Pleasanton City Council
May 20, 2025

frequency: the two BART Stations are classified as “Tier 3” stations and the ACE Station as a “Tier 4” station. In addition to tiered density/intensity and parking standards, the policy offers, in several areas, a “menu” of strategies and programs that can be deployed to meet key objectives of the program, under the following four key areas or topics:
• Minimum densities for new residential and commercial office development • Affordable housing production, preservation, protection, and anti-displacement and stabilization
• Parking management
• Station access and circulation.

Attachment 2 provides an outline of the TOC policy, and an initial evaluation of compliance relative to existing standards and policies in place and implications for Pleasanton with respect to potential policy changes for the various stations.

While the TOC Policy broadly contemplates that jurisdictions will ultimately comply with all policy requirements, in practical terms, compliance will be both evaluated and implemented progressively. As described in the memorandum, many of the City’s existing zoning, programs, and policies align with the TOC Policy, and/or are already subject to requirements of State law in alignment with the TOC Policy. However, there are other areas in which the City will need to evaluate and consider revisions to existing regulations, or the addition of policies or programs toward achieving better compliance.

MTC-ABAG is currently developing its evaluation frameworks for “compliance” with the TOC Policy. Based on recent drafts, the compliance evaluation will provide some flexibility to local jurisdictions through a scoring framework that provides a scaled approach:
while full compliance will not be a pre-requisite to receive any funding, more compliant and “fully compliant” jurisdictions will have access to more funding opportunities. There is a geographic component, in that for cities with multiple stations subject to the TOC Policy, compliance does not need to be “even” across all stations, but the scoring criteria will take into account compliance for each station, factored into an overall compliance score.

The City’s initial compliance focus is expected to be on the east BART station, since this station is the location of the future Valley Link hub and the site of the BART site redevelopment; planned development densities, and supportive strategies with respect to density, parking and station access have a high degree of correlation to the TOC Policy Framework. And, as plans for the Stoneridge Shopping Center progress, staff anticipates there will be a similar degree of correspondence between the vision for the mall to evolve to a relatively high density, mixed use center that is well-connected to transit and the TOC policy.

Whereas, within the Downtown (much of which lies within a half-mile of the ACE Station), there is much greater sensitivity around the “fit” and character of new development, parking and other issues, and so seeking full TOC Policy compliance is likely to be a lesser focus.

The practical effect is that future OBAG 4 grants and investments, including Local Streets and Road Maintenance, Bicycle and Pedestrian Improvements, Safe Routes to School Projects, and Transportation Planning projects, will, as in past cycles, target transit-oriented and Priority Development Areas and support focused growth at the stations prioritized for transit-oriented development.

EQUITY AND SUSTAINABILITY
Equity and sustainability are both a strong focus of the TOC Policy, particularly the furtherance of investments in areas proximate to major transit stations, promoting decreased reliance on automobiles, and providing access to affordable housing opportunities.

OUTREACH
No outreach was conducted, since this is a routine item of City business.

STRATEGIC PLAN ALIGNMENT
Taking steps toward compliance with the TOC policy is supportive of the ONE Pleasanton Strategic Plan goal of Building a Community where Everyone Belongs - Strategy 6 to implement the Housing Element, since the Technical Assistance grants will support the Housing Element program around redevelopment of the east Dublin/Pleasanton BART station, and nearby Housing Element sites in Hacienda. It will also help the City leverage future grant funding for transportation and infrastructure projects around transit stations, supporting strategic plan goals to advance capital projects and invest in the CIty's infrastructure.

FISCAL IMPACT
There is no direct fiscal impact associated with this action. However, advancing progress toward TOC Policy compliance will enhance the City’s eligibility for future OBAG 4 funding from MTC-ABAG. The funding also supports planning efforts the City is required to undertake pursuant to the Housing Element and thus reduces the need to use City General Funds for this purpose.

Prepared by: Submitted by: Approved by:

Shweta Bonn, Senior
Planner
Ellen Clark, Director of Community
Development
Gerry Beaudin, City
Manager
Attachments:

1. Resolution

2. Memorandum Summary of TOC Policy and Compliance

ATTACHMENT 1
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON TO

COMMIT TO TAKE STEPS TOWARD ACHIEVING COMPLIANCE WITH THE METROPOLITAN TRANSPORTATION COMMISSION’S (MTC'S) TRANSIT-ORIENTED

COMMUNITIES (TOC) POLICY AS A CONDITION FOR MTC TO ALLOCATE

REGIONAL DISCRETIONARY FUNDING TO TOC PLANNING AND

IMPLEMENTATION GRANTS PROGRAM
WHEREAS, the MTC adopted Resolution 4530, the TOC Policy; and WHEREAS, the TOC Policy incentivizes local jurisdictions to plan and zone for higher residential and commercial densities in areas within one half-mile of existing and planned fixedguideway transit stops and stations to support the region’s transit investments and implement key GHG reduction strategies from Plan Bay Area 2050; and
WHEREAS, incentivizing local jurisdictions to also adopt policies focused on increasing housing production of all types, particularly affordable housing production, preservation and protection, commercial anti-displacement and stabilization, parking management, and transit station access and circulation further supports regional transit investments and Plan Bay Area 2050 implementation; and
WHEREAS, in 2023 MTC identified two Tier 3 and one Tier 4 TOCs in the City of Pleasanton; and
WHEREAS, MTC conditions the allocation of regional discretionary funding for fixedguideway transit extension projects on compliance with the TOC Policy; and WHEREAS, MTC anticipates that future regional funding, such as the One Bay Area Grant (OBAG) program, will consider compliance with the TOC Policy as part of the prioritization and project selection process starting with OBAG 4, expected in 2026; and WHEREAS, the TOC Policy establishes different compliance expectations for existing and planned station areas based on the level of transit service; and WHEREAS, the TOC Policy identifies four TOC Policy areas (density, housing affordability, parking, and access/circulation); and
WHEREAS, on September 30, 2024, the MTC announced a Call for Projects for Transit Oriented Communities (TOC) Planning and Implementation Grants, and informed local jurisdictions of a November 22, 2024, deadline for submittals of Applications, as well as grant application guidance and requirements including compliance with the Transit Oriented Communities Policy.

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

SECTION 1. The City submitted a grant application/grant applications to MTC for $150,000 for Station Area Planning and $150,000 for Parking Management, in response to the MTC’s Call for TOC Planning and Implementation Projects; and

Resolution No.

SECTION 2. The City is accepting a grant award from MTC for $150,000 for Station Area Planning and $150,000 for Parking Management in response to the MTC’s Call for TOC Planning and Implementation Projects; and
SECTION 3. The City commits to completing the associated BART Concept Plan and TOC Implementation Plan following an MTC grant award by applying for these funds; and SECTION 4. The City intends to adopt relevant plans, policies or zoning updates emerging from the work completed through the BART Concept Plan and TOC Implementation Plan grant to comply with the TOC Policy requirements.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on May 20, 2025.

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 the 20th day of May, 2025, by the following vote:

Ayes:

Noes:

Absent:

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

MEMORANDUM
Date:

To:

From:

Re:

May 20, 2025
Gerry Beaudin, City Manager
Ellen Clark, Director of Community Development
Shweta Bonn, Senior Planner
MTC-ABAG Transit Oriented Community Policy: Outline and Initial Evaluation Within Pleasanton, the MTC-ABAG Transit-Oriented Communities Policy conceptually applies to areas within one half-mile of the two BART stations and the ACE train station.

Exhibit A shows the properties within one half-mile of each of these three stations, based on the measurement method prescribed in MTC-ABAG’s administrative guidance. The TOC policy classifies different types of transit stops/stations based on frequency/type of transit service, with the two BART Stations classified as “Tier 3” stations and the ACE Station as a “Tier 4” station. These tiers are used to specific target standards around elements such as density/intensity of development, and minimum and maximum parking ratios/requirements.

The TOC policy and related administrative guidance are structured around four key topics or themes, within which compliance must be demonstrated for the half-mile area to retain funding eligibility:
• Minimum densities for new residential and commercial office development • Affordable housing production, preservation, protection, and anti-displacement and stabilization
• Parking management
• Station access and circulation
In addition to tiered density/intensity and parking standards, the policy offers, in several areas, a “menu” of strategies and programs that can be deployed to meet key objectives of the program.

The following provides an initial evaluation of implications for Pleasanton with respect to future compliance, within each of the above four topic areas. This evaluation is based on the adopted MTC: Administrative Guidance, TOC Policy document, dated May 5, 2025.

ATTACHMENT 2

2 1. Density for New Residential and Commercial Office Development The TOC Policy established minimum density and intensity requirements for any TOC areas where eligibility for grant funding may be sought.1 The City is not required to change the zoning of properties within the TOC areas for specific land use or density. Still, the properties would need to meet the zoning density and intensity requirements identified in the TOC Policy if the existing zoning allows new residential, office, or mixed-use development.

The density requirements vary based on “tiers;” as noted, the two BART stations are considered “Tier 3” and the ACE station is considered “Tier 4.” 2 Minimum and maximum densities are summarized in Table 1 below.

Table 1: TOC Policy Density Requirements
TOC
Area
Residential
Average
Minimum
Density
Residential
Average
Maximum
Density
Commercial
Office
Average
Minimum
FAR
Commercial
Office
Average
Maximum
FAR
Two
BART
Stations
(Tier 3)
50 units/net
acre or
higher
75 units/net
acre or
higher
2 or higher 4 or higher
ACE
Train
Station
(Tier 4)
25 units/net
acre or
higher
35 units/net
acre or
higher
1 or higher 3 or higher
In general, the residential densities are in line with those that have already been adopted for housing sites on and around the Dublin/Pleasanton BART Station; for example, the BART station itself is designated at 75 units to the acre; the nearby Oracle site at 50-75 units to the acre.

With respect to Downtown, current residential densities are varied and, in some instances, fall below the minimums and maximums (e.g., RM-4,000 District), whereas in others (C-C District), they come close to the TOC Standards and/or FARs. It is unlikely that full compliance with the Tier 3 Standards will be sought as a priority.

2. Affordable Housing Production, Preservation, and Protection Policies and Commercial Stabilization Policies
The TOC policy requires the City to adopt at least two policies from a menu of options in each of the affordable housing “production,” “preservation,” and “protection” categories, in 1 If maximum density requirements are also adopted by the City, they must support robust transit-oriented development; height maximums are not specified in the TOC policy but must not limit building heights to preclude the development prescribed in the TOC Policy.
2 The minimum density/intensity in a given zoning district where housing and/or commercial office uses are permitted may be below the TOC Policy thresholds as long as the average across the TOC area meets the requirement.

3 addition to one commercial stabilization policy3. The policies may apply only to the TOC areas, or the City may choose to apply the policy citywide. The table below, excerpted from the TOC Policy Implementation Guidance, provides an overview of the range of policies the City could select to meet compliance, and more details are provided in the Guidance.

Table 2: TOC Implementation Guidance Excerpt for Affordable Housing Production, Preservation, and Protection
Affordable
Housing
Production
Policy
Affordable
Housing
Preservation
Policy
Affordable
Housing
Protection
and AntiDisplacement
Policy
Commercial
Stabilization
Policy
Select at least 2
policies
Select at least 2
policies
Select at least
2 policies
Select at
least 1 policy

1. Inclusionary
Zoning
Funding to
Preserve
Unsubsidized
Affordable Housing
“Just Cause”
Eviction
Small
Business and
Non-Profit
Overlay Zone

2. Affordable
Housing Funding
Tenant/Community
Opportunity to
Purchase
No Net Loss
and Right to
Return to
Demolished
Homes
Small
Business and
Non-Profit
Preference
Policy

3. Affordable
Housing Overlay
Zones
Single-Room
Occupancy (SRO)
Preservation
Legal
Assistance for
Tenants
Small
Business and
Non-Profit
Financial
Assistance
Program

4. Public Land for
Affordable
Housing
Condominium
Conversion
Restrictions
Foreclosure
Assistance
Small
Business
Advocate
Office

5. Ministerial
Approval
Public/Community
Land Trusts1
Rental
Assistance
Program

6. Public/Community
Land Trusts1
Funding to Support
Preservation
Capacity
Rent
Stabilization
3 Unless the City can document there are no potential impacts to small businesses and/or community non-profits.

4 Affordable
Housing
Production
Policy
Affordable
Housing
Preservation
Policy
Affordable
Housing
Protection
and AntiDisplacement
Policy
Commercial
Stabilization
Policy

7. Development
Certainty and
Streamlined
Entitlement
Process
Mobile Home
Preservation
Preventing
Displacement
from
Substandard
Conditions and
Associated
Code
Enforcement
Activities2

8. Preventing
Displacement from
Substandard
Conditions and
Associated Code
Enforcement
Activities2
Tenant
Relocation
Assistance

9. Mobile Home
Rent
Stabilization

10. Fair Housing
Enforcement

11. Tenant AntiHarassment
Protections
Notes:

1. This policy may fulfill either the housing production or preservation requirement, but not both.

2. This policy may fulfill either the housing preservation or protection requirement, but not both.

A basic review of the requirements suggests that, for affordable housing production, existing City ordinances and programs would likely come close to meeting the TOC policy requirements as they are currently drafted but may need some adjustments to meet them fully.

Housing Production
For housing production, for example, the TOC policy requires an inclusionary zoning ordinance to provide a minimum 15% inclusionary rate, and to have a minimum 10-unit threshold project size which the City’s IZO meets. For other “Production” policies, more analysis and guidance will need to be sought from the City Council regarding which might be appropriate to adopt. In some instances, the City is already following the principles and

5 requirements intended through the policy, based on compliance with State law. For example, a local policy to allow for streamlined review, like that available under SB 330, may not reflect a significant policy shift for Pleasanton since virtually every eligible residential project is making use of these provisions.

Housing Preservation
Compliance with this policy is likely achievable since the City already has a Condominium Conversion Ordinance (one of the identified policy options), and adopting a policy to preserve existing Mobile Home Parks is in line with Housing Element goals and programs.

However, revisions may be needed to fully comply with the TOC policy.

Affordable Housing Protection
Similar to the above categories, the City is already undertaking some of the programs identified among the menu of options – for example, Mobile Home Rent Stabilization (although amendments may be needed to comply with the TOC Policy fully) and provides funding for programs such as Fair Housing assistance, although potentially not at the levels required by the policy. It would be a policy decision of the City Council as to whether to consider any of the more far-reaching tenant protections, such as the adoption of a “just cause” eviction ordinance or mandating relocation assistance be provided to tenants by landlords, which has not been a policy priority for the City in the past.

Commercial Stabilization Policies
Given that Hacienda tends to house larger corporations and businesses, it may be possible to demonstrate the lack of necessity to comply with this aspect of the TOC policy.

However, City Council consideration could be given to adopting at least one of the policies identified to ensure those businesses were protected from displacement.

3. Parking Management
The TOC Policy requires the City’s compliance with parking standards for new residential or general- and neighborhood-serving commercial development (e.g., office, retail, and service business), and secondly, requires one or more policies or programs for parking management. The required parking standards for the BART and ACE stations are summarized in Table 3.

Table 3: TOC Policy Parking Standards
Transit Service
Station
New Residential
Development
New Commercial
Development
Two BART Stations
(Tier 3)
Parking minimums are
not allowed.

Parking maximum of

1.0 spaces per unit or
lower.

At least one secured
bicycle parking space
per dwelling unit.

Parking minimums are
not allowed.

Parking maximum of

2.5 spaces per 1,000
square feet or lower.

At least one secure
bicycle parking space
per 5,000 occupied

6 Transit Service
Station
New Residential
Development
New Commercial
Development
square feet for
commercial office.

ACE Train Station
(Tier 4)
Parking maximum of

1.5 spaces per unit or
lower.

Parking maximum of

4.0 spaces per 1,000
square feet or lower.

While parking is one of the more complex and potentially controversial aspects of TOC policy compliance, State laws already restrict the amount of parking it can require projects to provide. AB 2097, for example, adopted in 2024, prohibits local agencies from establishing minimum parking requirements for new development near major transit.

Shared parking is also required to be allowed under State law, for sites within a half-mile of transit stations. The TOC policy establishes relatively low parking maximums; the City does not currently restrict maximum parking ratios, relying on developers to determine if they wish to provide parking above the minimum required.

Regarding the east Dublin/Pleasanton BART station, staff recognizes that the redevelopment of this site will alter the availability and demand for parking and necessitate a holistic look at parking management within the site and broader station area. For example, creation of a shared parking program or development of a parking management district that would allow parking to be treated in a more “averaged” manner across multiple parcels, and include leveraging off-site parking, such as shared private parking, or leveraging the nearby BART and County public parking structures in Dublin. As noted, the City has received $300,000 in technical planning assistance grants to conduct a comprehensive parking management and station access study for the area around the station, to support the BART Station Concept Plan and help the City move toward TOC Policy Compliance.

For Downtown, the parking ratios for residential development are not far below those typically required by the Municipal Code – for example, the PMC requires between one and two parking spaces per unit (depending on unit size) for residential development and

3.0 spaces per 1,000 square feet for most commercial uses.

4. Station Access and Circulation
Strategies under the TOC Policy related to station access include items such as adoption of Complete Streets Policy, identification of opportunities for Mobility Hub planning, and prioritization of active transportation project.

The City has already adopted a jurisdiction-wide Complete Streets Policy. As described, a portion of the $300,000 technical assistance grant is to support a station access study and planning for the east Dublin/Pleasanton BART, which is likely to focus on, and be supportive of compliance to the above policies.

Enclosure: Exhibit A, Half Mile Radius Maps

PUD-C
(O.903)
(O.938)
R-1-65

PUD-I/C-O
(O.962)
(O.1044)
PUD-I/C-O (O.973) (O.1046)
PUD-O
(O.2109)
PUD-C (O.888)
PUD-C
(O.1369) PUD-C-S
(O.1059)

PUD-I/C-O
(O.1325)
(O.2186, O2187)

PUD-I/C-O
(O.1325)
(O.2186, O2187)

PUD-HDR
(O.1533)
(O.1610)
A.C.F.C. & W.C.D.

A.C.F.C. & W.C.D.

Chabot Canal
Chabot Canal

PUD-I/C-O
(O.1325)
(O.2186, O2187)
PUD-MU
(O.1998)
(O.2036)
PUD-MU
(O.1998)
PUD-C
(O.1441)
(O.1044) PUD-I/C-O
(O.1693)
(O.1044)
C-F
PUD-I/C-O (O.962)(O.1044)

PUD-HDR
(O.1533)
(O.1721)

PUD-I/C-O
(O.1477) (O.1646)
(O.1685)(O.1692)
(O.1704)(O.1717)
(O.2011)
PUD-MU
(O.2026)
BART Parking Lots
PUD-I/C-O (O.1325)(O.2186, O2187)
PUD-C
(O.903)
(O.921)
PUD-MU
(O.1998)
(O.2035)
PUD
(O.
(O.218

PUD-I/C-O
(O.2109)
PUD-C
(O.2203)

PUD-HDR
(O.1533)
(O.1673)

HACIENDA DR

DOUGHERTY RD

OWENS DR HOPYARD RD
FRAN
K
LIN
DR

WILLOW RD

CHABOT DRJOHNSON
DR

GIBRALTAR DR

STONERIDGE DR
\\gisdatasqlrusty\GISData\Planning\PlanningProjects.aprx Created 20230727 Revised 20230727 - ww 0 0.1 0.2
Miles
1/2 Mile radius from station
BART property
parcels in half mile radius
Zoning
Exhibit A

PUD-C-O
(O.1014)
(O.2100)
(O.2146)

PUD-C-O
(O.1569)

PUD-MDR
(O.1213)

PUD-C-O
(O.1014)
(O.1471)

PUD-HDR
(O.1313)
PUD-C
(O.2207)
C-C

PUD-LDR/C/PHS/WO
(O.1805)
Open Space
Arroyo De La Laguna
PUD-MU
(O.2100)
(O.2146)

PEN SPACE

PUD-C-O
(O.981)
PUD-HDR (O.1293)
D-C-O
.981)
PUD-HDR (O.1293)

PUD-C-O
(O.1014)
I-G-40
FedEx Building
BART Parking
C-R (m)
PUD-MU
(O.2027)
PUD-MU
(O.2028)
PUD-MU
(O.2028)
PUD-C
(O.1094) PUD-83-7

PUD-I/C-O
(O.1121)
(O.1197)(O.1841)
PUD-MU
(O.2029)

PUD-C-O
(O.1014)
(O.1922)
PUD-G&LI (O.1036)
(O.1863)
C-R (p)

SPRINGDALE AV

STONERIDGE
MALL
RD

FOOTHILL RD

STONERIDGE DR

LAUREL CREEK DR
SAN
RAMON
RD

DEODAR WY

CANYONWY
LAUREL

CREEK WY
DUBLIN

CANYON RD

JOHNSON
DR
\\gisdatasqlrusty\GISData\Planning\PlanningProjects.aprx Created 20230727 Revised 20230727 - ww 0 0.1 0.2
Miles
1/2 Mile radius from station
BART property
parcels in half mile radius
Zoning

P
P
MU-D P
A
O R-1-65
PUD-MDR (O.1323) PUD-MDR (O.820) RM-25
PUD-HDR (O.834)

PUD-MDR
(O.1196)
PUD-HDR (O.1334)
R-1-65
RM-15
A
RM-15

PUD-HDR
(O.995) PUD-MDR (O.820)
I-P
O
PUD- HDR (O.1172)

PUD-HDR
(O.1334)
C-F PUD-HDR (O.1272)
C-N RM-25
RM-15 RM-4 RM-4
RM-15
C-C
C-C
RM-4 RM-25
RM-25
RM-4
R-1-65
P
RM-4

PUD-MDR
(O.1243)
RM-4
A C-C

PUD-MDR
(O.1
P
A
PUD-MDR (O.1274)
R-1-65
PUD-HDR (O.1954)
R-1-65
R-1-65
PUD-MDR (O.1648)

PUD-HDR
(O.1558)
PUD-HDR (O.1623)
PUD-HDR (O.1187)
R-1-65
RM-15
PUD-HDR (O.1144)
PUD-C-C (O.1195)
PUD-MDR/OS (O.1333)

PUD-HDR
(O.1672)

PUD-HDR(O
C-C
MU-T
PUD
(O.1813)
(O.1814)
PUD-HDR (O.1658)
A
R-1-65

PUD-MDR
(O.1798)
(O.1771)
(O.1874) R-1-20
PUD-O (O.1776)
PUD
(O.1813)
(O.1814)
PUD-TC (O.1813)
PUD-TC (O.1813)
PUD-C-O (O.1007)
PUD-HDR (PUD-69-7)

PUD-HDR
(O.1883)
A
RM-2 R-1-20 Park Section
(O.1921)
PUD-MDR (O.1840) (O.1467) (O.1750)
PUD-O/HDR (O.1723)

PUD-HDR
(O.1219)
PUD-O
(O.1435) (O.1559)
PUD-MDR (O.1691)
PUD-MDR (O.1905)

PUD-HDR
(O.1484)
PUD
(O.1813)
(O.1814)

FAIRGROUNDS

RACETRACK

STABLES

STABLES

CITY HALL
PUD-HDR (O.1971)

OPEN SPACE

COMMERCIAL CENTER
Arroyo Del Valle
Arroyo Del Valle

PUD-HDR
(O.1985)
PUD-O
(O.1902)
PUD-HDR (O.1963)

PUD-MDR
(O.1031)
(O.1373)

PUD-MDR
(O.1409)
(O.2142)
PUD-MDR (O.1409) (O.1031)
PUD-HDR (O.816)
PUD-HDR (O.895) O
A
PUD-MDR (O.1191)
P
C-C
(O.1799)
RM-15
PUD-MDR (O.1167) R-1-65 (O.1775)
PUD-HDR (O.1756)RM-25
PUD-HDR (O.1980) PUD-HDR (O.1532)
C-F
R-1-65
PUD-MDR (O.1409)(O.1932)
PUD-HDR (PUD-69-7)
RM-15
RM-15
PUD-HDR (O.1926)
RM-4
PUD-HDR (O.1242)

PUD-HDR
(O.1179)(O.2001)
PUD-HDR (O.1179)(O.2001)
PUD-HDR (O.1132) PUD-HDR
(O.829)

PUD-MDR
(O.894)
C-C C-C R-1-20

PUD-HDR
(use R-1-20
standards)
(O.1495)

PUD-MDR
PUD-MDR (O.1556)

PUD-MDR
(O.1031)
PUD-MDR (O.1482)
PUD-MDR (O.914) **View Easement**

PUD-MDR
(O.1813)
(O.2014)
(O.2031)
(O.2048)
(O.2078)

PUD-MDR
(O.1031)
(O.1590)
(O.1748)
PUD-C
(O.993)
PUD-HDR(O.2021)
R-1-65
R-1-65
MU-D P
P

PUD-I/C-O
(O.975)
(O.1257)
DR (O.1813) (O.2014)
O
2048) (O.2078)
P

PUD-HDR
(O.1241) MU-T
PUD-C-O (O.1007)
PUD-C-O (O.1007)

PUD-MDR
(O.1239)
PUD-MDR (O.2020) (O.2069)
R-1-65
RM-4 R-1-65
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INDEPENDENCE DR

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Zoning

Item #9

CITY COUNCIL AGENDA REPORT
May 20, 2025
Public Works - Engineering Division
TITLE: APPROVE THE FINAL MAP, IMPROVEMENT PLANS, SUBDIVISION

IMPROVEMENT AGREEMENT, AND AGREEMENT FOR COMPLETION OF
IMPROVEMENTS FOR TRACT 8676 "HARMONY" LOCATED AT 2025 SANTA

RITA ROAD

SUMMARY
City Ventures submitted a development application for a 42-townhome-style condominium project at 2025 Santa Rita Road named “Harmony” immediately north of Lockhart Lane. The two-acre property was previously occupied by the Tri-Valley Inn & Suites (motel) and an ancillary restaurant building, which have since been demolished. The development includes seven three-story buildings, each with between four and eight residential units accessed from a private loop road extending from Lockhart Lane.

The development application and Vesting Tentative Map 8676 were processed pursuant to California Senate Bill 330 (SB 330), which limited the City’s review to compliance with the City’s sixth-cycle Housing Element Program EIR and City-adopted Objective Design Standards. City Ventures owns the property as Harmony-Pleasanton, L.P., and has partnered with Tri-Pointe Homes Holdings, Inc., a contractor, to construct the project.

Staff reviewed the final map for Tract 8676, improvement plans, subdivision improvement agreement, and agreement for completion of improvements, finding the documents to be in substantial conformance with the requirements of the entitlement approval. Staff, therefore, recommends approval of these documents. See Attachment 1 for a vicinity map.

RECOMMENDATION

1. Authorize the City Engineer to approve the final map (Attachment 2) and improvement plans for Tract 8676.

2. Authorize the City Clerk to record the final map with the Alameda County ClerkRecorder, including acceptance of all public easements offered for dedication on the final map.

3. Authorize the City Manager to execute the Subdivision Improvement Agreement (Attachment 3).

4. Authorize the City Manager to execute the Agreement for Completion of Improvements (Attachment 4), thus transferring the property owner’s duties and obligations to their contractor.

BACKGROUND
On October 30, 2023, the City’s Zoning Administrator approved a Design Review application filed as P23-0332 for the 42-unit “Harmony” condominium project subject to conditions of

approval. This approval found that the Program Environmental Impact Report (EIR) for the City’s Sixth-Cycle Housing Element Update satisfied the requirements of the California Environmental Quality Act (CEQA).

COMMISSION ACTION
On November 8, 2023, the Planning Commission adopted Resolution PC-2023-15 approving Vesting Tentative Map 8676 pursuant to the application filed as P23-0605 for the Harmony project. The vesting tentative map creates a one-lot condominium parcel with overlying public service (PSE), emergency vehicle access (EVAE), and public access (PAE) easements. The PSE and EVAE extend across the private loop road, while the PAE extends along Santa Rita Road and Lockhart Lane.

DISCUSSION
The on-site water, sanitary sewer, and storm drainage networks, as well as the loop road and common area, will be privately owned and managed by a homeowners association. A widened public sidewalk along Santa Rita Road and a new sidewalk along the north side of Lockhart Lane will accommodate pedestrian access needs. The loop road will accommodate emergency vehicle access and provide space for utilities (electricity, gas, and telecommunication services).

Approval of the final map and acceptance of public easements (PSE, EVAE, and PAE) for Tract 8676, when the map substantially complies with the conditions of the vesting tentative map, is a ministerial act by the City Council according to California Government Code Section 66474.1. The subdivider has executed a Subdivision Improvement Agreement that guarantees installation of city-required subdivision improvements.

The subdivider transferred their obligations under the Subdivision Improvement Agreement to their contractor according to an Agreement for Completion of Improvements. The contractor provided surety bonds in conformance with California Government Code Section 66499.

Submitted surety bonds assure the contractor’s performance and payment for labor and materials. The agreement also requires the contractor to guarantee the completed improvements for one year.

Staff reviewed the final map, improvement plans, Subdivision Improvement Agreement, and Agreement for Completion of Improvements, finding the documents to be in substantial conformance with the requirements of the Zoning Administrator approval and Planning Commission Resolution PC-2023-15. Staff, therefore, recommends approval of these documents.

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

OUTREACH
Condition of Approval 25 of the Zoning Administrator approval requires the subdivider to notify neighbors within 300 feet of the project site of the construction schedule. Resolution PC-2023- 15 was subject to public hearings before the Planning Commission.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the ONE Pleasanton Citywide strategic goal of E. Building a Community Where Everyone Belongs.

FISCAL IMPACT
The proposed subdivision will have a negligible financial impact on the City. Revenue from increased property taxes and development fees is assumed to cover the cost of municipal services. The subdivider and their contractor are responsible for the full cost of constructing the subdivision improvements.

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. Vicinity Map

2. Tract 8676 Final Map

3. Subdivision Improvement Agreement

4. Agreement for Completion of Improvements

ATTACHMENT 1

VICINITY MAP
TRACT 8676

NOT TO SCALE

PROJECT

LOCATION
Harmony

ATTACHMENT 2

ATTACHMENT 2

SUBDIVISION IMPROVEMENT AGREEMENT
TRACT No 8676

SUBDIVISION IMPROVEMENT AGREEMENT
TRACT MAP NO. 8676, “2025 Santa Rita Road”, PLEASANTON,

ALAMEDA COUNTY, CALIFORNIA
THIS SUBDIVISION IMPROVEMENT AGREEMENT (the "Agreement") is made and entered at Pleasanton, California, this day of , 2025, by and between Harmony - Pleasanton, L.P., a Delaware limited partnership (the "Subdivider") and the City of Pleasanton, a municipal corporation, (the "City").

RECITALS
WHEREAS, Subdivider has a vesting tentative tract map for Tract 8676, lying within the boundaries of the City; duly approved by the Planning Commission under case P23-0605 on November 8, 2023, together with Conditions of Approval; and
WHEREAS, all or a portion of the area of the vesting tentative tract map is presented as a "tract map", a copy of said map is on file in the office of the City Engineer, and by reference is included in this Agreement for all purposes as if attached hereto; and
WHEREAS, said vesting tentative tract map and subdivision of land designates streets, easements and public ways for the City, and Subdivider proposes dedications to the City and the public as set forth in the tract map; and
WHEREAS, as a condition precedent to approving said tract map, City requires Subdivider to construct subdivision improvements at Subdivider's expense and provide certain protection for the City on behalf of the public.

NOW, THEREFORE, in consideration of the faithful performance of the promises, terms, conditions and covenants set forth herein by Subdivider and the approval of the map for recording by the City, the parties hereto agree as follows:

1. Time of Essence. Time is of the essence in the performance of this Agreement. The work and improvements required by this Agreement to be completed by Subdivider shall be completed within two (2) years from the above-mentioned date of this Agreement.

The City may extend the time for completion of improvements hereunder, upon good cause being shown by the Subdivider. Any such extension may be granted without notice to the Subdivider's surety, any extension so granted shall not relieve the surety's liability on the bond to secure the faithful performance of this Agreement.

2. Work. Subdivider will do or cause to be done and performed the following described work of improvements pursuant to plans and project bond estimates entitled:

SUBDIVISION IMPROVEMENT AGREEMENT
TRACT No 8676

a. Improvement Plans for Tract 8676 dated _________________and subsequent revisions to plans," prepared by C&V Consulting Inc. (73 sheets), approved by the City Engineer; and
b. Civil Improvments Cost Estimate by C&V Consulting, Inc. dated 8/29/2024 (2 pages), hereinafter referred to as “Engineer’s Estimate”.

3. Inspection. City shall inspect all of said work through an inspector employed by City at the cost and expense of Subdivider, and Subdivider shall pay City the cost of such inspection as fixed by Ordinance.

The City Engineer has tentatively fixed the inspection costs due upon execution of this Agreement as follows:
$133,069.62

4. Soils Report. Subdivider shall adhere to the recommendations and requirements of the preliminary soils report as required by Section 66490 of the Government Code without expense to the City. Said information is contained in letters and reports within the Geotechnical Investigation Proposed Residential Development at 2025 Santa Rita Road by Quantum Geotechnical (45 pages) by Quantum Geotechnical, Inc. dated July 26, 2023.

5. Plans. All of said work shall be done and materials furnished in strict accordance with the approved plans for said tract map filed with the City Engineer, and in accordance with the standard specifications and details of the City of Pleasanton. It is further understood that the work and materials shall be under the supervision of the City Engineer, and performed and installed to the City Engineer’s satisfaction.

6. Related Contracts and Proceedings. Any prior contracts between City and Subdivider and any prior approvals by Commissions or Council of City shall not be affected by the provisions of this Agreement unless specific modification is set forth herein.

7. Security. On signing this Agreement, the Subdivider shall present to the City and file with the City Clerk, improvement security as defined in Section 66499 of the Government Code. Said improvement security as approved by the City Attorney, shall consist of the following as determined by the City:
a. cash deposit made with the City, or
b. bonds by duly authorized corporate sureties admitted to conduct such business in California, or
c. instruments of credit from financial institutions subject to regulation by state or federal government, or
Security in the form of cash, letter of credit, or bond is required in the following three areas:
performance, labor and materials, and maintenance. The performance security shall be in the amount of 100% of the total estimated cost of the work for each stage of development, conditioned upon faithful performance of this Agreement. The labor and materials security shall be in the amount of 100% of the

SUBDIVISION IMPROVEMENT AGREEMENT
TRACT No 8676

total estimated cost of the work for each stage of development. The maintenance security shall be in the amount of ten percent (10%) of the estimated value of the Subdivision improvements.

The total estimated cost of the improvements is: $2,394,858 (See “Engineer’s Estimate” Exhibit A)
Performance Security/Labor and Materials Security: In the event of any breach by Subdivider, City may take over the work and prosecute the same to completion by any method the City deems advisable. Said work shall be for the account and at the expense of the Subdivider. Subdivider shall be liable to the City for any excess costs or damages suffered by the City. The City shall release the faithful performance and labor and materials security forty-five days after the recordation of the Notice of Completion.

Maintenance and Defect Security: Subdivider shall be responsible for maintaining the improvements for a full year from the date of recordation of the Notice of Completion. Subdivider shall also be liable for defects in workmanship and materials on all of the above described improvements and shall maintain security for liability against such defects. The City shall release the maintenance security one year after the City Council’s acceptance of the project provided all warranty and maintenance work is acceptable to the City.

8. Financing. In the event City and the Subdivider enter a contract upon mutually agreeable terms providing an appropriate special assessment act for financing and improvement of streets and easements, the City may consent to the following:
a. The inclusion of this Tract and other lands within said contracts, and b. The release of improvement security as defined in Section 66499 of the Government Code, where the assessment contract has filed surety bonds for said improvements.

9. Workers' Compensation. Before commencing work under this contract, Subdivider shall take out and maintain during the course of this Agreement such worker's compensation insurance as required by the laws of the State of California. If the Acting General Contractor is not the Subdivider, then the General Contractor will provide the City with said certificate of worker's compensation insurance prior to start of construction. On failing to do so, the City may procure such insurance for the Subdivider and the Subdivider shall pay the cost.

10. Hold Harmless Agreement. Subdivider hereby agrees to and shall hold City, its elective and appointive Boards, Commissions, officers, agents, and employees, harmless from any liability for damage or claims for damage for personal injury, including death, as well as from claims from property damage which may arise from Subdivider's contractors', subcontractors', agents', or employees' operation under this Agreement, whether such operations be by Subdivider or by any of Subdivider's contractors, subcontractors, or by any one or more persons directly employed by, or acting as agent for, Subdivider or any of Subdivider's contractors or subcontractors. Subdivider agrees to, and shall, defend City and its elective and appointive Boards, Commissions, officers, agents and employees from any suits or actions at law or equity for damages caused, or alleged to have been caused, by reason of any of the aforesaid operations. In addition to the above:

SUBDIVISION IMPROVEMENT AGREEMENT
TRACT No 8676

a. That City does not, and shall not, waive any rights against Subdivider which it may have by reason of the aforesaid hold-harmless agreement, because of the acceptance by City, or the deposit with City by Subdivider, of any of the insurance policies described herein. b. That the aforesaid hold-harmless agreement by Subdivider shall apply to all damages and claims for damages of every kind suffered, or alleged to have been suffered, by reason of any of the aforesaid operations referred to in this Agreement, regardless of whether or not City has prepared, supplied or approved of, plans or specifications for the subdivision, or regardless of whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages.

11. Insurance. During the term of this Agreement, Subdivider or its general contractor, shall maintain in full force and effect, at its own cost and expense, insurance coverages with insurers with an A.M. Best’s rating of no less than A:VII. Subdivider, or its general contractor, shall have the obligation to furnish City, as additional insured, the minimum coverages identified below, or such greater or broader coverage for City, if available in the Contractor’s policies:
a. Provide a Certificate of Insurance issued to the City of Pleasanton from the Subdivider’s insurance carrier providing proof of Workers' Compensation and Policy Number. If the Acting General Contractor is not the Subdivider, then the General Contractor will also provide the City with the said Certificate of Workers' Compensation Insurance prior to start of construction. The duration of this insurance shall include the one year maintenance period. b. Provide a Certificate of Insurance from the Subdivider’s insurance carrier showing the amount of General Liability and Property Damage coverage with Insurance coverage of at least the following amounts:

GENERAL LIABILITY
General Bodily Injury $2,000,000 Per Occurrence
General Property Damage $2,000,000 Per Occurrence

AUTOMOBILE LIABILITY
Bodily Injury $2,000,000 Per Person/ $2,000,000 Per Occurrence Property Damage $2,000,000 Per Occurrence or Combined Single Limit on Bodily Injury and Property Damage Liability $2,000,000.
c. All insurance companies affording coverage to the Subdivider shall be required to add the City of Pleasanton as an "additional insured" under the insurance policy by endorsement for all work performed in accordance with this Agreement, excluding workers’ compensation insurance. d. All insurance companies affording coverage to the Subdivider shall be insurance organizations authorized by the Insurance Commissioner of the State Department of Insurance to transact business of insurance in the State of California with a Best's rating of not less than A:VII. e. All insurance companies affording coverage shall provide thirty-day (30) written notice to the City of Pleasanton should the policy be canceled before the expiration date. For the

SUBDIVISION IMPROVEMENT AGREEMENT
TRACT No 8676

purposes of this notice requirement, any material change in the policy prior to the expiration shall be considered a cancellation.
f. Subdivider shall provide evidence of compliance with the insurance requirements listed above by providing a certificate of insurance, in a form satisfactory to the City Attorney, concurrently with the submittal of this Agreement.
g. Subdivider shall provide a substitute certificate of insurance no later than thirty (30) days prior to the policy expiration date. Failure by the Subdivider to provide such a substitution and extend the policy expiration date shall be considered a default by Subdivider and may subject the Subdivider to a Stop Work Notice until the Subdivider has cured the default. h. Subdivider shall provide insurance that is primary as respects the City, its officers, employees and volunteers.
i. Maintenance of insurance by the Subdivider as specified in this Agreement shall in no way be interpreted as relieving the Subdivider of any responsibility whatever and the Subdivider may carry, at its own expense, such additional insurance as it deems necessary. j. The insurer shall agree to waive all rights of subrogation against the City, its officers, officials, employees, and volunteers for losses arising from work performed by the Subdivider. k. The insurer shall provide the amount of self-insured retention and City shall have the right to deny insurance coverage if it deems the self-insured retention exceeds reasonable deduction.

12. Streets. Use of any or all streets and improvements provided by Paragraph 2 shall, at all times prior to the final acceptance of said Tract by the City, be at the sole and exclusive risk of Subdivider.

Issuance of any Occupancy Permits by City for a dwelling within the tract, at any state of development, shall not be construed to be an acceptance of improvements, or a final acceptance of said tract.

13. Street Lights. City shall, before or after acceptance of improvements, give a "turn-on" order to the power company for only those street lights that City deems necessary. Subdivider may at the Subdivider’s sole expense provide street lighting not deemed necessary by the City, by arranging for the power company to hold the City harmless from the cost thereof, and by paying the actual power cost for said street lighting so ordered. Subdivider shall give notice to the City three (3) weeks prior to the proposed occupancy of any dwelling unit(s).

14. Attorneys’ Fees. The prevailing party in any action or suit for the enforcement of rights under this Agreement, shall be entitled to payment of its reasonable attorneys’ fees as may be fixed by the court on account thereof.

15. Notices. All notices herein required shall be in writing and shall be delivered in person or sent by certified mail, postage prepaid. Notices required to be given to City shall be addressed as follows:

City Manager
City of Pleasanton
P.O. Box 520

SUBDIVISION IMPROVEMENT AGREEMENT
TRACT No 8676

Pleasanton, CA 94566
Notices required to be given to Subdivider shall be addressed as follows:

Harmony – Pleasanton, L.P.
c/o Hearthstone, Inc., Attn: Steven Porath, Esq.
23975 Park Sorrento, Suite 220
Calabasas, CA 91302
Notices required to be given to the surety or Subdivider shall be addressed as follows:

Lockton Companies, LLC
DBA Lockton Insurance Brokers, LLC in CA
CA License #0F15767
19800 MacArthur Boulevard, Suite 1250
Irvine, CA 92612
Email: [email protected]
Office: 949-252-4416
Fax: 949-999-4416
CA Insurance License #0D53216
Provided that any party or the surety may change such address by notice in writing to the other party and thereafter notices shall be addressed and transmitted to the new address.

16. Counterparts and Electronic Signatures. This Agreement 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.

17. Binding on Land and Successors. All covenants, promises and agreements contained in this Agreement shall pertain to and do hereby expressly run with the land controlled by Subdivider and described herein. This Agreement shall bind and inure to the parties hereto, including heirs, assigns, executors, administrators, and all other parties whether they succeed by operation of law or voluntary acts of Subdivider. Signatures and execution of all parties shall be acknowledged before a notary public.

Either party may file and record this agreement with the Recorder of Alameda County.

SUBDIVISION IMPROVEMENT AGREEMENT
TRACT No 8676

The parties hereto affix their signatures to this Agreement as of the date and year first written above.

CITY OF PLEASANTON SUBDIVIDER
HARMONY – PLEASANTON, L.P.
a Delaware limited partnership

_____________________________ By: SSP-HS LOJV-A GP, LLC Gerry Beaudin, City Manager a Delaware limited liability company Its: General Partner
By: ______________________________
Steven C. Porath
Its: Authorized Representative
ATTEST:
______________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
______________________________
Daniel G. Sodergren, City Attorney
Rev. 5-22
Attached: Exhibit A “Engineer’s Estimate”

CONSTRUCTION ITEM COST TOTAL

PUBLIC IMPROVEMENTS
TYPE C DRIVEWAY APPROACH (SPPWC 110-2) 1,102 SF @ $15.00 $16,530 SIDEWALK 3,263 SF @ $15.00 $48,945
VALLEY GUTTER 113 LF @ $40.00 $4,520
ADA RAMP 1 EA @ $4,500.00 $4,500
PARKWAY DRAIN 1 EA @ $6,600.00 $6,600
TYPE A CURB AND GUTTER 141 LF @ $66.20 $9,334
ADA RAMP (MODIFIED) 1 EA @ $4,500.00 $4,500
DETECTABLE WARNING SURFACE 117 SF @ $25.00 $2,925

PRECISE GRADING
DRIVE AISLE PAVEMENT: 4" AC OVER 8" AB 12725 SF @ $10.00 $127,250 PARKING PAVEMENT: 4" AC OVER 6" AB 1028 SF @ $10.00 $10,280 0" PCC CURB ONLY 500 LF @ $10.00 $5,000
5" ROLLED CURB 229 LF @ $30.00 $6,870
6" CURB ONLY 154 LF @ $25.00 $3,850
P.C.C. DRIVEWAY 3617 SF @ $15.00 $54,255
VALLEY GUTTER 365 LF @ $40.00 $14,600
4" FLATWORK 6638 SF @ $12.00 $79,656
MODIFIED CURB RAMP 5 EA @ $4,500.00 $22,500
PARKING STALL STRIPING 1 LS @ $1,000.00 $1,000
PARKING BUMPER 3 EA @ $100.00 $300
TYPE A CURB AND GUTTER 60 LF @ $30.00 $1,800
ROCK SWALE 452 LF @ $80.00 $36,160
BIORETENTION BASIN 4781 SF @ $175.00 $836,675

7.44" CURB ONLY 30 LF @ $30.00 $900

ONSITE STORM DRAIN
18" HDPE 350 LF @ $90.00 $31,500
2424 BROOKS BOX 4 EA @ $2,500.00 $10,000
HDPE BEND 3 EA @ $40.00 $120
STORMWATER SUMP PUMP 1 EA @ $12,000.00 $12,000
4" PERFORATED PVC PIPE (SDR 35) 428 LF @ $60.00 $25,680 3" PVC PIPE (SCH 80) 15 LF @ $60.00 $900
4" PVC SDR-35 1022 LF @ $60.00 $61,320
6" PVC SDR-35 658 LF @ $35.00 $23,030
6" AREA DRAIN GRATE 111 EA @ $90.00 $9,990
SPLASH BLOCK 46 EA @ $75.00 $3,450
STORM DRAIN PUMP STATION 1 EA @ $20,000.00 $20,000

DOMESTIC WATER
4" PVC C900 (CLASS 235) 525 LF @ $60.00 $31,500
1" DOMESTIC SERVICE LATERAL 42 LF @ $1,700.00 $71,400
4x4x4 DI TEE 2 EA @ $1,000.00 $2,000
GATE VALVE 8 EA @ $1,700.00 $13,600
4" DI BEND 5 EA @ $1,000.00 $5,000

1.5" IRRIGATION SERVICE LATERAL 1 EA @ $5,000.00 $5,000 1" IRRIGATION METER 1 EA @ $1,700.00 $1,700
2" WATER METER 1 EA @ $2,000.00 $2,000
4" BACKFLOW PREVENTOR 1 EA @ $8,000.00 $8,000

PRIVATE SEWER
8" PVC SDR-35, BEDDING, & BACKFILL 549 LF @ $40.00 $21,960 48" DIAMETER SEWER MANHOLE 2 EA @ $5,000.00 $10,000
8" SEWER CLEANOUT 2 EA @ $800.00 $1,600
4" PVC SDR-35 LATERAL WITH 4" CLEANOUT 42 LF @ $2,300.00 $96,600

QUANTITY

CIVIL IMPROVEMENTS COST ESTIMATE
ENGINEER:

Dane McDougall
DATE:
8/29/2024
CALCULATED BY:

BENJAMIN GARCIA
PLAN CHECK No.:

E24-0120
PROJECT:

TRACT No:. 8676
DEVELOPER: CITY VENTURES
9830 IRVINE CENTER DR
IRVINE, CA. 92618
T.949.916.3800
CVC-INC.NET
[CVEN-160]
PAGE 1 OF 2

EXHIBIT A - ENGINEER'S ESTIMATE

CONSTRUCTION ITEM QUANTITY COST TOTAL
BACKWATER VALVE 14 EA @ $1,200.00 $16,800

EARTHWORK
RAW CUT 533 CY @ $1.00 $533
RAW FILL 1967 CY @ $1.00 $1,967
MOBILIZATION 1 LS @ $15,000.00 $15,000
EROSION CONTROL 2 AC @ $3,500.00 $6,864

FIRE WATER
8" PVC C900 (CLASS 235) 419 LF @ $100.00 $41,900
4" PVC C900 (CLASS 235) 29 LF @ $60.00 $1,740
8" DOUBLE CHECK DECTECTOR ASSEMBLY 1 EA @ $15,000.00 $15,000 8x8x8 DI TEE 1 EA @ $1,000.00 $1,000
DI BEND 10 EA @ $1,000.00 $10,000
FIRE HYDRANT 1 EA @ $20,000.00 $20,000

LANDSCAPING
TREE 5 GALLON 44 EA @ $19.21 $845
TREE 15 GALLON 6 EA @ $108.77 $653
TREE 24" BOX 9 EA @ $319.92 $2,879
TREE 36" BOX 65 EA @ $447.87 $29,112
TREE 48" BOX 1 EA @ $614.23 $614

ELECTRICAL
JOINT TRENCH 563 LF @ $108.00 $60,804
PVC ELECTRICAL CONDUIT 104 LF @ $26.00 $2,704
SUB-TOTAL $1,995,715
20% CONTINGENCY $399,143
TOTAL $2,394,858
PAGE 2 OF 2

AGREEMENT FOR COMPLETION OF IMPROVEMENTS
TRACT No 8676

Agreement Between the
CITY OF PLEASANTON and
TRI POINTE HOMES HOLDINGS INC.

FOR COMPLETION OF IMPROVEMENTS
This Agreement ("Agreement") is entered into on __________________, 2025, by Tri Pointe Homes Holdings Inc. dba Tri Pointe Homes ("Contractor") a Delaware corporation, and the City of Pleasanton ("City"), a municipal corporation.

WHEREAS, on or about ____________, 2025, City entered into a Subdivision Improvement Agreement ("Improvement Agreement") with Harmony - Pleasanton, L.P., a Delaware limited partnership, ("Subdivider") in connection with the construction of subdivision improvements described in Section 2 (Work) of the Improvement Agreement ("Improvements"); and
WHEREAS, Contractor desires to assume all of Subdivider’s rights, duties, and obligations under said Improvement Agreement as more particularly set forth in this Agreement; and
WHEREAS, Section 7 (Security) of the Improvement Agreement requires that Subdivider provide City with improvement security. Subdivider desires to transfer this obligation to Contractor according to this Agreement and Contractor agrees to complete construction of the Improvements prior to release of said improvement security; and NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

1. Contractor hereby agrees to complete the Improvements in accordance with the Improvement Agreement, a copy of which is attached hereto and incorporated herein as Exhibit "A" between Subdivider and City; and

2. Contractor hereby agrees to provide to City a Performance Bond, Labor and Materials Bond, and Maintenance Bond as described in Section 7 (Security) of the Improvement Agreement, each of which names both Subdivider and the City as obligees before it commences work under this Agreement.

3. Contractor hereby agrees to indemnify the City in accordance with Section 10 (Hold Harmless Agreement) of the Improvement Agreement and provide to the City the insurance described in Section 11 (Insurance) of the Improvement Agreement during the full term of this Agreement.

CITY OF PLEASANTON TRI POINTE HOMES HOLDINGS INC.
________________________ _________________________
Gerry Beaudin, City Manager Signature
_________________________
ATTEST: Name, Title (Print)
____________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
_____________________________
Daniel G. Sodergren, City Attorney
Attached: Exhibit A “Improvement Agreement”

Item #10

CITY COUNCIL AGENDA REPORT
May 20, 2025
Public Works - Utilities Division
TITLE: APPROVE A PROFESSIONAL SERVICES AGREEMENT WITH DIAMETER SERVICES, INC. FOR THE WATER METER AND ADVANCED METERING

INFRASTRUCTURE (AMI) TECHNICAL ASSISTANCE SERVICES AS A PART OF

THE ANNUAL WATER DISTRIBUTION SYSTEM IMPROVEMENTS PROJECT, CIP NO. 25183, FOR THE AMOUNT OF $750,000, INCLUDING CONTINGENCY

SUMMARY
The City’s existing water meter and Advanced Metering Infrastructure (AMI) system has reached the end of its useful life, resulting in widespread failures, billing inaccuracies, and increased operational costs. Staff recommends awarding a professional services agreement to Diameter Services, Inc., in the amount of $680,000, to lead the planning, procurement, and program management through construction for a full system replacement with a $70,000 contingency for unexpected conditions. Diameter Services conducted the initial feasibility study and is uniquely qualified to continue the project, ensuring continuity, efficiency, and successful implementation. Funding for the project is available through the Annual Water Distribution System Improvements, CIP No. 25183, and the work is consistent with the City's Water System Management and Financial Plans.

RECOMMENDATION

1. Approve and authorize the City Manager to execute a professional services agreement with Diameter Services, Inc. for water meter and AMI system technical assistance services as a part of the Annual Water Distribution System Improvements, in the amount of $680,000.

2. Approve and authorize the Public Works Director to execute contract change orders not to exceed $70,000 (approximately 10 percent of the contract cost) for any unforeseen conditions and additional needs identified during the design and implementation phase.

BACKGROUND
In 2016, the City completed a citywide water meter replacement project (CIP No. 13116), which included the installation of Diehl water meter with AMI system. Delta Engineering Sales, Inc. performed the improvements, and the warranty program for the meters expires in June 2026.

Since installation, the system has experienced a high rate of meter failures, with crews currently replacing up to 300 meters per month. Approximately 4,000 meters have been replaced to date due to failure, resulting in billing inaccuracies, increased water loss, and significant labor demands, making continued maintenance unsustainable.

With the warranty expiration approaching and the persistent failure of the current Diehl water

meters, the City must identify a replacement product and ensure it is fully tested and integrated with the City’s operating systems by June 2026. Delaying this process will result in increasing costs and resource impacts that could be mitigated by timely implementing a reliable new water meter and AMI system.

DISCUSSION
In early 2025, the City issued a sole source contract to Diameter Services, Inc. to evaluate the current metering system and assess options for replacement. Diameter Services, Inc. has over 17 years of consulting services in water AMI and water metering. The company has completed 89 business cases, implementation plans, procurement program management, and transition services engagements. The company is very reputable and is currently supporting the Alameda County Water District, Portland Water Bureau, City of Toronto, City of Columbus, Greater Cincinnati Water Works, City of Regina, City of Sunnyvale, the Contra Costa Water District and City of Mountain View in similar scopes of work for plan, design, issuance of Request for Proposal (RFP), implementation management, and project management.

Phase 1 – Feasibility Services identified the critical business drivers and needs, which identified gaps in the City’s current water meter system. The scope included identifying needs related to leak detection, meter reading automation, system integration, and performance reliability. The strategy and detailed project scope workshops from the Feasibility phase will be used as the roadmaps in the Procurement phase.

Based on the study findings, staff determined that the City should pursue a comprehensive and proven water meter and AMI solution that ensures long-term reliability and efficiency.

To move forward, staff recommends awarding a professional services agreement to Diameter Services, Inc. for Phase 2 – Procurement Support Services, to prepare and support the procurement phase of the new water meter system. At the completion of Phase 2, and at the satisfaction of the Director of Public Works, a separate “Notice to Proceed” will be issued to the consultant to start Phase 3 – Program Management Services, to manage the meter testing, verification, programming, integration of the new water meter and AMI system with the City’s financial system and infrastructure. The procurement and program management phase will focus entirely on the City’s unique business drivers to establish procurement based on a single turnkey-type Request for Proposals (RFP) for all contemplated components.

Continuity with Diameter Services, Inc. is crucial, as their detailed understanding of the City's infrastructure, operational data, and project goals would be difficult and costly to replicate with a different consultant.

Under the new agreement, Diameter Services, Inc. will provide technical assistance and support to prepare and complete the RFP for design/build services for the new water meter with AMI system. The complete scope and deliverables for Phase 2 – Procurement Support Services are listed in Attachment 1 (Diameter Services, Inc. proposal, April 22, 2025). The key deliverables for Phase 2 include the following:
• Provide project management support
• Facilitate drafting procurement documents
• Establish water meter and related components specifications

• Establish installation specifications
• Establish water AMI technology, network installation and service specification • Establish submission evaluation criteria
• Provide procurement support
• Lead and complete proposal submission evaluation with staff guidance • Facilitate, lead and evaluate vendor presentations with staff guidance.

The consultant shall complete all the work listed in Phase 2 at a maximum guaranteed price of $140,000.

At the successful completion and City Council approval of the award of the contract for procurement and implementation, and at the discretion of the Director of Public Works, Phase 3 will be initiated under this approval by issuing a “Notice to Proceed” to Diameter Service, Inc. to initiate Phase 3 – Program Management Services. Staff will not be required to return to the City Council to initiate Phase 3.

The complete scope and deliverables for Phase 3 – Program Management Services are listed in Attachment 1. The key deliverables include the following:
• Program startup, coordination and support
• Proof of concept
• Installation and deployment
• Contract Administration
• Establishing program governance
• Program Management
• Quality Management
• Final user acceptance testing
• Close out.

The consultant shall complete all the work listed in Phase 3 – Program Management Services at a maximum guaranteed price of $540,000.

The water meter and AMI system implementation project was identified in the councilapproved Water System Management Plan and Water Financial Plan as part of the Enhanced Delivery Option. The design and procurement services will help ensure a smooth transition to a new water meter and AMI system that is accurate, reliable, and responsive to the City's current and future needs.

Staff recommends issuing the professional service agreement to augment staff resources to add the benefit of Diameter Services Inc.'s extensive experience in planning, designing, and selecting a water meter with an AMI system. This is a one-time need that occurs every 15 to 20 years, and it is both efficient and cost-effective to hire a consultant to provide the services.

EQUITY AND SUSTAINABILITY
Staff followed the City Council’s approved process and recommends a sole-source award due to the expedited implementation and integration schedule of the new water meter and AMI

system before the end of the Diehl warranty, in addition to the specialized expertise required and the limited availability of qualified firms. Diameter Services, Inc.’s direct experience with the City’s system ensures continuity, efficiency, and informed project delivery.

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

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the City wide 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 projects and Strategy 4 Complete the Water System Master Plan to reflect current and future operations and identify system improvements and necessary maintenance.

FISCAL IMPACT
A total of $1 million is currently available in Annual Water Distribution System Improvements, CIP No. 25183, and total expenditures are anticipated to be $750,000, which includes an approximately 10 percent contingency for unforeseen circumstances and related extra services as determined to be necessary by the City (see Attachment 2). Funding of $10,930,000 over a five-year period for the installation of the meters and AMI system is programmed in the upcoming CIP program under Water Meter and AMI System Replacement, CIP No. 26137.

The contract term is expected to be FY 2024/25 through FY 2029/30.

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. Financial Expenditure Summary

2. Diameter Services Agreement

3. Attachment 2, Exhibit A -Diameter Technical Proposal

ATTACHMENT 1
CIP NO. 25183
05/20/25
Project Funding to Date Amount Totals
2024-25 CIP Allocation (Fund 421 - Water Replacement CIP) $1,000,000 Total Project Funding to Date
Anticipated Project Expenditures
Diameter Services, Inc. - Contract 680,000
Project Contingency (approximately 10%) 70,000
Total Project Expenditures
Funding Balance/ (Shortfall)
Current Balance $250,000
$750,000

ANNUAL WATER DISTRIBUTION SYSTEM IMPROVEMENTS
$1,000,000

PROFESSIONAL SERVICES AGREEMENT
Water Meter & AMI Technical Assistance
CIP NO. 25183 Annual Water Distribution System Improvements THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into this ____ day of May 2025, between the CITY OF PLEASANTON, a municipal corporation (“City”), and Diameter Services USA Inc., a New York Corporation, whose address is 100 Quentin Roosevelt Boulevard, Suite #516, Garden City, NY 11530, and telephone number is 416.305.3409, (“Consultant”).

RECITALS
A. Consultant is qualified to and experienced in providing Consulting Services for Water Meter and Advanced Metering Infrastructure (AMI) Technical Assistance as part of the Annual Water Distribution System Improvements CIP No. 25183 for the purposes specified in this Agreement.

B. City finds it necessary and advisable to use the services of the Consultant to lead the planning, procurement, and program management through construction for a full water meter system replacement as provided in this Agreement.

NOW THEREFORE, in consideration of the mutual covenants and conditions in this Agreement, City and Consultant agree as follows:

1. Consultant’s Services. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Work, Exhibit A.

Consultant shall provide said services at that time, place and in the manner specified in Exhibit A.

2. City Assistance, Facilities, Equipment and Clerical Support. Except as set forth in Exhibit A, Consultant shall, at its sole cost and expense, furnish all facilities and equipment that may be required for furnishing services pursuant to this Agreement. City shall furnish to Consultant only the facilities and equipment listed in Exhibit A according to the terms and conditions set forth in Exhibit A.

3. Term. This contract shall commence on the date written above and shall expire on June 30, 2030.

4. Compensation. City shall pay Consultant for services rendered on a time and material cost basis with a not to exceed limits as defined in Exhibit A and shall be in accordance with the fee schedule contained in Exhibit A. The payments shall be made on a monthly basis upon receipt and approval of Consultant’s invoice. Compensation for services and reimbursement for costs shall not exceed $750,000, which includes a $70,000 contingency for any unforeseen conditions and additional needs identified during the design and implementation phase as determined by the City. Payment of such contingency funds must be done with the execution of a contract change order and is not guaranteed to Consultant.

a. Invoices submitted to City must contain a brief description of work performed, time used and City reference number. Payment shall be made within thirty (30) days of receipt of Consultant’s invoice and approved by City.
b. Upon completion of work and acceptance by City, Consultant shall have sixty (60) days in which to submit final invoicing for payment. An extension may be granted by City upon receiving a written request thirty (30) days in advance of said time limitation. The City shall have no obligation or liability to pay any invoice for work performed which the Consultant fails or neglects to submit within sixty (60) days, or any extension thereof granted by the City, after the work is accepted by the City.

5. Sufficiency of Consultant’s Work. All work product and all other documents prepared by Consultant shall be adequate and sufficient to meet the purposes for which they are prepared.

6. Ownership of Work. All work product and all other documents completed or partially completed by Consultant in the performance of this Agreement shall become the property of the City. All materials shall be delivered to the City upon completion or termination of the work under this Agreement. If any materials are lost, damaged or destroyed before final delivery to the City, the Consultant shall replace them at its own expense. Any and all copyrightable subject matter in all materials is hereby assigned to the City and the Consultant agrees to execute any additional documents that may be necessary to evidence such assignment. Consultant shall keep materials confidential. Materials shall not be used for purposes other than performance of services under this Agreement and shall not be disclosed to anyone not connected with these services, unless the City provides prior written consent.

7. Changes. City may request changes in the scope of services to be provided by Consultant.

Any changes and related fees shall be mutually agreed upon between the parties and subject to a written amendment to this Agreement.

8. Consultant’s Status. In performing the obligations set forth in this Agreement, Consultant shall have the status of an independent contractor and Consultant shall not be considered to be an employee of the City for any purpose. All persons working for or under the direction of Consultant are its agents and employees and are not agents or employees of City.

9. Termination for Convenience of City. The City may terminate this Agreement at any time by mailing a notice in writing to Consultant. The Agreement shall then be deemed terminated, and no further work shall be performed by Consultant. If the Agreement is so terminated, the Consultant shall be paid for that percentage of the work actually completed at the time the notice of termination is received.

10. Non-Assignability. The Consultant shall not assign, sublet, or transfer this Agreement or any interest or obligation in the Agreement without the prior written consent of the City, and then only upon such terms and conditions as City may set forth in writing. Consultant shall be solely responsible for reimbursing subcontractors.

11. Indemnity and Hold Harmless. Consultant shall defend, indemnify, and hold harmless, the City and its officers, agents and employees from and against all claims, losses, damage, injury, and liability for damages arising from, or alleged to have arisen from, errors, omissions,

negligent or wrongful acts of the Consultant in the performance of its services under this Agreement, regardless of whether the City has reviewed or approved the work or services which has given rise to the claim, loss, damage, injury or liability for damages. This indemnification shall extend for a reasonable period of time after completion of the project as well as during the period of actual performance of services under this Agreement. The City’s acceptance of the insurance certificates required under this Agreement does not relieve the Consultant from its obligation under this paragraph.

12. Insurance. During the term of this Agreement, Consultant shall maintain in full force and effect, at its own cost and expense, insurance coverages with insurers with an A.M. Best’s rating of no less than A:VII. Contractor shall have the obligation to furnish City, as additional insured, the minimum coverages identified below, or such greater or broader coverage for City, if available in the Contractor’s policies:
a. General Liability and Bodily Injury Insurance. Commercial general liability insurance with limits of at least $2,000,000 combined limit for bodily injury and property damage that provides that the City, its officers, employees and agents are named as additional insureds under the policy as evidenced by an additional insured endorsement satisfactory to the City Attorney.

The policy shall state in writing either on the Certificate of Insurance or attached rider that this insurance will operate as primary insurance for work performed by Consultant and its subconsultants, and that no other insurance effected by City or other named insured will be called on to cover a loss.
b. Workers’ Compensation Insurance. Workers’ Compensation Insurance for all of Consultant’s employees, in strict compliance with State laws, including a waiver of subrogation and Employer’s Liability Insurance with limits of at least $1,000,000. c. Professional Liability Insurance. Professional liability insurance in the amount of $2,000,000.
d. Certificate of Insurance. Consultant shall file a certificate of insurance with the City prior to the City’s execution of this Agreement, and prior to engaging in any operation or activity set forth in this Agreement. The Certificate of Insurance shall provide in writing that the insurance afforded by this Certificate shall not be suspended, voided, canceled, reduced in coverage or in limits without providing notice to the City in accordance with California Insurance Code section 677.2 which requires the notice of cancellation to: 1) include the effective date of the cancellation; 2) include the reasons for the cancellation; and 3) be given at least 30 days prior to the effective date of the cancellation, except that in the case of cancellation for nonpayment of premiums or for fraud, the notice shall be given no less than 10 days prior to the effective date of the cancellation. Notice shall be sent by certified mail, return receipt requested. In addition, the insured shall provide thirty (30) days prior written notice to the City of any cancellation, suspension, reduction of coverage or in limits, or voiding of the insurance coverage required by this agreement. The City reserves the right to require complete certified copies of policies.
e. Waiver of Subrogation. The insurer agrees to waive all rights of subrogation against the City, its officers, employees and agents.

f. Defense Costs. Coverage shall be provided on a “pay on behalf of” basis, with defense costs payable in addition to policy limits. There shall be no cross liability exclusions. These provisions do not apply to Professional Liability.
g. Subcontractors. Consultant shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be subject to all of the requirements stated in this Agreement, including but not limited naming additional insureds.

13. Notices. All notices herein required shall be in writing and shall be sent by certified or registered mail, postage prepaid, addressed as follows:

To Consultant: To City: City Manager
City of Pleasanton
P.O. Box 520
Pleasanton, CA 94566

14. Conformance to Applicable Laws. Consultant shall comply with all applicable Federal, State, and Municipal laws, rules, and ordinances. Consultant shall not discriminate in the employment of persons or in the provision of services under this Agreement on the basis of any legally protected classification, including race, color, national origin, ancestry, sex or religion of such person.

15. Licenses, Certifications and Permits. Prior to the City’s execution of this Agreement and prior to the Consultant’s engaging in any operation or activity set forth in this Agreement, Consultant shall obtain a City of Pleasanton business license, which must be kept in effect during the term of this Agreement. Consultant covenants that it has obtained all certificates, licenses, permits and the like required to perform the services under this Agreement.

16. Records and Audits. Consultant shall maintain all records regarding this Agreement and the services performed for a period of three years from the date that final payment is made. At any time during normal business hours, the records shall be made available to the City to inspect and audit.

17. Confidentiality. Consultant shall exercise reasonable precautions to prevent the unauthorized disclosure and use of City reports, information or conclusions.

18. Conflicts of Interest. Consultant covenants that other than this Agreement, Consultant has no financial interest with any official, employee or other representative of the City. Consultant and its principals do not have any financial interest in real property, sources of income or investment that would be affected in any manner of degree by the performance of Consultant’s services under this Agreement. If such an interest arises, Consultant will immediately notify the City.

19. Waiver. In the event either City or Consultant at any time waive any breach of this Agreement by the other, such waiver shall not constitute a waiver of any other or succeeding breach of this Agreement, whether of the same or of any other covenant, condition or obligation.

20. Governing Law. California law shall govern any legal action pursuant to this Agreement with venue in the applicable court or forum for Alameda County.

21. No Personal Liability. No official or employee of City shall be personally liable to Consultant in the event of any default or breach by the City or for any amount due Consultant.

22. Exhibits. All exhibits referred to herein are attached hereto and are by this reference incorporated herein.

23. Counterparts and Electronic Signatures. This Agreement 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.

24. Scope of Agreement. This writing constitutes the entire Agreement between the parties.

Any modification to the Agreement shall be in writing and signed by both parties.

THIS AGREEMENT executed the date and year first above written.

CITY OF PLEASANTON CONSULTANT –
__________________________ By: __________________________ Gerry Beaudin, City Manager Signature
ATTEST: __________________________
Print name
__________________________
Jocelyn Kwong, City Clerk Its: __________________________ Title
Approved as to form:
_____________________________ By: __________________________ Daniel G. Sodergren, City Attorney Signature
__________________________
Print name
Its: __________________________
Title
[If Consultant is a corporation, signatures must comply with California Corporations Code §313]

City of Pleasanton
Consulting Services - AMI Feasibility Study
1 | P a g e
City of Pleasanton
Consulting Services
AMI Procurement and
Program Management
Support

PROPOSAL
April 22, 2025

City of Pleasanton
Consulting Services - AMI Procurement and Program Management i | P a g e

TABLE OF CONTENTS
TABLE OF CONTENTS..............................................................................................................................................I

1. PROJECT METHODOLOGY .............................................................................................................................1

1.1. INTRODUCTION...............................................................................................................................................................1

1.2. PROCURE PHASE .............................................................................................................................................................2

1.2.1. Introduction .........................................................................................................................................2

1.2.2. Project Management...........................................................................................................................2

1.2.3. Facilitation with Drafting Procurement Documents.............................................................................2

1.2.4. Water Meter and Related Components Specifications.......................................................................3

1.2.5. Installation Specifications ...................................................................................................................3

1.2.6. Water AMI Technology, Network Installation and Service Specifications ..........................................3

1.2.7. Submission Evaluation Criteria...........................................................................................................3

1.2.8. Procurement Support..........................................................................................................................4

1.2.9. Proposal Submission Evaluation ........................................................................................................4

1.2.10. Vendor Presentations .........................................................................................................................4

1.2.11. Prepare Contract Documents and Vendor Negotiation Support ........................................................4

1.2.12. Secondary Procurements (Optional) ..................................................................................................5

1.2.13. Council Meeting to Support Procurement Award (Optional) ..............................................................5

1.3. POTENTIAL FUTURE PHASES – MANAGE (INFORMATIONAL PURPOSES)......................................................................................5

1.3.1. Program Phases .................................................................................................................................5

1.3.2. Workstreams.......................................................................................................................................6

1.3.3. Contract Administration ......................................................................................................................8

1.3.4. Program Governance .........................................................................................................................9

1.3.5. Program Management ......................................................................................................................11

1.3.6. Quality Management.........................................................................................................................12

1.3.7. POC Success Management .............................................................................................................13

1.3.8. Program Coordination and Support..................................................................................................14

2. PRICING...........................................................................................................................................................16

2.1. PROCUREMENT SERVICES PRICING BREAKDOWN .................................................................................................................16

2.2. PROGRAM MANAGEMENT SERVICES PRICING BREAKDOWN...................................................................................................18

2.2.1. Pricing Summary by Resource and Phase.......................................................................................19

3. REFERENCES .................................................................................................................................................20

City of Pleasanton
Consulting Services - AMI Procurement and Program Management ii | P a g e
Confidentiality:

The information contained in this document is confidential and prepared for the City of Pleasanton, CA. It may not be used, published, or redistributed without the prior written consent of Diameter Services.

City of Pleasanton
Consulting Services - AMI Procurement and Program Management 1 | P a g e

1. Project Methodology

1.1.Introduction
Introduction: Diameter Services Inc. (Diameter) serves as a water meter, Advanced Metering Infrastructure (AMI) and installation subject matter expert, providing North American utilities with clear and comprehensive advice for projects of all sizes. Specializing in water AMI business case development, feasibility, procurement, and program management, Diameter is the market leader in the North American water consulting industry. We have focused on developing successful strategies to address the unique challenges and opportunities posed by AMI technologies in the water industry to provide water utilities with the right water meter and AMI solution to meet their needs. Diameter prides itself on our water-centric approach, and we offer a highly experienced consulting team of 19 specialized subject matter experts specific to water and dedicated to the practice of AMI. Our delivery model draws on this expertise to specifically address the nuances of the water meter industry and ultimately sets our team apart from others in this highly specialized consulting work. These water City projects are unique; across North America, there are only a handful of management consulting firms that truly operate in this space.

In a vendor-neutral capacity, Diameter has developed experience with virtually all meter and AMI solution providers. We have also implemented most major manufacturers’ solutions on various projects over the last 17 years, which provided invaluable insight for Diameter and its clients. In summary, Diameter’s experience includes:
• 17 years of consulting services specific to water AMI and water metering • Over 89 business cases, implementation plans, procurement, program management, and transition service engagements.
• Trusted advisor to over 30 different North American water utilities. • Over 1.25 million water endpoints currently under contract • 11 water utilities with over 100,000 endpoints
Water meters and water AMI is our forte. Successful phasing for a project of this nature typically includes Design, Procure, and Manage. The success of each stage is interdependent on the success of the previous one. Diameter’s methodology and approach are designed to ensure that our water City customers can make the right decisions at the right time of the process. Diameter is currently working with Pleasanton on a Meter and AMI Needs Study (referred to as Design) to determine functional gaps with its current meters and/or AMI system and determine procurement requirements for a system replacement if deemed necessary. This proposal includes our approach to the Procure phase.

City of Pleasanton
Consulting Services - AMI Procurement and Program Management 2 | P a g e

1.2.Procure Phase

1.2.1. Introduction
Our proposal describes Diameter’s proven procurement methodology designed to provide end-to-end services and match the procurement outcomes with the desired outcomes captured in the Design Phase.

AMI projects present unique considerations for procurement. The procurement strategy and the detailed project scope workshops from the Design will become roadmaps in the procurement phase. Our role is to act as the City’s representative and deliver a procurement strategy for the entire solution. The procurement phase is focused entirely on your unique business drivers and includes unparalleled marketproven value with our strategic, customized document design. The proposed procurement is based on a single turnkey type RFP for all contemplated components. If the City wishes to split some elements of the RFP and move forward with multiple procurements, Diameter has experience with these procurement strategies and can provide the estimated effort on an optional basis. However, the City has expressed its desire to proceed with a turnkey approach and this proposal is structured as such.

1.2.2. Project Management
Approach: Diameter will provide overall coordination services for the Procurement Stage for all end-toend services. This task includes scheduling meetings, progress activities/meetings, minutes, travel coordination (if applicable), and other related functions. This role includes guiding staff through the process associated with specifications, contract documents, special provisions, evaluation matrix, pricing form (etc.), and associated review/edit process and meetings. The specification review process typically includes reviewing the 50%, 95%, and 100% complete versions.

Deliverables/Tasks: Coordination Activities and Project Management Services

1.2.3. Facilitation with Drafting Procurement Documents Approach: Effective development of the procurement documents can be one of the most important tasks in the overall scope of work. Diameter’s subject matter experts have been directly involved in hundreds of procurement documents across North America over the last two decades, and we understand the nuances of the water AMI industry and related services for all project sizes. Furthermore, while we are vendor neutral, we have an intimate understanding of the water vendors, including understanding the information vendors need to put forward for an effective proposal. Our documents are market-proven and allow the market to respond fairly to the Request for Proposal. Most importantly, our documents are proven to provide a wide outcome of vendors (i.e., our specifications do not always result in the same vendor being awarded the contracts). We invest considerable effort to strategically customize the documents based on the City's specific needs. We believe no other consultant in the industry matches this level of service.

Terms and Conditions Review: Diameter will review the City’s standard terms and conditions and provide any recommendations on potential changes or concerns the Vendors may have. It is common for Diameter to work in conjunction with procurement personnel, if so desired, during this review process.

Front-end Document Review and Revisions: Diameter will review and, where necessary, suggest revisions to the City’s existing standard procurement documents (front-end documents) to ensure they match the needs of the procurement.

Deliverables/Tasks: Review any potential risks associated with Terms and Conditions, review and comment on existing front-end documents, prepare specifications and procurement documents required to support this project in accordance with the City’s procurement policy.

City of Pleasanton
Consulting Services - AMI Procurement and Program Management 3 | P a g e

1.2.4. Water Meter and Related Components Specifications Approach: Diameter Services will develop the water meter technology specifications for the procurement documents. Importantly, Diameter understands the nuances of water meter technology and meter types, and what is important in building an effective specification.

Deliverables/Tasks: Water Meter Specifications – Development, review, edits, final compilation, specification Review Session – Procurement Workshop.

1.2.5. Installation Specifications
Approach: Creating installation specifications that support the project is crucial to overall success. The leading contributing factor for project failures is due to lack of detail in the specification. Diameter Services will develop the specifications for the installation of the AMI technology and water meters. The components that make up these specifications will include: project management, installation requirements, customer service (call center where required, material specifications (plumbing, meter pit lids, etc.), public outreach, data management, and quality management. Diameter’s subject matter experts that are crafting the installation specifications have deep backgrounds in water meter deployments/projects and provide a firsthand understanding of the components required to ensure success.

Deliverables/Tasks: Installation Specifications – Development, review, edits, final compilation; specification Review Session – Procurement Workshop.

1.2.6. Water AMI Technology, Network Installation and Service Specifications Approach: Diameter will develop the Water AMI technology and network installation and service specifications for the procurement documents. Diameter’s subject matter experts have experience with hundreds of water specifications across North America. Our understanding of this niche market ensures water focused specifications that reflect the most up to date nuances in the industry. Requirements for the AMI equipment solution will be in accordance with information gathered and elements defined during the Design. The components that will make up these specifications will include radio transmitters, data collection equipment, meter reading software, AMI system integration, MDM software / analytics software.

The meter data management (MDM) and potentially analytics software application may be separate from the AMI headend software or be included in the AMI solution offering. As part of its RFP specifications, Diameter will detail the Read Success Rate (RSR) that must be achieved by the success Proponent.

Our approach is that vendors must propose the appropriate number of data collection device (or alternatives) to achieve the RSR as an “upset limit” which requires providing comprehensive data collection installation options as part of the RFP.

Deliverables/Tasks: Water AMI specifications – Development, review, edits, final compilation; specification Review Session – Procurement Workshop.

1.2.7. Submission Evaluation Criteria
Approach: Diameter Services will develop an evaluation section for the procurement documents designed to select a solution that clearly supports the City’s priorities and goals. There are different approaches to consider, including: one or two envelope systems, weighting of technical to financial scoring, price scoring formulas, technical and financial considerations, interviews/presentations, and minimum scores and benchmarks. The objective of the evaluation process is to ensure the procurement is conducted in a fair and impartial manner to obtain the best solution for the City. Diameter has

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experience with best practices associated with fairness monitoring. Diameter specifications are customdesigned with an extensive question-and-answer format, which facilitates a structured proposal format, allowing evaluators the ability to easily evaluate responses and fairly score the various components of the proposal. This question-and-answer format is supported by a comprehensive evaluation scoring sheet, which will be developed by Diameter (develop, review, edit, finalize).

Deliverables/Tasks: Evaluation Criteria within the RFP, Comprehensive Evaluation Scoring Sheet, Proposal Evaluation Criteria Session – Procurement Workshop.

1.2.8. Procurement Support
Approach: Diameter Services will assist the City with its vendor solicitation process. Typically, the City would advertise, distribute, and accept responses to the solicitation in accordance with its policies and procedures. Diameter knows all the market players and we would be available to communicate in advance with the vendors the anticipated timelines and release of the RFP to ensure all vendors are aware of the City’s project. During the proposal period, Diameter will assist with answering vendor questions and prepare addenda, as required.

Deliverables/Tasks: Provide answers to project-related questions from suppliers; Assist the City in preparing addenda to respond to inquiries during the RFP process.

1.2.9. Proposal Submission Evaluation
Approach: Diameter will review the RFP submissions and facilitate the City’s project team in its evaluation of the submitted proposals, using the evaluation criteria prepared and published in the procurement documents. Diameter can provide training to the team on how to use the evaluation scoring sheet. After the City’s evaluation team members have individually reviewed the proposals, the entire team will conduct an evaluation workshop to provide clarification on unfamiliar or unanticipated issues in the responses, determine if additional questions or information is required, review scoring – typically consensus scoring, and determine which vendors will be shorted-listed.

Deliverables/Tasks: Proposal submission review (typically 4 responses). Letters to vendor for clarification. Proposal Evaluation Workshop.

1.2.10. Vendor Presentations
Approach: Diameter generally participates in Vendor Presentations. As a component of the evaluation process, the City may wish to have Vendors conduct presentations/interviews. This decision is made during specification and procurement document development. Diameter’s approach to Vendor Presentations provides a comprehensive and proven approach including the coordination and facilitation of the interviews. Diameter would develop the agendas and ensure a fair and consistent process for all.

Deliverables/Tasks: Coordination, agenda development and facilitation; Attend Vendor presentations (2 days + 1 day of preparation).

1.2.11. Prepare Contract Documents and Vendor Negotiation Support Approach: Our comprehensive approach to project planning and our detailed specifications minimizes the need for extensive contract negotiations. We expect that the only significant negotiations that will be required in this stage will be:
• Modifications to certain aspects of the technical specifications to adapt to the specific solution proposed by the preferred vendor(s);
• The addition of certain elements of the proposal put forward by the preferred vendor(s) and/or desirable value-added components;

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• Negotiation of the secondary Software as a Solution (SaaS) agreement. Based on our past experience negotiating with various Vendors, timing can vary depending on the Vendor. We recommend that Diameter and the City discuss this further should the City choose to have Diameter participate in the Negotiations process.

Our proposal includes 40 hours of negotiation support. Diameter will assume the risk of an additional 20 hours of negotiation support, however additional hours beyond the 20 assumed by Diameter would be billable.

Deliverables/Tasks: Vendor Negotiations and minutes (estimated effort provided).

1.2.12. Secondary Procurements (Optional)
Approach: The procurement strategy workshop (Design) may lead the City to move forward with multiple procurements. Diameter is highly versed in the development of a single turnkey RFP as well as developing multiple RFPs that combine different elements of the solution. Diameter’s proposal is based on a single RFP. Should the City wish to undertake multiple RFPs, additional effort may apply to accommodate for the development and evaluation of multiple procurements.

1.2.13. Council Meeting to Support Procurement Award (Optional) Approach: Diameter can provide the final assessment and recommendation on which vendor(s) the project should be awarded to. This report will include a summary of the bidders, calculation of the evaluation criteria that support the award, and highlights of the recommended proposal. Diameter can provide the final assessment in the form of a memo for approval by senior leadership or can provide a presentation to Council on the topic.

1.3.Potential Future Phases – Manage (Informational Purposes) During a March 27, 2025 meeting between Diameter Service and the City of Pleasanton, the exact approach to procuring Program Management services was still being considered. To that end, below is an overview of Diameter’s approach to ensuring successful implementations. Further information can be provided upon request.

1.3.1. Program Phases
Startup
The Startup phase is resource intensive and often requires more effort from all program stakeholders.

During this time the Diameter team will work collaboratively with Pleasanton to establish the foundation of how the program will be managed. The deliverables are outlined within the Program Governance

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section below. Diameter will also define the key activities involved in each workstream and the priority in which they must be completed. The complexity of this project requires a strategic and well thought out onboarding process to ensure standardization of operating procedures and consistency of mobilization.

We will also leverage lessons learned from previous implementations to plan for common risks associated with startup activities to prevent project delays and ensure no details are missed.

Proof of Concept
Proof of Concept (POC) is a crucial subphase that will confirm the proposed solution, as implemented, will meet Pleasanton’s requirements and deliver the features and benefits promised by the project’s vendors. The POC subphase will begin with installations in a defined area to validate that all elements of the solution are functioning in a production environment. This includes validations that meters are functioning, meter types and programming configurations are accurate, radio transmitters and data collectors are transmitting and collecting data as anticipated, and billing systems are integrated and present information accurately. Diameter has developed this approach to ensure that installations in the production environment are controlled and that there is a formal process for all project teams to agree that the solution and operating procedures meet all requirements. During POC, Key Performance Indicators (KPIs) are defined and POC exit criteria will be established and monitored to confirm the proposed solution and program operating procedures are working as desired. Diameter will compare actual results to the expected outcomes which will allow Pleasanton to confidently approve the installation vendors to move into the full Installation and Deployment subphase of the project.

Installation and Deployment
While Installation and Deployment is treated as a distinct subphase, where more areas are released and the installation contractor scales up production, Diameter’s approach to Contract Administration and Program Management remains largely the same as the POC phase. The difference in deliverables is driven by length of the phase. For the sake of brevity, we will not duplicate descriptions of the deliverables, instead withing the description of the deliverable we will identify where specific deliverable may differ between the POC and Installation and Deployment phase.

Close out
Effective management of close out activities is an important part of the Program, as it ensures proper closure and hand off of the system as it transitions from the Implementation Phase to the on-going ownership, operation, and sustainment by Pleasanton. Close out activities should be planned and monitored, like any other subphase of the program. Our experienced team will mitigate risks that lead to unnecessary extension of the Close Out subphase and help ensure Pleasanton is set up for success moving forward as the vendors are released from the program.

1.3.2. Workstreams
Diameter’s AMI Program Startup approach includes the management of the five key project workstreams. By breaking the program into smaller, more defined scopes of work, resources can be more effectively and efficiently engaged, and parallel activities can be planned and completed to start installations as quickly as possible. Diameter will define the key activities involved in each workstream and the priority in which they must be completed. The following sections outline the key project workstreams and Diameter’s approach and deliverables associated with each: Network and Software Deployment, System Integrations Design and Development, Installation Readiness, Public Outreach Development and Support and Testing.

Workstream 1: Network and AMI Software Deployment
Diameter can support overall data collector deployment and coordination tasks depending on the type of AMI technology selected. The level of effort of this task depends on the number of data collectors

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proposed and the complexity of the installation. During the Startup subphase of the project, Diameter will facilitate data collector deployment meetings to ensure the network deployment is on track. These tasks should be completed before any meter installations are performed. Activities include the development/review of a collector deployment plan and the review of the propagation study submitted by the AMI vendor. Diameter can also attend the first week of site surveys to provide support and ensure best practices are being followed. It is also important to keep in mind throughout the network deployment:
1) changes in network infrastructure locations may affect the propagation, and 2) each proposed location will have individual site-specific approvals.

Workstream 2: System Integrations – Design and Development System integrations are an essential part of a successful AMI solution and will be overseen by our subject matter experts who specialize in integrations specific to these types of projects. Design and testing of the system integrations will be done in cooperation with Pleasanton, the installation vendor, and the CIS vendor. This task includes defining the required interfaces and the frequency of data transfer, as well as ensuring quality assurance processes are in place to highlight when data issues arise. Diameter’s role will be to plan, document, and support the integration efforts, and validate the output through Diameterlead User Acceptance Testing. The selected AMI vendor and CIS integrator will be responsible for the actual interface development. We have developed a three-step process for scoping the integration effort by the CIS vendor. In Step 1, Diameter, Pleasanton, and the CIS vendor will develop a realistic timeline for when resources will be required. Documentation for Step 1 will be developed at the beginning of the Procurement Phase. Step 2 will update this document once the AMI, MIS, and Customer portal vendor(s) have been determined. Step 3 will occur during the Startup subphase and will detail all business requirements for all required interfaces.

Workstream 3: Installation Readiness
The third workstream, Diameter, will lead to Installation Readiness. In this workstream, we will guide all stakeholders involved in meter and radio installations through critical concepts and processes that must be established prior to initiating the Proof-of-Concept subphase and entering homes. This workstream will define what will constitute a pass or failure for any given installation, how the installation contractor will move through Pleasanton in an organized and effective manner, the components of the quality assurance program, how tasks will be identified, assigned and resolved, the compliance process, emergency procedures and processes, and the invoicing process. Establishing these things before installations begin will help ensure the successful deployment of meter and radio assets. Diameter understands that the installation process will be the most visible element of the entire AMI program, so it will be the process with the highest risk of negative feedback from the community. Our approach to this workstream is to address all the risks and issues we have seen in previous AMI deployments to help prepare the installation vendor and Pleasanton for success.

Workstream 4: Public Outreach Development and Support
Diameter’s public outreach strategy, developed in the Design Phase, will be updated to reflect the details of the selected vendors and finalized to accommodate the Startup, Proof of Concept, and Installation and Deployment subphases of the project. In a program of this complexity, many stakeholders will be involved in the development, review, and approval of the project’s supporting documents, processes and procedures. Diameter has the management expertise necessary to guide the overall development and approval process for these components. We will facilitate communication and cooperation between stakeholders and bring best-in-class samples to ensure all requirements are covered. Typically, public outreach material development includes 1 round of review and revisions in addition to an initial communication plan review meeting. Diameter would facilitate eight workshops listed below including minutes and action items for each, ongoing support to assist with documentation and

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accommodating additional meetings and material review as required. On an optional basis, Diameter can also support material development (examples include door knockers, outreach letters, website content in collaboration with the Pleasanton communications staff, frequently asked questions.

Deliverables/Tasks: Schedule and facilitate meetings, document review and content development:

Workstream 5: Testing
Diameter’s best in class testing plan of software and IT integrations far exceeds industry standards.

System acceptance criteria should encompass three components: the AMI system, the meter, and the installation. The system will only work as designed if all three components achieve the specified performance standards outlined within the RFP(s). During the Startup subphase, Diameter will drive the development of a User Acceptance Test (UAT) that provides the framework for all the tests conducted to confirm that work done to integrate all the software that will support the AMI solution has been successful.

Once developed and approved, Diameter will work with the AMI and installation vendors along with the Pleasanton integrations team to define the requirements of the test environments/data that must be developed to support the UAT. Once UAT begins, Diameter will chair testing huddles, where the teams responsible for testing will meet daily to assess successes and failures and determine what needs to be done to address the failures as effectively and efficiently as possible. Following the successful completion of the UAT, Diameter will lead Initial User Acceptance Testing (I-UAT). The purpose of I-UAT is to confirm that the end-to-end process of service order creation, AMI upgrades, data transfer and billing all work as anticipated, including any AMI alarms that are meant to be captured. For I-UAT, meters, radios and network collectors will be deployed in a test environment, with water passed through the meters, to perform the tests and review all processes. This test must be successfully completed prior to the start of the Proof-of-Concept subphase to ensure all requirements of the assets and network have been met.

1.3.3. Contract Administration
Introduction: Contract administration is essential to ensure that all contractual obligations are achieved, risks are mitigated, and communication between parties is facilitated. Diameter recognizes that by implementing robust contract management practices, we can guarantee Vendor compliance with agreed terms, proactively address potential issues, and foster transparent and efficient communication. This approach not only minimizes legal and financial risks but also enhances collaboration and trust among all stakeholders, ultimately contributing to the successful execution of the various contracts.

Objectives: Ensure contractual obligations are met; Minimize risks associated with contract execution; Facilitate effective communication and collaboration between parties. Contract Administration will occur throughout the entire lifecycle of the program. Contract administration will include: Contract Compliance Monitoring, Subject Matter Expert (SME) Review, Documentation and Record Keeping, Risk Identification and Issue Resolution, Contract Amendments and Modifications, Vendor Evaluations, Contract Closeout Process.

Contract Compliance Monitoring
Diameter ensures effective contract compliance monitoring by conducting regular audits and inspections, establishing key performance indicators (KPIs), and generating reports to summarize compliance status and highlight issues. We promptly address any compliance issues by developing and implementing corrective action plans to minimize the overall impact to the program and prevent future occurrences.

Subject Matter Expert (SME) Review
Diameter is a team of leading industry experts that have intimate knowledge of how to complete these programs successfully. The vendors will be submitting lots of documentation including work schedules, production plans, staffing and time allocations, inventory forecasts, project plans, area management approaches and monthly progress reports. The Diameter team will review the work product to ensure

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consistency across Vendors as well as accuracy, completeness, and quality. We will also provide valuable insights and feedback based on our specialized knowledge and experience to ensure an appropriate rate of progress toward work completion is achieved.

Documentation and Record Keeping
We are committed to ensuring effective documentation and record keeping as part of our contract administration efforts. Utilizing Microsoft Teams Premium AI features, we enhance meeting minutes for improved accuracy and efficiency. This streamlines our process to maintain accurate and accessible records throughout the contract lifecycle. During the startup phase in the program governance workstream, we determine the necessary documents, such as contracts, amendments, correspondence, invoices, compliance reports, and performance evaluations, and ensure they are properly documented by leveraging a structured digital filing system within Teams that is easy to navigate and allows for quick retrieval of information.

Risk Identification and Issue Resolution
Diameter utilizes a RAID log to detail all (Risks, Actions, Issues, and Decisions) throughout the program as a key management tool. This log will be used to centralize key information around the identified risks, mitigation strategies for each risk identified, action items and those responsible for completing them, what is to be delivered and by when, any risks that have been escalated to issues and the plan to resolve them, and finally all key decisions made throughout the program.

Contract Amendments and Modifications
During contract administration, if/when changes are required, Diameter will follow a structured change control process. This involves initiating and documenting change requests, reviewing and approving them with Pleasanton, providing careful analysis and recommendations on how to proceed, issuing formal change orders, and implementing the approved changes. This task will also address any supplemental documentation or work descriptions requested by Pleasanton in connection with emergency work or change order requests. Any adjustment to the contracts, whether through emergency work allowances or contract change orders, will be updated in the Contract change log for future reference.

Vendor Evaluations
Over the course of Diameter’s implementations, we have learned the importance of monitoring performance in a quantifiable way to ensure that key activities and tasks are being delivered by the Vendors are on time and in line with contractual requirements. Diameter has developed objective, contract requirements-based performance tracking documents to assess vendor performance. Diameter will adapt our existing evaluation template or utilize a template requested by Pleasanton to be used during quarterly evaluations with the vendors.

Contract Closeout Process
The Diameter team will oversee the closeout process of each vendor contract. We will document and confirm the completion of open items by vendors, resolve any disputed work, and maintain accurate calculations of invoices and payments. This includes preparing a final calculation of payments and work performed, analyzing cost and payment variances, and conducting a final true-up calculation if required.

Diameter has developed a robust Closeout checklist and supporting plan that ensures a smooth and efficient contract closeout, maintaining high standards of quality and compliance. This will include closeout meetings, system acceptance and a project closeout report.

1.3.4. Program Governance
Introduction: Effective program governance is crucial for ensuring alignment with organizational policies and strategic objectives. By enhancing accountability and transparency within the program, Diameter programs experience improved decision-making. Through Diameter’s robust governance practices, we

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ensure that all program activities are conducted in a manner that support Pleasanton’s long-term goals and values and establishes a solid foundation for the program’s success. Objectives: Ensure alignment with organizational policies and strategic objectives; Enhance accountability and transparency within the program; Improve decision-making and oversight processes; Mitigate risks and manage issues effectively and Foster stakeholder trust and engagement.

Program Governance will occur at the beginning of the program during the startup phase and provide a framework that defines the roles, responsibilities, processes, reporting requirements, and relationships among the stakeholders. The Program Governance framework includes: Program Charter including program goals and objectives, risks and risk management approaches and monitoring process, Organizational Chart identifying stakeholders and team members, RACI Matrix establishing roles and responsibilities, Leadership and Steering Committee groups, Communication plan to understand how each stakeholder will be kept engaged, Reporting Requirements, Escalation Protocols and Approval Authorities.

Project Charter
At the beginning of the Startup subphase, prior to any vendor engagement, Diameter will develop a Project Charter which will capture the goals and objectives of the project, high level scope, timelines and budgets, roles and responsibilities, risks, and a milestone plan. The goal of this document is to ensure that all those engaged are aligned on the purpose of the program, what will be accomplished, when and by whom.

Organizational Chart
Diameter will also work with Pleasanton and Vendor project teams to develop an organizational chart which identifies key project resources who will need to be engaged and the reporting relationship of all team members. An Organizational Chart illustrates which of those stakeholders has decision-making and approval authority, which are responsible for day-to-day guidance and execution, and which are supporting the key workstreams and tasks.

RACI Matrix
In a project of this size, there will be several resources assigned to support the completion of critical tasks, some being completed in parallel, and some sequentially. Diameter will drive the development of a RACI Matrix (Responsible, Accountable, Consulted, Informed Matrix) to identify the stakeholders responsible for oversight, monitoring, and execution of various project elements.

Leadership and Steering Committee
Diameter will work with the Pleasanton Program Manager to establish stakeholders to be involved in program oversight to help with key decisions, approvals, risk resolution, and resource allocation as required. Strong leadership is crucial in assuring that all resources understand the importance of the program and what is expected to prevent resourcing conflicts which can result in delays.

Communication Plan and Reporting
Diameter’s final group of governance documents are robust and clearly distinguishes how the different stakeholders will be engaged throughout the lifecycle of the program. Diameter will develop the program participants communication plan, reporting requirements, escalation protocols, and program approval authorities. The Communication Plan and Reporting include the type of information that will be delivered, objectives, who will receive the information, the format or method of communication, and the timing of its release and distribution. Communication plans will vary depending on the targeted party, and it is important to establish such plans early so that no stakeholders are missed, and the appropriate information is communicated to the right resources. Following the identification of the Communication Plan and Reporting Requirements, Diameter will help establish escalation protocols which will detail how, why, and to whom risks and issues will be escalated to ensure there is no ambiguity in when and how to

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engage the next level of resources for support. Diameter will also drive the definition of Program Approval Authorities which will detail the level of authority certain program participants/groups have and when decisions or approvals need to be brought to management or the Steering Committee. Diameter understands that program participants will change or be added throughout the program. To support such changes, Diameter will develop a program onboarding presentation to introduce new resources to the program goals and objectives, key milestones, and other key project and contact details. Deliverables:

Project Charter - Project Charter for Implementation Phases, Project Organizational Chart - Program Resource Structure for all Parties, AMI Program RACI Matrix - Clear Roles & Responsibilities for all Project Members, AMI Leadership and Steering Committee Groups - Project Member Teams Involved in Approvals and Direction, Project Workstreams - Defining Key Workstreams and Milestones for Each, Develop document facilitate meetings to present each document: Program Communication Plan, Program Reporting Requirements, Program Escalation Protocols, Program Approval Authorities, Program Onboarding presentation.

1.3.5. Program Management
Introduction: Effective program management is crucial for the successful execution and delivery of our projects. Our approach to program management encompasses a comprehensive set of activities designed to ensure that all project components are aligned, resources are efficiently utilized, and objectives are met on time and within budget.

Objectives: Achieve strategic goals through coordinated project efforts; Optimize resource use and project outcomes; Enhance organizational performance and project delivery. Program Management will occur throughout the entire lifecycle of the program. Program Management will include: Performance Monitoring and Stakeholder Engagement, Schedule Management, Financial Management, Quality Management, Installation Oversight, Inventory Management and Forecasting.

Performance Monitoring and Stakeholder Engagement
Diameter has developed a program status report template, that can be adjusted as required, that will provide an executive summary of key program activities, what has been accomplished, and trends toward completion by tracking program KPI’s. Delivered monthly, this report will allow the stakeholders who can’t attend meetings to remain engaged and understand the program status. This report contains key metrics including Project plan % complete vs. baseline, production plan actuals vs. baseline, trend analysis, installation and data quality, data quality failure rates as well as CPI / SPI calculations (included) depending on audience receiving it. Pleasanton leadership and Steering Committee engagement is a critical part of the program. Diameter will produce a monthly program status report detailing project performance, key risks and issues being tracked, current and completed activities, and any success stories for a leadership level audience. Diameter’s Program Manager will meet with the Pleasanton program manager and the Project Sponsor every quarter to ensure that more sensitive project topics can be discussed as required. Diameter will also prepare Program Memoranda, as needed, to garner official approvals or provide updates on critical program elements to the Program’s Sponsor and Steering Committee.

Schedule Management
Diameter will develop a Master program plan and production schedule as a part of the Program Management effort. It will contemplate a work breakdown structure that will allow for the various Installation vendors plans to be captured in a consistent way and will identify the dependencies between the specific tasks, the critical path and what each resource will be responsible for. The plan and schedule

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will be reviewed regularly with stakeholders during meetings. A deployment program requires additional schedule management during Proof of Concept and Deployment activities due to the wide variety of interrelated variables. Schedule Management activities ensure that installation activities remain in alignment with product availability and ordering and that the right parties are notified any time there are risks associated with alterations to the baseline schedule.

Financial Management
One of Diameter’s primary priorities during the POC and Installation and Deployment Phases of the program will be budget tracking and maintenance. We understand that Pleasanton does not want to spend more than is required/budgeted to complete a successful implementation. Diameter will review all line items included in each invoice from both the various installation vendors, confirming that invoices are accurate and tracking quantities to ensure that the budget trends are in line with expectations. Any quantities that are trending high during POC will be reviewed prior to entering the Installation and Deployment Phase to understand the reasons and adjust quantities or installation practices as needed.

Diameter also tracks our own budget very closely to validate that our burn rate is in line with our forecast and that our financial estimate at completion is in line with the total budget. On a monthly basis Diameter will prepare Payment Certificates that will provide detail and confirmation of total spending to date, remaining balance on the contract, performance vs. plan on each line item and visibility to any trends that may have an impact on overall budget.

1.3.6. Quality Management
Quality Assurance
If desired, Diameter will design and execute a quality inspection program, assigning a Quality Inspector (optional) to deliver it. The QA Inspector’s responsibility will be monitoring and reporting on the quality of the work performed by the installation Contractor throughout the Proof of Concept and Installation and Deployment subphases. Diameter will set up a field inspection smart phone application to guide the collection of field inspection data. This provides the ability to collect consistent and accurate data on the inspections performed, take pictures as required, track the inspections through GPS, and access realtime feedback. This application can be used by Diameter and/or Pleasanton field staff if requested.

Diameter’s QA Inspector will also perform virtual inspections by using the installation contractors Meter Installation System (MIS) software to review pictures, data captured, and billable line items, and the AMI software to ensure that there are no quality issues with the installation or data, and that the radio is communicating as expected with the AMI network. The effort for an optional local full-time Diameter Quality Inspector performing inspections would be based on at least 5% of the installations performed by the Installation Contractor. Inspections will be a combination of virtual inspections and field inspections and tracking the results of each inspection performed in a log with KPIs captured to review with the project management team on a weekly basis. Quality Assurance Meetings would also be scheduled and facilitated by Diameter to discuss issues identified, trends and escalations as required.

Data Quality Protection Tool (Optional)
Diameter has developed a Data Quality Protection Tool application to ensure data accuracy and completeness through automated validation procedures. This tool takes much of the manual checking out of the quality assurance process. Each service order passed to the CIS system is reviewed, with issues reported instantly. The solution integrates with multiple source files to compare production reports against the MIS database, preventing duplicate records. It operates in near real-time, scanning for new files on the SFTP site and producing error reports within hours. Error Reporting and Analytics: Diameter’s solution includes detailed error reporting and analytics. Customized error messages specify work order failures, enabling quick remediation. Analytics help identify data quality trends and root causes, supporting continuous improvement. Detailed reports provide clients with insights into data issues and

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project data quality performance. Our data integrity tool can also be used to help identify synchronization issues that may occur across numerous production systems. Diameter’s Data Quality Protection solution enhances data integrity, streamline operations, and offers actionable insights, ensuring efficient and accurate AMI system functionality.

Installation Oversight
Through the course of the program, there will be different barriers to replacing the meter or upgrading the Pleasanton residences and businesses to AMI technology. Diameter will manage all issues identified and ensure that the installation contractor takes the appropriate actions as outlined in the operating procedures approved during the Startup subphase. This includes emergency work allowances and preinstallation approvals where additional time, effort or plumbing may be required to upgrade the water meter. In these cases, the additional work can only be performed and invoiced with formal approval from Pleasanton. The installation contractor will also run into issues preventing them from completing the work required. Installation issues will be tracked as “Tasks”. Some examples of common Tasks include location of the meter box, meter box inaccessible, the valve not functioning correctly, etc. Diameter will track these tasks to ensure they are assigned to the appropriate parties and resolved in a timely manner. Diameter will also support Pleasanton with their Compliance Program. Customers who do not respond to requests to book an appointment or who reject the AMI upgrade outright will be subjected to the compliance process, which will leverage new or existing by-laws to encourage them to participate in the program and thus achieve the highest installation rate possible. It is critical for the Pleasanton and Diameter team to set up a reporting structure that allows for validation that all contractual contacts have been completed.

First, to ensure that the Installation Vendor has met their contractual requirements but also that Pleasanton can have confidence in the consistency amongst customers before moving to enforce compliance with the program.

1.3.7. POC Success Management
Success management is integral to Diameter’s Proof of Concept approach as it ensures the achievement of POC objectives. We recognize that success hinges not only on the implementation of the AMI solution but also on effective user adoption and satisfaction. Final User Acceptance Testing (F-UAT) plays a pivotal role in this process by serving as the final checkpoint before the Installation and Deployment subphase begins, validating that the solution meets user requirements and business needs. By meticulously planning and executing F-UAT, Diameter mitigates risks associated with system failures and ensures that the solution is aligned with the District’s expectations. Moreover, F-UAT fosters stakeholder engagement and collaboration, empowering users to take ownership of the solution and facilitating a smoother transition.

Final User Acceptance Test (F-UAT)
Final User Acceptance Testing (F-UAT): F-UAT serves as the final checkpoint before full Installation and Deployment. Diameter’s F-UAT plan ensures that all business processes are working properly in the production environment. This includes all processes from meter installation to asset management system updates and customer billing using AMI collected reads. F-UAT will also validate that compliance, task management, invoicing and area management process are also executed as expected allowing for adjustments to be made as needed prior to wide scale deployment. This deliverable will focus on the AMI system using AMI provided MDM and occurs at the end of POC. F-UAT Design includes a list of use cases, expected results, a tracking sheet, scheduling and sequencing the use cases (development plus one review and revision). F-UAT Support includes assisting with running use cases, working with the District to validate the results, a maximum number of use cases of 50, document failures and working with contractor to resolve errors; assumes maximum of one retest cycle for failed test cases.

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POC Summary Report
Following F-UAT approval, Diameter will produce a POC Summary Report. This will include details on the number of completed installations, key KPIs like task, compliance and damage claim rates, the results of the Quality Assurance program, any installation processes or procedures that have been adjusted, and the financial status of the program. This report is meant to inform key District stakeholders interested in how the program is trending following this critical phase. If there are any concerns, Diameter will also provide recommended approaches for adjustments to be made prior to the Installation and Deployment phase.

1.3.8. Program Coordination and Support
Based on industry best practices, Diameter understands that a structured approach to program support and coordination is critical to successful delivery of Pleasanton’s program. Planning and scheduling meetings with the right people, at the right time and cadence, while effectively organized by topic or workstream, is fundamental to Diameter’s success in program management for this type of complex program. Diameter’s approach ensures that all of the Program’s stakeholders are identified and included in the relevant meetings and workshops that are central to planning and execution. Throughout the Program certain workstreams and module meetings may change, and personnel may shift depending on the phase of the Program. With the complexity of Pleasanton’s program, consistent communication and alignment with the Program’s various vendors will be instrumental. Our proven approach allows all team members to stay aligned, discuss work performed and plan upcoming weeks and months, and openly discuss and resolve any issues and risks that arise. All the processes established during startup will be leveraged throughout each phase of the overall program. Given the criticality of the POC phase, Diameter has accounted for a number of additional meetings where all parties can discuss progress and determine a resolution plan for any issues or risks that arise (including preparations, meetings and minutes).

Kickoff Meetings
We will begin the engagement with a pre-kickoff meeting for the overall program including the Diameter team and Pleasanton staff to introduce all team members. This meeting will focus on reviewing the program plan for the planning to ensure that the team is properly onboarded, the team understands roles and responsibilities, and timelines are established for as many meetings as possible. The Program Kickoff meeting will bring external vendors into the discussion and provide a deeper dive into the detailed plans and activities for their team during the Startup subphase. For the meetings described above, Diameter will drive this process and schedule the meetings with key stakeholders typically over a 4-week period. Diameter will prepare a draft of each presentation, hold one review meeting with the Pleasanton program manager, incorporate feedback, chair the meetings, and take and distribute minutes and action items.

Program Progress Meetings
On a monthly basis a progress meeting will be held with a broader team comprised of Diameter and Pleasanton Staff. The focus of this meeting will be the holistic view of the program. This meeting will review the status of the overall program with all Pleasanton team members, track overall progress, identify and address risks, keep all stakeholders informed, assign and review tasks as required, and ensure all parties understand the next steps.

Program Schedule and Risk Meetings
Occurring on a bi-weekly basis, this meeting will have a very focused agenda including reviewing the master program schedule and reviewing project risks with the various Installation Vendor Project managers. Diameter will be responsible for maintaining and updating a risk log (“RAID log") and program schedule as needed.

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Program Leadership and Steering Committee Meetings
Diameter would recommend that a project of this nature establish a Steering Committee meeting. In some situations, Diameter will participate directly in these meetings, in others our team will provide a supporting role, providing any information the Pleasanton Program Manager may require. This meeting will review program performance, adjustments to scope, any major risks or issues and present any high-level decisions that need to be made. The frequency of these meetings is quarterly.

Ad-hoc Analysis
As part of our commitment to supporting the Pleasanton program, we will perform ad-hoc analyses as requested by the Pleasanton program manager. These analyses will focus on evaluating the program’s impact and implementation, providing valuable insights to guide decision-making and ensure the program’s success. Our team is dedicated to providing thorough and accurate analyses to help the Pleasanton program manager make informed decisions and achieve the program’s goals.

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2. Pricing

2.1.Procurement Services Pricing Breakdown
Below please find a pricing breakdown outlining key personnel and associated hours with providing Pleasanton Procurement Services.

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2.2.Program Management Services Pricing Breakdown
Below please find a pricing breakdown outlining key personnel and associated hours with providing Pleasanton with Program Management Services associated with the implementation of a new water meter and Advanced Metering Infrastructure.

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2.2.1. Pricing Summary by Resource and Phase

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3. References
Below are three references for work of similar scope in the last 5 years. Additional clients available upon request. For many projects Diameter has worked directly as the prime consultant; on other projects we have opted to partner with other consulting firms who needed our expertise in this specialized area. In these joint projects, Diameter was subcontracted as the subject matter expert and fulfilled the roles related to design, procurement, and program management for AMI water projects. Examples include Alameda County Water District (EMA), City of Toronto (EMA), City of Columbus (EMA), Greater Cincinnati Water Works (Jacobs). All other projects, Diameter was the lead consultant.

Reference: Alameda County Water District (ACWD)
Alameda County Water District, California
43885 S Grimmer Blvd, Fremont, CA 9453
AMI Business Case, Implementation planning, procurement, and program management (2018 – 2024)
Developed and completed a comprehensive business case and implementation plan for 82,000 water meters. The District was granted authorization by the Board of Director to proceed with a system-wide AMI and meter replacement program. In 2019, developed a custom specification for the project, engaged in the delivery of the procurement services including AMI vendor evaluation, contract negotiations. Work provided for Alameda County is identical to services required by Sunnyvale. Project scope and procurement strategy opted to include a secondary RFP for a separate fully functional customer portal. Program management services are ongoing and approaching completion.

Joel Carty, Principal Consultant (Design, Procure, Manage), Darlene McNichol, (Design, Procure), Jamie Wagler (Manage)
Contact: Katrina Bates, Billing Supervisor, Tel: 510-668-4200, Email: [email protected] Reference: Portland Water Bureau (PWB)
Portland Water Bureau, City of Portland, Oregon
1120 SW 5th Avenue, Portland, OR 97204
AMI/AMR Business Case and Procurement (2020 – 2024 Design and Procure) Consulting services and subject matter expert for the developed of a comprehensive AMI business case and implementation plan for 190,000 water meters. Scope of work includes system assessment and interface requirements, assessment of non-financial business drivers, financial model, procurement strategy, public outreach strategy, field inspections, RF propagation, project resourcing, implementation planning, and project scope assessment based on their meter pit population. Currently in the process procurement activities for a customer engagement portal, AMI/Installation, and meters (3 procurements). Scope of work provided by Diameter for Portland Water Bureau is identical to services required by the City of Sunnyvale.

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Joel Carty, Principal Consultant (Design, Procure), Darlene McNichol, Project Manager (Design, Procure), Dan Donovan, AMI Consultant and Subject Matter Expert (Design), Dave Hanes, AMI Consultant and Subject Matter Expert (Procure), Jamie Wagler (Design Field Surveys).

Contact: Mayna Vancaillie RPP, PMP, Technology Capital Project Manager I Advanced Metering Infrastructure Program, Tel: 503-349-7936, Email: [email protected] Reference: City of Regina, Saskatchewan
City of Regina, Saskatchewan
2476 Victoria Ave, Regina, SK S4P 3C8
AMI/AMR Business Case, Procurement and Program Management (2020–2024) Consulting services and subject matter expert for the development of a comprehensive AMI business case and implementation plan for 75,500 water meters. Services also include end to end management of procurement services and program management. Scope of work provided by Diameter for Regina is identical to services required by City of Sunnyvale. Project scope and procurement strategy opted to include a secondary RFP for a separate fully functional customer portal.

Joel Carty, Principal Consultant (Design, Procure), Darlene McNichol, Project Manager (Design, Procure, Manage Public Outreach), Dan Donovan, AMI Consultant and Subject Matter Expert (Procure).

Contact: Dave Hughes, Manager City Projects, Tel: 306-519-5936, Email: [email protected] Additional references available upon request.

Item #11

CITY COUNCIL AGENDA REPORT
May 20, 2025
Public Works - Engineering Division
TITLE: APPROVE THE USE OF THE REMAINING PROJECT FUNDS OF $72,860 AS

ADDITIONAL CONSTRUCTION CONTINGENCY TO CONSTRUCT A

CONNECTION TO THE FIREHOUSE ARTS CENTER PARKING LOT FROM

FIRST STREET, ALONG WITH ADDITIONAL PARKING FOR THE LIONS WAYSIDE AND DELUCCHI PARKS RENOVATIONS PROJECT, CIP NO. 06716, FOR A TOTAL PROJECT CONTINGENCY AMOUNT OF $450,460

SUMMARY
The construction contract for the Lions Wayside and Delucchi Parks Renovations, CIP No. 06716, was approved by the City Council on September 3, 2024, and included approval of the base bid. On December 3, 2024, the City Council approved an additional $250,600 in project contingency to construct the bid alternates that were top priorities for the public.

The project, which is fully funded through park development impact fees specifically dedicated to construction improvements for Lions Wayside and Delucchi Parks, is now nearing completion. The contractor and city have successfully minimized project costs, allowing for additional desired improvements. Staff recommends that the City Council approve the use of the remaining project funds of $72,860 to be used in conjunction with the remaining contingency to construct a parking lot and vehicular connection from First Street to the Firehouse Arts Center parking lot through the 4363 First Street property (see Attachment 1).

Construction of the parking connection will create better access to downtown parking and provide parking for park events, such as the Summer Concert Series. The parking lot construction will begin in conjunction with the completion of the Lions Wayside and Delucchi Park improvements and is expected to be completed in summer 2025. Although the parking lot isn’t expected to be open in time for the park’s grand opening, construction is not expected to impact the opening of the park.

RECOMMENDATION
Authorize the City Manager, or authorized staff, to approve and execute contract change orders for an additional $72,860, for a total project contingency amount of $450,460, for the bid alternate work, parking lot connection, and other necessary related work.

BACKGROUND
On July 17, 2024, the City received seven base bids for the Lions Wayside and Delucchi Parks Renovations project, CIP No. 06716, with a low base bid amount submitted by Integra Construction Services, Inc. (Integra).

On September 3, 2024, the City Council awarded the construction contract to Integra in the amount of $1,265,000 with a construction contingency of $127,000 (approximately 10 percent).

Construction on the project began on October 1. On December 3, 2024, after staff worked with

the contractor to “value engineer” the bid alternates, the City Council awarded an additional construction contingency of $250,600 to construct the bid alternates.

DISCUSSION
The contractor has worked with the city to minimize unforeseen construction costs and has also been able to install additional items not included in the contract award, including electrical accommodations for holiday and event lighting along the new trail, dedicated lighting controls for the flagpole lighting, and replacement of a previously damaged sidewalk on Neal Street.

The contractor has completed $912,054 of the construction work, including the approved change orders for the above items, the Delucchi Park improvements, and the Stormwater Pollution Prevention Plan (SWPPP), with $514,900 remaining in the contract.

The Lions Wayside Park improvements are nearing completion with the turf installed in midApril, the bandstand installation started in late April, and the Delucchi Park improvements now under construction. Staff and the contractor expect that the remaining construction changes, totaling approximately $45,000, as well as the lawn conversion at the Firehouse Arts Center, trail through the 4363 First Street property, 24-stall parking lot and parking lot connection (with associated landscape and hardscape improvements), and a brick fascia for the existing Chan Henderson Bandstand, totaling approximately $240,000, could be combined and constructed with the remaining construction contingency of $213,092 if the City Council approves the use of the remaining fund balance of $72,860.

The proposed schedule for the project remains the same, with the construction of Lions Wayside and Delucchi Parks anticipated to be completed by early July. However, the lawn conversion, trail, and parking lot and parking connection at 4363 First Street are expected to be completed later in the summer.

EQUITY AND SUSTAINABILITY
Approval of this action advances the Climate Action Plan (CAP 2.0) in Transportation and Land Use by promoting an effective alternative transportation system with walking and bicycling and providing greater park accessibility for all users.

OUTREACH
During the outreach for the master plan update, the feedback received from the public regarding the use of the 4363 First Street property was to provide a balance of parking and recreation. The proposed improvements include additional parking, a trail, and landscaping to provide that balance. The trail, parking lot, and landscape will provide a finished look for the park project while still providing an opportunity for future improvements to fully address public outreach priorities once funding is available. The conceptual plan was presented to the Parks and Recreation Commission on May 8 and received positive feedback.

STRATEGIC PLAN ALIGNMENT
Approval of this action advances the Citywide ONE Pleasanton strategic plan goal of Investing in Our Environment, Strategy 1 – Implement the four-year Capital Improvement Program (CIP) to complete design and construction of budgeted capital projects, and Strategy 7 – Continue to invest in parks, bicycle, and pedestrian infrastructure, and public art to improve traffic safety, promote climate resilience, and increase equitable access to cultural and recreational opportunities.

FISCAL IMPACT
When the additional contingency was awarded by the City Council on December 3, 2024, the anticipated project expenditures totaled $1,692,545, with a remaining fund balance of $72,860.

The approval of use of the remaining fund balance as project contingency would fully utilize the project funds, with total project expenditures to date at $1,088,446 and anticipated expenditures totaling $838,932. The project is completely funded by Park Development Impact Fees. No General Fund money is used to implement this project. The funding and anticipated project expenditures are detailed in Attachment 2.

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. 4363 First Street Parking Lot Conceptual Plan

2. Financial Expenditure Summary

April 17, 2025 Lions Wayside Parking Lot, Pleasanton, CA Conceptual Plan NTS
Lions Wayside Park
Firehouse Arts Center
Lawn Conversion
Firehouse Arts Center Parking Lot
New Parking Lot (24 stalls)
Bioretention Area
Shade trees and low water-use
low maintenance plantings
First Street
Existing tree to remain,
typical
Accessible parking stall
Driveway
Trail connection, 10-ft
Kottinger Creek
wide path
ATTACHMENT 1

ATTACHMENT 2
CIP NO. 06716
05/20/25
Project Funding at end of FY23 Amount Totals
$1,927,378 2016-24 CIP Allocation (F222 - Park Development Impact Fees)

SUBTOTAL FUNDING
Project Expenditures
$411
$525
$26,407
$115,000
$11,445
$20,000
$912,054
$2,604
Advertising - Bay Area News Group
Geocon - On-Call Geotechnical Special Inspection & Testing Callander Associates, Inc. - Preliminary Design
Callander Associates, Inc. - Construction Documents
Callander Associates, Inc. - Amendment No. 1
Kier & Wright - On-Call Survey Services
Integra Construction Services Inc. - Construction Contract Miscellaneous Expenses
Total Project Expenditures to Date
Anticipated Project Expenditures
Callander Associates, Inc - Amendment No. 1 $20,355
Geocon - On-Call Geotechnical Special Inspection & Testing $17,725 Remaining Integra Construction Services - Construction Contract $514,900 Remaining Construction Contingency $213,092
Additional Construction Contingency for Parking Lot $72,860 Total Anticipated Project Expenditures to Date

TOTAL PROJECT EXPENDITURES
Funding Balance/ (Shortfall)
Project Balance $0
$1,927,378

LIONS WAYSIDE & DELUCCHI PARKS
$1,927,378
$1,088,446
$838,932

Item #14

CITY COUNCIL AGENDA REPORT
May 20, 2025
Police
TITLE: CONTINUED FROM MAY 6, 2025 - RECEIVE ANNUAL MILITARY EQUIPMENT USE REPORT FOR 2024; INTRODUCE AN ORDINANCE AMENDING
ORDINANCE NO. 2279 TO AMEND THE PLEASANTON POLICE

DEPARTMENT'S MILITARY EQUIPMENT USE POLICY TO ADD EQUIPMENT TO THE POLICY'S MILITARY EQUIPMENT INVENTORY; AND ADOPT A

RESOLUTION ACCEPTING THE ANNUAL MILITARY EQUIPMENT USE REPORT FOR 2024 DETERMINING THAT THE POLICE DEPARTMENT'S USE OF MILITARY EQUIPMENT IN 2024 COMPLIED WITH THE STANDARDS OF

APPROVAL AND RENEWING THE MILITARY USE POLICY

SUMMARY
Assembly Bill 481, codified as Government Code sections 7070 through 7075, requires a law enforcement agency to obtain approval from the City Council, by adoption of a military equipment use policy by ordinance, prior to funding, acquiring, or using military equipment as defined in the law. The law further states the governing body shall review the ordinance that it has adopted pursuant to this section annually and vote to renew the ordinance at a regular meeting.

RECOMMENDATION
Continued from May 6, 2025 - Receive annual Military Equipment Use Report for 2024; introduce an ordinance amending Ordinance No. 2279 to amend the Pleasanton Police Department's Military Equipment Use Policy to add equipment to the Policy's military equipment inventory; and adopt a resolution accepting the annual Military Equipment Use Report for 2024 determining that the Police Department's use of military equipment in 2024 complied with the standards of approval and renewing the Military Use Policy.

BACKGROUND
AB 481 was enacted in 2021 to create consistency for the funding, acquisition, and use of military equipment by law enforcement agencies and to increase transparency, accountability, and oversight for the acquisition and use of certain equipment.

The bill requires a law enforcement agency to obtain approval of the applicable governing body (City Council) by adopting a military equipment use policy, as specified, by ordinance at a regular meeting held pursuant to specified open meeting laws, prior to taking certain actions relating to the funding, acquisition, or use of military equipment as defined. Approval was received and the ordinance was adopted by the City Council on July 19, 2022. The bill also requires an annual review by the City Council to renew or disapprove the acquisition of this equipment, the creation of a military equipment use policy, and to publish that policy on the agency’s website.

The Annual Military Equipment Use Report for 2024, which includes the military equipment

inventory, is attached to this report as Exhibit A of Attachment 2.

DISCUSSION
Several items deemed to be “military equipment” by AB 481 are currently used by the Pleasanton Police Department and are outlined in this report. They are a component of overall best practices for law enforcement agencies throughout the state and country. These tools have proven effective in enhancing the safety of officers and reducing risk to members of the community.

The term “military equipment,” as used in AB 481, does not necessarily indicate equipment used by the military. Items deemed by the bill to be “military equipment” include, but are not limited to, robotic vehicles, armored rescue vehicles, tear gas, less-than-lethal weapons such as beanbag shotguns, 40mm projectiles and noise/flash diversionary devices. Each of these tools has proven effective in mitigating risk to both the public and officers. This year, the department intends on purchasing one ICOR Mini-Caliber robot as general replacement for the Avatar III robot currently in use. This purchase is funded through the Pleasanton Police Department’s repair and replacement budget. A proposed ordinance adding this item to the Military Equipment Use Policy’s military equipment inventory is included with this report as Attachment 1.

The Military Equipment Use Policy and Government Code section 7072 requires the City to publish annually a military equipment report for the prior calendar year which includes:
a. A summary of how the military equipment was used and the purpose of its use; b. A summary of any complaints or concerns received concerning the military equipment;
c. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response; d. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report;
e. The quantity possessed of each type of military equipment; and f. Whether the Police Department intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

The Military Equipment Use Policy and Government Code section 7072 also requires that within 30 days of submitting and publicly releasing the annual military equipment report, the police department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the public may discuss and ask questions regarding the annual military equipment report and the police department’s funding, acquisition, or use of military equipment. This meeting was held April 29, 2025.

AB 481 further requires the governing body review the ordinance that has been adopted approving the funding, acquisition, and use of military equipment at least annually and vote on whether to renew the ordinance.

The Annual Military Equipment Use Report for 2024 was made publicly available on the department’s website on April 8, 2025.

EQUITY AND SUSTAINABILITY
Not applicable, as the item is a matter of routine City business.

OUTREACH
The Annual Military Equipment Use Report for 2024 was made publicly available on the police department's page of the City's website on April 8, 2025. A meeting was publicized on the police department's social media accounts, the police department webpage, the Pleasanton Patch, and the Pleasanton Weekly. The well-publicized meeting was held on April 29, 2025, to seek community input regarding the use of this equipment. The meeting included a presentation of the Annual Military Equipment Use Report for 2024 and an opportunity to discuss and ask questions about the report's content, funding, acquisition, or the use of specified equipment.

STRATEGIC PLAN ALIGNMENT
This action advances the ONE Pleasanton strategic goal of Safeguarding our City, Strategy 1 to assess the City's overall emergency preparedness capabilities, resources, and tools and implement changes as needed to ensure the City is properly positioned to respond to disasters, and Strategy 5 to implement high priority items from the 2023-2027 Pleasanton Police Department Strategic Plan.

FISCAL IMPACT
There are no anticipated fiscal impacts. The staff time to facilitate the requirements of AB481 are absorbed into the work of existing staff.

Prepared by: Submitted by: Approved by:

Nick Albert
Police Lieutenant
Tracy Avelar, Police Chief Gerry Beaudin, City
Manager
Attachments:

1. Ordinance Amending Military Equipment Use Policy

2. Resolution Renewing Military Use Policy

Attachment 1
ORDINANCE ________

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PLEASANTON AMENDING ORDINANCE NO. 2279 TO AMEND THE
PLEASANTON POLICE DEPARTMENT’S MILITARY EQUIPMENT USE
POLICY TO ADD EQUIPMENT TO THE POLICY’S MILITARY

EQUIPMENT INVENTORY
WHEREAS, on July 19, 2022, the City Council adopted Ordinance No. 2238 approving the Pleasanton Police Department’s Military Equipment Use Policy; and WHEREAS, the Military Equipment Use Policy was amended on October 18, 2022 by Ordinance No. 2240 to add a Command Vehicle to the Policy’s military equipment inventory; and
WHEREAS, the Military Equipment Use Policy was amended on April 18, 2023 by Ordinance No. 2246 to add additional equipment to the Policy’s military equipment inventory; and
WHEREAS, the Military Equipment Use Policy was amended on April 16, 2024 by Ordinance No. 2279 to add additional equipment to the Policy’s military equipment inventory; and
WHEREAS, the City Council wishes to amend the Military Equipment Use Policy to add additional equipment to the Policy’s military equipment inventory.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES HEREBY ORDAIN AS FOLLOWS:

Section 1. Amendment. Ordinance No. 2279 is amended to add the equipment described in Exhibit “A” to the Military Equipment Use Policy’s military equipment inventory.

Section 2. Severability. If any part of this ordinance is declared invalid by a court, such invalidity shall not affect any of the remaining parts.

Section 3. Publication. This ordinance, or a summary prepared by the City Attorney, shall be published once in a newspaper of general circulation of the City of Pleasanton within fifteen days after its adoption.

Section 4. Effective Date. This ordinance shall take effect 30 days after its adoption.

Ordinance No. ________

The foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Pleasanton on May 20, 2025, by the following vote:

Ayes:

Noes:

Absent:

Abstain:
______________________
Jack Balch, Mayor
ATTEST:
____________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
____________________________
Daniel G. Sodergren, City Attorney

Ordinance No. ________

EXHIBIT A
Additional Military Equipment Requested:

RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON (1) ACCEPTING THE ANNUAL MILITARY EQUIPMENT REPORT FOR 2024; (2) DETERMINING THAT THE PLEASANTON POLICE DEPARTMENT’S USE OF MILITARY EQUIPMENT IN 2024 COMPLIED WITH THE STANDARDS OF APPROVAL; AND (3) RENEWING THE MILITARY EQUIPMENT USE POLICY
WHEREAS, on July 19, 2022, the City Council adopted Ordinance No. 2238 approving the Pleasanton Police Department’s Military Equipment Use Policy; and WHEREAS, on March 21, 2023, the City Council adopted Resolution No. 23-1378, accepting the Pleasanton Police Department’s Annual Military Equipment Use Report for 2022.

WHEREAS, on April 16, 2024, the City Council adopted Resolution No. 2024-019, accepting the Pleasanton Police Department’s Annual Military Equipment Use Report for 2023.

WHEREAS, the Military Equipment Use Policy and Government Code section 7072 require the City to publish annually a military equipment report for the prior calendar year which includes: (1) a summary of how the military equipment was used and the purpose of its use; (2) a summary of any complaints or concerns received concerning the military equipment; (3) the results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response; (4) the total annual cost of each type of military equipment, including acquisition, personnel, training, transportation, maintenance storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report; (5) the quantity possessed for each type of military equipment; and (6) if the Police Department intends to acquire additional military equipment in the next year, the quantity sought for each type of equipment; and WHEREAS, the Military Equipment Use Policy and Government Code section 7072 also require that within 30 days of submitting and publicly releasing the annual military equipment report, the Police Department shall hold at least one well-publicized and conveniently located community engagement meeting, at which the general public may discuss and ask questions regarding the annual military equipment report and the Police Department’s funding, acquisition, or use of military equipment; and
WHEREAS, on April 8, 2025, the Annual Military Equipment Use Report was publicly posted on the City’s Website; and
WHEREAS, on April 16, 2025, the Police Department publicized a meeting open to the public to discuss the Annual Military Equipment Use Report for 2024 on social media; and WHEREAS, on April 29, 2025, the Pleasanton Police Department held a well-publicized and conveniently located community engagement meeting, at which the public was given an opportunity to discuss and ask questions regarding the Annual Military Equipment Use Report for 2024 and the Police Department’s funding, acquisition, or use of military equipment.

Resolution No.

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

SECTION 1. The City Council accepts the Annual Military Equipment Use Report for 2024, attached as Exhibit A.

SECTION 2. Based on the Annual Military Equipment Use Report for 2024, the City Council determines that each type of military equipment identified in the Report has complied with the following standards:

A. The military equipment identified in the Military Equipment Use Policy is necessary because there is no reasonable alternative that can achieve the same objective of officer and civilian safety; and
B. The Military Equipment Use Policy will safeguard the public’s welfare, safety, civil rights, and civil liberties; and
C. The equipment described in the Military Equipment Use Policy is reasonably cost effective compared to available alternatives that can achieve the same objective of officer and civilian safety; and
D. Prior military equipment use complied with the applicable equipment use policy (which included equipment now defined as military equipment) that was in effect at the time, or if prior users did not comply with the accompanying military equipment use policy, corrective action has been taken to remedy nonconforming uses and ensure future compliance.

SECTION 3. The City Council renews the Military Equipment Use Policy.

SECTION 4. City Clerk shall certify 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 May 20, 2025.

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 May 20, 2025, by the following vote:

Resolution No.

Ayes:

Noes:

Absent:

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

Resolution No.

EXHIBIT A
Military Equipment Use Report for 2024

MILITARY

EQUIPMENT
USE
REPORT 2024

PLEASANTON POLICE DEPARTMENT

MILITARY EQUIPMENT USE REPORT 2024
2 Table of Contents
Executive Summary........................................................................................................................ 3 Introduction................................................................................................................................... 5 Definitions..................................................................................................................................... 6 Summary of Military Equipment Usages..................................................................................... 10 Inventory by Equipment Type..................................................................................................... 13 Requested Military Equipment.................................................................................................... 40 Internal Audit .............................................................................................................................. 41 Training Cost................................................................................................................................. 41 Storage Cost ................................................................................................................................. 41 Conclusion.................................................................................................................................... 41

MILITARY EQUIPMENT USE REPORT 2024
3 Executive Summary
On September 30, 2021, California Governor Gavin Newsom approved Assembly Bill 481, requiring law enforcement agencies to obtain approval from the applicable governing body (Mayor and City Council), by adoption of a military equipment use policy. The Pleasanton Police Department is required to seek City Council approval of their Military Equipment Use Policy at a regular open meeting prior to taking certain actions relating to the funding, acquisition, and use of military equipment.

Assembly Bill 481 allows the governing body to approve the funding, acquisition, and use of this equipment within its jurisdiction, only if it determines that the equipment meets specified standards. The Military Equipment Use Policy is subject to City Council review to determine whether the standards set forth in Assembly Bill 481 have been met, based upon an Annual Military Equipment Use Report.

Finally, Assembly Bill 481 requires publication of the Military Equipment Use Policy and the Annual Military Equipment Use Report on the Department’s website.

Assembly Bill 481
California Government Code section 7072 states the following:

A. A law enforcement agency that receives approval for a military equipment use policy pursuant to Section 7071 shall submit to the governing body an annual military equipment report for each type of military equipment approved by the governing body within one year of approval, and annually thereafter for as long as the military equipment is available for use. The law enforcement agency shall also make each annual military equipment report required by this section publicly available on its internet website for as long as the military equipment is available for use. The annual military equipment report shall, at a minimum, include the following information for the immediately preceding calendar year for each type of military equipment:
a. A summary of how the military equipment was used and the purpose of its use. b. A summary of any complaints or concerns received concerning the military equipment.
c. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response. d. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military

MILITARY EQUIPMENT USE REPORT 2024
4 equipment report.
e. The quantity possessed for each type of military equipment. f. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

B. Law enforcement agencies shall hold at least one well-publicized and conveniently located community engagement meeting, at which the public may discuss and ask questions regarding the annual military equipment report and the law enforcement agency’s funding, acquisition, or use of military equipment.

The Pleasanton Police Department is committed to transparency, public trust, community partnerships, and compliance with the law. As such, the Department has authored the following Annual Military Equipment Use Report per annual reporting requirements outlined in California Government Code section 7072.

MILITARY EQUIPMENT USE REPORT 2024
5 Introduction
The Pleasanton Police Department possesses and employs a wide variety of equipment to assist in safely achieving its mission statement, “As members of our diverse community, we selflessly serve as guardians with empathy, fairness, and respect to protect life, prevent crime and enhance the quality of life.” The term “military equipment,” as used in AB 481, does not necessarily indicate equipment used by the military. Items deemed by the bill to be “military equipment” include, but are not limited to, robotic vehicles, armored rescue vehicles, tear gas, less-than-lethal weapons such as beanbag shotguns, 40mm projectiles and noise/flash diversionary devices. Each of these tools has proven effective in mitigating risks to both the public and officers. The equipment discussed in this annual report is a component of the best practices overall for law enforcement agencies throughout the state and country.

While the inventory of military equipment varies, the mere possession of the equipment does not guarantee its use for every incident.

The police department recognizes that critical incidents are unpredictable and dynamic. Various equipment options can greatly assist incident commanders, officers, and specific units in bringing those incidents to a swift resolution in a safe manner. The use of military equipment is restricted to certain instances and, in some cases, only by specific units. The use of the department’s military equipment is continuously evaluated based on the totality of the circumstances, public safety, officer safety, civil rights, state law, and information available at the time of use influences the use of such equipment by department personnel.

It is incumbent upon our police department’s personnel to recognize the circumstances wherein specialized equipment should be employed to enhance the safety of the public and officers and to bring a critical incident to a safe outcome. This Annual Military Equipment Use Report outlines a summary of equipment usage guidelines, inventory, fiscal impact, complaints, and reported concerns from January 1st, 2024, through December 31st, 2024.

MILITARY EQUIPMENT USE REPORT 2024
6 Definitions
Under California Assembly Bill 481, the following definitions apply only to the Pleasanton Police Department’s current military equipment inventory and potential military equipment acquisitions for operational needs. For a more detailed list of “military equipment” definitions, refer to California Government Code sections 7070(c)(1) through (16).

MILITARY EQUIPMENT DEFINITIONS:

The following equipment is defined in AB 481 and an overview of it and how it is used by the Pleasanton Police Department:
“Unmanned, remotely piloted, powered aerial or ground vehicles” The Pleasanton Police Department owns two remotely operated robots with cameras mounted on them. They are used to search buildings during high-risk searches so that suspects can be identified and located without placing officers into dangerous or confrontational situations.

These tools prevent injury to officers, suspects, and the public. They are only used during authorized searches considered to be high risk.

The Pleasanton Police Department has utilized the Alameda County Explosive Ordnance Disposal (EOD) Team (colloquially called “the bomb squad”) for the investigation of suspicious or potentially explosive devices. The EOD Team utilizes remotely operated robots specifically built for explosive detection and removal.

An increasingly common request by the Police Department is for the use of aerial drones operated by other agencies such as the Alameda County Sheriff’s Office and Livermore Police Department. Drones have been used on search and rescue operations, warrant service operations, and during searches for outstanding suspects of crimes. These are strictly surveillance drones and are not weaponized. When a suspect is believed to be hiding inside a building, drones can do preliminary interior searches without sending officers inside. Drones are more capable of navigating cluttered areas than ground-based robots. This dramatically increases the safety of officers and suspects by reducing the likelihood of confrontation. “Mine-resistant ambush-protected (MRAP) vehicles or armored personnel carriers. However, police versions of standard consumer vehicles are specifically excluded.” An MRAP is a specifically designed military vehicle not utilized by the Pleasanton Police Department.

The Police Department does operate an Armored Rescue Vehicle (ARV) built specifically for use by first responders. It offers ballistic protection in emergencies where an armed encounter is likely. The ARV is used to evacuate citizens from an area where a threat from an armed suspect exists. The ARV has never been deployed or used during a crowd control event such as a protest

MILITARY EQUIPMENT USE REPORT 2024
7 or first amendment gathering. This is not its purpose. Because the ARV is a modified consumer vehicle, there is debate about whether it qualifies under this section. The ARV has been modified to allow a breaching ram to be mounted on its front. "High mobility multipurpose wheeled vehicles (HMMWV), commonly referred to as Humvees, two and one-half-ton trucks, five-ton trucks, or wheeled vehicles that have a breaching or entry apparatus attached. However, unarmored all-terrain vehicles (ATVs) and motorized dirt bikes are specifically excluded."
The Police Department does not use Humvees or similar vehicles, nor does it use large trucks, as described in this section. The armored rescue vehicle (ARV) can have a breaching ram mounted to its front. This tool has proven helpful for safely opening front doors without exposing officers to danger by having them approach the door on foot. Breaching an entry point is often the most dangerous part of a high-risk entry to a structure. This breaching option results in a reduced likelihood of a confrontation during entry. It is also one of the few breaching options available for well-constructed doors on commercial or government buildings which cannot be opened with a standard ramming device.
"Tracked armored vehicles that provide ballistic protection to their occupants and utilize a tracked system instead of wheels for forward motion."
The Police Department does not utilize tracked vehicles of any kind. "Command and control vehicles that are either built or modified to facilitate the operational control and direction of public safety units."
The Pleasanton Police Department have, on many occasions, utilized the Livermore Police Department’s command vehicle. In December 2024, The Pleasanton Police Department procured a command vehicle, after receiving City Council approval. It will serve as a forward command post during critical incidents, natural disasters, search and rescue operations, and as an emergency backup to the Police Department’s dispatch center. Many public safety agencies of similar size utilize a command vehicle for these purposes. Grant funds were the primary source of funding for this piece of equipment.
"Battering rams, slugs, and breaching apparatuses that are explosive in nature. However, items designed to remove a lock, such as bolt cutters, or a handheld ram designed to be operated by one person, are specifically excluded from this subdivision." The Police Department does not use explosive breaching. Historically, the Police Department has used shotgun breaching techniques. The preferred breaching mechanism by the Police Department is the Kinetic Breaching Tool which uses a single round of blank ammunition to move a fixed bolt forward. No explosive energy or debris is projected into the door. All power is transferred through the bolt.

MILITARY EQUIPMENT USE REPORT 2024
8 Due to the construction of doors in commercial, government, and school buildings, more than manual breaching equipment such as single-person rams and pry bars are required to gain entry to many structures rapidly.
“Firearms of .50 caliber or greater. However, standard issue shotguns are specifically excluded from this subdivision.”
The Police Department does not utilize any firearms of .50 caliber or greater. “Ammunition of .50 caliber or greater. However, standard issue shotgun ammunition is specifically excluded from this subdivision.”
The Police Department does not utilize any ammunition of .50 caliber or greater, excluding lesslethal ammunition described in a subsequent section. “Specialized firearms and ammunition of less than .50 caliber, including assault weapons as defined in Sections 30510 and 30515 of the Penal Code, with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to officers, agents, or employees of a law enforcement agency or a state agency.” The Police Department uses 89 rifles, defined as assault weapons, under the California Penal Code. These rifles are assigned to sworn police officers and supervisors who’ve been through a certified training course as required by the California Commission on Peace Officer Standards and Training (P.O.S.T.). Rifles can address a lethal threat at a distance with precision and penetrate most body armor. The rifles use standard law enforcement ammunition, and their use and deployment are outlined in Policy 312 of the Pleasanton Police Department Policy Manual.

The Department maintains a small supply of armor-piercing ammunition for .308 bolt action rifles. These are maintained by the tactical team and reserved for cases in which piercing heavy armor (such as an armored vehicle) is required.
“Specialized firearms and ammunition of less than .50 caliber, including assault weapons as defined in Sections 30510 and 30515 of the Penal Code, with the exception of standard issue service weapons and ammunition of less than .50 caliber that are issued to officers, agents, or employees of a law enforcement agency or a state agency.” The Police Department does not use any firearm designed to launch explosive projectiles. “Flashbang” grenades and explosive breaching tools, “tear gas,” and “pepper balls,” excluding standard, service-issued handheld pepper spray.”
The Police Department utilizes noise-flash diversionary devices known as “flashbangs” and various chemical agents (tear gas) to include a paintball-like projectile like a pepper ball. NoisePage 230 of 682 MILITARY EQUIPMENT USE REPORT 2024
9 flash diversionary devices are used to cause a distraction during highly dangerous activities, such as entering a structure during warrant service. The Department follows best practices for the use, which includes deploying the devices only on the exterior of structures and when an officer can see the area where the device is being deployed.

The primary purpose of chemical agents, such as non-lethal CS gas, is to cause a barricaded suspect to exit the structure in which the suspect is barricaded. The gas irritates the eyes and throat. Deploying gas inside a structure may reduce the need to send officers into a dangerous location where a confrontation may occur. The practice is intended to minimize injury to officers and suspects. Chemical agents may be used to disperse large, unlawful assemblies, but the Police Department has never used chemical agents for this purpose. “Taser Shockwave, microwave weapons, water cannons, and the Long Range Acoustic Device (LRAD).”
The Police Department does not use any of the described devices. Taser Shockwave is a device built by Axon Technologies to deny entry to certain areas and has no law enforcement application. Microwave weapons are not in use by law enforcement. The Pleasanton Police Department or any regional agencies do not use water cannons. Long Range Acoustic Devices have applications to deliver highly audible public addresses. They are used by some law enforcement agencies but are not in use by the Pleasanton Police Department. “The following projectile launch platforms and their associated munitions: 40mm projectile launchers, “bean bag,” rubber bullet, and specialty impact munition (SIM) weapons.” The Pleasanton Police Department possesses 40mm launch platforms which have been previously approved by the City Council. The police department purchased 24 launchers in 2023 to outfit the department's marked patrol fleet. The police department also received two multilaunchers in 2024 which were placed in patrol supervisor vehicles. They may be used as lesslethal impact devices as an alternative to a higher level of force or to deploy chemical agents.

The Police Department utilizes 12-gauge bean bag rounds fired from a shotgun and the FN-303 launcher as less-lethal devices. These are intended to provide alternatives to higher levels of force when reasonable and necessary. The FN-303 functions similarly to a paintball gun and can be loaded with different ammunition, including impact, pava (pepper spray), and marking rounds. Marking rounds leave a paint stain on clothing to identify a suspect later. Today the standard less-lethal ammunition patrol officers carry are bean bag rounds and FN-303 impact rounds.

MILITARY EQUIPMENT USE REPORT 2024
10 Summary of Military Equipment Usages
The City of Pleasanton is in Alameda County and has a population of approximately 80,000 people. The city is located at the junction of Interstate 580 and Interstate 680, which is referred to as the county's Tri-Valley. The police department is authorized for 118 positions, which consists of both sworn and professional staff members.

The Pleasanton Police Department's military equipment inventory is wide-ranging, and the equipment is not utilized on all calls for service. The police department recognizes that critical incidents are unpredictable and dynamic. Various military equipment options can greatly assist incident commanders, officers, and specific units in bringing those incidents to a swift and peaceful resolution. The use of military equipment is restricted to use only in certain instances and, in some cases, only by specific units.

This section outlines the military equipment usage from January 1st, 2024, through December 31st, 2024. Certain items of military equipment, particularly consumables (ammunition, diversionary devices, less lethal rounds, chemical agents, etc.), are used throughout the year regularly for training to maintain proficiency. Usage in training environments is not captured in this annual report. The usage section of this report only provides data for the operational use of military equipment listed within this Annual Military Equipment Use Report.

Outreach and Community Engagement
The Pleasanton Police Department is devoted to collaborating with our community to build trust. As the police department continues to improve community relationships, we remain committed to being a model of excellence and a leader in the law enforcement profession.

Moreover, we want to ensure our community has an insight into how their police department operates and engages with the public.

The Pleasanton Police Department utilizes many of the below listed equipment, including the armored rescue vehicle, during outreach and community events. This serves as a means of public awareness, transparency, and education and gives those in the community the ability to see our equipment, ask questions and have honest conversations about the use and need for such equipment. This helps to bring insight and awareness to the public and allows them to view the type of equipment their police department utilizes to keep the City of Pleasanton a safe place.

MILITARY EQUIPMENT USE REPORT 2024
11 The following is the data for military equipment usage by category from January 1st, 2024, through December 31st, 2024.

Military Equipment Item Authorized
Usages
Citizen
Complaints
Internal
Audits
Policy
Violations
ARV 1 0 0 0
Mobile Command Vehicle 0 0 0 0
UAVs (Outside Agencies) 14 0 N/A N/A
Avatar III Robot 0 0 0 0
Recon Robotics Throwbot II 0 0 0 0
Colt AR-15 Rifles 0 0 0 0
PWS MK111 Rifles 0 0 0 0
Daniel Defense model MK18 RIII Rifles 0 0 0 0
Remington 870 Shotgun (Bean bag) 0 0 0 0
FN303 Less-than-lethal Launcher
(Pava/OC Powder Projectile)
0 0 0 0
Penn Arms 40mm Single Launcher 0 0 0 0
Penn Arms 40mm Multi Launcher 0 0 0 0
CTS Model 7290 (Single Flash Bang) 0 0 0 0
CTS Model 7290-9 (Nine Count Flash
Bang)
0 0 0 0
Defense Technology CS Spede-Heat
Grenade (Model 1072)
0 0 0 0
Defense Technology Flameless Expulsion
CS Grenade (Model 2042)
0 0 0 0
Defense Technology Aerosol OC Vapor
Grenade (Model 1056)
0 0 0 0
Defense Technology 40mm CS Liquid
Barricade Penetrating Ferret (Model
2262)
0 0 0 0
HSM Urban Copper 127 Gr .308
Winchester Light Armor Penetrator
Ammunition
0 0 0 0

MILITARY EQUIPMENT USE REPORT 2024
12 Armored Rescue Vehicle (ARV)
Our ARV was utilized a total of 1 times between January 1st, 2024, through December 31st, 2024:

Authorized usages:
● Safely address an individual who displays self-destructive, dangerous, or combative behavior.
● Safely address an armed, or potentially armed, or violent individual. ● Circumstances where a tactical advantage can be obtained. ● Situations where officers utilized de-escalation techniques. ● Safely rescue citizens and first responders during armed confrontations and violence.

Unauthorized usages:
● There have been zero (0) reported violations of the military equipment used by police from January 1, 2024, through December 21, 2024.

Unmanned, remotely piloted, powered aerial or ground vehicles Unmanned, remotely piloted, powered aerial or ground vehicles were utilized a total of 14 times between January 1st, 2024, through December 31st, 2024. This includes both robots and drones. The department does not own drones and were requested from another agency:
● Drones were utilized 14 times.
● Robots were utilized 0 times.

Authorized usages:
● Safely address an individual who displays self-destructive, dangerous, or combative behavior.
● Safely address an armed, or potentially armed, or violent individual. ● Circumstances where a tactical advantage can be obtained. ● Situations where officers utilized de-escalation techniques. ● Limited to major collision investigations.
● Search for missing persons.
● Natural disaster management.
● Crime scene photography.

Unauthorized usages:
● There have been zero (0) reported violations of the military equipment use policy from January 1, 2024, through December 31, 2024.

MILITARY EQUIPMENT USE REPORT 2024
13 Inventory by Equipment Type
January 1st, 2024, through December 31st, 2024.

Note: The inventory of certain items of consumable military equipment (i.e., ammunition, diversionary devices, chemical agents, etc.) frequently fluctuates throughout the year due to operational usage, training usage, operational wear, and/or manufacturer recommended replacement guidelines. While the Pleasanton Police Department strives to provide accuracy in its inventory reporting, this report reflects approximations of certain consumable items of military equipment during the period listed above.

MILITARY EQUIPMENT USE REPORT 2024
14 Armored Rescue Vehicle (ARV)
Equipment Name: Armored Rescue Vehicle
Quantity Owned: 1 Lifespan: 12 years
Equipment Capabilities: Provides ballistic protection to occupants and can seat up to twelve people. It has an elevated turret platform, emergency equipment and public address system. It can be equipped with a breaching ram to open doors.

Manufactured Product Description: The Ballistic Armored Tactical Transport (BATT) range of armored vehicles is manufactured by Armored Group. The BATT vehicles are used by special assignment units and Special Weapons and Tactics (SWAT) units conducting law enforcement and homeland security missions. The BATT range of vehicles can transport as many as 12 to 14 officers in urban and off-road theaters of operation. The vehicles allow police and internal security forces to provide quick response to critical incidents involving firearms and violence.

Purpose/Authorized Uses: The armored rescue vehicle (ARV) provides ballistic protection for officers to enter or evacuate community members from a dangerous area. The vehicle is not weaponized and does not have tracks. It is built on a commercially available chassis but does have the capability of mounting a breaching ram to it. It is equipped with a public address system for communication. Use of the ARV is authorized by officers when there is an elevated threat of encountering armed resistance.

Fiscal Impacts: The initial cost of the equipment was $166,900 in 2012 and was funded with federal grant funding through the Office of Community Oriented Policing Services. Ongoing maintenance is handled internally by the Support Services Department.

Annual Maintenance: $1,700.00
Personnel Cost: N/A
Legal/Procedural Rules Governing Use: There are no legal rules governing use of the armored rescue vehicle. Procedurally, use of the vehicle will be authorized by a supervisor or incident commander when deemed necessary.

Training Required: During initial hire and at least every two years after, officers are provided familiarity training on use of the ARV which includes driving the vehicle and a variety of functions of the equipment (emergency equipment, public address system, door locking mechanisms, etc.).

Other Notes: The Chief of Police may authorize use at community events and city-sponsored events.

MILITARY EQUIPMENT USE REPORT 2024
15 Mobile Command Vehicle
Equipment Name: Mobile Command Vehicle
Quantity Owned: 1 owned Lifespan: 20 years
Equipment Capabilities: Provide a mobile command post for special events, tactical operations, critical incidents, natural disasters, major crime scenes, search and rescue operations and to serve as an emergency secondary dispatch center. The vehicle will be equipped with computer and radio communications equipment, phone and internet access, backup power, a command area with a conference table and various workspaces to adequately serve as a forward command post for a variety of incidents.

Manufactured Product Description: 2022 Freightliner MT55 forward control chassis, 26,000lb GVWR with air ride suspension and hydraulic brakes, 36’ total length.

Purpose/Authorized Uses: To provide a forward command post for critical incidents, special events, search and rescue operations, major crime scenes, tactical operations and to serve as an emergency backup dispatch center.

Fiscal Impacts: The cost of a mobile command vehicle is approximately $794,000 with ongoing vehicle and equipment maintenance costs. Grant funds were the primary source of funding for this piece of equipment.

Annual Maintenance: TBD
Personnel Cost: TBD
Legal/Procedural Rules Governing Use: Procedures will be established prior to use of the vehicle.

Requesting use of another agency’s vehicle would require Watch Commander or Division Commander approval.

Training Required: A formalized training program for vehicle operators will be created to include driving the vehicle, operating its components and deployment considerations Other Notes: A Mobile Command Vehicle was approved by city council and the vehicle was delivered in December 2024. No deployments as of this report.

MILITARY EQUIPMENT USE REPORT 2024
16 Unmanned Aerial Vehicles
Equipment Name: Unmanned Aerial Vehicles (UAV), Unmanned Aircraft System (UAS), Drone Quantity Owned: None owned-requested from other agencies. Lifespan: N/A Equipment Capabilities: The Pleasanton Police Department uses outside agencies UAVs of varying sizes and capabilities to enhance public safety. The UAV can be deployed when its view would assist officers or incident commanders with the following situations, which include but are not limited to major collision investigations, search for missing persons, natural disaster management, crime scene photography, SWAT, tactical or other public safety and life-preservation missions, and in response to specific requests from local, state, or federal fire authorities for fire response and/or prevention. The UAS are used in compliance with all federal, state, and local laws.

Manufactured Product Description: The UAVs are requested from other agencies such as the Alameda County Sheriff’s Office and Livermore Police Department. Specific models may vary, and manufacturer descriptions are not available.

Purpose/Authorized Uses: Remotely operated, non-weaponized drones serve the purpose of assisting with interior and exterior searches. These searches may be for suspects, evidence or missing persons.

They are also utilized for crime scene documentation. Personnel are authorized to request a UAV when the lawful use may increase safety to officers or would be a more efficient way of searching an area for a missing person or for the documentation of a crime scene.

Fiscal Impacts: There is currently no cost associated with a mutual aid request for drones.

Annual Maintenance: N/A
Personnel Cost: N/A
Legal/Procedural Rules Governing Use: UAV operators must be licensed and follow FAA rules. All searches with drones must comply with the U.S. Constitution, state and case law. The request for a UAV must be approved by a supervisor.

Training Required: UAV operators must be licensed by the FAA. No Pleasanton PD personnel are trained to operate UAVs. All UAVs are operated by licensed operators provided by the agency mutual aid.

MILITARY EQUIPMENT USE REPORT 2024
17 Robots
Equipment Name: Robotex Avatar III Robot (Will be replaced by the ICOR Robot) Quantity Owned: 1 owned Lifespan: 10 years
Equipment Capabilities: A remotely operated, non-weaponized robot which can enter a dangerous area and relay video surveillance to the operator. It is equipped with two-way audio to facilitate communication.

Manufactured Product Description: The AVATAR® enhances the capabilities of SWAT and tactical response teams by allowing them to inspect dangerous situations quickly and safely, there is no longer a need to send personnel in before you’ve had a chance to assess the situation. The AVATAR® saves lives by keeping first responders out of harm’s way, and it does so at a fraction of the price of other robots.

The AVATAR® Robots are regarded by tactical teams as a standard operational tool, like a firearm, vehicle, or piece of body armor.

Purpose/Authorized Uses: The Avatar robot is authorized for use during interior or exterior searches deemed to be elevated in risk.

The Chief of Police may authorize use at community events and city-sponsored events Fiscal Impacts: The Avatar robot was purchased in 2012 for $24,000. It occasionally requires maintenance by the manufacturer but has no recurring cost to operate.

Annual Maintenance: None
Personnel Cost: Approximately $7,500. This cost reflects a year of required training for personnel assigned to the SWAT Team.

Legal/Procedural Rules Governing Use: There are no legal rules specific to use of the robot. Robots are only authorized to be used during lawful searches. They are generally used by trained members of the SWAT team and at the direction of a commander or supervisor.

Training Required: No training is necessarily required for operating the robot, however generally only officers who have received familiarization training will operate it.

Other Notes: Scheduled to be replaced in 2025.

MILITARY EQUIPMENT USE REPORT 2024
18 Equipment Name: Recon Robotics Throwbot 2 Robot
Quantity Owned: 1 owned Lifespan: 7 years
Equipment Capabilities: A remotely operated, non-weaponized robot capable of being thrown into places which are difficult or unsafe to access. It is equipped with two-way audio to facilitate communications during a search.

Manufactured Product Description: The Throwbot 2 robot is a throwable micro-robot plaNorm that enables operators to obtain instantaneous video and audio reconnaissance within indoor or outdoor environments. Designed to withstand repeated drops of up to 30 feet onto concrete, the Throwbot 2 robot can be thrown into hazardous situations in order to allow operators to quickly make informed decisions when seconds count. This micro-robot is designed to be able to crawl over a variety of terrain, clearing obstacles up to 2” tall.

Purpose/Authorized Uses: The Throwbot robot is authorized for use during interior or exterior searches deemed to be elevated in risk. The Chief of Police may authorize use at community events and city-sponsored events
Fiscal Impacts: The initial purchase of the Throwbot was $17,300 in 2018. There are no recurring expenses associated with it
Annual Maintenance: None
Personnel Cost: Approximately $7,500. This cost reflects a year of required training for personnel assigned to the SWAT Team.

Legal/Procedural Rules Governing Use: There are no legal rules specific to use of the robot. Robots are only authorized to be used during lawful searches. They are generally used by trained members of the SWAT team and at the direction of a commander or supervisor.

Training Required: No training is necessarily required for operating the robot, however generally only officers who have received familiarization training will operate it.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
19 Rifles
Equipment Name: Colt AR-15 Patrol Rifles
Quantity Owned/Sought: 73 Owned Lifespan: Approximately 15 years Equipment Capabilities: Capable of firing .223 caliber ammunition Manufacturer Product Description: The AR-15 rifle is a lightweight, magazine-fed, gas-operated semi automatic rifle modeled after the famous military classic M4 Rifle.

Purpose/Authorized Uses: Patrol rifles allow officers to address lethal threats with precision from a distance. Compared to handguns, they are more accurate at greater distances and can penetrate most body armor.

Fiscal Impacts: The initial purchase price for the AR-15 rifles is estimated at approximately $55,689.

Purchasing records are not maintained from July of 2000 when approximately 46 rifles were originally purchased. In 2004, 15 additional rifles were purchased at a cost of $725 per rifle. In 2005, two additional rifles were purchased for $807 per rifle and in 2014 an additional ten rifles were purchased for $1100 per rifle. Associated maintenance costs of $250 per year for the AR-15 rifles include replacement batteries, parts and cleaning supplies
Annual Maintenance: $500 General Fund
Personnel Cost: Approximately $56,000. This cost reflects a year of required training for personnel assigned a patrol rifle.

Legal/Procedural Rules Governing Use: PPD Policy 312.4.4 covers deployment, use, care, and maintenance of rifles. In addition, there are a multitude of California Penal Code sections that also apply to the transportation, care, and maintenance of assault rifles. Only officers who have completed a P.O.S.T. certified patrol rifle course may be issued. A qualification course must be completed by each officer at least annually.

Training Required: Officers must complete a P.O.S.T. certified course to be issued a rifle. These courses are a minimum of 16 hours of instruction on use, deployment, and maintenance of the rifles. P.O.S.T. also requires four hours of tactical firearm instruction every two years for officers and this training is facilitated by P.O.S.T. certified rifle instructors.

Other Notes: PPD rifles have a red dot sight attached to the upper receiver, which allows for quicker target acquisition and accuracy.

MILITARY EQUIPMENT USE REPORT 2024
20 Equipment Name: Daniel Defense model MK18 RIII Rifles (Acquired in 2024) Quantity Owned/Sought: The SWAT Team is
seeking 13 rifles to replace the PWS MK111 rifles.

Lifespan: Approximately 7 Years
Equipment Capabilities: Capable of firing .223 caliber ammunition Manufactured Product Description: The MK18 AR15 style firearm is unmatched in size, weight, and performance, and features the pica'nny quad rail Daniel Defense provides to USSOCOM. The RIS II picatinny quad rail features a Bolt-Up System that has been rigorously tested prior to fielding by USSOCOM. The 10.3 inch Cold Hammer Forged barrel is the same length in use for the MK18 upper most commonly used for CQB operations. The independently ambi GRIP-N-RIP Charging Handle accommodates left and right-handed shooters. This rifle also comes with the ergonomic Daniel Defense Buistock and Pistol Grip.

Purpose/Authorized Uses: The DD MK18 rifles serve the same function as patrol rifles. They allow officers to address lethal threats with precision from a distance. Compared to handguns, they are more accurate at greater distances and can penetrate most body armor. The DD MK18 rifles will be issued to members of the SWAT team.

Fiscal Impacts: The initial purchase price for the DD MK18 rifles will be $21,108.62 for thirteen rifles in 2024. Annual maintenance costs are approximately $150 for batteries, parts and cleaning supplies.

Annual Maintenance: Anticipated to be $500
Personnel Cost: Anticipated to be approximately $80,500. This cost reflects a year of required training for personnel assigned to the SWAT Team
Legal/Procedural Rules Governing Use: PPD Policy 312.4.4 covers deployment, use, care, and maintenance of rifles. In addition, there are a multitude of California Penal Code sections that also apply to the transportation, care, and maintenance of assault rifles. Only officers who have completed a P.O.S.T. certified patrol rifle course may be issued. A qualification course must be completed by each officer at least annually.

Training Required: Officers must complete a P.O.S.T. certified course to be issued a rifle. These courses are a minimum of 16 hours of instruction on use, deployment and maintenance of the rifles. P.O.S.T. also requires four hours of tactical firearm instruction every two years for officers and this training is facilitated by P.O.S.T. certified rifle instructors. SWAT Team members who will be issued the DD MK18 rifles receive additional range training at least monthly.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
21 Equipment Name: Primary Weapons Systems (PWS) MK111 Rifles Quantity Owned/Sought: 3 Owned Lifespan: Approximately 7 Years Equipment Capabilities: Capable of firing .223 caliber ammunition Manufactured Product Description: The PWS MK1 MOD 2-M line features the PWS long stroke piston system. While the internals remain the same as other PWS lines, the MK1 MOD 2-M offers a variety of features exclusive to this line. Starting with patent pending PicLok technology on the free float handguard, users are able to mount either Pica'nny or MLOK accessories on the front of their firearm.

Moving to the fully forged upper and lower receivers, the craftsmanship of this rifle can be easily recognized. Eliminating forward assist, adding a flared mag well and built-in trigger guard, among other specific add-ons, the MK1 MOD 2-M takes high end firearms to a new level.

Purpose/Authorized Uses: The PWS rifles serve the same function as patrol rifles. They allow officers to address lethal threats with precision from a distance. Compared to handguns, they are more accurate at greater distances and can penetrate most body armor. The PWS rifles are issued to members of the SWAT team.

Fiscal Impacts: The initial purchase price for the PWS rifles was $18,000 for twelve rifles in 2014. Annual maintenance costs are approximately $150 for batteries, parts and cleaning supplies.

Annual Maintenance: $0
Personnel Cost: N/A
Legal/Procedural Rules Governing Use: PPD Policy 312.4.4 covers deployment, use, care, and maintenance of rifles. In addition, there are a multitude of California Penal Code sections that also apply to the transportation, care, and maintenance of assault rifles. Only officers who have completed a P.O.S.T. certified patrol rifle course may be issued. A qualification course must be completed by each officer at least annually
Training Required: Officers must complete a P.O.S.T. certified course to be issued a rifle. These courses are a minimum of 16 hours of instruction on use, deployment and maintenance of the rifles. P.O.S.T. also requires four hours of tactical firearm instruction every two years for officers and this training is facilitated by P.O.S.T. certified rifle instructors. SWAT Team members who are issued the PWS rifles receive additional range training at least monthly
Other Notes: These three rifles are kept as backup rifles for SWAT team members.

MILITARY EQUIPMENT USE REPORT 2024
22 Armor Penetrator Ammunition
Equipment Name: HSM Urban Copper 127 gr .308 Winchester Light Armor Penetrator Ammunition Quantity Owned/Sought: Up to 20 boxes owned Lifespan: Unknown Equipment Capabilities: This specialized ammunition is capable of accurately penetrating a variety of barriers such as glass and metal
Manufactured Product Description: The 308 Light Armor Penetrator is used for disabling vehicles at checkpoints or longer ranges or engaging threats that have taken cover behind vehicles. It is used specifically to penetrate glass and vehicles.

Purpose/Authorized Uses: This ammunition is authorized, pursuant to law and Department policy, to address lethal threats when other ammunition has proven or is expected to be incapable of penetrating a necessary barrier to reach the threat
Fiscal Impacts: The purchase price of this ammunition is approximately $88.88 per box (20 rounds per box).

Annual Maintenance: $400, general fund
Personnel Cost: N/A
Legal/Procedural Rules Governing Use: All use of force applications are governed by state law and Pleasanton PD Policy Section 300. This ammunition is used exclusively by SWAT Team members assigned to the long-rifle/observer team for very specific use cases where ballistic barrier penetration is required.

Training Required: SWAT Team members authorized to use this ammunition must train and qualify with it.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
23 Shotguns & Munitions
Equipment Name: Remington Model 870 Less-Than-Lethal Shotgun Quantity Owned/Sought: 39 Owned Lifespan: Unknown
Equipment Capabilities: Capable of firing “less-than-lethal” 12 gauge bean bag rounds Manufactured Product Description: The Model 870 is a pump-action shotgun design that has been around for more than half a century. The receiver is machined from a solid block of American steel and its pump-action makes it the smoothest, most reliable shotgun on the market Purpose/Authorized Uses: Purpose/Authorized Uses: The less-than-lethal shotguns provide alternative levels of force to overcome resistance when reasonably necessary in accordance with policy and law.

Fiscal Impacts: The shotguns were originally purchased between 1988 and 2005. Financial records of these purchases are not available. In 2015, approximately $1800 was spent to refit the shotguns with colored stocks and fore grips to better identify them as less-than-lethal devices. The current cost of a Remington shotgun is approximately $500. Maintenance costs are approximately $100 annually for cleaning supplies and parts. The bean bag ammunition costs approximately $35.50 for a box of five rounds.

Annual Maintenance: $100, General Fund
Personnel Cost: Approximately $22,000. This cost reflects a year of required training for personnel authorized to deploy a less lethal shotgun.

Legal/Procedural Rules Governing Use: All use of force application is governed by state law (including Penal Code section 13652) and Pleasanton PD Policy Sections 300 and 308.

Training Required: Only officers who have been trained and have passed a qualification course on the shotguns may deploy them. Officers receive initial training upon hire and at least every two years thereafter.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
24 Equipment Name: CTS Super-Sock Bean Bag Impact Munitions Quantity Owned/Sought: Up to 500 owned Lifespan: Unknown Equipment Capabilities: Bean bag ammunition capable of being fired from a 12-gauge shotgun.

Manufactured Product Description: The Model 2581 Super-Sock delivers unprecedented accuracy and consistent terminal impact characteristics at close-in and extended ranges, thanks to the flexible tubular material bag specially developed for this unique less than lethal round. Super-Sock is a safer and more effective round due to its accuracy and consistent transfer of kinetic energy to the target. Unlike traditional flat bags, no "unfolding" is necessary. Super-Sock is correctly deployed as soon as it exits the muzzle. No frisbee or windsurfing effects. No hitting the target folded or sideways. When deployed, the super-sock presents a consistent aerodynamic shape every time, delivering consistent and predictable terminal performance. Fits cylinder and improved cylinder 12ga shotguns chambered for 2.75" & 3" cartridges.

Purpose/Authorized Uses: The bean bag rounds provide alternative levels of force to overcome resistance when reasonably necessary in accordance with policy and law.

Fiscal Impacts: The ammunition costs $37.50 for a box of five rounds Annual Maintenance: N/A
Personnel Cost: Cost shown above with shotgun
Legal/Procedural Rules Governing Use: All use of force applications are governed by state law (including Penal Code section 13652) and Pleasanton PD Policy Sections 300 and 308 Training Required: Only officers who have been trained and have passed a qualification course with the beanbag ammunition may deploy them. Officers receive initial training upon hire and at least every two years thereafter.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
25 Launcher & Munitions
Equipment Name: FN 303 Less-Than-Lethal Launcher
Quantity Owned/Sought: 25 Owned Lifespan: Unknown
Equipment Capabilities: Capable of launching .68 caliber impact, marking and pava projectiles.

Manufactured Product Description: The FN 303 is a less lethal technology that bridges the gap between firearms and traditional impact, chemical and electro-muscular disruption devices. This launcher is constructed from durable lightweight polymer with comfortable ergonomics and easy to operate safely.

It is equipped with both flip-up iron sights and an integrated MIL-STD-1913 top mounting rail for optical or electronic sights or other accessories. The lightweight polymer magazine holds 15 projectiles and offers a clear rear cover to allow the operator to instantly verify both the payload and the number of projectiles remaining.

Purpose/Authorized Uses: The less-than-lethal shotguns provide alternative levels of force to overcome resistance when reasonably necessary in accordance with policy and law.

Fiscal Impacts: The FN 303 launchers were initially purchased in 2018 at a cost of $57,000. $12,000 of the original purchase was made with COPS grant funding. Projectiles cost between $865 and $1,054 per 150 rounds. Most projectiles purchased are clear impact rounds.

Annual Maintenance: $300, General Fund
Personnel Cost: Approximately $22,000. This cost reflects a year of required training for personnel authorized to deploy a less lethal shotgun.

Legal/Procedural Rules Governing Use: All use of force application is governed by state law (including Penal Code section 13652) and Pleasanton PD Policy Sections 300 and 308.

Training Required: Only officers who have been trained and have passed a qualification course on the FN 303 launchers may deploy them. Officers receive initial training upon hire and at least every two years thereafter.

Other Notes: In January 2025, Pleasanton PD has discontinued the use of the FN303 for patrol use. It is still being used on the East County Tactical Team with the Pava rounds.

MILITARY EQUIPMENT USE REPORT 2024
26 Equipment Name: FN 303 Pava/OC Powder Projectile
Quantity Owned/Sought: Up to 150 rounds owned Lifespan: Approximately 5 years Equipment Capabilities: Launched from the FN 303, they serve as both an impact round and a chemical agent (OC) delivery system.

Manufactured Product Description: The FN 303 Pava/OC projectile is intended as an irritant for individual suspects, point-specific targets, or small-area denial. The active ingredient is 0.5% Pava/OC in a powder form for ease of storage, deployment, and clean-up.

Purpose/Authorized Uses: To deploy against actively resisting suspects as an impact (less-than-lethal) device when the use of chemical agents is also appropriate.

Fiscal Impacts: Projectiles cost between $865 and $1,054 per 150 rounds.

Annual Maintenance: None
Personnel Cost: Listed with the FN303 launcher
Legal/Procedural Rules Governing Use: All use of force applications are governed by state law (including Penal Code section 13652) and Pleasanton PD Policy Sections 300 and 308.

Training Required: All officers receive initial training on the FN 303 upon hire and updated training at minimum every two years.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
27 Equipment Name: Penn Arms 40mm Single Launcher
Quantity Owned/Sought: 26 owned Lifespan: Approximately 15 years Equipment Capabilities: Launches a single 40mm projectile, can be loaded with various types of projectiles.

Manufactured Product Description: Single-shot, light weight, small, and operationally versatile less lethal munition delivery device.

Purpose/Authorized Uses: The 40mm launchers can be used as a less-than-lethal impact device or as a chemical agent delivery system. They can deliver chemical agents from a safe distance. The launchers may only be deployed by officers who have been trained on their use. Use for chemical agent deployment must comply with Department Policy. The devices are currently restricted to use by members of the SWAT Team.

Fiscal Impacts: Two launchers were initially purchased in 2018 for $6,250. This cost included an initial supply of projectiles. There is no maintenance cost except for ammunition which is listed in a separate section of this document. In 2023, 24 were purchased for approximately $30,500.

Annual Maintenance: None
Personnel Cost: Approximately $7,500. This cost reflects a year of required training for personnel assigned to the SWAT Team.

Legal/Procedural Rules Governing Use: All use of force applications are governed by state law (including Penal Code section 13652) and Pleasanton PD Policy Sections 300 and 308.

Training Required: Officers must be trained on use of the launchers by a certified instructor.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
28 Equipment Name: Penn Arms 40mm Launcher
Quantity Owned/Sought: Purchased in 2024 Lifespan: Approximately 15 years Equipment Capabilities: Launches 40mm projectiles, can be loaded with six rounds and with various types of projectiles.

Manufactured Product Description: The Model P540-1CER Launcher is a multi-shot, PUMP launcher with a six-shot capacity. It is designed to deliver less lethal munitions.

Purpose/Authorized Uses: The 40mm launchers can be used as a less-than-lethal impact device and stored in patrol supervisor vehicles. This is intended for patrol purposes by trained personnel. They can also deliver chemical agents. Use for chemical agent deployment must comply with Department Policy and are currently restricted to use by members of the SWAT Team.

Fiscal Impacts: The initial purchases of the launchers will be approximately $6,500.

Annual Maintenance: None
Personnel Cost: Unknown currently.

Legal/Procedural Rules Governing Use: All use of force application is governed by state law (including Penal Code section 13652) and Pleasanton PD Policy Sections 300 and 308.

Training Required: Officers must be trained in the use of the launchers by a certified instructor.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
29 Equipment Name: CTS 4557 Impact Sponge Round (first purchased in 2023) Quantity Owned/Sought: Up to 500 owned Lifespan: Approximately 5 years Equipment Capabilities: Can launch a sponge baton munition from 50 meters.

Manufactured Product Description: The 40mm sponge baton is a spin-stabilized projectile delivering blunt trauma effect with an effective range of 50 Meters. Launched from a 40mm platform, the munitions travel at a velocity of 240-260 ft./sec and weigh 105 grams.

Purpose/Authorized Uses: It is intended to be used as a less-than lethal option similar to a baton, bean bag shotgun, etc
Fiscal Impacts: Munitions are to be included in the initial purchase price.

Annual Maintenance: None
Personnel Cost: None
Legal/Procedural Rules Governing Use: All use of force applications are governed by state law (including Penal Code section 13652) and Pleasanton PD Policy Sections 300 and 308.

Training Required: Only officers who have received training from a certified instructor are authorized to use this device. The 40mm sponge baton impact munition can be used by authorized sworn personnel.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
30 Equipment Name: Defense Technology Exact Impact 40mm round (Arrived in early 2025) Quantity Owned/Sought: Up to 500 owned Lifespan: Approximately 5 years Equipment Capabilities: Can launch a sponge baton munition from 50 meters.

Manufactured Product Description: The eXact iMpact™ 40 mm Sponge Round is a point-of-aim, pointof-impact direct-fire round. This lightweight, high-speed projectile consisting of a plastic body and sponge nose that is spin stabilized via the incorporated rifling collar and the 40 mm launcher’s rifled barrel. The round utilizes smokeless powder as the propellant, and, therefore, have velocities that are extremely consistent. Used for Crowd Control, Patrol, and Tactical Applications.

Purpose/Authorized Uses: It is intended to be used as a less-than lethal option similar to a baton, bean bag shotgun, etc
Fiscal Impacts: Munitions are to be included in the initial purchase price.

Annual Maintenance: Approximately $27-30 per round
Personnel Cost: None
Legal/Procedural Rules Governing Use: All use of force applications are governed by state law (including Penal Code section 13652) and Pleasanton PD Policy Sections 300 and 308.

Training Required: Only officers who have received training from a certified instructor are authorized to use this device. The 40mm sponge baton impact munition can be used by authorized sworn personnel.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
31 Equipment Name: Defense Technology 40mm CS Liquid Barricade Penetrating Ferret (Model 2262) Quantity Owned/Sought: Up to 300 owned Lifespan: Approximately 5 years Equipment Capabilities: Delivers 27 grams of CS gas and can be launched from 50 yards away.

Manufactured Product Description: The Ferret 40mm round is non-burning and suitable for indoor use.

Used primarily by tactical teams, it is designed to penetrate barriers, such as windows, hollow core doors, wallboard, and thin plywood. Upon impacting the barrier, the nose cone ruptures and instantaneously delivers a small chemical payload inside of a structure or vehicle.

Purpose/Authorized Uses: To deploy chemical agents to encourage a suspect to surrender or disperse.

Fiscal Impacts: The devices were included in the purchase of the 40mm launchers in 2018. They cost $25 each.

Annual Maintenance: $1,100, General Fund
Personnel Cost: Approximately $7,500. This cost reflects a year of required training for personnel assigned to the SWAT Team.

Legal/Procedural Rules Governing Use: All use of force applications are governed by state law (including Penal Code section 13652) and Pleasanton PD Policy Sections 300 and 308. All chemical agent deployments except handheld pepper spray and FN 303 deployments require a chemical agents plan approved by a commander. Only trained members of the SWAT Team may deploy chemical agents.

Training Required: Only officers who have received training on this device from a certified chemical agents instructor are authorized to use it.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
32 Equipment Name: Defense technology 40mm Aerial Warning/Signaling Munition, 50 meters Quantity Owned/Sought: Up to 50 owned Lifespan: Approximately 5 years Equipment Capabilities: Can launch a munition from 50 meters away.

Manufactured Product Description: The 40mm Aerial Warning/Signaling Munition, 50 meters, deflagrates at a set distance of 50 meters to deliver 170 dB of sound and 5 million candelas of light, noticeable in day or night conditions. This device is similar to a flash bang with aerial capabilities.

Purpose/Authorized Uses: It is intended to be used in situations in outdoor settings to provide a warning or distraction.

Fiscal Impacts: $1500/ 40 rounds purchased in 2021
Annual Maintenance: None
Personnel Cost: None
Legal/Procedural Rules Governing Use: All use of force applications are governed by state law (including Penal Code section 13652) and Pleasanton PD Policy Sections 300 and 308.

Training Required: Only officers who have received training from a certified instructor are authorized to use this device. The 40mm sponge baton impact munition can be used by authorized sworn personnel.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
33 Distraction Devices
Equipment Name: Combined Tactical Systems Model 7290 Single Flash Bang Quantity Owned/Sought: Up to 50 owned Lifespan: Approximately 5 years Equipment Capabilities: Causes a noise and flash distraction.

Manufactured Product Description: The CTS 7290 is the standard for diversionary devices. It produces a 165-180db and 6-8 million candelas of light output. The patented design of the 7290, incorporates a porting system that eliminates movement of the body at detonation even if the top or bottom of the device should be in contact with a hard surface, in addition, internal adjustments have greatly reduced smoke output
Purpose/Authorized Uses: To provide a distraction during high-risk events such as forcibly entering a structure during a high-risk apprehension.

Fiscal Impacts: The cost of the devices is $51 plus tax and shipping and are ordered in cases of 12.

Annual Maintenance: $1,300, General Fund
Personnel Cost: Approximately $7,500. This cost reflects a year of required training for personnel assigned to the SWAT Team.

Legal/Procedural Rules Governing Use: ATF regulations govern the use and storage of the devices. Their use is currently limited to trained members of the SWAT Team or former members who have been trained on their use. Following best practices, these are deployed to exterior locations where the deployment area is visible by the officer. Only under extremely exigent circumstances would they be used in an interior setting.

Training Required: Only officers who have received training from a certified instructor may use the devices. SWAT Team members receive refresher training at least annually.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
34 Equipment Name: Combined Tactical Systems Model 7290M Single Flash Bang Quantity Owned/Sought: Up to 50 owned Lifespan: Approximately 5 years Equipment Capabilities: Causes a noise and flash distraction.

Manufactured Product Description: The CTS 7290M is a smaller and lighter version of the 7290 CTS flash-bang. It is 30% lighter but still has the 180db output and produces 6-8 million candela of light. The patented design of the 7290M, incorporates a porting system that eliminates movement of the body at detonation even if the top or bottom of the device should be in contact with a hard surface.

Purpose/Authorized Uses: To provide a distraction during high-risk events such as forcibly entering a structure during a high-risk apprehension.

Fiscal Impacts: The cost of the devices is $51 plus tax and shipping and are ordered in cases of 12.

Annual Maintenance: $1,300, General Fund
Personnel Cost: Approximately $7,500. This cost reflects a year of required training for personnel assigned to the SWAT Team.

Legal/Procedural Rules Governing Use: ATF regulations govern the use and storage of the devices. Their use is currently limited to trained members of the SWAT Team or former members who have been trained on their use. Following best practices, these are deployed to exterior locations where the deployment area is visible by the officer. Only under extremely exigent circumstances would they be used in an interior setting.

Training Required: Only officers who have received training from a certified instructor may use the devices. SWAT Team members receive refresher training at least annually.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
35 Equipment Name: Combined Tactical Systems Model 7290-9 Nine Count Distraction Device Quantity Owned/Sought: Up to 50 owned Lifespan: Approximately 5 years Equipment Capabilities: Hand thrown devices deploy a series of nine consecutive distractions of sound and light.

Manufactured Product Description: The CTS 7290-9 is a patented multi-bang featuring top and bottom non-fragmenting, minimal movement devices that perform with high reliability incorporating CTS superior fuse components with the patented ad US Army adopted Confidence Clip and pin shroud.

Purpose/Authorized Uses: To provide a distraction during high-risk events such as forcibly entering a structure during a high-risk apprehension when a sustained distraction is necessary.

Fiscal Impacts: The devices cost approximately $180 each and are sold in quantities of 12.

Annual Maintenance: $2,200, General Fund
Personnel Cost: Approximately $7,500. This cost reflects a year of required training for personnel assigned to the SWAT Team.

Legal/Procedural Rules Governing Use: ATF regulations govern the use and storage of the devices. Their use is currently limited to trained members of the SWAT Team or former members who have been trained on their use. Following best practices, these are deployed to exterior locations where the deployment area is visible by the officer. Only under extremely exigent circumstances would they be used in an interior setting.

Training Required: Only officers who have received training from a certified instructor may use the devices. SWAT Team members receive refresher training at least annually.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
36 Chemical Agent & Smoke Canisters
Equipment Name: Defense Technology CS Spede-Heat Grenade (Model 1072) Quantity Owned/Sought: Up to 50 owned Lifespan: Approximately 5 years Equipment Capabilities: Discharges 2.9 ounces of CS gas for 20-40 seconds.

Manufactured Product Description: The Spede-Heat Continuous Discharge Chemical Grenade is a high volume, continuous burn and expels its payload in approximately 20-40 seconds. The payload is discharged through four gas ports on top of the canister, three on the side and one on the bottom. The launchable grenade is 6.12” by 2.62” and holds approximately 2.9 oz. of active agent Purpose/Authorized Uses: To deploy chemical agents to encourage a suspect to surrender or disperse.

Fiscal Impacts: The devices cost $37 each and are sold in quantities of 12.

Annual Maintenance: $1000, General Fund
Personnel Cost: Approximately $7,500. This cost reflects a year of required training for personnel assigned to the SWAT Team.

Legal/Procedural Rules Governing Use: All use of force applications are governed by state law (including Penal Code section 13652) and Pleasanton PD Policy Sections 300 and 308. All chemical agent deployments except handheld pepper spray and FN 303 deployments require a chemical agents plan approved by a commander. Only trained members of the SWAT Team may deploy chemical agents.

Training Required: Only officers who have received training on this device from a certified chemical agents instructor are authorized to use it.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
37 Equipment Name: Defense Technology Flameless Expulsion CS Grenade (Model 2042) Quantity Owned/Sought: Up to 50 owned Lifespan: Approximately 5 years Equipment Capabilities: Deploys CS gas without outputting excessive heat.

Manufactured Product Description: The CS Flameless Expulsion Grenade is a compact, non-pyrotechnic, chemical agent device that provides safe expulsion without risk of fire. It is safe to use inside of a residence. Unlike pyrotechnic grenades, this device’s contents are expelled upon actuation of a CO2 cartridge that will affect a confined area of approximately 1500 square feet. This grenade is 7.5” by

1.65” and delivers approximately .16 oz. of active agent during its 3-second discharge 'me.

Purpose/Authorized Uses: To deploy chemical agents to encourage a suspect to surrender or disperse.

Fiscal Impacts: The devices cost $51 each and are sold in quantities of 12.

Annual Maintenance: $1,300, General Fund
Personnel Cost: Approximately $7,500. This cost reflects a year of required training for personnel assigned to the SWAT Team
Legal/Procedural Rules Governing Use: All use of force applications are governed by state law (including Penal Code section 13652) and Pleasanton PD Policy Seconds 300 and 308. All chemical agent deployments except handheld pepper spray and FN 303 deployments require a chemical agents plan approved by a commander. Only trained members of the SWAT Team may deploy chemical agents.

Training Required: Only officers who have received training on this device from a certified chemical agents instructor are authorized to use it.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
38 Equipment Name: Defense Technology Aerosol OC Vapor Grenade (Model 1056) Quantity Owned/Sought: Up to 50 owned Lifespan: Approximately 5 years Equipment Capabilities: Deploys OC (pepper spray) vapor in a mist Manufactured Product Description: The OC Vapor Aerosol Grenade is for law enforcement and corrections use to deliver a high concentration of Oleoresin Capsicum (OC) in a powerful mist. The grenade is designed for indoor use in confined areas and once deployed, inflames the mucous membranes and exposed skin resulting in an intense burning situation. The incapacitation effect of the OC Vapor on the subject is dramatic yet requires minimal decontamination. Removing the subject from the affected area to fresh air will resolve respiratory effects within minutes. The OC Vapor Aerosol Grenade is ideal for cell extractions or barricaded situations where use of a pyrotechnic, powder or liquid device is not practical or desired.

Purpose/Authorized Uses: To deploy chemical agents to encourage a suspect to surrender or disperse.

Fiscal Impacts: The devices cost $60 each and are sold in quantities of 12.

Annual Maintenance: $720, General Fund
Personnel Cost: N/A. None in inventory
Legal/Procedural Rules Governing Use: All use of force applications are governed by state law (including Penal Code section 13652) and Pleasanton PD Policy Sections 300 and 308. All chemical agent deployments except handheld pepper spray and FN 303 deployments require a chemical agents plan approved by a commander. Only trained members of the SWAT Team may deploy chemical agents.

Training Required: Only officers who have received training on this device from a certified chemical agents instructor are authorized to use it.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
39 Equipment Name: Defense technology CS Pocket Tactical (Model 1016) Quantity Owned/Sought: Up to 50 owned Lifespan: Approximately 5 years Equipment Capabilities: Deploys .9 ounces of CS gas for 20-40 seconds Manufactured Product Description: The CS Pocket Tactical Grenade is small and lightweight. The 0.9 oz. of active agent will burn approximately 20-40 seconds. At 4.75” by 1.4” in size, it easily fits in most tactical pouches. This is a launchable grenade; however, it is normally used as a signaling or covering device. Though this device is slightly over four inches in length, it produces a smoke cloud so fast it appears to be an enveloping screen produced by a full-size tactical grenade.

Purpose/Authorized Uses: To deploy chemical agents to encourage a suspect to surrender or disperse.

Fiscal Impacts: The devices cost $35 each and are sold in quantities of 12.

Annual Maintenance: $420, General Fund
Personnel Cost: N/A. None in inventory
Legal/Procedural Rules Governing Use: All use of force applications are governed by state law (including Penal Code section 13652) and Pleasanton PD Policy Sections 300 and 308. All chemical agent deployments except handheld pepper spray and FN 303 deployments require a chemical agents plan approved by a commander. Only trained members of the SWAT Team may deploy chemical agents.

Training Required: Only officers who have received training on this device from a certified chemical agents instructor are authorized to use it.

Other Notes: None.

MILITARY EQUIPMENT USE REPORT 2024
40 Additional Military Equipment Requested:

Equipment Name: ICOR Mini-Caliber Robot, New for 2025
Quantity Owned/Sought: 1 sought / Replacement Lifespan: 7-10 years Equipment Capabilities: A remotely operated, non-weaponized robot which can enter a dangerous area and relay video surveillance to the operator. It is equipped with two-way audio to facilitate communication. This device is equipped with a turreted robotic claw to facilitate opening doors and lifting obstacles under 15 lbs.

Manufacturer Product Description: The ICOR Mini-Caliber Robot enhances the capabilities of SWAT and tactical response teams by allowing them to inspect dangerous situations quickly and safely, there is no longer a need to send personnel in before you’ve had a chance to assess the situation.

The ICOR robot saves lives by keeping first responders out of harm’s way, and it does so at a fraction of the price of other robots. The ICOR robots are regarded by tactical teams as a standard operational tool, like a firearm, vehicle, or piece of body armor.

Purpose/Authorized Uses: The ICOR robot is authorized for use during interior or exteriorsearches deemed to be elevated in risk.

The Chief of Police may authorize use at community events and city-sponsored events.

Fiscal Impacts: The ICOR robot and is associated accessories is scheduled for purchase in June of 2025 for $83,422.90. It occasionally requires maintenance by the manufacturer but has no recurring cost to operate.

Annual Maintenance: None
Personnel Cost: Approximately $6,650. This cost reflects a year of required training for personnel assigned to the SWAT Team.

Legal/Procedural Rules Governing Use: There are no legal rules specific to use of the robot. Robots are only authorized to be used during lawful searches. They are generally used by trained members of the SWAT team and at the direction of a commander or supervisor.

Training Required: No training is necessarily required for operating the robot, however generally only officers who have received familiarization training will operate it.

Other Notes: To replace the Avatar Robot.

MILITARY EQUIPMENT USE REPORT 2024
41 Internal Audit
The police department is committed to providing information to our community in compliance with Assembly Bill 481. Police department personnel conduct various military equipment audits to determine functionality, inventory, and verify proper personnel have assigned equipment. All military equipment, including firearms, less lethal launchers, diversionary devices/chemical agents, and specialty ammunition, were accounted for during this period.

Training Costs
The use of certain items of military equipment and related special tactics are perishable skills that require ongoing training to maintain proficiency. While the Department conducts constant training within its Personnel and Training Unit and specific specialized units (i.e., Crisis Negotiation Team, SWAT, etc.), there is significant tactical insight and an enhanced skill set to be gained by participating in external training courses. These courses provide officers with a curriculum and exercises designed to impart knowledge, skills, and enhanced capability. The courses amended by officers can vary from year to year, depending on operational needs.

Funding sources for training are funded from the existing police training budget.

Storage Costs
Our current military equipment listed in this report is stored at the police department or city facilities. There are no third-party storage costs.

Conclusion
As outlined in this report, the Pleasanton Police Department utilizes various types of military equipment to protect life, prevent crime, and enhance the quality of life for all our community members. In accordance with Assembly Bill 481 the police department will be transparent regarding funding, acquisition, or use of military equipment by your police department’s officials. The police department has a strong desire to have our community members participate in their local government’s decision to fund, acquire, or use this type of equipment.

Moreover, when making decisions regarding how military equipment is funded, acquired, or used, the Pleasanton Police Department considers the public’s welfare, safety, civil rights, and civil liberties. Any member of the public can submit a complaint to the Pleasanton Police Department in person, telephone, email, etc.). Once the complaint is received, it will be routed for review to the Internal Affairs Unit in accordance with the Pleasanton Police Department’s policy and procedures.

Item #15

CITY COUNCIL AGENDA REPORT
May 20, 2025
Finance
TITLE: REVIEW OF THE PROPOSED TWO-YEAR OPERATING AND CAPITAL BUDGET FOR FY 2025/26 AND FY 2026/27 AND THE FIVE-YEAR CAPITAL IMPROVEMENT PROGRAM FOR FY 2025/26 THROUGH FY 2029/30

SUMMARY
Every two years, the City adopts a balanced two-year Operating and Capital Budget and approves a multi-year Capital Improvement Program (CIP). For the upcoming budget year, the City faces an ongoing General Fund structural deficit, meaning expenses have and are expected to continue to grow faster than revenues. This report presents the two-year Proposed Budget and five-year Capital Improvement Program (CIP) incorporating the direction of the City Council on General Fund Budget reduction recommendations from prior public meetings to facilitate public comment, address any budget-related questions, and provide direction regarding amendments or additional information in advance of the planned formal adoption of the City budget in June. Copies of the Proposed Budget and CIP books have been distributed to the City Council and are attached to this report.

RECOMMENDATION
Staff recommends the City Council:
• Review the Proposed Operating and Capital Budget and CIP; and • Provide direction regarding issues or amendments to address prior to formal City Council action planned for June 17, 2025.

BACKGROUND
The Proposed Operating and Capital Budget includes a comprehensive and detailed account, forecast and plan for all City revenues and expenditures across all funds, including the General Fund, Enterprise Funds, Internal Service Funds, Special Revenue Funds, Debt Service Funds, and Capital Project Funds. Both the two-year budget and the Capital Improvement Program (CIP) documents include narratives and details that provide information regarding budgetary adjustments, issues, and goals; the budget messages in the Proposed Budget and the CIP provide notable highlights.

As with all City budgets, this document focuses attention on those areas deemed by the City Council to be a high priority, as outlined in the ONE Pleasanton Strategic Plan. At special City Council budget workshops on April 8 and 10, the City Council received reports and provided direction to staff on the recommended General Fund program and service budget reductions for fiscal years 2025/26 and 2026/27 and the five-year CIP capital projects reliant on General Fund contributions. Those reports can be viewed at:
https://pleasantonca.portal.civicclerk.com/event/409/files/agenda/958 and https://pleasantonca.portal.civicclerk.com/event/448/files/agenda/987.

Recommended service reductions were vetted with the Budget Advisory Committee at meetings from January to April 2025, and community feedback was also considered in developing the Proposed Budget. As the City faces an ongoing structural deficit, with revenues not keeping pace with expenses, the Proposed Budget and CIP do not fully account for the City's true capital investment needs due to a lack of funding. As a result, the Proposed Budget incorporates a range of reductions while balancing commitments to the community.

The CIP addresses improvements and a range of maintenance projects related to facilities, transportation and streets, parks, water, sewer, and storm drain systems. On April 10, 2025, staff presented its recommendations for the General Fund supported projects and received the City Council’s input. The City Council supported staff’s recommendations for seven critical/urgent CIP projects and funding for two core projects – a total of $16.6 million of General Fund-supported projects that went through the City's recently adopted CIP Prioritization Process. The prioritized projects will address regulatory requirements, minimize the likelihood of facility closures, or be significantly grant-funded.

DISCUSSION
This agenda report is intended to provide the City Council and the public with an opportunity to review recommended expenditures, revenues, and assumptions for the next two-year budget and five-year CIP. It also provides the City Council with an opportunity to request additional information, if necessary, prior to the adoption of the budget, scheduled for June 17, 2025.

Operating Budget
The operating budget represents the City’s two-year financial plan for delivering General Fund programs and services in a fiscally responsible manner consistent with City Council priorities, goals, and objectives. The Proposed Operating Budget reflects the need for approximately $10 to $12 million in ongoing General Fund reductions in each of the next two fiscal years, as identified in the City’s 10-Year Financial Forecast and confirmed by an independent financial assessment. That report was presented to the City Council at its March 4, 2025, meeting and can be viewed at: https://pleasantonca.portal.civicclerk.com/event/386/files/report/1935.

The FY 2025/26 expenditure budget across all operating funds totals $248.2 million, including General Fund, Enterprise Funds, Special Revenue Funds, Internal Service Funds, Debt Service Funds, and Trust Funds. The FY 2026/27 budget totals $257.5 million.

The General Fund operating expenditure budget totals $154.7 million and $160.7 million for FY 2025/26 and FY 2026/27, respectively. With transfers out, the overall General Fund expenditure budget is $165.2 million and $171.2 million for the next two years. The General Fund Budget anticipates modest revenue growth over the next two years, with the projected General Fund revenue budget totaling $162.9 million in FY 2025/26 and $169.3 million in FY 2026/27. While this projected growth will enable the City to continue providing critical, core programs and services to the community, it is not enough to address all the City’s needs and close the structural deficit as expenditures are projected to continue growing faster than revenues. As such, the balanced proposed budget was achieved using one-time funding, including $4.0 million from the Section 115 Pension Trust, $2.1 million from the Retiree Medical/Other Post-Employment Benefits (OPEB) Trust over the next two years, $3.0 million from the Capital Reserve, as well as service reductions that will impact nearly all of the City’s operating areas.

The use of one-time funds and redirecting funding away from capital and maintenance needs is not sustainable, and the structural deficit remains. This situation will be exacerbated by any economic downturn and/or costs rising beyond what is projected. Without further service reductions and/or supplemental, sustainable, ongoing revenue, the City will continue to face these fiscal challenges. Additionally, the funding needs for the City’s capital infrastructure remain significant at approximately $900 million over the next 10 years, and this number is projected to go up as additional deficiencies are identified based on a more thorough assessment of the City’s facilities and other capital assets through the Asset Management Plan study currently underway.

In addition to program and service reductions, and to reflect the City Council’s priorities, the Proposed Operating Budget also includes some internal restructuring to improve operational efficiency, such as the addition of one full-time employee in the area of Economic Development and the consolidation of economic and community development resources within one department to form a new Community and Economic Development Department, which is discussed in more detail below.

The following highlights some noteworthy aspects of the Proposed Operating Budget. Refer to Attachment 1 for more details.

Consolidation of Community Development and Economic Development The two-year budget includes a proposed organizational change to transition the Economic Development Division, currently housed in the City Manager’s Office, to a division of the Community Development Department, which would be re-titled to the Community and Economic Development Department (CEDD). The proposed change reflects the City Council’s strategic plan priority to increase focus on economic development activities, and a growing interest in exploring opportunities through land use, permitting, and process changes to facilitate new investment in Pleasanton. As such, the Economic Development Division would include, in addition to the current Economic Development Manager, a new Economic Development and Business Development Manager, who would provide an additional resource to be complementary to the more program-based focus of the Econimic Development Manager. This new position will initiate improvements to City processes that affect business investment, including permit processing (e.g., permit center workflow improvements and troubleshooting between City divisions involved in the permit process); review and update of zoning and land use regulations and procedures to reduce unnecessary delays and costs to applicants and administrative burden on staff; and business supportive services (e.g., business concierge, small business liaison/technical assistance). The Economic and Business Development Manager would also provide a critical bridge between planning and land use, building and safety, and economic development to support long-range planning initiatives, such as review of opportunities for new light-industrial development in East Pleasanton, and exploring retail and commercial opportunities as part of the Stoneridge mall mixed-use redevelopment.

Changes to Library Service Levels
One of the largest cost savings in the Proposed Operating Budget is the reduction of library hours to 48 hours per week, representing a 23 percent reduction to current service hours. The Pleasanton Library is currently open 62 hours per week, which places it near the top of operating hours for public libraries in the region. For comparison, public library hours in nearby

cities range from 39 hours per week (Union City) to 65 hours per week (Livermore). The proposed reduction would keep Pleasanton within that range. The proposed library hours reduction represents staff’s best effort to achieve significant savings (close to $1.0 million starting in Year 2) while preserving core library programs.

Reductions to Park Maintenance Services
Following the public discussion at the April 8 and 10, 2025, City Council budget workshops regarding the reduction in maintenance of parks and trails, staff has included a modified reduction in the Proposed Operating Budget in response to City Council's direction.

Whereas the current (pre-reduction) Service Level ("A") Includes watering frequency of three to four times per week at all parks, with mowing typically occurring once a week by a contractor, and median maintenance and mulching services, the proposed reduction to park maintenance Service Level (“B”) reduces funding for outside contracts, such as median maintenance, mowing, and reallocates two full-time equivalent (FTE) staff positions to offset the impacts of reduced contracts and support the ongoing maintenance and overall conditions of City parks while eliminating median mulching and fall leaf pickup. While some decrease in service levels will occur (e.g., less frequent mowing), the proposed approach aims to preserve park conditions to avoid unplanned capital replacement needs. This revised service level represents a compromise that yields significant savings for the City by eliminating contracts and freezing 2.0 FTE positions, while also reallocating existing staff resources to continue the City's standard for maintaining the park system.

Potential Impacts from Utility Rate Changes
Finally, it is important to note that, while the Proposed Operating Budget includes assumptions about utility rates which are a large cost driver for the City organization, there is persistent uncertainty about water and energy rates. Although the proposed reductions include some planned savings from implementing a PG&E Energy Use Reduction policy for City buildings, energy rates are continuing to rise and may offset savings. In addition, staff is continuing to refine the City’s projected water expenditures based on the recent direction set by the City Council regarding potable and recycled water rates. The adopted rate structure modifies how high-volume usage is billed, which may result in cost adjustments for City operations.

However, recycled water rates are also expected to increase in the coming years, which may offset any potential savings.

Change to Internal Personnel Adjustments Considered by the City Council in April One of the adjustments previously presented at the April budget workshops and subsequently incorporated into the Proposed Operating Budget - freezing of the Fire Marshal position for the Livermore-Pleasanton Fire Department - is now recommended to be reversed. In addition, the freezing of the Emergency Preparedness Manager is now recommended to be modified to add back a part-time position at a reduced cost to continue support of the Community Emergency Response Team (CERT) program. The City of Livermore and Pleasanton are the only two members of the Livermore-Pleasanton Fire Department Joint Powers Authority (LPFD JPA), and while these reductions were initially considered viable for streamlining operations, ultimately the changes were not supported by the City of Livermore. Due to the timing of this decision, the changes could not be incorporated into the Proposed Operating Budget. Staff will make necessary adjustments to the General Fund budget to reflect the changes and present it to the City Council as part of the final budget adoption in June.

Capital Improvement Program
The Capital Improvement Program serves as a strategic resource allocation plan for capital projects and promotes long-term planning. Capital investments are critical in building and maintaining infrastructure for a livable, vibrant community.

The City updates its five-year Capital Improvement Plan (CIP) every two years, incorporating both Capital Improvement (CIP) Projects and Repair and Replacement (R&R) initiatives. The next CIP, covering fiscal years 2025/26 through 2029/30, will be presented for adoption in June 2025. This cycle is guided by the newly adopted Capital Improvement Program Prioritization Process (CIPPP) framework, approved by the City Council in December 2024.

The CIPPP introduced a more structured and transparent methodology for evaluating and prioritizing projects based on objective criteria.

CIP projects typically involve new construction or major infrastructure replacements, while R&R projects focus on sustaining the performance of existing assets. Deferred maintenance, or the delayed upkeep of infrastructure, can significantly increase long-term costs and heighten the risk of asset failure if left unaddressed.

Total capital expenditures and reserves recommended in the first two years of this CIP are approximately $54.0 million for FY 2025/26 and $32.0 million for FY 2026/27 for a total of $86.0 million over the two funded years of the CIP and a total of $221.7 million over all five years. As noted in the budget message in the CIP book (Attachment 2), funding for enterprisefunded water and sewer projects assumes rate increases and anticipated debt proceeds.

General Fund-Supported Projects
General Fund contributions are essential for maintaining the City’s core infrastructure, particularly facilities, parks, and other assets not supported by enterprise or restricted funds.

Since the City has and continues to rely on a “pay-go” model (meaning the City relies on the General Fund, not infrastructure bonds or other borrowing) for non-enterprise fund projects, it is critical to set aside funds as capital needs continue to grow. The City has developed a proposed five-year CIP amid significant infrastructure funding challenges. A Citywide call for projects resulted in 27 General Fund supported CIP project requests totaling $53.4 million, as outlined in the April 10, 2025, City Council meeting agenda packet. However, existing reserves and projected contributions are insufficient to fund all requests without drawing on Deferred Maintenance resources. Considering this funding gap, and with the Asset Management Plan (AMP) scheduled for completion by December 2025, staff recommends deferring most project funding decisions until the AMP provides a comprehensive, data-driven prioritization of needs. In the interim, only the nine most critical urgent projects totaling $16.6 million are recommended for funding in this cycle. These critical projects address regulatory requirements, minimize the likelihood of facility closures, or are significantly grant-funded.

At the April 10, 2025, City Council meeting, staff recommended reallocating $2.0 million of the FY 2025/26 General Fund CIP contribution to support repairs and replacements in the Facilities Renovation Fund. This reallocation will extend the service life of critical community assets such as the Dolores Bengtson Aquatic Center, Fire Station 2, and Bernal Synthetic Fields, and other deferred maintenance which would otherwise require major capital reinvestment if allowed to further deteriorate. This resulted in a total of $15.5 million from the CIP General Fund in addition to the City's commitment of $30.3 million over the next five years for Deferred Maintenance. The CIP fund will be applied to address the needs in the upcoming

Asset Management Plan estimated at $900 million in infrastructure needs, including $500 million in General Fund-supported assets.

Annual Core Projects
The CIPPP established Annual Core Projects, a recurring program essential to public safety, regulatory compliance, and the reliable delivery of City services. These projects involve the planned replacement of critical assets at the end of their service life and are excluded from general prioritization due to their pre-established need and predictable nature.

Core projects are primarily funded from restricted sources tied to enterprise operations, with the Annual Facility Replacement Program being the only General Fund-supported core project. Unlike discretionary or one-time capital projects, core projects are systematic, planned reinvestments that support the City's foundational infrastructure. Their recurring nature and clearly defined purpose make them unsuitable for ranking through the broader prioritization process; instead, their necessity is assumed based on operational mandates, industry standards, asset life cycles, and past performance data. This approach ensures that the City proactively addresses known infrastructure needs and avoids costly emergency repairs, extends asset life, and ensures continuity of service. The proposed CIP includes eight new core projects totaling $36.6 million, plus $21.0 million in enterprise-funded core projects and $2.2 million for the Annual Facility Replacement Program.

Two new core programs are recommended for inclusion:
• Annual Traffic Button and Lane Marker Installation (CIP FY507) – Enhances roadway safety and visibility.
• Annual Bicycle and Pedestrian Improvements (CIP FY543) – Advances projects in the Bicycle and Pedestrian Master Plan using Measure BB funds.

Enterprise-Funded Capital Improvement Program
Projects for the City’s water and sewer utilities are funded through enterprise revenues and are therefore excluded from the general prioritization process. These projects are defined and prioritized through the Water System Management Plan and Sewer System Management Plan.

The recently adopted Water System Management Plan and the in-process Sewer System Management Plan identify significant capital needs over the next decade, including deferred projects that will require new revenue sources and debt issuance. Rate studies are currently underway to determine appropriate utility rate adjustments. The proposed enterprise-funded projects totaling $70.8 million for water and $39.5 million for sewer reflect funding levels based on staff-recommended rate scenarios, which will be presented to the City Council for consideration. Final project approval and budget allocations will depend on the adopted rates.

Additionally, existing enterprise projects are proposed to be restructured and reallocated under the updated plans.

Although the stormwater utility is structured as an enterprise program, it does not currently generate sufficient revenue to be self-sustaining and has historically relied on General Fund support. To address this, $1.7 million is proposed in the CIP to fund the development of a comprehensive Storm System Master Plan and associated field investigations. These efforts

will define infrastructure needs and identify long-term funding strategies, including options to establish a fully self-supporting stormwater enterprise fund. An additional $1.0 million from the General Fund is allocated to the Annual Stormwater Repair and Replacement Program.

Reserve Projects, Interfund Transfers and Debt Payments The CIP’s first-year totals include $18.1 million in reserve projects that will be carried forward as part of the CIP update. This includes approximately $3.5 million in General Fund-supported projects and the remainder in restricted funds. Reserve projects funded from restricted funds are primarily developer contributions that cannot be reallocated to other projects. Many reserves are earmarked for emergency needs, upcoming developments, future projects, and ensuring flexibility and long-term planning.

Additionally, expenditure of approximately $2.5 million in the first two years and $6.5 million over a five-year period is set aside for interfund transfers for operating costs and debt payments.

CIP Project Summary
For Fiscal Years 2025/26 to FY 2029/30, $203.6 million of new capital project expenditures are anticipated, and a total CIP program project budget of $318.0 million. Refer to the attached CIP Book for details.

Staffing Impacts
The CIP has a significant increase in annual expenditures, primarily in water and sewer, with the total program averaging $44.0 million over the next five years. With the additional General Fund contributions for deferred maintenance, additional staff and/or consultants with alternative delivery methods will be needed to support the additional project needs. Staffing recommendations will be brought forward based on analysis of the best long-term solution for the City and incorporated into future operating and capital budgets.

Future Large Capital Needs
In addition to deferred maintenance projects from the Asset Management Program, the City has several large capital projects that will be coming in future cycles of the CIP. The City will continue to seek grants where possible but will need to provide matching funds or fully fund the projects if the conditions can no longer be deferred. These projects include:

• Bernal Bridge near Foothill Road – $25 - $30 million
• El Charro Road and I-580 Interchange Widening (City is responsible for southeast quadrant) – $25 - $35 million
• El Charro Road – City share for East Pleasanton - $35 - $50 million • I-680 and Sunol Boulevard Interchange – $30 - $40 million • Soundwall Stabilization and Repair – $5 - $10 million • Local Bridge Maintenance – $5 - $10 million
• Fire Station 2 Replacement – $25 - $30 million
• Paving Program Backlog – $46 million
Conclusion
Given the City's structural deficit and limited General Fund resources, it is critical to prioritize capital improvements and repairs to maintain infrastructure. Historically, underfunding capital needs and repairs has led to deteriorating facilities at risk of failure, increasing costs and disrupting services. Much of the City's infrastructure is already beyond its expected service life, and temporary fixes are not sustainable over the long term. Using CIP and Repair and Replacement funds to address General Fund operating deficits would deplete essential resources, delay maintenance, and increase long-term costs and risks; reallocating CIP funds for short-term deficits will jeopardize infrastructure health and essential services. As the Asset Management Plan (AMP) results are finalized, the CIP will be adjusted to prioritize the most critical projects, ensuring long-term infrastructure sustainability.

EQUITY AND SUSTAINABILITY
Ensuring the long-term fiscal sustainability of the City’s organization ensures that the City can continue to provide programs and services to serve all members of Pleasanton's diverse community.

OUTREACH
Staff developed a public engagement plan to seek community input during the first four months of 2025.

As part of the City's engagement strategy, an 11-member Budget Advisory Committee (BAC) was appointed in December and met four times, starting in January. The BAC’s near-term responsibility is to provide input on community priorities related to program and service reductions to guide the City toward a balanced budget for the next two years.

The City also hosted a Budget Town Hall attended by more than 90 people, launched an online budget engagement tool that received more than 700 responses, and hosted a pop-up at the Farmers Market to share information about the budget and programs and services provided by the City. These sessions included exercises to weigh in on potential service reductions. In addition, most City Council meetings since November 2024 have included significant budget-related agenda items for discussion, and monthly special workshops were added to the City Council calendar to facilitate further public discussion of budget-related items.

The City Council provided additional direction to staff at two special public budget workshops

on April 8 and 10, 2025, to inform the City Manager's proposed two-year budget. All City departments were asked to submit "high priority" projects to be included in the CIP as outlined in the Capital Improvement Program Prioritization Process.

STRATEGIC PLAN ALIGNMENT
The Proposed Operating and Capital Budgets and 5-Year CIP align with the ONE Pleasanton Strategic Plan goal of Investing in Our Environment to promote effective use of existing facilities through maintenance and repair, and plan for future facilities, amenities, and infrastructure to benefit the community with a focus on environmental stewardship; and Funding Our Future to support financial health and sound fiscal policies through long-term planning, cost recovery, increased revenue, and cost-containment.

FISCAL IMPACT
The proposed total City operating expenditures for Fiscal Years 2025/26 and 2026/27 are $248.2 million and $257.5 million, respectively, for the Operating Budget and $54.0 million and $32.0 million for the Capital Budget. Staff intends to make a presentation for the Proposed Operating and Capital Budget and CIP that will provide details on projected revenues and planned expenditures and highlight key changes to personnel, non-personnel, and the capital project budget.

Prepared by: Submitted by: Approved by:

Susan Hsieh, Director of
Finance
Adam Nelkie, Assistant Dir.
of Public Works -
Engineering
Susan Hsieh, Director of Finance
Siew-Chin Yeong, Director of Public
Works
Gerry Beaudin, City
Manager
Attachments:

1. 2025-27 Operating Budget

2. 2025-30 Capital Improvement Program

3. 2025-27 Proposed Budget and CIP Presentation

C i t y o f P l e a s a n t o n , C A
FY2025/26 - FY2026/27
Operating Budget

CITY OF PLEASANTON, CALIFORNIA

OPERATING BUDGET
FY 202ʨʢʥʩ – FY 202ʩ/2ʪ
City Council
ʽ˔˖˞ʵ˔˟˖˛, Mayor
ʽ˘˙˙ˁ˜˕˘˥˧, Vice Mayor
ʶ˥˔˜˚ ʸ˜˖˛˘˥, Councilmember
ˀ˔˧˧ʺ˔˜˗ˢ˦, Councilmember
ʽ˨˟˜˘ˇ˘˦˧˔, Councilmember
Staff
Gerry Beaudin, City Manager
Pamela Ott, Assistant City Manager
Susan Hsieh, Director of Finance
Chris Yi, Financial Services Manager
ʶ˜ˡ˗ˬˊ˘˜ʟʽ˨ˡ˜ˢ˥ʴ˖˖ˢ˨ˡ˧˔ˡ˧
˅˔ˤ˨˘˟ˍ˘˚˔˥˥˔ʟʽ˨ˡ˜ˢ˥ʴ˖˖ˢ˨ˡ˧˔ˡ˧
ʽ˔ˠ˜˘ʺ˔˟˟˔˚˛˘˥ʟʴ˗ˠ˜ˡ˜˦˧˥˔˧˜˩˘ʴ˦˦˜˦˧˔ˡ˧

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Table of Contents Page
City Manager’s Budget Message 1
Strategic Goals 17
About Pleasanton 21
Summary
Budget Summary 28
Estimated Changes in Fund Balances 42
Summary of Revenues and Expenditures - Citywide 46
Summary of Revenues by Fund Types 47
Summary of Expenditures by Fund Types 49
Citywide Operating Budget Summary - Revenues by Source 51 Citywide Operating Budget Summary - Expenditures by Department 52 Expenses by Category - All Funds 54
Citywide Summary of Activities - FY 2025/26 55
Citywide Summary of Activities - FY 2026/27 57
General Fund Operating Budget Summary 59
Expenses by Category - General Fund 60
General Fund Transfer Summary 61
History of Full-time Staffing 62
Projected Debt Ratios and Payments through 2027 64
General Government
City Council Department 67
City Manager Department 69
Law Department 79
Finance Department 83
Human Resources Department 89
Information Technology Department 95
Non-Departmental 101
Public Safety
Livermore-Pleasanton Fire Department 105
Police Department 113
Community and Economic Development
Community and Economic Development Department 129

Table of Contents Page
Library and Recreation
Library and Recreation Department 147
Cemetery 159
Paratransit 159
Public Works
Public Works Department 165
Callippe Golf 174
Parks 175
Streets and Traffic Safety 176
Facilities and Fleet 177
Water 178
Sewer 179
Storm Drain 179
Recycled Water 180
Engineering 181
Appendix
A. Capital Improvement Program Overview 189
B. Budget Preparation Process 193
• Budget Calendar 195
• Glossary 196
• Acronyms 209
• Accounting Systems and Funds 210
C. Financial Policies 213
• General Financial Policies 214
• Fee Policy 217
• Sewer Enterprise Financial Policy 224
• Water Enterprise Financial Policy 225
• City Debt Policy 227
• Investment Policy and Guidelines 242
• Reserve Policy 259
D. Major Revenues and Financial Forecast 263
• General Fund Ten-Year Forecast 268
E. Debt Overview and Summary 273
F. Fund Structure 275
• Fund Descriptions 276

City Manager’s
Budget Message

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City Manager's Budget Message
Honorable Mayor and City
Councilmembers, Councilmembers,
I am pleased to submit the proposed FY
2025/26 and 2026/27 Operating Budget
(Budget) for the City of Pleasanton in
accordance with the City’s Municipal Code.

This Budget represents the City’s two-year
{nancial plan for delivering City programs
and services in a {scally responsible manner
consistent with the priorities, goals, and
objectives adopted by the City Council,
along with Council direction and consistent
with the {ve-year ONE Pleasanton Strategic
Plan adopted in October 2023.

Collectively, the Budget, Capital Budget, and {ve-year Capital Improvement Program (CIP) provide funding plans for projects, programs, and services consistent with the City Council’s strategic goals and recognizing ongoing {scal constraints.

The FY 2025/26 and FY 2026/27 Proposed Operating Budget is balanced with signi{cant cost reductions and limited use of savings and investment funds. The City faces a severe and increasing structural de{cit, meaning that expenses have and are expected to continue to grow faster than revenues. The City Council and the administration collectively have taken various actions to contain costs as early as the FY 2023/24 budget by freezing some vacant positions and delaying certain vehicle and equipment purchases, as well as other operational cost saving measures to realize some savings at year-end. With the need to continue reducing expenditures, as part of the FY 2024/25 Mid-Term Budget Review process, staff performed a comprehensive analysis of all the City programs and services and identi{ed approximately $2.5 million in reductions in the General Fund budget without signi{cantly impacting the programs and services provided to the community. This is in contrast to a typical Mid-Term Budget Review process where minor changes to year two of the biennial budget are proposed. However, given the City’s {scal challenges, staff undertook a more in-depth approach to progressively work toward reducing spending.

Even with the aforementioned efforts to reduce expenditures, closing the structural de{cit completely would mean reductions and elimination of additional City services and programs that the community values and expects. As such, staff also performed exhaustive research and presented various supplemental revenue options for the City Council to consider, and in July 2024, the City Council approved placing a half-cent sales tax measure on the November 2024 ballot. With Measure PP, which would have generated approximately $10.0 million in additional sales tax revenues, failing to gain the necessary support from voters, the City immediately began working on developing the next two-year budget with extraordinary cost-containment requirements—guided by an exceptional level of community engagement.
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The City Council also adopted key budget principles to guide budget development, focusing on {scal sustainability and promoting strong community engagement:

Long-Term Fiscal Stability – Prioritize sustainable practices and reduce reliance on onetime funding; Protect Core and Essential Services – Prioritize the preservation of essential over nonessential programs and services; Community Engagement and Equity – Engage the public early and consider equity when evaluating service impacts; and
Prioritize Infrastructure – Maintain and improve core infrastructure, including the City's capital and maintenance needs.

A Budget Advisory Committee (BAC) was appointed in December 2024 and held four meetings between January and April 2025. The BAC's overriding responsibility was to provide input on community priorities as reduction options were discussed to arrive at a balanced two-year budget, and to start to think about opportunities and other operational changes to move the City toward greater {scal stability.

The City hosted a Budget Town Hall where attendees received information about the budget and programs and services provided by the City, and sought additional input from the community through an online engagement tool and a pop-up event. These sessions included exercises for those attending to weigh in on potential service reductions. In addition, each City Council meeting from November 2024 through April 2025 included at least one signi{cant budget-related agenda item, including topics such as budget presentation and principles discussion, independent {nancial assessment presentation, baseline budget and preliminary long-term forecast presentation, analysis on the use of pension and other post-employment bene{ts (OPEB) trust funds, and cost reduction and capital project recommendations. These agenda reports have further clari{ed the City’s {nancial position. Importantly, an independent assessment by an outside {rm validated the City's work and highlighted the City’s sizable budget de{cit and af{rmed the City’s use of best practices in {nancial forecasting methods.

The FY 2025/26 and FY 2026/27 Proposed Operating Budget re|ects the results of this exhaustive and collective effort. Overall, the General Fund Budget anticipates modest revenue growth over the next two years. While this projected growth will enable the City to continue providing critical, core programs and services to the community, it is not enough to address all of the City’s needs and close the structural de{cit. Expenditures are projected to continue growing at a faster pace. As such, the balanced proposed budget was achieved using one-time funding, including $4.0 million from the Section 115 Pension Trust, $2.1 million from the Retiree Medical/Other Post-Employment Bene{ts (OPEB) Trust over the next two years, $3.0 million from the Capital Reserve, and service reductions.

While the Proposed Operating Budget, as presented, is balanced for the next two years, service reductions, as well as one-time funds, were utilized to balance the budget. This is not sustainable, and the structural de{cit remains. This situation will be exacerbated by any economic downturn and/or costs rising beyond what is projected. Without further service reductions and/or supplemental, sustainable, ongoing revenue, the City will continue to face this challenge. Additionally, the funding needs for the City’s capital infrastructure remains signi{cant at approximately $900 million over the next 10 years, and this number is projected to go up as additional de{ciencies are identi{ed based on more thorough assessment of the City’s facilities and other capital assets through the Asset Management Plan study currently underway.
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