Agenda packet — Newark City Council, December 14, 2023 (part 3 of 5)

every four new jobs is filled by a worker down-sized from a declining industry and who already lives locally.

Step 3 - Adjustment from Employees to Employee Households This step (Table C-1) converts the number of employees to the number of employee households, recognizing that there is, on average, more than one worker per household, and thus the number of housing units in demand for new workers is reduced. The workers-perworker-household ratio eliminates from the equation all non-working households, such as retired persons, students, and those on public assistance. The County average of 1.61 workers per worker household (from the U.S. Census Bureau 2010-2012 American Community Survey) is used for this step in the analysis. The number of jobs is divided by 1.61 to determine the number of worker households. This ratio is distinguished from the overall number of workers per household in that the denominator includes only households with at least one worker. If the average number of workers in all households were used, it would have produced a greater demand for housing units. The 1.61 ratio covers all workers, full and part time.

Step 4 - Occup ational Distribution of Employees
The occupational breakdown of employees is the first step to arrive at income level. The output from the IMPLAN model provides the number of employees by industry sector, shown in Table B-1. The IMPLAN output is paired with data from the Department of Labor, Bureau of Labor Statistics May 2012 Occupational Employment Survey (OES) to estimate the occupational composition of employees for each industry sector.

Step 4a - Translation from IMPLAN Industry Codes to NA/CS Industry Codes The output of the IMPLAN model is jobs by industry sector using IMPLAN's own industry classification system which consists of 440 industry sectors. The OES occupation data uses the North American Industry Classification System (NAICS). Estimates of jobs by IMPLAN sector must be translated into estimates by NAICS code for consistency with the OES data.

The NAICS system is organized into industry codes ranging from two- to six-digits. Two-digit codes are the broadest industry categories and six-digit codes are the most specific. Within a two-digit NAICS code, there may be several three-digit codes and within each three digit code, several four-digit codes, etc. A chart published by IMPLAN relates each IMPLAN industry sector with one or more NAICS codes, with matching NAICS codes ranging from the two-digit level to the five-digit level. For purposes of the nexus analysis, all employment estimates must be aggregated to the four digit NAICS code level to align with OES data which is organized by fourdigit NAICS code. For some industry sectors, an allocation is necessary between more than one four-digit NAICS code. Where required, allocations are made proportionate to total employment at the national level from the OES.

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The table below illustrates analysis Step 4a in which employment estimates by IMPLAN Code are translated to NAICS codes and then aggregated at the four digit NAICS code level. The examples used are Child Day Care Centers and Food and Drinking Places. The process is applied to all the industry sectors.

Illustration of Model Step 4a.

A. IMPLAN Output by 8. Link to Corresponding
IMPLAN Industry Sector NAICS Code
Jobs IMPLAN Sector Jobs NAICS Code

1.2 399 - Child day 1.2 6244 Child day
care services care services

9.5 413 - Food and 9.5 722 Food and
Drinking Places Drinking Places
C. Aggregate at 4-Digit NAICS Code Level
% Total
Jobs Employment

1.2 100%

8.60 90%

0.57 6%

0.34 4%
4-Diqit NAICS
6244 Child day care
services
7225 Restaurants
and Other Eating
Places
7223 Special Food
Services
7224 Drinking
Places (Alcoholic
Beveraqes)
Step 4b - Apply OES Data to Estimate Occupational Distribution Employment estimates by four-digit NAICS code from step 4a are paired with data on occupational composition within each industry from the OES to generate an estimate of employment by detailed occupational category. As shown on Table C-1, new jobs will be distributed across a variety of occupational categories. The three largest occupational categories are office and administrative support (16%), sales (15%), and food preparation and serving (14%-15%). Step 4 of Table C-1 indicates the percentage and number of employee households by occupation associated with 100 market rate units.

Step 5 - Estimates of Emplo yee Households Meeting the Lower Inc ome Definitions In this step, occupations are translated to employee incomes based on recent Alameda County wage and salary information from the California Employment Development Department (EDD).

The wage and salary information summarized in Appendix 2 Tables 2, 4, and 6 provided the income inputs to the model.

For each occupational category shown in Table C-1, the OES data provides a distribution of specific occupations within the category. For example, within the Food Preparation and Serving Category, there are Supervisors, Cooks, Bartenders, Waiters and Waitresses, Dishwashers, etc. In total there are over 100 detailed occupation categories included in the analysis as shown Keyser Marston Associates, Inc.
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in Appendix 2, Tables 2, 4, and 6. Each of these over 100 occupation categories has a different distribution of wages which was obtained from EDD and is specific to workers in Alameda County as of 2013.

For each detailed occupational category, the model uses the distribution of wages to calculate the percent of worker households that would fall into each income category. The calculation is performed for each possible combination of household size and number of workers in the household. For households with more than one worker, individual employee income data was used to calculate the household income by assuming multiple earner households are, on average, formed of individuals with similar incomes.

The table below illustrates Step 5 as applied to food preparation and serving workers. Annual compensation for food preparation and serving workers in Alameda County as of 2013 is distributed9 around a mean of $21,500. For households with one worker, 100% are estimated to qualify as Very Low. For households with two or more workers between 37% and 100% are estimated to qualify as Very Low depending on the household size. For households with three or more workers, only larger households with than six or more people are estimated to qualify as Very Low.

Step 5 Illustration for Food Preparation and Serving Worker Households Percent Qualifying as Very Low for Each Possible Household Size I No. of Workers Combination Percent of Worker Households That Would Qualify as Very Low For Each Possible Combination of Household Size and No. of Workers Applying 2014 Income Limits for Alameda County
HH Size 1 Person 2 Person 3 Person 4 Person 5 Person 6 Person Limit $32,750 $37,400 $42,100 $46,750 $50,500 $54,250
No. Workers
in Household
1 100% 100% 100% 100% 100% 100%
2 N/A 37% 61% 77% 100% 100%
3 or more10 N/A N/A 0% 0% 0% 21%
The step illustrated above is repeated around 300 times for each of the over 100 detailed occupations and at each of the three affordable income tiers. At the end of Step 5, the nexus model has established a matrix indicating the percentages of households that would qualify in the affordable income tiers for every detailed occupational category and every potential combination of household size and number of workers in the household. 9 In addition to the mean compensation, EDD reported 25th , 50th
, and 75th percentile compensations are utilized.
1 ° Census data aggregates households with three or more workers; therefore, a corresponding aggregation is necessary for purposes of the analysis.

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Step 6 - Distribution of Household Size and Number of Workers In this step, the model examines the demographics of Alameda County in order to develop probability factors for each potential combination of household size and number of workers.

The table below presents the probability factors used in the model. The factors represent the probability that a worker is a member of a household of a given size and number of workers.

Step 6: Probability Factors for Combinations of Number of Workers and Household Size Household Size (Persons)
1 2 3 4 5 6+
No. Workers in Household
1 0.190781 0.148746 0.084114 0.060346 0.027678 0.023864 2 N/A 0.147885 0.095065 0.071567 0.032824 0.028302
3 or more N/A N/A 0.024071 0.034927 0.016019 0.013812
Note: probability factors sum to 1.00000
Probability factors are specific to Alameda County and are derived from the 2010 - 2012 American Community Survey. Application of these probability factors accounts for the following:
■ Households have a range in size and a range in the number of workers. ■ Large households generally have more workers than smaller households.

The result of Step 6 is a distribution of Alameda County working households by number of workers and household size.

Step 7 - Estimate of Number of Households that Meet Size and Income Criteria Step 7 is the final step to calculate the number of worker households meeting the size and income criteria for the three affordability tiers. The calculation combines the matrix of results from Step 5 on percentage of worker households that would meet the income criteria at each potential household size / no. of workers combination, with Step 6, the probability of a worker household having a given household size / number of workers combination. The result is the percentage of households that fall into each affordability tier. The percentages are then multiplied by the number of households from Step 3 to arrive at number of households in each affordability tier.

Table C-2 shows the result after completing Steps 5, 6, and 7. The results shown are for the under 50% of AMI category. The methodology is repeated for each of the three income tiers, resulting in a total count of worker households per 100 units.

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Summary Findings
Table C-3 indicates the results of the analysis for each of the residential prototypes. The table presents the number of households generated in each affordability category and the total number over 120% of Area Median Income.

The findings in Table C-3 are presented below. The table shows the total demand for affordable housing units associated with 100 market rate units.

New Worker Households by Income Level per 100 Market Rate Units Single Family I Single Family
Lame Lot I Small Lot Townhome Condo Apartment
Very Low (Under 50% AMI) 13.2 11.7 9.5 10.2 6.7
Low (50%-80% AMI) 7.4 6.5 5.3 5.7 3.7
Moderate {80%-120% AMI) 7.2 6.3 5.2 5.5 3.7
Total, Less than 120% AMI 27.8 24.5 20.0 21.4 14.1
Greater than 120% AMI 6.3 5.7 4.7 5.0 3.4
Total, New Households 34.1 30.2 24.7 26.4 17.5
Housing demand for new worker households earning less than 120% of AMI ranges from 27.8 units per 100 market rate units for large lot Single Family units, to 14.1 units per 100 market rate units for apartments. Housing demand is distributed across the lower income tiers with the greatest number of households in the under 50% of AMI tier. The finding that the jobs associated with consumer spending tend to be low-paying jobs where the workers will require housing affordable at the lower income levels is not surprising. As noted above, direct consumer spending results in employment that is concentrated in lower paid occupations including food preparation, administrative, and retail sales.
lnclusionary Percentages Supported
The analysis findings identify how many lower income households are generated for every 100 market rate units. These findings are adjusted to a supported inclusionary percentage which represents the percentage of units provided on-site within a project that would fully mitigate the affordable housing impacts as documented in this nexus analysis. While the City is considering elimination of its existing inclusionary program in favor housing impact fees, these percentages are never-the-less provided for additional information which may potentially be useful; for example, in making required findings if affordable units are proposed to be included within a project as an alternative to payment of the Housing Impact Fee.

The percentages are calculated including both market rate and affordable units (for example, 25 affordable units per 100 market rate units translates to a project of 125 units; 25 affordable units out of 125 units equals 20%).

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The inset table below presents the results of the analysis, drawn from Table C-4. Each tier is cumulative, or inclusive of the tiers above. The analysis supports maximum inclusionary percentages between 12.4% and 21.7%, depending on the prototype.

Cumulative lnclusionary Percentage Supported by Nexus Analysis Very Low (Under 50% AMI)
Low (50%-80% AMI)
Moderate (80%-120% AMI)
Single Family Single Family
I Larqe Lot I Small Lot Townhome

11.6%

17.0%

21.7%

10.5%

15.4%

19.7%

8.7%

12.9%

16.7%
Condo Apartment

9.3% 6.3%

13.7% 9.4%

17.6% 12.4%
The percentages shown above are not recommended inclusionary percentages. They are included for purposes of additional information relative to the alternative means of compliance provisions of the proposed Housing Impact Fee Ordinance which requires certain findings in connection with approval of a proposed alternative means of compliance.

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TABLE C-1

NET NEW HOUSEHOLDS AND OCCUPATION DISTRIBUTION

EMPLOYEE HOUSEHOLDS GENERATED

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Prototype 1 : Prototype 2: Prototype 3: Prototype 4: Prototype 5:

SFD / Large Lot SFD / Small Lot Townhome Condo Rental
Step 1 - Employees ' 73.1 64.8 53.0 56.6 37.5
Step 2 -Adjustment for Changing Industries (25%) 54.8 48.6 39.7 42.5 28.1 Step 3-Adjustment for Number of Households (1.61)' 34.1 30.2 24.7 26.4 17.5 Step 4 -Occupation Distribution 3
Management Occupations 4.1% 4.0% 4.0% 4.0% 4.1%
Business and Financial Operations 3.6% 3.5% 3.5% 3.5% 3.5% Computer and Mathematical 1.2% 1.2% 1.2% 1.2% 1.2%
Architecture and Engineering 0.3% 0.3% 0.3% 0.3% 0.3%
Life, Physical, and Social Science 0.4% 0.3% 0.3% 0.3% 0.3% Community and Social Services 2.0% 2.0% 2.0% 2.0% 1.9%
Legal 0.6% 0.6% 0.6% 0.6% 0.6%
Education, Training, and Library 4.6% 3.3% 3.3% 3.3% 2.8% Arts, Design, Entertainment, Sports, and Media 1.8% 1.6% 1.6% 1.6% 1.6% Healthcare Practitioners and Technical 7.4% 8.3% 8.3% 8.3% 8.7% Healthcare Support 4.3% 4.8% 4.8% 4.8% 5.0%
Protective Service 1.3% 1.3% 1.3% 1.3% 1.3%
Food Preparation and Serving Related 14.4% 15.1% 15.1% 15.1% 15.2% Building and Grounds Cleaning and Main!. 6.0% 5.8% 5.8% 5.8% 5.8% Personal Care and Service 5.7% 5.5% 5.5% 5.5% 5.3%
Sales and Related 15.3% 15.1% 15.1% 15.1% 14.6%
Office and Administrative Support 15.5% 15.6% 15.6% 15.6% 15.8% Farming, Fishing, and Forestry 0.1% 0.1% 0.1% 0.1% 0.1% Construction and Extraction 0.8% 0.8% 0.8% 0.8% 0.8%
Installation, Maintenance, and Repair 3.5% 3.6% 3.6% 3.6% 3.8% Production 1.7% 1.7% 1.7% 1.7% 1.7%
Transportation and Material Moving 5.5% 5.4% 5.4% 5.4% 5.4% Totals 100.0% 100.0% 100.0% 100.0% 100.0%
Management Occupations 1.4 1 2 1.0 1.1 0.7
Business and Financial Operations 1.2 1.1 0.9 0.9 0.6
Computer and Mathematical 0.4 0.4 0.3 0.3 0.2
Architecture and Engineering 0.1 0.1 0.1 0.1 0.1
Life, Physical, and Social Science 0.1 0.1 0.1 0.1 0.1
Community and Social Services 0.7 0.6 0.5 0.5 0.3
Legal 0.2 0.2 0.1 0.2 0.1
Education, Training, and Library 1.6 1.0 0.8 0.9 0.5
Arts, Design, Entertainment, Sports, and Media 0.6 0.5 0.4 0.4 0.3 Healthcare Practitioners and Technical 2.5 2.5 2.1 2.2 1.5 Healthcare Support 1.4 1.5 1.2 1.3 0.9
Protective Service 0.4 0.4 0.3 0.3 0.2
Food Preparation and Serving Related 4.9 4.6 3.7 4.0 2.7 Building and Grounds Cleaning and Main!. 2.0 1.7 1.4 1.5 1.0 Personal Care and Service 2.0 1.7 1.4 1.5 0.9
Sales and Related 5.2 4.6 3.7 4.0 2.6
Office and Administrative Support 5.3 4.7 3.9 4.1 2.8
Farming, Fishing, and Forestry 0.0 0.0 0.0 0.0 0.0
Construction and Extraction 0.3 0.2 0.2 0.2 0.1
Installation, Maintenance, and Repair 1.2 1.1 0.9 0.9 0.7 Production 0.6 0.5 0.4 0.4 0.3
Transportation and Material Moving il ti Ll .11 0.9
Totals 34.1 30.2 24.7 26.4 17.5
Notes:
1 Estimated employment generated by expenditures of households within 100 prototypical market rate units. Employment estimates based on economic model, IMPLAN.
' Adjustment from number of workers to households using average of 1.61 workers per worker household derived from the U.S. Census American Community 3 See Appendix 2, Tables 1 through 6 for additional information on Major Occupation Categories.

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VERY LOW-INCOME EMPLOYEE HOUSEHOLDS1 GENERATED

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Per 100 Market Rate Units
Prototype 1: Prototype 2: Prototype 3: Prototype 4: Prototype 5:

SFD / Large Lot SFD / Small Lot ifownhome Condo Rental
Step 5 & 6 - Very Low Income Households (under 50% AMI) within Major Occupation Categories 2 Management 0.01 0.01 0.01 0.01 0.00
Business and Financial Operations 0.01 0.01 0.01 0.01 0.00 Computer and Mathematical
Architecture and Engineering
Life, Physical and Social Science
Community and Social Services
Legal
Education Training and Library 0.27 0.17 0.14 0.15 0.09 Arts, Design, Entertainment, Sports, & Medi,
Healthcare Practitioners and Technical 0.02 0.02 0.01 0.02 0.01 Healthcare Support 0.56 0.56 0.45 0.49 0.33
Protective Service
Food Preparation and Serving Related 3.57 3.33 2.72 2.91 1.94 Building Grounds and Maintenance 0.88 0.77 0.63 0.68 0.45 Personal Care and Service 1.18 1.00 0.82 0.87 0.57
Sales and Related 2.68 2.32 1.90 2.03 1.29
Office and Admin 1.37 1.23 1.00 1.07 0.71
Farm, Fishing, and Forestry
Construction and Extraction
Installation Maintenance and Repair 0.17 0.16 0.13 0.14 0.09 Production
Transportation and Material Moving 0.81 0.70 0.57 0.61 0.40 Very Low Income Households - Major Occupatior 11.53 10.27 8.39 8.97 5.88 Very Low Inc. Households1 - all other occupation: 1.64 1.42 1.16 1.24 0.81 Total Very Low Income Households1 13.17 11.69 9.55 10.21 6.69 1 Includes households earning from zero through 50% of Alameda County Area Median Income. 2 See Appendix 2 Tables 1 through 6 for additional information on Major Occupation Categories. Note that the model places individual employees into households. Many households have multiple income sources and therefore household income is higher than the wages shown in Appendix 2 tables 2, 4, and 6. The distribution of the number of workers per worker household and the distribution of household size are based on American Community Survey data.

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IMPACT ANALYSIS SUMMARY

EMPLOYEE HOUSEHOLDS GENERATED

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA

RESIDENTIAL UNIT DEMAND IMPACTS
PER 100 MARKET RATE UNITS
Prototype 1 : Prototype 2: Prototype 3: Prototype 4: Prototype 5:

Number of New Households 1 SFD / Large Lot SFD / Small Lot I'ownhome Condo Rental Under 50% Area Median Income 13.2 11.7 9.5 10.2 6.7
50% to 80% Area Median Income 7.4 6.5 5.3 5.7 3.7
80% to 120% Area Median Income 7.2 6.3 5.2 5.5 3.7
Subtotal through 120% of Median 27.8 24.5 20.0 21.4 14.1 Over 120% Area Median Income 6.3 5.7 4.7 5.0 3.4
Total Employee Households 34.1 30.2 24.7 26.4 17.5
Percent of New Households 1
Under 50% Area Median Income 39% 39% 39% 39% 38%
50% to 80% Area Median Income 22% 21% 21% 21% 21%
80% to 120% Area Median Income 21% 21% 21% 21% 21%
Subtotal through 120% of Median 81% 81% 81% 81% 81%
Over 120% Area Median Income 19% 19% 19% 19% 19%
Total Employee Households 100% 100% 100% 100% 100%
Notes
1 Households of retail, education, healthcare and other workers that serve residents of new market rate units.

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INCLUSIONARY REQUIREMENT SUPPORTED

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Prototype 1:

SFD / Large Lot
Supported lnclusionary Requirement
Per 100 Market Rate Units - Cumulative Through
50% OF MEDIAN INCOME
80% OF MEDIAN INCOME
120% OF MEDIAN INCOME

13.2 Units

20.5 Units

27.8 Units
Prototype 2:

SFD/ Small
Lot

11.7Units

18.2 Units

24.5 Units
Supported lnclusionary Percentage - Cumulative Through 1 50% OF MEDIAN INCOME
80% OF MEDIAN INCOME
120% OF MEDIAN INCOME
Notes:

11.6% 10.5%

17.0% 15.4%

21.7% 19.7%
Prototype 3:
irownhome

9.5 Units

14.8 Units

20.0 Units

8.7%

12.9%

16.7%
Prototype 4: Prototype 5:

Condo Rental

10.2 Units 6.7 Units

15.9 Units 10.4 Units

21.4 Units 14.1 Units

9.3% 6.3%

13.7% 9.4%

17.6% 12.4%
1 Calculated by dividing the supported number of affordable units by the total number of units (supported affordable units + 100 market rate units).

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This section takes the conclusions of the previous section on the number of households in the lower income categories associated with the market rate units and identifies the total cost of assistance required to make housing affordable. This section puts a cost on the units for each income level to produce the "total nexus cost." This is done for each of the prototype units.

A key component of the analysis is the size of the gap between what households can afford and the cost of producing new housing in Newark, known as the 'affordability gap.' Affordability gaps are calculated for each of the three categories of area median income: Very Low (under 50% of median), Low (50% to 80%), and Moderate (80% to 120%). The following summarizes the analysis of mitigation cost which is based on the affordability gap or net cost to deliver units that are affordable to worker households in the lower income tiers. Detailed affordability gap calculations are presented in Tables 0-1 through 0-3 at the end of this section.

City Assisted Affordable Unit Prototypes
For estimating the affordability gap, there is a need to match a household of each income level with a unit type and size according to governmental regulations and City practices and policies.

The analysis assumes that the City will assist households earning between 80% and 120% of Area Median Income with ownership units. The prototype affordable unit should reflect a modest unit consistent with what the City is likely to assist and appropriate for housing the average moderate income worker household, which in the case of Newark is assumed to be a three person household in a two-bedroom townhome unit (for reference, the average household size in Newark is 3.3 persons and for Alameda County the average is 2.8 based on the 2010-2012 American Community Survey). The analysis assumes households earning less than 80% of Area Median Income will be assisted in rental units. The analysis uses a two bedroom affordable rental prototype.

For the purposes of estimating the affordability gaps, we do not assume additional sources of affordable housing financing such as the federal and state low income housing tax credit program. While many affordable housing developments use a wide array of funding sources including tax credits, it is not assured that these sources will be available in the future.

Accessing these sources is also highly competitive due to the limited supply and the amount of funding that tax credits can generate can fluctuate widely.

Development Costs
KMA prepared an estimate of total development cost for a typical two bedroom affordable rental unit (inclusive of land, all fees and permits, financing and other indirect costs) based on a review of development pro formas for recent affordable and market rate rental developments, comparable land sale data, and construction cost data sources such as RS Means. It is noted that the construction costs assume payment of prevailing wages, which would typically be Keyser Marston Associates, Inc.
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required in publicly subsidized affordable housing projects. On this basis, KMA concluded that on average, the new affordable rental units would have a total development cost per unit of $310,000.

For ownership units, total development costs (including profit) under normal market conditions, is equal to the market rate sales price. Since there are no new or recent townhome projects selling in Newark, KMA estimated the market sales price for a typical two bedroom, 1,300 square foot townhome to be $500,500 unit ($385 per square foot) based on data developed in the market survey.

Development Costs
Income Group Unit Tenure I Type Development Cost
Under 50% AMI Rental $310,000
50% to 80% AMI Rental $310,000
80% to 120% AMI Ownership $500,500
Unit Values
For affordable ownership units, unit values are the affordable purchase prices. Affordable purchase prices for ownership units are calculated based on the purchase price affordable to a household earning 110% of the Alameda County area median income. For a two bedroom unit, KMA calculated the affordable sales price as $331,500. Details of the calculation are presented in Table D-2.

For rental units, unit values are based upon the Net Operating Income (NOi) generated by the units at the restricted rents and the resulting investment supported. For Low-Income households, affordable rents are based on households earning 60% of the Alameda County median, and for Very Low Income households, rents are based on households earning 50% of median per the California Health and Safety Code standards. The NOi is computed based on the affordable rents less vacancy and operating and maintenance expenses. The NOi is then capitalized at a target return on investment of 7.5% to estimate the supported investment for the project. It is noted that the 7.5% return is higher than would be expected for a typical market rate apartment project because rent growth in affordable housing projects is significantly constrained by increases in median incomes, which do not tend to keep pace with market rent growth. On this basis, KMA estimated the value of the Low Income rental unit at $96,000 and the Very Low Income rental unit at $70,000.

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Maximum Affordable Sales Prices and Rent Levels
Unit Tenure I Household Maximum Month';' Unit Values I
Income Group Type Size Housing Costs 1 Sales Price
Under 50% AMI Rental 3 persons $1,0521 Month $70,000
50% to 80% AMI Rental 3 persons $1,262 I Month $96,000
80% to 120% AMI Ownership 3 persons $2,700 I Month $331,500 Affordability Gap
The affordability gap is the difference between the cost of developing a residential unit and the unit values at the affordable rents or sales prices.

The resulting affordability gaps are as follows:

Affordability Gap Calculation
Unit Value Development
I Sales Price Cost
Affordable Rental Units
Very Low (Under 50% AMI) $70,000 $310,000
Low (50% to 80% AMI) $96,000 $310,000
Affordable Ownershie_ Units
Moderate (80% to 120% AMI) $331,500 $500,500
Tables 0-1 to 0-3 present the detailed affordability gap calculations.

Total Linkage Costs
Affordability
Gap
$240,000
$214,000
$169,000
The last step in the linkage fee analysis marries the findings on the numbers of households in each of the lower income ranges associated with the five prototypes to the affordability gaps, or the costs of delivering housing to them in Newark.

Table 0-4 summarizes the analysis. The Affordability Gaps are drawn from the prior discussion.

The 'Total Nexus Cost per Market Rate Unit" shows the results of the following calculation: the affordability gap times the number of affordable units demanded per market rate unit. (Demand for affordable units for each of the income ranges is drawn from Table C-3 in the previous section and is adjusted to a per-unit basis from the 100 unit building module.) 11 For rental units, maximum housing costs are the affordable rents. For the moderate-income ownership unit, maximum monthly housing costs includes all housing expenses such as mortgage, insurance, property taxes , HOA dues, and utilities.

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The total nexus costs for each of the prototypes are as follows:

Nexus Per Market Rate Unit
Single Single
Affordability Family/ Family I
Income Category Gap Large Lot Small Lot Townhome Condo Apartment Very Low (30% - 50% AMI} $240,000 $31,600 $28,000 $22,900 $24,500 $16,100 Low (50%-80% AMI) $214,000 $15,800 $13,900 $11,300 $12,100 $8,000 Moderate (80%-120% AMI) $169,000 $12,200 $10,700 $8,700 $9,300 $6,200 Total Nexus Costs $59,600 $52,600 $42,900 $45,900 $30,300 The Total Nexus Costs, or Mitigation Costs, indicated above, may also be expressed on a per square foot level. The square foot area of the prototype unit used throughout the analysis becomes the basis for the calculation. Again, see Appendix 1 for more discussion of the prototypes. The results per square foot of building area are as follows:

Total Nexus Cost or Maximum Supported Impact Fee Per Sq.Ft. of Building Area'<! Single Single
Affordability Family/ Family/
Income Category Gap Large Lot Small Lot Townhome Condo Apartment Prototvoe Size 2,500 SF 2,000 SF 1,500 SF 1,300 SF 850SF Very Low (30% - 50% AMI) $240,000 $12.60 $14.00 $15.30 $18.80 $18.90 Low (50%-80% AMI) $214,000 $6.30 $7.00 $7.50 $9.30 $9.40 Moderate (80%-120% AMI) $169,000 $4.90 $5.40 $5.80 $7.20 $7.30 Total Nexus Costs $23.80 $26.40 $28.60 $35.30 $35.60
These costs express the total linkage or nexus costs for the five prototype developments in the City of Newark. These total nexus costs represent the ceiling for any requirement placed on market rate development. The totals are not recommended levels for fees; they represent only the maximums established by this analysis, below which fees or other requirements may be set.
12 Findings are presented based on net rentable or sellable square footage Keyser Marston Associates, Inc.
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TABLE D-1

AFFORDABILITY GAP CALCULATION FOR MODERATE INCOME

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
I. City-Assisted Affordable For-Sale Prototype
Building Type 2-BR Townhome
Density 25 du/ac
Number of Bedrooms 2-BR
Unit Size 1,300 SF
Market Rate Sale Price $500,500
II. Affordable Sales Price
Household Size 3 person HH
110% of Median Income $84,150
Maximum Affordable Sales Price !
1 l $331,500
Ill. Affordability Gap
Market Rate Sale Price $500,500
(Less) Affordable Price {$331,500}
Affordability Gap $169,000
(
1 > See Table D-2 for KMA estimate.

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ESTIMATED AFFORDABLE HOUSING PRICES- MODERATE lNCOME

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Unit Size
Household Size
100% AMI Alameda County 2013
Annual Income @ 110%
%of AMI
% for Housing Costs
Available for Housing Costs
(Less) Property Taxes
(Less) HOA
(Less) Utilities
(Less) Insurance
(Less) Mortgage Insurance
Income Available for Mortgage
Mortgage Amount
Down Payment (homebuyer cash)
Supported Home Price
Key Assumptions
- Mortgage Interest Rate
- Down Payment
- Property Taxes(% of sales price)
- HOA (per month)
- Utilities (per month)
- Mortgage Insurance (% of loan amount)
Prepared by: Keyser Marston Associates
3-person HH
$84,150
$92,565
110.0%
35%
$32,398
($4,150)
($2,700)
($1,068)
($1,080)
($4,253)
$19,147
$314,900
$16,600
$331,500

4.50%

5.0%

1.25%
$225
$89

1.35%
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AFFORDABILITY GAPS FOR VERY LOW AND LOW INCOME HOUSEHOLDS

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
L Affordable Rent
Average Number of Bedrooms 2 Bedrooms
Average Household Size 3 Persons per HH
Household Income
Income Allocation to Housing
Monthly Housing Cost
(Less) Utility Allowance
Maximum Monthly Rent
II. Net Operating Income (NOi)
Gross Scheduled Income (GSI)
Monthly
Annual
Other Income
(Less) Vacancy 5%
Effective Gross Income (EGI)
(Less) Operating Expensesf2l
(Less) Property Taxes 1.25%
Net Operating Income (NOi)
Ill. Capitalized Value and Affordability Gap
Net Operating Income (NOi)
Target Return on Investment
Total Capitalized Value
(Less) Total Development. CostsP)
Affordability Gap
Ol Utility allowances from Alameda County Housing Authority. (
2 ) Includes replacement reserves.
$42,075
30%
$1,052
{$44}
$1,008
Per Unit
$1,008
$12,095
$250
{$617}
$11,727
($5,500)
!$1,000}
$5,227
$5,227

7.50%
$70,000
($310,000)
($240,000)
2 Bedrooms
3 Persons per HH
$50,490
30%
$1,262
{$44} (1)
$1,218
Per Unit
$1,218
$14,619
$250
($743}
$14,126
($5,500)
!$1,390}
$7,236
$7,236

7.50%
$96,000
{$310,000}
($214,000)
<
3 ) Development costs estimated by KMA based on project comps (includes prevailing wages).

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TABLE D-4

SUPPORTED FEE / NEXUS SUMMARY PER UNIT

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA

TOTAL NEXUS COST PER MARKET RATE UNIT
Affordability
Gap 1
Household Income Level
Under 50% Area Median Income $240,000 1
50% to 80% Area Median Income $214,000 1
80% to 120% Area Median Income $169,000 2
Total Supported Fee/ Nexus
Prototype 1 :

SFD / Large Lot
$31,600
$15,800
$12,200
$59,600
TOT AL NEXUS COST PER SQUARE FOOT OF BUILDING AREA •
Nexus Cost Per Market Rate Unit 3
Prototype 2: Prototype 3: Prototype 4: Prototype 5:

SFD / Small Lot Townhome Condo Rental
$28,000 $22,900 $24,500 $16,100
$13,900 $11,300 $12,100 $8,000
$10,700 $8,700 $9,300 $6,200
$52,600 $42,900 $45,900 $30,300
Nexus Cost Per Square Foot (Net Rentable / Sellable) •
Household Income Level
Under 50% Area Median Income
50% to 80% Area Median Income
80% to 120% Area Median Income
Total Supported Fee/ Nexus
Notes:

Unit Size (SF)
Prototype 1 :

SFD / Large Lot
2,500 SF
$12.60
$6.30
$4.90
$23.80
'Assumes affordable rental units (2-3 story apartment). See Table D-3.

Prototype 2:

SFD / Small Lot
2,000 SF
$14.00
$7.00
$5.40
$26.40
Prototype 3: Prototype 4: Prototype 5:

Townhome Condo Rental
1,500 SF
$15.30
$7.50
$5.80
$28.60
1,300 SF
$18.80
$9.30
$7.20
$35.30
850 SF
$18.90
$9.40
$7.30
$35.60
'Affordability gap for moderate income households based on ownership unit (townhome) priced at 110% AMI. See Table D-1. 3 Nexus cost per unit computed by multiplying affordable unit demand per 100 units from Table C-3 by the affordability gap and dividing by 100 units. 4 Computed by dividinQ the nexus cost per unit by the square footaQe of the unit.

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\\Sf-fs2\wp\16\16090\001\Copy of Newark Nexus model 3-14-14; 3/14/2014; dd Page 50 ADDENDUM: ADDITIONAL BACKGROUND AND NOTES ON SPECIFIC ASSUMPTIONS No Excess Supply of Affordable Housing
An assumption of this residential nexus analysis is that there is no excess supply of affordable housing available to absorb or offset new demand; therefore, new affordable units are needed to mitigate the new affordable housing demand generated by development of new market rate residential units. Based on a review of the City's current Housing Element, conditions in Newark are consistent with this underlying assumption. According to the Housing Element for the 2007 to 2014 period, approximately one third of all households in the City were paying more than thirty percent of their income on housing. Current Census data (2010 to 2012 ACS) indicates that this percentage has now climbed to over 40% of households that are spending more than 30% of their income on housing. Vacancy rates in Newark are around 2% according to Census data.

Affordability Gap
The use of the affordability gap for establishing a maximum fee supported from the nexus analysis is grounded in the concept that a jurisdiction will be responsible for delivering affordable units to mitigate impacts. The nexus analysis has established that units will be needed at one or more different affordability levels and the type of unit to be delivered depends on the income/affordability level. In Newark, the City is anticipated to assist in the development of rental units for household incomes less than 80% of median and for moderate income households, ownership units are assumed to be assisted.

The units assisted by the public sector for affordable households are usually small in square foot area (for the number of bedrooms) and modest in finishes and amenities. As a result, in some communities these units are similar in physical configuration to what the market is delivering at market rate; in other communities (particularly very high income communities), they may be smaller and more modest than what the market is delivering. Parking, for example, is usually the minimum permitted by the code. In some communities where there is a wide range in land cost per acre or per unit, it may be assumed that affordable units are built on land parcels in the lower portion of the cost range. KMA tries to develop a total development cost summary that represents the lower half of the average range, but not so low as to be unrealistic.

If the affordability gap is the difference between total development cost and the affordable sales price, the question sometimes arises as to how total development cost is defined. KMA defines total development costs as including land costs, construction costs, site improvements, architectural and engineering, financing and all other indirect costs, and an allowance for an industry profit (non-profit developers receive a development fee instead).

In a healthy and stable economy, when projects are feasible, the sales price is therefore the same as the total development cost inclusive of profit. In some economic cycles sales prices Keyser Marston Associates, Inc.
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might enable larger than standard profits, as was the case in the 2002 to 2004 period, for example, when sales prices escalated ahead of construction and land costs, and sales prices were achieved that enabled higher than standard profit margins. In other market cycles, such as the recent housing downturn, sales prices were depressed such that they were not high enough to cover total development costs and there is no profit. Projects are not feasible during these periods.

Excess Capacity of Labor Force
In the context of economic downturns such as the recent severe recession, the questim11 is sometimes raised as to whether there is excess capacity in the labor force to the extent that consumption impacts generated by new households will be in part, absorbed by existing jobs and workers, thus resulting in fewer net new jobs. In response, an impact analysis of this nature is a one-time impact requirement to address impacts generated over the life of the project.

Recessions are temporary conditions; a healthy economy will return and the impacts will be experienced. The economic cycle also self-adjusts. Development of new residential units is not likely to occur until conditions improve or there is confidence that improved conditions are imminent. When this occurs, the improved economic condition of the households in the local area will absorb the current underutilized capacity of existing workers, employed and unemployed. By the time new units become occupied, economic conditions will have likely improved.

The Burden of Paying for Affordable Housing
Newark's impact fee program will not place all burden for the creation of affordable housing on new residential construction. Newark currently has a Housing Impact Fee that applies to commercial development. The burden of affordable housing is also borne by many sectors of the economy and society. A most important source in recent years of funding for affordable housing development comes from the federal government in the form of tax credits (which result in reduced income tax payment by tax credit investors in exchange for equity funding).

Additionally there are other federal grant and loan programs administered by the Department of Housing and Urban Development and other federal agencies. The State of California also plays a major role with a number of special financing and funding programs. Much of the state money is funded by voter approved bond measures paid for by all Californians.

Local governments play a large role in affordable housing. In addition, private sector lenders play an important role, some voluntarily and others less so with the requirements of the Community Reinvestment Act. Then there is the non-profit sector, both sponsors and developers that build much of the affordable housing.

In summary, all levels of government and many private parties, for profit and non-profit contribute to supplying affordable housing. Residential developers are not being asked to bear the burden alone any more than they are assumed to be the only source of demand or cause for Keyser Marston Associates, Inc.
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needing affordable housing in our communities. Based on past experience, the impact fee program will fund only a small percentage of the affordable housing needed in the City of Newark.

Disclaimers
This report has been prepared using the best and most recent data available at the time of the analysis. Local data and sources were used wherever possible. Major sources include the U.S.

Census Bureau: 2010-2012 American Community Survey, California Employment Development Department and the IMPLAN model. While we believe all sources utilized are sufficiently sound and accurate for the purposes of this analysis, we cannot guarantee their accuracy. Keyser Marston Associates, Inc. assumes no liability for information from these and other sources.

Keyser Marston Associates, Inc.
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APPENDIX 1: MARKET SURVEY
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I. INTRODUCTION
One of the underlying components of the Residential Nexus Study is the identification of residential building prototypes that are expected to be developed in the City of Newark, both today and in the future, and what the market prices for those prototypes will be. These market prices are then used to estimate the incomes of new households that will live in those units and a quantification of the number and types of new jobs that will be created as a result of those households. In this section, Keyser Marston Associates (KMA) describes the residential building prototypes utilized for the analysis. summarizes the residential market data researched, and describes the market price point conclusions drawn therefrom.

II. RESIDENTIAL PROTOTYPES
In collaboration with City staff, a total of five market rate residential prototypes were selected for market pricing - four for-sale prototypes and one rental prototype. The intent of the selected prototypes is to identify representative development prototypes that are envisioned to be developed in Newark in the future. It is noted that one prototype, the stacked flat condominiums, is not commonly being developed outside of San Francisco and select high-value Peninsula and South Bay locales. However, stacked flat condos may become possible in Newark as the market continues to mature.

Residential Prototypes Density Avg. Unit Size
For-Sale Prototypes
1) Larger Lot Single Family Detached Homes
2) Small Lot Single Family Detached
3) Townhomes
4) Stacked Flat Condominiums
Rental Prototype
5) 2-3 Story Apartments
Source: KMA in collaboration with City of Newark
Ill. MARKET SURVEY & PRICE ESTIMATES
a) Residential Building Activity
8 du/acre
12 du/acre
18 du/acre
50 du/acre
25 du/acre
2,500 sq. ft.
2,000 sq. fl.
1,500 sq. ft.
1,300 sq. ft.
850 sq. ft.

The City of Newark has not had significant new home construction in the last ten years, A limited amount of developable land in Newark in combination with the downturn in the real estate market resulting from the recession has kept construction to a minimum. However, Newark is anticipating additional residential development in the coming years and has several large residential developments in the planning stages.

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b) Overview of For-Sale Market
The median home price in Newark declined nearly half during the recession - from a high of $614,000 in 2006 to $325,000 in 2011 (there was a slight uptick in pricing in 2010 resulting from a temporary federal homebuyer tax credit). The median price rebounded significantly, about 30%, between 2012 and 2013.

Since Newark has experienced almost no new residential construction in recent years, market pricing for this analysis has also been based on a review of market comps in the neighboring cities of Fremont and Union City. The median home price chart below also includes Union City and Fremont (zip code 94538). As shown, the median home price trend for Union City and Fremont zip code 94538 is similar to that of Newark.
$700,000
$650,000
$600,000
$550,000
$500,000
$450,000
$400,000
$350,000
$300,000
Median Home Price Trends
2005 2006 2007 2008 2009 2010 2011 2012 2013
01-03
..,._Newark Union City --Fremont 94538
Source; Dataquick, city-data.com, Note; The median home prices for Fremont zip code 94538 (Irvington/South Fremont area) are the lowest of the four Fremont zip codes and the closest to the Newark medians.

The recent rebound in median home prices can be attributed to improvement in the broader economy as well as to continued favorable mortgage interest rates and low home inventories. It would be expected that the pace of home price escalation will moderate as home inventories increase to more typical levels, and as federal policy makers continue to allow mortgage interest rates to rise gradually from the historic lows experienced over the course of the last couple of years.
c) New For-Sale Home Projects and Pricing
In order to estimate market pricing of the four for-sale residential prototypes, KMA first researched asking prices of newly constructed homes currently on the market. Market research Keyser Marston Associates, Inc.
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firm Real Estate Economics identified just one single family home development and two attached townhome developments currently being marketed for sale in the City of Fremont.

There were no new projects identified in Newark or Union City.

Newty Built Residential
Projects Location Unit Sizes Price Price PSF
Single Family Detached
1) Central Park Terraces Union St & Railroad 1,644 sf $677,990 $412 Ave, Fremont (94538) 1,712 sf $706,990 $413
2,094 sf $761,990 $364
Attached Townhomes
1) Lunare Townhomes Blacow & Fremont 1,198 sf $495,000 $413 Blvd, Fremont (94538) 1,425 sf $575,000 $404
2) Tavenna Ardenwood Blvd & 1,246 sf $578,490 $464
Paseo Padre, Fremont 1,617 sf $693,490 $429
(94555) 1,701 sf $720.490 $424
1,969 sf $753,490 $383
Source: Real Estate Economics (December 2013).
d) Re-Sale Home Prices
Given the limited number of newly built homes currently on the market, KMA also analyzed resale prices of existing homes as an additional source of data to estimate the prototype home prices. These prices are shown in the chart below.
2013 Sales of Newer Single Family Homes*
Newark & Union City
$1,000,000
$900,000
$800,000
Q) $700,000
·
a..
;:: $600,000
Q) $500,000
$400,000
$300,000
$200,000
$100,000
1,000
*Homes built since 1990
Source: Oataquick
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♦
1,500 2,000 2,500 3,000
Square Feet
3,500

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e) For-Sale Prototype Price Estimates
The pricing of new home developments currently on the market combined with the re-sale data noted above formed the basis for KMA's prototype price estimates. The prototype pricing estimates took into consideration the following factors:
• Based on the median home prices in Newark as compared to Union City and Fremont (zip code 94538), the prototype pricing assumes somewhat lower pricing in Newark than in these neighboring locales;
• In general, larger homes sell for a higher total price but a lower price per square foot than smaller homes; and
• In general, newly built homes sell for a premium over re-sales, all else being equal.

Consistent with these factors, the prices of the Newark residential prototypes have been conservatively estimated lower than the three new developments currently being marketed in Fremont but are higher than the trend line average of re-sale homes.

For-Sale Prototype Price Estimates Size Price Price PSF Prototype 1: Larger Lot Single Family Detached Homes
Prototype 2: Small Lot Single Family Detached
Prototype 3: Townhomes
Prototype 4: Stacked Flat Condominiums
'Price required for feasibility
2,500 sf
2,000 sf
1,500 sf
1,300 sf
$787,500
$700,000
$562,500
$580,000·
$315
$350
$375
$446·
It is noted that the sale price for the stacked flat condominium prototype is based on a price required for feasibility rather than a theoretical current market price. Historically, stacked flat condominiums have not been built in Newark or in neighboring jurisdictions due to the fact that the prices that these types of units can be sold for in this area are not sufficient to offset the higher development cost. This study assumes that stacked flat condominiums will only be built if market prices are sufficient to achieve financially feasibility. f) Rental Housing Market
Average apartment rents in Newark are positioned at roughly the mid-point of other cities in Alameda County and slightly above neighboring Fremont and Union City.

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I
7Ala,r1eda County Aver?ge ('.P,artment . -- -
�Rents(O4�013), _ .

1. Berkeley $2,502

2. Emeryville $2,294

3. Oakland $2,133

4. Dublin $2,035

5. Pleasanton $1,924

6. Newark $1,856

7. Fremont $1,801

8. Union City $1,798

9. Alameda $1,757

10. Livermore $1,615

11. Hayward $1,465

12. Castro Valley $1,430

13. San Leandro $1,305
Source: Rea/Facts
In general, the apartment market throughout the Bay Area has enjoyed increasingly healthy conditions in the last few years, evidenced by rising rents and high occupancy rates.

In order to estimate apartment rents for newly built units in Newark, KMA conducted a survey of eleven apartment developments in Newark, Union City, and Fremont. Of these properties, the range of rents is roughly as follows (additional detail is contained in Appendix 1: Table 1 ):

Apartment Survey Average Average Rent Rent/Sq. Ft.
1-Bedroom
2-Bedroom
All Unit Sizes
Sq. Ft.
744 sf
982 sf
863 sf
Source: KMA SuNey (December 2013)
g) Rental Prototype Rent Estimates
$1,809 - $2,120
$2,165 - $2,371
$1,989 - $2,239
$2.43 - $2.85
$2.20 - $2.41
$2.30 - $2.59
The following are KMA's rent estimates for the Newark rental prototype. While rent growth has been significant over the course of the last several years in the Newark market, we have not escalated current rents for purposes of this analysis. We anticipate the rate of rent growth to slow in the balance of 2014.

Rental Prototype Rent Estimates Sq. Ft. Rent/Month Rent/Sq. Ft.

Prototype 5: 2-3 Story Apartments
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APPENDIX 1, TABLE 1
ASKING APARMENT RENTS - SELECT DEVELOPMENTS IN NEWARK, UNION CITY1 FREMONT

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Newark Apartments
Sycamore Bay
1 BO/ 1 BA
1 BO/ 1 BA
2 BO/ 2 BA
2 BO/ 2 BA
2 BO/ 2 BA
2 BO/ 2 BA
Average
Bay Bridge Apartments
1 BO/ 1 BA
2 BO/ 1 BA
Average
Aiderwood Park
1 BO/ 1 BA
2 BO/ 1 BA
2 BO/ 2 BA
Average
Union City Apartments
Avalon Union City
1 BD/ 1 BA
1 BO/ 1 BA
1 BO/ 1 BA
1 BO/ 1 BA
1 BO/ 1 BA
2 BO/ 1 BA
2 BO/ 2 BA
Average
Eaves Union City
1 BO/ 1 BA
1 BO/ 1 BA

2. BO/ 1 BA
2 BO/ 1 BA
Average
Sq. Ft. Low Rent High Rent Low $/SF
37171 Sycamore Street, Newark (Bul/t 1998)
665 $1,921 $2,111 $2.89
709 $1,920 $2,041 $2.71
958 $2,984 $3,110 $3.11
963 $2,241 $2,241 $2.33
977 $2,407 $2,407 $2.46
1,008 $2,210 $2,437 $2.19
880 $2,281 $2,391 $2.59
35655 Haley Street, Newark (Built 1981)
487 $1,380 $1,380 $2.83
749 $1,645 $1,645 $2.20
618 $1,513 $1,513 $2.45
37057 Magnolia Street, Newark (Built 1986)
685 $1 ;521 $1,636 $2.22
850 $1,776 $1,939 $2.09
909 $1,922 $1,922 $2.11
815 $1,740 $1,832 $2.14
24 Union Square, Union City (Built 2009)
683 $1,725 $2,800 $2.53
700 $1,755 $2,800 $2.51
732 $1,750 $2,840 $2.39
792 $1,830 $2,875 $2.31
919 $1,850 $2,895 $2.01
1,146 $2,195 $3,505 $1.92
1,331 $2,305 $3,625 $1.73
900 $1,916 $3,049 $2.13
2175 Decato Road, Union City (Built 1973)
650 $1,660 $1,795 $2.55
650 $1,500 $1,520 $2.31
830 $1,885 $1,970 $2.27
830 $1,795 $1,835 $2.16
740 $1,710 $1,780 $2.31
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$3.17
$2.88
$3.25
$2.33
$2.46
$2.42
$2.72
$2.83
$2.20
$2.45
$2.39
$2.28
$2.11
$2.25
$4.10
$4.00
$3.88
$3.63
$3.15
$3.06
$2.72
$3.39
$2.76
$2.34
$2.37
$2,21
$2.41

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Verandas
1 BO/ 1 BA
1 BO/ 1 BA
2 BO/ 2 BA
Average
Skylark
1 BO/ 1 BA
2 BO/ 1 BA
2 BO/ 2 BA
2 BO/ 2 BA
Average
Fremont Apartments
Paragon
1 BO/ 1 BA
1 BO/ 1 BA
1 BO/ 1 BA
1 BO/ 1 BA
2 BO/ 2 BA
2 BO/ 2 BA
2 BO/ 2 BA
2 BO/ 2 BA
Average
Archstone Fremont Center
1 BO/ 1 BA
1 BO/ 1 BA
1 BO/ 1 BA
1 BD/ 1 BA
2 BO/ 2 BA
2 BO/ 2 BA
3 BO/ 2 BA
Average
Creekside Village
1 BO/ 1 BA
1 BO/ 1 BA
2 BD/2 BA
2 BO/ 2 BA
Average
Avalon Fremont
1 BO/ 1 BA
1 BO/ 1 BA
2 BO/ 2 BA
Average
Sq. Ft. Low Rent High Rent Low $/SF
33 Union Square, Union City (Built 1989)
603 $1,630 $2,244 $2.70
777 $1,735 $2,537 $2.23
955 $1,998 $2,854 $2.09
778 $1,788 $2,545 $2.30
34655 Skylark Drive, un;on Cfty (Built 1986)
716 $1,575 $1,575 $2.20
850 $1,620 $1,620 $1.91
913 $1,775 $1,790 $1.94
946 $1,795 $1,830 $1.90
856 $1,691 $1,704 $1.98
3700 Beacon Avenue, Fremont (Built 2013)
685 $1,865 $1,895 $2.72
738 $1,960 $2,050 $2.66
"832 $2,115 $2,130 $2.54
854 $2,190 $2,190 $2.56
1,058 $2,430 $2,475 $2.30
1,111 $2,650 $2,650 $2.39
1,159 $2,575 $2,575 $2.22
1,179 $2,500 $2,645 $2.12
952 $2,286 $2,326 $2.40
39410 Civic Drive, Fremont (Built 2001)
786 $1,940 $1,960 $2.47
798 $2,005 $2,005 $2.51
925 $2,060 $2,160 $2.23
1,050 $2
,090 $2,090 $1.99
982 $2,415 $2,505 $2.46
1,039 $2,410 $2,410 $2.32
1,421 $3,235 $3,235 $2.28
1,000 $2,308 $2,338 $2.31
2999 Sequoia Avenue, Fremont (Built 1986)
640 $1,706 $1,994 $2.67
720 $1,762 $1,968 $2.45
870 $2,079 $2,260 $2.39
910 $2,182 $2,442 $2.40
785 $1,932 $2,166 $2.46
39939 Stevenson Common; Fremont (Built 1992)
761 $1,760 $1',790 $2.31
785 $1,820 $1,845 $2.32
1,056 $2,165 $2,205 $2.05
867 $1,915 $1,947 $2.21
High $/SF
$3.72
$3.27
$2.99
$3.27
$2.20
$1.91
$1.96
$1.93
$1.99
$2.77
$2.78
$2.56
$2.56
$2.34
$2.39
$2.22
$2.24
$2.44
$2.49
$2.51
$2.34
$1.99
$2.55
$2.32
$2.28
$2,34
$3.12
$2.73
$2.60
$2.68
$2.76
$2.35
$2.35
$2.09
$2.24
Source: Project websites; ApartmentGuide.com; Rent.com; RealFacts (December 2013) Prepared by: Keyser Marston Associates
Filename: \\Sf-fs2\wp\16\16090\001\Newark Apartment Rents 12 30 13; Apartment Rents; 2/2712014

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APPENDIX 2: SUPPORTING TECHNICAL TABLES
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APPENDIX 2, TABLE 1
WORKER OCCUPATION DISTRIBUTION, 2012
SERVICES TO HOUSEHOLDS EARNING $75-$100,000, RESIDENT SERVICES

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Worker Occupation Distribution 1
Services to Households Earning
Major Occupations (2% or more) $75-$100,000
Management Occupations 4.0%
Business and Financial Operations Occupations 3.4%
Education, Training, and Library Occupations 2. 7%
Healthcare Practitioners and Technical Occupations 8.4% Healthcare Support Occupations 4.9%
Food Preparation and Serving Related Occupations 14.8%
Building and Grounds Cleaning and Maintenance Occupations 5. 7% Personal Care and Service Occupations 5.2%
Sales and Related Occupations 14.3%
Office and Administrative Support Occupations 15.4%
Installation, Maintenance, and Repair Occupations 3. 7% Transportation and Material Moving Occupations 5.3%
All Other Worker Occupations - Services to Households Earning 12.1% $75-$100,000
INDUSTRY TOTAL 100.0%
1 Distribution of employment by industry is per the IMPLAN model and the distribution of occupational employment within those industries is based on the Bureau of Labor Statistics Occupational Employment Survey.

Source: Bureau of Labor Statistics, IMPLAN
Keyser Marston Associates, Inc.
\\Sf-fs2\wp\16\16090\001\75-100k Newark 2-26-14; 2/27/2014; dd Page 67 APPENDIX 2, TABLE 2
AVERAGE ANNUAL WORKER COMPENSATION, 2013
SERVICES TO HOUSEHOLDS EARNING $75-$100,000

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Occupation 3

Page 1 of 4 ends

Management Occupations
Chief Executives
General and Operations Managers
Sales Managers
Administrative Services Managers
Financial Managers
Food Service Managers
Medical and Health Services Managers
Property, Real Estate, and Community Association Managers Social and Community Service Managers
All other Management Occupations (Avg. All Categories)
Business and Financial Operations Occupations
Human Resources Specialists
Labor Relations Specialists
Management Analysts
Training and Development Specialists
Market Research Analysts and Marketing Specialists
Business Operations Specialists, All Other
Accountants and Auditors
Financial Analysts
Personal Financial Advisors
Loan Officers
Weighted Mean Annual Wage
All Other Business and Financial Operations Occupations (Avg. All Categories) Weighted Mean Annual Wage
Education, Training, and Library Occupations
Vocational Education Teachers, Postsecondary
Preschool Teachers, Except Special Education
Elementary School Teachers, Except Special Education
Middle School Teachers, Except Special and Career/Technical Education Secondary School Teachers, Except Special and Career/Technical Education Self-Enrichment Education Teachers
Substitute Teachers
Teachers and Instructors, All Other, Except Substitute Teachers Teacher Assistants
All Other Education, Training, and Library Occupations (Avg. All Categories) Weighted Mean Annual Wage
2013 Avg.

Compensation 1
$199,700
$132,900
$141,700
$101,200
$144,800
$51,200
$113,500
$85,600
$74,600
$119,300
$119,300
$74,600
$81,200
$103,200
$86,500
$86,100
$89,300
$80,100
$98,300
$81,000
$83,100
$85,700
$85,700
$57,600
$33,900
$71,200
$71,000
$71,600
$51,100
$41,500
$60,400
$32,000
$50,200
$50,200
Sources: U.S. Bureau of Labor Statistics, California Employment Development Department, IMPLAN Keyser Marston Associates, Inc.
\\Sf-fs2\wp\16\16090\001\75-100k Newark 2-26-14; 2/27/2014; dd % of Total % of Total
Occupation Resident Services
Group 2 Workers

3.7% 0.2%

32.9% 1.3%

5.2% 0.2%

3.9% 0.2%

6.7% 0.3%

5.8% 0.2%

7.6% 0.3%

10.8% 0.4%

3.6% 0.1%

19.8% 0.8%
100.0% 4.0%

5.9% 0.2%

3.8% 0.1%

5.9% 0.2%

4.2% 0.1%

7.1% 0.2%

13.1% 0.4%

17.1% 0.6%

4.7% 0.2%

5.4% 0.2%

4.7% 0.2%

28.2% 1.0%
100.0% 3.4%

4.6% 0.1%

12.7% 0.3%

9.2% 0.2%

4.1% 0.1%

6.4% 0.2%

10.9% 0.3%

4.6% 0.1%

7.4% 0.2%

15.9% 0.4%

24.1% 0.7%
100.0% 2.7%

Page 68 ends

APPENDIX 2, TABLE 2
AVERAGE ANNUAL WORKER COMPENSATION, 2013
SERVICES TO HOUSEHOLDS EARNING $75-$100,000

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Occupation 3

Page 2 of 4 ends

Healthcare Practitioners and Technical Occupations
Pharmacists
Physicians and Surgeons, All Other
Registered Nurses
Dental Hygienists
Pharmacy Technicians
Licensed Practical and Licensed Vocational Nurses
All Other Healthcare Practitioners and Technical Occupations (Avg. All Categories) Weighted Mean Annual Wage
Healthcare Support Occupations
Home Health Aides
Nursing Assistants
Dental Assistants
Medical Assistants
All Other Healthcare Support Occupations (Avg. All Categories) Weighted Mean Annual Wage
Food Preparation and Serving Related Occupations
First-Line Supervisors of Food Preparation and Serving Workers Cooks, Fast Food
Cooks, Restaurant
Food Preparation Workers
Bartenders
Combined Food Preparation and Serving Workers, Including Fast Food Counter Attendants, Cafeteria, Food Concession, and Coffee Shop Waiters and Waitresses
Dining Room and Cafeteria Attendants and Bartender Helpers Dishwashers
Hosts and Hostesses, Restaurant, Lounge, and Coffee Shop All Other Food Preparation and Serving Related Occupations (Avg. All Categories) Weighted Mean Annual Wage
Building and Grounds Cleaning and Maintenance Occupations First-Line Supervisors of Housekeeping and Janitorial Workers Janitors and Cleaners, Except Maids and Housekeeping Cleaners Maids and Housekeeping Cleaners
Landscaping and Groundskeeping Workers
All Other Building and Grounds Cleaning and Maintenance Occupations (Avg. All Cat Weighted Mean Annual Wage
2013 Avg.

Compensation 1
$131,300
$190,500
$115,100
$98,900
$47,100
$60,400
$105,900
$105,900
$29,100
$35,300
$40,300
$37,700
$34,800
$34,800
$31,700
$19,900
$26,200
$22,800
$22,600
$21,500
$20,600
$21,600
$19,400
$21,600
$20,900
$22,700
$22,700
$47,200
$31,800
$29,600
$31,600
$32,000
$32,000
Sources: U.S. Bureau of Labor Statistics, California Employment Development Department, IMPLAN Keyser Marston Associates, Inc.
\\Sf-fs2\wp\16\16090\001\75-100k Newark 2-26-14; 2/27/2014; dd % of Total % of Total
Occupation Resident Services
Group 2 Workers

3.8% 0.3%

4.4% 0.4%

31.1% 2.6%

3.8% 0.3%

5.0% 0.4%

9.5% 0.8%

42.4% 3.6%
100.0% 8.4%

21.3% 1.0%

32.9% 1.6%

10.0% 0.5%

17.0% 0.8%

18.8% 0.9%
100.0% 4.9%

7.0% 1.0%

4.8% 0.7%

9.0% 1.3%

6.3% 0.9%

5.0% 0.7%

26.1% 3.9%

3.6% 0.5%

21.0% 3.1%

3.2% 0.5%

4.4% 0.7%

3.1% 0.5%

6.6% 1.0%
100.0% 14.8%

3.4% 0.2%

51.0% 2.9%

12.4% 0.7%

25.1% 1.4%

8.2% 0.5%
100.0% 5.7%

Page 69 ends

APPENDIX 2, TABLE 2
AVERAGE ANNUAL WORKER COMPENSATION, 2013
SERVICES TO HOUSEHOLDS EARNING $75-$100,000

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Occupation 3

Page 3 of 4 ends

Personal Care and SeNice Occupations
First-Line Supervisors of Personal Service Workers
Nonfarm Animal Caretakers
Ushers, Lobby Attendants, and Ticket Takers
Amusement and Recreation Attendants
Hairdressers, Hairstylists, and Cosmetologists
Manicurists and Pedicurists
Childcare Workers
Personal Care Aides
Fitness Trainers and Aerobics Instructors
Recreation Workers
All Other Personal Care and Service Occupations (Avg. All Categories) Sales and Related Occupations
First-Line Supervisors of Retail Sales Workers
Cashiers
Counter and Rental Clerks
Retail Salespersons
Sales Representatives, Services, All Other
Weighted Mean Annual Wage
Sales Representatives. Wholesale and Manufacturing, Except Technical and Scientif Real Estate Sales Agents
All Other Sales and Related Occupations (Avg. All Categories) Weighted Mean Annual Wage
Office and Administrative Support Occupations
First-Line Supervisors of Office and Administrative Support Workers Bookkeeping, Accounting, and Auditing Clerks
Customer Service Representatives
Receptionists and Information Clerks
Stock Clerks and Order Fillers
Executive Secretaries and Executive Administrative Assistants Medical Secretaries
Secretaries and Administrative Assistants, Except Legal, Medical, and Executive Office Clerks, General
All Other Office and Administrative Support Occupations (Avg. All Categories) Weighted Mean Annual Wage
Installation, Maintenance, and Repair Occupations
First-Line Supervisors of Mechanics, Installers, and Repairers Automotive Body and Related Repairers
Automotive Service Technicians and Mechanics
Bus and Truck Mechanics and Diesel Engine Specialists
Maintenance and Repair Workers, General
All Other Installation, Maintenance, and Repair Occupations (Avg. All Categories) Weighted Mean Annual Wage
2013 Avg.

Compensation 1
$42,900
$25,500
$22,300
$22,700
$29,500
$18,900
$23,600
$22,600
$50,600
$28,200
$27,100
$27,100
$49,500
$26,400
$33,900
$28,700
$71,400
$73,800
$36,700
$35,100
$35,100
$62,400
$45,900
$43,200
$34,600
$29,100
$60,100
$41,800
$43,500
$37,400
$41,800
$41,800
$80,500
$51,400
$50,300
$58,500
$45,800
$51,800
$51,800
Sources: U.S. Bureau of Labor Statistics, California Employment Development Department. IMPLAN Keyser Marston Associates, Inc.
\\Sf-fs2\wp\16\16090\001\75-100k Newark 2-26-14; 2/27/2014; dd % of Total % of Total
Occupation Resident Services
Group 2 Workers

3.6% 0.2%

5.1% 0.3%

3.7% 0.2%

5.9% 0.3%

16.8% 0.9%

3.0% 0.2%

11.8% 0.6%

25.9% 1.4%

5.6% 0.3%

5.3% 0.3%

13.1% 0.7%
100.0% 5.2%

9.8% 1.4%

25.5% 3.6%

4.6% 0.7%

37.1% 5.3%

3.1% 0.4%

5.3% 0.8%

3.4% 0.5%

11.2% 1.6%
100.0% 14.3%

6.5% 1.0%

7.5% 1.2%

9.4% 1.4%

7.9% 1.2%

11.0% 1.7%

3.4% 0.5%

4.7% 0.7%

10.2% 1.6%

13.8% 2.1%

25.6% 3.9%
100.0% 15.4%

7.8% 0.3%

5.5% 0.2%

20.0% 0.7%

3.3% 0.1%

35.4% 1.3%

28.0% 1.0%
100.0% 3.7%

Page 70 ends

APPENDIX 2, TABLE 2
AVERAGE ANNUAL WORKER COMPENSATION, 2013
SERVICES TO HOUSEHOLDS EARNING $75-$100,000

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Occupation 3

Page 4 of 4 ends

Transportation and Material Moving Occupations
Bus Drivers, School or Special Client
Driver/Sales Workers
Heavy and Tractor-Trailer Truck Drivers
Light Truck or Delivery Services Drivers
Taxi Drivers and Chauffeurs
Parking Lot Attendants
Industrial Truck and Tractor Operators
Cleaners of Vehicles and Equipment
Laborers and Freight, Stock, and Material Movers, Hand
Packers and Packagers, Hand
All Other Transportation and Material Moving Occupations (Avg. All Categories) Weighted Mean Annual Wage
2013 Avg.

Compensation 1
$35,600
$34,100
$44,800
$37,300
$29,100
$27,400
$43,400
$24,500
$31,400
$23,700
$33.800
$33,800
% of Total % of Total
Occupation Resident Services
Group 2 Workers

6.4% 0.3%

7.9% 0.4%

13.1% 0.7%

11.4% 0.6%

3.6% 0.2%

4.1% 0.2%

3.4% 0.2%

6.3% 0.3%

23.4% 1.2%

7.0% 0.4%

13.4% 0.7%
100.0% 5.3%

87.9%
1 The methodology utilized by the California Employment Development Department (EDD) assumes that hourly paid employees are employed full-time. Annual compensation is calculated by EDD by multiplying hourly wages by 40 hours per work week by 52 weeks. 2 Occupation percentages are based on the 2012 National Industry - Specific Occupational Employment survey compiled by the Bureau of Labor Statistics. Wages are based on the 2012 Occupational Employment Survey data for Alameda County, updated by the California Employment Development Department to 2013 wage levels. 3 Including occupations representing 3% or more of the major occupation group Sources: U.S. Bureau of Labor Statistics. California Employment Development Department. IMPLAN Keyser Marston Associates, Inc.
\\Sf-fs2\wp\16\16090\001\75-100k Newark 2-26-14; 2/27/2014; dd

Page 71 ends

APPENDIX 2, TABLE 3
WORKER OCCUPATION DISTRIBUTION, 2012
SERVICES TO HOUSEHOLDS EARNING $100,000 TO $150,000

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Worker Occupation Distribution 1
Services to Households Earning
Major Occupations (2% or more) $100,000 to $150,000
Management Occupations 3.9%
Business and Financial Operations Occupations 3.4%
Education, Training, and Library Occupations 3.2%
Healthcare Practitioners and Technical Occupations 8.1% Healthcare Support Occupations 4. 7%
Food Preparation and Serving Related Occupations 14.8%
Building and Grounds Cleaning and Maintenance Occupations 5.6% Personal Care and Service Occupations 5.4%
Sales and Related Occupations 14. 7%
Office and Administrative Support Occupations 15.3%
Installation, Maintenance, and Repair Occupations 3.5%
Transportation and Material Moving Occupations 5.3%
All Other Worker Occupations - Services to Households Earning 12.1% $100,000 to $150,000
INDUSTRY TOT AL 100.0%
1 Distribution of employment by industry is per the IMPLAN model and the distribution of occupational employment within those industries is based on the Bureau of Labor Statistics Occupational Employment Survey.

Source: Bureau of Labor Statistics, IMPLAN
Keyser Marston Associates, Inc.
\\Sf-fs2\wp\16\16090\001\100-150k Newark 2-26-14; 2/27/2014; dd Page 72 APPENDIX 2, TABLE 4
AVERAGE ANNUAL WORKER COMPENSATION, 2013
SERVICES TO HOUSEHOLDS EARNING $100,000 TO $150,000

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Occupation 3

Page 1 of 4 ends

Management Occupations
Chief Executives
General and Operations Managers
Sales Managers
Administrative Services Managers
Financial Managers
Food Service Managers
Medical and Health Services Managers
Property, Real Estate, and Community Association Managers Social and Community Service Managers
Managers, All Other
All other Management Occupations (Avg. All Categories)
Business and Financial Operations Occupations
Human Resources Specialists
Labor Relations Specialists
Management Analysts
Training and Development Specialists
Market Research Analysts and Marketing Specialists
Business Operations Specialists, All Other
Accountants and Auditors
Financial Analysts
Personal Financial Advisors
Loan Officers
Weighted Mean Annual Wage
All Other Business and Financial Operations Occupations (Avg. All Categories) Weighted Mean Annual Wage
Education, Training, and Library Occupations
Vocational Education Teachers, Postsecondary
Preschool Teachers, Except Special Education
Elementary School Teachers, Except Special Education
Middle School Teachers, Except Special and Career/Technical Education Secondary School Teachers, Except Special and Career/Technical Education Self-Enrichment Education Teachers
Substitute Teachers
Teachers and Instructors, All Other, Except Substitute Teachers Teacher Assistants
All Other Education, Training, and Library Occupations (Avg. All Categories) Weighted Mean Annual Wage
2013 Avg.

Compensation 1
$199,700
$132,900
$141,700
$101,200
$144,800
$51,200
$113,500
$85,600
$74,600
$134,300
i120,700
$120,700
$74,600
$81,200
$103,200
$86,500
$86,100
$89,300
$80,100
$98,300
$81,000
$83,100
i85,700
$85,700
$57,600
$33,900
$71,200
$71,000
$71,600
$51,100
$41,500
$60,400
$32,000
iS0,100
$50,100
Sources: U.S. Bureau of Labor Statistics, California Employment Development Department, IMPLAN Keyser Marston Associates, Inc.
\\Sf-fs2\wp\ 16\ 16090\001 \ 100-1 S0k Newark 2-26-14; 2/27/2014; dd % of Total % of Total
Occupation Resident Services
Group 2 Workers

3.8% 0.1%

33.5% 1.3%

5.2% 0.2%

3.9% 0.2%

6.8% 0.3%

5.9% 0.2%

7.3% 0.3%

8.6% 0.3%

4.0% 0.2%

3.1% 0.1%

17.8% 0.7%
100.0% 3.9%

5.9% 0.2%

4.0% 0.1%

5.8% 0.2%

4.3% 0.1%

6.9% 0.2%

13.2% 0.5%

16.6% 0.6%

4.8% 0.2%

5.8% 0.2%

4.9% 0.2%

27.9% 1.0%
100.0% 3.4%

4.7% 0.1%

13.0% 0.4%

9.1% 0.3%

4.0% 0.1%

6.2% 0.2%

10.8% 0.3%

4.4% 0.1%

7.5% 0.2%

15.8% 0.5%

24.5% 0.8%
100.0% 3.2%

Page 73 ends

APPENDIX 2, TABLE 4
AVERAGE ANNUAL WORKER COMPENSATION, 2013
SERVICES TO HOUSEHOLDS EARNING $100,000 TO $150,000

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Occupation 3

Page 2 of 4 ends

Compensation 1
$131,300
$190,500
$115,100
$98,900
$47,100
$60,400
$105,500
$105,500
$29,100
$35,300
$40,300
$37,700
$34,700
$34,700
$31,700
$19,900
$26,200
$22,800
$22,600
$21,500
$20,600
$21,600
$19,400
$21,600
$20,900
$22,700
$22,700
$47,200
$31,800
$29,600
$31,600
$32,000
$32,000
Sources: U.S. Bureau of Labor Statistics, California Employment Development Department, IMPLAN Keyser Marston Associates, Inc.
\\Sf-fs2\wp\ 16\ 16090\001 \ 100-150k Newark 2-26-14; 2/27/2014; dd % of Total % of Total
Occupation Resident Services
Group 2 Workers

4.1% 0.3%

4.3% 0.4%

30.7% 2.5%

3.7% 0.3%

5.5% 0.4%

9.4% 0.8%

42.2% 3.4%
100.0% 8.1%

21.9% 1.0%

32.6% 1.5%

9.9% 0.5%

16.7% 0.8%

18.9% 0.9%
100.0% 4.7%

7.0% 1.0%

4.8% 0.7%

9.0% 1.3%

6.4% 0.9%

5.0% 0.7%

26.2% 3.9%

3.6% 0.5%

20.9% 3.1%

3.2% 0.5%

4.4% 0.6%

3.1% 0.5%

6.6% 1.0%
100.0% 14.8%

3.4% 0.2%

51.2% 2.9%

11.9% 0.7%

25.2% 1.4%

8.3% 0.5%
100.0% 5.6%

Page 74 ends

APPENDIX 2, TABLE 4
AVERAGE ANNUAL WORKER COMPENSATION, 2013
SERVICES TO HOUSEHOLDS EARNING $100,000 TO $150,000

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Occupation 3

Page 3 of 4 ends

Personal Care and Service Occupations
First-Line Supervisors of Personal Service Workers
Nonfarm Animal Caretakers
Ushers, Lobby Attendants, and Ticket Takers
Amusement and Recreation Attendants
Hairdressers, Hairstylists, and Cosmetologists
Childcare Workers
Personal Care Aides
Fitness Trainers and Aerobics Instructors
Recreation Workers
All Other Personal Care and Service Occupations (Avg. All Categories) Sales and Related Occupations
First-Line Supervisors of Retail Sales Workers
Cashiers
Counter and Rental Clerks
Retail Salespersons
Sales Representatives, Services, All Other
Weighted Mean Annual Wage
Sales Representatives, Wholesale and Manufacturing, Except Technical and Scientifo All Other Sales and Related Occupations (Avg. All Categories) Weighted Mean Annual Wage
Office and Administrative Supporl Occupations
First-Line Supervisors of Office and Administrative Support Workers Bookkeeping, Accounting, and Auditing Clerks
Customer Service Representatives
Receptionists and Information Clerks
Stock Clerks and Order Fillers
Executive Secretaries and Executive Administrative Assistants Medical Secretaries
Secretaries and Administrative Assistants, Except Legal, Medical, and Executive Office Clerks, General
All Other Office and Administrative Support Occupations (Avg. All Categories) Weighted Mean Annual Wage
Installation, Maintenance, and Repair Occupations
First-Line Supervisors of Mechanics, Installers, and Repairers Automotive Body and Related Repairers
Automotive Service Technicians and Mechanics
Bus and Truck Mechanics and Diesel Engine Specialists
Tire Repairers and Changers
Maintenance and Repair Workers, General
All Other Installation, Maintenance, and Repair Occupations (Avg. All Categories) Weighted Mean Annual Wage
2013 Avg.

Compensation 1
$42,900
$25,500
$22,300
$22,700
$29,500
$23,600
$22,600
$50,600
$28,200
$27,300
$27,300
$49,500
$26,400
$33,900
$28,700
$71,400
$73,800
$34,300
$34,300
$62,400
$45,900
$43,200
$34,600
$29,100
$60,100
$41,800
$43,500
$37,400
$41,700
$41,700
$80,500
$51,400
$50,300
$58,500
$31,000
$45,800
$51,200
$51,200
Sources: U.S. Bureau of Labor Statistics, California Employment Development Department, IMPLAN Keyser Marston Associates, Inc.
\\Sf-fs2\wp\ 16\ 16090\001 \ 100-1 S0k Newark 2-26-14; 2/27/2014; dd % of Total % of Total
Occupation Resident Services
Group 2 Workers

3.6% 0.2%

5.2% 0.3%

3.6% 0.2%

5.9% 0.3%

15.9% 0.9%

13.3% 0.7%

25.9% 1.4%

5.7% 0.3%

5.3% 0.3%

15.6% 0.8%
100.0% 5.4%

10.2% 1.5%

26.5% 3.9%

4.0% 0.6%

39.1% 5.8%

3.0% 0.4%

4.2% 0.6%

13.0% 1.9%
100.0% 14.7%

6.6% 1.0%

7.4% 1.1%

9.4% 1.4%

7.7% 1.2%

11.7% 1.8%

3.3% 0.5%

4.5% 0.7%

10.0% 1.5%

13.6% 2.1%

25.8% 3.9%
100.0% 15.3%

7.9% 0.3%

5.9% 0.2%

21.8% 0.8%

3.4% 0.1%

3.3% 0.1%

32.1% 1.1%

25.7% 0.9%
100.0% 3.5%

Page 75 ends

APPENDIX 2, TABLE 4
AVERAGE ANNUAL WORKER COMPENSATION, 2013
SERVICES TO HOUSEHOLDS EARNING $100,000 TO $150,000

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Occupation 3

Page 4 of 4 ends

Compensation 1
$35,600
$34,100
$44,800
$37,300
$29,100
$27,400
$43,400
$24,500
$31,400
$23,700
i33,700
$33,700
% of Total % of Total
Occupation Resident Services
Group 2 Workers

7.3% 0.4%

7.7% 0.4%

12.8% 0.7%

11.2% 0.6%

3.9% 0.2%

4.2% 0.2%

3.2% 0.2%

6.4% 0.3%

22.7% 1.2%

7.1% 0.4%

13.5% 0.7%
100.0% 5.3%

87.9%
1 The methodology utilized by the California Employment Development Department (EDD) assumes that hourly paid employees are employed full-time. Annual compensation is calculated by EDD by multiplying hourly wages by 40 hours per work week by 52 weeks. 2 Occupation percentages are based on the 2012 National Industry - Specific Occupational Employment survey compiled by the Bureau of Labor Statistics. Wages are based on the 2012 Occupational Employment Survey data for Alameda County. updated by the California Employment Development Department to 2013 wage levels. 3 Including occupations representing 3% or more of the major occupation group Sources: U.S. Bureau of Labor Statistics, California Employment Development Department, IMPLAN Keyser Marston Associates, Inc.
\\Sf-fs2\wp\ 16\ 16090\001 \ 100-1 S0k Newark 2-26-14; 2/27/2014; dd

Page 76 ends

APPENDIX 2, TABLE 5
WORKER OCCUPATION DISTRIBUTION, 2012
SERVICES TO HOUSEHOLDS EARNING $150,000 AND OVER

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Worker Occupation Distribution 1
Services to Households Earning
Major Occupations (2% or more) $150,000 and over
Management Occupations 4.0%
Business and Financial Operations Occupations 3.5%
Education, Training, and Library Occupations 4.5%
Healthcare Practitioners and Technical Occupations 7.2% Healthcare Support Occupations 4. 1%
Food Preparation and Serving Related Occupations 14.0%
Building and Grounds Cleaning and Maintenance Occupations 5.9% Personal Care and Service Occupations 5.6%
Sales and Related Occupations 15.0%
Office and Administrative Support Occupations 15.1%
Installation, Maintenance, and Repair Occupations 3.4%
Transportation and Material Moving Occupations 5.4%
All Other Worker Occupations - Services to Households Earning 12.4% $150,000 and over
INDUSTRY TOT AL 100.0%
1 Distribution of employment by industry is per the IMPLAN model and the distribution of occupational employment within those industries is based on the Bureau of Labor Statistics Occupational Employment Survey.

Source: Bureau of Labor Statistics, IMPLAN
Keyser Marston Associates, Inc.
\\Sf-fs2\wp\16\16090\001\150k plus Newark 2-26-14; 2/27/2014; dd Page 77 APPENDIX 2, TABLE 6
AVERAGE ANNUAL WORKER COMPENSATION, 2013
SERVICES TO HOUSEHOLDS EARNING $150,000 AND OVER

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Occupation 3

Page 1 of 4 ends

Management Occupations
Chief Executives
General and Operations Managers
Sales Managers
Administrative Services Managers
Financial Managers
Food Service Managers
Medical and Health Services Managers
Property, Real Estate, and Community Association Managers Social and Community Service Managers
Managers, All Other
All other Management Occupations (Avg. All Categories)
Business and Financial Operations Occupations
Human Resources Specialists
Labor Relations Specialists
Management Analysts
Training and Development Specialists
Market Research Analysts and Marketing Specialists
Business Operations Specialists, All Other
Accountants and Auditors
Financial Analysts
Personal Financial Advisors
Loan Officers
Weighted Mean Annual Wage
All Other Business and Financial Operations Occupations (Avg. All Categories) Weighted Mean Annual Wage
Education, Training, and Library Occupations
Vocational Education Teachers, Postsecondary
Preschool Teachers, Except Special Education
Elementary School Teachers, Except Special Education
Middle School Teachers, Except Special and Career/Technical Education Secondary School Teachers, Except Special and Career/Technical Education Self-Enrichment Education Teachers
Substitute Teachers
Teachers and Instructors, All Other, Except Substitute Teachers Teacher Assistants
All Other Education, Training, and Library Occupations (Avg. All Categories) Weighted Mean Annual Wage
2013 Avg.

Compensation 1
$199,700
$132,900
$141,700
$101,200
$144,800
$51,200
$113,500
$85,600
$74,600
$134,300
i121,600
$121,600
$74,600
$81,200
$103,200
$86,500
$86,100
$89,300
$80,100
$98,300
$81,000
$83,100
i85,800
$85,800
$57,600
$33,900
$71,200
$71,000
$71,600
$51,100
$41,500
$60,400
$32,000
iS0,200
$50,200
Sources: U.S. Bureau of Labor Statistics, California Employment Development Department, IMPLAN Keyser Marston Associates, Inc.
\\Sf-fs2\wp\16\16090\001\150k plus Newark 2-26-14; 2/27/2014; dd % of Total % of Total
Occupation Resident Services
Group 2 Workers

3.9% 0.2%

33.8% 1.3%

5.1% 0.2%

4.0% 0.2%

6.8% 0.3%

5.5% 0.2%

6.4% 0.3%

7.5% 0.3%

4.2% 0.2%

3.2% 0.1%

19.8% 0.8%
100.0% 4.0%

5.7% 0.2%

4.0% 0.1%

5.8% 0.2%

4.6% 0.2%

6.7% 0.2%

13.5% 0.5%

16.2% 0.6%

4.7% 0.2%

5.8% 0.2%

4.8% 0.2%

28.1% 1.0%
100.0% 3.5%

5.0% 0.2%

12.8% 0.6%

8.9% 0.4%

4.0% 0.2%

6.2% 0.3%

10.3% 0.5%

4.3% 0.2%

7.6% 0.3%

15.5% 0.7%

25.4% 1.1%
100.0% 4.5%

Page 78 ends

APPENDIX 2, TABLE 6
AVERAGE ANNUAL WORKER COMPENSATION, 2013
SERVICES TO HOUSEHOLDS EARNING $150,000 AND OVER

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Occupation 3

Page 2 of 4 ends

Healthcare Practitioners and Technical Occupations
Pharmacists
Physicians and Surgeons, All Other
Registered Nurses
Dental Hygienists
Pharmacy Technicians
Licensed Practical and Licensed Vocational Nurses
All Other Healthcare Practitioners and Technical Occupations (Avg. All Categories) Weighted Mean Annual Wage
Healthcare Support Occupations
Home Health Aides
Nursing Assistants
Dental Assistants
Medical Assistants
All Other Healthcare Support Occupations (Avg. All Categories) Weighted Mean Annual Wage
Food Preparation and Serving Related Occupations
First-Line Supervisors of Food Preparation and Serving Workers Cooks, Fast Food
Cooks, Restaurant
Food Preparation Workers
Bartenders
Combined Food Preparation and Serving Workers, Including Fast Food Counter Attendants, Cafeteria, Food Concession, and Coffee Shop Waiters and Waitresses
Dining Room and Cafeteria Attendants and Bartender Helpers Dishwashers
Hosts and Hostesses, Restaurant, Lounge, and Coffee Shop All Other Food Preparation and Serving Related Occupations (Avg. All Categories) Weighted Mean Annual Wage
Building and Grounds Cleaning and Maintenance Occupations First-Line Supervisors of Housekeeping and Janitorial Workers First-Line Supervisors of Landscaping, Lawn Service, and Groundskeeping Workers Janitors and Cleaners, Except Maids and Housekeeping Cleaners Maids and Housekeeping Cleaners
Landscaping and Groundskeeping Workers
All Other Building and Grounds Cleaning and Maintenance Occupations (Avg. All Call Weighted Mean Annual Wage
2013 Avg.

Compensation 1
$131,300
$190,500
$115,100
$98,900
$47,100
$60,400
$104,800
$104,800
$29,100
$35,300
$40,300
$37,700
$34,600
$34,600
$31,700
$19,900
$26,200
$22,800
$22,600
$21,500
$20,600
$21,600
$19,400
$21,600
$20,900
$22,700
$22,700
$47,200
$53,300
$31,800
$29,600
$31,600
$32,700
$32,700
Sources: U.S. Bureau of Labor Statistics, California Employment Development Department, IMPLAN Keyser Marston Associates, Inc.
\\Sf-fs2\wp\16\16090\001\150k plus Newark 2-26-14; 2/27/2014; dd % of Total % of Total
Occupation Resident Services
Group 2 Workers

4.6% 0.3%

4.2% 0.3%

30.1% 2.2%

3.6% 0.3%

6.3% 0.5%

9.3% 0.7%

41.9% 3.0%
100.0% 7.2%

22.6% 0.9%

32.1% 1.3%

9.6% 0.4%

16.4% 0.7%

19.3% 0.8%
100.0% 4.1%

7.0% 1.0%

4.7% 0.7%

8.9% 1.2%

6.5% 0.9%

5.1% 0.7%

26.1% 3.7%

3.7% 0.5%

20.8% 2.9%

3.2% 0.4%

4.3% 0.6%

3.0% 0.4%

6.6% 0.9%
100.0% 14.0%

3.4% 0.2%

3.0% 0.2%

51.6% 3.0%

11.0% 0.6%

25.5% 1.5%

5.4% 0.3%
100.0% 5.9%

Page 79 ends

APPENDIX 2, TABLE 6
AVERAGE ANNUAL WORKER COMPENSATION, 2013
SERVICES TO HOUSEHOLDS EARNING $150,000 AND OVER

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Occupation 3

Page 3 of 4 ends

Compensation 1
$42,900
$25,500
$22,300
$22,700
$29,500
$23,600
$22,600
$50,600
$28,200
$27,300
$27,300
$49,500
$26,400
$33,900
$28,700
$71,400
$73,800
$34,000
$34,000
$62,400
$45,900
$43,200
$34,600
$29,100
$60,100
$41,800
$43,500
$37,400
$41,700
$41,700
$80,500
$51,400
$50,300
$58,500
$31,000
$45,800
$51,200
$51,200
Sources: U.S. Bureau of Labor Statistics, California Employment Development Department, IMPLAN Keyser Marston Associates, Inc.
\\Sf-fs2\wp\16\16090\001\150k plus Newark 2-26-14; 2/27/2014; dd % of Total % of Total
Occupation Resident Services
Group 2 Workers

3.7% 0.2%

5.5% 0.3%

3.7% 0.2%

6.2% 0.3%

13.9% 0.8%

16.8% 0.9%

24.3% 1.4%

6.0% 0.3%

5.2% 0.3%

14.8% 0.8%
100.0% 5.6%

10.5% 1.6%

26.9% 4.0%

3.8% 0.6%

40.0% 6.0%

3.0% 0.5%
3A% 0.5%

12.4% 1.9%
Hm.0% 15.0%

6.5% 1.0%

7.4% 1.1%

9.5% 1.4%

7.3% 1.1%

12.1% 1.8%

3.4% 0.5%

3.9% 0.6%

10.3% 1.5%

13.8% 2.1%

25.8% 3.9%
100.0% 15.1%

7.9% 0.3%

5.8% 0.2%

22.3% 0.8%

3.6% 0.1%

3.5% 0.1%

31.1% 1.0%

25.8% 0.9%
100.0% 3.4%

Page 80 ends

APPENDIX 2, TABLE 6
AVERAGE ANNUAL WORKER COMPENSATION, 2013
SERVICES TO HOUSEHOLDS EARNING $150,000 AND OVER

RESIDENTIAL NEXUS ANALYSIS

CITY OF NEWARK, CA
Occupation 3

Page 4 of 4 ends

Transportation and Material Moving Occupations
Bus Drivers, School or Special Client
Driver/Sales Workers
Heavy and Tractor-Trailer Truck Drivers
Light Truck or Delivery Services Drivers
Taxi Drivers and Chauffeurs
Parking Lot Attendants
Cleaners of Vehicles and Equipment
Laborers and Freight, Stock, and Material Movers, Hand
Packers and Packagers, Hand
All Other Transportation and Material Moving Occupations (Avg. All Categories) Weighted Mean Annual Wage
2013 Avg.

Compensation 1
$35,600
$34,100
$44,800
$37,300
$29,100
$27,400
$24,500
$31,400
$23,700
i33,400
$33,400
% of Total % of Total
Occupation Resident Services
Group 2 Workers

9.2% 0.5%

7.2% 0.4%

12.5% 0.7%

10.8% 0.6%

4.5% 0.2%

4.4% 0.2%

6.1% 0.3%

21.6% 1.2%

6.9% 0.4%

16.8% 0.9%
100.0% 5.4%

87.6%
1 The methodology utilized by the California Employment Development Department (EDD) assumes that hourly paid employees are employed full-time. Annual compensation is calculated by EDD by multiplying hourly wages by 40 hours per work week by 52 weeks. 2 Occupation percentages are based on the 2012 National Industry- Specific Occupational Employment survey compiled by the Bureau of Labor Statistics. Wages are based on the 2012 Occupational Employment Survey data for Alameda County. updated by the California Employment Development Department to 2013 wage levels. 3 Including occupations representing 3% or more of the major occupation group Sources: U.S. Bureau of Labor Statistics, California Employment Development Department, IMPLAN Keyser Marston Associates, Inc.
\\Sf-fs2\wp\16\16090\001\150k plus Newark 2-26-14; 2/27/2014; dd

Page 81 ends

APPENDIX L
RESOLUTION NO. 10,132
RESOLUTION NO. 10,132

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWARK ESTABLISHING A PARKS IMPACT FEE OF $7,460

PER RESIDENTIAL UNIT UNDER GOVERNMENT CODE
SECTION 66001, REPEALING THE PARK-IN-LIEU FEE
(RESOLUTION NO. 5799) AND AMEND THE MASTER FEE
SCHEDULE (RESOLUTION NO. 10094) TO REFLECT THESE

CHANGES
WHEREAS, the City Council of the City of Newark ("City") is authorized to prescribe and establish fees in regard to services or functions performed by the City for the public in a governmental and proprietary capacity; and
WHEREAS, California Government Code Section 66000 et seq. allows local governments to impose impact fees on new development in order to recover the cost of improvements that are needed to serve that new development; and
WHEREAS, the City of Newark adopted a Park-in-lieu fee by Resolution No. 5799 on May 25, 1989 and established a Quimby Fee by Ordinance No. 264, introduced on March 22, 1990; and
WHEREAS, both of these existing fees are outdated and need to be brought into conformity with current conditions in the City; and
WHEREAS, the City desires to have a single, updated parks impact fee that will ensure that new development pays the cost to continue the current parks standard; and WHEREAS, the City has prepared the attached 2013 Newark Parks Impact Fee Study which establishes a reasonable relationship between the parks fee and the purpose of the fee; and WHEREAS, the City has duly noticed, advertised, scheduled, and held a Public Hearing on September 26, 2013; and
WHEREAS, on September 26, 2013, the City Council reviewed material presented in the staff report including the Newark Parks Impact Fee Study, concerning the purpose of the fee and the relationship between the fee and its purpose; and
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Newark which hereby finds, declares, and resolves that:
1) The City herby receives and approves the Newark Parks Impact Fee Study. 2) After considering the Newark Parks Impact Fee Study, this Resolution, and the testimony received at a public hearing, the City herby makes the following findings:
a) The Park Impact Fee approved pursuant to this Resolution shall be used to fund the cost of parkland acquisition, park and recreation facility development, construction attributable to new residential development in the City, and any administrative cost associated with the park impact fee program; and
b) The Newark Parks Impact Fee Study demonstrates that there is a reasonable relationship between the amount of the Park Impact Fee and the cost of park facilities attributable to the development upon which the fee is proposed. Since the need for park and recreation facilities is inherently population-driven associated park facility costs are assessed based on average household population.
3) The City finds pursuant to the California Environmental Quality ACT ("CEQA") this action is not a "project" because the Resolution provides a mechanism for funding the acquisition and development of parks but does not involve a commitment to any specific project for such purposes that may result in a potential significant impact on the Environment (CEQA guidelines Section 15378)
4) The City does hereby approve the following park impact fee on new residential development for park land acquisition and development of park and recreational facilities.

Park Impact Fee of $7,460 per residential dwelling unit. 5) The Park Impact Fee would not apply to approved projects that have a Development Agreement or Vesting Tentative Map unless the provisions of the document allow the application of such fees.
6) Residential Developers shall be given a credit against this fee for the actual cost of public parks included in their developments.
7) The Park-in-Lieu fee established by Resolution 5799 is hereby rescinded. 8) The Master Fee Schedule is hereby amended to add a Park Impact Fee of $7,460 and to delete the Park In Lieu Fee and the Quimby Fee, as outlined in Exhibit A. 9) Effective Date: This resolution shall be effective upon the effectiveness of the repeal of Ordinance No. 264 (Quimby Fee).

Resolution No. 10,132 2
I HEREBY CERTIFY the foregoing resolution was introduced at a regular meeting of the City Council of the City of Newark held on September 26, 2013, by Vice Mayor Apodaca, who moved its adoption and passage, which motion was caITied after being duly seconded, and passed by the following vote:

AYES:

NOES:

ABSENT:

SECONDED:

Resolution No. 10,132
Council Members Collazo, Freitas, Marshall, Vice Mayor Apodaca, and Mayor Nagy
None
None
Council Member Collazo
3 APPROVED:
�1,fl�
s/ALAN L. NAGY
Mayor
Exhibit A
f
):,.p ,,.J;f ! .,�·-H,(;'(1
1 , /.\:.;•{•111,B ir it / .,. \
C !)J t �·t ,· I •i: {I)" 11,,
,,(t/,JF,<<',di,, 1
, 1;•1,, ,, 11 1p ,i .. 1,\1 t ,, j; 'I
V. CAPITAL ASSETS - CONSTRUCTION ENTERPRISE FUND
A. DEVELOPMENT
104-0000 3740 1. Street Trees
208-0000
a. City Planted (three year maintenance) 325/tree
104-0000 3850 2. Park lmgact Fee 7 460/dwellin11 unit
6 Parl� iA lieH
a-, S1,1bEli11isieAs *
flt SiAgle family heme 2,998/ElwelliAg HAit
� MHlti family heme 2,27BfElwelliRg l!Hit
Ir. GeRElitieRal 1,1se peFmits **
flt +we SF less beEIFeems 1,BQQfElwelliRg HRit
� +hFee beEIFeems 2,QQQ,101,YelliRg HRit
W l<eHr er meFe beEIFeems 2,2QQfElwelliRg HRit
! 5StablisheEI by OFEliRaRce Ne. 264. See Ghapter 16.3Q NMG for ElefiRitieAs ef siRgle aREI mHlti family hemes.
400-0000 3860 PSF ** AA aEIElitieRal fee, baseEI SR actHal cast fer sePrices, R�ay be chaFgeEI feF FeRtals •• ! .... - - :.: ., __ ,

3. Capital Facilities*
Resolution No. 10,132
City of Newark
a.
37101 Newark Boulevard, Newark, CA 94560-3796
(510) 578-4000
Public Safety
(1) Single-family residential
(2) Multi-family residential
(3) Commercial
58 ........... '. ...... ,.. ........
1,989/unit
2,079/unit

1.73/ square foot
' l
2013 Newark Parks Impact Fee Study
Summary
This study calculates the cost to maintain a standard of three acres of improved parkland per 1,000 residents at $7,476.52. This amount has a reasonable relationship to the purpose ofthe parks impact fee and would be the maximum parks impact fee amount for the City of Newark.

Purpose of the New ark Parks Im pact Fee
The City of Newark's parks impact fee is intended to ensure that the city has adequate parks facilities to serve both new and existing residents, commensurate with the level of parks facilities available to current residents of the city and the standard set forth in the city's general plan.

The recreation element ofN ewark's general plan establishes a standard of three acres of parkland for every 1,000 residents. This is compatible with the amount of parkland that is currently available to Newark residents, as is shown through the data and calculations below.

Park Acres
Community Park 16.54
Lakeshore Park 25.96
Musick Park 0.76
MacGregor School Park 10.3
Eucalyptus Grove North 1.64
Mayhews Landing Park 8.35
Mirabeau Park 6.02
Bridgepointe Park 3.53
Birch Grove Park 14.37
Ash Street Park 6.00
Civic Center Park 5.00
Eucalyptus Grove South 3.38
Byington Park 2.97
Silliman Recreation Center Park 24.23
TOTAL 129.05
According to the 2010 U.S. Census, the population ofNewark is 42,573. This means that Newark currently has a ratio of3.03 park acres per 1,000 residents. Based on this Resolution No. 10,132
information and the standard set in the Newark General Plan, the impact is calculated based on 3 acres of parkland per 1,000 residents.

Calculation of the Newark Parks Impact Fee
The calculation to develop the impact fee is as shown below:

Cost per household = (Total cost of one acre of parkland) X (Parks standard per person) X
(People per household)
Each of the three inputs to the calculation is explained below.

Total cost of one acre of park/am/
The total cost of one acre of parkland includes both the land cost and the improvement cost. The land cost is the average asking price per acre of vacant land over 0.75 acre in size in the Tri-Cities area (Newark, Fremont and Union City) on one day during the period this study was being prepared (April 26, 2013). Smaller properties were eliminated because of their higher price per acre and the fact that the smallest park in Newark is 0.76 acres (Musick Park). This sample included 15 properties, which are listed in the appendix to this study. To ensure that the average price is reasonable and not unduly influenced by outliers, the two highest and two lowest costs per acre were discarded for the calculation. The result was an average land cost of$345,792.67 per acre.

The improvement cost includes the cost of park design and planning as well as the cost of the improvements themselves. These costs would vary depending on the size of the park and the level of improvements. Park design and planning could be accomplished for approximately $25,000 to $75,000 per park, depending on the level of complexity and the amount of work completed by city staff. For purposes of these calculation, an average of $25,000 per acre of parkland is included for design and planning.

Industry standards for park improvements vary according to the level of improvements needed, with passive use facilities and natural areas requiring less funds per acre and active facilities such as playfields, playgrounds, and bathrooms requiring more. New parks in Newark are expected to be primarily for active use, and therefore an average cost of$200,000 per acre is anticipated.

Parks standard per person
The parks standard, as established by the Newark General Plan and the current situation in the city, is 3 acres per 1,000 residents.

People per houselto/d
Resolution No. 10,132
The average number of people per household according to the 2010 U.S. Census is 3.28.

Fee Amount
Using the formula and data described above, the fee amount would be $7,462.52 per household or dwelling unit.

Reasonable Relationship between the Purpose of the Fee and the Amount of the Fee The fee per dwelling unit is a direct calculation of the cost to acquire and improve the land needed to maintain the city's standard of three acres of parkland per 1,000 residents. Therefore, there is a reasonable relationship between the purpose of the fee and the amount of the fee.

Resolution No. 10,132
Appendix: Data Used in Land Cost Calculations
Listings for Vacant Land in Newark, Fremont & Union City on mis.com on April 26, 2013
Address City MLS # Acres Asking $$/acre
Price
0 VARGAS RD Fremont 81219469 20.03 1,250,000 $62,406.39 42088 VARGAS RD Fremont 40575230 20.03 1,250,000 $62,406.39 0 MILL CREEK RD Fremont 40600478 54.08 3,599,000 $66,549.56 0 E WARREN AV Fremont 81300462 2.27 350,000 $154,185.02 00 Warren Ave Fremont 40610199 2.27 350,000 $154,185.02 501 CRYSTALLINE Fremont 21303973 18.29 3,000,000 $164,024.06 OMAHA WAY Fremont 40595845 6.77 1,200,000 $177,252.58
8100 MOWRY AVE W Newark 40599644 34.36 6,500,000 $189,173.46 4897 ST FRANCIS TE Fremont 81206823 6.19 1,200,000 $193,861.07 4700 HORNER ST Union City 40611674 1.7 480,000 $282,352.94 467 RIVIERA DR Union City 40600791 1.25 430,000 $344,000.00 71 MONTCL.AIRE DR Fremont 40593157 2.67 1,999,888 $749,021.72 36341 MISSION BLVD Fremont 40606221 0.79 1,050,000 $1,329,113.92 0 UNION CITY BLVD Union City 40430173 2 3,500,000 $1,750,000.00 37629 FREMONT BLVD Fremont 40586326 0.92 2,150,000 $2,336,956.52 Resolution No. 10,132

APPENDIX M
RESOLUTION NO. 10505
RESOLUTION NO. 105 0 5

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK INCREASING THE PARKS IMPACT FEE UNDER
GOVERNMENT CODE SECTION 66001, REPEALING THE
FEE PREVIOUSLY ESTABLISHED IN RESOLUTION NO.
10132, AND AMENDING THE MASTER FEE SCHEDULE

TO REFLECT THESE CHANGES
WHEREAS, the City Council of the City of Newark, a general law city ("City"), is authorized to prescribe and establish fees in regard to services or functions performed by the City for the public in a governmental and proprietary capacity; and WHEREAS, California Government Code Section 66000 et seq. allows local governments to impose impact fees on new development in order to recover the cost of improvements that are needed to serve that new development; and WHEREAS, the existing Parks Impact Fee is insufficient, outdated, and needs to be brought into conformity with current conditions in the City; and WHEREAS, the City desires to have an updated Parks Impact Fee that will ensure that all new development pays the cost to continue the current parks standard; and WHEREAS, the City has retained Keyser Marston Associates to prepare the Parks and Recreation Facility Development Impact Fee Study, dated May 2016, which establishes a reasonable relationship between the parks fee and the purpose of the fee, which study is incorporated herein and attached as Exhibit A; and
WHEREAS, the City has duly noticed, advertised, scheduled, and held a Public Hearing on June 9, 2016; and
WHEREAS, on June 9, 2016, the City Council reviewed material presented in the staff report including the Parks and Recreation Facility Development Impact Fee Study, concerning the purpose of the fee and the relationship between the fee and its purpose; and NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Newark which hereby finds, declares, and resolves that:
1) The City herby receives and approves the Parks and Recreation Facility Development Impact Fee Study ("Fee Study"), which is attached as Exhibit A to this Resolution.
2) In adopting this Resolution, the City Council is exercising its powers under Article XI, Sections 5 and 7 of the California Constitution, Chapter 5 of Division 1 of the Government Code ("Mitigation Fee Act"), commencing with Section 66000, collectively and separately.
3) After considering the Fee Study, this Resolution, and the testimony received at a public heating, the City Council hereby makes the following findings:
a) In accordance with Section 66001, subdivision a, paragraph 1 of the Mitigation Fee Act, the purpose of the fees set forth in this Resolution, as specified in Exhibit A, is to provide for an expansion in parks and recreation capital facilities in the City as new growth occurs; b) In accordance with Section 66001, subdivision a, paragraph 2 of the Mitigation Fee Act, the fees collected pursuant to this Resolution, as specified in Exhibit A, shall be used to acquire land for parks and to construct improvements, such as playing fields, a skate park, or dog park, and other recreational uses and facilities for the City, and shall be used to fund any administrative cost associated with the park impact fee program;
c) In accordance with Section 66001, subdivision a, paragraph 3 of the Mitigation Fee Act, there is a reasonable relationship between the fees use (to pay for the acquisition of park and recreational facilities) and the type of development for which the fees are imposed in that the fees will be applied to residential development in the City, which will generate demands for park and recreational facilities;
d) In accordance with Section 66001, subdivision a, paragraph 4 of the Mitigation Fee Act, the Fee Study demonstrates that there is a reasonable relationship between the amount of the Park Impact Fees and the cost of park facilities attributable to the development upon which the fee is proposed. Since the need for park and recreation facilities is inherently population-driven associated park facility costs are assessed based on average household population; and
e) In accordance with Section 66001, subdivision b of the Mitigation Fee Act, there is a reasonable relationship between the amount of the fees and cost of providing the parkland and park and recreational facilities attiibutable to the development in the City upon which the fees are imposed in that the fees have been calculated by apportioning the cost of parkland acquisition and park facilities construction to the number of residents attached by each type of new residential unit. 4) The City finds pursuant to the California Environmental Quality Act ("CEQA") this action is not a "project" because the Resolution provides a mechanism for funding the acquisition and development of parks but does not involve a commitment to any specific project for such purposes that may result in a potential significant impact on the Environment (CEQA guidelines Section 15378, Pub. Res. Code Section 21080(b)(8)(D)).

Resolution No. 10505 2
5) The cost estimates set forth in the Fee Study are reasonable estimates for acquiring parkland and constructing park and recreational facilities and the fees expected to be generated by future development will not exceed the future projected cost of acquiring parkland and constrncting park and recreational facilities.
6) The method of allocation of the fees to particular development bears a fair relationship and is roughly proportional to each development's burden on and benefits from the park and recreational facilities to be funded by the fees, in that the fees are calculated based on the number of residents each particular development will attract.
7) The Fee Study is a detailed analysis of how parks and recreational services will be affected by development in the City and the parks and recreational facilities necessary to accommodate that development.
8) The fees are consistent with the General Plan and, pursuant to Government Code Section 65913.2, the City Council has considered the effects of the fees with respect to the City's housing needs as established in the housing element of the General Plan.
9) The fee amounts set forth in this Resolution include the fair and reasonable costs of administration of the fee programs and are within the requirements of the Mitigation Fee Act and other applicable law.
10) The fees are subject to adjustment, which approximate the fluctuation in market costs, and shall be adjusted annually in accordance with the Engineering News Record Constrnction Cost Index, San Francisco, California. Additionally, seeing that land acquisition costs are an important component of the fee, the City shall review land acquisition costs every two years. 11) The City does hereby approve the following park impact fees on new residential development for park land acquisition and development of park and recreational facilities as follows:

Type of Unit Fees for Projects that Do Not Fees for Projects that Dedicate Adequate Land for Dedicate Adequate Land for
Parks Parks
Single Family Unit $25,000 $7,500
Multiple Family Units $18,000 $5,300
(The fees shall be adjusted annually in accordance with the Engineering News Record Construction Cost Index, San Francisco, California.) Resolution No. 10505 3
12) The Park Impact Fees shall not apply to approved projects that have a Development Agreement or Vesting Tentative Map unless the provisions of the document allow the application of such fees.
13) Residential Developers shall be given a credit against this fee for the actual cost of public parks included in their developments.
14) Resolution No. 10,132, which established the previous Park Impact Fee, is hereby rescinded.
15) The Master Fee Schedule is hereby amended to reflect the Park Impact Fees as set forth in this Resolution.
16) Effective Date: This resolution shall be effective upon date of adoption of this Resolution. In accordance with Government Code Section 66017, the fees set by this Resolution shall be effective 60 days from the effective date of this Resolution.
17) Severability. Each component of the fees and all portions of this Resolution are severable. Should any individual component of the fees or other provisions of this Resolution be adjusted to be invalid and unenforceable, the remaining component or provisions shall be and continue to be fully effective, and the fees shall be fully effective except as to that component which has been judged to be invalid.

Resolution No. 10505 4
I HEREBY CERTIFY the foregoing resolution was introduced at a regular meeting of the City Council of the City of Newark held on June 9, 2016, by Council Member Bucci, who moved its adoption and passage, which motion was carried after being duly seconded, and passed by the following vote:

AYES:

NOES:

ABSENT:

SECONDED:

Council Members Hannon, Collazo, Bucci, Vice Mayor Freitas, and Mayor Nagy
None
None
Vice Mayor Freitas
APPROVED:
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City lerk
s/ ALAN L. NA
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Mayor
Resolution No. 10505 5

APPENDIX N

PARK AND RECREATION

FACILITY

DEVELOPMENT IMPACT

FEE STUDY
Resolution No. 10505
Exhibit A

KEYSER MARSTON ASSOCIATES

PARK AND RECREATION FACILITY DEVELOPMENT

IMPACT FEE STUDY
Prepared for:

City of Newark
Prepared by:

Keyser Marston Associates, Inc.

May 2016

TABLE OF CONTENTS
I. INTRODUCTION, SUMMARY OF CURRENT PROGRAM, RESULTS, AND RECOMMENDATIONS ..................................................................................................... 1 A. Summary of Current Program and City Objectives for Impact Fee ............................... 1 B. Report Background and Legal Context ........................................................................ 1 C. Facility Standards and Cost Allocation Approach ......................................................... 2 D. Maximum and Recommended Fee Schedules ............................................................ 3 II. MITIGATION FEE ACT NEXUS FINDINGS ...................................................................... 5 A. Purpose ....................................................................................................................... 5 B. Use of Fee ................................................................................................................... 5 C. Relationship ................................................................................................................. 5 D. Need ............................................................................................................................ 5 E. Proportionality ............................................................................................................. 6 Ill. DEMAND FOR NEW PARK AND RECREATION FACILITIES AND SUPPORTED IMPACT FEE AMOUNTS .................................................................................................. 7 A. Service Population ....................................................................................................... 7 B. Average Household Size ............................................................................................. 7 C. Parks and Recreation Facility Inventory and Standards ............................................... 7 D. Parkland Development Costs ...................................................................................... 8 E. Park and Recreation Facilities Needed to Accommodate New Residential Development ............................................................................................................... 9 F. Maximum Impact Fees Supported by Nexus Analysis ................................................. 9 IV. USE OF FEE REVENUE .................................................................................................. 11 V. IMPACT FEES IN NEIGHBORING CITIES, MAXIMUM SUPPORTED FEES, AND RECOMMENDED FEES .................................................................................................. 12 A. Park and Recreation Fees in Neighboring Jurisdictions .............................................. 12 B. Maximum and Recommended Impact Fees ................................................................ 12 VI. FEE PROGRAM IMPLEMENTATION AND ADMINISTRATION ....................................... 14

1. Credits, Reimbursement, and Exemptions .................................................................. 14

2. Securing Supplemental Funding ................................................................................. 14

3. Annual Review and Periodic Study Update ................................................................. 15 I. INTRODUCTION, SUMMARY OF CURRENT PROGRAM, RESULTS, AND

RECOMMENDATIONS
This Parks and Recreation Facility Development Impact Fee nexus analysis provides the City of Newark (the City) with the necessary technical documentation to support updating its current Park Impact Fee. This nexus analysis has been prepared by Keyser Marston Associates, Inc. (KMA).

A. Summary of Current Program and City Objectives for Impact Fee The City currently levies a park impact fee of $7,460 per unit. The impact fees are used to acquire land and construct parks to meet the City's per capita parks service standard of 3 acres of parks per 1,000 residents. The City's per capita park standards and service park standards are contained in the City's General Plan.

The City's park impact fee is an "all-inclusive" park fee that addresses the impacts of new residential development on all types of recreational facilities including parks, playfields, aquatics and recreation centers. Although some cities have fees that are targeted to particular uses, the all-inclusive strategy is preferable because it provides the City with a greater degree of flexibility.

B. Report Background and Legal Context
The Mitigation Fee Act (AB 1600 et seq.) permits cities to adopt parks and recreation development impact fees on new development to fund the associated, additional costs of providing parks and recreation capital facilities. Unlike the City's current land dedication requirement, which was established in conformance with the Quimby Act, the Mitigation Fee Act allows for fees to be charged to all new development that increases the need for capital facilities, including in-fill projects. 1
This Report provides the necessary technical analysis to support a schedule of fees to be established by an Impact Fee Ordinance and Resolution. The Mitigation Fee Act allows the City to adopt by Resolution a fee schedule consistent with the supporting technical analysis and findings provided in this Report. The Resolution's approach to setting the fee allows periodic adjustments of the fee amount as may be necessary over time, without amending the enabling Ordinance.

The technical analysis in this Report estimates the parks and recreation facility fee schedule that will fund new development's "fair share" contribution to future City investments in parks.

The key requirements of the Mitigation Fee Act that determine the structure, scope, and amount of the proposed Fee Program are as follows:
1 Quimby Act fees under the Subdivision Map Act can only be charged on new, subdivided residential development.

Quimby Act fees would not apply to projects that do not require a subdivision map, such as infill projects.

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• Collected for Capital Facility and Infrastructure Improvements. Development impact fee revenue can be collected and used to cover the cost of capital facilities and infrastructure required to serve new development and growth in the City. However, impact fee revenue cannot be used to cover the operation and maintenance costs of these or any other facilities and infrastructure.
• Cannot Fund Existing Needs. Impact fee revenue cannot be collected or used to cover deficiencies in existing City capital equipment and facilities. The portion of capital costs required to meet the needs of the City's existing population must be funded through other sources. Capital facility investments that increase service standards for existing and new development must be split on a "fair share" basis according to the proportion attributable to each.
• Must be Based on a Rational Nexus. An impact fee must be based on a reasonable nexus, or connection, between new growth and development and the need for a new facility or improvement. As such, an impact fee must be supported by specific findings that explain or demonstrate this nexus. In addition, the impact fee amount must be structured such that the revenue generated does not exceed the cost of providing the facility or improvement for which the fee is imposed.

The City can choose to charge parks and recreation development impact fees below the maximum, supportable fee schedule. Such downward adjustments in the fee schedule, if selected, are typically based on policy considerations related to considerations of development feasibility and fee levels in peer cities.

C. Facility Standards and Cost Allocation Approach
A facility standard is a policy that indicates the amount of facilities required to accommodate service demand. Examples of facility standards include building square feet per capita and park acres per capita. Standards may also be expressed in monetary terms such as the replacement value of facilities per capita. The adopted facility standard is an important component in determining development's need for new facilities and the amount of the supported fee.

Standards determine new development's fair share of planned facilities and ensure that new development does not fund deficiencies associated with the existing city infrastructure.

The City has a long established a standard of 3 acres per 1,000 residents. This standard was reaffirmed in the updated General Plan that was approved in 2013 after significant community input. The parks and recreation facilities fees calculated in this report uses the City's stated service standard and the cost of developing new parks to estimate the cost of maintaining the existing level of service to new residents through the buildout of the General Plan. New development will be required to fund the expansion of facilities at the same rate that existing development has provided to date. Thus, new development will not be funding any existing deficiency.

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Excluding school-owned parks, there is currently approximately 3.01 acres of parks per 1,000 residents, which is equivalent to the City's stated per capita service standard.

The City has identified some, but not all of the planned new parks to potentially be funded by the fee (and other sources, as necessary) through the 2035 planning horizon of the General Plan. 2 The City is in the process of preparing a Park Master Plan, which will prioritize future park development.

D. Maximum and Recommended Fee Schedules
Table 1 shows the City's maximum supportable parks and recreation fee schedule as well as the recommended fee schedule. The maximum fee schedule is based on the nexus findings and technical analysis contained in this Report and represents the maximum parks and recreation fees the city could charge consistent with the Mitigation Fee Act. The calculation of the fee is presented in Section Ill of this report. The recommended fee schedule reflects a downward adjustment from the maximum supported fee. The recommendations are based on the fee levels being charged by surrounding communities. While we have identified a recommended fee range, the City has the discretion to adopt any fee amount up to the maximum amount supported by the nexus analysis.

Consistent with the City's current fee structure, we are recommending that the impact fee remain an "all-inclusive" park fee that addresses the impacts of new residential development on all types of recreational facilities including parks, playfields, aquatics and recreation centers. Although some cities have fees that are targeted to particular uses, the all-inclusive strategy is preferable because it provides the City with a greater degree of flexibility.

The parks and recreation development impact fees will apply to new residential development to fund a share of future parks and recreation capital facilities investments in the City. The fee estimates include a 2 percent (2%) fee program administration fee, consistent with other Mitigation Fee Act program administrative costs in many other California jurisdictions. 3 2 Appendix Table A-3
3 The 2 percent administration cost allowance is designed to cover the costs of preparing the development impact fee as well as the required reporting, auditing, collection and other annual administrative costs involved in overseeing the program. Development impact fee programs throughout California have applied similar administrative charges.

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Table 1: Maximum and Recommended Park Fees
Maximum Supported Fees4
Fee for Projects that Fee for Projects
Do Not Dedicate that Dedicate
Land for Parks Land for Parks
Single Family Units $31,000 $7,700
Multi Family Units $31,000 $7,700
Recommended Fees
Fee for Projects that Fee for Projects
Do Not Dedicate Land that Dedicate
for Parks Land for Parks
$6,500 to
$22,000 to $25,000 $7,500
$4,500 to
$15,000 to $18,000 $5,300
As shown in Table 1, the estimated maximum parks and facilities impact fee to fund both land acquisition and the construction of parks improvements that could be levied approximates $31,000 per dwelling unit. For projects that dedicate land, a fee is only needed to fund facilities.

The maximum facility fee amount is $7,700 per dwelling unit.

Fee comparisons with surrounding cities indicate that at these maximum levels, the City would be adopting parks and recreation fees that exceed the amounts being levied in surrounding cities. Given this consideration as well as the consideration that the City levies other impact fees, we are recommending that the adopted fees be less than the maximum fee levels. We are also recommending reduced fee levels on multi-family construction because of the reduced capacity of multi-family developments to absorb the same level of per unit costs as single family developments. While we have identified a recommended fee range, the City has the discretion to adopt any fee amount up to the maximum amount supported by the nexus analysis.

As shown in Table 1, the recommended fee to cover both land acquisition and facilities costs is $22,000 to $25,000 per unit for single family units and $15,000 to $18,000 per unit for multifamily units. For developments that dedicate sufficient land for park development the recommended fee range would be $6,500 to $7,500 per unit for single family units and $4,500 to $5,300 per unit for multifamily units.

E. Fee Indexing
Since land and construction costs continue to rise, it is important that the cost be indexed to inflation. The fee should be adjusted annually by a construction cost index, such as the Engineering News Record. Furthermore, land acquisition costs, which are an important component of the total fee and actual construction costs should be reviewed by the City at least every two years.
4 The calculation of the maximum fee levels is presented in Section Ill of this report.

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11. MITIGATION FEE ACT NEXUS FINDINGS
This chapter describes the necessary "nexus" between new development in Newark and the proposed capital facilities investments, as required under the Mitigation Fee Act - Government Code Section 66000 (AB1600). The new parks and recreation development impact fees will fund the investments in parks and recreation facilities, improvements, and land acquisitions required to maintain existing levels of park facilities service in the City - the "fair share" contribution of new development.

Nexus findings address: (1) the purpose of the fee and a related description of the facility for which fee revenue will be used, (2) the specific use of fee revenue, 3) the relationship between the facility and the type of development, (4) the relationship between the need for the facility and the type of development, and (5) the relationship between the amount of the fee and the proportionality of cost specifically attributable to new development. The subsections below describe the nexus findings for the Parks and Recreation Facility Development Impact Fee.

A. Purpose
The fee will ensure an expansion in parks and recreation capital facilities in the City of Newark as new growth occurs.

B. Use of Fee
Fee revenue will be used to acquire land for parks and to construct improvements, such as playing fields, a skate park, or dog park, etc.

C. Relationship
New residential development in the City of Newark will increase the demand for and use of parks and recreation facilities. Fee revenue will be used to help fund new parks and recreation facilities in response to the increased demand.

0. Need
Each new residential project will bring new residents to the City and will generate incremental, new demand and use of the City's parks and recreation facilities. New revenues to fund investments in additional parks and recreation capital improvements are necessary to maintain the City's parks and recreation capital facilities service standards.

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E. Proportionality
The maximum, supportable parks and recreation fee schedule has been based on a parks and recreation capital facilities cost estimate derived by applying the proportionate increase in residential population associated with new development to the existing operative service standard/value of parks and park improvements. As a result, the fee program cost estimates are directly proportional to the relative increase in new development.

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Ill. DEMAND FOR NEW PARK AND RECREATION FACILITIES AND SUPPORTED IMPACT

FEE AMOUNTS
A. Service Population
The City's General Plan has established the City's standard for functional public parkland at 3.0 acres per 1,000 residents. Therefore, under the City's policy, new residents are the determining driver/service population for new park and recreation facilities. As shown in Table 2, the City's population totaled approximately 43,342 in 2013 at the time that the General Plan was prepared. By 2035 the population is anticipated to reach 60,510, reflecting an increase of 17,168 people over roughly the next 20 years.

Table 2: Service Population
2013 Population
New Development (through-2035)
Total, 2035
Source: General Plan
B. Average Household Size
Residents
43,342
17,168
60,510
Service Population
43,342
17,168
60,510
Since residential park impact fees are often levied per residential unit, the average household size is needed to convert the demand of new residents into the demand of new residential units.

The residential occupant density factors for both single-family and multi-family units are derived from data from the US Census' American Community Survey. As shown below, the average household size is 3.23 persons per household.

Table 3: Average Household Size Assumptions
I All Residential Units 3.23 I
Source: American Community Survey 2010 - 2014.

C. Parks and Recreation Facility Inventory and Standards As summarized in Table 4 and detailed in Appendix Table A-1, the City has a total inventory of 130.6 acres of existing parks. Of the existing acreage, approximately 44% are community parks, 45% are neighborhood parks, and 11 % are specialized parks. There are currently no parks under construction. The City is currently preparing a Parks Master Plan, which will detail the City's objectives for future park construction.

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Table 4: Existing and Under Construction City Park Acres Existing Acres Under Construction Total Acres
Community Parks 58.1 0 58.1
Neighborhood Parks 58.8 0 58.8
Specialized Recreation Areas 13.7 Q 13.7
All City Park Acreaqe 130.6 0 130.6
Source: Newark General Plan. Park Inventory is detailed in Appendix Table A-1.

The City is currently providing a service level of 3.01 acres per 1,000 residents. The current inventory of park acreage in Newark meets or exceeds the City's per capita service standard of

3.0 acres per 1,000 residents.

Table 5: Current Service Standard - Park Acres per 1,000 Residents City Park Acreage
Acres per 1,000 Residents
Existing Acres
130.6

3.01 General Plan Standard - Acres oer 1,000 Residents
D. Parkland Development Costs
Under Construction
0 Total Acres
130.6

3.01 3.00
Table 6 provides an estimate of the cost of developing new parks, including the cost of acquiring land for park development. Land acquisition cost estimates are based on recent land sales for residentially zoned property or commercial sites that are part of residential development, as provided in Appendix Table A-2. Given that the City intends to provide parks in proximity to residential neighborhoods, the cost of acquiring residential land is the appropriate indicator of park acquisition costs. Residential land acquisition costs generally range from $43 to $75 per square foot of land area. For purposes of this analysis, a land cost of $60 per square foot has been used, which reflects the average cost of sites of less than 20 acres.

The cost of developing park facilities varies significantly, depending on the nature of the facilities. Based on information provided by City staff, facility construction costs can range from approximately $12 per square foot up to $45 per square foot. For purposes of updating the City's park fee, a cost of $18 per square foot or $784,000 per acre has been assumed. As shown in Table 6, the cost to develop an acre of parkland is estimated to total $3,136,000 including land and park development costs or $784,000 excluding land acquisition costs.

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Table 6: Park Development Costs per Acre
Land Acquisition Costs per Acre1
Park Improvement Costs per Acre2
$2,352,000
$784,000
Total Park Development Cost Per Acre $3,136,000
1 Reflects average value of recent land sales in residential areas in Newark. Please see Appendix Table A-2. 2 Cost estimate reflects City staffs estimate of average park construction costs.

E. Park and Recreation Facilities Needed to Accommodate New Residential Development
Table 7 provides the estimate of the park acreage needed to accommodate the demand generated by new residents at the existing service level of 3.0 acres per 1,000 residents. As shown, it is estimated that an additional 51.5 acres of improved parks will be needed to serve the needs of new residents through the General Plan buildout period of 2035. The cost of providing the needed parks is estimated to total approximately $164.7 million including the cost of acquiring land ($9,596 per additional new resident) and $41.2 million, excluding the cost of land ($2,399 per additional new resident).

Table 7: Park Land and Improvement Needs to Serve New Residents New Residents (through 2035) 17,168
Current General Plan Parks Service Standard 3.00 acres per 1,000 residents Additional Park Acres to Serve New Residents 51.504
Land+ Improvements
Improvements Only
Cost per Acre (Table 6) $3,136,000 $784,000
Administration Cost Allowance 2.00% $62,720 $15,680
Total Cost per Acre $3,198,720 $799,680
Additional Park Acres to Serve New Residents 51.504 51.504 Total Park Investment Required to Serve New Residents
Cost Per New Resident
$164,746,875 $41,186,719
F. Maximum Impact Fees Supported by Nexus Analysis
$9,596.16
As shown above, the cost to provide new facilities to serve the demand of new residents is estimated at $2,399 per resident excluding land acquisition costs and $9,596 per resident including land acquisition costs. By applying the average density of 3.23 residents per residential unit, it is estimated that the maximum supported parks and recreation impact fees is $7,700 per residential unit excluding land acquisition costs and $31,000 per residential unit including land acquisition costs.
$2,399.04
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Table 8: Maximum Parks Fees Supported by Nexus Analysis Fee for Projects that Fee for Projects that
do not Dedicate Land Dedicate Land (Fee
(Fee Funds Land + Funds Improvement
Improvement Costs) Costs)
Maximum Fee per New Resident (Table 7) $9,596.16 $2,399.04 Maximum Fee per New Household 3.23 persons per hhld. $30,996 $7,749 Rounded $31,000 $7,700
In the simplest mathematical form, the equation for calculating the maximum fee per household is as follows:
(per capita park service standard) X (cost per acre) X (average household size per unit) = maximum fee per household
Incorporating the information specific to this analysis for Newark, the formula is as follows:
(3 acres/1000 residents) X ($3, 198,720/acre) X (3.23 residents/unit) = $30,996 per unit; and (3 acres/1000 residents) X ($799,680/acre) X (3.23 residents/unit)= $7,749 per unit.

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IV. USE OF FEE REVENUE
The City plans to use park impact fee revenue to acquire parkland and construct facilities to add to the system of park and recreation facilities. The park facilities that are planned at this time are listed in Appendix Table A-3.

The City is embarking on a comprehensive Citywide Park Master Plan to assess community needs, provide greater project detail, and prioritize projects. The outcome of the Master Plan should be used to review the fee and consider any appropriate modifications.

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V. IMPACT FEES IN NEIGHBORING CITIES, MAXIMUM SUPPORTED FEES, AND

RECOMMENDED FEES
A. Park and Recreation Fees in Neighboring Jurisdictions KMA surveyed the impact fees levied by the nearby cities of Union City, Fremont, Hayward, Dublin, Pleasanton and San Leandro. The park and recreation facility impact fees and total impact fees for these cities are presented in Appendix Table A-4. They are summarized in Table 9.

Table 9: Comparison of Fees1
Newark
Union City -Subdivision - Avg.

Union City - Non-subdivision
Fremont2
Hayward
Dublin
Pleasanton
San Leandro3
Per Unit Park Fees
Single Famill£ Multi Famill£
$7,460 $7,460
$28,193 $28,193
$2,746 to $3,096 $2,746 to $3,096
0 BR-$9,220 0 BR-$9,220
4 BR - $29,502 4 BR - $29,502
$11,953 $9,653
$19,227 $12,017
$9,709 $7,969
$16,079 $14,054
. . 1 excludes affordable housmg fees and fees charged on building permit valuations .

Total Per Unit Impact Fees
Single Famill£ Multi Famill£
$12,462 $12,045
$42,075 $38,138
$16,628 to $12,691 to
$16,978 $13,041
0 BR -$12,363 0 BR -$12,363
4 BR- $31,012 4 BR - $31,012
$11,953 $9,653
$30,197 $19,229
$22,206 $16,256
$17,416 to $15,891 to
$18,094 $16,069
2 for units with more than 4 bedrooms, additional park fee is $5,531 per bedroom. Total additional fee is $6,210 per bedroom. 3 Pertains to non-senior units.

As shown, Newark's existing parks fee at $7,460 per dwelling unit is the lowest among the surveyed cities. The second lowest parks fee is levied by Pleasanton, with a fee of $9,709 per unit. There is also a large disparity among the surveyed cities, ranging from $9,700 per unit in Pleasanton to $29,500 per unit5 in Fremont. Pleasanton and Hayward are at the lower end of the range, Fremont and Union City (up to $28,193 per unit) are at the high end, and San Leandro and Dublin are in the middle of the range.

B. Maximum and Recommended Impact Fees
We recommend that the adopted fees be set below the maximum in order to be consistent with the fees of other cities in the market area and to not overly burden the cost of new development, given that the City has other impact fees. Separate and reduced fee recommendations are 5 Fee amount varies by bedroom count. $29,502 is the fee for a four-bedroom unit.

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offered for multi-family units in recognition that multi-family units typically cannot bear the same level of impact fees as single family developments.

Table 10: Maximum and Recommended Park Fees
Maximum Supported Fees
Fee for Projects that
Do Not Dedicate
Land for Parks
Single Family Units $31,000
Multi Family Units $31,000
Keyser Marston Associates, Inc.
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Fee for Projects
that Dedicate
Land for Parks
$7,700
$7,700
Recommended Fees
Fee for Projects that Fee for Projects that
Do Not Dedicate Dedicate Land for
Land for Parks Parks
$22,000 to $25,000 $6,500 to $7,500
$15,000 to $18,000 $4,500 to $5,300

Page 13 ends

VI. FEE PROGRAM IMPLEMENTATION AND ADMINISTRATION
The Mitigation Fee Act includes a series of reporting requirements designed to ensure that development impact fee revenues are properly accounted for, used appropriately, and that, where funds are ultimately not used, are reimbursed. In addition, jurisdictions adopting fee programs should determine their preferred approach to updating the fee schedule and whether they intend to allow for exemptions, credits, and reimbursements (under any additional circumstances). The following fee program implementation and administration parameters are our standard recommendations. The City's existing program may already include some or all of these recommendations.

1. Credits, Reimbursement, and Exemptions
Under certain and limited circumstances, as determined by the City, the Impact Fee Resolution could allow developers subject to the fee to obtain credits, reimbursements, or exemptions. In cases of redevelopment, the demolition of space should provide a fee credit. In other words, the gross fee obligation should be calculated based on the scale of the proposed new development, with a fee credit to be applied for existing square footage to be removed (or retained) using the applicable fee for the existing square footage (land uses). Residential units that are being replaced due to a natural disaster are also exempt from the impact fees. And, units that are subject to the existing land dedication requirements will only be subject to the parks facility impact fee and not the entire fee that covers both land acquisition and park improvement costs.

All other fee credits and/or reimbursements should not be allowed by right but rather should be subject to review by City staff and Council to ensure that such credits or reimbursements are warranted and appropriate. Potential examples where fee credits and reimbursements might be considered include: (1) cases where a Development Agreement specifically envisions extraordinary, direct investments in parks and recreation facilities of equal to or greater value to the City than the applicable parks and recreation fees; and 2) exemptions where the City elects not to impose fees for certain categories of development, such as affordable developments, are also an option, though alternative funding sources to offset a loss in fee revenue would need to be provided.

2. Securing Supplemental Funding
The maximum, supportable development impact fee is set to cover the parks and recreation facilities investments that will maintain citywide capital facilities standards as new growth occurs. To the extent that the adopted fee is less than the maximum and/or the City's goals envision an overall increase in parks and recreation facilities and parkland standards, supplemental funding will be required to fund park facilities. In addition, to the extent that exemptions are provided for particular types of development, supplemental funding will be required to make up for this lost funding.

Keyser Marston Associates, Inc.
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3. Annual Review and Periodic Study Update
The Mitigation Fee AcU AB 1600 ( at Gov. C. §§ 66001 ( c ), 66006(b )( 1)) stipulates that each local agency that requires payment of a fee make specific information available to the public annually within 180 days of the last day of the fiscal year. This information includes the following:
■ A description of the type of fee in the account
■ The amount of the fee
■ The beginning and ending balance of the fund
■ The amount of fees collected and interest earned
■ Identification of the improvements constructed
■ The total cost of the improvements constructed
■ The fees expended to construct the improvement
■ The percentage of total costs funded by the fee
Because of the dynamic nature of growth and capital equipment requirements, the City should monitor inventory activity, the need for improvements, and the adequacy of the fee revenues and other available funding. To the extent particular issues are identified, adjustments to the fee program may be required.

Keyser Marston Associates, Inc.
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APPENDIX A: Park Inventory, Residential Land Sales, Park Construction Costs, and Impact Fees of Neighboring Cities
Appendix Table A-1
Newark City Park Inventory
Newark, CA
Park Name
Jerry Raber Ash Street Park
Susan Johnson Bridgepoint Park
Byington Park
Civic Center Park
Lakeshore Park
Mayhews Landing Park
Mirabeau Park
Musick Park
Total, Neighborhood Parks
Birch Grove Park
Community Park
Sportsfield Park/Silliman Center
Total, Community Parks
Shirley Sisk Grove
MacGregor Fields
Total, Special Use Parks
Total, City Parks
Source: Newark General Plan
Keyser Marston Associates, Inc.

Acres Faciliites
Neighborhood Parks

6.1 play structures, softball fields, basketball
court, picnic, horseshoe pit

3.5 play structures, picnic facilities
3 play structures, picnic facilities

5.1 play structures, basketball court, par
course, picnic facilities
26 lawn, paths, par course. 16-acre water area
with fishing and boating

8.3 play structures, basketball court, picnic
facilities
6 play structures, paths, picnic facilities

0.8 play structures, picnic facilities

58.8 Community Parks

12.2 play structures, lighted softball, basketball,
tennis, picnic, restrooms, water feature
play structures, warm-up wall, basketball,

16.3 handball, lawn, paths, tennis, picnic,
community center
softball fields, soccer fields, aquatic center,

29.6 gymnasium, showers, locker room, dance
studio, fitness center, teen room, children's
room, meeting room, childcare

58.1 Special Use Parks

3.2 open space for summer concerts

10.5 soccer and baseball practice fields

13.7 130.6
\\SF-FS2\wp\16\16090\002\Newark parks analysis 05 0416; 5/10/2016 Appendix Table A-2
Recent Land Sales in Residential Areas
Newark, CA
Address Date Price Sq. Ft.
1 8400 Enterprise Drive 1/21/2016 $39,650,000 929,135
2 37521 Willow Street 11/16/2015 $14,930,000 198,634
3 8375 Enterprise Drive 9/25/2015 $5,500,000 93,218
4 36120 Ruschin Drive 5/15/2015 $19,250,000 442,134
5 38945 Timber Street 1/29/2015 $7,360,000 100,188
6 5655 Mowry Avenue 1/29/2015 $44,032,000 673,220 (Mowry Crossings) Average $130,722,000 2,436,529
Average of sites less
than 20 acres $91,072,000 $1,507,394
Keyser Marston Associates, Inc.
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Price per SF
$42.67
$75.16
$59.00
$43.54
$73.46
$65.41
$53.65
$60.42
Proposed Use
Single family
Entitled for town homes
Approved for 27 homes. It is part of
the Dumbarton Transit-Oriented
Development. Other note indicates
that site will be used to construct a
34,000 sf industrial bldg.

Single family
Commercial to serve new residential
development or part of residential
Investment - 147 townhomes, 93
condos and 42 detached sf
Current use Buyer
industrial land Trumark
residential land Lennar Homes
Buyer is Honeywell
International, Inc. Seller
is Trumark.

Newark school Classic Communities bldg.
commercial land DR Horton
vacant Mervyn's; DR Horton Motel 6
Appendix Table A-3
Potential Additional Park Improvements
Newark, CA
Facility
Skate Park
Dog Park
New Turf Fields
Cedar Blvd Linear Park
Dumbarton TOD to Wildlife Refuge; Refuge Connection Trail RR Overcrossing Sisk Grove lmprovments: Ampitheater, Conncession Area & Bathrooms Silliman Picnic Area
Aquatic Area Replacment
Birch Grove Undeveloped Area
New 6 acre park in the TOD
Bocce Ball Courts
Birch Grove Park Softball Field Night Lighting
Bridgepointe Park Path Completion
Byington Park Security Lighting
Civic Center Park Completion
Community Park Group Picnic Facility
Jerry Raber Ash St. Park - Remaining Phases
Mayhews Landing Park Completion
Mirabeau Park Security Lighting
Senior Center Community Garden
Silliman Complex - Remaining Phases
Silliman Complex - Maintenance/Restroom Facility
Keyser Marston Associates, Inc.
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Location
Undetermined
Undetermined
Sportsfield Park
Northwest Newark
Dumbarton TOD
Shirley Sisk Grove
Adjacent to Silliman Center
Community Park
Birch Grove Park
Enterprise and Hickory
Undetermined
Birch Grove Park
Bridgepointe Park
Byington Park
Civic Center
Community Park
Jerry Raber Ash St. Park
Mayhews Landing Park
Mirabeau Park
Jerry Raber Ash St. Park
Silliman/Sportsfield
Silliman/Sportsfield
Orifil!!LStatus
CIP
CIP
City Staff
General Plan
Specific Plan
New Park Master Plan
City Staff
City Staff
City Staff
Specific Plan
CIP
CIP
CIP
CIP
CIP
CIP
CIP
CIP
CIP
CIP
CIP
CIP
APPENDIX TABLE A-4

COMPARISON OF RESIDENTIAL IMPACT FEES, EXCLUDING AFFORDABLE HOUSING FEES

NEWARK AND NEIGHBORING JURISDICTIONS

CITY OF NEWARK
Impact Fees/ du' Newark Dublin
Arts Requirement $270 See Below
Fire Impact Fee None SF: $870, MF: $544
Park Facilities / Parkland $7,460 SF/MF: $18,646
Dedication Fee2
Public Facility Impact Fee' Public Safety MF: $2,079, SF/MF: $5,798 SF: $1,989
Comm. Service MF: $1,596
SF: $1,942
Transportation MF: $460,
SF: $801
Tota/ MF: $4,135,
SF: $4,732
Traffic Impact Fee Included in None
Public Facility Fee
Tri-Valley Transportation None SF: $3,060
Development Fee 4 MF:$2,108
Total Fees / du SF: $12,462 SF: $28,374
MF: $11,86S MF:$27,096
Fees as % of BPV
Arts Reauirement See Above > 20 du: 0.5% BPV
General Plan Cost Recoverv .5% BPV None
Total % of BPV .5% BPV 0.5% BPV
Fees PSF Building (Partial}
Fire Equipment Acquisition None See Above
Fees as % of Building and Plan
General Plan Cost Recovery See Above None
Fremont
None
0BR: $143
lBR: $214
2BR: $300
3BR: $371
4BR: $457
+BR: +$86/BR
0BR: $9,220
lBR: $13,830
2BR: $19,362
3BR: $23,971
4BR: $29,502
+BR: +5,531/BR
0BR: $988
lBR: $1,483
2BR: $2,076
3BR: $2,569
4BR: $3,163
+BR: +$593/BR
0/lBR: $2,012
2/3BR: $2,247
4+BR: �3 421
None
0BR: $12,363
lBR: $17,539
2BR: $23,985
3BR: $29,158
4BR: $31,012
+BR: $6,210/BR
None
None
None
See Above
15% of Building and Plan
Check Permits
Notes: This chart presents an overview and terms may be simplified. Consult code and City staff for more information. 1 Excludes on-site inclusionary requirements. See Table 2.

Hayward
None
None
SFD: $11,953
SFA: $11,395
MF: $9,653
None
None
None
SFD: $11,953
SFA: $11,395
MF: $9,653
None
None
None
None
12% of Building and Plan
Check Permits
Milpitas Pleasanton San Leandro Union City
None None None See Below
None None None See Below
Varies by pop. density SF: $9,709, MF: $7,969 SF: $16,079; Subdivision:

SFD: $44,673 MF: $14,054 Varies by pop. density
SFA: $35,438 $28,193 (avg.)
MF (2-4 du): $36,131 Non-Subdivision:

MF (5+ du): $29,089 $2,466 plus $280 (0-lBR),
$455 {2BR), $630 {3+BR)
None SFD: $4,730 None SF: $12,231, MF: $8,624
SFA: $3,532
MF: $2,885
None SF: $4,707 $1,337-$2,015; SF: $1,651; MF: $1,321 6 MF: $3,294 senior: $667-$897 5
None SF: $3,060 None None
MF: $2,108
Varies by pop. density SFD: $22,206 Non-Senior Subdivision SFD: $44,673 SFA: $20,056 SF: $17,416-$18,094 SF: $42,075 SFA: $35,438 MF: $16,256 MF: $15,391-$16,069 MF:$38,138 MF (2-4 du): $36,131 Senior: Non-Subdivision
MF (5+ du): $29,089 SF: $16,746-$16,976 SF
MF: $14,721-$14,951 0-lBR: $16,628
2BR: $16,803
3BR: $16,978
MF
0-lBR: $12,691
2BR: $12,866
3BR: $13,041
None None None 1%BPV
None None None None
None None None 1% BPV
None None None $1.40 PSF occupiable space
above 2nd storv
None None None None
Abbreviations: SF= Single Family SFA = SF Attached
MF= Multi-Family BPV = Building Permit Value
PSF = Per Square Foot
BR= bedroom
SFD = SF Detached
du;; Dwelling unit
2 For Milpitas and Union City, fee is estimated based on population densities derived from Census and DOF data. In Milpitas, developer may submit alternative population estimate. 40% of Milpitas fee may be met through the provision of private open space. 3 Generally supports such facilities as libraries, parks and other community buildings. Newark fee includes transportation facilities. 4 Regional fee collected on behalf of the Tri-Valley Transportation Development District. s Fees vary by zone.
6 Traffic signalization fees.

Prepared by Keyser Marston Associates, Inc.

FIiename: C:\Users\kfeeney\Desktop\Newark A-4 A-5;4l18l2016;hgr APPENDIX TABLE A-5

COMPARISON OF INCLUSIONARY HOUSING PROGRAMS

NEWARK AND NEIGHBORING JURISDICTIONS

CITY OF NEWARK
Newark
Minimum Project Sizel
For In-lieu/Impact Fee1 FS/R: 1 unit
For Build ReQuirement no build rea.

Onsite Requirement
Percent of Total Units2 n/a
Income Level (% AMI) n/a
Impact / In-Lieu Fee Levels
Fee Level $20/sf first 1,000 SF/unit;
$8/SF above 1,000 SF/unit
Alternatives to Onsite Provision3
Fee Option - for projects over n/a
min.size
Dublin Fremont
FS/R: 20 units FS/R: 2 units
FS/R: 20 units (oartiall no build rea.

7.5%, plus fee Attached 3.5% plus $18.50/sf
(12.5% without fee) Detached 4.5% plus $17.50/sf
FS: 40% @ 80%, 60% at 120% 80-110%AMI
AMI (120% w/approval)
R: 30% @ 50% AMI, 20% @
80% AMI, 50% @ 120% AMI.
$130,276 per aff unit owed FS:
(in addition to on-site) Attached $18.50 w/ aff units;
$27.00 no units
Detached $17.50 w/ aff units;
$26.00 no units
R: $17.S0 no map; $27.00 w/
map4
No yes (Developer)
Note: This chart presents an overview and terms have been simplified. Consult code and City staff for more information.

Abbreviations: R = Rental
du:;; Dwelling Unit

1. In Union City , single-unit, owner-occupied projects exempt.

FS = For Sale
Ac= Acre

2. In Dublin, 40% of the on-site requirement is covered through an impact fee. sq ft= Square Feet
AMI =Area Median Income
Havward
FS/R: 20 units
no build rea.

Attached: 7.5%
Detached: 10%
80-110%AMI
FS:

Attached: $3.24/sf
Detached: $4/sf
R: $3.24/sf
yes (Developer)
MF= Multi-Family
Req. = Requirement
Miloitas
FS/R: 5 units
no build rea.

5.0%
Up to 80%AMI
5% building permit value5
yes (Developer)
Pleasanton
FS/R: 15 units
no build rea.

MF: 15%
SF: 20%
SF: 80%AMI
MF: 120%AMI
MF: $2,783/du;
SF:
<l,500 sq ft: $2, 783/du
>1,500 sq ft: $11,228/du
yes (Developer)
SF= Single Family
BP = Building Permit

3. All cities that do not allow fee payment by right allow developers to seek Council approval of fee payment instead of on-site units. Also, all cities with on-site reqs. provide options for off-site construction and land dedication.

4. Rental projects with a subdivision map allowing conversion to condominiums

5. In-lieu/impact fee introduced as temporary measure while City prepares formal nexus study. Fee has not yet been assessed. Average residential building permit value is reported to be$ __ .

6. Fee calculated based on current median sales price for individual projects. No fees have been owed since 2008.

Prepared by Keyser Marston Associates, Inc.

Filename: C:\Userslkfeeney\Desktop\Newark A-4 A-5; A5 Incl Programs Desc; 4/18/2016:hgr San Leandro Union Citv
FS: 2 units n/a
FS: 7 units FS: 1 unit
15% 15%
60%@ 80-120% AMI; 10%@ 50-80%AMI;
40% @ 50-80% AMI 30%@ 80-100% AMI;
60%@ 100-120% AMI
(Median Sale Price - <7 units: $160,000 /du owed;
Affordable Price) x units 7+ units: $180 /sf owed
owed6
yes (City) yes (City)
Item D. 10.

DATE 12/14/2023
TO Honorable Mayor and City Council Members
FROM Cathreene Ingham-Watters, Human Resources Director SUBJECT Adopt a resolution approving a side letter with the Newark Police Association to provide temporary benefits relating to the temporary critical staffing schedule; and approve an amendment to the 2022 - 2024 Biennial Budget and Capital Improvement Plan
SUMMARY AND RECOMMENDATION
Like most police departments in the Bay Area, the City of Newark began experiencing a Police Officer staffing shortage earlier this year and reached out to the Newark Police Association (NPA) to discuss temporary benefits that would support the recruitment and retention of Police Officers. Staff recommends that the City Council approve a resolution authorizing the City Manager to execute a side letter with NPA to provide temporary benefits related to overtime pay and the vacation buy-back program.

BACKGROUND
Approximately one year ago, police officer staffing shortages began impacting many Bay Area Police Departments. In February and March 2023, the City Manager, Assistant City Manager, Human Resources Director, Police Chief, and members of the Police Command staff held meetings to discuss methods of addressing the potential staffing shortage that appeared to be on the horizon for the City of Newark. After researching and assessing various ideas, staff identified a few items, including one-time temporary benefits, that could be successful in recruiting and retaining officers. Management representatives reached out to NPA representatives to discuss one-time temporary benefits.

On July 9, 2023, the Police Department implemented a temporary critical staffing schedule in coordination with NPA. This schedule was established in order to meet minimum staffing guidelines for patrol per Policy 377 of the Newark Police Department Policy Manual, while reducing the number of unplanned mandated overtime shifts, providing officers a more dependable work schedule. While in place, this temporary schedule requires officers to work one mandatory overtime shift per week. Though officers may still be called in for additional overtime work, the temporary critical staffing schedule reduces the number of last-minute mandates.

DISCUSSION/ANALYSIS
Management and NPA representatives collaboratively brainstormed ideas to address officer recruitment and retention while Police Department leadership made changes to alleviate the impact of vacancies. This included assigning a Police Sergeant to recruitment efforts, significantly increasing the number of Police Officer applicants.

Human Resources and Police personnel work together to interview candidates on a regular basis and move qualified candidates through the pre-employment process as quickly as possible. These efforts have resulted in a consistent stream of candidates in the background process or Police Academy that equal or exceed the number of vacancies. Unfortunately, not all candidates are successful in all phases of the pre-employment process, so it is important these robust recruitment efforts continue while the vacancy rate remains high.

With successful recruitment efforts in place and a salary increase provided to Police Officers and Police Sergeants in October 2023 resulting from a compensation labor market survey, management and NPA representatives agreed to focus discussions on temporary benefits that would support officer retention. NPA representatives described the impact of the temporary critical staffing model. In light of this, three temporary benefits were agreed upon:

1. Temporarily increase the overtime rate of pay from time and one-half (1.5x) to two times (2x) the regular hourly rate of pay for shifts Police Officers and Police Sergeants are assigned to meet minimum staffing guidelines for patrol. This temporary increase in the overtime rate will be effective December 24, 2023 through January 4, 2025, or until the temporary critical staffing schedule ends, as declared by the Police Chief, whichever comes first; and

2. Allow an additional twenty (20) hours of accrued vacation leave to become eligible for the buy-back program in 2024; and

3. Waive the requirement to have used one-half of the vacation time accrued to be eligible for the buy-back program. This waiver extension option is in the current Memorandum of Understanding and only requires City Manager approval.

FISCAL IMPACT
The cost of temporarily increasing the overtime rate is estimated at $93,000 for each month the temporary critical staffing model remains in place. Should the temporary critical staffing model remain in place for the remainder of Fiscal Year 2024, the $558,000 cost would be funded with Police Department personnel savings. The estimated cost, if the temporary critical staffing model remains in place for the maximum temporary period of December 24, 2023, to January 4, 2025, is $1,187,000, including impact of the general salary increase scheduled for July 1, 2024. Potential costs during Fiscal Year 2025 will be estimated based on the projected overtime needs as a result of officer vacancies, and included in the regular 2024-2026 budget process.

The vacation buy-back program costs will also be considered during the regular 2024-2026 budget process, and will have no impact to the Fiscal Year 2024 budget. Actual costs will depend on the number of officers electing to participate, but are anticipated to be minimal based on current vacation accruals and history of program participation. The maximum potential cost of the vacation buy-back program, program participation. The maximum potential cost of the vacation buy-back program, with 100% eligibility and participation from Police Officers and Police Sergeants is less than $74,000.

REVIEW AND APPROVAL
Prepared by - Cathreene Ingham-Watters, Human Resources Director 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
Resolution - NPA Temporary Benefits
Side letter - NPA Temporary Benefits
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK APPROVING A SIDE LETTER TO THE

MEMORANDUM OF UNDERSTANDING WITH THE CITY OF

NEWARK AND THE NEWARK POLICE ASSOCIATION (NPA)

TO PROVIDE TEMPORARY BENEFITS
WHEREAS, in recognition of a regionwide police staffing shortage requiring unusually high planned and unplanned overtime shift work, impacting Newark officers’ work-life balance; and
WHEREAS, the City values and wishes to retain its talented public safety officers who provide outstanding service to the Newark community; and WHEREAS, the City of Newark and the Newark Police Association (NPA) are parties to the July 1, 2019- June 30, 2022 Memorandum of Understanding (MOU), revised July 28, 2022 to extend the MOU term through June 30, 2025 and the November 14, 2022 side letter amending MOU Sections VIII.K. Vacation Leave and XV.C. Overtime; and WHEREAS, Police Officers and Police Sergeants in NPA are currently assigned a mandatory overtime shift one day per week to meet minimum staffing requirements as part of a critical temporary staffing schedule implemented in July 2023 with the rate of pay of time and one-half (1.5) the regular hourly rate; and
WHEREAS, NPA members can elect to cash-out eighty (80) hours of accrued vacation leave each year if the member has used at least one-half of the vacation time accrued but many NPA members have been unable to use one-half of accrued vacation due to the temporary critical staffing schedule implementation; and
WHEREAS, in the November 14, 2022 side letter, the total amount of vacation eligible for buy-back for 2022 was increased from eighty (80) to one hundred (100) hours for full-time employees; and
WHEREAS, the City and NPA desire to enter into a side letter agreement to provide temporary benefits from December 24, 2023 through January 4, 2025, or when the temporary critical staffing schedule ends, as declared by the Police Chief, whichever comes first; and WHEREAS, the City Manager has approved the extension of the vacation use requirement through 2024 as described in MOU Section VIII.K for all NPA-represented classifications; and WHEREAS, the following temporary benefits apply to employees in the classification of Police Officer and Police Sergeant only and include:

1. A temporary increase to the rate of pay from one and one-half times (1.5x) the regular hourly rate to two times (2x) the regular hourly rate for mandatory overtime shifts assigned to meet minimum patrol staffing guidelines; and

2. An additional 20 hours of vacation accruals will be eligible for buy-back for calendar year 2024 only.

Resolution No. 2
NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby approves a side letter agreement to the MOU, attached hereto and incorporated herein by reference, and authorizes the City Manager to execute the side letter and to take such further actions as may be necessary to implement the side letter to the MOU including any necessary nonsubstantive modifications.

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Item D. 11.

DATE 12/14/2023
TO Honorable Mayor and City Council Members
FROM Cathreene Ingham-Watters, Human Resources Director SUBJECT Adopt a resolution authorizing the deletion of one full-time equivalent Lead Public Safety Dispatcher and the addition of one full-time equivalent Public Safety Dispatch Supervisor to the 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024; amending Resolution No. 2505, Employee Classification Plan to include the Public Safety Dispatch Supervisor classification; approving a Side Letter with the Newark Police Association (NPA) to add the classification of Public Safety Dispatch Supervisor and assign salary steps; and approve an amendment to the City's salary schedule in conformance with California Code of Regulations, Title 2, Section 570.5
SUMMARY AND RECOMMENDATION
The Newark Police Department continually reviews its staffing configurations and positions to ensure maximum efficiency within the department and to provide the highest level of support and safety to the community. As such, there is an identified need for a supervisory position in the Communications Center. Staff recommends City Council approve a resolution to delete one full-time equivalent Lead Public Safety Dispatcher and add one full-time equivalent Public Safety Dispatch Supervisor to the 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024; approve a Side Letter with the Newark Police Association to add the classification of Public Safety Dispatch Supervisor and assign salary steps; and approve an amendment to the City's Salary Schedule.

BACKGROUND
The Police Department Communications Unit currently has a staffing model of one Police Support Services Manager, two Lead Public Safety Dispatchers, and nine Public Safety Dispatchers. In 2022, the Police Support Services Manager position was created to manage the Dispatch, Records, and Property and Evidence units. The Lead Public Safety Dispatcher position reports to the Police Support Services Manager and performs the duties of a Public Safety Dispatcher in addition to training, guiding, and scheduling the Public Safety Dispatchers. The Lead Public Safety Dispatcher classification excludes supervisor responsibilities or authorities. A recent vacancy in the Lead Public Safety Dispatcher position has reduced the number of Lead Public Safety Dispatchers from two to one.

DISCUSSION/ANALYSIS
It is customary to review duties, compensation, and organizational structure when positions become vacant prior to starting recruiting efforts. In August 2023, one Lead Public Safety Dispatcher position was vacated, providing an opportunity to evaluate the essential duties and responsibilities of the positions, conduct surveys in Newark's ten-city labor market to compare classification and compensation, and review internal compensation relationships.

The evaluation and review revealed that the current organizational structure within the Communications Unit could be improved with the addition of a supervisor. With the goal of providing outstanding customer service for the Newark community, increased supervision within the dispatch center will promote professionalism and accountability.

The Public Safety Dispatch Supervisor would allow for the daily supervision of staff to monitor staff needs and development, the ability to evaluate police dispatchers, and coordinate scheduling of hours, vacations, and other time off needs of the unit.

The Public Safety Dispatch Supervisor classification would report directly to the Police Support Services Manager and perform the more complex police department communications unit functions. The essential duties of the position include supervising, directing, and evaluating other Communications Unit personnel; oversight of training or training of new employees; and managing schedules. The Public Safety Dispatch Supervisor would also perform dispatch duties on a regular basis.

After reviewing both internal and external classification and compensation relationships, staff recommends the Public Safety Dispatch Supervisor base salary be set at 7% above the Lead Public Safety Dispatcher classification and approximately 15% above the Public Safety Dispatcher classification.

The City and NPA have met and conferred regarding the addition of the Public Safety Dispatch Supervisor classification. NPA has agreed to serve as the sole and exclusive bargaining representative for this classification.

FISCAL IMPACT
There is no fiscal impact in Fiscal Year 2024, as personnel costs savings can absorb the estimated $12,600 cost of upgrading one Lead Public Safety Dispatcher position to the new classification of Public Safety Dispatch Supervisor for the remainder of the fiscal year. Future years’ salary costs will be requested as part of the upcoming 2024-2026 biennial budget process.

REVIEW AND APPROVAL
Prepared by - Cathreene Ingham-Watters, Human Resources Director Prepared by - Cathreene Ingham-Watters, Human Resources Director 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
Resolution Public Safety Dispatcher
Side Letter Public Safety Dispatcher
Exhibit A: Job Description
Exhibit B NPA MOU
Exhibit C Side Letter Extension
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AMENDING THE EMPLOYEE CLASSIFICATION

PLAN TO ADD THE CLASS SPECIFICATION OF PUBLIC
SAFETY DISPATCH SUPERVISOR; AMENDING THE 2022-
2024 BIENNIAL BUDGET AND CAPITAL IMPROVEMENT
PLAN FOR FISCAL YEAR 2024; APPROVING A SIDE

LETTER TO THE MEMORANDUM OF UNDERSTANDING

WITH THE CITY OF NEWARK AND THE NEWARK POLICE
ASSOCIATION; AND AMENDING THE CITY’S SALARY

SCHEDULE IN CONFORMANCE WITH CALIFORNIA CODE
OF REGULATIONS, TITLE 2, SECTION 570.5.

WHEREAS, the City of Newark strives to provide the best possible service for its community, including the Communications Unit within the Newark Police Department; and WHEREAS, City staff has re-evaluated the essential duties and responsibilities of the current classifications within the Communications Unit to identify adjustments for improved efficiency and service; and
WHEREAS, an identified need is the addition of the classification Public Safety Dispatch Supervisor which includes supervisory functions in addition to dispatch, training, and scheduling responsibilities; and
WHEREAS, the City staff has analyzed internal relationships and has conducted a labor market survey to ensure appropriate and competitive compensation and benefits; and WHEREAS, the current Memorandum of Understanding between the City and NPMA, effective July 1, 2019 through June 30, 2025, is currently in effect (the “MOU”); and WHEREAS, the Newark Police Association (“NPA”) and the Newark Police Management Association were provided an opportunity to review the Public Safety Dispatcher Supervisor class specification and request to represent the classification; and WHEREAS, the City and NPA have met and conferred in good faith regarding the representation of the Public Safety Dispatch Supervisor classification and NPA has agreed to serve as the sole and exclusive bargaining representative; and WHEREAS, the City has considered and determined that the proposed side letter is proper and in the best interests of the City.

NOW THEREFORE, BE IT RESOLVED that the City Council approves the addition of the classification of Public Safety Dispatch Supervisor to the Employee Classification Plan.

BE IT FUTHER RESOLVED that the City Council hereby approves an amendment to the 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024 replacing Resolution No. 2
one full-time equivalent Lead Public Safety Dispatcher with one full-time equivalent Public Safety Dispatch Supervisor.

BE IT FURTHER RESOLVED that the City Council hereby approves a side letter to the MOU, attached hereto and incorporated herein by reference effective December 15, 2023 and authorizes the City manager to execute the side letter and to take such further actions as may be necessary to implement the side letter to the MOU including any necessary non-substantive modifications.

BE IT FURTHER RESOLVED that the City Council hereby approves an amendment to the City’s Salary Schedule, effective December 15, 2023 as follows:

Step 1 Step 2 Step 3 Step 4 Step 5
Public Safety Dispatcher Hourly $ 52.53 $ 55.15 $ 57.91 $ 60.81 $ 63.85 Supervisor Biweekly $ 4,202.40 $ 4,412.00 $ 4,632.80 $ 4,864.80 $ 5,108.00 Annual $ 109,262.40 $ 114,712.00 $ 120,452.80 $ 126,484.80 $ 132,808.00 Step 1 Step 2 Step 3 Step 4 Step 5
Public Safety Dispatcher Hourly $ 54.11 $ 56.81 $ 59.65 $ 62.63 $ 65.77 Supervisor Biweekly $ 4,328.80 $ 4,544.80 $ 4,72.00 $ 5,010.40 $ 5,261.60 Annual $ 112,548.80 $ 118,164.80 $ 124,072.00 $ 130,270.40 $ 136,801.60

510.578.4200 [email protected] www.newark.org facebook.com/cityofnewarkca City of Newark
City Manager’s Office
37101 Newark Boulevard
Newark, CA 94560
To: Newark Police Association Executive Board
From: David Benoun, City Manager
Lenka Hovorka, Assistant City Manager
Date: November 9, 2023
This will serve as a side letter to the City of Newark (City) and the Newark Police Association (NPA) July 1, 2019- June 30, 2022 Memorandum of Understanding (MOU), revised July 28, 2022 to extend the MOU term through June 30, 2025. The purpose of this side letter is to approve the classification of Public Safety Dispatch Supervisor and to integrate the newly approved classification into the MOU. The classification description for the Public Safety Dispatch Supervisor is attached hereto as Exhibit A. The parties also agree to integrate the following side letters into the MOU as a clean-up matter in a form later agreed to by the parties as part of the revision process: MOU extension side letter (July 2022); Cash out comp time side letter (November 2022); Vehicle Abatement Officer to NPA side letter (August 2023); and the Letter of Understanding to implement the classification and compensation study results (October 2023).

The City and Association have met and conferred and agreed to the following amendments below to provide that NPA serve as the sole and exclusive bargaining representative for the new classification of Public Safety Dispatch Supervisor. This side letter will become effective upon approval by the City Council.

The City and NPA agree to the following amendments to the MOU July 1, 2019- June 20, 2022 Memorandum of Understanding, which are attached hereto as Exhibit B in the redlined version of the 2019-2022 MOU:

1. Add “Public Safety Dispatch Supervisor” to Section III. Definitions, Subsection G and Subsection O

2. Add “Public Safety Dispatch Supervisor” to Section VII. Uniform Allowance, Subsection B1 and B3

3. Add “Public Safety Dispatch Supervisor” to Section XII. Holidays, Subsection A

4. Add “Public Safety Dispatch Supervisor” to Section XXVII. Work Schedules, Subsection C1; Subsection F2, and Subsection G3.
a. Add Subsection G5: “Public Safety Dispatch Supervisor shifts shall be based on organizational needs per the Chief or designee.”

5. Add “Public Safety Dispatch Supervisor” to Attachment A, the list of “Regular Full-time/Part-time Classifications”.

City of Newark – City Manager’s Office 2
The City and NPA agree to the following amendments to the MOU Extension dated July 28, 2022, extending the MOU to June 30, 2025, which are attached hereto as Exhibit C in the redlined version of the extension MOU:

6. Add “Public Safety Dispatch Supervisor” to Section XII A: Holidays.

7. Add “Public Safety Dispatch Supervisor” to Section XIV B: Certificate Incentive Pay.

8. Add the following row to the table in Attachment A.4

PUBLIC SAFETY

DISPATCH

SUPERVISOR
$9,105.13 $9,560.40 $10,038.41 $10,540.33 $11,067.35
$52.53 $55.16 $57.91 $60.81 $63.85

9. Add the following row to the table in Attachment A.5

PUBLIC SAFETY

DISPATCH

SUPERVISOR
$9,378.29 $9,847.21 $10,339.57 $10,856.54 $11,399.37
$54.11 $56.81 $59.65 $62.63 $65.77
Dated: _________________________________
For the City of Newark: For the Newark Police Association:
________________________________ _____________________________________ David Benoun, City Manager Steven Losier, President
Public Safety Dispatch Supervisor class specification Page 1 of 4 Public Safety Dispatch Supervisor
Class Specification
Revised 9/23
Class ID: 652
Unit: NPA
Probation: 18 Months
FLSA: Non-Exempt

DEFINITION
Under general supervision, receives emergency and non-emergency calls for service and dispatches emergency and other City personnel for response; supervises, trains, guides, schedules, and tracks progress of dispatchers; performs the more complex duties of a Public Safety Dispatcher; and performs related duties as assigned.

SUPERVISION RECEIVED AND EXERCISED
Receives general supervision from the Police Support Services Manager, Watch Commander, or designee. Exercises direct supervision over assigned public safety dispatch staff.

DISTINGUISHING CHARACTERISTICS
This position is a non-sworn working supervisor classification in the Public Safety Dispatcher series.

The Public Safety Dispatch Supervisor classification is distinguished from the Lead Public Safety Dispatcher classification by the required level of experience, and the added responsibility to supervise and evaluate assigned staff.

EXAMPLES OF JOB FUNCTIONS (Illustrative Only)
Receive, screen, and prioritize emergency and non-emergency telephone and radio calls for service, and dispatch appropriate emergency and other City personnel.

Receive and respond to information, questions, and requests for service from the public by telephone and at the Police Department public counter during business and non-business hours.

Record, classify, and maintain records of all communications including service records, logs, and reports on calls for service; type and record activity and status reports; maintain indices of information.

Operate a variety of computer, teletype, radio and recording equipment to access police information and law enforcement records; perform minor routine upkeep and maintenance of communications equipment.

Provide radio assistance and information to emergency personnel, City staff, and other agencies as requested; coordinate emergency response with other public safety agencies and emergency services.

Send, receive, and route a variety of law enforcement reports, warrants and other materials.

Notify outside law enforcement agencies of crime and emergency incidents that may impact their jurisdiction.

Monitor technology systems and programs including alarms, cameras, closed-circuit television, and other viewing devices or platforms.

Receive and respond to questions and requests from the public at the Police Department front counter during non-business hours.

Public Safety Dispatch Supervisor class specification Page 2 of 4 Assist in training officers, community service officers, and other police personnel on proper radio procedures and the computer system.

Perform a variety of other duties in support of the Police Department information and communications functions.

Monitor and review dispatch activity, provide guidance, and address concerns for safe and efficient operations in the Communications Center.

Assume responsibility for shifts; schedule and mandate dispatcher shift assignment to maintain coverage 24 hours a day, 365 days a year.

Supervise, train, and evaluate public safety dispatch staff personnel in Communications Center operations including dispatch procedures and the CAD system.

Review dispatch activity and report any vital information to the Police Support Services Manager and Watch Commander.

Develop, implement, and maintain the Dispatch Policy & Procedures Manual and Training Manual.

Serve as back up to the Police Support Services Manager as the FBI Terminal Agency Coordinator (TAC) and the Agency California Law Enforcement Telecommunications System (CLETS) Coordinator with the Department of Justice (DOJ).

Prepare recordings of radio and telephone communications for use as court evidence and training; may testify in court proceedings.

Maintain all CAD databases, streets, maps and other files, records, and manuals necessary for proper police dispatch operation.

Compile data and prepare reports of calls for service, equipment dispatched and disposition; perform a variety of difficult and technical police record keeping work.

Oversee and implement the Communication Training Program; mentor dispatchers in training.

Serve as a point of contact between the Police Support Services Manager, Watch Commander, and other personnel to resolve issues.

Perform related duties as assigned.

QUALIFICATIONS
Knowledge of:
• Principles and practices of supervision and training. • Automated police telecommunications systems such as Computer-Aided Dispatch (CAD) and California Law Enforcement Telecommunications System (CLETS). • English usage, grammar, spelling, punctuation, and vocabulary. • Current office practices, procedures, and equipment, including computer hardware and software.
• Operation and use of computers and software applications necessary for area of specialty. • Penal, vehicle, municipal, and health and safety codes. • Police radio codes.
• Principles and procedures of police radio dispatching and equipment.

Public Safety Dispatch Supervisor class specification Page 3 of 4 • Record-keeping techniques.
• Newark city streets and thoroughfares.
• Technical aspects of field of specialty.

Skill or Ability to:
• Communicate clearly and effectively with callers and people from a variety of socio-economic backgrounds.
• Understand and carry out verbal and written instructions. • Quickly and accurately read and analyze computer responses from a variety of systems to gather necessary information.
• Learn the geography of Newark.
• Respond quickly, calmly, and accurately under pressure, exercise good judgment, prioritize situations, and make sound decisions in emergency situations. • Operate computers and required software applications, computer-aided dispatch (CAD) system, and police telecommunication equipment and systems. • Operate the Mobile Command Vehicle.
• Perform clerical duties of average difficulty and maintain clear and accurate records. • Type at 35 words per minute and perform multiple tasks at same time. • Understand the proper operation and care of voice radio equipment and Federal Communications Commission regulations governing the use of the voice radio equipment. • Work independently with little direction.
• Supervise and evaluate assigned staff.
• Establish and maintain effective working relationships with those contacted in the course of the work.
• Work irregular duty assignments for both emergency and non-emergency situations such as sick calls, critical incidents, or special events.
• Demonstrate tact, professionalism, and diplomacy.
• Respectfully and effectively collaborate with a variety of people of varying backgrounds and roles. Demonstrate tact, professionalism, and diplomacy.

Education and Experience:

Any combination of education and experience that would provide the required knowledge, skills, and abilities is qualifying. A typical way to obtain the required qualifications would be:

Possession of a high school diploma or equivalent, and three (3) years of recent full-time paid civilian or military experience in radio dispatch, law enforcement, or related experience. One (1) year of lead or supervisory experience desirable.

License and Certificate:
• Possession of a valid California Driver License and a satisfactory driving record throughout employment.
• Possession of the California Peace Officer Standards and Training (POST) Basic Dispatcher Certification.
• Possession of an Intermediate POST Dispatcher Certification. • California Department of Justice CLETS T4T Training for Trainers within the probationary period.

PHYSICAL DEMANDS
Must possess mobility to work in a standard office setting and use standard office equipment, including a computer; vision to read printed materials and a computer screen; and hearing and speech to clearly communicate in person and over the telephone. Finger dexterity is needed to access, enter, and Public Safety Dispatch Supervisor class specification Page 4 of 4 retrieve data using a computer keyboard or calculator and to operate standard office equipment.

Positions in the classification sit in a stationary position for long periods of time; reach and stand to operate equipment; consistently maintain mental alertness, remain calm and composed in difficult and emergency circumstances. Push and pull drawers open and closed to retrieve and file information.

Employees must possess the ability to lift, carry, push, and pull materials and objects up to 25 pounds with the use of proper equipment.

ENVIRONMENTAL CONDITIONS
Employees work in an office environment with moderate noise levels, controlled temperature conditions, and no direct exposure to hazardous physical substances. Employees may interact with upset staff and/or public and private representatives in interpreting and enforcing departmental policies and procedures. The principal duties of this class are performed in a police station environment with exposure to criminal offenders, mentally ill individuals, and persons potentially infected with communicable diseases. Willingness and ability to work any shift including work irregular duty assignments for both emergency and non-emergency situations such as sick calls, critical incidents, or special events; work holidays, weekends, scheduled and emergency overtime; be available on call, as required; willingness to work a variety of assignments and to rotate to different assignments as directed.

Wear uniform or professional business attire required; comply with departmental grooming standards.

Resolution No. 10959, 11094, 11185, 11398, 11454, 11560

EXHIBIT A
Memorandum of Understanding
Between City
of Newark and
Newark Police Association
July 1, 2019
Through
June 30, 2022
Adopted
July 11, 2019
Resolution No. 10959, 11094, 11185, 11398, 11454, 11560

TABLE OF CONTENTS
Section Page
I. Term 1
II. Representation 1
III. Definitions 1
IV. Labor Market 3
V. Salary Increase 3
VI. Health and Welfare Program 5
VII. Uniform Allowance 6
VIII. Vacation Leave 8
IX. Sick Leave and Incentive Program 11
X. Personal Leave 16
XI. Other Leaves 17
XII. Holidays 18
XIII. Elimination of Overlapping Pay Ranges 20
XIV. Certificate Incentive Pay 20
XV. Overtime 21
XVI. Minimum Court Time Pay 23
XVII. Detective On-Call Allowance 25
XVIII. Use of City Vehicles 25
XIX. Tuition Fees and Book Costs Reimbursement 25
XX. Retirement Benefits 27
XXI. Extension of Military Benefits 31
Resolution No. 10959, 11094, 11185, 11398, 11454, 11560 Section Page
XXII. Longevity Pay 32
XXIII. Special Assignment Pay 32
XXIV. Safety Training and Equipment 34
XXV. Per Diem Expense 34
XXVI. Grievance Procedure 35
XXVII. Work Schedules 37
XXVIII. Newark Police Association Release Time 40
XXIX. Authorized Representatives for the Purpose of Administering the Terms and Conditions of this Memorandum of Understanding 41 XXX. Carry Over Terms 41
XXXI. Management Rights 41
XXXII. Implementation of Section 414(h)(2) of the United States Internal Revenue Code 42
XXXIII. Full Understanding Modification and Waiver 42
XXXIV. Transfer 43
XXXV. Promotion 43
XXXVI. Nondiscrimination 43
XXXVII. Provision Regarding Americans with Disabilities Act 43 XXXVIII. Separability 44

ATTACHMENTS
A Regular Full-Time / Part-Time Classifications
A.2 Salary List
B Silliman Activity & Family Aquatics Center
C Employee Wellness Committee
1 MEMORANDUM OF UNDERSTANDING

BETWEEN

CITY OF NEWARK AND NEWARK POLICE ASSOCIATION
I. TERM
This agreement shall be in effect from July 1, 2019 through June 30, 2022.

II. REPRESENTATION
The City recognizes the Newark Police Association (NPA), hereinafter referred to as the "Association," as the majority representative for regular full-time employees in the sworn classifications and full-time and regular part-time non-sworn classifications listed in Attachment A, pursuant to Employer-Employee Relations Resolution No. 1833.

III. DEFINITIONS
For purposes of this Memorandum of Understanding, unless the context otherwise requires, the following definitions in this Agreement shall apply:

A. “Base Hourly Rate.” The term “base hourly rate” shall mean the hourly compensation rate for regular part-time classifications, excluding benefits.

B. "Compensation Base." The term "compensation base" shall mean the total compensation for regular full-time classifications including consideration for base salary, City's payment of any portion of the employee's contribution to PERS, medical premium, dental premium, vision care, life insurance, long term and/or short term disability. Total compensation offers choices for employees to select benefit plans suitable to individual needs.

C. "Employees". The term "employees" shall mean those regular full-time and regular part-time employees of the City of Newark occupying classifications represented by the Newark Police Association.

D. "Employer". The term "employer" shall mean the City of Newark.

E. "Employee Contributions." The term "employee contributions” shall mean those contributions to the PERS retirement system which are deducted from the salary of employees and credited to individual employees' accounts.
2 F. "Flexible Benefit Plan." The term "Flexible Benefit Plan" means a Plan established by the City of Newark pursuant to Section 125 of the Internal Revenue Code to allow employees to pay for medical and dental premiums as a before-tax conversion of salary.

G. "Non-sworn." The term "non-sworn" refers to those personnel occupying the classifications of Animal Control Officer, Community Service Officer, Public Safety Clerk, Police Record Supervisor, Public Safety Dispatcher, Public Safety Dispatch Supervisor, and Red Light Photo Enforcement Technician.

H. "Sworn". The term "sworn" refers to personnel occupying classifications of Police Sergeant or Police Officer.

I. “Reinstatement.” In addition to reinstatement status as explained in the Personnel Rules and Regulations, the term “reinstatement” for purposes of this MOU shall apply to full-time sworn personnel who separate from the City of Newark after successfully completing their probationary period, then return to active service in the same classification within one year of their separation date.

J. "Retirement System." The term "retirement system" shall mean the PERS retirement system as made applicable to the City of Newark under the provisions of the Public Employees' Retirement Law (California Government Code Section 20000 et seq.).

K. “Regular Part-Time Employees.” The term “regular part-time employees” shall mean those employees of the City of Newark who are scheduled to work less than 40 hours per week but at least 20 hours per week on a year-round continuous basis occupying positions specifically authorized as “regular part-time”.

L. "Wages". The term "wages" shall mean the compensation paid to employees covered by this Agreement.

M. “Alternative Work Schedule” shall mean any schedule that differs from the five day, eight hours per day, 40-hour per week schedule.

N. “Four-Ten Work Schedule” shall mean a four-day, ten hours per day, 40 hours per week work schedule in a seven day work schedule.

O. “3/12 ½ Work Schedule” shall mean a work schedule for full-time Public Safety Dispatchers, Lead Public Safety Dispatchers, and Public Safety Dispatch Supervisors that equates to 40- hours per week in a 28-day work cycle. Typically, a Public Safety Dispatcher,/ Lead Public Safety Dispatcher, and Public Safety Dispatch Supervisor assigned to this work schedule will work three 12.5 hour days per week and one day of 3 10 hours within the City-designated 28-day work cycle. 4 P. “160-Hour Work Schedule” shall mean a work schedule for sworn personnel that equates to 40-hours per week in a 28-day work cycle.

Typically, a sworn employee assigned to this work schedule will work three 12.5 hour days per week and one day of 10 hours within the City-designated 28-day work cycle.

Q. “28-Day Work Cycle” for sworn personnel means the Fair Labor Standards Act work cycle of 28-continuous calendar days as established by the Payroll Office.

R. “A Shift” means the scheduled work hours of 6:00 a.m. to 6:30 p.m.

S. “B Shift” means the scheduled work hours of 6:00 p.m. to 6:30 a.m.

T. “C Shift” means the scheduled work hours of 1:30 p.m. to 2:00 a.m.

IV. LABOR MARKET
The following agencies comprise the designated labor market for the purpose of salary and benefit survey comparisons: Foster City, Fremont, Hayward, Livermore, Menlo Park, Milpitas, Pleasanton, Redwood City, San Leandro, and Union City.

V. SALARY INCREASE
A. Market Equity Adjustments

1. Methodology
a. Market Equity Adjustments shall be suspended during the term of this agreement, however, the parties mutually
acknowledge the need to provide competitive compensation packages to recruit and retain highly qualified personnel.

Further, although the wage increases set forth herein not based upon the survey method set forth below, the parties believe the enhanced wages and benefits set forth in this Agreement would satisfy the survey criteria.
b. Formula for computing salary adjustments: The salary ranges for all classifications represented by the Association shall be increased by an amount determined by calculating the
percent difference between the
top step total compensation of the classifications represented by 5 the Association and the mean of the top step total compensation for labor market (as defined in Section IV) classifications known on a specified date, but effective no later than a specified date.

All calculations shall be based upon a 40 hour workweek.

The following is for illustrative purposes only:

If the mean of the top step total monthly compensation for the labor market was $8,500 for the position of Police Officer, and top step total monthly compensation for the City of Newark classification of Police Officer was $8,400, then $8,500 would be subtracted from $8,400, equaling -$100. Then, -$100 would be divided by $8,400, which equals -0.01190, rounded to the nearest hundred-thousandth. Next, -0.01190 is multiplied by 100 to derive a percent, which is then rounded to the nearest tenth, which in this case equals -1.2%. A negative number indicates the classification is below market, and therefore a market adjustment is needed, which in this case results in a salary increase for Police Officer equal to 1.2% of total compensation. If the percentage were to be positive, at or above 0.0%, the classification would not be entitled to a market adjustment.
c. "Total compensation" for survey purposes shall include:

Top step base salary.

That portion of the employee's PERS contribution that is paid by the employer (employee contributions to the employer’s PERS costs shall be reflected as a negative number).

The amount of the highest premium the employer will pay for family coverage of medical, dental, and vision premiums.

Any premiums paid by the employer for life insurance.

Any premiums paid by the employer for long term and/or short term disability.
d. For discussion purposes, the parties will prepare an alternative “Total compensation” survey that includes all the items in paragraph (c), but adds the following:

The maximum amount paid by the employer for educational achievements or POST certificates.
6 The maximum number of holiday hours or holiday pay provided by the employer.

2. General Salary Increase
The salary ranges for all classifications represented by the Association shall be increased as follows:
a. Effective July 1, 2019, salary increase shall be one and onehalf percent (1.5%). b. Effective July 1, 2020, salary increase shall be one and onehalf percent (1.5%). c. Effective July 1, 2021, salary increase shall be one and onehalf percent (1.5%). If by January 1, 2021, the City’s revenues for Fiscal Year 21/22 are projected to be at least $1,250,000 less than actual revenues for Fiscal Year 20/21, at the request of the City, the parties agree to re-open negotiations on 1.5% increase scheduled for the July 1, 2021.

VI. HEALTH AND WELFARE PROGRAM
A. The contribution by the City toward monthly premiums for health and welfare programs of employees represented by the Association shall be the Minimum Employer Contribution as determined by CalPERS for employers under the Public Employees’ Medical and Hospital Care Act (PEMHCA). In the event that an employee elects to waive participation in the Program, that amount will be paid to the employee. The employee shall execute a waiver in the event the employee elects not to participate in the PERS Health Benefit Program or cancel participation after enrollment.

B. The City agrees to maintain a cafeteria plan under Section 125 of the Internal Revenue Code (IRC). The cafeteria plan allows employees to voluntarily reduce salary in an amount equal to the actual premiums for the PERS Health Plan, City-administered dental insurance and/or vision insurance as a before-tax conversion of salary. In the event of changes in law affecting the Flexible Benefit Plan, the City agrees to meet and confer with the Association regarding the impact of such changes.

C. Effective for the 2020 plan year, the City shall contribute to eligible NPA employee’s cafeteria plan, an amount equal to the following, minus the Minimum Employer Contribution.
7 Employee Only: $844
Employee + 1 Dependent: $1,687
Employee + 2 or more Dependents: $2,228
Effective for the 2021 plan year, the City shall contribute to eligible NPA employee’s cafeteria plan, an amount equal to the following, minus the Minimum Employer Contribution.

Employee Only: $861
Employee + 1 Dependent: $1,721
Employee + 2 or more Dependents: $2,273
Effective for the 2022 plan year, the City shall contribute to eligible NPA employee’s cafeteria plan, an amount equal to the following, minus the Minimum Employer Contribution.

Employee Only: $878
Employee + 1 Dependent: $1,755
Employee + 2 or more Dependents: $2,318
D. Cash Back / Cash in Lieu of Benefits: Employees may “cashout” up to $450 per month of any money not used for the purchase of employer offered benefits. Any “cashout” will be paid to the employee in taxable compensation.

E. City and Association agree that in the event of any additional federal or state mandates requiring employer contributions for health care coverage, the City and Association shall reopen the memorandum of understanding to meet and confer on the issue of health care premiums and its impact on total compensation.

F. The City shall provide to each bargaining unit member, at no cost to the bargaining unit member, a $50,000 life insurance policy.

VII. UNIFORM ALLOWANCE
A. Police Officer, Police Sergeant, Community Service Officer, and Animal Control Officer

1. Upon appointment to the classification of Police Officer, Community Service Officer, or Animal Control Officer a full-time regular employee shall be reimbursed by the City for the purchase of City-approved uniform and equipment up to an amount equal to the maximum of the annual uniform allowance in effect on the date of appointment to Police 8 Officer, Community Service Officer, or Animal Control Officer.

Reimbursement shall be made upon receipt of evidence of purchase.

2. Upon completion of 12 months of continuous active employment or upon reinstatement, Police Officers and Police Sergeants shall receive a monthly uniform allowance of $100.

3. Upon completion of 12 months of continuous active employment or upon reinstatement, Community Service Officers and Animal Control Officers shall receive a monthly uniform allowance of $100.

4. If the employment of a Police Officer, Community Service Officer, or Animal Control Officer is terminated before completion of the probationary period or 18 months of service, whichever is longer, uniforms and equipment purchased by the City through
reimbursement pursuant to Provision VII.A.3.above shall be returned to the City.

B. Public Safety Dispatchers, Lead Public Safety Dispatchers, Public Safety Dispatch Supervisors, Public Safety Clerks, and Police Records Supervisor

1. Effective July 1, 2019 upon appointment to the classifications of Public Safety Dispatcher, Lead Public Safety Dispatcher, Public Safety Dispatch Supervisor, Public Safety Clerk, or Police Records Supervisor a full-time regular employee shall be reimbursed by the City for the purchase of City- approved uniform shirts and pants up to an amount equal to the maximum of the annual uniform allowance in effect on the date of appointment to Public Safety Dispatcher, Lead Public Safety Dispatcher, Public Safety Dispatch Supervisor, Public Safety Clerk, or Police Records Supervisor. Reimbursement shall be made upon receipt of evidence of purchase.

2. Effective July 1, 2019, existing employees in the classifications of Public Safety Dispatcher, Lead Public Safety Dispatcher, Public Safety Clerk, or Police Records Supervisor a full-time regular employee shall be reimbursed by the City for the purchase of Cityapproved uniform shirts and pants up to an amount equal to the maximum of the annual uniform allowance in effect on the date of appointment to Public Safety Dispatcher, Lead Public Safety Dispatcher, Public Safety Clerk, or Police Records Supervisor.

Reimbursement shall be made upon receipt of evidence of purchase.

3. Upon completion of 12 months of continuous active employment or upon reinstatement, Public Safety Dispatchers, Lead Public Safety Dispatchers, Public Safety Dispatch Supervisors, Public Safety Clerks, and Police Records Supervisors shall receive a monthly uniform allowance of $45.
9 C. Motorcycle Duty
Upon approval of the Police Chief, employees assigned to motorcycle duty will be provided one pair of boots, two pairs of trousers, and one leather jacket. The motorcycle apparel shall conform to Police Department standards established by the Police Chief. Replacement of damaged or used apparel shall be at the discretion of the Police Chief. Employees shall either return the leather jackets at the completion of the motorcycle assignment or purchase the jacket issued to the employee from the City at a cost of $250. Duration of motorcycle duty assignments shall be at the discretion of the Police Chief.

VIII. VACATION LEAVE
A. Beginning on the 90th day of employment, regular full-time sworn employees shall be eligible to earn vacation leave. Upon completion of said period of service, regular full-time sworn employees shall be credited with 22.5 hours of vacation leave and shall thereafter accrue vacation leave at the rates provided in Section C below for sworn employees.

B. Beginning on the 90th day of employment, regular full-time non-sworn employees shall be eligible to earn vacation leave. Upon completion of said period of service, regular full-time non-sworn employees shall be credited with 20 hours of vacation leave, and shall thereafter accrue vacation leave at the rate provided in Section C below for non-sworn employees.

C. Vacation leave entitlement for regular full-time employees following completion of 90 days of continuous service is listed below.

1. Eligible sworn employees who have served less than five (5) years with the City shall earn vacation entitlement at the rate of 7.5 hours per month.

2. Eligible non-sworn employees who have served less than five (5) years with the City shall earn vacation entitlement at the rate of 6.67 hours per month.

3. Eligible sworn and non-sworn employees during their fifth year of employment, and thereafter, with the City of Newark shall earn vacation entitlement at the rate of ten (10) hours per month.

4. Eligible sworn and non-sworn employees during their tenth year of employment, and thereafter, with the City of Newark shall earn vacation entitlement at the rate of 13.34 hours per month. 10 5. Eligible sworn and non-sworn employees during their fifteenth year of employment, and thereafter, with the City of Newark shall earn vacation entitlement at the rate of 14.667 hours per month.

6. Eligible sworn and non-sworn employees during their twentieth year of employment, and thereafter, with the City of Newark shall earn vacation entitlement at the rate of 16.67 hours per month.

D. Regular full-time employees who separate from City service after 90 days of continuous service shall be paid for that part of his/her vacation accumulation that remains unused at the time of termination. Payment for unused vacation shall be made at the rate of pay in effect for such employees at the time of separation. Regular full-time employees who terminate from City service prior to completion of a 90 day employment period shall not be entitled to compensation for vacation leave, as none has been accrued.

E. Upon separation from the City, a regular full-time employee will receive prorated vacation credit if the employee is actively at work or on a leave with pay for at least fifteen (15) calendar days during a month to accrue credit for that month.

F. The Police Chief shall set the shift work schedules no later than October 1st in the calendar year of the bid for the following year’s schedule. The NPA shall coordinate the bids for shift and the bids for vacation as soon as possible after the work schedules are set. Shift and vacation schedules must be completed and submitted to Police administration by November 15 preceding implementation of the new work schedules. Any bids not completed or submitted will be determined at the sole discretion of the Police Chief.

G. It is the mutual understanding and intent of both parties that the term “vacation” for the purpose of determining when the employee is away from work includes the employee’s days off preceding and following his or her regularly assigned shift (e.g. If the employee works Fri.-Sun. then the employee is considered on vacation from the Monday-Thursday of the preceding week and from Monday-Thursday of the following week.) The City will not schedule a payback day or training day within this vacation period. This provision only applies to two vacation periods designated by the employee during the annual vacation selection process. Any member selecting a vacation consisting of three (3) or more consecutive workweeks will have the option to satisfy their payback day utilizing accrued paid time off to complete their work assignment for the FLSA work period. This provision does not affect the City’s ability to ensure proper staffing in the event of an emergency. Emergency shall include but not be limited to the necessity of replacing employees absent from work 11 because of unanticipated and unavoidable illness, injury or other good cause, including unplanned tactical operations. The Association and City agree that every attempt will be made for payback days to be scheduled to coincide with the employees’ normal workweek. However, if that is not possible the City may assign the payback day as needed.

H. Regular part-time employees, upon completion of 90 days of continuous active service shall be eligible to accrue vacation leave hours each month as follows:
20-25 Hour 30-35 Hour
Work Schedule Work Schedule
Less than 5 years of service 3.33 – 4.16 5.00 – 5.83
During the 5th & following 5.00 – 6.25 7.50 – 8.75
During the 10th & following
During the 15th & following
During the 20th & following

6.67 – 8.33

7.33 – 9.16

8.33 – 10.41

10.00 – 11.67

11.00 – 12.83

12.50 – 14.58
Effective July 1, 2010, proration of RPT vacation leave will be based on actual hours worked or budgeted to work. For example, an RPT employee with one year of City service who works 35 hours per week will receive 5.836 hours of vacation per month. If actual hours worked differ from hours budgeted to work, the lesser number of hours will be used as the basis for proration.

An eligible employee must be at work or on a leave with pay for at least one half of the regularly scheduled work days in a month to accrue vacation leave credit for that month. (One-half the month for regular parttime employees shall not be based on hours worked, but rather the number of regularly authorized work days.)
Regular part-time employees who separate from City service after 90 days of continuous active service shall be paid for accrued but unused vacation leave at the time of termination. Payment for unused vacation shall be made at the rate of pay in effect for such employees at the time of separation. Regular part-time employees who terminate from City service prior to working 90 days of continuous active service shall not be entitled to compensation for vacation leave, as none has been accrued.

I. A regular full-time employee must be at work or on compensated leave for at least 80 hours during a month to accrue vacation credit for that month.

It is understood by the City and Association that leave benefits will be accrued and used on an hourly basis. When an employee on an alternative work schedule is on paid leave, the employee must charge 12 accrued leave balances for the number of hours required to cover the number of hours scheduled to work (e.g. 12.5 hours of leave, 10 hours of leave, or 9 hours of leave).

J. The maximum accumulation of vacation leave hours will be limited to two times the employee’s annual accrual. The City Manager shall have the authority to allow an employee to exceed this maximum accumulation for 30 days.

K. Effective July 1, 2017, upon using one-half of the vacation time accrued during the 12-month period from July 1 through June 30, a regular fulltime employee may request to receive pay for up to a total of sixty (60) hours per fiscal year of vacation, forty-five (45) to fifty-two and a half (52.5) hours for 30-35 hour employees, and thirty (30) to thirty-seven and a half (37.5) hours for 20-25 hour employees in hourly increments at the current hourly salary rate provided there is a minimum of one (1) week (40 hours) remaining in the employee’s vacation bank after the conversion. Requests for vacation buy-back may be made up to two times per fiscal year in October and/or April for payment on December 15 and/or June 15.

IX. SICK LEAVE AND INCENTIVE PROGRAM
A. Purpose
The purpose of sick leave is to allow regular full-time and regular part-time employees who are ill or injured to remain absent from work with pay, within the limitations of this section. Sick leave is granted to a full-time or part-time employee to recover from illness or injury so as to be physically able to return to work. Employees may also use sick leave to care for their sick children, siblings, parents, or spouse / domestic partner. Sick leave may be utilized for any leave covered under the Family Medical Leave Act (FMLA) and/or California Family Rights Act (CFRA).

B. Accrual

1. Regular full-time employees may accrue sick leave with pay at the rate eight hours per month for each calendar month of service. Regular full-time employees shall accumulate unused sick leave at the rate of eight (8) hours per calendar month to a total of not more than 960 hours.

2. Regular full-time employees who have served less than 90 days with the City shall receive no sick leave. Beginning on the 90th day of employment, the employee shall receive sick leave credit of 24 hours. 13 3. A full-time employee must be at work or on compensated leave for at least 80 hours during a calendar month to accrue sick leave, retirement, and/or any benefits or awards relating to or contingent upon completion of a specified period of employment or length of service. It is understood by City and Association that leave benefits will be accrued and used on an hourly basis. When an employee on an alternative work schedule is on paid leave, the employee must charge accrued leave balances for the number of hours required to cover the number of hours scheduled to work (e.g. 12.5 hours of leave, 10 hours of leave, or 9 hours of leave).

4. Regular part-time employees, beginning on the 90th day of employment, shall be eligible to accrue and use sick leave with pay at the following rates and to the following maximums:

Work Schedule
Monthly
Accrual Rate
Maximum
Accrual
20 - 25 hrs/week 4-5 hours 480-600 hours
30 - 35 hrs/week 6-7 hours 720-840 hours
Effective July 1, 2010, proration of RPT sick leave will be based on actual hours worked or budgeted to work. For example, an RPT employee who works 35 hours per week will receive 7 hours of sick leave per month. If actual hours worked differ from hours budgeted to work, the lesser number of hours will be used as the basis for proration.

Regular part-time employees must be actively at work or on leave with pay for at least one half the regularly authorized work days in a month to accrue sick leave credits for that month. (One-half the month for regular part-time employees shall not be based on hours worked, but rather the number of regularly authorized workdays.)
Retirement Service Credit
Retirement service credit accounts have been established for each regular full-time and regular part-time employee in which that member may accrue retirement service credit toward early retirement under the Public Employees' Retirement System plan applicable to sworn and non-sworn employees. Retirement service credits cannot be used as sick leave as provided in this Agreement or the Personnel Rules and Regulations but may be used only towards early retirement under the Public Employees' Retirement System. Sick leave credit accrued in excess of 960 hours for full-time employees, 720-840 hours for 30-35 hour part-time employees, and 480-600 hours for 20-25 hour part-time employees shall be placed in the individual's retirement service credit account. Accumulation of 14 retirement service credit shall be unlimited.

Individuals with less than 960 hours, 720 hours, or 480 hours as applicable accumulation may designate a portion or all of their accumulation of sick leave credit after July 1, 1982 to be placed in the retirement service credit account. However, once placed in the retirement service credit account, it can be used only for retirement service credit and cannot be withdrawn from that account.

D. Administration of Sick Leave

1. Whenever possible, employees will make medical and/or dental appointments during off-duty time. When an eligible employee is unable to schedule a medical and/or dental appointment for treatment of an illness or injury during off-duty time, with the approval of the Department Head, the employee may charge time off for the medical and/or dental appointment to sick leave.

2. In order to receive compensation while absent on sick leave, the employee shall notify his/her immediate superior or other competent authority as soon as practicable, preferably prior to the time set for beginning his/her daily duties. He/she must submit an application for sick leave showing such information as required by the Police Chief.

Such applications shall be factually correct. The Police Chief may make such investigations as he/she feels necessary and may require supplemental information from the employee.

3. A sworn employee may charge sick leave for the difference between workers' compensation temporary disability payments and his/her full salary, until such time as a medical examiner certifies that the employee's condition has become permanent and stationary and that the employee is permanently precluded from performing the substantial range of the job duties performed by the employee at the time of industrial injury.

4. Where non-sworn employees receive workers' compensation salary continuation benefits, and where sick leave is approved, the City shall pay the non-sworn employee his/her full salary excluding there from the employee's workers' compensation benefits. The non-sworn employee's sick leave entitlement shall be charged on a pro rata basis.

5. If an eligible employee uses sick leave any time in excess of two (2) continuous days, the Police Chief may require the employee to furnish a certificate from a licensed doctor of medicine, chiropractic medicine or osteopathy of the employee's choice, who has examined the employee, so that the employee's condition and ability to return to work 15 may be ascertained. In any case and at any time, the Police Chief may require submittal of periodic physician's reports concerning the employee's condition and ability to return to and/or continue work.

6. Whenever the Police Chief has reasonable cause to believe that an eligible employee's condition of health is affecting or could affect the employee's ability to work, the Police Chief may require the employee to submit to an examination by a licensed physician selected by the City. If the physician determines that the eligible employee should not be undertaking certain duties required by his/her position classification, the Police Chief may require the employee to use accrued sick leave until sufficiently recovered to return to work.

7. Absence for illness may not be charged to sick leave not already accumulated by the employee.

8. An eligible employee absent from duty due to illness or injury who has been performing outside employment authorized by the Police Chief shall refrain from working at the outside employment until he/she is fully recovered from the illness or injury, unless specific approval is obtained from the Police Chief, or designee, to continue outside employment.

E. Sick Leave Incentive Program
To minimize the impact on Police Department operations due to unanticipated absences, a sick leave incentive program is established for regular full-time and regular part-time employees represented by the Newark Police Association. The sick leave incentive program shall be administered as specified in the following provisions of this agreement.

Incentives shall be based on achieving perfect attendance (defined as without use of sick leave) during calendar quarters (January - March, April-June, July - September, October - December).

Incentive payments shall be granted at two levels which shall be Level A:
$50.00 per month for full-time employees, $37.50 to $43.75 for 30-35 hour part- time employees, and $25 to $31.25 for 20-25 hour part-time employees for a calendar quarter provided an employee had perfect attendance during the previous calendar quarter and Level B: $100.00 per month for full-time employees, $75 to $87.50 for 30-35 hour part-time employees, and $50 to $62.50 for 20-25 hour part-time employees for a calendar quarter provided an employee had three consecutive calendar quarters of perfect attendance. The following criteria shall be applied in determining eligibility for the two levels of incentive pay. 16 1. Level A
a. Employees who have successfully completed nine (9) months of continuous active service in a regular full-time or regular part-time position represented by the Association shall be eligible to earn a sick leave incentive payment after a calendar quarter of perfect attendance.
b. Employees hired before June 1, 1996 shall be eligible to earn a sick leave incentive payment after completion of six (6) months of continuous active service in a regular full-time position represented by the Association.
c. An employee who works a calendar quarter without the use of sick leave, will receive the applicable Level A monthly incentive pay ($50.00, $37.50 to $43.75, or $25 to $31.25) for the succeeding calendar quarter. If any sick leave is used during the calendar quarter, when the employee is receiving the Level A incentive pay, payment of the incentive pay shall cease during the calendar quarter immediately following the one in which the sick leave was used.

2. Level B
a. An employee who works three consecutive calendar quarters without the use of sick leave shall have his/her incentive pay increased to the applicable Level B monthly incentive pay ($100.00, $75 to $87.50, or $50 to $62.50) for the succeeding calendar quarter. The Level B incentive payment will continue each calendar quarter provided the employee has perfect attendance during the previous calendar quarter.
b. If during any calendar quarter, when the employee is receiving the Level B incentive pay, an employee uses two days or less of sick leave, the incentive pay shall be reduced to Level A for the calendar quarter immediately following the one in which the sick leave was used.
i. If during the calendar quarter, when the employee is receiving the Level A incentive pay, an employee uses no sick leave, the sick leave incentive payment shall be reinstated at Level B for the succeeding calendar quarter. The Level B incentive payment will continue each calendar quarter provided the employee has perfect attendance during the previous calendar quarter.
17 ii. If during the calendar quarter, when the employee is receiving the Level A incentive pay, an employee uses any sick leave, the sick leave incentive payment shall cease for the quarter immediately following the one in which the sick leave was used. The employee must work a calendar quarter without the use of any sick leave to receive the Level A incentive for the succeeding quarter and three consecutive calendar
quarters of perfect attendance to receive the Level B incentive payment.
c. If during any calendar quarter, when the employee is receiving the Level B incentive pay, an employee uses more than two days of sick leave, the incentive pay shall cease for the quarter immediately following the one in which the sick leave was used. The employee must work a calendar quarter without the use of any sick leave to receive the Level A incentive for the succeeding quarter and three consecutive calendar quarters of perfect attendance to receive the Level B incentive payment.

Approved absences due to an accepted City of Newark workers’ compensation illness or injury, or certified leave under FMLA, CFRA, PDL, or other protected leaves per state or federal law shall not affect the earning of incentives under this program.

Conversion of sick leave as provided in Section IX of this Memorandum of Understanding shall be considered use of sick leave and shall affect earning of incentives under this program.

X. PERSONAL LEAVE
Regular full-time employees (prorated for regular part-time employees) may convert a maximum of the equivalent of one (1) work day (e.g., 8, 10, or 12.5 hours, dependent upon regularly assigned schedule) of sick leave to personal leave during each fiscal year. For example, a regular part-time employee who is scheduled to work 35 hours per week and works 12 hour shifts may convert a maximum of 10.5 hours of sick leave to personal leave during the fiscal year.

Effective July 1, 2006, all non-sworn regular full-time employees represented by the Association shall be granted a maximum of two (2) hours of personal leave with pay each fiscal year. All non-sworn regular part-time employees represented by the Association shall be granted a maximum of one (1) hour of personal leave with pay each fiscal year.

Effective July 1, 2008, In recognition of the unique work requirements that are specific to Dispatch employees that include but are not limited to; urgency conditions that interrupt schedules, loss of premium pay due to unscheduled 18 absences, dispatch employees will receive 10 hours of personal leave to be used only on the 10 hour payback day and after advanced scheduling and approval of the manager. Hours must be used during the fiscal year or they will be forfeited.

XI. OTHER LEAVES
A. Military Leave
Employees represented by the Association shall be entitled to military leave and leave of absence without pay as specified in the City's Personnel Rules and Regulations.

Any Association employee who is required to be absent from his/her employment as the result of military obligations; i.e., military leave, shall be paid by City at the regular rate of pay to a maximum leave period of thirty (30) consecutive calendar days (or up to 172 hours) in any fiscal year while so absent. Employees are required to use accrued leave for all absences due to voluntary military duty. See section XXI for additional military benefits.

B. Jury Duty

1. Regular full-time employees summoned to jury duty may be absent from duty provided that a copy of the summons is submitted to the employee's supervisor prior to jury duty and the employee is selected to serve on a jury.

2. Jury duty is based on an eight-hour day. If the employee’s regularly scheduled shift is over eight (8) hours, the employee may use accrued leave to cover the rest of their shift, or return back to work and complete the rest of their shift. Employees shall not receive any overtime or compensatory time for jury duty occurring on a regularly scheduled day off.

3. Upon approval of the Police Chief, an employee assigned to shift duty may be rescheduled to day shift if the Jury Commissioner will not excuse the employee, and the employee is selected to serve on a jury.

Rescheduling will only be considered if the employee has submitted the Chief's letter requesting that the employee be excused to the Jury Commissioner.

4. Regular part-time employees, upon completion of 1,040 work hours or one year of continuous active service, whichever occurs first, who are summoned to jury duty and required to serve, may be absent from duty with pay as follows:
19 Authorized Work Schedule Pay
20 - 25 hrs/week 4 hours of pay per day
30 - 35 hrs/week 6 hours of pay per day

5. Those sworn and non-sworn regular full-time personnel who are officially notified to be summoned to jury duty, and are scheduled to work beyond midnight, shall not return to work for a minimum of 9 hours after serving jury duty.

C. Bereavement Leave

1. Regular full-time employees represented by the Association may be granted up to a maximum of 40 hours of bereavement leave where there has been a death of a husband, wife, son, daughter, stepson, stepdaughter, sister, brother, mother, father, stepmother, stepfather, grandparent, grandchild, mother-in-law, father-in-law, grandparent-inlaw, sister-in-law, brother-in-law, son-in-law, or daughter-in-law of an employee in order that the employee may attend last rites and attend to any pressing matters resulting from the death.

2. Regular part-time employees, upon completion of 1,040 work hours or one year of continuous active service, whichever occurs first, shall be eligible for prorated bereavement leave. Effective July 1, 2010 regular part-time employees shall be eligible for prorated bereavement leave based on actual hours worked or budgeted to work. For example, an RPT employee who works 35 hours per week will receive up to a maximum of 35 hours of bereavement leave. If actual hours worked differ from hours budgeted to work, the lesser number of hours will be used as the basis for the proration. Bereavement leave will be prorated as follows:

Work Schedule Prorated Bereavement Leave
20 - 25 hrs/week up to a maximum of 20-25 hours
30 - 35 hrs/week up to a maximum of 30-35 hours
XII. HOLIDAYS
A. Regular full-time employees in the classifications of Police Officer, Police Sargeant, Public Safety Dispatcher, and Lead Public Safety Dispatcher, and Public Safety Dispatch Supervisor shall receive as compensation inlieu of holidays an amount equal to 5% of his/her current base pay step, which in-lieu payment shall be paid each pay period. The in-lieu compensation factor of 5% shall not be applied and added to any payment for overtime work or to a lump sum payment for accrued vacation in the case of a terminating employee; or to any other payment to an employee except his/her current base pay step.
20 B. During the term of this agreement the classifications of Community Service Officer, Animal Control Officer, Police Record Supervisor, and Public Safety Clerk, shall be eligible for the following holidays:
• January 1, New Year's Day
• Third Monday in January, Martin Luther King, Jr., Day • Third Monday in February, President's Day
• Last Monday in May, Memorial Day
• July 4, Independence Day
• First Monday in September, Labor Day
• November 11, Veteran's Day
• Thanksgiving Day
• Friday following Thanksgiving Day
• Last work day before Christmas
• December 25, Christmas Day
• Employee's Birthday, to be taken within the fiscal year of the employee's birthday, subject to Department Head approval • Floating Holiday, to be scheduled subject to Department Head approval.

The employee birthday holiday and the floating holiday must be scheduled and used during the fiscal year. Holidays shall not be carried over from one fiscal year to another. Upon termination, an unused holiday cannot be converted to cash. An employee must be employed in a covered classification by January 1st to be eligible for the floating holiday.

C. When a holiday falls on a Sunday, the following Monday shall be observed. When a holiday falls on a Saturday, the preceding Friday shall be observed. When a holiday falls on the second day of two consecutive scheduled days off, the day following the days off shall be observed.

When a holiday falls on the first day of two consecutive scheduled days off, the day preceding the days off shall be observed.

D. When a regular full-time employee who receives holiday-in-lieu pay is assigned to a light duty assignment on a 40-hour per week work schedule, said employee shall continue to receive holiday-in-lieu pay and will be required to work on holidays that occur during the work week.

E. Effective July 1, 2010 the proration of holiday-in-lieu pay for regular parttime (RPT) employees in the classification of Public Safety Dispatcher, / Lead Public Safety Dispatcher, and Public Safety Dispatch Supervisor will be based on actual hours worked or budgeted to work. For example, an RPT employee who is budgeted to work 35 hours per week will earn a prorated amount of holiday-in-lieu compensation based on a 35 hour per week work schedule. The in-lieu compensation factor shall not be applied and added to any payment for overtime work or to a lump sum payment 21 for accrued vacation in the case
22 of a terminating employee; or to any other payment to an employee except his/her regular pay.

F. Regular full-time employees represented by the Association who are assigned to work an alternative work schedule but who are not eligible for holiday-in-lieu pay will receive eight (8) hours of holiday leave for each official holiday set forth in the MOU. (Holiday leave is defined as an eight (8) hour day). The employee will receive eight hours of holiday pay at the straight time hourly rate and the additional hours to complete the shift must be charged to accrued vacation, comp time, or holiday comp time leave. When an employee works on a holiday or a holiday falls on a regularly scheduled day off the employee shall accrue eight (8) hours of holiday comp time (HCT). On the June 30 pay check, any unused holiday comp time (HCT) in excess of 26 hours will be paid to the employee at the straight time hourly rate in effect in June of that year. Those employees that utilize the holiday leave in observance of the holiday shall either utilize accrued vacation, compensatory time off, or holiday comp time for the remaining two (2) hours of their scheduled shift, or with the consent of their department, flex their work schedule during the same workweek as the holiday and work an additional two (2) hours at straight time.

XIII. ELIMINATION OF OVERLAPPING PAY RANGES
In the case of promotions to classes covered by this memo, the City agrees to pay the promoted employee a minimum of 5% above the top step of the range from which he/she was promoted.

XIV. CERTIFICATE INCENTIVE PAY
The City shall provide the following Certificate Incentive Pay for sworn personnel represented by the Association who receive a California P.O.S.T.

Intermediate or Advanced Certificate:

A. Effective July 1, 2019, Certificate Incentive Pay will be:

P.O.S.T. Intermediate Certificate $460 per month
P.O.S.T. Advanced Certificate $650 per month
Effective July 1, 2020, Certificate Incentive Pay will be:

P.O.S.T. Intermediate Certificate $480 per month
P.O.S.T. Advanced Certificate $685 per month
Effective July 1, 2021, Certificate Incentive Pay will be:

P.O.S.T. Intermediate Certificate $500 per month
P.O.S.T. Advanced Certificate $725 per month
23 The effective date for payment of educational incentive pay shall be the payroll period immediately following the date on the P.O.S.T. certificate.

The provision of educational incentive pay is not intended as an inducement or directive to employees to conduct personal education programs beyond the programs required and/or provided by the City.

The course work is undertaken voluntarily by the employee and not subject to remuneration under provisions of the Fair Labor Standards Act.

B. Effective July 1, 2019, Certificate Incentive Pay for dispatch personnel will be:

P.O.S.T. Intermediate Certificate $120.00 per month
P.O.S.T. Advanced Certificate $200.00 per month
Effective July 1, 2020, Certificate Incentive Pay for dispatch personnel will be:

P.O.S.T. Intermediate Certificate $160.00 per month
P.O.S.T. Advanced Certificate $250.00 per month
Effective July 1, 2021, Certificate Incentive Pay for dispatch personnel will be:

P.O.S.T. Intermediate Certificate $200.00 per month
P.O.S.T. Advanced Certificate $300.00 per month
The effective date for payment of educational incentive pay shall be the payroll period immediately following the date on the P.O.S.T. certificate.

The provision of educational incentive pay is not intended as an inducement or directive to employees to conduct personal education programs beyond the programs required and/or provided by the City.

The course work is undertaken voluntarily by the employee and not subject to remuneration under provisions of the Fair Labor Standards Act.

XV. OVERTIME
A. Regular Full-time Employees
Overtime for all regular full-time employees shall be defined as that time worked in excess of the regularly assigned shift. Overtime shall be paid for actual hours worked when an employee’s overtime hours are consecutive with the beginning or end of their regular shift. All overtime as above defined shall be paid at the rate of time and one-half of the regular hourly rate of pay for all positions or be granted as compensatory time off at the rate of time and one-half.
24 B. Regular Part-time Employees
Overtime for all regular part-time employees shall be defined as that work performed in excess of twelve and one-half (12.5) hours in a workday or forty (40) hours of actual work in a scheduled workweek. All overtime as above defined shall be paid at the rate of time and one-half of the regular hourly rate of pay for all positions or be granted as compensatory time off at the rate of time and one-half.

C. Compensatory Time Off
Accumulation of compensatory time off shall be limited to 160 hours and shall only be available in accordance with federal regulations implementing the Fair Labor Standards Act. When an employee reaches the maximum accumulation of 160 hours, the employee shall receive overtime pay for time worked in excess of the regularly assigned shift.

Compensatory time accrual may be cashed-out for up to 80 hours per fiscal year. Cash out will be in November and April of the fiscal year.

D. Compensatory Time Off for School Resource Officers
School Resource Officers work a 9 hour day, 45 hours per week schedule and therefore, accumulate 5 hours of compensatory time per week. If a School Resource Officer works the standard 9 hour day, 45 hours per week schedule, the accumulation of compensatory time off shall be limited to 320 hours. At the termination of an assignment as a School Resource Officer, a plan shall be developed with the Officer to reduce the compensatory time leave balance to 160 hours within six months from the end of the assignment. If a School Resource Officer elects to work an alternative schedule (e.g., a 4/10 or a 9/80 work schedule), then the accumulation of compensatory time off shall be limited to 160 hours.

E. Call-Back Minimum

1. Regular full-time and regular part-time employees shall be eligible for a four (4) hour call-back minimum when the call back is for an unscheduled event that occurs more than two (2) hours after the end of the shift and within nine (9) hours of their assigned end of shift except as provided in Section XV.A above. Said employees shall receive, upon reporting a minimum of four (4) hours of work at the overtime rate, or if four (4) hours of work are not actually worked, a minimum of four (4) hours pay at the overtime rate.

2. Regular full-time and regular part-time employees who are called back 25 to work for a planned event which is scheduled at least 24 hours in advance shall receive, upon reporting, a minimum of two (2) hours of work at the overtime rate, or if two (2) hours of work are not actually worked, a minimum of two (2) hours pay at the overtime rate.

3. The above call-back provision does not relate to official court appearances. Such court appearances shall be compensated as provided in this M.O.U.

4. A “call-back” occurs when an employee is required to return to his or her normal work location, or to travel to another work location at the direction of the city. A “call-back” does not occur when an employee handles a phone call at home or is otherwise not required to physically leave his or her residence. In such situations, the employee shall be compensated for any time actually worked at the overtime rate, but will not be entitled to the call-back minimum.

5. All of the following conditions must be present before a Detective may be called from off duty:
a. The crime must be one ordinarily assigned to the Detective Division for investigation.
b. There must be some urgency which requires immediate detective participation.
c. There must be specific tasks to be performed or specific leads to be followed up which by their nature require the detective's expertise. d. The patrol supervisor must approve the call-out.
e. The detective assigned to the type of crime in question shall be called out, if the above conditions are present. If that detective is not available, any detective who can respond shall be called out.

XVI. MINIMUM COURT TIME PAY
A. The City shall pay a minimum of four hours overtime at time and one-half pay to those sworn and non-sworn regular full-time personnel who are officially notified and appear in court on Newark Police Department business during their scheduled days off. For purposes of this section, the phrase "scheduled days off" refers to days on which the officer is not scheduled for duty. Scheduled days off does not include sick leave, 4850 leave, leave without pay, or shift trades between employees.

B. The City shall pay a minimum of four hours overtime at time and one-half 26 pay to those sworn and non-sworn regular full-time personnel who are officially notified and appear in court on Newark Police Department business if their assigned work schedule is beyond midnight and if court appearance is within nine (9) hours of their assigned end of shift but more than two (2) hours before or two (2) hours after the assigned shift.

C. The City shall pay a minimum of four hours overtime at time and one-half hourly pay rate to those sworn and non-sworn regular full-time personnel who are officially notified and appear in court on Newark Police Department business during their scheduled days on duty if they are serving duty on the B and C shifts provided they are scheduled to appear more than two (2) hours after the end of their assigned shift.

D. The City shall pay a minimum of two hours overtime at time and one-half to sworn and non-sworn regular full-time personnel scheduled to appear in court on the day normally scheduled to work provided they are scheduled to appear at least two hours prior to the assigned shift.

E. The City shall pay a minimum of two hours overtime at time and one-half pay to those sworn and non-sworn regular full-time personnel assigned to B or C shifts, or on day off who are not notified that their subpoenaed appearance in court is not required if the notification is not received by 10:00 hours on the day of the court appearance provided that the employee has called the appropriate agency to ascertain attendance requirements.

F. Minimum court time pay does not apply to employees on 4850 industrial leave, sick leave, leave without pay, or shift trades between employees.

1. An employee who is on sick leave on the date of the actual court appearance shall receive straight time pay for time spent at court.

2. An employee who appears in court while on industrial disability leave (4850 industrial leave) shall be ineligible for court pay, at either the straight-time or the time-and-one-half rate, but shall, instead, receive only his/her industrial leave (4850 leave) pay.

3. An employee who appears in court while on leave of absence without pay shall receive straight time pay for actual time spent at court, provided that prior approval for such pay has been authorized by a Police Lieutenant in advance of court appearance.

G. Only one four-hour minimum shall be paid per calendar day. 27 XVII. DETECTIVE ON-CALL ALLOWANCE
A. One detective may be assigned by the Police Chief, or designee, to oncall duty. The terms, conditions, and procedures for on-call duty shall be determined by the Police Chief. The City maintains the right to discontinue the on-call duty program at its sole discretion.

B. Effective July 1, 2007, the detectives assigned to on-call duty shall receive, in addition to monthly salary, one hundred seventy-five dollars ($175.00) for each full week (seven day period) assignment.

C. Payment of the on-call allowance shall be prorated if the week assignment is not completed.

D. The on-call allowance will not be included as compensation when computing overtime pay, retirement or workers' compensation benefits.

E. The Police Chief shall establish terms and conditions for on-call duty pay.

XVIII. USE OF CITY VEHICLES
A. Police Officers who are assigned as Detectives and who live within the Newark city limits are authorized to utilize their assigned City-owned vehicles to commute to and from work and to lunch within the City limits.

At the sole discretion of the Police Chief, the requirement that employees live within city limits may be waived. The City-owned vehicle shall not be utilized for any purpose not related to official City business.

B. Police Officers who are assigned as Canine Handlers are authorized to utilize their assigned City-owned vehicle to commute to and from work a distance not to exceed 40 air miles one way. At the sole discretion of the Police Chief, the 40 air miles requirement may be waived. The City-owned vehicle shall not be utilized for any purpose not related to official City business.

C. Police Officers who are assigned as Motor Officers and Sergeants are authorized to utilize their assigned City-owned motorcycles to commute to and from work a distance not to exceed 40 air miles one way. At the sole discretion of the Police Chief, the 40 air miles requirement may be waived. The City-owned motorcycles shall not be utilized for any purpose not related to official City business.

XIX. TUITION FEES AND BOOK COSTS REIMBURSEMENT
A. Regular full-time and regular part-time employees are eligible on a firstcome, first-served basis for the educational reimbursement of tuition fees 28 and book costs.

B. The City shall establish a fund of $15,000 which shall be the City's total obligation for financing tuition fees and book costs incurred for courses completed within each fiscal year of this Memorandum of Understanding by the employees represented by the Newark Police Association.

Reimbursement to individual employees shall not exceed $1,500 per employee per fiscal year.

C. Reimbursement shall be made for 100% tuition fees and book costs of satisfactorily completed courses taken in the pursuit of an Associate, Bachelor's or Master's Degree in the Administration of Justice, Political Science, Psychology, Public Administration, Criminology, Law, or Sociology, or any field directly related to police services. Reimbursement shall also be made for such fees and costs for a particular course in any of these fields, including any field directly related to police services, even though such course is not taken in pursuit of any of the above degree programs.

D. An employee may petition his/her Department Head for authorization to be reimbursed for courses which are not specifically enumerated above but are in a field directly related to police services and which will maintain or improve job-related skills. Denial of such petition is subject to the Grievance Procedure provided in this M.O.U. except that all parties will accept the fact finders decision as final.

E. Procedure

1. An eligible employee shall request written approval from the Police Chief to be reimbursed for courses or approved fees authorized under this provision prior to registration in the course or educational program (i.e. Saint Mary’s College bachelor’s or graduate programs).

2. Reimbursement shall be made for 100% tuition fees and required textbook costs of satisfactorily completed, City-approved courses directly related to the employee's job. In the event that an employee’s educational program is unable to identify the specific cost associated with a specific course, reimbursements will be processed based on the average course cost using the following formula:

Total educational program fees (e.g.: B.S./B.A. degree programs) divided by the total number courses required to obtain the degree will equal the average course fee.

3. Satisfactory completion shall be construed to mean the attainment of a course grade of "C" or better or documentation of satisfactory 29 completion acceptable to the City. No reimbursement shall be made to employees who either unsatisfactorily complete or withdraw from an approved course.

4. Reimbursement shall be processed upon evidence of the successful completion of a course(s) and in accordance with the Human Resources Department’s Educational Reimbursement procedures.

5. The City shall not provide reimbursement for any personal vehicle mileage or any expense other than tuition, fees and required textbook costs.

F. Required textbooks for which the employee was reimbursed shall become the property of the employee.

G. It is the intent of this policy that all employees, though eligible for reimbursement of expenses, shall carry out their educational programs on their own personal time. Departmental shifts may be arranged to allow an employee to enroll in a college program with reasonable assurance that course attendance shall not be disrupted at mid-semester or mid-quarter.

This policy does not guarantee that such disruption shall not occur; however, the Police Chief shall insure that a reasonable effort will be made to avoid such disruptions when it may be achieved without inconvenience to departmental operations.

In the event that some activity of the educational program is to take place during the employee's duty hours, it shall be the responsibility of the employee to make the necessary arrangements for personal time off.

In this regard, the employee may make whatever arrangements are possible; however, the needs of the Department shall be of primary consideration in these situations.

This policy is not intended to serve as a directive to employees to conduct personal education programs beyond the programs required and/or provided by the City. The course work referred to here is that which is undertaken voluntarily by the employee and not subject to remuneration under provisions of the Fair Labor Standards Act.

XX. RETIREMENT BENEFITS
A. All Association members who were appointed prior to January 1, 2013 and all “Classic Members” (as defined by CalPERS) are referred herein either as “Classic Members” or as “Classic”.

B. The City shall continue to provide to all sworn Classic Members of the 30 Association a retirement formula known as “3% at 50" together with the 1959 survivor benefit option and a credit for unused sick leave option.

Sworn Classic Members continue to pay the 9% employee rate for the 3% at 50 retirement formula plus continue to pay up to 4% of an additional contribution in accordance with the following formula for a current total of 13%.

The Association’s Classic sworn members will contribute a matching percentage of salary in the form of an increase in employee contribution rate during the term of this agreement if the CalPERS Safety Plan employer actuarial rate for the 3% at 50 retirement formula exceeds

17.00% to a maximum of 25.00%. In the event that the employer rate exceeds 25.00%, the City shall be responsible for any increase above

25.00%. In subsequent years of the contract, if the rate over 17.00% decreases, the Classic Association members’ matching percentage of salary in the form of the employee contribution rate will be reduced by the above formula. Employer rate reductions below 17.00% will not be shared with Association members under the above formula.

The following example is for illustrative purposes only:

If the CalPERS Safety Plan employer actuarial rate for the 3% at 50 retirement formula increased from 17.00% to 20.00% effective July 1, 2006, the Classic sworn Association members’ rate would increase from

9.00% to 10.50%. The City would then be responsible for the matching

1.50%. If the rate decreased from 20.00% to 18.00%, the Classic sworn Association members’ rate would decrease by 1.00%.

C. The City shall continue to provide to all non-sworn Classic members of the Association a retirement formula known as “2.5% at 55" together with the 1959 Survivor Benefit option and a credit for unused sick leave option.

Non-Sworn Classic Members continue to pay the 8% employee rate for the 2.5% at 55 retirement formula plus continue to pay up to 2.971% of an additional contribution in accordance with the MOU formula and the 2009 cap for a current total of 10.971%
In addition, the Association’s non-sworn Classic members will contribute a matching percentage of salary in the form of an increase in employee contribution rate during the term of this agreement if the CalPERS Miscellaneous Plan employer actuarial rate for the 2.5% at 55 retirement formula exceeds 10.00% to a maximum of 16.936%. In the event that the employer rate exceeds 16.936%, the City shall be responsible for any increase above 16.936%. In subsequent years of the term of the agreement, if the rate over 10.00% decreases, non-sworn Classic Association members’ matching percentage of salary will be reduced by the above formula. Employer rate reductions below 10.00% will not be 31 shared under the above formula.

The following is for illustrative purposes only:

If the CalPERS Miscellaneous Plan employer actuarial rate increases to

10.00%, each Association member would contribute zero (-0-) from his/her salary to pay for the retirement benefit. If the rate increases from 10.00% to 13.00%, each Association member would contribute half of the 3.00% increase (1.50%) from his/her salary to pay for the retirement benefit. The City would then be responsible for the matching 1.50%. If the rate decreased from 13.00% to 11.00%, the Association member would contribute 0.50% of the increase above 10.00% from his/her salary to pay for the retirement benefit. The City would then be responsible for the matching 0.50%.

D. The City shall provide to sworn members of the Association who were appointed on or after January 1, 2013 who are PEPRA Members (as defined by CalPERS) a retirement formula known as 2.7% at 57 in accordance with the Public Employees’ Pension Reform Act of 2013.

Sworn association members who were appointed on or after January 1, 2013 who are PEPRA Members (as defined by CalPERS) will contribute half the normal cost of the 2.7% at 57 plan as required by the Public Employees’ Pension Reform Act of 2013.

In addition to paying the employee rate (currently 12%), sworn PEPRA Members will pay an additional contribution of 4.0% for a total of 16%. If CalPERS approves a contract amendment for the City of Newark that charges Sworn New PEPRA Members an additional 1.5% contribution rather than an additional 4% contribution for a current total of 13.5% rather than a current total of 16% (and CalPERS approves the provisions described herein for NPA Sworn Classic Members, NPA Non-Sworn Classic and NPA Non-Sworn New PEPRA Members), the City agrees to amend its contract for Sworn New PEPRA Members accordingly.

The following is for illustrative purposes only:

If the employee rate for sworn PEPRA Members is 12%, in this example sworn PEPRA Members would pay the 12% employee rate plus an additional 4% for a total of 16%.

E. The City shall provide to all non-sworn members of the Association who were appointed on or after January 1, 2013 who are non-sworn PEPRA Members (as defined by CalPERS) a retirement formula known as 2% at 62 in accordance with the Public Employees’ Pension Reform Act of 2013. 32 Non-sworn members of the Association who were appointed on or after January 1, 2013 who are PEPRA Members (as defined by CalPERS) will contribute half the normal cost of the 2% at 62 plan as required by the Public Employees’ Pension Reform Act of 2013.

In addition to paying the employee rate (currently 6.25%), non-sworn PEPRA Members will pay the same percentage of an additional contribution as non-sworn Classic Members of the Association pay.

F. Effective July 16, 2006, all Association members’ cost sharing contributions will be tax deferred.

G. As negotiated in in 2008, effective July 1, 2009 all Association non-sworn Miscellaneous Group employee members will not pay any increase in the CalPERS employee cost share after June 30, 2009. The Miscellaneous Group’s CalPERS cost share will be capped at the current 2.971% rate.

H. The parties acknowledge that the City must comply with the provisions of the Public Employees’ Pension Reform Act of 2013. To the extent additional changes to the terms and conditions of employment are required by the Public Employees’ Pension Reform Act of 2013 or any other law, the City agrees to meet and confer over the effects of any changes that it is required to make during the term of this agreement.

I. The City shall provide the one-year highest compensation option to Classic sworn and non-sworn members of the Association. The City shall provide the three-year average compensation requirement to PEPRA members as defined above.

J. The City shall continue to provide a retiree provision in all group health plans in which City personnel may participate.

K. Effective October 15, 2000, the City amended its contract with CalPERS to provide sworn members of the Association the ability to purchase up to four years of service credit for any continuous active military service prior to employment.

L. Effective, January 26, 2001, the City amended its contract with CalPERS to provide sworn members of the Association the indexed level 1959 survivor benefit option. The Association members agree that any costs now or in the future for the Indexed level 1959 survivor benefit will be paid by the members.

M. Effective November 16, 2004, the City amended its contract with CalPERS to provide for the Pre-Retirement Optional Settlement 2 Death Benefit for sworn members. The Association members agree that any costs now or in the future for the Pre-Retirement Optional Settlement 2 Death Benefit will 33 be paid by the members.

XXI. EXTENSION OF MILITARY BENEFITS
A. This program covers non-probationary, regular, part-time and full-time employees. In addition to the 30 days of fully paid annual military leave provided under the California Military and Veterans Code §395.01 and 395.02, the City will pay additional wages to supplement the employee’s income in an amount equal the employee’s regular City monthly compensation less military pay for up to an additional 150 days. Thus, if an employee is ordered to military leave, that employee will receive full compensation for the first 30 consecutive calendar days (as required by the Military and Veterans Code §395.01 and 395.02), and supplemental compensation for up to 150 consecutive calendar days.

B. Employees will be required to provide copies of their military pay stubs for reconciliation purposes. Payments will be reconciled quarterly by the Finance Department. If the Finance Department has not received military pay information within three weeks after the end of the quarter, future checks may be held until the information is provided.

C. Payroll deductions related to employee-paid health insurance, dental insurance, retirement, vision insurance, short term disability insurance, long term disability insurance, and/or life insurance will continue during the employee’s absence.

D. Employees who are on paid military leave will continue to accrue seniority, retirement benefits, sick leave, vacation, and shall receive holidays and salary adjustments. When the supplemental compensation ends, employees will continue to accrue seniority and retirement benefits. In order to continue retirement credit for military leave, the employee must request a military credit at any time after returning from military leave, but prior to separation or retirement.

E. For purposes of this policy, employees become eligible for the program after 30 days of military leave have been used, including any military leave that may have been used during this calendar year prior to military activism.

F. Affected employees must request in writing to the City Manager’s Office via their department head, to participate in this program as soon as they are aware that their military leave will extend beyond 30 days. Employees must provide military orders or other official military documentation validating military leave requirements to their supervisor as soon as possible. The supervisor will then forward a copy to Human Resources and Finance.
34 G. An employee voluntarily enlisting for active duty service is not eligible for this program.

H. The City expects employees who benefit from this program to return to employment with the City after serving their military duty.

XXII. LONGEVITY PAY
A. Effective July 1, 2019 the regular full-time employees in the classifications of Police Officer and Police Sergeant are eligible for longevity pay as follows:

Upon commencement of 10 years of service 2.5% salary increase Upon commencement of 15 years of service 5.0% salary increase Upon commencement of 20 years of service 7.5% salary increase Longevity pay is computed on base compensation only. The maximum longevity pay premium is 7.5% of salary for employees in the classifications of Police Officer and Police Sergeant.

B. For service to meet the requirements of longevity pay, it must meet all of the following criteria:
 Full-time sworn classifications represented by the City of Newark Police Association, including probationary time;
 Continuous service or service that qualifies under reinstatement procedures; and
 Active service (in a paid status) or approved leave without pay that qualifies for FMLA, CFRA, PDL, workers’ compensation, or other protected leaves per state or federal law.

XXIII. SPECIAL ASSIGNMENT PAY
A. Field Training
Police Officers assigned as Field Training Officers to train Police Officers or Police Reserves shall receive a five percent (5%) of top Police Officer pay step base salary differential, which shall not affect the amount of holiday in lieu or educational incentive pay received while performing Field Training Officer duties.

B. Public Safety Dispatcher / Lead Public Safety Dispatcher Training Public Safety Dispatchers / Lead Public Safety Dispatchers formally assigned by the Police Chief to train Public Safety Dispatchers / Lead Public Safety Dispatchers as part of a formalized departmental training 35 program shall receive a five percent (5%) salary increase during such assignment, which shall not affect the amount of holiday in lieu pay received while performing Public Safety Dispatcher / Lead Public Safety Dispatcher training duties.

C. Acting Sergeant Pay
A Police Officer assigned in writing by the Police Chief to perform the duties of a Police Sergeant on an "acting" basis shall receive a five percent (5%) salary increase for hours worked from the first day of the acting assignment. In the event an employee in an acting assignment is absent from work because of illness or injury, the City may terminate the acting assignment.

D. Effective July 1, 2019, Police Officers and Sergeants assigned to one of the following positions shall receive special assignment pay of $425 per month:
• School Liaison Officer
• School Resource Officer
• Training Officer
• Detective
• Canine Handler
• Motor
• Special Enforcement Team
• Any other position approved by the Police Chief
E. Police Officers who are assigned as Canine Handlers will also receive a maintenance allowance of $100.00 per month which will be treated as salary. The maintenance allowance is intended to cover expenses that are incurred as a direct result of housing the animal at the Officer’s residence.

These expenses include, but are not limited to, yard/interior home spraying, carpet cleaning, and general maintenance of the property to ensure the dog’s safety and well-being.

F. Employees represented by the Association will receive bilingual assignment pay of $100.00 per month. Eligibility for bilingual assignment pay shall be made subject to the following conditions and in accordance with Administrative Regulation 0522 which establishes a policy and procedures for receiving bilingual assignment pay:

1. Employees will be required to pass an initial fluency test administered by the City or an independent testing service. Employees will be required to undergo periodic testing of skill level to remain eligible for bilingual pay.
36 2. Eligible languages will be determined by the City.

3. Employees must be in a classification that brings them into regular contact with the general public.

4. The City retains the right to make the final determination regarding eligibility for bilingual assignment pay.

XXIV. SAFETY TRAINING AND EQUIPMENT
A. Animal Control Officer
The City shall provide safety training and equipment necessary to minimize the potential for work related injuries.

B. Firearm
An employee represented by the Association authorized by the Police Chief to carry a firearm in the course of employment, shall be provided a department-issue firearm. Department-issue firearms shall be the property of the City and must be returned to the City upon separation of employment, request of the Police Chief, or when an employee purchases and uses an alternative firearm approved by the department. The selection of the department-issue firearm shall be the sole discretion of the City.

Implementation of this provision shall be subject to an analysis and recommendation of an appropriate department-issue firearm acceptable to the City Manager.

C. The City will continue to provide uniformed members of the Association the following safety and protective items: Holster, Gunbelt, Magazine Holder, Flashlight, Handcuffs, Handcuff Case, Baton, Baton Ring, Chemical Agent, Chemical Agent Holder, Vest (Minimum Threat Level 3), and Belt Keepers.

Equipment will be “web gear” style.

XXV. PER DIEM EXPENSE
The City shall provide suitable lodging or reimburse lodging expense incurred pursuant to current reimbursement rates for employees assigned to mutual aid, riot, or civil demonstration where employees are required to remain overnight.

The City shall provide meals or reimburse for meals pursuant to current reimbursement rates for employees assigned to mutual aid. 37 XXVI. GRIEVANCE PROCEDURE
Any dispute between the City and an employee regarding the interpretation or application of this Memorandum of Understanding shall be considered a grievance. A grievance may be filed by an employee on his/her own behalf or by the President of the Association and/or his/her designated representative effecting the rights of an employee pursuant to this agreement who is represented by the Association. For purposes of this section, all notices required herein shall be effected when personally served supported by a declaration under penalty of perjury of the fact of personal service stating the time, place and person served. Notice may also be served by addressing said notice to the City supervisor involved at the City Administration Building or the employee at his home address as shown in the Human Resources Office, postage prepaid, mailed by certified mail return receipt requested. Notice sent by certified mail shall be considered served upon deposit in the U.S. Mail postage prepaid.

A written grievance shall contain a complete statement of the grievance, the alleged facts upon which the grievance is based, the reasons for the grievance, the remedy requested, and the sections of this agreement alleged to have been violated. The grievance shall be signed and dated by the employee and/or the President of the Association on behalf of an employee represented by the Association.

Hearings on grievances and actual filing of grievances may be processed during normally scheduled working hours. All other activities related to the employee's or Association's preparation and processing of the appeal grievance shall be done outside of scheduled working hours. No employee or Association representative shall be entitled to any additional compensation or premium pay for any time spent in preparing or processing grievances. No grievances shall be processed during periods of overtime.

The employee or the Association shall pay for the time and expenses of his/her (its) representatives and witnesses through all stages of the grievance procedure. Witnesses who are City employees and who are on duty at the time of a scheduled appearance shall be released from duty without loss of compensation for the time required to testify. One spokesperson from the Association shall be permitted to be present without loss of compensation during hearings on grievances.

Time limits set forth herein for processing of the grievance procedure are of the essence of this procedure and are to be strictly complied with. Time limits may be extended only by written mutual agreement of the employee and/or Association and the supervisor conducting a hearing.

Any grievance not filed or appealed by the employee within the time limits specified shall be considered settled on the basis of the last disposition given. In 38 the event the grievance is not answered by the City within the time limits set forth herein, the employee may and/or the Association on behalf of the employee may take the grievance to the next higher step in the grievance procedure within the time limits provided.

No resolution of any grievance shall be contrary to the provisions of this Memorandum of Understanding.

An Association employee shall not be penalized if he/she erroneously files a grievance rather than an appeal or vice versa under City of Newark Ordinance No. 77.10, Section 8, RIGHT OF APPEAL. At such time as the employee is notified in writing that the wrong procedure has been utilized, the employee shall refile the action as a grievance or appeal within 5 calendar days of the date of notification of erroneous filing.

Grievances shall be processed in the following manner:

A. Within ten (10) calendar days of the occurrence of the matter on which a grievance is based, the employee and/or Association representative shall discuss the grievance in a meeting with the immediate supervisor of the employee involved.

B. If after such discussion the employee and/or the Association does not believe the problem has been satisfactorily resolved, he/she/it shall have the right, within ten (10) calendar days of the occurrence of the matter to file a formal written grievance of the personnel action with the employee's immediate supervisor.

C. Within ten (10) calendar days of receipt of the notice of formal written grievance, the immediate supervisor shall provide his/her decision in writing to the employee and/or Association representative.

D. Within ten (10) calendar days of the receipt of the decision from the employee's immediate supervisor, the employee and/or the Association may appeal the grievance by presenting a formal written appeal on the grievance to the appropriate Department Head.

E. Within ten (10) calendar days of receipt of the formal appeal on the grievance, the Department Head shall provide a written decision to the employee and/or Association.

F. Within ten (10) calendar days of receipt of the Department Head's decision, the employee and/or the Association may present a formal appeal of the grievance to the City Manager. The City Manager or his/her designated representative within ten (10) calendar days of receipt of the appeal shall make a thorough review of the grievance, meet with the 39 Police Chief and the parties involved to attempt to resolve the grievance and, if necessary, thereafter provide a written decision to the employee and/or employee association within ten (10) calendar days of the meeting date.

G. Within ten (10) calendar days of receipt of the decision of the City Manager, the employee and/or employee association may demand in writing to the City Manager that a formal appeal of the grievance be submitted to an independent fact-finder from a list of three qualified factfinders submitted to the City by the American Arbitration Association.

1. The City Manager and the employee and/or Association representative shall alternately strike names from the list so furnished and the last name remaining shall be designated as the fact-finder.

2. The City and the employee and/or Association shall share equally the fees and expenses of the fact-finder as well as the cost of making a record of the fact-finder. Each party shall bear his/her attorney's fees.

3. The rules of conduct of proceedings shall be according to those procedures for expedited fact-finding utilized by the American Arbitration Association.

4. The City and the employee both hold the right to be represented by an attorney or a representative of the employee's union or association.

5. If either of the parties does not accept the decision of the fact-finder, the party may appeal to a court of competent jurisdiction to hear the matter based on the transcript of evidence submitted to the fact-finder and conclusions of the fact-finder.

XXVII. WORK SCHEDULES
A. Police Officer and Police Sergeant

1. Sworn personnel shall utilize a work schedule known as a “160-Hour (3/12½) Work Schedule”. Assignment to the 160-Hour (3-12½) Work Schedule shall include sworn regular full-time employees assigned to patrol. Eligibility for assignment to a Four-Ten Work Schedule shall include those special assignment positions listed in Section XXIII.E.

B. Animal Control Officer and Community Service Officer

1. Animal Control Officers and Community Service Officers will normally be assigned to a Four-Ten Work schedule. The Police Chief may authorize a different work schedule if such change is needed to 40 achieve management objectives.

2. During any permitted meal periods, Animal Control Officers and Community Service Officers assigned to Patrol Division will be on an on-duty status and shall be available to respond to requests for police services.

C. Public Safety Dispatcher and Lead Public Safety Dispatcher, and Public Safety Dispatch Supervisor

1. Regular full-time Public Safety Dispatchers, Lead Public Safety Dispatchers, and Public Safety Dispatch Supervisors shall utilize a work schedule known as “3/12½ Hour Work Schedule” with a paid lunch period. Typically, a Public Safety Dispatcher / Lead Public Safety Dispatcher assigned to this schedule will work three days of

12.5 hours per week (37.5 hours) and one additional 10 hour day (47.5 hours) during the 28 day cycle.

2. Regular part-time Public Safety Dispatchers and Lead Public Safety Dispatchers shall work a flexible schedule that does not normally exceed their designation of 20-25 hours per week or 30- 35 hours per week.

3. The Parties have agreed that it is in their best interests to investigate the options of a 7B Fair Labor Standards Act (FLSA) exemption from overtime requirements for Dispatch Employees.

D. Public Safety Clerk and Police Record Supervisor

1. A standard work schedule for the Public Safety Clerk and Police Record Supervisor shall be 40 hours per week. The normal workweek will be 40 hours with consecutive 8-hour days beginning or ending on any day of the week. The standard workweek begins at 12:01 a.m. Monday morning and ends at 12:00 midnight on Sunday.

2. The Public Safety Clerk and Police Record Supervisor have the option to request working an alternate work schedule (Four-Ten). The authorization to work an alternate work schedule shall be the sole discretion of the department head. Operational needs of the department shall be the primary consideration in decisions to approve or deny requests.

E. Training

1. Employees authorized to attend schools for the purpose of training shall be assigned to a 40-hour, work week schedule. Work schedule 41 adjustments may be authorized by the Police Chief to maintain the 160-hour work schedule requirement in a 28-day cycle or the 40 hours 42 per week for the four-ten work schedule. No overtime shall be paid for attendance at school unless specifically authorized by the Police Chief.

2. Canine Officers assigned to a 4/10 work schedule shall schedule canine training during their regular work day as follows:
• Witmer-Tyson training 2nd and 4th Tuesdays every month. “In- house” training 1st and 3rd Tuesdays.
• Any changes to the Tuesday training sessions will require a change in the Canine Officers’ schedule so that no
overtime is incurred for training.

F. Notification of Shift Change

1. Twenty-one (21) calendar days notice shall be provided when employees are rotated, reassigned, or transferred from a regularly scheduled shift to another shift. Said twenty-one day notice shall not be required when an emergency necessitates a change in rotation, assignment or transfer. Emergency shall include but not be limited to the necessity of replacing employees absent from work because of unanticipated and unavoidable illness, injury or other good cause.

Members may challenge the decision of the Police Chief through the grievance procedure provided in this M.O.U. except that all parties will accept the fact finder's decision as final, and except in case of an emergency, scheduling changes will not be implemented until the grievance is resolved.

2. For the classifications of Police Officer, Police Sergeant,and Public Safety Dispatcher/, Lead Public Safety Dispatcher, and Public Safety Dispatch Supervisor, the Police Chief will provide a minimum twentyone day notice of the schedule for the 10- hour day (“pay-back” day).

Whenever possible the Police Chief will provide a thirty-day notice of the schedule for the 10-hour day (“payback” day).

G. Shift Bidding

1. For the classifications of Police Officer, Community Service Officer, and Public Safety Dispatcher / Lead Public Safety Dispatcher, the present practice of seniority based shift bidding shall be continued to permit assignment of personnel by the Police Chief where, in his judgment, such assignment is needed to achieve management objectives. Members may challenge the decision of the Police Chief through the grievance procedure provided in this M.O.U. except that all parties will accept the fact finder's decision as final, and except in case 43 of an emergency, scheduling changes will not be implemented until the grievance is resolved.

2. Probationary or new Sergeants will be assigned to shifts by the Police Chief, or designee, for up to 18 months.

3. Any Police Officer, Community Service Officer, Public Safety Dispatcher, Lead Public Safety Dispatcher, Public Safety Dispatch Supervisor, or Police Sergeant with deficiencies or problems associated with training may also be assigned to a shift by the Police Chief, or designee, until these issues are resolved or corrected. Shift bidding will be done by seniority after any special placement on shifts has been decided.

4. Shift changes will be scheduled by the Police Chief up to three times per year, but no less than twice per year.

5. Public Safety Dispatch Supervisor shifts shall be based on organizational needs per the Chief or designee.

H. Holiday Work Schedule
City offices will be closed for business during the December holiday season. Non-essential employees, as determined by the Police Chief, will participate in a four-day furlough.

I. Authority

1. The starting times for the alternative work schedule shall be established by the Police Chief and may be changed by the Police Chief at his discretion following a thirty day notice to the Association of the new starting times.

2. The City reserves the right and shall have the authority to discontinue, alter, or amend the alternative work schedule for any reason at any time at its sole discretion.t

3. The Police Chief shall have sole discretion to assign employees on light duty assignments to a work schedule of the Police Chief’s choosing including the standard five day, eight hour work schedule.

XXVIII. NEWARK POLICE ASSOCIATION RELEASE TIME
Upon request by the Newark Police Association (NPA), release time may be granted at the discretion of the Police Chief.
44 XXIX. AUTHORIZED REPRESENTATIVES FOR THE PURPOSE OF

ADMINISTERING THE TERMS AND CONDITIONS OF THIS MEMORANDUM

OF UNDERSTANDING
A. Management's principal authorized agent shall be the City Manager or his/her duly designated representative except where a particular management representative is otherwise designated.

B. The Association's principal authorized agent shall be the President of the N.P.A. and/or his/her duly designated representative.

XXX. CARRYOVER TERMS
The provisions of the MOU between the City of Newark and the Newark Police Association will remain in effect until the adoption of a successor agreement or until exhaustion of the impasse process whichever occurs later.

XXXI. MANAGEMENT RIGHTS
The exercise by the City through its City Council and management representatives of its rights hereunder shall not in any way be directly or indirectly subject to the grievance procedure herein, except for specific provisions addressed in other clauses of this Memorandum of Understanding.

The Association recognizes that the City has and will continue to retain, whether exercised or not, the unilateral and exclusive right to operate, administer and manage its municipal services and work force performing those services in all respects, provided that this clause shall not supersede any other provisions of this Memorandum of Understanding.

The City Manager and Department Heads have and will continue to retain exclusive decision-making authority on matters not expressed in provisions of this Memorandum; and such decision-making shall not be in any way, directly or indirectly, subject to the grievance procedure contained herein.

The exclusive rights of the City shall include, but not be limited to, the right to determine the organization of City government and the purpose and mission of its constituent agencies, to set standards of service to be offered to the public, and through its management officials to exercise control and discretion over its organization and operations, to establish and effect administrative regulations and employment rules and regulations consistent with law and the specific provisions of this Memorandum of Understanding, to direct its employees to take disciplinary action for just cause, to relieve its employees from duty because of lack of work or for other legitimate reasons, to determine whether goods or services shall be made, purchased or contracted for, to determine the method, means and personnel by which the City services are to be provided, 45 including the right to schedule and assign work and overtime and to otherwise act in the interest of efficient service to the community.

XXXII. IMPLEMENTATION OF SECTION 414(h)(2) OF THE UNITED STATES

INTERNAL REVENUE CODE
A. Pick-up of Employee Contributions

1. Pursuant to the provisions of this Agreement, the employer shall make employee contributions on behalf of employees, and such contributions shall be treated as employer contributions in determining tax treatment under the Internal Revenue Code of the United States. Such contributions are being made by the employer in lieu of employee contributions.

2. Employee contributions made under Paragraph 1 of this Article shall be paid from the same source of funds as used in paying the wages to affected employees.

3. Employee contributions made by the employer under Paragraph 1 of this Article shall be treated for all purposes other than taxation in the same manner and to the same extent as employee contributions made prior to the effective date of this Agreement.

4. The employee does not have the option to receive the employer contributed amounts paid pursuant to this Agreement directly instead of having them paid to the retirement system.

B. Wage Adjustment
Notwithstanding any provision in the current agreement on the contrary, the wages of employees shall be reduced by the amount of employee contributions made by the employer pursuant to the provisions hereof.

C. Limitations to Operability
This Article shall be operative only as long as the City of Newark pick-up of employee retirement contributions continues to be excludable from gross income of the employee under the provisions of the Internal Revenue Code.

XXXIII. FULL UNDERSTANDING MODIFICATION AND WAIVER
The parties to this Memorandum of Understanding acknowledge and agree that this Memorandum constitutes the result of meetings and conferring in good faith in accordance with Section 3500 et seq of the Government Code of the 46 State of California and further acknowledge and agree that all matters upon which the parties reached agreement are set forth in this Memorandum. This Memorandum supersedes and replaces all prior Memoranda of Understanding executed heretofore. The Memorandum of Understanding contains the full and entire understanding of the parties regarding the matters set forth herein.

Existing practices and/or benefits which are not referenced in the Memorandum of Understanding and which are subject to the meet and confer process shall continue without change unless modified subject to the meet and confer process. The City shall not make any changes unless warranted by operational necessity.

XXXIV. TRANSFER
Transfers to or from the Department shall not be made in positions represented by the Association.

XXXV. PROMOTION
Effective June 1, 1995, and thereafter, promotional examinations for Police Sergeant shall be closed to participation from outside the department. The City shall have the sole discretion to hold a closed promotional or open recruitment to fill positions above the level of Police Sergeant.

XXXVI. NON-DISCRIMINATION
The parties agree, that they, and each of them, shall not discriminate against to the extent prohibited by law because of political or religious opinions or affiliations, or because of racial or national origin, or because of age or sex or disability, or because of membership in the Association or any other activities on behalf of the Association.

XXXVII. PROVISION REGARDING AMERICANS WITH DISABILITIES ACT A. Because the ADA requires accommodations for individuals protected under the Act, and because these accommodations must be determined on an individual, case-by-case basis, the parties agree that the provisions of this Agreement or process that may be disregarded in order for the City to avoid discrimination relative to hiring, promotion, granting permanency, transfer, layoff, reassignment, termination, rehire, rates of pay, job and duty classification, seniority, leaves, fringe benefits, training opportunities, hours of work or other terms and privileges of employment.

B. The Association recognizes that the City has the legal obligation to meet with the individual employee to be accommodated before any adjustment is made in working conditions. The Association will be notified of these proposed accommodations prior to implementation by the City.

C. Any accommodation provided to an individual protected by the ADA shall not establish a past practice, nor shall it be cited or used as evidence of a past practice in the grievance/arbitration procedure.

D. Prior to disregarding any provision of this Agreement in order to undertake required accommodations for an individual protected by the Act, the City will provide the Association with written notice of its intent to disregard the provision.

XXXVIII. SEPARABILIT_V_
Notwithstanding any other provisions in this Agreement to the contrary, in the event that any Article or subsections thereof, of this Agreement shall be declared invalid by any Court of competent jurisdiction, or by any applicable state or federal law or regulation, or should a decision by any Court of competent jurisdiction, or any applicable state or federal law or regulation diminish the benefits provided by this Agreement, or impose additional obligations on the City, the parties shall meet-and-confer on the Article or subsections thereof affected. In such event, all other provisions of this Agreement not affected shall continue in full force and effect.

An --_-e_n_t
Newar.k Eolice Association
44 Joshu'a Horst, President
Newlrk Police Association
45 ATTACHMENT A

NEWARK POLICE ASSOCIATION

REGULAR FULL-TIME/PART TIME CLASSIFICATONS
Animal Control Officer
Community Service Officer
Police Officer
Police Records Supervisor
Police Sergeant
Public Safety Clerk
Public Safety Dispatcher
Lead Public Safety Dispatcher
Public Safety Dispatch Supervisor
Red Light Photo Enforcement Technician
Vehicle Abatement Officer
46 Attachment A.2
Effective July 1, 2019 *Monthly salaries are based on a 40-hour workweek for non-sworn NPA employees.

Salaries listed for sworn NPA employees are monthly salaries for workweeks as defined in MOU.

Classification STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
ANIMAL CONTROL OFFICER $6,384.95 $6,702.22 $7,038.15 $7,391.65 $7,752.83 $36.84 $38.67 $40.60 $42.64 $44.73
COMMUNITY SERVICE OFFICER $6,457.40 $6,774.67 $7,115.00 $7,477.28 $7,840.66 $37.25 $39.08 $41.05 $43.14 $45.23
LEAD PUBLIC SAFETY DISPATCHER $7,826.47 $8,221.29 $8,631.53 $9,066.67 $9,517.21 $45.15 $47.43 $49.80 $52.31 $54.91
POLICE OFFICER $8,819.91 $9,259.04 $9,722.33 $10,203.18 $10,720.25 $50.88 $53.42 $56.09 $58.86 $61.85
POLICE RECORD SUPERVISOR $6,990.94 $7,341.15 $7,708.93 $8,092.06 $8,494.96 $40.33 $42.35 $44.47 $46.68 $49.01
POLICE SERGEANT $10,494.10 $11,014.47 $11,566.68 $12,137.54 $12,753.42 $60.54 $63.54 $66.73 $70.02 $73.58
PUBLIC SAFETY CLERK $6,076.46 $6,377.26 $6,700.02 $7,040.34 $7,389.45 $35.06 $36.79 $38.65 $40.62 $42.63
PUBLIC SAFETY DISPATCHER $7,246.73 $7,612.31 $7,992.16 $8,395.07 $8,812.23 $41.81 $43.92 $46.11 $48.43 $50.84
RED LIGHT PHOTO ENFORCEMENT $6,196.12 $6,507.90 $6,831.76 $7,173.18 $7,533.27 TECHNICIAN $35.75 $37.55 $39.41 $41.38 $43.46
47 Attachment A.2
Effective July 1, 2020 *Monthly salaries are based on a 40-hour workweek for non-sworn NPA employees.

Salaries listed for sworn NPA employees are monthly salaries for workweeks as defined in MOU.

Classification STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
ANIMAL CONTROL OFFICER $6,480.72 $6,802.75 $7,143.72 $7,502.52 $7,869.13 $37.39 $39.25 $41.21 $43.28 $45.40
COMMUNITY SERVICE OFFICER $6,554.26 $6,876.29 $7,221.72 $7,589.44 $7,958.27 $37.81 $39.67 $41.66 $43.79 $45.91
LEAD PUBLIC SAFETY DISPATCHER $7,943.87 $8,344.61 $8,761.00 $9,202.67 $9,659.97 $45.83 $48.14 $50.54 $53.09 $55.73
POLICE OFFICER $8,952.21 $9,397.93 $9,868.16 $10,356.22 $10,881.05 $51.65 $54.22 $56.93 $59.75 $62.77
POLICE RECORD SUPERVISOR $7,095.81 $7,451.27 $7,824.56 $8,213.44 $8,622.39 $40.94 $42.99 $45.14 $47.38 $49.74
POLICE SERGEANT $10,651.51 $11,179.68 $11,740.18 $12,319.61 $12,944.73 $61.45 $64.50 $67.73 $71.07 $74.68
PUBLIC SAFETY CLERK $6,167.61 $6,472.91 $6,800.52 $7,145.95 $7,500.30 $35.58 $37.34 $39.23 $41.23 $43.27
PUBLIC SAFETY DISPATCHER $7,355.44 $7,726.49 $8,112.04 $8,520.99 $8,944.41 $42.43 $44.58 $46.80 $49.16 $51.60
RED LIGHT PHOTO ENFORCEMENT $6,289.06 $6,605.51 $6,934.24 $7,280.78 $7,646.27 TECHNICIAN $36.28 $38.11 $40.01 $42.00 $44.11
48 Attachment A.2
Effective July 1, 2021 *Monthly salaries are based on a 40-hour workweek for non-sworn NPA employees.

Salaries listed for sworn NPA employees are monthly salaries for workweeks as defined in MOU.

Classification STEP 1 STEP 2 STEP 3 STEP 4 STEP 5
ANIMAL CONTROL OFFICER $6,577.93 $6,904.79 $7,250.88 $7,615.06 $7,987.16 $37.95 $39.84 $41.83 $43.93 $46.08
COMMUNITY SERVICE OFFICER $6,652.57 $6,979.43 $7,330.05 $7,703.28 $8,077.65 $38.38 $40.27 $42.29 $44.44 $46.60
LEAD PUBLIC SAFETY DISPATCHER $8,063.03 $8,469.78 $8,892.42 $9,340.71 $9,804.87 $46.52 $48.86 $51.30 $53.89 $56.57
POLICE OFFICER $9,086.50 $9,538.90 $10,016.19 $10,511.57 $11,044.27 $52.42 $55.03 $57.79 $60.64 $63.72
POLICE RECORD SUPERVISOR $7,202.25 $7,563.04 $7,941.93 $8,336.64 $8,751.72 $41.55 $43.63 $45.82 $48.10 $50.49
POLICE SERGEANT $10,811.28 $11,347.38 $11,916.28 $12,504.40 $13,138.90 $62.37 $65.47 $68.75 $72.14 $75.80
PUBLIC SAFETY CLERK $6,260.12 $6,570.01 $6,902.52 $7,253.14 $7,612.80 $36.12 $37.90 $39.82 $41.84 $43.92
PUBLIC SAFETY DISPATCHER $7,465.77 $7,842.39 $8,233.72 $8,648.81 $9,078.58 $43.07 $45.24 $47.50 $49.90 $52.38
RED LIGHT PHOTO ENFORCEMENT $6,383.40 $6,704.60 $7,038.25 $7,389.99 $7,760.96 TECHNICIAN $36.83 $38.68 $40.61 $42.63 $44.77
49 ATTACHMENT B

SILLIMAN ACTIVITY & FAMILY AQUATICS CENTER
Employees and their spouses or registered domestic partners and up to 2 children living in the same household, 18 years of age and under, may use the gym, exercise equipment and aquatics facilities (excluding classes and facility rentals) at the Silliman Community Activity and Family Aquatics Center free of charge.
50 ATTACHMENT C
At the request of the City, the City and the Association will form an Employee Wellness Committee to explore options to improve employee health and wellness. Upon the request of either party, the parties agree to meet and confer over an employee health and wellness policy.

CITY OF NEWARK, CALIFORNIA
To: Newark Police Association (NPA) Executive Board
From: David Benoun, City Manager
Lenka Hovorka, Assistant City Manager Date: July 21, 2022 This will serve as a side letter to the City of Newark (City) and the Newark Police Association (NPA) July 1, 2019 - June 30, 2023 Memorandum of Understanding (MOU). The purpose of this side letter is to extend the MOU and amend certain terms and conditions of employment. Thisside letter will become effective upon approval by the City Council.

The City recently negotiated successor MOUs with two other represented employee associations, and amended terms impacting the two unrepresented employee groups. These terms were adopted by the City Council on June 23, 2022. The NPA MOU does not expire until June 30, 2023. The City and NPA desire to extend the MOU upon similar terms were provided for the other represented employee associations.

As a result, the City and NPA have agreed to an extension of the current MOU and amended terms, reflecting parity and market equity adjustments consistent with those adopted for other City employee groups.

The City and NPA agree to the following amendments to the MOU with revisions in redline:
-Title Page of MOU:

Memorandum of Understanding Between City of
Newark and Newark Police Association
July 1, 2019 Through
June 30, 2025
Adopted July 11, 2019
Revised June 25, 2020
Revised July 28, 2022

- Section I of MOU:

I. TERM
This agreement shall be in effect from July 1, 2019 through June 30, 2025. - Section IV of MOU:

During fiscal year 2022-2023, the City will conduct a Classification and Compensation Study. The Study will include a review the designated labor market, and agree to meet and confer on any proposed changes. The Classification portion will include updating all job classifications to reflect current duties. The Compensation portion will include conducting a Total Compensation Survey for all Association classifications. Implementation of equity adjustments based on the Study will be subject to meet and confer with the Association. - Section V.2 of MOU:

V. SALARY INCREASE

2. General Salary Increase
The salary ranges for all classifications represented by the Association shall be increased as follows:
a. Effective July 1, 2019, salary increase shall be one and one half percent (1.5%). b. Effective July 1, 2021, salary increase shall be one and one half percent (1.5%). If by January 1, 2021, the City's revenues for Fiscal Year 21/22 are projected to be at least $1,250,000 less than actual revenues for Fiscal Year 20/21, at the request of the City, the parties agree to re-open negotiations on 1.5% increase scheduled for the July 1, 2021. c. Effective July 1, 2022, salary increase shall be four percent (4.0%). d. Effective July 1, 2023, salary increase shall be three percent (3.0%). e. Effective July 1, 2024, salary increase shall be three percent (3.0%). - Section VI.C and D of MOU:

VI. HEALTH AND WELFARE PROGRAM
C. Effective for the 2020 plan year, the City shall contribute to eligible NPA employee’s cafeteria plan, an amount equal to the following, minus the Minimum Employer Contribution.

Employee Only: $844
Employee + 1 Dependent: $1,687 Employee + 2 or more Dependents:
$2,228
Effective for the 2021 plan year, the City shall contribute to eligible NPA employee’s cafeteria plan, an amount equal to the following, minus the Minimum Employer Contribution.

Employee Only: $861
Employee + 1 Dependent: $1,721 Employee + 2 or more Dependents:
$2,273
Effective for the 2022 plan year, the City shall contribute to eligible NPA employee’s cafeteria plan, an amount equal to the following, minus the Minimum Employer Contribution.

Employee Only: $878
Employee + 1 Dependent: $1,755 Employee + 2 or more Dependents:
$2,318
Effective for the 2023 plan year, the City shall contribute to each eligible NPA employee’s cafeteria plan, an amount equal to the following, minus the Minimum Employer Contribution:

For Regular Full-Time Employees and Regular Part-Time Employees working 30-35 hours:

Employee Only: $896
Employee + 1 Dependent: $1,790
Employee + 2 or more Dependents: $2,364
For Regular Part-Time Employees working 20-25 hours:

Employee Only: $448-$560
Employee + 1 Dependent: $895-$1,119
Employee + 2 or more Dependents: $1,182-$1,478
Effective for the 2024 plan year, the City shall contribute to each eligible NPA employee’s cafeteria plan, an amount equal to the following, minus the Minimum Employer Contribution:

For Regular Full-Time Employees and Regular Part-Time Employees working 30-35 hours:

Employee Only: $913
Employee + 1 Dependent: $1,826
Employee + 2 or more Dependents: $2,412
For Regular Part-Time Employees working 20-25 hours:

Employee Only: $457-$571
Employee + 1 Dependent: $913-$1,141
Employee + 2 or more Dependents: $1,206-$1,507
Effective for the 2025 plan year, the City shall contribute to each eligible NPA employee’s cafeteria plan, an amount equal to the following, minus the Minimum Employer Contribution:

For Regular Full-Time Employees and Regular Part-Time Employees working 30-35 hours:

Employee Only: $932
Employee + 1 Dependent: $1,862
Employee + 2 or more Dependents: $2,460
For Regular Part-Time Employees working 20-25 hours:

Employee Only: $466-$582
Employee + 1 Dependent: $931-$1,164
Employee + 2 or more Dependents: $1,230-$1,537
D. Cash Back / Cash in Lieu of Benefits:

1. Cash-In-Lieu: Employees electing not to participate in the City’s cafeteria plan and waiving all medical, dental, and vision benefits, will receive $450 per month “cash-in-lieu” of benefits, which includes the PEMCHA minimum per section A above.

2. Cafeteria Plan Cash-Back: Employees who participate in the cafeteria plan but who do not utilize the full benefit allowance, may receive up to $450 per month of any money not used for the purchase of employer offered benefits. Any “cash-in-lieu” and cafeteria plan “cash back” will be paid to the employee in taxable compensation.

For Regular Part-Time Employees working 30-35 hours the “cash-in-lieu” and “cash back’ amount will be $338-$394. For Regular Part-Time Employees working 20-25 hours the “cash-in-lieu” and ‘cash back” amount will be $225-$281. - Section VIII.K of MOU:

VIII. VACATION LEAVE
K. Effective July 1, 2017, upon using one-half of the vacation time accrued during the 12-month period from July 1 through June 30, a regular full- time employee may request to receive pay for up to a total of sixty (60) hours per fiscal year of vacation, forty-five (45) to fifty-two and a half (52.5) hours for 30-35 hour employees, and thirty (30) to thirty-seven and a half (37.5) hours for 20-25 hour employees in hourly increments at the current hourly salary rate provided there is a minimum of one (1) week (40 hours) remaining in the employee’s vacation bank after the conversion. Requests for vacation buy-back may be made up to two times per fiscal year in October and/or April for payment on December 15 and/or June 15.

For calendar year 2022 only, the total amount of vacation eligible for buy-back will be increased one time to 100 hours for regular full-time employees, 85 to 92.5 for 30-35 hour employees, and 70 to 77.5 for 20-25 hour employees.

Effective November 2022 - By December 1 of each calendar year, eligible employees who want to cash out accrued vacation leave in the following calendar year shall make an irrevocable election to cash out in the next calendar year, subject to the conditions set forth below:
• For regular full-time employees: The employee may cash out up to 80 hours of vacation. • For regular 30-35 hour part-time employees: The employee may cash out up to 60-70 hours of vacation. • For regular 20-25 hour part-time employees: The employee may cash out up to 40-50 hours of vacation. • Employees must have the equivalent of one regular work week remaining in vacation accruals at the time of cash out.
• Employees must submit their Vacation Buy-Back Request Form to Payroll by December 1. This is an irrevocable election by the employee.

For example, to buy back vacation leave that is accrued in calendar year 2023, a full-time employee must elect by December 1, 2022, how many hours they want to buy back. Employees must further ensure they will have at least one work week of vacation accruals remaining at the time of the buy back which will occur in December 2023. The buy back will be paid out in the last full pay period of December 2023, which is December 29, 2023.

The City makes no representation as to the tax consequences of an employee cashing out accrued leave or the vacation buyback program. It is the employee’s sole responsibility to address the tax consequences of cashing out accrued leave or the vacation buy-back program.
- Section XI.C.1 of MOU:

XI. OTHER LEAVES
C. Bereavement Leave

1. Regular full-time employees represented by the Association may be granted up to a maximum of 40 hours of bereavement leave where there has been a death of a husband, wife, son, daughter, stepson, stepdaughter, sister, brother, mother, father, stepmother, stepfather, grandparent, grandchild, mother-in-law, father-in-law, grandparent-in- law, sister-in-law, brother-in-law, son-in-law, or daughter-in-law of an employee in order that the employee may attend last rites and attend to any pressing matters resulting from the death.

Effective July 1, 2022, up to 80 hours of bereavement leave may be granted for the death of a son, daughter, stepson, or stepdaughter.
- Section XII.A of MOU:

XII. HOLIDAYS
A. Regular full-time employees in the classifications of Police Officer, Police Sergeant,and Public Safety Dispatcher, / Lead Public Safety Dispatcher, and Public Safety Dispatch Supervisor shall receive as compensation in- lieu of holidays an amount equal to 5% of his/her current base pay step, which in-lieu payment shall be paid each pay period. The in-lieu compensation factor of 5% shall not be applied and added to any payment for overtime work or to a lump sum payment for accrued vacation in the case of a terminating employee; or to any other payment to an employee except his/her current base pay step.

Effective July 1, 2022 the in-lieu compensation factor will increase to from 5% to 7%. - Section XIV of MOU:

XIV. CERTIFICATE INCENTIVE PAY
The City shall provide the following Certificate Incentive Pay for sworn personnel represented by the Association who receive a California P.O.S.T. Intermediate or Advanced Certificate:

A. Effective July 1, 2019, Certificate Incentive Pay will be:

P.O.S.T. Intermediate Certificate $460 per month
P.O.S.T. Advanced Certificate $650 per month
Effective July 1, 2020, Certificate Incentive Pay will be:

P.O.S.T. Intermediate Certificate $480 per month
P.O.S.T. Advanced Certificate $685 per month
Effective July 1, 2021, Certificate Incentive Pay will be:

P.O.S.T. Intermediate Certificate $500 per month
P.O.S.T. Advanced Certificate $725 per month
Effective July 1, 2022, Certificate Incentive Pay will be:

P.O.S.T. Intermediate Certificate 5% of base compensation per month P.O.S.T. Advanced Certificate 7% of base compensation per month The effective date for payment of educational incentive pay shall be the payroll period immediately following the date on the P.O.S.T. certificate.

The provision of educational incentive pay is not intended as an inducement or directive to employees to conduct personal education programs beyond the programs required and/or provided by the City. The course work is undertaken voluntarily by the employee and not subject to remuneration under provisions of the Fair Labor Standards Act.

B. Effective July 1, 2019, Certificate Incentive Pay for dispatch personnel will be:

P.O.S.T. Intermediate Certificate $120.00 per month
P.O.S.T. Advanced Certificate $200.00 per month
Effective July 1, 2020, Certificate Incentive Pay for dispatch personnel will be:

P.O.S.T. Intermediate Certificate $160.00 per month
P.O.S.T. Advanced Certificate $250.00 per month
Effective July 1, 2021, Certificate Incentive Pay for dispatch personnel will be:

P.O.S.T. Intermediate Certificate $200.00 per month
P.O.S.T. Advanced Certificate $300.00 per month
Effective July 1, 2022, Certificate Incentive Pay for dispatch personnel, including Public Service Dispatch Supervisor, will be:

P.O.S.T. Intermediate Certificate 2.5% of base compensation per month P.O.S.T. Advanced Certificate 3.5% of base compensation per month The effective date for payment of educational incentive pay shall be the payroll period immediately following the date on the P.O.S.T. certificate.

XV. OVERTIME
C. Compensatory Time Off
Accumulation of compensatory time off shall be limited to 160 hours and shall only be available in accordance with federal regulations implementing the Fair Labor Standards Act. When an employee reaches the maximum accumulation of 160 hours, the employee shall receive overtime pay for time worked in excess of the regularly assigned shift.

Compensatory time accrual may be cashed-out for up to 80 hours per fiscal year. Cash out will be in November and April of the fiscal year.

The Association and the City agree to meet and confer prior to December 31, 2022 to develop a process related to the cash out of compensatory time. The new process will be implemented in calendar year 2023 with the goal to comply with constructive receipt requirements in calendar year 2023. - Section XIX.B of MOU:

XIX. TUITION FEES AND BOOK COSTS REIMBURSEMENT
B. The City shall establish a fund of $15,000 which shall be the City's total obligation for financing tuition fees and book costs incurred for courses completed within each fiscal year of this Memorandum of Understanding by the employees represented by the Newark Police Association. Reimbursement to individual employees shall not exceed $1,500 per employee per fiscal year. Should monies remain in the fund at the end of the fiscal year, the funds will be distributed equitably among employees that had eligible expenses beyond the $1,500 per employee limit, up to their maximum expense incurred. Reimbursements taxable under the IRS will be taxed to comply with IRS regulations.
- Section XXII of MOU:

XXII.LONGEVITY PAY
A. Effective July 1, 2019 the regular full-time employees in the classifications of Police Officer and Police Sergeant are eligible for longevity pay as follows:

B. For service to meet the requirements of longevity pay, it must meet all of the following criteria:
• Full-time sworn classifications represented by the City of Newark Police Association, including probationary time through June 30, 2022. Effective July 1, 2022, full-time sworn service in the classifications of Police Officer, Police Corporal, Police Sergeant, Police Lieutenant, Police Commander, Police Captain, and/or similar sworn position; in a public sector agency, including probationary time; and
• Continuous service or service that qualifies under reinstatement procedures; and • Active service (in a paid status) or approved leave without pay that qualifies for FMLA, CFRA, PDL, workers’ compensation, or other protected leaves per state or federal law. - Section XXIII.D of MOU:

XXIII. SPECIAL ASSIGNMENT PAY
D. Effective July 1, 2019, Police Officers and Sergeants assigned to one of the following positions shall receive special assignment pay of $425 per month:
• School Liaison Officer
• School Resource Officer
• Training Officer
• Detective
• Canine Handler
• Motor
• Special Enforcement Team
• Any other position approved by the Police Chief
Effective July 1, 2022, Police Officers and Sergeants assigned to one of the above listed positions shall receive special assignment pay of 5% of base compensation per month.

Attachment A.2
Effective July 1, 2022 *Monthly salaries are based on a 40-hour workweek for non-sworn NPA employees. Salaries listed for sworn NPA employees are monthly salaries for workweeks as defined in MOU.

ANIMAL CONTROL OFFICER $7,076.95 $7,430.79 $7,802.33 $8,192.45 $38.89 $40.82 $42.86 $45.01 $47.22
COMMUNITY SERVICE OFFICER $6,816.43 $7,157.25 $7,515.11 $7,890.87 $8,285.41 $39.32 $41.29 $43.35 $45.52 $47.80
LEAD PUBLIC SAFETY DISPATCHER $8,261.62 $8,674.71 $9,108.44 $9,563.86 $10,042.06 $47.66 $50.05 $52.55 $55.18 $57.93
POLICE OFFICER $9,310.30 $9,775.81 $10,264.60 $10,777.83 $11,316.73 $53.72 $56.40 $59.22 $62.18 $65.29
POLICE RECORD SUPERVISOR $7,379.64 $7,748.62 $8,136.06 $8,542.86 $8,970.00 $42.58 $44.71 $46.94 $49.29 $51.75
POLICE SERGEANT $11,077.57 $11,631.45 $12,213.02 $12,823.67 $13,464.86 $63.91 $67.10 $70.46 $73.98 $77.68
PUBLIC SAFETY CLERK $6,414.31 $6,735.03 $7,071.78 $7,425.37 $7,796.64 $37.00 $38.85 $40.80 $42.84 $44.98
PUBLIC SAFETY DISPATCHER $7,649.66 $8,032.14 $8,433.75 $8,855.43 $9,298.21 $44.13 $46.33 $48.65 $51.08 $53.64
RED LIGHT PHOTO ENFORCEMENT $6,540.62 $6,867.65 $7,211.04 $7,571.59 $7,950.17 TECHNICIAN $37.73 $39.62 $41.60 $43.68 $45.86
Attachment A.3
Effective July 1, 2023 *Monthly salaries are based on a 40-hour workweek for non-sworn NPA employees. Salaries listed for sworn NPA employees are monthly salaries for workweeks as defined in MOU. Listed salaries are subject to change pursuant to negotiated equity adjustments.

ANIMAL CONTROL OFFICER $6,942.15 $7,289.25 $7,653.72 $8,036.40 $8,438.22 $40.05 $42.05 $44.16 $46.37 $48.68
COMMUNITY SERVICE OFFICER $7,020.92 $7,371.97 $7,740.57 $8,127.60 $8,533.98 $40.50 $42.53 $44.65 $46.89 $49.23
LEAD PUBLIC SAFETY DISPATCHER $8,509.47 $8,934.95 $9,381.69 $9,850.78 $10,343.32 $49.09 $51.55 $54.13 $56.83 $59.67
POLICE OFFICER $9,589.61 $10,069.09 $10,572.54 $11,101.17 $11,656.23 $55.33 $58.09 $61.00 $64.05 $67.25
POLICE RECORD SUPERVISOR $7,601.03 $7,981.08 $8,380.14 $8,799.14 $9,239.10 $43.85 $46.05 $48.35 $50.77 $53.31
POLICE SERGEANT $11,409.90 $11,980.39 $12,579.41 $13,208.38 $13,868.80 $65.83 $69.12 $72.57 $76.20 $80.01
PUBLIC SAFETY CLERK $6,606.74 $6,937.08 $7,283.94 $7,648.13 $8,030.54 $38.11 $40.02 $42.02 $44.12 $46.33
PUBLIC SAFETY DISPATCH $9,150.13 $9,560.40 $10,038.41 $10,540.33 $11,067.35 SUPERVISOR $52.53 $55.16 $57.91 $60.81 $63.85
PUBLIC SAFETY DISPATCHER $7,879.15 $8,273.10 $8,686.76 $9,121.10 $9,577.15 $45.45 $47.72 $50.11 $52.62 $55.25
RED LIGHT PHOTO ENFORCEMENT $6,736.84 $7,073.68 $7,427.37 $7,798.74 $8,188.67 TECHNICIAN $38.86 $40.81 $42.85 $44.99 $47.24
Attachment A.4
Effective July 1, 2024 *Monthly salaries are based on a 40-hour workweek for non-sworn NPA employees. Salaries listed for sworn NPA employees are monthly salaries for workweeks as defined in MOU. Listed salaries are subject to change pursuant to negotiated equity adjustments.

ANIMAL CONTROL OFFICER $7,150.41 $7,507.93 $7,883.33 $8,277.50 $8,691.37 $41.25 $43.32 $45.48 $47.76 $50.14
COMMUNITY SERVICE OFFICER $7,231.55 $7,593.13 $7,972.78 $8,371.42 $8,790.00 $41.72 $43.80 $45.99 $48.29 $50.71
LEAD PUBLIC SAFETY DISPATCHER $8,764.76 $9,203.00 $9,663.15 $10,146.30 $10,653.62 $50.57 $53.09 $55.75 $58.54 $61.46
POLICE OFFICER $9,877.30 $10,371.16 $10,889.72 $11,434.20 $12,005.91 $56.99 $59.84 $62.83 $65.97 $69.27
POLICE RECORD SUPERVISOR $7,829.06 $8,220.52 $8,631.54 $9,063.12 $9,516.27 $45.17 $47.43 $49.80 $52.29 $54.91
POLICE SERGEANT $11,752.19 $12,339.80 $12,956.79 $13,604.63 $14,284.87 $67.80 $71.19 $74.75 $78.49 $82.41
PUBLIC SAFETY CLERK $6,804.95 $7,145.19 $7,502.45 $7,877.58 $8,271.45 $39.26 $41.22 $43.28 $45.44 $47.72
PUBLIC SAFETY DISPATCH $9,378.29 $9,847.21 $10,339.57 $10,856.54 $11,399.37 SUPERVISOR $54.11 $56.81 $59.65 $62.63 $65.77
PUBLIC SAFETY DISPATCHER $8,115.52 $8,521.30 $8,947.36 $9,394.73 $9,864.47 $46.81 $49.16 $51.61 $54.19 $56.90
RED LIGHT PHOTO ENFORCEMENT $6,938.95 $7,285.89 $7,650.19 $8,032.70 $8,434.33 TECHNICIAN $40.03 $42.03 $44.13 $46.34 $48.66
Dated: ____________________
For the City of Newark: For the Newark Police Association:
__________________________
David J. Benoun, City Manager
_______________________________
Patrick Smith, President
Item D. 12.

DATE 12/14/2023
TO Honorable Mayor and City Council Members
FROM Ed Miranda, Information Technology Director/CIO
SUBJECT Adopt a resolution approving a Contractual Services Agreement with ICS Integrated Communication Systems for audio/video equipment and services and approving an amendment to the 2022-2024 Biennial Budget and Capital Improvement Plan
SUMMARY AND RECOMMENDATION
After an assessment of the audio/video (AV) equipment in City Hall and the Police building, some equipment was identified as deficient and is in need of replacement or upgrade. Staff recommends that the City Council, by resolution, approve a Contractual Services Agreement with ICS Integrated Communication Systems to provide updated AV equipment to lower the risk of faulty or malfunctioning equipment and to improve collaboration. Staff further recommends that the City Council approve an amendment to the 2022-2024 Biennial Budget and Capital Improvement Plan to appropriate $310,000 of PEG Funds (611) and $112,000 of Equipment Replacement Funds (701).

BACKGROUND
ICS Integrated Communication Systems (ICS) designed and installed the Audio/Video (AV) systems in the Civic Center and is the current provider of AV services and solutions for the City. After experiencing intermittent failures with some equipment, the City sought solutions to address the AV issues. A review of the equipment revealed that the current Biamp/Modena systems in the City Hall and Police Department conference rooms need to be replaced with a more reliable system. In addition, when both the Council Chambers and Police Department Training Room were designed, the video display technology was relatively new. Technology has significantly advanced with improved gap reduction between screens that make viewing smooth and seamless. The picture quality has also significantly improved, which addresses the inconsistent coloration from display to display. Commercial grade LED displays offer high resolution and are more reliable. Other necessary AV updates include adding High-Definition Multimedia Interface connectivity in some conference rooms, replacement of the audio controller to address sound issues in the Council Chambers and an update of the Crestron touch screen panels for Zoom compatibility.

DISCUSSION/ANALYSIS
Conference, Training and Meeting Rooms
Conference, Training and Meeting Rooms
As a result of identified AV issues reported, it has been determined that the technology initially deployed to the conference rooms, meeting rooms and the Police Department training room continue to experience intermittent issues that impact staff's ability to conduct online meetings (Teams and Zoom) and in-room presentations. In addition to conducting City business during operating hours, some of these rooms serve as overflow or back-up spaces for public meetings, such as City Council and Planning Commission meetings. The Biamp/Modena system is outdated and has not kept up with emerging AV technology. A Logitech Rally system coupled with a Barco ClickShare system was tested successfully as a "proof of concept" in the Police Department training room. After several weeks of experience with these systems, staff are confident this solution will resolve the issues we are currently experiencing with the Biamp/Modena system. This solution also includes improving HDMI connectivity through hardware replacement. In addition to the system itself, the current Police Department training room 2x2 display continues to be problematic, causing disruptions to scheduled meetings at times. Too frequently, one or more of the four screens will not show content intended to display across all four screens, resulting in only three-quarters or one-half of a slide or other displayed information to be visible. The total size of all four displays can be replaced by a single large display with upgraded technology to improve reliability and picture quality.

Council Chambers
The City Council Chambers is the primary location for the City's public meetings.

Recent issues reported with the AV equipment and display in Council Chambers include one or more of the nine display screens not displaying content, voices echoing or not being heard when speaking into microphones, and a notice that Zoom will no longer be compatible with our current equipment. Zoom is currently used to accommodate presenters unable to be in-person during a public meeting. Meetings are available for viewing on YouTube and the local government access channel on cable television. Some of the technical issues experienced have caused delays in starting public meetings on time or prevented remote individuals from making their presentations. In an effort to address sound issues in Council Chambers, the current audio controller system was expanded, but has now reached its limit. Replacement of this system is now required to fully address the sound balancing issues.

FISCAL IMPACT
In 2006, a fund was established specifically for capital costs related to facilities used for government access with revenue from PEG fees. PEG is an acronym for public, education and government access channels. Since 2006, cable service providers have remitted a fee equal to one percent (1%) of their gross receipts to the City to support public access. The total not-to-exceed amount for the contractual services agreement is $422,000, of which $310,000 are eligible costs to be paid from the PEG Fund (611) and $112,000 are not PEG eligible costs, as some rooms with AV needs are not used for public access/meetings. An amendment to the 2022-2024 Biennial Budget and Capital Improvement Plan to appropriate $310,000 of PEG Funds (611) and $112,000 of Equipment Replacement Funds (701) is needed. The PEG fund balance will be approximately $418,600 after the $310,000 appropriation. Staff believe this balance, coupled with the estimated $70,000 annual revenue, is an appropriate amount for coupled with the estimated $70,000 annual revenue, is an appropriate amount for future needs.

REVIEW AND APPROVAL
Prepared by - Edwin Miranda, CIO / IT Director
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
876_Resolution_ICS.doc
ICS CSA
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK APPROVING A CONTRACTUAL SERVICES

AGREEMENT WITH ICS INTEGRATED COMMUNICATION

SYSTEMS TO PROVIDE PROFESSIONAL AUDIO/VIDEO
SOLUTIONS AND AMENDING THE 2022-2024 BIENNIAL

BUDGET AND CAPITAL IMPROVEMENT PLAN FOR
FISCAL YEAR 2024
WHEREAS, the City has identified a need to replace existing audio/video equipment which has reached the end of its useful life; and
WHEREAS, ICS Integrated Communication Systems is the designer and installer of the existing audio/video solutions in the Civic Center and provided proposals to satisfy the City’s needs to address the audio/video needs in the Council Chambers, Police Department Training Room, conference rooms and meeting rooms; and
WHEREAS, ICS Integrated Communication Systems is the sole provider of the software service, warranty, maintenance, and training associated with the audio/video installations and designed, installed, and supports the current audio/video technology; and WHEREAS, the City is eligible to use Public, Education, and Government (PEG) funds for capital costs associated with the scope of services described in the Agreement up to $310,000.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby authorizes the City Manager to execute a Contractual Services Agreement with ICS Integrated Communication Systems, in a form approved by the City Attorney, to provide professional audio/video solutions for a total not-to-exceed amount of $422,000.

BE IT FURTHER RESOLVED that the City Council of the City of Newark does hereby approve an amendment to the 2022-2024 Biennial Budget and Capital Improvement Plan to appropriate an additional $310,000 of PEG Funds (611) and $112,000 of Equipment Replacement Funds (701) as follows:

TO: 701.87.701.800.8051 Council Audio/Video System Replacement $112,000 FR: 701.3000 Unappropriated Fund Balance $112,000
TO: 610.90.094.940.6221.CIP1298 Council Audio/Video System Upgrades $310,000 FR: 611.00.000.000.9999 Transfer Out $310,000

CONTRACTUAL SERVICES AGREEMENT

CONSULTANTS
This Service Agreement (hereinafter “Agreement”) is made and entered into this 14THday of December, 2023 by and between the CITY OF NEWARK, a municipal corporation (“City”), and ICS – Integrated Communication Systems, a corporation organized and existing under the law of the state of California, with its head office located at: 6680 Via Del Oro, San Jose, CA 95119, (“Consultant”), collectively the “Parties”.

W I T N E S S E T H:

WHEREAS, City requested proposals to perform the services generally including:

Audio/Video Equipment for the City Council Chambers, Police Department Training Room, and Conference Rooms.

WHEREAS, in response to City’s request, Consultant submitted a proposal and, after negotiations, Consultant agreed to perform the Services more particularly described in Exhibit “A” (“Services”), in return for the compensation described in this Agreement and Exhibit “B”.

WHEREAS, in reliance upon Consultant’s documentation of its qualifications, as set forth in Exhibit “C”, City finds that Consultant has demonstrated the requisite qualifications, experience, training, and expertise to perform the requested Services.

NOW, THEREFORE, the Parties hereto agree as follows:

1. CONSULTANT’S SERVICES. Consultant shall perform Services described, and in the time, place, and manner specified in Exhibit “A” in accordance with the terms and conditions of this Agreement. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit “A”, the Agreement shall control.

2. TIME FOR PERFORMANCE. Time is of the essence in the performance of Services under this Agreement and Consultant shall generally adhere to the schedule set forth in Exhibit “A”; provided, that City shall grant reasonable extensions of time for the performance of such Services occasioned by governmental reviews of Consultant’s work product or other unavoidable delays occasioned by circumstances, provided, further, that such unavoidable delays shall not include strikes, lockouts, work stoppages, or other labor disturbances conducted by, or on behalf of, Consultant’s officers or employees. Any Services for which times for performance are not specified in this Agreement shall be commenced and completed by Consultant in a reasonably prompt and timely manner based upon the circumstances and direction communicated to Consultant.

Consultant acknowledges the importance to City of City’s performance schedule and agrees to put forth its best professional efforts to perform its Services under this Agreement in a manner consistent with that schedule. City understands, however, that Consultant’s performance must be governed by sound professional practices.

3. COMPENSATION.

A. “Not to Exceed” Compensation. City shall compensate Consultant for all Services performed by Consultant hereunder in an amount based upon Consultant’s hourly or other rates set forth in Exhibit “B”. The payments specified in Exhibit “B” shall be the only payments to be made to Consultant for Services rendered pursuant to this Agreement.

Notwithstanding the foregoing, the combined total of compensation and costs payable hereunder shall not exceed the sum of Three Hundred Twenty Six Twenty Four and No/100 Dollars ($326,024.00) unless the performance of services and/or reimbursement of costs and expenses in excess of said amounts have been approved in advance of performing such services or incurring such costs and expenses by City, evidenced in writing authorizing such additional amount. Consultant shall not perform any services beyond the services identified in Exhibit “A” without prior written authorization from the City’s Authorized Representative. If the City’s Authorized Representative provides authorization for additional services, the total compensation to the Consultant under this Agreement shall not exceed Four Hundred Twenty Two Thousand and No/100 Dollars ($422,000.00).

B. Method of Billing. To request payment, Consultant shall submit monthly invoices to City identifying Services performed and the charges therefore (including an identification of personnel who performed Services, hours worked, hourly rates, and reimbursable expenses), based upon Consultant’s billing rates (set forth on Exhibit “B” hereto).

Consultant shall submit all billings for said Services to City in the manner specified in Exhibit “B”; or, if no manner is specified in Exhibit “B”, then according to the usual and customary procedures and practices which Consultant uses for billing clients similar to City.

Invoices shall be sent to:

City of Newark
Attn: Finance Department
37101 Newark Blvd.

Newark, CA 94560
Upon completion of Services, City shall sign off and acknowledge that all terms and conditions have been satisfactorily met; upon which, unless waived by City in writing, Consultant shall prepare an itemized statement, briefly describing by task and/or labor category the items billed.

C. Payment. Upon receipt of an invoice, City shall make payments to Consultant on a monthly basis, or at such other times as may be specified in Exhibit “B”, for Services, which are performed in accordance with this Agreement to the satisfaction of City.

D. Consultant’s Failure to Perform. In the event that Consultant performs Services that do not comply with the requirements of this Agreement, Consultant shall, upon receipt of written notice from City, re-perform the services (without additional compensation to Consultant). If Consultant’s failure to perform in accordance with this Agreement causes damages to City, Consultant shall reimburse City for the damages incurred (which may be charged as an offset to Consultant’s payment).

4. ADDITIONAL SERVICES. In the event City desires the performance of additional services not otherwise included within Services, such services shall be authorized by written task order approved in advance of the performance thereof. Such task order shall include a description of the services to be performed thereunder, the maximum compensation and reimbursement of costs and expenses payable therefore, the time of performance thereof, and such other matters as the Parties deem appropriate for the accomplishment of such services. Except to the extent modified by a task order, all other terms and conditions of this Agreement shall be deemed incorporated in each such task order.

5. INDEPENDENT CONSULTANT. At all times during the term of this Agreement, Consultant shall be, and is an independent consultant and shall not be an employee or agent of City. Consultant shall not be entitled to any benefit, right, or compensation other than that provided in this Agreement. City shall have the right to control Consultant only insofar as the results of Consultant’s Services; however, City shall not have the right to control the means by which Consultant accomplishes Services rendered pursuant to this Agreement.

Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

6. PERSONNEL. Consultant understands that, in entering into this Agreement, City has relied upon Consultant’s ability to perform in accordance with its representations regarding the qualifications of Consultant, including the qualifications of its Authorized Representative, its designated personnel, and its Subconsultants, if any, identified in Exhibit “C”. Therefore, Consultant shall not replace its Authorized Representative, or any of the designated personnel or Subconsultants identified in Exhibit “C”, without the prior written consent of City. All Services shall be performed by, or under, the direct supervision of Consultant’s Authorized Representative.

Consultant agrees to include with all Subconsultants in their subcontract the same requirements and provisions of this Agreement including the indemnity and Insurance requirements to the extent they apply to the scope of the Subconsultant’s work. Subconsultants hired by Consultant agree to be bound to Consultant and City in the same manner and to the same extent as Consultant is bound to City under this Agreement. Subconsultant further agrees to include these same provisions with any Sub-subconsultant. A copy of this Agreement’s Indemnity and Insurance provisions will be furnished to the Subconsultant upon request. The Consultant shall require all Sub-subconsultants to provide a valid certificate of insurance and the required endorsements included in this Agreement prior to commencement of any Services and will provide proof of compliance to the City.

In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the removal of any of Consultant’s designated personnel or Subconsultants, Consultant shall, immediately upon receiving notice from City of such desire of City, cause the removal of such person or persons.

7. FACILITIES AND EQUIPMENT. Consultant shall, at its sole cost and expense, furnish all facilities and equipment which may be required for furnishing Services.

8. INFORMATION AND DOCUMENTATION.

A. Information from City. City has made an effort to provide Consultant with all information necessary for Consultant’s performance of Services. If Consultant believes additional information is required, Consultant shall promptly notify City and City will provide to Consultant all relevant non-privileged information in City’s possession.

B. Consultant’s Accounting Records. Consultant shall maintain all accounting records related to this Agreement in accordance with generally accepted accounting principles and state law requirements, and in no event for less than four (4) years. Consultant’s accounting records shall include, at a minimum, all documents which support Consultant’s costs and expenses related to this Agreement, including personnel, subconsultants’ invoices and payments, and reimbursable expenses. Consultant’s accounting records shall be made available to City within a reasonable time after City’s request, during normal business hours.

C. Ownership of Work Product. All original documents prepared by Consultant (including its employees and subconsultants) for this Agreement (“Work Product”), whether complete or in progress, are the property of City and shall be given to City at the completion of Consultant’s Services, or upon demand of City. Consultant shall have a right to make and keep copies of the Work Product except for any confidential information. Consultant shall not reveal the Work Product or the confidential information contained in the Work Product, or make it available, to any third party without the prior written consent of City.

9. CONFLICTS OF INTEREST PROHIBITED. Consultant (including its employees, agents, and subconsultants) shall not maintain or acquire any direct or indirect interest that conflicts with the performance of this Agreement. Consultant shall comply with all requirements of the Political Reform Act (California Government Code Section 81000, et seq.) and other laws relating to conflicts of interest, including: (a) Consultant shall not make or participate in a decision made by City if it is reasonably foreseeable that the decision may have a material effect on Consultant’s economic interest, and (b) if required by law, Consultant shall file financial disclosure forms with the City Clerk. If Consultant maintains or acquires a conflicting interest, any contract with City (including this Agreement) involving Consultant’s conflicting interest may be terminated by City.

10. NONDISCRIMINATION. Consultant shall comply with all applicable federal, state, and local laws regarding nondiscriminatory employment practices, whether or not said laws are expressly stated in this Agreement. Consultant shall not discriminate against any employee or applicant because of race, color, religious creed, national origin, physical disability, mental disability, medical condition, marital status, sexual orientation, sex, age, or any other basis, as defined in California Civil Code Section 51.

11. COMPLIANCE WITH LAW AND STANDARD OF CARE. Consultant shall comply with all applicable legal requirements including all federal, state, and local laws (including ordinances and resolutions), whether or not said laws are expressly stated in this Agreement.

Consultant shall perform Services using a standard of care equal to, or greater than, the degree of skill and diligence ordinarily used by reputable professionals, with a level of experience and training similar to Consultant, performing under circumstances similar to those required by this Agreement.

12. PUBLIC WORKS REQUIREMENTS. Because the services described in Exhibit A include “work performed during the design and preconstruction phases of construction including, but not limited to, inspection and land surveying work,” the services constitute a public works within the definition of Section 1720(a)(1) of the California Labor Code. As a result, Consultant is required to comply with the provisions of the California Labor Code applicable to public works, to the extent set forth in Exhibit D.

13. PUBLIC WORKS CONTRACTOR REGISTRATION. Consultant agrees, in accordance with Section 1771.1 of the California Labor Code, that Consultant or any subconsultant shall not be qualified to bid on, be listed in a bid proposal, subject to the requirements of Section 4104 of the Public Contract Code, or engage in the performance of any contract for public work, as defined in Chapter 1 of Part 7 of Division 2 of the California Labor Code, unless currently registered and qualified to perform public work pursuant to California Labor Code section 1725.5.

It is not a violation of this section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded. No contractor or subcontractor may be awarded a contract for public work on a public works project unless registered with the Department of Industrial Relations pursuant to California Labor Code section 1725.5. Consultant agrees, in accordance with Section 1771.4 of the California Labor Code, that if the work under this Agreement qualifies as public work, it is subject to compliance monitoring and enforcement by the Department of Industrial Relations.

14. INSURANCE. Consultant shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, his agents, representatives, subconsultants, or employees.

A. Verification of Coverage.

Proof of Insurance shall be mailed to the following address or any subsequent address as may be directed in writing by the City Risk Manager:

CITY OF NEWARK
Attn: Risk Manager
37101 Newark Boulevard
Newark, CA 94560
City reserves the right to require and obtain complete, certified copies of all required insurance policies and endorsements at any time. Failure to exercise this right at any time shall not constitute a waiver of right to exercise later. Consultant shall immediately furnish City with certificates of renewal for each policy that is renewed during the term of this Agreement.

B. Minimum Scope of Insurance.

Coverage shall be at least as broad as:

1. Insurance Services Office Form Number CG 00 01covering Commercial General Liability on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal and advertising injury; and

2. Insurance Services Office Form Number CA 00 01 covering Code 1, (any auto), or Code 8 (hired) and Code 9 (non-owned) if consultant has no owned autos; and

3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance; and

4. Errors and Omissions Liability insurance appropriate to the Consultant’s profession. Architects’ and Engineers’ coverage is to be endorsed to include contractual liability.

C. Minimum Limits of Insurance.

It shall be a requirement under this Agreement that any available insurance proceeds broader than or in excess of the specified minimum Insurance coverage requirements and/or limits shall be available to the Additional Insured. Furthermore, the requirements for coverage and limits shall be (1) the minimum coverage and limits specified in this Agreement; or (2) the broader coverage and maximum limits of coverage of and Insurance policy or proceeds available to the named Insured; whichever is greater.

Consultant shall maintain limits no less than:

1. General Liability:
(including products and
completed operations,
property damage, bodily
injury, and personal and
advertising injury)
$2,000,000 per occurrence for
bodily injury, personal injury, and
property damage. If a general
aggregate limit applies, either the
general aggregate limit shall apply
separately to this project/location or
the general aggregate limit shall be
twice the required occurrence limit.

2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Employer’s Liability: $1,000,000 per accident for bodily injury or disease.

4. Errors and Omissions
Liability:
$1,000,000 per occurrence or
claim; $2,000,000 aggregate.

D. Deductibles and Self-Insured Retentions.

Any deductibles or self-insured retentions must be declared to and approved by the City Risk Manager. At the option of City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects to City, its officers, officials, directors, employees, contractors, agents, and volunteers, or (2) Consultant shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigations, claim administration, and defense expenses in an amount specified by the City Risk Manager or designee.

E. Claims Made Policies.

For all “claims made” coverage, in the event that Consultant changes insurance carriers Consultant shall purchase “tail” coverage or otherwise provide for continuous coverage covering the Term of this Agreement and not less than five (5) years thereafter. Proof of such “tail” or other continuous coverage shall be required at any time that the Consultant changes to a new carrier.

F. Wasting Policies.

No policy required by this paragraph 14 shall include a “wasting” policy limit (ie. limit that is eroded by the cost of defense).

G. Remedies.

In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time herein required, City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant’s breach:

1. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement;

2. Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or

3. Terminate this Agreement.

H. Acceptability of Insurers.

Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City Risk Manager. All insurance companies providing coverage to Consultant shall be insurance organizations authorized by the Insurance Commissioner of the State of California to transact the business of insurance in the State of California.

I. Other Insurance Provisions.

The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

1. Additional Insureds. City, its officers, officials, directors, employees and volunteers (“Additional Insureds”) are to be covered as insureds with respect to liability arising out of work or operations performed by or on behalf of Consultant; including materials, parts or equipment furnished in connection with such work or operations.

2. Primary Coverage. For any claims related to Services, Consultant’s insurance coverage shall be primary insurance as respects City, its officers, officials, directors, employees, and volunteers. Any insurance or self-insurance maintained by City, its officers, officials, directors, employees, or volunteers shall be excess of Consultant’s insurance and shall not be contribute with it. Consultant’s policy will not seek contribution from the City’s insurance or self-insurance.

3. Notice of Cancellation. Each insurance policy required above shall provide that coverage shall not be canceled during the term of this Agreement without notice to City.

4. Civil Code § 2782. Coverage shall not extend to any indemnity coverage for the active negligence of the additional insured in any case where an agreement to indemnify the additional insured would be invalid under Subdivision (b) of Section 2782 of the California Civil Code.

5. Deductibles and Self-Insured Retentions (SIR). All deductibles and self-insured retentions must be disclosed to the City Risk Manager for approval and shall not reduce the limits of liability. Policies containing any SIR provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named Insured or the City.

6. Subconsultants. Consultant shall include all subconsultants as insureds under its policies or shall require and verify separate certificates and endorsements have been obtained for each subconsultant. All coverages for subconsultants shall be subject to all of the requirements stated herein.

7. Waiver of Subrogation. With respect to Workers’ Compensation and Employer’s Liability Coverage, the insurer shall agree to waive all rights of subrogation against City, its officers, officials, directors, employees, and volunteers for losses arising from work performed by Consultant for City.

8. Coverage is Material Element. Maintenance of proper insurance coverage in conformity with the provision of this paragraph 14 is a material element of this Agreement and failure to maintain or renew coverage or to provide evidence of coverage or renewal may be treated by City as a material breach of this Agreement.

9. Variation. The City Risk Manager may approve a variation in these insurance requirements upon a determination that the coverage, scope, limits, and form of such insurance are either not commercially available or that City’s interests are otherwise fully protected. Any variation granted shall be done in writing and shall be made a part of this Agreement as Appendix “A”.

15. REPORTING DAMAGES. If any damage (including but not limited to death, personal injury or property damage) occurs in connection with the performance of this Agreement, Consultant shall immediately notify the City Risk Manager’s office by telephone at 510-578-4428, and Consultant shall promptly submit to the City’s Risk Manager and the City’s Administrator (see paragraph 19, herein below) a written report (in a form acceptable to City) with the following information: (a) name(s) and address(es) of the injured or deceased person(s), (b) name(s) and address(es) of witnesses, (c) name(s) and address(es) of Consultant’s insurance company(ies), and (d) a detailed description of the damage(s) and whether any City property was involved.

16. INDEMNIFICATION/SAVE HARMLESS. To the fullest extent permitted by law, the Consultant shall: (1) immediately defend, and (2) indemnify City, its, officers, officials, directors, employees, and volunteers from and against all liabilities regardless of nature or type arising out of or resulting from Consultant’s performance of Services, or any negligent or wrongful act or omission of Consultant or Consultant’s officers, employees, agents, or subconsultants.

Liabilities subject to the duties to defend and indemnify include, without limitation all claims, losses, damages, penalties, fines, and judgments; associated investigation and administrative expenses; defense costs, including but not limited to reasonable attorneys’ fees; court costs; and costs of alternative dispute resolution. Consultant’s obligation to indemnify applies unless it is adjudicated that its liability was caused by the sole active negligence or sole willful misconduct of an indemnified party. If it is finally adjudicated that liability is caused by the comparative active negligence or willful misconduct of an indemnified party, Consultant’s indemnification obligation shall be reduced in proportion to the established comparative liability of the indemnified party.

In the event that Consultant or any employee, agent, or subconsultant of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

The duty to defend is a separate and distinct obligation from Consultant’s duty to indemnify. Consultant shall be obligated to defend, in all legal, equitable, administrative, or special proceedings, with counsel approved by City immediately upon tender to Consultant of the claim in any form or at any stage of an action or proceeding, whether or not liability is established.

An allegation or determination of comparative active negligence or willful misconduct by an indemnified party does not relieve the Consultant from its separate and distinct obligation to defend City. The obligation to defend extends through final judgment, including exhaustion of any appeals. The defense obligation includes an obligation to provide independent defense counsel if Consultant asserts that liability is caused in whole or in part by the negligence or willful misconduct of the indemnified party. If it is finally adjudicated that liability was caused by the sole active negligence or sole willful misconduct of an indemnified party, Consultant may submit a claim to City for reimbursement of reasonable attorneys’ fees and defense costs.

The review, acceptance or approval of Consultant’s work or work product by any indemnified party shall not affect, relieve or reduce Consultant’s indemnification or defense obligations. This paragraph survives completion of Services or the termination of this contract.

The provisions of this paragraph are not limited by and do not affect the provisions of this contract relating to insurance.

Consultant/Subconsultant’s responsibility for such defense and indemnity obligations shall survive the termination or completion of this Agreement for the full period of time allowed by law. The defense and indemnification obligations of this Agreement are undertaken in addition to, and shall not in any way be limited by, the insurance obligations contained in this Agreement.

17. LICENSES, PERMITS, ETC. Consultant represents and warrants to City that it has all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required for Consultant to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals which are legally required for Consultant to practice its profession. In addition to the foregoing, Consultant shall obtain and maintain during the term hereof a valid City of Newark Business License.

18. TERM/TERMINATION.

A. The term of this Agreement shall commence upon the date first hereinabove written and shall expire upon completion of performance of Services hereunder by Consultant.

B. Notwithstanding the provisions of paragraph 18 Section A above, City may terminate this Agreement at any time and without cause upon written notification to Consultant.

Consultant may cancel this Agreement upon thirty (30) days’ written notice to City and shall include in such notice the reasons for cancellation. In the event of such termination, City shall compensate Consultant for Services rendered and reimburse Consultant for costs and expenses incurred, to the date of termination, calculated in accordance with the provisions of paragraph 3.

In ascertaining the Services actually rendered to the date of termination, consideration shall be given both to completed work and work in process of completion. Nothing herein contained shall be deemed a limitation upon the right of City to terminate this Agreement for cause, or otherwise to exercise such rights or pursue such remedies as may accrue to City hereunder.

19. CONTRACT ADMINISTRATION. This Agreement shall be administered by Ed Miranda of the City of Newark (“Administrator”). All correspondence shall be directed to or through the Administrator or his/her designee.

20. NOTICES. Written notices required or convenient hereunder shall be delivered personally or by depositing the same with the United States Postal Service, first class (or equivalent) postage prepaid and addressed, in the case of Consultant, to:

ICS- Integrated Communication Systems CITY OF NEWARK

ALONZO MADRID ED MIRANDA
Consultant Administrator
Address: 6680 Via Del Oro
San Jose, CA 95119
City of Newark
Attn: Ed Miranda
37101 Newark Boulevard
Newark, CA 94560

21. PARAGRAPH HEADINGS. Paragraph headings used herein are for convenience only and shall not be deemed to be a part of such paragraphs and shall not be construed to change the meaning thereof.

22. EXHIBITS. All exhibits referred to herein are attached hereto and are by this reference incorporated herein.

23. SEVERABILITY. If any term of this Agreement (including any phrase, provision, covenant, or condition) is held by a court of competent jurisdiction to be invalid or unenforceable, the Agreement shall be construed as not containing that term, and the remainder of this Agreement shall remain in full force and effect; provided, however, this paragraph shall not be applied to the extent that it would result in a frustration of the Parties’ intent under this Agreement.

24. GOVERNING LAW, JURISDICTION, AND VENUE. The interpretation, validity, and enforcement of this Agreement shall be governed by and interpreted in accordance with the laws of the State of California. Any suit, claim, or legal proceeding of any kind related to this Agreement shall be filed and heard in a court of competent jurisdiction in the County of Alameda.

25. ATTORNEY’S FEES. In the event any legal action is commenced to enforce this Agreement, the prevailing party is entitled to reasonable attorney’s fees, costs, and expenses incurred.

26. ASSIGNABILITY. Neither Consultant nor City shall subconsult, assign, sell, mortgage, hypothecate, or otherwise transfer their respective interests or obligations in this Agreement without the express prior written consent of the non-transferring party.

27. MODIFICATIONS. This Agreement may not be modified orally or in any manner other than by an agreement in writing signed by both Parties.

28. WAIVERS. Waiver of breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision of this Agreement.

29. ENTIRE AGREEMENT. This Agreement, including all documents incorporated herein by reference, comprises the entire integrated understanding between the Parties concerning the Services. This Agreement supersedes all prior negotiations, agreements, and understandings regarding this matter, whether written or oral. The documents incorporated by reference into this Agreement are complementary; what is called for in one is binding as if called for in all.

30. SIGNATURES. The individuals executing this Agreement represent and warrant that they have the right, power, legal capacity, and authority to enter into and to execute this Agreement on behalf of the respective legal entities of Consultant and City. This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective successors and assigns.

31. COVENANT AGAINST CONTINGENT FEES. Consultant hereby warrants that Consultant has not employed or retained any company or person, other than a bona fide employee working for Consultant, to solicit or secure this Agreement, and Consultant has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon or resulting from the award or formation of this Agreement. For breach or violation of this warranty, City shall have the right to annul this Agreement without liability or, at City’s discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the day and year first hereinabove written.

CITY OF NEWARK, a municipal corporation CONSULTANT, ICS-Integrated Communication Systems
____________________________ ____________________________ By: By: David Benoun By: Alonzo Madrid
Title: City Manager Title: Consultant
Date: ____________________________ Date: ____________________________ ATTEST:
____________________________
By: Sheila Harrington
Title: City Clerk
Date: ____________________________
APPROVED AS TO FORM:
____________________________
By: Kristopher Kokotaylo
Title: City Attorney

EXHIBIT A

SCOPE OF SERVICES
This Scope of Services, Exhibit “A,” is hereby incorporated by reference into the Agreement, under Agreement Paragraph 1.

Please see attached proposals from ICS-Integrated Communication Systems for scope of work, as summarized below:

Council Chambers
• Replace two Crestron Panels for Zoom upgrades (includes programming of Crestron Panel) • Replace full Audio Controller and Tone out System
• Replace 9 LCD Monitors for 1 Video Wall
Police Department Training Room
• Replace 4 LCD Monitors for 1 Video Wall
• Replace Biamp & Modena devices with Logitech Rally System with Barco ClickShare (includes programming of Crestron Panel)
Meeting Room 1
• Replace Biamp & Modena devices with Logitech Rally System with Barco ClickShare (includes programming of Crestron panel)
Meeting Room 2
• Replace Biamp & Modena devices with Logitech Rally System with Barco ClickShare (includes programming of Crestron panel)
Meeting Room 3
• Replace Biamp & Modena devices with Logitech Rally System with Barco ClickShare (includes programming of Crestron panel) / Optional to add HDMI access to use for large plan review in current office
Meeting Room 4
• Replace Biamp & Modena devices with Logitech Rally System with Barco ClickShare (includes programming of Crestron panel)
Meeting Room 5
• Replace Biamp & Modena devices with Logitech Rally System with Barco ClickShare (includes programming of Crestron panel) / Add HDMI Port Meeting Room 6
• Replace Biamp & Modena devices with Logitech Rally System with Barco ClickShare (includes programming of Crestron panel)
Meeting Room 7
• Replace Biamp & Modena devices with Logitech Meetup System with Barco ClickShare (Repurpose 1 of the 55” LCD display from Council or Police Department) Police Department Meeting Room
• Replace Biamp & Modena devices with Logitech Rally System with Barco ClickShare (includes programming of Crestron panel)
Police Department Chief’s Conference Room
• Replace Biamp & Modena devices with Logitech Rally System with Barco ClickShare (includes programming of Crestron panel)
Police Department Meeting Room 2
• Replace Biamp & Modena devices with Logitech Rally System with Barco ClickShare (includes programming of Crestron panel)

EXHIBIT B

COMPENSATION
This compensation schedule, Exhibit “B,” is hereby incorporated by reference into the Agreement, under Agreement Paragraph 3.

For all services identified in Exhibit “A”, Scope of Services, the City agrees to pay, and Consultant agrees to accept as total compensation the following:

Please see attached proposals from ICS-Integrated Communication Systems for compensation, estimates and summarized below, not-to-exceed value totals $310,000 for PEG fund and $112,000 for equipment replacement fund purchases:

Newark Civic Center chambers Crestron Panel Upgrade (PEG funds eligible) • $9,475 Replace two Crestron Panels for Zoom upgrades (includes programming of Crestron Panel)
Newark Civic Center Chambers BYOD upgrade (PEG funds eligible) • $22,913 Replace full Audio Controller and Tone out System Newark Civic Center Chambers Video Wall (PEG funds eligible) • $141,485 Replace 9 LCD Monitors for 1 Video Wall
The City of Newark Police Building – Video Wall (PEG funds eligible) • $54,647 Replace 4 LCD Monitors for 1 Video Wall
Newark Civic Center Logitech Upgrade - Conference Room 2, Conference Room 1, PD Training Room (PEG funds eligible)
• $36,637 Replace Biamp & Modena devices with Logitech Rally System with Barco ClickShare (includes programming of Crestron panel)
Newak Civic Center Logitech Upgrade - Conference Rooms 3, 4, 5, 6, 7 • $50,579 Replace Biamp & Modena devices with Logitech Rally System with Barco ClickShare (includes programming of Crestron panel)
Police Building Training Room Logitech Camera Proposal (PEG funds eligible) • $12,345 Replace Biamp & Modena devices with Logitech Rally System with Barco ClickShare (includes programming of Crestron panel)
The City of Newark HDMI Add (PEG funds eligible)
• $3,943 Install Extron Transmitters and Extron Receivers to allow for the HDMI signal to pass from table to Display.

Total PEG Funds: $275,445 → not to exceed $310,000.00 PEG funds Total Equipment Replacement: $50,579 -> not to exceed $112,000 replacement funds Total: $326,024
Contingency: $95,976
Total Not-to-Exceed: $422,000

EXHIBIT C

QUALIFICATIONS
These Consultant Qualifications, Exhibit “C,” are incorporated by reference into the Agreement, under Agreement Paragraph 6.

What We Do: Audio & Video
ICS Integrated Communication Systems is an AV contractor and audio video integrator. ICS provides audio video and video conferencing design, engineering, project management, programming, systems integration and, installation. Our AV engineering department develops all submittal or shop drawings and works closely with each of the ICS programmers and integrators to make sure our designs are efficient, effective, and easy to use. Our AV engineering department also commissions and verifies that the installation accurately reflects the design requirements. All AV engineering designs are developed within established drawing standards that use a library of templates and assemblies that work within an established design portfolio.

Within the AV field, ICS handles many kinds of installations, such as conference rooms and board rooms, classrooms, theaters, sports venues, athletic field head ends, client briefing, and training centers, multi-media AV presentation systems and video conferencing suites.

Integrated Communication Systems is adept at providing sophisticated integration for our AV projects, which often utilize signal routing, display, sound reinforcement, content streaming or rebroadcast, videoconferencing, and remote control.

Audio & Video Capabilities
ICS Integrated Communication Systems is known for its skill as an AV Contractor in the design, installation, and integration of AV systems.

ICS AV Services Include:
• Audio video systems custom build to specifications, design assist or design/build • Audio video, distance learning or streaming/archival for conferencing and presentation systems
• Custom configuration and programming of remote control AV systems • AV CAD support for architects, consultants, space planners, and general contractors • Development of all AV submittal and shop drawings to established standards, using a library of templates and assemblies
• Complete AV installation documentation, including custom operation guides, O&M manuals, CAD drawings and custom programming files
• AV system commissioning with complete testing utilizing currently accepted high end equipment for audio video and copper or fiber networks
Follow up AV service, warranty and post AV installation support through a dedicated audio video service department
Audio Video Certifications Held By ICS Integrated Communication Systems Because audio video technology is always changing, the ICS Integrated Communication Systems team is known for its devotion to ongoing training and advanced certification in the audio video field. Many of our audio video staff are certified in a wide range of AV products, and together hold over 100 certifications. If an audio video manufacturer or strategic partner that we work with offers AV product training, our audio video project managers enroll and master the curriculum. This ongoing training gives our AV staff the ability to successfully work with any of the audio video products we install, and establishes a face-to-face familiarity with the AV manufacturer when we are seeking assistance on an installation.

EXHIBIT D

PROVISIONS REQUIRED FOR PUBLIC WORKS CONTRACTS
PURSUANT TO CALIFORNIA LABOR CODE SECTION 1720 ET SEQ.

HOURS OF WORK:

A. In accordance with California Labor Code Section 1810, 8 hours of labor in performance of the services described in Exhibit A shall constitute a legal day’s work under this contract.

B. In accordance with California Labor Code Section 1811, the time of service of any worker employed in performance of the services described in Exhibit A is limited to 8 hours during any one calendar day, and 40 hours during any one calendar week, except in accordance with California Labor Code Section 1815, which provides that work in excess of 8 hours during any one calendar day and 40 hours during any one calendar week is permitted upon compensation for all hours worked in excess of 8 hours during any one calendar day and 40 hours during any one calendar week at not less than oneand-one-half times the basic rate of pay.

C. The Consultant and its subcontractors shall forfeit as a penalty to the City $25 for each worker employed in the performance of the services described in Exhibit A for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day, or more than 40 hours in any one calendar week, in violation of the provisions of California Labor Code Section 1810 and following.

WAGES:

A. In accordance with California Labor Code Section 1773.2, the City has determined the general prevailing wages in the locality in which the services described in Exhibit A are to be performed for each craft or type of work needed to be as published by the State of California Department of Industrial Relations, Division of Labor Statistics and Research, a copy of which is on file in the City Public Works Office and shall be made available on request. The Consultant and subcontractors engaged in the performance of the services described in Exhibit A shall pay no less than these rates to all persons engaged in performance of the services described in Exhibit A.

B. In accordance with California Labor Code Section 1775, the Consultant and any subcontractors engaged in performance of the services described in Exhibit A shall comply with California Labor Code Section 1775, which establishes a penalty for each worker engaged in the performance of the services described in Exhibit A that the Consultant or any subcontractor pays less than the specified prevailing wage. The amount of such penalty shall be determined by the Labor Commissioner and shall be based on consideration of the mistake, inadvertence, or neglect of the Consultant or subcontractor in failing to pay the correct rate of prevailing wages, or the previous record of the Consultant or subcontractor in meeting applicable prevailing wage obligations, or the willful failure by the Consultant or subcontractor to pay the correct rates of prevailing wages. A mistake, inadvertence, or neglect in failing to pay the correct rate of prevailing wages is not excusable if the Consultant or subcontractor had knowledge of their obligations under the California Labor Code. The Consultant or subcontractor shall pay the difference between the prevailing wage rates and the amount paid to each worker for each calendar day or portion thereof for which each worker was paid less than the prevailing wage rate. If a subcontractor worker engaged in performance of the services described in Exhibit A is not paid the general prevailing per diem wages by the subcontractor, the Consultant is not liable for any penalties therefore unless the Consultant had knowledge of that failure or unless the Consultant fails to comply with all of the following requirements:

1. The contract executed between the Consultant and the subcontractor for the performance of part of the services described in Exhibit A shall include a copy of the provisions of California Labor Code Sections 1771, 1775, 1776, 1777.5, 1813, and 1815.

2. The Consultant shall monitor payment of the specified general prevailing rate of per diem wages by the subcontractor by periodic review of the subcontractor’s certified payroll records.

3. Upon becoming aware of a subcontractor’s failure to pay the specified prevailing rate of wages, the Consultant shall diligently take corrective action to halt or rectify the failure, including, but not limited to, retaining sufficient funds due the subcontractor for performance of the services described in Exhibit A.

4. Prior to making final payment to the subcontractor, the Consultant shall obtain an affidavit signed under penalty of perjury from the subcontractor that the subcontractor has paid the specified general prevailing rate of per diem wages for employees engaged in the performance of the services described in Exhibit A and any amounts due pursuant to California Labor Code Section 1813.

C. In accordance with California Labor Code Section 1776, the Consultant and each subcontractor engaged in performance of the services described in Exhibit A shall keep accurate payroll records showing the name, address, social security number, work, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed in performance of the services described in Exhibit A. Each payroll record shall contain or be verified by a written declaration that it is made under penalty of perjury, stating both of the following:

1. The information contained in the payroll record is true and correct.

2. The employer has complied with the requirements of California Labor Code Sections 1771, 1811, and 1815 for any work performed by the employer’s employees on the public works project.

The payroll records required pursuant to California Labor Code Section 1776 shall be certified and shall be submitted directly to the Labor Commission, and available for inspection by the Owner and its authorized representatives, the Division of Labor Standards Enforcement, the Division of Apprenticeship Standards of the Department of Industrial Relations and shall otherwise be available for inspection in accordance with California Labor Code Section 1776.

D. In accordance with California Labor Code Section 1777.5, the Consultant, on behalf of the Consultant and any subcontractors engaged in performance of the services described in Exhibit A, shall be responsible for ensuring compliance with California Labor Code Section 1777.5 governing employment and payment of apprentices on public works contracts.

E. In case it becomes necessary for the Consultant or any subcontractor engaged in performance of the services described in Exhibit A to employ for the services described in Exhibit A any person in a trade or occupation (except executive, supervisory, administrative, clerical, or other non-manual workers as such) for which no minimum wage rate has been determined by the Director of the Department of Industrial Relations, the Consultant or subcontractor shall pay the minimum rate of wages specified therein for the classification which most nearly corresponds to services described in Exhibit A to be performed by that person. The minimum rate thus furnished shall be applicable as a minimum for such trade or occupation from the time of the initial employment of the person affected and during the continuance of such employment.

Item D. 13.

DATE 12/14/2023
TO Honorable Mayor and City Council Members
FROM Tonya Connolly, Maintenance Superintendent
SUBJECT Adopt a resolution authorizing the purchase of two dump trucks for the Public Works Department Maintenance Division directly from an auto dealership and amending the 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024
SUMMARY AND RECOMMENDATION
The Maintenance Division of the Public Works Department has a dump truck that has reached the end of its useful life and is need of an additional dump truck to service City parks and facilities. These vehicles are required to be equipped with specialized lighting, a cone holder, and specified vehicle markings. There are two models that can fulfill the City's needs: 1) A Chevrolet Silverado 3500; and 2) A Ford F350. Given current market conditions, staff has determined that it is necessary to make the purchases directly through a dealership in order to obtain the best available market price in a reasonable timeframe. The Equipment Replacement Fund includes sufficient funding for the replacement dump truck purchase. The Capital Improvement Plan includes $80,000 of appropriation for the purchase of a new dump truck under Project 1318 but an additional amount of $50,000 is required for the current purchase price and outfitting of this vehicle.

Staff recommends that the City Council, by resolution, approve the purchase of two dump trucks for the Maintenance Division of the Public Works Department directly from an auto dealership, with single-source findings using Equipment Replacement Fund (701), and amend the 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024.

BACKGROUND
The 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024 includes funding for the purchase of a replacement dump truck for the Maintenance Division as part of the Equipment Replacement Program. Recommendations for vehicle replacements are based on the City's Vehicle Replacement Policy and Procedures Administrative Regulation. The intent of this policy and procedures document is to ensure that the City use and replace vehicles and other motorized equipment in the most cost-effective manner possible. Some of the primary factors considered by staff as part of any replacement recommendation include each vehicle's mileage, age, mechanical condition, body and interior condition, annual usage, department requirements, cost to maintain, and available funding.

The 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024 also includes $80,000 of funding for the purchase of a new dump truck for the Maintenance Division as part of the Capital Improvement Plan, Project 1318. The dump truck would be used to enhance the maintenance and servicing of City parks and facilities. The acquisition of this dump truck is essential to ensure the efficient removal of waste and debris, allowing the Maintenance Division to maintain a clean and safe environment for residents and visitors. City parks play a vital role in the overall well-being of the community and regular maintenance, including debris removal, is crucial to preserving the aesthetic appeal, functionality, and safety of these areas.

Currently, the City's existing fleet of vehicles is inadequate to handle the increasing City parks and landscape maintenance needs.

Due to prolonged market shortages, intergovernmental purchasing is not currently available for these specific vehicles. Additionally, these products are not generally available for a lengthy period of time as other entities often purchase them as soon as they become available. Staff is seeking approval to purchase two new dump trucks, either a Chevrolet Silverado 3500 or a Ford F350, directly from an auto dealership in order to obtain the best available market price in a timely manner.

DISCUSSION/ANALYSIS
The City's Purchasing Rules and Regulations require a formal bid process for any purchases of $50,000 or more, with certain allowable exceptions. Due to the ongoing industry-wide shortages in semiconductor chips and other critical parts the 2024 production allocation for Government Fleet was severely limited. Based on current market and economic conditions, staff is now requesting approval to purchase two dump trucks, either a Chevrolet Silverado 3500 or a Ford F350, directly from a dealership at the best available market price when the desired vehicle becomes available. At this time, staff is uncertain when the previously utilized intergovernmental procurement process will be available again for such purchases.

Pursuant to Newark Municipal Code Section 3.40.080(B)(9), the City is not required to conduct formal bidding when formal bids would work an incongruity and would be unavailing in affecting the final results and formal bids would not produce any advantage to the city.

Due to the lack of availability of any intergovernmental procurement process and otherwise inability to obtain any bids in response to an RFP process, staff has concluded that this exemption applies. The City will not be able to obtain what is required through formal bidding process and that process will not produce any advantage to the City or affect the final results.

Based on current available pricing, the purchase cost would be an amount not to exceed $110,000 for each new dump truck. The amount reflects slightly higher market prices than would be expected through an intergovernmental or formal bid procurement process, if these processes were available. In better market conditions staff would process, if these processes were available. In better market conditions staff would anticipate individual vehicle costs below the manufacturer's suggested retail price (MSRP), sometimes up to 10% below depending on the vehicle. With the current market however, staff anticipate costs, at minimum, to be 10% above the MSRP.

The purchase price does not include outfitting which is not to exceed $20,000 for each new dump truck. The total outfitting cost is based on specialized vendor quotes for the installation of specialized lighting, cone holders, and specified vehicle markings.

FISCAL IMPACT
The 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024 includes sufficient funding in the Equipment Replacement Fund (701) in the amount of $130,000 for the purchase and outfitting of a replacement dump truck. The 2022-2024 Biennial Budget and Capital Improvement Plan also includes Dump Truck (3.5-ton), Project 1318, for the purchase of a new dump truck. However, the original budget for Project 1318 was $80,000. A budget amendment in the amount of $50,000 is necessary to provide for the full cost of the purchase and outfitting of the additional dump truck. The outfitting work would be performed by Classic Graphics with funding approved in advance of such work by the City Council.

REVIEW AND APPROVAL
Prepared by - Tonya Connolly, Maintenance Superintendent Reviewed by - Soren Fajeau, Public Works Director
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Dump Truck Resolution
(TCR1)
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AUTHORIZING THE PURCHASE OF TWO DUMP

TRUCKS FOR THE MAINTENANCE DIVISION OF THE

PUBLIC WORKS DEPARTMENT DIRECTLY FROM AN
AUTO DEALERSHIP; AND AMENDING THE 2022-2024

BIENNIAL BUDGET AND CAPTIAL IMPROVEMENT PLAN
FOR FISCAL YEAR 2024
WHEREAS, the 2022-2024 Biennial Budget and Capital Improvement Plan includes $130,000 in funding in Fiscal Year 2024 for the purchase of a replacement dump truck for the Maintenance Division of the Public Works Department as part of Equipment Replacement Program (Fund 701), and
WHEREAS, the 2022-2024 Biennial Budget and Capital Improvement Plan includes $80,000 in funding in Fiscal Year 2024 for the purchase of a new additional dump truck for the Maintenance Division of the Public Works Department as part of the Capital Improvement Plan under Dump Truck (3.5-ton) Project 1318; and
WHEREAS, due to industry-wide market conditions for new vehicle purchases and the lack of intergovernmental purchase options, the City of Newark will need to purchase vehicles directly from a dealership in order to obtain the best available market price; and WHEREAS, the City requires one of two models of dump trucks: 1) A Chevrolet Silverado 3500; and 2) A Ford F350; and
WHEREAS, pursuant to Newark Municipal Code Section 3.04.080.B.9, formal bidding procedures shall not apply When formal bids would work an incongruity and would be unavailing in affecting the final results and formal bids would not produce any advantage to the city; and
WHEREAS, the anticipated market price for each new dump truck is $110,000; and WHEREAS, each dump truck will require equipment outfitting based on quotes not to exceed $20,000. Equipment outfitting work shall be provided by Classic Graphics with all funding subject to approval by the City Council prior to the start of services.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby authorizes the purchase of two dump trucks, a Chevrolet Silverado 3500 and/or a Ford F350, for the Maintenance Division of the Public Works Department at the best available market pricing among dealerships in an amount not to exceed $130,000 for each truck.

BE IT FURTHER RESOLVED that the City Council of the City of Newark hereby approves an amendment to the 2022-2024 Biennial Budget and Capital Improvement Plan to allocate and additional $50,000 of unallocated Capital Improvement Plan fund to Dump Truck (3.5-ton), Project 1318, as follows:
(TCR1)
Account Description Amount
To: 610.90.094.940.6221.CIP1318 CIP Project 1318 $50,000 From: 610.3000 Unappropriated Fund Balance $50,000
Item D. 14.

DATE 12/14/2023
TO Honorable Mayor and City Council Members
FROM Steven Turner, Community Development Director
SUBJECT Adopt a resolution authorizing the City Manager to execute the second amendment to the Contractual Services Agreements with Community Planning Collaborative and authorizing amendment of the 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024 to provide funding for consultant services related to the 2023-2031 Housing Element
SUMMARY AND RECOMMENDATION
In 2022, the City entered into a Contractual Services Agreement (CSA) with Baird + Driskell Community Planning (Consultant) to assist the City with preparing the 2023-2031 Housing Element. In April 2023, the City Council adopted Resolution 11,483, which authorized the execution of Amendment No. 1 to the CSA. The Consultant has made significant progress on their respective scope of services.

However, the Consultant did not anticipate the extended amount of time and effort necessary to complete certain tasks. The unanticipated extra time and effort to complete the Housing Element requires a budget augmentation.

Staff recommends that the City Council approve a resolution authorizing the City Manager to execute the second amendment to the Contractual Services Agreements with Community Planning Collaborative (formerly known as Baird + Driskell Community Planning) and authorize an amendment of the 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024 to provide funding for consultant services related to the 2023-2031 Housing Element.

BACKGROUND
The City has relied upon professional consultants to provide services and experience where city staff lacks expertise, such as technical traffic and circulation studies and environmental review services, as well as capacity during busy periods or when staff resources are low. For example, the City currently has several contractual service agreements with consultants for on-call professional city planning services, public works construction inspection, and civil engineering development plan review services.

These consultant services agreements provide the City with the flexibility to address service and experience needs while efficiently maintaining high customer service levels.

The Community Development Department (CDD) requires technical assistance related to updating the General Plan’s Housing Element. The City Council has previously approved a CSA with Baird + Driskell Community Planning to prepare the 2023-2031 Housing Element and related project management services for a not-to-exceed amount of $182,974. In April 2023, the City Council approved Amendment No. 1 to the CSA to increase the not-to-exceed amount to $280,724.00. Earlier this year, Baird + Driskell Community Planning changed their name to Community Planning Collaborative.

Community Planning Collaborative worked with city staff throughout 2022 and 2023 to prepare the Housing Element Update. Key accomplishments include:

Community outreach and engagement, including preparation of a dedicated Housing Element Update website (www.newarkhousingupdate.org), a city-wide affordable housing survey, community meetings and stakeholder interviews, and preparation of outreach materials (advertising flyers, poster boards, social media postings).

Technical assistance and coordination of Newark-specific data related to population, demographics, housing needs, market conditions, 2020 Decennial Census data and other sources to produce an Affirmatively Furthering Fair Housing analysis that is a requirement of the Housing Element Update.

Preparation of Housing Element goals, policies, and quantified objectives.

Preparation and release of the Draft 2023-2031 Housing Element on February 27, 2023, for a 30-day public review period and to the State of California's Housing and Community Development (HCD), the department responsible for reviewing and ultimately certifying the Housing Element Update, for an initial 90-day review period in April 2023.

Preparing and distributing subsequent drafts for public and HCD review in August and October 2023.

Preparing responses to HCD's comments and revising draft documents.

Coordinating public hearing efforts, including work related to the Planning Commission review and the City Council's adoption of the Housing Element Update in October 2023.

DISCUSSION/ANALYSIS
Although significant progress has been made to the Housing Element Update, an additional budget augmentation to complete the previously identified scope of services is necessary. The budget argumentation is necessary due to the additional time and effort needed to revise the Housing Element Update to respond to extensive comments from HCD. Although city staff and the Consultant submitted a Draft Housing Element Update to HCD in April 2023 that, in staff's opinion, was consistent with all applicable laws and requirements, HCD required specific and numerous revisions, commitments, analysis, and additional housing element programs that HCD states is necessary to achieve full compliance and certification. Over the past seven months, city staff, the Consultant, and HCD representatives have met regularly to revise and improve the Housing Element Update. The extensive project coordination effort, preparation of multiple document revisions, and public input have required more work from the Consultant than was originally anticipated in the CSA and Amendment No. 1. A $114,134.00 budget argumentation for a total not-to-exceed amount of $394,858.00 is necessary due to the unanticipated work described above.

The results of extra work performed by the consultant include the preparation of a Housing Element Update document that the City Council adopted in October 2023. In addition, HCD staff have indicated that only minor, non-substantive revisions are necessary to achieve full compliance and certification by the end of 2023. The Consultant will continue working on tasks described in the CSA through the end of December 2023 and into January 2024.

FISCAL IMPACT
The total not-to-exceed amount for the Second Amendment to the CSA would be increased by $114,134 for a total not-to-exceed amount of $394,876, as described in Attachment 2.

Staff requests authorization to amend the 2022-2024 Biannual Budget and Capital Improvement Plan to appropriate $114,134 from the Community Development Maintenance Fund (Fund 625) for Amendment No. 2 to the Community Planning Collaborative CSA. The Community Development Maintenance Fund was established by Ordinance No. 441 in 2010 to establish a fee for the development and improvement of properties to recover expenses for updating the General Plan and Zoning Ordinance.

The update to the General Plan’s Housing Element is consistent with Ordinance No. 441. The April 2022 CSA is provided in Attachment 3.

ENVIRONMENTAL/PLANNING COMMISSION REVIEW
The staff recommendation is not a "Project" as defined by the California Environmental Quality Act and is therefore not subject to environmental review.

REVIEW AND APPROVAL
Prepared 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
Attachment 1 - City Council Resolution
Attachment 2 - Amendment No 2 Agreement
Attachment 3 - Consultant Services Agreement
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWARK APPROVING AMENDMENT NO.2 TO THE

CONTRACTUAL SERVICES AGREEMENT WITH

COMMUNITY PLANNING COLLABORATIVE AND
AUTHORIZING AMENDMENT OF THE 202 2 - 2 0 2 4

B I E N N I A L B U D G E T A N D C A P I T A L
I M P R O V E M E N T P L A N F O R FISCAL YEAR 2024 TO

PROVIDE FUNDING FO R GENERAL PLAN UPDATES
RELATED TO THE 2023-2031 HOUSING ELEMENT
WHEREAS, the Community Development Department issued a Request for Proposal (RFP) for General Plan updates and related analysis related to the preparation of the 2023-2031 Housing Element (the “Project”); and
WHEREAS, based on staff’s evaluation, Baird + Driskell Community Planning was determined to be a qualified firm for the Project and desired to enter into a Contractual Services Agreement for the Project; and
WHEREAS, on April 14, 2022, the City Council of the City of Newark adopted Resolution 11,334, approving a Contractual Service Agreement (the “Agreement”) with Baird + Driskell Community Planning to perform work associated with the Project and a budget not-to-exceed $182,974; and
WHEREAS, on April 13, 2023, the City Council of the City of Newark adopted Resolution 11,483 approving Amendment No. 1 to the Agreement in the amount of $97,750 for a total not-toexceed amount of $280,724; and WHEREAS, in early 2023, Baird + Driskell Community Planning changed their name to Community Planning Collaborative; and
WHEREAS, Community Planning Collaborative has made substantial progress to complete the scope of services associated with the Project; and WHEREAS, Community Planning Collaborative has requested a budget amendment in the amount of $114,134 to complete the scope of work described in the Agreement.

WHEREAS, staff recommends amending the 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024 appropriating $114,134 from the Development Maintenance Fund (625) to the Project.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby approves Amendment No. 2 to the Contractual Services Agreement with Community Planning Collaborative to increase the not to exceed amount of the Agreement by $114,134 for a total amount not to exceed $394,858.

BE IT FURTHER RESOLVED that the City Council hereby authorizes the City Manager to execute Amendment No.2, attached hereto, in a form approved by the City Attorney.

BE IT FURTHER RESOLVED BE IT FURTHER RESOLVED that the City Manager is authorized to take any actions necessary to effectuate the intent of this Resolution.

BE IT FURTHER RESOLVED that the City Council hereby amends the 2022-2024 Biennial Budget for the Fiscal Year 2024 assigning $114,134 from the Development Maintenance Fund (Fund 625) for the Project as follows:

TO: 625.90.092.920.6220 HOUSING DIVISION PROFESSIONAL SERVICES $114,134 FR: 625.3000 UNALLOCATED FUND BALANCE $114,134
1 SECOND AMENDMENT TO THE CONTRACTUAL

SERVICES AGREEMENT BETWEEN THE CITY OF

NEWARK AND COMMUNITY PLANNING
COLLABORATIVE, FORMELY BAIRD + DRISKELL

COMMUNITY PLANNING
This Second Amendment to Contractual Services Agreement between the City of Newark, a municipal corporation ("City"), and Community Planning Collaborative, a California S Corporation ("Consultant") (sometimes referred to as "Parties") dated May 26, 2022 (the “Agreement”), is entered into as of _______ ___, 2023 for services related to the preparation of the City of Newark Housing Element Update.

RECITALS
WHEREAS, the Parties executed the Agreement for the provision of professional planning services to update the City’s General Plan Housing Element; 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 $114,134.00, for a total not to exceed the amount of $394,858.00 (from a previous not to exceed amount of $280,724.00).

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.
2 City of Newark Consultant
_________________________________ _________________________________ David J. Benoun Joshua Abrams
City Manager Principal
Community Planning Collaborative
Dated: ___________________________ Dated: ___________________________ Attest:
__________________________________
Sheila Harrington
City Clerk
Approved as to Form:
__________________________________
Kristopher J. Kokotaylo
City Attorney
3 EXHIBIT 1

PAYMENT
The consultant team will charge for services according to the following hourly rates for an amount not to exceed $394,878.00. This does not include the optional task “Rezoning of Sites” Baird + Driskell Community Planning Billing Rates
Josh Elsworth, GIS Specialist $165.00
Bowen Close, Creative Director $165.00
Community Planning Collaborative Principals $230.00
Community Planning Collaborative Sub-consultant: Bay Area Economics (BAE) Paul Peninger an amount not to exceed $82,153.00.

The not to exceed the amount of $394,878.00 includes a contingency amount of $2,483.00.00.

Item D. 15.

DATE 12/14/2023
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT Adopt a resolution approving reappointment of Eric Hentschke to the Alameda County Mosquito Abatement District
The Alameda County Mosquito Abatement District works to improve the health and comfort of Alameda County residents by controlling mosquitoes and limiting the transmission of mosquito-borne diseases. The District is governed by a Board of Trustees consisting of fourteen members. One trustee is appointed by the city council for each of the thirteen incorporated cities within the District and the Board of Supervisors of Alameda County appoints one trustee representing the County-at-large.

The Board of Trustees determine the general policies to be followed, employs the District manager, approves the annual budget, and controls the expenditures. Each fiscal year, the Board determines the rates of the special tax and benefit assessment that will be levied upon property owners.

Eric Hentschke was originally appointed to serve as Newark's representative to the Alameda County Mosquito Abatement District in 2016. Mr. Hentschke was subsequently reappointed to another 4 year term that will expire on January 31, 2024. Mr. Hentschke has requested a four-year reappointment, which Mayor Hannon has approved.

City staff recommends that the City Council, by resolution, approve the Mayor's reappointment of Eric Hentschke to the Alameda County Mosquito Abatement District.

Attachments
Resolution
Shr
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK APPROVING THE REAPPOINTMENT OF ERIC

HENTSCHKE TO THE ALAMEDA COUNTY MOSQUITO

ABATEMENT DISTRICT
WHEREAS, Eric Hentschke’s term on the Alameda County Mosquito Abatement District expires in January; and
WHEREAS, Eric Hentschke has requested a four year reappointment to serve as the City of Newark’s representative on the Alameda County Mosquito Abatement District; WHEREAS, the Mayor of the City of Newark has reappointed Eric Hentschke to the Alameda County Mosquito Abatement District for a term expiring on January 31, 2028; NOW, THEREFORE, BE IT RESOLVED that said reappointment is hereby approved by the City Council of the City of Newark.

Item E. 1.

DATE 12/14/2023
TO Honorable Mayor and City Council Members
FROM Steven Turner, Community Development Director
SUBJECT Public Hearing to consider introducing an ordinance adding Chapter 17.15 to the Newark Municipal Code to establish the By Right Housing (-BRH) Overlay District, amending the Newark Zoning Map by applying the -BRH Overlay District to specific parcels, and making related miscellaneous amendments to Title 17, Zoning, of the Newark Municipal Code
SUMMARY AND RECOMMENDATION
State law requires that cities and counties update their General Plan Housing Element every eight years. Staff prepared an update to the Housing Element of the General Plan to affirmatively further fair housing and accommodate the City's 1,874-unit Regional Housing Needs Allocation (RHNA) for the Sixth Cycle 2023-2031 Housing Element cycle (the Housing Element Update). At their regular meeting on October 24, 2023, the Planning Commission held a public hearing and adopted a resolution recommending that the City Council adopt the Housing Element Update and Safety Element.

At their regular meeting on October 26, 2023, the City Council held a public hearing and considered the Planning Commission’s resolution recommending that the City Council adopt the Housing Element Update and the Safety Element. The City Council voted unanimously to approve the Planning Commission’s recommendation and adopt the Housing Element Update. The Housing Element update identified sites that could be developed with housing. Some of these sites were "reused" sites from prior housing elements. State law provides that these "reused" sites be rezoned to allow residential uses "by right" without discretionary review if the project complies with objective standards and at least 20% of the residential units are designated as affordable to lower-income households. The "reused" sites are identified in the Housing Element Update in the proposed ordinance. The amendments to the municipal code to create a By Right Housing Overlay District and other miscellaneous amendments are also provided in the proposed ordinance.

Staff recommends that the City Council adopt an ordinance adding Chapter 17.15 to the Newark Municipal Code to establish the By Right Housing (-BRH) Overlay District, amending the Newark Zoning Map by applying the -BRH Overlay District to specific parcels and making related miscellaneous amendments to Title 17, Zoning, of the parcels and making related miscellaneous amendments to Title 17, Zoning, of the Newark Municipal Code.

BACKGROUND
Government Code Sections 65580, et seq. regulate the use and requirements of housing elements in California. State law requires that cities and counties update their General Plan Housing Element every eight years. State law further requires the current update for jurisdictions in the Association of Bay Area Governments (ABAG) region, which includes the City of Newark, to comply by January 31, 2023.

Staff prepared an update to the Housing Element of the General Plan to affirmatively further fair housing and accommodate the City's 1,874-unit Regional Housing Needs Allocation (RHNA) for the Sixth Cycle 2023-2031 Housing Element cycle (the Housing Element Update). The content of the Housing Element Update is structured for consistency with the requirements set forth in state law. In addition to responding to state law requirements, the Housing Element Update also demonstrates the City’s strategy to meet the City’s locally determined housing needs and how these needs are addressed through policies and programs outlined within the Housing Element Update.

Public review and input have been a critical component of the preparation of the Housing Element Update.

At its regular meeting on October 24, 2023, the Planning Commission held a public hearing and considered a staff recommendation and resolution to the City Council for the adoption of the Housing Element Update, as well as an update to the City’s General Plan Natural Hazards Element, to be known as the Safety Element. The Planning Commission voted unanimously (4-0-0-1, Commissioner Fitts absent) to approve the staff recommendation and adopt the resolution that was forwarded to the City Council.

At its regular meeting on October 26, 2023, the City Council held a public hearing and considered the Planning Commission’s resolution recommending that the City Council adopt the Housing Element Update and the Safety Element. The City Council voted unanimously to adopt the Housing Element Update and the Safety Element.

The Housing Element Update contains specifically identified vacant and non-vacant sites (Housing Element Update, Table C-1) that are anticipated to be developed with residential units during the 2023-2031 planning period. Table C-1 includes sites identified in earlier housing element cycles, including the Fourth Cycle (2009-2014) and Fifth Cycle (2015-2023). Specific sites from these previous cycles were included in the Sixth Cycle because of two potential reasons: 1. Residential projects had been previously approved on these sites, and construction of the units is expected to be completed during the Sixth Cycle; or 2. Residential projects have not been developed, proposed, or have existing valid residential development entitlements but are suitable for development during the Sixth Cycle.

Government Code Section 65583.2(c) provides that if a nonvacant site identified in the Fifth Cycle Housing Element, or a vacant site identified in both the Fourth Cycle Housing Element and the Fifth Cycle Housing Element, was not developed with a residential use, that site may only be included in the Sixth Cycle Housing Element if the residential use, that site may only be included in the Sixth Cycle Housing Element if the City rezones the site within a specified period of time to allow residential use by right for housing developments in which at least 20% of the units are affordable to lower-income households. For these housing developments, the City cannot require discretionary entitlements prior to approval of eligible residential projects, but instead, must approve these projects ministerially.

DISCUSSION/ANALYSIS
The adopted Housing Element contains a policy (Policy H3.1) that communicates the City’s intent to amend the Zoning Ordinance to allow ministerial approval of eligible residential projects on specific sites that are reused from the Fourth and Fifth Cycle housing elements:

POLICY H3.1: Allow By-Right Approval of Projects with 20 Percent Affordable Units on “Reused” Sites. Pursuant to AB 1397, amend the Zoning Ordinance to require by-right approval of housing development that includes 20 percent of the units as housing affordable to lower-income households on sites being used to meet the 6th Cycle RHNA that represent “reuse sites” previously identified in the 4th and 5th Cycles Housing Element, and on sites that are subject to a text amendment to accommodate the lower-income RHNA.

Applicable Sites
Consistent with State law, reused Fourth and Fifth Cycle eligible sites include those vacant and non-vacant sites that meet the following criteria:

Allow residential densities of 20 dwelling units per acre; and Can accommodate at least 16 units
The Housing Element Update identifies 26 eligible parcels comprising ten Housing Element Update sites that meet the above criteria (Program H3.6, Table 6-2). The Assessor Parcel Numbers and addresses are identified in Attachment A, Exhibit C, and shown on a map provided in Attachment B.

Qualifying Development
In order for “by-right” development to apply, residential development projects must:

Set aside a minimum of 20 percent of the total units proposed as affordable to lower-income households, consistent with applicable requirements in state law and subject to the provisions of Newark Municipal Code 17.18.060 (Affordable Housing Program, Standards for alternatives to payment of housing impact fee).

Comply with all applicable objective standards and criteria of the zone district where the site is located.

Qualifying residential projects on the identified sites that meet the required criteria, provide a minimum of 20 percent of the units as affordable to lower-income households, and comply with all objective standards would be allowed ministerially “by right” and not require discretionary review. These projects are still subject to Design Review, except that such Design Review is ministerial. A qualifying residential project subject to ministerial review is not considered a “Project” under the California Environmental Quality Act.

Zoning Ordinance Amendments
To implement Policy H3.1, staff is recommending the following amendments to the Newark Municipal Code, Title 17 (Zoning):

Section 17.03.010 (Districts established): modify Table 17.03.010: Base and Overlay Zoning Districts to include By-Right Housing (-BRH) as an Overlay District, and
New Chapter 17.15 – By-Right Housing (-BRH) Overlay District, including Sections

17.15.010 (Purpose), 17.15.020 (Applicability), 17.15.030 (Permitted Uses), and

17.15.040 (Procedures).

The specific Zoning amendments, as summarized above in the “Applicable Sites” and “Qualifying Development” sections above, are provided in Attachment A, Exhibit B.

Sites Rezoned with the -BRH Overlay District
Staff recommends amendments to the Newark Zoning Map by applying the By-Right Housing (-BRH) Overlay District to specific parcels identified in Attachment A, Exhibit C (and provided below in Table 1) into the -BRH Overlay District.

92-30-17-2 6765 THORNTON AVE
92-30-14-3 6717 THORNTON AVE
92-30-16-2 6749 THORNTON AVE
92-30-18-4 6781 THORNTON AVE
92-30-15-2 6733 THORNTON AVE
92-31-16-2 6825 THORNTON AVE
92-31-15 36965 OLIVE ST
92A-900-1-2 36601 NEWARK BLVD
92-29-20-2 36976 MULBERRY ST
92-29-16-2 6537 THORNTON AVE
92-29-19-2 6625 THORNTON AVE
92-29-18-2 6609 THORNTON AVE
92-51-5-3 6716 THORNTON AVE
92-29-17-2 6553 THORNTON AVE
92-29-13 36937 CHERRY ST
92A-2125-17 37900 CEDAR BLVD
92A-2125-11-2 37750 TIMBER ST
92A-2125-13 37640 CEDAR BLVD
92A-2585-32 5545 CEDAR CT
92-50-13 37053 CHERRY ST
92-255-11 37200 SYCAMORE ST
92A-2375-32 38290 CEDAR BLVD
92-131-3 37257 FILBERT ST
92-131-2-4 37243 FILBERT ST
92-131-1-9 FILBERT ST
Findings of Fact
As provided in Section 17.39.080 (Criteria for zoning amendments), the Planning Commission shall not recommend, and the City Council shall not approve amendments to Title 17 unless the proposed amendments meet the following criteria:

1. The amendment is consistent with the general plan;
Any change in district boundaries is necessary to achieve the balance of land uses desired by the city, consistent with the general plan, and to increase the inventory of land within a given zoning district; and

2. The amendment will promote the growth of the city in an orderly manner and to promote and protect the public health, safety, peace, comfort and general welfare.

3. The Findings of Fact applicable to the requested actions are provided in Attachment A, Exhibit A.

Public Notice
Notice of this public hearing with the recommended Zoning amendments was published in the Tri-City Voice on Tuesday, November 28, 2023. Mailed notices were sent to property owners of sites within 500 feet of each parcel to receive the -BRH Overlay District. A mailed notice, with an explanation of the Zoning amendments and the overlay district, was also provided to each property owner with sites that would be rezoned.

FISCAL IMPACT
Adoption of the recommended action would not result in any fiscal impacts to the City in that the action does not provide entitlements for any land use development projects that would result in additional City services or expenditures.

ENVIRONMENTAL/PLANNING COMMISSION REVIEW
The requested actions are exempt from further environmental review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) since the proposed amendments to the Zoning Code and Zoning Map have no potential for causing a significant effect on the environment. The proposed changes to the Zoning Code and Zoning Map do not provide entitlements for any land use development projects, nor do they change the allowed uses of land or the intensity of any previously authorized use of land. Therefore, it can be seen with certainty that adoption of the proposed Zoning Code and Zoning Map amendments will have no significant effect on the environment.

Planning Commission Review
At their regular meeting on November 14, 2023, the Planning Commission held a noticed public hearing to consider a resolution recommending that the City Council adopt amendments to Title 17 for the Project. The Planning Commission voted to adopt Resolution 2009 (5-0).

REVIEW AND APPROVAL
Prepared 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
Attachment 1 - City Council Ordinance
Exhibit A - Findings of Fact
Exhibit B - Municipal Code Amendments
Exhibit C -Parcels to be Rezoned
Exhibit D - Map
Presentation
Ordinance No. ______ 1 of 4
ORDINANCE NO. ______

ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
NEWARK ADDING CHAPTER 17.15 TO THE NEWARK

MUNICIPAL CODE TO ESTABLISH THE BY RIGHT

HOUSING (-BRH) OVERLAY DISTRICT, REZONING

CERTAIN PROPERTY INTO THE -BRH OVERLAY DISTRICT

AND MAKING RELATED MISCELLANEOUS AMENDMENTS
TO TITLE 17, ZONING, OF THE NEWARK MUNICIPAL
CODE.

WHEREAS, The City Council of the City of Newark adopted Resolution No. 9684 adopting a Housing Element Update for the 4
th Cycle period between 2009 and 2014 (the 4th Cycle
Housing Element), which identified housing sites that would accommodate the City’s Regional Housing Needs Allocation (RHNA); and
WHEREAS, The City Council of the City of Newark adopted Resolution No. 10361 approving the amendment to the General Plan by replacing the Housing Element with the Housing Element Update 2015 (for the period between 2015 and 2023), which identified housing sites that would accommodate the City’s Regional Housing Needs Allocation (RHNA); and WHEREAS, the California Legislature has found that “California has a housing supply and affordability crisis of historic proportions. The consequences of failing to effectively and aggressively confront this crisis are hurting millions of Californians, robbing future generations of the chance to call California home, stifling economic opportunities for workers and businesses, worsening poverty and homelessness, and undermining the state’s environmental and climate objectives” (Gov. Code Section 65589.5); and
WHEREAS, State Housing Element Law (Government Code Sections 65580 et seq.) requires that the City Council adopt a Housing Element for the eight-year period 2023-2031 to accommodate the City of Newark’s (City) RHNA of 1,874 housing units, comprised of 464 verylow-income units, 268 low-income units, 318 moderate-income units, and 824 above moderateincome units; and WHEREAS, to comply with State Housing Element Law, the City has prepared the 2023- 2031 Housing Element (the Housing Element) in compliance with State Housing Element Law which establishes the framework for housing goals, policies, and programs and has identified sites that can accommodate housing units meeting the City’s RHNA; and WHEREAS, on October 24, 2023, the Planning Commission adopted Resolution No. 2009, recommended that the City Council adopt a general plan amendment to repeal the Fifth Cycle Housing Element for the period of 2015-2023 and adopt the Housing Element of the General Plan Ordinance No. ______ 2 of 4
for the Period of 2023-2031 and adopt the Safety Element of the General Plan, in compliance with State Housing Element Law; and
WHEREAS, on October 26, 2023, the City Council adopted Resolution No. 11,575, adopting a general plan amendment to repeal the Fifth Cycle Housing Element for the period of 2015-2023 and adopt the Housing Element of the General Plan for the Period of 2023-2031 and adopt the Safety Element of the General Plan, in compliance with State Housing Element Law; and
WHEREAS, certain housing sites identified in the Housing Element Update 2015 were not developed with residential uses during the period between 2015-2022 and it is the City’s desire to “carry over” these certain sites to the Housing Element 2023-2031 to be used as sites that can accommodate housing units meeting the City’s RHNA.

WHEREAS, Government Code Section 65583.2(c) provides that if a nonvacant site identified in the Housing Element Update 2015, or a vacant site identified in both the both the 4 th
Cycle Housing Element and Housing Element Update 2015, was not developed with a residential use, that site may only be included in the Housing Element if the City rezones the site within a specified period of time to allow residential use by right for housing developments in which at least 20% of the units are affordable to lower income households; and WHEREAS, the Housing Element includes26 sites that would be carried over from the Housing Element Update 2015 and identified as sites to accommodate the City’s RHNA.

WHEREAS, the identified carry-over sites are capable to be developed with residential uses having densities of at least 20 units per acre; and WHEREAS, the City desires to amend the Zoning Code by adding Chapter 17.15, By Right Housing (-BRH) Overlay District, to implement the Housing Element and more specifically identify the applicability standards for residential development that may be developed by-right without discretionary review; and
WHEREAS, the City also desires to amend the Newark Zoning Map by applying the By Right Housing (-BRH) Overlay District to specific parcels throughout the City and making other miscellaneous related changes; and
WHEREAS, the adoption of Chapter 17.15, By Right Housing (-BRH) Overlay District and an amendment of the Newark Zoning Map, and other miscellaneous related changes are collectively referred to as the “Project”; and
WHEREAS, a staff report dated November 14, 2023, and incorporated herein by reference, described and analyzed the Project for the Planning Commission; and WHEREAS, on November 14, 2023, the Planning Commission reviewed the staff report at a noticed public hearing on the Project, at which time all interested parties had the opportunity to be heard; and
Ordinance No. ______ 3 of 4
WHEREAS, following the public hearing, the Planning Commission considered the staff recommendation as provided in the staff report, adopted Resolution 2009 incorporated herein by reference, and transmitted the resolution to the City Council; and WHEREAS, a staff report dated December 14, 2023, and incorporated herein by reference described and analyzed the Project for City Council; and WHEREAS, on December 14, 2023, the City Council reviewed the staff report at a duly noticed public hearing on the Project, at which time all interested parties had the opportunity to be heard; and
WHEREAS, pursuant to Newark Municipal Code section 17.31.060 and pursuant to State law, the City published a public hearing notice in The Tri City Voice on November 28, 2023 and mailed as required for a public hearing before the City Council at 7:00 p.m. on December 14, 2023; and
WHEREAS, the City Council fully considered the Project at the public hearing; and WHEREAS, the City Council finds that the Project meets the requisite findings of fact necessary for approval as further explained in the staff report and the recommended findings of fact and determinations associated with this Ordinance, as identified in “Exhibit A” attached to this Ordinance; and
WHEREAS, the location and custodian of the Project application and other documents that constitute a record of proceedings for the Project is the City of Newark, 37101 Newark Blvd., Newark, CA 94560; and
WHEREAS, the City’s General Plan, Zoning Code, and Municipal Code are incorporated herein by reference, and are available for review at City Hall during normal business hours and on the City’s website.

NOW, THEREFORE, the City Council of the City of Newark does ordain as follows:

Section 1. That the forgoing recitals are true and correct and made part of this Ordinance.

Section 2.The Project is exempt from further environmental review under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15061(b)(3) since the proposed amendments to the Zoning Code and Zoning Map have no potential for causing a significant effect on the environment. The proposed changes to the Zoning Code and Zoning Map do not provide entitlements for any land use development projects, nor do they change the allowed uses of land or the intensity of any previously authorized use of land. Therefore, it can be seen with certainty that adoption of the proposed Zoning Code and Zoning Map amendments will have no significant effect of the environment.

Ordinance No. ______ 4 of 4
Section 3: Pursuant to NMC Sections 17.39.070 and 17.39.080, the City Council of the City of Newark does hereby make the findings of fact and determinations required by the City of Newark Municipal Code as further explained in the staff report and set forth in “Exhibit A” attached hereto and incorporated herein by this reference.

Section 4: Title 17. Zoning, of the Newark Municipal Code is hereby amended to add Chapter

17.15, By Right Housing (-BRH) Overlay District, and to make other miscellaneous regulated changes as identified in “Exhibit B”, attached hereto and incorporated herein by reference.

Section 5: The City Council hereby approves an amendment to the Newark General Plan land use and Zoning Map by applying the By Right Housing (-BRH) Overlay District to specific parcels, as identified in “Exhibits C & D”, attached hereto and incorporated herein by reference.

Section 6: If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or its application to any person or circumstance, is for any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases of this Ordinance, or its application to any other person or circumstance. The City Council of the City of Newark hereby declares that it would have adopted each section, subsection, subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more other sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases hereof is declared invalid or unenforceable.

Section 7: Effective Date. This ordinance shall take effect thirty (30) days from the date of its passage. Before expiration of fifteen (15) days after its passage, this ordinance shall be published in The Tri-City Voice, a newspaper of general circulation published and printed in the County of Alameda and circulated in the City of Newark.

Exhibit A
Findings of Fact
Pursuant to Newark Municipal Code Sections 17.39.0760 and 17.39.080, the City Council of the City of Newark does hereby make the findings of fact and determinations required by the City of Newark Municipal Code.

The City Council shall not approve a zoning amendment unless the proposed amendment meets the following criteria:

A. The amendment is consistent with the general plan, in that on October 26, 2023, the City Council of the City of Newark adopted Resolution No. 11,575, adopting a general plan amendment to repeal the Fifth Cycle Housing Element for the period of 2015-2023 and adopt the Housing Element of the General Plan for the Period of 2023-2031 and adopt the Safety Element of the General Plan, in compliance with State Housing Element Law. The 2023-2031 Housing Element contains the following policy related to the recommended action:

POLICY H3.1: Allow By-Right Approval of Projects with 20 Percent Affordable Units on “Reused” Sites. Pursuant to AB 1397, amend the Zoning Ordinance to require by-right approval of housing development that includes 20 percent of the units as housing affordable to lower-income households, on sites being used to meet the 6th Cycle RHNA that represent “reuse sites” previously identified in the 4th and 5th Cycles Housing Element, and on sites that are subject to a text amendment to accommodate the lower-income RHNA.

B. Any change in district boundaries is necessary to achieve the balance of land uses desired by the city, consistent with the general plan, and to increase the inventory of land within a given zoning district. There are no changes to district boundaries proposed as part of the action.

C. The amendment will promote the growth of the city in an orderly manner and to promote and protect the public health, safety, peace, comfort and general welfare, in that the proposed action is necessary to comply with State law and may result in the production of additional housing that is affordable to lower-income households throughout the community.

Exhibit B
Amendments to Title 17 of the City of Newark Municipal Code Additions to Title 17 are shown in redline
Chapter 17 ZONING ORDINANCE

17.03.010 - Districts established.

The city shall be classified into districts or zones, the designation and regulation of which are set forth in this title and as follows:

A. Base Zoning Districts. Base zoning districts into which the city is divided are established as shown in Table 17.03.010, Base and Overlay Zoning Districts.

B. Overlay Zoning Districts. Overlay zoning districts, one or more of which may be combined with a base district, are established as shown in Table 17.03.010, Base and Overlay Zoning Districts.

TABLE 17.03.010: BASE AND OVERLAY ZONING DISTRICTS
Zoning District
Symbol Zoning District Name
General Plan Land
Use Designation Implemented by
Zoning District
Residential Districts
RS Residential Single Family Low Density Residential
RL Residential Low Density Low-Medium Density Residential RM Residential Medium Density Medium Density Residential RH Residential High Density High Density Residential
Commercial and Mixed Use Districts
NC Neighborhood Commercial Neighborhood Commercial
CMU Commercial Mixed Use Commercial Mixed Use
CR Commercial Retail Community Commercial
CC Community Commercial Community Commercial
RC Regional Commercial Regional Commercial
Employment Districts
PO Professional Office Office Commercial
BTP Business and Technology
Park Special Industrial
LI Limited Industrial Limited Industrial
GI General Industrial General Industrial
Public and Semi-Public Districts
PF Public Facilities Public-Institutional
TS Transit Station Public-Institutional
PK Park Parks and Recreation Facilities
OS Open Space Conservation-Open Space
Resource Production District
RP Resource Production Salt Harvesting, Refining, and
Production
Overlay District
-FBC Form Based Code Not Applicable
-PD Planned Development Not Applicable
-OT Old Town Not Applicable
-BRH By-Right Housing Not Applicable
Chapter 17.15 – BY-RIGHT HOUSING (-BRH) OVERLAY DISTRICT

17.15.010 - Purpose.

This overlay district provides supplementary land use, affordable housing requirements, and review procedures for base districts located within the City of Newark. The overlay district implements requirements of state law regarding streamlined review procedures for residential projects identified in the city’s adopted General Plan Housing Element that have been “carried over” from previously adopted housing elements. This district does not modify permitted uses, nor does it restrict property owners from developing projects consistent with the requirements provided in this Title for the base or underlying zone district.

17.15.020 - Applicability.

The standards and regulations of this chapter apply to the planning area designated with the -BRH extension on the Zoning Map. Except as provided in this chapter, all new structures and development, as well as alterations to existing structures, shall comply with the requirements of the base zoning district.

17.15.030 – Permitted Uses.

Any use permitted in the underlying District that is combined with an -BRH Overlay District shall be allowed subject to the procedures of the underlying District, as modified by the -AH district.

17.15.040 – Procedures.

A. Residential Uses Allowed By-Right. Residential projects that comply with all applicable objective standards and criteria of the underlying District, include a minimum of 20 dwelling units per acre, and provide 20 percent of the units in the project as affordable to lower-income households do not require discretionary review under this Title. Lowerincome shall have the same meaning as in Health and Safety Code section 50079.5.

Qualifying projects are still subject to Design Review, except that such Design Review shall be ministerial, notwithstanding anything in NMC Chapter 17.35 to the contrary.

B. Requirements for Affordable Units. The developer of a residential project under this chapter shall comply with the provisions of NMC 17.18.060 for the residential units designated as affordable to lower-income households, consistent with applicable requirements in state law. Where the requirements of state law conflict with the requirements of this Title, state law shall prevail.

Exhibit C
Parcels to be Rezoned with the By Right Housing (-BRH) Overlay District 92-30-17-2 6765 THORNTON AVE NEWARK 94560
92-30-14-3 6717 THORNTON AVE NEWARK 94560
92-30-16-2 6749 THORNTON AVE NEWARK 94560
92-30-18-4 6781 THORNTON AVE NEWARK 94560
92-30-15-2 6733 THORNTON AVE NEWARK 94560
92-31-16-2 6825 THORNTON AVE NEWARK 94560
92-31-15 36965 OLIVE ST NEWARK 94560
92A-900-1-2 36601 NEWARK BLVD NEWARK 94560
92-29-20-2 36976 MULBERRY ST NEWARK 94560
92-29-16-2 6537 THORNTON AVE NEWARK 94560
92-29-19-2 6625 THORNTON AVE NEWARK 94560
92-29-18-2 6609 THORNTON AVE NEWARK 94560
92-51-5-3 6716 THORNTON AVE NEWARK 94560
92-29-17-2 6553 THORNTON AVE NEWARK 94560
92-29-13 36937 CHERRY ST NEWARK 94560
92-51-2-3 6788 THORNTON AVE NEWARK 94560
92A-2125-17 37900 CEDAR BLVD NEWARK 94560
92A-2125-11-2 37750 TIMBER ST NEWARK 94560
92A-2125-13 37640 CEDAR BLVD NEWARK 94560
92A-2585-32 5545 CEDAR CT NEWARK 94560
92-50-13 37053 CHERRY ST NEWARK 94560
92-255-11 37200 SYCAMORE ST NEWARK 94560
92A-2375-32 38290 CEDAR BLVD NEWARK 94560
92-131-3 37257 FILBERT ST NEWARK 94560
92-131-2-4 37243 FILBERT ST NEWARK 94560
92-131-1-9 FILBERT ST NEWARK 94560
¯
Sites to be Rezoned
Parks
Newark City Boundary
0 0.25 0.5 1 mi.

Mowry Ave.

Smith Ave.

Cherry St.

Central Ave.

Thorton Ave. Cedar Blvd.

Newark Blvd.

Willow St.

Thorton Ave.

Mayhews Landing Rd.

Jarvis Ave.

Spruce St.

Haley St.
23 15 17
18 21
22 19
Sycamore St.

Filbert St.
8 - 6765 Thornton Ave.
8 - 6717 Thornton Ave.
8 - 6749 Thornton Ave.
8 - 6781 Thornton Ave.
8 - 6733 Thornton Ave.
9 - 6825 Thornton Ave.
9 - 36965 Olive St.
15 - 36601 Newark Blvd.
16 - 36976 Mulberry St.
16 - 6537 Thornton Ave.
16 - 6625 Thornton Ave.
16 - 6609 Thornton Ave.
16 - 6716 Thornton Ave.
16 - 6553 Thornton Ave.
16 - 36937 Cherry St.
16 - 6788 Thornton Ave.
17 - 37900 Cedar Blvd.
17 - 37750 Timber St.
17 - 37640 Cedar Blvd.
18 - 5545 Cedar Ct.
19 - 37053 Cherry St.
21 - 37200 Sycamore St.
22 - 38290 Cedar Blvd.
23 - 37257 Filbert St.
23 - 37243 Filbert St.
23 - unknown Filbert St.

Old Town Inset
8 9
23 16
16 19
21 Thorton Ave.

Sycamore St.

Cherry St.

Magnolia St.

Mulllbery St.

Olive St.

Bain Ave.

Dairy Ave.

Filbert St.

Ash St.

Site Number / Address
Exhibit D
By-Right Housing Overlay District
and Parcel Rezoning
City of Newark City Council Meeting
December 14, 2023
Agenda
2 1. 2023-2031 Housing Element Overview
• Regional Housing Needs Allocation
• “Carry Over” housing sites from previous housing elements • State requirements for rezoning

2. By-Right Housing Overlay Zoning District
• Applicable sites and qualifying residential development

3. Zoning Ordinance Amendments

4. Sites proposed for rezoning

5. Findings/Notice/Environmental Review

6. Planning Commission and Staff Recommendation
2023-2031 Housing Element Overview
• A plan for the housing needed in a community
• Cities create rules and policies for where housing should go and how housing is developed
• Includes housing goals, policies, and programs
• Emphasis on housing production targets (RHNA)
• Updated every 8 years
• The Housing Element is the only part of the General Plan that must be reviewed and approved by the State
3 2023-2031 Housing Element Overview
• Draft 2023-2031 prepared for public review
• Planning Commission Review: October 24, 2023
• City Council Review: October 26, 2023
• California’s Department of Housing and Community Development review • Certification expected end of December 2023
4 Regional Housing Needs Allocation: Where does it come from? State of California  Region share
(ABAG/MTC)
Region (ABAG/MTC)  Jurisdiction
share (Newark) 441,176 housing units 1,874 housing units 5 Government Code for “Re-Used” Sites: Section 65583.2
• State law requires cities to rezone “reused” sites as “by right” sites • City may include applicable “re-used” sites from previous housing elements in the 2023-2031 Housing Element
• Must allow residential uses and qualifying developments “by right” • Rezoning must occur within one year of the State’s statutory Housing Element adoption deadline (January 31, 2023)
6 Applicable Sites
• Sites must allow residential densities of 20 dwelling units per acre • Sites must be large enough to accommodate a minimum of 16 units The list of applicable Housing Element sites is provided in Attachment 1 to the staff report
• All of the identified sites allow residential as a permitted use 7 8
Qualifying Development
• In a proposed residential project, a minimum of 20% of the units must be set aside for lower-income households
• Projects must comply with all objective standards and site development criteria
Qualifying residential projects on applicable sites would be allowed “by right” without discretionary review. Projects are considered “ministerial”.

Design Review is the discretionary process most affected by the proposed action.

Projects can be reviewed for consistency with objective design standards CEQA review is not be required for ministerial projects. 9 Housing Element Policy H3.1 - summary
• Allow By-Right Approval of Projects with 20 Percent
Affordable Units on “Reused” Sites
• Amend the Zoning Ordinance to require by-right approval of housing development that includes 20 percent of the
units as housing affordable to lower-income households on sites being used to meet the 6th Cycle RHNA that represent “reuse sites” previously identified in the 4th and 5th Cycles Housing Element
10 Zoning Ordinance Amendments
• Section 17.03.010 (Districts established): modify Table 17.03.010:

Base and Overlay Zoning Districts to include By-Right Housing (-BRH) as an Overlay District, and
• New Chapter 17.15 – By-Right Housing (-BRH) Overlay District, including Sections 17.15.010 (Purpose), 17.15.020 (Applicability),

17.15.030 (Permitted Uses), and 17.15.040 (Procedures). 11 Findings of Fact
A. The amendment is consistent with the general plan;
B. Any change in district boundaries is necessary to achieve the balance of land uses desired by the city, consistent with the general plan, and to increase the inventory of land within a given zoning district; and
C. The amendment will promote the growth of the city in an orderly manner and to promote and protect the public health, safety, peace, comfort and general welfare.
12 Public Notice
• Newspaper advertisement: November 28, 2023
• Mailed notice to property owners of affected parcels
• Mailed notice to property owners within 500 feet of each affected parcel
13 Environmental Review
• Requested action is exempt from CEQA, pursuant to Guidelines. • No changes to existing land use
• No changes to the intensity of land use
• No project entitlements would be approved with the requested action • No potential for causing a significant effect on the environment 14 Planning Commission Recommendation
• Planning Commission reviewed the proposed action on
November 14, 2023 and voted 5-0 to approve the staff
recommendation.
15 Planning Commission & Staff Recommendation
Planning Commission and Staff recommend that the City Council adopt an ordinance adding Chapter 17.15 to the Newark
Municipal Code to establish the By Right Housing (-BRH) overlay district, amending the Newark Zoning Map by applying the -BRH Overlay District to specific parcels and making related miscellaneous amendments to Title 17, Zoning, of the Newark Municipal Code.
16 Conclusion
Thank You
&
Questions
17 Item F. 1.

DATE 12/14/2023
TO Honorable Mayor and City Council Members
FROM James Scanlin, Environmental Services Manager
SUBJECT Adopt a resolution authorizing the City Manager to execute a Contractual Services Agreement, in a form approved by the City Attorney, with Ascent Environmental, Inc. for an update to the City's Climate Action Plan and amend the 2022-2024 Biennial Budget and Capital Improvement Plan
SUMMARY AND RECOMMENDATION
The City has a long history of being proactive in addressing the threat of climate change. In 2007, Mayor David W. Smith signed the U.S. Mayor's Climate Protection Agreement, thereby committing the City to taking action for climate protection. The City adopted a Climate Action Plan (CAP) in January 2010. The CAP set a target to reduce Greenhouse Gas (GHG) emissions from activities within the city to 1990 levels by 2020. That target was in line with the State of California's target at that time. The City has taken numerous actions prior to and since the adoption of its CAP to reduce GHG emissions and achieve its reduction target.

Due to the increasing awareness of the threat that climate change poses, the State has adopted much more aggressive GHG reduction targets. The State's current target is to reduce GHG emissions to 40% below 1990 levels by 2030 and achieve carbon neutrality by 2045. Adoption of this resolution will allow the City to conduct an inventory of the GHG reductions achieved and to update its Climate Action Plan (CAP

2.0) to align the City with the State's GHG reduction targets for 2030 and 2045.

Staff recommends that the City Council adopt a resolution to authorize the City Manager to execute a contract with Ascent Environmental, Inc. to update the City's CAP and amend the 2022-2024 Biennial Budget and Capital Improvement Plan.

BACKGROUND
Climate change is the long-term alteration of Earth's average weather patterns. It results from an increase in greenhouse gas emissions, primarily carbon dioxide, methane, and nitrous oxide, which trap heat in the atmosphere. This causes global temperatures to rise, resulting in more frequent and severe weather events, rising sea levels, and disruptions to ecosystems. The effects of climate change are already being experienced in the form of more frequent extreme weather events such as heat waves, heavy rainfall, and flooding. These changes directly affect the quality of life, safety, and access to essential resources for all human beings.

A Climate Action Plan is a comprehensive strategy to mitigate the impacts of climate change and reduce greenhouse gas emissions. The benefits of developing and implementing a Climate Action Plan include:

Mitigation of Climate Change: Climate Action Plans are designed to reduce greenhouse gas emissions, which are the primary drivers of global warming and climate change. By implementing strategies to lower emissions, these plans help slow the rate of global temperature rise.

Improved Air Quality: Many actions to reduce greenhouse gas emissions, such as transitioning to cleaner energy sources and promoting sustainable transportation, also lead to improved air quality. This can have significant health benefits by reducing the prevalence of respiratory illnesses and related healthcare costs.

Renewable Energy Development: Climate Action Plans often promote the adoption of renewable energy sources like solar, wind, and hydropower. This can reduce our dependence on fossil fuels and enhance energy security.

Energy Efficiency: Promoting energy efficiency measures is a key component of Climate Action Plans. These measures reduce energy consumption, lower energy bills for consumers and businesses, and decrease greenhouse gas emissions.

Economic Growth: Climate action can stimulate economic growth by creating new industries and jobs related to renewable energy, energy efficiency, and sustainable agriculture. The transition to a green economy can drive innovation and investment.

Reduction in Energy Costs: Improved energy efficiency and the use of renewable energy sources can lead to reduced energy costs for businesses and households, providing financial relief to individuals and companies.

Enhanced Public Health: A reduction in greenhouse gas emissions and improved air quality can have a direct positive impact on public health by lowering the incidence of respiratory diseases, cardiovascular issues, and other pollution-related health problems.

International Collaboration: Climate Action Plans can contribute to international efforts to combat climate change, demonstrating a country or region's commitment to global climate goals and encouraging collaboration with other nations.

Climate Justice: Climate Action Plans often address issues of climate justice, recognizing that vulnerable communities may be disproportionately affected by climate change. They can incorporate measures to protect and support these communities.

Long-Term Stability: By taking proactive steps to address climate change, Climate Action Plans promote long-term stability and sustainability, reducing the risks and costs associated with severe climate impacts.

Overall, a well-implemented Climate Action Plan is essential for mitigating climate change, safeguarding the environment, fostering economic growth, and improving the quality of life for current and future generations. As of 2019, 202 cities and counties in California have developed Climate Action Plans.

DISCUSSION/ANALYSIS
The City adopted a Climate Action Plan (CAP) in 2010 (Attached). The CAP set a target to reduce greenhouse gas (GHG) emissions from activities within the city to 1990 levels by 2020. This is equivalent to a 15% reduction from 2005 levels. This was in line with the State's target at that time. The CAP included numerous actions the City would consider for implementation. Actions that have been partially or fully implemented include: 1) energy efficiency upgrades at the Silliman Center and the Community Center; 2) green building and landscaping at the Civic Center complex; 3) adopting an environmentally friendly purchasing policy; 4) zero waste for City operations; 5) work from home program for City employees; 6) requiring compressed natural gas (CNG) in the garbage collection contract; and 7) streetlight energy reduction (planned for early 2024). Estimated community-wide reductions based on readily available data are as follows: 1) between 2005 and 2019: passenger vehicle miles traveled (VMT) down by 9%, passenger emissions per mile down by 20%, and commercial VMT down by 19%; 2) between 2005 and 2017: a 10% reduction in residential kWh usage, a 25% reduction in commercial kWh usage, and a 50% reduction in PG&E emissions intensity. Ascent will update these estimates as part of the proposed scope of work.

Staff released a request for proposals to assist the City with developing an update to its 2010 Climate Action Plan. Three proposals were received. Staff reviewed the proposals and Ascent Environmental, Inc. was the top-ranked proposer. The development and adoption of the updated Climate Action Plan (CAP 2.0) is anticipated to take approximately 18 months. The scope of work includes: 1) review of City documents; 2) development of a broad-based community outreach plan; 3) updating the City's GHG inventory; 4) evaluating the reductions achieved to date; 5) evaluate and recommend GHG reduction targets; 6) development of guiding principles and co-benefits; 7) Evaluate and recommend sector-specific GHG reduction goals, strategies, and actions; 8) developing a user-friendly GHG reduction action matrix; 9) develop "model resolution/ordinance" templates; 10) develop an implementation and monitoring plan; and, prepare a public review draft and final CAP 2.0.

Throughout the process of developing CAP 2.0, Ascent and Environmental Services staff will seek input from staff from various City departments, residents, the business community, City Council, and the Planning Commission. The development of CAP 2.0 will allow the City to move effectively and efficiently to reduce GHG emissions.

FISCAL IMPACT
Community Development Maintenance Fees are collected on building permits for the Community Development Maintenance Fees are collected on building permits for the purpose of implementation and maintenance of the General Plan and Zoning Ordinance. The general plan is supplemented by other City plans, including the Climate Action Plan, making this update to the Climate Action Plan eligible for use of Community Development Maintenance Fee revenue.

Staff recommends amending the 2022-2024 Biennial Budget and Capital Improvement Plan to allocate $197,000 of Development Maintenance Impact Fee funds in Fiscal Year 2024 to Climate Action Plan Update, Project 1365.

REVIEW AND APPROVAL
Prepared by - James Scanlin, Environmental Services Manager Reviewed by - Soren Fajeau, Public Works Director
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Ascent Resolution
CAP presentation
Ascent CSA
Newark 2010 CAP
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AUTHORIZING THE CITY MANAGER TO

EXECUTE A CONTRACTUAL SERVICES AGREEMENT
WITH ASCENT ENVIRONMENTAL, INC. FOR AN UPDATE
TO THE CITY’S CLIMATE ACTION PLAN AND AMEND THE
2022-2024 BIENNIAL BUDGET AND CAPITAL

IMPROVEMENT PLAN
WHEREAS, the City developed a Climate Action Plan in 2010 that set a goal of reducing greenhouse gas (GHG) emissions from activities within the city to 1990 levels by 2020; and
WHEREAS, the City wishes to conduct an analysis of the GHG reductions achieved to date and develop an updated Climate Action Plan to align with new State targets of a 40% reduction below 1990 levels by 2030 and to achieve net carbon neutrality by 2045; and WHEREAS, the City released a request for proposal to assist the City in developing an update to its Climate Action Plan, and Ascent Environmental, Inc. submitted the highest ranked proposal; and
WHEREAS, Ascent Environmental, Inc. is well qualified to assist the City with updating its Climate Action Plan.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newark that the City Manager is hereby authorized to execute a Contractual Services Agreement with Ascent Environmental, Inc., in a form approved by the City Attorney, in an amount not to exceed $197,000 to assist with the development of an update to the City’s Climate Action Plan.

BE IT FURTHER RESOLVED by the City Council of the City of Newark hereby approves an amendment to the 2022-2024 Biennial Budget and Capital Improvement Plan to allocate $197,000 of Development Maintenance Impact Fee funds to Climate Action Plan, Project 1365 as follows:

Account Description Amount
To: 625.90.094.940.6221.CIP1365 Development Maintenance Impact Fees $197,000

From: 625.3000 Unappropriated Fund Balance $197,000
December 14, 2023
Climate Action Plan Update
Overview of Presentation
• Background on Climate Change
• Status of the City’s Efforts
• New State GHG Reduction Targets
• Proposed Update to Climate Action Plan
• Integration with Ongoing City Initiatives
City Council: December 14, 2023
Climate Action Planning
Background on Climate Change
Causes: Increase in Greenhouse Gas (GHG) Emissions
• Carbon Dioxide, Methane, Nitrous Oxide
Effects: Long-term Changes in Weather Patterns
• Rising Average Global Temperature
• Rising Sea Level
• Extreme Weather Events: Droughts, Floods
City Council: December 14, 2023
Climate Action Planning
Status of City’s GHG Reduction Efforts
2007: Signed the U.S. Conference of Mayors Climate
Protection Agreement
2010: Adopted a Climate Action Plan Initial Framework
• Energy Efficiency Upgrades
• Civic Center Project
• LEED Certification
• Water Efficient Landscaping
City Council: December 14, 2023
Climate Action Planning
Status of City’s GHG Reduction Efforts (Cont.)
Class 4 Bike Lanes
Polystyrene and Single-Use Bag Bans
Streetlight Energy Reduction (2024)
Organics Recycling
Construction and Demolition Debris Recycling
City Council: December 14, 2023
Climate Action Planning
New State GHG Reduction Targets
40% Below 1990 Emissions by 2030
Carbon Neutral by 2045
City Council: December 14, 2023
Climate Action Planning
Proposed Update to Climate Action Plan
Purpose: Align City Actions with State Targets
Approach: Contract with Ascent Environmental
Scope:
• GHG Emissions Inventory and Projections
• Targets for 2030 and 2045
• CEQA Review: Potential for Permit Streamlining
Schedule: 18-Month Process, Adopt in June 2025
City Council: December 14, 2023
Climate Action Planning
Potential Integration with Ongoing Initiatives
Facilities Master Plan
• Transition to Ava Renewable 100 Service
• Develop Solar Generation Capacity
• Installing Energy Efficiency Software
• Reduced Energy and Water Consumption
City Council: December 14, 2023
Climate Action Planning
Potential Integration with Ongoing Initiatives
Parks Master Plan
• Reduced Emissions from Landscaping Equipment
• Bay Friendly Landscaping/Reduced Water Use
• Applying Compost to Turf
Zero Waste (From 2010 CAP)
• Adopt Zero Waste Policy for City Facilities
• Promote Proper Sorting of Waste
City Council: December 14, 2023
Climate Action Planning
Recommendation:

Staff recommends that Council adopt the Resolution to
authorize the City Manager to execute a Service
Agreement with Ascent Environmental, Inc. to assist with the development of an updated Climate Action Plan.

City Council: December 14, 2023
Climate Action Planning
Questions
and Comments

CONTRACTUAL SERVICES AGREEMENT

CONSULTANTS
This Service Agreement (hereinafter “Agreement”) is made and entered into this day of , 2022 by and between the CITY OF NEWARK, a municipal corporation (“City”), and Ascent Environmental, Inc., a California corporation (“Consultant”), collectively the “Parties”.

W I T N E S S E T H:

WHEREAS, City requested proposals to assist the City with the development of an updated Climate Action Plan.

WHEREAS, in response to City’s request, Consultant submitted a proposal (hereinafter “Proposal”), now on file with the City Environmental Services Manager and incorporated herein by reference; and, after negotiations, Consultant agreed to perform the “Services” more particularly described in Exhibit “A” (“Services”), in return for the compensation described in this Agreement and Exhibit “B”.

WHEREAS, in reliance upon Consultant’s documentation of its qualifications, as set forth in the Proposal, City finds that Consultant has demonstrated the requisite qualifications, experience, training, and expertise to perform the requested Services.

NOW, THEREFORE, the Parties hereto agree as follows:

3. COMPENSATION.

Notwithstanding the foregoing, the combined total of compensation and costs payable hereunder shall not exceed the sum of One Hundred Ninety-Seven Thousand and No/100 Dollars ($ 197,000.00) unless the performance of services and/or reimbursement of costs and expenses in excess of said amounts have been approved in advance of performing such services and/or incurring such costs and expenses by City, evidenced in writing as Additional Services by Task Order (see Section 4. Additional Services of this Agreement).

Invoices shall be sent to:

City of Newark
Public Works Department
37101 Newark Blvd.

C. Payment. Upon receipt of invoice, City shall make payments to Consultant on a monthly basis, or at such other times as may be specified in Exhibit “B”, for Services, which are performed in accordance with this Agreement to the satisfaction of City.

4. ADDITIONAL SERVICES. In the event City desires the performance of additional services not otherwise included within Services, such services shall be authorized by written Task Order approved in advance of the performance thereof. Such Task Order shall include a description of the services to be performed thereunder, the maximum compensation and reimbursement of costs and expenses payable therefore, the time of performance thereof, and such other matters as the Parties deem appropriate for the accomplishment of such services. Except to the extent modified by a Task Order, all other terms and conditions of this Agreement shall be deemed incorporated in each such task order.

6. PERSONNEL. Consultant understands that, in entering into this Agreement, City has relied upon Consultant’s ability to perform in accordance with its representations regarding the qualifications of Consultant, including the qualifications of its Authorized Representative, its designated personnel, and its subconsultants, if any, identified in the Proposal. Therefore, Consultant shall not replace its Authorized Representative, or any of the designated personnel or subconsultants identified in the Proposal, without the prior written consent of City. All Services shall be performed by, or under, the direct supervision of Consultant’s Authorized Representative.

In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the removal of any of Consultant’s designated personnel or subconsultants, Consultant shall, immediately upon receiving notice from City of such desire of City, cause the removal of such person or persons.

7. FACILITIES AND EQUIPMENT. Consultant shall, at its sole cost and expense, furnish all facilities and equipment which may be required for furnishing Services.

8. INFORMATION AND DOCUMENTATION.

12. INSURANCE. Consultant shall procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, his agents, representatives, subconsultants, or employees.

A. Verification of Coverage.

Consultant shall furnish City with original certificates of insurance and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause. The certificates and endorsements for each insurance policy are to be signed by a person authorized by that insurer to bind coverage on its behalf. All certificates and endorsements are to be received and approved by City before work commences. City reserves the right to require and obtain complete, certified copies of all required insurance policies and endorsements at any time. Failure to exercise this right at any time shall not constitute a waiver of right to exercise later. Consultant shall immediately furnish City with certificates of renewal for each policy that is renewed during the term of this Agreement.

B. Minimum Scope of Insurance.

Coverage shall be at least as broad as:

1. Insurance Services Office Form Number CG 00 01 covering Commercial General Liability on an occurrence basis, including products and completed operations, property damage, bodily injury, and personal and advertising inquiry; and

2. Insurance Services Office Form Number CA 00 01 covering Code 1 (any auto), or Code 8 (hired) and Code 9 (non-owned) if consultant has no owned autos; and

3. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance; and

4. Errors and Omissions Liability insurance appropriate to the Consultant’s profession. Architects’ and Engineers’ coverage is to be endorsed to include contractual liability.

C. Minimum Limits of Insurance.

Consultant shall maintain limits no less than:

1. General Liability:
(including products-completed
operations, property damage,
bodily injury, and personal and
advertising injury)
$2,000,000 per occurrence for bodily
injury, personal injury, and property
damage. If a general aggregate limit
applies, either the general aggregate
limit shall apply separately to this
project/location or the general
aggregate limit shall be twice the
required occurrence limit.

2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.

3. Employer’s Liability: $1,000,000 per accident for bodily injury or disease.

4. Errors and Omissions Liability: $1,000,000 per occurrence or claim; $2,000,000 aggregate.

D. Deductibles and Self-Insured Retentions.

Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects to City, its officers, officials, directors, employees, contractors, agents, and volunteers, or (2) Consultant shall provide a financial guarantee satisfactory to City guaranteeing payment of losses and related investigations, claim administration, and defense expenses in an amount specified by the City.

E. Claims Made Policies.

F. Wasting Policies.

No policy required by this paragraph 12 shall include a “wasting” policy limit (i.e. limit that is eroded by the cost of defense).

G. Remedies.

1. Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement;

3. Terminate this Agreement.

H. Acceptability of Insurers.

Insurance is to be placed with insurers with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City. All insurance companies providing coverage to Consultant shall be insurance organizations authorized by the Insurance Commissioner of the State of California to transact the business of insurance in the State of California.

I. Other Insurance Provisions.

The general liability and automobile liability policies are to contain, or be endorsed to contain, the following provisions:

3. Notice of Cancellation. Each insurance policy required above shall provide that coverage and shall not be canceled during the term of this Agreement without notice to the City.

5. Deductibles and Self-Insured Retentions (SIR). All deductibles and self-insured retentions must be disclosed to the City for approval and shall not reduce the limits of liability. Policies containing any SIR provision shall provide or be endorsed to provide that the SIR may be satisfied by either the named Insured or the City.

8. Coverage is Material Element. Maintenance of proper insurance coverage in conformity with the provision of this paragraph 12 is a material element of this Agreement and failure to maintain or renew coverage or to provide evidence of coverage or renewal may be treated by City as a material breach of this Agreement.

13. REPORTING DAMAGES. If any damage (including but not limited to death, personal injury or property damage) occurs in connection with the performance of this Agreement, Consultant shall immediately notify the City Risk Manager’s office by telephone at 510-578-4428, and Consultant shall promptly submit to the City’s Risk Manager and the City’s Administrator (see paragraph 18, hereinbelow) a written report (in a form acceptable to City) with the following information: (a) name(s) and address(es) of the injured or deceased person(s), (b) name(s) and address(es) of witnesses, (c) name(s) and address(es) of Consultant’s insurance company(ies), and (d) a detailed description of the damage(s) and whether any City property was involved.

INDEMNIFICATION/SAVE HARMLESS.

Consultant shall indemnify , hold harmless, and defend the City (including its elected officials, officers, agents and employees) from and against any and all claims, litigation, demands, damages, and liabilities, costs, and expenses, including court costs, attorney fees, experts fees and other costs and fees of litigation or other dispute resolution proceedings (“Claims”) but only to the extent actually caused by Consultant’s negligent or willful misconduct under this Agreement, except Claims arising out of the City’s sole negligence or willful conduct.

In the event that Consultant or any employee, agent, or subconsultant of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERs as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

The provisions of this paragraph are not limited by and do not affect the provisions of this contract relating to insurance.

14. LICENSES, PERMITS, ETC. Consultant represents and warrants to City that it has all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required for Consultant to practice its profession. Consultant represents and warrants to City that Consultant shall, at its sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals which are legally required for Consultant to practice its profession. In addition to the foregoing, Consultant shall obtain and maintain during the term hereof a valid City of Newark Business License.

15. TERM/TERMINATION.

A. The term of this Agreement shall commence upon the date first hereinabove written and shall expire on December 31, 2025. At the end of the term, the City may renew this Agreement for up to one year as authorized by the Public Works Director, City Manager, or City Council.

B. Notwithstanding the provisions of paragraph 16 section A above, City may terminate this Agreement at any time and without cause upon written notification to the Consultant.

Consultant may cancel this Agreement upon thirty (30) day’s written notice to City and shall include in such notice the reasons for cancellation. In the event of such termination, City shall compensate Consultant for Services rendered and reimburse Consultant for costs and expenses incurred, to the date of termination, calculated in accordance with the provisions of paragraph 3.

16. CONTRACT ADMINISTRATION. This Agreement shall be administered by the Public Works Director of the City of Newark (“Administrator”). All correspondence shall be directed to or through the Administrator or his/her designee.

17. NOTICES. Written notices required or convenient hereunder shall be delivered personally or by depositing the same with the United States Postal Service, first class (or equivalent) postage prepaid and addressed, in the case of Consultant, to:

ASCENT ENVIRONMENTAL, INC. CITY OF NEWARK

PUBLIC WORKS DIRECTOR
Honey Walters, Principal Administrator
Address: Ascent Environmental, Inc.
2054 University Ave.

Suite 400
Berkeley, CA
94704
City of Newark
Attn: Public Works Director
37101 Newark Boulevard
Newark, CA 94560

18. PARAGRAPH HEADINGS. Paragraph headings used herein are for convenience only and shall not be deemed to be a part of such paragraphs and shall not be construed to change the meaning thereof.

19. EXHIBITS. All exhibits referred to herein are attached hereto and are by this reference incorporated herein.

20. SEVERABILITY. If any term of this Agreement (including any phrase, provision, covenant, or condition) is held by a court of competent jurisdiction to be invalid or unenforceable, the Agreement shall be construed as not containing that term, and the remainder of this Agreement shall remain in full force and effect; provided, however, this paragraph shall not be applied to the extent that it would result in a frustration of the Parties’ intent under this Agreement.

21. GOVERNING LAW, JURISDICTION, AND VENUE. The interpretation, validity, and enforcement of this Agreement shall be governed by and interpreted in accordance with the laws of the State of California. Any suit, claim, or legal proceeding of any kind related to this Agreement shall be filed and heard in a court of competent jurisdiction in the County of Alameda.

22. ATTORNEY’S FEES. In the event any legal action is commenced to enforce this Agreement, the prevailing party is entitled to reasonable attorney’s fees, costs, and expenses incurred.

23. ASSIGNABILITY. Neither Consultant nor City shall subconsult, assign, sell, mortgage, hypothecate, or otherwise transfer their respective interests or obligations in this Agreement without the express prior written consent of the non-transferring party.

24. MODIFICATIONS. This Agreement may not be modified orally or in any manner other than by an agreement in writing signed by both Parties.

25. WAIVERS. Waiver of breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision of this Agreement.

26. ENTIRE AGREEMENT. This Agreement, including all documents incorporated herein by reference, comprises the entire integrated understanding between the Parties concerning the Services. This Agreement supersedes all prior negotiations, agreements, and understandings regarding this matter, whether written or oral. The documents incorporated by reference into this Agreement are complementary; what is called for in one is binding as if called for in all.

27. SIGNATURES. The individuals executing this Agreement represent and warrant that they have the right, power, legal capacity, and authority to enter into and to execute this Agreement on behalf of the respective legal entities of Consultant and City. This Agreement shall inure to the benefit of and be binding upon the Parties hereto and their respective successors and assigns.

28. COVENANT AGAINST CONTINGENT FEES. Consultant hereby warrants that Consultant has not employed or retained any company or person, other than a bona fide employee working for Consultant, to solicit or secure this Agreement, and Consultant has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon or resulting from the award or formation of this Agreement. For breach or violation of this warranty, City shall have the right to annul this Agreement without liability or, at City’s discretion, to deduct from the Agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift or contingent fee.

IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the day and year first hereinabove written.

CITY OF NEWARK, Ascent Environmental Inc.
a municipal corporation
By By
David J. Benoun, City Manager Honey Walters, Principal
Date Date
Printed Name
Attest:

Sheila Harrington, City Clerk
Date
Approved as to form:

Kristopher Kokotaylo, City Attorney
Date

Climate Action Plan

January 2010 Initial Framework

Prepared by
City of Newark Public Works Maintenance
Division, through a grant provided by the
Bay Area Air Quality Management District
Climate Protection Grant Program
City of Newark
City of Newark Climate Action Plan
Table of Contents

Executive Summary……………………………………………………. ES
Chapter 1: Introduction……………………………………………… 1
Chapter 2: Greenhouse Gas Baseline Inventory 2005………………. 7 Chapter 3: Municipal Action Items………………………………….. 10
Chapter 4: Residential Community Action Items…………………… 18 Chapter 5: Business Community Action Items……………………… 21
Chapter 6: Transportation Planning and Zoning…………………….. 23 Chapter 7: Goals and Monitoring Plan……………………………… 27
Chapter 8: Adaptation……………………………………………........ 30
Appendices:

Appendix A – Lighting Fixture Replacement and Aquatic Center Energy Saving Analysis Report………………………… A-1
Appendix B – Change Maintenance Fleet to CNG Report……………. B-1 Appendix C – Comprehensive Energy Analysis and Strategic Plan for the Silliman Activity and Family Aquatic Center………... C-1
Appendix D – City of Newark Greenhouse Gas Emission Analysis, August 2008………………………………………………. D-1
Appendix E – Community Center 5-Year HVAC Replacement Plan…… E-1 Executive Summary
The City of Newark recognizes that climate change poses a potential threat to the community and to the environment. This City also recognizes that the citizens and businesses of Newark must participate in emission reducing actions if this community is to successfully mitigate the risks posed by climate change. Newark therefore determined that we should reduce the amount of Greenhouse Gas (GHG) emissions from activities taking place within the City. A Climate Action Plan (CAP) is the instrument to establish a framework for the changes necessary to reduce GHG emissions.

This CAP does the following: presents a summary of actions the City has already taken towards the reduction of GHG emissions; summarizes the 2005 emissions inventory; presents actions the City, residents and businesses can take to further reduce emissions; sets reduction goals; and, describes a monitoring plan. This document is meant to be a dynamic document that will evolve and be reevaluated on a regular basis. The measures and programs in the CAP will be implemented over an extended period of time.

Emission reduction goals have been set based on the analyses in this report and on the State’s AB

32. Staff recommends adopting the following overall goals across City and community operations:

1. Set greenhouse gas emissions reduction targets as follows:

A. A 5 % reduction from 2005 Municipal emissions levels by July 2012. This would equal a reduction of 194 metric tons eCO2.

B. A 5% reduction in City and Community emissions by July 2015. This would equal a reduction of 21,680 metric tons of eCO2.

C. A community-wide target of a 15% decrease from 2005 levels by 2020, equal to a reduction of 65,038 metric tons.

Achieving goal C would enable Newark to match the State of California’s goal of 1990 emission levels by the year 2020 (statewide it is estimated that 2005 emissions were 15% higher than 1990 emissions).

2. Incorporate carbon reduction into the City’s General Plan goals to ensure continuity with other City priorities, continued action, and a long-term perspective.

3. Use this Climate Action Plan as a springboard for determining GHG reducing actions to take over the next few years. As possible, it shall be revisited and action steps reformulated at least biennially.

4. Maintain and report GHG inventories on a regular basis.

5. Promote participation by Newark businesses in inventory efforts.

Since 2005, the City of Newark has implemented some emission reduction actions. With these actions, we are about half way to making our 2012 goals. Proposed budget cut measures to be implemented in 2010 will provide energy reductions to surpass our 2012 goal.

Chapter 1: Introduction
Plan Purpose and Development:

The City of Newark recognizes that climate change poses a potential threat to the community and to the environment. Locally, the forecasted changes accompanying climate change could dramatically reduce the availability of hydro-generated electricity, increase the incidence of forest fires, and lead to a rise in the level of San Francisco Bay1 that could impact lower elevation land in
Newark. The residents and businesses of Newark recognize the challenges and appear willing to be part of the solution. We also recognize that activities taking place within the City result in the release of the global warming gases that contribute to climate change. Newark is therefore determined that we should reduce the amount of greenhouse gas (GHG) emissions from activities taking place within the City.

A Climate Action Plan (CAP) helps to identify and evaluate feasible and effective policies to reduce greenhouse gas emissions through a combination of public and private sector policies and programs.

By taking a proactive approach to planning and implementing reduction measures, we can lower our GHG emissions, reduce our energy costs, protect air quality and improve the economy and the environment. This CAP will also address adaptability to climate change effects.

The primary goals of the final CAP are to present a comprehensive inventory of municipal (City government-generated) and community-generated emissions, identify reduction targets, and propose practical steps to reach those targets. The secondary goal of the final CAP is to identify and prepare for the environmental changes associated with climate change, such as the forecasted water level rise of the San Francisco Bay. This CAP will align City goals with State goals.

More specifically, the CAP is intended to achieve the following:

1. Analyze the available data on emissions from both municipal and community activities, to present a comprehensive inventory of emissions from (a) City government operations and (b) community-wide activities.

2. Present this inventory as a baseline against which to measure progress towards reducing GHG emissions.

3. Develop a set of emission reduction goals for municipal operations over the next 1-4 years (short term), from years 4-8 (medium term) and from year 8 and beyond (long term) timeframes.

4. Present actions that the citizens and businesses of Newark can implement in the medium and long-term to help reduce emissions from the Community.

5. Present long-term Planning efforts to layout future development with vehicle trip reduction as an important goal.

1 Palo Alto Climate Protection Plan, 2007.
1 This CAP is meant to be a dynamic document that will evolve, fill in and be re-evaluated on a regular basis. The CAP begins with taking an inventory of emission producing activities in the community and specifically from municipal activity. This inventory is used to evaluate reduction measures that can be taken and to set reduction goals. The CAP recommends multiple actions and timelines with cost analyses where possible. The CAP also establishes a monitoring plan to determine the effectiveness of implemented measures.

The measures and programs in the CAP will be implemented over an extended period of time. This plan recognizes that it may not be possible to implement some of the ideas presented in the CAP with the current economic conditions. Nevertheless, it is important to keep ideas on the table if they could make a cost-effective contribution to reducing emissions at some future time in the life of the CAP.

This CAP also recognizes that the citizens and businesses of Newark must participate in emission reducing actions if this community is to successfully mitigate the risks posed by climate change.

This CAP will pose and promote programs for the municipality and for the community.

Background of Climate Change:

A balance of naturally occurring gases dispersed in the atmosphere determines the Earth’s climate by trapping solar radiation. This phenomenon is known as the greenhouse effect. Modern human activity, most notably the burning of fossil fuels for transportation and electricity generation, introduces large amounts of carbon dioxide and other heat-trapping gases into the atmosphere.

Collectively, these gases intensify the natural greenhouse effect, causing global average surface temperature to rise, which is in turn expected to affect global climate patterns.

Evidence suggests that human activities are increasing the concentration of greenhouse gases in the atmosphere. In response to the threat of climate change, communities worldwide are voluntarily reducing greenhouse gas emissions2. In 1997, the Kyoto Protocol was initiated as an international effort to coordinate a global effort and more recently in 2009, leaders from around the world met in Copenhagen to discuss global efforts. World leaders have not come up with a global solution, but even without national direction, many states and local agencies have begun taking actions that will address the climate change threats.

The State of California has prepared a CAP that consists of an array of recommendations to reduce GHG emissions. Some of the State legislation is listed below:
¾ In 1988 Assembly Bill 4420 directed the California Energy Commission (CEC) to prepare and maintain the State’s inventory of GHG emissions. ¾ The California Global Warming Solutions Act of 2006, AB32, instructed the California Air Resources Board (CARB) to establish State-wide goals for reducing GHG emissions. The targets established in AB32 Climate Change Draft Scoping Plan are to reduce the emission level to 1990 levels by 2020 and to reduce to 80% below 1990 levels by 2050. The 2050 target is based on what most climate scientists believe will be the needed reductions to avoid dangerous levels of global warming.

2 City of Newark Greenhouse Gas Emissions Analysis Introduction, August 2008. 2 ¾ In July 2002 AB 1493 was approved, also known as the “Pavley Bill” in reference to Assemblywoman Fran Pavley who introduced the bill. This bill instructs CARB to develop and adopt regulations that achieve the maximum feasible and cost-effective reductions of greenhouse gas emissions from motor vehicles. The regulations are not yet approved by the EPA.
¾ SB 375 requires CARB to work with the metropolitan planning organizations to set regional targets for reducing GHG emissions from passenger vehicles. This bill is looking for agencies to use a combination of zoning and transportation planning to reduce vehicle miles traveled. SB 375 was enacted in September 2008 and most agencies are still working to determine what the actual requirements are.

Newark Has Already Taken Action:

In 2007, the Mayor of Newark signed the U.S. Conference of Mayors Climate Protection Agreement which states, “We will strive to meet or exceed Kyoto Protocol targets for reducing global warming pollution by taking actions in our own operations and communities.” In June 2006, the City joined ten other local governments in Alameda County participating in the Alameda County Climate Protection Project (ACCPP). By joining ACCPP, Newark embarked on an ongoing coordinated effort to reduce the emission of gases that cause global warming. ACCPP was launched by the Alameda County Waste Management Authority & Recycling Board (StopWaste.Org) in partnership with the Alameda County Conference of Mayors and ICLEI – Local Governments for Sustainability (ICLEI). In 2007, ICLEI completed the municipal and community inventories for the ACCPP.

The Newark City Council has made Climate Protection a top priority for several years and has committed to address climate protection in numerous arenas including:

1. U.S. Mayor’s Climate Protection Agreement (Resolution #9263, February 8, 2007)

2. International Council of Local Environmental Initiatives (ICLEI) Cities for Climate Protection Campaign (membership effective June 2006)

3. Membership in Joint Venture Silicon Valley’s Climate Protection Taskforce (since inception, April 2007)

4. Environmentally Preferable Purchasing Policy (Draft in place, final will be approved with 2010 Citywide Purchasing Policy Update)

5. Green Building and Construction and Demolition Recycling Ordinance (Ordinance #422, June 14, 2007)

6. Environmentally Friendly Landscape Guide (Original 1989, Resolution #6120; Updated June 14, 2007, Ordinance #422)

7. Cool City member (concurrent with passage of the U.S. Mayor’s Climate Protection Agreement Resolution)

8. Waste Diversion Goals - 50% by 2000 met; 75% by 2015 (Resolution #9560, February 12, 2009)

9. Wood Burning Prohibition per State requirements.

Municipal staff has also already implemented many measures to reduce emissions, such as:
3 1. Lighting retrofits at City Hall, the Silliman Activity and Family Aquatic Center, the Newark Community Center and the Senior Center. Appendix A contains a report analyzing the savings achieved at the Silliman Center and the Community Center.

2. In 2008, the Public Works Parks Maintenance Division reduced water use by 12%. That equates to 7.5 million gallons saved in 2008. The California Energy Commission reports that in California it takes about 4 watt-hours to pump 1 gallon of water from its source to the output3. This water savings translates to 21 tons of reduced eCO2. Although this type of savings would not show in our inventory, it is still a significant savings, with the additional benefit of water conservation.

3. There are currently four (4) Compressed Natural Gas (CNG) vehicles in the fleet.

Appendix B contains a report analyzing the possibility of expanding the CNG fleet and adding other alternative fuel vehicles into the fleet. These vehicles have been in the fleet since 2000.

4. A strategic plan has been prepared for the Silliman Activity and Family Aquatic Center which analyzed energy efficiency options and laid out the strategy for implementing the recommended measures. The report is contained in Appendix C.

5. The City has been using a pavement slurry seal for several years that about one (1) year after application the pavement fades to a light gray color instead of staying black. This type of pavement is considered a cool pavement. Cool pavements help reduce the urban heat island effect4.

6. The 2009 Housing Element was developed using “green” principles- Higher density Housing near Transit, and shopping and it includes transit oriented, mixed use development around the proposed Dumbarton Rail train station.

7. A grant was obtained to complete a Pedestrian and Bicycle Master Plan which is scheduled to be completed October 2010.

8. A grant was obtained to conduct a Bay Trail Realignment Feasibility Study which will allow for a continuous trail on the western edge of Newark. The study will be completed in late 2010.

9. The City of Newark has participated in Regional “smart growth planning efforts”. Two areas, the area around the proposed train station and the Old town area, were designated as “Priority Development Areas” by the Association of Bay Area Governments.

ICLEI Methodology:

Newark has been using the ICLEI methodology to perform our inventory and to measure the effectiveness of proposed reductions. The ICLEI methodology calculates emissions resulting from consumption and waste generation. The ICLEI software is used by over 800 cities around the world.

Other methodologies calculate the full lifecycle of all consumer products in an area. For example, the ICLEI methodology would account for the gas to deliver stock to the grocery stores and the waste associated with the use of products from that store. Other methodologies would also account for the production of those products from the field to the processing plant. The emission inventorying is more of a modeling tool rather then an exact calculation. All methods depend on numerous assumptions. The most important part of modeling emissions inventories is to use a

3 http://www.energy.ca.gov/2007publications/CEC-999-2007-008/CEC-999-2007-008.PDF 4 An urban heat island is an area where hard surfaces such as paving and roofs increase the temperature of the area by 3- 20 degrees. Urban heat islands increase emissions by increasing energy consumption. www.epa.gov/heatisland/about/index.htm
4 consistent method during the tracking periods. ICLEI is continuing to improve their software with new data, emission coefficients and better estimation methods as they become available. ICLEI’s software allows for updating past inventories with the newer versions of their software.

The 2005 inventory was prepared as part of the ACCPP, and ICLEI was trying to prepare not only an inventory for the City, but a countywide inventory. The different municipalities operated different functions; some operate waste water plants, some run their own garbage pick up.

Therefore, any activity that can be associated with a municipality is included in our municipal inventory. For example, the emissions from the City of Newark municipal fleet include emissions from Waste Management’s garbage trucks.

The ICLEI performance-based methodology provides five milestones to assist local governments in developing and implementing local approaches for reducing global warming. The milestone process consists of the following five milestones:

1. Conduct a baseline emissions inventory and emissions forecast

2. Adopt an emission reduction target

3. Develop a Climate Action Plan for reducing emissions

4. Implement policies and actions that will reduce emissions

5. Monitor and verify results
The baseline emissions inventory is summarized in Section 2 of this report and is posted on the City’s website (www.newark.org). Milestones 2 and 3 will be completed with the adoption of this CAP. This report includes recommendations on how to begin work on Milestones 4 and 5.

Newark has slightly modified the 5 milestone approach in that we did not want to adopt a target until the CAP analyzed the effectiveness and the costs of potential reduction measures. The targets shown in this report are based upon the analysis contained in the rest of the report.

Cost Analysis:

Where costs are available, they have been incorporated into the action items. The costs to reduce greenhouse gas emissions are a key component of prioritizing which actions to take in implementing action items from this CAP. Some of these costs would be borne by the City; while other costs, either directly or indirectly, could potentially fall on the end user, or the community.

The process of estimating costs of specific eCO2 reductions requires making some assumptions. The assumptions used in this report are described in each chapter’s cost benefit section. In some instances, the assumptions use information taken from manufacturers’ or other non-peer-reviewed materials and websites, and could not for this study be independently verified. This being the case, the cost benefit analyses should be considered as preliminary only. Additionally, more detailed financial and budgetary analyses should be carried out before many of the actions listed here are implemented.

In many cases the changes required to significantly reduce emissions bear significant costs. Some of the actions listed here have relatively low costs, but also low benefits. However, overall, significant investments will be required, especially surrounding alternative energy opportunities, such as solar 5 power, to achieve significant reductions in emissions. In many instances, however, the benefits of actions extend beyond the climate change issue. For example, while achieving Zero Waste goals will significantly reduce carbon emissions, it will have other benefits in terms of reducing requirements for landfill space and cleaner air. In another example, adopting green building principals will lower emissions from energy use, but also reduce water demand, improve indoor air quality, and enhance overall standards of living. Including these “auxiliary” benefits into the cost benefit analyses was beyond the scope of this project.

The Comprehensive Energy Analysis and Strategic Plan: Silliman Activity and Family Aquatic Center report (Appendix C) has a section that discusses the benefit of financing energy efficiency installations. It states that the cost savings achieved from the reduced energy use can pay the payments for the project loan. There are several financing plans that establish the payment schedule based on the calculated savings therefore effectively providing a no net cost method for installing energy efficiency measures.

Co2 Equivalent:

The greenhouse gas of key concern is carbon dioxide (CO2). GHGs other than CO2 can be converted to “CO2 equivalent” (eCO2) by multiplying the mass of that gas by the “global warming potential” (GWP), which indicates the equivalent greenhouse effect of a pound of the gas as compared to a pound of CO2. Throughout this report, references to greenhouse gas (GHG) emission quantities follow the international convention of using metric tons (2205 pounds) of CO2 or “CO2 equivalent” when referring to non-CO2 greenhouse gases. Sometimes pounds are used when those units are more illustrative. The key GHGs of interest are listed below in Table 1.15 along with their respective global warming potentials.

Table 1.1 Greenhouse Gas CO2 Equivalents5
Gas Symbol Global Warming Potential
(IPCC Second Assessment Report)
Carbon Dioxide CO2 1
Methane CH4 21
Nitrous Oxide N2O 310
Hydrofluorcarbons HFCS 140 – 12,100
Perfluorocarbons PFCS 6,500 – 9,200
Sulfur Hexaflouride SF6 23,900

5 City of Palo Alto Climate Action Plan, 2007.
6 Chapter 2: Greenhouse Gas
Baseline Inventory - 2005
In 2005, the Newark community emitted approximately 433,860 metric tons of eCO2. Some of the highlighted statistics include:
► Per capita, in 2005, Newark emissions are estimated at 10.5 metric tons, which is slightly lower then the statewide average. (See State information below.) ► Of the total community emissions, the City of Newark municipal operations accounted for 3,880 metric tons or only about 0.9% of the total community emissions.

The complete inventory can be found in Appendix D.

Community Emissions Profile. The Newark community - businesses, residents and workers produce greenhouse gas emissions in a wide variety of ways. These include:

1. General economic and domestic activity which consumes electricity and natural gas to power and heat homes and businesses.

2. Non-commute travel on local roads.

3. Commuting by residents to their job within and outside of City limits, and by nonresidents commuting into the City for work. In this way, the “community” of Newark includes workers who come to the City for employment, but do not reside within city limits.

4. Production of waste material which, when landfilled, decomposes and in the process produces methane, a potent greenhouse gas.

Of the 44.4% emissions from the Transportation sector shown in the graph below, 54.6% of that is from the State highways that run adjacent to Newark. That means that about 24% of the total emissions for Newark come from the State highway.

Community Greenhouse Gas (GHG) Emissions by
Figure 2.1 shows the breakdown of the Sector (2005)
community emissions.

Residential

10.9%
Waste

4.3%
Commercial /
Industrial

40.4%
Transportation

44.4%
Municipal Emissions Profile. City operations contribute to greenhouse gas emissions through five primary avenues:

1. The use of electricity and natural gas to power and heat City buildings and facilities.

2. The use of gasoline, compressed natural gas, diesel fuel and other fossil-based fuels to power vehicles, equipment, compressors and other machinery. 7 3. The use of electricity and natural gas used to transmit water and sewage in and out of the City.

4. Emissions from the collection and disposal of waste from City facilities.

5. Public lighting, such as street lights.

Government Operations GHG Emissions by
Sector (2005)
Vehicle Fleet

32.8%
Buildings

42.5%
Water 0.8%
Public
Lighting

7.3%
Waste

16.6%
Newark was the only city in the 10 Alameda County cities in the ACCPP whose buildings are emitting more than the vehicle fleet (as noted above, the vehicle fleet includes Waste Management disposal trucks). This indicates that the City should focus on actions that will reduce our emissions from buildings.

Emissions Forecast:
2005 Community Emissions
Growth Forecast by Sector
2005 CO2e
Emissions
(metric tons)
2020 CO2e
Emissions
(metric tons)
Annual
Growth
Rate
Percent Change
from 2005 to
2020
Residential 47,313 52,215 0.659% 10.4%
Commercial / Industrial 175,096 200,310 0.901% 14.4%
Transportation 192,841 241,399 1.509% 25.2%
Waste 18,607 20,535 0.659% 10.4%
TOTAL 433,857 514,459 -- 18.6%
Under a business-as-usual scenario, the City of Newark’s emissions will grow approximately 18.6% by the year 2020. ABAG estimates for population growth were used for the forecast. The population is estimated to grow by 10.3% by 2020. From the chart above, the largest growth in emissions comes from the Transportation sector. This forecast does not include pending regulations on vehicle emissions and it was generated prior to the gasoline prices spiking in 2008.

These two factors can greatly influence the future vehicle emissions. As stated above, a majority of the emissions from the Transportation sector come from the State highway, so it is important that Newark support regional efforts to improve transportation options that reduce highway travel. 8 Emissions Forecast for 2020
0 100,000
200,000
300,000
400,000
500,000
600,000
2005 CO2e
Emissions
(metric tons)
2020 CO2e
Emissions
(metric tons)
Metric Tons CO2e
Waste
Transportation
Commercial /
Industrial
Residential
National and State Data:

According to the U.S. Environmental Protection Agency (EPA), the average American emits 23 metric tons of carbon dioxide into the environment every year; 10 metric tons related directly to driving, home activities, and air travel, and 13 metric tons related to the purchase of products and services. Overall, each person emits 140 pounds of carbon dioxide per day.

Per capita CO2 emissions in California are estimated by the California Energy Commission (CEC) to be approximately 11 metric tons per year. In California, GHG emissions are dominated by carbon dioxide, mostly from combustion of fossil fuels, followed by nitrous oxide, then methane, and then the remaining “high global warming potential” gases, chlorofluorinated refrigerants and sulfur hexafluoride. California GHG emissions are dominated by the transportation sector (41%) with the other sectors being electric power generation (22%), industrial (21%), agriculture and forestry (8%) and other (8%).
9 Chapter 3: Municipal Action Items
The City emissions account for only 0.9% of the total emissions in Newark, but the City needs to take action to lead the community and to be an example of projects that can make a difference.

Chapter 1 listed several actions the City has already implemented that have started to reduce emissions. The following actions are planned for future implementation. Short-term actions are intended to help reach the first goal of a 5% reduction in Municipal emissions by 2012 (See Chapter 7 Goals and Monitoring Plan).

Municipal Action Item 3.1: Cool Roofs
As stated in the introduction, hard surfaces in an urban area contribute to the heat island effect.

Roofs made of reflective material help reduce the head island effect and contribute to improving the energy efficiency of the building. When inquiring about the cost difference between cool roofs and traditional roofs, most roofing contractors have stated that there is not a price difference now that the cool roof materials are readily available.

Short Term –

1. City Hall-Public Works Annex install cool roof in 2009-2010 budget cycle.

Medium Term1. Consider cool roofs for all municipal building roof replacement projects.

Long Term1. Include in the Municipal Building Green Ordinance that all municipal building roofs must be cool roofs.

Municipal Action Item 3.2: Energy Efficient HVAC
Short Term –

1. Install Phase I of the Community Center 5-year HVAC Replacement PlanAppendix E. The City received Community Development Block Grant (CDBGR) and American Recovery and Reinvestment Act (ARRA) funding to install the two package units in the two rental halls. A majority of the Community Center is going to be closed for use beginning in 2010; all of the building except the daycare annex and the weekend rental of the two halls. The modifications to the Community Center’s HVAC and use are estimated to save 100 metric tons of eCO2 annually.

2. Senior Center Closure- eliminates HVAC energy use for the building. This closure is estimated to save 78 metric tons of eCO2 annually.

Although both of these closures are considered temporary, the immediate emissions reductions will count towards our short-term reduction goals.

Medium Term –

1. Analyze all HVAC units being used in the City and plan for replacement with more efficient units at the time of replacement need.
a. City Hall
b. Service Center
c. Fire Stations 1, 2 and 3

2. Implement HVAC options indicated in the Comprehensive Energy Analysis and Strategic Plan: Silliman Activity and Family Aquatic Center – Appendix C. 10 Long Term –

1. As part of the Municipal Building Green Ordinance, require all HVAC units be of a high level efficiency or are powered by green means.

Cost Analysis: In general, an energy efficient HVAC unit tends to cost 20% to 50% more then a less efficient unit. This upfront cost can be quickly recovered through the reduced utility bills.

Possible eCO2 reductions: The reductions depend on the existing units and the level of energy efficiency of the new unit.

Municipal Action Item 3.3: Solar Lighting
Solar power is a fast developing technology. Solar powered lighting needs full exposure to the sun.

Short Term –

1. Install Pedestrian Lights at Lakeshore Park. Two (2) lights will be installed as a sample project funded by the ARRA grant.

Medium Term –

1. Prepare a report called the Solar Lighting Plan that documents a monitoring period of the lighting at Lakeshore Park to monitor the success/failure and determines locations throughout the City where similar solar lighting could replace other area lights.

2. Pursue funding opportunities for additional lights at Lakeshore Park.

Long Term1. Install solar lights in the areas determined in the Solar Lighting Plan.

Cost Analysis: The installation cost of a solar light is about twice the cost of a wired light. There are auxiliary benefits to a solar light; it can be installed as a stand alone feature in a full-sun location where wire is not accessible; there is no wiring to maintain; and since the existing wiring at Lakeshore Park is extremely deteriorated, adding new lights requires full wire replacement.

Possible eCO2 reductions:

1. The current lights being installed are adding the proper pedestrian lighting to a highly used walking trail; they are not replacing existing lights.

2. The possible eCO2 reductions for the citywide plan will be included in the Solar Lighting Plan.

Municipal Action Item 3.4: Cool Pavements
As with cool roofs, cool pavements help reduce the heat island effect. The City has 24.7 million square feet of paved streets.

Short Term –

1. Continue to use slurry seal that fades to gray.

Medium Term -

1. Continue to monitor research on cool pavements.

2. Write a report that specifically applies the ideas presented in the EPA Cool Pavements Study-Task 5 report to the City of Newark and includes cost comparisons.

Long Term -

1. Develop a policy on cool pavements.
11 Cost Analysis: The slurry product we currently use is about 30% less expensive then slurry products that do not fade. Other cool pavement methods such as installed concrete or painting the streets a light color add significant costs to street projects and are not being considered at this time.

Possible eCO2 reductions: The eCO2 reductions realized by this action item would show up as reduced energy bills in all Newark buildings.

Municipal Action Item 3.5: CNG Report Recommendations
The Change Maintenance Fleet to CNG report (Appendix B) discusses options for alternative fuels and concludes that CNG is a good interim solution for the next 20 to 30 years, but the long-term solution is electric vehicles. The electric vehicle technology is still developing and we do not recommend moving in that direction until the technology has been proven.

Short Term -

1. Continue to research grant opportunities to upgrade the current CNG fuel station.

2. Submit a capital improvement project request that will propose to upgrade the current CNG station with an improved compressor and additional stations.

3. Review each vehicle’s potential to be replaced with a comparable CNG vehicle when they require replacement per the Equipment Replacement List.

4. Secure grant funding for upgrading gasoline/diesel vehicles replaced with CNG vehicles.

Medium Term –

1. Begin an information campaign to show Newark citizens the City’s CNG vehicles and what CNG options are available to them.

2. Continue to follow the progress of LNG and Plug-in research.

Long Term –

1. Once technology has been proven, start purchasing electric vehicles at the time of replacement for vehicles.

Cost Analysis: The estimated cost to install the upgraded CNG station is $200,000 to $500,000 depending on the number of stations required.

Possible eCO2 reductions: Changing eleven (11) pick ups to CNG could save the City 45 metric tons of eCO2 a year.

Municipal Action Item 3.6: Silliman Center Strategic Plan recommendations The Comprehensive Energy Analysis and Strategic Plan: Silliman Activity and Family Aquatic Center Report (Appendix C) was prepared to determine cost effective measures to improve the facility’s energy efficiency. The report contains twelve (12) energy conservation measures (ECMs) and two (2) renewable generation options. The report contains a cost analysis with simple payback for each measure and a discussion on financing options. Measures are planned to be implemented as funding becomes available, not with financing.

Short Term1. Pursue grant opportunities to implement measures indicated in the report.

2. Implement ECMs 9 & 10; use existing EMS to reduce peak HVAC load during summer months. This measure will reduce eCO2 by about 2 metric tons per year.

The measure is estimated to cost $1,600.
12 3. As budget allows, install ECM 13; install variable frequency drives (VFD) on the pool filtration system. This measure will reduce eCO2 by about 34 metric tons per year. The measure is estimated to cost $23,704.

Medium Term1. Propose CIP to install ECMs for lighting modifications.

Long Term-

1. Implement all remaining ECMs.

Cost Analysis: See Appendix C.

Possible eCO2 reductions: Implementing the twelve conservation measures and one of the renewable generation options can reduce annual emissions by about 430 metric tons.

Municipal Action Item 3.7: Commuter/Alternative Work Schedules/Work from Home Programs for City employees.

This action aims to get City employees to avoid driving to work alone. Other agencies provide BART tickets, bus passes or commuter checks which reimburse for public transit commuting options.

Short Term1. Evaluate a plan based on job functions and cost considerations. Plan shall consider incentives for walking and biking to work.

Medium Term1. Implement program per the evaluation.

Long Term1. Monitor effectiveness and benefits of program.

Cost Analysis: A cost analysis will be included in the evaluation.

Possible eCO2 reductions: Possible reductions depend upon the number of employees that can participate in the program.

Municipal Action Item 3.8: Explore options in developing a car-sharing and/or bike sharing program for City employees.

Several Bay Area municipalities have established car- and bike-sharing programs. Programs provide cars or bikes for around town transportation or for one-way trips. Analysis for a possible program would have to include research on the needs of employees. Appropriate demand to establish a program may require partnering with other local businesses.

Short Term1. Community Development will continue to research programs to determine a type of program appropriate for Newark.

Medium Term-

1. Prepare program analysis to determine participation and collaboration needs.

Long Term-

1. If determined feasible, implement program based on analysis.

2. Evaluate program effectiveness.
13 Cost Analysis: Program analysis should contain costs related to obtaining equipment and staff time to coordinate the program.

Possible eCO2 reductions: Emission reductions will be determined by participation.

Municipal Action Item 3.9.1: New City Hall site should take into consideration transit availability.

As part of the long-term planning effort for a new City Hall building, staff will consider transit availability.

Municipal Action Item 3.9.2: New City Hall site should take into consideration green construction and functionality.

During design and construction of a possible new City Hall building, engineers and architects must consider green building methods.

Municipal Action Item 3.9.3: Water Conservation.

As part of the planning for a possible new City Hall building, the planners should consider water conservation measures.

The City uses approximately 68 million gallons of water a year at a cost of $234,000. As stated in the introduction of this report, to deliver a gallon of water it takes about 4 watt-hours in California.

As part of the budget cuts, the City will be eliminating watering of 3 neighborhood parks. This will reduce emissions from water delivery by 26 eCO2.

Short Term1. Approve CIP to install drought tolerate landscaping to replace turf in medians on Thornton Avenue and in front of the existing City Hall. These projects will provide examples of drought tolerant landscaping for residents.

2. Consider further water reducing and letting plant material die.

Medium Term1. New City Hall site should take into consideration using reclaimed water for landscape irrigation.

Long Term1. Implement policy that requires all City landscaping to be drought tolerant.

2. Only install turf for play fields.

3. Possible new City Hall building shall implement water conservation measure within the building and in the landscape and exterior design.

Municipal Action Item 3.10: In 2012 the City can negotiate into the garbage collection contract an alternative fuel requirement, strongly encouraging CNG or locally produced LNG.

Short Term –

1. Inform the City’s garbage collection contractor of the City’s greenhouse gas emission reduction goals; and express interest in the contractor’s ability to partner with the City in achieving these goals.

2. Educate ourselves on the green practices of garbage collection contractors.

Medium Term –

1. Negotiate an alternative fuel requirement, strongly encouraging CNG or locally produced LNG, into the City’s garbage collection contract.

Long Term –
14 1. Regularly evaluate the contract, and strengthen language as reasonable.

2. Use this contract language as a template for other contracts wherever possible.

Cost Analysis – Unknown. Through the negotiation process, if the contractor deems the cost of providing service with alternative fuels to be higher than that of diesel, a service trade or cost may be involved.

Possible eCO2 reductions: After an agreement has been reached, the emissions reductions will be evaluated.

Municipal Action Item 3.11: Streetlight Energy Reduction.

Continue to research energy reduction options for street lighting, including LED and reduced use.

Short Term -

1. Complete Street Lighting report.

2. Publish Street Lighting report. (will be added to this CAP as a future Appendix)

3. Continue to monitor sample LED installed on main City street.

4. Install an additional LED sample in a residential setting.

5. Continue to monitor other jurisdictions’ demonstration projects.

Medium Term –

1. Collect feedback and continue to monitor performance of sample LEDs.

2. Keep up-to-date on the latest technology and performance tests for LEDs.

3. Research grant and other funding opportunities.

Long Term-

1. Change City Streetlights to reduced energy type.

Cost Analysis: Will be discussed upon completion of Street Lighting Report.

Possible eCO2 reductions: Will be discussed upon completion of Street Lighting Report.

Municipal Action Item 3.12: Prepare energy conservation plans for all city buildings and implement the plans.

Short Term1. Identify buildings in need of plans and determine which can be completed inhouse and which need a consultant’s expertise.

Medium Term-

1. Prepare plans or initiate RFP process.

Long Term-

1. Implement plans.

Cost Analysis: Several companies will prepare preliminary energy analyses for free, but a detailed analysis can cost between $5000 and $20,000.

Possible eCO2 reductions: As stated previously, Newark buildings are the highest emission producer in the city operations, so reduction measures can produce significant energy savings.

Municipal Action Item 3.13: Municipal Green Building Ordinance Short Term
15 1. Monitor the outcomes of discussions regarding legality of ordinances that require more stringent elements than the Building Code and our current Green Building Ordinance.

2. Participate in county and region-wide efforts that aim to achieve consistency in local jurisdictions’ Municipal Green Building Ordinances.

Long Term-

1. Strengthen our Green Building Ordinance as it relates to Municipal Buildings, as appropriate or create a stand alone Municipal Buildings Ordinance.

Municipal Action Item 3.14: Zero Waste for the City Operations Waste diversion is another action that reduces emissions with auxiliary benefits, such as decreasing the size of the landfills, reusing materials instead of depleting resources and produces nutrient rich compost to replenish planted soils.

Short Term-

1. Participate in the effort to accomplish the current goal of 75% diversion in 2015.

Medium Term-

1. Develop a plan to reach a zero waste level for municipal operations.

Long Term

1. Implement Zero Waste Plan for municipal operations.

Cost Analysis: To be discussed in Zero Waste Plan.

Municipal Action Item 3.15: Adopt Environmentally Friendly Purchasing Policy Short Term –

1. Continue to work with stopwaste.org consultants to produce a model policy.

Medium Term –

1. Adopt an Environmentally Friendly Purchasing Policy.

2. Disseminate and discuss the policy with all applicable employees.

Long Term –

1. Monitor the effectiveness of the policy and suggest revisions as needed.

Municipal Action Item 3.16: Update Tree Management Policy to include carbon discussion A healthy urban forest has several benefits, including:
► Reducing the energy consumption associated with air conditioned buildings by providing shade
► Reducing local ambient temperatures by shading paved and dark colored surfaces like streets and parking lots that absorb and store energy rather than reflecting it ► Intercepting and storing rainwater, thereby reducing water runoff volume Trees also provide a GHG reduction benefit through a process called carbon sequestration. A single mature tree can absorb as much as 48 lbs. of carbon dioxide per year.

Medium Term –

1. Add carbon discussion to Tree Management Policy.

Municipal Action Item 3.17: Conduct brown bag lunch trainings for employees to educate employees about GHG reductions.
16 Short Term –

1. Develop desired learning outcomes and curriculum for training.

2. Work with the City’s Human Resources Department to schedule employee training.

3. Work with business partners to provide GHG reduction-related freebies and other incentives to attract employee participation.

Medium Term –

1. Offer training to all employees; aim for 80% non-sworn personnel participation.

2. Consider a contest or other activity to keep employees motivated to learn about and implement additional GHG reduction actions.

Long Term –

1. Offer additional trainings to update employees on the City’s GHG reduction efforts.

2. Encourage and allow employees the opportunity to peer educate.

Cost Analysis: Staff time would be required. At this time, no additional supply or service costs are expected.

Possible eCO2 reductions: After education is provided, the emissions reductions will depend on the number of employees choosing to act and the number of actions taken by each employee. 17 Chapter 4: Residential Community Action Items
The Residential Community emissions account for about 10.9% of the total emissions in Newark.

Residents in Newark probably contribute to about one half of the non-highway transportation emissions or about 10% of the total Newark emissions; resulting with the total Residential Community emissions equaling about 21% of the total emissions in Newark.

The overall plan for Residential Community action is to outreach, encourage and provide incentives when possible. Ordinances such as the Green Building Ordinance can help accomplish this goal.

The Action Items listed below are intended to begin the outreach process and begin the discussion of the long-term goals for emissions reductions. A Residential Climate Task Force should be established to work with the citizens to determine which action items the residential community is willing to embrace and get behind.

Residents also set the tone for the local business communities. Residents can encourage businesses by only patronizing businesses that follow green practices.

Residential Community Action Item 4.1 – Personal Climate Action Plans Just as the City has prepared this Climate Action Plan, each citizen can also create a personal plan.

Sites such as www.green.yahoo.com can help individuals evaluate their carbon footprint and offer ideas on how to reduce their emissions. Understanding where emissions come from and being informed of the simple acts that can reduce those emissions is the basis for individuals to participate in emission reductions.

Action Item 4.1.1. Outreach
a. Attend HOA and other resident group meetings
b. Set-up booths at local events
c. Distribute information through schools
Action Item 4.1.2. Encourage application of other jurisdiction’s successful tools available to residents:
a. Low Carbon Diet
b. Green Neighborhood Challenge
c. Green-Star Households
Residential Community Action Item 4.2 – Encourage use of Alternative Fuel Vehicles (AFVs) Relatively speaking, municipal governments have limited opportunity to affect the technological improvements necessary to increase vehicle fuel efficiency and to lower the carbon content of fuels.

But as residents, employees, business owners, city officials, students, etc., we affect our community’s average fuel efficiency whenever we make a choice regarding the type of vehicle to drive (if we must drive at all). The role of city government and community-based agencies is to promote and provide incentives for low and zero-emissions vehicles as well as create the infrastructure necessary to support low carbon forms of transportation. The state and federal governments also have an important role to play. For example, the Pavley Bill (AB 1493, became state law in 2002) would require significant fuel efficiency improvements in automobiles sold in California and therefore have a direct impact on community-level greenhouse 18 gas emissions. Under the Pavley Bill, the average motor vehicle in 2020 could be expected to emit approximately 16 percent fewer GHG emissions compared with today’s average automobile.

Whether a result of the Pavley Bill, a new piece of state or federal level legislation, or a combination of outreach and incentives at the community level, improved fuel efficiency requirements and the utilization of low-carbon fuels (including electricity) are necessary pieces of the puzzle for our community’s GHG reduction targets. However, the City and its partners and citizens must ensure that low-carbon fuels such as bio-diesel are produced in a manner that does not have negative effects on food supply and that is shown to actually create a GHG reduction benefit when analyzed from a lifecycle perspective.6
Action Item 4.2.1. Outreach
a. Should include that City uses CNG and is looking to
expand CNG fleet.
b. Research on the number of hybrid vehicles that citizens own in Newark.
c. Invite public and private partners to present the benefits of and answer questions about AFVs at local resident
meetings
Action Item 4.2.2. Participate in the region wide electric car network to install plugs in Newark.

Action Item 4.2.3. Through grant opportunities, create incentives for residents to purchase high-efficiency vehicles.

Residential Community Action Item 4.3 – Energy Conservation Using less energy is the most direct way to save energy. A personal climate action plan can help citizens recognize where they could easily reduce their energy use.

Action Item 4.3.1 As part of other outreach programs, prepare information on common ways to use less energy.

Action Item 4.3.2 Connect residents with private and public assistance programs, such as weatherization, PG&E, Energy Star, and Green
Packages
Action Item 4.3.3 Continue to partner with Alameda County, stopwaste.org, and other California agencies to provide energy assessment and recommendation services and incentives to Newark residents.

Residential Community Action Item 4.4 – CaliforniaFirst Program The City is participating in the development of a state-wide program to provide another financing option for homeowners to install energy efficiency measures on their homes. This program is in conjunction with the California Statewide Communities Development Authority and CaliforniaFirst program. Sacramento County has taken the lead in pursuing California Energy Program grant funding to create and administer the program. Stopwaste.org will be the local lead agency, providing all participating Alameda County cities with the action framework.

Residential Community Action Item 4.5 – Increase Residential Recycling and Composting The City of Newark has already set a goal of 75% diversion of waste by 2015. The ultimate goal will be 100% diversion. Residents must make choices to use their recycle and green bins as

6 City of Berkeley Climate Action Plan.
19 efficiently as possible and they must make choices to purchase items that can be recycled or composted.

Residential Community Action Item 4.6 – Water Conservation As discussed earlier in this report, distribution of water requires about 4 watt-hrs per gallon. Water conservation saves energy and helps with the drought problem the State has been facing for the last several years.

Action Item 4.6.1 Research incentive programs for removing water intensive plants and replacing with drought tolerant plants.

Action Item 4.6.2 Outreach regarding drought tolerant landscapes.

Residential Community Action Item 4.7 – StopWaste.org Green Packages RC Action Item 4.4 discusses one of the financing options for homeowners to install energy efficient measures on their homes. Bay Area residents and property owners can use the guidelines that Stopwaste.org is creating to determine which measures are appropriate for their homes. The Green Packages can be used independently of the financing opportunity.

Action Item 4.7.1 Continue to be serve on the Technical Advisory Group of the Green Packages Program.

Action Item 4.7.2 Use the City website and other communication avenues to market the Green Packages Program to residents
Action Item 4.7.3 Consider adding the Green Packages standards and specifications to this document when published.

Residential Community Action Item 4.8 – Multi-family Building Owners Assistance Newark has several building
Action Item 4.8.1 Encourage participation in and educate the multi-family unit property owners of the Green Points Rated (up to three unit apartments) and LEED (four or more units) certification programs
Action Item 4.8.2 If funded, refer owners to the regional Multifamily Green Retrofit Fund for loan assistance to help pay for energy and water reduction capital purchases
Action Item 4.8.3 Partner with owners to encourage their residents’ participation in planned residential actions
20 Chapter 5: Business Community Action Items
Business Community emissions account for 40.4% of the total emissions in Newark. Businesses in Newark probably contribute to about one half of the non-highway transportation emissions or about 10% of the total Newark emissions; resulting with the total Business Community emissions equaling about 50% of the total emissions in Newark. This is the largest single sector which means the largest benefit can come from businesses reducing their emissions.

The overall plan at this time for the business community is outreach starting with a partnership with the Chamber of Commerce.

Business Community Action Item 5.1- Encourage businesses to prepare and make public a Climate Action Plan for their company.

As with the municipal and personal Climate Action Plans, a business can take inventory of their emissions and review their operations for opportunities to reduce GHG emissions.

Action Item 5.1.1 Provide resources for businesses to create Climate Action Plans.

Action Item 5.1.2 Assist businesses with completed Climate Action Plans in information sharing and mentoring activities.

Action Item 5.1.3 Refer businesses to the Bay Area Green Business Program.

Action Item 5.1.4 Recognize businesses with Climate Action Plans Business Community Action Item 5.2- Increase Commercial and Business Recycling, Composting and Waste Reduction
Action Item 5.2.1 Share City’s goal of 75% waste reduction by 2015 with business community; request their support
Action Item 5.2.2 Facilitate information exchange between model businesses and those businesses in need of assistance.

Action Item 5.2.3 Provide green building, retrofit, and recycling information at the City’s information portals i.e. permit counter, website, Channel 26, Community Center(s)
Business Community Action Item 5.3- Consider Plastic Bag and Styrofoam Bans Action Item 5.3.1 Monitor success of other cities in the Bay Area that are enacting these restrictions.

Action Item 5.3.2 Assist businesses in marketing the use of reusable bags for shopping.

Action Item 5.3.3 Pursue grant opportunities to provide reusable bags to residents.

Action Item 5.3.4 Recognize businesses that encourage use of reusable bags and/or replace their Styrofoam use with biodegradable
materials.

Business Community Action Item 5.4- Green Building Standards 21 Action Item 5.4.1 Require all modifications, additions and new buildings built for commercial or industrial purposes to use environmentally preferred building practices.

Action Item 5.4.2 Encourage LEED, HERS, and/or Green Point Rated Certification
Action Item 5.4.3 Provide resources and checklists to obtain green certifications through the City’s Building Department
Business Community Action Item 5.5- Green Fleets
Action Item 5.5.1 Encourage the use of low-carbon emitting vehicles and fuels Action Item 5.5.2 Share the City’s experience with AFVs Business Community Action Item 5.6- Assist businesses in developing and implementing commuter benefits programs
Action Item 5.6.1 Survey Newark businesses about their programs Action Item 5.6.2 Encourage businesses with model programs to peer educate Business Community Action Item 5.7- Water conservation
Action Item 5.7.1 Survey Newark businesses about their water conservation practices.

Action Item 5.7.2 Introduce Bay Area Friendly Landscaping and other successful programs to businesses.
22 Chapter 6: Transportation Planning and Zoning
Transportation accounts for 44.4% of the total emissions in Newark. Over half of that number is from the State highways adjacent to our city, but 20% of the emissions are from local driving. The Climate Action goal of transportation planning and zoning is to reduce vehicle miles traveled (VMT) by encouraging residents and employees to use alternative modes of transit and by improving the effectiveness of the transportation circulation system through land-use and zoning mechanisms. In 2005, the Metropolitan Transportation Commission estimated that 158.17 million vehicle miles traveled (VMT) occurred on Newark roads, emitting approximately 87,601 metric tons of eCO2.
7 Newark has 104 miles of local roads.

The long-term goals of transportation planning and zoning are to:
► Reduce VMT of passenger vehicles to twenty (20%) percent below business-as-usual projections by 20308
.
► Reduce VMT of heavy trucks to ten (10%) percent below business-as-usual projections by 2030.

In the AB32 Scoping Plan the California Air Resources Board points out that in order to meet statewide emission targets, local governments will have to make land use planning and urban growth decisions that minimize emissions. The Scoping Plan recognizes that local governments have the authority in those areas. The Scoping Plan discusses that major urban areas could provide a reduction of up to two percent over business as usual by 2020 with the implementation of planning and zoning emission reduction strategies but recognize that most of the transportation reductions will most likely be in the form of improved green vehicle technologies.9 Newark wants to be fully supportive of state-wide goals and the City will work diligently to implement planning and zoning strategies that will help reduce emissions.

Much of reducing VMT requires individual initiatives and different choices, such as walking, biking, and choosing public transit, instead of driving. Measures to encourage these changes include: incentives, programs, and policies by businesses, agencies, and other organizations. This may include ride sharing programs, subsidized transit passes, and locating employment near transit and activity centers; institutional policies and programs, including K-12 health educational classes and promotional materials and venues; and governmental policies, programs, guidelines, and standards, such as municipal transit policies and zoning code standards that cap the maximum rather than minimum number of parking requirements. Several factors will greatly influence the ease with which actions that reduce VMT can be implemented. These factors include:

Fuel Prices

7 City of Newark Greenhouse Gas Emissions Analysis, August 2008. Page 7. 8 The overall goals of this CAP are focused on 2020, but a 2030 goal is appropriate for discussions around long-term planning efforts. The Brookings Institute estimates that about half of the development that will exist in 2030 will have been built between 2000 and 2030. Brookings Institute. Dr. Arthur C. Nelson. www.citymayors.com/development/built_environment_usa.html 9 California Air Resources Board, 2008 Draft AB 32 Scoping Plan. www.arb.ca.gov/cc/scopingplan/scopingplan.htm.

Accessed January 2010.
23 Rising fuel prices, reduced driving frequency and trip length, whereas fuel price reductions spark an increase in driving. A UC Davis study shows that increasing auto costs by 50 percent decreased VMT by 16 percent.10 It is clear that implementation will be greatly influenced by oil costs and other driving expenses.

Regional and State Collaboration
To achieve the required reduction in VMT, Newark will have to collaborate with other communities within the region, and with the state.

Resistance to Change Driving Patterns
Most drivers resist changing their travel modes. A survey conducted by the 1992 University of California, Irvine, the Orange County Annual Survey asked employed solo drivers to rate their likelihood of changing from solo driving in response to various fees and incentives.

Fewer say they would be very likely to stop solo driving if they were subject to fees than if their employers paid them a cash bonus for no longer driving alone. Incentive or disincentive (% responding that it is very likely that incentive or disincentive would get them to stop driving along): parking fee (20%), smog fee (17%), congestion fee (16%), cash bonus to stop driving (28%), more public transit (33%) more carpools to work (35%).11 Challenges in Integrating Expansion of Transit and Transit-oriented Development Expanded transit with land use intensification around light rail stations generally decreases VMT about 5% with the collateral benefit of decreased travel costs. Generally, increasing land use density succeeds only when walking and biking modes are adequate. Thus, support for implementation will depend on integrating both the form of development and the convenience, economy, safety, and the attractiveness of its mobility systems. Area 2 is planned around a future Dumbarton Rail Station that could utilize these ideas.

Competition with Roadway Infrastructure Improvements
Expanding road capacity generally increases auto travel and therefore, also increases emissions. In particular, new or expanded HOV lanes on freeways increase travel, so both provide significant constraints to other actions that reduce driving. As a result, ease of implementation will depend on other regional and State transportation decisions.

Perceived Threat of Climate Change
A well-documented and significant shift in the observable impact of climate changes - the reporting of the collapse of the Antarctic Ice Sheets, for example - could greatly accelerate the public‘s willingness to change travel behavior, and support governmental policies and standards for reducing emissions. But absent a dramatic climate change event reported by the mainstream media, or a displacement of climate change news by economic or political news, for example, it is less likely the public will change travel behavior.

Realizing Combined Benefits of Land Use, Transit, and Mobility Strategies

10 Chester, Mikhail V., Life-cycle Environmental Inventory of Passenger Transportation in the United States. Institute of Transportation Studies, University of California Berkeley, August 1, 2008. The author‘s website includes related presentations, news coverage, and previous draft versions 11 US Department of Transportation has published more information on Intelligent Transportation Systems (ITS):
www.its.dot.gov, www.itsoverview.its.dot.gov
24 An American Public Transportation Association (APTA) study on public transit and land use found that switching from an auto trip to a transit trip not only saves a certain amount of fuel, but also the presence of transit itself helps create fuel-efficient neighborhoods. APTA found that in transit enabled built environments, people drove less, walked more, and used transit more. The secondary effect was twice the magnitude of the primary effect.12 Thus, educating the public and policy makers on the combined benefits of both land use and transportation strategies will make implementation easier.

Cost
To be successful, residents and businesses will have to participate in efforts to reduce VMT. To achieve the level of participation that is necessary to meet aggressive emissions reductions goals, the City will have to pay for ongoing outreach, education, and marketing.

Investment costs associated with zoning and planning strategies include paying City staff to develop programs that aim to reduce VMT. The ongoing operation and maintenance costs include paying one person of a staff of people to coordinate all of numerous commuter programs and to administer the programs. Depending on how the City develops the programs, the City may not pay for operational costs.

Additional Benefits
Reducing VMT will result in a smaller amount of fuel burned within Newark. Reduced fuel consumption will result in a reduction of not only GHGs but a number of hazardous air pollutants including nitrogen oxides, sulfur oxides, ozone, and particulate matter. Reducing fuel consumption could result in health benefits and improved local and regional air quality. Near-source air pollution impacts have the most serious health consequences and are more akin to occupational exposures.

Transportation emissions are not only diluted and dispersed fairly rapidly, but they evolve even more rapidly. Fresh mobile air pollutants evolve furiously in the first three seconds and subsequently into much less dangerous size, composition, and concentration the first three minutes after exhaust. For example, educational tools can be used to illustrate that those living within 100 yards of major congested highways or City streets can have occupational-scale exposures similar to long-haul truckers, urban delivery van drivers, or diesel rail engineers.13 Planning and Zoning Action Item 6.1:

During the next General Plan update, review and evaluate appropriate transit modes that can decrease the need for personal vehicles for travel within the City. When proposing changes to the transportation system, the City should consider the climate impacts and give preference to solutions that reduce auto dependency and minimize GHG emissions.

Planning and Zoning Action Item 6.2:

Encourage smart growth principles that support higher-density, mixed-use and well-designed development in areas near the proposed future transit station and areas near major bus routes.

Planning and Zoning Action Item 6.3:

12 Journal of Public Transportation. Transit Price Elasticities and Cross-Elasticities. 2004, Vol 7, No. 2, pp. 37-58.

WWW.nctr.usf.edu/jpt/pdf/JPT 7-2 litman.pdf. City of Hayward Climate Action Plan 13 City of Hayward Climate Action Plan. 25 Explore the development of zoning and development standards that consider both the land uses and the urban design and form of buildings and public space, where the new standards will result in reduced GHG emissions.

Planning and Zoning Action Item 6.4:

Explore potential strategies related to the creation of additional affordable housing to sell to buyers employed in Newark, but who currently reside in other areas and commute to work in Newark.

Planning and Zoning Action Item 6.5:

Consider developing and adopting a Buy Local Plan that would give preference to local businesses.

The plan should consider incentives such as marketing and promotion assistance for buy local businesses, continue to support the local farmers market, encouraging residents to grow food in home and community gardens, working with community partners to identify methodologies for tracking and reporting on the rate of local food production and consumption.

Planning and Zoning Action Item 6.6:

Accelerate Implementation of the City’s Bicycle and Pedestrian Plans. Upon completion of the plan in October 2010, explore components whose implementation can be accelerated. This CAP should be updated with the recommendations of the completed plan.

Planning and Zoning Action Item 6.7:

Create ridesharing programs.

Planning and Zoning Action Item 6.8:

Enhance and expand outreach, marketing and education regarding landuse and transportation.

Personal choice underlies many of the transportation-related changes that will have to occur in order for the community to achieve its GHG-reduction goal. Enhancing and expanding current education and outreach efforts is therefore fundamental to this plan. Such efforts are aimed at providing community members with access to information that enables them to make informed choices. For example, specific information about the economic and environmental impact of riding public transit or a bicycle as opposed to driving a car may influence the transportation choices one makes. Along with the City government, regional agencies and local community-based organizations are already playing a key role in providing information that can inform community members’ choices.14

14 City of Berkeley Climate Action Plan.
26 Chapter 7: Goals and Monitoring Plan
Goal Setting
In each of the previous chapters, staff presented and, where possible, evaluated actions for reducing emissions from several of the sectors comprising City and community GHG sources. Many of the recommendations were analyzed on a cost-benefit basis. Emission reduction goals have been set based on the analyses in this report and on the State’s AB 32. Staff recommends adopting the following overall target goals across City and community operations:

1. Set greenhouse gas emissions reduction targets as follows:

A. A 5 % reduction from 2005 Municipal emissions levels by July 2012. This would equal a reduction of 194 metric tons eCO2.
(194 mt eCO2 is equivalent to the emissions from 11,000 gallons of gasoline combined with the energy used in 9 homes.15)

B. A 5% reduction in City and Community emissions by July 2015. This would equal a reduction of 21,680 metric tons of eCO2.
(21,680 mt eCO2 is equivalent to the emissions from 1,230,000 gallons of gasoline combined with the energy used in 985 homes.)

C. A community-wide target of a 15% decrease from 2005 levels by 2020, equal to a reduction of 65,038 metric tons.
(65,038 mt eCO2 is equivalent to the emissions from 3,650,000 gallons of gasoline combined with the energy used in 3000 homes.)
Achieving goal C would enable Newark to match the State of California’s goal of 1990 emission levels by the year 2020 (statewide it is estimated that 2005 emissions were 15% higher than 1990 emissions).

2. Incorporate carbon reduction into the City’s General Plan goals to ensure continuity with other City priorities, continued action, and a long-term perspective.

4. Maintain and report GHG inventories on a regular basis including:
¾ Conducting regular community-wide GHG emission estimates using methodological advances to improve the estimates presented here. ¾ As possible, conduct biannual municipal operations GHG emissions inventory.

15 Equivalencies calculated with EPA’s Greenhouse Gas Equivalencies Calculator (www.epa.gov/cleanenergy/energyresources/calculator.html). The “home” unit is based on the national average single family household energy use. 27 5. Promote participation by Newark businesses in inventory efforts. These efforts should include:
¾ Participating in regional efforts to promote consistent, science-based, reasonable, and transparent GHG inventory accounting.
¾ Working with ICLEI, California Climate Action Registry, California Air Resources Board, US EPA or other broad based organizations who are working on developing new approaches to estimating emissions from refuse (landfills, recycling, composting) activities, water treatment, natural gas distribution systems, and other pertinent and applicable municipal operations. ¾ Identifying and tracking long-term methodology and metrics for measuring progress (e.g. total, net, per-square-foot, per capita, per unit GDP, etc.).

Examples of other jurisdictions’ goals
Jurisdiction Climate Protection
Budget*
GHG reduction target
Berkeley ~$10.1 million
(FY2009,2010
only)
33% below 2000 level by 2020 and 80% below 2000
level by 2050
Chula Vista ~$2.8 million onetime costs; $1.99
million annually
20% below 1990 by 2010; 35% below 1990 level by
2035
Hayward ~$1.3 million 6% below 2005 level by 2013; 12.5% below 2005 level by 2020, 82.5% below 2005 level by 2050
Los Angeles 35% below 1990 level by 2030
Palo Alto 5% below 2005 level by 2012 and 15% below 2005 levels by 2020
Union City Municipal Operations 30% below 2005 level by 2020.

Sacramento 1990 level by 2020, 25% below 1990 level by 2030, 80% below 1990 levels by 2050
San Jose 35% below 1990 level by 2020
Fremont 25% below 2005 level by 2020
Alameda County 80% below 2007 level by 2050
Marin County 15% below 2000 level by 2020
San Francisco 20% below 1990 level by 2012
Sonoma County
(a)
25% below 1990 levels by 2015
State of
California: AB
32 2000 level by 2012, 1990 level by 2020, and 80% below 1990 level by 2050
Kyoto Protocol 1990 level by 2012
U.S. Mayors‘
Climate
Protection
Agreement
1990 levels by 2012 (or better)
(a) All nine cities in Sonoma County have adopted targets at least as aggressive * as available 28 Monitoring
The City will measure its overall progress in reducing GHG emissions by:
¾ Completing the California Climate Action Registry inventory, or similar inventory, every two years, starting in 2011.
¾ Updating ICLEI inventory for community-wide emissions every five years. ¾ Monitoring the effectiveness of actions undertaken on an annual basis.

Actions to Date
Since 2005, the City of Newark has implemented some emission reduction actions. These actions work towards Goal 1-A.

Municipal Actions Emissions in Metric
Tons of eCO2
% reduction
2005 Municipal Emissions 3881
Community Center Lighting Retrofit 16.8 0.4%
Silliman Center Lighting Retrofit 5.5 0.1%
Fuel Use Reduction* 52 1.3%
Remaining Reduction neededto meet
2012 Goal
120

*Due to driving policy modifications and reduced staffing levels, fuel use has decreased by about

7.7%, 5900 gallons, since 2005.

As mentioned in Chapter 3, measures that will be implemented in 2010 will provide us with the sufficient emission reductions to meet the 2012 goal.
29 Chapter 8: Adaptation
Even if the City of Newark, the State of California and the United States take a leadership role in combating climate change, there will still be some affects. The most notable in the Bay Area is the predicted rise in water level of the San Francisco Bay. Other affects include weather changes and an increase in fires in the surrounding areas.

Several documents are emerging on the topic of climate change adaptation. ICLEI has prepared a Guidebook for Local, Regional and State Governments and the State of California has prepared a Climate Adaptation Strategy Discussion Draft.

Adaptation Action Item 8.1- Conduct a Vulnerability Assessment.

Adaptation Action Item 8.2- Develop a strategic plan of Climate Change Adaptation.

New, more accurate information about the current and future effects of climate is becoming more and more available. Researchers at institutions such as UC Berkeley, Lawrence Berkeley National Labs (LBNL), the San Francisco Bay Conservation and Development Commission (BCDC), and the Union of Concerned Scientists are generating models that governments can incorporate into strategic and capital planning efforts. For example, according to a report released by the California Climate Change Center16, if heat-trapping emissions continue unabated, the Sierra Nevada spring snow-pack could shrink by 90 percent by the end of the century. Shrinking snow-pack would affect this region’s water supply. This is a regional issue with a regional solution; however Newark will work with regional agencies including the Alameda County Flood Control District and BCDC to adapt to any rise in water levels. Scientists also project that global warming may affect Californians’ health by exacerbating air pollution and causing more extremely hot days.

Arnold Schwarzenegger issued Executive Order (EO) S-13-08 directing state agencies to enhance the State's management of climate impacts from sea level rise, increased temperatures, shifting precipitation and extreme weather events. As part of implementation of EO S-13-08, the California Resources Agency, along with the Cal/EPA, the Business Transportation and Housing Agency, the Department of Health and Human Services, and others, is developing the State’s first comprehensive Climate Adaptation Strategy (CAS). Newark will participate, when possible in the planning and implementation of the CAS. This will help each level of government better understand its role in developing robust adaptive strategies. Further, cooperation across levels of government will assist cities, counties, regional agencies and the state to become better informed regarding adaptation efforts already underway and the resources available to become more resilient to a changing climate.

16 “Our Changing Climate: Assessing the Risks to California,” A summary report from the California Climate Change Center, July 2006
30 Appendix A – Lighting Fixture Replacement and Aquatic Center Energy Saving Analysis Report Page A -1
Introduction
This report provides a summary of three projects the City of Newark researched to conserve energy and improve efficiency at the City’s recreation centers. A lighting retrofit at the Newark Community Center was selected as the first project. The second project was also a lighting retrofit, specific to the gymnasium room at the Silliman Activity Center. And finally, the Silliman Family Aquatic Center was identified as the third project. Many opportunities for energy efficiency exist at the Aquatic Center considering the equipment and amenities of its water features. Because of its prospects, options including renewable energy technologies were reviewed to increase energy efficiency. Each project is at a different stage of development and/or implementation.

All projects were stalled due to City budget cuts, which were unknown at the time of grant application. On March 31, 2008, the Maintenance Division was required to lay off one Building Mechanic position, leaving only three personnel to provide building maintenance to the City’s approximately 240,000 square feet of facilities. This building mechanic was nearing completion of the Community Center project, and was scheduled to begin work on the Silliman Center gymnasium project shortly after his lay off.

The Newark Community Center Lighting Retrofit project has saved the City 18,333 pounds of eCO2
1 to date by reducing the electricity use in these fixtures by 60%2. This translates to an overall savings at that site of 9%3. The Silliman Activity Center Gymnasium Lighting Retrofit project is estimated to reduce eCO2 by 7,110 pounds per year by reducing the electricity use in these fixtures by approximately 70%. Due to the combined electricity usage data of the Silliman Activity Center and the Silliman Family Aquatic Center, it is impossible to determine the percentage of savings this represents for only the Silliman Activity Center site. We expect to have the lights installed in the gymnasium by summer 2009. The Silliman Family Aquatic Center project determined that a more in-depth study is the next step towards energy efficiency. A multitude of options is available, and the solution will likely incorporate more than one measure.

Funding for this type of study (up to $15,000) will be pursued through the Economic Stimulus Funding Energy Efficiency and Conservation Block Grant Program. If awarded, staff will prepare a Request for Proposal to invite companies to bid on a complete energy efficiency study for the Silliman Family Aquatic Center. In addition, staff will pursue approval for study implementation recommendations including

1 STAPPA/ ALAPCO, and ICLEI’s Clean Air and Climate Protection software; estimated monthly kwh savings (wattage saved converted into kwh multiplied by estimated number of hours bulbs are in use per Recreation Coordinator Sheila Allen, manager of the Community Center building rental program) converted by software and multiplied by the number of months since completion of retrofit 2 Number of bulbs multiplied by the wattage of bulbs of original lighting minus the number of bulbs multiplied by the wattage of new lighting converted into a percentage 3 Per PG&E invoices, the July 2006 – June 2007 total kwh usage divided by 12 months, obtaining a monthly kwh usage average prior to commencement of the project; the monthly kwh savings divided by the monthly kwh usage averaged from FY06-07 converted into a percentage
Lighting Fixture Replacement and Aquatic Center Energy Saving Analysis Report Page A-2 of A-15
requesting Capital Improvement Funds and researching grant opportunities. A time frame cannot be placed on this project until the funding source is identified.

The energy savings achieved by these projects so far has been 1.5% reduction in electricity use4. The overall energy savings expected from all three projects being complete is estimated at 43%5
. This is slightly above what we expected before we
analyzed these projects.

Project 1: Newark Community Center Lighting Retrofit

1.1 Existing Building Data
The Community Center building is a 15,000 square foot multi-use facility which includes a reception area, four offices, a staff common area, a vending room, two preschool rooms, a meeting room, two banquet rooms, and a kitchen with commercial appliances.

Electricity is used to power the indoor and outdoor lighting, office equipment, vending machines, appliances, and HVAC system.

The Community Center’s four decade old design presents many challenges for energy efficiency. Built in 1968, the Community Center’s masonry and wood architecture with vaulted ceilings lend to a charming country feel. The building’s award-winning architecture is highly regarded by Newark residents and visitors. Preserving the architectural integrity of the building is important to Newark, and as a result, an additional challenge when considering any energy upgrades. Therefore, structural changes or upgrades requiring design changes or physical alterations were not considered.

Inside the Community Center, the existing lighting included 50, 75, and 90 watt incandescent bulbs and T8 style 32 watt fluorescent tubes. Along the outdoor perimeter, 65 watt fluorescent bulbs were in use. This lighting configuration is estimated to have been using 16,009 kwh of electricity a month6 or 17,373 pounds of
eCO2.
7 A lighting retrofit became the obvious choice to improve the building’s energy efficiency. The lighting retrofit was estimated to cost $5,000 which could be

4 Per PG&E bills, monthly kwh savings estimated from the completed Community Center and progress to date Silliman Center Gymnasium lighting retrofit projects divided by the monthly kwh average of the Newark Community Center, Silliman Activity Center, and Silliman Family Aquatic Center. 5 Per PG&E bills, monthly kwh average of the Newark Community Center, Silliman Activity Center, and Silliman Family Aquatic Center divided by the monthly kwh savings estimated from the Community Center and Silliman Center gymnasium lighting retrofit projects; and the Aquatic Center project savings per the September 13, 2007 PacificWest Solutions Preliminary Energy Services Proposal (numbers within proposal were provided for illustrative purposes only).
6 Original wattage of all lighting identified for retrofit converted to kwh multiplied by hours in use per month 7 Clean Air and Climate Protection software used to convert kwh to eCO2. Exact estimations of eCO2 cannot be determined due to the various sources (natural gas, coal, nuclear, etc.) PG&E derives its power from and supplies our specific facilities.

Lighting Fixture Replacement and Aquatic Center Energy Saving Analysis Report Page A-3 of A-15
accommodated within the existing Building Maintenance Budget (CIP 878: Citywide Building Upgrades, an ongoing fund replenished annually).

In addition, replacement of the original boiler HVAC system was also identified as a priority for energy efficiency reasons. It also needs replacement because it is past its functional life span. The estimated cost of replacing portions of the HVAC system to increase its life span and productivity is $250,000 and could not be accommodated in the existing budget.

1.2 Lighting Retrofit Data
In 2007, upon request from City staff, a lighting specialist toured the Community Center facility to evaluate the Community Center’s lighting efficiency. Due to the tie in of the HVAC system to the lighting switches and the architectural challenges, options such as sensors and dimmers could not be considered. The only option was to change the lighting fixtures and/or bulbs. The lighting specialist presented recommendations for each room in the Community Center. Recommendations ranged from simply changing the type of bulb to installing entire new fixtures. City staff reviewed the recommendations and determined that several rooms could be retrofitted based on the City’s staff and budget available at the time. Some of the recommendations were not authorized for implementation due to the complexity and potential cost of installing new fixtures. Funding for the scaled down project was identified within the existing building maintenance budget and assigned to staff to complete as time allowed.

From July 2007 to March 2008, ballasts and bulbs were replaced throughout the facility as time permitted. Only the staff offices and restrooms had already been upgraded to energy efficient lighting prior to 2007, so these areas were not included in the project.

As mentioned earlier, layoffs halted this project near its completion. By the end of March 2008, the center’s lobby, two banquet rooms, reception area, and hallway were retrofitted with 22 watt compact fluorescent light bulbs (cfls) and T5 type 25 watt fluorescent tubes. Along the outdoor perimeter, 22 watt cfls were installed. A total of 118 cfls were installed inside, 21 cfls were installed outside and 66 T5 tubes were installed. After the ballasts and bulbs were replaced, the reception area wall was painted to reflect more light, providing even greater efficiency and productivity.

All other areas in the Center are on hold until time permits existing staff to complete the project or the budget allows additional staffing. When the project restarts, three rooms will likely be included in the next phase. Collectively, these rooms contain 28 T8 type fluorescent tubes and 16 incandescent bulbs. Future retrofitting may include the tennis court and park lights.

1.3 Energy Savings Achieved
Each indoor incandescent bulb replaced with a cfl saved 53-68 watts. A total of 118 cfls were installed inside. Each outdoor 65 watt fluorescent bulb replaced with a cfl saved Lighting Fixture Replacement and Aquatic Center Energy Saving Analysis Report Page A-4 of A-15
43 watts. A total of 21 cfls were installed outside. Each T8 tube replaced with a T5 saved 7 watts. A total of 66 T5 tubes were installed.

Table 1.3.1 – Newark Community Center Lighting Retrofit – Completed to Date Original Bulbs Replacement Monthly Energy Savings
Bulbs
Bulb
Count
kwh8
$9 eCO2 (pounds)10
50, 75, & 90 watt
incandescent
22 watt cfl 118 119 $17 129
T8 32 watt
fluorescent
T5 25 watt
fluorescent
66 302 $42 328
65 watt fluorescent 22 watt cfl 21 1,456 $204 1,580
TOTALS 205 1,878 $263 2,037
For building maintenance staff, retrofitting light bulbs to cfls and painting were fairly simple tasks, requiring a minimal amount of time per bulb. The T5 retrofit was the most involved; up to 60 minutes of staff time was needed for the typical two tube fixture. So far the retrofit has taken 46 hours of staff time. It is estimated an additional 16 hours is still needed to complete the project.

A review of the PG&E bills from fiscal year (July - June) 2006-2007 to fiscal year 2007- 2008, show that the Community Center saved 31,000 kwh, an average of 2,583 kwh per month which equates to 2,803 pounds of eCO2. This saved the City $3,517.82, an average of $293.15 per month. Savings are expected to increase over time in part because the longer lasting cfls have up to a double life expectancy, relieving staff time and reducing supply purchases for bulb replacement.

The cost of the project included $2,900 for up front purchase of the bulbs and ballasts, and $1,632 for staff time, making the total cost of the project $4,532.

1.4 Future Energy Efficiency Projects
As mentioned above, the lighting project will be completed as time permits.

The next project to improve energy efficiency at the Newark Community Center will be the HVAC system including the original boiler/chiller. The whole facility is controlled by a central system with a master thermostat panel. In addition to the antiquated, high energy using equipment, the existing HVAC system contains pumps and motors that run 24 hours a day. Realizing the potential for the HVAC system to fail in the near future because of its age, the City authorized funding through the citywide equipment

8 Original bulb wattage minus the replacement bulb wattage converted into kwh multiplied by the number of hours used per month
9 Kwh energy savings multiplied by the average kwh cost per FY06-07 PG&E bills for the Community Center 10 Using Clean Air and Climate Protection software, converted kwh to eCO2 Lighting Fixture Replacement and Aquatic Center Energy Saving Analysis Report Page A-5 of A-15
replacement account. While the Center’s architecture will still contribute to climate control issues and design challenges, funding will allow changes to the system that will result in improved energy efficiency. The proposed changes will separate out the two large banquet halls from the central system. This will require considerable less usage of the original boiler and chiller system (saving energy), and allow energy efficient units to service the two largest, revenue generating rooms in the facility. Design of potential changes is in progress. The project is scheduled to go to bid in 2009.

Project 2 - Silliman Activity Center Gymnasium Lighting Retrofit

2.1 Existing Building Data
The Silliman gymnasium is one room within a multi-use recreation facility. This particular area has an inefficient lighting system which differs from the rest of the facility.

The lighting is inefficient in that it does not light the gym well, it warms up slowly and the bulbs are not low wattage bulbs. The 2001 installed system included (64) 250 watt Metal Halide bulbs – 36 bulbs in the ceiling fixtures, 18 wall washer fixtures, and 10 dormers.

Lights in the gymnasium were being turned on first thing every morning (between 5:00 and 6:00 a.m.), and left on all day (until 9:00 or 10:00 p.m.) because the lighting required a warm-up period of approximately 30 minutes. This challenged facility staff because throughout the day, hours were reserved for open gym. During open gym, a person could arrive at anytime unannounced requiring immediate access to the gymnasium. In order to accommodate customers in a timely manner, staff decided the lights were to remain on during all of the facility’s operating hours.

In early 2008, staff reviewed operations and made several changes. Operating hours were decreased, and emphasis was put on saving energy. Staff decided that enough natural light entered the gymnasium, allowing staff to keep lights off when not in use.

While lights warmed up for customers, natural light was enough to allow customers to use the gymnasium safely. This change alarmed some customers at first, but proved to be an effective method of energy savings.

2.2 Lighting Retrofit Data
In addition to operational changes, the Building Maintenance Division began planning a retrofit of the lighting. Maintenance Supervisor Robert McKinney11 reviewed energy usage reports and observed the gymnasium in use. He visited similar facilities such as the San Leandro High School gymnasium and two community centers in the City of Fremont. At these sites, he spoke with representatives about their lighting system experiences, and studied the aesthetics and illumination each lighting system provided.

Maintenance Supervisor McKinney found that two basic types of lighting existed for

11 Maintenance Supervisor Robert McKinney oversees all building maintenance staff. He can be reached at 510- 578-4802 or [email protected]
Lighting Fixture Replacement and Aquatic Center Energy Saving Analysis Report Page A-6 of A-15
gymnasiums, and concluded that only one would fit with the Silliman Activity Center architecture.

Once the bulb was selected, Maintenance Supervisor McKinney considered variations of lighting numbers and types. Prior to installation, he predicted that the new layout would include just 24 fixtures. This is due to much of the gymnasium lighting being used is for aesthetic purposes versus functionality. Maintenance Supervisor McKinney concluded that the 18 wall washers and 10 dormer lights could be put out of service, as they appeared to provide no lighting for the courts or audience areas. He also concluded that 12 of the 36 ceiling fixtures could be put out of service without compromising the desired illumination.

With a new lighting layout plan, Maintenance Supervisor McKinney requested that PG&E visit the site to calculate the potential energy savings. Each original fixture consisted of one 250 watt metal halide bulb. Each new fixture includes eight (8) 40 watt compact fluorescent bulbs. PG&E and Maintenance Supervisor McKinney agreed that this retrofit could achieve at least a 70% energy savings12.

Installation began in February 2009. As planned, 12 of the 36 ceiling fixtures were put out of service. The remaining 24 fixtures were replaced, and each fixture provides twice the lighting to the gymnasium floor compared to the original fixture13. However, each corner of the gymnasium was darker than desired. To provide lighting in these areas, Maintenance Supervisor McKinney decided to replace eight of the dormer fixtures. Four have been replaced to date at two of the gymnasium corners. This solution provides the desired illumination. The remaining four dormer fixtures are scheduled to be replaced by June 2009, contingent upon shipment of the additional fixtures (two are on hand and three are on order; two for installation and one for inventory). When all 32 fixtures are installed, a final evaluation will be conducted. It is expected that all remaining gymnasium fixtures not replaced with cfl bulbs will be electrically disconnected.

2.3 Energy Savings Data
The immediate savings will be attained by decreasing the gymnasium lighting by 8,000 watts; a reduction of 50%14. The overall energy savings will be realized by the aforementioned wattage reduction, and shorter usage time due to the ability to eliminate a warm-up period. With the new bulbs, the lights will only be on while the gym is in use.

The City will also achieve a long term savings of changing the bulbs less often.

The new fixtures will increase the wattage from 250 to 320 watts, but a 50% reduction in fixtures creates the large overall wattage reduction. Reduced use and elimination of a

12 Original wattage used multiplied by number of hours originally used minus new wattage multiplied by new number of hours used (no warm-up period and non-use when room is vacant) 13 Building Maintenance staff used a foot candle meter at the gymnasium floor level, measuring 12 foot candles directly under the old lighting fixture and 24 foot candles directly under the new lighting fixture 14 Original wattage total minus the new wattage total, converted into a percentage Lighting Fixture Replacement and Aquatic Center Energy Saving Analysis Report Page A-7 of A-15
warm-up period is expected to save an additional 25%15, which equates to 273 kwh per month16 or $3817. The long term staff time saved equates to 5.3 hours18. The expected monthly savings from the progress to date is $114 in PG&E costs19 and 889 pounds of eCO2

20. Upon completion of this project, the total expected monthly savings in PG&E costs is $11721. The total expected monthly eCO2 savings is 913 pounds22.

In November 2008, building maintenance staff completed a mock installation of one fixture in order to estimate the staff time required for the lighting modification. At that time, the project appeared to require two Building Mechanics (2/3 of our current staff) and two (2) to three (3) hours per fixture to install. Building Mechanic staff continued to work with the model and determined that the original fixture’s mounting bracket could be used with the new light fixtures. This step cut both the installation time and labor in half.

Now, one Building Mechanic could safely install one lighting fixture in approximately one hour.

This solution required approximately eight hours of Maintenance Supervisor time for research, logistical coordination, and oversight. For the 28 completed fixtures and mock installation, one Building Mechanic II spent 31 hours of regular time. An additional eight hours of Building Mechanic II time is estimated for installation of the remaining fixtures and disconnection of the original fixtures. To date, staff costs are $1,592, and estimated to total $1,887 upon completion of the project. In addition to staff costs, 30 bulbs were purchased at a cost of $17,846. This order was based on the original goal of 24 fixtures. Once it was determined to increase the fixture total to 32, an order was placed for additional fixtures (two to complete the project and one for inventory) at an estimated cost of $1,800. Total costs for this project, including staff time, are expected to be approximately $21,533.

Project 3 - Silliman Family Aquatic Center

3.1 Existing Building Data
This 32,320 square foot indoor aquatic center was the second phase of a multi-use recreational facility. Though just a few years old, this facility consumes over 60% of the

Newark City CouncilDecember 14, 2023

Newark City Council
December 14, 2023