City Council Chambers
3300 Capitol Avenue
Fremont, CA
Fremont City Council
Lily Mei, Mayor
Raj Salwan, Vice Mayor
Teresa Keng, District 1
Rick Jones, District 2
Jenny Kassan, District 3
Yang Shao, District 4
Teresa Cox, District 6
City Staff
Karena Shackelford, City Manager
Rafael Alvarado, Jr., City Attorney
Christina Briggs, Assistant City Manager
Brian Stott, Assistant City Manager
Allen DeMers, Human Resources Director
Susan Gauthier, City Clerk
Curtis Jacobson, Fire Chief
Hans Larsen, Public Works Director
David Persselin, Finance Director
Dan Schoenholz, Community Dev. Director
Suzanne Shenfil, Human Services Director
Sanford Taylor, Information Technology Director
Sean Washington, Chief of Police
Suzanne Wolf, Community Services Director
Fremont City Council
Agenda and Report
March 08, 2022
General Order of Business
1. Preliminary
• Call to Order
• Salute to the Flag
• Roll Call
2. Consent Agenda
3. Ceremonial Items
4. Public Communications
5. Scheduled Items
• Public Hearings
• Appeals
• Reports from Commissions, Boards and
Committees
6. Report from City Attorney
7. Other Business
8. Council Communications
9. Adjournment
IMPORTANT NOTICE REGARDING THE
CITY COUNCIL MEETING
This meeting is being conducted utilizing
teleconferencing and electronic means Pursuant to
Government Code Section 54953(e) (Assembly Bill
361), The live stream of the meeting may be viewed
on the City of Fremont’s website at
www.Fremont.gov/Channel27 , which also provides
a link to the live stream; or, on Comcast Channel 27.
Please note at this time, Channel 27 is only
available to Comcast cable subscribers. The public
may only view the meeting on television and/or
online and not in the Council Chamber.
Submission of Public Comments: For those wishing
to make public comments at the March 8, 2022
Council meeting, you may either: (1) submit your
comments by email prior to the meeting, or (2) by
Spoken Public Comment during the meeting. If you
experience technical problems with the telephonic
meeting, please contact the City Clerk’s Office at
(510)284-4060 or [email protected] .
See instructions on next page.
Agenda and Report - Fremont City Council Meeting - March 08, 2022
March 8, 2022 Fremont City Council Page 2
How to submit Public Communications / Public Comment by email prior to the meeting:
Send an email to [email protected] by 4:00 p.m. the day of the meeting. Please identify the agenda item number and meeting date in the subject line of your email or specify that it is not related to an agenda item. Emails will be compiled into files by agenda item number, distributed to the City Council and staff, and published in the City's Agenda Center on www.fremont.gov. If you wish to share an attachment/exhibit during a public comment portion of the zoom meeting, submit the pdf formatted document(s) to the email above by the noted deadline. Use the “raise hand” feature to request to speak. When called upon by the Mayor, City staff can share the document(s) while you are speaking during the time allotted.
Electronic comments on agenda items for the City Council meeting may only be submitted by email. Comments via text and social media (Facebook, Twitter, etc.) will not be accepted.
How to provide Spoken Public Comment during the meeting:
1) By phone 833-430-0037 (toll free). Webinar ID: 926 8467 3579. Click *9 to raise a hand to speak. 2) By online https://zoom.us/j/92684673579
a. Use a current, up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers including Internet Explorer. Mute all other audio before speaking. Using multiple devices can cause an audio feedback. b. Enter an email address and name. The name will be visible online and will be used to notify you that it is your turn to speak.
c. When the Mayor calls for the item on which you wish to speak, click on “raise hand.” Speakers will be notified shortly before they are called to speak.
d. When called, please limit your remarks to the time limit allotted.
If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act, or if you do not have access to email or the internet, please contact The City Clerk’s Office at (510)284-4060 or [email protected] prior to the meeting for assistance.
Order of Discussion
Generally, the order of discussion after introduction of an item by the Mayor will include comments and information by staff followed by City Council questions and inquiries. The applicant, or their authorized representative, or interested citizens, may they speak on the item; each speaker may only speak once to each item. At the close of public discussion, the item will be considered by the City Council and action taken. Items on the agenda may be moved from the order listed.
Consent Calendar
Items on the Consent Calendar are considered to be routine by the City Council and will be enacted by one motion and one vote. There will be no separate discussion of these items unless a Councilmember or citizen so requests, in which case the item will be removed from the Consent Calendar and considered separately.
Additionally, other items without a “Request to Address the City Council” card in opposition may be added to the consent calendar. The City Attorney will read the title of ordinances to be adopted.
Oral Communications
Any person desiring to speak on a matter which is not scheduled on this agenda may do so under the Oral Communications section of Public Communications. Please submit your speaker card to the City Clerk prior to the commencement of Oral communications. Only those who have submitted cards prior to the beginning of Oral Communications will be permitted to speak. Please be aware the California Government Code prohibits the City Council from taking any immediate action on an item which does not appear on the agenda, unless the item meets stringent statutory requirements. The Mayor will limit the length of your presentation (see instructions on speaker card) and each speaker may only speak once on each agenda item.
The City Council Agendas may be accessed by computer at the following World Wide Web Address:
www.fremont.gov
Availability of Public Records
All disclosable public records relating to an open session item on this agenda that are distributed by the City to all or a majority of the City Council less than 72 hours prior to the meeting will be available for public inspection in specifically labeled binders located in the lobby of Fremont City Hall, 3300 Capitol Avenue during normal business hours, at the time the records are distributed to the City Council.
Information about the City or items scheduled on the Agenda and Report may be referred to:
Address: City Clerk
City of Fremont
3300 Capitol Avenue, Bldg. A
Fremont, California 94538
Telephone: (510) 284-4060
Your interest in the conduct of our City’s business is appreciated.
March 8, 2022 Fremont City Council Page 3
Agenda
Fremont City Council Regular Meeting
March 08, 2022
City Council Chambers, 3300 Capitol Avenue, Building A
7:00 PM
1. Preliminary
A. Call to Order
B. Salute the Flag
C. Roll Call
D. Announcements by Mayor / City Manager
2. Consent Calendar
Items on the Consent Calendar are considered to be routine by the City Council and will be enacted by one motion and one vote. There will be no separate discussion of these items unless a Councilmember or citizen so requests, in which event the item will be removed from the Consent Calendar and considered separately. Additionally, other items without a “Request to Address Council” card in opposition may be added to the consent calendar. The City Attorney will read the title of ordinances to be adopted.
A. Motion To: Waive Further Reading of Proposed Ordinances (This permits reading the title only in lieu of reciting the entire text.) B. Approval of Minutes
1. APPROVAL OF MINUTES – for the Regular Meeting of February 8, 2022 (revised), the Special and Regular Meetings of February 15, 2022, and the Regular Meeting of March 1, 2022
Contact Persons:
Name: Susan Gauthier
Title: City Clerk
Dept: City Clerk's Office
Phone: 510-284-4076
E-Mail: [email protected]
RECOMMENDATION: Approve minutes.
C. AB 361 - Consider Making Findings to Allow the City Council and the Legislative Bodies of the City of Fremont to Continue Holding Meetings via Videoconference pursuant to AB 361
Contact Persons:
Name: Rafael Alvarado Christina Briggs
Title: City Attorney Assistant City Manager
Dept: City Attorney's Office City Manager's Office
Phone: 510-284-4030 510-284-4022
E-Mail: [email protected] [email protected]
March 8, 2022 Fremont City Council Page 4
RECOMMENDATION: Staff recommends that the City Council make the following findings in order to continue holding videoconference meetings for the City Council and the City’s legislative bodies:
1. The City Council has reconsidered the circumstances of the COVID-19 state of emergency;
2. The state of emergency continues to directly impact the ability of the members to meet safely in person; and
3. Staff is directed to schedule reconsideration of these findings at the regularly scheduled City Council meeting on April 5, 2022.
3. Ceremonial Items
A. Resolution: Honoring Fremont Fire Rehabilitation Unit Volunteer Coordinator Susan Rath for Twenty Years of Service
4. Public Communications
A. Oral and Written Communications
INDUSTRIAL DEVELOPMENT AUTHORITY - None.
PUBLIC FINANCING AUTHORITY - None.
CONSIDERATION OF ITEMS REMOVED FROM CONSENT CALENDAR
5. Scheduled Items - None.
6. Report from City Attorney - None.
7. Other Business
A. FISCAL YEAR 2021/22 MID-YEAR BUDGET REPORT - Update on the Status of the FY 2021/22 General Fund Operating Budget and Preliminary Three- Year Forecast; Approve Budget Adjustments
Contact Persons:
Name: David Persselin
Title: Finance Director
Dept: Finance Department
Phone: 510-494-4631
E-Mail: [email protected]
RECOMMENDATIONS:
1. Increase the General Fund revenue estimate for sales tax by $21.8 million.
2. Approve the transfer of $21.8 million to the Capital Improvements Fund (Fund 501).
March 8, 2022 Fremont City Council Page 5
8. Council Communications
A. Council Referrals - None.
B. Oral Reports on Meetings and Events
9. Adjournment
March 8, 2022 Fremont City Council Page 6
March 8, 2022 Fremont City Council Page 7
ACRONYMS
ABAG Association of Bay Area Governments GIS Geographic Information System ACE Altamont Commuter Express GPA General Plan Amendment ACFCD Alameda County Flood Control District HARB Historical Architectural Review Board ACTC Alameda County Transportation
Commission
HBA Home Builders Association
HRC Human Relations Commission
ACWD Alameda County Water District ICMA International City/County Management Association ARB Art Review Board
BAAQMD
BART
Bay Area Air Quality Management
District
Bay Area Rapid Transit District
JPA Joint Powers Authority
LLMD Lighting and Landscaping Maintenance
District
BCDC Bay Conservation & Development
Commission
LOCC League of California Cities
LOS Level of Service
BMPs Best Management Practices MOU Memorandum of Understanding BMR Below Market Rate MTC Metropolitan Transportation
Commission
CALPERS California Public Employees’ Retirement
System
NEPA
NLC
National Environmental Policy Act
National League of Cities
CBC
CDD
California Building Code
Community Development Department
NPDES National Pollutant Discharge Elimination
System
CC & R’s Covenants, Conditions & Restrictions NPO Neighborhood Preservation Ordinance CDBG Community Development Block Grant PC Planning Commission CEQA California Environmental Quality Act PD Planned District CERT Community Emergency Response Team PDA Priority Development Area CIP Capital Improvement Program PUC Public Utilities Commission CNG Compressed Natural Gas PVAW Private Vehicle Accessway COF City of Fremont PWC Public Works Contract
COPPS Community Oriented Policing and Public
Safety
RFP Request for Proposals
RFQ Request for Qualifications
CSAC California State Association of Counties RHNA Regional Housing Needs Allocation CTC California Transportation Commission ROP Regional Occupational Program dB Decibel RRIDRO Residential Rent Increase Dispute
Resolution Ordinance DEIR Draft Environmental Impact Report DU/AC Dwelling Units per Acre RWQCB Regional Water Quality Control Board EBRPD East Bay Regional Park District SACNET
Southern Alameda County Narcotics
Enforcement Task Force EDAC Economic Development Advisory Commission (City)
EIR
EIS
Environmental Impact Report (CEQA)
Environmental Impact Statement
STIP State Transportation Improvement
Program
ERAF
(NEPA)
Education Revenue Augmentation Fund
TCRDF Tri-Cities Recycling and Disposal Facility
TOD Transit Oriented Development
EVAW
FAR
Emergency Vehicle Accessway
Floor Area Ratio
TS/MRF Transfer Station/Materials Recovery
Facility
FEMA Federal Emergency Management Agency UBC See CBC
FFD Fremont Fire Department VTA Santa Clara Valley Transportation Authority
FMC Fremont Municipal Code WMA Waste Management Authority FPD Fremont Police Department
FRC Family Resource Center ZA Zoning Administrator
FUSD Fremont Unified School District ZTA Zoning Text Amendment
@
March 8, 2022 Fremont City Council Page 8
UPCOMING MEETING AND CHANNEL 27
BROADCAST SCHEDULE
Date Time Meeting Type Location
Cable
Channel
27 March 8, 2022 5:30 p.m. City Council Closed Session
Meeting Virtual Live
March 8, 2022 7:00 p.m. City Council Meeting Virtual Live March 15, 2022 7:00 p.m. City Council Meeting Virtual Live March 22, 2022 5:30 p.m. CC/FUSD Liaison Committee
Meeting City Hosts Live
March 22, 2022 No 7 PM City Council Meeting
(4th Tuesday)
March 29, 2022 No 7 PM City Council Meeting
(5th Tuesday)
April 5, 2022 7:00 p.m. City Council Meeting Council
Chambers Live
April 12, 2022 7:00 p.m. City Council Meeting Council
Chambers Live
April 19, 2022 7:00 p.m. City Council Meeting Council
Chambers Live
April 26, 2022 *CANCELLED*
April 26, 2022 No 7 PM City Council Meeting
(4th Tuesday)
Monday,
May 2, 2022 5:30 p.m. Joint City Council/FUSD
Meeting City Hosts Live
May 3, 2022 7:00 p.m. City Council Meeting Council
Chambers Live
May 10, 2022 7:00 p.m. City Council Meeting Council
Chambers Live
May 17, 2022 7:00 p.m. City Council Meeting Council
Chambers Live
May 24, 2022 5:30 p.m. CC/FUSD Liaison Committee
Meeting FUSD Hosts Live
May 24, 2022 No 7 PM City Council
Meeting (4th Tuesday)
May 31, 2022 No 7 PM City Council
Meeting (5th Tuesday)
Fremont City Council Meeting: 03/08/22 07:00 PM
3300 Capitol Avenue Div/Dept: City Clerk's Office
Fremont, CA 94538 Category: Approval of Minutes
SCHEDULED
Sponsors:
STAFF REPORT (ID # 4568) DOC ID: 4568
Updated: 3/4/2022 11:31 AM by Susan Gauthier Page 1
APPROVAL OF MINUTES – for the Regular Meeting of February 8, 2022 (revised), the Special and Regular Meetings of February 15, 2022, and the Regular Meeting of March 1, 2022
Contact Persons:
Name: Susan Gauthier
Title: City Clerk
Div/Dept: City Clerk's Office
Phone: 510-284-4076
E-Mail: [email protected]
APPROVAL OF MINUTES – for the Regular Meeting of February 8, 2022 (revised), the Special and Regular Meetings of February 15, 2022, and the Regular Meeting of March 1, 2022.
ATTACHMENTS:
• Draft Minutes
RECOMMENDATION: Approve minutes.
2.B.1
Packet Pg. 9
*Consent Items
MINUTES
FREMONT CITY COUNCIL MEETING
FEBRUARY 8, 2022
VIRTUAL MEETING VIA ZOOM
7:00 P.M.
1. PRELIMINARY
A. Call to Order: Mayor Mei called the mee ting to order at 7:01 p.m.
B. Flag Salute: Councilmember Cox led the salute to the flag.
C. Roll Call: Present: Mayor Mei, Vice Mayor Salwan, Councilmembers: Keng, J ones, Kassan, Shao, and Cox
D. Announcements by Mayor/City Manager
Mayor read a statement for community members interested in learning more about the HomeKey affordable housing Project at Motel 6 to visit the City’s website and look at the newly published Frequently Asked Questions document. www.Fremont.gov/HomekeyFAQs.
Mayor Mei announced the Boards and Commissions vacancies. City Manager Shackelford introduced staff.
2. CONSENT CALENDAR
* A. Waive Reading of Ordinances: The City Attorney read the titles of ordinances to be considered.
On a motion by Councilmember Jones, seconded by Councilmember Cox, the City Council waived further readings of proposed ordinances.
Ayes: Mayor Mei, Vice Mayor Salwan, Councilmembers: Keng, Jones, Kassan, Shao, and Cox
Noes: None
Absent: None
Abstain: None
* B. Mayor Mei opened consideration of Approval of Minutes
On a motion by Councilmember Jones, seconded by Councilmember Cox, the City Council approved minutes for the Regular Meeting of November 9, 2021, the Special Meeting of November 14, 2021, the Special and Regular Meetings of November 16, 2021, the Special and Regular Meetings of December 7, 2021, the Special and Regular Meetings of December 14, 2021, the Regular Meeting of January 11, 2022, and the Regular Meeting of January 18, 2022.
2.B.1.a
Packet Pg. 10
Attachment: Draft Minutes (4568 : Approval of Minutes - 2022-02-08 - 2022-03-01)
*Consent Items
Ayes: Mayor Mei, Vice Mayor Salwan, Councilmembers: Keng, Jones, Kassan, Shao, and Cox
Noes: None
Absent: None
A
bstain: None
* C. Mayor Mei opened considera tion of Approval Making Findings to Allow the City Council and the Legislative Bodies of the City of Fremont to Continue Holding Meetings via Videoconference pursuant to AB 361
On a motion by Councilmember Jones, seconded by Councilmember Cox, the City Council made the following findings in order to continue holding videoconference meetings for the City Council and the City’s legislative bodies:
1. The City Council has reconsider ed the circumstances of the COVID-19 state of emergency;
2. The state of emergency continues to directly impact the abil ity of the members to meet safely in person; and
3. Staff is directed to schedule reconsideration of these findings at the regularly scheduled City Council meeting on March 8, 2022.
Ayes: Mayor Mei, Vice Mayor Salwan, Councilmembers: Keng, Jones, Kassan, Shao, and Cox
Noes: None
Absent: None
Abstain: None
* D. Mayor Mei opened consideration of to Introduce an Ordinanc e Amending the Special Events and Parades Ordinance and Adopt a Resolution Amending the Master Fee Schedule to Change City Staff Charges for Special Events
On a motion by Councilmember Jones, seconded by Councilmember Cox, the City Council:
1. Waived full reading and intr oduce the proposed ordinance amending the Special Events and Parades Ordinance.
2. Adopted Resolution No. 2022-05 a mending the Master Fee Schedule for Special Event Staff Charges as outlined in Draft Resolution – Amend Master Fee Schedule Special Events.
Ayes: Mayor Mei, Vice Mayor Salwan, Councilmembers: Keng, Jones, Kassan, Shao, and Cox
Noes: None
Absent: None
Abstain: None
2.B.1.a
Packet Pg. 11
Attachment: Draft Minutes (4568 : Approval of Minutes - 2022-02-08 - 2022-03-01)
*Consent Items
3. CEREMONIAL ITEMS
A. Proclamation: Congenital Hear t Defect Awareness Week, February 7-14, 2022
B. Proclamation: Honoring Black History Month, February 2022
4. PUBLIC COMMUNICATIONS
A. Oral and Written Communications
Email submitted to the City Clerk were compiled, distributed to the City Council and staff, and published in the City's Agenda Center on fremont.gov, and were placed on file.
Alanda Johnson (representing Hayward South Alameda County NAACP) and Shamsa thanked the Council for recognizing Black History Month. The following persons spoke in support of Councilmember Cox, regarding her request for an additional Black History Month proclamation, which had not been approved for recognition by Mayor Mei: Selina McManus, Carolyn Fowler (Chair, California Democrat Women’s Caucus and member of Alpha Kappa Sorority. However, she stated she was speaking personally.), Beatrice Ross, Lavere Foster (African American Community Service Agency), Rebekah Melesse, Zina Slaughter (President of the Rho Delta Omega Chapter of Alpha Kappa Alpha Sorority Inc., and the Ivy and Pearls Foundation, the Members of their Chapter and their Foundation stand in support of their Sorority Sister, Councilmember Cox), *16502/Jaime Joaquin Dominiquez (a proud U.S. Army Honorable Military Veteran, past member Board of Directors for the Spanish Chamber of Alameda County, and member of [in audible] Civil Rights Organization), Sara Prada (Trustee Prada from Hayward Unified School District, but calling in as a [in audible] Sister for Councilwoman Cox), Milan Balinton (African American Community Service Agency), Erika Albury (member of Alpha Kappa Alpha Sorority, Inc.), and Reverend Wanda Johnson (mother of Oscar Grant who was killed January 1
st, 2009 at the Fruitvale BART Station). Ronnie
Forbes thanked Mayor Mei for her work to assist One Nation Dreammakers. The following persons spoke in opposition of the HomeKey affordable housing Project at Motel 6: Dina Deshpande, Mis, Lei, Lucy Zhang, Gulu Gulu, Wendy Li, Faye, Annie Chang, Chung, Steve Chiu, Agu, James Li, Rolland Lam, Cherry, Clair, Min, Seemeen Mirza, Simon, Jess, Ping L., and Ali. The following persons spoke in support of the HomeKey affordable housing Project:
Marie Hughes, Peggy Rahman (President of the National Alliance on Mental Illness, Alameda County affiliate), Lisa Danz (Fremont for Everyone Leadership Team), NS, Katharine Rubie, Hayes Shair, Annie Koruga, and Vinita Verma. Clement shared comments and concerns regarding the Homekey project.
5. SCHEDULED ITEMS – None.
6. REPORT FROM CITY ATTORNEY – None.
2.B.1.a
Packet Pg. 12
Attachment: Draft Minutes (4568 : Approval of Minutes - 2022-02-08 - 2022-03-01)
*Consent Items
7. OTHER BUSINESS
A. Mayor Mei opened considera tion of Approval of Direction for the Street Design Along Fremont Boulevard to Retain Four Vehicle Lanes (Two in Each Direction) in the Centerville Business District Area, Generally Between Thornton Avenue and Central Avenue, as Part of the Centerville Complete Streets Project (PWC 8946) (Centerville Complete Streets Project)
Email submitted to the City Clerk were compiled, distributed to the City Council and staff, and published in the City's Agenda Center on fremont.gov, and were placed on file.
Public Works Director Hans Larsen provided a presentation. Staff responded to questions from Councilmembers. Mayor Mei opened the public comment period. The following persons shared comments or concerns regarding the project: Vinita Verma, Kathy Kimberlin, Annie Koruga, Chung, Andreas Kadavanich, Flavio Poehlmann, Kelly Abreu, William Yragui, Laura Winter, Steve Skala, Monique Chapman (Chair of the Senior Citizens Commission), and Bruce Brubaker. There being no additional speakers, Mayor Mei closed the public comment period.
On a motion by Councilmember Jones, seconded by Councilmember Shao, the City Council approval of direction for the street design along Fremont Boulevard to retain four vehicle lanes (two in each direction) in the Centerville business district area, generally between Thornton Avenue and Central Avenue, as part of the Centerville Complete Streets Project (PWC 8946).
A
yes: Ma yor Mei, Councilmembers: Keng, Jones, and Shao
Noes: Councilmem bers: Kassan and Cox
Absent: None
Recused: Vice Ma yor Salwan (business/property interests)
8. COUNCIL COMMUNICATIONS
A. Council Referrals – None.
B. Oral Reports on Meetings and Events
Councilmembers reported on their various meetings and activiti es
9. ADJOURNMENT: There being no further business, Mayor Mei adjourned the meeting at 10:35 p.m.
A t t e s t : A p p r o v e d :
_____________________________ ___________________________ S u s a n G a u t h i e r , C i t y C l e r k L I L Y M E I , M a y o r
2.B.1.a
Packet Pg. 13
Attachment: Draft Minutes (4568 : Approval of Minutes - 2022-02-08 - 2022-03-01)
MINUTES
FREMONT CITY COUNCIL SPECIAL MEETING
FEBRUARY 15, 2022
VIRTUAL MEETING VIA ZOOM
6:00 P.M.
Call to Order: Mayor Mei called the mee ting to order at 6:00 p.m.
Roll Call: Present: Mayor Mei, Vice Mayor Salwan, Councilmembers: Keng, J ones, Kassan, Shao, and Cox
Public Comment: None.
CONVENED TO A CLOSED SESSION at 6:03 p.m.
CONFERENCE WITH LEGAL COUNSEL – LIABILITY CLAIMS
(Government Code Section 54956.95)
1. Sook He Choi v. City of Fremont, Claim No. 4172-P1-C1
2. Angel Gloria v. City of Fremont, Claim No. 4197-P1-C1
3. Jimmy Go v. City of Fre mont, Claim No. 4209-P1-C1
4. Frederick Bobbitt v. City of F remont, Claim No. 4185-P1-C1
CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Government Code Section 54956.9(d)(1))
1. Terri Cooper v. City of Fremont , Alameda County Superior Court, Case No. HG20076568
2. Shacory Daniels v. City of Fre mont, US District Court for the Northern District of California, Case No. 3:20-cv-03977-EMC
3. Kenneth Davis v. City of Fremont , Alameda County Superior Court, Case No. RG20078697
4. Shahida Hassan v. City of Frem ont, Alameda County Superior Court, Case No. 21CV002766
5. Diane Hendry v. City of Fremont , Alameda County Superior Court, Case No. RG18915635
6. Miaolan Lee, et al. v. City of Fremont, US District Court fo r the Northern District of California, Case No. 3:21-cv-04661-CRB
7. Michelle Mondragon v. City of Fre mont, US District Court for the Northern District of California, Case No. 5:18-cv-01605-NC
8. Jonathan Tampico v. City of Fremont, US District Court for t he Northern District of California, Case No. 3:20-cv-02713-EMC
9. Van Trinh, et al. v. City of Fre mont, Alameda County Superior Court, Case No. RG20075420
10. Sunhill Enterprises v. City of Fremont, Alameda County Supe rior Court, Case No. RG17873584
11. City of Fremont v. Jacob Jaramillo, Alameda County Superior Court, Case No. HG21113779
12. City of Fremont v. Frank Freit as, Alameda County Superior Court, Case No. 22CV006048
2.B.1.a
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Attachment: Draft Minutes (4568 : Approval of Minutes - 2022-02-08 - 2022-03-01)
The Special Meeting of the Fremont City Council adjourned at 6:40 p.m.
A t t e s t : A p p r o v e d :
_____________________________ ___________________________ S u s a n G a u t h i e r , C i t y C l e r k L I L Y M E I , M a y o r
2.B.1.a
Packet Pg. 15
Attachment: Draft Minutes (4568 : Approval of Minutes - 2022-02-08 - 2022-03-01)
*Consent Items
MINUTES
FREMONT CITY COUNCIL MEETING
FEBRUARY 15, 2022
VIRTUAL MEETING VIA ZOOM
7:00 P.M.
1. PRELIMINARY
A. Call to Order: Mayor Mei called the mee ting to order at 7:01 p.m.
B. Flag Salute: Councilmember Jones led the salute to the flag.
C. Roll Call: Present: Mayor Mei, Vice Mayor Salwan, Councilmembers: Keng, J ones, Kassan, Shao, and Cox
D. Announcements by Mayor/City Manager
Mayor Mei announced the Boards and Commissions vacancies.
2. CONSENT CALENDAR
* A. Waive Reading of Ordinances: None.
* B. Approval of Minutes – None.
3. CEREMONIAL ITEMS – None.
4. PUBLIC COMMUNICATIONS
A. Oral and Written Communications
The following persons spoke in opposition of the HomeKey affordable housing Project at Motel 6: David, Lei, Navin, Jane, CL, Luzhang, Dina Deshpande, James, and Fang. The following persons spoke in support of the HomeKey affordable housing Project: Jennifer Pare, Lisa Danz, Marie Hughes, Katherine, and Hayes Shair. Blair Beekman shared a variety of concerns. Sharon Scharff expressed their concerns in the Rancho Arroyo Parkway area.
5. SCHEDULED ITEMS
A. Mayor Mei opened considerati on of the Third Public Hearing on City of Fremont Redistricting Process, Start time - 7:15pm (Redistricting Process Public Hearing)
Management Analyst, Amanda Gallo provided an introduction. Kristen Parks, Consultant with the National Demographics Corporation provided a presentation. Mayor Mei opened the public hearing. The following persons commented on the presentation and/or maps: Kelly Abreu, Kathy Kimberlin, and John Hinds. There being no additional speakers, Mayor Mei closed
2.B.1.a
Packet Pg. 16
Attachment: Draft Minutes (4568 : Approval of Minutes - 2022-02-08 - 2022-03-01)
*Consent Items
the public hearing. This was followed by a question and answer period. Councilmembers provided comment.
The City Council:
1. Received and filed a report on the public input received by the City of Fremont by February 6, 2022, regarding communities of interest and district boundaries.
2. Reviewed and discussed public input received by the City of Fremont by February 6, 2022, regarding communities of interest and district boundaries.
3. Conducted a public hearing to r eceive additional public input on communities of interest and district boundaries.
4. Identified at least one but not more than three priority maps to be reviewed at the fourth Redistricting Public Hearing to be held March 1, 2022.
B. Mayor Mei opened consideration of a Public Hearing (Publish ed Notice) to Consider Adoption of a Draft Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program Prepared and Circulated for the Sabercat Trail Extension Project (PWC 8977) in Accordance with the Requirements of the California Environmental Quality Act; and Approval of the Project and Funding Actions to Enhance and Expand the Scope of Sabercat Trail Corridor (Sabercat Trail Extension Project)
Public Works Director Hans Larsen gave a presentation. Staff responded to questions from Councilmembers. Mayor Mei opened the public hearing. The following persons commented on the presentation and/or expressed concerns: Jane, William Yragui, Katherine Rubie, Flavio, Andreas Kadavanich, and Dina Deshpande. There being no additional speakers, Mayor Mei closed the public hearing. This was followed by a question and answer period.
Councilmembers provided comment.
On a motion by Vice Mayor Salwan, seconded by Councilmember Shao, the City Council approved the following actions related to the Sabercat Trail Extension Project (PWC 8977):
1. Convened the Public Hearing.
2. Found that the Initial Study and M itigated Negative Declaration has been completed in compliance with CEQA and reflect the independent judgment and analysis of the City of Fremont.
3. Adopted the Draft Mitigated N egative Declaration and Mitigation Monitoring and Reporting Program as shown in Exhibit “A” and Exhibit “B,” and find, in accordance with CEQA Guidelines Section 15074, on the basis of the whole record before it (including the Initial Study and any comments received) that:
a. with implementation of the adopted mitigation measures, ther e is no substantial evidence that the project as mitigated will have a significant effect on the environment; and
b. that the Mitigated Negative D eclaration reflects the independent judgment and analysis of the City of Fremont
4. Approved the Sabercat Trail Extension Project (PWC 8977) and the following funding actions:
a. Reallocate $100,000 from PW C 8972-136 to PWC 9082-136 for the Existing Sabercat Trail Improvement Project (PWC 9082).
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*Consent Items
b. Reallocate $50,000 from PW C 8972-136 to PWC 9083-136 for the Sabercat Trail Extension to the East Bay Greenway Trail Project (PWC 9083). c. Reallocate $50,000 from PWC 8972-136 to PWC 9084-136 for the Sabercat Trail Extension to the Mission Peak Trail Project (PWC 9084).
Ayes: Mayor Mei, Vice Mayor Salwan, Councilmembers: Keng, Jones, Kassan, Shao, and Cox
Noes: None
Absent: None
Abstain: None
6. REPORT FROM CITY ATTORNEY – None.
7. OTHER BUSINESS – None.
8. COUNCIL COMMUNICATIONS
A. Council Referrals – None.
B. Oral Reports on Meetings and Events
Councilmembers reported on their various meetings and activiti es
9. ADJOURNMENT: There being no further business, Mayor Mei adjourned the meeting at 10:00 p.m.
A t t e s t : A p p r o v e d :
_____________________________ ___________________________ S u s a n G a u t h i e r , C i t y C l e r k L I L Y M E I , M a y o r
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Attachment: Draft Minutes (4568 : Approval of Minutes - 2022-02-08 - 2022-03-01)
*Consent Items
MINUTES
FREMONT CITY COUNCIL MEETING
MARCH 1, 2022
VIRTUAL MEETING VIA ZOOM
7:00 P.M.
1. PRELIMINARY
A. Call to Order: Mayor Mei called the mee ting to order at 7:02 p.m.
B. Flag Salute: Councilmember Shao led the salute to the flag.
C. Roll Call: Present: Mayor Mei, Vice Mayor Salwan, Councilmembers: Keng, J ones, Kassan, Shao, and Cox
D. Announcements by Mayor/City Manager
Mayor Mei, on behalf of the City Council, extended our sincerest condolences to the Bobbitt family regarding the passing of Captain Fred Bobbitt. Mayor held a moment of silence in memory of Captain Bobbitt. Mayor shared information regarding the scheduled memorial services for Captain Bobbitt.
City Manager Shackelford shared information regarding items of community interest and introduced newly appointed City Attorney, Rafael Alvarado, Jr.
2. CONSENT CALENDAR
* A. Waive Reading of Ordinances: The City Attorney read the titles of ordinances to be considered.
On a motion by Councilmember Jones, seconded by Councilmember Shao, the City Council waived further readings of proposed ordinances.
Ayes: Mayor Mei, Vice Mayor Salwan, Councilmembers: Keng, Jones, Kassan, Shao, and Cox
Noes: None
Absent: None
Abstain: None
* B. Mayor Mei opened consideration of Approval of Minutes
This item was removed from the Consent Calendar by Councilmember Cox. Councilmember Cox requested corrections be made to the February 8, 2022 minutes. No minutes were approved at this time.
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*Consent Items
* C. Mayor Mei opened consideration of a Second Reading and Ado ption of an Ordinance of the City of Fremont Amending Fremont Municipal Code Title 12, Streets, Sidewalks and Public Property, Chapter 12.25 Sections 12.25.010, 12.25.040, 12.25.050 AND 12.25.120 (Special Events)
On a motion by Councilmember Jones, seconded by Councilmember Shao, the City Council adopted Ordinance No. 01-2022.
Ayes: Mayor Mei, Vice Mayor Salwan, Councilmembers: Keng, Jones, Kassan, Shao, and Cox
Noes: None
Absent: None
Abstain: None
* D. Mayor Mei opened consideration of Approval of Purchase Ord er with Tymco, Inc. for the Purchase of One Street Sweeper in an Amount Not to Exceed $345,280.95; with Peterson Trucks, Inc. for the Purchase of One Dump Truck in an Amount Not to Exceed $140,993.69 and; with The Ford Store San Leandro for the Purchase of Seven Police Vehicles in an Amount Not to Exceed $354,163.89. Exempt from CEQA Review per Guideline 15061. (Purchase of Fleet Vehicles)
On a motion by Councilmember Jones, seconded by Councilmember Shao, the City Council:
1. Authorized the City Manager or Designee to execute a purchase order with Peterson Trucks, Inc. for the purchase of one dump truck in an amount not to exceed $140,993.69.
2. Authorized the City Manager or Designee to execute a purchase order with Tymco, Inc. for the purchase of one street sweeper in an amount not to exceed $345,280.95.
3. Authorized the City Manager or Designee to execute a purchase order with The Ford Store San Leandro for the purchase of seven Ford Utility Hybrids in an amount not to exceed $354,165.89.
Ayes: Mayor Mei, Vice Mayor Salwan, Councilmembers: Keng, Jones, Kassan, Shao, an
d Cox
Noes: None
Absent: None
Abstain: None
* E. Mayor Mei opened consideration of Approval to Amend a Prof essional Services Agreement with MNS Engineers, Inc., in an amount not to exceed $300,000 for Construction Management Services related to the Warm Springs BART West Access Bridge and Plaza Project (PWC 8804), for a Total Contract Amount Not to Exceed $2,851,020
On a motion by Councilmember Jones, seconded by Councilmember Shao, the City Council:
1. Reallocated funds of $30 0,000 from PWC 9041-514 and appropriate to PWC 8804-514.
2. Authorized the City Manager or her designee to execute an Amendment to the Professional Services Agreement with MNS Engineers, Inc., in an amount not to exceed
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*Consent Items
$300,000, for Construction Management Services for the Warm Springs BART West Access Bridge and Plaza Project for a total contract amount not to exceed $2,851,020.
Ayes: Mayor Mei, Councilmembers: Keng, Jones, Kassan, Shao, and Cox
Noes: None
Absent: None
Recused: Vice Ma yor Salwan (business/property interest)
* F. Mayor Mei opened consideration to Approve a Three-Year Agr eement with California Association of Food Banks for participation in the CalFresh Outreach program and Making Finding of CEQA Exemption
On a motion by Councilmember Jones, seconded by Councilmember Shao, the City Council authorized the City Manager or her designee to enter into a Memorandum of Understanding (MOU) with the California Association of Food Banks (CAFB) for the federal fiscal years beginning October 1, 2021 and ending September 30, 2024. Also, approve this contract for review by the California Department of Social Services and the United States Department of Agriculture.
Ayes: Mayor Mei, Vice Mayor Salwan, Councilmembers: Keng, Jones, Kassan, Shao, and Cox
Noes: None
Absent: None
Abstain: None
* G. Mayor Mei opened considera tion of Approval for the Closeout of Completed Capital Projects and Partial Defunding of Selected Projects; and Approval of Fund Transfers and Appropriations (Capital Project Closeouts)
On a motion by Councilmember Jones, seconded by Councilmember Shao, the City Council:
1. Approved the closeout of the capital projects identified on Exhibit A - Project Closeout List and return the remaining project appropriations to available fund balance in their respective funds.
2. Approved the defunding of the capital projects identified on Exhibit B - Project Defund List and return the remaining project appropriations to available fund balance in their respective funds.
3. Approved appropriation actions identified on Exhibit C - Pro ject Appropriations List.
Ayes: Mayor Mei, Vice Mayor Salwan, Councilmembers: Keng, Jones, Kassan, Shao, and Cox
Noes: None
Absent: None
Abstain: None
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Attachment: Draft Minutes (4568 : Approval of Minutes - 2022-02-08 - 2022-03-01)
*Consent Items
3. CEREMONIAL ITEMS
A. Resolution: 125th Anniversar y of the Country Club of Washington Township Women’s Club
B. Proclamation: Women’s History Month - Celebrate our Elected Women to Fremont City Council Past and Present
4. PUBLIC COMMUNICATIONS
A. Oral and Written Communications
Email submitted to the City Clerk were compiled, distributed to the City Council and staff, and published in the City's Agenda Center on fremont.gov, and were placed on file.
The following persons spoke in opposition of the HomeKey affordable housing project at Motel 6: Jane, Fang, Lei Fan, and Lucy. John Hinds commented on Homekey and Safe Parking initiatives. The following persons spoke in support of the HomeKey affordable housing project: Marie Hughes, Lisa Danz, and Katherine.
5. SCHEDULED ITEMS
A. Mayor Mei opened considerati on of the City of Fremont Redistricting Process Public Hearing and Introduction of an Ordinance Amending Sections 2.05.130 and 2.10.110 of Fremont Municipal Code regarding the Redrawing of Election District Boundaries and making Conforming Changes Due to having a Seven Member City Council (Fourth Public Hearing on City of Fremont Redistricting Process, Start time - 7:15pm)
Management Analyst Amanda Gallo provided an introduction. Kristen Parks, Consultant with the National Demographics Corporation provided a presentation. Ms. Parks responded to questions from Councilmembers. Mayor Mei opened the public hearing. There being no speakers, Mayor Mei closed the public hearing. This was followed by another question and answer period. Councilmembers provided comment.
On a motion by Councilmember Jones, seconded by Vice Mayor Salwan, the City Council:
1. Conducted a public hearing to r eceive additional public input on communities of interest and district boundaries.
2. Identified and selected a Counc il District Maps for additional modification and review.
3. Introduced an ordinance amendi ng the Fremont Municipal Code, sections 2.05.130 and 2.10.110.
4. Directed the City Clerk to pos t and publish a summary of the ordinance in accordance with Government Code Section 36933(c)(1).
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*Consent Items
Ayes: Mayor Mei, Vice Mayor Salwan, Councilmembers: Keng, Jones, Kassan, Shao, and Cox
Noes: None
Absent: None
Abstain: None
B. Mayor Mei opened consideration of a Public Hearing (Publish ed Notice) to Consider Adoption of a Resolution to Apply an Annual Inflationary Adjustment to the City’s Development Impact Fees, Including the Parkland Fee, Park Facilities Fee, Traffic Impact Fee, Capital Facilities Fee, and Fire Facilities Fee, Increasing the Fees in an Amount of 6.62%, Based on the Bay Area Construction Cost Index, Effective July 1, 2022. (Proposed Development Impact Fee Annual Inflationary Increase)
This item was added to the Consent Calendar and approved. It was later noted in the meeting that the public hearing needed to be opened for public speakers. Mayor Mei opened the public hearing. There being no public speakers, Mayor Mei closed the public hearing.
On a motion by Councilmember Jones, seconded by Councilmember Shao, the City Council:
1. Held a public hearing to hear publ ic comments regarding the proposed impact fee adjustment.
2. Adopted Resolution No. 06-2022 a pproving a 6.62% increase to development impact fees for the Parkland Fee, Park Facilities Fee, Traffic Impact Fee, Capital Facilities Fee, and Fire Facilities Fee programs to reflect construction cost changes in 2021, effective July 1, 2022 and amending the Master Fee Schedule to include the increased fees.
Ayes: Mayor Mei, Vice Mayor Salwan, Councilmembers: Keng, Jones, Kassan, Shao, and Cox
Noes: None
Absent: None
Abstain: None
6. REPORT FROM CITY ATTORNEY – None.
7. OTHER BUSINESS – None.
8. COUNCIL COMMUNICATIONS
A. Council Referrals – None.
B. Oral Reports on Meetings and Events
Councilmember Shao reported on Alameda County Housing Authority meeting he attended regarding voucher programs and Newark Homekey projects.
Before adjournment, Mayor Mei held a moment of silence in support of those under attack in Ukraine. Mayor expressed condolences again to the Bobbitt Family.
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*Consent Items
9. ADJOURNMENT: There being no further business, Mayor Mei adjourned the meeting at 9:35 p.m.
A t t e s t : A p p r o v e d :
_____________________________ ___________________________ S u s a n G a u t h i e r , C i t y C l e r k L I L Y M E I , M a y o r
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Attachment: Draft Minutes (4568 : Approval of Minutes - 2022-02-08 - 2022-03-01) Fremont City Council Meeting: 03/08/22 07:00 PM
3300 Capitol Avenue Div/Dept: City Attorney's Office
Fremont, CA 94538 Category: Plans, Policies and Studies
SCHEDULED
Sponsors:
STAFF REPORT (ID # 4519) DOC ID: 4519
Updated: 2/23/2022 11:48 AM by Susan Gauthier Page 1
AB 361 - Consider Making Findings to Allow the City Council and the Legislative Bodies of the City of Fremont to Continue Holding Meetings via Videoconference pursuant to AB 361
Contact Persons:
Name: Rafael Alvarado Christina Briggs
Title: City Attorney Assistant City Manager
Div/Dept: City Attorney's Office City Manager's Office
Phone: 510-284-4030 510-284-4022
E-Mail: [email protected] [email protected]
Executive Summary: In order for the City Council and the City’s legislative bodies to continue holding meetings by teleconferencing pursuant to Government Code Section 54953(e) (AB 361), the City Council needs to reconsider the circumstances of the state of emergency created by the COVID-19 pandemic every 30 days and find that the state of emergency continues to directly impact the ability of the members to meet safely in person.
BACKGROUND: On September 16, 2021, Governor Newsom signed AB 361 amending the Brown Act to allow local agencies to meet remotely during declared emergencies under certain conditions. AB 361 builds upon Executive Order N-29-20, issued by the Governor on March 17, 2020, which relaxed the teleconferencing requirements of the Brown Act to facilitate virtual meetings during the COVID-19 declared emergency.
AB 361 authorizes local agencies to continue meeting remotely without following the Brown Act’s standard teleconferencing provisions, including the requirement that meetings be conducted in physical locations, if the meeting is held during a state of emergency proclaimed by the Governor and either of the following applies: (1) state or local officials have imposed or recommended measures to promote social distancing; or (2) the agency has already determined or is determining whether, as a result of the emergency, meeting in person would present imminent risks to the health or safety of attendees.
To continue meeting remotely pursuant to AB 361, an agency must make periodic findings that: (1) the body has reconsidered the circumstances of the declared emergency; and (2) the emergency impacts the ability of the body’s members to meet safely in person, or state or local officials continue to impose or recommend measures to promote social distancing.
These findings should be made not later than 30 days after teleconferencing for the first time pursuant to AB 361, and every 30 days thereafter.
DISCUSSION/ANALYSIS: The City Council and the City’s other legislative bodies have met using teleconferencing throughout the COVID-19 pandemic to protect the health and safety of the public and staff. The factual circumstances exist for the City to continue to hold meetings pursuant to AB 361. Specifically, the Governor’s declared State of Emergency in response to the COVID-19 pandemic (the “Emergency”) is still in place. In addition, the City of Fremont COVID-19 Employee Resource Guide requires physical distancing for City employees, customers and visitors, to the extent possible. And finally, the Centers for Disease Control and Prevention continue to advise that COVID-19 spreads more easily
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Staff Report (ID # 4519) Meeting of March 8, 2022
Updated: 2/23/2022 11:48 AM by Susan Gauthier Page 2
indoors than outdoors and that people are more likely to be exposed to COVID-19 when they are closer than 6 feet apart from others for longer periods of time. Therefore, due to the ongoing COVID 19 pandemic, the need to promote social distancing to reduce the likelihood of exposure to COVID-19, and the imminent risks to the health or safety of meeting attendees, the Emergency impacts the ability of the City Council and the legislative bodies of the City to meet safely in person.
FISCAL IMPACT: None.
ENVIRONMENTAL REVIEW: N/A
ATTACHMENTS: None.
RECOMMENDATION: Staff recommends that the City Council make the following findings in order to continue holding videoconference meetings for the City Council and the City’s legislative bodies:
1. The City Council has reconsidered the circumstances of the COVID-19 state of emergency;
2. The state of emergency continues to directly impact the ability of the members to meet safely in person; and
3. Staff is directed to schedule reconsideration of these findings at the regularly scheduled City Council meeting on April 5, 2022.
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Fremont City Council Meeting: 03/08/22 07:00 PM
3300 Capitol Avenue Div/Dept: Finance Department
Fremont, CA 94538 Category: Budget
SCHEDULED
Sponsors:
STAFF REPORT (ID # 4534) DOC ID: 4534
Updated: 3/4/2022 9:48 AM by Alberto Quintanilla Page 1 FISCAL YEAR 2021/22 MID-YEAR BUDGET REPORT - Update on the Status of the FY 2021/22 General Fund Operating Budget and Preliminary Three-Year Forecast; Approve Budget Adjustments
Contact Persons:
Name: David Persselin
Title: Finance Director
Div/Dept: Finance Department
Phone: 510-494-4631
E-Mail: [email protected]
EXECUTIVE SUMMARY: The Mid-Year Budget Report is an opportunity for staff to update the City Council on current-year budget performance based on actual operating results through December 31, 2021. Staff will present a brief review of economic trends, discuss revised General Fund revenue and expenditure projections for the current year, provide a preliminary General Fund forecast for the next three years, and present recommendations for mid-year budget adjustments.
BACKGROUND: The Fiscal Year 2021/22 operating budget was adopted by the City Council on June 15, 2021. The adopted budget was developed on the assumption of a gradual recovery from the public health emergency that would continue to depress certain sectors of the local economy and the City’s general revenues. As a result, the adopted uses of funds exceeded the estimated ongoing revenues in the General Fund by over $19 million.
However, the federal government provided the City with the opportunity to restore services that were reduced due to pandemic-related revenue losses through the American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Fund. The City was allocated $22.1 million of fiscal recovery funds in FY 2020/21 and will receive a second allocation of the same amount in mid-2022. $20 million of fiscal recovery funds were used to balance the current year adopted budget with the remaining $2.1 million used to stabilize the Recreation Fund.
As part of the FY 2020/21 Year End Report presented to the City Council on November 2, 2021, staff noted that a fourth-quarter surge in sales tax revenue and unanticipated expenditure savings resulted in $5.8 million of available ending fund balance. To address the continuing revenue uncertainty, the City Council restored the Budget Uncertainty Reserve to its pre-pandemic level and then increased it to a total of $10 million.
DISCUSSION AND ANALYSIS:
Economic Trends: The national economy has continued to recover well from the pandemic-related recession, with fourth quarter growth of 7% and the unemployment rate at 4%, close to its level in February 2020. However, consumer confidence, while having improved over the last six months, is now beginning to reflect concerns over increasing inflation, and the recent Russian military action in Ukraine and associated economic sanctions may further discourage both consumers and businesses. While the City’s
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Staff Report (ID # 4534) Meeting of March 8, 2022
Updated: 3/4/2022 9:48 AM by Alberto Quintanilla Page 2 preliminary revenue forecast assumes continued increases over the next few years, it is important to recognize the significant economic uncertainties facing our community.
FY 2021/22 General Fund Revenue and Expenditure Estimates: The General Fund’s largest source of revenue, property tax, is performing slightly above the budget estimate, with expected growth of 4.2% over the prior year. Sales taxes, however, constituting the General Fund’s second largest source of revenue, are projected to increase by 29.1%, a $21.8 million increase above the adopted budget revenue estimate. The significant growth in sales tax revenue is largely attributable to what may be a temporary spike in new auto sales. Business tax revenue is projected to exceed the budgeted estimate by $1.8 million, although some of that may reflect payment of prior year delinquent taxes. The historically high level of real estate transactions is projected to generate $2 million more revenue than originally estimated, and fine revenue is also outperforming its estimate by $2 million.
Although hotel tax revenue continues to fall well below its pre-pandemic level, it is projected to exceed the budgeted estimate by $1 million.
Overall, General Fund revenues and transfers in are estimated to grow 3.2% in FY 2021/22 from the FY 2020/21 level, resulting in $31 million more of estimated resources than included in the adopted budget. Excluding the $20 million of fiscal recovery funds received in FY 2020/21, revenues and transfers in are projected to grow by 12.7%. This report includes a recommended adjustment to bring the budgeted revenue estimate for sales tax in line with the current projection.
General Fund expenditures and transfers out for FY 2021/22 are projected to end the year $6.9 million above the adjusted budget, primarily due to higher than anticipated citywide vacancy savings. In total, General Fund expenditures and transfers out are anticipated to increase 5.5% from the FY 2020/21 total use of funds.
The adjusted budget assumed that the General Fund would end the year with $0.9 million of unreserved fund balance. The $31 million increase in estimated General Fund resources, combined with $6.9 million of additional expenditure savings, results in an estimated ending fund balance for FY 2021/22 of $38.8 million.
Staff will return to the City Council on May 17, 2022, with updated estimates for FY 2021/22 incorporated into the FY 2022/23 Proposed Operating Budget.
The following table presents a comparison of FY 2020/21 actual results with the FY 2021/22 adjusted budget and staff’s FY 2021/22 mid-year estimate.
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Staff Report (ID # 4534) Meeting of March 8, 2022
Updated: 3/4/2022 9:48 AM by Alberto Quintanilla Page 3
Preliminary General Fund Forecast: Revenue projections for the next three fiscal years are based on the most current information available and take into account historical trends, current-year performance through mid-year, projected development activity, and scheduled changes in various fees and rates. The FY 2022/23 revenue projection includes the second installment of fiscal recovery funds totaling $22.2 million.
The FY 2022/23 and subsequent year expenditure projections are net of estimated citywide savings of $6 million and include adjustments to reflect CalPERS pension contribution increases, higher retiree healthcare contributions, scheduled debt service payments, and contractual obligations. In accordance with the City Council’s Pension Liability Funding Policy, an additional pension contribution has been included in each year as well.
As this forecast is preliminary, the expenditures shown represent a “base budget” that delivers the existing level of services with no assumed compensation or staffing increases.
These expenditure levels may increase as the FY 2022/23 Proposed Operating Budget is developed with the benefit of additional information, including any recommendations for service level enhancements.
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Staff Report (ID # 4534) Meeting of March 8, 2022
Updated: 3/4/2022 9:48 AM by Alberto Quintanilla Page 4
Revenue and Expenditure Adjustments: As discussed above, the current sales tax projection, based on two quarters of actual receipts, is exceeding the budgeted estimate by $21.8 million. All other revenue categories combined are projected to exceed the estimate by $9.2 million. As noted in the discussion of economic trends, the combination of increasing inflation and international instability are creating significant economic uncertainty. To accommodate the potential for a revenue slowdown during the remaining portion of the fiscal year, prudence suggests that only a portion of the projected excess be recognized at this time. For simplicity, staff recommends that the City Council increase the revenue estimate for sales tax by $21.8 million while leaving the estimates for the other revenues at their adopted levels.
At the City Council Retreat, held on February 25, 2022, staff reviewed a list of critical maintenance and capital replacement needs as well as unfunded future capital investments.
These include major City initiatives such as the parks master plan and the climate action plan, but also traffic signal modernization, replacement of deteriorating facilities in Central Park, and technology upgrades. Although the cost of these unfunded needs far exceeds the resources available, the unanticipated increase in current year revenue creates an opportunity to make progress on the highest priority projects. To create the capacity to fund some of these projects in the next capital improvement plan, staff recommends that the City Council appropriate the $21.8 million of additional revenue as a transfer to the Capital Improvements Fund.
FISCAL IMPACT: The recommended budget adjustments will better align the sales tax revenue estimate with the current projection and create funding capacity for the next capital
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Staff Report (ID # 4534) Meeting of March 8, 2022
Updated: 3/4/2022 9:48 AM by Alberto Quintanilla Page 5 improvement plan. Staff will return to the City Council on May 17, 2022 with the FY 2022/23 Proposed Operating Budget and a revised General Fund forecast.
ENVIRONMENTAL REVIEW: Not required.
ATTACHMENTS: None.
RECOMMENDATIONS:
1. Increase the General Fund revenue estimate for sales tax by $21.8 million.
2. Approve the transfer of $21.8 million to the Capital Improvements Fund (Fund 501).
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