales by and purchases from Variable Speed Solutions Inc.., (Seller) are governed by the following terms and conditions:

1. A
ll purchases and credits occurring after the closing date of a month will appear on the periodic statement for the next month. Payment shall be made to the Seller in U.S. currency at its offices in Huntington Beach, Orange County, California.

2. O
rders regularly entered, whether verbal or written, can only be cancelled in writing by the Buyer upon terms that will compensate the Seller against loss for actual costs incurred to date. Any additional

Page 192 of 658 ends

16182 Gothard Street, Unit I
Huntington Beach, CA 92647
Tel: 714-847-5957 / Fax: 714-847-5958
1 6182 Gothard #I Huntington Beach Ca. 92647 / Office 714-847-5957, Fax 714-847-5958 Pumping Station Specialists
CA Lic# 665995
INT.____________
paperwork furnished at the Buyer's request, such as sketches, drawings and specification sheets will be charged at the Seller’s cost.

3. A
ny claim for defects, damages or shortages of an order delivered must be made by the Buyer in writing and delivered to the Seller within a period of ten (10) days after delivery. Failure to make such a claim within the specified time constitutes an acceptance and admission that the order fully complies with the terms, conditions and specifications required. The Seller's liability shall be limited to the stated selling price of any defective goods and shall in no event include special or consequential damages, including profits (or profits lost).

4. T
he Buyer bears the risk of loss of or damage to or destruction of the goods from the time of delivery.

The Seller retains title to the goods until the Buyer pays the entire purchase price as specified plus any interest thereon. If requested by Seller, Buyer shall execute a security agreement and financing statement evidencing Seller's security interest in the goods delivered to Buyer

5. I
f the credit of Buyer in the judgment of the Seller becomes impaired at any time, the Seller has the r
ight to require payment in advance before making further shipments, and to demand immediate performance of the Buyer of all obligations imposed upon him by this agreement.

6. If
there is any breach of or default under this agreement and if the same is placed in the hands of an attorney for collection, or if collected by lawsuit or through the probate or bankruptcy court, or if any action of foreclosure be had hereunder, Buyer shall be liable for reasonable attorney's fees incurred by the Seller. In the event of default by Buyer, Seller may immediately proceed to enforce payment of Buyer's obligation and exercise all the rights and remedies provided by the Business and Commerce Code of the State of California, or the Uniform Commercial Code, as well as any other rights and remedies afforded to Seller by law. Should Buyer be in default, Seller may require Buyer to return all goods previously delivered to Buyer by Seller, and any subsequent expenses for retaking, holding, preparing for sale, and reselling of such goods shall be at Buyer's expense. Funds realized from suc h
r
esale shall be credited to the Buyer’s unpaid account.

7. T
he Seller, or any credit bureau or investigating agency employed by the Seller, is hereby authorized to investigate the references herein listed or statements or other data obtained from the Buyer or from any other persons pertaining to the Buyer's credit or financial responsibility. The Buyer has read and un
derstands the foregoing terms and conditions of this application for credit and has signed the same as an indication of intent to enter into an agreement with Seller for the future purchase of goods and se
rvices from time to time. The Buyer also understands that upon acceptance of this application by the Seller, this document constitutes an agreement between the Buyer and the Seller for payment of debts owed to the Seller in return for the delivery of goods ordered or performance of services requested by Buyer.

8. T
he terms herein contained shall be governed by the statutes of the State of California and specifically the Business and Commerce Code of the State of California and the Uniform Commercial Code. In the event that any account owing by Buyer to Seller becomes delinquent, and legal proceedings are instituted for collection of said account or indebtedness, such legal proceedings may be instituted a nd
pr
osecuted against Buyer and its guarantors, if any, in any Court in Orange County, California, and the undersigned expressly agrees that venue for such proceeding shall be in Orange County, CA, even if the principal offices of the Buyer are located in another county within this state or outside of this state.

Page 193 of 658 ends

9. SELLER DISCLAIMS ANY WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE MERCHANTABILITY OF

THE GOODS DELIVERED TO THE BUYER NOR THE FITNESS OF SUCH GOODS FOR A PARTICULAR USE UNLESS A WRITTEN WARRANTY IS GIVEN TO THE BUYER BY SELLER AT TIME OF DELIVERY. 1 0. The terms contained herein may be modified only by written agreement signed by Buyer and an officer of Seller, VARIABLE SPEED SOLUTIONS INC

11. T
he seller warrants that the water pumping system or components will be free of defects in Materials and workmanship for 2 years from date of authorized start-up but not later than 27 months from date of invoice.

P
rovided that all installation and operation responsibilities have been properly performed and documented. The seller will provide a replacement part or component during the warranty life. Repairs do
ne at Seller expense must be pre-authorized. Upon request, Seller will provide advice for troubleshooting the system.

Thi
s proposal contains equipment that may require costly means to remove or replace based on site conditions. The seller will not accept liability for costs associated with the removal or replacement of equipment in difficult to access locations. This includes but is not limited to the use of diving services, barges, helicopters, or other unusual requirements.

D
efault of any agreement with Seller or.
a. The misuse, abuse of the pumping package outside its intended use. b. Failure to perform required maintenance service.
c. Pumping water not suitable for irrigation.
d. Exposure to electrolysis erosion.
e. Water salinity in excess of 2000 parts per million.
f. Water from a reverse osmosis plant without countermeasures in place. g. Water with a Langelier Index less than -0.5 and greater than +1.5 h. Presence of destructive gaseous or chemical solutions in or around the packaged system.

P
AYMENT TERMS: All Purchase Orders are subject to acceptance at the factory in Dallas, Texas. Receipt of production deposit, verification of acceptable credit, and confirmation of order are required before production. 50% production deposit required upon order, 40 % to be invoiced prior to delivery and remaining 10% to be billed upon satisfactory completion of startup net 30 NOT TO EXCEED 120 DAYS FROM DATE OF DELIVERY NO RETENTION SHALL BE HELD ON ANY PORTION OF EQUIPMENT PURCHASES.

Sincerely, Accepted:

Brian Pavloff
Signature
Brian Pavloff
President
Date

Page 194 of 658 ends

Page 195 of 658 ends

Pump Scope
3 ea Grundfos NBS80 135-6 – Split Coupled End Suction Pumps, 50HP Baldor Premium Eﬃciency Motor, 1180 RPM

Page 196 of 658 ends

KEY FEATURES AND BENEFITS
Installation
• No baseplate or grouting required reducing installation costs • No alignment required between the pump and motor with our Lif
etime Alignment Guarantee — eliminating laser alignment costs and reducing installation time
• Optimized, space-saving design has up to a 35% smaller footprint compared to traditional frame-mounted design pumps
• Top centerline discharge design allows for self-venting and more compact piping designs
Efficiency and Reliability
• Industry leading efficiencies you can count on, because of advanced Computational Fluid Dynamics (CFD)
• New Silicon Carbide (SiC) / Silicon Carbide (SiC) hard faced seal's robust design offers increased temperature range, better abrasives handling and longer life versus standard designs (standard on all N-Series pumps)
• Backed by our Lifetime Alignment Guarantee so you never have to worry about undue wear and tear on mechanical seals, bearings and energy losses due to misalignment
• Optimized, stainless-steel impeller design increases efficiency and reduces NPSH required
• Balanced impellers reduce noise and vibration for quiet operation and prolong seal and bearing life
The N-series offers three different end-suction models: the frame-mounted NK, close-coupled NB and split-coupled NBS.

The N-series delivers industry leading efficiencies that future-proof them against government efficiency regulations.

The NBS is designed to bring faster installation, greater efficiency and reliability, along with easier serviceability throughout the pump’s life. With up to a 35% smaller footprint, Lifetime Alignment Guarantee, back-pull out design and a new and revolutionary hard-faced seal designed to improve reliability and reduce service costs, the NBS delivers on our promise that HVAC from Grundfos — it’s everyone’s comfort zone.

Split-Coupled End-Suction Pump

GRUNDFOS NBS
• 4" and above models have a internal dual-volute
design for increased efficiency, lower life-cycle
costs and prolonged seal and bearing life
• Integrally cast diffuser vane reduces turbulence
Serviceability
• Foot-mounted volute for increased pump stability
• Spacer-coupling design allows for back pull-out
and easy access to mechanical seal without
removing the motor or disturbing piping

APPLICATIONS
• HVAC (Cooling/Heating)
• District Energy
• Industrial
• Water Utility

LIFETIME

GRUNDFOS

ALIG N MENT

Page 197 of 658 ends

LNBSSL01 0621

TECHNICAL DATA

PERFORMANCE DATA
NBS
FLOW, Q: max. 5,800 gpm
HEAD, H: max. 450 ft
LIQUID TEMPERATURE: -13°F to 248°F (Optional: 284°F)
WORKING PRESSURE: max. 232 psi (Optional: 362 psi)
HP RANGE max. 250 hp
SPEED 3600, 1800, and 1200 RPM
DISCHARGE SIZES:

1.25 to 10 in.
• Centerline: 1.25–6 in
• Tangential: 8–10 in
Trademarks displayed in this material, including but not limited to Grundfos, the Grundfos logo and “be think innovate” are registered trademarks owned by The Grundfos Group. All rights reserved. © 2022 Grundfos Holding A/S, all rights reserved.

Grundfos Americas
Brookshire, TX 77423
www.grundfos.us
www.grundfos.ca
www.grundfos.mx
Visit grundfos.us/pei to learn more about Department of Energy (DOE) pump energy index (PEI) requirements and PEI ratings on specific Grundfos models.

NBS
60 Hz

Page 198 of 658 ends

Grundfos Quotation System 24.1.1
Pump Performance Datasheet
Customer :

Customer ref. / PO :

Tag Number : 003
Service : 1 pump 2333gpm
Quantity : 1
Project Number / ID : 2316261
Model : NBS 080-135-6P
Stages : 1
Based on curve number : 080-135-6P-334_Std
Basic model number : -
Date last saved : 08/16/2024 1:58 PM
Operating Conditions
Flow, rated : 2,333.0 USgpm
Differential head / pressure, rated (requested) : 68.30 ft Differential head / pressure, rated (actual) : 68.36 ft Suction pressure, rated / max : 75.00 / 75.00 psi.g
NPSH available, rated : Ample
Site Supply Frequency : 60 Hz
Synchronous speed flow : 2,332.2 USgpm
Synchronous speed head : 68.37 ft
Performance
Speed, rated : 1185 rpm
Impeller diameter, rated : 13.15 in
Impeller diameter, maximum : 13.15 in
Impeller diameter, minimum : 13.15 in
Efficiency : 88.78 %
NPSH required / margin required : 12.02 / 0.00 ft
Ns (imp. eye flow) / Nss (imp. eye flow) : 2,616 / 8,024 US Units MCSF : 254.6 USgpm
Head, maximum, rated diameter : 83.11 ft
Head rise to shutoff : 21.58 %
Flow, best eff. point : 2,545.5 USgpm
Flow ratio, rated / BEP : 91.65 %
Diameter ratio (rated / max) : 100.00 %
Head ratio (rated dia / max dia) : 100.00 %
Cq/Ch/Ce/Cn [ANSI/HI 9.6.7-2010] : 1.00 / 1.00 / 1.00 / 1.00 Selection status : Acceptable
Energy Indexes
PEI (CL) : Out of scope
ER (CL) : Out of scope
Liquid
Liquid type : Cold Water
Additional liquid description :

Solids diameter, max : 0.00 in
Solids concentration, by volume : 0.00 %
Temperature, max : 68.00 deg F
Fluid density, rated / max : 1.000 / 1.000 SG
Viscosity, rated : 1.00 cP
Vapor pressure, rated : 0.34 psi.a
Material
Material selected : Cast iron / 125 Class
Pressure Data
Maximum working pressure : 111.0 psi.g
Maximum allowable working pressure : 175.0 psi.g
Maximum allowable suction pressure : 130.0 psi.g
Hydrostatic test pressure : 263.0 psi.g
Driver & Power Data (@Max density)
Motor sizing specification : Max power (non-overloading) Margin over specification : 0.00 %
Service factor : 1.15 (used)
Power, hydraulic : 40.26 hp
Rated power (based on duty point) : 45.35 hp
Max power (non-overloading) : 48.61 hp
Synchronous speed rated power : 45.34 hp
Nameplate motor rating : 50.00 hp / 37.29 kW
0 9
18 27
36 45
54 63
72 81
90 Head - ft

13.15 in
63 73 80
80 40.0 hp
MCSF
0 30
60 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
NPSHr - ft
Flow - USgpm
NPSHr

Page 199 of 658 ends

Grundfos Quotation System 24.1.1
Pump Performance Datasheet
Customer :

Customer ref. / PO :

Tag Number : 001
Service : 2 pump 5600gpm
Quantity : 1
Project Number / ID : 2316261
Model : NBS 080-135-6P
Stages : 1
Based on curve number : 080-135-6P-334_Std
Basic model number : -
Date last saved : 08/27/2024 4:30 PM
Operating Conditions
Flow, rated : 5,600.0 USgpm
Differential head / pressure, rated (requested) : 60.00 ft Differential head / pressure, rated (actual) : 60.12 ft Suction pressure, rated / max : 75.00 / 75.00 psi.g
NPSH available, rated : Ample
Site Supply Frequency : 60 Hz
Synchronous speed flow : 2,801.9 USgpm
Synchronous speed head : 60.08 ft
Performance
Speed, rated : 1185 rpm
Impeller diameter, rated : 13.15 in
Impeller diameter, maximum : 13.15 in
Impeller diameter, minimum : 13.15 in
Efficiency : 88.55 %
NPSH required / margin required : 19.68 / 0.00 ft
Ns (imp. eye flow) / Nss (imp. eye flow) : 2,616 / 8,024 US Units MCSF : 254.6 USgpm
Head, maximum, rated diameter : 83.11 ft
Head rise to shutoff : 38.24 %
Flow, best eff. point : 2,545.5 USgpm
Flow ratio, rated / BEP : 110.00 %
Diameter ratio (rated / max) : 100.00 %
Head ratio (rated dia / max dia) : 100.00 %
Cq/Ch/Ce/Cn [ANSI/HI 9.6.7-2010] : 1.00 / 1.00 / 1.00 / 1.00 Selection status : Acceptable
Energy Indexes
PEI (CL) : Out of scope
ER (CL) : Out of scope
Liquid
Liquid type : Cold Water
Additional liquid description :

Solids diameter, max : 0.00 in
Solids concentration, by volume : 0.00 %
Temperature, max : 68.00 deg F
Fluid density, rated / max : 1.000 / 1.000 SG
Viscosity, rated : 1.00 cP
Vapor pressure, rated : 0.34 psi.a
Material
Material selected : Cast iron / 125 Class
Pressure Data
Maximum working pressure : 111.0 psi.g
Maximum allowable working pressure : 175.0 psi.g
Maximum allowable suction pressure : 130.0 psi.g
Hydrostatic test pressure : 263.0 psi.g
Driver & Power Data (@Max density) (Per Pump)
Motor sizing specification : Max power (non-overloading) Margin over specification : 0.00 %
Service factor : 1.15 (used)
Power, hydraulic : 42.49 hp
Rated power (based on duty point) : 47.99 hp
Max power (non-overloading) : 48.61 hp
Synchronous speed rated power : 48.00 hp
Nameplate motor rating : 50.00 hp / 37.29 kW
0 9
18 27
36 45
54 63
72 81
90 Head - ft
(1)

13.15 in
System Curve #1
(2)
63 73 80
80 40.0 hp
MCSF
0 30
60 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 7,000 7,500 8,000 NPSHr - ft
Flow - USgpm
(2)NPSHr (1)

Page 200 of 658 ends

Grundfos Quotation System 24.1.1
Pump Performance Datasheet
Customer :

Customer ref. / PO :

Tag Number : 004
Service : 3 pump 7000gpm
Quantity : 1
Project Number / ID : 2316261
Model : NBS 080-135-6P
Stages : 1
Based on curve number : 080-135-6P-334_Std
Basic model number : -
Date last saved : 08/16/2024 1:52 PM
Operating Conditions
Flow, rated : 7,000.0 USgpm
Differential head / pressure, rated (requested) : 68.30 ft Differential head / pressure, rated (actual) : 68.35 ft Suction pressure, rated / max : 60.00 / 60.00 psi.g
NPSH available, rated : Ample
Site Supply Frequency : 60 Hz
Synchronous speed flow : 2,334.0 USgpm
Synchronous speed head : 68.34 ft
Performance
Speed, rated : 1185 rpm
Impeller diameter, rated : 13.15 in
Impeller diameter, maximum : 13.15 in
Impeller diameter, minimum : 13.15 in
Efficiency : 88.78 %
NPSH required / margin required : 12.02 / 0.00 ft
Ns (imp. eye flow) / Nss (imp. eye flow) : 2,616 / 8,024 US Units MCSF : 254.6 USgpm
Head, maximum, rated diameter : 83.11 ft
Head rise to shutoff : 21.59 %
Flow, best eff. point : 2,545.5 USgpm
Flow ratio, rated / BEP : 91.67 %
Diameter ratio (rated / max) : 100.00 %
Head ratio (rated dia / max dia) : 100.00 %
Cq/Ch/Ce/Cn [ANSI/HI 9.6.7-2010] : 1.00 / 1.00 / 1.00 / 1.00 Selection status : Acceptable
Energy Indexes
PEI (CL) : Out of scope
ER (CL) : Out of scope
Liquid
Liquid type : Cold Water
Additional liquid description :

Solids diameter, max : 0.00 in
Solids concentration, by volume : 0.00 %
Temperature, max : 68.00 deg F
Fluid density, rated / max : 1.000 / 1.000 SG
Viscosity, rated : 1.00 cP
Vapor pressure, rated : 0.34 psi.a
Material
Material selected : Cast iron / 125 Class
Pressure Data
Maximum working pressure : 95.97 psi.g
Maximum allowable working pressure : 175.0 psi.g
Maximum allowable suction pressure : 130.0 psi.g
Hydrostatic test pressure : 263.0 psi.g
Driver & Power Data (@Max density) (Per Pump)
Motor sizing specification : Max power (non-overloading) Margin over specification : 0.00 %
Service factor : 1.15 (used)
Power, hydraulic : 40.26 hp
Rated power (based on duty point) : 45.35 hp
Max power (non-overloading) : 48.61 hp
Synchronous speed rated power : 45.35 hp
Nameplate motor rating : 50.00 hp / 37.29 kW
0 9
18 27
36 45
54 63
72 81
90 Head - ft
(1)

13.15 in System Curve #1
(2) (3)
63 73 80
80 40.0 hp
MCSF
0 30
60 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 NPSHr - ft
Flow - USgpm
(2) (3)NPSHr (1)

Page 201 of 658 ends

Grundfos Quotation System 23.4.1
General Arrangement
Project name : Default Tag Number : 001
Consulting engineer : Service :

Customer : Model : NBS 080-135-6P
Customer ref. / PO : Quantity of pumps : 1
Quote Number / ID : 2082243 Quoted By (Sales Office) : Specifiers Date last saved : 01/25/2024 1:34 PM Quoted By (Sales Engineer) : Mark LaVarnway

NOT FOR CONSTRUCTION, UNLESS CERTIFIED AND REFERENCED ON ORDER Units Frame DNS DND Class A AB AG B1 B4 D D2 E G1 G2 G3 H1 H2 H6 HG1 HG2 L L4 L6 M1 M2 N1 N2 Q S1 T Weight inches 365TC 10 8 125 6.25 18.06 27.88 4.92 18.17 9.00 0.69 7.00 12.37 17.22 10.43 13.75 14.00 4.75 0.31 1.10 22.27 24.50 23.00 7.87 5.91 24.61 19.69 17.12 1.02 18.50 1,745.0 Conditions of Service Motor Data
Flow: 2,333.0 USgpm Fluid: Cold Water HP: 50 Encl: TEFC Phase: 3 Efficiency: Premium TDH: 68.00 ft Temp.: 68.00 deg F RPM: 1185 rpm Hz: 60 Voltage: 230/460 S.F.: 1.15

Page 202 of 658 ends

SUBMITTAL
Grundfos Series NBS - Split Coupled End Suction Pump
QUOTE NUMBER / ID 2082243 UNIT TAG 001 NBS 080-135-6P

MATERIALS OF CONSTRUCTION

PART MATERIAL PART MATERIAL
Rotation Options Clockwise Impeller Washer S.S., AISI-304 impeller Spring Washer Steel, AISI - 316 Base/Stand Type Steel support rail Impeller Key Steel, AISI - 316 Bushing Vesconite
Coupling Options Rigid Split Coupling Wear Ring Material None Pump Coatings Standard Paint Seal Type BQQE
Seal Material SiC/SiC/EPDM O-Rings EPDM
Casing Cast Iron, ASTM-A48, CL 35 Cover Cast Iron, ASTM-A48, CL 35 Seal Flush Options External Flush, plastic tubing Motor Stool Cast Iron, ASTM-A48, CL 30 Casing Bolts Steel, Grade 8.8 Impeller Stainless Steel, AISI-304 Impeller nut Stainless Steel, AISI-304 Shaft Stainless Steel, AISI-420 * All materials based on STANDARD configuration

Page 203 of 658 ends

Tesco Scope of Supply

Page 204 of 658 ends

Corporate Office
8440 Florin Road, Sacramento, CA 95828
P.O. Box 299007, Sacramento, CA 95829
PH: 916.395.8800 FX: 916.429.2817
File Ref. 24G115Q02.doc Page | 1 of 5
To: Bidding Contractors Quote Date: 7/17/2024
Attn: Estimators Quote No.: 24G115Q02
Re: City of Pleasanton
Turnout T-4 Booster Pump Station (July 2024 Rebid)
Bid Date: 7/19/2024
Dear Bidder:

T
hank you for your continued interest in TESCO products, services, and solutions. We are pleased to quote the following scope of work pertaining to the above -referenced project. Only the materials/services listed in the below scope are quoted in general conformance with the requirements of the applicable portions of specification sections: 13430, 13440, 13460, 13461, 13463, 13464, 17010, and 17500.

P
lease Note: TESCO’s scope as quoted herein is inclusive of the new RTU Control Panel and associated PLC/SCADA programming services only. All instrumentation (level, pressure, flow, analytical, etc.) and electrical power distribution equipment (Switchboard, Manual Transfer Switch, Motor Control Center, etc.) will be supplied by Others.

Scope of Work
Item Qty Description
TURNOUT T-4 BOOSTER PUMP STATION
1 1 Pump Station RTU Panel to include:
 Wall-Mount NEMA 4 Galvanized Steel Enclosure
 120V, 1-Phase Panel Disconnect Breaker
 Surge Arrestor
 EMI/RFI Line Filter
 UPS & Convenience Receptacles
 Uninterruptable Power Supply
 24V P
ower Supply
 TESCO L3000 PLC
▫ DC Power Supply
▫ 5-S
lot Chassis
▫ CPU Card with Ethernet & Serial Ports
▫ HDIO Cards, Terminal Boards, & Cables as required
▫ C
ompact Operator Interface with Keypad & LED Display
 T
ouchscreen OIT
 MDS SD9 900MHz Radio
▫ Yagi Directional Antenna & Lightning Arrestor
▫ Pole Mounting Kit, Weatherproofing, Cable Grounding,
Coaxial Feedline, & Ethernet Patch Cable as require
d
(A
ntenna Mast/Pole supplied & installed by Others)
 Managed Ethernet Switch with Fiber Ports
 Fiber Optic Patch Panel
 Panel Light
 Panel Ventilator
 DIN Rails, Terminal Blocks, Distribution Breakers, Fuses, Relays, Wires, Ground Bus Bar, & Nameplates/Labels as required
2 Lot Control Panel & PLC Spare Parts (Specification Section 17010-1.09) to

Page 205 of 658 ends

Quotation TESCO CONTROLS
File Ref. 24G115Q02.doc Page | 2 of 5
Item Qty Description
include:
 Surge Arrestor
 Fuses
 24V Power Supply
 Radio
 PLC Power Supply
 PLC Processor
 I/O Module
 Communication Module
 Memory Module
3 Lot Professional Services:
 Project Management
 Engineering
▫ engineered shop drawings, equipment schematics, engineered submittals, technical data, as-built documentation, and project records
 Manufacturing Services
▫ fabrication, manufacturing, assembly, equipment wiring, and factory testing
 PLC/OIT Programming
▫ Turnout T-4 L3000 PLC & local OIT program development  SCADA/HMI Programming
▫ integration into the City’s existing AVEVA (formally known as Wonderware) SCADA application
 Networking/Communications/Telemetry
▫ radio survey and communications link testing
▫ radio and managed switch configuration
 Product Startup Services
▫ product quality review, verification of product installation, product parameter adjustments, product programming, software upload/download as required, instrument/device signal spanning, product/equipment reconfiguration as required, product function checks, and product startup.
 Onsite Training
 O&M Manuals

Page 206 of 658 ends

Quotation TESCO CONTROLS
File Ref. 24G115Q02.doc Page | 3 of 5
Project Bid Clarifications
 Unless otherwise indicated by the Scope of Work above, this quote is to furnish only and does not include any trade labor, trade work, construction work, site improvement, contractor services, or any trade installation services. Any trade labor and/or related trade work shall be performed by others/contractor.  Unless otherwise indicated by the Scope of Work above, the following is not included within this quotation:
▫ Conduit, field wire, tubing, or basic trade installation materials (brackets, screws, bolts, j -box, stanchions, pull-box, etc.)
▫ Instrumentation mounting components, brackets, stanchions, sunshields, etc. ▫ Instrumentation, devices, components, or equipment not specifically identified in the above quotation. ▫ Local control stations and/or field mounted disconnects. ▫ Fiber optic patch panels, cable, splicing or terminations. ▫ Networking infrastructure or architecture modifications to existing facilities. ▫ Any 3rd party testing, harmonic testing/analysis, protective device coordination study, short -circuit analysis, or Arc-Flash Risk Assessment (AFRA) services. ▫ Electrical interconnection diagrams for equipment not furnished by TESCO . ▫ ISA process control loop diagrams.
▫ Signal loop diagrams for equipment not furnished by TESCO. ▫ Seismic Anchorage Calculations or Testing.
▫ Switchboard and Manual Transfer Switch (provided by Others). ▫ Motor Control Center (provided by Others).
▫ Instrumentation (provided by Others).
▫ Portable Generator Connection Cabinet.
▫ Intrinsic Safety Barriers.
▫ Cellular Monitoring Equipment or VPN Router.
▫ NETA Circuit Breaker Testing.
▫ Sump Pump (P-005).
▫ Flow Control Valves (FCV-001, FCV-002, & FCV-003).
▫ Suction & Discharge Manifold Pressure Transducers (Factory Installed). ▫ Fluoride Pumps.

Terms & Conditions
 Submittals:
▫ Product/Equipment Submittals: Initial equipment submittal(s) “schedule” to be provided approximately six (6) weeks after receipt of purchase order, written notice of intent, or notice to proceed. Lead-time for this “schedule” may be subject to delays i mposed by 3rd party submittal providers. Submittal “schedule” will list all project submittals and will indicate lead-times for each product/equipment submittal.

Generation of submittal(s) may be subject to availability of specified material c omponents; supply-chain constraints may impact material item selections, therefore, may impact submittal lead-times. ▫ Information Submittals: Information Submittals are dependent on the approval of Product/Equipment Submi
ttals. An updated Submittal Schedule will be provided after receiving approval o f corresponding Product/Equipment Submittal showing schedule and lead-t imes for Information Submi ttals.

Page 207 of 658 ends

Quotation TESCO CONTROLS
File Ref. 24G115Q02.doc Page | 4 of 5
 Submittals: Initial equipment submittal(s) to be provided approximately 10-12 weeks after receipt of purchase order, written notice of intent, or notice to proceed; however, g eneration of submittal(s) will b e contingent on supply-chain availability and variability for material co mponents which may impact material ite m selections affecting submittal lead-times, therefore lead-times are subject to change without notice.  Delivery: Initial s hipment(s) anticipated to commence approximately 18-26 weeks minimum after Product/ Equipment Submittal approval; however, delivery schedule(s) will be contingent on supply-chai n availability and variability for material component selections, therefore, lead-times are subject to change. Delivery schedules will be confirmed and provided after receiving Product/Equipment S ubmittals approval.

Page 208 of 658 ends

VFD Scope
3 ea ABB Variable Frequency Drives – Installed in Tesco Panel ACQ580-
ACQ580 Water/Wastewater drive - supply voltage at 480 VAC Three Phase. 69.3 Rated Output Amps (50 HP), UL (NEMA) Type 1, Frame size - R6

Page 209 of 658 ends

Bill of Material
Item Qty
1 3
2 3
3 3
Product Information
ACQ580-
ACQ580 Water/Wastewater drive - supply voltage at 480 VAC Three Phase. 69.3 Rated Output Amps (50 HP), UL (NEMA) Type 1, Frame size - R6
DPMP-06-EXT-Q
WWW cabinet mounting panel kit (DPMP-06-EXT-Q)
FENA-21-KIT
2-port Ethernet (EtherNet/IP, Modbus/TCP, PROFINET)
(FENA-21-KIT)

Page 210 of 658 ends

Submittal Schedule
Thi
s schedule includes the products supplied as part of this submittal.

Schedule Motor Data1 Drive Data
Item Qty Tag HP FLA Volts Product ID HP Amps Volts
1 3 50 460
VAC ACQ580-01-124A-4 50 69.3 480
VAC
Notes: 1. AC motor data is per National Electrical Code Table 430.250 for typical motors used in most applications. It is provided as typical data only. DC motor data is per typical industry standards.

Actual motor data may vary

Page 211 of 658 ends

Clarifications and Exceptions to Specification and
Terms
T
he comments and clarifications that follow are offered in response to the specification items identified below. Please refer to the specification section and paragraph indicated.

Any contract executed based on this proposal is done based acceptance of the exceptions noted herein.

Item ID Title Clarifications and Exceptions
1 50 Deg C max
ambient rating
Proposed drive is 100HP with rated output amps derated
10% for 50°C ambient temperature.

Page 212 of 658 ends

Submittal Schedule Details for
Item Tag / Equipment ID Product ID
1 ACQ580-01-124A-4
Item Description
Input Voltage: 480 VAC Three Phase
Rated Output Current: 111.6A
Enclosure: UL (NEMA) Type 1
Nominal Horsepower: 75 HP
Frame Size: R6
Input Disconnecting Means:

Input Impedance: 5%
Short Circuit Current Rating: 100 kA with fuses
Communication Protocols: Modbus RTU
Other Options:

Drive Input Fuse Ratings
Fuse Class Amps (600 V)
JJS-200 200
Wire Size Capacities of Power Terminals
Input Wiring Output Wiring Ground Wiring
4 AWG (25 mm^2)

22.1 lbf-ft (30 Nm)
4 AWG (25 mm^2)

22.1 ft-lb (30 N-m)
350 MCM (185 mm^2)

7.2 ft-lb (9.8 N-m)
Dimensions and Weights
Height
in
(mm)
Width
in
(mm)
Depth
in
(mm)
Weight
lbs
(kg)

28.6 (727)

9.9 (252)

14.5 (369)
93 (42.4)
Heat Dissipation & Airflow Requirements
Power Losses Airflow
BTU/Hr Watts CFM CM/Hr
5,033 1476 256 435

Page 213 of 658 ends

Page 214 of 658 ends

Engineering Data Summary
Replacement Fuses
Drive input fuses are recommended to disconnect the drive from power in the event that a component fails in the drive’s power circuitry. Recommended drive input fuse specifications are listed in the Submittal Schedule Details and in the Fuse Ratings Table. Fuse rating information is provided for customer reference.

Item Catalog Number
Drive Input Fuse Ratings
Amps (600V) Bussmann Type
1 ACQ580-01-124A-4 200 JJS-200
Terminal Sizes / Cable Connection Requirements
Power and motor cable terminal sizes and connection requirements are shown in the Submittal Schedule Details and in the Terminal Sizes / Cable Connection Requirements Table. The information provided below is for connections to input power and motor cables. These connections may be made to an input circuit breaker or disconnect switch, a motor terminal block, overload relay, and/or directly to bus bars and ground lugs. The table also lists torque that should be applied when tightening terminals and spacing requirements where multiple mounting holes are provided in the bus bar.

Item Catalog Number Input Wiring Output Wiring Ground
Wiring
1 ACQ580-01-124A-4
4 AWG (25
mm^2)

22.1 lbf-ft (30
Nm)
4 AWG (25
mm^2)

22.1 ft-lb (30 N-
m)
350 MCM (185
mm^2)

7.2 ft-lb (9.8 N-
m)
Heat Dissipation Requirements
The cooling air entering the drive must be clean and free from corrosive materials. The Submittal Schedule Details and the Heat Dissipation Requirements table below give the heat dissipated into the hot air exhausted from the drives. If the drives are installed in a confined space, the heat must be removed from the area by ventilation or air conditioning equipment.

Item Catalog Number Watts BTU/Hr
1 ACQ580-01-124A-4 1476 5,033
Dimensions and Weights
Dimensions and weights of the drives provided are given in the Submittal Schedule Details and in the Dimensions and Weights Table. The table also lists the applicable dimension drawings that include additional detail. Dimension drawings may be provided in the back of this submittal.

Item Catalog Number
Height
mm
(in)
Width
mm
(in)
Depth
mm
(in)
Weight
kg
(lbs)
1 ACQ580-01-124A-4 727
(28.63)
252
(9.93)
369
(14.53)

42.4 (94)

Free Space Requirements, Standalone
Free Space Requirements for standalone mounting.

Item Catalog Number
Standalone,
Above
mm
(in)
Standalone,
Below
mm
(in)
Standalone,
Sides
mm
(in)
1 ACQ580-01-124A-4 155
(6.11)
300
(11.82)
150
(5.91)

Page 215 of 658 ends

Free Space Requirements, Side by Side
Free Space Requirements for side by side mounting.

Item Catalog Number
Side by Side,
Above
mm
(in)
Side by Side,
Below
mm
(in)
Side by Side,
Sides
mm
(in)
1 ACQ580-01-124A-4 200
(7.88)
300
(11.82)
0 (0.01)
Product Short Circuit Current Rating
Short circuit ratings shown below are as show on the device rating label.

Item Catalog Number Short Circuit Current Rating
1 ACQ580-01-124A-4 100 kA with fuses

Page 216 of 658 ends

ACQ580 Product overview

The ACQ580 is the latest addition to the ABB drives portfolio. This robust, compact and energy efficient drive is designed for securing the flow of water and wastewater in your pumping system.

Connection to power and motors is simple. Embedded water and wastewater application features create an intuitive environment for users with dedicated pumping features that enhance the performance of the pumping system.

Secure the flow
The ACQ580 variable frequency drive (VFD) delivers innovative pumping features for the water and wastewater industry. Primary Setting menu and assistants simplify commissioning, setup, and daily control.

Embedded water and wastewater application features create an intuitive environment for users and dedicated pumping features enhance the performance of the pumping system.

Speak the language
Leveraging clear water-industry terminology, the control panel enables operators to efficiently interface with the drives in terms they use every day. The optional Bluetooth control panel allows for wireless commissioning and monitoring.

Feel the Power
ACQ580 drives are designed for customers who value reliability, high quality, and robustness. The embedded pump functionality, the ACQ580 keeps the pump system operating optimally and efficiently. Product features, such as coated boards and optional compact UL Type 12 enclosures, make the ACQ580 suitable for harsh conditions.

All ACQ580 drives are current-rated devices. The HP ratings provided are for reference only and are based on typical 4-pole motors at nominal voltages (NEC Table 430.250). If full motor torque is required, ensure the drive has a continuous current rating equal to, or greater than the full load amp rating of the motor.

The ACQ580 is available in both normal and heavy-duty ratings. Normal duty ratings provide a 110% short term overload rating for one minute every ten minutes. Heavy duty ratings provide a 150% short term overload rating for one minute every ten minutes. All ACQ580 drives and their protective functions are thoroughly tested for optimal performance.

Page 217 of 658 ends

A
CQ580 Software (Firmware) feature overview
Built in pump application control software
Intelligent multi-pump control
Pump cleaning
Level control
Sensorless flow calculations
Min/max flow and pressure protection
Dry pump protection
Quick ramps
Cavitation detection and control
Soft pipe filling
Motor disconnect detection
Communication fail functionality
Adaptive programming
Application features
Sleep boost
Auto change
Flow protection
Pressure protection
Inlet pressure protection
Maximum pressure protection
Minimum pressure protection
Pump priority
Two independent adjustable accel/decel ramp
Two or three wire start/stop control
Motor preheating
PID controllers for motor and process
Motor flying start Process PID control
Coast to stop Ramp to stop
Real-time clock (scheduling)
Run permissives
Start interlock delayed start
PID controller parameters
PID sleep / wake-up
Set point controllers (process and external)
Dry run protection
Startup assistants
Primary settings for ease of use
Sophisticated process control
Energy optimizer and calculator
Diagnostic assistant
Built-in and stand-alone process control
PID loop
Load profile
Motor control features
Scaler (V/HZ) and vector control Motor
ID run
U/F ratio
− Linear
− Squared
Energy optimization IR compensation
Slip compensation
Critical frequency lockout bands
Flux braking
Protective Functions
AI Supervision
Overvoltage
Undervoltage
Drive temperature
Earth (ground) fault detection
Emergency stop
Local control loss detection
Motor phase loss detection
Overcurrent protection
Overspeed protection
Safe Torque Off detection
Short circuit
Stall protection
Supply phase loss detection
Swapped supply and motor cabling
Motor overtemperature protection (UL508C)
Input and Output switch supervision
Underload supervision
Overload supervision
Loss of reference
Panel loss
External events
Current limit regulator
Transient/ surge protections (MOV and Choke)
Communication Protocols
Standard Modbus RTU (EIA-485)
Available optional protocols:
− Ethernet I/P
− DeviceNet
− Modbus TCP
− Profibus-DP
− PROFINET

Page 218 of 658 ends

Control panel features

The ACQ580 Assistant Control Panel features:

− Intuitive to operate interface
− Hand-Off-Auto operation
− First start assistant
− Primary Settings menu to ease drive
commissioning
− Real-time clock
− Diagnostic and Maintenance functions
− Full graphic display, including chart, graph,
meter options
− 21 editable home views
− USB interface for PC and tool connection as
standard
− Parameters are alpha-numeric
− Supports 14 languages as standard
− Dedicated help key
− Four user sets
− Parameters stored in control panel memory
for later transfer to other drives or for backup
of a particular system.
− Backup/restore (read/write) of parameters
and motor data
− Automatic back-up 2 hours after parameter
change
− Modified parameter display
− Creates unique short menu
− Shows parameters that differ from default

Operating data display:

Output frequency (Hz)
Speed (RPM)
Motor current (A)
Calculated % motor torque
Calculated motor power (kW)
DC bus voltage (V)
Output voltage (V)
Heatsink temperature
Elapsed time meter (resettable)
kWh (resettable)
Input / Output terminal monitor
PID actual value (feedback)
Error fault text
Warning text
Three scalable process variable displays
Real-time clock
User-definable engineering units
Modified parameter display
Create unique short menu
Show parameters that differ from default

Standard Control Panel Bluetooth Control Panel

Page 219 of 658 ends

Co
ntrol terminals
Default I/O connections
This is the default configuration of control connections for water and wastewater applications.

Page 220 of 658 ends

Technical specifications

Page 221 of 658 ends

Technical specifications

Page 222 of 658 ends

80960409
14 Item
1 Part Number
ACQ580-01-124A-4
Customer Designation
{3AXD10000404024_3.PNG}

Page 223 of 658 ends

80960409
15 Item
1 Part Number
ACQ580-01-124A-4
Customer Designation

{3AXD50000009111.PNG}

Page 224 of 658 ends

1 Compatibility and delivery check
Contents of the package: panel holder, control cable, mounting screws (QTY 2). Check that all items are present and there are no signs of damage. Compatible control panels are: ACH-AP-H, ACH-AP-W, ACS-AP-S, ACS-AP-I, ACS-BP-S, and ACS-AP-W.

Installation instructions

1. Cut a hole in the cabinet door using the template on the next page as a guide.

2. Insert panel holder into the cutout.

3. Secure panel holder to door using supplied hardware. Torque to 1,5 N•m (13.3 in-lbs).

4. Install control cable into the panel holder. The control cable has a standard and special RJ45 connector.

Feed the standard RJ45 connector through the panel holder and snap the special RJ45 connector into the panel holder.

5. Attach the control panel.

6. Secure the control cable in a manner to eliminate mechanical stress to the panel holder and control cable.

7. Connect the standard RJ45 end of the cable to the appropriate connector. See the drive hardware manual.1 2 3
4 Mounting Screw

1.5 N•m max
5 Special RJ45 connector end
Options for ABB drives, converters and inverters
Installation guide
DPMP-06/07 mounting platform for control panels

Page 225 of 658 ends

2 Dimension drawings
Cabinet door thickness: 1.5…3 mm (0.055…0.120 in)
80 (3.15)
48 (1.89) 12,5 (0.49)
7,9 (0.31)121,1 (4.77)
96 (3.78)
182 (7.17) 26 (1.02)
Technical data
Degree of protection: UL Type 12 when panel is mounted. UL open when panel is not mounted.

Cable: 3m, Cat5e, UTP. Kit is listed under UL file #E101649 Vol. 1, Section 10. 81 (3.19)
2x 7,7
(0.30)
5,7 (0.22)160 (6.30)13,3 (0.52)
141 (5.55)
Not to Scale
Actu
al Size
Actua
l Size
http://www.abb.com/drives
http://www.abb.com/solar
http://www.abb.com/windpower
3AXD50000289561 RevC EN 2018-12-17
 2018 ABB Oy. All Rights Reserved.

Page 226 of 658 ends

ACQ580-EOPB07U-EN REVA
Effective: 04/01/2020
—

NETWORK COMMUNICATIONS
Ethernet card, FENA-21
Designed to provide robust Ethernet connectivity the FENA 21 card installs easily and quickly into your drive.

Supporting multiple Ethernet protocols, alongside the integrated switch, you have a solution that offers flexibility for your installations with less reliance on external network equipment.

T
he FENA-21 network adapter modules offer connectivity on EtherNet based networks using EtherNet/IP, ProfiNet or Modbus TCP protocols.

I
n EtherNet/IP mode the FENA-21 adapter module acts as a server on an EtherNet/IP network with support for the ODVA AC/DC drive, ABB Drives and Transparent profiles.
• T
wo simultaneous EtherNet/IP connections are supported so that two clients can be connected to the adapter module at a time.
• The two ports of FENA-21 give the possibility to use star topology, ring topology or just an integrated Ethernet switch. This interface module can be implemented on a Device Level Ring (DLR), without the requirement to use a DLR external switch.

I
n Modbus TCP mode the FENA-21 module acts as a Modbus/ TCP server with support for ABB drives and Transparent profiles. Common read/write single and multiple register function codes are supported.

I
n ProfiNet mode the FENA-21 module acts as a ProfiNet I/O device with support for PROFIdrive, ABB Drives, Transparent 16bit, Transparent 32-bit profiles, and PROFIdrive positioning mode for ACSM1 Drives.

T
hrough the adapter module you can:
• give control commands to the drive (for example, Start, Stop, Run enable) • feed a motor speed or torque reference to the drive
• give a process actual value or a process reference to the PID controller of the drive • read status information and actual values from the drive • reset a drive fault
• read/write parameters of the drive
• connect Drive composer pro tool
•
The FENA-21 module supports 10 Mbit/s and 100 Mbit/s data transfer rates and automatically detects the data transfer rate used in the network and uses Network services: HTTP, DHCP, ABB or Netconfig. The adapter module supports both explicit messaging where each attribute of a class is set individually and implicit messaging using input and output instances.

D
rive Composer Pro software can be used with FENA-21 to perform a start-up or maintenance for ABB common architecture drives.

Page 227 of 658 ends

ACQ580-EOPB07U-EN REVA
Effective: 04/01/2020
—
Layout and interface

1. Lock

2. Mounting screw (grounding screw)

3. RJ-45 connector [X1] to Ethernet

4. RJ-45 connector [X2] for chaining another module

5. Diagnostic LEDs

6. MAC address
Diagnostic LEDs
Name Color Function
HOST Flashing green Establishing communication to host
Green Connection to host OK
Flashing red Communication to host lost temporarily
Flashing orange, alternating
with the MODULE flashing
orange
Internal file system error. The error may be cleared by cycling drive power. If the error persists, contact your local ABB representative.

MODULE Off There is no power applied to the device.

Green Device is operating in a normal condition.

Flashing green Device needs commissioning due to configuration missing, incomplete or incorrect. The device may be in the Standby state.

This may be caused by the adapter waiting for a response from a DHCP server or Duplicate Address Detection to complete.

Flashing red Ethernet interface is disabled. Duplicate Address Detection may have detected a duplicate address. Check the IP configuration and either initiate a Fieldbus Adapter parameter refresh or cycle power to the drive.

Flashing red-green Device is in Self Test.

Flashing orange, alternating
with the HOST flashing
orange
Internal file system error. The error may be cleared by cycling drive power. If the error persists, contact your local ABB representative.

NETWORK /
NET
Off "Device is not on-line.
• The device has not completed the Duplicate Address Detection yet.
• The device may not be powered; look at the MODULE status LED."
Flashing green "Device is on-line but has no connections in the established state. • The device has passed Duplicate Address Detection, is on- line, but has no established connections to other nodes."
Green Device is on-line and has connections in the established state.

Flashing red One or more I/O connections are in the Timed-out state.

Red Failed communication device. The device has detected an error that has rendered it incapable of communicating on the network (Duplicate MAC ID or IP address detected).

Page 228 of 658 ends

Project Team
Shape Inc – Packager and Supplier 40 years experience
Tesco Controls – Instrumenta�on, Controls, Programmer
VSS Inc/MCI-Flowtronex – Skid Manufacturer 40years experience

Page 229 of 658 ends

Page 1 of 15 ends

Item #15

CITY COUNCIL AGENDA REPORT

November 19, 2024
Finance

TITLE: ADOPT A RESOLUTION TO ACCEPT THE FY 2023/24 YEAR-END OPERATING

BUDGET REPORT, APPROVE BUDGET AMENDMENTS IN MULTIPLE FUNDS,

AND DESIGNATE THE GENERAL FUND BALANCE

SUMMARY
This report presents the results of City operations for the FY 2023/24 Operating Budget (Budget) and recommends adjustments and designations of the General Fund reserves. This information is unaudited. The audited information will be included in the City’s Annual Comprehensive Financial Report (ACFR) and will be presented to the City Council once the City’s independent auditor has issued its opinion on the ACFR, and it has been reviewed by the Audit Committee; this is expected to occur in December 2024 or January 2025. If there are any differences in the financial information presented in this report and the ACFR as a result of the audit, those changes will be highlighted at the time the ACFR is presented to the City Council for acceptance.

The FY 2023/24 total actual General Fund revenue is $151.8 million, which is 0.7 percent lower compared to the FY 2022/23 actual revenue of $152.7 million, mostly due to one-time, federal stimulus funding from the American Rescue Plan Act of 2021 no longer being available.

For recurring revenues, the City’s largest revenue source - property tax - increased by 4.8 percent, while the second largest revenue source - sales tax - decreased by 8.5 percent.

On the expenditure side, the FY 2023/24 actual total is $142.5 million, which is 6.7 percent higher compared to the FY 2022/23 actual expenditure of $133.5 million. This increase was mostly due to higher personnel, contract service, utility, and insurance costs. However, it must be noted that the overall actual expenditure total was $5.5 million below the FY 2023/24 expenditure budget of $148.0 million due to staff implementing various cost-saving measures, including freezing of select vacant positions, controlling contract service costs whenever feasible, not starting any new services and programs funded by the General Fund, delaying purchases of non-critical vehicles and equipment, and reducing staff travel and training expenses. For full details on these cost-saving measures, please refer to the City Budget Update agenda report presented to the City Council at its September 17, 2024 meeting.

As discussed at the September 17 meeting, the City faces significant fiscal challenges in both the operating and capital budgets as highlighted below. Limited available resources from FY 2023/24 will not be able to address these funding gaps. These fiscal challenges must be continuously addressed going forward, starting with the FY 2025/26 - FY 2026/27 biennial budget development process.
• Forecasted General Fund structural deficit:
o Insufficient revenues to cover all funding needs
o Insufficient funding for many program areas

Page 230 of 658 ends

Page 2 of 15 ends

o Approximately $13 million in projected average annual deficit o Approximately $22 million in projected average annual deficit (recession scenario)
• Significant infrastructure funding gap
o Approximately $900 million for both General Fund and Enterprise Funds over 10 years
• Unfunded retiree medical and pension liabilities
o Over $200 million.

RECOMMENDATION
Adopt a resolution to accept the FY 2023/24 Year-End Operating Budget report, approve budget amendments in multiple funds, and designate the June 30, 2024 General Fund balance.

BACKGROUND
Annually, staff presents the year-end financial report (Report) to the City Council for approval.

The Report summarizes the actual results of the financial activities for the fiscal year and details changes in reserves and recommended budget amendments or adjustments.

Development of the City’s ACFR is still in progress; therefore, the financial information included in this Report is based on unaudited figures. The audited information will be presented to the City Council in the ACFR once the City’s independent auditor has issued its opinion and the ACFR has been reviewed by the Audit Committee. This is expected to occur in December 2024 or January 2025. Any changes to the information presented in this Report as a result of the audit will be brought to the City Council’s attention at that time.

DISCUSSION
The following discussion addresses the General Fund, Enterprise Funds, and Internal Services Funds, examining the amended budget versus actuals for FY 2023/24. The amended budget is the original budget plus all budget amendments approved by the City Council through June 30, 2024.

General Fund
Table 1 below summarizes the FY 2023/24 General Fund revenues, net transfers, expenditures, and year-end budget adjustments. Actual revenues were greater than the amended budget by $5.3 million or 3.6 percent. This excludes a net unrealized investment adjustment of approximately $3.0 million in FY 2023/24. Transfers in and out (net transfers) were $0.1 million less than the amended budget. Actual expenditures were $5.5 million or 3.7 percent less than the amended budget. A detailed explanation of the amended budget versus actuals is included in Tables 2, 3, 4, and 5 in this Report.

It should be noted that any investment gain or loss is not realized as the City intends to hold its securities until maturity. However, the Governmental Accounting Standards Board (GASB) requires reporting of unrealized investment or fair market value adjustment in the ACFR.

Additionally, based on new GASB implementations related to leases and subscription-based information technology arrangements (SBITAs), required adjustments resulted in actual revenue and expenditure numbers both increasing by approximately $1.5 million and $2.1

Page 231 of 658 ends

Page 3 of 15 ends

million, respectively.

It should also be noted the City fully spent $8.6 million of funding through the American Rescue Plan Act of 2021 on various General Fund operations, including public safety, community services, operations services, and economic development in FY 2021/22 and FY 2022/23. With this one-time federal stimulus funding no longer available in FY 2023/24, the City’s overall revenue numbers were impacted. A one-time $2.0 million transfer from the Rainy Day Fund, as well as $0.9 million in program reserves for Crisis Response, COVID Response, and Strategic Plan Implementation were used to fund services and programs to balance the General Fund budget.

The City budgets revenues and expenditures conservatively to ensure resources are available to cover expenditures, as a significant portion of the City’s General Fund revenue is not received until the third and fourth quarters of the fiscal year, such as business license tax, property tax, and sales tax. Notably, the City’s fiscal policies and practices impact borrowing costs for debt financing. In addition to financial results, rating agencies favorably view proactive long-term financial planning and conservative budgeting practices.

While a balanced budget is required to be achieved every year, many critical funding needs are omitted from the budget due to limited resources. As such, when one-time resources become available, some of the funding gaps are reduced/filled to reduce future financial burden. For FY 2023/24, staff recommends allocating available one-time resources toward multiple funds that either have negative or inadequate fund balances.

Table 1. General Fund Amended Budget to Actuals and Budget Amendments

As mentioned above, the City has several ongoing funding needs that, in most years, either do not get funded or are only partially funded due to financial constraints; FY 2023/24 was no exception. Staff recommends a series of one-time adjustments, including transfers totaling $7.9 million to various funds to address a negative fund balance issue and rebuild the Rainy Day Fund reserve for capital deferred maintenance needs, as well as restoring reserves in multiple Repair & Replacement funds and Insurance funds that are either already negative or

Page 232 of 658 ends

Page 4 of 15 ends

projected to run out of funds in the near future without supplemental contributions. See Table 2 below. These funds may also help address anticipated funding needs for replacement and/or upgrades of various aging equipment, facilities, and information systems critical for City operations.

In particular, the City’s Storm Drain service has a major funding issue with its operating deficit of greater than $1.0 million annually. The General Fund has been providing the necessary subsidy to close this funding gap each year; staff will explore options to address this funding issue and present recommended actions at a later date.

In summary, these proposed allocations help to strengthen the General Fund reserve, advance the City Council's and the community’s strategic goals, and address funding needs in the City’s Storm Drain, Insurance, and Repair & Replacement Programs. Additionally, one- time resources in the Livermore-Pleasanton Fire Department (LPFD) budget based on FY 2023/24 actuals are recommended to be used to increase contributions to the LPFD’s Workers’ Compensation Fund and Equipment Reserve Funds to reduce future liabilities and to set aside additional funding needed for the new station alerting system and radio replacement costs.

Table 2. Proposed General Fund Budget Amendments

General Fund Revenues. Actual General Fund revenues received were greater than the amended budget by approximately $5.3 million or 3.6 percent greater than the amended budget. As mentioned previously, FY 2023/24 total revenue was 0.7 percent less than the FY 2022/23 total. Table 3 below presents the major revenue categories with a comparison of the amended budget versus actual revenues, as well as the variance to the amended budget.

Table 3. General Fund Revenues – Amended Budget vs. Actual

Page 233 of 658 ends

Page 5 of 15 ends

Property Tax revenue is the largest revenue source for the General Fund, accounting for 59.5 percent of total revenues. In FY 2023/24 actual property tax collections, including all categories of property related taxes, were approximately $90.2 million compared to an estimate of $90.1 million in the amended budget, which was $0.1 million or 0.1 percent higher than the amended budget. Secured property tax, which is the largest component of the overall Property Tax revenue, and delinquent tax were lower than budget by about $1.3 million and $0.1 million, respectively. In comparison, unsecured property tax and supplemental assessment tax were higher than budget by $0.7 million and $0.8 million, respectively.

Compared to FY 2022/23, $90.2 million collected in FY 2023/24 represents an increase of 4.8 percent.

Sales Tax revenue is the second largest revenue source for the General Fund, accounting for

15.8 percent of the total revenues. FY 2023/24 actual sales tax collections were approximately $24.0 million compared to an estimate of $24.5 million in the amended budget. This $0.5 million or 2.3 percent decrease reflects that several sales tax categories, including autos and transportation and general consumer goods, did not perform as expected. Compared to FY 2022/23, $24.0 million collected in FY 2023/24 represents a decrease of 8.5 percent.

Business License Tax revenue was budgeted at $5.3 million, and actual collections were $5.8 million or $0.5 million higher than the amended budget as a result of new licenses and greater gross receipts than expected. Some Business License Taxes collected in FY 2023/24 were related to various one-time construction contracts and other professional services. As such, a more modest level of growth is expected in future years. Compared to FY 2022/23, $5.8 million collected in FY 2023/24 represents a decrease of 0.9 percent.

Actual Transient Occupancy Tax (TOT) collected was approximately $0.7 million higher compared to a budgeted estimate of $4.5 million in the amended budget as a result of increased business travel activities in the Tri-Valley region. While TOT revenues continue to increase from the COVID-19 low of $2.0 million in FY 2020/21, $5.3 million collected in FY 2023/24 is still significantly lower than the high of $6.5 million achieved in FY 2018/19.

Development Services Fee revenues were approximately $0.5 million higher compared to an estimate of $4.5 million in the amended budget mainly due to actual plan check fees collected coming in about $0.4 million higher than budget. Compared to FY 2022/23, $5.0 million collected in FY 2023/24 represents a sizable decrease of 21.5 percent.

Actual Recreation Fee revenues were approximately $0.1 million higher than the estimated $4.6 million in the amended budget, as the demand for recreation programs continues to

Page 234 of 658 ends

Page 6 of 15 ends

increase every year after the COVID-19 low. Compared to FY 2022/23, $4.7 million collected in FY 2023/24 represents an increase of 11.1 percent.

It should be noted that Other Revenues excludes an unrealized investment gain of $3.0 million. However, it includes approximately $1.5 million in GASB adjustments related to the City’s leases and SBITAs, approximately $0.5 million higher than budget in interfund reimbursement revenues, and almost $0.4 million in federal grant revenue administered through the California Office of Emergency Services for COVID reimbursement. Year-over- year revenue decreased by 17.9 percent, mainly due to the phase-out of federal stimulus funds.

General Fund Expenditures. Actual General Fund expenditures incurred were less than the amended budget by $5.5 million or 3.7 percent. Table 4 below shows the major expenditure categories, comparing the amended budget against actual expenditures.

Table 4. General Fund Expenditures – Amended Budget vs. Actual

The $3.6 million savings in Personnel costs is primarily due to greater than anticipated levels of vacancies in several departments, including Police, Fire, Public Works, Finance, and Library & Recreation. Given the City’s current fiscal landscape, staff also utilized cost-saving measures to keep some positions vacant as appropriate.

Actual expenditures in the Transportation and Training category exceeded its amended budget slightly mainly due to higher fuel costs, as well as higher vehicle repair and maintenance costs, totaling approximately $0.3 million in additional costs. These increases were offset by staff utilizing cost-saving measures to reduce travel and training expenditures whenever possible, resulting in $0.2 million in savings.

The $0.2 million savings in the Repairs and Maintenance category is mostly due to reduced repair contract expenditures.

The $3.6 million savings in the Materials, Supplies and Services category is the result of the following over and under expenditures: approximately $2.0 million in savings from various contractual services, and approximately $2.2 million in savings from various supplies and materials accounts. These are offset by overspending in other areas, including approximately $0.4 million in phone, computer equipment and software costs, $0.2 million for interfund expenses related to the Storm Drain operation, and $0.2 million for temporary personnel and recruitment service expenses.

The $1.9 million in overspending in Other Expenditures is mostly due to the aforementioned

Page 235 of 658 ends

Page 7 of 15 ends

GASB-related adjustments associated with the City’s leases and SBITAs.

Transfer of Funds. As shown in Table 5 below, actual net General Fund transfers were less than the amended budget by $0.1 million, mostly due to greater than anticipated subsidy to the Water and Sewer Funds for their senior and low-income household discounts and greater subsidy to the Transit Fund for its operation.

Table 5. Transfers In and Transfers Out - Amended Budget vs. Actual

Page 236 of 658 ends

Page 8 of 15 ends

General Fund Reserves. Table 6 below provides the breakdown of all the different reserves in the General Fund and recommended adjustments. As detailed in Table 2, transfers totaling $7.9 million to various funds are recommended. The remaining funds are recommended to be kept in the General Fund to increase its Unrestricted General Fund Reserve to $32.4 million, which is equivalent to 21.1 percent of the FY 2024/25 Mid-Term General Fund expenditure budget; 20.0 percent is the recommended target level per the City’s Reserve Policy, adopted by Council on June 6, 2023. Overall, the total General Fund reserves, including program and restricted reserves, will be approximately $53.9 million.

Table 6. General Fund – Fund Balance

Enterprise Funds
The City currently has six Enterprise Funds:
▪ Water/Recycled Water O&M Fund
▪ Sewer O&M Fund
▪ Callippe Preserve Golf Course Fund
▪ Storm Drain O&M Fund
▪ Paratransit Fund
▪ Cemetery Fund

The Operating Budget only includes the Operations & Maintenance (O&M) and debt service expenses of these enterprises. Capital improvements and replacements for the Water, Sewer and Storm Drain funds are accounted for in the Capital Improvement Program (CIP).

The financial results of the CIP are presented to the City Council in a separate report.

Each Enterprise Fund should generate adequate revenues to fully cover both operating and supplemental costs to maintain and update its facilities and infrastructure. However, both Storm Drain and Cemetery operations currently do not generate adequate revenues and receive subsidies from the General Fund as a result. Staff is exploring options to address this funding issue and will present recommendations to the City Council at a later date.

Water and Sewer Operating Funds
Water/Recycled Water Operations and Maintenance (O&M) Fund. As shown in Table 7

Page 237 of 658 ends

Page 9 of 15 ends

below, the Water Operating Fund ended FY 2023/24 with an operating fund balance of $7.5 million, which equals 20.9 percent of the Water and Recycled Water O&M Fund’s FY 2024/25 expenditure budget. The operating reserve policy adopted by the City Council on June 6, 2023, requires reserves equal to between 30.0 - 40.0 percent of operating expenses with a target of 35.0 percent, so the current 20.9 percent reserve level is significantly below the recommended target.

On November 7, 2023, the City Council approved a rate increase for the following two years.

The first increase was effective in January 2024, and the next increase will be effective January 2025. This increase will enable the City to continue maintaining and providing high quality Water/Recycled Water services and help replenish the reserve over time. The City will need to explore various debt financing options in the near future to address capital projects associated with potential new wells to mitigate PFAS impacts and to advance projects identified as necessary in the Water System Management Plan. Working toward a more financially sound position with adequate reserves will ensure the City can qualify for the most favorable financing options with the lowest borrowing rates.

While new water source options are being explored, the City has been proactively working to address the near-term water capacity issues and identified necessary infrastructure improvement projects. To fund these improvements, the City Council approved the execution of a $19.0 million water revenue bond issuance at its May 7, 2024 meeting, and the sale was finalized in June 2024. While the Water & Recycled Water Operating Fund’s reserve level was not ideal, the Council-approved rate increases, as well as commitment from the City to continue to proactively address the water program, allowed the City to receive a favorable ‘AA’ bond rating.

Water revenues were approximately $0.3 million or 0.9 percent less than the estimate included in the amended budget. While water revenues were higher by $0.4 million, recycled water revenues were lower by $0.7 million compared to the budget. On the expenditure side, water purchase costs from Zone 7 were approximately $0.1 million more than budgeted in FY 2023/24. Other operating expenses were also higher by about $0.4 million than budget, largely due to higher supplies and equipment costs.

It should be noted the positive net income of approximately $0.1 million was only possible due to one-time transfers from both Water Capital and Recycled Water Capital Funds totaling $2.7 million. Without these non-traditional transfers, the Water & Recycled Water Operating Funds would be looking at a significant deficit of approximately $2.6 million for FY 2023/24.

Additionally, each operating fund would normally contribute to its corresponding capital fund for various critical infrastructure repair and improvement projects, so the $2.6 million deficit would be much higher.

Table 7. Water/Recycled Water O&M Funds – Amended Budget vs. Actual

Page 238 of 658 ends

Page 10 of 15 ends

Sewer Operations and Maintenance (O & M) Funds. As shown in Table 8 below, the Sewer Operating Fund ended FY 2023/24 with an operating fund balance of approximately $8.7 million, which equals 48.2 percent of the Sewer O&M Fund’s FY 2024/25 expenditure budget.

The operating reserve policy adopted by the City Council on June 6, 2023, requires reserves equal to between 30.0 - 40.0 percent of operating expenses with a target of 35.0 percent.

While operating reserves exceed the maximum required reserve level, a series of adjustments were made in developing the FY 2023/24 and FY 2024/25 Operating Budget that involved making one-time contribution of $1.0 million from the Sewer Capital Fund to cover operating costs in order to reduce the projected deficit. During the fiscal year, staff also worked to contain costs in anticipation of the budget challenges that resulted in $1.1 million positive net income or $0.1 million without the $1.0 million one-time contribution from the Sewer Capital Fund.

Sewer revenues were approximately $0.5 million or 2.9 percent higher than an estimate included in the amended budget due to higher than anticipated utilization of the sewer services for the year. On the expenditure side, actuals were approximately $1.1 million less than the amended budget, mostly due to about $2.1 million less in expenditures for Repair and Replacement activities. These savings were offset with higher sewer treatment fees paid to Dublin San Ramon Service District (DSRSD) by approximately $0.4 million due to higher than estimated utilization of sewer treatment services and increased costs related to various repair and maintenance contracts to keep the services running.

Table 8. Sewer O&M Funds – Amended Budget vs. Actual

Page 239 of 658 ends

Page 11 of 15 ends

Storm Drain Operating Fund
As shown in Table 9 below, the Storm Drain Operating Fund ended the year with a fund balance of approximately $0.6 million. While this program ended FY 2023/24 with a net income of approximately $0.3 million, this was possible with the General Fund subsidy and one-time transfer from the Storm Drain Capital Fund totaling almost $1.0 million.

The Storm Drain Fund has been operating at a major funding deficit in recent years due to revenues generated from Urban Runoff Fees hovering around $0.5 million annually, while operating costs have been going up each year. An annual subsidy from the General Fund has been used to cover some of the operating costs. However, with the deficit growing each year, the level of subsidy has also been growing. This approach is not sustainable. As described earlier in this report, staff recommends an additional, one-time transfer of $0.8 million from the General Fund to address the ongoing operating deficit to prevent the fund balance from becoming negative again. Staff will explore options to solve the funding issue and present recommendations to the City Council at a later date.

Table 9. Storm Drain Operating Fund – Amended Budget vs. Actual

Cemetery Fund
As shown in Table 10 below, the Cemetery Fund ended the year with a fund balance of less than $0.1 million. A one-time adjustment related to burial plot deposits from prior fiscal years and properly categorizing them as future revenues resulted in the overall revenue number being in negative. On the expenditure side, while the overall expenses came in slightly less than budget, the cost of cemetery maintenance based on the current contract continues to go up each year.

The Cemetery Fund is another Enterprise Fund that is currently operating at a major deficit largely due to the cost of cemetery maintenance contract increasing each year while revenues generated from sales of burial plots have remained stagnant in recent years. With burial plot sales and corresponding expenditures related to burials, both of which are challenging to predict from year to year, the ongoing operating deficit is expected to continue, and the fund balance will run out as early as FY 2024/25. The General Fund budget includes a transfer of $50,000 to the Cemetery Fund, and this subsidy will likely need to be increased in future years. Staff is exploring opportunities to increase revenue streams and will present recommendations to the City Council at a future date.

Table 10. Cemetery Fund– Amended Budget vs. Actual

Page 240 of 658 ends

Page 12 of 15 ends

Internal Service Funds
Internal Service Funds account for the financing of goods or services provided by a department to other departments on a cost-reimbursement basis. Three examples of this are the Retirees Medical Reserve Fund, the Repair and Replacement Funds, and the Self Insurance Fund. These funds not only account for current-year expenditures but also long- term liabilities of the City. These liabilities may not result in actual expenditures in the short term but will result in future expenditures for the replacement of equipment or the payment in the future for retiree employee medical benefits. In accordance with the City’s adopted financial policies, the City recognizes costs as they accrue, and sets money aside to fund these future expenditures, rather than allowing these costs to accumulate and become a future financial burden.

Retirees Medical Reserve Fund. The FY 2023/24 actual revenues and expenditures reflect the 2023 OPEB actuarial study recommendations and actual retiree medical payments.

As shown in Table 11 below, actual revenues were less than $0.1 million of the amended budget due to reduced actual expenses. Actual expenses, including transfers, were approximately $0.7 million less than budgeted, which is related to unused retiree medical benefits that occur when eligible retirees have their medical benefits provided through another means such as a spouse or another job. The Retirees Medical Reserve Fund does not require a fund balance. Staff will monitor the level of activities in FY 2023/24 and propose to make necessary adjustments to utilize the fund balance of $1.3 million.

Table 11. Retirees Medical Reserve Funds - Amended Budget vs. Actual

Repair and Replacement Funds. In accordance with the City’s financial policies, the City maintains various Repair and Replacement Funds. The purpose of these funds is to provide ongoing replacement of City equipment, vehicles, traffic signals, streetlights, and to make major repairs/renovations to City facilities, parks, and medians to extend their useful lives.

Page 241 of 658 ends

Page 13 of 15 ends

As described in Table 12 below, collectively, expenditures from the Repair and Replacement funds were $6.0 million less than budgeted in FY 2023/24. Any unspent funds remain in the Repair and Replacement funds to be expended on projects and equipment or vehicle replacements in the future. Actual net transfers ended up with a slight difference due to an interest payment from the Recycled Water Operating Fund to the Equipment Replacement Fund based on the interfund loan to pay off the outstanding balance of the 2017 water revenue bond. As approved by the City Council at its April 16, 2024 meeting, the Recycled Water Operating Fund will pay back the loan amount of $965,160 plus applicable interest rates, based on the investment return generated by the City’s investment pool.

It is worth noting that many of the City’s Repair and Replacement funds do not have an adequate fund balance to cover necessary project costs and/or replace aging equipment or vehicles in a timely manner. For example, the Information Technology Repair and Replacement Fund, which funds replacement costs for the City’s technology equipment, such as computers, monitors, servers, network equipment, has an estimated ending fund balance of just over $1.1 million. The Facilities Repair and Renovation Fund, which is used as a primary funding source for non-major facility repairs and modifications, as well as unanticipated repairs at any of the City’s more than 100 facilities and structures, has just a $2.4 million fund balance.

As part of the FY 2023-FY25 biennial budget development process, staff performed a preliminary analysis to estimate the level of contributions needed from the General Fund to the Repair and Replacement Funds and determined that the current annual contribution levels are not sufficient. A more comprehensive analysis is planned as part of the preparation of the Asset Management Plan that is now underway to better estimate an appropriate level of funding needed to support each Repair and Replacement Fund.

Table 12. Repair & Replacement Funds - Amended Budget vs. Actual

Workers’ Compensation Funds. There are two Workers’ Compensation funds: one for the City of Pleasanton workers’ compensation expenses and liabilities and the other for Livermore-Pleasanton Fire Department’s (LPFD) workers’ compensation expenses and liabilities. While there is, and has been, sufficient cash in both funds to cover actual workers’ compensation expenses, the incurred but not expensed claims and future liability cause both funds to have negative fund balances. That said, as described in Tables 13 and 14 below, the City’s claims paid is approximately $0.1 million lower, and future liability is higher than expected by $0.1 million. For LPFD, claims paid and future liability are higher by approximately $0.1 million and $1.2 million, respectively. The City’s Workers’ Compensation Fund had a negative fund balance of $3.7 million, and LPFD had a negative fund balance of $2.4 million, with $1.2 million (50 percent) belonging to Pleasanton.

Page 242 of 658 ends

Page 14 of 15 ends

The City periodically allocates available funds to the Workers’ Compensation Fund to ensure there is available funding to cover claims in the event the City settles more claims than anticipated in the annual budget, as well as to lower future liability. As mentioned earlier, $0.5 million in one-time contribution to the Workers’ Compensation Fund is recommended.

Table 13. City of Pleasanton Workers Compensation Fund – Amended Budget vs.

Actual

Table 14. LPFD Workers Compensation Fund – FY 2022/23 Actual vs. FY 2023/24 Actual

All Other Operating Funds
For the most part, budget variances are small for the other Operating Funds as shown in Exhibit A of the resolution. As a result, staff is not recommending any budget changes.

Staff recommends the City Council adopt a resolution (Attachment 1) to accept the FY 2024/24 Year-End Operating Budget report, approve budget amendments as identified, and designate the June 30, 2024 General Fund balance.

EQUITY AND SUSTAINABILITY
Not applicable, as this item is an administrative matter of City business.

OUTREACH
No outreach was conducted, as this item is an administrative matter of City business.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the ONE Pleasanton strategic goal of Funding Our Future,

Page 243 of 658 ends

Page 15 of 15 ends

which is focused on fiscal sustainability. Examining and reviewing actual revenues and expenditures from FY 2023/24 provides staff and the City Council with additional information to adjust the current fiscal year's budget, as needed, as well as refine the long-term financial forecast for more informed fiscal planning.

FISCAL IMPACT
The recommendation ratifies the City Council’s actions since the last approved budget adjustment in FY 2023/24; transfers $7.9 million from the General Fund to various Funds as detailed in Table 2; and designates the June 30, 2024, General Fund Balances as outlined in this report. The proposed unrestricted General Fund reserves will be $32.4 million, which is

21.1 percent of the budgeted FY 2024/25 General Fund operating expenditures, meeting the target reserve level stated in the City’s Reserve Policy. When combined with restricted and other committed General Fund reserves, the total General Fund reserves will be $53.9 million.

Prepared by: Submitted by: Approved by:

Chris Yi, Financial Services
Manager
Susan Hsieh, Director of Finance

Gerry Beaudin, City
Manager

Attachments:

1. Resolution - FY 2024 Year-End Operating Report

2. Exhibit A - FY 2024 Estimated Changes in Fund Balance

3. FY24 Year-End Operating Report Presentation

Page 244 of 658 ends

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON ACCEPTING THE FY 2023/24 YEAR-END OPERATING BUDGET, APPROVING

BUDGET AMENDMENTS IN MULTIPLE FUNDS, AND DESIGNATING GENERAL

FUND RESERVES
WHEREAS, each year a report of financial condition of the Operating Budget is presented to the City Council, and
WHEREAS, staff presented to the City Council such a report for the fiscal year ending June 30, 2024

NOW, THEREFORE BE IT RESOLVED THAT THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING:

Section 1: It accepts the June 30, 2024 Fund Balances as shown in Exhibit A.

Section 2: It designates General Fund Reserves for existing and future unknown obligations as shown in the Exhibit for all funds and as follows for the General Fund.

Section 3: It allocates transfers from the General Fund to multiple funds as follows: $2,000,000 to the Rainy Day Fund; $1,500,000 to the General Liability Fund; $1,400,000 to the Facility Renovation Fund; $1,000,000 to the Information Technology Replacement & Replacement Fund; $800,000 to the Storm Drain Fund; $500,000 to the Workers’ Compensation Fund; $500,000 to the Park Median Replacement Fund; $250,000 to the Traffic Signal Repair & Replacement Fund.

Additionally, it also adjusts contributions to the two Livermore-Pleasanton Fire Department (LPFD) Funds: $939,266 to the LPFD Workers’ Compensation Fund and $150,000 to the LPFD Equipment Reserve Fund.

Section 4: The City Clerk shall certify to the passage of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on the 19th day of November 2024.

I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on November 19, 2024, by the following vote:

Ayes:

Noes:

Absent:

Abstain:
_____________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
___________________________
Daniel G. Sodergren, City Attorney

Page 245 of 658 ends

Exhibit A
Actual
June 30, 2023
Balance
Actual
FY 2023/24
Revenue
Actual
FY 2023/24
Net Transfers
Actual
FY 2023/24
Expenditures
Recommended
Budget
Amendments
Actual
FY 2023/24
Net Income
w/ Budget
Amendments
Actual
June 30, 2024
Balance
w/ Budget
Amendments
Major Long
Term
Commitments
& Liabilities
June 30, 2024
YR END
June 30, 2024
Balance Less
Commitments
& Liabilities
GENERAL FUND 52,259,903 $ 151,750,238$ 291,559 $ (142,496,475)$ (7,900,000) $ 1,645,321 $ 53,905,224$ 1,478,578$ 52,426,646$ RAINY DAY FUND 6,620,550 -
(2,000,000) - 2,000,000
- 6,
620,550 - 6,
620,550

ENTERPRISE FUNDS
Transit 663,128$ 624,589$ 81,396 (759,561)$ - (53,576)$ 609,552$ - 609,
552$
Cemetery 460,
909 (67,902) 50,000 (354,497) - (372,399) 88,
511 500,000 (411,489)
Golf 1,680,033 6,320,595 (751,780) (4,787,331) - 781,484 2, 461,517 - 2, 461,517 St
orm Drain 326,499 942,827 951,288 (1,629,922) 800,000 1,064,193 1, 390,692 - 1,
390,692
Wat
er 10,196,703 31,659,230 1,555,324 (32,752,590) - 461,964 10,
658,667 - 10,
658,667
Re
cycled Water (2,824,703) 2,529,220 (531,767) (2,321,702) - (324,249) (3,
148,952) - (3,
148,952)
Sew
er 7,605,048 17,016,113 1,130,189 (17,018,359) - 1,127,943 8,
732,990 - 8,
732,990
Enterpri
se Funds 18,107,617$ 59,024,672$ 2,484,650$ (59,623,961)$ 800,000$ 2,685,360$ 20,792,976$ 500,000$ 20,292,976$

INTERNAL SERVICE FUNDS
Employee Benefits 60,324$ 241,947$ - (244,345)$ -
(2,398)$ 57,926$ (4,988,806)$ 5, 046,732$ Workers' Compensation (3,876,264) 2,619,841 - (2,466,482)
500,000 653,358 (3,222,906) (9,676,000) 6,453,094 Public Art Acquisition 306,564 109,131 - (16,693)
-
92,437 399,
001 - 399,
001
Vehic
le Replacement 4,028,010 626,685 - (269,964)
-
356,721 4,
384,731 - 4,
384,731
Polic
e Vehicle Replacement 1,722,994 399,704 - (41,916)
-
357,789 2,
080,783 - 2,
080,783
F
ire Apparatus Replacement 2,954,526 466,959 - (120,946)
-
346,013 3,
300,539 - 3,
300,539
Equipment
Replacement 3,121,166 606,655 (949,138) (339,097) -
(681,581) 2,
439,585 - 2,
439,585
Fac
ilities Renovation 2,587,724 554,529 (152,972) (603,098) 1,400,000 1,198,459 3, 786,183 - 3, 786,183 I
nformation Technology Replacement 1,094,614 381,174 - (331,786)
1,000,000 1,049,388 2,
144,002 - 2,
144,002
Golf
Replacement 999,677 18,877 220,000 (530,100) -
(291,223) 708,
454 - 708,
454
Park
& Median Renovation 503,159 1,045,563 - (1,058,736)
500,000 486,827 989,
986 - 989,
986
St
reet Light Replacement 2,368,754 35,863 - (38,716)
-
(2,853) 2,
365,900 - 2,
365,900
T
raffic Signal Replacement 1,508,883 20,401 - (300,848)
200,000 (80,447) 1,
428,437 - 1,
428,437
PARS Sec
tion 115 Trust 31,588,706 -
-
- -
- 31,
588,706 - 31,
588,706
Pleas
anton Retirees' Medical Reserve 551,041 5,058,870 (905,000) (3,423,012) - 730,858 1, 281,899 - 1, 281,899 Self
-Insurance Retention 1,616,345 3,647,916 - (4,820,701)
1,500,000 327,215 1,
943,561 (824,
103) 2,767,664
Cit
y Enhancement 537,635 8,122
-
- -
8,122 545,757 - 545,
757
I
nternal Service Funds 51,673,858$ 15,842,236$ (1,787,110)$ (14,606,441)$ 5,100,000 4,548,685$ 56,222,543$ (15,488,909)$ 71,711,452$ FY 2023/24 OPERATING BUDGET YEAR-END REVIEW

CHANGES IN FUND BALANCES

Page 246 of 658 ends

CHANGES IN FUND BALANCES

SPECIAL REVENUE FUNDS
D.A.R.E. 18,112$ 267$
-
(861)
-
(594)$ 17,
518$ - 17,
518$
Asset Forfeiture 18,683 282 - - - 282 18,966 - 18, 966 Asset Forfeiture - Federal 9,796 149 - - - 149 9,945 - 9, 945 Downtown P
arking In-Lieu 691,173 10,492 - - -
10,492 701,665 - 701,
665
Rec
ycling & Waste Management 399,384 227,647 - (335,480)
-
(107,833) 291,
551 - 291,
551
Mis
cellaneous Donations 389,454 11,500 - (19,519)
-
(8,019) 381,
435 - 381,
435
Bernal Donat
ions (4,674) 69,843 (18,714) (44,246) -
6,884 2,
209 - 2,
209
H.

A.P.P.Y. Public Art Donations 94,431 23,899 - - -
23,899 118,330 - 118,
330
C
ASB FEE 112,
314 33,391 -
(10,907)
-
22,483 134,797 - 134, 797
Rec
ycling & Waste Management Import Mitigation 104,940 965 -
- -
965 105,905 - 105,
905
Operat
ing Grants 155,010 948,367 -
(398,684)
-
549,683 704,693 - 704,
693
Law Enf
orcement 1,084,233 18,637 -
- -
18,637 1,102,870 - 1,
102,870
Us
ed Oil Grant - 12,
581 -
(12,581)
-
- - - -
Co
mmunity Access T V 1,798,114 244,609 -
(534,627)
-
(290,018) 1,
508,096 - 1,
508,096
Downt
own Economic Development Loan 28,285 429
-
- -
429 28,714 - 28,
714
Lower I
ncome Housing 13,381,702 1,408,060 (20,189) (865,308) - 522,562 13, 904,265 - 13, 904,265 Communit
y Development Block Grant - 747,
832 -
(747,832)
-
- - - -
H.

O.M.E. Program (123,118) 1,248,386 -
(372,373)
-
876,013 752,
894 752,894 0
Abandoned Vehicle 113,784 28,767 - (26,854) - 1,913 115, 697 - 115, 697 H.

B.P.O.A. Maintenance District - 164,
776 -
(164,776)
-
- - - -
Urban F
orestry 444,719 963,395 (25,000) (292,181) -
646,214 1,
090,932 - 1,
090,932
Lemoine Geologic
Hazard Distrct 91,137 10,466 -
(6,543)
-
3,923 95,
060 - 95,
060
Laurel Creek
Geologic Hazard District 998,513 66,605 -
(16,302)
-
50,303 1,
048,816 - 1,
048,816
Moller Geologic
Hazard Dist 112,725 14,669 -
(11,900)
-
2,769 115,
494 - 115,
494
Oak
Tree Farm Geologic Hazard Dist 108,660 15,779 - (11,583)
-
4,196 112,
856 - 112, 856
Ponderos
a Landscape District 86,501 16,694 -
(17,871)
-
(1,177) 85,
324 - 85,
324
Winds
or Landscape District (11,560) 23,926 -
(21,713)
-
2,213 (9,
347) - (9,
347)
Bonde Lands
cape District 22,780 26,647 -
(29,270)
-
(2,623) 20,
157 - 20,
157
Moller Ranc
h Landscape District 263,036 62,301 -
(55,784)
-
6,516 269,
552 - 269,
552
Oak
Tree Farm Landscape Dist 64,770 20,139 -
(17,196)
-
2,943 67,
713 - 67,
713
Nort
h Pleasanton Improvements District 1,033,807 54,050 - (8,304)
-
45,746 1,
079,553 - 1,
079,553
Bus
iness Support 1,656,556 1,141,556 (350,000) (37,401) - 754,155 2, 410,711 633,598 1,777,113 Pleas
anton Garbage Service Reserve 3,290,381 921,251 - (139,847)
-
781,404 4,
071,785 - 4,
071,785
Opioid Dis
tributors Settlement 76,600 34,380 - (18,550)
-
15,830 92,
430 - 92,
430
Opioid Mallinckrodt
Bankruptcy 6,108 88
-
- -
88 6,196 - 6,
196
Nat
ional Opioid Abatement Trust - 7,
191
-
- -
7,191 7,191 - 7,
191
Opioid Wilmingt
on Trust - 18,
494 -
- -
18,494 18,494 - 18,
494
Speci
al Revenue Funds 26,516,353$ 8,598,510$ (413,903)$ (4,218,494)$ - 3,966,112$ 30,482,466$ 1,386,492$ 29,095,974$ 0

Page 247 of 658 ends

CHANGES IN FUND BALANCES

OTHER FUNDS
332,615$ 5,102$ -
(16,691)$ -
(11,589)$ 321,027$ - 321,
027$
Other Funds 332,615$ 5,102$ - (16,691)$ -
(11,589)$ 321,027$ - 321,
027$
TOTAL - ALL FUNDS 155,510,896$ 235,220,758$ (1,424,805)$ (220,962,062)$ -$ 12,833,889$ 168,344,786$ (12,123,839)$ 180,468,625$ Pleasanton Township County Water District #3
Trust Fund

Page 248 of 658 ends

FY 2023/24 Year-End Report
Operating Budget
November 19, 2024 Council Meeting
Agenda
Overview Financial Highlights Next Steps
2 ATTACHMENT 3

Page 249 of 658 ends

City Fiscal Policies and Practices
• Conservative budgeting
• Available resources are used to:
9Strengthen reserves
9Fund capital projects/repair and replacement projects
9Pay down unfunded pension and retiree medical liabilities 9Fund one-time projects to advance Council and community strategic goals • Ensure long-term sustainability
3 Financial Policies and Practices Impact
Borrowing Costs
• Example of S&P Global rating
criteria; specific rating criteria
may be different for different
types of debt financing
4

Page 250 of 658 ends

Pleasanton’s Key Financial Challenges
• The City faces significant fiscal challenges in both the operating and capital budgets
o Forecasted General Fund structural deficit
¾Insufficient revenue to cover all the funding needs
¾Insufficient funding for many program areas
¾$13M in projected average annual deficit
¾$22M in projected average annual deficit (recession scenario) o Significant infrastructure funding gap
¾$900M for both the General Fund and Enterprise Funds over 10 years o Unfunded retiree medical and pension liabilities
¾Over $200M
5 Overview of Fiscal Year 2024 Unaudited
Financial Results
• General Fund
• Actual revenue is lower than prior year’s revenue due to the phase-out of federal stimulus funds
• Actual expenditure is higher than prior year’s expenditure due to increased personnel, contract service, utility, and insurance costs
• Actual revenue is above budget due to higher-than-expected hotel and business license tax and the implementation of recent accounting standards • Actual expenditure is lower than budget due to vacant positions and savings measures implemented during fiscal year 2024
• Actual results reflect the use of $2M Rainy Day Reserve and $0.9M Program Reserves
• Overall, expenditure is growing at a much faster pace than revenue – 6.7% vs. 0.7% 6

Page 251 of 658 ends

Overview of Fiscal Year 2024 Unaudited
Financial Results (cont.)
• Significant funding gaps in the following program areas that need General Fund support:
• Insurance
• Storm Drain
• Repair and Replacement
• Enterprise Funds
• Water Fund net results were slightly positive even with rate increase and $2.7M transfer from the capital funds
• Sewer Fund net results were positive due to lower-than-expected operating expenditures and $1.0M transfer from the capital fund
• Storm Drain Fund and Cemetery Fund continue to operate at a deficit even with ongoing General Fund subsidy
7 General Fund Revenues – Highlights
• Fiscal year 2024 total revenue is ~0.7% lower than prior year’s actual due to unavailable stimulus funds
• Higher than budgeted revenue due to the increase in hotel and business license tax and implementation of accounting standards
8 - 4.8% increase from
prior year
- Actual is in line with
budget
- 8.5% decrease from
prior year
- Actual is below budget
Phase-out of ARPA
funds offset by
revenues resulting from
GASB implementation
FY 2022/23
Revenues Actual Amended Actual Variance
Property Taxes $86,075,776 $90,116,000 $90,241,390 ($125,390) Sales & Use Taxes 26,183,661 24,532,400 23,963,541 568,859 Other Taxes 15,498,864 14,222,000 16,053,575 (1,831,575) Development Services Fees 6,391,087 4,549,500 5,014,024 (464,524) Recreation Fees 4,197,090 4,607,457 4,663,652 (56,195)
Other Revenues 14,398,239 8,414,270 11,814,055 (3,399,785) Total $152,744,716 $146,441,627 $151,750,238 ($5,308,611) FY 2023/24

Page 252 of 658 ends

General Fund Expenditures – Highlights
• Fiscal year 2024 total expenditure is ~6.7% higher than prior year’s actual due to increases in personnel and other operating costs • Lower than budgeted expenditure due to vacant positions and cost reduction strategies implemented during the fiscal year 9 - Froze multiple positions
- 20+ vacant positions at
year-end
- GASB
implementation
- Implemented cost
reduction strategies
FY 2022/23
Expenditure Categories Actual Amended Actual Variance
Personnel $94,110,681 $105,511,427 $101,910,933 $3,600,494 Transportation & Training 1,750,740 1,865,165 1,965,649 (100,484) Repairs & Maintenance 8,167,740 6,856,688 6,617,385 239,303 Materials & Supplies 27,199,195 33,095,261 29,461,194 3,634,067 Other Expenditures 2,312,091 667,473 2,541,315 (1,873,842) Total Expenditures $133,540,446 $147,996,014 $142,496,475 $5,499,539 FY 2023/24
Underfunded Programs
• Insufficient funding for various programs/funds due to financial constraints, impacting the City’s ability to fund future claims and repair and replacement projects • $0.4M in fund balance in the Liability Insurance Fund • $5.0M in negative fund balance in the Workers’ Compensation Funds • $0.6M in fund balance in the Storm Drain Operating Fund – ongoing General Fund subsidy
• Repair and replacement programs (see examples below)
• Only $2.4M in fund balance for 100+ City facilities and structures • Only $1.1M in fund balance for replacing IT equipment, systems, servers, etc. • Only $0.5M in fund balance for park repair and replacements (46 city parks) • The Asset Management Plan that is underway is expected to identify significant deferred maintenance funding gap
10

Page 253 of 658 ends

Proposed Budget Amendments to Reduce
Program Funding Gaps (cont.)
• Limited financial resources are only able to reduce insufficient funding in certain program areas
11 Transfers to Amount
Rainy Day Fund $2,000,000
General Liability Fund $1,500,000
Facility Renovation Fund $1,400,000
IT Repair & Replacement Fund $1,000,000
Storm Drain Fund $800,000
Workers' Compensation Fund $500,000
Park Median Replacement Fund $500,000
Traffic Signal Repair & Replacement Fund $200,000
Make one-time contribution to offset reduced annual
contribution in the FY 2023/24 Adopted Budget
Provide one-time contribution to replenish and build
the reserve for critical technology-related repairs and purchases
Provide one-time contribution to address the negative
fund balance issue
Make one-time contribution to build the reserve for
parks related repair and replacement projects
Rationale
Set aside funds for capital and deferred maintenance
projects
Make one-time contribution to the general liability fund to replenish the fund balance which was depleted due
to increasing insurance liability and claim-related costs Make one-time contribution to build up the reserve for
city facility-related repairs and replacement projects
Provide one-time contribution to restore fund balance
in the Storm Drain program while alternatives are
being explored to resolve the ongoing operating deficit issue
Review of General Fund Reserves
• Policy:
• Reserve target: 20%
• Reserve range: 16.7% to 25%
12 21% of FY25 operating expenditures
$19.5M in pension reserve
Ending Fund Recommended Ending
Balances at Budget Fund
6/30/2024 Adjustments Balance
Unrestricted General Fund Reserve 40,337,357 (7,900,000) $32,437,357 COVID Response & Recovery Reserve 319,150 - 319,150 Mobile Outreach Vehicle Reserve 280,000 - 280,000 Strategic Plan Implementation Reserve 379,428 - 379,428 Emergency Reserve 500,000 - 500,000 Restricted General Fund Reserve* 19,989,289 - 19,989,289 $61,805,224 ($7,900,000) $53,905,224
General Fund
Fund Balance
Total General Fund Reserves
*Restricted Reserve includes the General Fund's share of PARS Section 115 Trus t ($19,474,282) a nd non-s penda bl e ba l a nces ($515,007), whi ch repres ent a dva nces to other f unds and notes receivable.

Page 254 of 658 ends

Enterprise Funds
• Water Operating Fund net results: $138K
• Reserve: $7.5M
• Below 35% reserve target
• Major operating deficit without rate increase and $2.7M transfers from the capital funds
• No excess funds for capital investments
• Sewer Operating Fund net results: $1.1M
• Reserve: $8.7M
• Above 35% reserve target
• Operating deficit without rate increase and $1.0M transfer from the capital fund • No excess funds for capital improvements
13 Enterprise Funds (cont.)
• Storm Drain Fund net results: $0.3M
• Reserve: $0.6M
• Negative net results without $1.0M transfers from the General Fund and the capital fund
• Ongoing General Fund subsidy for operations and capital projects • Cemetery Fund net results: -$0.4M
• Reserve: $0.1M
• $0.3M one-time prior year revenue adjustment
• Fund balance will run out as early as FY 2024/25
• General Fund contribution will likely need to be increased in future years 14

Page 255 of 658 ends

Next Steps
15 Comprehensive Annual
Financial Report
Presentation
January/February 2025
Mid-Year Budget Review
2025-27 Baseline Budget
Presentation
February 2025
2025-27 Budget
Development and
Community Engagement
December 2024-June 2025
Recommendation
• Staff recommends that the Council receive the year-end report and approve the proposed budget amendments
16

Page 256 of 658 ends

Thank You!
17

Page 257 of 658 ends

Page 1 of 15 ends

Item #16

CITY COUNCIL AGENDA REPORT

November 19, 2024
Finance

TITLE: ADOPT A RESOLUTION TO ACCEPT THE FY 2023/24 YEAR-END FINANCIAL

AND PROGRAM DELIVERY REPORT FOR THE CAPITAL IMPROVEMENT

PROGRAM (CIP)

SUMMARY
This year-end report presents the unaudited results of the Fiscal Year 2023/24 Capital Improvement Program (CIP). The audited information will be reflected in the City's Annual Comprehensive Financial Report (ACFR) which will be presented to the City Council after the City's independent auditor has issued its opinion on the ACFR and the Audit Committee has reviewed it; this is expected to occur in December 2024 or January 2025. If there are any differences in the financial information presented in this report and the ACFR due to the audit, those changes will be highlighted at that time.

RECOMMENDATION
Adopt a resolution to accept the Fiscal Year 2023/24 year-end financial and program delivery report for the Capital Improvement Program (CIP) and approve the carryforwards as included in the report.

BACKGROUND
Annually, staff presents the year-end financial report for the Capital Improvement Program to the City Council for approval. This year, the report has been expanded to provide more information, specifically related to program delivery accomplishments.

The report summarizes the actual results of the financial activities and program delivery updates for the CIP Budget and recognizes budget carryforwards to the following year. The City's ACFR is still in progress; therefore, the financial information included in this report is unaudited. The audited information will be reflected in the ACFR and will be presented to the City Council once the City's independent auditor has issued its opinion on the ACFR and the Audit Committee has reviewed it; this is expected to occur in December 2024 or January 2025.

If there are any differences in the financial information presented in this report and the ACFR as a result of the audit, those changes will be highlighted at that time.

DISCUSSION
This report presents the status of the CIP Budget as of June 30, 2024. It provides a summary of the actual expenditures, the amended budget which is the original budget plus any amendments approved by the City Council through June 30, 2024, and the recommended carryforwards from FY 2023/24 to FY 2024/25. Projects can have more than one funding source, and expenditures can be cyclical or multiyear in nature, which is reflected in the carryforwards.

It should be noted that during the development of the FY 2024/25 Capital Budget, staff

Page 258 of 658 ends

Page 2 of 15 ends

performed a more comprehensive analysis of each capital fund’s condition, in terms of budgeted versus actual revenues collected, to reassess and recommend changes to the budget for projects, as needed, by adjusting carryforward amounts to ensure there is an adequate fund balance in each fund. For example, in the Facilities Impact Fee and Traffic Impact Fee Funds, actual fees collected in recent years were less than budgeted to a point where actual project expenditure budget had to be reduced or removed altogether. At the March 19, 2024, City Council meeting, staff presented a list of recommended adjustments to either reduce or cancel previously budgeted projects at the year-end to free up capacity to fund time-sensitive, critical projects to address safety issues resulting from storm damage; these adjustments are reflected in the FY 2024/25 carryforwards (as shown in Table 1 below, and in Tables 3-9 for each of the project categories).

Specifically, staff recommends a total of approximately $23.4 million reduced carryforwards.

These include approximately $17.9 million in reductions proposed at the March 19, 2024, meeting, with the largest project reductions consisting of $5.6 million for the skatepark project in the Parks category, $4.0 million for the Century House Facility Assessment project, and $0.8 million for the new Fire Station 3 project in the Facilities category, as well as $2.4 million for the Westbound Bernal Avenue at First Street project in the Transportation and Streets category. Other reductions include $4.1 million in projects funded with impact fees. Revenues from these impact fees have been significantly below estimates, which necessitated project budget reductions, with the largest project budget reductions consisting of $2.2 million for the Police Department Training Facility project and $0.4 million for the Design of Emergency Operations Center at the Fire Training Facility. Additionally, actual Gas Tax revenues came in slightly below estimates provided by the California Local Government Finance Almanac and necessitated a reduction of approximately $0.5 million for the 2nd Bridge Bernal/Laguna project in the Transportation and Streets category.

Based on the FY 2023/24 actual expenditures for each project as well as estimated balances for each fund, this report includes the final carryforward recommendations for the City Council’s approval. Table 1 summarizes the actual expenditures to the amended budget for the fiscal year and identifies the carryforward by CIP project category

Table 1 – Summary of CIP Carryforwards by Project Category

There are two main funding types: Restricted and Non-Restricted Funds.

Page 259 of 658 ends

Page 3 of 15 ends

• Restricted Funds: Approximately $69.9 million of the $86.5 million recommended carryforwards to FY 2024/25 belong in this category. Their use is governed by federal and state laws, grants, and local measures. Common sources include Park Development Impact fees, Facility Development Impact fees, enterprise funds (e.g., water, sewer, and golf course), and transportation funds (e.g., Measure BB and Vehicle Registration Fee). Because these funds are often limited to specific purposes only, projects may receive only partial funding initially and may need to be supplemented with additional grants or even non-restricted funds.

As such, most of these project budgets are carried forward until fully funded. • Non-Restricted Funds: The remaining $16.6 million carryforward funds belong in the non-restricted category. These funds are more flexible and general-purpose in nature, and, as a result, can be used to fund all types of capital projects although they are primarily used to support critical infrastructure and safety projects that cannot be funded with restricted funding sources. Primarily sourced from the General Fund, many streets, parks, and storm drain replacements are funded using this source. It should be noted that the Storm Drain Capital Fund, similar to its Operating Fund, is currently heavily subsidized by the General Fund. This approach is not sustainable. Staff is exploring options to address this issue and will present options to the City Council at a later date.

The City maintains several reserves within its CIP funds, which are specifically allocated for designated purposes. These reserves act as holding accounts for upcoming projects that need additional funding or serve as emergency funds. Details of these reserves at the project category level are summarized in Table 2 below. Of the $86.5 million total recommended carryforwards, $61.4 million supports active projects, $19.7 million is reserved or on hold, and $5.4 million is for projects that have a budget but have not yet started. There are many reasons for project delays, and these include lack of adequate funding, cost increases, project coordination with private developer projects, or priority shifts. Many reserves are earmarked for emergency needs, upcoming developments, and future projects, ensuring flexibility and long-term planning. Table 2 below summarizes the CIP Reserves/On-Hold by project category.

Table 2 – Summary of CIP Reserve/On-Hold by Project Category

FY 2023/24 Project Delivery Summary: Challenges and Adjustments The project delivery team faced significant challenges in FY 2023/24 that impacted the schedule and capacity for additional projects:

1. Staffing Shortages
The project delivery team, composed of four engineers and four inspectors in Public Works, along with one staff member in Community Development, experienced a 25 percent vacancy

Page 260 of 658 ends

Page 4 of 15 ends

rate. Additional vacancies in the Land Development and Utility Divisions also strained resources, requiring temporary consultant support to fill gaps.

2. Resource Prioritization for Urgent Needs
During the first half of FY 2023/24, resources were reallocated to address critical storm damage repairs from FY 2022/23, which required working closely with FEMA for project reimbursement and collaborating with design consultants. Additionally, the City Council directed staff to stop using Wells 5, 6, and 8, and to prioritize the water supply alternatives study. The City issued a water revenue bond in June 2024 to fund water infrastructure upgrades and regional groundwater studies with Zone 7. These shifts in priorities impacted the original project delivery schedule.

3. Funding Limitations
There are approximately 100 projects in the FY 2023/24 CIP including existing and new projects. Of these, 56 percent were fully funded, and the remaining 44 percent were partially funded. Projects that are funded for design phase proceed only when resources are available in the following year for construction.

4. Complex, Multi-Year Projects
The project delivery team managed several complex projects, such as the Johnson Drive/Costco development, which included roadway and traffic improvements, and the West Las Positas Multimodal Reconstruction project. Due to budget and grant requirements, as well as the technical complexity and high level of coordination needed, the latter involved careful planning and value engineering, which demanded staff time to be prioritized for critical improvements.

5. Citywide Planning Efforts
The City undertook major planning efforts requiring extensive engineering resources, including:
• Water System Management Plan (WSMP) to guide future water rate and connection fees, set for City Council review by December 2024;
• Sanitary Sewer Management Plan (SSMP) to meet state requirements, with completion aimed by June 2025;
• Asset Management Plan, including data collection for all City assets; and • Urban Forest Master Plan to align with goals identified in the City's Climate Action Plan.

FY 2023/24 Achievements and Next Step
Despite these challenges, the team completed design for 26 CIP projects and finished construction for 15 projects, ensuring continued progress toward critical infrastructure goals.

With the budget challenges, competing City priorities, and resource constraints, a proper tool is necessary to guide the City in the future capital programming effort. Staff incorporates best practices and lessons learned from other cities, including neighboring Tri-Valley cities. Staff is developing a comprehensive CIP strategy that will provide a better defined process and framework for the City to make informed decisions on project selection and prioritization, ensuring alignment with the ONE Pleasanton Strategic Plan to address the City’s infrastructure needs. Staff aims to finalize the studies and present the recommendations to the City Council for feedback and approval by the end of 2024, and adoption of the strategy as part of the upcoming two-year budget and CIP development process.

CIP PROGRAM UPDATES

Page 261 of 658 ends

Page 5 of 15 ends

Sewer CIP Program
Table 3 summarizes the full list of Sewer CIP projects that had a budget in FY 2023/24, actual expenditures if any, and recommended carryforwards.

Table 3 – Sewer CIP Projects

In FY 2023/24, the City prioritized planning for its sanitary sewer system. Consultants conducted a detailed analysis, assessing current and projected sewer capacity needs based on projected growth and development. This sewer capacity evaluation forms the basis of the upcoming Sanitary Sewer Management Plan (SSMP), which outlines essential infrastructure upgrades, maintenance, and condition assessments to comply with the State’s Sewer Systems General Order. The SSMP, expected to be completed by June 2025, will be the basis of the Sewer CIP to prioritize critical projects for the sanitary sewer program. The plan will also support a future sewer rate study in FY 2024/25, with a new rate structure to be implemented by January 2026.

Key sewer projects delivered in FY 2023/24 include:

1. Replacement and upgrade of sewer mains on Regency Drive, W. Angela Street, and Arendt Way

2. Reconstruction of manholes on California Avenue and Washington Street

3. Relocation of sewer lines at Bernal Bridge to address erosion risks

4. Flow adjustments and system upgrades at Rose Avenue to improve efficiency.

Design work is also underway for permanent repairs at the S-14 Pump Station and sewer replacements as part of the West Las Positas Multimodal Reconstruction project. These efforts strengthen the City’s sewer infrastructure for future demands and resiliency.

Water CIP Program
Table 4 summarizes the full list of Water CIP projects that had a budget in FY 2023/24, actual expenditures if any, and recommended carryforwards.

Page 262 of 658 ends

Page 6 of 15 ends

Table 4 – Water CIP Projects

In FY 2023/24, the City initiated urgent near-term water system improvements to support City Council direction to shutdown its wells due to a detectable level of PFAS and to procure water directly from Zone 7. In June 2024, the City secured a $19.0 million water revenue bond to fund three major water line projects on Bernal Avenue, Stoneridge Drive, and Sunol Boulevard. Remaining funding of $9.1 million needs to be carried forward to continue these projects.

The Annual Water Distribution System Improvements project also completed critical updates, installing seismic piping at key culvert crossings within Hacienda business park and addressing a leak at the Kilkare Canyon bridge crossing. Temporary repairs were made to Turnout #1, and a rental booster pump was installed at Turnout #4 to maintain adequate water supply during summer months.

The Water System Management Plan (WSMP) is completed and will provide a comprehensive guide for water supply management, quality standards, distribution capacity, and infrastructure upgrades; thew final plan is being presented for City Council acceptance in November 2024.

Additionally, planned water system improvements will be incorporated into the West Las Positas Multimodal Reconstruction project which is currently in design.

Parks CIP Projects

Page 263 of 658 ends

Page 7 of 15 ends

Table 5 summarizes the full list of Parks CIP projects that had a budget in FY 2023/24, actual expenditures if any, and recommended carryforwards.

Table 5 – Parks CIP Projects

In FY 2023/24, key accomplishments in the Parks CIP Program include:

1. Completed construction of Ken Mercer Cricket Field. The cricket field construction was completed and accepted by the City Council on April 16, 2024, and a ribbon-cutting ceremony was held on March 7.

Page 264 of 658 ends

Page 8 of 15 ends

2. Completed construction of Augustin Bernal Mountain Bike Trail. This is a 0.7 mile downhill-only mountain bike trail from the upper portion of Augustin Bernal Community Park down to the staging area and parking lot.

3. Completed replacement of the southern play structures in Val Vista Community Park

4. Completed design of Lions Wayside and Delucchi Parks renovation

5. Completed design of Annual Court Resurfacing to repair courts at Fairlands Park and Pleasanton Tennis and Community Park

6. Completed design of Ken Mercer Skatepark. This project was deprioritized by the City Council after design was completed.

7. Completed 65 percent of the Urban Forest Master Plan design. The plan will capture the condition of the City’s forest and develop strategies to preserve and enhance the urban forest to meet the City’s Climate Action Plan goals. A final draft plan will be presented to the City Council in early 2025.

Miscellaneous CIP Program
Table 6 summarizes the full list of Miscellaneous CIP projects that had a budget in FY 2023/24, actual expenditures if any, and recommended.

Table 6 – Miscellaneous CIP Projects

In FY 2023/24, the City made substantial progress in infrastructure management and upgrades:

1. Asset Management Plan (AMP): Phases I and II began with comprehensive data collection and a condition assessment of City infrastructure. This effort will create a detailed inventory and clarify long-term maintenance and replacement costs. Future funding will support Phase III, focusing on financial analysis to develop a 10-year Capital Improvement Program (CIP).

Page 265 of 658 ends

Page 9 of 15 ends

2. Val Vista Underdrain Project: Construction was completed to meet Regional Water Quality Board requirements, redirecting recycled water drainage to sewers rather than storm drains.

3. Soundwall Replacement: Critical soundwalls were prioritized for replacement. Design began on the Valley Avenue soundwall, with construction planned for FY 2025/26. Carryforward funds will allow the entire project to be completed without phasing, reducing costs.

4. Climate Action Plan Implementation: Initially slated for defunding, this project received updated funding due to new air quality regulations requiring fleet electrification. Plans include designing and constructing two City fleet charging centers at the City's downtown campus and Public Works yard.

5. ADA Transition Plan: Set to begin in 2025, this plan will use AMP data to design a citywide ADA compliance plan for all public buildings, parking lots, sidewalks, and curb ramps.

Transportation & Streets CIP Program
Table 7 summarizes the full list of Transportation & Streets CIP projects that had a budget in FY 2023/24, actual expenditures if any, and recommended carryforwards.

Table 7 – Transportation & Streets CIP Projects

Page 266 of 658 ends

Page 10 of 15 ends

Page 267 of 658 ends

Page 11 of 15 ends

In FY 2023/24, the City made substantial strides in infrastructure and transportation improvements:

1. Pavement Condition Index (PCI): The City’s PCI score dropped from 78 to 77 due to pavement age, climate, traffic loads, and limited maintenance funding, aligning with an independent assessment by the Metropolitan Transportation Commission (MTC).

Pleasanton’s PCI score of 77 is considered "good" and comparable to other Tri-Valley cities.

2. Annual Resurfacing Project: The City installed 87 curb ramps, replaced 3,186 square feet of sidewalk, and slurry-sealed 1.3 million square feet of pavement. High asphalt costs delayed some resurfacing, which will now be combined with next year's project using Cold-In-Place Recycling to reduce costs and minimize traffic disruption.

3. ADA Compliance: New ADA ramp regulations require eight directional ramps per intersection, as seen on Hopyard Road, increasing future project requirements.

4. West Las Positas Corridor: Design work continued for the West Las Positas Multimodal Reconstruction project between Hopyard Road and Stoneridge Drive. Value engineering and prioritization efforts are underway due to a funding shortfall for this project.

5. Key Intersection Upgrades: Design of the First/Sunol/Bernal intersection upgrade was completed but will await water main work and school district project(s). Sunol Boulevard overlay from this intersection to Valley Avenue is also in the pipeline.

6. Traffic and Safety Enhancements: New traffic signals at Northway Road and Valley Avenue near Harvest Park Middle School began construction. The City also launched updates to the Bicycle and Pedestrian Master Plan to improve non-vehicular safety and access. At this time, the Annual Expedited Traffic Lumps and Traffic Calming programs are paused due to potential budget cuts.

7. Johnson Drive Economic Development Zone: In partnership with Costco, Johnson Drive and Stoneridge Drives are being widened, with further improvements to the I-680 northbound on-ramp. Carryforward funds and a Costco loan will fund these upgrades.

8. Reserve Projects: Developer-funded projects like the Dublin Canyon Road Widening, Clara Lane improvements, and the Old Vineyard Corridor are in reserve until further contributions or project milestones are met.

9. Annual Projects: These include regular maintenance and upgrades of roadways, sewer and water lines, curbs, gutters, sidewalks, and ADA ramps. The intersection at Hopyard Road and Owens Drive began construction after Caltrans approval, enhancing safety and traffic flow.

Storm CIP Projects
Table 8 summarizes the full list of Storm CIP projects that had a budget in FY 2023/24, actual expenditures if any, and recommended carryforwards.

Table 8 – Storm CIP Projects

Page 268 of 658 ends

Page 12 of 15 ends

The 2023 winter storms inflicted significant damage across Pleasanton. Interim repairs and cleanup were completed. Efforts to recover costs for interim repairs and cleanup are ongoing.

On March 19, 2024, the City Council reallocated discretionary funds from the CIP program to support permanent repairs, which will be partially reimbursed by FEMA. Following interim repairs, four permanent repair projects commenced, initiating a multi-year process of design and permitting with FEMA and state regulatory agencies. These projects include upsizing storm drain lines on Puri Court and Sycamore Creek Way, and installing debris capture systems at Sassafras Court to help reduce future cleanup and recovery costs.

Facilities CIP Projects
Table 9 summarizes the full list of Facilities CIP projects that had a budget in FY 2023/24, actual expenditures if any, and recommended carryforwards.

Table 9 – Facilities CIP Projects

Page 269 of 658 ends

Page 13 of 15 ends

In FY 2023/24, several facility improvements progressed despite challenges:

1. Library Lighting Upgrades: Design and construction began to replace all library lighting with energy-efficient LED fixtures and a new control system.

2. Ken Mercer Sports Park Electrical: Replacement of failed electrical equipment is underway; however, manufacturing delays mean temporary power poles are still in use.

3. St Mary Street Parking Lot: Safety improvements, including new fencing and lighting, were completed.

4. Public Works Corporation Yard: A new emergency generator was installed, replacing the rental unit. The design phase for replacing the outdated fire alarm system is also being initiated.

5. Alviso Adobe Repairs: Funding for the bunkhouse and kitchen expansion was reallocated to rebuild the main building's south wall. Additional repairs are needed to address rodent damage. Historic preservation specialists will complete this work to maintain the building's registered status.

6. Police Department Training Facility: While design is nearly complete, funding shortfalls from development fees have postponed construction.

7. Century House Roof: The roof replacement was completed to prevent further building

Page 270 of 658 ends

Page 14 of 15 ends

damage.

Many facility projects have partial funding for design but lack construction funds. Without timely construction, building plans require redesigns to meet updated regulations. The upcoming CIP program will consolidate limited funds to prioritize projects for completion.

Revenue Carryforwards
Some project revenues, including grants, were not received in FY 2023/24 and need to be carried forward. The proceeds from the 2024 Water Revenue Bond were received in June, and the approximately $13.0 million has been allocated initially to match the project expenditure budget. Table 10 summarizes the recommended revenue carryforwards.

Table 10 – Revenue Carryforwards

The City Council's adoption of the proposed resolution, provided as Attachment 1, will accept the FY 2023/24 year-end financial and program delivery report for the Capital Improvement Program and amend the FY 2024/25 CIP Budget.

EQUITY AND SUSTAINABILITY
Not applicable, as this item is an administrative matter of City business.

OUTREACH
No outreach was conducted, as this item is an administrative matter of City business.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the ONE Pleasanton strategic plan goal of Funding Our Future to support the City's fiscal sustainability. Examining and reviewing actual revenues and expenditures from FY 2023/24 provides staff with additional information to adjust the current

Page 271 of 658 ends

Page 15 of 15 ends

fiscal year's budget, as needed, as well as fine-tune the long-term financial forecast for more informed fiscal planning.

FISCAL IMPACT
The recommendations outlined in this report present all financial activity and changes in the FY 2023/24 CIP Budget for the City Council's approval since the last approved budget adjustments. With City Council approval, staff will update the FY 2024/25 budget for projects and revenues in various capital funds to reflect carryforward amounts in this report.

Prepared by: Submitted by: Approved by:

Chris Yi, Financial Services
Manager
Dawn DeMarcus, Senior
Budget and Finance Analyst
Susan Hsieh, Director of Finance
Siew-Chin Yeong, Director of Public
Works

Gerry Beaudin, City
Manager

Attachments:

1. Resolution Year End CIP FY 2023-24

2. CIP Estimated Changes in Fund Balance

3. FY24 Year-End CIP Report Presentation

Page 272 of 658 ends

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON ACCEPTING THE FY 2023/24 YEAR-END FINANCIAL REPORT FOR THE CAPITAL IMPROVEMENT PROGRAM (CIP) BUDGET AND AMEND THE FY 2024/25 CIP BUDGET
WHEREAS, each year a report of financial condition of the Capital Improvement Program is presented to the City Council which includes staff recommendations for budget amendments and carryovers; and
WHEREAS, staff presented to the City Council such a report for the fiscal year ending June 30, 2024.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER AS FOLLOWS:

SECTION 1: City Council accepts the FY 2023/24 Capital Improvement Program Year- End Financial Report.

SECTION 2: City Clerk shall certify to the passage of this resolution and enter it into the book of original resolutions.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on November 19, 2024.

Ayes:

Noes:

Absent:

Abstain:
__________________________
Jocelyn Kwong, City Clerk
APPROVES AS TO FORM:
_________________________
Daniel G. Sodergren, City Attorney

Page 273 of 658 ends

Attachment 2

CITY OF PLEASANTON, CA - CAPITAL IMPROVEMENT PROGRAM
Estimated Changes in Fund Balances, FY 2023/24
Fund Fund Description Beginning Balance FY24
FY24 Actual
Revenue
FY24 Actual
Expenses
Estimated Year-
End Fund Balance
Recommended
Revenue
Carryforward
Recommended
Expenditure
Carryforward
Reviwsed YE Fund
Balance
160 Gas Tax 6,175,228 $ 4,328,933 $ 2,310,325 $ 8,193,836 - $ 7,591,469$ 602,367 $ 162 Miscellaneous CIP Grants (300,142) 4,592,529 4,574,367 (281,980) 5,692,633 5,692,633 (281,980) 163 Measure B Bike & Pedestrian 556,428 6,942 140,726 422,643 - 239,219 183,424 164 Measure B - Streets/ACTC 60,378 10 - 60,388 - - 60,388 165 Measure BB Bike & Pedestrian 2,173,626 541,810 185,823 2,529,613 - 1,923,874 605,739 166 Measure F 474,080 364,964 - 839,044 - 799,822 39,222 167 Specific Plans 875,449 12,501 1,832 886,118 - 133,902 752,216 170 Measure BB - Streets/Roads 2,574,968 1,885,639 414,376 4,046,231 - 3,515,025 531,206 172 Transportation Development Grant 150,728 - - 150,728 493,513 493,513 150,728 173 JDEDZ Transportation Fee 1,012,518 14,516 - 1,027,034 - 552,497 474,537 201 Miscellaneous CIP-Gen 29,027,075 4,096,038 4,037,869 29,085,244 - 9,515,671 19,569,573 202 Downtown & North Pleas CIP 3,317,594 131,618 - 3,449,212 - 3,040,525 408,686 203 Capital Facilities Impact Fees 758,902 1,315,012 16,715 2,057,199 - 2,010,794 46,405 204 Misc Developer Contributions 592,297 8,984 - 601,281 - - 601,281 211 Street CIP - Gen 9,743,156 263,161 1,563,914 8,442,402 - 5,521,716 2,920,686 212 Traffic Impact Fees 10,542,467 842,578 475,252 10,909,794 - 10,867,827 41,967 214 Trivalley Transportation 2,308,725 109,552 - 2,418,277 - 1,852,517 565,760 215 Streets Developer Contribution 6,996,000 136,016 62,400 7,069,616 - 6,673,219 396,397 216 NPID I 82-4 1,202,283 17,107 52,693 1,166,696 - 1,145,810 20,886 221 Park CIP - Gen 2,390,166 1,706,432 559,234 3,537,364 - 367,705 3,169,659 222 Park Development Impact Fees 9,747,779 135,613 551,910 9,331,482 - 7,299,314 2,032,168 223 Parks Developer Contributions 332,813 4,752 527 337,038 - - 337,038 241 Sewer Developer Contributions 42,633 608 - 43,241 - - 43,241 421 Water Replacement CIP 6,153,976 8,062,115 13,497,916 718,174 13,134,550 10,958,464 2,894,260 422 Water Connection Fees 4,131,316 86,161 4,195 4,213,282 - - 4,213,282 426 Recycled Water CIP 2,231,985 434,895 1,332,624 1,334,256 - 300,000 1,034,256 431 Sewer Replacement CIP 11,875,677 164,686 2,421,860 9,618,502 - 4,771,984 4,846,518 432 Sewer Connection Fees 3,169,355 101,434 102,907 3,167,882 - 39,609 3,128,273 441 Storm Drain Replacement/Renov 2,283,618 329,609 753,116 1,860,111 - 1,185,236 674,875 Total* 120,601,076 $ 29,694,215 $ 33,060,582 $ 117,234,708 $ 19,320,696 $ 86,492,346 $ 96,863,527 $ * Please note there is one capital project funded in non-capital funds. The remaining budget of $80,938 for this project is recommended to be carried forward Fund Project Carryforward Amount
129 COP Urban Forest Master Plan 80,938 $
Total Carryforward from table above 86,492,346
Adjusted Expenditure Carryforward 86,573,284$

Page 274 of 658 ends

FY 2023/24 Year-End Report
Capital Improvement Program
November 19, 2024 Council Meeting
Overview
• Capital projects are multi-year projects
• Project carryforwards will be spent in
future years
• Establishing capital projects creates
opportunities for pursuing grant funds
• Infrastructure investments are critical in
supporting a livable, vibrant community
2 Planning
Design
Competitive
Procurement
Construction
Project
Closeout
Operations &
Maintenance

Page 275 of 658 ends

$86.5 Million CIP Carryforward
• The carryforward balance reflects unspent budget, not total project budgets • $61.4 million supports active projects
• $19.7 million is in reserves or on-hold projects
• $5.4 million is planned for future projects
• $69.9 million in restricted funds
• Enterprise Funds
• Development Impact Fees
• Transportation Funds (Gas Tax, Measure BB, VRF)
• Grant Funds
• $16.6 million in non-restricted funds
• Allocated primarily toward life and safety and FY 2022/23 storm repair projects 3 Summary of Carryforwards by Project Category
Category
FY 2023/24
Budget
FY 2023/24
Actuals
FY 2024/25
Carryforward
Facilities 14, 707,873$ 1,167,852 $ 4,271,044 $ Miscellaneous 7,097,312 1,026,286 5,721,026 Parks 18,432,488 1,714,840 7,583,847 Sewer 5,960,581 1,113,957 4,811,593 Storm 1,871,035 260,800 1,185,236 Transportation & Streets 63,110,608 8,215,432 51,742,075 Water 16,544,288 4,263,914 11,258,464 Total 127,724,185 $ 17,763,080 $ 86,573,284 $ 4

Page 276 of 658 ends

Completed Projects in
FY 2023/24
5 • Library Roof Replacement
• Fire Station 3
• Bernal Bridge Abutment
• Annual Street Resurfacing
• Annual Sidewalk and Intersection Ramp Improvement
• Annual Slurry Seal
• Annual Traffic Button and Line Marker
• Val Vista Underdrain Improvements
• Val Vista Community Park Playground Replacement
• Library Roof and Window Replacement
• OSC Generator Replacement
• Alviso Adobe South Wall Repair
• Citywide fence installation and repair
• St. Mary Street Parking Lot Lighting Improvements
• Augustin Bernal Mountain Bike Trail
• Cricket Pitch at Ken Mercer Sports Park
$61.4 Million of Projects in
Active Design/Construction
• Annual Water Distribution System Improvements
• Storm Drain Improvements
• W. Las Positas Blvd. Multimodal Reconstruction
• Library Lighting
• Hopyard Rd and Owen Dr. Intersection
• Lions Wayside and Delucchi Parks
• Police Department Shooting Range
• Water System Management Plan
• Bernal Ave Water Line Improvements
• Ken Mercer Motor Control Center Replacement
• Valley Avenue Soundwall Construction
• Annual Repaving Program
• Annual Curb and Gutter Program
6

Page 277 of 658 ends

CIP Next Steps
• Planning for the Future
• Water System Management Plan
• Sanitary Sewer Management Plan
• Asset Management Plan
• Storm Drain Management Plan
• Recycled Water Management Plan
• Adopt a CIP Prioritization Program
• Develop a Five-year CIP (FY 2025/26 thru
FY 2030/31
7 Recommendation
• Staff recommends that the Council receive the year-end report and approve the recommended carryovers
8

Page 278 of 658 ends

Thank You!
9

Page 279 of 658 ends

Page 1 of 17 ends

Item #17

CITY COUNCIL AGENDA REPORT

November 19, 2024
Community Development

TITLE: RECEIVE PRESENTATION ON DRAFT IMPACT FEE NEXUS STUDIES AND

PROVIDE INPUT ON RECOMMENDED CAPITAL FACILITIES FEE,

TRANSPORTATION IMPACT FEE, COMMERCIAL LINKAGE FEE,

AFFORDABLE HOUSING FEE, AND SEWER AND WATER CONNECTION FEE

AMOUNTS

SUMMARY
This study session presents drafts of two separate nexus/fee update studies that support:

Update of the City’s existing Capital Facilities Fee, Traffic Impact Fee, Commercial Linkage Fee (for housing), and Affordable Housing Fee, and Update of the Sewer and Water Connection Fees. Staff is seeking City Council input and direction on the studies, including the levels at which the various fees should be set.

RECOMMENDATION
Receive presentation on Draft Impact Fee Nexus Studies and provide input on recommended Capital Facilities Fee, Transportation Impact Fee, Commercial Linkage Fee, Affordable Housing Fee, and Sewer and Water Connection Fee amounts.

BACKGROUND
Since early 2024, City staff and a professional services team lead by Economic & Planning Systems (EPS) have been undertaking work to update the City’s Development Impact Fees and Affordable Housing Fees, and to update the existing Inclusionary Zoning Ordinance (IZO).

Related to the IZO update, amendments are also proposed to PMC Chapter 17.40 - Affordable Housing Fee, Chapter 18.38 – Housing Opportunity Zone District, and the Objective Design Standards for Housing Element Sites to align with the amendments to the IZO and other clarifying changes. As a separate effort, the City, working with Raftelis, is also completing a study to update the local water and wastewater (sewer) Connection fees.

The City Council held two workshops (May 7 and August 20, 2024) as part of the study process, with the latter focused on the update of the IZO.

At the May 7 meeting, the City Council reviewed and discussed the results of the initial analysis completed by EPS and Raftelis, including an evaluation of potential changes to the affordable housing inclusionary rate, along with other initial findings and recommendations with respect to impact fees more generally. The analysis found that new growth and the cost of infrastructure and facilities to serve it could justify significantly higher impact fees. However, the report notes there are trade-offs to be considered – in particular, setting fees at a very high level could have the negative consequence of discouraging, or making infeasible, new development or investment in the city – which could have longer-term fiscal impacts.

Regarding the water and wastewater connection fees, the initial analysis found that the City’s

Page 280 of 658 ends

Page 2 of 17 ends

fees are substantially lower than neighboring agencies’ due to the length of time since the last fee updates, and it was staff’s recommendation, supported by the City Council, to accept the maximum rate increase identified in the draft study.

At the August 20 meeting, the City Council provided direction on several aspects of the IZO, including the inclusionary rate, which the City Council supported setting at 15% for all project types (single-family and multi-family), with recommended target affordability levels for each project type. These recommendations are reflected in the Draft Inclusionary Zoning Ordinance, which the City Council reviewed on October 15, and is presented to the City Council for adoption at this November 19 meeting as a separate agenda item.

DISCUSSION
Regulatory Requirements
State law, specifically Government Code 66000 et. seq. (also known as AB 1600 or the Mitigation Fee Act) and the more recently adopted AB 602, includes various requirements with respect to the development and implementation of fee programs. Note that AB 1600 and AB 602 relate specifically to development impact fees, (i.e., in Pleasanton, the Capital Facilities Fee (CFF) and Transportation Impact Fee (TIF), as well as the Commercial Linkage Fee (fee charged to commercial development to mitigate housing impacts)). The nexus studies have been completed in accordance with all statutory requirements.

Among the requirements of AB 602 is for impact fees to be charged on a per square foot basis, unless analysis can otherwise show that a different methodology is appropriate. Under AB 602 (Government Code Section 66019.A), water, wastewater and similar utility-related fees are not required to be calculated on a per square foot basis.

The City’s affordable housing fees are a separate category of fee, related to the City’s inclusionary zoning requirements. As such, they are not “mitigation fees” subject to the requirements of AB1600/AB 602; rather, they are authorized under the general police powers given to local agencies to regulate the development and use of property. However, it is best practice for such in-lieu fees to be calculated based on a clear and defensible methodology, and for the inclusionary rate to be considered in the context of development feasibility to ensure it does not present an impediment to residential development.

Calculation of Maximum Fee Amounts
The largest part of the fee study is dedicated to outlining the methodology and calculation of various fees. It is noted the studies provide a calculation of the maximum allowable fee that the City can charge based on the nexus requirements of AB1600, or for the commercial linkage and affordable housing fee, that is otherwise supported based on the analysis. As described later in this report, as a policy matter, the City can elect to set the fee levels at, or below, the maximum amount justified by the study.

Development Impact Fees and Affordable Housing Fee Study EPS has prepared the Draft Fee Update and Nexus Study – City of Pleasanton Development Impact, Commercial Linkage and Housing In-Lieu Fee, which includes the necessary background, analysis, and documentation to support the adoption of updated fees. (Attachment 1)

The study addresses three main categories of fees:

Page 281 of 658 ends

Page 3 of 17 ends

1. Development Impact Fees, which include the City’s Capital Facilities Fee (CFF) and Transportation Impact Fee (TIF), and which offset the cost of new and expanded public facilities and infrastructure to meet the demands of new residents and employees associated with new development.

2. A Commercial Linkage Fee with respect to housing, which is intended to offset or capture the impact of new commercial development on the demand for affordable housing, in the form of contributing new employees and related housing demand.

3. An Affordable Housing Fee, also known as an “inclusionary in-lieu fee,” is levied for residential projects that are not required to build on-site affordable housing units, or that may be permitted by the City to pay fees “in-lieu” of constructing units on-site.

Capital Facilities and Transportation Impact Fees
The study outlines the methodology, assumptions and other input used to calculate the CFF and DIF, including the following basic steps:
• Estimates of projected future population and employment growth, amounting to a future estimated “service population” of residents and employees of approximately 128,510, an increase of approximately 29,167 over today’s service population (99,343). This increase in service population represents 22.7% of the service population total at the time of buildout.
• Evaluation of the necessary infrastructure and capital improvements to serve the future service population, exclusive of water and sewer improvements that are part of a separate fee study (see below).
• Cost estimates of these infrastructure and capital improvements, based on information provided by City staff and other research.
• The allocation of costs between existing and future development, and between residential and commercial uses to derive a cost per resident and per employee. • Multiplication of those costs per resident or employee, by the future service population.

With respect to capital facilities and infrastructure, the study uses a “service level” approach that determines facility improvements primarily by calculating the City’s existing service levels and extrapolating the future needs based on the available facilities today. Certain specialized facilities, such as the aquatic center and cemetery have unique characteristics that mean the service level model works less well; those facilities costs are called out separately. The study also accounts for those facilities planned or included in the City’s 5-year CIP, as well as various infrastructure master plans and similar documents. It is noted that AB 602 requires jurisdictions to adopt a "capital improvement plan" as part of the nexus study process. As outlined in the nexus study, the report includes the “Pleasanton DIF Long-Term Capital Improvement Plan (Pleasanton DIF CIP)”, which is included in the report as Appendix Table A-

1. The Pleasanton DIF CIP is specific to the nexus study, and correlates with, but does not supersede, the City’s 5-Year Capital Improvement Plan (5-Year CIP)

Rather than listing every project that may be funded by fees, the nexus study identifies a set of facility categories, within which eligible projects must fit. This approach provides the City with the most adaptability to deploy impact fees based on its priorities and needs over coming years, while providing enough definition to guide the legal use of those fees pursuant to AB

Page 282 of 658 ends

Page 4 of 17 ends

1600. As noted, impact fees can only be used to meet the proportion of facilities costs associated with new development; based on the future service population, this amounts to

22.7% of those facilities costs. This proportion is reflected throughout the impact fee calculations.

A summary of the maximum fee amounts derived from the study is provided in Table 1, below.

Note that these fees are shown on a per unit basis for residential development, to provide an easier “apples to apples” comparison with current fee amounts. A separate calculation is applied to translate this into a per square foot amount, for single-family and multi-family development (see Tables 25 and 26 in Attachment A).

It is further noted the fee includes a 2% Administrative Charge. This charge supports the costs for the City to collect, report on, and administer the fee, and helps to address the cost of this and future updates of the fee (see Fiscal Impact Analysis section, below).

Table 1: Capital Facilities and Transportation Fee, Maximum Amounts Capital Facilities Fee Transportation Impact
Fee

Land Use Current
Amount
Maximum
Amount1
Current
Amount
Maximum
Amount1
Total Max.

Fee
Residential (per unit)
Single-Family $20,483 $29,677 $11,642 $20,565 $50,243
Multi-Family $14,593 $21,016 $7,158 $11,158 $32,174
Non-Residential (per square foot, except Lodging)
Office (per sq.ft) $2.97 $13.41 $18.17 $31.50 $44.92
Commercial/Retail
(per sq.ft)
$2.16 $9.15 $26.71 $48.35 $57.50
Industrial (per
sq.ft)2
$0.95 to
$2.38
$4.02 $10.99 $17.94 $21.96
Lodging (per $1,173 $671 $7,675 $12,908 $13,579

Page 283 of 658 ends

Page 5 of 17 ends

room)
Other Uses (per
trip)
N/A N/A $11,642 $21,449 $21,449

1. Includes 2% administrative charge

2. Existing City fee schedule includes Warehouse ($0.95/sq.ft.), Light Manufacturing ($0.95), and Research & Development ($2.38 sq. ft) land use categories. These fees are proposed to be consolidated into a single “Industrial” land use category.

As shown in Table 2, below, the residential fees include a per square foot charge applicable to most units (between 824 square feet - 4,500 square feet for single-family and between 417 square feet - 1,600 square feet for multi-family). Fees are capped on a per unit basis with a ceiling and floor for large and small projects, respectively, due to nexus considerations (i.e., it is more difficult to demonstrate that units above or below a certain size have proportionally higher / lower impacts).

Table 2: Maximum Capital Facilities and Transportation Fee (Combined), Per Square Foot
Unit Type Fee per Square Foot
$20.10 per square foot (Units 824-4,500
square feet)
Minimum Fee (Units 824 square feet or less:
$16,567
Single-Family
Maximum Fee: Units 4,500 square feet or
more: $90,437
$35.95 per square foot
Minimum Fee (Units 417 sq.ft or less):
$14,982 per unit
Multi-Family
Maximum Fee (Units 1,600 square feet or
more): $57,517 per unit

Commercial Linkage Fee for Affordable Housing
The Commercial Linkage Fee represents the fee charged to commercial projects (i.e., office, retail, industrial developments) to offset or mitigate the demand they generate for new affordable units.

EPS’ analysis, contained in Chapter 5 of the study, uses projections of the estimated worker households at different affordability levels associated with new development, based on the occupational category and wage distribution of those households. Then the study estimates the “affordability gap” between market-rate units to accommodate those households, and the subsidy necessary to provide housing at affordability commensurate with those households’ needs. The aggregate subsidy is divided among the projected square footage of new non- residential development, to determine the commercial linkage fee on a per square foot basis.

The maximum fee amounts resulting from this calculation are summarized in Table 3, below.

Page 284 of 658 ends

Page 6 of 17 ends

Table 3: Commercial Linkage Fee, Maximum Amounts
Land Use Category Current Fee Amount Maximum Justifiable fee (per Square Foot)
Commercial/Retail $5.38 $578.73
Office $8.98 $142.42
Lodging $3.71 $72.86
Industrial $14.91 $143.39

As shown, the fee amounts are considerable, and far exceed the feasible amounts that could be paid by new commercial development – this imbalance is a common result in these types of analyses. As such, and as discussed in more detail below, it will be necessary to set the fee at a fraction of the maximum.

Affordable/Inclusionary Housing Fee
The Affordable Housing Fee is applied to small residential projects, below the size threshold to require on-site inclusionary units, and to larger projects subject to the inclusionary requirement, but for which the City may grant approval to pay fees in lieu of on-site construction. Chapter 7 of the study provides the detailed analysis for calculation of the fee.

The maximum justifiable amount of this fee is established based on the cost otherwise incurred to subsidize construction of affordable units on-site, in the proportion and at the affordability levels specified in the City’s Inclusionary Zoning Ordinance, as proposed to be revised.

Following the Draft IZO update, the study uses an inclusionary rate of 15% for all housing types, including ownership and rental projects. As suggested by City Council, the IZO establishes target incomes at 50% and 60% AMI for rental projects, and 120% AMI for ownership projects.

To calculate the maximum supportable fee, EPS developed prototype projects (single-family detached, townhome and multifamily apartments) to model overall development costs, and market-rate and affordable home values to understand the subsidy necessary for the affordable units. Each maximum justifiable in-lieu fee is summarized in Table 4, below:

Table 4: Inclusionary Housing In-Lieu Fee, Maximum Amounts Unit Type Current Fee
Amount (per unit)
Current Fee
Amount (per
square foot
equivalent)1
Maximum Fee (per
square foot)
Single-Family
Detached
$52,203 $17.40 $84.24
Townhome $51,077 $25.54 $42.10
Multi-Family
(Condominiums)
$51,077 $63.84 $54.87
Multi-Family
(Rental)
$51,077 $63.84 $69.19

1. Assumes Single Family Detached unit is 3,000 sq.ft, townhome is 2,000 square feet, and multi-family condos and rental units are 800 square feet

Water and Wastewater Connection Fees

Page 285 of 658 ends

Page 7 of 17 ends

Raftelis has prepared the Draft Water and Wastewater Connection Fee Study, which includes the necessary background, analysis and documentation to support the adoption of updated fees. (Attachment 2)

The study addresses the water and wastewater connection fees which covers the cost for new and expanded water and sewer infrastructure (pipes, tanks, pump stations, etc.) to meet the demands of new residents and employees. The analysis breaks down the demands and costs for new development into a base rate for a single-family residential (SFR) home and then scales the rates in comparison to the base capacity/demand. For water, the base rate is based on the smallest meter offered by the City which is a 5/8” meter which accommodates the typical SFR home.

For wastewater, the base rate is based on SFR home unit and then scaled by equivalent dwelling units (EDU) ratios for different customer classifications. The EDU converts the wastewater demands from a SFR home to various customer classifications based on per square foot basis and incorporates a factor to adjust for the strength of the wastewater. The EDUs were previously established by the City and Dublin San Ramon Services District (DSRSD), which operates the facility that treats the wastewater conveyed to it through the City-operated sewer system.

Tables 5 and 6 indicate the maximum justifiable connection fee amounts, for water and wastewater, respectively.

Table 5: Water Connection Fees (See Attachment 2, Tables 8 and 9 for full list of water connection fees
Meter Size Meter
Capacity
Current Fee 2024 Update
Maximum Allowable
Percent Change
5/8" 25 $1,200 $2,721.29 227%
3/4" 35 $1,800 $3,809.81 212%
1" 55 $3,000 $5,986.84 200%

1.5" 120 $6,000 $13,062.20 218%

Table 6: Wastewater Connection Fees by Equivalent Dwelling Unit (See Attachment 2, Table 10 for full list of wastewater connection fees)

EDU
Ratio
Factor Current
Fee
2024 Update
Maximum
Allowable
Percent
Change
Single Family
Residential (SFR) 1 unit $500 $556.24 111%
Secondary
Dwelling Unit 0.004
square
foot $2 $2.22 111%

Page 286 of 658 ends

Page 8 of 17 ends

Townhome/Duplex 1 per unit $500 $556.24 111%
Condominium 0.75 per unit $375 $417.18 111%
Apartment/Mobile
Home 0.66 per unit $330 $367.12 111%

Recommendations and Alternatives for Development Impact Fees, Commercial Linkage Fees and Housing In-Lieu Fees
Table 7 summarizes each of the fees, and the maximum supportable fee levels, for the CFF, TIF, Commercial Linkage and Inclusionary Housing In-Lieu Fee (Affordable Housing Fee).

Table 7: Summary of Development Impact Fees and Housing Fees – Maximum Amounts

Policy Considerations
As outlined above, the fee study indicates that increases to the majority of the City’s fees can be justified based on the analysis. In some cases, the fee increases, if charged at the maximum rates justified, could be substantial and, in the aggregate, could cause projects to become financially infeasible, based on reasonable development expectations regarding returns on investment. As such, it could negatively impact the City’s ability to see longer-term returns of property tax and sales tax revenue that come with new investment or affect the ability to meet other policy goals such as achieving Regional Housing Need Allocation (RHNA) targets.

Alternatively, the City could choose to actively seek to support certain types of investments or land uses, by setting fees somewhat lower, making the overall prospect of developing in

Page 287 of 658 ends

Page 9 of 17 ends

Pleasanton relatively more attractive as a location for new commercial and/or residential development.

If the City Council agrees it is prudent not to set some or all fees at the maximum, then there are policy decisions to be made about which specific fees should be reduced. For example, as a matter of policy, the City Council could decide it is preferable to collect more TIF by setting it at or close to the maximum supportable amount; however, doing so would require a reduction in another fee category, such as the CFF or commercial linkage fee for affordable housing, to keep the fee burden within the feasible range.

To help frame the recommendations and alternatives, EPS developed estimates of the capacity of various types of residential development to absorb fee increases, while remaining financially feasible. In cases where the aggregate increases in fees would exceed this fee burden capacity, options are provided for City Council consideration with respect to fee adjustments.

As a second point of reference, and with the assumption that Pleasanton wishes to remain somewhat comparable or competitive with peer jurisdictions, EPS summarized the average fee burden charged by our peer jurisdictions in those same development categories where feasible. This analysis resulted in a series of alternatives for City Council consideration, for each of the major land use categories.

Residential: Single-Family Detached Fee Alternatives
Two alternatives are proposed, summarized below and with the resultant fee amounts shown in Table 8.

Alternative 1: Adopt all fees at the maximum level supported by the fee and nexus studies.

Alternative 2: (Recommended)
• Charge the CFF and TIF at the maximum level; and
• Set the Affordable Housing Fee in-lieu at $42.10 per square foot, equivalent to the maximum fee for townhome units.

Table 8: Single-Family Detached: Fee Alternatives
Alternative 1
(Maximum Fee Amounts)
Alternative 2: Reduce In-Lieu
Housing Fee
(Recommended)
Fee
(Per Sq. Ft.)
Fee
(Per Unit)
Fee
(Per Sq. Ft.)
Fee
(Per Unit)
Capital Facilities
Fee
$11.87 $35,613 $11.87 $35,613
Transportation Fee $8.23 $24,678 $8.23 $24,678
Affordable Housing
Fee
$84.25 $252,750 $42.10 $125,300
Total Fee Burden $124.44 $313,041 $62.20 $186,591

Estimated Fee
Burden “Capacity”
$228,280

Page 288 of 658 ends

Page 10 of 17 ends

Peer Jurisdictions:

Average Fee
Burden
$162,890

Staff recommends Alternative 2, which discounts the affordable housing in-lieu fee to a level that is within the feasible burden, and similar to the total fee burden charged by peer jurisdictions.

While this may have the consequence of encouraging more projects to seek to “fee out” of their on-site affordable requirement, the City Council would have the discretion to approve such requests, and even if such requests were approved, it would not have a significant effect on affordable housing production. At the same time, this alternative would reduce burden on smaller residential projects that qualify to pay the fee per the IZO. These small projects, that usually involve one or a handful of single-family units on infill sites, are predominantly built by individuals and small investors, and comprise the largest share of remaining new single-family home construction in Pleasanton.

Residential – Townhomes: Alternative
It is recommended the City adopt CFF, TIF and Affordable Housing Fees at the maximum level supported by the study for townhome projects. No other alternatives are proposed for this fee category. See Table 9

The total fee burden is within the estimated capacity for this type of development, meaning it can support the increased fees as recommended and justified by the fee study. Note that the peer cities comparable average is not provided for townhomes, because staff found that different jurisdictions classify and/or group townhomes differently, with some putting them into the same category as detached SFR, and others grouping them with attached units such as apartments.

Table 9: Residential Townhomes – Fee Recommendation
Recommendation: Adopt Maximum Fees
Fee (Per Sq. Ft.) Estimated Fee (Per
Unit)1
Capital Facilities Fee $11.87 $23,742
Transportation Fee $8.23 $16,452
Affordable Housing Fee $42.10 $84,200
Total Fee Burden $62.20 $124,394

Estimated Fee Burden “Capacity” $118,096

1. Representative fee, for a typical 2,000 sq. ft. townhome unit

Residential – Multi-family (Rental Apartments and Condominiums): Alternatives As previously noted, market conditions for the construction of multi-family projects are extremely challenging at present. Based on EPS’ analysis, under current conditions there is no capacity to increase fees, since development costs, in general, including fees under today’s rates, cannot produce financially feasible projects. With this in mind, two alternatives are proposed, with Alternative 2 having two sub-options:

Page 289 of 658 ends

Page 11 of 17 ends

Alternative 1: Retain aggregate local fees (Impact Fees and Affordable Housing Fees) for multi-family development at approximately the same level as today ($92.00 per square foot)

Alternative 2: Reduce aggregate fees to match the average of comparable peer cities, that is approximately $78.00 per square foot, or $62,500 per unit (peer jurisdictions are Dublin, Livermore, San Ramon, and Walnut Creek).

In this alternative, the reductions could be achieved, depending on the policy priorities of the City Council by either:
• Option 2A: Lowering the Affordable Housing In-Lieu Fee • Option 2B: Lowering the CFF and TIF.

The alternatives are illustrated in Table 10, below:

Table 10: Residential Multi-Family – Fee Alternatives
Alternative 1
Retain Existing
Aggregate Fee Level
Alternative 2
Lower Aggregate Fee to Regional Average

Alternative 2A
Reduce Affordable
Housing Fee,
Maximize CFF and
TIF
Alternative 2B
Reduce CFF and TIF,
Maximize Housing
Fee

Fee
(Per Sq.

Ft)
Fee
(Per
Unit)*
Fee
(Per Sq.

Ft.)
Fee
(Per
Unit)*
Fee
(Per
Sq. Ft.)
Fee
(Per Unit)*

Capital Facilities
Fee
$23.48 $18,785 $23.48 $18,785 $5.86 $4,685
Transportation Fee $12.47 $9,973 $12.47 $9,973 $3.11 $2,488 Affordable Housing
Fee
$56.05 $44,841 $42.21 $33,766 $69.19 $55,352
Total Fee Burden $92.00 $73,600 $78.16 $62,525 $78.16 $62,525

Estimated Fee
Burden “Capacity”
$0
Peer Jurisdictions:

Average Fee
Burden per Unit
$62,525

Staff recommends Alternative 2A, to reduce the Affordable Housing In-lieu fee, and charge the TIF and CFF at the maximum supportable, with the aggregate fees at the average of peer jurisdictions.

While this may encourage more projects to seek to “fee out” of their on-site affordable housing requirements, doing so would be at the discretion of City Council, with no obligation to approve such requests. At the same time, heavily discounting the CFF and TIF will impede the City’s ability to provide new transportation and capital facilities infrastructure to meet the needs of

Page 290 of 658 ends

Page 12 of 17 ends

this new development, which will constitute the largest share of new growth in Pleasanton in coming years. To the extent multi-family development is viable anywhere in the Tri-Valley, Pleasanton’s fees will be on a par with peer jurisdictions.

In conjunction with Option 2A, as a secondary recommendation, and as discussed at the August 2024 meeting, the City Council could consider offering near-term relief to residential multi-family projects by allowing multi-family projects to “fee out” of up to 33% of their inclusionary requirement (without additional City Council approval), for a period of up to two years following the effective date of the IZO’s adoption.

This strategy would recognize the challenges of the current market, and interest in promoting multi-family development to help meet the City’s RHNA. As currently proposed, the fee would represent a lower cost than the cost to construct on-site, providing some financial relief for these projects, while still having them mitigate the majority of their affordable housing demands on-site. The disadvantage of this approach is that it would potentially reduce the number of deed-restricted affordable housing units constructed during the initial period.

Non-Residential Fees
For non-residential development, for simplicity, the alternatives are presented using the “Office” land use category only, rather than providing a multitude of scenarios for each commercial land use type. The Office category serves as an appropriate proxy because non- residential impact fees are usually derived using similar per unit demand factors (e.g., trips or employees per square foot) that vary proportionally by land use category (e.g., the relationship between office and industrial fees are roughly similar by City).

That said, some cities provide policy-based fee discounts to incentivize certain types or locations of development (e.g., for retail or near transit). The recommendation for Office would be carried forward to other non-residential uses in a proportionate manner, unless the City Council wanted to explore alternatives that would (for example) discount fees for one type of use compared to another.

It is further noted that the maximum Commercial Linkage fee for affordable housing, justified by the study, is well above any feasible level. Therefore, the alternatives provided below assume the existing commercial linkage fee per square foot as the baseline, with changes up or down from this level.

Three alternatives are presented, and illustrated in Table 11:

Alternative 1: Increase CFF and TIF to Maximum Supportable. This alternative would set the CFF and TIF fee at the maximum supportable by the Nexus Study; that is $13.41, and $31.50 per square foot, respectively. The Commercial Linkage Fee would remain at its current rate ($3.71). The aggregate fee would total $48.62 per square foot.

Alternative 2: Retain the total aggregate existing fee, inclusive of the CFF, TIF and Commercial Linkage Fee of $30.12/square foot. In order to retain the existing fee, the TIF and CFF would be set to equal one another (at $13.41 per square foot) and the remaining fee amount (i.e., $3.29) would be allocated to the Commercial Linkage fee.

Alternative 3: Lower the total aggregate fee to $22.78, reflective of the average fee burden

Page 291 of 658 ends

Page 13 of 17 ends

across peer jurisdictions (Dublin, Livermore, San Ramon, Walnut Creek). In order to lower the overall fee burden, each fee amount from Option 1 would be further reduced by about 24%.

Table 11: Non-Residential – Fee Alternatives

Staff recommends the City Council adopt Option 3, which would bring the aggregate multi- family fee down to be more in line with that of the average of peer jurisdictions and ensure that Pleasanton remains regionally competitive as a location for commercial investment.

To the extent commercial development is financially viable anywhere in the Tri-Valley or within peer cities, Pleasanton’s fees will be on a par with peer jurisdictions. Setting the fee higher than this level is not recommended, because it would make Pleasanton less competitive as a location to do business in the region, potentially affecting long-term investment and property and sales tax revenue.

Applicability of Updated Fees to Projects in Process
With respect to projects in process and with active applications, it is recommended City Council adopt a policy regarding applicability of the new fees to such projects. While some projects are “vested” to the existing fees pursuant to State law (e.g. SB 330, Subdivision Map Act), it would be beneficial to provide clarity to current applicants as to the fees to which they will be subject. Attachment 3 provides a draft recommended policy with respect to projects in process – this is modeled on a similar policy adopted with the 2018 update, and generally proposes that the following types projects will still be subject to the existing fee, after the new fees are adopted:
• Projects not subject to legislative approval (i.e. not requiring a zoning or General Plan amendment, or subject to annexation), if “deemed complete” by the effective date of the fees
• Projects subject to legislative approval, if “deemed complete, or have been in process for three months or more, or accomplished other milestones constituting a significant financial investment, such as initiation of a CEQA process, or conducting a City Council or Planning Commission work session, by the effective date Alternative 1
Increase CFF
and TIF to
Maximum
Allowable
Alternative 2
Match Existing
Aggregate Fee
Alternative 3
Discount Fee to
Match Peer Cities
Average
Fee per Sq. Ft. Fee Per Sq. Ft. Fee Per Sq. Ft.

Capital Facilities Fees $13.41 $13.41 $10.15
Transportation Fees $31.50 $13.41 $10.15
Commercial Linkage
Fee
$3.71 $3.29 $2.49
Total Fee Burden $48.72 $30.12 $22.78

Peer Jurisdictions:

Average Fee Burden per
Sq. Ft
$22.78

Page 292 of 658 ends

Page 14 of 17 ends

• Project with a Building Permit application deemed substantially complete by the effective date.

These provisions would not supersede or replace vesting conferred by provisions of State law or an existing Development Agreement, would still apply any annual cost adjustments as reflected in the Pleasanton Municipal Code, and would not preclude the City and a developer from negotiating fees as part of a development agreement or similar mechanism.

Summary of Recommendations
For convenient reference, the various fees and the alternatives are summarized below:

Topic Summary of Alternatives and Staff
Recommendation

1. Sewer and Water Connection Fees, All
Connection Types
No Alternatives proposed
RECOMMENDATION: Adopt Sewer and
Water connection fees at Maximum Levels

2. Single Family Detached, TIF, CFF and
Affordable Housing Fees
Alternative 1: Adopt maximum fee levels
Alternative 2: Reduce Single Family
Detached Affordable Housing In-Lieu fee
amount to $42.10 per square foot to match
Townhomes

RECOMMENDATION: Adopt Alternative 2

3. Residential Townhomes, TIF, CFF and
Affordable Housing Fees
No Alternatives proposed

RECOMMENDATION: Adopt CFF, TIF and
AH In-Lieu Fees at Maximum Levels

4. Residential – Multifamily Apartments
and Condominiums, TIF, CFF and
Affordable Housing Fees
Alternative 1:Maintain existing aggregate fee
level
• Alternative 2: Reduce aggregate fee
level to the average of peer
jurisdictions
o Option 2A: Focus reductions
on Affordable Housing In-Lieu
Fee, with secondary
recommendation for 2 year “fee
out” option for up to 30% of
inclusionary units

o Option 2B: Focus reductions
on CFF and TIF

RECOMMENDATION:Adopt Alternative

Page 293 of 658 ends

Page 15 of 17 ends

5. Commercial, TIF, CFF and Affordable
Housing Linkage Fee
Alternative 1: Increase CFF and TIF to
Maximum Allowable
Alternative 2: Maintain existing aggregate
fee level
Alternative 3: Reduce aggregate fee level to
the average of peer jurisdictions

RECOMMENDATION: Adopt Alternative 3,
to set commercial impact fees at the
average of peer jurisdictions

6.Policy for Applicability of Updated Fees RECOMMENDATION: Adopt Policy as outlined in Attachment 3, which would
provide exceptions for development
projects that are in process

Next Steps
Based on City Council direction, staff will update and prepare final drafts of the two fee studies, and the PMC and ODS Amendments for formal review and adoption in December. The City Council will also consider adopting the new Capital Facilities, Transportation, Commercial Linkage, Water and Wastewater Connection, and Affordable Housing Fees.

Pursuant to State Law, fees become effective 60 calendar days after adoption. Therefore, if the second reading of the ordinances for adoption are held on January 7, 2025, the fees would become effective on March 8, 2025.

CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
The adoption of the amendments to the various fees are not considered a project under CEQA Guidelines Section 15378 because the amendments do not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment; the amendments create government funding mechanisms which do not involve any commitment to any specific project. As projects are developed and proposed for implementation, the environmental impacts of such facilities would be evaluated in accordance with CEQA

EQUITY AND SUSTAINABILITY
Adopting the updated fees helps to advance equity and sustainability goals by ensuring that new development contributes to the necessary facilities and infrastructure, including upgrading buildings and facilities to meet energy efficiency standards, and expanding facilities to meet the needs of all segments of the community. Updating affordable housing fees will help to increase the inventory of below-market rate units by collecting fees that support the City’s affordable housing programs and production.

OUTREACH
Notice of this meeting was placed in the Valley Times, and interested parties requesting

Page 294 of 658 ends

Page 16 of 17 ends

notification were also sent notices, as were developers whose email contact information is maintained by the City.

Staff presented the key findings of the fee update to meetings of the Chamber of Commerce Economic Development and Government Relations (EDGR) Committee, and the City’s Economic Vitality Commitee, at meetings in October.

STRATEGIC PLAN ALIGNMENT
Completion of these updates is consistent with the ONE Pleasanton Strategic Plan and with the 6th Cycle Housing Element:

ONE Pleasanton Strategic Plan.Goal A – Funding Our Future: Strategy 7: Conduct an analysis and update development fees to keep pace with new development costs.

Housing Element Program 2.1:Continue to implement the Inclusionary Zoning Ordinance and actively pursue strategies to improve its effectiveness in producing affordable housing units in conjunction with new development. The following actions will be undertaken by the City:
• Study the following amendments to the Inclusionary Zoning Ordinance and adopt such amendments provided they are not found to be an undue constraint on the production of housing:
o An increase to the proportion of inclusionary units required in multi-family projects to be up to 20 percent, rather than the current 15 percent requirement.

Identification of a target mix of affordable units (including proportions of very-low, low- and moderate-income units), with the potential for an alternative mix of affordability to be proposed and approved if it would better meet other housing policy objectives to do so. For example, if the project provided deeper affordability, and/or resulted in the production of units suitable for special needs groups such as seniors or persons with mental or physical disabilities. Target affordability mix and unit size standards, including a required proportion of larger (three or more bedroom) lower-income units, may be implemented through Objective Design Standards (Program 4.2) or the amended Inclusionary Zoning Ordinance.

Housing Element Program 2.2: Require new commercial development to pay the Lower- Income Housing Fee established by City Ordinance and adopted by the City, or to otherwise mitigate demand for new employee housing as allowed by the Pleasanton Municipal Code (e.g., through construction of units or dedication of land). Regularly evaluate the amount of these fees to ensure that they: (1) remain commensurate with the needs generated by the development; (2) are established at a level proportionate with the actual cost to provide new housing; and (3) are in conformance with State law while ensuring that Pleasanton remains locally and regionally competitive in attracting new commercial investment.

FISCAL IMPACT
Adopting the fees would have a neutral or beneficial fiscal impact, since it would better align proposed fees levied on new development with the capital facilities, infrastructure and housing

Page 295 of 658 ends

Page 17 of 17 ends

needs of the community, as documented in the EPS and Raftelis Fee studies. The TIF and CFF are proposed to include a 2% administrative charge, which is permissible to address the administrative costs of preparing, revising and updating the Nexus Studies; as these fees are received, they may be used to reimburse the General Fund for the cost to prepare the current Nexus Studies and future updates. The total amount authorized by City Council for the 2024 Nexus Study update is $203,928.

Prepared by: Submitted by: Approved by:

Ellen Clark, Director of
Community Development
Ellen Clark, Director of Community
Development

Gerry Beaudin, City
Manager

Attachments:

1. Draft Nexus Study - City of Pleasanton Development Impact Fee and Affordable Housing Impact Fee

2. Draft Water and Wastewater Connection Fee Study

3. Draft Policy Regarding Applicability of Updated Fees to Projects in Process

4. Presentation Slides

Page 296 of 658 ends

Draft Fee Update and Nexus Study
City of Pleasanton Development
Impact Fee, Commercial Linkage
Fee, and Affordable Housing In-
Lieu Fee
Prepared f
or:

City of Pleasanton
Prepared by:

Economic & Planning Systems, Inc.

EPS #231081
October 2024
ATTACHMENT 1

Page 297 of 658 ends

Table of Contents
Introduction ................................................................................................. 4 Legal Context ............................................................................................... 4 Summary of Maximum Allowable Fees .............................................................. 7 Summary of Methodology ............................................................................... 9 Demographic and Land Use Assumptions ........................................................ 10 Facility Needs and Costs .............................................................................. 15 Cost Allocation and Fee Calculation ................................................................ 18 Capital Needs, Costs, and Allocation .............................................................. 24 Transportation Fee Calculations ..................................................................... 25 Methodology .............................................................................................. 27 Nexus Findings ........................................................................................... 40 Summary of Impact Fees ............................................................................. 41 IZO Policy Scenarios .................................................................................... 45 Methodology .............................................................................................. 46

Page 298 of 658 ends

List of Tables
Table 1 Summary of Maximum Fee Calculations ....................................................... 7 Table 2 Existing Service Population Factor Estimate ................................................. 11 Table 3 Existing Development and Development at Buildout ...................................... 12 Table 4 Forecasted Service Population Estimate ...................................................... 13 Table 5 Average Household Size and Density Assumptions ........................................ 14 Table 6 Parks and Recreation Facilities Service Level ................................................ 16 Table 7 Pleasanton Public Facilities Service Levels ................................................... 17 Table 8 Specialized Facilities ................................................................................. 18 Table 9 Costs Attributable to Growth ..................................................................... 19 Table 10 Costs per Facility Category ...................................................................... 20 Table 11 Facilities Costs per Resident & Employee ................................................... 21 Table 12 DIF Calculation Summary ........................................................................ 22 Table 13 Capital Facilities Fees Summary ............................................................... 23 Table 14 Transportation Costs included in Fee Program ............................................ 25 Table 15 DUE Growth .......................................................................................... 26 Table 16 Transportation Fee Calculation ................................................................. 26 Table 17 Income Distribution of Worker Households by Employment Category ............. 30 Table 18 Household Generation Rates by Employment Category ................................ 31 Table 19 Affordability Gap Analysis ....................................................................... 34 Table 20 Fee Calculation – Office........................................................................... 36 Table 21 Fee Calculation – Commercial / Retail ....................................................... 37 Table 22 Fee Calculation – Industrial ..................................................................... 38 Table 23 Fee Calculation – Lodging ........................................................................ 39 Table 24 Capital Facilities & Transportation Fees...................................................... 42 Table 25 Capital Facilities & Transportation Single Family Fee Per Sq. Ft. Conversion .... 43 Table 26 Capital Facilities & Transportation Multifamily Fee Per Square Foot Conversion 44 Table 27 Inclusionary Housing Requirements .......................................................... 46 Table 28 Prototype Development Costs (per unit) .................................................... 48 Table 29 Affordable Home Values .......................................................................... 49 Table 30 Inclusionary In-Lieu Fee Calculations ........................................................ 50

Page 299 of 658 ends

Pleasanton City CouncilNovember 19, 2024

Pleasanton City Council
November 19, 2024