13 1. Pay the City Impact Fees and Other City Fees, as such fees are defined in Section 3.4 below, at the time of issuance of a building permit for each residential unit in the amounts determined by Section 3.4 below.
2. Subject to any applicable exception(s) under state law, comply with the Building Code requirements in effect on a City-wide basis at time of complete building plan check submittal.
3. Comply with construction and technical design standards or specifications for public improvements that are applicable City-wide at time of complete Subdivision Improvement Plan submittal. In the event the Subdivision Improvement Plan expires, and no construction activities thereunder have been started, the City Engineer may, at his/her discretion, require the Subdivision Improvement Plan to be updated to reflect the current technical design standards or specifications for public improvements at the time of renewal or extension.
4. Comply with changes in City laws, regulations, plans or policies applicable City-wide, the terms of which are found by the City Council, based on substantial evidence, to be (1) required as a result of a specific and identifiable issue in each case that is presently unknown or unforeseeable that would otherwise have an immediate and substantially adverse risk on the physical health and safety of the public, and (2) based on further written findings by the City Council, and transmitted to Developer, specifically identifying, based on objective and quantifiable evidence in the official record, the precise nature and extent of the dangerous or hazardous circumstance(s) requiring such condition or denial or change in Applicable Law, why there are no feasible mitigation or alternatives to the imposition of such condition or denial or changes in the law, and how such condition or denial or new law would alleviate the dangerous or hazardous circumstance (“Public Health and Safety Exception”).
5. Comply with a change in City law, regulations, plans or policies that is specifically mandated by state or federal law pursuant to Section 2.3 above.
6. Following any subsequent environmental review, comply with required mitigation measures.
c. The Parties agree that the obligations set forth in this Agreement are conditioned upon LAFCO approval of the annexation of the Project Site into the City of Pleasanton. Upon approval of the Project Approvals by City, City agrees to act in good faith, in collaboration with Developer, to support and timely process the annexation application with LAFCO. Developer shall be responsible for all costs associated with the annexation, including, but not limited to, preparation of the LAFCO application, LAFCO application submittal fees, and any other City-related annexation fees. Developer shall prepare the application for annexation of the Project Site for City’s review and approval; thereafter, City and Developer shall work in good faith to finalize the annexation application. City shall formally submit the final annexation application to LAFCO no later than fifteen (15) days from the Effective Date of this Agreement, unless extended by Developer as reflected in writing, and provided that, at the Effective Date, City has received all information, exhibits, attachments and documentation necessary to support the application from Developer. Parties shall work cooperatively to attempt to complete annexation of the Project Site within than six (6) months from the Effective Date of this Agreement, unless Developer agrees to extend this timeline as documented in writing to City.
14 Section 3.4 City Development Impact Fees and Exactions; TIF Credits.
Notwithstanding any provision herein to the contrary and in accordance with and subject to this Article 3, during the Term, Developer shall be responsible for only those types and amounts of City development impact fees and utility connection fees in effect on December 17, 2024 in accordance with City Council Resolution No. ____ as set forth in attached DA Exhibit G, as the Project is considered to be “already in process” under said Resolution, subject to those annual adjustments pursuant to the ENR Construction Cost Index for San Francisco in effect at the time of the building permit issuance for each residential unit within the Project. Included within attached DA Exhibit H is a complete list of the types and amounts of City development impact fees and utility connection fees applicable to the Project pursuant to this Section 3.4 (collectively, “City Impact Fees”). In addition to City Impact Fees, Developer shall also pay all other applicable fees and exactions, such as building permit and other development-related fees applicable to the Project and collectible by City (for City’s own account or on account of other agencies as set forth in Section 3.7) (all such other fees collectible by City for its own account are referred to collectively as “Other City Fees”). An estimate of all City Impact Fees as calculated as of the Effective Date is attached as DA Exhibit H. Other City Fees to be paid by Developer shall be those fees which are in effect at the time of building permit issuance for each residential unit within the Project except as otherwise allowed by state law. The obligations set forth in this Section 3.4 shall be subject to fee credits due to Developer as detailed in DA Exhibit D.
Section 3.5 Inclusionary Housing. Developer shall enter into the Regulatory Affordable Housing Agreement (“AHA”) in substantially the same form as DA Exhibit B, which obligates Developer to construct a total of forty-eight (48) deed-restricted JADUs within the Project Site for purposes of satisfying City’s IZO obligations. After the construction of said JADUs, the rental of same shall be governed by the Regulatory AHA, as further detailed in DA Exhibit B and consistent with Pleasanton Municipal Code Chapter 17.44.
Section 3.6 Building Permit and Processing Fees.
a. Building Permit. Subject to Section 3.4 above, Developer shall pay to City building permit fees (which fall under the category of Other City Fees) in accordance with City’s adopted fee schedule in effect at the time Developer submits the applications for building permits.
b. Processing Fees. Developer shall pay to City its reasonable application processing fees (which fall under the category of Other City Fees) for the Project in accordance with City’s adopted fee schedule in effect at the time Developer submits the applications for Subsequent Approvals (defined in Section 4.4 below).
Section 3.7 Other Agency Fees. The Parties acknowledge and agree that the Project will be subject to applicable fees and fee estimates collectible by City on account of the Dublin San Ramon Services District (“DSRSD”), Zone 7 for sewer and water connections, respectively, and the Tri-Valley Transportation Development Fee on account of the Tri-Valley Transportation Council (“TVTC”), for the Project. The Parties acknowledge that DSRSD, Zone 7 and TVTC, and not City, control the amount and timing of payment of such fees. Developer shall pay to City the amount of such DSRSD, Zone 7, and TVTC fees then in effect when payment is due or any such other amount that may be agreed upon in writing by Developer and DSRSD, Zone 7, or TVTC.
15 ARTICLE 4 City Obligations
Section 4.1 Availability of Public Services. To the maximum extent permitted by law and consistent with its authority under applicable enabling laws, City shall reserve and allocate capacity and/or supply for sewer, water and any other utilities or services in an amount sufficient to serve the Project.
Section 4.2 Developer’s Right to Rebuild. City agrees that Developer may renovate or rebuild the Project Site within the Term of this Agreement should it become necessary due to natural disaster, or changes in seismic requirements. Any such renovation or rebuilding shall be subject to the square footage and height limitations vested by this Agreement, and shall comply with the Project Approvals, any Subsequent Approvals, the building codes existing at the time of such rebuilding or reconstruction (except as otherwise provided under state law), and the applicable requirements of CEQA.
Section 4.3 Processing Subsequent Approvals and Subsequent Entitlements. “Subsequent Approvals” shall mean, collectively, those certain other land use approvals, entitlements, and permits other than the Project Approvals which are necessary for, and consistent with, the development of the Project on the Project Site. The Subsequent Approvals may include, without limitation, the following: amendments of the Project Approvals, lot line adjustments and/or parcel maps or final subdivision maps, improvement agreements, grading permits, building permits, encroachment permits, public access easements, sewer and water connection permits, and certificates of occupancy.
Section 4.4 Regulation by Other Public Agencies. Other public agencies not within the control of City may possess authority to regulate aspects of the development of the Project Site separately from or jointly with City, and this Agreement does not limit the authority of such other public agencies. In the event any state or federal resources agency (e.g., California Department of Fish and Wildlife, U.S. Fish and Wildlife Service, U.S. Army Corps of Engineers, Regional Water Quality Control Board/State Water Resources Control Board, Bay Area Air Quality Management District), in connection with its final issuance of a permit or certification for all or a portion of the Project, imposes requirements that require modifications to the Project, then at Developer’s discretion, the Parties shall use their best efforts to incorporate such changes into the Project; provided, however, that if Developer appeals or challenges any such permit requirements, then the Parties may defer such changes until the completion of such appeal or challenge.
Section 4.5 Other Government Permits. At Developer’s sole discretion and in accordance with Developer’s construction schedule (also within Developer’s sole discretion), the Parties acknowledge and agree that Developer will need to apply for such other permits and approvals as may be required by other governmental or quasi-governmental entities in connection with the development of, or the provision of services to, the Project. City shall use reasonable efforts to assist Developer in obtaining such permits and approvals, including, at the reasonable request of Developer, attending meetings with other governmental or quasi- governmental entities, providing documents reasonably requested by other governmental or quasi-governmental entities, and assisting Developer, at Developer’s sole cost and expense, in implementing mitigation measures or other measures required by any such entity, and may, in its sole discretion, from time to time at the request of Developer, enter into binding agreements with any such entity as may be necessary to ensure the timely availability of such permits and approvals.
16 ARTICLE 5 Mortgagee Protection
Section 5.1 Mortgagee Protection. This Agreement shall not prevent or limit Developer in any manner, at Developer’s sole discretion, from encumbering the Project Site or any portion thereof or any improvement thereon by any mortgage, deed of trust or other security device securing financing with respect to the Project Site (“Mortgage”). This Agreement shall be superior and senior to any lien placed upon the Project Site or any portion thereof after the date of recording this Agreement, including the lien of any Mortgage. Notwithstanding the foregoing, no breach hereof shall defeat, render invalid, diminish or impair the lien of any Mortgage made in good faith and for value, but all of the terms and conditions contained in this Agreement shall be binding upon and effective against and inure to the benefit of any person or entity, including any deed of trust beneficiary or mortgagee (“Mortgagee”) who acquires title to the Project Site, or any portion thereof, by foreclosure, trustee’s sale, deed in lieu of foreclosure, or otherwise.
Section 5.2 Mortgagee Not Obligated. Notwithstanding the provisions of Section 5.1 above, no Mortgagee shall have any obligation or duty under this Agreement to perform Developer’s obligations or other affirmative covenants of Developer hereunder; except that the Mortgagee and its successor shall have no vested right to develop the Project without fully complying with the terms of this Agreement and executing and delivering to City, in a form and with terms reasonably acceptable to City, an assumption agreement of Developer’s obligations hereunder. Upon subsequent transfer from a Mortgagee to a third party, the third party shall be subject to all the terms of this Agreement, including, but not limited to, the assignment and assumption provisions of this Agreement.
Section 5.3 Notice of Default to Mortgagee; Right of Mortgagee to Cure. If City receives a notice from a Mortgagee requesting a copy of any Default Notice given to Developer hereunder and specifying the address for service thereof, then City shall deliver to such Mortgagee, concurrently with service thereon to Developer, any notice given to Developer with respect to any claim by City that Developer has committed a default, and if City makes a determination of noncompliance hereunder, City shall likewise serve notice of such noncompliance on such Mortgagee concurrently with service thereof on Developer. Each Mortgagee shall have the right (but not the obligation) during the same period available to Developer to cure or remedy, or to commence to cure or remedy, the event of default claimed or the areas of noncompliance set forth in City’s notice, for a period of sixty (60) days after the Mortgagee receives the written notice of noncompliance, or any longer period as is reasonably necessary, not to exceed one hundred twenty (120) days, to remedy such items of non- compliance, by mutual consent of City and the Mortgagee provided that said Mortgagee shall continuously and diligently pursue the remedy at all times until the item of non-compliance is cured.
Section 5.4 No Supersedure. Nothing in this Article 5 shall be deemed to supersede or release a Mortgagee or modify a Mortgagee’s obligations under any subdivision improvement agreement or other obligation incurred with respect to the Project outside this Agreement, nor shall any provision of this Article 5 constitute an obligation of City to such Mortgagee, except as to the notice requirements of Section 5.3 above.
Section 5.5 Technical Amendments to this Article 5. City agrees to reasonably consider interpretations and/or amendments or modifications to the provisions of this Agreement that are required by lenders for the acquisition and construction of the improvements on the Project Site or any refinancing thereof and to otherwise cooperate in good faith to
17 facilitate Developer’s negotiations with lenders. City agrees upon request, from time to time, to meet with Developer and with representatives of such lenders to negotiate in good faith any such request for interpretation or modification. City shall not unreasonably withhold, delay or condition its consent to any such requested interpretation or modification provided such interpretation or modification is consistent with the intent and purposes of this Agreement, and all Applicable Laws and applicable New City Laws (if any).
ARTICLE 6 Insurance, Indemnity, and Cooperation in the Event of Legal Challenge
Section 6.1 Insurance Requirements. Prior to commencement of construction activities (excluding grading that is occurring prior to the Effective Date pursuant to County permits) and through completion of all construction activities for the Project, Developer shall procure and maintain, or cause its contractor(s) to procure and maintain, commercial general liability insurance at least as broad as Insurance Services Office (ISO) CG 00 01 for at least Two Million Dollars ($2,000,000) per occurrence, Four Million Dollars ($4,000,000) general aggregate, and Two Million Dollars ($2,000,000) products and completed operation aggregate for bodily injury and property damage. The policy shall include a per project or per location general aggregate endorsement. If a per project/location endorsement is not available, the limit for the general aggregate shall be doubled. The policy shall provide that City, its officials, officers, employees, and agents are named additional insureds as evidenced by an additional insured endorsement using ISO form CG 20 10 (or equivalent) for ongoing operations and satisfactory to the City Attorney. The policy shall allow and be endorsed primary insurance for work performed by Contractor and its subcontractors, and that no other insurance or self- insurance effected by City or other additional insured will be called on to contribute to or cover a loss covered thereunder. Coverage shall provide and be endorsed to include a waiver of subrogation in favor of the City and its officials, officers, employees, and agents.
Developer's insurance shall be placed with insurers with a current A.M. Best's rating of no less than A-: VII or a rating otherwise approved by City in its sole discretion. The certificate of insurance shall contain a statement of obligation on the part of the carrier to notify City of any material change, cancellation or termination of the coverage at least thirty (30) days in advance of the effective date of any such material change, cancellation or termination (ten (10) days advance notice in the case of cancellation for non-payment of premiums) where the insurance carrier provides such notice to Developer.
Section 6.2 Indemnity and Hold Harmless. Developer shall indemnify, defend (with counsel reasonably acceptable to City) and hold harmless City Parties from and against any and all present and future Claims, including Claims for any bodily injury, death, or property damage, resulting directly or indirectly from the development or construction of the Project, compliance with the terms of this Agreement, including the construction and/or provision of public or community benefits, and/or from any other acts or omissions of Developer under this Agreement, whether such acts or omissions are by Developer or any of Developer's contractors, subcontractors, agents or employees, except to the extent such Claims arise from the active negligence or willful misconduct of any City Party. The Parties acknowledge that the indemnification obligations set forth in this Section 6.2 are intended to cover the possibility that, among other things, a Claim may be brought after construction is completed and the Project is occupied under circumstances, such as, for example, where a third-party brings a Claim against City in connection with allegations of harm associated with City’s approval of Project improvements. The Parties further acknowledge that this Section 6.2 includes any and all present and future Claims arising out of Developer's or its contractors' obligations to comply with
18 any applicable State Labor Code requirements and implementing regulations of the Department of Industrial Relations pertaining to "public works" (collectively, "Prevailing Wage Laws") during construction of the Project, including all Claims that may be made by contractors, subcontractors or other third party claimants pursuant to Labor Code sections 1726 and 1781.
Developer's obligations under this Section 6.2 shall survive the expiration or earlier termination of this Agreement.
Section 6.3 Cooperation. City and Developer shall cooperate in the defense of any court action or proceeding instituted by a third party or other governmental entity or official challenging the validity of any provision of this Agreement, or the Project Approvals ("Litigation Challenge"), and the Parties shall keep each other informed of all developments relating to such defense, subject only to confidentiality requirements that may prevent the communication of such information. To the extent Developer desires to contest or defend such Litigation Challenge, (a) Developer shall take the lead role defending such Litigation Challenge and may, in its sole discretion, elect to be represented by the legal counsel of its choice, with the costs of such representation, including Developer's administrative, legal and court costs, paid by Developer; (b) City may, in its sole discretion, elect to be separately represented by the legal counsel of its choice in any such action or proceeding with the costs of such representation, including City's administrative, legal, and court costs and City Attorney oversight expenses, paid by City; and (c) Developer shall indemnify, defend, and hold harmless City Parties from and against any damages, attorneys' fees or cost awards, including attorneys' fees awarded under Code of Civil Procedure section 1021.5, assessed or awarded against City by way of judgment, settlement, or stipulation. Any proposed settlement of a Litigation Challenge shall be subject to Developer's and City's approval not to be unreasonably withheld, conditioned or delayed. If the terms of the proposed settlement would constitute an amendment or modification of this Agreement or any Project Approvals, the settlement shall not become effective unless such amendment or modification is approved by Developer and City in accordance with Applicable Law, and City reserves its full legislative discretion with respect to any such City approval. If Developer opts not to contest or defend such Litigation Challenge, City shall have no obligation to do so. Developer's obligations under this Section 6.3. shall survive the expiration or earlier termination of this Agreement.
The obligations of City and Developer pursuant to this Section 6.3 shall be suspended as provided as set forth above in the event the Project Approvals are challenged by a referendum petition, or in the event Ordinance _____ adopting this Agreement is challenged by a referendum petition.
ARTICLE 7 Miscellaneous
Section 7.1 Amendments. The Agreement may be amended in writing by the Parties, by mutual agreement, consistent with the procedures set forth in the Development Agreement Statute, as it is amended from time to time.
Section 7.2 No Damages Relief. The Parties acknowledge that neither Party would have entered into this Agreement if it were exposed to damages claims by the other Party for any breach of this Agreement. The Parties agree and recognize that, as a practical matter, it may not be possible to determine an amount of monetary damages which would adequately compensate Developer for its investment of time and financial resources in planning to arrive at the kind, location, intensity of use, and improvements for the Project, nor to calculate the consideration City would require to enter into this Agreement to justify the exposure. As such, the Parties agree that in no event shall either Party be entitled to recover damages against the other Party for breach of this Agreement. To the extent permitted by law, specific enforcement
19 of this Agreement, including, but not limited to, specific performance of Developer’s payment obligations set forth in Section 3.2, is the proper and desirable remedy.
Section 7.3 Defaults. Any failure by either Party to perform any term or provision of this Agreement, which failure continues uncured for a period of thirty (30) days following written notice of such failure from the other Party (unless such period is extended by mutual written consent), shall constitute a default under this Agreement. Any notice given pursuant to the preceding sentence (“Default Notice”) shall specify the nature of the alleged failure and, where appropriate, the manner in which said failure satisfactorily may be cured. If the nature of the alleged failure is such that it cannot reasonably be cured within such 30-day period, then the commencement of the cure within such time period, and the diligent prosecution to completion of the cure thereafter, shall be deemed to be a cure within such 30- day period. Upon the occurrence of a default under this Agreement, the non-defaulting Party may institute legal proceedings to enforce the terms of this Agreement or, in the event of a material default, terminate this Agreement. If the default is cured, then no default shall exist and the noticing Party shall take no further action. In the event City or Developer defaults under the terms of this Agreement, the non-defaulting party shall have all rights and remedies provided under law. No default hereunder shall render invalid the lien of any deed of trust, Mortgage or security interest in or upon the Project Site or any improvements or fixtures at any time located thereon. Notwithstanding anything to the contrary in the foregoing, if more than one Developer has obtained rights and assumed obligations hereunder as a result of an Assignment pursuant to Section 7.8 below, then provisions under this Section 7.3 shall apply only to the extent those rights and obligations so assumed by a Developer are implicated with respect to a default hereunder.
Section 7.4 Periodic Review.
a. Conducting the Periodic Review. Throughout the Term of this Agreement, at least once every twelve (12) months following the Effective Date, City shall review the extent of good-faith compliance by Developer with the terms of this Agreement. This review (the “Periodic Review”) shall be conducted by the Director of Community and Economic Development or his/her designee and shall be limited in scope to compliance with the terms of this Agreement pursuant to California Government Code § 65865.1. b. Good Faith Compliance. During the Periodic Review, the Director of Community and Economic Development shall review Developer’s good-faith compliance with the terms of this Agreement. At the conclusion of the Periodic Review, if the Director of Community and Economic Development finds, based on substantial evidence in the record, that Developer has not complied in good faith with the terms and conditions of this Agreement, the Director shall notify Developer in writing of the City’s findings. Developer shall have ten (10) business days from the date of the City’s notice to respond to City’s evaluation of Developer’s performance. Within ten (10) business days of receipt of the Developer’s response, the Director of Community Development shall provide a written determination, based on findings, as to whether Developer has complied in good faith with the terms and conditions of this Agreement.
The decision of the Director of Community and Economic Development shall be appealable to the City Council by Developer. If the Director of Community and Economic Development finds and determines that Developer has not complied with such terms and conditions, the Director of Community and Economic Development may recommend to the City Council that it terminate or modify this Agreement by giving notice of its intention to do so, in the manner set forth in California Government Code § 65867 and § 65868, although the City Council shall be the final decision maker in this regard subject to Developer’s ability to challenge this decision in court.
20 The costs incurred by City in connection with the Periodic Review process described herein shall be the responsibility of the Developer.
Section 7.5 California Law. This Agreement shall be construed and enforced in accordance with California Law.
Section 7.6 Severability. If any term or provision of this Agreement, or the application of any term or provision of this Agreement to a particular situation, is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining terms and provisions of this Agreement, or the application of this Agreement to other situations, shall continue in full force and effect unless amended or modified by mutual consent of the parties.
Section 7.7 Covenants Running with the Land. All of the provisions contained in this Agreement shall be binding upon and inure to the benefit of the Parties and their respective heirs, successors and assigns, representatives, and all other persons acquiring all or a portion of the Project Site, or any interest therein, whether by operation of law or in any manner whatsoever, including, without limitation, purchasers or ground lessees thereof. All of the provisions contained in this Agreement shall be enforceable as equitable servitudes and shall constitute covenants running with the land pursuant to California law including, without limitation, California Civil Code Section 1468.
Section 7.8 Assignment of Interests, Rights and Obligations. Because of the necessity to coordinate development of the entirety of the Project Site pursuant to the Project Approvals and plans for the Project, particularly with respect to the provision of public benefits as provided in Article 3, certain restrictions on the right of Developer to assign or transfer its interest under this Agreement with respect to the Project Site, or any portion thereof, are necessary in order to assure the achievement of the goals, objectives and public benefits of the Project and this Agreement. Developer agrees to and accepts the restrictions set forth in this Section 7.8 as reasonable and as a material inducement to City to enter into this Agreement.
The Project Site, as well as the rights and obligations of Developer under this Agreement, may not be transferred or assigned, in whole or in part, by Developer to a successor in interest, assignee, or transferee (collectively, “Transferee”), without City’s consent, which consent shall not be unreasonably withheld, conditioned or delayed.
No such assignment or transfer shall be valid until and unless the following occur:
a. Developer, or any successor Transferor, gives thirty (30) days’ prior written notice to City of its intention to assign or transfer any of its interests, rights or obligations under this Agreement with respect to all or a portion of the Project Site, and a disclosure of the identity of the Transferee, including copies of the articles of incorporation in the case of corporations and the names of individual partners in the case of partnerships. Any failure by Developer or any successor Transferor to provide the notice shall be curable in accordance with the provisions in Section 7.3 above. Any such notice of proposed assignment or transfer shall include reasonable evidence of the proposed assignee’s experience as a reputable developer of projects of similar size and complexity as the portion of the Project being transferred and the proposed assignee has the financial resources to meet its obligations under the proposed assignment. If the City Manager does not take action on this request within this 30-day period, the request shall be deemed denied and Developer shall have the right to appeal this denial to the City Council, based on the evidence previously submitted (and any other evidence Developer elects to provide or that is requested by the City), with such appeal being heard at the next available City Council meeting where proper notice can be given. If the City
21 Manager denies the request for consent to the transfer, he or she shall provide written reasons for the decision, and shall meet with Developer in good faith to determine what additional information may be necessary, including any list of requested corrections to be made in order to obtain consent to the same. Developer shall pay the actual costs borne by City in connection with its review of the proposed assignment, including the costs incurred by the City Attorneys Office. Upon any such appeal, if the City Council does not consent to the assignment to such Transferee, the City Council shall provide its reasons in writing. For avoidance of doubt, change in stock or other ownership interests in a corporate or business entity shall not constitute a transfer or assignment subject to an Assignment under this Agreement, unless so requested by Developer.
b. Unless otherwise stated elsewhere in this Agreement to the contrary, a Transferee expressly and unconditionally assumes all of those rights and obligations of this Agreement transferred or assigned by Developer and which are expressly set forth in the applicable Assignment Agreement.
c. Each Transferee of all or any portion of the Project Site shall be solely and only liable for performance of such Transferee’s obligations applicable to its portion of the Project Site under this Agreement as specified in the applicable Assignment Agreement, Upon the assignment or transfer of all or any portion of the Project Site together with any obligations assignable under this Agreement, the Transferee shall become solely and only liable for the performance of those assigned or transferred obligations so assumed and shall have the assumed rights of Developer under this Agreement; which such rights and obligations shall be set forth specifically in the Assignment Agreement, executed by the transferring Developer, and the Transferee, as of the date of such transfer, assignment or conveyance of all or the applicable portion of the Project Site. The failure of a Transferee of any portion of the Project Site to perform such Developer’s obligations set forth in the applicable Assignment Agreement may result, at the City’s option, in a declaration that this Agreement has been breached with respect to those obligations so assumed and City may, but shall not be obligated to, exercise its rights and remedies under this Agreement solely as it relates to the defaulting Transferee’s portion of the Project Site as provided for in Section 7.5 hereof, subject to such defaulting Transferee’s right to notice and opportunity to cure the default in accordance with provisions of Section 7.3 hereof. Any partial termination of this Agreement as it relates to that Transferee’s holding is severable from the entire Agreement, and shall not affect the remaining entirety of the Agreement and the rights of the non-defaulting Developer (or subsequent Transferor(s)) hereunder.
d. With respect to a transfer and assignment of Developer’s interest in the Project Site and the related rights and obligations hereunder, upon the effective date of any such transfer and assignment, as evidenced by the execution of an Assignment Agreement pursuant to this Section 7.8 between Developer and the Transferee and delivery of such Assignment Agreement to the City, Developer shall automatically be released from any further obligations to the City under this Agreement with respect to the Project Site or portion thereof so transferred.
e. A Transferee shall not be liable for any obligations to the City under this Agreement relating to any portion of the Project Site other than that portion transferred to such Transferee, and no default by a Developer under this Agreement with respect to such other portions of the Project Site shall be deemed a default by such Transferee with respect to the portion of the Project Site transferred to such Transferee.
22 f. Upon City approval of an Assignment to a Transferee, City, upon request by Developer, Developer (or its successor), Transferee and City shall each execute, and cause the recordation in the Official Records of the County of, a "Memorandum of Assignment" (in a form substantially similar to the Memorandum of Assignment set forth in Exhibit I to this Agreement).
Section 7.9 Exhibits. The following exhibits are attached to this Agreement and incorporated herein for all purposes:
DA EXHIBIT A-1 Legal Description of Project Site
DA EXHIBIT A-2 Diagram of Project Site
DA EXHIBIT B Form of Regulatory Affordable Housing Agreement DA EXHIBIT C Scope of and Fee Credits for Transportation Improvements DA EXHIBIT D Scope of Maintenance CFD
DA EXHIBIT E Off-Site Water Improvements
DA EXHIBIT F Off-Site Sewer Improvements
DA EXHIBIT G Resolution No. ___ Showing City Impact Fees DA EXHIBIT H Estimate of City Impact Fees and Other City Fees DA EXHIBIT I Form of Memorandum of Assignment
Section 7.10 Termination.
a. Termination Upon Completion of Project or Expiration of Term. Except for the provisions of this Agreement that survive termination as provided in Section 1.3 above, this Agreement shall terminate upon the earlier of the expiration of the Term or when the Project on the Project Site has been fully developed in accordance with the Project Approvals and Subsequent Approvals, as evidenced by (a) the issuance of the last Certificate of Occupancy necessary for Project buildout, and (b) written documentation approved by both Parties that confirms Parties’ respective obligations in connection therewith and with this Agreement have been fully satisfied.
b. Termination Due to Default. After notice and expiration of the cure period as specified in Section 7.3 above, if the default has not been cured or it is not being diligently cured in the manner set forth above, the noticing Party may, at its option, give notice of its intent to terminate this Agreement pursuant to the Development Agreement Statute (“Notice of Intent to Terminate”). Within thirty (30) days of receipt of a Notice of Intent to Terminate, the matter shall be scheduled for consideration and review in the manner set forth in the Development Agreement Statute. Following consideration of the evidence presented in said review, the Party alleging the default may give written notice of termination of this Agreement. If a Party elects to terminate as provided herein, upon sixty (60) days’ written notice of termination, this Agreement shall be terminated as it relates to the defaulting Party’s rights and obligations hereunder.
Notwithstanding the foregoing, a written notice of termination given under this Section 7.10(b) is effective to terminate the obligations of the noticing Party only if a default has occurred. If the
23 noticing Party is not so authorized to terminate, the non-noticing Party shall have all rights and remedies provided herein or under applicable laws and regulations, including, without limitation, the right to specific performance of the defaulting Party’s obligations under this Agreement. Once a Party alleging default has given a written notice of termination, legal proceedings may be instituted to obtain a declaratory judgment determining the respective termination rights and obligations under this Agreement. Notwithstanding the foregoing, any such default and related termination shall only extend to the defaulting Party’s rights and obligations hereunder and shall not affect the rights and obligations of any other Transferee who has acquired other portion(s) of the Project Site in accordance with Section 7.8 above.
c. Termination by Mutual Consent. This Agreement may be terminated by mutual consent of the Parties in the manner provided in the Development Agreement Statute and in City’s Development Agreement Procedures.
d. Termination for Ultimate Individual Lots. This Agreement shall automatically terminate with respect to any for sale individual residential lot and such lot shall be released and shall no longer be subject to this Agreement, without the execution or recordation of any further document, upon the issuance of a certificate of occupancy for the building(s) on each said lot.
e. Documentation of Termination. While the Parties intend the foregoing termination to be automatic and self-executing upon the relevant trigger(s), City agrees to promptly execute and deliver such documents and instruments in recordable form as Developer may reasonably request in order to evidence the termination of this Development Agreement. Thereafter, Developer may cause a notice of such termination to be duly recorded in the official records of Alameda County.
Section 7.11 Notices. Any notice or communication required hereunder between City and Developer must be in writing, and may be given either personally, by email, by registered or certified mail (return receipt requested), or by FedEx or other similar courier promising overnight delivery to the respective addresses specified by each Party. Any Party hereto may at any time, by giving ten (10) days written notice to the other Party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the Parties at their addresses set forth below:
If to City, to: City of Pleasanton
123 Main Street
P.O. Box 520
Pleasanton, CA 94566
Attn: City Manager
Telephone: (925) 931-5002
E-mail:
With Copies to: City of Pleasanton
123 Main Street
P.O. Box 520
Pleasanton, CA 94566
Attn: Dan Sodergren, City Attorney
Telephone: (925) 931-5015
Email: [email protected]
If to Developer, to: 330 Land Company, LLC
24 156 Diablo Road, Suite 340
Danville, CA 94526
Attn: Steve Reilly
Telephone (925) 368-3128
Email: [email protected]
With Copies to: USL Pleasanton Lakes, L.P.
999 Baker Way, Suite 200
San Mateo, CA 94404
Attn: Bridget Metz
Telephone: (925) 364-0898
Email: [email protected]
GVR Partners LLP
345 California Street
Suite 700
San Francisco, California 94104
Attn: Nadia Costa
Telephone: (415) 462-2202
Email: [email protected]
Section 7.12 Entire Agreement, Counterparts and Exhibits. This Agreement is executed in two (2) duplicate counterparts, each of which is deemed to be an original. This Agreement constitutes in full, the final and exclusive understanding and agreement of the Parties and supersedes all prior and contemporaneous negotiations or agreements of the Parties with respect to all or any part of the subject matter hereof. Any waivers of the provisions of this Agreement shall be in writing and signed by the appropriate authorities of City and Developer.
Section 7.13 Estoppel Certificate. Developer may, at any time, and from time to time, deliver a written notice to City requesting City to certify in writing that: (a) this Agreement is in full force and effect and a binding obligation of the Parties, (b) this Agreement has not been amended or modified either orally or in writing, and if so amended, identifying the amendments entered into by the Parties, and/or (c) to the knowledge of City, neither Party is or has been in default under this Agreement, or if any such default has to City’s knowledge occurred, describing the nature of any such event of default and any cure thereof. City shall execute and return such certificate to Developer within ten (10) business days following City’s receipt thereof, and if City fails so to do within such ten (10) business day period, the information in Developer’s notice shall conclusively be deemed true and correct in all respects.
The Director of Community Development, on behalf of City, shall execute certificates requested by Developer hereunder. City acknowledges that any certificate hereunder may be relied upon by any transferee or Mortgagee of any interest of Developer hereunder.
Section 7.14 Further Assurances. Each of the Parties covenants, on behalf of itself and its successors and assigns, to take all actions and to execute, with acknowledgment or affidavit if required, any and all documents and writings, that may be reasonably necessary, proper or convenient to achieve the purposes and objectives of this Agreement.
25 Section 7.15 Interpretation. Captions and headings in this Agreement are for convenience of reference only and shall not affect the meaning or interpretation of any provision of this Agreement. The Parties have jointly participated in the negotiation and drafting of this Agreement, and this Agreement shall be construed fairly and equally as to the Parties, without regard to any rules of construction relating to the Party who drafted a particular provision of this Agreement.
Section 7.16 Recordation of Development Agreement. Pursuant to California Government Code § 65868.5, no later than ten (10) days after City enters into this Agreement, the City Clerk shall record an executed copy of this Agreement in the Official Records of the County of Alameda.
Section 7.17 No Waiver. No delay or omission by the City or Developer in exercising any right or power accruing upon the other Party’s noncompliance or failure to perform under the provisions of this Agreement shall impair or be construed to waive any right or power. A waiver by City or Developer of any of the covenants or conditions to be performed by the other Party shall not be construed as a waiver of any succeeding breach of the same or other covenants and conditions.
Section 7.18 Project as a Private Undertaking; No Joint Venture or Partnership.
The Project constitutes private development, neither City nor Developer is acting as the agent of the other in any respect hereunder, and City and Developer are independent entities with respect to the terms and conditions of this Agreement. Nothing contained in this Agreement or in any document executed in connection with this Agreement shall be construed as making City and Developer joint venturers or partners.
Section 7.19 Time Is of the Essence. Time is of the essence for each provision of this Agreement for which time is an element.
Section 7.20 Third-Party Beneficiaries. City and Developer hereby renounce the existence of any third-party beneficiary to this Agreement and agree that nothing contained herein shall be construed as giving any other person or entity third-party beneficiary status.
Section 7.21 City Business License. Developer, at its expense, shall obtain and maintain a City of Pleasanton business license at all times during the Term, and shall include a provision in all general contractor agreements for the Project requiring each such general contractor to obtain and maintain a City of Pleasanton business license during performance of the work of construction
Section 7.22 Recitals. The recitals to this Agreement are part of the Agreement.
IN WITNESS WHEREOF, this Agreement has been entered into by and between Developer and City as of the day and year first above written.
26 Dated:____________________________
“CITY”
CITY OF PLEASANTON,
a municipal corporation
By:
Joseph Calabrigo, Interim City Manager
Dated:____________________________ Approved as to form:
By:
Daniel G. Sodergren, City Attorney
Dated:____________________________ Attest:
By:
Jocelyn Kwong, City Clerk
Dated:____________________________
“DEVELOPER”
Name of Developer
By:
Its: Manager
EXHIBIT A-1
TO
AGREEMENT
LEGAL DESCRIPTION OF PROJECT SITE
[See Attached]
28
29
EXHIBIT A-2
TO
AGREEMENT
DIAGRAM OF PROJECT SITE
EXHIBIT B
TO
AGREEMENT
FORM OF
REGULATORY AFFORDABLE HOUSING AGREEMENT
[See Attached]
RECORDING REQUESTED BY and
AFTER RECORDING RETURN TO:
City Clerk
City of Pleasanton
123 Main Street | P. O. Box 520
Pleasanton, CA 94566
[This document is exempt from recording fees
pursuant to Government Code § 27383 and exempt
from Documentary Transfer Tax pursuant to
Revenue and Taxation Code § 11922]
AFFORDABLE HOUSING AGREEMENT
This AFFORDABLE HOUSING AGREEMENT ("Agreement") is made this day of , 2026, by the CITY OF PLEASANTON, a Municipal Corporation ("City"), and 330 Land Company, LLC, a California limited liability company (“Project Developer”).
RECITALS
A. Project Developer currently owns a legal or equitable interest in certain undeveloped real property located in the County of Alameda, California, consisting of approximately 29.9 acres located directly east of the City’s municipal limits between Lake I of the Zone 7 Chain of Lakes north of the subject property, Cope Lake to the east of the property and Busch Road to the south of the property, as more particularly described in the legal description in Attachment 1 [DA Exhibit A-1 attached hereto, and as diagrammed in DA-Exhibit A-2 attached hereto and incorporated herein by reference (the “Property”)].
B. Project Developer is proposing to develop a total of one hundred and eighty-nine (189) single-family, detached market rate residential units with forty-eight (48) Junior Accessory Dwelling units (“JADUs”), along with related improvements (collectively, the “Project”).
C. Pleasanton Municipal Code (“PMC”) Section 17.44.080(G) provides options to satisfy the requirements of PMC Chapter 17.44 (“IZO”), allowing for an alternative method to meet the requirements set forth in PMC Chapter 17.44.020.
D. Project Developer has proposed an alternate method of complying with the IZO requirements by constructing 48 deed-restricted JADUs in the Project, which may be rented to households with incomes up to eighty percent (80%) of Area Median Income (“AMI”), as so described as lower income households, as further described in Attachment 2 attached hereto and incorporated herein by reference.
E. AMI shall mean the area median income for the San Francisco-Oakland-Fremont Metropolitan Statistical Area adjusted for household size in accordance with adjustment factors adopted and amended from time to time by the United States Department of Housing and Urban Development (HUD) pursuant to Section 8 of the United States Housing Act of 1937 or any successor statute.
F. Execution and fulfillment of this Agreement meets the requirements of the City’s
IZO in effect on February 21, 2025 (the date a complete preliminary application for the Project was submitted) for the Project and is provided in lieu of paying the City’s Affordable Housing Fee for the Project.
NOW, THEREFORE, in consideration of the mutual covenants, agreements, and conditions contained herein, City and Project Developer agree as follows:
1. Project Developer shall provide for the construction of forty-eight (48) attached JADUs which shall, if rented, be available and restricted to Low Income Households with incomes up to 80% AMI (collectively, the “JADU Inclusionary Units”) in accordance with the following:
Unit Type Lower Income
(80% AMI)
JADU 48
A. Unit Location. Project Developer shall construct the 48 required JADU Inclusionary Units in the locations identified in the approved Inclusionary Unit Map (Attachment 2). For the purpose of flexibility in location, Attachment 2 shows a total of fifty-seven (57) lots, all of which would be suitable to incorporate JADU Inclusionary Units; the parties acknowledge and agree that only 48 JADU Inclusionary Units are required hereunder. The Community and Economic Development Director may administratively approve changes in the location of the JADU Inclusionary Units provided that he or she finds that the units are reasonably dispersed as required by PMC Section 17.44.050.A.
B. Unit Size. All 48 JADU Inclusionary Units shall be at least one hundred seventy (170) square feet, consistent with the approved Site Development Review, and shall have a kitchenette and bathroom facility. The City Council, in approving this Agreement, hereby finds that the JADU Inclusionary Units is a permitted alternative method of meeting the purpose set forth in PMC Chapter 17.44.020 and the applicable requirements of the IZO.
C. Regulatory Agreements. Prior to transferring ownership to a buyer of a single family home which includes a JADU Inclusionary Unit, Project Developer shall require that the initial buyer and the City execute a Secondary Unit Regulatory Agreement and Declaration of Restrictive Covenants (the “JADU Regulatory Agreement”) in substantially the form attached hereto as Attachment 3. The Regulatory Agreements shall restrict all JADU Inclusionary Units, if rented, to Low Income Households. Upon the initial sale of the single family home with a JADU Inclusionary Unit and the recordation of the Regulatory Agreement against such home, Project Developer shall have no further obligations or liabilities with respect to such JADU Inclusionary Unit, including but not limited to, monitoring the compliance with this Agreement or the Regulatory Agreement by the owner of the home or any successor thereto, and responsibility for compliance with the Regulatory Agreement as to that JADU Inclusionary Unit shall thereafter be the responsibility of the then single-family home owner.
Project Developer shall remain responsible for compliance with this Agreement as to all other JADU Inclusionary Units that are included within single-family
units not yet sold. The City and Project Developer agree that a breach of the Regulatory Agreement by a purchaser of a home with a JADU Inclusionary Unit shall not constitute a default or breach by the Project Developer. The JADU Inclusionary Units may be rented in accordance with PMC Section
18.106.080.F.
D. As required by PMC Section 18.106.070.E, the owner of a single-family home with a JADU Inclusionary Unit shall participate in the City’s monitoring program to document the rent levels of the Junior Accessory Dwelling Units (JADUs) being rented.
2. The single-family homes with the JADU Inclusionary Units shall be constructed concurrently with the construction of the subject single-family market-rate units.
3. By providing the 48 JADU Inclusionary Units, the entire Project, as approved by City Council Resolution No. ___, is exempt from any obligation to pay the Affordable Housing Fee described in Pleasanton Municipal Code section 17.40.030.
4. Project Developer shall provide forty-eight (48) Junior Accessory Dwelling Units (JADUs), each of which will be attached to the corresponding primary unit. The JADUs are not required to be rented from the primary unit; however, if rented, they must be rented at no more than 80% of the City's published AMI rent levels. JADUs shall not be permitted to be sold separately in accordance with Pleasanton Municipal Code section 18.106.080.G.
5. All JADU Inclusionary Units shall remain affordable, if rented, in perpetuity.
6. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, heirs, administrators and assigns, to the extent consistent with the foregoing provisions of this Agreement.
7. Project Developer shall provide written notice to the initial buyers of the single-family homes with the JADU Inclusionary Units that they are required to comply with the restrictive covenants recorded on the subject JADU Inclusionary Units. The initial buyers and subsequent buyers of the single-family homes with the JADU Inclusionary Units shall execute a JADU Regulatory Agreement. The restrictive covenants set forth therein shall remain in perpetuity as long as the initial buyer or any successor, heir or assign owns the single-family home with the JADU Inclusionary Unit.
8. Project Developer shall have the right to transfer and assign all or any portion of its rights, duties and obligations under this Agreement to any person or entity acquiring fee simple title to all or any portion of the Property. Project Developer shall be immediately released from its obligations under this Agreement upon such assignment so long as: (i) Project Developer was not in default of this Agreement at the time of conveyance, (ii) Project Developer provided to City prior written notice of such transfer, and (iii) the transferee executes and delivers to City a written assumption agreement in which: (1) the name and address of the transferee is set forth, and (2) the transferee expressly assumes the relevant obligations of Project Developer under this Agreement. Failure to deliver a written assumption agreement hereunder shall not negate, modify or otherwise affect the liability of any transferee pursuant to the provisions of this Agreement.
9. The execution and delivery of this Agreement shall not be deemed to confer any rights upon, nor obligate either of the parties hereto to, any person or entity not a party to this Agreement.
10. If Project Developer fails to perform an obligation hereunder, and such failure continues for thirty (30) days after delivery of written notice of such failure by the City (or such longer period of time as may be reasonably necessary to cure such failure) then Project Developer shall be in default hereunder and the City’s sole remedy hereunder shall be to pursue an action for specific performance against ProjectDeveloper.
11. Any notice, consent or other communication required or permitted under this Agreement shall be in writing and shall be delivered by hand, sent by air courier, email, or sent by prepaid registered or certified mail with return receipt requested, and shall be deemed to have been given on the earliest of (a) receipt or refusal of receipt; (b) one business day after delivery to an air courier for overnight expedited delivery service; (c) five business days after the date deposited in the United States mail, registered or certified, with postage prepaid and return receipt requested (provided that such return receipt must indicate receipt at the address specified); or (d) on the day of its transmission by email if transmitted during the business hours of the place of receipt, otherwise on the next business day, provided that a copy of such notice, consent or other communication is also delivered pursuant to clause (b) or (c) above. All references to “business days” herein shall exclude weekends and State or Federal holidays. All notices shall be addressed as follows (or to such other or further addresses as the parties may designate by notice given in accordance with this section):
If to the City, at:
City of Pleasanton Attention: City Manager
P.O. Box 520
Pleasanton, CA 94566
Email: __________
If to the Project Developer, at:
330 Land Company LLC
156 Diablo Road, Suite 340
Danville, CA 94526
Email: [email protected]
12. Notwithstanding anything to the contrary in this Agreement, the restrictions set forth in this Agreement shall be enforceable solely by the City and not by, or on behalf of, any tenant or third-party purchaser of the Project or any residents within the Project.
13. This Agreement may be executed in counterparts, and when all counterpart documents are executed, the counterparts shall constitute a single binding agreement.
14. This Agreement shall be recorded in Alameda County, shall run with the land, and shall bind the parties and their successors in interest.
---------- Signatures follow on next page. ----------
THIS AGREEMENT is executed as of the date and year first above written.
CITY:
CITY OF PLEASANTON,
a Municipal Corporation
By:
, City Manager
Project Developer:
330 Land Company, LLC,
a California limited liability company
By:
Title:
ATTEST:
By:
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
By:
Daniel Sodergren, City Attorney
Attachments:
1. DA Exhibit A-1 and DA Exhibit A-2
2. Identification of JADU Inclusionary Units
3. Secondary Unit Regulatory Agreement and Declaration of Restrictive Covenants
ATTACHMENT 1
Legal Description
DA Exhibit A-1 and DA Exhibit A-2
[Attached]
ATTACHMENT 2
Identification of JADU Inclusionary Units
[Attached]
POTENTIAL JADU LOCATIONSArroyo Lago
ATTACHMENT 3
Secondary Unit Regulatory Agreement and Declaration of Restrictive Covenants
[Attached]
1 Owner:
FORM OF DECLARATION OF RESTRICTIVE COVENANT
FOR ACCESSORY DWELLING UNITS
RECORDING REQUESTED BY AND
AFTER RECORDING MAIL TO:
City of Pleasanton
City Clerk’s Office
123 Main Street, P.O. Box 520
Pleasanton, CA 94566
Recording requested pursuant to
Govt. Code § 27383 & 6103 – NO FEE
SECONDARY UNIT REGULATORY AGREEMENT AND
DECLARATION OF RESTRICTIVE COVENANTS
Owner: Name
Property Address: Address, Lot #
Pleasanton, CA 94568
Name of Development: Arroyo Lago
This Secondary Unit Regulatory Agreement and Declaration of Restrictive Covenants (this "Agreement') is entered into effective as of _________ ("Effective Date") by and between the City of Pleasanton, municipal corporation ("City") and _________________________________ (the "Owner"). City and Owner are hereinafter collectively referred to as the "Parties" and individually referred to as a “Party”.
Recitals
A Owner is the owner of certain real property that contains a Junior Accessory Dwelling Unit (“JADU”) Inclusionary Unit (“JADU Inclusionary Unit”), which is located in the City of Pleasanton, County of Alameda, State of California and more particularly described in Exhibit A attached hereto and incorporated herein by reference (the "Property"). The Property is located within a residential development project commonly referred to as “Arroyo Lago” (the "Project") that was subject to the City's Inclusionary Zoning Ordinance (IZO) (Chapter 17.44 of the Pleasanton Municipal Code), which requires that developments consisting of 10 or more residential units include a specified percentage of units that are subject to affordability restrictions set forth in a binding agreement recorded against the property or as otherwise required pursuant to an
2 alternative means of compliance approved by the City Council pursuant to PMC section
17.44.080.
B. The Project Developer of the Project sought to satisfy its IZO obligations through, among other things, the construction of secondary units on some of the residential lots in the Project, including on the Property, and requiring the purchasers of single-family homes with JADU Inclusionary Units to enter into regulatory agreements restricting the rents charged for the JADU Inclusionary Units to affordable rents, in accordance with the IZO and that certain Affordable Housing Agreement entered into by the Project Developer and City dated _______, 2026 (“Affordable Housing Agreement”).
The City Council approved this alternative means of complying with the IZO through adoption of Resolution No. on , 2026.
C. The Parties have agreed to enter into and record this Agreement in order to satisfy the requirements described in the foregoing Recitals. Subject to Owner’s election to rent the Restricted Unit (defined below) on the Property, the purpose of this Agreement is to regulate and restrict the occupancy and rents of the Property's Restricted Unit for the benefit of the occupants of said Restricted Unit. The covenants in this Agreement are intended to run with the land and be binding on Owner and its successors and assigns for the full term of this Agreement.
NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the Parties hereby agree as follows:
1. Definitions. The following terms have the meanings set forth in this Section wherever used in this Agreement or the attached exhibits.
"Applicable Income Level" means the annual gross income level specified as Low-income; which shall mean a household whose annual income is more than 50 percent but does not exceed 80 percent of the Area Median Income.
"Area Median Income" or "AMI" AMI shall mean the area median income for the San Francisco-Oakland-Fremont Metropolitan Statistical Area adjusted for household size in accordance with adjustment factors adopted and amended from time to time by the United States Department of Housing and Urban Development (HUD) pursuant to Section 8 of the United States Housing Act of 1937 or any successor statute.
"Eligible Household" means a household whose gross income does not exceed the Applicable Income Level and that is otherwise eligible to rent a Restricted Unit.
"Qualifying Rent" means a monthly rent which does not exceed one-twelfth of thirty percent (30%) of the Applicable Income Level adjusted for household size, less a utility allowance as specified by the Housing Authority of Alameda County. By way of example, pursuant to the 2026 Annual Income Limits published for Alameda County, the maximum Applicable Income Level would be $95,050 (divided by 12 months would equate to $7,921 per month). Based on the foregoing, the Qualifying Rent (1/12 of 30%) would be $2,376 per month (one person) and $2,715 per month (two persons), less the applicable utility allowance.
3 "Restricted Unit" means the JADU Inclusionary Unit on the Property that is depicted in attached Exhibit B and that, if rented, may only be rented and occupied at a Qualifying Rent in accordance with and as set forth in Section 2.
2. Use and Affordability Restrictions. Owner represents and warrants that it has not entered into any agreement that would restrict or compromise its ability to comply with the occupancy and affordability restrictions set forth in this Agreement, and Owner covenants that it shall not enter into any agreement that expressly conflicts with such restrictions without the express written consent of City.
2.1 Affordability Requirements. Owner shall have the right, but not obligation, to rent the Restricted Unit. Provided, however, that if Owner elects to rent the Restricted Unit, it shall be rented at not more than Qualifying Rent and occupied by Eligible Households. Owner shall ensure that language is contained in all leases and contracts with tenants (if any) executed by Owner that prohibits subleasing of the Restricted Unit.
2.2 Rents for Restricted Units. Rent charged to, and paid by, a tenant for the Restricted Unit shall be not more than Qualifying Rent.
2.3 Non-Discrimination: Compliance with Fair Housing Laws. Owner shall not discriminate against persons or groups of persons on account of race, color, religion, creed, sex, sexual orientation, marital status, familial status, ancestry or national origin in the rental of the Restricted Unit, nor shall Owner or any person claiming under or through Owner establish or permit any such practice or practices of discrimination or segregation with reference to the rental of the Restricted Unit in the Property. Owner shall each ensure that language prohibiting such discrimination shall be included in all deeds, leases and contracts executed by Owner or its successors and assigns with respect to the Restricted Unit. Owner shall comply with applicable state and federal fair housing laws in the marketing and rental of the Restricted Unit in the Property.
3. Reporting Requirements as to Rental Tenants of JADU’s.
3.1 Tenant Verification. If Owner elects to rent the Restricted Unit, then Owner or its authorized agent shall obtain from each Eligible Household prior to initial occupancy of the Restricted Unit, and on every anniversary thereafter, written documentation verifying each tenant's eligibility containing all of the following, including additional documentation as City may reasonably require (collectively hereinafter "Written Verification"):
(a) Number of people in the household; and
(b) Total household income.
Owner or its authorized agent shall retain Written Verification for not less than three (3) years, and upon City's request, shall make the Written Verification available for inspection by City and shall provide copies of the Written Verification to City. Owner or its authorized
4 agent may require each Eligible Household to certify the Written Verification.
3.2 Annual Report: Inspections. If Owner elects to rent the Restricted Unit, then Owner shall submit an annual report ("JADU Inclusionary Unit Annual Survey") in substantially the same form as attached Exhibit C. The Annual Report shall, at a minimum, include the following information: (a) identification of the Restricted Unit by address; (b) the monthly rents charged and proposed to be charged; (c) the number of people residing in the Restricted Unit; and (d) the total household income of residents. Upon City's request, Owner shall include with the Annual Report a copy of the Written Verification Owner obtained pursuant to Section 3.1 above, and such additional information as City may reasonably request from time to time in order to show compliance with this Agreement.
4. Term of Agreement.
4.1 Term of Restrictions. This Agreement shall remain in perpetuity.
4.2 Effectiveness Succeeds Conveyance of Property. This Agreement shall remain effective and fully binding for the full term hereof regardless of any sale, assignment, transfer, or conveyance of the Property, unless this Agreement is terminated earlier by City in a recorded writing.
5. Binding Upon Successors: Covenants to Run with the Land. Owner hereby subjects its interest in the Property to the covenants and restrictions set forth in this Agreement. City and Owner hereby declare their express intent that the covenants and restrictions set forth herein shall be deemed covenants running with the land and shall be binding upon and inure to the benefit of the heirs, administrators, executors, successors in interest, transferees, and assigns of Owner and City, regardless of any sale, assignment, conveyance or transfer of the Property or any part thereof or interest therein. Each reference in this Agreement to a specifically named party shall be deemed to mean a reference to the successor of each such Party. Any successor-in-interest to Owner, including without limitation any purchaser, transferee or lessee of the Property (other than the tenants of the Restrictive Unit within the Property) shall be subject to all of the duties and obligations imposed hereby for the full term of this Agreement. Each and every contract, deed, ground lease or other instrument affecting or conveying the Property or any part thereof, shall conclusively be held to have been executed, delivered and accepted subject to the covenants, restrictions, duties and obligations set forth herein, regardless of whether such covenants, restrictions, duties and obligations are set forth in such contract, deed, ground lease or other instrument. If any such contract, deed, ground lease or other instrument has been executed prior to the date hereof, Owner hereby covenants to obtain and deliver to City an instrument in recordable form signed by the parties to such contract, deed, ground lease or other instrument pursuant to which such parties acknowledge and accept this Agreement and agree to be bound hereby.
Owner agrees for itself and for its successors that in the event that a court of competent jurisdiction determines that the covenants herein do not run with the land, such covenants shall be enforced as equitable servitudes against the Property in favor of City.
6. Property Management: Repair and Maintenance: Marketing.
5 6.1 Management Responsibilities. If Owner elects to rent the Restricted Unit, then Owner shall be responsible for all management functions with respect to the Restricted Unit, including without limitation the selection of tenants, certification and recertification of household income and eligibility, evictions, collection of rents and deposits, maintenance, landscaping, routine and extraordinary repairs, replacement of capital items, and security. Except as City may otherwise agree in writing, City shall have no responsibility for management or maintenance of the Restricted Unit. The contracting of management services to a management entity shall not relieve Owner of its primary responsibility for proper performance of management duties.
6.2 Repair, Maintenance, and Security. If Owner elects to rent the Restricted Unit, then throughout the term of this Agreement, Owner shall at its own expense, maintain the Restricted Unit in good physical condition, in good repair, and in decent, safe, sanitary, habitable and tenantable living conditions in conformity with all applicable state, federal, and local laws, ordinances, codes, and regulations. Without limiting the foregoing, Owner agrees to maintain the Restricted Unit in a condition reasonably free of all waste, nuisance, debris, unmaintained landscaping, graffiti, disrepair, abandoned vehicles/appliances, and illegal activity, and shall take all reasonable steps to prevent the same from occurring in the Restricted Unit. If Owner elects to rent the Restricted Unit, then Owner shall prevent and/or rectify any physical deterioration of the Restricted Unit and shall make all repairs, renewals and replacements necessary to keep the Restricted Unit and the improvements located thereon in good condition and repair.
6.3 Restrictions on Transfer. If Owner elects to rent the Restricted Unit, then upon the conveyance, sale or lease of the Property, the purchaser or transferee shall submit an Annual Report to the City.
7. Recordation: No Subordination. This Agreement shall be recorded in the Official Records of Alameda County. Owner hereby represents, warrants and covenants that with the exception of easements and restrictions of record, absent the written consent of City, this Agreement shall not be subordinated in priority to any lien (other than those pertaining to taxes or assessments), encumbrance, or other interest in the Property. If at the time this Agreement is recorded, any interest, lien, or encumbrance has been recorded against the Property in position superior to this Agreement, upon the request of City, Owner hereby covenants and agrees to promptly undertake all action necessary to clear such matter from title or to subordinate such interest to this Agreement consistent with the intent of and in accordance with this Section, and to provide such evidence thereof as City may reasonably request.
8. Encumbrance.
8.1 Encumbrances. Owner agrees to use best efforts to ensure that any deed of trust secured by the Property shall contain each of the following provisions: (a) the holder of such deed of trust shall use commercially reasonable efforts to provide to City a copy of any notice of default issued to Owner concurrently with provision of such notice to Owner (provided however, the failure to do so shall not impair such holder's rights and remedies); and (b) City shall have the reasonable right, but not the obligation, to cure any default by Owner within the same period of time provided to Owner for such cure, extended by an additional thirty (30) days.
6 8.2 Mortgagee Protection. No violation of any provision contained herein shall defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value upon all or any portion of the Property, and the purchaser at any trustee's sale or foreclosure sale (or transferee pursuant to a deed-in-lieu of foreclosure) shall not be liable for any violation of any provision hereof occurring prior to the acquisition of title by such purchaser. Such purchaser shall be bound by and subject to this Agreement from and after such trustee's sale or foreclosure sale (or deed-in-lieu of foreclosure). Promptly upon determining that a violation of this Agreement has occurred, City shall give written notice to the holders of record of any mortgages or deeds of trust encumbering the Property that such violation has occurred. As used herein, "First Lender" shall refer to a mortgagee under a mortgage or a beneficiary under a deed of trust that is first in priority under the recording statutes of the State of California over all other mortgages or deeds of trust encumbering the Property, and any insurer or governmental guarantor of such mortgage or deed of trust. Notwithstanding any other provision of this Agreement, in no event shall the use and affordability restrictions contained herein, or any other provision of this Agreement, impair the rights of the First Lender to cure a default under the loan terms, to foreclose on the Property, or to otherwise protect its interests under the mortgage.
9. Default and Remedies.
9.1 Events of Default. Owner's failure to cure any default in performance of Owner's obligations under this Agreement within thirty (30) days following City's delivery of a notice of default shall constitute an Event of Default hereunder and shall entitle the City to proceed with any of the remedies described below. Notwithstanding the foregoing, if the default is such that it is not reasonably capable of being cured within thirty (30) days, an Event of Default shall not arise hereunder if Owner commences to cure the default within 30 days and thereafter prosecutes the curing of such default to completion with due diligence and in good faith, but in no event later than ninety (90) days after receipt of City's notice of default or such longer period as City may agree to in writing.
(a) Bring an action for equitable relief seeking the specific performance of the terms and conditions of this Agreement, and/or enjoining, abating, or preventing any violation of such terms and conditions, and/or seeking declaratory relief;
(b) For violations of obligations with respect to rents for Restricted Units, impose as liquidated damages a charge in an amount equal to the actual amount collected in excess of the Qualifying Rent;
(c) Pursue any other remedy allowed at law or in equity.
9.2 Remedies Cumulative. Each of the remedies provided herein is cumulative and not exclusive. City may exercise from time to time any rights and remedies available to it under applicable law or in equity, in addition to, and not in lieu of, any rights and remedies expressly provided in this Agreement.
10. Indemnification. In the event that Owner elects to rent the Restricted Unit, then Owner shall defend (with counsel approved by City), indemnify and hold City and its officials, officers, directors, employees, and agents (collectively, the "Indemnified Parties")
7 harmless from and against any and all losses, damages, liabilities, claims, demands, judgments, actions, court costs, and legal or other expenses (including reasonable attorneys' fees) arising from: (i) Owner's performance or failure to perform any obligation required by this Agreement; or (ii) any act or omission by Owner, or any of Owner's contractors, subcontractors, agents, employees, licensees or suppliers related to the Restricted Unit, except to the extent arising from the gross negligence or willful misconduct of such Indemnified Party. The provisions of this Section shall survive the expiration or earlier termination of this Agreement.
11. Miscellaneous.
11.1 Amendments. This Agreement may be amended or modified only by a written instrument signed by both Parties.
11.2 No Waiver. Any waiver by City of any term or provision of this Agreement must be in writing. No waiver shall be implied from any delay or failure by City to take action on any breach or default hereunder or to pursue any remedy allowed under this Agreement or applicable law. No failure or delay by City at any time to require strict performance by Owner of any provision of this Agreement or to exercise any election contained herein or any right, power or remedy hereunder shall be construed as a waiver of any other provision or any succeeding breach of the same or any other provision hereof or a relinquishment for the future of such election.
11.3 Notices. Except as otherwise specified herein, all notices to be sent pursuant to this Agreement shall be made in writing, and sent to the Parties at their respective addresses specified below or to such other address as a Party may designate by written notice delivered to the other parties in accordance with this Section. All such notices shall be sent by:
(a) personal delivery, in which case notice is effective upon delivery;
(b) certified or registered mail, return receipt requested, in which case notice shall be deemed delivered upon receipt if delivery is confirmed by a return receipt;
(c) nationally recognized overnight courier, with charges prepaid or charged to the sender's account, in which case notice is effective on delivery if delivery is confirmed by the delivery service;
(d) email transmission, in which case notice shall be deemed delivered upon transmittal, provided that (a) a duplicate copy of the notice is promptly delivered by first-class or certified mail or by overnight delivery, or (b) a transmission report is generated reflecting the accurate transmission thereof. Any notice given by emailshall be considered to have been received on the next business day if it is received after 5:00 p.m. recipient's time or on a nonbusiness day.
City:
City of Pleasanton
Housing Division
Owner:
Buyers Address
Pleasanton, CA 94568
8 200 Old Bernal
P.O. Box 520
Pleasanton, CA 94566
Email: ________
Email: ________
11.4 Further Assurances. The Parties shall execute, acknowledge and deliver to the other such other documents and instruments, and take such other actions, as either shall reasonably request as may be necessary to carry out the intent of this Agreement.
11.5 Parties Not Co-Venturers. Nothing in this Agreement is intended to or shall establish the Parties as partners, co-venturers, or principal and agent with one another.
11.6 Action by the City. Except as may be otherwise specifically provided herein, whenever any approval, notice, direction, consent or request by City is required or permitted under this Agreement, such action shall be in writing, and such action may be given, made or taken by the City Manager or by any person who shall have been designated by the City Manager, without further approval by the City Council.
11.7 Non-Liability of City and City Officials, Employees and Agents. No member, official, employee or agent of City shall be personally liable to Owner or any successor in interest, in the event of any default or breach by City, or for any amount of money which may become due to Owner or its successor or for any obligation of City under this Agreement.
11.8 Headings: Construction. The headings of the sections and paragraphs of this Agreement are for convenience only and shall not be used to interpret this Agreement. The language of this Agreement shall be construed as a whole according to its fair meaning and not strictly for or against any Party.
11.9 Time is of the Essence. Time is of the essence in the performance of this Agreement.
11.10 Governing Law. This Agreement shall be construed in accordance with the laws of the State of California without regard to principles of conflicts of law.
11.11 Severability. If any provision of this Agreement is held invalid, illegal, or unenforceable by a court of competent jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not be affected or impaired thereby.
11.12 Entire Agreement: Exhibits. This Agreement contains the entire agreement of Parties with respect to the subject matter hereof, and supersedes all prior oral or written agreements between the Parties with respect thereto. The exhibits attached hereto are incorporated herein by this reference.
11.13 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.
IN WITNESS WHEREOF, the Parties have executed this Agreement effective as
9 of the date first written above.
CITY OF PLEASANTON
By:
Print:
City Manager
OWNER(S)
By:
Print:
By:
Print:
ATTEST
By:
Print:
City Clerk
10 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of
On ______________________ before me, , Notary Public, (here insert name and title of the officer)
personally appeared __________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
11 EXHIBIT A
Property Legal Description
12 EXHIBIT B
Identification of JADU Inclusionary Unit
13 EXHIBIT C
Form of
Annual Report
Annual Survey Sample
14 JUNIOR ACCESSORY DWELLING UNIT (JADU) INCLUSIONARY UNIT
ANNUAL SURVEY
Please submit your completed survey electronically within 30 days to:
City of Pleasanton Housing Division – [email protected]
Owner Name(s):
Unit Address & Development:
Mailing Address:
Contact Information (email & phone number):
Rental and Ownership Verification
Your secondary unit is a JADU Inclusionary Unit restricted for income-eligible households.
To verify the maximum monthly rent a tenant may be charged and household income limits, visit:
https://www.cityofpleasantonca.gov/our-government/housing/housing-programs/#rental-housing
YES NO
1. I am currently renting my JADU Inclusionary Unit to another household/individual. □ □
If yes:
a. Indicate the monthly rent being charged. $_______
b. Identify the number of persons in the tenant household. ________
c. Indicate the annual gross income of the tenant household $_______
d. Provide a copy of the lease agreement to the City.
2. Provide a copy of your current homeowner’s insurance to the City.
I understand that there are restrictions on my property and if I choose to refinance, sell, or rent my property, I must contact the City of Pleasanton Housing Division at 925-931-5011 or at [email protected].
I understand that, per my Secondary Unit Regulatory Agreement, if I choose to rent my JADU Inclusionary Unit, the monthly rent cannot exceed one-twelfth of thirty percent (30%) of the 80% Area Median Income (AMI), adjusted for household size, less a utility allowance as specified by the Housing Authority of the County of Alameda (HACA.net).
In affixing my/our signature/s below, I/we affirm that all information provided in this form is true and correct. I/we understand that if any information is falsely reported, the City of Pleasanton may take legal action against me/us.
___________________________________________________________ _____________________________________ Signature of Owner, Print Name Date
___________________________________________________________ _____________________________________ Signature of Owner, Print Name Date
15 FORM OF PERFORMANCE DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE
FILING AND SECURITY AGREEMENT
RECORDING REQUESTED BY AND
AFTER RECORDING MAIL TO:
City of Pleasanton
City Clerk’s Office
123 Main Street, P.O. Box 520
Pleasanton, CA 94566
Recording requested pursuant to
Govt. Code § 27383 & 6103 – NO FEE
APN:
PERFORMANCE DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING
AND SECURITY AGREEMENT
THERE ARE RESTRICTIONS ON THE USE OF THE PROPERTY ENCUMBERED BY THIS DEED OF TRUST. RENTAL OF THE SECONDARY UNIT (JADU INCLUSIONARY
UNIT) ON THIS PROPERTY IS LIMITED TO INCOME -ELIGIBLE HOUSEHOLDS AT A
QUALIFYING RENT PURSUANT TO THE CITY OF PLEASANTON'S AFFORDABLE HOUSING PROGRAM. CERTAIN LIMITATIONS APPLY TO THE SALE OF THIS PROPERTY.
THIS DEED OF TRUST, ASSIGNMENT OF RENTS, FIXTURE FILING AND SECURITY AGREEMENT (this "Deed of Trust”) is made as of DATE ("Effective Date") by OWNER (s) as they appear on title (collectively, "Trustor") to the City of Pleasanton (the "Trustee") whose business address is 123 Main Street, Pleasanton, CA 94566 for the benefit of the City of Pleasanton, a municipal corporation ("Beneficiary").
RECITALS
A. Trustor is the owner of the real property located at Property address in the City of Pleasanton, California 94566 and more particularly described in the attached Exhibit A (the "Property").
B. In accordance with City of Pleasanton Affordable Housing Program ("Program”) requirements, Trustor and Beneficiary entered into that certain Secondary Unit Regulatory Agreement and Declaration of Restrictive Covenants ("Secondary Unit Regulatory Agreement") and recorded in the Official Records of Alameda County substantially concurrently herewith (the "Secondary Unit Regulatory Agreement").
16 C. The secondary unit rental restrictions set forth in this Deed of Trust and in the Secondary Unit Regulatory Agreement are intended to effectuate the requirements of the Program.
D. Among other provisions, the Secondary Unit Regulatory Agreement provides that (i) if rented, the restricted secondary unit must be rented at or below the Qualifying Rent to Eligible Households, (ii) Trustor is subject to certain recording requirements; and (iii) there are limitations on the sale of the Property.
E. Capitalized terms used and not defined in this Deed of Trust have the meaning ascribed to them in the Secondary Unit Regulatory Agreement.
NOW THEREFORE, to secure full and timely performance by Trustor of the Secured Obligation, it is agreed as follows:
1. Grant in Trust. Trustor, in consideration of the promises herein recited and the trust herein created, hereby irrevocably and unconditionally grants, transfers, conveys and assigns to Trustee, in trust for the benefit of Beneficiary, with power of sale and right of entry and possession, all of Trustor's right, title and interest now held or hereafter acquired in and to the following:
(a) all of that certain real property located at ___________________________ [Property address] in Pleasanton, California 94566, which is more particularly described in Exhibit A, attached hereto and incorporated herein by this reference (the "Land");
(b) all buildings, improvements and fixtures now or hereafter erected on the Property and all replacements and additions thereto ("Improvements");
(c) all easements, rights of way, appurtenances and other rights used in connection with the Property or as a means of access thereto ("Appurtenances");
(d) all fixtures now or hereafter attached to or used in and about the Property or the Improvements or hereafter located or constructed on the Property, and all renewals or replacements thereof or articles in substitution therefor, whether or not the same are, or shall be attached to the Improvements in any manner ("Fixtures and Equipment"); and
(e) all leases, subleases, licenses and other agreements relating to use or occupancy of the Property ("Leases") and all rents or other payments which may now or hereafter accrue or otherwise become payable to or for the benefit of Trustor ("Rents") (whether or not such Leases and Rents are permitted pursuant to the Secondary Unit Regulatory Agreement).
All of the above-referenced Property, Improvements, Appurtenances, Fixtures and Equipment, Leases and Rents are herein referred to collectively as the "Security."
2. Obligations Secured. This Deed of Trust is given for the purpose of securing performance of all of the following (the "Secured Obligations"): (i) all present and future obligations of Truster set forth in this Deed of Trust or in the Secondary Unit Regulatory Agreement; (ii) all additional present and future obligations of Trustor to Beneficiary under
17 any other agreement or instrument acknowledged by Trustor (whether existing now or in the future) which states that it is or such obligations are, secured by this Deed of Trust; (iv) all modifications, supplements, amendments, renewals, and extensions of any of the foregoing, whether evidenced by new or additional documents; and (v) reimbursement of all amounts advanced by or on behalf of Beneficiary to protect Beneficiary's interests under this Deed of Trust.
3. Assignment of Rents, Issues, and Profits. Trustor hereby irrevocably, absolutely, presently and unconditionally assigns to Beneficiary the rents, royalties, issues, profits, revenue, income and proceeds of the Property. This is an absolute assignment and not an assignment for security only. Beneficiary hereby confers upon Trustor a license to collect and retain such rents, royalties, issues, profits, revenue, income and proceeds as they become due and payable prior to any Event of Default hereunder. Upon the occurrence of any such Event of Default, Beneficiary may terminate such license without notice to or demand upon Truster and without regard to the adequacy of any security for the indebtedness hereby secured, and may either in person, by agent, or by a receiver to be appointed by a court, enter upon and take possession of the Property or any part thereof, and sue for or otherwise collect such rents, issues, and profits, including those past due and unpaid, and apply the same, less costs and expenses of operation and collection, including reasonable attorneys' fees, to any indebtedness secured hereby, and in such order as Beneficiary may determine. Beneficiary's right to the rents, royalties, issues, profits, revenue, income and proceeds of the Property does not depend upon whether or not Beneficiary takes possession of the Property. The entering upon and taking possession of the Property, the collection of such rents, issues, and profits, and the application thereof as aforesaid, shall not cure or waive any default or notice of default hereunder or invalidate any act done pursuant to such notice. If an Event of Default occurs while Beneficiary is in possession of all or part of the Property and/or is collecting and applying Rents as permitted under this Deed of Trust, Beneficiary, Trustee and any receiver shall nevertheless be entitled to exercise and invoke every right and remedy afforded any of them under this Deed of Trust and at law or in equity, including the right to exercise the power of sale granted hereunder. Regardless of whether or not Beneficiary, in person or by agent, takes actual possession of the Land and Improvements, Beneficiary shall not be deemed to be a "mortgagee in possession," shall not be responsible for performing any obligation of the lessor under any Lease, shall not be liable in any manner for the Property, or the use, occupancy, enjoyment or operation of any part of it, and unless due solely to the willful misconduct or gross negligence of Beneficiary, shall not be responsible for any dangerous or defective condition of the Property or any negligence in the management, repair or control of the Property.
4. Fixture Filing. This Deed of Trust is intended to be and constitutes a fixture filing pursuant to the provisions of the Uniform Commercial Code ("UCC") with respect to all of the Property constituting fixtures, is being recorded as a fixture financing statement and filing under the UCC, and covers property, goods and equipment which are or are to become fixtures related to the Land and the Improvements. Trustor covenants and agrees that this Deed of Trust is to be filed in the real estate records of Alameda County and shall also operate from the date of such filing as a fixture filing in accordance with Section 9502 and other applicable provisions of the UCC. This Deed of Trust shall also be effective as a financing statement covering minerals or the like (including oil and gas) and accounts subject to the UCC, as amended. Trustor shall be deemed to be the "debtor'' and Beneficiary shall be deemed to be the "secured party" for all purposes under the UCC. The
18 full name of Truster and the mailing address of Truster are set forth in Section 8.7 of this Deed of Trust.
5. Trustor Representations, Warranties And Covenants
5.1. Trustor's Estate. Trustor represents and warrants that Trustor is lawfully seized of the estate hereby conveyed and has the right to grant and convey the Property.
Trustor agrees to warrant and defend generally the title to the Property against all claims and demands subject to any declarations, easements, or restrictions listed in the schedule of exceptions to coverage in any title insurance policy insuring Beneficiary's interest in the Property.
5.2 Performance of Covenants. Trustor will observe and perform all of Trustor's covenants and agreements set forth in the Secondary Unit Regulatory Agreement, this Deed of Trust, and all other instruments secured by the Property.
5.3 Maintenance of the Property. Trustor agrees: (a) to keep the Property in good repair and in decent, safe, sanitary, habitable condition and permit no waste thereof; (b) to repair, restore or rebuild promptly any Improvements that may be damaged or destroyed while subject to the lien of this Deed of Trust; (d) to comply with all applicable laws, ordinances and governmental regulations affecting the Property or requiring any alteration or improvement thereof, and not to suffer or permit any violations of any such law, ordinance or governmental regulation, nor of any covenant, condition or restriction affecting the Property; and (e) not to initiate or acquiesce in any change in any zoning or other land use or legal classification which affects any of the Property without the Beneficiary's written consent. If there arises a condition in contravention of this Section, and if the Trustor has not cured such condition within thirty (30) days after receiving a notice from Beneficiary of such a condition, then in addition to any other rights available to Beneficiary, Beneficiary shall have the right (but not the obligation) to perform all acts necessary to cure such condition, and to establish or enforce a lien or other encumbrance against the Property to recover its cost of cure.
5.4 Appear and Defend. Trustor shall appear in and defend any action or proceeding purporting to affect the Property or the rights or powers of the Beneficiary or Trustee, and shall pay all costs and expenses, including cost of evidence of title and attorney's fees in a reasonable sum, in any such action or proceeding in which the Beneficiary or Trustee may appear, and in any suit brought by the Beneficiary to foreclose this Deed of Trust.
5.5 Charges: Liens. Trustor shall pay prior to delinquency all taxes, assessments, and other charges, fines, and impositions affecting the Property directly to the payee thereof. Upon request of Beneficiary, Trustor shall promptly furnish to Beneficiary copies of all notices of such amounts due and shall promptly furnish to Beneficiary receipts evidencing all such payments made. Trustor shall pay when due each obligation secured by or reducible to a lien, charge or encumbrance which now does or later may encumber or appear to encumber all or part of the Property or any interest therein, whether or not such lien, charge or encumbrance is or would be senior or subordinate to this Deed of Trust. Trustor shall not be required to pay any tax, charge or assessment so long as Trustor is actively contesting its validity in good faith and by
19 appropriate legal proceedings which will operate to prevent the enforcement of the lien or forfeiture of the Property or any part thereof. Trustor shall post security for the payment of such contested claims as may be requested by the Beneficiary.
5.6 Insurance. Trustor shall keep the Land and the Improvements insured by a standard all-risk property insurance policy in an amount equal to the replacement value of the Property with loss payable to the Beneficiary. The insurance carrier providing such insurance shall be licensed to do business in the State of California and may be chosen by Trustor, subject to approval by Beneficiary. All insurance policies and renewals thereof will be in a form acceptable to the Beneficiary, and will include a standard mortgagee clause with standard lender's endorsement in favor of the holder of any senior lien and the Beneficiary as their interests may appear and in a form acceptable to the Beneficiary. The Beneficiary shall have the right to hold, or cause its designated agent to hold, the policies and renewals thereof, and Trustor shall promptly furnish to the Beneficiary, or its designated agent, the original insurance policies or certificates of insurance, all renewal notices and all receipts of paid premiums. In the event of loss, Trust or will give prompt notice to the insurance carrier and the Beneficiary or its designated agent. The Beneficiary, or its designated agent, may make proof of loss if not made promptly by Trustor. The Beneficiary shall receive thirty (30) days advance written notice of the cancellation, expiration or termination or any material change in the coverage afforded by any of the insurance policies required under this Section.
Unless otherwise permitted by the Beneficiary in writing, insurance proceeds, subject to the rights of the holder of any senior lien, will be applied to restoration or repair of the Property damaged. If the Property is abandoned by Trustor, or if Trustor fails to respond to the Beneficiary, or its designated agent, within thirty (30) days from the date notice is mailed by either of them to Trustor that the insurance carrier offers to settle a claim for insurance benefits, the Beneficiary, or its designated agent, is authorized to collect and apply the insurance proceeds at the Beneficiary's option either to restoration or repair of the Property or to pay amounts due under the Secondary Unit Regulatory Agreement.
If the Property is acquired by the Beneficiary, all right, title and interest of Trustor in and to any insurance policy and in and to the proceeds thereof resulting from damage to the Property prior to the sale or acquisition will pass to the Beneficiary to the extent of the sums secured by this Deed of Trust immediately prior to such sale or acquisition, subject to the rights of the holder of any senior lien.
Renewal policies and any replacement policies, together with premium receipts satisfactory to the Beneficiary, shall be delivered to the Beneficiary at least thirty (30) days prior to the expiration of existing policies. Neither Trustee nor the Beneficiary shall by reason of accepting, rejecting, approving or obtaining insurance incur any liability for the existence, nonexistence, form or legal sufficiency of such insurance, or solvency of any insurer for payment of losses.
6. IT IS MUTUALLY AGREED THAT:
6.1. Protection of Beneficiary's Security . If Trustor fails to perform the covenants and agreements contained in this Deed of Trust, or if any action or proceeding
20 is commenced which materially affects Beneficiary's interest in the Property, including, but not limited to, default under any senior lienholder document, eminent domain, insolvency, code enforcement, arrangements or proceedings involving a bankrupt or dec edent, foreclosure of any mortgage secured by the Property or sale of the Property under a power of sale of any instrument secured by the Property, then Beneficiary, at Beneficiary's option, without releasing Trustor from any obligation hereunder, may upon notice to Trustor, make such appearance, disburse such sums and take such action as is necessary to protect Beneficiary's interest, including, but not limited to, the purchase of insurance, disbursement of reasonable attorneys' fees and entry upon the Property to make repairs. Any amounts disbursed by Beneficiary pursuant to this Section, with interest thereon, shall become additional indebtedness of Trustor secured by this Deed of Trust. Unless Trustor and Beneficiary agree to other terms of payment, such amounts shall be payable upon notice from Beneficiary to Trustor requesting payment thereof, and shall bear interest from the date of disbursement at the highest rate permissible under applicable law. Nothing contained in this Section shall require Beneficiary to incur any expense or take any action hereunder.
6.2 Inspection. Beneficiary or its agent may make or cause to be made reasonable entries upon and inspections of the Property. Beneficiary shall give Trustor reasonable notice prior to any such inspection.
6.3 Awards and Damages. Subject to the rights of senior lienholders, all judgments, awards of damages, settlements and compensation made in connection with or in lieu of (a) taking of all or any part of or any interest in the Property by or under assertion of the power of eminent domain, (b) any damage to or destruction of the Property or any part thereof by insured casualty, and (c) any other injury or damage to all or any part of the Property, are hereby assigned to and shall be paid to the Beneficiary.
The Beneficiary is authorized and empowered (but not required) to collect and receive any such sums and is authorized to apply them in whole or in part upon any indebtedness or obligation secured hereby, in such order and manner as the Beneficiary shall determine at its option. The Beneficiary shall be entitled to settle and adjust all claims under insurance policies provided under this Deed of Trust and may deduct and retain from the proceeds of such insurance the amount of all expenses incurred by it in connection with any such settlement or adjustment. All or any part of the amounts so collected and recovered by the Beneficiary may be released to Trustor upon such conditions as the Beneficiary may impose for its disposition. Application of all or any part of the amounts collected and received by the Beneficiary or the release thereof shall not cure or waive any default under this Deed of Trust. If the Property is abandoned by Trustor, or if, after notice by Beneficiary to Trustor that the condemner offers to make an award or settle a claim for damages, Trustor fails to respond to Beneficiary within thirty (30) days after the date such notice is mailed, Beneficiary is authorized to collect and apply the proceeds, at Beneficiary's option, either to restoration or repair of the Property or to the sum secured by this Deed of Trust.
6.4 Prohibition on Transfers of Interest. With the exception of the transfers permitted pursuant to Section 6.9 below, if all or any part of the Property or an interest therein is sold or transferred by Trustor in violation of the Secondary Unit Regulatory Agreement, Beneficiary may, at Beneficiary's option, declare all sums secured by this Deed of Trust to be immediately due and payable. If Beneficiary exercises such option to accelerate, Beneficiary shall mail Trustor notice of acceleration in accordance with
21 Sections 7.2 and 8.7 hereof. Such notices shall provide a period of not less than 30 days from the date the notice is mailed within which Truster may pay the sums declared due. If Trustor fails to pay such sums prior to the expiration of such period, Beneficiary may, without further notice or demand on Trustor, invoke any remedies permitted by Section
7.2(a) hereof.
6.5 Sale or Forbearance. No sale of the Property, forbearance on the part of Beneficiary or extension of the time for payment of the indebtedness hereby secured shall operate to release, discharge, waive, modify, change or affect the liability of Trustor either in whole or in part.
6.6 Beneficiary's Rights to Release. Without affecting the liability of any person for payment of any indebtedness hereby secured (other than any person released pursuant hereto), including without limitation any one or more endorsers or guarantors, and without affecting the lien hereof upon any of the Property not released pursuant hereto, at any time and from time to time without notice: (a) Beneficiary may in its sole discretion: (i) release any person now or hereafter liable for payment of any or all such indebtedness, (iii) extend the time for or agree to alter the terms of payment of any or all of such indebtedness, and (iii) release or accept additional security for such indebtedness, or subordinate the lien or charge hereof; and (b) Trustee, acting pursuant to the written request of the Beneficiary, may reconvey all or any part of the Property, consent to the making of any map or plot of the Land, join in granting any assessment thereon, or join in any such agreement of extension or subordination.
6.7 Reconveyance. Upon payment of all sums and satisfaction of all obligations secured by this Deed of Trust (including without limitation, the satisfaction of all obligations set forth in the Secondary Unit Regulatory Agreement, Beneficiary shall request Trustee to reconvey the Property and shall surrender this Deed of Trust to Trustee.
Trustee shall reconvey the Property without warranty and without charge to the person or persons legally entitled thereto. Such person or persons shall pay all costs of recordation, if any. The recitals in the reconveyance of any matters or facts shall be conclusive proof of the truthfulness thereof.
7. EVENTS OF DEFAULT
7.1 Events of Default. Any one or more of the following events shall constitute a default under this Deed of Trust:
(a) Rental of the Secondary Unity to a household that does not qualify as an Eligible Household.
(b) Rental of the Secondary Unit at a monthly rent that exceeds the Qualifying Rent.
(c) The sale, conveyance, encumbrance or other transfer of the Property in violation of the Secondary Unit Regulatory Agreement.
(d) An event of default arises under any other loan secured by the Property and such default remains uncured following the expiration of any applicable cure period.
22 (e) Trustor encumbers or refinances the Property in violation of the Secondary Unit Regulatory Agreement.
(f) Trustor fails to pay real estate taxes, assessments or homeowners association dues, when due, or Owner fails to maintain insurance in such amounts as required under this Agreement, and such event or condition shall not have been cured within thirty (30) days following the date of written notice of default from Beneficiary.
(g) Trustor fails to observe or perform any other covenant, condition, or agreement to be observed or performed by Trustor pursuant to this Deed of Trust, and Trustor fails to cure such default within 30 days following the date of written notice of default from Beneficiary.
(g) An event of default arises under the Secondary Unit Regulatory Agreement.
(h) Trustor declares bankruptcy or makes an assignment of assets for the benefit of creditors.
7.2 Acceleration and Sale.
(a) Default: Remedies. Upon Trustor's breach of any covenant or agreement of Trustor under the Secondary Unit Regulatory Agreement or this Deed of Trust (including without limitation, Trustor's encumbrance or refinancing of the Property in violation of the foregoing agreements) Beneficiary shall, prior to acceleration, mail notice to Trustor as provided in Section 8.7 hereof specifying: (i) the nature of the breach; (ii) the action required to cure such breach; (iii) a date no less than thirty (30) days from the date the notice is mailed to Trustor by which such breach must be cured; and (iv) that failure to cure such breach on or before the date specified in the notice may result in the sale of the Property. The notice shall further inform Trustor of Trustor's right to reinstate after acceleration and the right to bring a court action to assert the nonexistence of a default or any other defense of Trustor to acceleration and sale. If the breach is not cured on or before the date specified in the notice, Beneficiary at Beneficiary's option may: (a) if applicable, declare all of the sums secured by this Deed of Trust to be immediately due and payable without further demand and invoke the power of sale; (b) commence an action to foreclose this Deed of Trust as a mortgage, appoint a receiver, or specifically enforce any of the covenants set forth herein; (c) deliver to the Trustee a written declaration of default and demand for sale pursuant to the provisions for notice of sale found at California Civil Code Sections 2924 et seq., and (d) pursue any other remedy permitted under California law. Beneficiary shall be entitled to collect from the Trustor, or from the proceeds of the sale of the Property, all reasonable costs and expenses incurred in pursuing the remedies provided in this paragraph, including, but not limited to, reasonable attorneys' fees.
(b) Trustor's Right to Reinstate. Trustor will have the right to have any proceedings begun by Beneficiary to enforce this Deed of Trust discontinued at any time prior to five (5) days before sale of the Property pursuant to the power of sale contained in this Deed of Trust or at any time prior to entry of the judgment enforcing this Deed of Trust if: (a) Trustor pays Beneficiary all sums which would be then due under this Deed of Trust
23 had no acceleration occurred; (b) Trustor pays all reasonable expenses incurred by Beneficiary and Trustee in enforcing the covenants and agreements of Trustor contained in this Deed of Trust, including, but not limited to, reasonable attorneys' fees; (c) Trustor cures all breaches of any other covenants or agreements of Trustor set forth in the Secondary Unit Regulatory Agreement, and (d) Trustor takes such action as Beneficiary may reasonably require to assure that the lien of this Deed of Trust, Beneficiary's interest in the Property and Trustor's obligation to pay the sums and perform the obligations secured by this Deed of Trust shall continue unimpaired. Upon such payment and cure by Trustor, this Deed of Trust and the obligations secured hereby will remain in full force and effect as if no acceleration had occurred.
(c) Sale. After delivery to Trustee of a Notice of Default and Demand for Sale and after the expiration of such time and the giving of such notice of default and sale as may then be required by law, and without demand on Trustor, Trustee shall sell the Property at the time and place of sale fixed by it in said notice of sale, at public auction to the highest bidder for cash in lawful money of the United States of America, payable at time of sale.
Trustee may postpone sale of all or any portion of the Property by public announcement at such time and place of sale and from time to time thereafter may postpone such sale by public announcement at the time and place fixed by the preceding postponement. Any person, including Trustor, Trustee or the Beneficiary, may purchase at such sale. Upon such sale by Trustee it shall deliver to such purchaser its deed conveying the Property so sold, but without any covenant or warranty expressed or implied. The recitals in such deed of any matters or facts shall be conclusive proof of their truthfulness. Upon sale by Trustee and after deducting all costs, expenses and fees of Trustee, Trustee shall apply the proceeds of sale to the payment of the indebtedness hereby secured, including any advances made or costs or expenses paid or incurred by Beneficiary under this Deed of Trust, any indebtedness evidenced by any other instrument hereby secured, and all other sums then secured hereby, in such order as the Beneficiary shall direct; and then the remainder, if any, shall be paid to the person or persons legally entitled thereto.
(d) Assignment of Rents: Appointment of Receiver: Beneficiary in Possession. Upon acceleration under Section 7.2(a) or abandonment of the Property, Beneficiary (in person, by agent or by judicially appointed receiver) shall be entitled to enter upon, take possession of and manage the Property and to collect the rents of the Property (if any) including those past due. All rents collected by Beneficiary or the Receiver shall be applied first to payment of the costs of management of the Property and collection of rents including, but not limited to, receiver's fees, premiums on receiver's bonds and reasonable attorney's fees, and then to the sums secured by this-Deed of Trust. Beneficiary and the receiver shall be liable to account only for those rents actually received. The provisions of this paragraph and Section 7.2(a) shall operate subject to the claims of prior lien holders.
7.3 Remedies Cumulative: No Waiver. No exercise of any right or remedy by the Beneficiary or Trustee hereunder shall constitute a waiver of any other right or remedy herein contained or provided by law, and no delay or forbearance by the Beneficiary or Trustee in exercising any such right or remedy hereunder shall operate as a waiver thereof or preclude the exercise thereof in any continued or subsequent default hereunder. All remedies provided in this Deed of Trust are distinct and cumulative to any other right or remedy under this Deed of Trust or any other document, or afforded by law
24 or equity, and may be exercised concurrently, independently or successively.
7.4 Trustee Substitution. The irrevocable power to appoint a substitute trustee or trustees hereunder is hereby expressly granted to the Beneficiary, to be exercised at any time hereafter, without specifying any reason therefore, by filing for record in the office where this Deed of Trust is recorded a deed of appointment, and said power of appointment of successor trustee or trustees may be exercised as often as and whenever the Beneficiary deems advisable. The exercise of said power of appointment, no matter how often, shall not be deemed an exhaustion thereof, and upon recording of such deed or deeds of appointment, the trustee or trustees so appointed shall thereupon, without further act or deed of conveyance, succeed to and become fully vested with identically the same title and estate in and to the Property hereby conveyed and with all the rights, powers, trusts and duties of the predecessor in the trust hereunder, with the like effect as if originally named as trustee or as one of the trustees. '
7.5 Superiority of First Lender Documents. Notwithstanding any provision herein, this Deed of Trust shall not diminish or affect the rights of the First Lender under the First Lender Deed of Trust or any subsequent First Lender deeds of trust hereafter recorded against the Security in compliance with the requirements of Section 8.3 of the Secondary Unit Regulatory Agreement.
Notwithstanding any other provision hereof, the provisions of this Deed of Trust shall be subordinate to the lien of the First Lender Deed of Trust and shall not impair the rights of the First Lender, or such lender's assignee or successor in interest, to cure a default under the loan terms, to exercise its remedies under the First Lender Deed of Trust in the event of default under the First Lender Deed of Trust by the Trustor, or to protect its interests under the First Lender Deed of Trust. Such remedies under the First Lender Deed of Trust include the right of foreclosure or acceptance of a deed or assignment in lieu of foreclosure. After such foreclosure or acceptance of a deed in lieu of foreclosure, this Deed of Trust shall be forever terminated and shall have no further effect as to the Property or any transferee thereafter; provided, however, if the holder of such First Lender Deed of Trust acquired title to the Property pursuant to a deed or assignment in lieu of foreclosure, this Deed of Trust shall automatically terminate upon such acquisition of title, provided that (i) the City has been given written notice of default under such First Lender Deed of Trust with a sixty (60)-day cure period and (ii) the City shall not have cured or commenced to cure the default within such sixty (60)-day period or commenced to cure and given its firm commitment to complete the cure in form and substance acceptable to the First Lender.
8. MISCELLANEOUS PROVISIONS
8.1 Successors and Assigns. The covenants and agreements contained in this Deed of Trust shall bind, and the benefit and advantages hereunder shall inure to, the respective heirs, executors, administrators, successors and assigns of the parties; provided however, nothing in this Section is intended to or shall modify any restrictions on assignment set forth herein or in the Secondary Unit Regulatory Agreement. As used herein, the words "the Beneficiary" means the present Beneficiary or any future owner or holder, including a pledgee of the indebtedness secured hereby.
25 8.2 Headings; Gender, Number. The captions and headings used in this Deed of Trust are inserted only for convenience of reference and in no way define, limit, or describe the scope or intent of this Deed of Trust, or of any particular provision thereof, or the proper construction thereof. Wherever used, the singular number shall include the plural, and the plural the singular, and the use of any gender shall be applicable to all genders.
8.3 Approvals in Writing. Except as otherwise specifically provided herein, whenever any approval, notice, direction, consent, request or other action by the Beneficiary is required or permitted under this Deed of Trust, such action shall be in writing.
8.4 Joint and Several Obligations. If more than one person has executed this Deed of Trust as Trustor, the obligations of all such persons hereunder shall be joint and several.
8.5 Severability. If any provision of this Deed of Trust shall be held by a court of competent jurisdiction to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.
8.6 Indemnification. Trustor agrees to indemnify, defend (with counsel approved by Beneficiary) and hold the Beneficiary, its elected and appointed officers, officials, agents and employees ("lndemnitees") harmless from and against any and all losses, damages, claims, actions, demands, judgments, penalties, costs and expenses (including reasonable attorneys' fees) and liabilities (all of the foregoing, collectively "Claims") which the lndemnitees may sustain or suffer directly or indirectly as a result of or arising in connection with (i) Truster's failure to perform any obligations as and when required by the Secondary Unit Regulatory Agreement or this Deed of Trust, (ii) the failure at any time of any of Truster's representations and warranties to be true and correct, or (iii) any action or omission by lndemnitees in connection with this Deed of Trust, except to the extent any such Claim arises due to the gross negligence or willful misconduct of lndemnitees.
8.7 Notices. Except for any notice required under applicable law to be given in another manner (a) any notice to Truster provided for in this Deed of Trust shall be given by mailing such notice by certified mail directed to the Property address or any other address Trustor designates by notice to Beneficiary as provided herein; and, (b) any notice to Beneficiary shall be given by certified mail, return receipt requested, to Beneficiary's mailing address stated herein or to such other address as Beneficiary may designate by notice to Trustor as provided herein. Any notice provided for in this Deed of Trust shall deem to have been given to Trustor or Beneficiary when given in the manner designated herein.
Beneficiary: City of Pleasanton
City Clerk’s Office
123 Main Street, P.O. Box 520
Pleasanton, CA 94566
Truster: First Name and Last Name
________________
Pleasanton, CA 94566
8.8 Beneficiary Statement. Beneficiary may collect a fee for furnishing the beneficiary statement in an amount not to exceed the amount as provided by Section 2943 of the Civil Code of California.
8.9 Governing Law. This Deed of Trust shall be governed by the laws of the State of California.
IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the date first written above.
TRUSTOR
Signature
Signature
SIGNATURES MUST BE NOTARIZED
27 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of
On ______________________ before me, , Notary Public, (here insert name and title of the officer)
personally appeared __________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature
28 EXHIBIT A
LEGAL DESCRIPTION
2 EXHIBIT C
TO
AGREEMENT
SCOPE OF IMPROVEMENTS AND
TRANSPORTATION DEVELOPMENT FEE CREDIT AREA
3 EXHIBIT D-1
TO
AGREEMENT
ON-SITE MAINTENANCE
4 EXHIBIT D-2
TO
AGREEMENT
OFF-SITE MAINTENANCE
5 EXHIBIT E
TO
AGREEMENT
PRO-RATA COST SHARING FOR OFF-SITE WATER IMPROVEMENTS
6 EXHIBIT F
TO
AGREEMENT
PRO-RATA COST SHARING FOR OFF-SITE SEWER IMPROVEMENTS
7 EXHIBIT G
TO
AGREEMENT
RESOLUTION NO. ____ SHOWING CITY IMPACT FEES
8
9
10
11
12
13
14
15
16
17
EXHIBIT H
TO
AGREEMENT
ESTIMATE OF CITY IMPACT FEES
Development Impact Fee
Fee per Single
Family Detached
Unit
Total Based on 189 Single Family
Detached Dwelling Units
City Water Connection Fee* (1"
Meter) $3,000.00 $567,000.00
Transportation Development Fee $11,642.00 $2,200,338.00 Capital Facilities Fees $20,480.00 $3,870,720.00
City Sewer Fee $500.00 $94,500.00
* Single Family homes with fire sprinkler systems on a combined 1” water meter pay the 1” City connection fee, but only the domestic service portion of the Zone 7 water connection fee based on Zone 7 Ord. FC O-91-68
Item #4
CITY COUNCIL AGENDA REPORT
September 1, 2026
Human Resources
TITLE: AUTHORIZE THE CITY MANAGER TO SIGN THE PROPOSED SIDE LETTER OF AGREEMENT #1 AMENDING THE HAZARDOUS MATERIALS ELEMENTS OF
THE MEMORANDUM OF UNDERSTANDING BETWEEN THE LIVERMORE-
PLEASANTON FIRE DEPARTMENT JOINT POWERS AUTHORITY AND THE INTERNATIONAL ASSOCIATION OF FIREFIGHTERS, LOCAL 1974 WITH TERM ENDING JUNE 30, 2029
SUMMARY
The Livermore-Pleasanton Fire Department Joint Powers Authority (JPA) and the International Association of Fire Fighters, Local 1974, AFL-CIO-CLC (IAFF Local 1974) prepared Side Letter of Agreement #1 to modify provisions of the parties’ existing Memorandum of Understanding (MOU) related to the Hazardous Materials Response Team. The side letter establishes updated language regarding Hazardous Materials (Hazmat) Response Team staffing and assignments, compensation, and the withdrawal process.
BACKGROUND
IAFF Local 1974 represents employees assigned to the Livermore-Pleasanton Fire Department (LPFD) JPA. The JPA and IAFF Local 1974 are parties to a Memorandum of Understanding (MOU) that establishes wages, hours, and other terms and conditions of employment for represented employees.
During negotiations, the parties identified opportunities to address staffing within the Hazmat program, agreed to establish a joint working group to explore potential solutions, and established a temporary provision addressing Haz Mat program staffing, which expired on June 30, 2026. Prior to the expiration of that provision, the parties met and conferred in good faith in accordance with the Meyers-Milias-Brown Act regarding proposed modifications to existing MOU language related to the Hazardous Materials Response Team. The resulting Side Letter of Agreement #1 is intended to supersede any previous oral or written agreements regarding the matters addressed in the side letter. Except as provided in the side letter, all other terms and conditions of employment in the existing MOU remain unchanged.
DISCUSSION
In accordance with the Meyers-Milias-Brown Act, the parties are required to meet and confer in good faith over items covered within the scope of representation, including wages, hours, and other terms and conditions of employment.
The proposed side letter updates the MOU’s hazardous materials provisions to support the Department’s ability to maintain adequate staffing for hazardous materials response above the first responder level. The side letter maintains the Hazardous Materials Response Team “Company” concept at the designated hazmat station and establishes a process for Hazmat Certified Qualified members to support staffing needs, including movement to the designated
hazmat station as needed and in accordance with Department procedures.
The side letter does not change compensation for employees assigned to the Hazardous Materials Response Team, who will continue to receive the existing incentive pay consistent with the MOU. It adds incentive compensation for Hazmat Certified Qualified employees in recognition of the additional training, qualifications, and assignment flexibility required to support the program. Effective July 1, 2026, HMCQ members shall be compensated one-half percent (1.5%) certification pay, increasing to 2% in 2027, and to a total of 2.5% in 2028.
The side letter also addresses participation in the hazmat program, annual training requirements, and Department support for required hazmat technician-specialist certification training. Except as modified by the side letter, all other terms and conditions of the existing MOU remain unchanged.
Approval of the side letter will help encourage employees to obtain and maintain hazmat qualifications and remain available for assignment to the designated hazmat station when needed, supporting the Department’s ability to provide hazardous materials response services.
OUTREACH
This City Council agenda item provides the public with an opportunity to provide input and comments on the key elements of the tentative agreement discussed herein.
FISCAL IMPACT
Based on staff's analysis, the estimated fiscal impact for the City is expected to be up to approximately $72,000 in the current fiscal year, rising to almost $100,000 in FY 2027/28, and just over $126,000 in FY 2028/29. These estimates assume maximum participation of 36 Full- Time Equivalents (FTEs). Staff will present necessary budget adjustments as part of the mid- year budget update process in early 2027.
RECOMMENDATION
Authorize the City Manager to sign the proposed side letter of agreement #1 amending the hazardous materials elements of the Memorandum of Understanding between the Livermore- Pleasanton Fire Department Joint Powers Authority and the International Association of Firefighters, Local 1974 with term ending June 30, 2029
Prepared by: Submitted by: Approved by:
Ella Tabares, Management
Analyst
Xaviera Scoggins, Director of Human
Resources & Labor Relations
Joe Calabrigo, Interim
City Manager
Attachments:
1. Side Letter #1
Item #5
CITY COUNCIL AGENDA REPORT
September 1, 2026
City Manager
Library and Recreation
TITLE: ADOPT ORDINANCE NO. 2310 UPDATING THE PLEASANTON MUNICIPAL CODE TITLE 2 TO MODIFY THE DUTIES, FREQUENCY OF MEETINGS, AND
MAINTENANCE OF MEMBERSHIP FOR THE CIVIC ARTS, HUMAN SERVICES,
LIBRARY, AND PARKS AND RECREATION COMMISSIONS, AND MODIFY THE
MEMBERSHIP AND MEETING FREQUENCY FOR THE YOUTH COMMISSION
The foregoing Ordinance No. 2310 was introduced at a special meeting of the City Council on August 11, 2026 by the following vote:
Ayes: Councilmembers Eicher, Gaidos, Nibert, Testa, Mayor Balch Noes: None
Absent: None
Abstain: None
ORDINANCE NO. 2310
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PLEASANTON AMENDING MUNICIPAL CODE TITLE 2 TO MODIFY THE DUTIES,
MEETING FREQUENCY, AND MAINTENANCE OF MEMBERSHIP OF THE
CIVIC ARTS, HUMAN SERVICES, LIBRARY, AND PARKS AND
RECREATION COMMISSIONS; AND THE MEETING FREQUENCY AND
MEMBERSHIP OF THE YOUTH COMMISSION
WHEREAS, the City's advisory commissions provide important focus on key issues for various segments of the community, for which the commissions then distill, add their own expertise, and make recommendations to the City Council; and
WHEREAS, a City Council ad-hoc subcommittee was formed and met from late 2025 through early 2026, and the Civic Arts, Library, Parks and Recreation, and Youth Commissions have also met to review and make recommendations for updates to their commission's respective duties and meeting frequency.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Finds that the proposed amendments to the Pleasanton Municipal Code have no possibility to have a significant effect on the environment per Title 14 California Code of Regulations (CEQA Guidelines) § 15061(b)(3).
SECTION 2. Amends the Pleasanton Municipal Code as shown in Exhibit A, attached, and incorporated by this reference, to modify the duties, meeting frequency, and maintenance of membership of the Civic Arts, Human Services, Library, and Parks and Recreation Commissions; and the meeting frequency and membership of the Youth Commissions.
SECTION 3. A summary of this ordinance shall be published once within fifteen (15) days after its adoption in "The Valley Times," a newspaper of general circulation published in the City of Pleasanton, and the complete ordinance shall be posted for fifteen (15) days in the City Clerk's office within fifteen (15) days after its adoption.
SECTION 4. This ordinance shall be effective thirty (30) days after its passage and adoption.
{Signatures and votes to follow on the next page}
Ordinance No. 2310
2 The foregoing Ordinance was introduced at a special meeting of the City Council of the City of Pleasanton on August 11, 2026, and adopted at regular meeting on September 1, 2026 by the following vote:
Ayes:
Noes:
Absent:
Abstain:
______________________________
Jack Balch, Mayor
ATTEST:
____________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
____________________________
Daniel G. Sodergren, City Attorney
Ordinance No. 2310
3 EXHIBIT A
CIVIC ARTS COMMISSION
Amends §2.39.020 Duties, by adding the following:
§2.39.020 Duties.
The function of the commission shall be to serve in an advisory capacity to the department and the city council regarding city policies, programs, and services within its scope of expertise, specifically on matters pertaining to cultural, visual, performing, and public art.
The duties of the Pleasanton civic arts commission shall include the following:
A. Develop a commission workplan to be provided to city council for consideration during the budget process. The workplan should be based on the goals and strategies outlined in the ONE Pleasanton Strategic Planby the City Council as well as the role of the commission.
B. Review and recommend policies and plans to the city council related to arts and culture.
C. Seasonally, review the adopted civic arts budget, program and service plans, and key performance indicators.
D. Advise the city council on services and capital projects related to arts and culture.
E. Review and provide recommendations for all works of art to be acquired, relocated, altered or removed by the city as outlined in the Pleasanton Municipal Code Section 13.16.
F. As a community leader, receive arts and culture related feedback from the community.
G. Act as an advocate for arts and culture within the community.
H. Review and recommend grant funding allocations to city council for the community grant program, civic arts category, when funding is available.
I. Serve as liaison between the city and other arts and culture-related entities including, but not limited to: local municipalities, local nonprofits, Alameda County, state, and national agencies.
Amends § 2.39.050 Maintenance of membership, sections A and C, as follows:
§ 2.39.050 Maintenance of membership.
A. Persons appointed to the commission shall continue to serve as members of the commission except when:
1. The commissioner’s term of office on the commission expires;
2. The commissioner voluntarily resigns from the commission;
3. The commission is absent from one-third one quarter of the regular meetings within a six-monthtwelve-month period as provided in subsection C of this section;
4. The commissioner fails to maintain a primary residence within the city;
5. The commissioner is employed with the city in a capacity related to the
Ordinance No. 2310
4 duties of the commission.
C. The following procedures shall apply to termination of office as a result of absences from commission meetings:
1. At the end of each six twelve-month period, the secretary of the commission shall report the attendance record of each member of the commission to the city manager, who shall transmit the record to the city council.
2. The city manager shall notify, in writing, any commissioner who has been absent more than one-thirdquarter or more of regular meetings during the course of a twelve-month period and request that the commissioner submit, in writing, to the city council the reasons for the absences.
3. The city council shall determine if the commissioner’s reasons for the absences were justified. If the city council determines that the reasons for the failure of the member to attend the meetings in question were not justified, the city council shall terminate the term of office of the commissioner and declare the office vacant.
4. If the city council declares such office vacant, the city clerk shall notify the commissioner that the commissioner’s term has been officially terminated.
Amends § 2.39.080 Meetings, section A, as follows:
§ 2.39.080 Meetings.
A. The commission shall meet on a monthly basis at a predetermined time and place, but shall meet at least six times each calendar yearat least four times per calendar year at a predetermined time and place.
B. Special meetings may be called by the chairperson or by a majority of the commissioners, the city manager, and/or the city council, provided written notice is given 48 hours in advance of the special meeting to the following: each commissioner, local newspapers of general circulation, and anyone filing written request for notice with the city clerk. Notice of meetings shall comply in all respects with section 54950 et seq., of the government code, known commonly as the Ralph M. Brown act.
C. All meetings shall be open to the public and shall follow a prepared agenda.
Minutes of all meetings shall be kept and filed with the city clerk.
D. Four commissioners allowed to vote need to be present to constitute a quorum and a vote to approve or deny shall only occur upon a majority vote of the commissioners present who are allowed to vote.
Ordinance No. 2310
5 HUMAN SERVICES COMMISSION
Amends §2.28.020 Duties, as follows:
§2.28.020 Duties.
The function of the commission shall be to serve in an advisory capacity to the department and the city council regarding city policies, programs, and services within its scope of expertise, specifically on matters pertaining to human services.
The duties of the Pleasanton human services commission shall include the following:
A. Develop a commission workplan to be provided to city council for consideration during the budget process. The workplan should be based on the goals and strategies outlined in the ONE Pleasanton Strategic Planby the City Council as well as the role of the commission.
B. Review and recommend policies and plans to the city council related to the human services needs of the community. Emphasis will be given to the human services needs of the socially and economically disadvantaged, the elderly, and youth. socially and economically disadvantaged, the elderly, and youth.
C. Seasonally, review and advise staff on programs and service plans related to human service needs of the community and provide feedback on the evaluation metrics at workplan’s completion.
D. Advise the city council on services and capital projects related to the Eastern Alameda County Human Services Needs Assessment.
E. As community leaders, be aware of and identify human services needs and related feedback from the community and advocate for those community needs.
F. Review and evaluate requests from human services providers for financial assistance, endorsements, grants, and other types of assistance; make recommendations to the City Council regarding such requests.
G. Serve as liaison between the city and other regional human service providers including, but not limited to: local municipalities, local nonprofits, Alameda County, state, and national agencies.
Amends § 2.28.050 Maintenance of membership, sections A and C, as follows:
§ 2.28.050 Maintenance of membership.
A. Persons appointed to the commission shall continue to serve as members of the commission except when:
1. The commissioner’s term of office on the commission expires;
2. The commissioner voluntarily resigns from the commission;
3. The commission is absent from one-thirdone-quarter of the regular meetings within a six twelve-month period as provided in subsection C of this section;
4. The commissioner fails to maintain a primary residence within the city;
5. The commissioner is employed with the city in a capacity related to the duties of the commission.
Ordinance No. 2310
6 C. The following procedures shall apply to termination of office as a result of absences from commission meetings:
1. At the end of each sixtwelve-month period, the secretary of the commission shall report the attendance record of each member of the commission to the city manager, who shall transmit the record to the city council.
2. The city manager shall notify, in writing, any commissioner who has been absent more than one-third quarter or more of regular meetings during the course of a sixtwelve-month period and request that the commissioner submit, in writing, to the city council the reasons for the absences.
3. The city council shall determine if the commissioner’s reasons for the absences were justified. If the city council determines that the reasons for the failure of the member to attend the meetings in question were not justified, the city council shall terminate the term of office of the commissioner and declare the office vacant.
4. If the city council declares such office vacant, the city clerk shall notify the commissioner that the commissioner’s term has been officially terminated.
Amends § 2.28.080 Meetings, section A, as follows:
§ 2.28.080 Meetings.
A. The commission shall meet at least sixfour times per year on the first Wednesday of each month at a time and place set by the commission. The commission may approve an alternate meeting date.
B. Special meetings may be called by the chairperson or by a majority of the commissioners, the city manager, and/or the city council, provided written notice is given 48 hours in advance of the special meeting to the following: each commissioner, local newspapers of general circulation, and anyone filing written request for notice with the city clerk. Notice of meetings shall comply in all respects with section 54950 et seq., of the government code, known commonly as the Ralph M. Brown act.
C. All meetings shall be open to the public and shall follow a prepared agenda.
Minutes of all meetings shall be kept and filed with the city clerk.
D. Four commissioners allowed to vote need to be present to constitute a quorum and a vote to approve or deny shall only occur upon a majority vote of the commissioners present who are allowed to vote.
Ordinance No. 2310
7 LIBRARY COMMISSION
Amends §2.34.020 Duties, by adding the following:
§ 2.34.020 Duties.
The function of the commission shall be to serve in an advisory capacity to the department and city council regarding city policies, programs, and services within its scope of expertise, specifically related to the library.
The duties of the Pleasanton library commission shall include the following:
A. Develop a commission workplan to be provided to city council for consideration during the budget process. The workplan should be based on the goals and strategies outlined in the ONE Pleasanton Strategic Planby the City Council as well as the role of the commission.
B. Review and recommend policies to the city council related to library services.
C. Seasonally, review the adopted library budget, program and service plans, and key performance indicators.
D. Advise the city council on capital projects related to library facilities.
E. As community leaders, receive library related feedback from the community.
F. Act as an advocate for library and cultural programs, services and facilities within the community.
G. Serve as liaison between the city and other library-related entities including, but not limited to: local municipalities, local nonprofits, Alameda County, state, and national agencies.
Amends § 2.34.050 Maintenance of membership, sections A and C, as follows:
§ 2.34.050 Maintenance of membership.
A. Persons appointed to the commission shall continue to serve as members of the commission except when:
1. The commissioner’s term of office on the commission expires;
2. The commissioner voluntarily resigns from the commission;
3. The commission is absent from one-third quarter of the regular meetings within a sixtwelve- month period as provided in subsection C of this section;
4. The commissioner fails to maintain a primary residence within the city;
5. The commissioner is employed with the city in a capacity related to the duties of the commission.
C. The following procedures shall apply to termination of office as a result of absences from commission meetings:
1. At the end of each sixtwelve- month period, the secretary of the commission shall report the attendance record of each member of the commission to the city manager, who shall transmit the record to the city council.
2. The city manager shall notify, in writing, any commissioner who has been
Ordinance No. 2310
8 absent more than one-third of regular meetings during the course of a six- month period and request that the commissioner submit, in writing, to the city council the reasons for the absences.
3. The city council shall determine if the commissioner’s reasons for the absences were justified. If the city council determines that the reasons for the failure of the member to attend the meetings in question were not justified, the city council shall terminate the term of office of the commissioner and declare the office vacant.
4. If the city council declares such office vacant, the city clerk shall notify the commissioner that the commissioner’s term has been officially terminated.
Amends § 2.34.080 Meetings, section A, as follows:
§ 2.34.080 Meetings.
A. Regular meetings shall be held at least sixfour times per year on the first Thursday of each month at a time and place set by the commission. The commission may approve an alternate meeting date.
B. Special meetings may be called by the chair or by a majority of the commissioners, the city manager, and/or the city council provided written notice is given 48 hours in advance of the special meeting to the following: each commissioner, local newspapers of general circulation, and anyone filing written request for notice with the city clerk. Notice of meetings shall comply in all respects with Section 54950 et seq., of the Government Code, known commonly as the Ralph M. Brown Act.
C. All meetings shall be open to the public and shall follow a prepared agenda.
Minutes of all meetings shall be kept and filed with the city clerk.
D. Four commissioners allowed to vote need to be present to constitute a quorum and a vote to approve or deny shall only occur upon a majority vote of the commissioners present who are allowed to vote.
Ordinance No. 2310
9 PARKS AND RECREATION COMMISSION
Amends §2.32.020 Duties, by adding the following:
§ 2.32.020 Duties.
The function of the commission shall be to serve in an advisory capacity to the department and city council regarding city policies, programs, and services within its scope of expertise, specifically on matters pertaining to public parks, off- street trails, open space, and recreation. The duties of the parks and recreation commission shall include the following:
A. Develop a commission workplan to be provided to the city council for consideration during the budget process. The workplan should be based on the goals and strategies outlined in the ONE Pleasanton Strategic Planby the City Council as well as the role of the commission.
B. Review and recommend policies to the city council related to parks, trails and recreational facilities, programs and services.
C. Seasonally, review and advise city staff on program and service plans related to the parks and recreational needs of the community and provide feedback on the evaluation metrics at workplan's completion.
D. Advise the city council on capital projects related to parks, trails and recreational facilities.
E. As community leaders, receive parks, trails, and recreation related feedback from the community.
F. Act as an advocate for parks, trails, and recreation related programs, services and facilities within the community.
G. Serve as liaison between the city and other regional parks, trails and recreational-based entities including, but not limited to: local municipalities, local nonprofits, Alameda County, state, and national agencies.
Amends § 2.32.050 Maintenance of membership, sections A and C, as follows:
§ 2.32.050 Maintenance of membership.
A. Persons appointed to the commission shall continue to serve as members of the commission except when:
1. The commissioner’s term of office on the commission expires;
2. The commissioner voluntarily resigns from the commission;
3. The commission is absent from one-thirdquarter of the regular meetings within a sixtwelve-month period as provided in subsection C of this section;
4. The commissioner fails to maintain a primary residence within the city;
5. The commissioner is employed with the city in a capacity related to the duties of the commission.
C. The following procedures shall apply to termination of office as a result of absences from commission meetings:
6. At the end of each sixtwelve-month period, the secretary of the
Ordinance No. 2310
10 commission shall report the attendance record of each member of the commission to the city manager, who shall transmit the record to the city council.
7. The city manager shall notify, in writing, any commissioner who has been absent more than one-thirdquarter or more of regular meetings during the course of a sixtwelve-month period and request that the commissioner submit, in writing, to the city council the reasons for the absences.
8. The city council shall determine if the commissioner’s reasons for the absences were justified. If the city council determines that the reasons for the failure of the member to attend the meetings in question were not justified, the city council shall terminate the term of office of the commissioner and declare the office vacant.
9. If the city council declares such office vacant, the city clerk shall notify the commissioner that the commissioner’s term has been officially terminated.
Amends § 2.32.080 Meetings, section A, as follows:
§ 2.32.080 Meetings.
A. Regular meetings shall be held at least sixfour times per year on the second Thursday of each month at a time and place set by the commission. The commission may approve an alternate meeting date.
B. Special meetings may be called by the chairperson or by a majority of the commissioners, the city manager, and/or the city council, provided written notice is given 48 hours in advance of the special meeting to the following: each commissioner, local newspapers of general circulation, and anyone filing written request for notice with the city clerk. Notice of meetings shall comply in all respects with Section 54950 et seq., of the Government Code, known commonly as the Ralph M. Brown Act.
C. All meetings shall be open to the public and shall follow a prepared agenda.
Minutes of all meetings shall be kept and filed with the city clerk.
D. Four commissioners allowed to vote need to be present to constitute a quorum and a vote to approve or deny shall only occur upon a majority vote of the commissioners present who are allowed to vote.
Ordinance No. 2310
11 YOUTH COMMISSION
Amends §2.29.030 Memberships-Appointments, section B, as follows:
§ 2.29.030 Memberships—Appointments.
A. The commission shall have 15 regular commissioners, all of whom shall be residents of the city.
B. The 15 regular commissioners shall include: three students from middle school; six students who are high school freshmen or sophomores; and six students who are high school juniors or seniors. three students from middle school and twelve students from high school.
C. Commissioners shall be appointed by the Mayor subject to ratification by the city council, as provided in the adopted city resolution establishing procedures for appointments to boards and commissions.
D. Commissioners shall be eligible to participate in all activities of the commission.
E. Commissioners shall be compensated as established by city council resolution or as allowed by state law.
Amends § 2.29.080 Meetings, section A, as follows:
§ 2.29.080 Meetings.
A. Regular meetings shall be held on the second Wednesday of each month, SeptemberOctober through MayApril, at a time and place set by the commission.
The commission may approve an alternate meeting date.
B. Special meetings may be called by the chairperson or by a majority of the commissioners, the city manager, and/or the city council, provided written notice is given 48 hours in advance of the special meeting to the following: each commissioner, local newspapers of general circulation, and anyone filing written request for notice with the city Clerk. Notice of meetings shall comply in all respects with Section 54950 et seq., of the Government Code, known commonly as the Ralph M. Brown Act.
C. All meetings shall be open to the public and shall follow a prepared agenda.
Minutes of all meetings shall be kept and filed with the city Cclerk.
D. Eight commissioners need to be present to constitute a quorum and a vote to approve or deny shall only occur upon a majority vote of the commissioners present who are allowed to vote.
Item #6
CITY COUNCIL AGENDA REPORT
September 1, 2026
Public Works - Engineering Division
TITLE: ACCEPT PUBLIC IMPROVEMENTS PERFORMED BY INTEGRA
CONSTRUCTION SERVICES, INC., FOR THE DELUCCHI PARK MUSICAL PLAZA, CIP NO. 26788
SUMMARY
The Delucchi Park Musical Plaza, CIP No. 26788, included construction of the Don Lewis Harmonic Symphony and associated plaza in Delucchi Park. Construction occurred in two phases: the plaza was constructed in November 2025, followed by the installation of the musical equipment and trees in May 2026. The project is now complete to the satisfaction of the Director of Public Works, for a total project cost of $56,521.
BACKGROUND
On July 15, 2025, the City Council approved a funding appropriation of $60,000 for installation of the Don Lewis Harmonic Symphony public art project at Delucchi Park. In September 2025, the City solicited three informal bids from contractors with prior experience working for the City.
The City Manager administratively awarded a contract to Integra Construction Services, Inc., in accordance with the City’s Purchasing and Procedures Policy, for $50,021, including a construction contingency of $7,500.
DISCUSSION
The first phase of the project, construction of the concrete plaza and art pedestal, was completed in November 2025 to allow the concrete to fully harden. In late January 2026, staff approved a change order for $6,500 for the installation of two concrete trash pads and removal and replacement of several irrigation valve boxes. The change order work, installation of the musical play equipment, and the trees were completed in May 2026 in preparation for the installation of the Don Lewis Harmonic Symphony sculpture. The sculpture arrived and was installed on June 4, 2026. A dedication ceremony was held that same day.
EQUITY AND SUSTAINABILITY
Approval of this action advances the Climate Action Plan (CAP 2.0) in Transportation and Land Use by providing greater park accessibility for all users.
OUTREACH
No outreach was conducted, as this item is a routine matter of City business.
FISCAL IMPACT
The total budget for the project was $70,461, consisting of $60,000 appropriated by the City Council from the Public Facilities Impact Fee Fund (Fund 203) and $10,461 in Alameda County park impact fees designated specifically for Lions Wayside and Delucchi Parks. The total project cost for the Delucchi Park Musical Plaza project, CIP No. 26788, was $56,521,
which included the original contract amount of $50,021 and one construction change order totaling $6,500. The remaining project budget of $13,940 in the Public Facilities Impact Fee Fund (Fund 203, Account No. 20330112-440108- 26788) will be reduced to $0 as part of the year-end budget review process.
RECOMMENDATION
Accept the public improvements performed by Integra Construction Services, Inc. for the Delucchi Park Musical Plaza Project, CIP No. 26788, as complete; and authorize the City Clerk to file a Notice of Completion.
Prepared by: Submitted by: Approved by:
Michael Stella, City
Engineer
Siew-Chin Yeong, Director of Public
Works
Joe Calabrigo, Interim
City Manager
Attachments:
1. Financial Expenditure Summary
ATTACHMENT 1
Project Funding to Date Amount Totals
2025-26 CIP Allocation (Fund 203 - Public Facilities Impact Fees) Mid Year Review $10,461
2025-26 Transfer from Public Facilities Impact Fees (Fund 203) per CCAR 07/15/25 60,000
TOTAL FUNDING TO DATE
Pro
ject Expenditures
Integra Construction Services Inc. - Construction Contract $50,021 Integra Construction Services Inc. - Change Order No. 1 6,500
TOTAL PROJECT EXPENDITURES
Funding Balance/ (Shortfall)
Project Balance 13,940
$56,521
$70,461
DELUCCHI PARK MUSICAL PLAZA
CIP NO. 26788
09/01/26
Item #7
CITY COUNCIL AGENDA REPORT
September 1, 2026
Public Works - Engineering Division
TITLE: ACCEPT PUBLIC IMPROVEMENTS PERFORMED BY PARK PLANET, INC., FOR THE ANNUAL PLAYGROUND RENOVATIONS PROJECT, CIP NO. 25745, TO
RENOVATE THE PLAYGROUND AT MOLLER PARK
SUMMARY
The Annual Playground Renovations Project, CIP No. 25745, included the design, fabrication, and installation of replacement play equipment at Moller Park. Installation occurred from January through July 2026. The project is now complete to the satisfaction of the Director of Public Works, for a total project cost of $177,018.
BACKGROUND
The Moller Park playground was identified as one of the oldest playgrounds in the city with the greatest need of replacement play equipment as part of the 2025/26 Capital Improvement Program (CIP) work plan. In March 2025, the City issued a Request for Qualifications (RFQ) for the play equipment replacement. On April 30, 2025, the City received five qualification packages. Park Planet was selected based on the quality of the design, the amount and quality of equipment provided within the available budget, and the company’s capabilities. Staff conducted public outreach in May 2025.
On October 7, 2025, the City Council authorized a professional services agreement with Park Planet for the design, fabrication, and installation of new play equipment for $166,251, with an approved construction contingency of $16,625, or approximately 10 percent. Construction began in January 2026.
DISCUSSION
Installation of the Moller Park play equipment was substantially completed on February 6, 2026. Following installation, several storms caused minor flooding within the playground area.
On May 6, 2026, staff approved a change order for drainage improvements totaling $9,600.
The contractor completed the drainage improvements and all remaining punch list items in July 2026.
EQUITY AND SUSTAINABILITY
Approval of this action advances the Climate Action Plan (CAP 2.0) in Transportation and Land Use by providing greater park accessibility for all users.
OUTREACH
Construction notifications were sent to all properties within 300 feet of Moller Park, and construction signs were posted within the park.
FISCAL IMPACT
The total budget for the Annual Playground Renovation project at Moller Park, CIP No. 25745 was $184,044. The total project cost was $177,018, consisting of the original contract amount of $166,251, one change order totaling $9,600, and advertising costs of $1,168. Remaining budget will be returned to the Park CIP - General Fund as part of the year-end budget review process.
RECOMMENDATION
Accept the public improvements performed by Park Planet for the Annual Playground Renovations Project, CIP No. 25745, as complete; and authorize the City Clerk to file a Notice of Completion.
Prepared by: Submitted by: Approved by:
Michael Stella, City
Engineer
Siew-Chin Yeong, Director of Public
Works
Joe Calabrigo, Interim
City Manager
Attachments:
1. Financial Expenditure Summary
ATTACHMENT 1
Project Funding to Date Amount Totals
2024-2026 CIP Allocation (Fund 221 - Park CIP) $550,000 Per CCAR 10/07/25 Return to Fund Balance (365,956)
TOTAL PROJECT FUNDING
Project Expenditures to Date
Advertising $1,168
Park Planet - Construction Contract (C#2026313) 166,250 Park Planet - Construction (Contract Change Order No.1) 9,600 TOTAL PROJECT EXPENDITURES $177,018
Funding Balance/ (Shortfall)
Current Balance $7,026
$184,044
CIP NO. 25745
ANNUAL PLAYGROUND RENOVATIONS PROJECT
09/01/26
Item #9
CITY COUNCIL AGENDA REPORT
September 1, 2026
Public Works - Utilities Division
TITLE: AUTHORIZE THE CITY MANAGER TO NEGOTIATE AND EXECUTE AN AGREEMENT WITH ZONE 7 WATER AGENCY FOR THE DESIGN,
CONSTRUCTION, AND OPERATION OF A REGIONAL GROUNDWATER
DEVELOPMENT PROJECT - PHASE II AND PHASE III
SUMMARY
The proposed agreement establishes the framework for the City and Zone 7 Water Agency (Zone 7) to jointly design, construct, and operate new groundwater facilities in the Bernal Subbasin. The project will restore Pleasanton's use of its 3,500 acre-feet per year groundwater production quota (GPQ) following the loss of the City's existing groundwater wells due to PFAS (per- and polyfluoroalkyl substances) contamination. Authorizing the agreement allows both agencies to advance project delivery toward the target operational date of December 2029.
BACKGROUND
Historically, approximately 20 to 25 percent of Pleasanton’s water was provided by local groundwater wells. However, in 2022, the City took these wells offline after detecting PFAS. In 2024, the City Council approved an agreement with Zone 7 to evaluate the feasibility of a Joint Groundwater Wells Project. The feasibility study (Phase I) was completed in 2025 and identified Pleasanton Tennis and Community Park and Hansen Park as feasible locations for new groundwater wells. On April 21, 2026, the City Council directed staff to proceed with a joint project with Zone 7, and draft an agreement for Phase II (Design and Construction), and Phase III (Operations) of the new facilities.
The current estimate is in line with the project allowance included in the Water Rate Study of $27 million in 2024 dollars, or approximately $29 million in 2026 dollars. The City’s cost share for the project, including improvements to the City’s water distribution system required by the project and solely funded by the City, is provided in the table below.
Table 1. Capital Cost Estimate1 – City Share
Feasibility Studies2 $1.5 million
Regional Groundwater Development with Zone 73 $15.2 million City Water Distribution Improvements4 $12.3 million
Total $29.0 million
1. Cost estimate is in January 2026 dollars.
2. City received a $1 million grant from the State Water Board to help fund the feasibility studies.
3. Capital cost estimate is the City’s cost share per the City and Zone 7 agreement.
4. Capital cost estimate is the sole responsibility of the City.
DISCUSSION
Staff worked with Zone 7 to establish a draft term sheet based on the feasibility study to develop the draft agreement (Attachment 2), with key terms summarized below.
Project Overview
The project includes construction of new groundwater production wells at Tennis Park and Hansen Park, installation of raw groundwater pipelines connecting the wells to Zone 7's Hopyard Chloramination Facility, and improvements to the Hopyard Chloramination Facility to increase treatment capacity.
Zone 7 would operate the new groundwater supply facilities as part of its overall water supply system and deliver the City’s GPQ through turnouts to the City distribution system.
Improvements to the City’s distribution system required to convey the GPQ under future demand conditions are solely funded by the City, and are excluded from the proposed agreement with Zone 7.
Design and Construction
The agreement designates Zone 7 as the lead agency for project delivery. As lead agency, Zone 7 will be responsible for environmental review, permitting, procurement, design and construction, and consultant and contractor administration. The project will use a Progressive Design-Build (PDB) method, allowing the design team and contractor to collaborate during design development and establish a Guaranteed Maximum Price prior to construction.
Although Zone 7 will administer the project, the agreement provides the City with meaningful participation throughout design and construction. The City will lead community outreach, review project deliverables, and provide input on design. Zone 7 retains final authority over technical and operational decisions affecting the groundwater system to guarantee delivery of 3,500 acre-feet per year GPQ to Pleasanton. Zone 7 shall seek the City's approval on design of project features affecting City-owned property, including facility aesthetics, location, and noise.
The current estimated total capital cost for the project is $42.3 million in 2026 dollars. The agreement establishes proportional cost sharing based on each agency's reserved production capacity under average groundwater basin conditions. For the joint wells and raw groundwater pipelines, the City's share is 36 percent, with Zone 7 funding the remaining 64 percent. For improvements to the Hopyard Chloramination Facility, the City's share is 23 percent, with Zone 7 funding 77 percent. Each agency is responsible for its own self-performed costs. Zone 7 will invoice the City quarterly for its share of eligible consultants and contractor costs, with supporting documentation provided for each invoice.
Key Agreement Provisions
The agreement includes several provisions that protect the City's interests, including:
• The City shall be entitled to a minimum annual Groundwater Supply from the Project of 3,500 acre-feet per year (AFY), produced and delivered at a maximum daily volume of
6.2 million gallons per day (MGD).
• Either agency may discontinue participation in the project before construction begins during the design phase by providing written notice. If either agency exercises this
option, each party remains responsible only for its proportionate share of costs incurred through the effective termination date.
• Zone 7 must continue supplying the City’s GPQ at wholesale rates during the design and construction phases and until the project is operational. If the project is delayed beyond the operational date due solely to Zone 7, the City will receive its interim groundwater allocation at the reduced In-Lieu Treated Water rate until the project becomes operational. Conversely, delays attributable to the City may result in a corresponding extension of the project schedule.
• Zone 7 must provide the City with written notice of proposed change orders exceeding the lesser of 5 percent or $100,000. The City will have 10 work days to provide comments, which Zone 7 must consider before approval. Change orders or budget deviations exceeding the approved contingency/allowance will require prior approval by the governing bodies of both the City and Zone 7.
Operation and Long-Term Responsibilities
Following construction completion, Zone 7 will own, operate, and maintain the joint groundwater facilities in compliance with all applicable regulatory requirements. The City will continue to retain its contractual GPQ of 3,500 acre-feet per year under its Municipal and Industrial Water Supply Contract with Zone 7. The City will annually provide its anticipated groundwater delivery schedule, while Zone 7 will use reasonable efforts to accommodate seasonal requests for a higher groundwater blend to support water quality management within the City's distribution system.
Zone 7 will receive permanent easements on City-owned land for the ownership, operation, and maintenance of the new groundwater well facilities. In turn, Zone 7 must comply with the Public Park Preservation Act of 1971, which requires Zone 7 to fund park improvements of comparable value to the land used within the parks for the new groundwater facilities.
Annual operation and maintenance costs will be allocated based on the City's proportional use of the project facilities. Zone 7 will establish annual provisional cost rates, bill the City monthly, and reconcile projected and actual costs through an annual true-up process. The agreement also preserves the City's flexibility to satisfy all or part of its groundwater demand from alternative water sources without losing its contractual groundwater entitlement or incurring financial penalties. Likewise, Zone 7 reserves the right to operate other water supply facilities and use other water sources, including treated surface water, to deliver the City’s GPQ. In that event, the City will continue to be billed based on the unit costs of the project facilities for the full GPQ volume.
Repair, replacement, and/or enhancement of the project facilities may be required over time to address aging equipment or meet changing regulations. These activities go beyond the scope and cost magnitude of typical maintenance. As owner of the facilities, Zone 7 will be solely responsible for identifying, funding, and implementing such repair, replacement, and enhancement needs.
Zone 7 intends to own and operate the facilities throughout their useful life, providing the City with a long-term groundwater supply partnership. The term of this agreement is through December 31, 2055, matching the term of the City’s Municipal and Industrial Water Supply Contract with Zone 7.
Project Budget and Schedule
Zone 7 will prepare and maintain the project budget and schedule, with a current target operational date of December 28, 2029. The City will review and comment on the budget and schedule as the project advances, and Zone 7 will provide regular project status updates. The agreement establishes coordinated milestones requiring both agencies to obtain funding authorization from their governing body at key phases of the project. This approach allows each agency to maintain independent financial oversight while keeping the project schedule aligned.
The agreement also establishes a structured dispute resolution process requiring unresolved project issues to be elevated from staff to executive management before further action is taken.
EQUITY AND SUSTAINABILITY
This project prepares community water resources for a changing climate, resulting in cost savings, enhanced water quality and availability, improved infrastructure, and increased resiliency.
OUTREACH
The project has included community engagement efforts led by the City, including a project website, community engagement events, and notifications of exploratory drilling activities.
These efforts will continue throughout design and construction.
FISCAL IMPACT
Authorization of this agreement will be funded under the City Groundwater Supply Project (CIP No. 24174). The latest five-year Water CIP, approved by the City Council in May 2026, includes $30.5 million, for this project. With a $1 million grant from the State Water Board spent in prior years, the total project budget is $31.5 million, including escalation estimates for future years.
RECOMMENDATION
Authorize the City Manager to negotiate and execute an agreement with Zone 7 Water Agency for the design, construction, and operation of the Regional Groundwater Development Project - Phase II and Phase III.
Prepared by: Submitted by: Approved by:
Todd Yamello, Utilities
Planning Manager - Public
Works
Siew-Chin Yeong, Director of Public
Works
Joe Calabrigo, Interim
City Manager
Attachments:
1. Groundwater Supply Facility Agreement
2. Presentation
Attachment 1
5298389.1
GROUNDWATER SUPPLY FACILITY
DESIGN, CONSTRUCTION AND OPERATION AGREEMENT
This Groundwater Supply Facility Design, Construction and Operation Agreement (“Agreement”) is entered into and effective this __ day of _________, 2026 (“Effective Date”) by and between Alameda County Flood Control and Water Conservation District, Zone 7 (“Zone 7”) and the City of Pleasanton (“City”). Zone 7 and City are each sometimes referred to herein as a “Party” or, collectively, as the “Parties”.
RECITALS
A. Zone 7’s mission is to deliver safe, reliable, efficient and sustainable water and flood protection services to customers within its service area.
B. In order to do this, Zone 7 must develop a diversified water supply plan and implement supported projects and programs.
C. Because Zone 7’s primary water supply is heavily dependent on water from the State Water Project, and that supply has become increasingly unreliable due to aging infrastructure, climate change, and increasingly stringent regulations resulting from declining ecosystem conditions, Zone 7 seeks to develop other supply and storage to increase the proportion of its portfolio that comes from local sources.
D. In addition to its role and mission as water supplier to its customers, Zone 7 is the designated Groundwater Sustainability Agency (GSA) in charge of managing the Livermore Valley Groundwater Basin (“Main Basin”).
E. Zone 7 is therefore responsible for ensuring that the development of the groundwater supply within the Main Basin complies with the principles of the Sustainable Groundwater Management Act (SGMA), including Safe Yield.
F. City purchases a water supply from Zone 7 pursuant to that certain Contract Between Zone 7 Water Agency and City of Pleasanton for a Municipal & Industrial Water Supply (“Supply Contract”, a copy of which is attached hereto as Exhibit “A”) entered into on or about July 7, 2026.
G. The Supply Contract provides for the City’s extraction and conveyance of groundwater from the Main Basin up to a “Groundwater Pumping Quota” (GPQ), as that term is defined in the Supply Contract.
H. In 2022, the City’s existing wells were taken offline as a result of PFAs contamination in the surrounding basin, resulting in the City no longer being able to access its GPQ.
I. With the understanding that the Groundwater Supply is limited by the GPQ, which is governed more generally by SGMA, the Main Basin’s Groundwater Sustainability Plan (GSP), the Supply Contract, and associated projects and limitations on pumping, the Parties have agreed to construct additional groundwater wells and accompanying infrastructure for the delivery of the
5298389.1
Groundwater Supply to the City, up to the amount of the GPQ, within the Bernal Subbasin (“Subbasin”).
J. The Parties wish to memorialize their agreement related to designing, constructing, operating, and owning the groundwater wells and accompanying infrastructure (“Project”), as well as the City’s entitlement to the Groundwater Supply generated by the Project.
AGREEMENT
1. Purpose. The purpose of this Agreement is to set out the Parties’ respective obligations with regard to the design, construction, and operation of the Project.
2. Term. This agreement shall become fully effective as of the Effective Date and shall continue until December 31, 2055, unless earlier terminated or extended by written agreement of the Parties.
3. Facilities. The Project includes the design and construction of new groundwater wells (“Wells”) at Pleasanton Tennis and Community Park and Hansen Park, located within the City of Pleasanton (“Sites”), the design and construction of new raw groundwater pipelines (“Pipelines”) from the Wells to Zone 7’s Hopyard Chloramination Facility (“Hopyard”), and the design and construction of upgrades to Hopyard for increased capacity (“Hopyard Upgrades”).
Zone 7 shall operate these Facilities as part of its overall water supply system and deliver the Groundwater Supply to the City via turnouts. Any other improvements to Zone 7’s water supply system or the City’s distribution system are excluded from the scope of the Project.
4. Design, Permitting, and Construction.
4.1 Designated Lead Agency. Zone 7 shall act as the lead agency for the Project and shall be responsible for all tasks necessary for the successful design, permitting, and construction of the Project, with the exception that the City shall be responsible for community outreach regarding the Project during the Project’s design, permitting and construction phases. Specific anticipated tasks are noted below:
Task Responsible/Lead Agency
Preliminary Design and RFP
Development for PDB Services
Zone 7
CEQA Zone 7
Permitting, as applicable (e.g.
encroachment permits, stormwater
discharge permits)*
Zone 7
Pre-Construction Phase Services
(Design through 60%, GMP
development, Owner Rep Services)
Zone 7
Award of Early Works Procurement
Package
Zone 7
5298389.1
Construction Phase Services (final
design, construction, construction
management, Owner Rep Services)
Zone 7
Community Outreach City
Electric Utility Service Zone 7
*Except as exempted by Government Code Section 53091 or other applicable law
4.2 Project Schedule. During the preliminary design phase of the Project, Zone 7 shall develop a “Project Schedule” that identifies Project milestones and deliverables, and the anticipated dates of commencement and completions for such milestones and deliverables, provided that the anticipated Project operational date shall be set as December 28, 2029 (“Startup Date”). Zone 7 shall submit the proposed Project Schedule to City for review and comment. Zone 7 agrees to consider City’s comments on the Project Schedule and to incorporate City’s comments where appropriate and feasible. Zone 7 shall provide quarterly written reports to City on the state of the Project Schedule for the duration of the design, permitting, and construction phase of the Project. Failure to comply with the Project Schedule due to market conditions, delays in funding authorizations, contractor breach of contract or other failure to perform, or other factors outside of Zone 7’s control shall not constitute a material breach of this Agreement.
4.3 Project Budget. The total estimated cost of design, permitting, and construction of the Project is $42.3 million. As the lead agency, Zone 7 shall be responsible for allocating the project budget amongst the services and contracts necessary to deliver the Project. Zone 7 shall provide quarterly written reports to City on the state of the Project Budget for the duration of the design, permitting, and construction phase of the Project. The Project Budget does not include the costs of self-performing tasks for the Parties, such as project management, consultant management, and deliverable reviews.
4.4 Project Authorizations. Zone 7 shall obtain funding authorization from the governing body of both Parties to proceed with contracts for services prior to entering into agreements and prior to issuing amendments/change orders that exceed the allowance/contingency included in the original approval. Matters that do not require funding authorization, even if they require Zone 7’s governing body approval (e.g., CEQA approval), shall not require authorization from the City’s governing body. Staff representing the City may provide updates to its governing body as needed.
4.5 Cost Sharing.
4.5.1 Allocation. City and Zone 7 shall proportionally share the costs of design, permitting, and construction of the Project based on the City’s GPQ expressed as a percentage of the Project’s estimated annual production capacity for average year basin conditions. City shall be responsible for 36%, and Zone 7 for 64%, of the costs of design, permitting, and construction of the Wells and Pipelines; City shall be responsible for 23%, and Zone 7 for 77%, of the costs of design, permitting, and construction of the Hopyard Upgrades. The Parties shall each bear their own costs associated with self-performing tasks including project management,
5298389.1
consultant management, and deliverable reviews, and these costs are not included in the total Project Budget listed in Article 4.3.
4.5.2 Billing and Payment. Zone 7 shall invoice City quarterly for its cost share of direct consultant/contractor costs incurred in the prior three (3) calendar months. Each invoice must include supporting documentation and a budget summary. The budget summary shall be a line-item summary divided by agreement and task that includes budget, expenses to date, and percent expended vs. percent complete. City shall remit payment in full within sixty (60) days of the invoice date. After 60-days, the invoice will accrue interest at a rate of ten percent (10%) per annum.
4.5.3 Change Orders and Deviations from Budget. In the event any contractor, subcontractor, other construction professional, or design professional proposes a change order, increasing the cost of design, construction, management, or any line item within its applicable scope of work by the lesser of: a) more than 5%, or b) more than $100,000, Zone 7 shall submit a written change order for City’s review within ten (10) workdays of receipt. The City shall provide written comments within ten (10) work days. Zone 7 shall not authorize the changed or additional work to proceed prior to receiving City comments on the change order, unless the City does not respond within the ten (10) workdays. Zone 7 shall consider such City comments before approving the change order. However, within the change order allowance/ contingency included in the original funding proposal, after considering City comments, Zone 7 shall have sole discretion to approve any change order that it determines is appropriate and necessary for the successful completion of the project.
If any change orders or deviations from the budget exceeding the change order allowance/contingency included in the original funding proposal, such change orders or budget deviation(s) shall require prior funding authorization from the governing body of both parties. Such change orders shall be placed before the respective governing bodies within 45 days of receipt of proposals.
4.5.4 Funding Authorizations.
(a) Authorization Procedure. The Parties understand and agree that, notwithstanding the fact this Agreement provides an overall budget, the nature of the Parties as public agencies is such that at times the Parties will be required to seek the actual appropriation of funds approved via this Agreement for Project purposes. City agrees that, when Zone 7 requires funding authorization from its Board of Directors, City will seek corresponding funding authorization from its City Council in an amount sufficient to cover its proportional allocation as defined in this Agreement. City shall use its best efforts to obtain such authorization within two (2) weeks of Zone 7’s
5298389.1
governing body authorization of funds for Project purposes.
Similarly, when Zone 7 requires funding authorization from its General Manager (or assigned delegate), City shall seek corresponding funding authorization from its City Manager (or assigned delegate). City shall obtain such authorization within one (1) week of Zone 7 General Manager’s (or delegate’s) authorization. (b) Anticipated Authorizations. Anticipated funding authorization milestones are expected to include: (1) the award of preliminary design services contracts and the development of requests for proposal for progressive design-build services; (2) the award of contracts for preconstruction phase services and owner
representative services for the preconstruction phase; (3) the award of procurement contracts; and (4) the award of contracts for construction phase services and owner representative services for the construction phase. To facilitate the City’s funding authorizations, Zone 7 will provide the City with the final consultant/contractor proposals that include scope, budget, and schedule for related services, and updates on the state of overall Project Budget and Schedule based on the proposals.
(c) Authorization Schedules. In conjunction with development of the Project Schedule, Zone 7 shall develop a schedule of the anticipated dates at which it will require funding authorizations. Zone 7 shall include those anticipated dates in the Project Schedule.
4.5.5 Third-Party Funding. If either Party seeks funding (such as through the California Drinking Water State Revolving Fund, grants, or bonds), the Parties agree to cooperate to ensure that the Project’s design, permitting, procurement, construction contract requirements, and schedule support eligibility and compliance with all applicable funding program requirements.
4.6 Project Design and Construction.
4.6.1 Progressive Design-Build. Zone 7 shall utilize a Progressive Design Build (PDB) approach to retaining professional(s), contractor(s), and/or owner representative(s) to design, construct, and manage the Project. As to design, the Project shall proceed in three design phases (1) preliminary design, (2) 60% design, and (3) final design. At each phase, and prior to adopting a final submittal for such phase City shall have the opportunity to review and comment on the proposed design. As to construction, the Project shall proceed in three construction phases (1) pre-construction phase services, (2) procurement, and (3) construction.
4.6.2 Responsibility. At each phase, and prior to adopting a final proposal or schedule for such phase, City shall have the opportunity to review, comment
5298389.1
on, and approve the proposal and/or schedule. Zone 7 shall provide City with sufficient information reasonably necessary for City to evaluate the proposed design, proposal, schedule, and construction activities and their potential impacts on City Sites, park operations, park users, adjacent residents, and the surrounding community.
Zone 7 and the City shall work collaboratively and efficiently to incorporate Zone 7 and City’s comments. For design and construction, Zone 7 shall address and incorporate City comments related to impacts of the Facilities to the Sites, including location, aesthetics, noise, access, construction staging, park operations, impacts to park users, landscaping, traffic, and other material impacts to City Sites and surrounding residents and the community, to the extent feasible. Zone 7 shall design, construct, and operate the Facilities in compliance with all applicable federal, state, and local laws, regulations, codes, ordinances, zoning requirements, and applicable City planning requirements, and shall obtain all permits, approvals, and authorizations required by applicable law, including any zoning, use, planning, building, or other permits or approvals required for the Project.
Zone 7 shall be responsible for identifying, designing, coordinating, and completing all park improvements, site improvements, restoration, replacement, relocation, and mitigation measures reasonably required in connection with the construction, installation, and operation of the Facilities at the City Sites, including any improvements or measures required as a condition of any applicable zoning, use, planning, or other approval. All such park improvements and mitigation measures shall be designed and constructed to the reasonable satisfaction of City and shall be included as Project costs and subject to the applicable Project cost-sharing provisions, unless otherwise expressly agreed in writing by the Parties. Zone 7 shall coordinate with City regarding the scope, design, timing, and implementation of such improvements and mitigation measures.
With respect to matters that materially affect City Sites, park operations, public access, park users, adjacent residents, aesthetics, noise, construction staging, landscaping, traffic, or other material community or City operational impacts, Zone 7 shall seek City’s review and approval of the elements before implementing the applicable design or construction element. Where City approval is expressly required under this Agreement or applicable law, Zone 7 shall obtain such approval before proceeding. City approval shall not be unreasonably withheld, conditioned, or delayed.
If, following City review or approval of a design or construction plan, Zone 7 proposes a material change that could reasonably be expected to materially affect any of the foregoing matters, Zone 7 shall provide City with an opportunity to review and comment on such material change prior
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to implementation and, where required under this Agreement or applicable law, shall obtain City’s prior written approval.
The foregoing is intended to reflect the City’s role as project partner and owner of the City Sites. Nothing in this Agreement shall be construed to waive, limit, or supersede any applicable zoning, planning, building, land- use, or other regulatory requirements or any permit or approval required by City or another governmental agency having jurisdiction over the Project.
Conversely, any contractual review or approval rights expressly provided to City under this Agreement are separate from and in addition to any regulatory permits or approvals required by applicable law.
For design and construction reviews, City shall have fourteen (14) days from delivery of the applicable design, proposal, schedule, or other materials to provide written comments in exception to 65% design and at the 100% design milestone. Zone 7 shall provide such materials sufficiently in advance of the proposed adoption or implementation date to allow City a full fourteen (14)-day review period. City shall provide consolidated written comments within such fourteen (14)-day period.
Zone 7 shall seek City’s agreement on Project components such as aesthetics, location, and noise associated with well housing facilities located on City owned property, and Zone 7 shall seek City’s approval prior to approval of the 65% detail design and at the 100% design milestone. Zone 7 shall dedicate a minimum of 45 workdays from the submittal date for community outreach and governing body approval.
Zone 7 and City shall work in good faith to resolve material disagreements concerning City comments, and Zone 7 shall not proceed with a disputed design or construction element that would materially affect City Sites, park operations, public access, or park users until the applicable issue has been resolved.
4.6.3 Contracting Party. Zone 7 shall have sole authority and responsibility for entering into a contract(s) with consultants/professionals/contractors to perform services related to Project design and construction phases.
4.6.4 Basis of Design. The Project’s design shall be based on the specifications outlined and discussed in that certain Regional Groundwater Facilities Project Feasibility Study, authored December 2025 by consultant LSCE, including Appendix J - Basis of Design Report (BODR).
4.6.5 Retention of Project Professionals and Contractors. Zone 7 shall develop a request(s) for proposal for the PDB for the Project (“RFPs”) and provide to the City for review prior to release and shall consider City’s comments.
Zone 7 shall be solely responsible for the solicitation of bids/responses to the RFPs. Upon receipt of proposals/qualification/bids (“Bids”) in response
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to the RFPs, Zone 7 shall provide Bids to the City for review and shall consider City comments and feedback in Zone 7’s selection of winning bids.
For RFPs and Bids, the City shall have seven (7) days from delivery to City to provide comments to Zone 7.
4.6.6 Design Performance Criteria. The Project shall be designed with the objective to achieve the following production capacity benchmarks. (a) Wells Production Capacity
Basin Condition Production Capacity Tennis Park Hansen Park Total Facility Flow Rate (MGD) 4.9 4.9 9.8 Drought Years
Annual Production (AFY) 4,100 4,100 8,200
Facility Flow Rate (MGD) 6.1 5.5 11.6 Average Years
Annual Production (AFY) 5,100 4,600 9,700
Facility Flow Rate (MGD) 7.3 6.1 13.4 Wet Years
Annual Production (AFY) 6,200 5,100 11,300
Notes:
Annual production capacity assumes a 75% run time consistent with Zone 7 reliability goals.
(b) Hopyard Production Capacity
Basin
Condition
Production
Capacity
New
Joint
Wells
Zone 7
Hopyard 6
Well
Zone 7
Hopyard 9
Well
Total
All Wells
Facility Flow Rate
(MGD)
9.8 4.9 1.3 16 Drought
Years
Annual Production
(AFY)
8,200 4,100 1,100 13,400
Facility Flow Rate
(MGD)
11.6 5.4 1.4 18.4 Average
Years
Annual Production
(AFY)
9,700 4,500 1,200 15,400
Facility Flow Rate
(MGD)
13.4 5.8 1.6 20.8 Wet Years
Annual Production
(AFY)
11,300 4,900 1,300 17,500
Notes:
Annual production capacity assumes a 75% run time consistent with Zone 7 reliability goals.
4.6.7 Guaranteed Capacity Allocation. The City shall be entitled to a minimum annual Groundwater Supply from the Project of 3,500 acre-feet per year (AFY), produced and delivered at a maximum daily volume of 6.2 million gallons per day (MGD).
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4.7 Project Permitting. Except as exempted by the Government Code Section 53091 and other relevant sections of law, Zone 7 shall be responsible for obtaining and complying with all applicable local, state, or federal permits necessary for the design, construction, and operation of the Project. Such permits include, but are not limited to, stormwater pollution prevention plans during construction, NPDES permits and other permits necessary to allow for the discharges of wastewater, certification or other approval of any environmental review required under CEQA or the National Environmental Policy Act (NEPA), compliance with environmental and other regulations such as the Endangered Species Act, SGMA, water quality standards, etc. Zone 7 shall be solely authorized and responsible for entering into contracts with consultants and contractors as necessary to obtain any and all required permits and/or other approvals. Zone 7 has been designated the lead agency responsible for conducting the environmental review and preparing environmental document(s) that may be required under CEQA and/or NEPA. Nothing in this Agreement should be construed as committing the Parties to any future development or activities associated with the Project. Additionally, the Agreement is subject to the following conditions: (1) the Agreement shall not limit the Parties’ choice of alternatives or mitigation measures under CEQA/NEPA, including the no-project alternative; (2) the Agreement includes no vested development entitlements, and no development entitlements shall be granted prior to compliance with CEQA/NEPA; (3) the Agreement shall not bind the Parties or commit the Parties to any definite course of action regarding the Project prior to CEQA/NEPA compliance; (4) the Agreement shall not construed as a relinquishment of any rights necessary to comply with CEQA/NEPA.
4.8 Design-Phase Off Ramp. Either Party to this Agreement may elect to discontinue participation in the Project and terminate this Agreement prior to the commencement of construction by providing at least ninety (90) days written notice to the non-terminating Party (“Notice of Termination”). Upon receipt of a Notice of Termination, the Parties agree to cooperate in good faith to wind down design activities and minimize additional, as-of-then unaccrued costs. Each Party will remain responsible for its respective share of Project costs incurred or contractually committed at the date of the Notice of Termination, including costs accrued but not yet invoiced, and further including costs not yet accrued but which are unavoidable due to the timing of the Notice of Termination.
5. Ownership of Project Work.
5.1 Work Product. All reports, data, plans, drawings, specifications, designs, photographs, images, works of authorship. and other documents related to the Project and/or performance of this Agreement shall become the property of both City and Zone 7 equally and may be used by both Parties for purposes outside of this agreement. Notwithstanding the foregoing, this provision shall not extend to confidential communications with or between Party attorneys, or such other communications or documents which either Party deems confidential at the time it transmits the document to the other Party.
5.2 Facilities. Upon completion of the Project, Zone 7 shall take full and sole ownership and possession of all Project Facilities.
6. Operation and Maintenance of the Facilities.
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6.1 Operational Responsibility. Zone 7 shall be solely responsible for the operation, maintenance, repair, and replacement (“O&M”) of Project Facilities, including delivery of City’s Groundwater Supply, subject to the terms and conditions on such delivery set forth in this Agreement. Zone 7 shall conduct all O&M work in accordance with any and all applicable regulatory requirements, accepted professional standards, and best management practices. Zone 7 shall bear all costs and liabilities associated with O&M work, except as expressly provided in this Agreement.
6.2 Grant of Easement. To the extent City property is or becomes necessary for the construction of the Project and/or Zone 7’s O&M work (“Project Land”), City shall grant Zone 7 express easements in perpetuity over such Project Land (“Project Easements”) and, in recognition of the benefit of the Project to City, hereby waives all right to compensation for the Project Easements except as otherwise required by law. City shall cooperate with Zone 7 to negotiate the terms and scope of Project Easements, including access, exclusivity, and restoration provisions as appropriate. In obtaining Project Easements, Zone 7 shall comply with the requirements of the Public Park Preservation Act of 1971 (Public Resources Code, sections 5400– 5409), to the extent applicable.
6.3 Delivery of the Groundwater Supply.
6.3.1 Volume of Groundwater Supply. The City’s maximum entitlement to Groundwater Supply pursuant to this Agreement is governed by the definition of GPQ and related terms set forth in the Supply Contract.
6.3.2 In Lieu Supply Costs. During the design and construction phases of the Project, and until the Project is operational, Zone 7 shall supply City’s GPQ and associated maximum daily supply under the terms and costs of the Supply Contract. The Parties acknowledge that the target Project operational date set forth in this Agreement is an estimate. If the Project fails to achieve operation on or before the December 28, 2029 solely due to factors within Zone 7’s control, then for the period following December 28, 2029 and ending when the Project achieves operation, the cost of supplying City’s GPQ shall be reduced to the In-Lieu Treated Water Rate as defined in the Supply Contract. Thereafter, when the Project becomes operational, City’s GPQ costs shall revert to the costs outlined in this Agreement. In the event Project operationality is delayed due to factors within City’s control, the target Project operational date will be extended by the same period as the delay.
6.3.3 Delivery Schedule. City shall annually, on or before July 15 of each year, submit a delivery schedule for use of City’s GPQ for the following calendar year. City’s submittal shall be made in combination with its delivery schedule for water pursuant to the Supply Contract on forms provided by Zone 7. The delivery schedule for use of the City’s GPQ, in whole or in part, will include a five (5) year outlook and anticipated (1) monthly supply, (2) maximum daily supply, and (3) use of any GPQ roll-over.
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6.3.4 Zone 7 Delivery Obligations. Zone 7 shall utilize commercially reasonable efforts to deliver City’s GPQ per the delivery schedule. Delivered water shall be of a quality that complies with the requirements for Drinking Water of the California State Water Resources Control Board’s Division of Drinking Water and the United States Environmental Protection Agency.
Unless otherwise agreed to in writing by the Parties, and to the extent consistent with the terms of this Agreement, which shall govern in the event of any inconsistency, the Supply Contract shall govern delivery of Project water and any other terms related to Project operations not included in this Agreement.
6.3.5 No Exclusivity. City reserves the right, at its sole discretion, to satisfy its annual GPQ, in whole or in part, using sources external to the Project. The exercise of this right shall not constitute a breach of this Agreement or result in any penalties, surcharges, or reductions in City’s entitlements hereunder.
Zone 7 may likewise operate other water supply facilities and use other water sources, including treated surface water, to meet and deliver City’s GPQ.
6.3.6 Requests for Increase in Groundwater Proportion of Supply. Zone 7 acknowledges that during certain times of the year City may request an increased proportion of groundwater in deliveries to the City’s turnouts to support water quality management within the City’s distribution system.
During such periods, Zone 7 shall use all reasonable efforts to accommodate City’s requested groundwater blend, to the extent feasible and consistent with Zone 7’s overall system operational needs, SGMA and other regulatory requirements, and any other applicable operational constraints as determined by Zone 7.
6.4 Cost Sharing.
6.4.1 Cost Allocation and Calculation. The Parties shall share annual O&M costs on a pro rata basis based on pumped GPQ. The following elements shall serve as the basis for O&M costs: (a) Wells and Pipelines: labor, material/supplies, and power costs; (b) Hopyard: labor, chemicals, material/supplies, and power costs.
6.4.2 Cost Adjustments. In the event Project facilities are unable to satisfy City’s GPQ delivery amount in full and Zone 7’s other facilities are used to deliver a portion of City’s GPQ, the approximated unit cost of water production for the Project facilities will be used in lieu of the actual cost of production or conveyance from Zone 7’s other facilities.
6.4.3 Annual True Up. In the event costs are billed and later discovered to differ from those Zone 7 actually incurred to deliver City’s GPQ, Zone 7 shall annually adjust for said billing disparities as described in section 6.4.5, subdivision (c) of this agreement.
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6.4.4 Measurement of Water. In order to ascertain the correct cost allocation, water shall be measured as follows: (a) at turnouts: the total volume measured at all City turnouts equals the total volume supplied to City for both its GPQ and water supplied under the Supply Contract; as GPQ and Supply Contract water are a combined delivery that cannot be separately metered, it will be assumed that the volume of water included in City’s GPQ delivery schedule equals the volume of GPQ supplied and that all excess volume is Supply Contract water; (b) at the Wells: the total volume measured from Wells equals the total volume of pumped groundwater; City’s GPQ volume versus this total volume of pumped groundwater equals City’s proportional share factor for Well and Pipeline O&M costs; (c) at the Hopyard: the total volume measured from the effluent of the Hopyard equals the total volume of treated groundwater (including from non-Project wells); City’s GPQ volume versus this total volume equals City’s proportional share factor for Hopyard O&M costs.
6.4.5 Billing and Payment.
(a) Estimated Costs. Annually, on or before October 15, Zone 7 shall provide City a provisional GPQ cost rate for the following calendar year based on budgeted costs and projected cost share proportions. (b) Monthly Billing. Zone 7 shall invoice City monthly for actually delivered GPQ. City shall remit payment in full within thirty (30) days from the invoice date. After thirty (30) days, the invoice will accrue interest at a rate of ten percent (10 %) per annum. (c) Annual True Up. Zone 7 will reconcile the provisional cost rate vs. the audited actual cost rate at the conclusion of each calendar year to account for variances between projected and actual costs and cost share proportions. Differences will be credited or debited on the next monthly billing. Zone 7 shall provide reasonable supporting documentation sufficient for the City to verify the annual true up, including the audited actual cost rate, cost share calculations, and explanation of material variances. Upon reasonable written request, the City may review records directly related to the calculation of the annual true up and may dispute any portion within 60 days after receipt of supporting documentation, and the parties shall meet and confer in good faith to resolve the dispute as provided in Section 7 of this Agreement.
6.5 Repair, Replacement, and Enhancement. The Parties understand and agree that the Project facilities may, and likely will, require repair, replacement, and/or enhancement over time to address aging equipment or meet changing regulations. Such future capital improvement activities exceed the scope and cost magnitude of typical maintenance and may require studies/assessments, environmental documentation, design, and construction services to implement (“Capital Improvements”). Zone 7 shall be solely responsible for identifying,
5298389.1
implementing, and funding the costs of such Capital Improvement needs. This provision shall not be construed to require Zone 7 to fund all costs of routine O&M costs, including routine and/or minor repairs to Project facilities, which costs will be captured and included as O&M costs and invoiced pursuant to Section 6.4 of this Agreement.
7. Dispute Resolution. If the Parties’ Project staff disagree on Project-level decisions or a dispute arises regarding Project operations, staff from both Parties shall meet and confer to resolve the outstanding issues promptly and avoid delays. If such dispute remain unresolved, the Parties will escalate the dispute to their respective management and executives. If, after escalation, the dispute remains unresolved, the Parties shall submit the dispute to a mediator within ninety (90) days of the date of escalation to management. The costs of mediation shall be divided evenly between the Parties. The Parties agree that the procedure described in this paragraph represents an effort to resolve disputes without the need for a formal claim under the California Tort Claims Act or other applicable law. The period of time for the presentation of a claim by one Party against another shall be tolled for the period from the date on which the Parties met and conferred at the staff level until the date upon which the mediator renders a decision. Nothing in this paragraph shall require a Party to comply with a decision of the mediator and, after the completion of the mediation process described above, each Party shall retain and may exercise at any time all legal and equitable rights and remedies it may have to enforce the terms of this Agreement; provided that prior to commencing litigation, a Party shall provide at least ten (10) calendar days of written notice of its intent to sue to the other Party.
8. Books and Records. The Parties shall have access to and the right to examine any pertinent books, documents, papers, or other records (including, without limitation, records contained on electronic media) relating to the other Party’s performance of its obligations pursuant to this Agreement and, in general, the operation, maintenance, and repair of Project facilities.
9. Indemnification. The Parties shall each indemnify the other for any and all damages, liabilities, claims, actions, demands, costs and expenses (including, but not limited to, costs of investigations, lawsuits and any other proceedings whether in law or in equity, settlement costs, attorneys’ fees and costs), and penalties or violations of any kind, which arise out of, result from, or are related to the respective Parties’, or the Parties’ employees’, agents’, contractors’, or subcontractors’, actions associated with the Project (“Claims”). Provided that neither Party shall indemnify the other for Claims that solely arise from or are related to the other Party’s, or its employees’, agents’, contractors’, or subcontractors’, grossly negligent or intentional conduct (“Exempt Claims”).
10. Notice. All notices, requests, demands, or other communications required or permitted under this Agreement shall be in writing, unless provided otherwise in this Agreement, and shall be deemed to have been duly given and received on: (i) the date of service, if served personally or served by facsimile transmission or electronic mail on the Party to whom notice is to be given at the address(es) provided below, (ii) on the first day after mailing, if mailed by Federal Express, U.S. Express Mail, or other similar overnight courier service, postage prepaid, and addressed as provided below, or (iii) on the third day after mailing if mailed to the Party to whom notice is to be given by first class mail, registered or certified, postage prepaid, addressed as follows:
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To Zone 7:
To City:
Zone 7 Water Agency
100 North Canyons Parkway
Livermore, CA 94551
Attn: Valerie Pryor
[email protected]
City Manager
City of Pleasanton
PO Box 520
Pleasanton, CA 94566
With a courtesy copy to:
Rebecca Smith
Downey Brand LLP
621 Capital Mall, 18th Floor
Sacramento, CA 95814
[email protected]
11. Authority. Each signatory of this Agreement represents that s/he is authorized to execute this Agreement on behalf of the Party for which s/he signs. Each Party represents that it has legal authority to enter into this Agreement and to perform all obligations under this Agreement.
12. Amendment. This Agreement may only be amended or modified by a written instrument executed by the Parties.
13. Jurisdiction and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of California, except for its conflicts of law rules. Any suit, action, or proceeding brought under the scope of this Agreement shall be brought and maintained to the extent allowed by law in the County of Alameda, California.
14. Construction and Interpretation. This Agreement has been arrived at through arms-length negotiations, and each Party has had a full and fair opportunity to consult counsel and revise the terms of this Agreement. As a result, the normal rule of construction that any ambiguities are to be resolved against the drafting Party shall not apply in the construction or interpretation of this Agreement.
15. Entire Agreement. Except as expressly set forth herein, this Agreement constitutes the entire agreement of the Parties with respect to the subject matter of this Agreement and, except as expressly provided in this Agreement, supersedes any prior oral or written agreement, understanding, or representation relating to the subject matter of this Agreement.
16. Partial Invalidity. If, after the date of execution of this Agreement, any provision of this Agreement is held to be illegal, invalid, or unenforceable under present or future laws effective during the term of this Agreement, such provision shall be fully severable. However, in lieu thereof, there shall be added a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and be legal, valid, and enforceable.
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17. Successors and Assigns. This Agreement shall be binding on and inure to the benefit of the successors and assigns of the respective Parties to this Agreement. No Party may assign its interests in or obligations under this Agreement without the written consent of the Party, which consent shall not be unreasonably withheld or delayed.
18. Waivers. Waiver of any breach or default of this Agreement shall not constitute a continuing waiver or a waiver of any subsequent breach either of the same or of another provision of this Agreement and forbearance to enforce one or more of the rights or remedies provided in this Agreement shall not be deemed to be a waiver of that right or remedy.
19. Necessary Actions. Each Party agrees to execute and deliver additional documents and instruments and to take any additional actions as may be reasonably required to carry out the purposes of this Agreement.
20. Compliance with Law. In performing their respective obligations under this Agreement, the Parties shall comply with and conform to all applicable laws, rules, regulations and ordinances.
21. Third Party Beneficiaries. This Agreement shall not create any right or interest in any non-Party or in any member of the public as a third party beneficiary.
22. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument.
23. Headings. Section headings in this contract are for convenience only and are not to be construed as a part of this contract or in any way limiting or amplifying the provisions hereof.
24. Attorney’s Fees. If either Party commences an action against the other to interpret or enforce any of the terms of this Agreement or because of the breach by the other Party of any of the terms hereof, the prevailing party shall be entitled to recover reasonable attorneys’ fees, costs and expenses, court costs, and other costs incurred in connection with the prosecution or defense of such action, whether or not the action is prosecuted to a final judgment.
[SIGNATURES TO FOLLOW]
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IN WITNESS WHEREOF, the parties hereto and have executed this contract on the date and year first above written.
ZONE 7 WATER AGENCY
By__________________________
Its__________________________
Date________________________
CITY OF PLEASANTON
By__________________________
Its__________________________
Date________________________
ATTEST:
____________________________
Secretary
ATTEST:
____________________________
City Clerk
APPROVED AS TO FORM:
_____________________________
General Counsel
APPROVED AS TO FORM:
_____________________________
City Attorney
1 Groundwater Supply Project
Agreement with Zone 7 for Regional Groundwater Development Project September 1, 2026
Agenda
1. Project Purpose and Goals
2. Timeline of Events
3. Summary of Agreement w/ Zone 7
4. Recommendation
5. Questions, Discussion & Council Actions
2 1
2 Attachment 2
2 Project Purpose and Goals
3 Purpose
Recover the use of the City’s Groundwater Production Quota (GPQ) of 3,500 acre-feet per year lost due to the presence of PFAS at City Wells 5, 6, & 8 4 Goals
1. Reduce the City’s overall water supply and distribution costs
2. Improve the City’s water supply reliability, management of water quality, and ability to meet future regulations while mitigating impacts to the community and environment
3 4
3 5
…addresses Strategic Plan C.3 –
Identify funding and implement the
recommendations from the Water
Supply Alternative Study to resolve
PFAS water quality issue
Groundwater Supply Project…
…is included in the 2025 Water
Rate Study with an approximate
budget of $27 million in 2024
dollars, or approximately $29 million
in 2026 dollars
Timeline of Events
6 5
6
4 Timeline of Events
1. November 2022
• All City wells are out of service due to the detection of PFAS above advisory levels • City starts purchasing its GPQ from Zone 7 at a wholesale rate
2. October 2023
• The City Council approves the Water Supply Alternatives Study’s recommendation to pursue new wells in the Bernal groundwater subbasin
• Establishment of The City Groundwater Supply Project, CIP No. 24174
3. June 2024
• City and Zone 7 enter into an agreement to evaluate the feasibility of a joint project 7 Timeline of Events (continued)
1. December 2025
• Study determines sufficient water yield and quality for a joint project and no impact to groundwater sustainability per Zone 7 modeling 8 2. April 2026
• City cost-benefit analysis
recommends implementing
new groundwater wells
jointly with Zone 7 as
opposed to independently
7 8
5 Summary of Agreement with Zone 7
9 Project Overview
10 Regional Groundwater Development
1. 2 new wells (Hansen Park and
Tennis Park)
2. New transmission main from wells
to Zone 7 Hopyard
Chloramination Facility
3. Upgrades to Hopyard
Chloramination Facility
4. City receives GPQ from Zone 7
via turnouts
City Groundwater Distribution
Improvements
1. City only and excluded from the
agreement
9 10
6 Design and Construction
11 1. Zone 7 designated as the lead agency for delivery of project • Zone 7 responsible for environmental review, permitting, procurement, design and construction, and consultant / contractor administration • City will lead community outreach, review deliverables, and provide input on design • Zone 7 retains final authority over technical and operational decisions • Zone 7 will seek City approval over project features affecting City-owned property (aesthetics, location, noise, etc.)
• Project will be delivered utilizing a progressive design-build procurement method
2. Current capital cost estimate is $42.3 million
• City cost share based on reserved production capacity is approximately 36 percent, or $15.2 million
• Agreement requires funding authorization from governing bodies at key contracting milestones to maintain independent financial oversight
Key Agreement Provisions
12 1. City is permanently reserved 3,500 acre-feet of yearly production and 6.2 million gallons of maximum day production
2. Each agency may discontinue participation during the design phase
3. Zone 7 to continue to supply City GPQ at wholesale rate until project operational date
• If project operation is delayed due solely to Zone 7, City will receive GPQ at the reduced In-Lieu Treated Water rate during the delay
• Any delays attributable to the City may result in extension of the project operational date
4. Zone 7 will provide written notice of contract budget deviations exceeding 5% or $100,000 (lesser of) and if exceeds the original approved contingency will require approval by both governing bodies.
11 12
7 Operation & Long-Term Responsibilities
13 1. Zone 7 will own, operate, and maintain the project facilities in compliance with applicable regulatory requirements
2. City maintains its 3,500 acre-feet per year per GPQ
3. Zone 7 will receive permanent easements for facilities on City-owned land • Zone 7 will comply with Public Park Preservation Act of 1971 (fund park improvements comparable to value of land)
4. Annual O&M costs will be allocated to City based on City’s proportional use of facilities
• Zone 7 will establish provisional cost, bill monthly, and true-up at end of year Operation & Long-Term Responsibilities (cont’d)
14 5. City reserves right to utilize its GPQ from alternative sources to the project
6. Zone 7 reserves the right to utilize alternative sources to deliver GPQ • City will still be charged based on the unit costs of the project facilities for the full volume
7. Zone 7, as owner of facilities, is fully responsible (including costs) for identifying and implementing repairs, replacements, and/or enhancements that may be required over time to address aging equipment or meet changing regulations.
8. Agreement Term – Through December 31, 2055
• Matches the Zone 7 M&I Water Supply Contract
13 14
8 Recommendation
15 Recommendation
1. Authorize the City Manager to negotiate and execute an agreement with Zone 7 for the design, construction, and operation of the Regional Groundwater Development Project – Phase II and III
16 15
16
9 Questions, Discussion, and Council
Actions
17 17
Item #10
CITY COUNCIL AGENDA REPORT
September 1, 2026
Community and Economic Development
TITLE: ADOPT A RESOLUTION 1) AMENDING THE GENERAL PLAN LAND USE DESIGNATION FOR 1225 HOPYARD ROAD AND 4100 FIRST STREET FROM PUBLIC AND INSTITUTIONAL (P&I) TO HIGH DENSITY RESIDENTIAL (HDR), AND 2) AMENDING THE DOWNTOWN SPECIFIC PLAN LAND USE DESIGNATION FOR 4100 FIRST STREET FROM PUBLIC (P) TO HIGH DENSITY RESIDENTIAL (HDR); AND INTRODUCE ORDINANCES TO
RE-ZONE A PORTION OF EACH PROPERTY TO PLANNED UNIT DEVELOPMENT-HIGH DENSITY RESIDENTIAL (PUD-HDR), ALLOWING UP TO 10 RESIDENTIAL UNITS ON EACH PROPERTY, AS IMPLEMENTATION OF HOUSING ELEMENT PROGRAM 7.6.8
SUMMARY
The City proposes to change the land use designations and rezone two properties located at 1225 Hopyard Road and 4100 First Street to allow up to ten residential units on each site.
New development on either of the rezoned properties would require separate review and approval of a PUD development plan.
BACKGROUND
The City Council adopted the 2023-31 Housing Element on January 26, 2023,and re-adopted it on September 19, 2023, to reflect revisions in response to comments and certification from the State Department of Housing and Community Development (HCD).
Housing Element Program 7.6.8 requires the City to identify properties for rezoning to allow up to 10 units per parcel. Similar to the provisions of Senate Bill 10 (SB10), the program requires that each property be rezoned for up to 10 units of residential density per parcel if located in either a transit-rich area or an urban infill site, as defined by Government Code §65913.5.
Selected sites would be rezoned to a Planned Unit Development (PUD) designation, with future development subject to PUD review to establish development standards for each site.
Several potential sites were considered in locations throughout the City and a shortlist of five sites was developed based upon various criteria (see discussion below). Subsequently, a recommendation was made to the Planning Commission to move forward with rezoning two sites, located at 1225 Hopyard Road and 4100 First Street. On June 24, 2026, the Planning Commission adopted a resolution recommending the City Council adopt the necessary General Plan, Specific Plan and Zoning Amendments for the two sites.
DISCUSSION
A total of 22 candidate sites were reviewed in locations throughout the City. Review criteria included: property size, existing use, additional development capacity, consistency with State law (i.e., is it a transit-rich area or an urban infill site),and suitability for infill development (location, topography, adjoining uses, site configuration, condition and potential historic classification of existing structures on the site). Based on this analysis, five potential sites were presented to the Planning Commission for consideration (see pages 4 and 5 of the Planning
Commission agenda report for a list of all five sites). Each of the five property owners were contacted prior to the Planning Commission meeting, with City staff offering to discuss the proposed rezonings, answer questions, respond to concerns, and understand owners' interest level in rezoning. As noted, the proposed redesignation and re-zoning of the two recommended sites would implement Housing Element Program 7.8.6. As such, the action fulfills the obligations and commitments the City made to achieve Housing Element certification.
Proposed Sites
Two sites are proposed for redesignation/rezoning:
1. 1225 Hopyard Road (APN 946-3382-2-2): An approximately 3.14-acre site located near the intersection of Hopyard Road and Del Valle Parkway. The site is currently occupied with Trinity Lutheran Church, a parking lot, and several temporary/modular buildings.
Approximately 0.66 acres of the site is proposed for rezoning.
2. 4100 First Street (APN 94-95-11-1): An approximately 1.88-acre site located on First Street. The site is currently occupied with Rock Bible Church, its building, parking and outdoor areas. Approximately 0.74 acres of the site is proposed for rezoning.
While all five properties initially “shortlisted” were suitable for rezoning, the two church properties were the strongest candidates, given their size, location, and Trinity Lutheran Church’s stated interest in the additional residential zoning. Rezoning also furthers other Housing Element objectives, including those that encourage residential development on properties with existing religious facilities, such as Program 1.5 and Program 7.6.1. Figure 1 below shows aerial photos of both recommended sites.
Both properties require a change to: (1) the General Plan land use designation from Public and Institutional to High Density Residential; and (2) re-zoning to the Planned Unit Development – High Density Residential zoning designation. In addition, the Rock Bible Church site requires
modifications to its land use designation in the Downtown Specific Plan from Public to High Density Residential. This site currently has two zoning designations, with the proposed land use changes affect the approximately 0.74-acre portion of the property currently zoned RM- 4,000.
Property owners or their representatives for both sites have indicated a favorable or neutral position on the proposed rezoning of their property. Rezoning of both properties provides the opportunity for additional potential development should the owners propose to do so, while continuing to allow currently existing uses (i.e., the existing zoning district for each site would be incorporated into the rezoning such that its provisions of that district would remain in effect).
As shown in the Attachment 1 a 0.66-acre portion of 1225 Hopyard, and a 0.74-acre portion of 4100 First Street would be re-zoned.
Design Standards and Requirements
By rezoning both properties to PUD, development and design standards will be established by the PUD development plan at the time of proposal. This provides deference to the individual characteristics of each site and range of units that cou;ld be proposed on the property (up to ten).
Comparable Site Density
At its June 24, 2026 meeting, the Planning Commission asked how the proposed additional density for each site would compare to other recently approved development projects. The table below provides examples of comparable projects in Pleasanton to the two proposed sites. As reflected in the table, at 13 to 15 units/acre, the density of the proposed sites is typical of townhome projects.
Table A. Comparable Site Density
Site Address Number of Units Project Density
Proposed Sites for Rezoning
1225 Hopyard Rd. Up to ten units on ~0.66 acres 15.2 units/acre 4100 First St. Up to ten units on ~0.74 acres 13.5 units/acre Recently Constructed Projects
3200 Hopyard Rd. 55 units 18.3 units/acre
536 St. John St. 11 units 15 units/acre
87 homes 8 units/acre 3806 Stanley Blvd., Irby Ranch 31 multifamily units 19 units/acre 5850 W. Las Positas Blvd., Andares 94 units 15 units/acre 2025 Santa Rita, former Tri- Valley Inn 42 units 21.4 units/acre
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
The Program EIR prepared for the 6th Cycle Housing Element (SCH 2022040091) was certified by the City Council on January 26, 2023. Implementation of Program 7.6.8 as proposed by the subject rezoning is exempt from CEQA per Government Code Section 65913.5(a)(3), which specifically exempts these rezonings from environmental review.
PLANNING COMMISSION RECOMMENDATION
At its June 24, 2026, meeting, the Planning Commission adopted Resolution PC-2026-18, recommending the City Council adopt a resolution changing the General Plan land use designation from Public and Institutional to High Density Residential for the properties located at 1225 Hopyard Road and 4100 First Street and the Downtown Specific Plan land use designation for 4100 First Street from Public to High Density Residential; and introduce an ordinance to re-zone a portion of both properties to Planned Unit Development-High Density Residential (PUD-HDR) to allow for up to 10 units of residential density on each property, as implementation of Program 7.6.8 in the City's Housing Element.
OUTREACH
Notice of this meeting was published in The Valley Times, notification was sent to neighbors within a 1,000-foot radius of each of the two sites, and owners of the five sites considered were contacted to invite discussion and to answer questions about the rezonings. Letters were also sent to all five property owners at least 20 days before this meeting to notify them of the date.
In accordance with the requirements of Senate Bill 18 the City has notified Native American tribes as provided by the State Native American Heritage Commission (NAHC),. The Confederated Villages of Lisjan Nation requested that the City initiate consultation at the time of future development project review. Staff has included language in the rezoning ordinances for both sites to reflect the request.
FISCAL IMPACT
There is no direct fiscal impact associated with the proposed actions.
RECOMMENDATION
Adopt a resolution 1) amending the General Plan land use designation for 1225 Hopyard Road and 4100 First Street from Public and Institutional (P&I) to High Density Residential (HDR), and 2) amending the Downtown Specific Plan land use designation for 4100 First Street from Public (P) to High Density Residential (HDR); and introduce ordinances to re-zone a portion of each property to Planned Unit Development-High Density Residential (PUD-HDR), allowing up to 10 residential units on each property, as implementation of Housing Element Program 7.6.8
Prepared by: Submitted by: Approved by:
Shweta Bonn, Senior
Planner
Ellen Clark, Director of Community and
Economic Development
Joe Calabrigo, Interim
City Manager
Attachments:
1. Resolution - HE Program 7.6.8 Rezonings - GP-DSP Amendments
2. Ordinance - HE Program 7.6.8 Rezonings - 1225 Hopyard Rd
3. Ordinance - HE Program 7.6.8 Rezonings - 4100 First St
4. Planning Commission Resolution PC-2026-18
5. Public Comments
6. Location and Notification Maps
7. Presentation - HE Program 7.6.8
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PLEASANTON TO
APPROVE CITY-INITIATED AMENDMENTS TO THE GENERAL PLAN LAND USE
DESIGNATION FROM PUBLIC AND INSTITUTIONAL (P&I) TO HIGH DENSITY RESIDENTIAL (HDR) FOR THE PROPERTIES LOCATED AT 1225 HOPYARD ROAD AND 4100 FIRST STREET AND THE DOWNTOWN SPECIFIC PLAN LAND USE DESIGNATION FOR 4100 FIRST STREET FROM PUBLIC (P) TO HIGH DENSITY RESIDENTIAL (HDR) TO ALLOW FOR UP TO 10 RESIDENTIAL UNITS ON EACH PROPERTY, AS IMPLEMENTATION OF HOUSING ELEMENT PROGRAM 7.6.8
WHEREAS, following certification of the Housing Element by the State Department of Housing and Community Development (HCD) on August 25, 2023, and readoption of the Housing Element by the City Council on September 19, 2023, the City of Pleasanton (“City”) is implementing Program 7.6.8 of the Housing Element to allow opportunity for up to 20 residential units by rezoning two properties as identified in Government Code Section 65913.5; and
WHEREAS, the increased density authorized by this action is consistent with the City’s obligation to affirmatively further fair housing pursuant to Government Code Section 8899.50; and
WHEREAS, the properties have existing and proposed General Plan, Downtown Specific Plan, and zoning land use designations as identified in Exhibit A to this resolution; and
WHEREAS, since modifications to the land use designations of the General Plan are proposed for both properties, the City notified potentially affected Native American tribes as provided by the State Native American Heritage Commission, in accordance with the requirements of Senate Bill 18; and
WHEREAS, on June 24, 2026, the Planning Commission held a duly noticed public hearing and considered all public testimony, relevant exhibits, and recommendations of the City staff concerning Case No. P26-0255 concerning the proposed actions and adopted Resolution No. PC-2026-18 recommending that the City Council modify the land use designations of the two subject properties to be consistent with the proposed zoning designation; and
WHEREAS, the City Council held a duly noticed public hearing on September 1, 2026; and considered the agenda report, relevant exhibits and all public testimony before making a decision on the project.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES RESOLVE, DECLARE, DETERMINE AND ORDER THE FOLLOWING:
SECTION 1. The actions are exempt from the California Environmental Quality Act (CEQA) per Government Code 65913.5(a)(3), which specifically exempts actions taken to amend the General Plan, local ordinances, or other local regulations adopted in accordance with Government Code Section 65913.5 from environmental review.
SECTION 2. The changes to land use designations are consistent with the General Plan, specifically as implementation of Housing Element Program 7.6.8.
SECTION 3. The changes to the land use designations in the General Plan from Public and Institutional (P&I) to High Density Residential (HDR) for the properties at 1225 Hopyard Road ATTACHMENT 1
and 4100 First Street, and in the Downtown Specific Plan from Public (P) to High Density Residential (HDR) for the property at 4100 First Street are hereby approved.
SECTION 4. This resolution shall be effective on the same effective date as Ordinance XXXX and Ordinance XXXX that rezone the subject properties.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Pleasanton at a regular meeting held on September 1, 2026.
I, Jocelyn Kwong, City Clerk of the City of Pleasanton, California, certify that the foregoing resolution was adopted by the City Council at a regular meeting held on the first day of September, 2026, by the following vote:
Ayes:
Noes:
Absent:
Abstain:
_____________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
_______________________________
Daniel G. Sodergren, City Attorney
EXHIBIT A
Current Designation
Approved Designation
APN and
Approximate
Size
Address
Existing Land
Use General
Plan
Specific
Plan
Zoning General Plan Specific
Plan
Zoning
Staff Recommended Sites
946-3382-2-2
(~3.14 acres)
1225
Hopyard
Rd
Religious
Facility
P&I None R-1-6,500 HDR on
~0.66
acres
None PUD-HDR
on ~0.66
acres
94-95-11-1
(~1.88 acres)
4100 First
St
Religious
Facility
P&I Public RM-1,500 on
~1.26 acres
RM-4,000 on
~0.74 acres
RM-1,500
remains
unchanged
HDR on
~0.74
acres
HDR on
~0.74 acres
PUD-HDR
on ~0.74
acres
Legend
MDR: Medium Density Residential RM: Multi-family Residential P&I: Public and Institutional R-1: One-family Residential HDR: High Density Residential PUD: Planned Unit Development
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PLEASANTON APPROVING THE CITY-INITIATED REZONING OF AN APPROXIMATELY 0.66-ACRE PORTION OF THE PROPERTY AT 1225 HOPYARD ROAD TO PLANNED UNIT
DEVELOPMENT-HIGH DENSITY RESIDENTIAL (PUD-HDR) TO ALLOW FOR UP TO 10 RESIDENTIAL UNITS, AS IMPLEMENTATION OF PROGRAM 7.6.8 IN THE CITY'S
HOUSING ELEMENT
WHEREAS, subsequent to certification of the Housing Element by the State Department of Housing and Community Development (HCD) on August 25, 2023, and readoption of the Housing Element by the City Council on September 19, 2023, the City of Pleasanton (“City”) is implementing Program 7.6.8 of the Housing Element to allow opportunity for up to 20 residential units by rezoning two properties as identified in Government Code Section 65913.5; and
WHEREAS, the increased density authorized by this action is consistent with the City’s obligation to affirmatively further fair housing pursuant to Government Code Section 8899.50; and
WHEREAS, at its duly noticed public hearing of June 24, 2026, the Planning Commission considered all public testimony, relevant exhibits, and recommendations of the City staff concerning Case No. P26-0255 and adopted Resolution No. PC-2026-18 recommending the rezoning of the sites to City Council; and
WHEREAS, the City Council adopted Resolution XXX for land use changes in the General Plan and Downtown Specific Plan; and
WHEREAS, the City Council held a duly noticed public hearing on September 1, 2026, and considered the agenda report, attachments, and relevant exhibits, and all public testimony before making a decision on the project.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The rezoning of 1225 Hopyard Road is exempt from the California Environmental Quality Act (CEQA) per Government Code 65913.5(a)(3), which specifically exempts actions taken to amend the General Plan, local ordinances, or other local regulations adopted in accordance with Government Code Section 65913.5 from environmental review.
SECTION 2. The rezoning of 1225 Hopyard Road is consistent with the Housing Element of the General Plan, specifically the implementation of Program 7.6.8.
SECTION 3. The rezoning of an approximately 0.66-acre portion of the property located at 1225 Hopyard Road from One-family Residential (R-1-6,500) to Planned Unit Development – High Density Residential (PUD-HDR) is hereby approved.
SECTION 4. The uses allowed and development standards applicable to this Property are those which were in effective prior to this rezoning, plus the ability to develop the Property with up to 10 residential units.
ATTACHMENT 2
Ordinance No.
SECTION 5. At the time of PUD submittal for development review, the City may, at its discretion, consult with Native American tribes to seek comments on the proposed construction.
SECTION 6. The Zoning Map of the City of Pleasanton, dated April 18, 1960, on file with the City Clerk, designating and dividing the City into zoning districts, is hereby amended by Zoning Map No. XXX attached hereto as Exhibit A, dated September 1, 2026, and incorporated herein by this reference.
SECTION 7. A summary of this ordinance shall be published once within fifteen (15) days after its adoption in “The Valley Times,” a newspaper of general circulation published in the City of Pleasanton, and the complete ordinance shall be posted for fifteen (15) days in the City Clerk’s office within fifteen (15) days after its adoption.
SECTION 8. This ordinance shall be effective thirty (30) days after its passage and adoption.
The foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Pleasanton on September 1, 2026 by the following vote:
Ayes:
Noes:
Absent:
Abstain:
______________________________
Jack Balch, Mayor
ATTEST:
____________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
____________________________
Daniel G. Sodergren, City Attorney
Ordinance No.
EXHIBIT A
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PLEASANTON APPROVING THE CITY-INITIATED REZONING OF AN APPROXIMATELY 0.74-ACRE PORTION OF THE PROPERTY AT 4100 FIRST STREET TO PLANNED UNIT
DEVELOPMENT-HIGH DENSITY RESIDENTIAL (PUD-HDR) TO ALLOW FOR UP TO 10 RESIDENTIAL UNITS, AS IMPLEMENTATION OF PROGRAM 7.6.8 IN THE CITY'S
HOUSING ELEMENT
WHEREAS, subsequent to certification of the Housing Element by the State Department of Housing and Community Development (HCD) on August 25, 2023, and readoption of the Housing Element by the City Council on September 19, 2023, the City of Pleasanton (“City”) is implementing Program 7.6.8 of the Housing Element to allow opportunity for up to 20 residential units by rezoning two properties as identified in Government Code Section 65913.5; and
WHEREAS, the increased density authorized by this action is consistent with the City’s obligation to affirmatively further fair housing pursuant to Government Code Section 8899.50; and
WHEREAS, at its duly noticed public hearing of June 24, 2026, the Planning Commission considered all public testimony, relevant exhibits, and recommendations of the City staff concerning Case No. P26-0255 and adopted Resolution No. PC-2026-18 recommending the rezoning of the sites to City Council; and
WHEREAS, the City Council adopted Resolution XXXX for land use changes in the General Plan and Downtown Specific Plan; and
WHEREAS, the City Council held a duly noticed public hearing on September 1, 2026, and considered the agenda report, attachments, and relevant exhibits, and all public testimony before making a decision on the project.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PLEASANTON DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The rezoning of 4100 First Street is exempt from the California Environmental Quality Act (CEQA) per Government Code 65913.5(a)(3), which specifically exempts actions taken to amend the General Plan, local ordinances, or other local regulations adopted in accordance with Government Code Section 65913.5 from environmental review.
SECTION 2. The rezoning of 4100 First Street is consistent with the Housing Element of the General Plan, specifically the implementation of Program 7.6.8.
SECTION 3. The rezoning of approximately 0.74 acres of 4100 First Street from Multi- family Residential District (RM-4,000) to Planned Unit Development – High Density Residential (PUD-HDR) is hereby approved.
SECTION 4. The uses allowed and development standards applicable to this Property are those which were in effective prior to this rezoning, plus the ability to develop the Property with up to 10 residential units.
ATTACHMENT 3
Ordinance No.
SECTION 5. At the time of PUD submittal for development review, the City may, at its discretion, consult with Native American tribes to seek comments on the proposed construction.
SECTION 6. The Zoning Map of the City of Pleasanton, dated April 18, 1960, on file with the City Clerk, designating and dividing the City into zoning districts, is hereby amended by Zoning Map No. XXX attached hereto as Exhibit A, dated September 1, 2026, and incorporated herein by this reference.
SECTION 7. A summary of this ordinance shall be published once within fifteen (15) days after its adoption in “The Valley Times,” a newspaper of general circulation published in the City of Pleasanton, and the complete ordinance shall be posted for fifteen (15) days in the City Clerk’s office within fifteen (15) days after its adoption.
SECTION 8. This ordinance shall be effective thirty (30) days after its passage and adoption.
The foregoing Ordinance was introduced at a regular meeting of the City Council of the City of Pleasanton on September 1, 2026 by the following vote:
Ayes:
Noes:
Absent:
Abstain:
______________________________
Jack Balch, Mayor
ATTEST:
____________________________
Jocelyn Kwong, City Clerk
APPROVED AS TO FORM:
____________________________
Daniel G. Sodergren, City Attorney
Ordinance No.
EXHIBIT A
RESOLUTION NO. PC-2026-18
A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF PLEASANTON
RECOMMENDING THAT THE CITY CO UNCIL APPROVE CITY-INITIATED
AMENDMENTS TO THE GENERAL PLAN , DOWNTOWN SPECIFIC PLAN, AND REZONINGS OF TWO (2) SITES, AS FILED UNDER CASE NO. P26-0255, TO ALLOW UP TO TEN (10) RESIDENTIAL UNITS ON EACH PROPERTY
WHEREAS, subsequent to certification of th e Housing Element by the State Department of Housing and Co mmunity Development (HCD) on August 25, 2023, and readoption of the Housing Element by the City Council on September 19, 2023, the City of Pleasanton (“City”) is implementing Program 7.6.8 of the Housing Element to allow opportunity for up to 20 units by rezoning two properties as identified in Government Code Section 65913.5; and
WHEREAS, the increased density authorized by this action is consistent with the City’s obligation to affirmatively further fair housing pursuant to Government Code Section 8899.50;
WHEREAS, the properties have existing and proposed General Plan, Downtown Specific Plan, and zoning land use designations as identified in Attachment 1 to this resolution; and
WHEREAS, since modifications to the land use designations of the General Plan are proposed for some of the properties, the City notified potentially affected Native American tribes as provided by the State Native American Heritage Commission, in accordance with the requirements of Senate Bill 18; and WHEREAS, on June 24, 2026, the Planning Commission held a duly noticed public hearing to consider the proposed actions; and
WHEREAS, at its duly noticed public hearing of June 24, 2026, the Planning Commission considered all public testimony, relevant exhibits, and recommendations of the City staff concerning Case No. P26-0255.
NOW, THEREFORE BE IT RESOLVED, the Planning Commission of the City of Pleasanton does resolve, declare, determine, and order the following:
Section 1. The foregoing recitals are true and correct and are incorporated by reference into this resolution.
Section 2 . Recommends the City Council find the actions exempt from the California Environmental Quality Act (CEQA) per Government Code Section 65913.5(a) (3), which specifically exempts actions taken to amend the General Plan, local ordinances, or other local regulations ado pted in accordance with Government Code Section 65913.5 from environmental review.
ATTACHMENT 4
Resolution No. PC-2026-18
Section 3. With respect to approval of the rezones of the sites listed below, the Planning Commission makes the following findings as to whether each such rezone would be consistent with the objectives of the Zoning Chapter of the Pleasanton Municipal Code, as set out in PMC § 18.04.010:
1. 1225 Hopyard Road (APN 946-3382-2-2). The Planning Commission finds that rezoning this site from R-1-6,500 to PUD-HDR on approximately 0.66 acres would be consistent with Zoning Chapter of the PMC, inasmuch as it would “insure that ... private lands ultimately are used for the purposes which are most appropriate and most beneficial from the standpoint of the city as a whole,” per PMC §
18.04.010(D). Such rezone would allow for the development of up to 10 units of housing at this location, which would be most appropriate and beneficial.
2. 4100 First Street (APN 94-95-11-1). The Planning Commission finds that rezoning this site from RM-4,000 (on approxi mately 0.74 acres) to PUD-HDR on approximately 0.74 acres would be consist ent with Zoning Chapter of the PMC insomuch as it would “insure that ... pr ivate lands ultimately are used for the purposes which are most appropriate and mo st beneficial from the standpoint of the city as a whole,” per PMC § 18.04.010( D). Such rezone would allow for the development of up to 10 units of housing at this location, which would be most appropriate and beneficial.
Section 4. On the foregoing basis, the Pl anning Commission recommends the City Council approve the act ions as shown on Attachment 1 with regard to the ‘Staff Recommended Sites’, allowi ng up to ten (10) units on each property, thereby implementing Housing Element Program 7.6.8.
Section 5. This resolution shall become effective 10 days after its passage and adoption unless appealed or called to the City Council prior to that time.
PASSED, APPROVED AND ADOPTED by the Planning Commi ssion of the City of Pleasanton at a regular meeting held on June 24, 2026.
AYES: Commissioners Jagoe , Wedge, and Chair Pace
NOES: None
ABSENT: Commissioner Jain
ABSTAIN: Commissioner Morgan
ATTEST:
Derek Farmer Brandon Pace
Secretary, Planning Commission Chairperson
Resolution No. PC-2026-18
APPROVED AS TO FORM:
Katherine Wisinski
Assistant City Attorney
Resolution No. PC-2026-18
Attachment 1
Attachment 1, Page 1
APN and
Approximate
Size
Address
Existing Land
Use
Current Designation
Proposed Designation
Property Owner
Communication
General
Plan
Specific
Plan
Zoning Density
and
General
Plan
Specific
Plan
Zoning
Staff Recommended Sites
946-3382-2-2
(~3.14 acres)
1225
Hopyard
Rd
Religious
Facility
P&I None R-1-6,500 15.2
DUA
HDR on
~0.66
acres
None PUD-
HDR on
0.66 acres
Yes, a church
representative
has
expressed an
affirmative
interest in the
rezoning
94-95-11-1
(~1.88 acres)
4100 First
St
Religious
Facility
P&I Public RM-1,500
on ~1.26
acres
RM-4,000
on ~0.74
acres
RM-
1,500
remains
unchang
ed
13.5 DUA on
0.74 acres
HDR on
0.74 acres
PUD-HDR
on 0.74
acres
Yes, the
property owner
has contacted
staff and is
generally
receptive to
the rezoning if
provisions of
the existing
zoning (and
church
operations)
would remain
in effect
Resolution No. PC-2026-18
Attachment 1
Attachment 1, Page 2
APN and
Approximate
Size
Address
Existing
Land
Use
Current Designation
Proposed Designation
Property Owner
Communication
General
Plan
Specific
Plan
Zoning Density
and
General
Plan
Specific
Plan
Zoning
Other Potential Sites
94-125-6-2
(~0.46 acres)
4372
Pleasanton
Ave
Existing vacant
structure
MDR MDR R-1-6,500 21.7
DUA
HDR
HDR PUD-HDR Yes, the
property owner
is generally
receptive to
the rezoning
946-1710-1-3
(~1.1 acres)
3425
Bernal
Ave
Residential
MDR None R-1-
6,500
9 DUA
HDR
None PUD-
HDR
Yes, the
property
owner is
generally
receptive to
the rezoning
946-1704-8-1
(~0.82 acres)
3683
Vineyard
Ave
Residential MDR None R-1-
10,000
12.2 DUA
HDR
None PUD-HDR Staff has not
heard back
from the
property
owners to-date
Legend
MDR: Medium Density Residential RM: Multi-family Residential P&I: Public and Institutional R-1: One-family Residential HDR: High Density Residential PUD: Planned Unit Development DUA: Dwelling Units per Acre
Mark Giovanetti ATTACHMENT 5
Public Comments
1 From: Mark Giovanetti
Sent: Tuesday, August 18, 2026 3:34 PM
To: Shweta Bonn <[email protected]>
Subject: RE: Viewing of plans for 1225 Hopyard Road
Hello Shweta,
Thank you again for the quick reply and sending the link and page number. This answers all the questions I have at this point.
Mark
On 08/18/2026 12:57 PM PDT Shweta Bonn <[email protected]> wrote:
Good day, Mark,
A portion (approximately 0.66 acres) of the property is proposed for rezoning.
Please see map under my signature block, excerpted from the June 24, 2026, Planning Commission report (available beginning on page 690 of the PDF found here:
https://pleasantonca.portal.civicclerk.com/event/735/files/agenda/1697).
Since no development is proposed at this time, the location of a driveway has not been shown.
Please let me know if you have additional questions.
Thank you.
-SB
Shweta Bonn
Senior Planner, Community and Economic Development Department D: 925-931-5611
F: 925-931-5483
[email protected]
Mark Giovanetti ATTACHMENT 5
Public Comments
2 From: Mark Giovanetti
Sent: Monday, August 17, 2026 2:48 PM
To: Shweta Bonn <[email protected]>
Subject: RE: Viewing of plans for 1225 Hopyard Road
Hello Shweta,
Thank you for the response.
As a follow up, are they asking to rezone the entire property, ie, eliminate the church, or rezone just a portion of the lot that is not being used?
If it is the later, is there a map showing what portion of the property they are asking to rezone? Additionally, if it is only a portion, does the proposal show where a driveway would be placed to access the rezoned section?
Thank you, Mark
On 08/10/2026 4:54 PM PDT Shweta Bonn <[email protected]> wrote:
Hi Mark,
Thank you for your email.
There is no proposal to develop the site at 1225 Hopyard Road at this time; the City Council is scheduled to review the site's rezoning at its September 1, 2026, meeting.
A proposed development could be in the future, and plans would be available at that time.
The agenda report for the September 1, 2026, meeting will be posted to the City website by August 28 at: https://pleasantonca.portal.civicclerk.com/event/596/files
Thank you.
-SB
Mark Giovanetti ATTACHMENT 5
Public Comments
3 Shweta Bonn
Senior Planner, Community and Economic Development Department D: 925-931-5611
F: 925-931-5483
[email protected]
City of Pleasanton | P.O. Box 520, Pleasanton, CA 94566
From: Mark Giovanetti
Sent: Monday, August 10, 2026 3:48 PM
To: Shweta Bonn <[email protected]>
Subject: Viewing of plans for 1225 Hopyard Road
Hello Shweta,
I do not see any documents on the City's website for the September 1 City Council Meeting.
Will you be publishing the plans for 1225 Hopyard ahead of the September 1 City Council meeting? Assuming you will be, how can we access them?
Thank you,
Mark Giovanetti
XXXX Harvest Road
Lisjan Nation ATTACHMENT 5
Public Comments
4 From: Lisjan Nation
Sent: Tuesday, August 18, 2026 12:04 PM
To: Shweta Bonn <[email protected]>
Cc: Derek Farmer <[email protected]>
Subject: Re: Requesting Consultation
Hi Shweta,
Thank you very much. We ask that the Tribe's comments be incorporated into the report for the City Council and would like to reiterate the importance of meaningful, government-to- government Tribal consultation at the time of development project review, especially for the 4100 First Street site due to its proximity to the arroyo.
'Uni (Respectfully),
Lucy Beyhan, Cultural Resource Manager II
Confederated Villages of Lisjan Nation
On Wed, Jul 29, 2026 at 11:04 AM Shweta Bonn <[email protected]> wrote:
Lucy,
Thank you for your email. The City reached out to Native American Tribes since the contemplated rezonings affect the land use designations in the Downtown Specific Plan and the General Plan, pursuant to Senate Bill 18 and Assembly Bill 52, and appreciates the Tribe's continued engagement.
As you noted, the rezonings themselves do not result in excavation or development of the site. We understand that the Tribe would like consultation at the time of development
Lisjan Nation ATTACHMENT 5
Public Comments
5 project review. To this end, staff will consider incorporating this recommendation into the approving documentation for the rezonings. Thank you for the information regarding 3425 Bernal Avenue and 4100 First Street and the comment regarding proximity to the arroyo and the recommendation to prioritize potential development farther from the creek where feasible.
The Planning Commission reviewed the potential rezonings at its June 24, 2026, meeting.
The two sites recommended by the Planning Commission are located at 4100 First Street and 1225 Hopyard Road; the agenda report discusses the sites and provides additional details, in case you are interested. Please see Item 5 beginning on page 690 of the PDF version of the June 24 packet materials, available at this link: https://pleasantonca.portal.civicclerk.com/event/735/files/agenda/1697
At this time, this item is tentatively scheduled for the September 1, 2026, City Council meeting.
Please let me know if you have questions.
Thank you.
Shweta Bonn
Senior Planner, Community and Economic Development Department D: 925-931-5611
F: 925-931-5483
[email protected]
City of Pleasanton | P.O. Box 520, Pleasanton, CA 94566
From: Lisjan Nation
Sent: Wednesday, July 22, 2026 12:59 PM
To: Shweta Bonn <[email protected]>; Derek Farmer
Lisjan Nation ATTACHMENT 5
Public Comments
6 <[email protected]>
Subject: Re: Requesting Consultation
Hi Shweta,
Our apologies for the delayed notice. We have completed an internal review and can cancel our scheduled meeting because no known Tribal Cultural Resources will be directly impacted by this project. However, we respectfully request that the Tribe be invited to participate in government-to-government consultation for any development projects that may result from this rezoning change. We would also like to note that two of the properties under consideration (3425 Bernal Ave and 4100 First St) are directly adjacent to Arroyo Valle. While the Tribe does not know of Tribal Cultural Resources in these particular locations, there are known Tribal Cultural Resources along Arroyo Valle in the vicinity.
Arroyo Valle itself is also a Tribal Cultural Resource, and development directly adjacent to creeks is more complicated and can damage these important Tribal Cultural Resources.
We recommend that the locations further away from the creek be prioritized.
Please let us know if you have any questions or concerns.
'Uni (Respectfully),
Lucy Beyhan, Cultural Resource Manager II
Confederated Villages of Lisjan Nation
On Wed, Jun 24, 2026 at 12:15 PM Lisjan Nation wrote:
Greetings,
Thank you for your email, and my apologies for the late response. The Tribe would like to consult on this project.
Lisjan Nation ATTACHMENT 5
Public Comments
7 Please click our Calendly link below to schedule a consultation at your convenience.
Please make sure to include the project name in the notes section when scheduling the consultation to help us prepare for our meeting. Thank you in advance!
Access our Calendly here:
https://calendly.com/cvltribe/consultation
Uuha'yi (With Gratitude),
Jon Kunkel, Tribal Administrative Assistant
Confederated Villages of Lisjan Nation
On Fri, Apr 17, 2026 at 4:25 PM Shweta Bonn <[email protected]> wrote:
Good afternoon,
Please see the attached letter from the NAHC regarding the SLF search. We have reached out to the Muwekma Ohlone Indian Tribe of the SF Bay Area.
Kindly let me know if you have any questions or would like to discuss further.
Thank you.
-SB
Shweta Bonn
Senior Planner, Community and Economic Development Department D: 925-931-5611
F: 925-931-5483
[email protected]
Lisjan Nation ATTACHMENT 5
Public Comments
8 City of Pleasanton | P.O. Box 520, Pleasanton, CA 94566
From: Shweta Bonn <[email protected]>
Sent: Tuesday, April 14, 2026 3:33 PM
To: Lisjan Nation
Subject: RE: Requesting Consultation
Thank you. I will double-check with the NAHC about the SLF search and get back to you as soon as I hear.
-SB
Shweta Bonn
Senior Planner, Community and Economic Development Department D: 925-931-5611
F: 925-931-5483
[email protected]
City of Pleasanton | P.O. Box 520, Pleasanton, CA 94566
From: Lisjan Nation
Sent: Friday, April 10, 2026 11:21 AM
To: Shweta Bonn <[email protected]>
Subject: Re: Requesting Consultation
Good morning,
Lisjan Nation ATTACHMENT 5
Public Comments
9 Thank you for this additional information. There is no need to formally meet until the Tribe has reviewed the requested documents. If you could get us those documents asap, we would greatly appreciate it! Thank you again and take care.
Uuha'yi (With Gratitude),
Jon Kunkel, Tribal Administrative Assistant
Confederated Villages of Lisjan Nation
On Tue, Apr 7, 2026 at 3:15 PM Shweta Bonn <[email protected]> wrote:
Good day, Jon,
Thank you for your email and for contacting me about the consultation offer. I am happy to speak with you further and provide more information. Would it be acceptable to you to set up a time to discuss? We can talk on the phone, set up a virtual meeting on Teams or Zoom, or meet in person at Pleasanton City Hall.
In summary – Under the provisions of Senate Bill 10, the City is considering rezoning up to two properties to allow up to ten units on each property, as implementation of its Housing Element.
The rezonings are the first step to conferring the capacity for the ten units and therefore currently, no development plans are part of the subject scope (and hence no specific details on proposed ground disturbance).
State law exempts both the rezoning and development from the California Environmental Quality Act (CEQA), and therefore, no cultural resource reports have been prepared for this effort.
Lisjan Nation ATTACHMENT 5
Public Comments
10 Since the change to zoning has implications for some of the sites to modify the land use designations in the General Plan (and Downtown Specific Plan), the City notified the contacts provided by the NAHC about the potential sites for these rezonings (i.e., the letter you received), in accordance with Senate Bill 18. For example, to ensure consistency between the General Plan and zoning, the City would need to amend the General Plan land use designation from Medium Density Residential to High Density Residential to allow ten units in some instances.
Please let me know if you would like more information or would like to discuss, and I am happy to help coordinate a mutually agreeable time.
Thank you.
-SB
Shweta Bonn
Senior Planner, Community and Economic Development Department D: 925-931-5611
F: 925-931-5483
[email protected]
City of Pleasanton | P.O. Box 520, Pleasanton, CA 94566
From: Lisjan Nation
Sent: Tuesday, April 7, 2026 2:06 PM
To: Shweta Bonn <[email protected]>
Subject: Requesting Consultation
Greetings,
Lisjan Nation ATTACHMENT 5
Public Comments
11 Thank you for your letter (attached below). The Tribe would like to request consultation on this project.
Can you please share a copy of the SLF request results from the NAHC, results of the CHRIS records request search, and any cultural resource reports prepared for this project (draft form is fine)? We would also appreciate any specific information about proposed ground disturbance of this project. Thank you in advance!
Uuha'yi (With Gratitude),
Jon Kunkel, Tribal Administrative Assistant (Iipay)
Confederated Villages of Lisjan Nation
© Latitude Geographics Group Ltd.
3,458.4
THIS MAP IS NOT TO BE USED FOR NAVIGATION
NAD_1983_2011_StatePlane_California_III_FIPS_0403_Ft_US Feet3,458.4
Notes
Notes
Legend
This map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable.
1,729.200
1: 20,750
1225 Hopyard Rd
Fire Station
School
Park
Parcels
ATTACHMENT 6
© Latitude Geographics Group Ltd.
1,767.1
THIS MAP IS NOT TO BE USED FOR NAVIGATION
NAD_1983_2011_StatePlane_California_III_FIPS_0403_Ft_US Feet1,767.1
Notes
Notes
Legend
This map is a user generated static output from an Internet mapping site and is for reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable.
883.540
1: 10,602
4100 First St
Fire Station
School
Park
Parcels
1 Housing Element Implementation
Program 7.6.8, Rezoning
(P26-0255)
City Council
September 1, 2026
Purpose and Requested Action
City Council rezone two properties to allow up to ten units on each property, as implementation of Housing Element Program 7.6.8 by taking the following actions:
• Adopt a resolution 1) amending the General Plan land use designation for 1225 Hopyard Road and 4100 First Street from Public and Institutional (P&I) to High Density Residential (HDR), and 2) the Downtown Specific Plan land use designation for 4100 First Street from Public (P) to High Density Residential (HDR); and
• Introduce Ordinances to re-zone a portion of each property to Planned Unit Development-High Density Residential (PUD-HDR), allowing up to 10 residential units on each property, as implementation of Housing Element Program 7.6.8 1 2
2 Background
• Housing Element is one of the required chapters of a General Plan that identifies a jurisdiction’s future housing needs and proposed actions to meet housing requirements
• Program 7.6.8 of the Housing Element requires the City to identify properties for rezoning, each of which would be rezoned to allow up to 10 units • Provide an opportunity for 20 units
Analysis – Site Selection and Outreach
• Five sites identified as potential sites from a broader list of 22 considered properties • Outreach to property owners included letters, phone calls, emails, in-person meetings • Recommendation of two properties to Planning Commission 3 4
3 Recommended Sites
1225 Hopyard Rd, Trinity Lutheran Church 4100 First St, Rock Bible Church Land Use Changes
• Amend land use designations
• General Plan from Public & Institutional to High Density Residential (HDR) • Downtown Specific Plan from Public to HDR for 4100 First Street • Amend Zoning to Planned Unit Development – High Density Residential for a portion of each property
• PUD zoning allows development and design standards to be established by development plan at time of proposal
5 6
4 Public Notice
• Display ad
• Notification to Native American tribes
• Property owner outreach
• Public comments
Environmental Assessment
• EIR for Housing Element
• Program 7.6.8 is exempt from CEQA by State law
7 8
5 Conclusion and Recommendation
City Council rezone two properties to allow up to ten units on each property, as implementation of Housing Element Program 7.6.8 by taking the following actions:
• Adopt a resolution 1) amending the General Plan land use designation for 1225 Hopyard Road and 4100 First Street from Public and Institutional (P&I) to High Density Residential (HDR), and 2) the Downtown Specific Plan land use designation for 4100 First Street from Public (P) to High Density Residential (HDR); and
• Introduce Ordinances to re-zone a portion of each property to Planned Unit Development-High Density Residential (PUD-HDR), allowing up to 10 residential units on each property, as implementation of Housing Element Program 7.6.8 City Council
September 1, 2026
Housing Element Implementation
Program 7.6.8, Rezoning
(P26-0255)
9 10
Item #11
CITY COUNCIL AGENDA REPORT
September 1, 2026
Library and Recreation
TITLE: RECEIVE INFORMATION AND PROVIDE FEEDBACK ON A DRAFT
COMMUNITY SPECIAL EVENT SUPPORT POLICY
SUMMARY
The draft Community Special Event Support Policy (Attachment 1) establishes a transparent and equitable framework for how the City of Pleasanton evaluates and provides support to community organizations presenting special events that benefit Pleasanton residents. The Policy formalizes existing practices, introduces tiered support categories, and strengthens accountability through application requirements, written agreements, and post-event reporting.
BACKGROUND
The City of Pleasanton has a long history of partnering with community organizations to deliver special events that enrich the quality of life for residents, ranging from large-scale civic celebrations and cultural festivals to neighborhood parades. The City currently coordinates 22 special events annually requiring street closures or parking restrictions — an increase of seven from 2025.
While City support for community events has been provided consistently, there has not been a comprehensive policy governing how that support is requested, evaluated, or awarded.
Existing practices have developed organically over time through various organizational agreements, facility use agreements, and annual budget deliberations. As demand for City support has grown and the nature of requests has expanded to include marketing, social media promotion, brand use, and staffing, staff has identified the need for a clear Council- adopted policy.
Staff undertook a review of peer agency policies, including the Town of Danville's Community Events Support Policy (adopted September 2023), and conducted an internal review of current practices. The resulting draft policy was developed collaboratively and reflects input from the Special Event Committee, the City Attorney's Office, and departmental stakeholders.
DISCUSSION
Policy Purpose
The Community Special Events Support Policy establishes a consistent, equitable, and transparent process for City support of special events presented by community organizations.
The Policy applies to support requests submitted through the Community Special Event application process. It governs City support in the form of in-kind services, facility access, staff assistance, and marketing support. It does not supersede existing adopted City policies or individual facility use agreements.
Tiered Support Structure
The Policy organizes City events and support into three categories, modeled on best practices
from peer agencies:
Table 1. Special Event Categories
Category Description Support Available Approval
Category 1:
City Events
Organized, funded,
and managed solely
by the City. Not
governed by this
Policy. Example:
Hometown Holiday.
All City resources City Manager/City
Council (funded
through the budget
process)
Category 2:
City-
Partnered
Events
Hosted by outside
organizations with a
substantial City
contribution. It
includes events
requiring street
closures, significant in-
kind or financial
support, or revenue
sharing. Example.
Annual Veteran's Day
Parade.
In-Kind support City Council (annual)
Category 3:
City-Assisted
Events
Hosted by outside
organizations with
limited City assistance,
which may include
minimal financial
support, promotional
support, or facility use.
Example. Rotary
Halloween Spirit Run.
General Fund subsidy
based on the approved
Master Fee Schedule
Special Events
Committee
Eligibility and Application
Organizations eligible for support include local nonprofits (IRS 501(c)(3), (c)(4), or (c)(6)), registered civic and community organizations, neighborhood associations, service clubs, educational institutions, and veterans' organizations. For-profit organizations may apply only when an event is demonstrably charitable in nature.
Applications are accepted annually from October 1–31 for the following calendar year through the Community Special Event Support Application. Events that do not meet the minimum eligibility requirements — including private events, politically affiliated events, events primarily serving non-residents, or events in conflict with City policies — are ineligible.
Accountability and Reporting
All approved support arrangements will be documented through a written agreement. Event organizers receiving City support must submit a post-event report within 30 days, including attendance data, a description of how the support was utilized, a community benefit summary,
and documentation of any incidents. Organizations that fail to submit required reports will be ineligible for future support.
Existing Events and Transition
Adoption of this Policy is intended to formalize and provide clarity for applicants and a consistent framework for the events the City already supports. It is not intended to significantly alter existing partnerships. Staff will work with current event organizers to bring existing agreements into alignment with the Policy. The special event application process will continue to operate in conjunction with this Policy.
OUTREACH
No outreach has been conducted for this item.
FISCAL IMPACT
The fiscal impacts of the annual support requests will vary and will be presented to the City Council for review.
RECOMMENDATION
Receive information and provide feedback on a draft community special event support policy.
Prepared by: Submitted by: Approved by:
Heidi Murphy, Director of
Library and Recreation
Heidi Murphy, Director of Library and
Recreation
Joe Calabrigo, Interim
City Manager
Attachments:
1. Community Special Event Support Policy
2. Special Event Presentation
ATTACHMENT 1
Policy: City Support of Community Special Events
1. PURPOSE
Community Special Events and programs enhance residents' quality of life, promote civic engagement, celebrate local culture, and further the City's core values.
This Policy applies to support requests submitted through the Special Event application process. The Event Organizer (special event applicant) is typically responsible for fees associated with a Community Special Event, which could include application and permit fees as well as the actual cost of any required City service (Police, Fire, Public Works, etc.). In certain cases, the City may provide resources in the form of in-kind services, including: facility access, staff assistance, and/or marketing support.
This Policy establishes a transparent and equitable framework for the City's support of special events, ensuring that Event Organizers have clarity on process and public resources are directed toward events that provide meaningful community benefit and align with City goals.
This Policy does not supersede existing adopted City policies or agreements.
Community events and/or support approved by the City are not intended to create public forums for general speech and/or public expression.
2. GUIDING PRINCIPLES
All City support decisions shall be guided by the following principles:
• Community Benefit: Events must provide a clear, direct benefit to Pleasanton residents. • Equity & Access: Priority is given to events that are open and accessible to the broader community, including underserved populations.
• Alignment with City Values and Goals: Events should reflect the City's commitment to inclusion, cultural enrichment, and economic vitality.
• Fiscal Responsibility: Support resources are subject to budget and resource availability; the City will not guarantee continuation of support year over year. • Transparency: All support decisions are made through a consistent, documented process.
3. DEFINITIONS
The following terms apply throughout this Policy:
CITY COUNCIL
ATTACHMENT 1
Term Definition
Special Event An organized activity of a civic, cultural, recreational, educational, or charitable nature that occurs on City property or in City facilities, or that requires the coordination of City services. Events may be recurring or one-time.
Event Organizer The individual, organization, or entity responsible for planning, executing, and taking legal responsibility for a special event, including meeting City insurance requirements.
In-Kind Support Non-monetary support provided by the City, including but not limited to use of City facilities, staff time, equipment, marketing, and/or permit fee waivers.
Community Benefit The measurable positive impact an event has on Pleasanton residents, including cultural enrichment, civic engagement, access to services, educational programming, or economic vitality.
4. ELIGIBILITY
A. Organizational Eligibility
Requests for support shall be considered from eligible Event Organizers, including the following:
a. Local nonprofit organizations classified under Internal Revenue Service (IRS) Code Section 501(c)(3), (c)(4), or (c)(6) that operate within the City of Pleasanton with mission statements in alignment with City values, vision, and goals. This could include religious organizations with the required IRS status for charitable or social welfare organizations, if the event is not expressly focused on religious activities. b. Community or civic organizations or local service clubs operating within Pleasanton with mission statements aligned with City goals.
c. Homeowner Associations (HOAs) or informal neighborhood groups, so long as there is a designated individual or entity that can act as the Event Organizer. d. Educational institutions serving Pleasanton residents. e. Veteran's organizations serving Pleasanton residents. f. Other government agencies whose use of a City facility is consistent with their normal functions.
g. In limited cases, for-profit organizations may apply only when an event is demonstrably charitable in nature.
B. Event Eligibility
To be considered for support, a proposed events must meet all the following criteria:
a. Supports the City's mission, vision, and goals, and is of significant value to the Pleasanton community.
ATTACHMENT 1
b. Will not have a significant adverse impact upon City facilities; any minor impacts must be mitigated by the Event Organizer.
c. Does not conflict with or duplicate any City-organized event, program, or activity. d. Will not adversely impact City resources or finances. e. If expected attendance exceeds 2,500, Event Organizer must have demonstrated experience through prior successful events or be a professional event organizer. f. Must comply with all applicable City, County, and State regulations, including permit requirements.
g. Must comply with the City's non-discrimination policies and all other City policies.
C. Ineligible Events
The following events are not eligible for City support under this Policy. Please note that all City support is subject to approval, as outlined below, budget and resource availability:
a. Private events not open to the general public, or public events not providing a significant community benefit to Pleasanton residents.
b. Events intended to provide commercial benefit to private businesses (except as permitted through applicable economic development programs), or to generate profit for a business.
c. Events solely intended for fundraising purposes.
d. Events held on behalf of, or in advocacy of, any political activity, platform, or candidate. e. Religious ceremonies, worship services, or events that use City resources primarily in support of religious activity.
f. Events that conflict with City ordinances or facility use guidelines, including advocacy or promotion of the sale or use of tobacco, alcohol, controlled substances, weapons, or similar products.
g. Events requiring recurring use of City property or facilities, or events of a duration lasting longer than two days.
h. Events previously supported by the City where the organizer did not provide good faith information or did not adhere to City-provided permits or agreements. i. Organizations currently in legal dispute with the City.
Approval of support in a given year does not guarantee approval in subsequent years. Each application is reviewed independently.
5. CITY SUPPORT LEVELS
City support for Special Events is organized into three categories. Criteria, review, and approval vary based on the level of support requested.
Category 1: City Events
Events organized, funded, and managed solely by the City. City Events are not governed by this Policy and are given resource priority over Category 2 and Category 3 events.