Council Calls Up Goodwill Permit, Advances Sewer Rates and Bayfront Signage Plan

The Hercules City Council tackled a full agenda Tuesday night, voting to intervene in a Goodwill store approval over illegal dumping fears, locking in the second year of a five-year sewer rate plan, and directing staff to develop low-cost directional signage to put the city's waterfront businesses on the map. East Bay MUD also briefed the council on a little-known assistance program that could cut qualifying residents' water bills in half.

• Council votes 5-0 to call up Goodwill store permit, setting a de novo hearing over concerns about illegal dumping at the drive-up donation site
• Year 2 of a five-year sewer rate plan approved, placing $8.3 million on the property tax roll after a decade without increases
• Low-cost wayfinding signs proposed to brand a "Bayfront Business District" and guide drivers to waterfront shops and restaurants for $10,000–$20,000
• $100,000 federal grant secured to upgrade all 15 park irrigation systems to cloud-based, weather-responsive controllers
• East Bay MUD spotlights Customer Assistance Program offering 50% off water charges for households earning under roughly $62,000

---

Goodwill Permit Called Up Over Dumping Concerns

The council voted unanimously to pull back the planning commission's recent approval of a Goodwill retail store with drive-up donation operations at 1551 Sycamore Ave., setting the stage for a full de novo hearing on July 28.

Why it matters: The call-up is an unusual step that signals the council may impose tighter conditions — or potentially deny the project altogether — over after-hours donation activity that residents and police say attracts illegal dumping.

Where things stand: Mayor Christine Kelley initiated the call-up, saying she had unresolved questions about how the retailer plans to manage donations left outside business hours. "I think there are some genuine concerns about illegal dumping," she said. "And I don't know that I'm satisfied with what the retail store has provided us in terms of information."

Vice Mayor Alex Walker-Griffin and Councilmember Dilli Bhattarai echoed safety and dumping concerns.

The other side: Councilmember Dion Bailey urged caution, warning colleagues not to give the public a false impression that the project could simply be blocked. "I don't want to give folks the appearance that we can stop it because I think we have to have findings for that," he said. The City Attorney confirmed that under the municipal code, a call-up is treated as a de novo appeal — meaning the council must either make or refuse to make the required findings to approve the permit.

Community Development Director Tim Rood noted that if the council ultimately wants to deny and overrule the planning commission, staff may need a continuance to September to prepare denial findings.

Decisions: The motion to call up CUP 26-01 and DRP 26-01 passed 5-0 (For: Kelley, Bailey, Grimsley, Walker-Griffin, Bhattarai; Against: none).

What's next: The de novo hearing is scheduled for July 28. If the council needs more time to develop findings, the item could be continued to September.

---

$8.3M Sewer Levy Advances Year 2 of Five-Year Rate Plan

The council unanimously approved a resolution placing approximately $8.3 million in sewer service charges on the Contra Costa County property tax roll for fiscal year 2026-27 — the second installment of a five-year rate schedule adopted in July 2025.

The basics: Hercules did not raise sewer rates from 2014 to 2025, drawing down surplus fund balances until the reserves were depleted. A comprehensive study by Wooldan Associates led to the current phased plan. Consultant Ed Espinoza of Francisco and Associates presented the annual report alongside Interim Public Works Director Mike Roberts.

Why it matters: The city maintains 62 miles of sewer lines, seven lift stations, 1,660 manholes, and 7,000 sewer laterals. Deferred maintenance risks costly failures — a lesson underscored by the $12 million–$14 million Sycamore Avenue sewer main replacement completed in recent years. Wastewater is treated at the jointly owned Hercules-Pinole treatment plant and discharged through the Rodeo outfall.

Where things stand: Roberts walked the council through the scope of the infrastructure challenge. "There are actually 62 miles of sewer lines," he said. "It's necessary to do top-down cleaning, where you clean them and then you televise them and then you identify deficiencies and you make repairs." He described approximately a dozen cleaning hotspots and 4.5 miles of force mains that require ongoing investment.

Councilmember Tiffany Grimsley acknowledged rate fatigue but framed the increases as manageable. "Any increases makes all of us a little unhappy," she said. "But it is very, very important that we continue to maintain our sewer systems. And this is a pretty modest increase per year."

Mayor Kelley provided historical context, noting the roughly $175 jump between fiscal years 2025 and 2026 after the long freeze, with single-family increases now settling to about $50 per year for the remaining four years.

Vice Mayor Walker-Griffin asked whether struggling residents have any recourse. Roberts explained that a residential waiver program allows households that can demonstrate usage below the senior living rate — 74 gallons per day — to receive reduced charges.

Decisions: The resolution passed 5-0 (For: Kelley, Bailey, Grimsley, Walker-Griffin, Bhattarai; Against: none). No written protests representing a majority of parcels were received.

---

Bayfront Wayfinding Signs Could Cost as Little as $10,000

Community Development Director Tim Rood pitched a simple, low-cost solution to a longstanding problem: waterfront businesses tucked inside mixed-use buildings are essentially invisible to anyone driving through Hercules.

Why it matters: Unlike businesses along the central corridor visible from the freeway, restaurants like the Powder Keg and Layla by the Bay, coffee shops, and retail at the Exchange and Aventine require visitors to already know they exist. A 2015 pilot program proposed directory-style signs listing individual businesses, but Rood argued those are ineffective for drivers, expensive, and difficult to maintain as tenants change.

Where things stand: Rood proposed eight to nine MUTCD-compliant community wayfinding guide signs — the familiar blue highway signs — placed at key decision points off Highway 4, Highway 80, and San Pablo Avenue. The signs would direct drivers to the "Bayfront Business District" and feature the city's 2024 logo redesign with Quentin the Quail. "If we were to brand the bayfront business district and put up some low-cost vehicular directional signs, staff believes that could be an effective way to encourage casual visitors to make a left turn or a right turn and check out our waterfront," he said.

The price tag: "I think the whole thing could be done for probably between $10,000 and $20,000," Rood estimated.

Councilmember Grimsley pushed to include generic category indicators — restaurants, retail — rather than just the district name. Vice Mayor Walker-Griffin suggested adding "historic" to leverage the area's dynamite factory heritage. Councilmember Bailey urged the council to settle on a name for the district before installing signs, noting the branding should be coordinated with future monument signs scheduled for discussion in September.

Public commenter Oscar Adams proposed a different approach: a large digital sign off Highway 4 where individual restaurants could purchase short advertising time slots, arguing Hercules sits at a key highway junction.

What's next: Council directed staff to bring the wayfinding concept to the Economic Development Subcommittee for community input and further development, with coordination around the September monument signs discussion.

---

East Bay MUD Spotlights 50% Discount Many Residents May Not Know Exists

East Bay MUD Board Director Joey D. Smith and Community Affairs Representative Dr. Iannad Burrell briefed the council on the utility district's operations and community programs — with one takeaway that could directly affect residents' wallets.

Why it matters: East Bay MUD's Customer Assistance Program offers 50% off water service and flow charges and 35% off wastewater services for qualifying low-income households. Applications can be completed by phone. Councilmember Bailey said the income threshold — roughly $62,000 — was news to him. "I didn't know that. And so I'll make sure a lot of our seniors, I'm sure, qualify for that," he said.

Dr. Burrell also covered emergency preparedness, urging residents to store at least two gallons of water per person for three to seven days and to know where their home water shutoff valve is. The district maintains 31,000 hydrants and delivers 150 million gallons daily across 4,200 miles of pipe, with 90% of supply sourced from the Mokelumne watershed in the Sierra Nevada. The average delivered cost: one penny per gallon.

The district's Contract Equity program, in place over 40 years, helps small and diverse businesses access contracting opportunities, and its STEAM education initiative has reached more than 55 Title 1 schools.

During general public comment, a caller named Christina reported that Zoom attendees could not see the East Bay MUD presentation and asked for materials to be distributed. She also requested a direct contact to resolve ongoing meter reading discrepancies on her water bill.

---

Minor Items

• Delinquent garbage liens approved 5-0: 91 accounts totaling $55,195.85 for January–April 2026 will be placed as liens on property taxes. The city clerk noted delinquent accounts have decreased from the prior year. Residents can pay Republic Services by Aug. 10 to be removed from the list.
• Consent calendar approved 5-0, including deferral of the monument sign discussion from July 28 to Sept. 8.
• $100,000 WaterSMART Grant: The U.S. Department of Interior awarded Hercules funding to upgrade all 15 park irrigation clocks to cloud-based, weather-responsive controllers accessible via mobile app.
• Mobile trailers at city hall will be removed at no cost to the city; salvageable furniture is going to Habitat for Humanity. Credit was given to new Maintenance and Operations Superintendent Chris Morris.
• Park improvements underway: Railroad Park bench and table repairs and painting; Shoreline Park bathroom painting and slide/matting repairs.
• Councilmember Grimsley proposed a community business stroll event to introduce residents to lesser-known waterfront businesses, including Home Coffee, Dream Bowls, and Luna's. The idea was sent to the Economic Development Subcommittee.
• Councilmember Bailey reported that an MCE TECOM wind farm originally due in 2027 is coming online months early.
• Closed session: No reportable action on the city manager recruitment.
• Horizon 2050 General Plan update: A preliminary survey is open until Sept. 20, with a community workshop on Sept. 10 at the library.
• Community events ahead: St. Vincent DePaul free grocery kits at Hercules Swim Center on July 23; Zootopia 2 movie night at Refugio Valley Park on July 17; National Night Out at Refugio Valley Park on Aug. 4.