ATTACHMENT 1
PROFESSIONAL SERVICES AGREEMENT
THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is entered into this 20th day of January 2026, between the CITY OF PLEASANTON, a municipal corporation ("City"), and OPERATIONAL TECHNICAL SERVICES LLC, 10250 Constellation Blvd, Ste 2300, Los Angeles, CA 90067, and telephone number is (424)203-6352, ("Consultant").
RECITALS
A. Consultant is qualified to and experienced in providing as-needed staff augmentation and construction management services for the purposes specified in this Agreement.
B. City finds it necessary and advisable to use the services of the Consultant for the purposes 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 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. Staff. Consultant shall assign qualified personnel to provide staff augmentation services under this Agreement. Assigned personnel may be replaced only with personnel of equal or greater qualifications and only with the prior written approval of the City.
4. Term. This Agreement shall commence on the date written above and shall remain in effect through June 30, 2029, unless earlier terminated in accordance with this Agreement or upon exhaustion of the not-to-exceed compensation amount, whichever occurs first.
5. Compensation. City shall pay Consultant for services rendered pursuant to this Agreement as described more particularly in Exhibit A. The payments shall be made on a monthly basis upon receipt and approval of Consultant's invoice. Total compensation for
services and reimbursement for costs shall not exceed $1,500,000.
a. Invoices submitted to City must contain a brief description of work perfomed, 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.
6. 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.
7. 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 the 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.
8. 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.
9. 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 the Consultant are its agents and employees, and are not agents or employees of the City.
10. 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.
11. 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.
12. 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.
13. 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:VIL Consultant 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 Consultant'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. Automobile Liability Insurance. Automobile liability insurance with limits not less than $2,000,000 per person/per occurrence.
c. 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.
d. Professional Liability Insurance. Professional liability insurance in the amount of $2,000,000.
e. 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.
f. Waiver of Subrogation. The insurer agrees to waive all rights of subrogation against the City, its officers, employees, and agents.
g. 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.
h. 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.
14. 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: David Sibelman
Chief Executive Officer
10250 Constellation
Blvd, Ste 2300
Los Angeles, CA 90067
To City: City Manager
City of Pleasanton
P.O. Box 520
Pleasanton, CA 94566
15. 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.
16. 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.
17. 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.
18. Confidentiality. Consultant shall exercise reasonable precautions to prevent the unauthorized disclosure and use of City reports, information, or conclusions.
19. 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.
20. 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.
21. Governing Law. California law shall govern any legal action pursuant to this Agreement with venue in the applicable court or forum for Alameda County.
22. 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.
23. Exhibits. All exhibits referred to herein are attached hereto and are by this reference incorporated herein.
24. 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 of2000 (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.
25. 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 §313J
□
CONFIDENTIAL
424.285.0051• [email protected] • www.getots.com • 10250 Constellation Blvd, Ste 2300 Los Angeles, CA 90067
TASK ORDER
TASK ORDER NO. # 2025- 09302025 JOB NAME: Utilities System Operator II
OTS INFORMATION
NAME: Operational Technical Services, LLC
ADDRESS: 10250 Constellation Blvd, Ste 2300
Los Angeles, CA 90067
CONTACT: David Sibelman, Chief Executive Officer
PHONE: (424) 203-6352
EMAIL: [email protected]
THIS TASK ORDER is issued pursuant to that certain Agreement for Temporary Services by Independent On-Call Contract between City of Pleasanton (“Client”) and Operational Technical Services, LLC, also known as OTS dated, December 5th, 2025, which is set to expire in one (1) year.
1. Project Name or Description: Utilities System Operator II
2. Premises: The Client’s designated worksite where the OTS Employee will perform assigned duties is located at 3333 Busch Road, Pleasanton, CA 94566 and shall be defined as the “Premises” for the purposes of this Agreement.
3. Reporting Supervisor Name/Role: Jeremy Cox/ Utilities Manager
4. Duration of Services:
Start Date/Time: The Employee’s start date shall be the date on which the position is officially filled, to be confirmed in writing by the Employer.
End Date: Indefinite
Work Schedule: 9/80 or M - F (flexible, either or)
Shift Schedule: 6am - 3pm
5. Scope of Services: This section outlines the services provided by Operational Technical Services, LLC (“OTS”) under this Agreement, the insurance coverages included, and the job responsibilities of the assigned OTS Employee while on site at the Premises.
Services Provided by OTS: OTS will provide the following services as part of this Agreement.
These services are included in the bill rate unless otherwise stated:
Service Notes
Candidate Recruitment & Submittal Screening, resume formatting, and reference checks
Technical Interviews Conducted for all supervisory/managerial roles and for OTS Employees working alone
without client supervision
CONFIDENTIAL
424.285.0051• [email protected] • www.getots.com • 10250 Constellation Blvd, Ste 03-115 Los Angeles, CA 90067 Onboarding (background/drug check) Includes a 7-year local, state, and federal background check and a 10-panel drug
screening
Certified Payroll & Compliance Prevailing wage tracking, DIR registration, union reporting if applicable
Operator Health Insurance Offering Medical, dental, and vision plans offered per ACA
Meals (Per Diem for Travel Assignments) Coordinated by OTS and billed based on GSA-mandated per diem rates; costs are
passed through to the client
Travel Costs (Flight, Mileage, Housing) OTS coordinates all travel; all costs are client billable
Travel Coordination Lodging, flights, mileage, and meal planning arranged and tracked by OTS
Required Safety PPE OTS provides necessary PPE (e.g., gloves, vests, safety glasses) upon request
Health & Safety Medical Screening Includes a pre-assignment health questionnaire and consultation with OTS’s in-
house physician to assess fitness for duty and
discuss any job-related health concerns
Payroll & Tax Administration Wages, withholdings, and direct deposit setup Timecard Collection & Invoicing Time entry, client approval workflow, and weekly billing
Workers’ Compensation Coverage See Included Insurance Coverage section Insurance Management COIs available upon request
Compliance Monitoring I-9, labor law, onboarding and credential tracking
Note: All travel costs, including lodging, per diems (based on GSA rates), mileage, and flights, are coordinated by OTS but billed separately to the client based on actual expenses incurred.
Included Insurance Coverage: OTS maintains the following insurance policies covering all OTS Employees and services provided under this Agreement. Certificates of Insurance (COIs) will be made available upon request. Where required by the Client, OTS may list the Client as an additional insured.
Coverage Type Coverage Limit Notes
CONFIDENTIAL
424.285.0051• [email protected] • www.getots.com • 10250 Constellation Blvd, Ste 03-115 Los Angeles, CA 90067 Commercial General Liability
(CGL)
$1,000,000 per occurrence
$2,000,000 aggregate
Unencumbered policy; covers
bodily injury, property
damage, and personal injury
Commercial Auto Liability $1,000,000 Non-owned and hired vehicle coverage only; no fleet or
employee-owned vehicles
used
Professional Liability (Errors
& Omissions)
$5,000,000 Covers acts, errors, and
omissions in professional
services
Umbrella/Excess Liability $4,000,000 Applies in excess of CGL, Auto, and Employer’s
Liability coverages
Workers’ Compensation $1,000,000 Statutory coverage in all applicable states; includes
Employer’s Liability
Pollution Liability $5,000,000 Commercial Pollution Control Liability coverage for
environmental work
Employment Practices
Liability Insurance (EPLI)
$5,000,000 Covers claims related to
hiring, termination,
harassment, and
discrimination
Note: All insurance coverages are maintained by OTS and are reviewed and renewed annually.
Client-specific requirements outside of the limits listed above must be requested in writing and may be subject to additional underwriting review or surcharge.
Job Description: The following outlines the minimum job scope, qualifications, and working conditions for the OTS Employee assigned under this Agreement. This information ensures consistent communication between OTS, the Client, and the assigned Employee.
General Duties: The OTS Employee assigned to this role may be responsible for tasks including but not limited to:
● This is a journey-level Operator classification. Under limited supervision and through training and experience employees in this classification are assigned increasingly more responsible duties in the operation and maintenance of the City's water, sewer and storm drain systems. Utilities System Operator Ils are assigned on a rotating basis to the following crews: A. Water or sewer pump station crew which daily checks pump stations and well operations in the respective system. This crew makes flow changes, takes readings, adjusts chemicals and performs routine maintenance. B. Distribution or collections crew, these crews work with Utilities System Operator Is and Maintenance Assistants to perform water or sewer main repairs, main disinfection, meter sets and sewer main video work. C. Level II operators routinely work with a Lead Utility System
CONFIDENTIAL
424.285.0051• [email protected] • www.getots.com • 10250 Constellation Blvd, Ste 03-115 Los Angeles, CA 90067 Operator to maintain the computerized SCADA control system and may be assigned to work independently on a variety of work. Utilities System Operator II rotates through a 24-hr standby duty, responding to emergencies that deal with the water, sewer and storm drain systems
● Receives immediate supervision from Lead Utilities System Operators. May oversee work of Utilities System Operator Is and Maintenance Assistants in the field. ● Oversees and assists in the repair of water and sewer mains and water services, taps mains, and may install pipe.
● Checks and maintains the daily operation of water or sewer pump stations and wells.
Performs maintenance duties such as installing, lubricating, packing, replacing and repairing pumps, motors, valves, and meters and ancillary equipment. ● Works with and on telemetry equipment used for monitoring water and sewer systems. ● Operates and maintains trucks, backhoes, compressors and other power equipment. ● Performs laboratory analysis on water and sewer samples. ● Responds to customer inquiries and complaints about water quality, pressure problems, sewer back ups, and leaks.
● Marks streets or the ground to identify underground water and sewer pipes using maps and blueprints.
● Works with chemicals such as chlorine.
● Performs flushing duties on the water distribution system. ● Oversees and assists sewer inspection crew in using television pipeline inspection equipment.
● Cleans and removes stoppages in sewer lines by operating sewer equipment such as a hydroflusher or vactor truck.
● Records readings on flow meters, psi gauges and various equipment routinely. ● Operates computerized controlled equipment and makes adjustments as necessary. Sets up and operates traffic control devices around work areas. Maintains system records and produces various reports. Performs other duties as assigned.
Minimum Qualifications:
● Any equivalent combination of training and experience that would provide the knowledge, skills and abilities required to perform the essential duties of the job. ● License/Certification:
○ Possession of a valid class C California driver's license. State of California Grade II water distribution license is required. State of California Grade I water treatment license is required.
○ Grade I CWEA sewer collection certificate is required. Obtain a Class A California Driver's License with Tanker Endorsement within one year from date of hire.
● Knowledge of:
○ Basic flow mechanics to calculate flows, volumes and dosages. ○ Common safety procedures for working in confined or hazardous environments and for working with chemicals.
○ Pump and motor parts, valving and operation of pump maintenance, repairs and troubleshooting. Basic plumbing materials and procedures. ○ State regulations governing the operation of sewer and storm drain collection systems.
○ State regulations governing the operation of public water distribution systems. ● Skill to:
○ Read and understand materials such as safety manuals, operating manuals,
CONFIDENTIAL
424.285.0051• [email protected] • www.getots.com • 10250 Constellation Blvd, Ste 03-115 Los Angeles, CA 90067 equipment manuals, work orders, and complaint forms.
○ Read and use basic blueprints, maps and schematic diagrams. ○ Perform plan checks for new construction and upgrades to existing infrastructure.
Communicate effectively and courteously with supervisors, co-workers and the public.
○ Follow written and oral instructions.
○ Write legibly to fill out time cards, reports and forms and use basic English to complete simple forms.
○ Add, subtract, multiply and divide to calculate volumes and dose chemicals. ○ Communicate effectively on a two-way radio system. Evaluate and troubleshoot problems with pumping and controlling systems and valves.
Physical Requirements: The OTS Employee must be able to perform the following duties with or without reasonable accommodation:
● Appropriately select and operate power tools for required work. ● Independently lift and move materials weighing up to 65 pounds and with assistance up to 100 pounds.
● Safely operate heavy equipment such as a backhoe, skip loader and crane. ● Perform physical labor throughout the workday, involving standing for extended periods of time, stooping, working in cramped areas and on uneven surfaces. ● Work effectively as part of a crew or independently when necessary. ● Remain alert and focused on duties and be conscious of potential hazards in order to maintain a safe working environment.
● Work safely with and around chemicals on a daily basis. ● Possess basic computer skills.
Work Conditions & Supervision
● Work outside routinely in various weather conditions and in construction zones with dust and pollens.
● Work with and near chemicals such as chlorine, hydrofluorasilic acid and in the vicinity of high voltage wires, high-pressure gas, water and sewer mains, and toxic gas. ● Wear work uniform and safety equipment provided by the City. ● Climb ladders and tanks up to 35 feet in height.
● Work in and around manholes and pipes.
● Must be able to respond to emergency call outs in 30 minutes or less during standby duties.
Important Notice: The job description above must accurately reflect the duties and expectations of the assigned OTS Employee. If any information is incorrect, incomplete, or requires clarification, it must be updated and approved prior to execution of this Agreement. The OTS Employee will not be held responsible for performing duties outside the scope outlined in this section unless explicitly agreed to in writing by both OTS and the Client.
6. Break Requirements: This section applies to all OTS Employees working in jurisdictions where applicable state or local laws require meal and rest periods. In cases where state law provides more generous protections than federal law, state law shall prevail.
Clients and/or on-site supervisors are responsible for scheduling and allowing meal and rest periods in compliance with this policy and applicable labor laws. OTS Employees are expected to communicate any missed breaks to both the client and OTS immediately.
CONFIDENTIAL
424.285.0051• [email protected] • www.getots.com • 10250 Constellation Blvd, Ste 03-115 Los Angeles, CA 90067
In the event an OTS Employee is unable to take a required meal or rest period, the Employee and/or Client must report the missed break to OTS within twenty-four (24) hours. In accordance with applicable law, the Employee may be entitled to one (1) additional hour of pay at their regular rate of compensation for each workday that a meal or rest period is not provided.
Meal Periods: Pursuant to applicable state labor laws, the OTS Employee shall be entitled to one (1) unpaid, duty-free meal period of not less than thirty (30) minutes for every five (5) consecutive hours worked. The first meal period must commence no later than the end of the OTS Employee’s fifth hour of work. The OTS Employee shall not be required to perform any work-related duties during any designated meal period.
An OTS Employee may waive the first meal period if their total daily work shift does not exceed six (6) hours, provided that there is mutual consent between the OTS Employee and the Employer, and a written waiver is executed by the OTS Employee. This waiver must be submitted to Operational Technical Services, LLC (“OTS”) within twenty-four (24) hours of mutual consent. The waiver may be submitted by email to [email protected]. Alternatively, the client may use their own waiver form, provided it meets applicable legal requirements.
If an OTS Employee works more than ten (10) hours in a single workday, they shall be entitled to a second unpaid, duty-free meal period of not less than thirty (30) minutes. The second meal period may be waived only if the OTS Employee’s total workday does not exceed twelve (12) hours, the first meal period was not waived, and mutual written consent has been obtained. Any such written waiver must be submitted to OTS within twenty-four (24) hours of mutual consent. The waiver may be submitted by email to [email protected], or the client may use their own compliant waiver form.
Where required by the assignment or mutually agreed in writing, a meal period may be counted as compensable time and paid at the OTS Employee’s regular hourly rate.
Rest Breaks: In accordance with applicable law, the OTS Employee shall be authorized and permitted to take paid rest periods of at least ten (10) consecutive, uninterrupted minutes for every four (4) hours worked, or major fraction thereof. Rest breaks shall be counted as hours worked and shall not be deducted from the OTS Employee’s total compensable time.
Rest periods shall be scheduled, to the extent practicable, near the middle of each four-hour work period. For example, an OTS Employee working eight (8) hours should receive one rest period before and one after the meal period. OTS Employees working more than 3.5 hours are entitled to one rest period; more than six (6) hours, two rest periods; and more than ten (10) hours, three rest periods.
The OTS Employee shall not be required to remain on work premises during rest breaks and shall not be required to perform any work-related tasks during such periods.
7. Fee Schedule and Compensation Structure: The following outlines the billing rates, billable expenses, and compensation structure applicable to the OTS Employee assigned under this Agreement. Rates are subject to review every six (6) months or upon any material change to assignment terms (e.g., schedule, pay rate, job duties, etc.).
CONFIDENTIAL
424.285.0051• [email protected] • www.getots.com • 10250 Constellation Blvd, Ste 03-115 Los Angeles, CA 90067
Base Rates:
Position OTS Employee
Base Regular Bill Rate $175.50/hr
Night Shift Differential (+$1.00/hr for pay
rate)
$178.50/hr
Billable Expenses (Pass-Through Costs): All billable expenses are pass-through costs incurred by OTS on behalf of the Client and are subject to a 10% administrative fee unless otherwise noted.
Expense Type Rate Notes
Mileage At rate set by Federal
Government
Based on current federal GSA
rate
Per Diem At rate set by County
Government
Based on GSA rates for
lodging location; calculated
per calendar day
Housing Actual cost + 10% admin fee* OTS books and manages hotel or extended-stay
lodging
Insurance Opt-Out Discount 10% off bill rate** Applies only if the employee formally declines OTS-
provided insurance
* A 10% administrative fee is added to the cost of lodging and per diem. ** If the OTS Employee opts back into OTS insurance benefits during an open enrollment period, the discount will be removed from future invoices.
Local vs. Travel Designation:
● Local Operator: Resides within 40 miles of the project site. ● Travel Operator: Resides beyond 40 miles; entitled to housing, mileage, and per diem as outlined above.
Mileage: The Candidate’s initial trip to the assignment lodging and final trip from the assignment upon completion will be billed to the Client as standard reimbursable expenses. The Client may, at their discretion, choose to approve additional mileage reimbursements—such as for periodic trips home during long- term assignments—by approving such costs via the Candidate’s weekly timecard.
Only approved mileage will be passed through as a reimbursable expense.
Overtime and Premium Pay:
● Overtime: 1.5x the base bill rate
CONFIDENTIAL
424.285.0051• [email protected] • www.getots.com • 10250 Constellation Blvd, Ste 03-115 Los Angeles, CA 90067 ● Double Time: 1.75x the base bill rate (where applicable by state law) ● Holiday Work: 1.5x the applicable bill rate for hours worked on approved holidays
Overtime is defined per applicable federal, state, and local law. For example, federal regulations require overtime pay for all hours worked over 40 in a workweek. California law may require daily overtime.
On Call Support:
● Standby On-Call Compensation:
○ On a worked shift day: 1 regular hour of compensation ○ On a non-worked shift day: 2 regular hours of compensation ● Activated On-Call Compensation:
○ Charged at a minimum of two (2) hours or for the full duration from departure to return to domicile—whichever is greater
○ Overtime rules apply based on total weekly or daily hours worked
Late Payments: Client agrees to remit payment in full within thirty (30) days of the invoice date.
Any invoice not paid in full within thirty (30) days shall accrue interest at the lesser of one and one-half percent (1.5%) per month or the maximum amount permitted by law. In addition, Client shall be responsible for any costs of collection, including reasonable attorney’s fees, incurred by OTS in recovering overdue amounts.
Timecard Approval Process:
● Workweeks run Monday through Sunday
● Timecards are submitted by Employees in Bullhorn no later than Sunday EOD ● Client must review and approve timecards in Bullhorn by Monday EOD ● If approval is not received by Monday EOD, OTS will approve and bill based on submitted hours
If the Client anticipates delays or needs assistance with timecard approvals, they must contact [email protected] to request a written extension or alternative process. If the designated approver (e.g., site manager or supervisor) will be off-site or unavailable, the Client must notify OTS in advance and formally assign an alternate point of contact for timecard review and approval.
8. Billing Contact Information: The Client must complete the following billing contact section to ensure proper invoice delivery and payment coordination. OTS will use this information for all billing-related communications unless otherwise updated in writing.
Primary Billing Contact:
● Full Name: ____________________________________
● Title/Department: ____________________________
● Email Address: ______________________________
● Phone Number: ______________________________
● Billing Address: _____________________________
Additional Billing Contact (Optional):
● Full Name: ____________________________________
● Title/Department: ____________________________
CONFIDENTIAL
424.285.0051• [email protected] • www.getots.com • 10250 Constellation Blvd, Ste 03-115 Los Angeles, CA 90067 ● Email Address: ______________________________
● Phone Number: ______________________________
● Billing Address: _____________________________
Note: Any changes to billing contact information must be submitted in writing to [email protected].
9. Termination of Agreement: Either party may terminate this Agreement without cause upon ten (10) business days’ written notice to the other party. Termination shall not relieve either party of obligations incurred prior to the effective termination date.
Upon termination, the Client shall remain responsible for payment of:
● All hours worked by any assigned OTS Employee through the termination date ● Any pre-approved pass-through expenses incurred
● Any administrative or service fees due under this Agreement
10. Confidentiality: OTS and its assigned Employees agree to maintain the confidentiality of any proprietary, technical, financial, or client-specific information accessed during the assignment, unless disclosure is required by law or with prior written authorization from the Client.
Confidential information shall not be disclosed to any third party or used for any purpose other than fulfilling the obligations of this Agreement. This obligation shall survive the termination of the Agreement.
11. Force Majeure: Neither party shall be held liable for any delay or failure in performance under this Agreement due to circumstances beyond its reasonable control, including but not limited to acts of God, natural disasters, labor strikes, war, civil unrest, cyberattacks, pandemics, utility outages, or government-imposed restrictions.
If such a delay persists for more than fifteen (15) consecutive days, either party may terminate this Agreement upon written notice, with payment obligations limited to services rendered and approved costs incurred prior to the date of termination.
12. Client Responsibilities: To ensure successful execution of this Agreement and the safety of assigned OTS Employees, the Client agrees to:
● Provide a safe and compliant work environment, including any required site-specific safety training
● Notify OTS immediately of any workplace accidents, security incidents, regulatory issues, or material changes to the assignment scope
● Designate a primary point of contact for timecard approvals, performance feedback, and assignment coordination
● Ensure timely access to tools, systems, and facilities necessary for the OTS Employee to perform their job duties
● Promptly inform OTS of any concerns related to job performance, conduct, or site- specific policy violations
Failure to meet these responsibilities may impact OTS’s ability to fulfill the scope of services and may result in temporary assignment suspension or reassignment of personnel.
CONFIDENTIAL
424.285.0051• [email protected] • www.getots.com • 10250 Constellation Blvd, Ste 03-115 Los Angeles, CA 90067 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date written above.
This Agreement may be executed electronically and in counterparts, and all such counterparts shall constitute one and the same agreement. Each party agrees that an electronic signature shall be deemed the same as an original signature.
Each party represents that the undersigned is authorized to enter into this Agreement and bind their respective organization.
Operational Technical Services, LLC
City of Pleasanton
For: Operational Technical Services, LLC
For Client: City of Pleasanton
David S Sibelman
Print Name Print Name
Chief Executive Officer
Title Title
Signature Signature
Date Date
CONFIDENTIAL
424.285.0051• [email protected] • www.getots.com • 10250 Constellation Blvd, Ste 03-115 Los Angeles, CA 90067
EXHIBIT A
TEMP TO HIRE CONVERSION FEE SCHEDULE
CONVERSION POLICY
The Client shall not hire or otherwise engage any Temporary Employee assigned by OTS as a permanent employee prior to the completion of one thousand (1,000) hours of straight-time work (excluding overtime and on call time after actual hours worked) (approximately twenty-five [25] weeks of full-time service) without compensating OTS as provided herein.
If the Client converts a Temporary Employee before the completion of 1,000 straight-time hours, the Client shall pay OTS the difference between the actual hours worked and 1,000 hours, calculated at the agreed straight-time hourly bill rate, together with a conversion fee equal to twenty-five percent (25%) of the Employee’s first year annualized salary.
If the Client converts a Temporary Employee after the completion of 1,000 hours but before reaching 1,600 hours of straight-time work, the Client shall pay OTS a conversion fee in accordance with the fee schedule set forth below.
If the Client converts a Temporary Employee after the completion of 1,600 or more hours of straight-time work, no conversion fee shall apply.
The Client shall provide OTS with a copy of the Employee’s signed Offer Letter within ten (10) calendar days of acceptance, regardless of whether a conversion fee applies.
Number of Hours on
Operational Technical Services Payroll
Percent (%) of Employee’s
Annual Salary
1,000 Hours 25%
1000 – 1250 Hours 20%
1251 – 1400 Hours 15%
1401+ 1600 Hours 10%
1601+ Hours No Fee
Item #10
CITY COUNCIL AGENDA REPORT
January 20, 2026
Public Works - Utilities Division
TITLE: AUTHORIZE THE CITY MANAGER TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH WOODARD & CURRAN, INC. TO SUPPORT SEWER SYSTEM OPERATIONS IN AN AMOUNT NOT-TO-EXCEED $500,000
FOR A FIVE-YEAR TERM
SUMMARY
Staff recommends awarding a five-year, not-to-exceed $500,000 professional services agreement to Woodard & Curran, Inc. to provide as-needed technical support for the City’s sewer collection system. These services include hydraulic modeling and capacity evaluation required for ongoing development review, implementation of State-mandated sewer programs such as force main desktop inspection and enforcement, and other specialized support necessary to sustain reliable and compliant utility operations.
Woodard & Curran has maintained the City’s hydraulic model since 2023 and has unique, system-specific knowledge essential for timely analysis, regulatory compliance, and informed capital planning.
RECOMMENDATION
Authorize the City Manager to enter into a professional services agreement with Woodard & Curran, Inc. to support sewer system operations in an amount not-to-exceed $500,000 for a five-year term.
BACKGROUND
The City owns and operates a complex sewer collection system that includes approximately 253 miles of gravity sewers, 4.9 miles of force mains, eight siphons, 11 active pump stations, and roughly 21,000 service connections. Average dry-weather flow is approximately 6 million gallons per day (MGD). Wastewater treatment is provided through long-standing agreements with Dublin San Ramon Services District (DSRSD) and, for the Ruby Hill service area, with the City of Livermore. The City is also a member of the Livermore-Amador Valley Water Management Agency (LAVWMA) for the disposal of treated wastewater and conveys Castlewood flows through its system under an agreement with Alameda County.
On January 18, 2022, the City Council approved a professional services agreement with Woodard & Curran to develop the City’s sewer collection system hydraulic model and conduct capacity evaluations under CIP No. 16245. The hydraulic model has since become an essential planning and operational tool supporting capital project design, development review, and system performance evaluation. The prior contract has been fully utilized, and continued modeling support is necessary due to the system’s complexity and the need for accurate, data- driven decision-making.
On June 17, 2025, the City Council adopted the City’s Sewer System Management Plan
(SSMP), which identifies required Operations and Maintenance (O&M), Repair and Replacement (R&R), and Capital Improvement Program (CIP) activities to maintain compliance with State regulations. The SSMP was submitted to the State in July 2025, and the associated Sewer CIP was approved on November 4, 2025. Implementation of these commitments requires ongoing engineering and planning support.
DISCUSSION
Hydraulic modeling is a specialized discipline. Woodard & Curran developed and maintains the City’s current model, and is uniquely positioned to provide timely updates and interpret system behavior in response to sewer system replacements, operational changes, sewer system overflow mitigation, or planned maintenance, repair, and replacement projects. Consistent modeling support is essential to:
• Accurately assess existing and future system capacity, • Prioritize maintenance projects based on data,
• Review and condition private development applications, and • Support day-to-day utility operations and emergency planning.
To date, the City has cleaned and inspected approximately 250,000 linear feet of collection system, representing roughly 30 percent of the system. This inspection effort has identified urgent repair and replacement needs. Due to limited in-house engineering and planning capacity, as-needed consultant support is required to analyze inspection data, develop the R&R program, and begin addressing priority deficiencies. Delaying this work increases the risk of sewer overflows, asset failures, and regulatory non-compliance.
The SSMP outlines several mandatory State requirements involving cleaning, inspection, asset management, enforcement, and documentation, such as the sewer siphon inspection and repair program, the force main and large diameter desktop and inspection program, the maintenance hole condition assessment and rehabilitation program, and the annual sewer collection system repair and replacement program. While City staff has developed a preliminary compliance plan, implementation will require specialized technical expertise and dedicated utility planning support. As-needed consultant services will ensure the City meets regulatory timelines and maintains compliance with State Water Board expectations.
This agreement is structured as an as-needed contract. The City Manager or designee will issue task orders with a clearly defined scope, schedule, and budget. This structure provides flexibility, ensures fiscal control, and allows the City to deploy expert resources efficiently as priorities arise. The total contract amount will not exceed $500,000 over a five-year period.
EQUITY AND SUSTAINABILITY
Staff followed the City Procurement Policy for purchasing procedures and the previous City Council-approved provisions to develop this recommendation.
OUTREACH
No outreach was conducted, as this item is a routine matter of City business.
STRATEGIC PLAN ALIGNMENT
Approval of this action advances the Citywide ONE Pleasanton Strategic Plan goal of Investing in Our Environment by supporting proactive asset management, regulatory compliance, and long-term planning for the City’s sewer collection system to maintain system reliability and protect environmental quality.
FISCAL IMPACT
Funding for this agreement will be provided from the following sources: CIP Sewer Fund (43141301-440108) for the Annual Sewer Collection Improvements Project 26278, the Internal Service Fund (43442201-430107) for Repair and Replacement, and the Professional Services Operations (43041202-430101), for each task order requiring these services as assigned and authorized.
When a service is required for a project/service, the firm will be requested to submit a detailed proposal that defines the scope of work for the project and the fee required to complete the task. Typically, the support costs for such services vary in value depending on the size, type of service, and complexity of the job. Upon review and approval of the proposal staff will issue a task authorization letter providing directions to proceed with the work.
Approval of this contract authorizes staff to spend up to the aggregate amount of $500,000 over the five-year contract term.
Prepared by: Submitted by: Approved by:
Siew-Chin Yeong, Director
of Public Works
Siew-Chin Yeong, Director of Public
Works
Gerry Beaudin, City
Manager
Attachments:
1. Professional services agreement with Woodard & Curran, Inc.
PROFESSIONAL SERVICES AGREEMENT
AS NEEDED PROFESSIONAL SERVICES
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into this ___ day of January 2026, between the CITY OF PLEASANTON, a municipal corporation (“City”), and Woodard & Curran, Inc., a Maine corporation, whose address is 2175 N. California Blvd., Suite 315, Walnut Creek, CA 94596, and telephone number is (925) 627-4100 (“Consultant”).
RECITALS
A. Consultant is qualified to and experienced in providing engineering services associated with on-call services to support the Public Works Utilities Division, to perform including but not limited to hydraulic analysis and modeling, Sewer Collection System operations engineering, programming, Sewer Force main desktop inspection, specified condition assessments and related investigations and studies, for the purposes specified in this Agreement.
B. City finds it necessary and advisable to use the services of the Consultant for the purposes 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 under a Task Authorization authority. For all services Consultant will submit a written estimate detailing the cost to perform the requested project or services, the City will then issue a Task Authorization letter as a guide for reimbursement once the scheduled work is completed and to the satisfaction of the City. If authorized work exceeds the initial estimate or City requests additional services, Contractor is to notify the City of the additional cost and the City will provide an amended Task Authorization. No work shall be performed unless approved by the City’s designated project manager. 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 will expire on June 30, 2031.
4. Compensation. City shall pay Consultant for services rendered on a time and material cost basis as defined in Exhibit A and shall be in accordance with the fee schedule as described 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 $500,000 for the duration of the Term, which includes a fifteen percent contingency for additional tasks listed in Exhibit A, as determined by the City. Payment of such contingency funds is not guaranteed to Consultant unless the City requests such extra services.
a. Invoices submitted to City must contain a brief description of work performed, with identified task if applicable, time used, personnel performing services and City reference number. Also included with the invoices is a tracking mechanism of the percentage of task completed in comparison to the available allocated dollar amounts per task. Rates included on the invoice must match the Fee Schedule/Rate Sheet on file with this Agreement. For all markups, all receipts and invoices must be submitted with invoice for reimbursement. Upon completion of work and acceptance by City, Consultant shall submit final invoice for payment.
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. Both Consultant and City shall jointly own any and all work product created by the Consultant on behalf of City pursuant to this Agreement. Nothing herein shall result in the transfer of any ownership rights from Consultant to City for any previously created and/or copyrighted material owned by Consultant. To the extent that the work product created by Consultant for City incorporates any such previously created and/or copyrighted material into such work product, Consultant grants to City an irrevocable and unrestricted license to use such previously created and/or copyrighted material for City’s internal use. The City shall ensure that these editable materials, including MS Word training PowerPoint presentations, are used only for City’s internal use and, unless required by law, not released or made available via internet, on disk, or otherwise to anyone outside the City business operations.
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. Automobile Liability Insurance. Automobile liability insurance with limits not less than $2,000,000 per person/per occurrence.
c. 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.
d. Professional Liability Insurance. Professional liability insurance in the amount of $2,000,000.
e. 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.
f. Waiver of Subrogation. The insurer agrees to waive all rights of subrogation against the City, its officers, employees and agents.
g. 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.
h. 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:
__________________________
Daniel G. Sodergren, City Attorney
EXHIBIT A – RATE SHEET
Scope: To provide as-needed professional services as requested, including but not limited to hydraulic analysis and
modeling, Sewer Collection System operations
engineering and programming, Sewer force main
desktop inspection
Schedule: As negotiated and agreed per task authorization
Item #11
CITY COUNCIL AGENDA REPORT
January 20, 2026
Public Works - Engineering Division
TITLE: AUTHORIZE THE CITY MANAGER TO ENTER INTO AN ON-CALL
PROFESSIONAL SERVICES AGREEMENT WITH PAKPOUR CONSULTING GROUP, INC. FOR UTILITY PROGRAM MANAGER SERVICES, IN AN AMOUNT NOT-TO-EXCEED $5 MILLION FOR A FIVE-YEAR TERM AND APPROVE THE
BUDGET AMENDMENTS
SUMMARY
In 2025, the City Council adopted the Water System Management Plan (WSMP) and Sewer System Management Plan (SSMP), along with the associated 20-Year Capital Improvement Program (CIP), establishing the policy direction, funding framework, and implementation timeline for water and sewer infrastructure investments in Plesanton over the next two decades. Updated water rates will be implemented starting in January 2026 to fund the enhanced water CIP, and sewer rates will be presented for City Council consideration in 2026, with the target new sewer rate structure beginning January 1, 2027. The current 20-Year CIP identified the need to convert planning-level projects into fully scoped, scheduled, and budgeted projects, as well as the need for increased program and project management resources included as part of overall CIP project costs to ensure timely and coordinated project delivery.
To support these objectives, the City issued a Request for Qualifications (RFQ) to retain a consulting firm specializing in utility program development and delivery. Four firms submitted Statements of Qualification, and three were selected for an interview. Following evaluation of qualifications, interviews, and references, staff recommends awarding the contract to Pakpour Consulting Group, Inc. (PCG). PCG will manage the delivery of the City’s utility CIP programs, provide program and project management staff, and work with the City to train in-house staff with the long-term goal of transitioning program oversight.
RECOMMENDATION
1. Authorize the City Manager to enter into an on-call professional services agreement with Pakpour Consulting Group, Inc. for Utility Program Manager Services, in an amount not-to-exceed $5 million for a five-year term and approve the budget amendments.
2. Authorize the Public Works Director to approve future task authorizations under this contract without further council approval.
3. Approve the budget amendments to transfer $150,000 from Fund 431 (Sewer CIP Fund) to Fund 430 (Sewer Operating Fund) and appropriate $150,000 to the Sewer Operating Fund Professional Services account (43041202-430101)
BACKGROUND
The City of Pleasanton adopted the Water System Management Plan (WSMP) in 2025,
followed by approval of new water rates on October 7, 2025, to support implementation of an enhanced water capital program. The City also adopted the Sewer System Management Plan (SSMP) on June 17, 2025, with updated sewer rates and associated 20 Year CIP, anticipated to be presented to the City Council for consideration in 2026. These adopted plans establish the policy direction and planning framework for advancing water and wastewater infrastructure investments necessary to maintain system reliability, regulatory compliance, and service levels.
The WSMP and SSMP identify significant capital investment needs and emphasize the importance of coordinated program development, project prioritization, and effective delivery strategies. While long-term capital funding strategies and project sequencing continue to be evaluated and refined, the City must address near-term implementation needs for active and upcoming water and sewer projects. These needs are further driven by staffing vacancies and limited in-house capacity for sustained program and project management of large-scale utility infrastructure efforts.
As part of the planning process, the City identified the need to develop a comprehensive implementation approach that advances planning-level projects into fully scoped, scheduled, and budgeted projects ready for design and construction. This approach includes establishing program management systems, delivery tools, and oversight processes to support coordinated execution across multiple projects and funding sources. Early phases of implementation are expected to focus on program setup, transition of active projects, procurement of supporting services, and initiation of project delivery activities, with expenditures increasing as projects progress into design and construction.
To support implementation of the WSMP and SSMP and ensure continuity of critical utility infrastructure projects, the City determined that external program management support is needed to supplement existing staff resources while internal capacity is strengthened.
The RFQ originally had ten tasks, which have been consolidated into five program delivery service functions, as shown below:
Tasks Description of Tasks (from RFQ)
1. Program Management and Oversight
2. Program Coordination and Communication
3. Bond Procurement
4. Project Development and Delivery Support
5. Procurement, Contracting, and Labor Compliance
Function 1 – Program
Administration
6. Quality Assurance, Risk Management, and
Documentation
1. Project Controls and Schedule Management
2. Bond Compliance and Financial Accountability
Function 2 – Program
Controls Management
3. Quality Assurance, Risk Management, and
Documentation
1. Project Development and Delivery Support
2. Design and Engineering Oversight
3. Procurement, Contracting, and Labor Compliance
Function 3 – Project
Delivery and
Engineering/Operations
Support 4. Quality Assurance, Risk Management, and
Documentation
5. Project Closeout and Turnover
1. Construction Management Coordination
2. Procurement, Contracting, and Labor Compliance
Function 4 –
Construction
Management Services
Oversight
3. Quality Assurance, Risk Management, and
Documentation
Function 5 – Outreach 1. Program Coordination and Communication
Engaging specialized consulting support will allow the City to advance priority water and sewer projects, maintain flexibility as funding decisions are finalized, and position the organization for a planned transition of program oversight back to City staff over time.
DISCUSSION
The City’s utility management plans identify a significant need for investment in water and sewer infrastructure over the next 20 years. As part of the 2025 Water Rate Study, the City Council acknowledged and approved the need to add engineering and program delivery resources to support implementation of the Water Capital Improvement Program (CIP). The Sewer CIP is undergoing a similar evaluation process to define long-term capital needs and the staffing resources required to deliver the program. Due to ongoing staffing vacancies and limited water and sewer engineering capacity, the City requires supplemental program management support to ensure continuity and timely delivery of critical utility projects.
In August 2025, the City issued a Request for Qualifications (RFQ) to retain a consulting firm specializing in utility-focused Capital Improvement Program development and delivery. The RFQ identified three primary service components necessary to support the City’s utility CIP: (1) Program Management, (2) Engineering Design Services, and (3) Construction Management and Inspection Services. Four firms submitted Statements of Qualifications in response to the RFQ. A five-member selection committee comprised of Public Works Department staff evaluated the submittals and selected three firms to advance to interviews:
1. Pakpour Consulting Group, Inc./Carollo Engineering
2. Harris & Associates, Inc.
3. CSG Consultants, Inc.
The proposal submitted by Pakpour Consulting Group, Inc. (PCG), in association with Carollo Engineering, focused on the Program Management and Engineering Design services (two of the three delivery components in the RFQ). Following the evaluation process, staff recommends awarding a program management contract to Pakpour Consulting Group, Inc., based on their demonstrated experience, qualifications, and references. During contract negotiations, PCG confirmed it will provide services under the Program Management component and will support the City in facilitating the procurement, coordination, and oversight of separate Engineering Services and Construction Management/Inspection Services.
Engineering design services will be presented to the City Council for consideration on a project-by-project basis, as specialized expertise is required.
PCG will be responsible for the delivery of the first five years of the City’s entire 20-year water and sewer CIP. They will provide the necessary staff to administer the program effectively, as well as provide project management personnel to oversee individual projects. The City will
retain flexibility to hire and train internal staff alongside PCG personnel, with the long-term goal of transitioning program and project management responsibilities to City staff. This transition may begin as early as the third year of the contract and is anticipated to be completed by the end of the contract term, with PCG providing supplemental support as needed, depending on resource availability, to meet the enterprise program delivery target.
There are five primary tasks performed under this contract, which are further defined in Attachment 1, the Professional Services Agreement’s Exhibit A, Scope of Services.
Function 1 – Program Administration
Program Administration establishes the foundation for the City’s Utilities Capital Improvement Program (CIP) through the creation of an integrated Program Management Office (PMO) and the development of a Program Management Plan (PMP). The Consultant provides overall leadership, coordination, and administration to develop the processes, tools, and organizational structure necessary for effective program delivery and long-term sustainability.
Additionally, it will involve the immediate management of the 2024 water bond and preparation work necessary to secure the 2026 water bond, as well as other funding and grant opportunities. This task will establish the Program Management Plan and standard operating procedures at the beginning of the program, with completion by December 2026, and will continue to provide day-to-day program-level management throughout the program's life.
Function 2 – Program Controls
This task ensures financial transparency, compliance with funding requirements, and alignment with City finance systems by establishing systems for managing scope, cost, schedule, risk, change, and performance. It includes developing dashboards, reports, and key performance metrics for oversight. This task also includes developing a baseline scope, schedule, and budget, which will refine and validate the resource needs for the program and each project. This scope will baseline the program and establish the Program Controls Tools and Systems at the program's inception, and will continue to provide day-to-day program-level controls and reporting services throughout the program's life. Under this scope, PCG will lead, track, measure, report, and manage the annual updates to the enterprise WSMP and SSMP CIPs, as well as the effort necessary to align program budgets and delivery goals with the City’s Mid-Term Budget Cycle and the City’s two-year budget cycle.
Function 3 – Project Delivery & Engineering/Operations Support This task will enable the continuation of implementing near-term water and sewer projects that are currently in the design and construction phase, as well as planning and implementation for upcoming projects not yet initiated. Services include managing design, procurement, design support, and construction management support services. This function aligns program management with engineering operations and project execution. PCG will assume the role of Project Manager for active projects in design to ensure the continued delivery. PCG will also convert the planning-level projects from the WSMP and SSMP into detailed project delivery packages for external delivery.
Function 4 – Construction Management Services Oversight This task will provide continued project management, oversight, and procurement and oversight coordination of construction management and inspection services during construction and closeout.It will ensure quality, compliance, and safety in the construction delivery process. The Consultant will coordinate and manage construction management and
inspection consultants, as well as the efforts of City staff working on utility projects. A Task Authorization for each project or group of projects will be issued under the contract.
Function 5 – Outreach Support
This function supports communication and stakeholder engagement throughout program development and project delivery to help maintain transparency and public confidence in program delivery. The PMP, developed in Scope 1, will define the outreach program. A future Task Authorization will be issued based on the defined scope of services, with clear and measurable deliverables outlined in the contract.
Contract Assurances and Cost Controls
To ensure PCG meets the enhanced delivery goals, Task Authorizationswill be established and issued under the contract, and will detail specific scope, budget, schedule, assumptions, and delivery milestones. This approach enables the City to review budgets, scope, schedule, and define milestones at each stage, ensuring the program remains on schedule to achieve the delivery goals outlined in the master plans. Each Task Authorization’s delivery milestones will be structured to withhold payment until each project meets the defined delivery milestones.
Billing is based on a not-to-exceed time-and-materials model, with payments made for each function’s defined delivery milestones.This provides the cost savings benefits to the City under the time-and-materials payment methodology, while ensuring a quality product and timely delivery by withholding payments until milestone deliverables and quality standards are met. In addition, the contract can be canceled at any time by the City if the Consultant does not meet delivery expectations.
Individual projects will be designed by a bench of consultants specializing in utility project design and construction management. These consultants will be procured and managed by PCG, but contracts will be held directly with the City. This structure ensures sufficient design capacity and specialized expertise to deliver projects. At the same time, the City retains the ability to exercise control over the contracts or transition from PCG with minimal interruptions to advancing project design and delivery work.
Phase I of the contract, with an estimated budget of $2.5 million, will extend through June 30, 2027, and will cover the first 18 months following contract execution. Phase I will focus on program startup and development, including preparation of the Program Management Plan; transition of existing active CIP projects by early January 2026; development of the master schedule; resource analysis; detailed project scoping; water bond procurement; CIP project updates; and procurement of design, construction management/inspection, and general engineering support services, as further outlined in Exhibit A, Scope of Services.
Phase II of the contract, with an estimated budget of $2.5 million, will begin July 1, 2027, and extend through June 30, 2030. Phase II will continue Scope 1 through Scope 5 services, with a planned reduction in Program and Project Management support as program development is completed and responsibilities are progressively transitioned back to City staff.
EQUITY AND SUSTAINABILITY
Approval of this item supports the City’s sustainability goals by facilitating implementation of long-term water and wastewater infrastructure planning and investment. The recommended contract supports the delivery of CIP projects that enhance system reliability, protect public health, and promote efficient management of water and wastewater resources.
OUTREACH
No direct public outreach was conducted for approval of this contract, as it is an administrative action related to program delivery support. The recommended contract includes outreach support services to assist the City with communication and stakeholder engagement during program development and project delivery. The consultant will support outreach, messaging, and coordination efforts to maintain transparency and public confidence as capital projects advance. The Program Management Plan will define the outreach approach, and future Task Authorizations will establish specific outreach activities and deliverables, as appropriate.
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, Strategy 3 - Identify funding and implement the recommendations from the Water Supply Alternative Study to resolve PFAS water quality issues, Strategy 8 - Update the Sewer System Master Plan to reflect current and future operations and identify system improvements and necessary maintenance.
FISCAL IMPACT
Funding for this agreement will be provided through the Water and Sewer Enterprise Funds, consistent with the adopted Water System Management Plan (WSMP) and Sewer System Management Plan (SSMP). Water program funding is supported by the recently approved water rates. Long-term sewer program funding is anticipated to be supported through adoption of the upcoming sewer rates.
This item includes budget amendments to transfer $150,000 from Fund 431 (Sewer CIP Fund) to Fund 430 (Sewer Operating Fund) and appropriate $150,000 to the Sewer Operating Fund Professional Services account (43041202-430101).
If the sewer rates are not approved, the scope and pacing of sewer-related services will be adjusted accordingly. There is sufficient fund balance available in the Sewer Enterprise Fund (Fund 431) to fully support the recommended FY 2025/26 allocation in the absence of a sewer rate increase.
Program management funding will be allocated between the Water and Sewer Enterprise Funds based on the scope of services identified in individual Task Authorizations, which will include a defined scope, budget, and schedule. Allocation amounts may vary by fiscal year depending on program workload, project timing, cost controls, and funding availability. A comprehensive resource assessment will be completed as part of program development and may result in future budget adjustments.
Funding for stormwater program support will be evaluated following completion of the Storm Water Master Plan and incorporated into future Task Authorizations, as appropriate.
Engineering design and construction management/inspection services will be procured separately and presented to the City Council for consideration on a project-by-project basis, with funding allocated through future Council actions.
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. Professional services agreement with Pakpour Consulting Group, Inc.
PROFESSIONAL SERVICES AGREEMENT
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into January 20, 2026, between the City of Pleasanton, a municipal corporation ("City"), and Pakpour Consulting Group, Inc., whose address is 6601 Owens Drive, Suite 230, Pleasanton, CA 94588, and telephone number is 925-224-7717, ("Consultant").
RECITALS
A. Consultant is qualified and experienced in providing utility program management and project management services for the purposes specified in this Agreement.
B. City finds it necessary and advisable to use the services of the Consultant for the purposes 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. Consultant shall provide Program and Project Management services for the City of Pleasanton as requested by Public Works Department, pursuant to individual Work Authorizations and further defined as Exhibit A, Scope of Services. This Agreement does not obligate the City to utilize Consultant exclusively for these services, and the City reserves the right to select other consultants for these services based on City need. City guarantees no level of work to be directed.
2. City Assistance. Except as set forth in Exhibit A, Scope of Services 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, Scope of Services according to the terms and conditions set forth in Exhibit A, Scope of Services which includes but not limited to an office space, access to a city computer or docking station, access to City network and software licenses, printing and scanning equipment, access to City staff and prompt review of deliverables.
3. Staff. Consultant shall assign Deryk Daquigan to serve as Program Manager, who may not be replaced without written consent of City.
4. Term. Time is of the essence. Consultant shall commence work no later than January 21, 2025. All work described in Exhibit A, Scope of Services, and as amended by each City-issued Task Authorization, shall be completed by June 30, 2030, or according to the schedule specified in each Task Authorization, whichever imposes the earlier completion date.
5. Compensation. For the services to be rendered, City shall pay Consultant on a Time and Material basis at authorized Milestones as further defined by City-issued Task Authorizations. q Exhibits A & B
q Certificate(s) of Insurance
q Professional Liability Insurance
q W-9
Hour rates shall be paid per Exhibit B, which is attached and incorporated to the extent consistent with this Agreement. Exhibit B hourly rates can be increased annually on July 1 starting in 2026 capped at San Francisco–Oakland–Hayward Consumer Price Index for, based on the published October index. Payment shall be made on a milestone basis upon receipt and approval of the Consultant's work and invoice, approval of which shall not be unreasonably withheld, conditioned or delayed. Total compensation for services and reimbursement for costs shall not exceed ten million ($10,000,000) unless the parties agree pursuant to Section 8, below.
a. Invoices submitted to City must contain a brief description of work performed, percentage of work completed, percentage of Agreement time used, percentage of Agreement amount expended and City reference number _____________ for the master contract. Each invoice shall be broken down by each approved Task Authorization and shall not exceed the limit of each Task Authorization. Payment shall be made within thirty (30) days of receipt and approval of the Consultant's invoice. If payment of any undisputed amount due and owing to Consultant is not made within sixty (60) days of submittal of the invoice for such amount, Consultant shall, upon seven (7) days written notice, be entitled to suspend its services until such payment is made.
b. Upon completion of work and acceptance by City for each Task Authorization, 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.
6. 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.
Services shall be performed by Consultant in accordance with generally accepted high professional practices and principles and in a manner consistent with a high level of care and skill ordinarily exercised under similar conditions by members of Consultant’s profession currently practicing in California. By delivery of completed work, Consultant certifies that the work conforms to the requirements of this Agreement and applicable federal, state and local laws and a high professional standard of care in California.
7. 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.
8. 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.
9. 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.
10. Labor Code/Prevailing Wages. To the extent applicable, Consultant shall comply with the requirements of the California Labor Code including but not limited to hours of labor, nondiscrimination, payroll records, apprentices, workers' compensation and payment of prevailing wages as determined by Director of the California Department of Industrial Relations. Consultant shall forfeit fifty dollars ($50.00) for each calendar day or portion thereof for each worker paid less than the stipulated prevailing rates for any public work done under the Agreement by it or by any subconsultant.
11. Termination of 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. Consultant may cancel this Agreement upon thirty (30) days’ written notice to the City and shall include in such notice the reasons for cancellation. In the event of termination, Consultant shall be entitled to compensation for services performed to the effective date of termination.
12. 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 subconsultants.
13. 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.
14. 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 additional insureds under the policy. 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. Automobile Liability Insurance. Automobile liability insurance with limits not less than $2,000,000 per person/per occurrence.
c. 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.
d. Professional Liability Insurance. Professional liability insurance in the amount of $2,000,000.
e. 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.
f. Waiver of Subrogation. The insurer agrees to waive all rights of subrogation against the City, its officers, employees and agents.
g. 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 requirements do not apply to Professional Liability.
h. Subconsultants. Consultant shall include all subconsultants, retained by Consultant, as insured under its polices or shall furnish separate certificates and endorsements for each subconsultant. All coverages for subconsultants shall be subject to all of the requirements stated in this Agreement, including but not limited naming additional insureds.
15. 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
Pakpour Consulting Group Inc. City Manager
6601 Owens Drive, Suite 230, City of Pleasanton
Pleasanton, CA 94588123 Main Street, P.O. Box 520
Pleasanton, CA 94566
16. 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.
17. Licenses, Certifications, Copyrights 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 represents that its work will not unlawfully infringe any other copyrighted work. Consultant covenants that it has obtained all certificates, licenses, permits, and the like required to perform the services under this Agreement.
18. 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.
19. Confidentiality. Consultant shall exercise reasonable precautions to prevent the unauthorized disclosure and use of City reports, information or conclusions.
20. 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 by the performance of Consultant’s services under this Agreement. If such an interest occurs, Consultant will immediately notify the City.
21. 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.
22. Governing Law. California law shall govern any legal action pursuant to this Agreement with venue in the applicable court or forum for Alameda County.
23. Exhibits. All exhibits referred to herein are attached hereto and are by this reference incorporated herein.
24. 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.
25. 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.
26. 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 is executed the date first above written.
CITY OF PLEASANTON CONSULTANT
_____________________________ By: __________________________ Gerry Beaudin, City Manager Signature
__________________________
Print name
ATTEST:
_____________________________
Jocelyn Kwong, City Clerk Title: __________________________
Approved as to form:
_____________________________ By: __________________________ Daniel G. Sodergren, City Attorney Signature
__________________________
Print name
Title: __________________________
[If Consultant is a corporation, signatures must comply with California Corporations Code §313]
Rev. 11/23
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit A – Scope of Services
Exhibit A – Scope of Services A-1 of 16
Exhibit A – Scope of Services
Table of Contents
Purpose ................................................................................................................................... 1 Function 1 – Program Administration ...................................................................................... 2 Function 2 – Program Controls ................................................................................................. 3 Function 3 – Project Delivery & Engineering/Operations Support ............................................ 5 Function 4 – Construction Management Services Oversight ................................................... 10 Scope 5 – Outreach Support .................................................................................................. 14 Phases of Delivery ................................................................................................................. 15
Purpose
The purpose of this document is to generalize the scope of the CONSULTANT to provide Program Management Services to manage the plan ning, monitoring, designing, procure ment, construction management, construction, and closeout of the City of Pleasanton’s (City) Utilities CIP programs and projects. Projects will include water, sewer, and stormwater system upgrades and replacement of existing infrastructure and other essential utility infrastructure investments.
Detailed scopes of services , schedule, fee, payment milestones and methodology, assumptions, and deliverables shall be defined with each Task Authorization, as issued by the City. Throughout the delivery of the program , it is anticipated that five main functions will be utilized, which are described within this exhibit.
Assumptions:
1. Task Authorizations will be issued under this Agreement and will further detail the functions described in this exhibit.
2. Each Task Authorization will define the scope, schedule, fee, payment milestones and methodology, assumptions, and deliverables for each of the five main functions described below.
3. Task Authorizations are anticipated to be issued to initiate each of the Phases of Delivery, described at the end of this exhibit.
4. Since programs are dynamic and service needs may change each fiscal year, Phase 2 related Task Authorizations are anticipated to be developed by the City and CONSULTANT prior to the start of each Fiscal Year and executed at the start of each Fiscal Year. These annual Task Authorizations will represent the scope, schedule, fee, payment milestone s and methodology, assumptions, and deliverables associated with the upcoming Fiscal Year.
5. Each Task Authorization will define delivery milestones to support the City’s compensation approach of issuing payments on a milestone basis.
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit A – Scope of Services
Exhibit A – Scope of Services A-2 of 16
General descriptions of the five program management functions are described below:
Function 1 – Program Administration
Generally, this Program Administration function may include the following:
The CONSULTANT will provide overall leadership, coordination, and administration to establish and manage the program, systems, and tools to deliver the City’s Utilities Capital Improvement Program.
CONSULTANT, under the guidance of the City, will be responsible for day-to-day management of the Program Management Office (PMO) team, including resource management, work assignments, and performance monitoring. The CONSULTANT will be responsible for and facilitate establishment of the PMO, chartering of the PMO team , and the development and usage of a Program Management Plan (PMP) to maintain and monitor the quality of executing management procedures to ensure project consistency with City design standards, Water and Sewer Master Plans, asset management objectives, and ensure alignment with bond requirements and City priorities. The PMP will provide the Program team with the policies, processes, procedures, and standards necessary to implement the Program effectively and consistently. It will describe roles and responsibilities of the integrated Program team, project managers, design consultants, construction management and inspection consultants, contractors, and other stakeholders, and define Program governance strategies. These PMP controls and processes provide a disciplined management approach to analyzing and adjudicating competing operational requirements, communicating a common plan, and enabling overall program schedule flow. The PMP will also provide tools, templates, and documentation to support City staff training and long-term program continuity.
The CONSULTANT will be responsible for and manage procurement of professional services and resources, such as design engineering services , construction management and inspection services, and other potential technical services required to deliver the program and support projects. The agreements associated with these professional services will be executed between the City and professional service provider and managed by the CONSULTANT . Program Management staff will rely on CONSULTANT staff resources , supporting the other Functions defined in this exhibit, to support the procurement, selection, and assignment of these professional services to the projects.
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit A – Scope of Services
Exhibit A – Scope of Services A-3 of 16
The CONSULTANT will evaluate planned projects and prepare project delivery method recommendations. The CONSULTANT will coordinate with the City to develop a scope of service, schedule, and resource plan to deliver projects.
The CONSULTANT will develop and implement strategies to efficiently manage and coordinate shared resources such as personnel, equipment, budget, and technology across all projects within the program to establish consistency, avoid resource conflicts, and achieve overall program objectives tailored to the need of Utility Operations and Public Works’ objectives in project delivery efficiencies and commitments . The CONSULTANT will facilitate coordination with PMO and City stakeholders, inclusive of Engineering, Utility Operations, Utility Planning, and Public Works leadership. The Program Manager will participate in interdepartmental coordination meetings and facilitate alignment with streets, parks, stormwater, and transportation projects to establish best practices to avoid conflicts, identify synergies, and optimize construction sequencing. The CONSULTANT will support the City in updating and managing the Water System Management Plan (WSMP) and Sewer System Management Plan (SSMP) documents.
The CONSULTANT will attend, lead, and facilitate City meetings and assist with facilitating the preparation of briefing materials for the Assistant Director, Public Works Director, and/or City Council, along with facilitate preparation of materials or presentations to assist City staff in communicating the progress in developing the program to elected officials and the public. The CONSULTANT will support community engagement and public communication efforts.
In collaboration with the City, CONSULTANT will provide overall coordination of projects.
Responsibilities will include coordination with all project managers, identifying project managers for upcoming projects , coordination and support to make key decisions related to project coordination, change, and risk, manage, facilitate, and participate on Change Control Board meetings, ensure that risk is being managed and reported, ensure that all project managers are using proper tools, updating the schedule, holding consultants and contractors accountable, and managing cost and schedule in accordance with Program Controls procedures . The C hange Control Board will comprise of the Public Works Director (Chair), Assistant Director of Engineering/City Engineer, Assistant Director of Utilities and Environmental Services, Utility Planning Managers and the consulting Program Manager.
The CONSULTANT will support the City’s management of bond issuances and any loan and grant pursuits to support the funding of the programs and projects.
Function 2 – Program Controls
Generally, this Program Controls function may include the following:
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit A – Scope of Services
Exhibit A – Scope of Services A-4 of 16
CONSULTANT will coordinate the establishment and management of Program Controls systems and services, which is the management and monitoring of scope, schedule, cost, risk, change, performance, and reporting in a coordinated way to support efficient Program delivery.
The CONSULTANT will be responsible for ensuring that all program expenditures are bond-eligible and compliant with applicable tax -exempt financing regulations. This includes establishing a financial reporting and tracking system that supports transparency, fiscal responsibility, and audit readiness. The CONSULTANT will assist in developing a program funding strategy and identifying grant and loan opportunities working within the funding limits established through approved rates. The CONSULTANT will prepare regular budget reports for City Council, public oversight committees, and bond administrators, detailing financial performance and program expenditures. Close coordination with City finance staff, legal counsel, and independent auditors will be required to maintain compliance and address any regulatory or financial issues that may arise throughout the duration of the program.
The CONSULTANT will develop a system of integrated tools and processes to support cost, schedule, risk and change management, along with project tracking, reporting, and documentation required for City fund management, audits, bond issuers, grant/finance providers, and future capital planning in alignment with the Water and Sewer Management Plans.
This system contains the baseline information against which Program progress is monitored and reported, allowing Program management to assess the information and take appropriate action.
The CONSULTANT will establish and maintain a Master Program Schedule, integrating timelines from all projects, and alignment with regulatory requirements and City objectives. The master schedule will support the identification of resources required to deliver the program and projects.
The CONSULTANT will support project prioritization and sequencing based on WSMP , SSMP , regulatory requirements, and operational needs, and develop an implementation roadmap. The CONSULTANT will develop program controls systems that include monitoring criti cal path activities and managing risks to ensure coordination with construction windows and funding/financing deadlines. This program controls systems will also include the development of Program progress report templates, and the development of web- based Program Dashboard to access program status information.
The CONSULTANT will oversee all schedule and cost components of the Program. The CONSULTANT will establish a standard program work breakdown structure (WBS) for use across all Program projects and establish a set of critical path schedules for the overall Program. The critical path schedules will allow the Program team to monitor performance using earned value (EV) metrics, schedule analysis, and cash flow analysis.
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit A – Scope of Services
Exhibit A – Scope of Services A-5 of 16
The CONSULTANT will establish and manage Performance Dashboards, potentially hosted on a Microsoft SharePoint site, which will serve as the internal department status reporting for the Program. The Performance Dashboard will be able to provide information to the Program Team to generate both set-frequency (e.g., month, quarter, annual) reports as well as ad-hoc dynamic reports. The CONSULTANT will provide monthly or ad-hoc program/project performance updates to the City, which will identify highlights, risks, changes, any issues with schedule and budget, and recovery recommendations.
The CONSULTANT will establish protocols to manage and administer a regular cycle for update, analysis, and reporting along with ongoing development of project schedules to a standard level of detail to include phases, major activities and milestones, and key deliverables; critical path schedule analysis; and integration of designers’ and contractors’ schedules. The CONSULTANT will establish protocols to promote coordination between program managers, project managers, and City finance staff to ensure information is updated.
The CONSULTANT will establish best management practices for project managers to monitor project costs from project initiation through closeout, so that any necessary adjustments can be made.
Function 3 – Project Delivery & Engineering/Operations
Support
Phase 1’s scope of services associated with this function will include delivery of immediate projects that are currently active in design or construction, before Phase 1’s Program Management and Controls Systems are fully developed. For Phase 2, the CONSULTANT’S services associated with this function will operate as defined by the Program Management and Controls Systems developed in Phase 1. Generally, this Project Delivery & Engineering/Operations Support function may include the following:
CONSULTANT will provide project managers who will be responsible for efficient delivery of projects by managing consultants, contractors, cost, schedule, quality, risks, and change, and for communication to the Program Management and City. Depending on City staff availability, City staff may take on the role of a project manager. It is the responsibility of the project managers to ensure risk and change are responsibly managed and reported. Project Managers will also provide negotiation support to develop contracts that are acceptable to the City for all engineering, construction, and construction management contracts. Project Managers will work with Program Management and engineering consultants to identify permits, permit requirements, and timeline so that a permitting schedule can be developed for each project.
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit A – Scope of Services
Exhibit A – Scope of Services A-6 of 16
The Consultant’s subconsultants may provide engineering design services under a separate Design Professional Services Agreement with the City. The CONSULTANT and subconsultants providing Project Management services for a specific project are precluded from providing engineering design services for the same project.
Primary Project Management and delivery responsibilities during the design phase of the project are detailed below:
• Scope, budget, and schedule management and reporting
o Review, manage, and monitor c onsultant scope of work , schedule, and budget; monitor and track progress against scope of work, schedule, and budget; and report progress monthly.
o Coordinate with the Program Management and City to report the latest project cost and schedule information.
o Lead, and coordinate with Program Management on, any project loan/grant applications and bond issuances , associated compliance documents , and any reporting requirements.
o Tracking of regulatory submittals, permits (CEQA, encroachment, NPDES), and environmental compliance documentation, prepared by other consultants. o Coordinate with City and Program Management staff to review operational needs to support the develop ment of CIP scope, schedule, and budgets, and prioritize the CIP projects.
o Ensure compliance with the City standards, WSMP , SSMP , permitting, and State/Federal requirements.
• Risk management
o Identify, develop, maintain, and update project-level risk register. o Develop risk mitigation strategies.
o Coordinate with Program Management to update overall program risk register. • Change management
o Provide oversight and communication of project decision/change log. o Negotiate and process consultant amendment and contractor change order requests.
o Control scope by identifying and managing changes during design. o Development of materials for and presentation of Change Request Forms to Change Control Board.
• Procurement, task order, and contract management
o Administer the procurement and management of RFP/RFQs, selection process, Consultant Agreements, Task Authorizations, and Purchase Orders. o Review and negotiation of consultant proposed scope, schedule, and fee.
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit A – Scope of Services
Exhibit A – Scope of Services A-7 of 16
o Preparation of City Council Staff Reports for Program Management and City staff review.
o Administer and manage consultant (professional service) agreements and task authorizations.
o Prepare contract amendments and change orders.
o Manage and approve Consultant invoices/payments.
o Resolution of Consultant contract issues/disputes.
o Lead and coordinate construction contract bid advertisements, bid openings, bid reviews, selection, and construction contract award recommendations. • Team leadership and management
o Coordinate project involvement of Program Management and City staff as appropriate.
o Coordination and oversight of consultant(s) or other third parties during all phases. o Monthly reporting (e.g., progress, schedule, budget, issues, etc.) to Program Management and City.
o Coordinate with other City projects and operations, as needed. • Quality Management
o Verify consultants implement quality control processes. o Review design consultant deliverables and providing the primary review on behalf of the City.
o Coordinate and facilitate reviews and workshops with technical and operational staff for constructability, technical adequacy , conformance with City standards, and operational continuity.
o Coordinate input/reviews by Program and City staff and collect all comments. o Deliver a comprehensive list of all review comments to design consultants. o Confirm consultants address review comments in subsequent deliverables to confirm a comprehensive response.
o Review and verify that Consultant deliverables (e.g., design deliverables, bid packages, permit applications, etc.) meet scope and contract requirements. • Coordination and management of stakeholder engagement o Coordinate and facilitate City Staff/O&M review workshops/meetings. o Coordinate and facilitate engagement with utility companies, such as PG&E, Zone 7, Comcast, AT&T, etc.
o Coordinate and facilitate engagement with other Public Works Divisions or City Departments.
o Coordinate and support project-related public outreach activities. o Coordinate and participate in easement negotiations with property owners, if applicable.
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit A – Scope of Services
Exhibit A – Scope of Services A-8 of 16
o Coordinate and support public, Commission, and City Council meetings. o Content development for community meeting presentations and related materials (e.g., posters, handouts, etc.); attend community meetings. o Provide and/or coordinate engineering support to City operations staff. o Support engineering consultant engagement with permitting agencies. • Coordination and management of communications and meetings o Coordinate and facilitate regular Consultant coordination/project status meetings. o Inform project team of City and Program activities and decisions. o Coordinate and facilitate responses to information requests from all parties. o Coordinate with Program Management Team and City.
o Preparation of responses to public inquiries about the project(s). o Coordination of project outreach activities and deliverables. • Document and records management
o Project-level document management.
o Consultant deliverable management: quality assurance, distribution, and storage. o Submit project close-out documentation to City.
• Technical Support
o Provide technical reviews and comment on consultant deliverables, providing the primary review on behalf of the City.
o Engineering support to facilitate consistency in design. o Coordinate with other City consultants (e.g., hydraulic modelers) for support, as needed.
o Technical guidance to City on projects, activities, and planning. o Support engineering consultants with project management software/application (e.g., Virtual Project Manager) project setup, user administration, training, and auditing of appropriate usage.
During the construction phase of the project, the project's construction management (CM) team takes over the primary responsibilities for construction delivery.
The Project Management Team responsibilities during the construction phase of the project , primarily in a supporting role to CM, are as follows:
• Internal and External Coordination
o Serve as point of contact with the Program Management Team, CM team, and City engineering and operations staff.
o Support CM team with coordination with Program and project team regarding progress and issues.
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit A – Scope of Services
Exhibit A – Scope of Services A-9 of 16
o Support CM team with coordination with City operations staff and other City departments for existing facility shutdowns and/or tie ins. o Support CM team with the preparation of responses to public inquiries about the project(s).
o Inform project team of City and Program activities and decisions. o Coordinate and facilitate responses to information requests from all parties. o Coordinate Labor Compliance support and reviews.
• Meetings
o Lead pre -bid meeting with design consultant and construction management consultant.
o Support preconstruction meetings lead by the CM team, which also represents the official project hand-off from PM to CM.
o Participate in monthly project progress meetings with Program Management. o Support Program Management and CM team with regular project meetings , including schedule updates, risk management, progress payment, change requests, and public outreach.
• Scope, Cost, Schedule Management and Reporting
o Support CM team with review, approval, and maintenance of progress payment reviews and approvals; maintain contract financial data and summaries. o Support CM team with baseline construction schedule review and acceptance; monthly schedule update reviews; review and approval of schedule changes and schedule recovery plans.
o Support Program Management and CM team with monthly reporting, and loan/grant/bond reporting, if applicable.
• Change Management
o Support CM team to prepare and issue Field Orders; prepare and issue Requests for Proposals; review Change Order Requests for entitlement and merit; review and negotiate Change Order pricing; review and analyze change order schedule impacts.
o Support CM team with tracking and management of all Change Orders; coordinate with the Program Management and/or Change Control Board to review and approve change requests.
• Quality Management
o Assist CM team in adjudicating quality issues.
o Coordinate issues with Program Management and City staff. o Support coordination with engineering consultants and CM team. o Support coordination of O&M manual reviews.
• Dispute Resolution
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit A – Scope of Services
Exhibit A – Scope of Services A-10 of 16
o Lead review of Conformed Bid Documents before Award.
o Support CM team to review issues for entitlement and merit. o Support CM team to prepare responses to correspondence. o Support CM team to conduct resolution meetings and negotiations. • Testing, Startup, and Commissioning
o Participate in startup and commissioning planning/progress meetings. o Support CM team’s coordination of review and acceptance of Testing, Commissioning, and Startup Plans.
o Support CM team’s review and monitoring of startup and commissioning schedule activities.
o Support CM team’s coordination of training activities and schedule. • Project Close-out
o Support CM team in conducting Substantial and Final Completion Inspections. o Support CM team in recommendation of final acceptance of work by City. o Prepare and submit a project close out memo (summary of actual costs, and project highlights, challenges, lessons learned , performance evaluation, and recommendations for future capital planning) to Program Management and City. o Coordinate submittal of as -built drawings to City and City’s Hydraulic Modeling consultant for updates to City's GIS and hydraulic model. o Complete project close-out procedures as defined in the PMP .
Function 4 – Construction Management Services Oversight Phase 1’s scope of services associated with this function will include delivery of immediate projects that are currently active in design or construction, before Phase 1’s Program Management and Controls Systems are fully developed. For Phase 2, the CONSULTANT’S services associated with this function will operate as defined by the Program Management and Controls Systems developed in Phase 1. Generally, this Construction Management Coordination function may include the following.
CONSULTANT will provide Program -level construction management (CM) oversight, leadership, and staff management. CONSULTANT will coordinate with Program Management and oversee the procurement, management, resource assignment , and implementation of City contracts associated with CM, resident engineer, and inspection services. For each project, a CM team will be established, inclusive of a combination of construction manager, resident engineer, and/or inspector(s). Depending on City staff availability, a CM te am may consist of City staff and/or consultant staff. CONSULTANT will coordinate with the CM team, project managers, City
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit A – Scope of Services
Exhibit A – Scope of Services A-11 of 16
engineering and operations staff, contractors, and construction support staff. CONSULTANT may provide their own CM, resident engineer, and inspection services and staff.
CONSULTANT will provide support to the City, Program Management, Project Managers , engineering design consultants, Construction Managers, resident engineers, and inspectors with advice on methods of construction, time to construct, cost of construction, sequence of operations, etc. to confirm that program management and project designs are configured to enable efficient construction and operational turnover during commissioning, and the avoidance of in-built construction problems.
CONSULTANT will orient construction management, resident engineer, and inspection staff with the PMP; program system, tools, and requirements ; and ensure compliance . CONSULTANT will monitor CM team performance, support identification of potential program/project risks , and support resolution of major project issues. CONSULTANT will communicate any City and/or Program requirements and communications to project -level CM team staff. CONSULTANT may support CM team with change management oversight including review of contractor change proposals, Change Request Forms, and Change Orders.
CONSULTANT will support CM teams with software/application (e.g., Virtual Project Manager or Procore) project setup, user administration, training, and auditing of appropriate usage.
CONSULTANT will manage City contracts which may include construction management and inspection services, labor compliance services, specialty inspection services, CM software, etc. , and coordinate compliance with California prevailing wage laws, DIR registration verification, certified payroll compliance, and coordinate responses to wage claims and audits.
The CONSULTANT will manage and oversee consultants providing CM , resident engineer, and inspection services for projects during the construction phase . The CM, resident engineer, and inspection services consultants overseen by the CONSULTANT are anticipated to deliver the following potential activities:
• Internal and External Coordination
o Coordination with Contractor, Project Manager, City, O&M, and Design Engineer. o Coordination with agencies and utilities, such as Caltrans, Zone 7, PG&E, etc. o Review Contractor Request for Information (RFI) and submittals and coordinate with Design Engineer, Project Manager, or City O&M for resolution and response; maintain RFI and submittal logs.
o Review and coordinate system decommissioning, outage or bypassing requests with Contractor and City O&M staff.
o Preparation of responses to public inquiries about the project(s). o Labor Compliance reviews.
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit A – Scope of Services
Exhibit A – Scope of Services A-12 of 16
o Preconstruction constructability reviews during design. o Support project manager with construction contract bid advertisements, bid openings, bid reviews, selection, and construction contract award recommendations.
• Meetings
o Support pre-bid meeting with project manager and design consultant. o Weekly progress meetings and associated meeting reports. o Lead preconstruction meetings, which also represents the official project hand-off from PM to CM.
o Coordinate with Project Manager during regular project meetings to address schedule updates, risk management, progress payment, change requests , and public outreach.
• Scope, Cost, Schedule Management and Reporting
o Perform review of Contractor baseline and monthly schedule updates; review and approval of schedule changes and schedule recovery plans. o Review Contractor monthly invoices and recommend payment requests; maintain contract financial data and summaries.
o Maintain project documents and utilize document/project management software. o Support Project Manager with monthly reporting, and loan/grant/bond reporting, if applicable.
o Ensure work is sequenced and constructed effectively to avoid schedule delays and claims.
o Prepare cash flow reports based on the contractor(s) schedules and plot contractor(s) monthly progress.
o Prepare Weekly Statement of Working Days Reports.
• Change Management
o Prepare and issue Field Orders; prepare and issue Requests for Proposals; review Change Order Requests for entitlement and merit; review and negotiate Change Order pricing; review and analyze change order schedule impacts. o Conduct Time Impact Analysis reviews, if necessary.
o Review and evaluate potential change orders and coordinate with the Design Engineer for their detailed review of cost estimates/quotations or perform independent cost estimate.
o Processing of design change notices.
o Recommend course of action for contract change order requests. o Tracking and management of all Change Orders; coordinate with the Project Manager, Program Management , and/or Change Control Board to review and approve change requests.
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit A – Scope of Services
Exhibit A – Scope of Services A-13 of 16
o Coordinate weekly or as -needed meetings to review status and/or negotiate change requests submitted by the Contractor.
o Prepare Contract Change Orders for City/Contractor signature and processing. • Quality Management
o Adjudicate quality issues.
o Coordinate construction issues with Project Manager and City staff. o Review of Contractor's performance for contract compliance. o Review Contractor submittals for compliance with contract documents and coordinate with Design Engineer for review and response. o Provide Contractor with acceptability or deficiencies in work and required actions for contract compliance.
o Inspect and observe Contractor's work and site conditions. o Maintain daily inspection reports with supporting photographs. o Keep daily records of inspection, labor, equipment, and material provided by the contractor. Provide daily reports, when applicable. Provide a monthly summary of all construction activities.
o Review of material and equipment delivery.
o Review of Contractor's compliance with health and safety standards. o Review contractor submitted site safety or property damage incidents and follow up with the Contractor as needed related to these submissions. o Monthly monitoring of Contractor's record/as -built documents in coordination with the Design Engineer as appropriate.
o Coordinate with Design Engineer for site inspections to determine if facilities are complete and in compliance with the contract documents. o Develop punch lists in collaboration with the Project Manager, City O&M staff, and the Design Engineer.
o Utilize City’s contracted specialty inspection services or retain the services, subject to City’s approval, to provide for specialty inspection by the Engineer as required in the construction contracts and other specialty inspection necessary to monitor the contractor(s) quality control plan.
o Utilize City’s contracted testing laboratory or r etain qualified testing laboratory, subject to City’s approval, to provide for testing by the Engineer as required in the construction contracts and other testing necessary to monitor the contractor(s) quality control plan.
• Dispute Resolution
o Review, gather, and evaluate information for resolution of potential claims. o Review issues for entitlement and merit.
o Prepare responses to correspondence.
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit A – Scope of Services
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o Conduct resolution meetings and negotiations.
• Testing, Startup, and Commissioning
o Verification of all O&M Manual submittals and facilitation of transmittal of all manuals to City O&M staff.
o Coordinate with Project Manager and City O&M staff for review of Contractor's O&M, training, and SCADA-related submittals prior to providing approval. Prepare and distribute any comments provided by the City O&M staff to the Contractor at their request.
o Participate in and lead meetings related to facility startup and commissioning activities.
o Coordination of review and acceptance of Testing, Commissioning, and Startup Plans.
o Review and monitoring of startup and commissioning schedule activities. o Coordination of training activities and schedule.
• Project Close-out
o Coordination of final submittal and obtain/review complete record drawings , certifications, warranties, and O&M manuals from Contractor, and delivery to Project Manager and City staff.
o Finalize all contract bid items.
o Finalize all claims and change orders.
o Finalize and resolve all punch list items.
o Recommend retention release to Contractor and final acceptance of work, if appropriate.
o Conduct Substantial and Final Completion Inspections. o Preparation of partial and substantial completion certificate. o Support Project Manager in prepar ing a project close out memo (summary of actual costs, and project highlights, challenges, lessons learned, performance evaluation, and recommendations for future capital planning ) to Program Management and City.
o Support Project Manager in completing project close-out procedures as defined in the PMP .
Scope 5 – Outreach Support
Generally, this Outreach Support task may include the following:
The CONSULTANT will support the City with public outreach efforts associated with each of the three Phases of the program.
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit A – Scope of Services
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The CONSULTANT will coordinate with the City Public Works Department staff and City Public Information Officer to establish the Program’s approach to working with the external Program stakeholders, establish a list of stakeholders, outline key tools that will be used to manage stakeholder communication, project outreach procedures, and establish the Program brand and core messages.
The CONSULTANT will coordinate with the City Public Works Department staff and City Public Information Officer to identify a strategy, tools, and resources to develop a Program/Project website or webpage(s).
Phases of Delivery
The scope of services are anticipated to be delivered in two phases:
Phase 1 – Program Management and Controls Systems Evaluation & Development with Immediate Project Delivery Services
For Phase 1 , the CONSULTANT and City will coordinate to establish a Program, inclusive of chartering the program; developing a multiple-chapter Program Management Plan with policies, standards operating procedures and templates; establishing Program Control systems a nd tools to manage cost, schedule, risk, change, and documents; a master baseline scope and schedule of all Program projects with refined resource requirements; procurement of professional services required to support program delivery (e.g., des ign engineers, CM and inspection ser vices, etc.); bond issuance and grant/loan application support and management; immediate project management services of active projects; construction management coordination; and outreach support services.
The long-term goal in developing these Program systems and tools is for the City to potentially take over the program management and project delivery services when the City can establish in- house staff resources to maintain a similar level of service. The detailed functions, deliverables, and assumptions associated with the scope of services for this phase shall be included in a separate Task Authorization(s).
Phase 2 – Program Management and Project Delivery Services For Phase 2, the CONSULTANT’S services will include the comprehensive scope of Program Management and Project Delivery Services and will operate as defined by the Program Management and Controls Systems developed in Phase 1. The CONSULTANT will provide progress reports and budget tracking updates to ensure transparency and accountability. These reports will be used to assess milestone achievement and inform payment decisions. The detailed
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit A – Scope of Services
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functions, deliverables, and assumptions associated with the scope of services for this phase shall be included in a separate Task Authorization(s).
During Phase 2, the level of effort and resources to deliver the five functions will vary each fiscal year. Prior to the start of the upcoming fiscal year, the City and CONSULTANT will coordinate to develop a Task Authorization with specific Scope of Services, aligning with the five functions, and an associated fee for the upcoming fiscal year, both of which will be based on the resource needs.
B-1 of 3
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit B - Hourly Rates
Exhibit B - Hourly Rates
Billing Rates | July 1, 2025 to June 30, 2026
Position Hourly Rate
Principal Engineer $260
Associate Principal $245
Senior Engineer $225
Senior Designer $214
Associate Engineer $201
Associate Designer $191
Project Engineer $184
Project Designer $174
Assistant Engineer $165
Assistant Designer $158
Engineering Technician $128
Administrative Assistant $90
Public Works Inspector* $178
*Subject to Prevailing Wage
A 10% markup will be added to subconsultants. A 1.3 multiplier will be applied to the hourly rate of inspectors working more than 8 hours per day and/or 40 hours per week. The above fee schedule is inclusive of direct expenses.
B-2 of 3
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit B - Hourly Rates
Exhibit B - Hourly Rates
Billing Rates | January 1, 2025 to December 31, 2025
Billing Classification Hourly Rate
Engineers/Scientists
Senior Project Manager $364
Project Manager $364
Senior Design Manager $364
Senior Program Manager $364
Program Manager $304
Principal Professional $364
Senior Service Delivery Lead $364
Service Delivery Lead $359
Supervising Professional $361
Design Manager II $366
Design Manager I $275
Senior Professional $282
Lead Professional $265
Professional $233
Staff Professional $226
Engineering Intern $141
Supervising Analyst $284
Senior Analyst $263
Lead Analyst $236
Staff Analyst $217
Technicians
Supervising BIM Designer $313
Senior BIM Designer $265
Lead BIM Designer $260
BIM Designer 3 $233
BIM Designer 2 $225
BIM Designer 1 $221
Supervising Designer $245
Lead Designer $237
Senior Designer $210
Designer $179
Staff Designer $181
Senior Drafter $175
CAD Drafter $161
B-3 of 3
Utilities Capital Improvement Program (CIP) Program Management Services Exhibit B - Hourly Rates
Exhibit B - Hourly Rates
Billing Classification Hourly Rate
Construction Management and Operations
Senior Construction Manager $364
Principal Construction Manager $347
Construction Manager $337
Supervising Cost Estimator $350
Lead Cost Estimator $233
Resident Project Representative $305
Lead Inspector $259
Inspector $243
Resident Engineer $223
Principal Operations Specialist $335
Operations Lead $364
Operations Specialist $305
Field Professional $238
Support Staff
Senior Project Services Administrator $254
Project Services Administrator $202
Lead Document Processor $198
Document Processor II $172
Document Processor I $157
Administrative Assistant $141
Project Equipment Communication Expense (PECE) Per DL Hour $16 Other Direct Expenses
Travel and Subsistence Cost + 10%
Mileage $0.70 per mile
Subconsultant Cost + 10%
Other Direct Cost Cost + 10%
Expert Witness Hourly Rate x 2.0
This fee schedule is subject to annual revisions due to labor adjustments.
Item #13
CITY COUNCIL AGENDA REPORT
January 20, 2026
Finance
TITLE: ACCEPT THE AUDITED FINANCIAL STATEMENTS OF THE CITY OF
PLEASANTON INCLUDING THE ANNUAL COMPREHENSIVE FINANCIAL
REPORT AND OTHER RELATED AUDIT REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025
SUMMARY
Each year, the City is required to prepare audited financial statements, including the Annual Comprehensive Financial Report (ACFR), which is the overall financial report for the entire City organization, and several related reports, which the City Council reviews and formally accepts.
The reports are attached to the Agenda Report.
The City received an unmodified opinion from the independent auditor, the Pun Group, on the financial statements. The Pun Group’s opinion is the highest level of audit approval. It means that the financial statements are presented fairly, in all material respects, in accordance with the Generally Accepted Accounting Principles (GAAP).
RECOMMENDATION
AUDIT COMMITTEE RECOMMENDATION
The Audit Committee (Mayor Balch and Councilmember Eicher) reviewed these reports on January 8, 2026. Their comments and recommendations will be reported to the City Council at the January 20, 2026, meeting. A representative from The Pun Group attended the meeting and presented the audit process and results to the committee. There are no findings/recommendations resulting from the FY 2024/25 audit.
RECOMMENDATION
Accept the audited financial statements, including the Annual Comprehensive Financial Report (ACFR) and the related audit reports for FY 2024/25.
BACKGROUND
The City's independent auditors have completed the audit of the City's financial transactions and internal controls for the fiscal year (FY) 2024/25. The following reports were prepared by the City and audited by The Pun Group:
• Annual Comprehensive Financial Report (ACFR) is the overall financial report for the entire City organization and provides information about the financial results of operations and numerous required disclosures. This financial report is prepared by the City and audited by the independent auditors to provide reasonable assurance that the financial statements are fairly presented in accordance with generally accepted accounting principles (GAAP) in the United States. This report contains the Independent Auditors’ Report, prepared by the auditors based on their examination of the City’s financial transactions for the fiscal year ending June 30, 2025.
• Alameda County Transportation Commission Measure B Program Independent Auditors’ Reports and Financial Statements is required by the Alameda County Transportation Commission (ACTC). Measure B funds, the one-half cent sales tax approved by Alameda County voters in 1986 and in 2000, provides funding for City transportation-related projects. Copies of the report are submitted to ACTC to show that the City is in compliance with the requirements governing expenditures of Measure B funds for the year ending June 30, 2025.
• Alameda County Transportation Commission Measure BB Program Independent Auditors’ Reports and Financial Statements is required by the Alameda County Transportation Commission (ACTC). Measure BB funds, an additional one-half cent sales tax approved by Alameda County voters in November 2014, provides funding for City transportation-related projects. Copies of the report are submitted to ACTC to show that the City is in compliance with the requirements governing expenditures of Measure BB funds for the year ending June 30, 2025.
• Alameda County Transportation Commission Measure F Program Independent Auditors’ Reports and Financial Statements is required by the Alameda County Transportation Commission (ACTC). Under Measure F, approved by Alameda County voters in November 2010, the City receives a portion of the proceeds of the $10 per year vehicle registration fee for funding transportation-related projects. Copies of the report are submitted to ACTC to show that the City is in compliance with the requirements governing expenditures of Measure F funds for the year ending June 30, 2025.
• The Single Audit Report is a report required by the U.S. federal government. This report contains a schedule of Federal Financial Assistance that summarizes federal grant activity in the City of Pleasanton for the fiscal year. A non-federal entity with federal expenditures in excess of $750,000 is required to have a single audit conducted in accordance with Uniform Guidance, which includes an audit of both the financial statements and the federal awards. The intent is to ensure the City is properly using its federal funds and is in compliance with applicable funding requirements. • The Independent Auditors’ Report on Internal Control, included in the above Single Audit Report, provides a review of the City’s internal controls, based on the audits of the ACFR, federal grants, and Measures B, BB and F financial reports. If the auditor identifies deficiencies, they make recommendations to improve internal controls. • The Independent Accountants’ Report on Applying Agreed-Upon Procedures to Appropriations Limit Schedule is required by the State of California in Section 1.5 of Article XIII-B of the California Constitution, which limits the amount that governmental agencies can annually appropriate from proceeds of taxes. Staff annually updates its calculation, factoring in population and inflation changes, to determine the new appropriation limit. The City Council approved the appropriation limit for FY 2025/26 in June 2025.
• The Auditors’ Communications Letter, addressed to the City, communicates their responsibilities in performing the audit and if any significant findings and issues are detected during the course of the audit. The report references the City of Pleasanton Management Representation Letter, addressed to the auditors, communicating management’s opinion of the City’s financial condition, internal controls, and adherence with laws and regulations.
• The Popular Annual Financial Report (PAFR) is a concise and simplified overview of the financial data contained in the ACFR. The Government Finance Officers Association
(GFOA) established standards for Popular Annual Financial Report in 1991 to encourage and assist state and local governments to extract information from their annual comprehensive financial report to produce financial reports specifically designed to be accessible and easily understandable to the general public and other interested parties without a background in public finance.
DISCUSSION
ACFR Preparation Guidelines and Contents
The City’s ACFR is prepared in accordance with the guidelines and standards established by the Governmental Accounting Standards Board (GASB) and the Government Finance Officers Association (GFOA). The ACFR includes the following major sections and information:
Introductory Section
• Letter of Transmittal – provides information about the City’s profile, economic conditions and outlook, and major initiatives and accomplishments.
Financial Section (the key section of the ACFR)
• Independent Auditors’ Report – report card on the fair presentation of the City’s financial statements.
• Management’s Discussion and Analysis (MD&A) – an overview of the City’s activities and financial performance.
• Basic Financial Statements – the City’s financial results and conditions. The key reports include balance sheet, income statement, and cash flow statement. o Government-wide Financial Statements – provide a broad overview of the City’s finances, in a manner like private-sector businesses.
o Fund Financial Statements – focus on near-term inflows and outflows of spendable resources. Useful information in determining what financial resources are available in the near future to finance the City’s programs.
o Notes to Financial Statements – an integral part of the financial statements that provides additional information pertaining to City operations. o Supplementary Information – includes budgetary comparison schedules and pension and other post-employment benefits (OPEB) plans.
Statistical Schedules (current and historical information – up to 10 years) o Financial Trends
o Revenue Capacity Information
o Debt Capacity Information
o Demographic and Economic Information
o Operating Information
Financial Highlights
Please refer to the MD&A section of the ACFR for a detailed discussion on the City’s financial performance and position. Financial highlights for the year ended June 30, 2025, are as follows:
• The City’s total net position increased by $11.5 million in FY 2024/25, of which $3.5 million is governmental activities and $8.0 million in business-type activities, primarily due to increased revenues over expenditures.
• Property tax revenues, the largest revenue source for the General Fund, increased by $2.4 million from the prior fiscal year, or 2.7 percent. Sales tax revenues, the second largest revenue source, increased by $1.3 million, or 5.3 percent. Other tax categories, such as business licenses, increased by $1.1 million.
• The City’s governmental funds reported ending fund balances of $183.3 million, a decrease of $5.3 million from FY 2023/24 to FY 2024/25 as expenses exceeded revenues. While most governmental funds had an increase in fund balance, certain revenues collected in prior fiscal years were used to support projects in the current fiscal year.
• The General Fund’s fund balance at fiscal year-end was $66.9 million, of which $37.7 million is unassigned (including $3.6 million in unrealized investment gain), $20.9 million is restricted for the Public Agency Retirement Services (PARS) Section 115 Pension Trust Fund, $7.8 million is committed for the COVID Response and Recovery Program, the Strategic Plan implementation, and the Emergency and Capital Reserves, and $0.5 million is non-spendable. The $66.9 million fund balance is a $4.9 million increase over the fund balance at the end of FY 2023/24.
• The General Fund financial results were presented to the City Council on November 18, 2025. As part of the final year-end close, $84,000 in system maintenance expenditure was accrued, resulting in a lower net surplus (net change in fund balance) for the General Fund. The ACFR reported $4.9 million in net change in fund balance, including $3.6 million in unrealized investment gain. Excluding the unrealized investment gain, which is not available as a budgetary resource, the FY 2024/25 General Fund net surplus is $1.3 million. Available resources must be retained in the General Fund to meet the 20.0% reserve target in accordance with the City’s reserve policy. • In FY 2024/25, the City implemented a new accounting standard, Governmental Accounting Standards Board (GASB) 101, which pertains to compensated absences.
The new accounting standard requires agencies to recognize liabilities for used but unpaid leave when certain criteria are met, aiming for a more consistent and accurate representation of agencies’ financial obligations. In addition to accrued vacation and unused compensated time recorded in prior fiscal years, the City is now required to report sick leave liability and other relevant leave benefits. This implementation resulted in a $7.4 million increase in compensated absences liability as reported in the ACFR, and the FY 2023/24 net position was restated to reflect the new requirement.
Enterprise Fund Financial Highlights
It should be noted that the net position/financial results presented in the ACFR for the Water and Sewer Funds consolidates all the different fund types (operating, repair and replacement,
capital, and debt service) for each program, not just the Operating Fund. • The Water Fund’s net position decreased by $3.2 million. Operating revenues of $42.5 million and operating expenses of $42.2 million (an increase of $8.5 million and $3.8 million from the prior year) resulted in an operating income of $0.3 million.
Miscellaneous revenue increased by $0.2 million, while charges for user services increased by $8.4 million due to the water rate increase that went into effect January 1, 2025, in addition to the increase from the prior fiscal year. The increase in operating expenses was mainly attributable to a $2.3 million increase in water purchase costs compared to the prior fiscal year from Zone 7 and a $1.1 million increase in personnel services expenses. Similarly, for recycled water, purchase costs from the Dublin San Ramon Services District- East Bay Municipal Utility District (DSRSD-EBMUD) Recycled Water Authority increased by $0.2 million compared to the prior fiscal year.
The operating income was offset by a nonoperating loss of $4.0 million mainly due to the loss on disposal of capital assets ($4.3 million) related to the PFAS Treatment and Wells Rehabilitation Project and several other projects that are no longer considered to be capital projects. Capital assets previously recorded for the PFAS Treatment and Wells Rehabilitation Project were deleted, as this project is no longer proceeding due to the groundwater well project with Zone 7. The Water Fund also received $0.4 million in transfers from other funds.
• The Sewer Fund’s net position decreased by $0.6 million in FY 2024/25. Operating revenues of $17.6 million and operating expenses of $20.1 million (an increase of $0.8 million and $0.4 million from the prior year) resulted in an operating loss of $2.5 million, including non-capital-related expenses. This loss was offset by $1.2 million in interest income and gain on the fair value of investments and $1.2 million in the City’s joint venture investment in the Livermore-Amador Valley Water Management Agency, net of a $0.7 million loss on the disposal of capital assets. The $0.8 million increase in operating revenues is mostly due to the sewer rate increase, as well as higher than anticipated utilization of sewer services. The $0.4 million increase in operating expenses was primarily attributable to increased sewer treatment fees paid to DSRSD ($0.5 million) and expenses related to personnel services ($0.4 million), offset by decreases in other expense categories, such as repairs and maintenance and professional services. The Sewer Fund also received $0.1 million in transfers from other funds.
Unfunded Pension and Retiree Medical Liabilities
• As of June 30, 2025, the City’s net pension and retiree medical liabilities total $240.6 million. When accounting for the $56.3 million set aside in the PARS Pension Trust Fund, the total unfunded liability is reduced to $184.3 million, comprising $166.3 million for pensions and $18.0 million for retiree medical benefits. Compared to the prior fiscal year, the total unfunded liability decreased by approximately $14.3 million, from $197.6 million, partly due to higher-than-expected CalPERS investment earnings for FY
2023/24.
Analysis and assessment of FY 2024/25 operating results and fund balances are important steps to the mid-year budget review process. Staff will be presenting the FY 2025/26 mid-year budget to the City Council for consideration at the February 17, 2026, meeting.
EQUITY AND SUSTAINABILITY
Not applicable, as this item is a routine administrative matter of City businesses.
OUTREACH
No outreach was conducted, as this item is a routine administrative matter of City businesses
STRATEGIC PLAN ALIGNMENT
Presentation of the Annual Comprehensive Financial Report aligns with the ONE Pleasanton strategic plan goal of Funding Our Future by supporting transparency and fiscal sustainability.
FISCAL IMPACT
There is no direct fiscal impact in accepting the FY 2024/25 audited Annual Comprehensive Financial Report and other related reports.
Prepared by: Submitted by: Approved by:
Susan Hsieh, Director of
Finance
Susan Hsieh, Director of Finance
Gerry Beaudin, City
Manager
Attachments:
1. FY25 Annual Comprehensive Financial Report (ACFR)
2. FY25 Measure B Financial Statements
3. FY25 Measure BB Financial Statements
4. FY25 Measure F Financial Statements
5. FY25 Single Audit and Independent Auditors' Reports
6. FY25 Appropriations Limit Schedule
7. FY25 Auditors' Communications Letter
8. FY25 Popular Annual Financial Report (PAFR)
9. FY25 ACFR Presentation
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2025
CITY OF PLEASANTON, CALIFORNIA
CITY OF PLEASANTON, CALIFORNIA
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
WITH REPORTS ON AUDIT
BY INDEPENDENT
CERTIFIED PUBLIC ACCOUNTANTS
FOR THE YEAR ENDED
JUNE 30, 2025
Prepared by:
Finance Department
City of Pleasanton
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents
i
Page
INTRODUCTORY SECTION (Unaudited)
Letter of Transmittal ....................................................................................................................................................... v GFOA Certificate of Achievement for Excellence in Financial Reporting .................................................................. xv Elected Officials and Executive Management ............................................................................................................. xvi Organization Chart ............................................................................................................ ......................................... xvii Regional Map .................................................................................................................. .......................................... xviii
FINANCIAL SECTION
Independent Auditor’s Report on the Audit of the Financial Statements ............................................................... 1
Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ........................... 5
Basic Financial Statements:
Government-Wide Financial Statements:
Statement of Net Position .................................................................................................... ............................ 34 Statement of Activities ...................................................................................................... .............................. 36
Fund Financial Statements:
Governmental Funds Financial Statements:
Balance Sheet ................................................................................................................ ............................ 42 Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position .......................................................................... 45 Statement of Revenues, Expenditures, and Changes in Fund Balances .................................................... 46 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Chang es in Fund Balances to the
Government-Wide Statement of Activities .................................................................................... .... 48
Proprietary Funds Financial Statements:
Statement of Net Position .................................................................................................... ..................... 50 Statement of Revenues, Expenses, and Changes in Net Position ............................................................. 54 Statement of Cash Flows ...................................................................................................... ..................... 56
Fiduciary Funds Financial Statements:
Statement of Fiduciary Net Position .......................................................................................... ............... 63 Statement of Changes in Fiduciary Net Position ...................................................................................... 64
Notes to the Basic Financial Statements ............................................................................................................. 71
City of Pleasanton
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
ii
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):
Notes to the Budgetary Comparison Schedule ................................................................................................... 137
Budgetary Comparison Schedule:
General Fund ................................................................................................................ ................................. 139 Lower Income Housing Special Revenue Fund ............................................................................................ 140 Miscellaneous Grants Special Revenue Fund ................................................................................................ 141 Schedule of Changes in Net Pension Liability and Related Ratios:
Agent Multiple-Employer Defined Benefit Pension Plan – Miscellaneous Plan .......................................... 142 Agent Multiple-Employer Defined Benefit Pe nsion Plan – Safety (Fire) Plan ............................................. 144 Schedule of Proportionate Share of Ne t Pension Liability and Related Ratios:
Cost-Sharing Multiple-Employer Defined Benefit Pension Plan - Safety (Police) Plan ............................... 146 Schedule of Plan Contributions - Pensions:
Agent Multiple-Employer Defined Benefit Pension Plan – Miscellaneous Plan .......................................... 148 Agent Multiple-Employer Defined Benefit Pe nsion Plan – Safety (Fire) Plan ............................................. 150 Cost-Sharing Multiple-Employer Defined Benefit Pension Plan - Safety (Police) Plan ............................... 152 Schedule of Changes in Net OPEB Liability and Related Ratios:
City of Pleasanton Retiree Healthcare Pl an - Agent Multiple-Employer Plan .............................................. 154 Livermore Pleasanton Fire Department Retiree Heal thcare Plan - Agent Multiple-Employer Plan ............. 156 Schedule of OPEB Contributions:
City of Pleasanton Retiree Healthcare Pl an - Agent Multiple-Employer Plan .............................................. 158 Livermore Pleasanton Fire Department Retiree Heal thcare Plan - Agent Multiple-Employer Plan ............. 160
Supplementary Information:
Nonmajor Governmental Funds:
Combining Balance Sheet ..................................................................................................... ........................ 169 Combining Statement of Revenues, Expend itures, and Changes in Fund Balances ..................................... 179 Schedules of Revenues, Expenditures, and Ch anges in Fund Balances – Budget and Actual:
D.A.R.E Trust Special Revenue Fund ......................................................................................... ........... 189 Asset Forfeiture Special Revenue Fund ...................................................................................... ............ 190 CBD Parking In-Lieu Special Revenue Fund ................................................................................... ...... 191 Resource Management Special Revenue Fund ....................................................................................... 192 Miscellaneous Donations Special Revenue Fund ................................................................................... 193 Landscape and Lighting Dist ricts Special Revenue Fund ....................................................................... 194 Landscape Maintenance N.P. I.D. Special Revenue Fund ....................................................................... 195 Geologic Hazard Assessment Di stricts Special Revenue Fund .............................................................. 196 Measure B Transportation Impr ovements Special Revenue Fund .......................................................... 197 Gas Tax Special Revenue Fund ............................................................................................... ............... 198 HOME Program Special Revenue Fund .......................................................................................... ....... 199 Abandoned Vehicle Special Revenue Fund
.................................................................................... 200
City of Pleasanton
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
iii
Page
Supplementary Information (Continued):
Nonmajor Governmental Funds (Continued):
Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual (Continued):
Urban Forestry Program Special Revenue Fund ..................................................................................... 201 HBPOA Maintenance Distri ct Special Revenue Fund ............................................................................ 202 Community Development Block Grant Special Revenue Fund .............................................................. 203 Downtown Economic Loan Special Revenue Fund ................................................................................ 204 Community Access Television Special Revenue Fund .......................................................................... 205 Marilyn Murphy Kane Trail R eserve Special Revenue Fund ................................................................. 206 Specific Plans Sp ecial Revenue Fund ..................................................................................................... 207 Measure F Vehicle Registration Fees Special Revenue Fund ................................................................. 2 08 Measure BB Transportation Impr ovements Special Revenue Fund ....................................................... 209 AB1379 CASp Certification and Tr aining Special Revenue Fund ......................................................... 210 Business Support Progra m Special Revenue Fund ................................................................................. 211 Pleasanton Garbage Service Rate Reserve Special Revenue Fund ......................................................... 212 Johnson Drive Economic Developmen t Zone Special Revenue Fund .................................................... 213 CIP for Downtown & North Pleasanton Capital Projects Fund .............................................................. 214 Public Facilities Ca pital Projects Fund ................................................................................................... 215 Park Development Capital Projects Fund ............................................................................................... 216 Park Capital Improvement Program Capital Project Fund ...................................................................... 217 Street Capital Improvement Program Capital Projects Fund .................................................................. 218 Traffic Impact Capital Projects Fund ....................................................................................... ............... 219 Budgeted Developer Proj ects Capital Projects Fund .............................................................................. 220 Assessment District Cons truction Capital Projects Fund ........................................................................ 221 Tri-Valley Transportati on Capital Projects Fund .................................................................................... 222 Miscellaneous Capital Improvement Programs Capital Projects Fund ................................................... 223 Nonmajor Enterprise Funds:
Combining Statement of Net Position .......................................................................................... ................. 227 Combining Statement of Revenues, Expe nses and Changes in Net Position ................................................ 228 Combining Statement of Cash Flows ............................................................................................ ................ 229 All Internal Service Funds:
Combining Statement of Net Position .......................................................................................... ................. 232 Combining Statement of Revenues, Expe nses and Changes in Net Position ................................................ 234 Combining Statement of Cash Flows ............................................................................................ ................ 236 Custodial Funds:
Combining Statement of Net Position .......................................................................................... ................. 242 Combining Statement of Change in Fiduciary Net Position ...................................................................... ... 244
City of Pleasanton
Annual Comprehensive Financial Report
For the Year Ended June 30, 2025
Table of Contents (Continued)
iv
Page
STATISTICAL SECTION (Unaudited)
Description of Statistical Section Contents ................................................................................................................ 249
Financial Trends:
Net Position by Component ................................................................................................................................. 252 Changes in Net Position ....................................................................................................................................... 254 Fund Balances of Governmental Funds ............................................................................................................... 258 Changes in Fund Balances – Governmental Funds .............................................................................................. 260 Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property ...................................................................... 265 Direct and Overlapping Property Tax Rates ........................................................................................................ 266 Principal Property Taxpayers ............................................................................................................................... 268 Property Tax Levies and Collections ................................................................................................................... 269 Debt Capacity:
Ratios of Outstanding Debt by Type .................................................................................................................... 272 Ratios of General Bonded Debt Outstanding ...................................................................................................... 274 Direct and Overlapping Debt ............................................................................................................................... 275 Legal Debt Margin ............................................................................................................................................... 276 Pledged-Revenue Coverage for the Water Fund .................................................................................................. 278 Demographic and Economic Information:
Demographic and Economic Statistics ................................................................................................................. 281 Principal Employers ............................................................................................................................................. 282 Full-Time, Part-Time and Limited Term Employees by Function ...................................................................... 283 Operating Information:
Operating Indicators by Function ......................................................................................................................... 286 Capital Asset Statistics by Function ..................................................................................................................... 288
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_______________
______________________________________________________________________ December 30, 2025
To the Honorable Mayor, Members of the City Council, and Community Members:
We are pleased to submit the Annual Comprehensive Financial Report (ACFR) for the City of Pleasanton, California, for the fiscal year ended June 30, 2025. Th e City of Pleasanton is required to annually publish a complete set of financial statements presente d in conformance with generally accepted accounting principles (GAAP) and audited by an independent, certified public accounting firm. Pursuant to these requirements, the ACFR has been prepared in confor mity with the principles and standards for financial reporting set forth by the Governmental Accounting Standards Board (GASB).
The ACFR presents the financial condition of the City of Pleasanton. Management assumes full responsibility for the completeness and reliability of all the information. To provide a reasonable basis for making these representations, management has establishe d a comprehensive internal control framework that is designed both to protect the government’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with GAAP.
Because the cost of internal controls should not outweigh their benefits, the City’s comprehensive framework of internal controls has been designed to provide reasonable, rather than absolute, assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.
The Pun Group, LLP, a firm of independent, licensed and Certified Public Accountants, has audited the City of Pleasanton’s financial statements. The goal of the independent audit is to provide reasonable assurance that the financial statements of the City for the fiscal year ended June 30, 2025, taken as a whole, are free of material misstatements. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and ev aluating the City’s overall financial management.
The Pun Group concluded based on the audit that there was a reasonable basis for rendering an unmodified opinion that the City of Pleasanton’s financial statements for the fiscal year ending June 30, 2025 are fairly presented in conforming with GAAP. The independent auditor’s report is the first component presented in the financial section of this report.
The independent audit of the City’s financial statemen ts is part of a broader, federally mandated Single Audit designed to meet the needs of federal gr antor agencies. The standards governing Single Audit engagements require the i ndependent auditor to repor t not only on the fair pr esentation of the City’s financial statements, but also on the City’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of federal awards.
These reports are available in the City’s separately issued Single Audit Report.
GAAP requires management to provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of the Management’s Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The MD&A can be found immediately following the independent auditor’s report in the financial section of the report.
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Profile of the Government
The City of Pleasanton was incorporated in June 1894. Pleasanton’s history has been shaped largely by its geographic location, from its days as a stop on the transcontinental railroad to its modern-day position as a center of commerce at the intersection of intersta te freeways 580 and 680. Pleasanton enjoys a rich blend of historic turn-of-the-century charm and vital mo dern facilities that provide the quality of life and economic well-being desired by resi dents and businesses. This successf ul balance has been achieved through Pleasanton’s active and involved citizenry, strong community leadership and committed City government. The city occupies a land area of 24.2 s quare miles and serves a residential population of 77,232, in accordance with the California Department of Finance estimate.
Pleasanton is a full-service general law city providing po lice, fire, sewer, water, street, parks, support services, economic development, co mmunity development (planning, building and inspection services), community services (recreation, sports, senior center, and preschool) and library services. The City operates under the Council-Manager form of government, with four Council members elected by City residents for staggered four-year terms (a district-based election system) and the Mayor elected for a two-year term. The City Council appoints the City Manager and the City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the City, and appointing department directors.
The financial statements included in this ACFR pr esent the City (the primary government), the Housing Authority of the City of Pleasan ton (Housing Authority), and the Pleasanton Joint Powers Financing Authority (PJPFA) as component units. The Housing Au thority and the PJPFA are separate legal entities.
However, the members of the City Council serve as members of the boards for these entities. Financial information for the Housing Authority and the PJPFA is blended with the City’s financial information.
The biennial budget serves as the foundation for the C ity’s financial control and planning. The budget process begins in January in odd-numbered years, with each department receiving a budget packet. The City Manager meets with each department director to discuss their budget requests, followed by discussions with the City’s Executive Team and Finance staff. Prio r to July 1, the City Manager submits to the City Council a proposed operating budget for the coming tw o fiscal years. The operating budget includes proposed expenditures and funding sources. Public hearings are conducted to obtain community input. The budget is legally adopted through passage of a City Council resolution no later than June 30. A budget review, including approved additions or changes, is presented to the C ity Council by the City Manager at mid-year of each fiscal year (by beginning of March) and mid-term (June of each even numbered year).
Any changes as a result of these reviews are legally adopted through a City Council resolution.
The City Council exercises budgetary control at the fund level. Formal budgetary integration is employed as a management control device for the General F und, Special Revenue Funds, Capital Projects Funds, Enterprise Funds, and Internal Service Funds. The budge ted funds are adopted on a basis consistent with GAAP. Expenditures may not legally exceed budgeted appropriations at the fund level. Management does not have the authority to increase the budget without th e approval of the City Council. However, the City Manager may authorize budgetary transfers from one account to another within the same fund.
Assessing the City’s Economic Condition
The city's geographic location is a major factor affect ing its economic position. The city is located at the intersection of two interstate freeways (I-580 and I-680), linking Pleasanton to Sacramento to the north, San Francisco/Oakland to the west, the Silicon Valley to the south and the San Joaquin Valley to the east.
The Bay Area Rapid Transit (BART) system has two stations located in the city and provides service from Pleasanton to San Francisco/Oakland and the surroun ding areas. The Altamont Corridor Express (ACE) provides commuter service between the San Joaquin Valley and Silicon Valley, stopping in Pleasanton.
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In addition to Pleasanton’s advantageous proxim ity to San Francisco a nd Silicon Valley and its transportation access, other factors contribute to its attractiveness to businesses and their ability to attract and retain quality employees. These attributes include a relatively low crime rate, moderate climate, well- educated and highly skilled labor pool, excellent schools, diversified housing stock, exceptional parks and recreational facilities, and the hometown ambiance of the historic downtown.
Pleasanton’s business community consists of nearly 60,000 employees working within more than 20 million square feet of commercial, office, and industrial space throughout the c ity. Pleasanton boasts five distinct business parks, among them the nationally recognized Hacienda. Businesses indicate that they are attracted to the city for the quality and diversity of the regional labor force, to which Pleasanton contributes a robust base of executive, managerial, and professional workers, giving employers access to a wide range of skill levels, including one of the nation's largest concentra tions of scientific and engineering talent. In 2023, Pleasanton had a median household income of $186,000 compared to $126,000 for Alameda County, with
46.0 percent of Pleasanton households earning more than $200,000.
Pleasanton’s economy is steadily recovering from the effects of the COVID-19 pandemic based on several metrics:
• Median home value in June 2025 was $1,680,000 compared to $1,122,500 in Alameda County. • The unemployment rate was 4.8 percent in June 2025, up from 4.4 percent in June 2024. However, Pleasanton’s unemployment rate is one of the lowest in Alameda County compared to other cities. • Office vacancies are 17.1 percent at the end of FY 2024/25, which rose slightly from 16.6 percent at the close of FY 2023/24.
Commercial Office Activity
The office market in Pleasanton/Tri-Valley is fairly stable – vacancy has not deteriorated in recent months,
with lease rates holding steady. The fiscal year closed with positive absorption. However, the Tri-Valley vacancy level of 18.5 percent at the end of FY 202 4/25 is elevated, indicating a soft market overall as companies continue to assess space needs. Pleasanton’s vacancy for Class A office was slightly higher than the Tri-Valley at 21.0 percent. Net absorption in the second quarter of 2025 was +56,883 square feet, a rebound from the prior quarter’s loss and better than the same period last year. Asking rents held steady at $2.98 per square foot full-service (FS) year-over-year. No new supply was delivered in the second quarter, and leasing activity remained selective, focusing on well-located, amenity-rich product.
Notable transactions during FY 2024/25:
• 4637 Chabot Drive: 74,5000 square feet, Chabot Center Model (sale) • 5100 Franklin Drive: 13,005 square feet, Gillig LLC (sublease) • 4305 Hacienda Drive: 25,000 square feet, Service Now (direct lease) • 7133 Koll Center Parkway: 16,500 square feet, Comtel Systems (direct lease) • 4430 Rosewood Drive: 106,000 square feet, Vagaro (renewed lease) • 5700 Stoneridge Drive: 16,200 square feet, Teleflex (office/flex direct lease) • 6200 Stoneridge Mall Road: 12,000 square feet, Arctera (direct lease) • 4480 Willow Road: 64,200 square feet, Ventas Inc (flex sale)
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Retail Activity
Pleasanton and the Tri-Valley benefit from strong house hold incomes, stable population growth and a suburban setting—factors supporting retail demand. The most significant commercial construction
completed in FY 2024/25 was the 148,600 square foot Costco located at 7200 Johnson Drive, which opened in November 2024. Prior to that, the last commercial construction in Pleasanton occurred in October 2023.
Remaining units in this new build are now oc cupied by Beem Light Sauna, which opened in November 2025. At some city shopping centers, there is continued interest and investment in adding new tenants and completing renovations for current and future tenants.
New openings in the Downtown District included:
• 239 Main Street: Papa’s Dumplings
• 310 Main Street, Suite B: Naschmart Austrian Restaurant • 349 Main Street, Suite 140: Honeybear Boba Care
• 377 St. Mary Street: Duchess Pleasanton Restaurant
Notable openings in other Pleasanton shopping centers included:
• 6770 Bernal Avenue: Toast Cafe & Grill
• 6455 Owens Drive, Suite D: The Olive Market
• 4220-A Rosewood Drive: Nikuya Stone Grill and Bar in the Rose Pavilion Shopping Center • 6654 Koll Center Parkway, Suite 300: Cook’s Seafood Restaurant and Fish Market In conjunction with the Housing Element update (described below) in January 2023, the City completed a planning effort for the properties comprising the Stoneridge Shopping Center (Stoneridge Mall), known as the Stoneridge Mall Framework. In addition to identifying suitable locations for new high-density housing, the Stoneridge Mall Framework identified new opportunities for commercial development, placemaking, and amenities, as well as other strategies to encourage new infill development around the mall. The City is continuing to engage with the property owners at the mall to advance the completion of a comprehensive Master Plan for Stoneridge, with progress on this effort made in the second half of 2024, which is anticipated to be ongoing through mid-2026.
General Plan Build-Out
The City’s General Plan is the official document used by City Council and citizens guiding the long-range development of land and conservation of resources as the City grows and changes. It is the City’s “constitution” for all future development, containing goals, policies, and maps with the most recent General Plan adopted in July 2009. Following a more than two-year process, the City’s 6 th Cycle Housing Element
for the period 2023-31 was adopted in January 2023, formally certified by the State Housing and Community Development Department in August 2023 and re-adopted in September 2023. The Housing Element designates 20 new sites allowing residential development at various densities throughout the city.
Together with capacity on existing zoned sites, the H ousing Element meets the City’s requirement to plan for up to 5,965 units as assigned in the 6
th Cycle Regional Housing Needs Allocation (RHNA). The City has seen active interest in advancing housing projects on several of these sites, with applications in process as of the end of the fiscal year.
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Projects on housing element sites that were approved during FY 2024/25 include the Villages at the Quarry project that includes 305 market-rate single-family homes, 57 of which woul d incorporate Accessory Dwelling Units, and 84 multi-family affordable apar tments and a 27-unit single-family residential development on Vineyard Avenue on a property formerly owned by the Pleasanton Unified School District.
Construction is underway on the a pproved Harmony Condominiums project (42 townhome units), the project at 3200 Hopyard Road (57 townhome units), a nd the Robson Homes development on a site in the downtown (14 new units). Avalon Bay has been issu ed certificates of occupancy for the townhome and garden apartment units that are pa rt of a larger 305-unit project, and building permits for a multi-family podium building are under review. Several other residential projects were under active review in FY 2024/25, including a 59-unit townhome project at 4400 Black Avenue, the 189-unit Arroyo Lago project (proposed for annexation into Pleasanton), and the 31-unit Lester single-family residential development.
Major City Sponsored Initiatives
The City is committed to providing innovative, cost -effective, and responsive services to the community and continues to implement services and programs that align with the community’s mission, vision, values, and strategic goals. Major programs, projects, and accomplishments for FY 2024/25 include:
Transportation
• Continued design for W. Las Positas Boulevard multimodal reconstruction. • Completed Annual Curb and Gutter pro
gram.
• Completed Annual Slurry Seal and pavement repairs.
• Completed Hopyard and Owens Intersection design and started construction.
Parks
• Repaired the concrete and railing on the Moller Park bridge. • Completed an infill planting project in the median on Santa Rita Road between Valley Avenue and Mohr Avenue.
• Completed a turf conversion project at Oak Hill Park. • Planted 73 trees in parks and streets.
• Completed Citywide Turf Reduction Study.
• Completed Tree Preservation Ordinance and Urban Forest Master Plan. • Completed Lions Wayside Park design and started construction. • Completed Callippe Preserve Trail design and started construction. • Received a $1.0 million grant for Augustin Bernal Fuel Management and started permitting. • Completed Annual Court Resurfacing design and started construction. • Issued 240 Heritage Tree Permits.
Facilities
• Completed the downtown LED streetlight conversion.
• Completed the solar inverter project at the Operations Service Center (OSC). • Installed 12 electric vehicle (EV) charger stations for City fleet. • Completed Fire Station #3 HVAC and Electrolysis repair and replacement. • Completed the installation of public art at the library. • Completed Century House Roof Replacement.
• Completed Library Lighting Replacement.
• Completed Phase 1 Asset Management Plan and continued with Phases 2 and 3.
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Water
• Completed Water System Management Plan.
• Completed Bernal Avenue Water Main and Turnout #1.
• Construction of Near Term Water Improvements and Turnout #4 Pre Package Booster Station Procurement.
• Completed a water connection fee study.
• Completed test wells and continued design of City Groundwater Supply Project.
Sewer
• Started the development of the Wastewater System Management Plan. • Completed Annual Sewer Collection Improvements.
• Completed design and started construction of S-14 Sewer Station Replacement.
Storm
• Continued the design for FEMA grant-eligible permanent repairs at: Augustin Bernal culvert and retaining wall, Oak Tree Farm Outfall, and East Vineyard Detention Pond Outfall. • Completed design and started the construction for storm drain improvements at Puri Court.
City Governance/Administration
• Completed Year 2 implementation of the citywide 5-year strategic plan, ONE Pleasanton and gave a progress report to th
e City Council in March 2025.
• Held a facilitated City Council retreat and St rategic Planning session and developed a citywide Project Prioritization framework.
• Completed extensive budget engagement in Spri ng 2025, including multiple special City Council workshops, a Budget Town Hall event, an online engagement tool, and formation of a Budget Advisory Committee.
• Launched FlashVote, a quick, easy-to-use survey pl atform that allows Pleasanton residents to provide statistically valid input on City topics in real time. • Implemented the OpenGov online budget book to streamline the budget development process. • Conducted the City’s General Municipal Election with six candidates and a ballot measure. • Conducted the second year of the 6-month Pleasanton Community Academy (PCA) with informational and interactive sessions highlighting the City’s services and operations. • Continued citywide Emergency Preparedness efforts with a focus on Health and Safety; launched the citywide Health and Safety Committee and completed a comprehensive update to the In jury and Illness Prevention Plan.
• Conducted a full Emergency Management functional exercise for Fire Season preparedness. • Created six building-specific Emergency Action Plans (EAPs) and 67 City facility-specific evacuation maps. Provided training and supplies to evacuation managers and coordinators. • Created a Citywide Power Outage Protocol and updated the City website with PG&E Power Outage information.
• Launched citywide BELONG (Building Equity, Leadership, Opportunity, Nurturing, and Growth) Pleasanton Initiative.
• Completed successful recruitment of key staff pos itions, including Police Chief and Interim Fire Chief.
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• Streamlined recruitment process and pre-employmen t screening, resulting in a reduction in cost and in the average time taken to fill vacancies.
• Created and implemented a Workplace Violence Prevention Policy and Training Program. • Upgraded the City’s Tyler Munis enterprise resource planning (ERP) system, ensuring improved functionality and security compliance.
• Updated the citywide overhead cost allocation pl an and implemented credit card fees to recover costs.
• Worked with Eide Baily to conduct an independent assessment of the City’s financial health and to validate the financial forecast assumptions.
Public Safety
• Completed Livermore-Pleasanton Fire Departme nt (LPFD) technology im provements – updated Phoenix G2 Station Alerting in all fire stati ons; upgraded to ImageTrend (cloud-based re cords
management system); initiated work on new/modern LPFD website. • Completed Pleasanton Police Department Technology Improvements – refresh/implementation of the new Sunridge RIMS CAD/RMS/Mobile syst em, including infrastructure readiness, data migration, and user training, including a complete refresh of all Mobile Data Computers (MDCs), ensuring reliable, high-performance access to mission-critical applications in the field. • Held a successful Fire Safety Expo educational event with over 1,800 attendees. • Continued LPFD focus on community engagement via quarterly newsletters, website, and social media.
• Completed Community Risk Assessment.
Community and Economic Development
• Continued implementation of the 2023-2031
Housing Element, including adoption of Zoning and
Municipal Code Amendments, creating a pre-approved Accessory Dwelling Unit (ADU) program, and advancing planning and entitlement of numerous residential development projects. • Advanced efforts towards master planning for St oneridge Mall, working collaboratively with the ownership group to seek agreements on a master plan process. • Continued implementation of the Five-Year Econom ic Development Strategic Plan to sustain Pleasanton's economic health.
• Made significant progress on adoption of updated development impact and affordable housing fees. • Adopted comprehensive amendments to the City’s Inclusionary Zoning Ordinance. • Made significant progress towards adopting an In novation-Based Business Ordinance to provide streamlined review for low-impact light industri al uses such as life scienc es, food tech, robotics, and light manufacturing.
• Started construction for Equus Court, Avalon Ba y Tract 8528 (990 Sycamore Road), Tract 8672 (3200 Hopyard Rd), Tract 8676 (2500 Santa Rita Rd).
Library and Recreation
• Introduced athletic field and special event fees based upon actual costs. • Implemented the transfer of the historic Ama dor Theater back to the Pleasanton Unified School District (PUS
D) to preserve programming while achieving $73,000 in annual savings. • Developed and implemented a c itywide Sponsorship Policy to provide financial support for programs, services, and facilities.
• Implemented new Gym Agreement with PUSD to enhance efficiency and align with budget goals.
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• Completed Eastern Alameda County Human Se rvices Needs Assessment and Grant Program Alignment in partnership with the cities of Dublin and Livermore. • Launched Mobile Library and Recreation Vehicle, with partial funding from the State and contributions from Black Gold Cooperative Library System and Friends of the Pleasanton Library. • Introduced four new pickleball courts at Tennis and Community Park with funding from Lifeti me Activities, converting one underutilized tennis court into four pickleball cour ts to meet public demand.
• Added three new picnic sites to the City’s rental portfolio, doubling the number of rentable picnic sites in the city and increasing revenue opportunities. • Enhanced the City’s public art collection:
· Installed “Hope and Promise” mural at Rotary Park.
· Installed “Wizard of Oz Book Bench” at the Pleasanton Library. · Launched Public Art Map, providing an accessible and engaging tool for residents and visitors to explore public art throughout Pleasanton.
Long-Term Financial Policies and Planning
The City’s financial policies emphasize building reserves for:
• Reducing the
risk of financial impacts from natural disasters or other catastrophic events. • Responding t
o challenges in a changing economic environment, including prolonged downturns in the local, state, or national economy.
• Demonstrating continued prudent fiscal management and creditworthiness. • Ensuring City funding of capital projects without relying solely on debt issuance.
Consistent with the City Council policy adopted in June 2023, the City maintains a r eserve at least equal to
16.7 percent of operating expenditures in the General Fund 1, totaling $37.7 million in unassigned fund balance (including unrealized investment gain) as of June 30, 2025. This meets the General Fund’s 20.0 percent reserve target. The City also established a Capital Reserve of $6.6 million, a restricted Pension Reserve of $20.9 million (details below), and other program reserves of $1.2 million. These unrestricted and restricted reserves total $66.4 million.
While the General Fund reserves are adequate, the long-term financial forecast indicates that expenditure growth is
outpacing revenue. The City needs additional resources to sustain services and programs and maintain aging community assets. The budget for FY 2025/26 and FY 2026/27 includes cost reductions and limited use of savings and investment funds. At th e Council’s direction, the City continues to explore revenue options, including a potential increase to the hotel tax rate and economic development initiatives.
Pension Pre-Funding and Section 115 Pension Trust Fund
Over the years, the City has implemented proactive measures to fund its pension obligation, including one- time lump sum payments to CalPERS and the establishm ent of a Pension Trust. Through June 30, 2025, the City has allocated a total of $27.3 million to prefund pension-related liabilities directly to CalPERS. In addition, in March 2018, the City established a Secti on 115 Pension Trust fund (Trust Fund) with PARS with an initial contribution of $28.0 million in June 2018 and subsequent contributions of $10.0 million in FY 2019/20 for a total of $38.0 million.
1 In June 2023, the City Council adopted an updated reserve policy that requires the General Fund to maintain minimum reserves equal to 16.7 percent of operating expe nditures and target reserves equal to 20.0 percent of operating expenditures. In addition, the City’s reserve policy for Water and Sewer funds requires reserves equal to
30.0 percent of operating expenditures, target reserves of 35.0 percent and maximum reserves of 40.0 percent.
xiii
Of the $38.0 million, $16.7 million wa s deposited into the PARS Conservative Portfolio, and the balance was deposited into the PARS Capital Growth Custom Portfolio. The City’s objective is to ensure there will be sufficient funds in the PARS Trust to meet th e City’s expected increased pension contributions associated with the City’s unfunded pension liabilit y and fully fund the liability over time. The PARS Conservative Portfolio is included in the General Fund Restricted Reserves shown on page 111 of the ACFR. The PARS Capital Growth Custom Portfolio is reflected in the PARS Section 115 Pension Trust Fund shown on page 235 of the ACFR.
The total fair value as of June 30, 2025, of the C ity’s Trust Fund is $56.3 million: $20.9 million in the PARS Conservative Portfolio and $35.4 million in the PARS Capital Growth Custom Portfolio. The City Council adopted the following Section 115 Pension Trus t Withdrawal Policy Guidelines to help ensure there are monies available to help the City make pension contributions when necessary:
a. Annual CalPERS employer pension contribution rate increase (in dollars) is greater than the growth rate (in dollars) of the City’s General Fund.
Example: the pension contribution increases by $2.0 million from the previous year while General Fund growth is $1.5 million.
b. The General Fund has a structural deficit that needs to be addressed (i.e., non-discretionary expenditures exceed revenues).
c. General Fund reserves have been used and need to be replenished in order to maintain a reserve equal to 20.0 percent of General Fund expenditures.
d. Paying off specific pension liabilities that will resu lt in interest savings greater than interest earnings on the Trust Fund.
These prefunding contributions and the establishment of the Section 115 Pension Trust Fund demonstrate the City’s commitment to address its pension-related liabilities.
Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financ ial Reporting to the City of Pleasanton for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2024. This was the twenty-eighth consecutive year the City has receive d this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an easily read able and efficiently organized ACFR. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that this current ACFR continues to meet the Certificate of Achievement Program’s requirements, and we are submitting it to the GFOA to determine its eligibility for a certificate.
Acknowledgments
The preparation of the ACFR was made possible through the dedicated work of all members of the Finance Department. We would like to extend special than ks and acknowledgment to Diane Punzo, who was primarily responsible for managing the year-end closing of the City’s books and preparing the ACFR. Other contributing staff include Christina Crosby, Dawn DeMarcus, Jamie Gallagher, Erika Newsome, Minh Nguyen, Erica Shima, Tam Thai, Stella Wang, Chris Yi, and Raquel Zegarra.
xiv
The City Council is also acknowledged and thanked fo r its leadership and commitment to ensuring the long-term fiscal health of the City.
Respectfully submitted,
Susan Hsieh Gerry Beaudin
Director of Finance City Manager
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6 Hutton Centre Drive, Suite 1200
Santa Ana, California 92707
INDEPENDENT AUDITO
R’S REPORT
To the Honorable Mayor and the Members of the City Council of the City of Pleasanton
Pleasanton, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the governmental activiti es, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Pleasanton, California (the “City”), as of and for the year
ended June 30, 2025, and the related notes to the financia l statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referre d to above present fairly, in all material r espects, the respective financial position of the governmental act
ivities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2025, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accept ed in the United States of America (“GAAS”), and the standards applicable to financial audits contai ned in Government Auditing Standards , issued by the Comptrol
ler General of the United States ( “Government Auditing Standards” ). Our responsibilities under those standards are further described in the Auditor's Responsib ilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Emphasis of Matters
GASB Statement No. 101, Compensated Absences
As discussed in Notes and 1 and 15 to the Basic Financial Statements, the City restated its beginning net position to reflect the implementation for compen sated absences
under GASB Statement No. 101. Our opinion is not modified with respect to this matter.
Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United Stat es of America, and for the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate wh ether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s abilit y to continue as a going concern for
twelve months beyond the financial st atement date, including any currently known information that may raise substantial doubt shortly thereafter.
To the Honorable Mayor and the Members of the City Council of the City of Pleasanton
Pleasanton, California
2 Auditor’s Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whet her the financial statements as a whole are free from material misstatement, whether due to fraud or error, a nd to issue an auditor’s report that includes our opinions.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circums tances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal cont rol-related matters that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Budgetary Comparison Schedules, the Sc hedules of Changes in Net Pension Liability and Related Ratios, the Schedule of City’s Proportionate Share of the Net Pension Liability and Rela ted Ratios, the Schedules of Contributions – Pensions, the Schedules of Changes in Net Other Postemploy ment Benefits Liability and Related Ratios, and the Schedules of Contributions – Other Postemployment Benefits be presented to supplement the basic financial statements. Such information is the responsibility of the management and, although not a part of the basic financial statements, is required by the Governmental Acc ounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited pr ocedures to the Required Supplementary Information in accordance with GAAS, which consisted of inquiries of mana gement about the methods of preparing the information and comparing the information for cons istency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic fina ncial statements. We do not express an opinion or provide any assurance on the information because the limited procedur es do not provide us with sufficient evidence to express an opinion or provide any assurance.
To the Honorable Mayor and the Members of the City Council of the City of Pleasanton
Pleasanton, California
3 Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying Combining and Individual Fund Financial Statements are presented for purposes of additional analysis and are not a re quired part of the basic financial statements. Such information is the responsibility of management and w as derived from and relates directly to the underlying accounting and other records used to prepare the basic financ ial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and ot her additional procedures in accordance with GAAS. In our opinion, the Combining and Individual Fund Financia l Statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the othe r information included in the annual report. The other information comprises the Introductory and Statistical Sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basi c financial statements, our responsibility is to read the other information and consider whether a material inconsistenc y exists between the other information and the basic financial statements, or the other information otherwise appears to be materially mi sstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards , we have also issued our repor t dated December 30, 2025, on our consideration of the City’s internal control over financia l reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreemen ts and other matters. The purpose of that report is solely to describe the scope of our testing of internal control ove r financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Santa Ana, California
December 30, 2025
o
4
City of Pleasanton
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2025
5 This section of the City of Pleasanton’s (“City”) Annual Comprehensive Financial Report presents a narrative overview and analysis of the City’s financial activities for the fi scal year ended June 30, 2025 (FY 2024/25). We encourage readers to consider the information presented here in conj unction with additional information that we have furnished in our letter of transmittal and the City’s basic financial statements, which follows this section.
FINANCIAL HIGHLIGHTS
The City’s total net position increased by $11.5 million in FY 2024/25 of which $3.5 million is governmental activities and $8.0 million in business-type activities, primarily due to increased revenues over expenses.
Property tax revenues, the largest revenue source for the General Fund, increased by $2.4 million from the prior fiscal year, or 2.7 percent, and sales tax revenues, the second largest revenue source for the General Fund, increased by $1.3 million, or 5.3 percent. Other tax categories, such as business license, increased by $1.1 million.
The City’s governmental funds reported ending fund balances of $183.3 million, a decrease of $5.3 million from FY 2023/24 to FY 2024/25 as expenditures exceeded revenues. While most governmental funds had an increase in fund balance, certain revenues collected in pr ior fiscal years were used to support projects in the current fiscal year.
The General Fund’s fund balance at fiscal year-end was $66.9 million, of which $37.7 million is unassigned, $20.9 million is restricted for the PARS Section 115 Pe nsion Trust Fund, $7.8 million is committed for the COVID Response and Recovery Program, the Strategic Plan Implementation, and the Emergency and Capital Reserves, and $0.5 million is nonspendable. The $66.9 million fund balance is a $4.9 million increase over the fund balance at the end of FY2023/24.
OVERVIEW OF THE FINANCIAL STATEMENTS
The financial section of this report consists of four parts – the Independent Auditor’s Report, Management’s Discussion and Analysis (this portion), the basic financial statements, including the required supplementary information, and other supplemental information. The basic financial statements include two kinds of statements that present different views of the City as described below:
The Government-wide financial statements provide both long-te rm and short-term in formation about the City’s overall financial status.
The Fund financial statements focus on individual parts of the City government, reporting the City’s operations in more detail than the government-wide statements.
Governmental fund statements report how general government services such as police, fire and public works were financed in the short term, as well as what remains for future spending.
Proprietary fund statements offer short and long-term financial information about the activities the City operates like businesses, such as water and sewer services.
Fiduciary fund statements provide information about the fina ncial relationships in which the City acts solely as a trustee or custodian for the benefit of others to whom the resources belong.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
6 The financial statements also include Notes to Basic Financial Statements that explain some of the information in the financial statements and provide more detailed data. The City uses notes to presen t information in greater detail than is possible within the financial statements themselves, explain the nature of amount s reported in the financial statements, and how those amounts were determined, and report certain information that does not meet the requirements for inclusion in the financial statements (such as cer tain contingencies). The notes are followed by required supplementary information that consis ts of major governmental fund budgeta ry comparison schedules and schedules of changes in net liabilities and related ratios, and contributions on the City’s pension and retiree healthcare plans.
After these required elements, we have included supplementa l information consisting of combining statements that provide details about our nonmajor governmental funds, nonmajor enterprise funds, internal service funds and custodial funds.
The government-wide financial statements and the fund financial statements present different views of the City, as further described below.
Government-wide Financial Statements are designed to provide readers with a broad overview of City finances, in a manner similar to a private-sector business. The government -wide financial statements include the City (primary government) and the Housing Authority of the City of Pleasanton (Housing Authority) as a component unit. The City Council serves as the Board for the Housing Authority. Financ ial information for the Housing Authority is blended with the City’s financial information. Although it is a legally separate entity, in substance, the Housing Authority is a part of the City’s operations.
The Statement of Net Position presents information on all of the City’s assets, deferred outflows of resources, liabilities, and deferred inflows of resources with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as an indicator of whet her the financial position of the City is improving or deteriorating.
The Statement of Activities presents information showing how the City’s net position changed during the current fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows (accrual basis of accounting) . Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods, such as revenues pertaining to uncollected taxes and expenses pertaining to interest on long-term debt.
Both government-wide financial statements distinguish functi ons of the City that are principally supported by taxes and intergovernmental revenues ( governmental activities) from other functions that are intended to recover all or a substantial portion of their costs through user fees and charges ( business-type activities). The governmental activities of the City include general government, public safety , community development, public works, and community activities (parks, recreation, and library). The business-type activities of the City include water, sewer, golf, storm drain, transit, and cemetery, as well as the Housing Authority as a component unit.
Fund Financial Statements use fund accounting to segregate accounts fo r specific activities or objectives, including demonstrating finance-re lated legal compliance. All the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds, as described below.
Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike th e government-wide financial statements, governmental funds financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
7 The governmental funds focus is narrower than that of the government-wide financial statements. It is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. This comparison facilitates a better understanding of the long- term impact associated with the gove rnment’s near-term financing decisions. The governmental funds balance sheet and the governmental funds statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains several individual governmental funds organized according to thei r type (general, special revenue, and capital projects).
Information is presented separately in the governmental funds balance sheet and in the governmental funds statement of revenues, expenditures, and changes in fund balances for the major funds (see Notes to Basic Financial Statements).
Data from the remaining nonmajor governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided as supplementary information in the form of combining statements.
Proprietary funds are generally used to account for services for whic h the City charges customers – either outside customers or internal units of departments in the City. Proprietary funds provide the same type of information as shown in the government-wide financial statements, only in more de tail. The City maintains two types of proprietary funds, enterprise funds and internal service funds, as described below.
Enterprise funds are used to report the same functions presented as business-type activities in the government- wide financial statements. The City uses enterprise funds to account for water, sewer, golf, storm drain, transit, cemetery, and the Housing Authority.
Internal service funds are used by the City to establish reserves and account for employee benefits, public art acquisition and maintenance, replacement/renovation, lia bility insurance, retiree medical benefits, PARS Section 115 Trust Fund, and city enhancements. Th ese funds serve both governmental and business-type functions, and they are allocated accordingly in the government-wide financial statements. The internal service funds are combined into a single, aggregated present ation in the proprietary fund financial statements.
Individual fund data for the internal service funds is provided as supplementary information in the form of combining statements.
Fiduciary funds are used to account for resources held for the benef it of parties outside the City. Since the resources of these funds are not available to support the City’s ow n programs, they are not reflected in the government-wide financial statements.
Notes to Basic Financial Statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.
Required Supplementary Information includes budgetary comparison schedules that have been provided for the major governmental funds to demonstrat e compliance with the budget. The City adopts a two-year budget in June of every odd-numbered year. An update of the second year is presented to the City Council in June preceding the start of the second year (even-numbered year). Required supplementary information also includes schedules of changes in net liabilities and related ratios and on c ontributions on the City’s pension and retiree healthcare plans. The City participates in California’s Public Employees Retirement Sy stem (CalPERS) for its pension plan and provides its employees with post-retirement health care benefits (OPEB).
Supplementary Information includes information for nonmajor governmental, nonmajor enterprise, internal service, and custodial funds, and is presented immediately following the required supplementary information.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
8 GOVERNMENT-WIDE FINANCIAL ANALYSIS
The following section provides a comparative analysis of government-wide data for FY 2023/24 and FY 2024/25. The Statement of Net Position for the two years will be discussed first, followed by a discussi on of the Changes in Net Position for the two years.
The following table is a summary of the Statement of Net Position as of June 30, 2024 (2024) and June 30, 2025 (2025):
City of Pleasanton
Net Position (in millions of dollars)
Governmental Business-type
Activities Activities Total
Assets: 2024 2025 2024 2025 2024 2025
Current and other assets 279.8 $ 286.7 $ 76.8 $ 89.5 $ 356.6 $ 376.2 $ 5.5% Noncurrent assets 517.2 536.3 175.9 170.6 693.1 706.9 2.0% Total assets 797.0 823.0 252.7 260.1 1,049.7 1,083.1 3.2% Deferred outflows of resources 62.9 45.6 4.5 3.2 67.4 48.8 -27.6% Liabilities:
Other liabilities 22.3 31.0 14.8 15.2 37.1 46.2 24.5% Long-term liabilities 239.5 249.3 43.0 41.1 282.5 290.4 2.8% Total liabilities 261.8 280.3 57.8 56.3 319.6 336.6 5.3% Deferred inflows of resources 17.0 11.0 0.8 0.3 17.8 11.3 -36.5% Net Position:
Net investment in capital assets 500.9 508.7 143.5 132.3 644.4 641.0 -0.5% Restricted 132.2 136.4 1.1 1.1 133.3 137.5 3.2% Unrestricted (52.0) (67.9) 54.1 73.2 2.1 5.3 152.4% Total net position 581.1$ 577.2 $ 198.7 $ 206.6 $ 779.8 $ 783.8 $ Total
Percentage
Change
2024 to 2025
* Note: a change in accounting estimate is treated prospectively, prior periods are not restated.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
9 Analysis of Net Position – With the consolidation of government-wid e net position into one statement and the exclusion of fiduciary funds, net position serves as a useful indicator of a government’s financial position. For the City, assets and deferred outflows of resources exceeded liabiliti es and deferred inflows of resources by $783.8 million at the close of FY 2024/25.
The City reported positive balances in net investment in capital assets and in restricted net position for both governmental and business-type activities. Governmental ac tivities concluded the fiscal year with a negative unrestricted net position due primarily to its share of pension and OPEB liabilities, and business-type activities reported a positive unrestricted net position at year-end. The following are the primary components of the City’s net position:
The net investment in capital assets (e.g., infrastructure, land, buildings , improvements other than buildings, construction in progress, equipment, and subscriptions), less any relate d debt used to acquire assets still outstanding, is $641.0 million (81.7 percent of the total). The City uses these capital assets to provide services to the community; conseq uently, these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of relate d debt, it should be noted that the resources needed to repay this debt must be provided from other sources, si nce capital assets are generally not used to liquidate these liabilities.
The restricted net position of $137.5 million (17.6 percent of the total) represents resources that are subject to external restrictions on how they may be used. Among these amounts are $52.7 million restricted in the capital project funds for the construction of major capital proj ects (including improvements to streets, bridges, and bicycle and pedestrian trails, and park improvements); $56.3 million restricted for pension funding in the PARS Section 115 Pension Trust; $21.2 m illion restricted for community development projects of which $19.7 million was related to housing related programs; $6.0 million restricted in a variety of special revenue funds to support specific City programs; $0.7 million restricted for transportation programs; $0.5 million restricted for debt service; and the balance of $0.2 million is restricted for public safety.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
10 The unrestricted net position of $5.3 million (0.7% of the total) reflects the City’s net pension and OPEB liabilities of $176.9 million and $14.3 m illion, respectively. It also includes the City’s share of Livermore- Pleasanton Fire Department’s (LPFD) net deficit of $41.4 million (also reflecting LPFD’s pension and OPEB liabilities), which is offset by various reserves including amounts set aside for future capital improvements in capital projects funds, and reserves held in internal ser vice funds to pay for retiree medical expenses, general liability claims, and repair and replacement of City facilities and equipment. Governmental activities account for the negative $67.9 million of unrestricted net positi on. Business-type activities account for $73.2 million, the majority of which is held in the utility funds for future capital projects and emergency repairs and replacement.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
11 The following table reflects the change in net position for governmental and business-type activities for the year ended June 30, 2025:
City of Pleasanton
Changes in Net Position
(in millions of dollars)
Governmental Business-type
Activities Activities Total Total %
2024 2025 2024 2025 2024 2025 Change
Revenues:
Program revenues:
Charges for services 14.8 $ 20.4 $ 57.0 $ 66.5 $ 71.8 $ 86.9 $ 21.0% Operating grants & contributions 13.6 9.0 2.0 2.4 15.6 11.4 -26.9% Capital grants & contributions 13.7 20.5 0.9 - 14.6 20.5 40.4% General revenues:
Property taxes 90.2 92.6 - - 90.2 92.6 2.7% Sales taxes 24.6 25.9 - - 24.6 25.9 5.5% All other taxes 15.4 16.5 - - 15.4 16.5 7.1% All other general revenues 10.5 13.2 3.6 4.4 14.1 17.6 24.4% Total revenues 182.8 198.1 63.5 73.3 246.3 271.4 10.2% Expenses:
General government 26.5 27.2 - - 26.5 27.2 2.8% Public safety 65.7 67.1 - - 65.7 67.1 2.1% Community development 13.9 22.2 - - 13.9 22.2 59.7% Public works 39.5 45.1 - - 39.5 45.1 14.2% Community activities 18.1 17.3 - - 18.1 17.3 -4.4% Interest on long-term debt 0.3 0.4 - - 0.3 0.4 38.5% Water - - 39.7 48.0 39.7 48.0 20.8% Sewer - - 19.8 20.9 19.8 20.9 5.3% Golf - - 7.1 7.8 7.1 7.8 9.9% Storm Dain - - 2.7 3.0 2.7 3.0 11.1% Transit - - 0.6 0.7 0.6 0.7 27.3% Cemetery - - 0.3 0.3 0.3 0.3 -11.8% Total expenses 164.0 179.3 70.3 80.7 234.2 260.0 11.0% Revenues over (under) expenses 18.9 18.8 (6.7) (7.4) 12.1 11.4 -5.6% Transfer In/(Out) (2.8) (15.3) 2.8 15.3 - - 0.0% Change in net position 16.1 3.5 (3.9) 7.9 12.1 11.4 -5.6% Beginning of year,
as previously presented as of June 30, 565.0 581.1 202.6 198.7 767.6 779.8 1.6% Change in accounting principle (GASB 101) - (7.4) - - - (7.4) Beginning of year, as restated (Note 15) 565.0 573.7 202.6 198.7 767.7 772.4 0.6% Net position, end of year 581.1 $ 577.2 $ 198.7 $ 206.6 $ 779.8 $ 783.8 $ 0.5%
* Note: a change in accounting estimate is treated prospectively, prior periods are not restated.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
12 Changes in Net Position
Governmental activities decreased by $4.0 million over the prior fiscal year, including a restatement due to the implementation of a new accounting st andard. Net position increased by $3.5 m illion in FY 2024/25, as a result of revenues exceeding expenses, net of transfers to other funds. The increase in net position was offset by a $(7.4) million restatement in the beginning net position. The restatement was due to the implementation of GASB 101, which pertains to compensated absences. Th e new accounting standard requires agencies to recognize liabilities for both used but unpaid leave when certain criteria are met, aiming for a more consistent and accurate representation of agencies’ financial obligations. In addition to accrued vacation and unused compensated time recorded in prior fiscal years, the City is now required to report sick leave liability and other relevant leave benefits. This implementation resulted in a $7.4 million increase in compensated absences liability (See Note 15).
Total governmental activities revenues increased by $15.3 million over FY 2023/24.
Program Revenues - $7.8 million increased
Charges for services increased by $5.6 million primarily due to large development projects and new fees related to garbage and recycling collection services. Significant increases include $1.2 million in building permit fees, $1.4 million in plan check fees, $1.3 million in vehicle impact mitigation fees, and $0.5 million in garbage fees associated with program management costs. The vehicle impact mitigation and garbage fees all took effect in FY 2024/25.
Operating grants and contributions decreased by $4.6 million over the prior fi scal year. The decrease is primarily due to lower grant reimbursements in FY 2024/25, as well as one-time transactions that occurred only in FY 2023/24. In FY 2023/24, the City received $4.6 million in grant proceeds from the Alameda County Transportation Commission (ACTC) for the Stoneridge at I-680 Interchange Improvements Project, but only $0.6 million was received in FY 2024/25, which is included in the capital grants category in FY 2024/25. The City received $0.6 million from the California Depa rtment of Housing and Community Development Permanent Local Housing Allocation Program in FY 2023/24, but funding was not received in FY 2024/25.
Capital grants and contributions increased by $6.8 million over FY 2023/24 mainly due to increases in impact fees generated from large development projects and gran t revenues. Increases associated with impact fees consisted of $2.0 million from Park Development, $1.7 million from Traffic, $0.3 million from Tri-Valley Transportation, and $0.1 million from Public Facilities. In addition, the City received $0.6 million from the Alameda County Transportation Commission (ACTC) for th e Stoneridge at I-680 Interchange Improvements Project and recognized $0.8 million in grant revenue from the State Water Resources Control Board associated with the groundwater well project and $0.6 million from the Tri-Valley Transportation Council associated with the Sunol Boulevard Interchange Improvements Project.
General Revenues - $7.5 million increase
Property tax increased by $2.4 million in FY 2024/25 primarily due to the increase in assessed property values attributed to the continued demand for additional housing units and commercial development. Due to persistent high interest rates and a cooling real estate market in FY 2024/25, the year-over-year increase was only 2.7 percent, lower than the growth rate in FY 2023/24.
Sales tax increased by $1.3 million in FY 2024/25 primarily due to the opening of a Costco store in November 2024 and better-than-expected performance from the State and County Pool Allocation, General Consumer Goods, and Business and Industry categories.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
13 All other taxes increased by $1.1 million mainly due to the increase in business license tax of $0.9 million.
New business licenses and greater gross receipts, such as the opening of a Costco store, contributed to the year- over-year increase.
All other general revenues increased by $2.7 million mostly due to increased interest income and unrealized gain in market value change to the City’s investments. Higher interest rates in FY 2024/25 resulted in positive income.
The City’s governmental activities expenses increased by $15.3 million in FY 2024/25. The overall increase was mainly due to increased pe rsonnel expenses, capita l outlay/non-capitalizable expenses, and loss on the disposal of capital assets. Fo r general city programs, expenses increased in salary and benefits ($7.4 million), offset by decreases in tr ansportation and training ($0.8 million), repairs and maintenance ($0.4 million), materials, supplies, and services ($0.8 million), and debt service ($0.1 million).
Capital outlay increased by $3.3 million to support various program activities. The loss on disposal of capital assets for various project categories increased by $6.1 million, mainly due to the termination of projects and changes in project scope that rendered them no longer considered capital in nature.
Business-type activities net position increased by $8.0 million in FY 2024/25.
The City’s business-type activities provide the same type of information as the proprietary fund financial statements but are presented in a more summarized format. Key changes in the business-type activities are as follows:
Overall program revenues increased by $9.0 million mainly due to a $8 million increase in water revenues and $0.7 million increase in sewer service revenues, offset by a decrease in grants and contributions.
Total business type activity expenses increased by $10.2 million compared to the prior fiscal year. This increase mainly consists of $8.3 million in Water, $1.1 million in Sewer, and $0.7 million in Golf. Personnel expenses increased by $1.8 million, most notably in Water ($1.1 million) and Sewer ($0.4 million). Materials, supplies, and services increased by $4.1 million, primarily in Water ($2.7 million), Sewer ($0.7 million) and Golf ($0.7 million). The loss on disposal of capital assets of $5.3 m illion also attributed to th e year-over-year increase, with $4.3 million in Water and $0.7 million in Sewer. The overall increase was reduced by decreases in other categories, such as repair and maintenance and depreciation/amortization.
An analysis of key changes at the governmental funds leve l and proprietary funds level is provided in the following Fund Financial Analysis section.
FUND FINANCIAL ANALYSIS
The City uses fund accounting to segregate accounts for specific activiti es or objectives, including demonstrating finance-related legal compliance.
Governmental Funds
The focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of resources that are available to fund services and capital project construction.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
14 Fund Balances
In June 2023, the City Council adopted a reserve policy that requires the Gene ral Fund to maintain reserves between
16.7 percent and 25.0 percent of operating expenditures with target reserves equal to 20.0 percent. Should unforeseen and unavoidable events occur that requi re the expenditure of City resources be yond those provided for in the annual budget, the City Council must approve by Resolution any appropriations from unassigned fund balance. Details of the fund balance classifications are disclosed in Note 11 in the Notes to Basic Financial Statements.
As of June 30, 2025, the City’s governmental funds reported combined fund balances of $183.3 million, a decrease of $5.3 million in comparison with FY 2023/24. Revenues increased overall by $15.4 million during the fiscal year.
Multiple factors contributed to the increase. Property tax re venues, the City’s largest General Fund revenue source, accounting for 48.2 percent of total revenues, increased by $2.3 million due to property sales, completed new construction, and higher assessed property values. Sales tax revenue is the second largest revenue source for the General Fund, accounting for 13.5 percent of total revenues, increas ed by $1.3 million. The opening of a Costco store in FY 2024/25 was the primary driver of the year-over-year growth. In addition, several sales tax categories, including State and County Pool Allocation, General Consumer Goods, and Business and Industry, performed better than expected.
Other taxes increased by $0.9 million, primarily due to gr owth in the business license category. This was driven by new licenses and higher gross receipts, including the reloca tion of Kaiser staff from Oakland to Pleasanton and the opening of a Costco store. License and permits increased by $1.1 million primarily due to a $1.2 million increase in building permit fees derived from large development projects and increased development activities. Use of money and property increased by $3.4 million mainly due to an unrealized investment gain from the City’s investment portfolio and increased interest income. Intergovernmental revenues d ecreased overall by $2.4 million. This is mainly due to a large grant reimbursement received in FY 2023/24 that did not occur in FY 2024/25. Fees and other charges increased by $5.6 million primarily due to a $4.2 million increase in development fees, a $1.5 million increase in plan check fees, and a $0.1 million decrease in charges for services. Other in creased by $2.6 million, primarily due to the new vehicle impact mitigation fee, which generate d $1.3 million in FY 2024/25. Addition al increases included $0.5 million in interfund reimbursements and $0.4 million in recreation program fees.
The overall governmental expenditures for the year increased by $35.5 million over the prior fiscal year. Expenditures for general government, public safety, community development, public work s, and capital outlay increased by $1.1 million, $2.5 million, $2.1 million, $1.7 million, $29.1 million, respectively. The overall increase was offset by a $0.8 million decrease in community activities. These changes can be largely attribut ed to increases in salary and benefit expenses, higher software and insurance costs, increased water usage and contract services, growth in professional and reimbursable expenditures, and significant capital outlay for major construction projects.
Restricted fund balances constitute $100.2 million of the combined governmental fund balance and are constrained for a specific purpose by external parties, constitutional provisi on, or enabling legislation: for example, low-income housing projects, projects funded by park development fees, and street projects funded by Gas Tax, Measure BB sales tax and Measure F vehicle registration fees. Committed fund balances of $13.9 million represent amounts constrained for a specific purpose by the government entity and designated as such by its highest level of decision-making authority, which is City Council. Assigned fund balances of $31.3 million represent funds to be used for City funded capital projects that have not been specifically identified or constrained by City Council. Unassigned fund balances of $37.5 million consist of amounts that City officials have not clas sified as nonspendable, restricted, committed, or assigned.
Nonspendable fund balances
of $0.5 million represent advances to other funds.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
15 Revenues
The following table presents the FY 2024/25 revenues from various sources, as well as the increase or decrease in these revenues over FY 2023/24.
City of Pleasanton
Revenues Classified by Source
Governmental Funds
(in millions of dollars)
FY 2024 FY 2025 Increase/(Decrease)
Revenues by Source Amount % of Total Amount % of Total Amount Percent Property taxes & special assessments 90.5 $ 51.1% 92.8 $ 48.20% 2.3 $ 2.5% Sales taxes 24.6 13.9% 25.9 13.50% 1.3 5.3% Other taxes 12.0 6.8% 12.9 6.70% 0.9 7.5% Licenses and permits 3.9 2.2% 5.0 2.60% 1.1 28.2% Fines and forfeitures 0.2 0.1% 0.2 0.10% - 0.0% Use of money & property 9.5 5.3% 12.9 6.70% 3.4 35.8% Intergovernmental 14.4 8.1% 12.0 6.20% (2.4) -16.7% Franchises 3.4 1.9% 4.0 2.10% 0.6 17.6% Fees & other charges 6.0 3.4% 11.6 6.00% 5.6 93.3% Other 12.7 7.2% 15.3 7.90% 2.6 20.5% Total 177.2 $ 100.0% 192.6 $ 100.00% 15.4 $ 8.7%
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
16 The following provides an explanation of significant changes in revenues by source in FY 2024/25.
Property taxes and special assessments increased by $2.3 million (2.5 percen t) due to market fluctuations related to property sales and/or completed new construction, as well as increased property value assessments.
Secured and Unsecured Property taxes increased by $2.5 million, while other categories of property tax, including supplemental and delinquent tax, decrease d by $0.2 million. Propert y tax revenues account for approximately 56.9 percent of total General Fund revenues, and 48.2 percent of all governmental funds.
Sales taxes increased by $1.3 million (5.3 percent) in FY 2024/25. The opening of a Costco store in FY 2024/25 mainly contributed to the year-ove r-year increase. Several sales tax categories, including State and County Pool Allocation, General Consumer Goods, and Business and Industry, also performed better than expected, resulting in a positive variance.
Other taxes increased by $0.9 million (7.5 percent) during FY 2024/25 when compared to FY 2023/24. The increase is primarily attributed to the business license cat egory. New licenses and greater gross receipts, such as the relocation of Kaiser workers from Oakland to Pleasanton and the opening of a Costco store, contributed to the year-over-year increase. Other tax categories, such as hotel tax and document transfer tax, increased slightly by $0.05 million.
Licenses and permits increased by $1.1 million (28.2 percent) primarily due to a $1.2 million increase in building permit fees derived from large development projects and increased development activities.
Development activities are cyclical, and revenue can fluctuate year to year.
Use of money and property increased by $
3.4 million (35.8 percent) mainly due to an unrealized investment gain from the City’s investment portfolio and increased interest income. Higher interest rates resulted in more favorable income.
Intergovernmental decreased by $2.4 million (16.7 percent) ma inly due to a large grant reimbursement received in FY 2023/24 that did not occur in FY 2024/25. In FY 2023/24, the City received $4.6 million in grant proceeds from the Alameda County Transportati on Commission (ACTC) for the Stoneridge at I-680 Interchange Improvements Project, but only $0.6 million was received in FY 2024/25.
Fees and other charges increased by $5.6 million (93.3 percent) primarily due to a $4.2 million increase in development fees and a $1.5 million increase in plan check fees, offset by a decre ase in charges for services.
Both development and plan check fees are directly impacted by market fluctuations and construction activity.
Certain large development projects and higher development activities resulted in one-time revenues.
Other increased by $2.6 million (20.5 percent) mainly due to the collection of $1.3 million in vehicle impact mitigation fee that took effect in FY 2024/25. In addition, interfund reimbursement revenue increased by $0.5 million from FY 2023/24 and recreation fees generated from various programs increased by $0.4 million.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
17 Expenditures
The following table presents expenditures by function in FY 2024/25 and the increase and decrease in expenditures as compared to FY 2023/24.
City of Pleasanton
Expenditures Classified by Function
Governmental Funds
(in millions of dollars)
Increase/(Decrease)
Expenditures by Function Amount % of Total Amount % of Total Amount Percent Current:
General government 25.9 $ 15.9% 27.0 $ 13.7% 1.1 $ 4.4% Public safety 64.2 39.5% 66.7 33.6% 2.4 3.8% Community development 11.5 7.1% 13.6 6.9% 2.1 18.3% Public works 30.3 18.6% 32.0 16.2% 1.7 5.6% Community activities 16.2 10.0% 15.4 7.8% (0.8) -4.9% Capital outlay 13.3 8.2% 42.4 21.4% 29.1 218.8% Debt service
Principal and interest 1.2 0.7% 1.0 0.5% (0.2) -16.7% Total 162.6 $ 100.0% 198.1 $ 100.0% 35.5 $ 21.8% FY 2024 FY 2025
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
18 The following provides an explanation of significant changes in expenditures in FY 2024/25.
Governmental expenditure increased by 21.8 percent ($35.5 million) from FY 2023/24. Increases from the prior fiscal year occurred in general government, pub lic safety, public works, and community development, while expenditures decreased in co mmunity activities. The most notable increase was due to capital outlay expenditures, which increased by 218.8 percent ($29. 1 million). This increase is due to the Costco transportation improvement project ($12.8 million), other new construction projects in traffic and transportation improvements ($10.0 million), and str eet and park improvement s ($6.3 million). General government increased by 4.4 percent ($1.1 million), mainly due to higher data processing software costs ($1.1 million) and insurance premiums ($1.4 million), offset by decreases in professional services ($1.1 million) and miscellaneous expenditures such as contract services, o ffice supplies, printing, and recruiting ($0.3 million).
Public safety increased by 3.8 percent ($2.4 million), larg ely attributable to higher salary and benefit costs.
Public works increased by 5.6 percent ($1.7 million), driven by higher water usage ($0.7 million) and increased contract services ($0.8 million). Community development increased by 18.3 percent ($2.1 million), primarily due to increases in salary and benefits ($0.4 million), professional services ($0.4 million), replacement accrual ($0.2 million), reimbursable expenditure ($0.4 million) , the Lower Income Housing Fund ($0.3 million), and nonmajor governmental fund ($0.4 million). There was a slight decrease of 4.9 percent ($0.8 million) in community activities mainly due to d ecreases in contract services, electricity expenditures, and professional services.
Major Governmental Funds
The designated major Governmental Funds in FY 2024/25 are the General Fund, the Lower Income Housing Fund, and the Miscellaneous Grants Fund.
The General Fund is the primary operating fund of the City which accounts for most City services, including general government, public safety, community development, public works, parks and community services, and library.
The City Council has allocated the City’s General Fund’s fund balance in conformance with GASB Statement No. 54.
The City maintains the fund balance consistent with its formal financial policies.
In 2023, the City Council adopted an updated reserve polic y that requires the General Fund to maintain minimum reserves at least equal to 16.7 percent of operating expenditures and target reserves equal to 20.0 percent of operating expenditures. As of June 30, 2025, General Fund reserves totaled $37.7 million, which slightly exceeds 20.0 percent of the budgeted FY 2025/26 operating expenditures.
The General Fund’s fund balance at fiscal year-end w as $66.9 million, of which $37.7 million is unassigned, $20.9 million is restricted for the PARS Section 115 Pension Trust Fund, $7.8 million is committed for the COVID Response and Recovery Program, the Strategic Plan Implementation, and the Emergency and Capital Reserves, and $0.5 million is nonspendable. The $66.9 million fund balance is a $4.9 million increase over the fund balance at the end of FY 2023/24.
Fund balance increased by $4.9 million over the prior fiscal y ear. At fiscal year-end, revenues totaled $162.9 million, an increase of $9.3 million over the prior fiscal year and expenditures totaled $166.6 m illion, an increase of $19.0 million over the prior fiscal year.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
19 Revenue increases were primarily attributable to overall increases of $4.7 million in various categories of taxes, a $3.0 million increase in development services fees, a $0.7 million increase in other revenues, and a $0.8 million increase in interest income. Large development projects such as the Avalon Bay multi-family residential project and the Workday expansion project resulted in higher building permit and plan check fees. The increase in other revenues was primarily due to higher interfund service charges and the implementation of new credit card service fees that took effect in FY 2024/25. The unrealized investment gain and higher interest rates in FY 2024/25 resulted in more interest earnings.
Expenditures increased by $19.0 million over the prior fiscal year. Personnel costs increased by $7.4 million due to cost-of-living adjustments, as well as some salary adjustments based on performance evaluations and new labor agreements. Capital outlay increased by $13.6 million, primarily due to the $12.8 million in transportation improvement costs associated with th e Costco project incurred in the J ohnson Drive Economic Development Zone (JDEDZ) area. The overall increase was offset by decreases fro m other expenditure categories, such as transportation and training for $0.8 million, repairs a nd maintenance for $0.4 million and materi als, supplies, and services for $0.8 million.
The following table summarizes the General Fund’s fund bala nce allocation, showing the beginning balances, plus changes resulting from FY 2024/25 operations and the resulting ending balances.
General Fund Reserves and Fund Balance as of June 30, 2025
Balance
June 30, 2024
Actual Additions and
Deletions
Balance
June 30, 2025
Nonspendable 500,000 $ - $ 500,000$ Restricted 19,474,282 1,392,095 20,866,377 Committed 8,099,128 (310,000) 7,789,128 Unassigned 33,881,954 3,820,521 37,702,475 Total Fund Balance 61,955,364 $ 4,902,616 $ 66,857,980 $
The Lower Income Housing Fund is funded from developer fees that are u sed to provide both rental and ownership affordable housing in the City through programs that s ubsidize rents, provide secondary financing to first time homebuyers, and provide funding to lowe r income housing developments. The Lo wer Income Housing Fee, which is paid by developers in lieu of constructing new affordable housing, amounted to $0.1 m illion in FY 2024/25, a $0.2 million decrease from FY 2023/24. Although there were larg e development projects in FY 2024/25, lower income housing fee was not applicable to some of those projects, such as tenant improvement projects. During FY2024/25, principal repayments of $0.01 milli on were received on loans issued thro ugh the City’s Pleasanton Downtown Assistance Loan Program (PDALP), as well as a loan payoff of $1.0 million for loans issued for the construction of the Promenade Apartments, a mixed-income rental housing development of very low-income units and market-rate units. Expenditures increased by $0.3 million over the prior fi scal year mainly due to the $0.4 million purchase of a Below Market Rate home to retain the property for the City’s affordable housing program. This was offset by a decrease of $0.1 million in professional services and contract services.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
20 The Miscellaneous Grants Fund is a special revenue fund used to account for various operating grant revenues, including funding for the Used Oil program, law enforcement expenditures, literacy programs, and miscellaneous City projects. Overall revenues decreased $2.4 million from the prior year, this is primarily due to a decrease of $3.8 million in grant proceeds from the Alameda County Transporta tion Commission (ACTC) for the Stoneridge at I-680 Interchange Improvements Project, as well as a decrease of $0. 6 million in proceeds from the State of California for the 2022 Permanent Local Housing Allocation Program (PLHA). This was offset by an increase of $0.8 million from the State Water Resource Control Board, for the City’s groundwater well project, as well as the recognition of $0.6 million in prior year’s unearned proceeds received from Tri-Valley Transportation Council for the Interchange 680 at Sunol Boulevard project. Overall grant expenditures decreased by $0.3 million; however, law enforcement expenditures increased by $1.3 million, due to the purchase of a new mobile command center and a crime scene vehicle.
Major Proprietary Funds
The designated major Proprietary Funds in FY 2024/25 are the Water, Sewer, Golf, and Storm Drain funds.
The Water Fund’s net position decreased by $3.2 million. Operating revenues of $42.5 million and operating expenses of $42.2 million (an increase of $8.5 million and $3.8 million, respectively, from th e prior fiscal year) resulted in an operating income of $0.3 million. Mi scellaneous revenue increased by $0.2 million, while charges for services increased by $8.4 million due to a rate increase that went into effect January 1, 2025, in addition to the increase from the prior fiscal year. The increase in operating expenses was mainly attributed to a $2. 3 million increase in water purchase costs compared to the prior fiscal year from Zone 7 and a $1.1 million increase in personnel service expenses.
Similarly, for recycled water, purchase costs from the DSRSD-EBMUD Recycled Water Authority (DERWA) increased by $0.2 million compared to the prior fiscal year.
The operating income was offset by a nonoperating loss of $4 .0 million mainly due to the loss on disposal of capital assets ($4.3 million) related to the PFAS Treatment and Wells Rehabilitation Project and several other projects that are no longer considered to be capital projects. Capital assets previously recorded for the PFAS Treatment and Wells Rehabilitation Project were deleted, as this project is no longer proceeding due to the groundwater well project with Zone 7. The Water Fund also received $0.4 million in transfers from other funds.
Water Fund Reserves
In June 2023, the City Council adopted a reserve policy requiring the Water Fund to maintain minimum reserves equal to 30.0 percent of operating expenses, target reserves of 35 .0 percent, and maximum reserv es of 40.0 percent. As of June 30, 2025, the Water Operating Fund had a combined reserved balance of $11.5 million, which equals 29.4 percent of the combined Water Operating Fund’s FY 2025/26 budgeted operating expenses. Should unforeseen and unavoidable events occur that require the expenditure of City resources beyond those provided for in the annual budget, the City Council must approve by Resolution any appropriations from unrestricted net position.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
21 The City’s water costs increased from FY 2023/24. The graphs below depict the price increases over the last ten years in Zone 7’s treated water rates per acre-foot and the total expended by the City over that period to purchase water from Zone 7. The City’s water rate ordinance requires the City to increase its water rates to offset the increase in Zone 7 water rates to remain fiscally solvent. The City continues to monitor the revenues and expenses of the Water Fund.
The Sewer Fund’s net position decreased by $0.6 million in FY 2024/25. Operating revenues of $17.6 million and operating expenses of $20.1 million (an in crease of $0.8 million and $0.4 million, respectively, from the prior fiscal year) resulted in an operating loss of $2.5 million, including non-capitalizable related expenses. This loss was offset by $1.2 million in interest income and gain on the fair value of investments and $1.2 million in the City’s joint venture investment in the Livermore-Amador Valley Water Management Agency, net of a $0.7 million loss on the disposal of capital assets. The $0.8 million increase in operating revenues is mostly due to a rate increase, as well as higher-than- anticipated utilization of sewer services. The $0.4 million increase in operating expenses was primarily attributable to increased sewer treatment fees paid to the Dublin San Ramon Services District ($0.5 million) and expenses related to personnel services ($0.4 million), offset by decreases in other expense categories such as repair and maintenance and professional services. The Sewer Fund also received $0.1 million in transfers from other funds.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
22 Similar to the Water Fund, the City’s sewer rate ordinance requires the City to increase its sewer rates to pass through the increase in DSRSD rates to remain fiscally solvent.
Sewer Operating Fund Reserves
In June 2023, the City Council adopted a reserve policy that requires the Sewer Fund to maintain minimum reserves equal to 30.0 percent of operating expenses, target reserves of 35.0 percent, and maximum reserves of 40.0 percent. As of June 30, 2025, the Sewer Operating Fund had a reserved balance of $9.3 million, which equals 48.1 percent of the Sewer Operating Fund’s FY 2025/26 budgeted operating expenses, exceeding the maximum required reserves. Excess reserves are being utilized to fund capital projects in the 2025-27 budget cycle. Should unforeseen and unavoidable events occur that require the expenditure of City resour ces beyond those provided for in the annual budget, the City Council must approve by Resolution any appropriations from unrestricted net position.
The Golf Fund’s net position decreased by $0.9 milli on in FY 2024/25, compared to a $0.8 million decrease in FY 2023/24. The transfers out of $0.5 million to repay the Ge neral Fund for golf debt repayment did not occur in FY 2024/25, except for $0.03 million. Charges for services increased by $0.2 million mainly due to increases in green fees received from more rounds of golf being played. Opera ting expenses increased by $0.7 million primarily due to increases in water expenses and the aforementioned contributio n to the internal service fund, offset by a decrease in depreciation/amortization.
The Storm Drain Fund’s net position increased by $13.2 million in FY 2024/25 mainly due to transfers in from the General Fund for $0.6 million and the Miscellaneous Capital Improvement Program Fund for $14.0 million to support operations and capital projects. As a r esult of these transfers, the unrestricted net position increased significantly compared to FY 2023/24.
GENERAL FUND BUDGETARY HIGHLIGHTS
The following table displays the General Fund’s budget to actual variances for FY 2024/25. The Original Budget was established in May 2024 when the City adopted the Mid- term budget for fiscal year 2024/25. The Modified Budget was adopted in February 2025 when the City Council a pproved the FY 2024/25 Mid-year Budget. Actual revenues were greater than the final budget by $9.7 million or 6.3 percent and expenditures were less than final budget by $0.7 million or 0.4 percent.
The final budget for Capital Outlay was higher than the original budget mainly reflecting transportation improvement costs incurred in the Johnson Drive Economic Developmen t Zone (JDEDZ); Costco fronted the costs for the improvements in the area. As a result, the budget for the issuance of loan was amended for $12.8 million.
The fund balance of $66.9 million is an increase of $4.9 million over FY 2023/24. At fiscal year-end, the City Council approved an allocation of available funds to the Streets CIP Fund for $2.4 million.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
23 General Fund budget-to-actual variances for FY 2024/25 are reflected in more detail in the Required Supplementary Information. The following table is a summary of these variances:
General Fund FY 2024/25 Budgetary Comparison
Original Budget Final Budget Actual Amount
Variance from Final
Budget
Revenues 151,238,775 $ 153,186,340 $ 162,851,585 $ 9,665,245 $ Expenditures (153,929,504) (167,294,146) (166,573,930) 720,216 Other Financing Sources (Uses):
Transfers in 5,943,780 1,271,780 1,365,780 94,000 Transfers out (7,728,578) (6,956,577) (7,139,046) (182,469) Issuance of loan 12,758,240 12,758,240 - Inception of lease and subscription liability - 689,700 1,639,987 950,287 Net change in fund balance (4,475,527) $ (6,344,663) $ 4,902,616 $ 11,247,279 $
Actual General Fund revenues exceeded final budget estimates by $9.7 million in FY 2024/25. Actual revenues exceeded budgeted amounts most notably in Interest Inco me ($3.9 million) and Development Services Fees ($3.7 million), while revenues were less than anticipated in Property Tax ($1.3 million) and Department Services Fees ($0.3 million). The increase in interest income over budget was mainly due to GASB 31 adjustment to record changes in unrealized investment gain/fair market value of the City’s investments at fiscal year-end. Higher development services fees are mainly due to large developm ent projects and increased development ac tivities in FY 2024/25. A cooler real estate market resulted in lower property tax revenue. Revenue variances are summarized below:
General Fund FY 2024/25 Revenues Budgetary Comparison
Original Budget Final Budget Actual Amount
Variance from Final
Budget
Property Tax 92,942,000 $ 93,920,500 $ 92,605,525 $ $ (1,314,975) Sales & Use Tax 25,130,000 24,935,000 25,286,992 351,992 Hotel & Motel Tax 4,900,000 5,364,000 5,337,470 (26,530) Business License Tax 5,750,000 5,750,000 6,706,963 956,963 Other Taxes 1,440,000 1,440,000 1,478,455 38,455 Franchise Tax 3,185,000 3,440,000 3,534,124 94,124 Development Services Fees 5,563,500 5,413,500 9,154,624 3,741,124 Recreation Fees 5,027,934 5,027,934 4,958,519 (69,415) Department Service Fees 1,704,100 1,704,100 1,446,175 (257,925) Other Revenues 4,462,241 4,575,606 6,516,968 1,941,362 Grants & Intergovernmental 544,000 632,000 959,054 327,054 Interest Income 590,000 983,700 4,866,715 3,883,015 Total $ 151,238,775 $ 153,186,340 $ 162,851,585 $ 9,665,245
Actual General Fund expenditures of $166.6 million were less than the fi nal budget estimates by $0.7 million (0.4 percent). The $1.1 million savings in th e Personnel Expenses category are primarily due to greater than anticipated levels of vacancies in several departments, including Library & Recreation, Public Works, Community Development, and Finance. The $0.4 million savings in the Repairs a nd Maintenance category reflect lower building maintenance costs due to adjustments to custodial services. Actual expenditures for Capital Outlay exceeded budget by $1.1 million, primarily due to the acquisition of a cloud-based software subscription for the Permit Center.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
24 General Fund FY 2024/25 Expenditures Budgetary Comparison Original Budget Final Budget Actual Amount
Variance from Final
Budget
Personnel Expenses 110,463,046$ 110,473,547 $ 109,348,513 $ (1,125,034) $ Transportation and Training 5,003,893 5,003,893 4,963,993 (39,900) Repairs and M aintenance 2,839,244 2,839,244 2,392,688 (446,556) M aterial, Supplies and Services 35,005,391 34,074,322 33,801,452 (272,870) Capital Outlay 617,930 14,064,370 15,129,647 1,065,277 Debt Service - 838,770 937,637 98,867 Total 153,929,504$ 167,294,146 $ 166,573,930 $ (720,216) $
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
The City’s investment in capital assets for governmental and business-type activities as of June 30, 2025, was $680.5 million (net of accumulated depreciation/amortization). This investment in capital assets includes land, right-of-ways, public art, construction-in-progress, buildings, improvements other than buildings, machinery and equipment, vehicles, and infrastructure, and intangible assets associated with l ease assets and subscription assets. The City’s investment in capital assets (net of accumulated depreciation/amortizati on) increased by $12.8 million from the prior fiscal year.
Major capital asset changes during the fiscal year were as follows:
Governmental activities net capital assets increased by $19.3 million in FY 2024/25. Total capital asset additions and retirements were $42.8 million and $8.1 million, respectively. In addition, current year depreciation/amortization expense additions and retirements were $16.7 million and $1.4 million, respectively.
Notable capital assets activity included:
Additions to construction in progr ess totaling $35.2 million in FY 2024/25 were related to the Capital Improvement Program. They included: the Costco Tr ansportation Improvement Project ($12.8 million), annual street projects ($7.5 million), the Johnson Drive Economic Development Zone (JDEDZ) Project ($3.4 million), the Hopyard and Owens Intersection Improvement Project ($3.1 million), the West Las Positas Boulevard Multimodal Reconstruction Project ($1.6 million), Lions Ways ide Park Improvement Project ($1.5 million), the Biannual Traffic Signal In stallation Project ($1.1 million), the I-680 at Sunol Boulevard Interchange Modernization Project ($1.0 million), the City Groundwater Supply Project ($0.8 million), various parks projects ($0.7 million), the Library Lighting Improvements Project ($0.6 million), Foothill High School Southbound Left Turn Project ($0.5 million), Annual Curb and Gutter Resurfacing Projects ($0.4 million), and various other projects such as street LED light conversion, fire alarm notification system and soundwall repair ($0.2 million).
The following completed construction projects totali ng $4.5 million were tran sferred to various asset projects: the Library Lighting Improvements Project ($1.1 million), Annual Curb and Gutter for Street Resurfacing Projects ($0.7 million), the Foothill High School Southbound Left Turn Project ($0.5 million), the Ken Mercer Sports Park Skatepark Project ($0.4 million), the Annual Intersection Improvements Project ($0.3 million), the Dublin Canyon Road Wide ning Project ($0.3 million), the Santa Rita Road at Valley Avenue Intersection Project ($0.3 million), th e Century House Roof Replacement Project ($0.2 million), the Charging Stations Project as part of th e Climate Action Plan Implementation Project ($0.2 million), the Valley Trails Park Toddlers Playground Pr oject ($0.2 million), the Traffic Signal Detection Upgrade Project ($0.1 million), the Foothill Road Si dewalk Improvement Project ($0.1 million), and the Annual Playground Renovations Project ($0.1 million).
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
25 Machinery and equipment additions totaling $1.2 m illion included a backhoe loader ($0.2 million), and various items such as solar panels, mini-caliber robot , woodchipper, mowers, forklifts, and trailers ($1.0 million).
Vehicle additions totaling $4.4 million include three Type 6 Fire Engines ($0.9 million combined total), a mobile command vehicle ($0.8 million), a crime scene i nvestigation vehicle ($0.5 million), three freight liners ($0.6 million combined total), a mobile library outreach vehicle ($0.4 million), a street sweeper ($0.3 million), and various other city vehicles ($0.9 million).
Additions to intangible capital assets totaling $1.7 milli on were related to software subscriptions, which include $1.3 million for Accela Cloud to provide a S aaS multi-solution to the City, $0.2 million for Environmental Systems Research Institute, a GIS ma pping software, and $0.2 million for other software subscriptions.
There were a number of construction in progress projects that were terminated or no longer considered capital in nature due to changes in project scope , totaling $6.5 million during the fiscal year. Various project categories include streets, sidewalks, bicycle and pedestrian pathways, curb and gutter, buildings and facilities, traffic buttons, irrigation systems, playgrounds, etc.
Business-type activities net capital assets decreased overall by $6.5 million in FY 2024/25, mainly due to the normal depreciation of assets, the retirement of assets a nd an adjustment to the subscription amortization.
Total capital asset additions and retirements were $8.3 million and $6.4 million, respectively. In addition, current year depreciation/amortization expense additions and retirements were $9.5 million and $1.1 million, respectively. Notable capital assets activity included:
Additions to construction in progress projects totale d $7.6 million in FY 2024/ 25 were related to the Capital Improvement Program. They included: the Near-Term Water Improvement Project ($6.7 million), the Bernal Avenue 18-inch Water Main (F-4 Line) & Turnout No. 1 Improvements Project ($0.3 million), the Augustin Bernal Trail Creek Crossing Culverts and Retaining Wall ($0.2 million), Annual Storm Repair/Replacement Projects ($0.1 million), the East Vineyard Detention Pond Outfall Repairs ($0.1 million), and miscellaneous small water, sewer, and storm drain related projects ($0.2 million).
The following completed construction in progress pr ojects totaling $4.8 million and were added to the City’s infrastructure during the fiscal year: the Bernal Avenue 18-inch Water Main (F-4 Line) & Turnout No. 1 Improvements Project ($2.0 million), the Lift Station 7 and Lift Station 8 Ventilation and Lighting Improvements ($1.1 million), the Annual Sewer Collection System Improvements ($0.8 million), the East Amador Lift Station (EALS) ($0.6 million), and the Supervisory Control and Data Acquisition (SCADA) Improvements Systems Project ($0.3 million).
The following construction in progress projects were terminated or no longer considered capital in nature due to the changes in project scope, totaling $4.7 million during the fiscal year: $3.9 million total for water related projects, PFAS Treatment and Wells Rehabilitation ($2.2 milli on), Water System Management Plan ($0.7 million), Water Capacity Evaluation ($0. 4 million), Water Supply Alternatives ($0.3 million), Risk and Resilience Assessment ($0.2 million), and various water related projects ($0.1 million), $0.7 million for Sewer related projects, Sewer Capacity Evaluation ($0.5 million), EALS/East Amador Relief Sewer (EARS) Pump Station Pipeline ($0.1 million), and various sewer related projects ($0.1 million), and $0.1 million for Annual Storm Drain projects.
For the government-wide financial statements presentation, all depreciable capital assets are depreciated/amortized from their acquisition date over their useful lives. Gove rnmental Fund financial statements report capital asset purchases as expenditures.
City of Pleasanton
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2025
26 Capital assets for the governmental and business-type activities are presented in the following table to illustrate changes in FY 2024/25.
Governmental
activities
Business-type
activities Total
Increase/
(Decrease)
2024 2025 2024 2025 2024 2025 % Change
Land 248.9 $ 248.9 $ 14.5 $ 14.7 $ 263.4 $ 263.6 $ 0.1% Right-of-ways 36.3 36.3 - - 36.3 36.3 0.0% Public Art 0.9 0.9 - - 0.9 0.9 0.0% Construction in progress 18.7 42.9 13.0 11.2 31.7 54.1 70.7% Buildings 61.7 61.0 16.8 15.8 78.5 76.8 -2.2% M achinery & equipment 10.0 10.1 6.2 5.9 16.2 16.0 -1.2% Improvements other than buildings 24.1 22.4 2.5 1.0 26.6 23.4 -12.0% Vehicles 2.9 6.0 0.9 0.8 3.8 6.8 78.9% Infrastructure 106.3 99.9 101.5 100.1 207.8 200.0 -3.8% Lease assets 0.2 0.1 0.2 0.2 0.4 0.3 -25.0% Subscription assets 1.3 2.1 0.8 0.2 2.1 2.3 9.5% Total 511.3$ 530.6 $ 156.4 $ 149.9 $ 667.7 $ 680.5 $ 1.9% City of Pleasanton
Capital Assets
(net of depreciation and amortization, in millions of dollars)
Additional information about the C ity's capital assets can be found in Note 7 in the Notes to Basic Financial Statements.
Debt Administration
Governmental activities debt increased by $12.3 million to $15.5 million in FY 2024/25, including the Costco loan reimbursement of $12.8 million. The L ong Term Debt Outstanding table belo w also includes subscription liabilities for an improved debt presentation.
Financed purchase – debt related to leased vehicles decreased by $0.2 million, and the balance at year-end was $0.7 million.
During the year, the City made an annual payment for th e Equipment Finance, a Pumper Type 1 Fire Engine for $0.2 million, bringing the remaining balance to $0.9 million.
During the year, the City made the annual payment on the HUD Section 108 loan of $0.05 million to bring the remaining balance to $0.5 million.
There was no payment due in FY 2024/25 for the Sun Ri dge Systems’ computer-aided dispatch and records management system. The next payment is due in FY 2025/26. The balance remains at $0.7 million.
The new Costco loan is associated with the transportation improvemen t costs incurred in the Johnson Drive Economic Development Zone (JDEDZ) area. Costo fronted the costs for this project. The City will repay the loan using 40% of the annual sales tax revenue from the Costco store, with a 1.5% simple annual interest rate.
The City’s share of obligation at June 30, 2025, was $12.8 million. There is no fixed payment schedule.
During the year, the City made the annual payment of $0.1 million for the lease liabilities related to the printing service agreement with UBEO Business Services, bringing the remaining balance to $0.1 million.