Council Adopts Hazard Plan to Shield City From Disaster Costs

San Pablo's City Council, operating at a bare three-member quorum, moved to protect the city from potentially millions in future disaster recovery costs and began reshaping its Public Works leadership pipeline — all while signaling that a looming structural budget deficit will dominate the weeks ahead.

• Hazard mitigation plan integrated into General Plan, eliminating the city's 6.25% local share of disaster recovery costs under state law

• Ordinance advanced to drop the engineer requirement for the Public Works Director position, broadening the search for a permanent hire after the late director's passing

• City Manager warns of structural deficit driven by stagnant casino revenue and rising costs; two virtual budget meetings set ahead of a June 1 public hearing

• Rent Review Program workshop announced for May 28, previewing a proposed ordinance regulating rent increases above a set threshold

• Council honors late Public Works Director Alan Panganiban with a moment of silence and proclamation during National Public Works Week

Disaster Cost Shield: Hazard Plan Locked Into General Plan

Why it matters: Without this step, San Pablo would be on the hook for 6.25% of disaster recovery costs every time FEMA assistance is triggered. In a major earthquake or flood, that could mean millions out of the city's general fund.

The basics: FEMA requires a 25% local cost share for disaster assistance. The California Disaster Assistance Act covers up to 18.75%, leaving 6.25% for local governments. Assembly Bill 2140 allows the state to cover that remaining slice — but only if a jurisdiction has formally adopted its Local Hazard Mitigation Plan into the safety element of its general plan.

Where things stand: Associate Planner Griffin Dempsey presented the item, explaining that Cal OES had reviewed San Pablo's earlier adoption of the Contra Costa County 2024 Local Hazard Mitigation Plan and requested this formal integration step. The amendment attaches the plan as an appendix to the Safety Element — no text changes to the element itself.

"Assembly Bill 2140 allows the state to cover that remaining 6.25% if a jurisdiction has an adopted local hazard mitigation plan and adopted said plan into the safety element of the general plan," said Associate Planner Griffin Dempsey.

Dempsey also flagged what's coming next: a comprehensive safety element update is in the works with a consultant and the police department, incorporating new fire hazard severity area maps and state-mandated evacuation route planning requirements.

Decisions: The resolution passed 3-0 (For: Cruz, Ponce, Xavier; Absent: Pineda, Pabon-Alvarado) after a public hearing that drew no public comment.

What's next: The broader safety element update will bring additional general plan changes in the months ahead.

Public Works Shakeup: Engineer Requirement Dropped for Director Role

Why it matters: The late Public Works Director Alan Panganiban's passing has left the position filled on an interim basis. Removing the City Engineer mandate opens the door to a wider pool of candidates for the permanent hire — a shift that reflects changing norms in municipal management.

Where things stand: The current municipal code requires the Public Works Director to also serve as City Engineer and hold an engineering license. The City Attorney explained that the trend in public works leadership has moved beyond this model.

"The trend in a lot of cities nowadays, a public works director is not necessarily an engineer. Sometimes they are, sometimes they're not. And so what this ordinance does is it provides additional flexibility for the city to recruit and hire a public works director that may or may not be an engineer as well," the City Attorney said.

The city engineer duties would still be performed — just by another employee if the director doesn't hold an engineering license.

Decisions: The first reading passed 3-0 (For: Cruz, Ponce, Xavier; Absent: Pineda, Pabon-Alvarado). No council questions or public comments were raised.

What's next: The ordinance returns for final adoption on the consent calendar at the June 1 meeting.

Budget Warning: Casino Revenue Stalls as Costs Rise

Why it matters: San Pablo's casino revenue — a primary general fund driver — has flatlined while inflation has pushed costs higher, creating the kind of structural deficit that forces cities to choose between service cuts, new revenue, or both.

City Manager Matt Rodriguez announced two virtual community budget meetings ahead of the June 1 public hearing: May 20 in English and May 27 in Spanish. He was blunt about the challenge facing the city.

"The online sessions will provide residents with a general overview of the City's new general fund operating budget, our key community investments and challenges the City is facing such as a projected structural deficit due to rising inflation costs and stagnant casino revenue growth," said City Manager Matt Rodriguez.

The sessions will cover the proposed FY 2026-27 and 2027-28 general fund operating budget. Details will be posted on the city website, City Manager E-News, and social media.

Rent Review Program Takes Shape

City Manager Matt Rodriguez also announced that the city's Economic Development Housing Division will host a Rent Review Program workshop on May 28, from 5–6 p.m. at San Pablo City Hall. A proposed local ordinance would establish a formal review process for rent increases above a set threshold — giving tenants a mechanism to challenge large hikes.

"A local ordinance has been developed to establish a new Rent Review program process for rent increases over a set threshold," City Manager Rodriguez said. Spanish translation services and light refreshments will be provided.

What's next: The workshop precedes what is shaping up to be a consequential June 1 meeting, where the two-year budget and multiple policy items will converge.

A Moment of Silence: Council Honors Alan Panganiban

The meeting's most emotional moment came early, during a proclamation recognizing May 17–23, 2026, as National Public Works Week. What began as a celebration of the city's 27-member Public Works Department turned into a tribute to its late director.

Interim Public Works Director Joe Mercurio accepted the proclamation and turned it into a memorial.

"For the past four years, the success of the department has been due to the fine work of Alan Panganiban, who's been out on leave and recently passed away. I accept this proclamation in his honor," said Interim Public Works Director Joe Mercurio.

City Manager Matt Rodriguez then asked the council for a moment of silence: "I'd like to ask the Council if we could entertain a moment of silence for Alan Panganiban, our former Public Works Director, who sadly passed away earlier this month after a long health struggle. He will be in our hearts forever."

Council members offered personal reflections praising the department's work in all weather conditions and honoring Panganiban's memory. Vice Mayor Rita Xavier adjourned the meeting at 6:54 p.m. in Panganiban's memory.

New Faces in City Hall

The council formally introduced five new employees and recognized five promotions spanning January through May 2026. The most significant hire: Community Development Director Alan Tai, who brings nearly 25 years of planning experience from the City of Alameda, holds AICP certification and LEED accreditation, and started May 1.

"I very much appreciate the opportunity to serve the San Pablo community and I'm very excited to work with a team of excellent, very dedicated staff in the city and as well as the community to advance the City Council's vision and priorities," said Community Development Director Alan Tai.

Other notable additions include Taylor Melton as Community Services Manager overseeing youth, schools, and community partnerships — a Richmond/San Pablo area native who graduated summa cum laude from San Diego State and previously worked for the cities of Pinole and El Cerrito. Promotional appointments included Griffin Dempsey to Associate Planner, Victor Beruman to Maintenance & Operations Superintendent (a 20-year city veteran), and Casey Erlenheim to Deputy City Clerk.

Minor Items

• Consent calendar adopted 3-0 with no items pulled; included appointment of Sarah Ortega to a committee.

• LGBTQ Pride flag display for June 2026 approved 3-0 for formal consideration at the June 1 meeting under Resolution 2020-061.

• Councilmember Arturo Cruz reported attending a Police Department "Coffee with the Cops" event, the EDC Small Business of the Year award, and a community grant committee meeting.

• Vice Mayor Rita Xavier disclosed attending multi-day CCTA workshops in Orinda on May 14–15 planning a transportation sales tax extension to extend Measure J in 2028 — a regional funding decision that could affect San Pablo infrastructure investments.