73_01122023%20agenda%20packet%20page%20numbers — Newark City Council, January 12, 2023

AGENDA
Thursday, January 12, 2023
7:00 P.M.

HYBRID IN-PERSON/VIRTUAL MEETING

REFER TO THE END OF THE AGENDA TO REVIEW

OPTIONS FOR PARTICIPATING IN THE MEETING
REMOTELY OR IN-PERSON.

IF YOU ATTEND THE MEETING IN PERSON A FACE COVERING
IS RECOMMENDED BUT NOT REQUIRED.

A. ROLL CALL
B. PRESENTATIONS

1. Introduction of employees

2. Presentation from the Alameda County Mosquito Abatement District C. PUBLIC COMMENT
The public is invited to address the City Council on any item not listed on the agenda. Public Comments are generally limited to 5 minutes per speaker. Please note that State law prohibits the Council from acting on non-agenda items.

D. CONSENT CALENDAR
Consent Calendar items are considered to be routine and may be approved by one motion.

There will be no separate discussion on these items unless there is a request by a Council Member, a staff member, or a member of the public to remove an item for separate discussion and action.

1. Approval of Audited Demands

2. Approval of December 8 and December 15, 2022 meeting minutes

3. Adopt a Resolution Finding That There is a Proclaimed State of Emergency; Finding That

3. Adopt a Resolution Finding That There is a Proclaimed State of Emergency; Finding That Meeting in Person Would Present Imminent Risks to the Health or Safety of Attendees as a Result of the State of Emergency; and Authorizing Continued Remote Teleconferenced Meetings of the Legislative Bodies of the City of Newark for the 30 Day Period Beginning January 12 Pursuant to AB 361

4. Adopt a resolution approving the first amendment to the Contractual Services Agreement with Orion Security

5. Resolution approving and authorizing the City Manager to execute the First Amendment to the Contractual Services Agreement with 4Leaf Inc. to provide temporary professional code enforcement services
E. PUBLIC HEARINGS
F. OTHER BUSINESS

1. Economic Development Update Informational Report
G. CITY COUNCIL MATTERS
City Council Members report on attendance at intergovernmental agency meetings, conferences, and seminars since the last meeting. City Council Members may also announce upcoming events and coordinate attendance; report on local events attended since the last meeting; and make brief comments on issues of concern.

H. CLOSED SESSION
I. ADJOURNMENT

HYBRID IN-PERSON/VIRTUAL MEETING NOTICE
This meeting is being conducted utilizing teleconferencing and electronic means consistent with Assembly Bill 361 (2021). Members of the public may attend the meeting in person, virtually via Zoom, or watch it via YouTube. If you attend the meeting in person, a face covering is recommended but not required.

Mayor Hannon, Vice Mayor Collazo, and Council Members Jorgens, Bucci, and Freitas may be attending this meeting via teleconference. Teleconference locations are not open to the public. In the event that any members of the City Council elect to attend this meeting via teleconference, all votes conducted during the teleconferencing session will be conducted by roll call vote.

How to view the meeting remotely:

Livestream online at YouTube: https://www.youtube.com/channel/UC383NGSxaPwZP1lkJbo2T8A Copy/paste the YouTube URL into your browser if the link does not automatically open.

How to participate in the meeting remotely, via Zoom Webinar:

From a PC, Mac, iPad, iPhone or Android device: Zoom Meeting https://us06web.zoom.us/j/81865674129 Packet Page 2
From a telephone dial 1- 669-900-9128, Webinar ID 818 6567 4129 Provide live, remote public comments, when the Mayor calls for comments. Use the raise your hand feature in Zoom to be called upon by the City Clerk.

For frequently asked Zoom questions, please go to Agendas and Minutes and select the Frequently Asked Questions link.

No question shall be asked of a council member, city staff, or an audience member except through the Mayor. No person shall use vulgar, profane, loud or boisterous language that interrupts a meeting. Any person who refuses to carry out instructions given by the Mayor for the purpose of maintaining order may be guilty of an infraction and may result in removal from the meeting.

Council Meeting Access/Materials:

The agenda packet is available for review at Agendas and Minutes. The packet is typically posted to the City website the Friday before the meeting, but no later than 72 hours before the meeting.

Pursuant to Government Code 54957.5, supplemental materials distributed less than 72 hours before this meeting, to a majority of the City Council, will be made available for public inspection at this meeting and will be posted, if time allows, at Agendas and Minutes. Materials prepared by City staff and distributed during the meeting are available for public inspection at the meeting or after the meeting if prepared by some other person. Documents related to closed session items or are exempt from disclosure will not be made available for public inspection. For those persons who require special accommodations, please contact the City Clerk at least two days prior to the meeting at City Clerk or 510-578-4266.

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Item B. 1.

DATE 01/12/2023
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT Introduction of employees
The following employees will be introduced at the City Council meeting:

Diana Cangco, Principal Civil Engineer
Narayan Krishnan, Information Technology Analyst
Peter Fong, Information Technology Analyst
Sheena Raj, Information Technology Analyst
Kurt Mena, Information Technology Technician II
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Item B. 2.

DATE 01/12/2023
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT Presentation from the Alameda County Mosquito Abatement District It is the overall goal of the Alameda County Mosquito Abatement District (District) to provide for the public's health and comfort by carrying on a program of mosquito control and source reduction. District Manager Ryan Clausnitzer and Board Trustee Eric Hentschke will provide an update on the District's activities.

Attachments
Presentation
Packet Page 5
Alameda County Mosquito Abatement District
City of Newark 2023 update

1.12.2023
Ryan Clausnitzer, MPA, REHS
General Manager
www.mosquitoes.org
Packet Page 6
Overview
• Formation & authority of Alameda County MAD
• Organization & funding
• Mosquitoes of Alameda County and where they grow
• Integrated vector management
o Requests for service from the public
o Community engagement & research
o Monitoring and reporting mosquito abundance
o Current mosquito control practices
o Upcoming technologies
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Tax-funded mosquito control in SF Bay Area because of…
Aedes dorsalis
Aedes squamiger
Packet Page 8
120 years ago
Civic, scientific, and business leaders organized mosquito districts Women in the San Rafael
Improvement Club were foundational
in organizing their mosquito control
district during 1902
Eliza A. Neale, the first President, served for 12 years Packet Page 9
107 years ago:
1915 Mosquito Abatement Act of California
Governor Hiram Johnson
Packet Page 10
1915 Mosquito Abatement Act of California
Authorized government agencies to “Take any and all necessary or proper actions to prevent the occurrence of vectors and vectorborne diseases.” o Gave power to tax, form boards, and abate (impose fines for mosquito control)
California Health and Safety Code
We have never charged or fined
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Independent Special District of Alameda County
MAD was formed 92 years ago
Farm tractors
repurposed by civil
engineers to modify
marsh habitat and limit
mosquito growth
Packet Page 12
ACMAD Board of Trustees
14 appointed by their City Council + 1 County-at-Large Trustee Dr. Robert Beatty
Berkeley Tyler Savage
Alameda
Preston Jordan
Albany
Shawn Kumagai
Dublin George Young
Fremont
Courtney Welch
Emeryville
Subru Bhat, President
Union City
Victor Aguilar, Vice-President
Newark Cathy Roache, Secretary
County-at-Large
Elisa Márquez
Hayward
Steven Cox
Livermore
Dr. Jan O. Washburn
Oakland
Eric Hentschke
Newark
Julie Testa
Pleasanton
Hope Salzer
Piedmont
Packet Page 13
Packet Page 14
Funding mosquito
control
$4.9
million
ad valorum
property tax
special tax & benefit
assessment
OPEB
interest earned

0.0009% of assessed
property value
Packet Page 15
18 full-time employees
with 2-5 seasonal
employees and/or
interns
Packet Page 16
Obligate aquatic
phase of mosquito
life cycle
From Marin-Sonoma Mosquito and
Vector Control District Nikon’s Small World: 2019
University of Florida
Packet Page 17
only female mosquitoes bite
males have feathery antenna female antenna are thinner
adapted from www.theverge.com/
Packet Page 18
Mosquito producing habitats in Alameda County
Salt marsh
Storm water canals
Tule marsh
Creeks and
seepages Ornamental ponds
Unmaintained swimming pools
Native mosquitoes
Packet Page 19
Mosquito producing habitats of concern
Utility vaults Tires
Plant saucers Bromeliad plants
Invasive mosquitoes
Grow in very
small amount of
water
Packet Page 20
Arboviruses spread by mosquitoes in CA
invasive Aedes
native to CA
Dengue, Zika, Yellow
fever, Chikungunya

WNV, SLEV
Packet Page 21
• Data and institutional
knowledge used to enact
effective & sustainable
mosquito control
• Proactive and responsive
actions
Integrated mosquito
management
Proactive ongoing efforts Responsive incidentdependent efforts Community
Engagement
Assessing
Integrated Mosquito
Management
Knowledge-driven approach to reduce
mosquito abundance
Packet Page 22
Maintain water circulation channels in
marsh habitats
Packet Page 23
Mosquito fish: Gambusia affinis
• We deliver them for free
• Love to eat mosquito larvae!
• Relatively small
• 1.5 – 3 inches
• Live in shallow fresh water
• Can live in low oxygen water
• Small ornamental ponds
Packet Page 24
Controlling mosquito larvae
Insect-specific toxin from
bacteria
Insect growth
hormone
Surfactant
Bacillus thuringiensis israelensis (Bti) Methoprene
BVA-2
Packet Page 25
Larvicide application methods
Packet Page 26
Larvicide applications by drone
Packet Page 27
Where larvicide is applied in Alameda County
Most larvicide
applications occur in
marsh habitats that abut
the SF Bay
2021
Packet Page 28
Ultralow volume pyrethroid
insecticide
4 grams / square mile
Our very last resort for controlling infected adult mosquitoes Credit: Justin Sullivan / Getty with Contra Costa MVCD
Packet Page 29
Requests for
service
830
Service Requests during
2021
In-person response within a day
Packet Page 30
Assessing mosquito abundance &
arbovirus prevalence
Adult mosquito
abundance monitoring
Power BI dashboard for 15 days (auto-updated)
Packet Page 31
Testing trapped mosquitoes for
arboviruses in our lab using
quantitative RT-PCR
Packet Page 32
Multi-agency dashboard to view high resolution data
Packet Page 33
Community engagement with the public
• Leverages a “show me” & discovery mindset
• Motivates an involved public
Cal State East Bay Students
Oakland Garden Preschool
Packet Page 34
Alameda Watershed Symposium
Community engagement with the public
Packet Page 35
Community engagement with
partner agencies & facilities
• Coordinate with land and
facility managers
− MOU with US FWS and EBRPD
• Engage public agencies
− Cooperative agreement with CDPH
• Public & private lands
− Mosquito Abatement and Vector
Control Districts Principle Enabling
Act (Health and Safety Code §2000
et seq.)
Packet Page 36
Engaging with universities & research
institutes
Packet Page 37
Packet Page 38
non-biting males are
released to mate with
invasive female mosquitoes
no new female
mosquitoes are produced
3 sterile insect techniques (SIT) to reduce abundance
of biting & disease-spreading female mosquitoes
sterile insects for Aedes control
Packet Page 39
sterile insects for Aedes control
irradiated
bacteria-infected
genetically engineered
Invasive Aedes mosquitoes are not yet in Alameda County Packet Page 40
1 Irradiate male mosquitoes
X-Rays sterilize male mosquitoes
25,000 sterilized at a time
Use for any species (unpatented method)
One-time equipment purchase
https://www.radsource.com/sterile-insect-technique/
Grow 100,000s of mosquitoes
Must separate male from females
Reduced mosquito health
Packet Page 41
2 Wolbachia bacteria infection
Male mosquitoes naturally spread bacteria
Multi-generation impact
Reduced mosquito reproduction and virus growth
EPA-registered non-GMO option
Must separate male from females
Identify / replace correct Wolbachia strain
Commercial provider = recurring cost
Packet Page 42
https://mosquitomate.com/pricing
3 Genetically modified
Female mosquitoes eliminated as immatures
EPA approved & monitored trial in Florida
Eggs-in-a-box simplifies adult release
Public hesitancy to GMO
Recurring cost
Packet Page 43
Thank you.

Ryan Clausnitzer, MPA, REHS
General Manager
[email protected]
23187 Connecticut Street
Hayward, CA 94545
www.mosquitoes.org
510.783.7744
Packet Page 44
Item D. 1.

DATE 01/12/2023
TO Honorable Mayor and City Council Members
FROM Krysten Lee, Finance Director
SUBJECT Approval of Audited Demands
Attachments
Audited Demands
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Item D. 2.

DATE 01/12/2023
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT Approval of December 8 and December 15, 2022 meeting minutes Attachments
Minutes regular meeting
Minutes special meeting
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City of Newark | Newark City Council
Mayor Michael K. Hannon | Vice Mayor Maria “Sucy” Collazo | Council Members: Luis L. Freitas, Mike Bucci, and Matthew Jorgens Minutes
Thursday, December 8, 2022
7:00 P.M.

A. ROLL CALL
Mayor Nagy called the meeting to order at 7:00 p.m. Vice Mayor Hannon, Council Members Collazo, Freitas, and Bucci were noted present. Council Member Elect Jorgens was in the audience.

The Newark Police Department Honor Guard presented the colors.

The Pledge of Allegiance was led by Vice Mayor Hannon’s grandchildren Owen and Eve.

B. PRESENTATIONS

1. Resolution declaring the results of the General Municipal Election of November 8, 2022 Resolution No. 11443
City Manager Benoun introduced the dignitaries in the audience. He gave the staff report recommending approval.

Mayor Nagy moved, Council Member Collazo seconded to adopt the resolution declaring the results of the General Municipal Election of November 8, 2022. The motion passed, 5 AYES.

Mayor Nagy thanked the voters for electing him 13 times, his wife Connie for her support, and City staff. He shared special memories of each Council Member, then stepped down from the dais and joined the audience.

City Manager Benoun presented a City flag to Mayor Nagy in honor of his service.

City Clerk Harrington administered the Oath of Office to Mayor Hannon, Council Member Bucci, and Council Member Jorgens.

Mayor Hannon, Council Bucci, and Council Member Jorgens each expressed their thanks to the previous Mayors, their families, friends and colleagues and their collective excitement to serve the City of Newark.

Packet Page 65
Page No. 2
City of Newark City Council Minutes December 8, 2022
C. PUBLIC COMMENT
Patrick Hannon congratulated his brother on being elected Mayor.

Rich Dominguez shared a story about witnessing Mayor Nagy cleaning graffiti the Saturday after being elected Mayor the first time.

Simone Chen congratulated Mayor Hannon and Council Members Bucci and Jorgens on their election. She announced that Congressperson Ro Khanna would hold a town hall meeting at Newark Memorial High School Theatre on December 18, Mayor Nagy would be honored at the meeting.

Kimberly Hartz, CEO of Washington Hospital thanked Mayor Nagy for his service to the community.

D. CONSENT CALENDAR
Council Member Collazo moved, Council Member Freitas seconded, to approve Consent Calendar Items D.1 through D.7, that the resolutions be numbered consecutively, and that reading of the titles suffice for adoption. The motion passed, 5 AYES.

1. Approval of Audited Demands

2. Approval of November 10, 2022, special and regular meeting minutes

3. Motion approving the 2023 Local Appointments List and distribution

4. Adopt a resolution accepting Annual Impact Fee Report for Fiscal Year 2021- 2022
Resolution No. 11444

5. Adopt resolutions establishing the City Council meeting calendar for 2023 and authorizing the City Manager to take administrative actions during the August Recess
Resolution No. 11445 Meeting Calendar
Resolution No. 11446 August Recess
Packet Page 66
Page No. 3
City of Newark City Council Minutes December 8, 2022

6. Adopt a Resolution Finding That There is a Proclaimed State of Emergency; Finding That Meeting in Person Would Present Imminent Risks to the Health or Safety of Attendees as a Result of the State of Emergency; and Authorizing Continued Remote Teleconferenced Meetings of the Legislative Bodies of the City of Newark for the 30 Day Period Beginning December 8 Pursuant to AB 361 Resolution No. 11447

7. Adopt a Resolution confirming the continued existence of a local emergency due to the COVID-19 Pandemic
Resolution No. 11448
B. PUBLIC HEARINGS
C. OTHER BUSINESS
D. CITY COUNCIL MATTERS

1. Approval of Motion appointing Vice Mayor and Resolution authorizing the Vice Mayor to execute financial documents
Resolution No. 11449
Mayor Hannon nominated Council Member Collazo to serve as Vice Mayor.

No one requested to speak.

Council Member Bucci moved, Council Member Jorgens seconded to adopt a motion naming Council Member Collazo Vice Mayor and adoption of a resolution authorizing the Vice Mayor to execute financial documents. The motion passed 5 AYES.

Packet Page 67
Page No. 4
City of Newark City Council Minutes December 8, 2022

2. Adopt a resolution confirming the Mayor's appointments to various agencies, boards, commissions, and committees
Resolution No. 11450
Mayor Hannon announced his appointments.

Alameda County Fire Advisory
Commission
Council Members Bucci and Collazo
– delegate and alternate
Alameda County Library Advisory
Commission
Council Members Collazo and
Jorgens– delegate and alternate
Alameda-Contra Costa Transit
District Policy Advisory Committee
Mayor Hannon and Council Member
Bucci – delegates
Alameda County Transportation
Commission
Council Members Freitas and Collazo
– delegate and alternate
Alameda County Waste Management
Authority Board/Stopwaste.org
Mayor Hannon and Council Member
Freitas – delegate and alternate
Association of Bay Area
Governments (ABAG)
Council Member Bucci and Mayor
Hannon– delegate and alternate
Community Development Advisory
Committee
Mayor Hannon and Council Member
Freitas – delegates
Dumbarton Rail Policy Advisory
Committee
Council Members Bucci and Jorgens
– delegate and alternate
East Bay Community Energy Board
of Directors
Council Member Jorgens and Mayor
Hannon – delegate and alternate
Newark City Council – Board of
Education Liaison Committee
Council Members Jorgens and
Collazo – delegates
Tri-City Elder Coalition Mayor Hannon - delegate
Senior Citizen Standing Advisory
Committee
Mayor Hannon delegate and
chairperson
Southern Alameda County
Geographic Information System
Authority
Mayor Hannon – delegate, Council
Member Bucci - alternate
Tri-City Waste Facility Financing Mayor Hannon and Council Member Jorgens – Authority delegates
No one requested to speak.

Vice Mayor Collazo moved, Council Member Bucci seconded to adopt a resolution confirming the Mayor’s appointments to various agencies, boards, commissions, and committees. The motion passed, 5 AYES
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Page No. 5
City of Newark City Council Minutes December 8, 2022
Council Member Jorgens stated that he was looking forward to working with the City Council and City staff.

Council Member Freitas stated that it was an honor to work with Mayor Nagy and he would miss him. He congratulated Mayor Hannon and Council Members Bucci and Jorgens on their election.

Council Member Bucci stated that his heart was full with love and gratitude for the community.

Council Member Collazo congratulated all who are newly elected. She thanked Mayor Nagy for his love and commitment to the City. She thanked him for his support and mentorship. Shop Newark.

E. CLOSED SESSION
F. ADJOURNMENT
Mayor Hannon adjourned the meeting at 8:28 p.m.

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City of Newark | Newark City Council
Mayor Michael K. Hannon | Vice Mayor Maria “Sucy” Collazo | Council Members: Luis L. Freitas, Mike Bucci, and Matthew Jorgens

Minutes
Special Meeting
Thursday, December 15, 2022
6:00 P.M.

A. ROLL CALL
Mayor Hannon called the meeting to order at 6:06 p.m. Vice Mayor Collazo, and Council Members Freitas, Bucci (arrived at 6:23 p.m.), and Jorgens were noted present.

B. PRESENTATIONS
C. PUBLIC COMMENT
No one requested to speak.

D. CONSENT CALENDAR
Vice Mayor Collazo moved, Council Member Jorgens seconded, to approve Consent Calendar Items D.1 through D.5, that the resolutions be numbered consecutively, and that reading of the titles suffice for adoption. The motion passed, 4 AYES, 1 ABSENT.

1. Adopt a Resolution Finding That There is a Proclaimed State of Emergency; Finding That Meeting in Person Would Present Imminent Risks to the Health or Safety of Attendees as a Result of the State of Emergency; and Authorizing Continued Remote Teleconferenced Meetings of the Legislative Bodies of the City of Newark for the 30 Day Period Beginning December 15 Pursuant to AB 361 Resolution No. 11451

2. Adopt a resolution accepting the subdivision improvements for Tracts 8419 and 8420, Villages 3 and 4 of Sanctuary Village, a 386-unit residential subdivision in General Plan Area 3 at the northwest corner of Cherry Street and Stevenson Boulevard Resolution No. 11452
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Page No. 2
City of Newark City Council Minutes December 15, 2022

3. Adopt a resolution accepting the subdivision improvements for Tracts 8270, 8417, and 8418, the initial large-lot subdivision and Villages 1 and 2 of Sanctuary Village, a 386-unit residential subdivision in General Plan Area 3 at the northwest corner of Cherry Street and Stevenson Boulevard
Resolution No. 11453

4. Adopt a resolution approving a Side Letter Agreement to the Memorandum of Understanding between the City of Newark and the Newark Police Association to amend the process and provisions related to leave accrual and the buy back program Resolution No. 11454

5. Adopt a resolution approving a side letter agreement to the Memorandum of Understanding between the City of Newark and the Newark Police Management Association to provide for compensation to Police Lieutenants for certain overtime work associated with the 2022-2023 Selective Traffic Enforcement Program grant
Resolution No. 11455
E. PUBLIC HEARINGS
F. OTHER BUSINESS

1. Affordable Housing Program Informational Report
City Manager Benoun gave introductory remarks.

Community Development Director Turner reviewed the presentation agenda of topics to be discussed.

Paul Peninger, Baird and Driskill, discussed priority housing needs, provided an update on the 2021-2023 priorities and status, reviewed the affordable housing approved resulting in 321 affordable units to be built in the next 18 months. He stated that the Housing Element Update is nearing the community review phase.

The Regional Housing Needs Allocation (RHNA) 2023-2031 is 1,874 units from very low income to above moderate income. The City has double capacity to accommodate the RHNA numbers.

Council Member Bucci arrived at 6:23 p.m.

Kristy Wang, Baird and Driskill, reviewed next steps with the focus for 2023 to have the Housing Policy adopted, design Local Preferences Policy, finalize funding agreement with Packet Page 71
Page No. 3
City of Newark City Council Minutes December 15, 2022
affordable housing developer per Notice of Funding Availability, develop First Time Home Buyer Program, and update the Inclusionary Housing Policy. (Presentation on file with City Clerk).

No one from the public requested to speak.

This item was informational only.

G. CITY COUNCIL MATTERS
The entire City Council wished everyone Happy Holidays.

Council Member Jorgens encouraged everyone to volunteer.

Vice Mayor Collazo congratulated Mayor Hannon on chairing his first meeting as Mayor. She congratulated everyone elected. She wished everyone a safe, healthy, and prosperous new year. Shop Newark.

Mayor Hannon stated that the Newark Symphonic Winds will be performing this weekend and that Council Member Jorgens is a band member. He thanked Laurie Gebhard, Kathy Slafter, Mary Teixeira, Roya Gonzalez, and Sheila Harrington for organizing the reception after the City Council reorganization on December 8, 2022.

H. CLOSED SESSION
I. ADJOURNMENT
Mayor Hannon adjourned the meeting at 6:55 p.m.

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Item D. 3.

DATE 01/12/2023
TO Honorable Mayor and City Council Members
FROM Kristopher Kokotaylo, City Attorney
SUBJECT Adopt a Resolution Finding That There is a Proclaimed State of Emergency; Finding That Meeting in Person Would Present Imminent Risks to the Health or Safety of Attendees as a Result of the State of Emergency; and Authorizing Continued Remote Teleconferenced Meetings of the Legislative Bodies of the City of Newark for the 30 Day Period Beginning January 12 Pursuant to AB 361
SUMMARY AND RECOMMENDATION
Since near the start of the COVID-19 pandemic the City has been able to conduct meetings of its legislative bodies remotely pursuant to Executive Order N-29-20, which suspended certain provisions of the Brown Act allowing the City to conduct its meetings virtually. On June 11, 2021, Governor Newsom issued an Executive Order that ends the clauses of Executive Order N-29-20 which suspended those provisions of the Brown Act on September 30, 2021. Governor Newsom signed AB 361 into law on September 16, 2021. AB 361 allows the City to continue conducting virtual meetings where the Governor has proclaimed a State of Emergency and state or local officials have imposed or recommended social distancing or where the City Council has declared the need to meet remotely due to imminent risks to the health or safety of attendees.

On September 23, 2021, the City Council made the necessary findings pursuant to AB 361 to continue to conduct virtual meetings. AB 361 requires that the City Council revisit the need to continue conducting virtual meetings every 30 days. The City Council last made the necessary findings on December 15, 2022.

Staff and the City Attorney recommend that the City Council adopt a resolution making the necessary findings pursuant to AB 361 to continue conducting virtual meetings.

Absent further action of the City Council, the City's legislative bodies would need to continue in-person meetings 30 days after January 15, 2023.

BACKGROUND
On March 4, 2020, Governor Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the State address the broader spread of COVID-19.

On March 17, 2020, the City Council adopted a Resolution ratifying the proclamation of Packet Page 73
a local state of emergency by the Director of Emergency Services due to COVID-19.

On March 17, 2020, in response to the COVID-19 pandemic, Governor Newsom issued Executive Order N-29-20, which suspended certain provisions of the Brown Act in order to allow local legislative bodies to conduct meetings telephonically or by other means. Additionally, the State implemented a shelter-in-place order, requiring all non-essential personnel to work from home.

The City has established virtual meetings for all City Council and City Council appointed Board and Commission meetings. The virtual meetings have allowed the Council and advisory bodies to continue to conduct City business from remote locations while ensuring the public’s continued access to government meetings in a safe manner.

On June 11, 2021, Governor Newsom issued Executive Order N-08-21, which among other things, rescinded certain clauses of Executive Order N-29-20 after September 30, 2021, including clauses that suspended certain provisions of the Brown Act. Thus, effective October 1, 2021, agencies would have had to transition back to public meetings held in full compliance with the Brown Act.

Since the Governor issued Executive Order N-08-21, the highly contagious Delta variant has emerged, causing a spike in cases throughout the state and within the Alameda County. Additionally, since then, the highly contagious Omicron variant and sub-variants BA.2, BA.2.12.1, and BA.5 have emerged. Currently, state and local officials still recommend wearing masks for certain individuals and under certain circumstances.

On September 16, 2021, the Governor signed AB 361 (2021) which allows for local legislative and advisory bodies to continue to conduct meetings via teleconferencing under specified conditions and includes a requirement that the Council make specified findings. AB 361 took effect immediately.

The City Council adopted a resolution pursuant to AB 361 on September 23, 2021 in order to allow the City’s legislative bodies to continue conducting virtual meetings after September 30, 2021. The resolution included all of the necessary findings required pursuant to AB 361. The City Council has adopted continued resolutions since that time.

DISCUSSION/ANALYSIS
The California Legislature approved AB 361 and the Governor signed the bill into law on September 16, 2021. AB 361 allows local legislative bodies to continue to meet remotely after the expiration of the clauses of Executive Order N-29-20 which suspended certain Brown Act provisions. Under AB 361, the City and its legislative bodies will be allowed to continue to meet remotely when:
• The local agency holds a meeting during a declared state of emergency; • State or local health officials have imposed or recommended measures to promote social distancing;
• Legislative bodies declare the need to meet remotely due to present imminent risks to Packet Page 74
• Legislative bodies declare the need to meet remotely due to present imminent risks to the health or safety of attendees.

The City meets the requirements to continue holding meetings remotely in order to ensure the health and safety of the public:
• The Governor has declared a State of Emergency, and the City Council has ratified the proclamation of a local emergency by the Director of Emergency Services; • CalOSHA recommends social distancing under certain circumstances and maintaining six feet of distance can avoid close contacts requiring quarantine; • The Delta and Omicron variants of COVID-19 have resulted in a significant increase of COVID-19 cases within the state and throughout Alameda County; • Meeting in person would present imminent risks to the health or safety of attendees, the legislative bodies, and staff.

Pursuant to AB 361, the City Council is required to declare every 30 days that the City’s legislative bodies must continue to meet remotely in order to ensure the health and safety of the public.

The proposed resolution includes the necessary findings pursuant to AB 361 to allow the City Council and the City’s legislative bodies to continue meeting remotely.

FISCAL IMPACT
There is no direct fiscal impact of adopting this Resolution.

REVIEW AND APPROVAL
Prepared by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
AB 361 Resolution January 12
Packet Page 75
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK FINDING THAT THERE IS A PROCLAIMED
STATE OF EMERGENCY; FINDING THAT MEETING IN

PERSON WOULD PRESENT IMMINENT RISKS TO THE

HEALTH OR SAFETY OF ATTENDEES AS A RESULT OF
THE STATE OF EMERGENCY; AND AUTHORIZING

CONTINUED REMOTE TELECONFERENCED MEETINGS OF

THE LEGISLATIVE BODIES OF THE CITY OF NEWARK
FOR THE 30 DAY PERIOD BEGINNING JANUARY 12
PURSUANT TO AB 361
WHEREAS, all meetings of the City of Newark’s legislative bodies are open and public, as required by the Ralph M. Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend, participate, and watch the City’s legislative bodies conduct their business; and
WHEREAS, on March 4, 2020, Governor Newsom declared a State of Emergency to make additional resources available, formalize emergency actions already underway across multiple state agencies and departments, and help the State prepare for a broader spread of the novel coronavirus disease 2019 (“COVID-19”); and
WHEREAS, on March 17, 2020, the City Council adopted a Resolution ratifying the proclamation of a local emergency by the Director of Emergency Services due to COVID-19; and WHEREAS, on March 17, 2020, in response to the COVID-19 pandemic, Governor Newsom issued Executive Order N-29-20 suspending certain provisions of the Ralph M. Brown Act in order to allow local legislative bodies to conduct meetings telephonically or by other means; and
WHEREAS, as a result of Executive Order N-29-20, staff set up virtual meetings for all City Council meetings and meetings of all legislative bodies within the City; and WHEREAS, on June 11, 2021, Governor Newsom issued Executive Order N-08-21, which, effective September 30, 2021, ends the provisions of Executive Order N-29-20 that allows local legislative bodies to conduct meetings telephonically or by other means; and WHEREAS, on September 16, 2021, Governor Newsom signed AB 361 (2021) which allows for local legislative bodies and advisory bodies to continue to conduct meetings via teleconferencing under specified conditions and includes a requirement that the City Council make specified findings. AB 361 (2021) took effect immediately; and WHEREAS, AB 361 (2021) requires that the Governor declare a State of Emergency pursuant to Government Code section 8625; and
WHEREAS, AB 361 (2021) further requires that state or local officials have imposed or recommended measures to promote social distancing, or, requires that the legislative body Packet Page 76
determines that meeting in person would present imminent risks to the health and safety of attendees; and
WHEREAS, such conditions now exist in the City, specifically, Governor Newsom has declared a State of Emergency due to COVID-19; and
WHEREAS, since issuing Executive Order N-08-21, the highly contagious Delta and Omicron variants, in addition to Omicron sub-variants, of COVID-19 have emerged, causing an increase in COVID-19 cases throughout the State and Alameda County; and WHEREAS, CalOSHA recommends social distancing under certain circumstances and maintaining six feet of distance can avoid close contacts requiring quarantine; and WHEREAS, because of the rise in cases due to the Delta and Omicron variant of COVID19, and now the Omicron sub-variant, the City is concerned about the health and safety of all individuals who intend to attend City Council and meetings of the City’s other legislative bodies; and
WHEREAS, on September 23, 2021, the City Council found that the presence of COVID-19 and the increase of cases due to the Delta variant would present imminent risks to the health or safety of attendees, including the legislative bodies and staff, should the City’s legislative bodies hold in person meetings; and
WHEREAS, the highly contagious Omicron variant has since resulted in several highly contagious sub-variants, including the new BA.5, which has become the dominant strain of COVID-19; and
WHEREAS, the City Council finds that the imminent risks of the City’s legislative bodies holding in person meetings to the health or safety of attendees continues to exist due to the Delta and Omicron variants of COVID-19; and
WHEREAS, the City shall ensure that it’s meetings comply with the provisions required by AB 361 (2021) for holding teleconferenced meetings.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newark as follows:

1. The above recitals are true and correct, and incorporated into this Resolution.

2. In compliance with AB 361 (2021), and in order to continue to conduct teleconference meetings without complying with the usual teleconference meeting requirements of the Brown Act, the City Council makes the following continued findings:
a) The City Council has reconsidered the circumstances of the state of emergency; and
b) The state of emergency, as declared by the Governor and City Council, continues to directly impact the ability of the City Council and the City’s legislative bodies, as well as staff and members of the public, from meeting safely in person; and Packet Page 77
c) The CDC continues to recommend physical distancing of at least six feet due to COVID-19, state and local officials continue to recommend wearing masks and physical distancing under certain circumstances, and as a result of the presence of COVID-19 and the increase of cases due to the Delta and Omicron variants, meeting in person would present imminent risks to the health or safety of attendees, the legislative bodies and staff.

3. City Council and City’s legislative bodies may continue to meet remotely in compliance with AB 361, in order to better ensure the health and safety of the public.

4. The City Council will revisit the need to conduct meetings remotely within 30 days of the adoption of this resolution.

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Item D. 4.

DATE 01/12/2023
TO Honorable Mayor and City Council Members
FROM Roya Gonzalez, Administrative Analyst
SUBJECT Adopt a resolution approving the first amendment to the Contractual Services Agreement with Orion Security
SUMMARY AND RECOMMENDATION
Due to delays in implementing a long-term security solution at City Hall, the temporary security guard services currently in place are recommended to remain for an extended period of time. Staff recommends the City Council authorize the City Manager to amend the existing Contractual Services Agreement with Orion Security to increase the not-to-exceed amount by $28,000 for a total not-to-exceed amount of $77,999 and amend the 2022-2024 Biennial Budget and Capital Improvement Plan for FY22-23 to appropriate $77,999 from the general fund for this agreement.

BACKGROUND
Earlier this year, consultants conducted security assessments of each City facility to assess the need for enhanced security such as interior and exterior cameras, panic buttons, and key card and other controlled entrance measures. Knowing these measures would take several months to be fully implemented, the City arranged for security guard services in the interim. The City entered into an agreement with Orion Security on July 13, 2022 in the amount of $49,999 to provide temporary security services at City Hall. This amount was anticipated to cover the time frame estimated to determine and implement a long-term solution for security at City Hall. Unfortunately, challenges arose that have delayed releasing a request for proposal to have the cameras, panic buttons, additional key card readers, and other similar measures designed and installed.

DISCUSSION/ANALYSIS
At the time the agreement was executed, it was anticipated that temporary security guard services would be needed for approximately six months. However, the long-term security measures are more complex than expected. Three separate consultants have completed walk-throughs of City facilities in order to provide plans that can be used for soliciting proposals to design and build the security measures.

However, the City has not received the necessary plans in order to release the request for proposals. While staff continue to work to prepare for the solicitation of proposals and implementation of new security measures, funding is needed to keep security guard services in place through June 2023.

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FISCAL IMPACT
Security guard services was not a planned item included in the 2022-2024 Biennial Budget and Capital Improvement Plan. A mid-year budget amendment was planned to fund the original agreement amount of $49,999. Since this agreement amendment is preceding the mid-year budget amendment approval process, staff requests authorization to amend the 2022-2024 Biennial Budget and Capital Improvement Plan for FY 2023 to appropriate $79,999 for the full funding of the original agreement and this amendment.

REVIEW AND APPROVAL
Prepared by - Roya Gonzalez, Administrative Analyst
Reviewed by - Lenka Hovorka, Assistant City Manager
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Contractual Service Agreement
Amendment No. 1
Resolution
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1 FIRST AMENDMENT TO THE CONTRACTUAL

SERVICES AGREEMENT BETWEEN THE CITY OF

NEWARK AND ORION SECURITY
This First Amendment to Contractual Services Agreement C22041 between the City of Newark, a municipal corporation, ("City") and Orion Security, a Type “C” Corporation ("Consultant") (sometimes referred to as "Parties") dated July 13, 2022 (the “Agreement”), is entered into as of , 2022 for the provision of specialized professional services (security guard services).

RECITALS
WHEREAS, the Parties executed the Agreement for the provision of specialized professional services (security guard services); and
WHEREAS, Section 27, Modifications, of the Agreement allows the Parties to amend the Agreement provided that the amendment is in writing signed by the Parties; and WHEREAS, the Parties desire to amend the Agreement, Section 3.A to increase the “Not to Exceed” Compensation amount; and
WHEREAS, City staff is authorized to execute this Amendment in a form approved by the City Attorney.

NOW, THEREFORE, the Parties hereby agree as follows:

1. Section 3.A. "Not to Exceed" Compensation, of the Agreement, is amended to increase the not to exceed compensation by $28,000, for a total not to exceed amount of $77,999 (from a previous not to exceed amount of $49,999.).

2. With the exception of the foregoing, all other terms and conditions in the Agreement, as amended, remain in force and effect.

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2 City of Newark Consultant
David J. Benoun Authorized Representative
City Manager Stantec Consulting Services, Inc.

Dated: Dated:

Attest:

Sheila Harrington
City Clerk
Approved as to Form:

KristopherJ. Kokotaylo
City Attorney
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RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AUTHORIZING THE CITY MANAGER TO
EXECUTE AMENDMENT NO. 1 TO THE CONTRACTUAL

SERVICES AGREEMENT WITH ORION SECURITY TO

PROVIDE SPECIALIZED PROFESSIONAL SERVICES
(TEMPORARY SECURITY GUARD SERVICES) AND
APPROVING AN AMENDMENT TO THE 2022-2024

BIENNENIAL BUDGET AND CAPITAL IMPROVEMENT
PLAN
WHEREAS, on July 13, 2022 the City entered into a Contractual Services Agreement C22041 (the “Agreement”) with Orion Security (the “Consultant”) to provide specialized professional services (temporary security guard services); and WHEREAS, the City finds that the scope of services described in the Agreement continue to be necessary; and
WHEREAS, staff has identified the need to amend the Agreement to increase the not-toexceed amount; and WHEREAS, an amendment to the 2022-2024 Biennial Budget and Capital Improvement Plan for fiscal year 2022-2023 will be necessary to appropriate funds for this Agreement.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby authorizes the City Manager to execute Amendment No. 1 to the Contractual Services Agreement with Orion Security to increase the not-to-exceed amount by $28,000 for a total notto-exceed amount of $77,999, in a form approved by the City Attorney.

BE IT FURTHER RESOLVED that the City Council does herby authorize an amendment to the 2022-2024 Biennial Budget and Capital Improvement Plan for fiscal year 2022-2023 by appropriating $77,999 as follows:

FROM:

Description Account Amount
General Fund Balance 110.3000 $77,999
TO:

Description Account Amount
CMO Contractual Services 110.20.020.200.6221 $77,999
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Item D. 5.

DATE 01/12/2023
TO Honorable Mayor and City Council Members
FROM Steve Willkomm, Community Preservation Manager
SUBJECT Resolution approving and authorizing the City Manager to execute the First Amendment to the Contractual Services Agreement with 4Leaf Inc. to provide temporary professional code enforcement services
SUMMARY AND RECOMMENDATION
Staff recommends that the City Council approve an amendment to the existing 4Leaf, Inc. Contractual Service Agreement (CSA) to increase the “not-to-exceed” amount by $95,040.00 (a value representing approximately 960 hours consultant staff hours) thereby extending the services to the beginning of July 2023. The scope of services would remain the same. Examples of services include: responding to inquiries regarding code enforcement matters at the public counter; responding to phone and/or email inquiries; processing case investigation documentation; processing of evidence; preparing case correspondence and documentation; testifying during legal proceedings; and interacting with responsible parties, including property owners, residential tenants, commercial tenants (business owners), contractors, and professional plan preparers. The amendment would provide 4Leaf consultant services through approximately the beginning of July 2023.

BACKGROUND
The City has relied upon professional consultants to provide services and experience that City staff are unable to provide. For example, the City currently has several CSAs with consultants for on-call professional city planning services, as well as Public Works construction inspection, and civil engineering development plan review services. These CSAs provide the City with flexibility to address service and experience needs while maintaining high customer service levels and keeping staff costs low. In September 2022, the City entered into a CSA with 4Leaf Inc. in the amount of $47,520.00 (a value representing approximately 480 hours of consultant staff hours) to provide temporary professional code enforcement services in order to increase capacity to perform critical community preservation customer service and code violation investigation functions. 4Leaf staff has provided these services since October 2022. The current contract would allow 4Leaf to provide services through early January 2023.

DISCUSSION/ANALYSIS
The need for enhanced capacity continues for the Community Preservation Division.

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The need for enhanced capacity continues for the Community Preservation Division.

As of December 2022, there are 286 open cases that range from property maintenance violations to very complicated building and zoning violation cases. 4Leaf is assisting with complicated illegal structure cases that require inspections, documentation, and property owner noticing, which is very time-consuming. The two existing, full-time Community Preservation staff are working to reduce the current case backlog and process new cases in a timely manner. The amendment to the CSA would increase the "not to exceed" contract amount by $95,040.00 for a total contract amount of $142,560. The proposed amendment would provide services through June 2023.

FISCAL IMPACT
A budget amendment would be required for this CSA amendment. Staff recommends that the City Council approve an amendment to the 2022-2024 Biennial Budget and Capital Improvement Plan for fiscal year 2023 as follows:
· Increase Community Preservation General Fund Professional Services (120.50.053.530.6220) by $95,040.00
· Decrease Fund Balance (120.3000) by $95,040.00
REVIEW AND APPROVAL
Prepared by - Steve Willkomm, Community Preservation Manager Reviewed by - Steven Turner, Community Development Director Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
First Amendment Contract Agreement
4Leaf Resolution
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1 FIRST AMENDMENT TO THE CONTRACTUAL

SERVICES AGREEMENT BETWEEN THE CITY OF
NEWARK AND 4LEAF, INC.

This First Amendment to Contractual Services Agreement between the City of Newark, a municipal corporation, ("City") and 4LEAF, INC., a Type “C” Corporation ("Consultant") (sometimes referred to as "Parties") dated September 12, 2022 (the “Agreement”), is entered into as of _______, 2023 for the provision of temporary professional code enforcement services.

RECITALS
WHEREAS, the Parties executed the Agreement for the provision of temporary professional code enforcement services to provide technical assistance by individuals possessing experience consistent with minimum qualifications provided by the City; and
WHEREAS, Section 27, Modifications, of the Agreement allows the Parties to amend the Agreement provided that the amendment is in writing signed by the Parties; and WHEREAS, the Parties desire to amend the Agreement, Section 3.A to increase the “Not to Exceed” Compensation amount; and
WHEREAS, City staff is authorized to execute this Amendment in a form approved by the City Attorney.

NOW, THEREFORE, the Parties hereby agree as follows:

1. Section 3.A. "Not to Exceed" Compensation, of the Agreement, is amended to increase the not to exceed compensation by $95,040.00, for a total not to exceed amount of $142,560.00 (from a previous not to exceed amount of $47,520.00).

2. The Agreement’s Exhibit B (Payment) is amended as outlined in the new Payment (Exhibit 1), attached hereto and incorporated herein by reference.

3. With the exception of the foregoing, all other terms and conditions in the Agreement, as amended, remain in force and effect.

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2 City of Newark Consultant
_________________________________ _________________________________ David J. Benoun 4LEAF, INC.

City Manager [Consultant]
Dated: ___________________________ Dated: ___________________________ Attest:
__________________________________
Sheila Harrington
City Clerk
Approved as to Form:
__________________________________
Kristopher J. Kokotaylo
City Attorney
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3 EXHIBIT 1

PAYMENT
Consultant will provide the individual performing at the Standard Code Enforcement Officer level at the hourly rate of $99.00/hour for an amount not to exceed $142,560. 5077303.1
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RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK APPROVING AND AUTHORIZING THE CITY

MANAGER TO EXECUTE THE FIRST AMENDMENT TO THE
CONTRACTUAL SERVICES AGREEMENT WITH 4LEAF INC.

TO PROVIDE TEMPORARY PROFESSIONAL CODE

ENFORCEMENT SERVICES AND AUTHORIZING A BUDGET
AMENDMENT TO THE BIENNIAL BUDGET 2023-2024 FOR
FISCAL YEAR 2023
WHEREAS, consultant experience is sometimes needed to provide services and expertise that city staff are unable to provide, as well as additional capacity during busy periods or when staff resources are low; and
WHEREAS, On September 12, 2022 the City of Newark awarded a Contractual Services Agreement (the “Agreement”) to 4LEAF Inc. (the “Consultant”) to provide temporary professional code enforcement services; and
WHEREAS, the City finds that the scope of services described in the the Agreement continue to be necessary and desires to amend the Agreement to provide additional funding for the existing scope of services to be provided by the Consultant.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newark does hereby:
(1) Approve the First Amendment to the Contractual Services Agreement with 4LEAF Inc. to provide technical assistance by individuals possessing experience consistent with minimum qualifications provided by the City and to increase the not to exceed amount of the Agreement, as amended by the First Amendment, by $95,040.00 for a total not to exceed amount of $142,560.00 and authorize the City Manager to execute the First Amendment to form by the City Attorney.
(2) Approve an amendment to the 2022-2024 Biennial Budget and Capital Improvement Plan for fiscal year 2023 as follows:
• Increase General Fund Professional Services (120.50.053.530.6220) by $95,040 • Decrease Fund Balance (120.3000) by $95,040
BE IT FURTHER RESOLVED that the City Manager is hereby authorized to take all other actions consistent with this Resolution, including any necessary revisions to the scope of work for the Agreement in a form approved by the City Attorney, that are within the total not to exceed amount of $142,560.00.

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Item F. 1.

DATE 01/12/2023
TO Honorable Mayor and City Council Members
FROM Anne Stedler, Economic Development Manager
SUBJECT Economic Development Update Informational Report SUMMARY AND RECOMMENDATION
Economic Development engages with many sectors of the business community, and each plays an important role in Newark’s financial sustainability. This staff report and the attached presentation to Council summarize four Newark business sectors and the City of Newark’s (City) 2022 Agreement with the Newark Chamber of Commerce.

Each Sector Summary looks backward and forward in time to provide context. Sectors summarized in this report include Industry, Hotels, and Retail. The Chamber of Commerce summary follows. The Small Business Sector is briefly summarized in the staff report, with details in staff report attachments.

Policies in the adopted Economic Development Element of the General Plan aim to strengthen tax revenue to the City and the number and quality of jobs. Each Sector Summary provides an overview of staff efforts and progress alongside these Economic Development policies to demonstrate alignment.

Additionally, this report provides a different context than earlier Economic Development updates because businesses are no longer in crisis response to the pandemic. This allows staff focus to shift from pandemic conditions to identifying and developing responsive strategies that productively engage each business sector.

Staff recommends that the City Council receive the Economic Development Update informational report.

BACKGROUND
Economic Division staff have presented yearly informational updates to the City Council at two previous meetings.

January 14, 2021
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assistance for the business community to deliver resources and support and inspire a sense of common purposes during COVID-19, “We are all in this together.” March 24, 2022
Presentation of strong 2021 industrial leasing activity and dropping vacancy rate indicating need for additional industrial space. Staff presented a report on the Exceptional COVID-19 Grant Program (ECGP) results, Financial Resiliency Workshops, and one-on-one business owner counseling to help small merchants.

The 2023 Economic Development Update Report is informational, intended to set forth key Economic Development issues and opportunities facing the City in 2022 and the progress made. The report is organized by four business sectors:

Industrial
Hotel
Retail
Small Business
In addition, this report summarizes the 2022 efforts between the City and the Newark Chamber of Commerce, the "Chamber ReStart" initiative.

DISCUSSION/ANALYSIS
Industrial Sector Summary
Newark’s industrial businesses deliver the two most sought-after economic development benefits: tax revenue and attractive employment opportunities. The sector is a major contributor of sales and property tax revenue and attracts business travelers who pay transient occupancy tax (TOT). The sector not only provides increasingly sophisticated and well-paid employment opportunities, but it’s also increasing the number of industrial jobs in Newark overall.

This valuable tax revenue and employment base can continue to grow as Newark facilitates private sector investment in its Industrial areas. Silicon Valley, one of the world’s strongest industrial economies, is expanding and Newark is geographically positioned to provide needed sites and buildings.

Looking Back, Taking Stock of the Present, Looking Forward Looking Back. The state of Newark’s industrial inventory between 2008 and 2017 shows how inactive the market was in the years following the 2008 Great Recession.

The total 2017 industrial inventory was 10,500,000 square feet of building area. Only new two buildings were constructed in the ten years starting in 2008: a warehouse on Eureka Drive (2016) and a distribution center for E-commerce (2014). Even the well-located Pacific Research Center on Gateway Boulevard at Jarvis Avenue faced a very slow lease-up during this period after former owner/tenant Sun Microsystems vacated the 1.4 million square foot campus in 2008.

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on Gateway Boulevard and the Overton Moore site on Central Avenue to attract growing numbers of tenants seeking space. Within four years, by 2022, these properties were fully leased and assessed values were generating property tax to the City. In November 2022, the global industrial developer and property owner, Prologis, applied for a new 300,000 square foot industrial building at 6756 Central Avenue.

This business investment decision to replace 17 acres of obsolete buildings and under-developed yards on Central Avenue with a modern industrial building shows the value of Newark’s industrial sites today.

Looking Forward. In response to City Council’s request at the March 24, 2022, Economic Development Update presentation, staff identified industrial sites (both undeveloped and under-developed) for potential new development and buildings that could be retooled for modern industrial and R&D uses. The opportunities are significant and would potentially enable the development of another 1 square million feet of building area. However, these properties are privately owned, and many are subject to leases. Therefore, only a few owners may take advantage of the market demand for industrial space in the near term, and the pace creating new buildings is not predictable.

To meet this need for modern industrial buildings, staff is developing an Industrial Sector Work Plan that includes discussions with industry experts and property owners, strategies for transitioning properties with high potential for modern facilities. The Industrial Sector Work Plan is anticipated to be prepared by Spring 2023.

Policies from the Economic Development Element
The proposed Industrial Sector Work Plan is aligned with many Economic Development Element policies in the adopted General Plan, including:

ED-1.2 Newark’s Competitive Edge. Maintain and enhance Newark’s competitive edge relative to other cities in the East Bay, Silicon Valley, and Peninsula Area, particularly in the technology sector.

ED-1.3 Revenue Generation. Support continued expansion of the municipal tax base, including property, transient occupancy, and sales taxes, to ensure adequate funding for public facilities and services. Development should generally have a positive fiscal impact on the city unless other compelling, community benefits will be provided.

ED-1.4 Core Industries. Continue to support and grow the City’s core industries while remaining flexible as they change and evolve.

ED-1.5 Managing Land Resources. Ensure the strategic use of Newark’s available industrial and commercial land supply to ensure that the economic development potential of its commercial and industrial areas is fully recognized.

ED-3.1 Industrial Land Supply. Maintain a sufficient supply of land for office and industrial uses to generate high-quality, high-paying jobs and meet the City’s economic development goals. Focus office and industrial development on technology uses and other activities that will generate high-wage employment.

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other activities that will generate high-wage employment.

ED.3.7 Industrial Redevelopment. Encourage property owners to redevelop industrial sites and buildings when the proposed redevelopment will generate high-quality and high-paying jobs. Likewise, support the refurbishment of such spaces for continued use as general industrial properties.

Hotel Sector Summary
The hotel sector is important because it produces valuable transient occupancy tax (TOT) for the City.

The November 10, 2022, consultant report to the City Council described Newark's hotel market strengths and its stronger occupancy and revenue relative to nearby Bay Area markets through the pandemic. The consultants explained that the unprecedented world-wide hotel revenue losses are particularly severe in the San Francisco Bay Area.

Therefore, the most critical need now is regaining occupancies and revenues close to pre-pandemic 2019 levels.

Looking Back, Taking Stock of the Present, and Looking Forward Looking Back. In 2019, strong business travel supported occupancy rates at 75% and an average daily rate of $182. City TOT revenues were the highest ever at $6.7 million.

The Present. Today Newark business class hotels report occupancies hovering at 64% for the twelve months ending in September 2022, and average daily rates at $137 for the same period. TOT revenue is slowly recovering from the low $2.9 million in 2021 to an estimated $3.7 million in 2022.

Since the November 10, 2022, presentation to Council on “Transient Occupancy Tax Revenue and Hotel Market Analysis,” Embarcadero Hotel Group consultants Sondra Storm and Mark Keller met with Newark’s business-class hotel general managers and sales managers to learn their perspectives, concerns, and priorities. The greatest need identified in all interviews is restoring occupancy and room rates to pre-pandemic levels, which aligns directly with the City’s desire to restore TOT levels. The hoteliers welcomed the interviews and discussed issues. This is the beginning of collaboration that will guide upcoming staff efforts to address the needs of Newark hotels and the managerial staff.

Looking Ahead. Staff and the Embarcadero Hotel Group consultants will prepare a Hotel Sector Work Plan during first quarter 2023 informed by continued discussions with Newark hotel managers. The Hotel Sector Work Plan will guide staff's efforts to strengthen this important business sector.

Policies from the Economic Development Element
Staff's Hotel Sector efforts are aligned with many Economic Development Element policies in the adopted General Plan, including:

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ED-1.2, 1.3, and 1.5 listed above (under the Industrial section).

ED-1. Hospitality. Continue to grow Newark’s hospitality sector, including high-quality business hotels, restaurants, and entertainment venues Partner with Newark hotels to market to business travelers and travel planners the advantages of staying in Newark.

Retail Sector Summary
The Retail Sector generates critical retail sales tax from business-to-business and consumer purchases. Consumer retail is also critically important as a service to the community, providing convenient access to goods and services and contributing to a sense of community identity. This summary is about consumer retail.

Looking Back, Taking Stock of the Present, and Looking Forward Looking Back. Long-standing vacancies at the shopping centers at Newark Boulevard and Jarvis Avenue and resident demands for new retail options in general are primary concerns that continue today. Although one of the Newark Boulevard and Jarvis Avenue vacancies is now occupied by Sprouts (Summer 2017) and Fitness 19 (Fall 2022), two large vacancies remain. This month Big Lots announced that the store at Cedar and Thornton Avenues would close by February 2023.

The Present. In 2021, Council implemented the NewPark Place Specific Plan, meant in part to enhance and grow retail opportunities at NewPark Mall and surrounding areas. Council also approved the Costco retail warehouse, a catalyst project that will grow retail sales tax.

In 2022 the City began researching the contractual restrictions that legally limit a property owner’s choice of tenants. In April 2022, the Council approved an amendment to the Consulting Services Agreement with Greensfelder Commercial Real Estate to continue that fundamental work. Much of this work has been completed, allowing for discussions with property owners and prospective retailers.

Looking Ahead. The retail recruitment process is lengthy and subject to factors beyond the City’s control. The first steps include efforts to secure a retailer’s serious interest for any of the large retail space vacancies. That work is now underway and will continue.

Second, corporate approvals are typically required for large space retailers, with extensive due diligence and investment committee approval. Third, typically the retail space requires tenant improvements, with both a design and construction phase.

Economic Development serves as an important link between prospective retailers and the City’s approval process and will continue to promote Newark and address delays in the recruitment process.

Policies from the Economic Development Element
Staff's Retail; Sector efforts are aligned with many Economic Development Element policies in the adopted General Plan, including:

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ED-2.2 Greater NewPark Mall Area. Guide the revitalization of the NewPark Mall area so it becomes a world-class retail and entertainment destination. Additional uses such as offices, hotels, and housing should be supported only to the extent that they support retail revitalization.

ED-2.8 Retail Business Attraction. Collaborate with real estate brokers, property owners, the Chamber of Commerce, and other stakeholders to market Newark to potential new retail businesses through a variety of means, such as direct contact, media, and attendance at industry conferences and retail conventions.

ED-2.9 Retail Destination Marketing. Partner with the Chamber of Commerce and other stakeholders to market Newark as a regional retail destination for the southern East Bay region. Recognize the important role that quality retail and dining establishments play in attracting quality employers and good-paying jobs to the City.

ED-2.A Retail Needs Assessment. Evaluate periodically the condition of the City’s retail centers and business districts to determine the need for changes to zoning regulations or other strategies that improve retail performance. Regularly assess the local retail market, consumer preferences, and buying power to identify retail gaps.

Newark Chamber of Commerce Summary
Both the Newark Chamber of Commerce and the city take pride in a history of collaboration that continues now with the Chamber Restart program and the Chamber’s role in advancing economic development for the Newark business community.

Looking Back, Taking Stock of the Present, and Looking Forward Looking Back. The City’s 2016 contract to support the Chamber of Commerce expired June 30, 2020, before the former Executive Director retired in September 2020.

Although the pandemic public health orders limited traditional Chamber functions, the volunteer Board of Directors engaged with the community by hosting a series of webinars for small business merchants who were most threatened by the pandemic.

The Present. In 2022 the Chamber began work with Katy Brooks, CEO of the Bend Chamber of Commerce in Bend, Oregon, under a contract funded by the City. Because the Bend Chamber has generated outstanding business benefits through an economic development service model, the Newark Chamber sought out their advice and experience. This consultation produced a Chamber of Commerce Three Year Budget, a Chamber of Commerce Work Plan, and a Stakeholder Interview Report for an incoming CEO.

City Council approved an agreement to use American Recovery Plan Act (ARPA) funds in the amount of $230,000 to compensate a new CEO and staff, and also approved $25,000 in APRA funds to retain an executive recruiter for the Chamber. The executive recruiter is now working with the Chamber Board to launch the CEO recruitment. Also, the Chamber received a $75,000 grant from Alameda County Packet Page 149
recruitment. Also, the Chamber received a $75,000 grant from Alameda County Supervisor District 2’s ARPA Cash Grant program in late November 2022.

Looking Ahead. The Chamber Board’s proposed Work Plan, Budget, and Stakeholder Interviews are ready to support new economic development initiatives. This work is expected to begin when the new CEO appointment begins.

Policies from the Economic Development Element
The Chamber–City collaboration is aligned with many Economic Development Element policies in the adopted General Plan, including:

ED-1.6 Business Retention and Recruitment. Work with the Chamber of Commerce and other local business and economic development organizations to retain jobs in the city and recruit and support new businesses and business growth.

ED-1.8 Partnerships. Build and strengthen partnerships with the City’s economic development partners, particularly the Chamber of Commerce and also business development organizations, regional economic development associations, Ohlone College, and other entities.

ED-1.9 Communication. Strive for frequent and effective communication with the business community in partnership with Chamber of Commerce. Provide opportunities for local businesses to communicate their issues and needs to City staff and demonstrate responsiveness through follow-up actions.

Small Business Sector Summary
City Council focused on Small Business recovery starting in 2020 and through the pandemic because small business owners are among those least able to sustain long closures and reduced earnings, and yet their services are important to this community and its retail centers. This summary is expected to be the final report on small business assistance driven by the closures and losses related to the COVID-19 pandemic. Economic Development staff efforts will focus on expanding capacity and sustainability.

Looking Back, Taking Stock of the Present, and Looking Forward Looking Back. From 2017 through 2019, City staff worked with the Chamber to host informational meetings with the Police Department for business owners experiencing auto burglary and theft. Staff and Chamber also developed “Flavors of Newark” events to showcase Newark restaurants to local, corporate businesses.

The Present. The City offered substantial small business assistance starting in 2020 and continuing in 2021 with the ARPA-funded Exceptional COVID Grant Program. In 2022, County and State funding generated three new small business grants (see below), and the City continued to offer technical assistance and small business outreach.

Packet Page 150
Small Business Sector Summary
This Small Business Sector Update addresses small business economic recovery and provides background for a recommendation to Council to continue services to small businesses in Newark. This section includes four parts listed below, and set forth in Attachment 1, Small Business Summary:

Looking Ahead. Regional and state agencies may offer two more grant programs in first quarter 2023, and the Economic Development team will encourage applications.

Staff will recommend an additional Amendment for Spectrum Small Business Services to continue technical assistance and workshops as needed through 2023. These include business and marketing support important to the Old Town Specific Plan goal of maintaining and strengthening existing businesses, as well as encouraging small business capacity-building city-wide.

Policies from the Economic Development Element
The Small Business Services and investment in Old Town are aligned with the following Economic Development Element policies in the adopted General Plan:

ED-2.7 Public Investment in Retail Districts. Where appropriate, use public investment to improve the quality of Newark’s business districts, particularly in the Old Town Newark area along Thornton Avenue. Consider programs to improve facades, signage, landscaping, lighting, and streetscapes, as funds and resources allow.

ED-4.4 Small and Disadvantaged Businesses. Support the continued growth of small and disadvantaged businesses through local, state, and federal programs and incentives.

ED-4.C Small Business Growth. In coordination with the Chamber of Commerce, explore programs to support small business growth in Newark, including incubators, shared offices, tax incentives, and technical assistance.

FISCAL IMPACT
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FISCAL IMPACT
There is no fiscal impact associated with this informational report.

REVIEW AND APPROVAL
Prepared by - Anne Stedler, Economic Development Manager Reviewed by - Steven Turner, Community Development Director Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Small Business Summary
ECGP Follow-up Survey
Presentation
Packet Page 152
Attachment 1
January 12, 2023, Economic Development Report
1 Small Business Sector Summary
Follow-up Survey Report, Progress, and Success
City Council focused on Small Business recovery starting in 2020 and continuing through the pandemic because small business owners are among those least able to sustain long closures and reduced earnings, and yet their services are important to this community and its retail centers. This Sector Summary is expected to be the final report on small business assistance driven by the closures and losses related to the COVID-19 pandemic. Future sector summaries will focus on expanding capacity and sustainability.

Looking Back, Taking Stock of the Present, and Looking Forward Looking Back. In 2019, city staff worked with the Chamber to host informational meetings with Police officers for business owners experiencing auto burglary and theft. Staff and Chamber also developed a working relationship with locally owned restaurants to host “Flavors of Newark” events that showcase Newark restaurants to local, corporate businesses.

Present. The city offered substantial small business assistance starting in 2020 and continuing in 2021 with the ARPA-funded Exceptional COVID Grant Program. In 2022, County and State funding generated three new small business grants (see below), and the city continued to offer technical assistance and small business outreach.

Looking Ahead. Regional and state agencies may offer two more grant programs in first quarter 2023, and the Economic Development team will encourage applications. Staff will recommend the Fifth Amendment of the Spectrum Consulting Services Agreement (Spectrum CSA) to continue technical assistance and workshops as needed through 2023. These include business and marketing support important to the Old Town Specific Plan goal of maintaining and strengthening existing businesses, as well as encouraging small business capacity-building city-wide.

Small Business Sector Update (Presented in Four Parts)
This Small Business Sector Update addresses small business economic recovery and provides background for a recommendation to Council to continue services to small businesses in Newark. This section includes four parts:

Part 1. Economic Recovery Follow-up Survey results from the owners who received Newark’s Exceptional COVID-19 Grant Program (ECGP) as Council requested at its March 2022 meeting Part 2. Recent Alameda County and State of California grants, a digital marketing pilot workshop for ECGP recipients, and a Financial Resiliency workshop Part 3. Small business recovery and outreach in Old Town in preparation for Old Town Specific Plan
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Attachment 1
January 12, 2023, Economic Development Report
2 Part 4. Reasons staff plans to recommend continued small business support under the proposed Fifth Amendment of the Spectrum Small Business Services Consulting Services Agreement (Spectrum CSA). The amendment will be on a January 2023 agenda Part 1. Economic Recovery Follow-up Survey Results on ECGP Grant Recipients – A Council Request Council requested a Follow-up Survey to assess the economic recovery of ECGP recipients –business owners who suffered greatest losses proportionately due to public health closures that exceeded six months. The survey results answer two key questions: a) Is back-rent debt reduced? and b) Do owners expect to stay in operation?
Back-rent debt is reduced: All but 16 (27%) of respondents fully retired their back-rent debt Businesses are continuing operations: 97% of respondents expect to be in business for at least the next year, and most expect to stay longer
Business owners also reported:

Business is improving: Forty-nine say business is either much better or a little better than a year ago
ECGP grant was necessary: 85% of respondents said the ECGP “was absolutely critical to staying in business.” The remaining 15% said that the ECGP “was probably critical to staying in business.”
Conclusion, Small Business Update, Part 1.

The Economic Recovery Follow-up Survey results and owner statements in this section demonstrate that we made strong progress in business recovery and in sustaining owners hardest hit by the pandemic.

The survey results prove that the city’s $1,470,000 ARPA investment in the ECGP helped business owners to survive. (More details from the Follow-up Survey are also attached to the Staff Report.) Part 2. New Grants and Workshops in Digital Marketing and Financial Resiliency Three small business grants offered since June 2022:

Alameda County Small Business Recovery Grant. Awards are $10,000 to businesses in commercial property and $5,000 to home-based businesses ($11 M ARPA funding countywide) Supervisorial District 2 ARPA Cash Grant. Awards are based on applicant need ($3.1 M funding), and grants appear to be uniformly $5,000 each.

State of California Micro Business Grant. $2,500 each to businesses (awarded through regional contractors).

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Attachment 1
January 12, 2023, Economic Development Report
3 Outreach by Newark’s Economic Development team of Spectrum and City staff continues to encourage as many business owners as possible to submit grant applications. The team has made additional efforts to reach 16 ECGP owners who continue to owe back rent (Part 1, above,) and Old Town area business owners.

Data for the Alameda County Small Business Recovery Grant shows 396 Newark business owners applied:i An estimated:
259 Newark store-based businesses applied for grants of $10,000 each 139 Newark home-based businesses applied for grants of $5,000 each These estimates include applications for $10,000 grants submitted by about 19 Old Town area owners and 16 ECGP recipients still owning back rent. This grant is awarded by lottery, so it is unclear what portion of Newark applicants will be awarded grants. The total grant value to Newark remains uncertain as this staff report is prepared.

These three grant programs bring recovery funding to Newark at no cost to the city and provide muchneeded assistance to our small business community. These dollars reached Newark businesses only by the efforts and commitment of our Economic Development team who perform continued outreach and encouragement.

In addition to the grant value itself, an estimated $.41 of every dollar gained by local businesses stays local and creates more local spending—another economic benefit to the entire community.

In November 2022, staff learned that the District 2 ARPA Cash Grant is still accepting applications from small businesses, and the California State Micro Business Grant may offer another round of funding in January. Therefore, the Economic Development team will encourage applications and inform Council when we can obtain more financial details.

In addition to the critical monetary value, positive responses to outreach from business owners show the value and significance of our public relations and community efforts.

Digital Marketing and Financial Resiliency Workshops Provided in August and December 2022 ECGP recipients ranked financial assistance as their greatest need and increasing customers and customers' purchases as their second priority. While the ECGP and three recent grants provided financial assistance, the Economic Development team turned to the need increasing customer base.

Working with Ohlone College Career Center, Spectrum developed a digital marketing, instructional workshop series through Yelp and Google pages, websites, and e-mail marketing. The workshop series is described in an Attachment (list of all workshops since 2020).

In December 2022, the Economic Development team offered the Financial Resiliency Workshop in response to popular request. It had been ten months since the workshop was required for ECGP grant applicants, thus providing a big financial incentive to attend. The December 2022 attendees had no financial incentive. However, 28 owners attended in December 2022 without financial incentive, 58% were attending for the second time, and all reported that it was worth taking Financial Resiliency twice and they want to use the concepts in their businesses. Owners’ request for the Financial Resiliency Packet Page 155
Attachment 1
January 12, 2023, Economic Development Report
4 workshop and their participation without a pending grant award may indicate emerging interest to improve business profitability – a mindset necessary for increased business sustainability, and one goal of the Economic Development team’s outreach.

Conclusion, Small Business Part 2
Outreach to encourage grant applications, the pilot digital marketing workshop series, and the Financial Resiliency workshop was responsive to businesses requests and proved effective. Spectrum and staff used our business database to target and reach business owners who were most likely to be eligible and to benefit from the training, all designed to help businesses enlarge capacity and increase measurable financial gains. The goal is to develop more sustainable and better-equipped businesses who can quickly, effectively respond when the next earthquake or the next emergency confronts our community.

Like the ECGP in Small Business Part 1, the new grants and the workshops show progress and deliver results that last beyond the pandemic and contribute value to Newark small businesses and the city.

Part 3. Old Town
Two developments advanced work with Old Town Businesses:

First, new grants listed in Small Business Part 2, above, provided financial incentives for Old Town business owners to listen to, interact with, and get to know the Economic Development team.

Second, a Newark resident who is bilingual Spanish/English volunteered as liaison with Spanishspeaking Old Town business owners 2 mornings a week. She has made new contacts, reinforced existing contacts, and reached Old Town community members who do not have storefronts.

As a result of this increased outreach, participation in the last five months includes:
• 19 Old Town-area owners applied for the Alameda County Small Business Recovery Grant • Two owners participated in the Digital Marketing Workshop series • Six owners attended the Financial Resiliency Workshop in December 2022 • Two owners met with a Spectrum Small Business Advisor Old Town goals for 2023 include:
• Continuing discussions with owners about business recovery and resiliency • Gathering benchmark data on businesses to measure improved sustainability over time • Communicating with the Promotores to increase awareness of small business services throughout the Spanish-speaking community
• Continuing to gather information that informs marketing strategies to increase awareness, customer attraction, and sales
• Building business owner–city relationships in anticipation of the Thornton Avenue streetscape improvement project
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Attachment 1
January 12, 2023, Economic Development Report
5 Conclusion, Small Business Part 3
Relationships between the Economic Development team and Old Town business owners are slowly developing, strengthened by a bilingual liaison, and aided by the Promotores network. Economic Development team outreach and assistance will continue.

Part 4. Spectrum Small Business Services Consulting Services Agreement (Spectrum CSA).

The recommended Fifth Amendment of the Spectrum CSA is slated for a January 2023 council agenda. It proposes to continue small business services with a focus on Old Town where Specific Plan work is beginning and on building small business capacity and resilience city-wide. The work will continue to emphasize relationship-building among business owners and with the City of Newark through Spectrum and staff. (This concludes the four-part Small Business Update.) Policy from the Economic Development Element
The Small Business Services and investment in Old Town are aligned with the following Economic Development Element policies in the adopted General Plan:

Consider programs to improve facades, signage, landscaping, lighting, and streetscapes, as funds and resources allow.

ED-4.4 Small and Disadvantaged Businesses. Support the continued growth of small and disadvantaged businesses through local, state, and federal programs and incentives.

ED-5.7 Cultural Diversity as an Amenity. Leverage Newark’s cultural diversity and large international populations as attractions that draw quality restaurants, businesses, and visitors to the city.

ED-5.F Business Recognition. Continue efforts with the Chamber of Commerce to honor and recognize outstanding Newark businesses and to promote events and social gatherings where local businesses can network and gather.
i
Data is available from the administrators of the Alameda County Small Business Recovery Grant, listed first of the three grant programs. Therefore, staff could confirm the number of grants submitted by Newark businesses. Staff has asked for comparable information from the two other grant administrators and hope to have that during first quarter 2023.

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Proposa

FOLLOW UP SURVEY RESULTS

OF ECGP GRANT RECIPIENTS
Survey Conducted: March-September 20222
Report Prepared: October 2022
Sponsored by the City of Newark, CA
Michael Cohen, CEO
Spectrum Small Business Services, LLC

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pg. 1
Attachment 2
Economic Recovery Follow Up Survey of ECGP Grant Recipients (Submitted in response to city council request from March 2022) From December 2021 to February 2022, the city awarded grants under the Exceptional COVID Grant Program (ECGP). This initiative utilized ARPA funds to provide grants to small businesses in Newark that were hit exceptionally hard by the pandemic. Each of the 82 recipients had experienced extreme revenue losses, and most were completely shut down by state mandate for periods exceeding six months. The businesses were primarily personal service providers including cosmetologists, barbers, personal trainers, day care centers, and dry cleaners. The follow up survey was conducted from March to September 2022.

Recap of Grantees of the ECGP
• 82 grants were awarded
• $1.44 Million dollars in total awards
• Average award was $17,611
• Average loss of revenue from 2019 to 2020 was over $140,000 • Average amount of back rent owed was $31,221
• 86% had been paying business rent from their personal accounts • All grantees completed the Financial Resiliency 4-hour course • 60 grantees responded to ECGP Follow-up Survey, 73% of the grantees
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pg. 2
The Follow Up Survey Results (n=60)
We wanted to find out what has happened since businesses received ECGP grants. Did the grants accomplish what was intended? Did they provide the businesses with the ability to reduce debt, have greater resiliency and improve their sustainability? Here are some of the results:

1. Do you currently owe any unpaid rent because of the pandemic? Yes 16 27%
No 44 73%
There is a decrease in the total back rent owed in the amount of $732,977* which is 57% of total back rent before ECGP. 41 out of 82 grantees owed back rent before the ECGP, and 25 paid off their back rent in full. Based on these results, approximately half of the grant money was used to pay back rent.
(*$1,279,639 Minus $546,662)
Owed Back Rent Before ECGP
Total Merchants 41
Total Amount $1,279,639
Average Amount $31,211
Still Owed Back Rent after ECGP
Total Merchants 16
Timeline Before ECGP After ECGP
Total Amount $642,310 $546,662
Average Amount $42,821 $34,166
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pg. 3

2. Was receiving the grant critical to allowing you to stay in business? Absolutely 51 85%
Probably 9 15%
Not Really 0 0

3. How did you use the funds from ECGP?
Categories Expected
Use
(Stated in the
application)
Actual
Use
(Stated in the
follow up
survey)
To pay back rent 55 33
To pay for goods/inventory 32 26
To pay current rent 16 24
To repay other debt 15 20
To pay employees 13 17
To pay for marketing 11 8
(Top responses. Respondent could choose more than one category) The numbers shown in the table above help to identify trends versus hard data. They indicate that the grantees intended to use the grant funding mostly for back rent. In reality, they spent more money on current rent than they had anticipated. In addition, they may have underestimated how much debt they had accumulated in addition to back rent. Therefore, they ended up using more of the grant funds than expected to pay off operational debts. Lastly, the data also shows that the grantees hoped to have extra money Packet Page 161
pg. 4
remaining for marketing, but many of them didn’t have any funds left over.

4. How long do you think you can stay in business now?
More than another year 46 77%
At least another year 12 20%
At least another 6 months 0 0%
Less than 6 months 2 3%

5. Comparted to last year, my business is:

Doing much better 16 27%
Doing a little better 33 55%
Doing about the same 5 8%
Doing a little worse 3 5%
Doing a lot worse 3 5%
Future Training

6. I would want to attend the following FREE workshops/advising sessions if they were available. (Choose up to two)
How to find new sources for sales for personal service businesses 36 Take the Financial Resiliency workshop again 16
Analyze my financial statements individually 9
How to create and use a spreadsheet 8
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pg. 5
Demographics of Follow Up Survey Respondents
Is the marketplace changing?

7. Compared to last year…
Question #1 Count %
Most customers are spending about the same per
visit
24 40%
Most customers are spending less per visit 19 32%
Most customers are spending more per visit 17 28%
Questions #2
My customers are generally the same people 24 40%
About half of my customers are different 24 40%
Most of my customers are different 12 20%
Question Answer Response Percentage
Gender
Male
Female
20 40
33%
67%
Veteran Status None 60 0
Disability Status None 60 0
Years in Business
1-2 years
3-4 years
5-10 years
10 years +
5 13
17 25
8%
22%
28%
42%
Covid Related Grant
Received
Less than $10k
$10k – 20k
$20k – 30k
$30k – 50k
$50k – 100k
6 24
20 9
1 10%
40%

33.3%
15%

1.7%
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pg. 6
It is difficult to identify trends from this data. While overall business might still be below pre-pandemic levels, the customers continue to change over time and spending per customer has remained fairly constant.

Conclusions
While it is impossible to know how many businesses would have perished this year were it not for the grant, it clearly had a significant effect on the recipients. The vast majority (85%) said it absolutely made a critical difference to them.

In situations where there was unpaid rent, this was the most common use for the funds with 27% of the respondents still dealing with residual unpaid rent now.

Fortunately, 82% of the respondents feel their business is doing better than last year which is a hopeful sign. What’s even more encouraging is that 97% expect to stay in business for at least another year if not more.

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Economic
Development
Report to
Council
January 12, 2023
Anne Stedler, Economic Development Manager
Michael Cohen, Owner, Spectrum Small
Business Services
Packet Page 165
Three Big Ideas
Strong Bay
Area
Economy
Grants
County & State
Build Capacity
&
Resiliency
1 2 3
Industry Small Business All
Packet Page 166
Strategic & Tactical Functions
Create
&
Capture
Opportunities
Stay Proactive
&
Leverage
Industry
Forces
Build
Relationships
&
Synergies
1 2 3
Packet Page 167
Strategic & Tactical Functions
Address
Retail
Vacancies
Facilitate
Hotel
Recovery
Compete:

Development
&
Building
Permits
1 2 3
Small
Business
Support
Chamber
Agreement
4 5
Packet Page 168
Industrial Inventory
2021

9.1 Million

3.2%
2022

9.1 Million

1.8%
Building Area & Vacancy Rate - Year End
Strong
Performance
Silicon Valley Expands to Newark
Packet Page 169
Industrial Inventory
2022
Gains
1M sf
Approved
2018
Fully Leased
2022
160,000 sf
Lucid
Motors
300,000 sf
Prologis
Applied
Central Ave
Completed New Buildings
Silicon Valley Expands to Newark
Proposed
Building
Packet Page 170
Hotel Recovery- 2023
Restore
Hotel Revenue
& TOT
Increase
Business
Travel
December
Met with
Leadership
Hotel
Work Plan
Goal
Packet Page 171
Retail Vacancies - 2023
Retail
Properties are
Assets
Amenity
Identity
Taxes
Legal
Research
Done
Options
Constraints
& Costs
Work Plan
2023
Recruitment
Solutions
Concerns
Long-time
Vacancies
Public
Requests
Economy
Concerns → Solutions
Packet Page 172
Chamber “Re-Start” - 2023
Chamber
Relevancy
Economic
Development
Stakeholder
Interview
Reports
Identify
Business
Concerns
CEO
Search
Underway
Selection
First Quarter
2023
Servant Leader Concept
Packet Page 173
Small Businesses
Fear of Business
Failure
Unmanageable
Debt
Need for
Cash
Ineffective
Marketing
Major Risks 2021 - 2022
Packet Page 174
Small Businesses, 2022 Results
Expect to Stay in Business
Major Risks Reduced
Before After
# Merchants 41 16
Debt $ $1.3 M $.5 M
% Merchants 100%
Reduced Debt
Packet Page 175
Alameda
County
Recovery
Grant
$10,000 &
$5,000
Lottery
Alameda
County
District 2
ARPA Cash
Grant
$5,000
State of
California
Micro Business
Grant
$2,500
More One-Time Grants
Small Businesses Grants, 2022
Packet Page 176
County & State Grants – Merchants Reponses
“This money will be the down payment for an ice cream bar machine, and I’ll make my “paletas” in-store instead of brining them from my San Jose store. That’ll employee one or two more people in Newark.”
“$10,000 will help me pay off more back rent.

Thank you so much!”
Small Businesses, 2022 Grants
Packet Page 177
Small Businesses, 2022 Results
Homework Sessions
Packet Page 178
Small Business Marketing, 2022 Results
Merchant Responses
“The student volunteer helping me is good. Now I know how to post, and how to talk about my business on the web.”
“I never understood the internet. My son makes Amazon orders for me because I can’t. But now, I can post my own photos and messages on Yelp!” “A new customer came in today because she saw my Yelp page! My marketing is working!”
Packet Page 179
Small Businesses 2023 Risks
Profits
Below
Pre-Pandemic
Levels
Costs
increases
Food
Supplies
1 2

CURRENT MARKET THREATS
Employee
shortage
Higher costs
3 Monitor, Advising, Workshops
Packet Page 180
Economic
Development
Report to
Council
Q & A
Comments
Anne Stedler, Economic Development Manager
Michael Cohen, Spectrum Small Business Services
Packet Page 181

Newark City CouncilJanuary 12, 2023

Newark City Council
January 12, 2023