Agenda packet, regular meeting — Newark City Council, June 27, 2024 (part 1 of 3)

AGENDA
Thursday, June 27, 2024
7:00 P.M.

A. ROLL CALL
B. PRESENTATIONS

1. Introduction of employee(s)
C. PUBLIC COMMENT
The public is invited to address the City Council on any item not listed on the agenda.

Public Comments are generally limited to 5 minutes per speaker. Please note that State law prohibits the Council from acting on non-agenda items.

D. CONSENT CALENDAR
Consent Calendar items are considered to be routine and may be approved by one motion. There will be no separate discussion on these items unless there is a request by a Council Member, a staff member, or a member of the public to remove an item for separate discussion and action.

1. Approval of Audited Demands

2. Approval of June 13, 2024, minutes

3. Adopt a resolution calling and giving notice of the holding of a General Municipal Election on Tuesday, November 5, 2024, for the election of certain officers of the City of Newark

4. Adopt a resolution amending the Personnel Rules and Regulations and introduction by title only of an ordinance amending Newark Municipal Code Chapter 2.28, "Personnel System"

5. Adopt a resolution authorizing the City Manager to execute Contractual Service Agreements for Geotechnical Engineering and Peer Review Services, Materials Testing Services, Traffic Signal and Street Light Maintenance Services, and Traffic Engineering and Transportation Planning Services with the following consultants: Cotton, Shires and Associates, Inc.; Geocon Consultants, Inc.; Construction Testing Services, Inc.; Cal-West Lighting and Signal Maintenance, Inc.; St. Francis Electric, LLC; Fehr and Peers; GHD, Inc.; and Kimley-Horn and Associates, Inc.

Inc.; and Kimley-Horn and Associates, Inc.

6. Adopt a resolution awarding a contract for the Base Bid and Additive Alternate Bids No. 1, No. 2, No. 3, and No. 4 to G. Bortolotto & Company, Inc. for 2024 Asphalt Concrete Street Overlay Program, Project 1344

7. Adopt a resolution authorizing the City Manager to execute an agreement with Alameda County for participation in the Alameda County Urban County for Fiscal Year 2024-2025

8. Adopt a resolution authorizing the City Manager to execute a Contractual Services Agreement with West Coast Arborists, Inc. for ongoing maintenance services of City trees located in parks, streets and City-owned properties

9. Adoption of a resolution authorizing the City Manager to execute Amendment No. 1 to the Contractual Services Agreement with Universal Building Services and Supply Company for janitorial services for City buildings

10. Adopt a resolution authorizing the City Manager to execute the first amendment to the agreement with Alameda County for participation in the Alameda County Urban County

11. Adopt a resolution authorizing the City Attorney to annually execute a Certification and Mutual Indemnification Agreement with the County of Alameda

12. Adopt a resolution declaring that there is no need for the Successor Agency to the Redevelopment Agency to function in the community and requesting that the Alameda County Oversight Board approve the dissolution of the Successor Agency

13. Year-End Budget Review and Adoption of a Resolution Amending the 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024

14. Adopt a resolution approving the Road Repair and Accountability Act of 2017 (Senate Bill 1) Fiscal Year 2025 Project List

15. Adopt a resolution authorizing the City Manager to execute a Cooperative Agreement with the Alameda County Water District for water main design and construction associated with the Old Town Streetscape Improvements, Project 1258

16. Adopt a resolution authorizing the City Manager to execute a Contractual Services Agreement with Cumming Management Group, Inc., for Construction Management Services for Newark Resource Center, Project 1360
E. PUBLIC HEARINGS

1. Public hearing to consider adoption of a resolution approving amendments to the Master Fee Schedule for Fiscal Year 2025

2. Adopt a resolution approving the 2024-2026 Biennial Budget and Capital Improvement Plan

3. Public Hearing and Introduce By Title Only an Ordinance Approving and Re-Adopting a Military Equipment Use Policy as Stated in Chapter 2.50, “Military Equipment Use Policy” to Title 2. "Administration and Personnel" of the Newark Municipal Code in compliance with Assembly Bill 481
F. OTHER BUSINESS

1. Consider for adoption a resolution calling an election to be held on November 5, 2024, for voter consideration of a ballot measure seeking voter authorization to amend Municipal Code Chapter 3.16 to increase the City’s existing transient occupancy (hotel) tax; establishing policies and procedures in connection with such an election; requesting the Board of Supervisors of the County of Alameda to consolidate the general municipal election with the general election to be held on November 5, 2024; requesting certain services of the Registrar of Voters of Alameda County with respect to the consolidated general municipal election; and providing for submittal of ballot arguments and rebuttals and authorizing the filing of an impartial analysis

2. Presentation of final designs for Citywide Parks Signage Program, Project 1272 G. CITY COUNCIL MATTERS
City Council Members report on attendance at intergovernmental agency meetings, conferences, and seminars since the last meeting. City Council Members may also announce upcoming events and coordinate attendance; report on local events attended since the last meeting; and make brief comments on issues of concern.

H. CITY MANAGER UPDATES
I. CLOSED SESSION
J. ADJOURNMENT

MEETING INFORMATION
Members of the public may attend the meeting in person, watch online, or watch on Cable Channel 26. The ability to observe online or Cable Channel 26 is predicated on those technologies being available and functioning without technical difficulties. Should those platforms not be available, or become non-functioning, or should the City Council otherwise encounter technical difficulties that make those platforms unavailable, the City Council will proceed with business in person unless otherwise prohibited by law.

How to view the meeting remotely:

Livestream online at YouTube: https://www.youtube.com/@cityofnewark3077/streams Copy/paste the YouTube URL into your browser if the link does not automatically open.

Cable Channel 26 - if the meeting does not broadcast live, please contact your service provider and request the City of Newark channel lineup.

Zoom will no longer be available for public participation unless required by Assembly Bill 2449. Should a Council Member or the Mayor attend the meeting via Zoom pursuant to Assembly Bill 2249, then the Webinar ID: 815 4441 4831 will be activated. The Mayor will make an announcement at the beginning of the meeting that the City will be allowing public comment via Zoom. Raise your virtual hand to notify the City Clerk that you would like to speak during the item that you wish to speak on.

How to submit written Public Comment:

Send an email to City Clerk by 3:00 p.m. the day of the meeting. Please identify the agenda item number in the subject line of your email. Emails will be compiled into one file and will be distributed to the City Council before the meeting.

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

Council Meeting Access/Materials:

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

Pursuant to Government Code 54957.5, supplemental materials distributed less than 72 hours before this meeting, to a majority of the City Council, will be made available for public inspection at this meeting and will be posted at https://www.newark.org/departments/city-manager-s-office/agendas-minutes and will concurrently be made available for public inspection during regular business hours at the David W. Smith City Hall, 37101 Newark Boulevard, Newark CA. Materials prepared by City staff and distributed during the meeting are available for public inspection at the meeting or after the meeting if prepared by some other person. Documents related to closed session items or are exempt from disclosure will not be made available for public inspection. For those persons who require special accommodations, please contact the City Clerk at least two days prior to the meeting at City Clerk or 510-578-4266.

Item B. 1.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT Introduction of employee(s)
The following employees will be introduced at the City Council meeting:

Police Department: Police Officer Bill Lor and Administrative Support Specialist II Johna Coulthard
Public Works Department, Maintenance Division: Building Maintenance Mechanic I Michael Thomas, General Laborers Benjamin Manukia, Raymundo Ruiz, and Juan Ayala
Item D. 1.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Krysten Lee, Finance Director
SUBJECT Approval of Audited Demands
Attachments
Audited Demands 05.30.24
Audited Demands 06.06.24

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Item D. 2.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT Approval of June 13, 2024, minutes
Attachments
Minutes
City of Newark | Newark City Council
Mayor Michael K. Hannon | Vice Mayor Luis L. Freitas | Council Members: Maria “Sucy” Collazo, Mike Bucci, and Matthew Jorgens

Draft
Thursday, June 13, 2024
7:00 P.M.

A. ROLL CALL
Mayor Hannon called the meeting to order at 7:07 p.m. Vice Mayor Freitas and Council Member Jorgens were present. Council Members Collazo and Bucci were noted absent.

B. PRESENTATIONS

1. Commending Public Works Director Fajeau on his retirement Mayor Hannon presented commendations from the City Council and from Alameda County Board of Supervisor Elisa Márquez in honor of Public Works Director Fajeau’s upcoming retirement. Astrid Lee representing Senator Aisha Wahab and Tim Orozco representing Assembly Member Alex Lee each presented certificates to Mr. Fajeau.

2. Proclaiming June 19, 2024, as Juneteenth
Mayor Hannon presented the Juneteenth proclamation to Administrative Support Specialist II Danielle Cranon-Jones.

C. PUBLIC COMMENT
Vinod Kumar thanked Public Works Director Fajeau for his service. He asked about the state of the streets in the Magnolia Street, Sycamore Street and Cherry Street area. He suggested forming a group for residential input to help improve the city.

Page No. 2
City of Newark City Council Minutes June 13, 2024
D. CONSENT CALENDAR
Assistant City Manager Hovorka requested the removal of items D. 8 and D.9. Vice Mayor Freitas would need to recuse himself which would result in the loss of the quorum. The items will be rescheduled for a future meeting.

Council Member Jorgens moved, Vice Mayor Freitas seconded, to approve Consent Calendar items D.1 to D.7, that the resolutions be numbered consecutively, and that reading of the titles suffice for adoption. The motion passed, 3 AYES, 2 ABSENT.

1. Approval of Audited Demands

2. Approval of May 23, 2024, minutes

3. Adopt a resolution authorizing the City Manager to execute an agreement with What's Happening's Tri-City Voice for legal advertising services in Fiscal Year 2025
Resolution No.11642
Contract No. 24043

4. Adopt a resolution approving the third amendment to the Contractual Services Agreement with Orion Security to provide Security Guard Services Resolution No. 11643
Contract No. 22041

5. Adopt a resolution authorizing the City Manager to execute Task Order No. 30 to the Joint Powers Agreement with the City of Fremont for Fiscal Year 2025 senior case management services
Resolution No. 11644
Contract No. 09044

6. Adopt a resolution authorizing the City Manager to execute Task Order No.31 to the Joint Powers Agreement with the City of Fremont for Paratransit services with Ride On Tri-City!
Resolution No. 11645
Contract No. 09044

7. Adopt a resolution authorizing the City to file a request to the Metropolitan Page No. 3
City of Newark City Council Minutes June 13, 2024
Transportation Commission for the allocation of Fiscal Year 2025 Transportation Development Act Article 3 Pedestrian and Bicycle Project funding for the Annual Citywide Accessible Pedestrian Ramps Project; exempt from CEQA review per CEQA Guidelines Section 15301
Resolution No. 11646

8. Pulled - Adopt a resolution approving the Road Repair and Accountability Act of 2017 (Senate Bill 1) Fiscal Year 2025 Project List

9. Pulled - Adopt a resolution authorizing the City Manager to execute a Cooperative Agreement with the Alameda County Water District for water main design and construction associated with the Old Town Streetscape Improvements, Project 1258
E. PUBLIC HEARINGS
F. OTHER BUSINESS

1. Adopt a Resolution approving the Public Art Master Plan May 2024 Update Resolution No. 11647
Senior Management Analyst Gonzalez introduced the consultant.

Amanda Rawson, Partner & Project Manager, Art Builds Community, gave the presentation. Presentation on file with City Clerk.

No one requested to speak.

Council Member Jorgens requested a process to add organization plaques to the monument wall at Newark Boulevard and Cedar Boulevard.

Vice Mayor Freitas moved, Council Member Jorgens seconded to adopt the resolution. The motion passed, 3 AYES, 2 ABSENT.

2. Adopt resolutions for approval of Annual Engineer's Reports, intention to levy and collect assessments and setting a public hearing for July 11, 2024, for Landscaping and Lighting District Nos. 1, 2, 4, 7, 11, 15, 16, 17, 18 and 19 for Page No. 4
City of Newark City Council Minutes June 13, 2024
Fiscal Year 2025 in accordance with the provisions of the Landscaping and Lighting Act of 1972; and initiate dissolution proceedings for Landscaping and Lighting District Nos. 6, 10 and 13
Resolution No. 11648 Engineer’s Reports
Resolution No. 11649 Intention to Levy
Assistant City Manager Hovorka gave the presentation recommending approval.

No one requested to speak.

Vice Mayor Freitas moved, Council Member Jorgens seconded to adopt the resolutions. The motion passed, 3 AYES, 2 ABSENT.

Mayor Hannon called for a recess at 7:55 pm. The meeting resumed at 8:00 pm.

3. Adopt resolutions approving the 2024-2026 Capital Improvement Plan project lists with funding recommendations; and provide feedback on the draft 2024-2026 Capital Improvement Plan budget document
Mayor Hannon announced that there would not be a quorum, due to multiple recusals needed, and that the Capital Improvement Plan would be rescheduled.

No one from the public requested to speak.

Page No. 5
City of Newark City Council Minutes June 13, 2024
G. CITY COUNCIL MATTERS
Council Member Jorgens congratulated Public Works Director Fajeau on his retirement.

Vice Mayor Freitas congratulated Public Works Director Fajeau on his retirement.

He attended the Newark Memorial High School graduation and congratulated the students. He asked about vacant lots approved for development that need to be cleaned up and appear not to be moving forward with development, such as Mulberry Street and Thornton Avenue. He asked which agency was currently working on Thornton Avenue.

In response to Vice Mayor Freitas, Public Works Director Fajeau stated that Alameda County Water District was replacing the main lines on Thornton Avenue between Cherry Street and Cedar Boulevard.

In response to Vice Mayor Freitas, Mayor Hannon stated that the vacant lot at Newark Boulevard and Mayhews Landing Road would be cleaned up as part of the weed abatement process.

In response to Vice Mayor Freitas, Community Development Director Turner stated that the Mulberry Street property had 12 months until the approval expired. He stated that staff would monitor the vacant lots mentioned.

Mayor Hannon stated that Alameda County Assessor Phong La gave a presentation and that staff would share the slides with the City Council. Mayor Hannon stated that he attended a number of graduations and congratulated the students. He spoke to Council Member Collazo and she requested that we shop Newark.

H. CITY MANAGER UPDATES
I. CLOSED SESSION
J. ADJOURNMENT
Mayor Hannon adjourned the meeting at 8:12 pm.

Item D. 3.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT Adopt a resolution calling and giving notice of the holding of a General Municipal Election on Tuesday, November 5, 2024, for the election of certain officers of the City of Newark
The City’s next General Municipal Election will be held on November 5, 2024. A Mayor will be elected for a two-year term and two Council Members will be elected for four-year terms. Candidates may file nomination papers from July 15, 2024, through August 9, 2024. Should an incumbent fail to file, then the nomination period would extend to August 14, 2024, for that incumbent’s elective office. The incumbent who did not file would not be eligible to file during the extended period.

The City has historically consolidated the local election with the Alameda County Registrar of Voters (ROV). The ROV establishes polling places, secures precinct workers, prepares sample and official ballots, provides absentee voting, and tabulates the votes. In order for the ROV to render these services, the City must adopt a resolution requesting the services of the ROV through the Alameda County Board of Supervisors.

The ROV's estimate for election services is between $4.00 and $6.00 per registered voter. Based on Newark’s current voter registration of 25,231, the estimated cost for the election will be between $101,204 and $151,806, plus other publication printing, translation, and supply costs borne directly by the City. Funds to cover the services provided by the ROV and other vendors are requested in the 2024-2026 Biennial Budget, which is scheduled for City Council consideration on this same agenda under public hearings.

Resolution No. 7400 requires the City Clerk to estimate the cost and collect the deposit for the optional Candidate Statement of Qualifications. Candidates are responsible for the actual costs associated with their Statement of Qualifications. Based on the last election, staff has estimated an approximate cost of $400 per statement. The candidate will be refunded any overage or billed for any additional costs within 30 days of the final invoice from the ROV.

Staff recommends that the City Council, by motion, approve the estimated cost of $400 to be paid by each candidate at the time they file their nomination papers for the to be paid by each candidate at the time they file their nomination papers for the Statement of Qualifications and, adopt a resolution calling for the holding of a General Municipal Election to be held on Tuesday, November 5, 2024; and request services of the Registrar of Voters.

Attachments
Resolution
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK CALLING FOR THE HOLDING OF A GENERAL

MUNICIPAL ELECTION TO BE HELD ON TUESDAY,
NOVEMBER 5, 2024, FOR THE ELECTION OF CERTAIN
OFFICERS; REQUESTING THE ALAMEDA COUNTY

BOARD OF SUPERVISORS TO CONSOLIDATE THE

GENERAL MUNICIPAL ELECTION WITH THE GENERAL
ELECTION TO BE HELD NOVEMBER 5, 2024; AND

REQUESTING SERVICES OF THE REGISTRAR OF VOTERS
WHEREAS, under the provisions of the laws relating to general law cities in the State of California, a General Municipal Election shall be held on November 5, 2024, for the purpose of electing one Mayor for a full term of two years and two Members of the City Council for full terms of four years; and
WHEREAS, in accordance with Elections Code Section 10400, local elections which are called to be held on the same date in territory which is wholly or partially the same may be consolidated by the Registrar of Voters upon receipt of request for same from the jurisdictions involved at least 88 days prior to the date of said elections; and WHEREAS, it is desirable that the General Municipal Election be consolidated with the General Election to be held on the same date and that within the City the precincts, polling places, and election officer of the two elections be the same, and that the Registrar of Voters of the County of Alameda canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election; and WHEREAS, pursuant to Elections Code Section 10403.5 the City desires to request the County to render special services to the City with respect to the conduct of the City’s Municipal Election to be held on November 5, 2024, and the County is agreeable to provide these services.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newark does hereby declare, determine, and order as follows:

Section 1: That pursuant to the requirements of the laws of the State of California relating to General Law Cities, there is called and ordered to be held in the City of Newark, California, on Tuesday, November 5, 2024, a General Municipal Election for the purpose of electing one Mayor for the full term of two years and two Members of the City Council for the full term of four years.

Section 2: That the ballots to be used at the election shall be in the form and content as required by law.

Section 3: That the polls for the election shall be open at 7:00 a.m. of the day of the election and shall remain open continuously from that time until 8:00 p.m. of the same day when the polls shall be closed.
2Shr1
Section 4: That in all particulars not recited in this resolution, the election shall be held and conducted as provided by law for holding municipal elections.

Section 5: That the Board of Supervisors of the County of Alameda is hereby requested to consent and agree to the consolidation of the General Municipal Election with the General Election on Tuesday, November 5, 2024.

Section 6: That the Alameda County Registrar of Voters is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there is only one election, and only one form of ballot shall be used.

Section 7: That the Board of Supervisors is requested to issue instructions to the Registrar of Voters to take any and all steps necessary for the holding of the consolidated election.

Section 8: That the City of Newark recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County based on the County’s established consolidation rate.

Section 9: That notice of the time and place of holding the election is given and that the City Clerk is authorized to give additional notice of the election in time, form, and manner as required by law.

Section 10: The City Council authorizes the City Clerk to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill.

Section 11: That in the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) as certified by the Alameda County Registrar of Voters, the City Council, in accordance with Election Code Section 15651(a), shall set a date and time and place and summon the candidates who have received the tie votes to appear and will determine the tie by lot.

Section 12: That the City Clerk is directed to forward a certified copy of this resolution to the Board of Supervisors of Alameda County and the Registrar of Voters of Alameda County.

Item D. 4.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Cathreene Ingham-Watters, Human Resources Director SUBJECT Adopt a resolution amending the Personnel Rules and Regulations and introduction by title only of an ordinance amending Newark Municipal Code Chapter 2.28, "Personnel System"
SUMMARY AND RECOMMENDATION
Staff recommends that the City Council (1) adopt a resolution amending the Personnel Rules and Regulations; and (2) introduce by title only an ordinance amending Newark Municipal Code Chapter 2.28, "Personnel System", to align with current City policies and procedures and industry standards.

BACKGROUND
In 1963, the City Council established both the Personnel Rules and Regulations (Rules) and Chapter 2.28 - Personnel System of the Newark Municipal Code. The Rules were approved via Resolution Number 942 to provide a fair and equitable system of personnel management. Chapter 2.28 of the Newark Municipal Code was approved via Ordinance 77 and establishes procedures dealing with personnel matters and systems. Both documents have been updated several times since their adoption, as staff periodically review the content and update the documents as operational needs change over time.

Staff recently conducted a review of both the Rules and Chapter 2.28 of the Municipal Code and now recommend various changes to streamline the documents, reflect current polices and procedures, remove redundancies with other administrative documents (such as Administrative Regulations and Memoranda of Understanding), and recommend amendments to reflect current industry standards related to compensation and employment status.

DISCUSSION/ANALYSIS
To update various Human Resources processes and procedures, staff conducted a comprehensive review of the Personnel Rules and Regulations and Chapter 2.28 of the Municipal Code and recommend a variety of changes. The following is a summary of the substantive changes to each document.

PERSONNEL RULES AND REGULATIONS
•    Amendments to the Conflict-of-Interest section to clarify limitations of an elected or appointed individual with a close relative employed by the City; •    Provide that all Department Directors are “at-will” and exempt from the Rules and related procedures;
•    Provide that, upon promotion, the starting salary of the promoted employee shall be the salary step or range closest to, but not less than, 5% above their current salary, unless this figure exceeds the new position salary or range maximum; •    Add language to provide that an employee maintains their current salary (known as “Y-rate”) when reclassified to a lower-level position if their current salary is over the maximum of the new range;
•    Provide that the probation period for a new employee may be extended for up to six (6) additional months;
•    Amend the Eligible List section to ensure that eligibility lists will remain in effect for a minimum of six (6) months, and new language to provide clarity around abolishing an eligible list and having multiple active eligible lists at the same time; •    Amend language and definitions to align with current administrative regulations and Memoranda of Understanding (MOU);
•    Remove language which is part of the various MOU and subject to the authority of the MOU;
•    Remove language that is part of the Municipal Code and/or other City administrative regulations; and
•    Amend pronouns to gender neutral pronouns.

NEWARK MUNICIPAL CODE, CHAPTER 2.28 - PERSONNEL SYSTEM
•    Provide that personnel-related tasks are functions of the Personnel Officer, appointed by the City Manager;
•    Provide that all Department Directors are exempt/ “at- will” and removes City Treasurer from list of exempt employees as this position is no longer active; •    Revise language regarding part-time employees, examination process, appointment process, and probation to align with Personnel Rules & Regulations and current practice;
•    Remove language which is part of the various Memoranda of Understanding (MOU) and subject to the authority of the MOU; and
•    Remove language that is part of the Personnel Rules & Regulations and/or part of other City administrative regulations.

There are no other substantive amendments beyond those summarized above. A summary of the proposed revisions, red-lined copies of both documents and an opportunity to meet and confer was provided to the leadership of all employee organizations (Newark Association of Miscellaneous Employees, Newark Police Association, and Newark Police Management Association).

Attached to the proposed resolution as Exhibit A is an amended copy of the Personnel Rules and Regulations with revisions in redline. Attached to the proposed ordinance as Exhibit A are proposed text amendments to Newark Municipal Code Chapter 2.28, "Personnel System", with revisions reflected in redline.

FISCAL IMPACT
FISCAL IMPACT
There is no direct fiscal impact associated with the proposed actions.

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 of PR&R
PR&R Exhibit A
Ordinance Amending Chapter 2.28
Chapter 2.28 Exhibit A
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AMENDING THE PERSONNEL RULES AND

REGULATIONS TO ALIGN WITH OTHER CITY POLICIES

AND PROCEDURES AND INDUSTRY STANDARDS
WHEREAS, the Personnel Rules and Regulations govern various personnel processes; and WHEREAS, the Personnel Rules and Regulations contain information that may be redundant with other governing documents, such as the City Municipal Code, adopted Memoranda of Understanding, and administrative regulations; and
WHEREAS, the City wishes to remove such redundancies and make certain substantive changes to reflect current industry standards and City practices; and WHEREAS, the substantive changes include amendments to the Conflict of Interest section related to employment and governance of close relatives; salary upon promotion; salary upon reclassification to a lower-level position; duration and types of employment eligible lists; length of the probationary period for a new employee; and the “at-will” status of Department Directors; and
WHEREAS, the City Manager or designee provided an opportunity to meet and confer .in good faith with the Newark Association of Miscellaneous Employees, Newark Police Association, and Newark Police Management Association related to the above matters.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby approves an amendment to the Personnel Rules and Regulations as referenced in the redlined document Exhibit A, which is attached hereto and incorporated herein by reference.

CITY OF NEWARK

PERSONNEL RULES

AND REGULATIONS
Resolution No. 3513 as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/98), No. 6844 (1/94), No. 7164 (2/96), No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), No. 10416 (9/15), No. 11345 (5/22), No. XXX (4/243).

TABLE OF CONTENTS

PERSONNEL SYSTEM RULES AND REGULATIONS
RULE 1I Purpose and Definitions 1
RULE II General Provisions
Section 1 - Memorandum of Understanding 3
Section 2 - Violation of Rules 4
Section 3 - Application of Rules 4
Section 4 - Outside Employment 4
Section 5 - Conflict of Interest due to Personal Relationships 4 Section 6 - Amendment of Rules 4
RULE III Classification
Section 1 - Preparation of Plan 4
Section 2 - Adoption of Plan 5
Section 3 - Allocation of Positions 5
Section 5 - Reclassification 5
Section 6 - Amending the Classification Plan 5
RULE IV Compensation
Section 1 - Preparation of Plan 6
Section 2 - Approval of Compensation Levels 6
Section 3 - Only Authorized Compensation 6
Section 4 - Oath of Office 6
RULE V Applications and Applicants
Section 1 - Announcement of Examination 6
Section 2 - Minimum Qualifications 7
Section 3 - Application Forms 7
Section 34 - Disqualification 7
RULE VI Examinations
Section 1 - Nature and Types of Examinations 7
Section 2 – Promotional Examinations 8
Section 3 - Scoring 8
Section 4 - Notification of Examination Results 8
RULE VII Eligible List
Section 1 - Establishment 9
Section 2 - Types of Eligible Lists 9
Section 3 - Duration of Eligible List 9
Section 4 - Removal of Name from Eligible List 10
Section 5 - Alternate Eligible List 10
RULE VIII Appointment
Section 1 - Appointment Authority 11
Section 2 - Appointment from Eligible List 11
Section 3 - Promotional Appointments 11
Section 4 - Regular Full-time Appointment 12
Section 5 - Regular Part-time Appointment 12
Section 6 - Temporary Appointment 12
Section 7 - Exempt Service Appointment 13
Section 8 - Emergency Appointment 13
RULE IX Probationary Period
Section 1 - Objective 13
Section 2 - Duration 14
Section 3 - Rejection Following Promotion 14
Section 4 - Extension of Probationary Period 14
RULE X Attendance and Leaves
Section 1 - Annual Vacation Leave 14
Section 2 - Sick Leave 16
Section 13
-
Military Leave 17
Section 24
-
Leave of Absence Without Pay 17
Section 35
-
Attendance 18
Section 6 - Holidays 18
Section 7 - Bereavement Leave 19
Section 48
-
Jury Duty 19
RULE XI Compensation Adjustments
Section 1 - Application of Compensation Rates 19
Section 2 - Advancement 20
Section 3 - Anniversary Date 20
Section 4 - Withholding Advancement 20
Section 5 - Promotion 21
Section 6 - Demotion 21
Section 7 - Reclassification 21
Section 8 - Attachment of Wages 21
RULE XII Transfer, Promotion, Demotion, Reduction-in-pay, Suspension and Reinstatement
Section 1 - Transfer 21
Section 2 - Promotion 22
Section 3 - Demotion and Reduction-in-pay 22
Section 4 – Suspension 22
Section 5 - Attachment of Wages 22
Section 36 - Reinstatement 23
RULE XIII Separation from the Service
Section 1 - Dismissal 23
Section 2 - Resignation 23
Section 3a - Layoff 23
Section 3b - Work Schedule Reductions 23
Section 4 - Personnel Reduction Procedures 24
RULE XIV Training of Employees
Section 1 - Responsibility for Training 32
Section 2 - Credit for Training 32
RULE XV Evaluations
Section 1 - Evaluations 32
RULE XVI Reports and Records
Section 1 - Roster Cards 32
Section 2 - Change-of-status Report 33
Section 3 - Destruction of Records 33
Section 4 - Attendance 33
Section 5 - Accident Reports 33
RULE XVIIXIV Cooperation
Section 1 - Cooperation of Municipal Officers and Employees 33 RULE XVIIIXV Administrative Regulations
Section 1 - City Manager 33
Section 2 - Departmental Regulations 34
Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
6 CITY OF NEWARK

PERSONNEL SYSTEM RULES AND REGULATIONS
RULE I

PURPOSE AND DEFINITIONS

RULE I-A PURPOSE
The objectives of these rules are to facilitate efficient and economical services to the public and to provide for a fair and equitable system of personnel management in the municipal government.

These rules set forth in detail those procedures which insure ensure similar treatment for those who compete for original employment and promotion, and define the obligations, rights, privileges, benefits and prohibitions which are placed upon all employees in the Competitive Service of the City.

At the same time, within the limits of administrative feasibility, recognition shall be given to the fact that individuals differ, that no two individuals react alike to reward and discipline or to uniform motivation and encouragement. For this reason, considerable latitude shall be given to the Personnel Officer in the execution of his their duties and responsibilities relating to employee morale and discipline.

RULE I-B DEFINITION OF TERMS
The terms used in these Rules shall have the same meaning as defined below:
(a) Advancement in salary: a salary increase within the limits of a salary range established for a classification.
(a)(b) Advancement in Classification Series: advancing from one level to a higher level within the same, flexibly staffed, classification series.
(b)(c) Allocation: the assignment of a single position to its proper a specific classification in accordance with the duties performed and the authority and responsibilities exercised.
(c)(d) Anniversary Date: the date an individual employee useds to compute eligibility for salary advancement or other changes in status, as established in the provisions of these Rules.
(d)(e) Candidate: an applicant participating in an examination the selection Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
7 process.
(e)(f) Classification: a position or group of positions with duties and responsibilities so similar that the same title, example of duties, qualifications, and salary range can be applied with equity. (g) Clerical Employee: shall be specifically defined as any employee in the following classification: Administrative Support Specialist I, II and Senior, Administrative Assistant, Executive Assistant, Public Safety Clerk, Senior Public Safety Clerk, and other related classifications as designated by the Personnel Officer.
(f)(h) Close Relative: husband, wife, domestic partner, son, daughter, sister, brother, mother, father, stepfather, stepmother, grandparent, grandchild, mother-in-law, father-in-law, sister-in-law, brother-in-law, son-in-law, or daughter-in-law, or grandparent-in-law.
(g)(i) Competitive Service: the positions specified in the Personnel Classification Plan Ordinance as being in the competitive service. (h)(j) Demotion: the change in status of an employee from a position in one classification to a position in a different classification having a lower maximum rate of salary.
(i) Eligible List: a list of names of persons who are eligible for appointment to a particular classification pursuant to the Personnel Ordinance and Rules. (j) Examination: any test or combination of tests used to measure particular qualifications or abilities of applicants for a position. (k) Exempt Service: the positions, officials, and employees generally not subject to the provisions of the Personnel Ordinance and the Personnel Rules and the resolutions adopted pursuant thereto, as set forth in the Personnel Ordinance.
(l) Permanent Regular Employee: an employee who has successfully completed the probationary period and has been retained as provided in these Rules.
(m) Personnel Ordinance: City of Newark, California Ordinance No. 77 which creates a personnel system for the City.
(n) Probationary Period: a working, on-the-job test period during which an employee is required to demonstrate fitness for the duties of the position Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
8 to which the employee was appointed by actual performance of the duties of the position.
(o) Promotion: the change in status of an employee from a position in one classification to a position in a different classification having a higher maximum rate of salary.
(p) Reclassification: the change in allocation of an individual position in one classification to another classification, on the basis of significant change in the kind or difficulty of duties and responsibilities of the initial position. (q) Reduction in salary: a decrease in salary, within the salary range established for classification.
(r) Regular Part-Time Appointment: an appointment to a position that is scheduled to work less than the standard work week for a full-time employee but not less than 20 hours per week on a year-round continuous basis for an unspecified period of time.
(s) Reinstatement: the re-employment of a former permanent regular employee from the competitive service a reinstatement list. (t) Seniority: an employee's accumulated time spent in active service to the City, during which the employee was maintained on the City payroll, excluding that time spent on leave of absence as provided in these Rules. (u) Suspension: the temporary separation of an employee from the service without salary for disciplinary purposes.
(v) Temporary Appointment: an appointment of a person to a position for a limited period of time. Temporary appointments may be for a limited term not to exceed six (6) months per fiscal year, casual term not to exceed 1000 hours per fiscal year, or an extended term not to exceed three five years. Temporary employees are exempt from competitive service of the City.
(w) Transfer: the change in status of an employee from one position in a classification to another position in the same or a different classification having essentially the same salary range, requiring the performance of similar duties, and the same basic qualifications.
(x) Working Day: a day during which the employee is or would have been regularly scheduled to report to work.

RULE II

GENERAL PROVISIONS
Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
9 Section 1 MEMORANDUM OF UNDERSTANDING
In the event that any provisions of these Rules concerning matters within the scope of representation as set forth in the Employer-Employee Relations Ordinance No. 115 of the City of Newark, California, conflict with any provisions in any Memorandum of Understanding approved by the City Council and in effect between the City and a formally recognized employee organization, the terms of the Memorandum of Understanding shall prevail.

Section 2 VIOLATION OF RULES
Violations of the provisions of these rules shall be grounds for dismissal, rejection, suspension, or other disciplinary action.

Section 3 APPLICATION OF RULES
Unless specified in the content, these Rules shall be applied to all positions and employees in the competitive service of the City of Newark. Unless otherwise specified, these Rules do not apply to exempt employees.

Section 4 OUTSIDE EMPLOYMENT
No member of the competitive or exempt service shall accept or continue employment from an entity other than the City of Newark without specific approval of the Personnel Officer City Manager. The Personnel Officer City Manager may approve outside employment where he/she they finds it creates no substantial conflict with the City of Newark employment. Members of the competitive service employed on the effective date of this resolution shall have 60 days within which to comply with the resolution.

Section 5 CONFLICT OF INTEREST – COUNCIL AND CITY MANAGER DUE TO

PERSONAL RELATIONSHIP
A close relative of any member of the City Council or any board or commission or the City Manager shall not be appointed to any regular or exempt position with the City.

An application for employment of any family member or close relative of any members of the City Council or any board or commission shall not be accepted until the end of one year following the termination of service of that member of the City Council, board or commission.

Conflict of interest rules applicable to exempt and non-exempt employees are provided by internal policy.

No person shall be appointed to or transferred into any department of the City where such action would compromise supervision or reduce the effectiveness of an internal Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
10 audit procedure due to the relationship of the individuals involved.

Section 6 AMENDMENT OF RULES
Amendments and revisions shall become effective upon adoption of a resolution by the City Council.

RULE III

CLASSIFICATION
Section 1 PREPARATION OF PLAN
The Personnel Officer, or a person or agency employed, retained or contracted with for that purpose, shall ascertain and record the duties and responsibilities of all positions in the competitive service and all other positions they deem it desirable to include, and after consultation with heads of departments affected, shall recommend a classification with heads of departments affected, shall recommend a classification plan for such positions. The classification plan shall consist of classes of positions in the competitive service and any other positions the Personnel Officer deems it desirable to include defined by class responsibilities of positions in each class, the probationary period, a statement of the training, experience and other qualifications to be required of applicants for positions in each class. The classification plan shall be so developed and maintained that all positions substantially similar with respect to duties, responsibilities, authority, and character of work are included within the same class, and that the same schedules of compensation may be made to apply equitably under like working conditions to all positions in the same class.

Section 2 ADOPTION OF PLAN
The Classification Plan was established and approved by the City Council on February 28, 1963 (Resolution No. 943) and became effective March 11, 1963. The provisions of the classification plan shall be observed in the handling of all personnel actions and activities. The classification plan shall be amended or revised as occasion requires.

Section 3 ALLOCATION OF POSITIONS
Following the adoption of the classification plan, the Personnel Officer shall allocate every position in the competitive service to one of the classes established by the plan.

Section 4 NEW POSITIONS
No person shall be appointed or employed to fill any position until the classification plan shall have has been amended to provide therefore and an appropriate employment eligible list has been established for such position.

Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
11 Section 5 RECLASSIFICATION
Positions, the duties of which have changed materially so as to necessitate reclassification, shall be allocated by the Personnel Officer to a more appropriate class, whether new or already created, in the same manner as originally classified and allocated. Reclassification shall not be used for the purpose of avoiding restrictions surrounding demotions and promotions.

Section 6 AMENDING THE CLASSIFICATION PLAN
The City Manager or designee may create new classes or abolish existing classes.

The Personnel Officer or designee may revise existing classes.

RULE IV COMPENSATION
Section 1 PREPARATION OF PLAN
The Personnel Officer or the person or agency employed, retained or contracted with for that purpose shall prepare a compensation plan covering all classes of positions in the competitive service and any other positions he/she they deems it desirable to include not covered by Memorandaum of Understanding as provided in City of Newark Ordinance No. 115 establishing a system for Employer-Employee Relations. This plan shall cover the minimum and maximum rates of pay, employee benefits payable, and hours of work for the classifications covered.

Section 2 APPROVAL OF COMPENSATION LEVELS
The City Council shall, by adoption of a resolution, implement a compensation plan for positions classifications not represented by a recognized bargaining unit or arrived at through meeting and conferring with recognized bargaining units as specified under Ordinance No. 1165, specifying the compensation levels for all classifications positions in the competitive and exempt service of the City of Newark. No position shall be assigned a salary higher than the maximum or lower than the minimum salary provided for that class of position classification unless the compensation level is amended by a subsequent City Council resolution.

Section 3 ONLY AUTHORIZED COMPENSATION
No member of the competitive service shall accept anything of value for the performance of his/her official duties and acts or other acts performed while at work for the City of Newark except compensation duly authorized by the City Council.

Section 34 OATH OF OFFICE
No compensation shall be paid to any employee who has not executed or affirmed an Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
12 oath of office.

RULE V

APPLICATIONS AND APPLICANTS
Section 1 ANNOUNCEMENT OF EXAMINATION
When necessary to establish an eligibility list, the Personnel Officer shall prepare a job announcement which shall specify the position title, nature of duties, minimum qualifications, rate of compensation, application procedure, and other pertinent information. Suitable and effective methods of distributing information relative to job openings to secure the most qualified candidates available for competition shall be practiced.

Section 2 MINIMUM QUALIFICATIONS
The minimum qualifications established by the Personnel Officer in recruitment for a position in the competitive service shall be those shown for the classification in the Classification Plan.

Section 3 APPLICATION FORMS
Applications shall be made on the forms provided by the Personnel Officer. Such forms shall require information regarding training, experience and other information pertinent to the position to be filled. All applications must be signed by the person applying, and applications shall be given to any person requesting one.

Section 4 DISQUALIFICATION
The Personnel Officer shall reject any applicant before, during, or after examination for the following reasons:
(a) Indication on the face of the application that the applicant does not possess the minimum qualifications required for the position. (b) False statement of material fact or actual or attempted deception, fraud or misconduct in connection with the application or examination. (c) Failure to file the application with the Personnel Officer prior to the expiration of the application deadline.

Whenever an application is rejected, notice of such rejection with statement of reason for the rejection shall be mailed made to the applicant. Defective applications may be returned to the applicant with notice to amend the same, providing the time limit for receiving applications has not expired.

EXAMINATIONS
Section 1 NATURE AND TYPES OF EXAMINATIONS
The examination process shall be impartial, of a practical nature, and shall relate to those subjects which in the opinion of the Personnel Officer fairly measure the relative capacities of persons examined to execute the duties and responsibilities of the position to which they seek appointment.

In examining persons for positions in the competitive service, promotional, open, and continuous examinations may be used when practical and consistent with the best interest of the service.

Examinations shall consist of selection techniques which test fairly the qualifications of candidates, such as but not necessarily limited to achievement and aptitude tests, other written tests, personal interviews, performance tests, physical agility tests, evaluation of daily work performance, work samples, medical tests, psychological tests, successful completion of prescribed training, or any combination of these or other tests except as limited by applicable State law. The probationary period shall be considered as an extension of the examination process.

Section 2 PROMOTIONAL EXAMINATIONS
Candidates for promotional examinations must possess minimum qualifications required for the new position. Only competitive service employees or former employees who were subject to layoff within the last 24 months who meet the requirements set forth in the promotional examination announcements may compete in the promotional examination.

Promotional examinations may include the types of tests listed in Section 1 of this Rule, evaluations of actual performance appraisals of promotional potential, and accomplishments of the candidate in special training courses.

Section 3 SCORING
The Personnel Officer shall establish the lowest qualifying score on individual tests or the entire examination in accord with the needs of the service. The Personnel Officer may include as part of the examination tests which are qualifying only.

Failure in any one part of the examination may be grounds for declaring such applicant as failing in the entire examination or as disqualified for subsequent parts of the examination, if such fact is stated in the examination announcement.

The overall scoring of an examination shall be in accord with the method of scoring Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
14 specified in the examination announcement.

Section 4 NOTIFICATION OF EXAMINATION RESULTS
Each candidate in an examination shall be given written notice of the results thereof.

RULE VII

ELIGIBLE LIST
Section 1 ESTABLISHMENT
The Personnel Officer shall prepare and maintain eligible lists consisting of the names of candidates who qualified in the examination.

Section 2 TYPES OF ELIGIBLE LISTS
Eligible lists shall be of three types:
(a) Open Lists. These lists consist of eligibles candidates who have successfully competed in an examination open to any person. (b) Promotional Lists. These lists consist of City employees or former employees who were subject to layoff within the last 24 months who have successfully competed in a promotional examination.
(c) Reinstatement Lists. These lists consist of persons who have been separated from service as the result of a reduction in work force (lay-off).

Refer to Rule XIII, Section 4 for information pertaining to the reinstatement list.

Section 3 DURATION OF ELIGIBLE LISTS
Open eEligible lists shall remain in effect for a minimum period of six (6) months, nine (9) months or twelve (12) months as determined by the Personnel Officer unless sooner exhausted or abolished by the Personnel Officer. Eligible lists may be extended prior to their expiration date by action of the Personnel Officer for an additional period, more than once, up to a maximum of two (2) years.

Open eligible lists created as the result of continuous examinations shall remain in effect for a period of six (6) months, nine (9) months, or twelve (12) months as determined by the Personnel Officer, but no longer than twelve (12) months after the last administration of an examination, unless sooner exhausted or abolished. Names placed on continuous examination lists shall remain on the list for a period of time as determined by the Personnel Officer not to exceed twelve (12) months.

Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
15 Promotional eligible lists shall remain in effect for twelve (12) months and may be extended prior to their expiration date by action of the Personnel Officer for an additional period of six (6) or twelve (12) months up to a maximum of two (2) years.

Whenever there are three (3) or fewer than five (5) candidates willing to accept appointment on an open eligible list, the Personnel Officer may abolish that list and establish a new open eligible list. Multiple active eligible lists may be created for the same classification in which the recruitment is continuous, to provide for one open and one promotional eligible list for each classification or or promotional with a current eligible list from an open recruitment, or unique positions utilizing the same classification but with varying functions within the City.. No more than two active lists, one open and one promotional, shall exists for the same classification and/or unique functional position.

Section 4 REMOVAL OF NAME FROM ELIGIBLE LIST
This section applies to open and promotional lists only. Refer to Rule XIII, Section 4 for information pertaining to reinstatement lists.

Names of candidates may be removed from an eligible list by the Personnel Officer for any of the following reasons:
(a) Upon written request of the candidate.
(b) Upon evidence that the candidate cannot be located by postal authoritiesvia the contact information at the address provided by the candidate.
(c) Failure of the candidate to respond to an written inquiry within the designated time.
(d) Failure to accept an offer of appointment.
(e) Termination of an employee whose name is on a promotional eligible list. (f) Failure of background investigations or polygraph examinations. (Polygraph examinations are used for certain public safety positions only.) (h) Appointment from the eligible list to a regular full-time status position. (i) Failure to pass the medical examination or psychological examination following a conditional offer of employment.
(i)(j) Upon recommendation from the hiring department after an interview determining their knowledge, skills, and/or abilities do not meet minimum qualifications.

Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
16 Section 5 ALTERNATE ELIGIBLE LIST
If a vacancy exists in a class for which there is no reinstatement list, open eligible list, promotional eligible list, or there are less than three candidates available on an open or promotional eligible list, the Personnel Officer may prepare an appropriate eligible list for the class from one or more existing eligible lists. For this purpose, the Personnel Officer shall select eligible lists for classes for which minimum qualifications and examinations are similar to or higher than those required for the class in which the vacancy exists.

RULE VIII

APPOINTMENT
Section 1 APPOINTMENT AUTHORITY
If a position vacancy in the competitive service is to be filled, the department head shall notify the City Manager Personnel Officer in the manner prescribed. If the vacancy is to be filled and there is no reinstatement list, the Personnel Officer City Manager shall decide whether how to fill the vacancy by transfer, demotion, appointment from a promotional or an open eligible list, or any other type of appointment available according to applicable Personnel Rules, regulations, and Memoranda of Understanding.

Section 2 APPOINTMENT FROM ELIGIBLE LIST
When it is the decision of the Personnel Officer City Manager to fill a position vacancy by appointment from an eligible list, and there is no reinstatement list for the position classification, the Personnel Officer shall certify an open or promotional eligible list to the department head. The names of candidate will appear alphabetically. under a qualification category based on final examination scores. The Personnel Officer shall determine the appropriate grouping of candidates under qualification categories based on final examination scores. The appointing authority may appoint any eligible candidate on an open or promotional list regardless of rank or final score.

An eligible candidate on an eligible list may request to be waived from consideration for a particular vacancy for reasons satisfactory to the Personnel Officer. Satisfactory reasons may include but are not limited to medical, family leave, or completion of education or a specialized training program. If the reasons for the request for waiver are not approved by the Personnel Officer, then the eligible candidate's name shall be removed from the eligible list. Waivers must be filed in writing with the Personnel Officer.

Section 3 PROMOTIONAL APPOINTMENTS
An employee who leaves a position to accept appointment to another classification shall be permanently separated from the position they formerly held by him or her; provided, Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
17 however, that any such employee, at the discretion of the Personnel Officer, within the probationary period, upon request and with approval of the department or departments concerned, may be reinstated in any vacancy in the same division and class from which he or she wasthey were separated. This section shall not preclude an employee from displacing an employee in the lower class from which the employee was promoted in the event of a reduction in work force provided the displacing employee has seniority rights over the employee in the lower classification. (Refer to Rule XIII, Section 4) Section 4 REGULAR FULL-TIME APPOINTMENT
Appointments to an authorized position budgeted on a full-time basis, 40 hours-a-week (or a full-time schedule equivalent), shall be made from an appropriate eligible list or through eligible reinstatement and shall be subject to the approval of the City ManagerPersonnel Officer. Employees appointed on this basis shall be included in the competitive service of City employment, shall serve a probationary period, and shall receive all rights and benefits outlined in personnel policy documents and appropriate memoranda of understanding or compensation and benefit plans.

Section 5 REGULAR PART-TIME APPOINTMENT
Appointments to authorized positions budgeted and regularly scheduled for 20 hours or more per week (or a half-time or more schedule equivalent) but for less than 40 hours per week (or a full-time schedule equivalent) on a year-round continuous basis for an unspecified period of time, shall be made from an appropriate eligible list and shall be subject to the approval of the Personnel OfficerCity Manager.

Regular part-time employees appointed from an eligible list may be considered for appointment to a regular full-time position in the same classification subject to the approval of the City Manager. Service time earned as a regular part-time employee will be considered in calculating City seniority provided that the part-time service is contiguous with the full-time appointment.

Section 6 TEMPORARY APPOINTMENT
Temporary appointments may be designated as Limited Term, Temporary, or CalPERS Retired Annuitant or by emergency appointment. These designations are further defined in the City’s regulations.There are three types of temporary appointments:
(a) (a) Limited Term: Shall mean a person appointed and authorized by the City Manager to work on a special project that has a limited duration or to positions budgeted under a special grant or funding source that is separate from the City’s base operating budget. Continued employment shall be dependent on the availability of work associated with a specific project and/or the continuation of special funding. Extended temporary employees shall be appointed from an eligible list and shall not exceed Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
18 three years. The City Manager may extend the employment duration for up to an additional two years, for a total not to exceed a duration of five years. Appointment to a part-time or full-time position established with a regular fixed schedule for a duration of six months or less. Such appointment may be extended an additional six months for a total temporary employment period not to exceed twelve months upon the approval of the City Manager.
(b)
(c) Extended Term: Appointments authorized by the City Manager to work on a special project that has a limited duration or to positions budgeted under a special grant or funding source that is separate from the City's base operating budget. Continued employment shall be dependent on the availability of work associated with a specific project and/or the continuation of special funding. Extended temporary employees shall be appointed from an eligible list and shall not exceed three years. (d) Seasonal and CasualTemporary: Appointments to work on a sporadic, irregular, or temporary basis and and/or part-time basis. employees who work less than 20 hours per week on a continuous basis shall be designated as temporary and their employment shall not exceed 1000 work hours per fiscal year.

Temporary employees shall be designated asconsidered exempt and may be terminated from employment with the City
with or without cause or notice, at any time, at the will of the City in its sole discretion.

Such action shall not be made in accord with the formal provisions of these Rrules or the personnel ordinance.
at any time and for any reason or for no reason at all.

With the exception of Limited Term designated employees, tTemporary employees receive no insurance, or leave, or other benefits except those mandated by law.

Employees appointed on an extended temporary basis to a full-time position in the competitive service for a period of more than twelve months shall receive the same benefits as full-time employees in the same classification.

No special credit shall be allowed for service rendered under a temporary appointment except as provided in memoranda of understanding. Employees serving a temporary appointment shall be exempt from tenure, disciplinary proceedings, transfer, and removal provisions of these rules and from provisions regarding probation.

Section 7 EXEMPT SERVICE APPOINTMENT
The City Manager shall appoint, discipline, or dismiss persons in temporary and limited Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
19 term , part-time, intermittent, seasonal or CETA employment with the City of Newarkin the exempt service.Exempt employees may be terminated with or without cause or notice, at any time, at the will of the City in its sole discretion. Such action shall not be made in accord with the formal provisions of these rules or the personnel ordinance.

Section 8 EMERGENCY APPOINTMENT
To meet the immediate requirements of an emergency condition such as an extraordinary fire, flood, or earthquake, or which threatens public life or property, any legally competent officer or employee may employ such persons as may be needed for the duration of the emergency without regard to the Personnel Ordinance Municipal Code or Rules affecting appointment. As soon as possible, such appointment shall be reported to the Personnel Officer.

RULE IX

PROBATIONARY PERIOD
Section 1 OBJECTIVE
The probationary period shall be regarded as an intrinsic part of the examination process and shall be utilized for closely observing the employee's capability for performing the duties of the position. A probationary employee whose performance does not meet the required standards shall be released from employmentterminated. A person who has
completed the probationary period as prescribed for his/hertheir classification shall assume regular status in the competitive service.

Section 2 DURATION
All appointments to positions in the competitive service shall be subject to a probationary period. The regular probationary period shall be six (6) months but longer periods may be specified in individual classification descriptions and shall apply to all positions in that classification.

Section 3 REJECTION FOLLOWING PROMOTION
Any employee rejected for failure to meet the requirements of the position during the probationary period following a promotional appointment shall be re-instated to the position from which he/she wasthey were promoted unless disciplinary charges are filed and the employee is discharged terminated from the competitive service.

Section 4 EXTENSION OF PROBATIONARY PERIOD
If a probationary employee is on leave of absence for more than thirty twenty (230) calendar working days cumulatively, the probationary period of that employee shall be Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
20 extended for a period commensurate with the length of the leave of absence.

Probation may also be extended in order to provide additional time for training and skill evaluation. The maximum a probation period may be extended, in addition to a leave of absence extension as discussed above, is six months.

RULE X

ATTENDANCE AND LEAVES
Refer to the applicable Employment Contracts, Memorandum of Understanding and/or Compensation and Benefits Plan for the leaves entitled to Eemployees in the competitive and exempt service and the City Manager. In addition to those specified, employees shall be entitled to additional leaves as followsprovided in this Rule X.:

Section 1 ANNUAL VACATION LEAVE
The purpose of annual vacation leave is to enable each eligible employee annually to return to his work mentally and physically refreshed. Vacation leave shall be provided under the following conditions:
(a) Employees who have served less than six (6) months with the City shall receive no vacation except that after completion of six (6) months the employee shall receive credit for the first six (6) months in service of the City.
(b) The following annual vacation leave entitlement shall be provided:
(1) Eligible employees who have served less than five (5) years with the City of Newark shall earn vacation entitlement as follows:
(a) Positions in the classifications of Firefighter and Fire Captain - 12 hours per month.
(b) Position in the classifications of Police Officer and Police Sergeant - 7.5 hours per month.
(c) All other positions - 6.67 hours per month.
(2) Eligible employees during their fifth year of employment with the City of Newark shall earn vacation entitlement as follows:
(a) Positions in the classifications of Firefighter and Fire Captain - 18 hours per month.
(b) Positions in all other classifications - 10 hours per month.

Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
21 (3) Eligible employees during their fifteenth year of employment with the City of Newark shall earn vacation entitlement as follows:

(a) Positions in the classifications of Firefighter and Fire Captain - 24 hours per month.

(b) Positions in all other classifications - 13.34 hours per month. (c) No vacation may be taken before it is earned except that a vacation may be commenced and taken where the total vacation will have been earned as of the final day of vacation, in the case of eligible personnel, where one or more municipal holidays fall during a vacation, which such eligible personnel would otherwise be entitled to such holiday, the vacation shall be extended by the number of holidays that fall during the vacation.
(d) Vacations must be taken during the year following the date on which the employee completed accumulation of one full year of vacation credit except that the Personnel Officer may approve accumulation of more than one year's entitlement upon finding that such accrual does not adversely affect the needs of the service. The times at which an employee shall take his vacation shall be determined by the department head who, in so doing, shall give due regard to the desires of the employee and particular regard to the needs of the service.
(e) When an employee is terminated, he shall receive a lump sum payment for accrued vacation credits. For purposes of calculating the payment due the employee, service shall be rounded off to the nearest month, giving the employee credit for a whole month where a half month or more is due and eliminating service credit of less than half a month. No such payment shall be made for vacation accumulated contrary to the provisions of these rules. (f) For the purposes of determining the rate of vacation credits, only eligible continuous service with the City of Newark shall be considered. However, a valid leave of absence without pay of less than 30 days shall have no effect on vacation credits. No vacation credits shall accrue during an authorized leave of absence without pay of more than 30 days.
(g) No former employee is entitled to vacation pay by reason of this rule. (h) No employee or future employee shall accrue vested rights by reason of the adoption of this resolution or by reason of service after the adoption of this rule. The City Council reserves the right to alter the policies herein, even though such action may alter the amount of "earned" vacation credits of an employee.

Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
22 Section 2 SICK LEAVE
The purpose of sick leave is to allow employees who are ill or injured to remain absent from work with pay, within the limitations of this section. (a) Sick leave is granted to an employee to recover from illness or injury so as to be physically able to return to work.
(b) Sick leave is expressly not for the purpose of personal business, illness of other members of the family, bereavement leave, or any other purpose other than recovery from illness or injury.
(c) Sick leave with pay may be granted by the Personnel Officer at the rate of one work day for each calendar month of service. Employees shall accumulate unused sick leave at the rate of 12 work days a year to a total of not more than 120 days, except employees classified as Management under Ordinance No. 115 shall accumulate unused sick leave to a total of not more than 180 work days. One 24-hour work shift in the Fire Department shall be deemed two work days for the purposes of this section.
(d) In order to receive compensation while absent on sick leave, the employee shall notify his immediate superior or other competent authority as soon as practicable, preferably prior to the time set for beginning his daily duties. He must submit to the Personnel Officer application for sick leave showing such information as required by the Personnel Officer. Such applications shall be factually correct. The Personnel Officer may make such investigations as he feels necessary and may require supplemental information from the employee.

(e) Where an employee receives workers' compensation salary continuation benefits, and where sick leave is approved, the City shall pay the employee his full salary excluding therefrom the employee's workers' compensation benefits. The employee's sick leave entitlement shall be charged on a pro rata basis.

(f) With the adoption of this resolution, employees shall be credited with accumulated sick leave they had accrued as of the date of its adoption.

(g) Employees who have served less than six months with the City of Newark shall receive no sick leave except that after completion of six months the employee shall receive credit for the six months of service in the City.

Section 13 MILITARY LEAVE
Military leave shall be granted in accordance with the provisions of state and federal law.

All employees entitled to military leave shall give the department head an opportunity within the limits of military regulations to determine when such leave shall be taken.

Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
23 Section 24 LEAVE OF ABSENCE WITHOUT PAY
Leaves of absence without pay may be granted as follows:
(a) Human Resources will grant leaves of absence without pay upon the request of eligible employees in accordance with mandated protected leaves including such as Military Leave (USERRA), Pregnancy Disability Leave (PDL), the Family and Medical Leave Act (FMLA), and the California Family Rights Act (CFRA).
(b) Human Resources will grant maternity leave with and/or without pay for up to a total of nine months in duration (including time covered by protected leaves) when the employee applies for such leave stating the intention to return to work and provides appropriate medical certification verifying the pregnancy. The nine months of maternity leave includes time off during PDL, FMLA, and CFRA and is not in addition to covered protected leave. (c) Department heads may grant unprotected leaves of absence without pay upon the request of the employee for any purpose not contrary to the best interest of the City where such leave does not adversely affect the needs of City services, does not extend for more than seven consecutive calendar days, and does not occur in frequency more than twice in any calendar year. (d) The City Manager may grant a leave of absence upon request of the employee and with the recommendation of the Department Head to extendof up to one year beyond protected leaves, where such leave would not unduly affect the needs of City services, and that such leave would be of benefit to the City.
(e) Employees may request to keep a combined total of one week (up to forty hours depending on work schedule) of vacation/general leave and/or compensatory time off (CTO) subject to Memorandum of Understanding MOU provisions and department head approval. The request must be made when requesting a leave of absence without pay for use after returning from leave.

Section 35 ATTENDANCE
Employees shall be in attendance at their work in accordance with the rules regarding hours of work, holidays, and leaves. All departments shall keep daily attendance records of employees which shall be reported to the Personnel Officer in the form and on the dates he shall specify. Failure on the part of an employee, absent without leave, to return to duty within 24 hours after notice to return shall be cause for Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
24 terminationdischarge.

Notice of termination shall be given to the employee at his/herthe employee’s address as shown on his/herthe employee’s personnel record by U.S. mail postage prepaid, return receipt requested.

Section 6 HOLIDAYS
Employees except emergency service personnel in the Police and Fire Department shall observe the following legal holidays: New Year'’s Day, Lincoln'’s Birthday, Washington'’s Birthday, Memorial Day, Independence Day, Admission Day, Labor Day, Armistice Day, Thanksgiving Day, the day following Thanksgiving Day, the last work day before Christmas, Christmas. When a holiday falls on Sunday, the following Monday shall be observed. When a holiday falls on Saturday, the preceding Friday shall be observed.

Emergency service personnel in the Police and Fire Department whose work hours are assigned without regard to municipal holidays shall receive as compensation in-lieu of holidays an amount equal to 4.62 percent of his/her regular pay, which in-lieu amount shall be paid each pay period. The in-lieu compensation factor of 4.62 percent shall not be applied and added to any payment for overtime worked or to a lump sum payment for accrued vacation in the case of a terminating employee; or to any other payment to an emergency service employee in the Police and Fire Departments, except his/her regular pay.

Section 7 BEREAVEMENT LEAVE
Bereavement leave with pay may be granted by the department head with approval of the Personnel Officer where that has been a death of a close relative of an employee in order that the employee may attend last rites and attend to any pressing matters resulting from the death. Such leave shall be no longer than necessary and shall not in any case extend more than five working days, unless the Personnel Officer approves an extension due to unusual circumstances.

Section 48 JURY DUTY
Unless otherwise specified in the applicable Memorandum of Understating and/or Compensation and Benefits Plans, Aa full-time employee summoned to jury duty shall inform his/hertheir supervisor, after receipt of such summons, and if required to serve, may be absent from duty with full salary.

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:

Work Schedule Pay
Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
25 20 -– 25 work hours per week 4-5 hours of pay per
day 30 - 35 work hours per week 6-7 hours of pay per
day
Any jury duty fees pay other than mileage and subsistence received by the employee shall be remitted to the City.

RULE XI

COMPENSATION ADJUSTMENTS
Section 1 APPLICATION OF COMPENSATION RATES
Employees occupying a position in the competitive service shall be paid a compensation within the range established for that position's class under the Compensation Plan as provided by Rule V. The minimum rate for the class generally shall apply to employees upon original appointment. However, the Personnel Officer may, when Rule XIII or circumstances warrant it, appoint at other than the first step.

Officers and employees re-employed after layoff shall receive a rate within the range established for the class which reflects his/her their relative position within the range at time of separation from the competitive service.

Section 2 ADVANCEMENT
No compensation advancement shall be made so as to exceed the maximum compensation rate established in the Compensation Plan for the class to which the employee's position is allocated. Advancement shall not be automatic, but shall depend upon increased service value of an employee to the City based on performance evaluations completed by his/her their supervisor.

Employees whose pay is specified in a five-step pay range are eligible to be advanced to higher steps as merited by progressive improvement in job skills and work performance. The following time- and in-step requirements shall apply before an employee gains eligibility for advancement in pay.

Step Time-In-Step Required
1 (at appointment)
2 6 months at Step 1
3 12 months at Step 2
4 12 months at Step 3
5 12 months at Step 4
When an employee demonstrates outstanding performance of his/her their duties, that Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
26 employee may be advanced in pay prior to completion of the above time in step requirements.

If an employee is on leave of absence without pay for more than 30 days, the time on leave shall be deducted from the employee's accumulated time in step requirement.

Section 3 ANNIVERSARY DATE
Each employee shall have an anniversary date of the first of the month as follows:

Employees appointed, promoted, reappointed, advanced in salary or otherwise the subject of a change in status, on or between the first and fifteenth day of the month inclusive, shall have the first day of that month as their anniversary date; employees appointed, promoted, reappointed, advanced in salary or otherwise the subject of change in status on or after the sixteenth and the last day of the month inclusive shall have the first day of the month immediately following as their anniversary date.

Section 4 WITHHOLDING ADVANCEMENT
Supervisors and their superiors have the authority and responsibility to recommend against an advancement in pay to the Personnel Officer if that advancement is not merited. Supervisors shall keep their employees informed about their job performance.

Good work should be given proper recognition. Deficient work should be clearly communicated to an employee as soon as practical with an offer of guidance and assistance toward improvement.

Section 5 PROMOTION
When an employee is promoted, the employee shall receive the first step in the salary range for the new position, which is closest to but not less than 5% above their current, base salary. Should 5% above current salary exceed the maximum of the new salary range, the employee shall be placed within the new range at the maximum salary available. However, if such step is equal to or less than the present salary, that employee may receive the next step in the salary range of the new position which is immediately above the present salary. If the salary range does not have steps, the employee shall be given a minimum increase of 5% in base salary.

When an employee who has been promoted is rejected for failure to meet the requirements of the position during the probationary period, that employee's salary shall revert to the same step or position in the salary range of the position prior to promotion.

Section 6 DEMOTION
When an employee is demoted for other than disciplinary reasons, that employee shall be placed at a salary step or position in the salary range in the new lower classification Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
27 which is closest to the salary rate held prior to demotion.

Section 7 RECLASSIFICATION
When a position is reallocated to a classification with a higher salary range, an incumbent employee's salary shall be placed at the step or position in the new range closest to his/her their present salary rate. In no case shall the employee be placed at a step or rate lower than present salary.

When a position is reallocated to a classification with a lower salary range, the incumbent employee shall continue at present salary rate and carry forward an anniversary date of his/her advancement to that salary rate, if their present salary is within range of the reallocated classification. If the present salary rate of an incumbent employee exceeds the maximum step of the new range, that employee's salary shall be reduced to the maximum step of the new range”Y-rated” and the employee shall maintain their current salary until the salary of the reallocated classification advances to include the employee’s “Y-rated” salary, at which point the employee will move into the salary range of the reallocated classification.

The date of the reallocation shall become the new anniversary date.

Section 8 ATTACHMENT OF WAGES
All employees requiring wage attachments shall be charged with the City’s total administrative cost for processing any attachment of wages. Such charge shall be deducted from the employee’s paycheck from the City.

RULE XII

TRANSFER, PROMOTION, DEMOTION, REDUCTION-IN-PAY

SUSPENSION AND REINSTATEMENT
Section 1 TRANSFER
The Personnel Officer may transfer an employee from one position to another position in the same or comparable class. Transfer shall not be used for the purpose of avoiding the provisions of the personnel ordinance in these rules in regard to a promotion, demotiondiscipline, advancement, or reduction. No person shall be transferred to a position for which he/shethey does not possess the minimum qualifications.

Section 2 PROMOTION
Insofar as practicable and consistent with the best interests of the service, all vacancies in the competitive service shall be considered to be filled by promotion from within the competitive service, after a promotional examination has been given and a Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
28 promotionalan eligible list established.

If the position classification provides that a vacancy could be filled by an open competitive examination instead of a closed promotional examination and/or there is not a sufficient amount of eligible promotional candidates to conduct a competitive examination, theThe Personnel Officer shall have the discretion to conduct an open competitive examination.

Section 3 DEMOTION AND REDUCTION-IN-PAY
The Personnel Officer may demote an employee whose ability to perform his required duties falls below standard, or for disciplinary purposes. Demotion may be made to a vacant position as a substitution of layoff. No employee shall be demoted to a position for which he/she does not possess the minimum qualifications. The procedure utilized to effect the demotion shall be in accordance with applicable state law.

The Personnel Officer may, within the limits of the pay range established for the position reduce in pay an employee whose performance of his/her required duties falls below standard, or for disciplinary purposes. The procedure utilized to effect the reduction in pay shall be in accordance with applicable state law.

Section 4 SUSPENSION
A department head may suspend any employee at any time for a period of not to exceed five working days in one suspension or more than ten working days in any calendar year. The Personnel Officer may suspend an employee at any time for a period of time for a period of time not to exceed 30 working days in any calendar year.

A Fire Department shift shall be considered two working days. The procedure utilized to effect the suspension shall be in accordance with applicable state law.

Section 5 ATTACHMENT OF WAGES
Alln employees requiring wage attachments in the competitive service or exempt service shall be charged the City's total administrative cost for processing any attachment of wages. Such charge shall be deducted from the employee's pay check from the City.

Section 36 REINSTATEMENT
With the approval of the Personnel Officer, an employee who has resigned with a good record may be reinstated within two years to his their former position, if vacant, or to a vacant position in a class where he/shethey held permanent status.

RULE XIII

SEPARATION FROM THE SERVICE
Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
29 Section 1 DISMISSAL
An employee in the competitive service may be dismissed by the City Manager.

Department heads may be dismissed by the City Manager subject to the approval of the City Council. The procedure utilized to effect a dismissal shall be in accordance with applicable law.

Section 2 RESIGNATION
An employee wishing to leave the competitive service in good standing shall file with his/her their supervising official, at least two weeks before leaving the service, a written resignation stating the effective date. The resignation shall be forwarded to the Personnel Officer. The resignation of an employee who fails to give notice shall be reported to the Personnel Officer by the department head immediately.

Section 3a. LAYOFF
The City Manager may lay off an employee or employees in competitive service because of material change in duties or organization or shortage of work or funds. In making such layoffs, the Personnel Reduction Procedure shall be utilized.

Section 3b. WORK SCHEDULE REDUCTIONS (REDUCTIONS IN WORK HOURS) IN LIEU OF LAYOFF1
For Management, Confidentialunrepresented employees and NAME employees, work schedules may be reduced in lieu of layoffs. The number of work schedule reductions and the amount of each reduction will be limited to the minimum needed to achieve budget reductions within each department and are not intended to affect the majority of the workforce.

When regular full-time positions are reduced, first consideration will be given to 30 to 35 hour weekly work schedules. Reductions from regular full-time to regular part-time 1 All references to work schedule reductions and rule/procedures regarding work schedule reductions in Rule XIII, Sections 3 and 4 apply to NAME, Management and Confidentialand unrepresented all regular City employees. schedules of 20 to 25 hours per week will be limited to situations in which 30 to 35 hour work weeks do not meet budgetary needs. Work schedule reductions also include the reduction of regular part-time schedules of 30 to 35 hours per week to regular part-time schedules of 20 to 25 hours per week. The Personnel Reduction Procedure shall be utilized in administering work schedule reductions in lieu of layoff.

Section 4 PERSONNEL REDUCTION PROCEDURE
Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
30 The Personnel Reduction Procedure shall be used whenever it becomes necessary to lay off a regular full-time or regular part-time employee from the competitive service or to reduce a limited number of employee work schedules in lieu of layoff because of shortage of work or funds, substantive change in duties or organization, curtailment or elimination of a public service activity, reorganization, or for other reasons. (a). Notification
This procedure shall apply to regular full-time, regular part-time and probationary employees. Notice of layoff or work schedule reduction in lieu of layoff shall be given to the affected employee and the employee association (or employee group) representing the employee at least thirty (30) calendar days prior to the effective date of layoff or work schedule reduction. The layoff notice or notice of work schedule reduction in lieu of layoff shall include a statement that the employee may have displacement rights.
(b1) Order of Layoff
The order of layoff shall be by classification within a department. In each classification in which a layoff is to occur, employees in the classification within the department shall be laid off in the following order:
(1) Temporary employees
(2) Probationary employees
(3) Regular employees in the order specified in subsection (c) and (d). (b2) Order of Work Schedule Reduction in Lieu of Layoff The order of work schedule reduction in lieu of layoff shall be by classification within a department. In each classification in which such a work schedule reduction is to occur, employees in the classification within the department shall be subject to work schedule reduction as specified in subsection (c) and (d).
(c) Order of Layoff and Work Schedule Reduction in Lieu of Layoff for Regular Full-Time Employees
In any case in which there are two or more regular full-time employees in a full-time classification from which a layoff or work schedule reduction in lieu of layoff is to be made, the order of layoff or reduction shall be that the regular full-time employee with the least seniority in the classification within the department shall be laid off or subject to work schedule reduction first.

The order of layoff or reduction for regular full-time clerical employees shall be that the employee with the least seniority in the classification shall be laid off or subject to work schedule reduction first, regardless of department Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
31 assignment. (Clerical employees shall be specifically defined as Administrative Support Specialist I, II and Senior, Administrative Assistant, Executive Assistant, and Public Safety Clerk and Senior Public Safety Clerk.)
(d) Order of Layoff and Work Schedule Reduction in Lieu of Layoff for Regular Part-Time Employees
In any case in which there are two or more regular part-time employees in a regular part-time classification from which a layoff or work schedule reduction in lieu of layoff is to be made, the order of layoff or reduction shall be that the regular part-time employee with the least seniority in the classification within the department shall be laid off or subject to work schedule reduction first. The order of layoff or reduction for regular part-time clerical employees shall be that the employee with the least seniority in the classification shall be laid off or subject to work schedule reduction first, regardless of department assignment. (Clerical employees shall be specifically defined as Administrative Support Specialist I, II and Senior, Administrative Assistant, Executive Assistant, and Public Safety Clerk and Senior Public Safety Clerk.)
(e) Seniority
(1) For the purpose of a reduction in work force, seniority includes all periods of regular full-time, regular part-time, and probationary service at or above the classification level where layoff, displacement or work schedule reduction in lieu of layoff is to occur and time served on military leave from the City. Seniority for regular part-time employment shall be prorated based on authorized work schedule. Periods of time during which an employee was on leave of absence without pay shall not be included in the calculation of seniority. For the purpose of layoff only, employees represented by NAME shall include as service time an employee's unpaid absence up to one year resulting from layoff, or industrial injury, or other approved medical leave.
(2) For the purpose of layoff only, an employee in a higher classification shall have seniority rights over other employees in the next lower job classification in a classification series provided that the employee previously held regular full-time status in the lower classification. (Classification series shall be defined as a specific classification with different levels of complexity identified such as a I, II, III or senior level, e.g. Administrative Support Specialist I, Administrative Support Specialist II and Senior Administrative Support Specialist.) (3) Employees appointed to regular part-time status on or before July 1, Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
32 1991 shall count service time in similar classifications prior to their regular part-time appointment when calculating job classification seniority.
(4) Regular full-time employees in a higher classification within a sworn police ladder or fire career ladder shall have seniority rights over other employees in the next lower job classification in the career ladder provided that the employee previously held regular full-time status in the lower classification. (Career ladder shall be defined as the normal progression from an entry level position through the ranks of supervisor and management within a specific occupational group such as the sworn police career group or firefighter career group.) (5) Temporary and acting appointments to a classification shall not be construed as service in such classification.
(6) Whenever the effective date of appointment to a classification is the same for two or more employees, the date of appointment to the department, adjusted for unpaid leaves, shall be used to determine which employee has greater length of service within the classification.

If classification and department seniority are the same, the original date of hire with the City, adjusted for unpaid leaves, shall be used to determine seniority.
(7) Whenever the appointment date to a classification and the original date of hire with the City are the same for two or more employees, the highest overall score achieved on the eligibility list shall be used to determine who has the higher seniority. If scores are equal or unavailable, the determination of seniority shall be by lottery. (f) Displacement
A regular-full time and promotional probationary employee may displace (bump) employees within the same department (for purposes of layoff, Department shall be defined as those organizational units described as departments in the current year's budget or subsequently approved or recognized by City Council action) based on the following criteria:
(1) Regular full-time and promotional probationary employees shall have the right to displace (bump) employees in a lower full-time classification within the same department provided the employee previously held regular full-time status in the lower classification. An employee in a clerical classification shall have the right to displace an employee in a lower level (lower in salary range) clerical classification in which they oncepreviously held regular status in any department.

Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
33 (2) Regular part-time and promotional probationary employees shall have the right to displace (bump) employees in a lower part-time classification within the same department provided the employee previously held regular part-time status in the lower classification. An employee in a clerical classification shall have the right to displace an employee in a lower level (lower in salary range) clerical classification in which they once previously held regular part-time status in any department.

Regular part-time employees who were subject to work schedule reduction in lieu of layoff that previously held regular full-time status for six consecutive months shall have the right to displace (bump) employees in a lower part-time or full-time classification within the same department (or in any department for clerical classifications) provided the employee previously held regular status in the lower classification.
(3) A regular full-time and promotional probationary employee shall have the right to displace (bump) a regular part-time employee in the same class or lower classification in the classification series within the same department (for clerical classes regardless of department) if the regular full-time employee has more seniority within the classification series. A regular part-time employee has no rights to displace a regular full-time employee unless the regular part-time employee was subject to work schedule reduction in lieu of layoff and previously held regular full-time status for six consecutive months. Classification seniority for regular part-time employees shall be prorated based on authorized work schedule.
(4) A regular full-time employee hired directly into a higher job classification in a classification series may displace an employee in a lower classification within the classification series if the regular full-time employee has more seniority within the classification series than the employee occupying the lower level class. (Refer to Section (e)(2) for definition of classification series.)
A regular part-time employee who was subject to work schedule reduction in lieu of layoff who previously held regular full-time status for six consecutive months and who was hired directly into a higher job classification in a classification series may displace an employee in a lower classification within the classification series if the regular parttime employee has more seniority within the classification series than the employee occupying the lower class. (Refer to Section (e)(2) for Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
34 definition of classification series).
(5) Displacement rights afforded an employee shall include access to those classifications in which the employee has previously served but which may since have been retitled but where, as determined by the City, no substantive changes have been made in the duties or qualifications for the classification(s) in question.
(6) An alternative to layoff would be a voluntary demotion to a lower vacant classification. If a vacant position exists, the City Manager shall have the discretion to demote an employee to such position. To qualify for such a demotion, the employee must be fully qualified, trained, and capable of performing all work in the lower position as determined by the City. The salary assignment shall be based on the City's assessment of the employee's level of qualification within the lower level position salary range.

An alternative to layoff would be a voluntary work schedule reduction by a regular full-time employee in a classification identified for layoff or reduction by a department (or in any department for clerical classifications). The City Manager shall have the discretion to approve or deny such voluntary work schedule reductions. The Personnel Reduction Procedure for Work Schedule Reductions in Lieu of Layoff will apply to approved voluntary work schedule reductions as an alternative to layoff.
(7) Current regular full-time and part-time employees in the Building, Equipment, Parks and Landscape, and Streets work groups of the Maintenance Division, who have successfully completed probation by March 31, 2011, as a Building Mechanic II, Equipment Mechanic I, Equipment Mechanic II, Landscape and Park Maintenance Worker I, Landscape and Park Maintenance Worker II, Senior Building Mechanic, Senior Equipment Mechanic, Senior Landscape and Park Maintenance Worker, or Street Maintenance Worker II and who meet the minimum qualifications for Laborer or Landscape Inspector shall have the right to displace (bump) employees in the
Laborer or Landscape Inspector classification. This displacement right is in addition to other displacement rights that may exist in accordance with Rule XIII, Section 4(f).

Current regular full-time and part-time employees who have successfully completed probation by March 31, 2011, as a Building Mechanic II, Equipment Mechanic I, Equipment Mechanic II, Landscape and Park Maintenance Worker II, Senior Building Mechanic, Senior Equipment Mechanic, Senior Landscape and Park Maintenance Worker, or Street Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
35 Maintenance Worker II who meet the minimum qualifications for Landscape Inspector shall have the right to displace (bump) employees in the Landscape Inspector position. This displacement right is in addition to other displacement rights that may exist in accordance with Rule XIII, Section 4(f).
(g) Request For Displacement and Determination of Salary In order to displace to a former classification, an employee must request such action in writing to the Personnel Human Resources Department within seven calendar days of receipt of notice of layoff or work schedule reduction in lieu of layoff. An employee returning to a former classification shall be assigned to the step in the salary range for the lower classification that is closest to but does not exceed the employee's current rate of pay. In no case shall the salary be increased above that received by the employee in the class from which the employee is laid off.
(h) Reinstatement List
(1) Order The names of persons laid off, displaced due to bumping, or subject to work schedule reduction in lieu of layoff in accordance with the Personnel Reduction Procedure shall be entered upon a Reinstatement List in the inverse order in which the layoff or reduction occurred. There shall be separate lists for regular full-time and regular part-time classifications. Lists from different times for the same classification shall be combined into a single list.

The names of persons subject to work schedule reductions in lieu of layoff shall be placed on a reinstatement list for full-time status or an increased work schedule in the same classification.
(2) Duration Names of persons laid off from their appointed position, displaced due to bumping, or subject to work schedule reduction in lieu of layoff shall be carried on a Reinstatement List for two years except that persons appointed to regular positions of the same classification and status as that from which laid off or reduced in hours shall, upon such appointment, be removed from the list. Employees who accept demotion or are recalled to a lower classification shall remain on the list for the higher classification until the list expires. Full-time employees who accept or are recalled to a part-time position shall remain on the list for recall to the regular full-time class from which laid off until the list expires.
(3) Recall Appointments shall be made from the Reinstatement List in the order they appear on the list when a vacancy arises in the same Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
36 classification and department, provided the employee held regular status in that classification before selection is made from an eligible list. If there are no such employees available for reinstatement, a department shall appoint the next qualified employee on the Reinstatement List who previously held regular status in that classification.

Employees laid off, displaced due to bumping, or subject to work schedule reduction in lieu of layoff from clerical classifications shall be recalled or given increased work hours in inverse order of layoff or work schedule reduction when a vacancy arises in the same classification in any department.

Reinstatement may be subject to passing a medical examination if the layoff period exceeds twelve months.

Any person who does not respond within fourteen (14) calendar days to a letter offering reinstatement sent registered mail (return receipt requested) addressed to their last known address shall be removed from the list. If an employee elects to become reinstated, he/shethey shall report to work or return to an increased work schedule within thirty (30) calendar days from notice to City that they he/she will return to work.

An employee who is laid off or subject to work schedule reduction in lieu of layoff, when offered reinstatement, who is unable to accept due to medical reasons as certified by a physician,following the City engaging in the interactive process with the goal to return the employee to work, the employee may be granted an additional thirty (30) calendar days to report to work or return to an increased work schedule. When an employee is unable to return to work or return to an increased work schedule due to a medical condition within the sixty (60) calendar day period, the City shall recall the next employee on the Reinstatement List and the disabled other former employee's name shall remain on the List and eligible for recall for the remaining duration of the two year period.

If an employee declines reinstatement to a regular position of the same classification and status or fails to report for work within the thirty (30) calendar day period, except for medical condition as specified herein, the employee's name shall be removed from the Reinstatement List and the City shall have no further obligation for employment. (i) Reinstatement Rights for Regular Full-Time and Regular Part-Time Employees
Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
37 (1) An employee reinstated from a layoff or work schedule reduction in lieu of layoff reinstatement list within two years of the effective date of layoff or reduction shall retain cumulative service credited as of the date of layoff or reduction for purposes of determining seniority in the event of future layoffs and other matters based on City seniority. (2) Reinstatement after a twelve (12) month absence may be subject to passing a medical examination.
(3) Upon reinstatement from layoff, an employee shall resume accrual of vacation at the rate which corresponds to his/hertheir years of service on the date of separation from employment. An employee's unused sick leave balance or sick leave bank balance, if any and as applicable, on the date of separation shall be restored. (4) The period of time during which the employee is on unpaid status shall not count toward service credit. However, employees represented by NAME, shall receive service credit for unpaid absence or for the reduction in work hours in lieu of layoff up to one year (prorated for reductions) caused by layoff or reductions in lieu of layoff for purposes of seniority in determining layoffs or work schedule reductions only. (5) Upon reinstatement to the same classification from which laid off, an employee shall be placed at the same salary step which he/shethe employee occupied on the date of separation from employment.

Management and professional employees reinstated to the same classification shall receive the same salary step or range they received at the time layoff occurred.
(j) Reemployment
At the discretion of the City Manager, a regular full-time or regular part-time employee may be reemployed or restored to an increased work schedule more than two years but less than four years after the effective date of layoff, displacement or work schedule reduction. An employee so reemployed or restored shall have the benefit of being appointed without having his/hertheir name appear on an eligibility list. Reemployment may be subject to passing a medical examination. Any employee reemployed more than two years but less than four years after the effective date of layoff shall have no vested interest in or be entitled to any benefits accrued during any previous employment with the City with the exception of PERS retirement benefits which may remain vested after five (5) years of continuous service. Upon reemployment from layoff, the employee shall be treated as a new hire.

RULE XIV
Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
38 TRAINING OF EMPLOYEES
Section 1 RESPONSIBILITY FOR TRAINING
Responsibility for developing training programs for employees shall be assumed jointly by the City Council, the Personnel Officer, the department heads and the employees.

Such training programs may include lecture courses, demonstrations, assignment of reading matter or such other devices as may be available for the purpose of improving the effectiveness and broadening the knowledge of municipal officers and employees in the performance of their respective duties.

Section 2 CREDIT FOR TRAINING
Participating in and successful completion of special training courses may be considered in making advancements and promotions. Evidence of such activity may be filed by the employee with the Personnel Officer.

RULE XV

EVALUATIONS
Section 1 EVALUATIONS
The Personnel Officer shall cause evaluations of employees to be performed from time to time as he/she directs and on forms which he/she provides.

RULE XVI

REPORTS AND RECORDS
Section 1 ROSTER CARDS
The Personnel Officer shall maintain a service or roster card for each employee in the service of the City showing the name, title of position held, the department to which assigned, salary, changes in employment status, and such other information as may be considered pertinent.

Section 2 CHANGE-OF-STATUS-REPORT
Every appointment, transfer, promotion, demotion, change of salary rate, and any other temporary or permanent change in status of employees shall be reported to the Personnel Officer in such manner as may be prescribed by these rules and regulations.

Section 3 DESTRUCTION OF RECORDS
Roster and payroll records shall be kept permanently. All other records relating to personnel, including correspondence, applications, examinations and reports may be destroyed as provided by law.

Resolution No. 3513
as amended by Resolutions No. 6466 (5/92), No. 6616 (1/93), No. 6665 (5/93), No. 6844 (1/94), No. 7164 (2/96, No. 7420 (6/97), No. 9662 (12/09), No. 9687 (2/10), No. 9695 (3/10), No. 9820 (3/11), and No. 11345 (5/22) .
39 Section 4 ATTENDANCE
All supervisors shall maintain daily attendance records of all employees in the competitive and exempt services in the manner prescribed.

Section 5 ACCIDENT REPORTS
Any employee involved in an accident while on the job which results in personal injury or property damage of any kind shall report that accident promptly to his/her supervisor.

Employee and/or supervisor shall fill out forms for reporting the accident in the manner prescribed by the Administrative Regulations of the City Manager or departmental regulations.

RULE XVII XIV

COOPERATION
Section 1 COOPERATION OF MUNICIPAL OFFICERS AND EMPLOYEES Every officer and employee of the City of Newark shall cooperate with the Personnel Officer in order to completely fulfill the objectives and purposes of the personnel ordinance and these rules.

RULE XVIII

ADMINISTRATIVE REGULATIONS
Section 1 CITY MANAGER
The City Manager is hereby authorized to issue Administrative Regulations implementing those personnel and other rules.

Section 2 DEPARTMENTAL REGULATIONS
Department heads are hereby authorized to issue departmental regulations in concert with Administrative Regulations adapting those regulations, the Personnel ordinance and/or Personnel Rules to the operation of their specific department.

ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWARK
AMENDING NEWARK MUNICIPAL CODE CHAPTER 2.28, “PERSONNEL SYSTEM”
WHEREAS, the City Council of the City of Newark adopted an ordinance establishing Newark Municipal Code (“NMC”) Chapter 2.28 in 1963 to provide for a fair and equitable system of personnel management; and
WHEREAS, staff completed a review of NMC Chapter 2.28 regarding potential revisions to align NMC Chapter 2.28 with current policies and procedures, streamline the code, and remove redundancies with other administrative documents; and WHEREAS, the City Council desires to amend NMC Chapter 2.28 to provide certain substantive changes including clarifying the role of the Personnel Officer, providing that Department Heads are considered “at-will” employees, revising language regarding part-time employees, the examination process for hiring, the appointment process for employees, and removing redundancies with other administrative documents such as the Personnel Rules and Regulations, Administrative Regulations, and Memoranda of Understanding.

THE CITY COUNCIL OF THE CITY OF NEWARK DOES ORDAIN AS FOLLOWS:

Section 1. Recitals.

The above recitals are true and correct and make a part of this Ordinance.

Section 2. Amendments.

Newark Municipal Code Chapter 2.28 is amended as shown with revisions in Exhibit A, which is attached hereto and incorporated herein by reference.

Section 3. Severability.

If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the Ordinance, including the application of such part or provision to other persons or circumstances shall not be affected thereby and shall continue in full force and effect. To this end, provisions of this Ordinance are severable. The City Council of the City of Newark hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.

Section 4. CEQA.

Approval of this Ordinance is exempt from further environmental review under the general rule in California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3) that CEQA only applies to projects that have the potential for causing a significant effect on the environment. As a series of text amendments and additions that do not authorize any new activity, it can be seen with certainty that there is no possibility that the ordinance will have a significant effect on the environment.

Section 5. Publication and effective date.

Within fifteen (15) days from and after adoption, this Ordinance shall be published once in a newspaper of general circulation printed and published in Alameda County and circulated in the City of Newark, in accordance with California Government Code Section 36933. This Ordinance shall take effect and be enforced thirty (30) days after its adoption.

Chapter 2.28 PERSONNEL SYSTEM
Newark, California, Code of Ordinances Created: 2024-03-08 11:48:08 [EST] (Supp. No. 22, Update 4)

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Chapter 2.28 PERSONNEL SYSTEM
Sections:

2.28.010 Adopted.

In order to establish an equitable and uniform procedure for dealing with personnel matters; to attract to municipal service the best and most competent persons available; to assure that appointments and promotions of employees will be based on merit and fitness as determined by competitive test; to provide a reasonable degree of security for qualified employees; to set standards for employee conduct; and to provide for discipline and dismissal of employees for cause, the personnel system in this chapter is adopted. (Ord. 77 § 1, 1963)

2.28.020 Personnel officer.

The city manager shall be ex officio personnel officer. The city manager may in writing delegate any of the powers and duties conferred upon him as personnel officer under this chapter to any other officer or employee of the city, or may contract for the performance of such duties. The personnel officer shall be selected and appointed by the City Manager. The city manager Personnel Officer shall:

A. Administer all the provisions of this chapter and of the personnel rules not specifically reserved to the council;
B. Prepare and recommend to the council revisions and amendments to the personnel rules. The city attorney shall approve the legality of such revisions and amendments prior to their submission to the council;
C. Prepare a position classification plan, including class specifications, and revisions of the plan. The plan, and any revisions thereof, shall become effective upon approval by the council, the City Manager, or the personnel officer, as required by the Personnel Rules and Regulations; D. Prepare a plan of compensation, and revisions thereof, covering all classifications in the competitive service. The plan, and any revisions thereof, shall become effective upon approval by the council; E. Recruit applicants, conduct examinations, and establish employment lists, and make appointments for positions in the competitive service. The City Manager shall authorize appointments for positions in the competitive service.
(Ord. 77.10 § 2, 1979; Ord. 77 § 2, 1963)

2.28.030 Competitive and exempt service.

A. The exempt service shall include members of the city council; members of appointive boards, commissions and committees; the city manager, the city treasurer, the city attorney, and all department heads; technical consultants engaged under contract to provide expert, professional, technical or any other services; volunteer personnel; temporary, part-time, and seasonal employees; emergency employees hired to meet the immediate requirements of an emergency condition, such as extraordinary fire, flood, or earthquake which threatens life or property; and persons hired by the city under public service employment programs. such as, but not limited to the Comprehensive Employment and Training Act (CETA).

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B. No provisions of this chapter or resolutions pursuant thereto shall apply to any employee or classification of employee in the exempt service unless the employee is specifically included in the provisions.

C. The personnel officerCity Manager shall appoint, discipline, or dismiss persons in the temporary, part-time, seasonal, emergency and public service employment exempt service categories as necessary. Department heads shall discipline persons in the temporary, emergency, and public service employment exempt service categories as necessary. Such action shall be based upon the principals of merit and fitness but need not be made in accord with the formal provisions of this chapter or the rules adopted pursuant to this chapter.

Further, the personnel officer shall enforce any other provisions of this chapter or the personnel regulations applicable to the categories of exempt positions.

D. The competitive service shall include all employees not in the exempt service. All provisions of this chapter and resolutions thereto shall apply to all employees in the competitive service unless the employee or classification of employee is specifically exempted from the provisions. (Ord. 77.10 § 3 (part), 4, 1979: Ord. 77 § 3, 1963)

2.28.040 Permanent part-time employees.

There is created a permanent part-time classification for employees who work in positions in the city at least thirty hours per week. Such employees in this classification are to be hired at the discretion of the city department head, subject to the approval of the personnel officer. Employees in this classification are to be granted vacation time on a pro rata basis and uniform allowances on a pro rata basis, where applicable. The prorations mentioned in this section shall be determined based on the number of hours per week worked. Employees in the permanent part-time classification shall be subject to the same salary steps as those of regular employees on a pro rata basis.

Employees in this classification are to be subject to all personnel rules not inconsistent with the provisions of this chapter, except that they shall be entitled only to the fringe benefits provided in this section, which are: pro rata vacation pay and pro rata uniform allowances, where applicable. (Ord. 77.10 § 3 (part), 1979; Ord. 77.4 § 1, 1970: Ord. 77 § 4, 1963) Reserved.

2.28.050 Rules—Adoption and amendment.

Personnel rules, prepared by the personnel officer subject to this chapter and to revision by the council, shall be adopted, and may be amended from time to time, by resolution of the council. The rules shall establish procedures and regulations governing the following phases of the personnel system:

A. Preparation, installation, revision, and maintenance of a position classification plan covering all positions in the competitive service, including employment standards and qualifications for each class; B. Preparations, revision, and administration of a plan of compensation directly correlated with the position classification plan, providing a rate or range of pay for each class; C. Public Aannouncement of all examinations and the acceptance of applications for employment; D. Preparation and conduct of tests and the establishment and use of resulting employment lists containing names of persons eligible for appointment;
E. Appointment of persons from employment lists, and the making of temporary and emergency appointments;
F. Evaluation of employees;
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G. Transfer, promotion, demotion, reclassification, and reinstatement of employees in the competitive service;
H. Separation of employees from the city service through layoff, suspension, resignation, retirement, and dismissal;
I. Establishment of hours of work, attendance and leave regulations, working conditions and the development of employee morale and training;
J. Content, maintenance and use of personnel records and forms; K. Establishment of administrative regulations and regulations issued by department heads implementing this chapter or personnel regulations adopted by the city council. (Ord. 77.10 §§ 3 (part), 5, 6, 1979; Ord. 77 § 5, 1963)

2.28.060 Appointments.

A. Appointments to vacant positions in the competitive service shall be made in accordance with the personnel rules. Appointments and promotions shall be based on merit and fitness to be ascertained so far as practicable by competitive examinations. Examinations shall be used and conducted to aid in the selection of qualified employees, and shall consist of such recognized selection techniques as achievement and aptitude tests, other written tests, personal interviews, performance tests, evaluation of daily work performance, work sampler, evaluation of references, psychiatric tests, or any other technique or method that might reasonably be expected to test merit and fitness, or any other combination of these, which will, in the opinion of the personnel officer, test fairly the qualifications of candidates. Physical and medical tests may be given as a part of any examination.

B. In any examination the personnel officer may include, in addition to competitive tests, a qualifying test or tests, and set minimum standards therefor.

C. Appointments and promotions shall be made by the city manager from among the persons on the appropriate eligible or promotional lists after the city manager confers with the department head involved.

D. In the absence of appropriate employment lists, a temporary appointment may be made by the city manager of a person meeting the minimum training and experience qualifications for the position. An employment list shall be established within six months for any permanent position filled by temporary appointment. The council may, by a four-fifths vote, extend the period of any temporary appointment for not more than thirty days, by any one action.

E. No special credit shall be allowed in meeting any qualification or in the giving of any test or the establishment of any employment or promotional lists, for service rendered under a temporary appointment.

F. During the period of suspension of any employee or pending final action on proceedings to review suspension, demotion or dismissal of an employee, such vacancy may be filled by the city manager, subject to the provisions of this chapter and the personnel rules. (Ord. 77.10 § 3 (part), 1979; Ord. 77 § 6, 1963)

2.28.070 Probationary period. Reserved
A. All appointments in the competitive service, including promotional appointments, shall be made for a probationary period of not less than six months, nor more than eighteen months, as specified in the Created: 2024-03-08 11:48:07 [EST]
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classification plan. During the probationary period, the employee may be rejected at any time without right of appeal or hearing.

B. An employee rejected during the probationary period from a position to which he has been promoted shall be reinstated to the position from which he was promoted, unless he is dismissed from the city service as provided in this chapter and the rules.
(Ord. 207 § 1, 1985; Ord. 77.10 § 3 (part), 1979; Ord. 77 § 7, 1963)

2.28.080 Status of present employees.

A. Any person holding a position included in the competitive service who, on the effective date of the ordinance codified in this chapter, has served continuously in such position, or in some other position in the competitive service, for a period equal to the probationary period prescribed in the rules for his their class, or the ending date of a probationary period extension, shall assume regular status in the competitive service in the position held on such effective date without qualifying test, and shall thereafter be subject in all respects to the provisions of this chapter and the personnel rules.

B. Any other persons holding positions in the competitive service shall be regarded as probationers who are serving out the balance of their probationary periods as prescribed in the rules before obtaining regular status. The probationary period shall be computed from the date of appointment or employment, including only continuous service.
(Ord. 77.10 § 3 (part), 1979; Ord. 77 § 8, 1963)

2.28.090 Suspension.

Any person holding a position or employment in the competitive service shall be subject to disciplinary suspension without pay.
(Ord. 77.10 § 3 (part), 1979; Ord. 77 § 9, 1963) Reserved.

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2.28.100 General conduct of employees.

Each of the following constitutes cause for discipline of an employee, or person whose name appears on any employment list:

A. Fraud in securing appointment;
B. Incompetency;
C. Inefficiency;
D. Inexcusable neglect of duty;
E. Insubordination;
F. Dishonesty;
G. Drunkenness on duty;
H. Addiction to the use of illegal narcotics or illegal habit-forming drugs; I. Inexcusable absence without leave;
J. Conviction of a felony or conviction of a misdemeanor involving moral turpitude. A plea or verdict of guilty, or a conviction following a plea of nolo contendere, to a charge of a felony or any offense involving moral turpitude is deemed to be a conviction within the meaning of this section;
K. Discourteous treatment of the public or other employees; L. Wilful disobedience;
M. Misuse of city property;
N. Violation of this chapter or any rule adopted thereto; O. A city officer or employee shall not engage in any employment, activity, or enterprise which is clearly inconsistent, incompatible, in conflict with, or inimical to his/her duties as a city officer or employee or with the duties, functions or responsibilities of the department of the city government in which he/she is employed; P. Refusal to take and subscribe to any oath or affirmation which is required by law in connection with his/her employment;
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Q. Other failure of good behavior either during or outside of duty hours which is of such a nature that it causes discredit to the city or his/her employment. (Ord. 77.10 §§ 3 (part), 7, 1979: Ord. 77 § 10, 1963) Reserved.

2.28.110 Right of appeal.

A. Employees in the competitive service shall have the right of appeal on the interpretation or application of this chapter or the rules adopted pursuant to this chapter. The city recognizes that it is in the city's interest as well as that of the employee that questions concerning the application of or interpretation of this chapter and the rules adopted pursuant thereto be resolved as expeditiously as possible affording the employee due process.

B. For purposes of this section, all notices required by this chapter shall be effective 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 employee at his home address as shown in the personnel 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 appeal shall contain a complete statement of the appeal, the alleged facts upon which the complaint is based, the reasons for the appeal, the remedy requested, and the sections of this chapter or the personnel rules adopted by the city council hereto which have been violated. The appeal shall be signed and dated by the employee.

C. Hearings on appeals and actual filing of appeals may be processed during normally scheduled working hours.

All other activities related to the employee's preparation and processing of the appeal shall be done outside of scheduled working hours. No employee or employee organization representative shall be entitled to any additional compensation or premium pay for any time spent in preparing or processing appeals. No appeals will be processed during periods of overtime.

D. The employee shall pay for the time and expenses of its representatives and witnesses through all stages of the appeals 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 employee organization shall be permitted to be present without loss of compensation during hearings on appeals if that spokesperson is the sole representative of the employee in that specific proceeding.

E. Time limits set forth in this section for processing the appeals procedure are of the essence to this procedure and are to be strictly complied with. Time limits may be extended only by written mutual agreement of the employee and supervisor conducting a hearing.

F. Any appeal 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 the event the appeal is not answered by the city within the time limits set forth in this section, the employee may take the appeal to the next higher step in the appeal procedure within the time limits provided.

G. No resolution of any appeal shall be contrary to the provisions of this chapter or the personnel rules adopted pursuant to this chapter.

H. Copies of the resolution of all appeals shall be filed in the employee's city personnel file.

I. Appeals shall be processed in the following manner:

1. Within ten calendar days of the occurrence of the matter on which an appeal is based, the employee shall discuss his/her appeal in a meeting with his/her immediate supervisor.

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2. If, after such discussion, the employee does not believe the problem has been satisfactorily resolved, he/she shall have the right, within ten calendar days of the occurrence of the matter to file a formal appeal of the personnel action in writing. Said appeal shall be filed with the employee's immediate supervisor.

3. Within ten calendar days of receipt of the notice of formal appeal, the immediate supervisor shall provide his/her decision in writing to the employee.

4. Within ten calendar days of his/her receipt of the decision from his/her immediate supervisor, the employee may appeal that decision by presenting the formal written appeal to the appropriate department head.

5. Within ten calendar days of receipt of the formal appeal, the department head shall provide a written decision to the employee.

6. If the employee does not feel that the appeal has been resolved, the employee may, within ten calendar days of receipt of the department head's decision, present his/her formal appeal in writing to the personnel officer. The personnel officer or his/her designated representative shall make a thorough review of the appeal, meet with the parties involved and provide a written decision to the employee within ten calendar days of receipt of the appeal.

7. Within ten calendar days of receipt of the decision of the personnel officer, the employee may demand in writing to the personnel officer that the formal appeal be submitted to an independent fact-finder from a list of three qualified fact-finders submitted to the city by the American Arbitration Association. a. The personnel officer and the employee shall alternately strike names from the list so furnished and the last name remaining shall be designated as the fact-finder. b. The city and the employee shall split evenly payment of the fees and expenses of the fact-finder as well as the cost of making the record of the fact-finder except as otherwise provided by state law.
c. The rules of conduct of proceedings shall be according to those procedures for expedited factfinding utilized by the American Arbitration Association. d. 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.
e. If either of the parties does not accept the decision of the fact-finder, that party, within ten calendar days after receipt of the decision of the fact-finder, shall file with the city clerk a notice of intention to appeal to the city council. Within thirty calendar days after the receipt of the decision of the fact-finder that party shall file with the city clerk for submission to the city council for final decision the transcript of evidence and conclusions of the fact-finder. Failure to comply with either the ten-day or the thirty-day time periods shall be deemed to be an acceptance of and an agreement with the fact-finder's decision and shall constitute an abandonment and waiver of the right to appeal to the city council. The city council shall decide the matter based upon the record presented to it. The decision of the city council shall be final. (Ord. 267 § 1, 1990; Ord. 77.10 §§ 3 (part), 8, 1979: Ord. 77 § 11, 1963)

2.28.120 Abolition of position.

Whenever in the judgment of the council it becomes necessary in the interest of economy or because the necessity for the position or employment involved no longer exists, the council may abolish any position or employment in the competitive service and layoff, demote or transfer an employee holding such position or Created: 2024-03-08 11:48:07 [EST]
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employment without filing written charges and without the right of appeal. Personnel reduction procedures shall be as established by city council resolution. are provided in the Personnel Rules and Regulations. (Ord. 77.10 § 3 (part), 1979; Ord. 77.9 § 2, 1978: Ord. 77 § 12, 1963)

2.28.130 Political activity.

A. No member of the competitive or exempt service shall, directly or indirectly, solicit or receive political funds or contributions, knowingly, from other members of the competitive or exempt service nor from persons on the employment lists of the city.

B. Every member of the competitive or exempt service shall prohibit the entry, into any place under his their control, occupied and used for the governmental purposes of the city, of any person, for the purpose of therein making, or giving notice of any political assessment, subscription, or contribution.

C. A person shall not enter or remain in any such place described in subsection B of this section for the purpose of therein making, demanding, or giving notice of any political assessment, subscription, or contribution.

D. Subsections B and C of this section shall not apply to any auditorium or other place used for the conduct of public or political rallies or similar events, nor to any park, street, public land or other place not being used for the governmental purposes of the city.

E. No one who holds, or who is seeking election or appointment to, any position in the competitive or exempt service shall, directly or indirectly, use, promise, threaten or attempt to use, any office, authority or influence, whether then possessed or merely anticipated, to confer upon or secure for any person, or to aid or obstruct any person in securing, or to prevent any person from securing, any position, nomination, confirmation, promotion, change in compensation or position, within the city, upon consideration or condition that the vote of political influence or action of such person or another shall be given or used in behalf of, or withheld from any candidate, officer or party, or upon any other corrupt condition or consideration.

F. No member of the competitive or exempt service shall participate in political activities of any kind while he is in uniform.
(Ord. 77.10 § 3 (part), 1979; Ord. 77.5 § 1, 1972; Ord. 77.1 § 2, 1964: Ord. 77 § 13, 1963)

2.28.140 Discrimination.

No person in the competitive service, or seeking admission thereto, shall be employed, promoted, demoted or discharged or in any way favored or discriminated against. in violation of applicable law. (Ord. 405 § 1, 2004: Ord. 77.10 § 3 (part), 1979; Ord. 77.1 § 3 (part), 1964; Ord. 77 § 14, 1963)

2.28.150 Right to contract for special service.

The personnel officer may contract with any qualified person or agency for the performance of such technical service as may be desired in the establishment or operation of the personnel system. (Ord. 77.10 § 3 (part), 1979; Ord. 77.1 § 3 (part), 1964; Ord. 77 § 15, 1963) Created: 2024-03-08 11:48:08 [EST]
(Supp. No. 22, Update 4)

Page 9 of 9 ends

2.28.160 Holidays.

A. Employees, except emergency service personnel in the police and fire departments, shall observe the following legal holidays: New Year's Day; Lincoln's Birthday; Washington's Birthday; Memorial Day; Independence Day; Admission Day; Labor Day; Armistice Day; Thanksgiving Day, the day following Thanksgiving Day; the last workday before Christmas, and Christmas Day. When a holiday falls on Sunday, the following Monday shall be observed. When a holiday falls on Saturday, the preceding Friday shall be observed.

B. Emergency service personnel in the police and fire departments shall receive compensation in lieu of holidays as provided in the compensation plan.
(Ord. 77.10 §§ 3 (part), 9, 1979; Ord. 77.1 § 3 (part), 1964; Ord. 77 § 16, 1963)Reserved.

2.28.170 Violation—Penalty.

Any person, firm, or corporation violating any of the provisions of this chapter shall be deemed guilty of a misdemeanor and upon a conviction thereof shall be punishable by a fine of not more than five hundred dollars, or by imprisonment for a period of not more than six months, or by both such fine and imprisonment. (Ord. 77.10 § 3 (part), 1979; Ord. 77.1 § 3 (part), 1964; Ord. 77 § 16, 1963) Reserved.

Item D. 5.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Diana Cangco, Principal Civil Engineer
SUBJECT Adopt a resolution authorizing the City Manager to execute Contractual Service Agreements for Geotechnical Engineering and Peer Review Services, Materials Testing Services, Traffic Signal and Street Light Maintenance Services, and Traffic Engineering and Transportation Planning Services with the following consultants: Cotton, Shires and Associates, Inc.; Geocon Consultants, Inc.; Construction Testing Services, Inc.; Cal-West Lighting and Signal Maintenance, Inc.; St. Francis Electric, LLC; Fehr and Peers; GHD, Inc.; and Kimley-Horn and Associates, Inc.

SUMMARY AND RECOMMENDATION
In accordance with the City’s Purchasing Ordinance and procedures, staff prepared and initiated an open and competitive Request for Qualifications (RFQ) for on-call services related to Geotechnical Engineering and Peer Review, Materials Testing, Traffic Signal and Street Light Maintenance, and Traffic Engineering and Transportation Planning Services. The RFQs specified that selection would be made based on quality and completeness of submissions as well as each firm’s experience with engagements of similar scope and complexity, satisfaction of previous clients, and proposed rate schedule.

Staff recommends that City Council adopt a resolution authorizing the City Manager to execute Contractual Service Agreements with various consultants for Geotechnical Engineering and Peer Review Services, Materials Testing Services, Traffic Signal and Street Light Maintenance Services, and Traffic Engineering and Transportation Planning Services in a form approved by the City Attorney.

BACKGROUND
On April 26, 2024, staff released four RFQs for on-call services related to Geotechnical Engineering and Peer Review, Materials Testing, Traffic Signal and Street Light Maintenance, and Traffic Engineering and Transportation Planning. The on-call scope of services for each of the RFQs are described below:

Geotechnical Engineering and Peer Review
Geotechnical engineering services may include geotechnical investigations, design recommendations, field testing, field observations and attendance at meetings for a variety of Public Works projects, Capital Improvement Program projects, and maintenance projects including roads, parks, and other public facilities. Peer review services include geologic and/or geotechnical engineering peer reviews of development projects subject to the State Alquist-Priolo Earthquake Fault Zoning Act and/or the State Seismic Hazards Mapping Act.

Materials Testing
Materials testing services may include collection of materials samples, materials testing, special inspections, and filed observations as required for a variety of Public Works projects, Capital Improvement Program projects and maintenance projects including roads, parks, and other public facilities.

Traffic Signal and Street Light Maintenance
Traffic signal and street light maintenance services may include preventive and routine maintenance, responsive maintenance, and emergency repair of equipment associated with the City of Newark’s traffic signal and street light system.

Traffic Engineering and Transportation Planning
Traffic engineering and transportation planning services include traffic signal design, timing, coordination and warrant studies; review of traffic signal plans and traffic impact studies, travel demand modeling; corridor and intersection analyses; parking studies; planning and design of bicycle and pedestrian facilities; transportation demand management strategies; and traffic calming assessment and design.

DISCUSSION/ANALYSIS
Statement of Qualifications (SOQs) were submitted to the City on May 13, 2024. A total of eighteen SOQs were received. Staff evaluated the SOQs and ranked them based on completeness and responsiveness to the RFQs.

Staff is recommending the approval of Contractual Services Agreements with nine different consultant firms, each with a not to exceed amount as indicated below:

Geotechnical Engineering and Peer Review Services
• Cotton, Shires and Associates, Inc. – $225,000
• Geocon Consultants, Inc. – $125,000
Materials Testing
• Construction Testing Services, Inc. – $100,000
• Geocon Consultants, Inc. – $225,000
Traffic Signal and Street Light Maintenance
• Cal-West Lighting and Signal Maintenance, Inc. – $2,000,000 • St. Francis Electric, LLC – $400,000
Traffic Engineering and Transportation Planning
• Fehr and Peers – $300,000
• Fehr and Peers – $300,000
• GHD, Inc. – $500,000
• Kimley-Horn and Associates, Inc. – $250,000.

All agreements will be for a five-year term, expiring on June 30, 2029. Under the terms of the agreements, the selected firms will provide the requested services based on the adopted compensation rates.

FISCAL IMPACT
The requested on-call services related to the various Contractual Services Agreements may only be authorized from identified and approved budgetary sources, which may include approved Engineering operating budgets, Capital Improvement Project budgets, or fees collected as part of the Master Fee Schedule.

REVIEW AND APPROVAL
Prepared by - Diana Cangco, Acting City Engineer
Reviewed by - Soren Fajeau, Public Works Director
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - Lenka Hovorka, Assistant City Manager
Attachments
Resolution Various PW Conusltants
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AUTHORIZING THE CITY MANAGER TO

EXECUTE CONTRACTUAL SERVICE AGREEMENTS FOR

GEOTECHNICAL ENGINEERING AND PEER REVIEW

SERVICES, MATERIALS TESTING SERVICES, TRAFFIC

SIGNAL AND STREET LIGHT MAINTENANCE SERVICES,

AND TRAFFIC ENGINEERING AND TRANSPORTATION

PLANNING SERVICES WITH THE FOLLOWING
CONSULTANTS: COTTON, SHIRES AND ASSOCIATES, INC.;
GEOCON CONSULTANTS, INC.; CONSTRUCTION TESTING
SERVICES, INC.; CAL-WEST LIGHTING AND SIGNAL
MAINTENANCE, INC.; ST. FRANCIS ELECTRIC, LLC; FEHR
AND PEERS; GHD, INC.; KIMLEY-HORN AND ASSOCIATES,
INC.

WHEREAS, the City of Newark Public Works Department issued Requests for Qualifications for geotechnical engineering and peer review services, materials testing services, traffic signal and street light maintenance services, and traffic engineering and transportation planning services; and
WHEREAS, a total of eighteen Statements of Qualifications were received and evaluated by staff based on the quality and completeness of submissions, experience with engagements of similar scope and complexity, satisfaction of previous clients, and the proposed rate schedule; and WHEREAS, based on staff’s evaluation, the following firms were determined to be the most qualified to provide the requested services:

Geotechnical Engineering and Peer Review Services
 Cotton, Shires and Associates, Inc.
 Geocon Consultants, Inc.

Materials Testing
 Construction Testing Services, Inc.
 Geocon Consultants, Inc.

Traffic Signal and Street Light Maintenance
 Cal-West Lighting and Signal Maintenance, Inc.
 St. Francis Electric, LLC
Traffic Engineering and Transportation Planning
 Fehr and Peers
 GHD, Inc.
 Kimley-Horn and Associates, Inc.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newark does hereby authorize the City Manager to execute Contractual Services Agreements in a form approved by the City Attorney with the firms listed below for the stated not to exceed amounts:

Geotechnical Engineering and Peer Review Services
 Cotton, Shires and Associates, Inc. – $225,000
 Geocon Consultants, Inc. – $125,000
Materials Testing
 Construction Testing Services, Inc. – $100,000
 Geocon Consultants, Inc. – $225,000
Traffic Signal and Street Light Maintenance
 Cal-West Lighting and Signal Maintenance, Inc. – $2,000,000  St. Francis Electric, LLC – $400,000
Traffic Engineering and Transportation Planning
 Fehr and Peers – $300,000
 GHD, Inc. – $500,000
 Kimley-Horn and Associates, Inc. – $250,000.

BE IT FURTHER RESOLVED that the City Council of the City of Newark does hereby authorize the City Manager to take all actions necessary to effectuate the intent of this Resolution.

Item D. 6.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Michael Carmen, Assistant Engineer
SUBJECT Adopt a resolution awarding a contract for the Base Bid and Additive Alternate Bids No. 1, No. 2, No. 3, and No. 4 to G.

Bortolotto & Company, Inc. for 2024 Asphalt Concrete Street Overlay Program, Project 1344
SUMMARY AND RECOMMENDATION
Bids for 2024 Asphalt Concrete Street Overlay Program, Project 1344 were opened on June 4, 2024. As stated in the Project Specifications, determination of the low monetary bidder was based on the Base Bid plus Additive Alternative Bid No. 1 and No. 2. The low monetary bidder, G. Bortolotto & Company, Inc., provided a responsive bid, is experienced in this type of project, and is a responsible contractor.

Staff recommends that the City Council, by resolution, award a contract for 2024 Asphalt Concrete Street Overlay Program, Project 1344 to the lowest responsible bidder, G. Bortolotto & Company, Inc., for the Base Bid plus Additive Alternative Bid No. 1, No. 2, No. 3, and No. 4 in the amount of $1,499,990.50. Staff also recommends including an additional $250,009.50 in construction contingency, bringing the recommended allocation for the project to $1,750,000.

BACKGROUND
The 2024 Asphalt Concrete Street Overlay Program, Project 1344, combines annual pavement maintenance overlay and patch paving projects to encourage better unit prices. The combined project scope of work includes localized patch paving, pavement grinding, placement of new asphalt concrete pavement, and general restriping on various City streets. The project also includes four Additive Alternate Bid Items.

Additive Alternate Bid No. 1 includes work related to a full width grind and overlay on Souza Avenue. Additive Alternate Bid No. 2 includes work related to a full width grind and overlay on Hazelnut Drive. Additive Alternate Bids No. 3 and No. 4 are reimbursable work on behalf of Alameda County Water District (ACWD) and Union Sanitary District (USD), respectively. The scope of work for ACWD’s and USD’s respective Alternate Bid Items include alterations and adjustment of existing valves and manholes to finish paving grade after the overlay.

As part of the City of Newark’s ongoing effort to protect and extend the life of its streets, the Public Works Department annually inspects asphalt concrete pavement surfaces to identify areas of potential maintenance and determine the timing and type of appropriate repairs. Asphalt concrete overlays involve the placement of an additional layer of asphalt concrete pavement on streets showing a relatively uniform distress pattern over most of the pavement surface. This condition indicates that the pavement needs structural upgrading to accommodate current and future traffic loads. A structural upgrade will prevent complete failure of the street pavement and avoid the very expensive process of complete roadway reconstruction. The increased structural strength due to an asphalt concrete overlay typically extends the useful life of a street by at least ten years.

Patch paving consists of the removal and replacement of localized pavement failures.

The project includes patch paving work on streets that will be resurfaced with a slurry seal under a separate contract. The project will also perform patch paving on streets where a localized pavement failure is too severe to correct with a surface (skin) patch, but the entire street does not need structural upgrading with an asphalt concrete overlay.

The streets included in the 2024 Asphalt Concrete Street Overlay Program, Project 1344 are: Cluny Place, Elmwood Avenue, Hafner Street, Hazelnut Drive, Honeysuckle Court, Iris Court, Linden Court, Lobelia Drive, Manzanita Street, Merion Drive, Redbud Court, Spruce Court, Souza Avenue, Tenaya Avenue.

The 2022-2024 Biennial Budget and Capital Improvement Program includes sufficient funding for 2024 Asphalt Concrete Street Overlay Program, Project 1344 using a combination of Highway Users Tax funds and SB1 Road Maintenance and Rehabilitation Account funds.

DISCUSSION/ANALYSIS
Bids for 2024 Asphalt Concrete Street Overlay Program, Project 1344 were opened on June 4, 2024. The City received a total of three bids as follows:

Bidder Base Bid Additive
Alternate
Bid No. 1
(Souza
Avenue)
Additive
Alternate Bid
No. 2
(Hazelnut
Drive)
Base Bid
Plus Additive
Alternate Bid
No. 1 and 2
G. Bortolotto
& Company,
Inc.
$1,165,505.00 $113,195.00 $158,290.50.00 $1,436,990.50
Interstate
Grading &
Paving, Inc.
$1,424,130.75 $157,260.00 $183,438.50* $1,764,829.25
DeSilva
Gates
Construction
LLC
$1,573,024.00 $109,505.00 $171,025.00 $1,853,554.00
Engineer’s
Estimate $1,437,082.50 $131,600 $199,182.50 $1,767,865.00 *Corrected for Mathematical Error
As stated in the Project Specifications, determination of the low monetary bidder was based on the Base Bid plus Additive Alternative Bid No. 1 and No. 2. The lowest monetary bidder, G. Bortolotto & Company, Inc., submitted a responsive bid, is experienced in this type of project, successfully completed a similar project for the City of Newark in 2023, and is a responsible bidder.

Based on the bid submitted by G. Bortolotto Company, Inc., staff recommends the addition of Additive Alternate Bid No. 3 (ACWD) and No. 4 (USD) to the construction contract. The bid amount for Additive Alternate Bid No. 3 (ACWD) is $22,100 and the bid amount for Additive Alternate Bid No. 4 (USD) is $40,900. As detailed below, there are sufficient funds for this project to include the recommended Additive Alternate Bid No. 3 and No. 4.

After review of the bids received from G. Bortolotto Company, Inc. for Additive Alternate Bid No. 3 and No. 4, both ACWD and USD recommend adding their respective Additive Alternate Bid to the construction contract. The City will be reimbursed for all work performed by the contractor on behalf of ACWD and USD. In accordance with past practice, a ten percent (10%) administrative fee will be added to all ACWD and USD costs to reimburse the City for administration and management of the work.

Staff recommends that the City Council accept the bid and award the contract to the lowest responsible bidder, G. Bortolotto Company, Inc. for the Base Bid plus Additive Alternative Bid No. 1, No. 2, No. 3, and No. 4 in the amount of $1,499,990.50.

FISCAL IMPACT
In addition to the $1,499,990.50 contract amount, staff recommends including an additional $250,009.50 in construction contingency, equivalent to approximately seventeen percent (17%) of the contract amount, to account for material testing and other unanticipated construction costs. The added contingency will bring the recommended allocation for the project to a not-to-exceed amount of $1,750,000. A total of $63,000 of the project not-to-exceed amount will be reimbursed to the City by ACWD and USD for Alternate Bid Item No. 3 and No. 4, respectively.

ENVIRONMENTAL/PLANNING COMMISSION REVIEW
The repair and maintenance of existing facilities is categorically exempt under the California Environmental Quality Act (CEQA) section 15301 (Existing Facilities).

REVIEW AND APPROVAL
Prepared by - Michael Carmen, Assistant Engineer
Reviewed by - Diana Cangco, Acting City Engineer
Reviewed by - Soren Fajeau, Public Works Director
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David Benoun, City Manager
Attachments
Resolution Overlay Agreement
Agreement
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AWARDING THE CONTRACT FOR THE BASE BID
AND ADDITIVE ALTERNATE BID NO. 1, NO. 2, NO. 3, AND
NO. 4 TO G. BORTOLOTTO & COMPANY, INC. FOR THE 2024

ASPHALT CONCRETE STREET OVERLAY PROGRAM,
PROJECT 1345
WHEREAS, the Public Works Department invited sealed bids for the construction of public improvements for 2024 Asphalt Concrete Street Overlay Program, Project 1344 (the “Project”); and
WHEREAS, the City has, upon due notice, received a total of three bids for the Project that were reviewed by staff for responsiveness and responsibility; and WHEREAS, as stated in the Project Specifications, determination of the low monetary bidder was based on the Base Bid plus Additive Alternative Bid No. 1 and No. 2; and WHEREAS, G. Bortolotto & Company, Inc. was determined to be the lowest responsible bidder with a Base Bid plus Additive Alternate Bid No. 1 and No. 2 amount of $1,436,990.50; and WHEREAS, staff recommends, and the City Council seeks, to add Additive Alternate Bid No. 3 and No. 4 to the construction contract, which would bring the total construction contract amount to $1,499,990.50; and
WHEREAS, staff also recommends allocating an additional $250,009.50 in construction contingency, which would bring the total allocation for the Project to $1,750,000; NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Newark hereby awards and authorizes the City Manager to execute an agreement, in a form approved by the City Attorney, with G. Bortolotto & Company, Inc. for 2024 Asphalt Concrete Street Overlay Program, Project 1344, in according to the plans, specifications, and terms of said bid for the Base Bid plus Additive Alternate Bid No. 1, No. 2, No. 3, and No. 4 in an amount not to exceed $1,499,990.50.

BE IT FURTHER RESOLVED that the City Council hereby approves a construction contingency in the amount of $250,009.50, resulting in a total allocation of $1,750,000 for the Project, with funding through Highway Users Tax funds, and SB1 Road Maintenance and Rehabilitation Account funds, distributed as follows:

To: Description Expenditure Amount
Gas Tax – HUTA 201.90.091.910.6221.PRJ1344 $500,000
SB1/RMRA 202.90.091.910.6221.PRJ1344 $1,250,000
From: Description Expenditure Amount
Gas Tax – HUTA 201.3000 $500,000
SB1/RMRA 202.3000 $1,250,000
BE IT FURTHER RESOLVED that the City Council does hereby authorize that any unused appropriation shall be carried over to the following fiscal year.

BE IT FURTHER RESOLVED that the City Council does hereby authorize the City Manager, or their designee, to execute any change orders necessary to account for material testing and other unanticipated construction costs within the total allocation for the Project.

BE IT FURTHER RESOLVED that the City Manager is authorized to take any actions necessary to effectuate the intent of this Resolution.

AGREEMENT (PUBLIC WORKS CONTRACT)
THIS AGREEMENT, made and entered into this day, of , 2024, and between the CITY OF NEWARK, a municipal corporation and the General Law Class, State of California, hereinafter called the “CITY” and G. Bortolotto & Company, Inc., a , hereinafter called the “CONTRACTOR”:

WITNESSETH:

That the City and Contractor for the consideration, hereinafter named, agree as follows:

1. That complete Contract includes all of the Contract Documents as if set forth in full herein, to wit: the Notice to Contractors; the Proposal to the City of Newark; the Accepted Bid (Unit Price Schedule); the Bidder’s Statement of Subcontractors’; the Performance Bond; the Payment Bond; the Plans and Specifications; this Agreement; and all Addenda setting forth any modifications or interpretations of any of said Documents.

2. The Contractor will furnish all materials except as otherwise provided in the Specifications and on the Plans and will perform all the work necessary to construct and complete in a good workmanlike and substantial manner, and to the satisfaction of the Engineer, public improvements in accordance with that certain document headed:
2024 ASPHALT CONCRETE STREET OVERLAY PROGRAM,
PROJECT No. 1344
and the Standard Specifications and Plans of the Department of Transportation, State of California, dated May 2006.

All of the above work is on City property, and under the direction of the Engineer or other official designated by the City to supervise said work, all as provided in and subject to the Contract Documents.

1. The Contractor shall comply with all applicable local, state, and federal regulations.

2. The Contractor shall maintain a valid Class A California Contractor License throughout the performance of work under this contract.

3. The Contractor shall submit a receipt copy or other evidence showing payment of the current City of Newark Business License fee.

4. The Contractor shall provide a Certificate of Insurance to show proof of Comprehensive General Liability Insurance of (minimum) $1,000,000 combined single limit per occurrence for bodily injury, personal injury, and bodily damage; and Workers Compensation and Employers Liability Insurance as required by the Labor Code of the State of California.

5. As of July 1, 2014, all contractors bidding on this project are required to register with the Department of Industrial Relations (DIR) and to pay the required annual fee. Under California Labor Code section 1771.1, as amended by SB 854, unless registered with the DIR, a contractor may not bid, nor be listed as a subcontractor, for any bid proposal submitted for public works projects on or after March 1, 2015. The Contractor will be required to submit certified payrolls during the course of this project. This project is subject to compliance enforcement and monitoring by the State of California DIR.

6. The City will pay the Contractor in current funds for the performance of the Contract on the basis of the accepted unit prices and the actual measured quantities of work done at such time as are stated in the Specifications, and will otherwise fulfill its obligations thereunder.

7. All time limits stated in the Contract Documents are of the essence of this Agreement.

8. The statement of prevailing wages appearing in the Equipment Rental Rates and General Prevailing Wage Rates is hereby specifically referred to and by this reference is made a part of this contract. It is further expressly agreed by and between the parties hereto that should there be any conflict between the terms of this instrument and the bid or proposal of said Contractor, then this instrument shall control and nothing herein shall be considered as an acceptance of said terms of said proposal conflicting herewith.

9. By my signature hereunder, as Contractor, I certify that I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workmen’s compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.

10. If any action shall be brought by the City for the enforcement of any of the conditions, covenants or agreements herein the prevailing party shall recover reasonable attorney’s fees.

11. The Contractor hereby agrees to defend, indemnify, and save harmless City, its Council, boards, commissions, officers, employees and agents, from and against any and all claims, suits, actions liability, loss, damage, injury, expense, cost (including, without limitation, costs and fees of litigation) of every nature, kind or description, which may be brought against, or suffered or sustained by, City, its Council, boards, commissions, officers, employees or agents caused by, or alleged to have been caused by, the negligence, intentional tortuous act or omission, or willful misconduct of Contractor, its officers, employees or agents in the performance of any service or work pursuant to this Contract.

The duty of Contractor to indemnify and save harmless, as set forth herein, shall include the duty to defend as set forth in Section 2778 of the California Civil Code; provided, however, that nothing herein contained shall be construed to require Contractor to indemnify City, its Council, boards, commissions, officers, employees and agents against any responsibility or liability in contravention of Section 2782 of the California Civil Code.

It shall be required 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 the Agreement; or (2) the broader coverage and maximum limits of coverage of any Insurance policy or proceeds available to the named Insured; whichever is greater.

Approval of the insurance contracts does not relieve the Contractor or subcontractors from liability under this paragraph, including but not limited to the duty to indemnify City set forth herein. By execution of this Contract Contractor acknowledges and agrees that it has read and understands the provisions hereof and that this paragraph is a material element of consideration.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written.

CITY OF NEWARK FOR THE CONTRACTOR:
a Municipal Corporation
By By
City Manager
ATTEST:

City Clerk
APPROVED AS TO FORM:

City Attorney
Item D. 7.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Art Interiano, Deputy Community Development Director SUBJECT Adopt a resolution authorizing the City Manager to execute an agreement with Alameda County for participation in the Alameda County Urban County for Fiscal Year 2024-2025
SUMMARY AND RECOMMENDATION
The City received a Fiscal Year 2024-2025 Community Development Block Grant (CDBG) award in the amount of $202,097. Of those funds, $49,846 is allocated for the Alameda County minor home repairs program. Staff recommends that the remainder of the balance, $152,251, be used for jurisdictional improvements. The jurisdictional improvement funds will be used on a variety of parks such as Birch Grove, Mayhews Landing and Musick park. The improvements will include resurfacing a basketball court, improving park pathways to remove tripping hazards, and upgrading pathways to be ADA-compliant.

Staff recommends that the City Council, by resolution, authorize the City Manager to execute an agreement with Alameda County to participate in the Alameda County Urban County Community Development Block Grant (CDBG) Program for the Fiscal Year 2024-2025.

BACKGROUND
Each year the City of Newark receives funding under the United States Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) Program. This grant provides funding for activities benefiting low- and moderate-income persons, including public works projects, planning studies, and housing rehabilitation and repair.

Newark’s funds are disbursed through Alameda County. The County oversees Newark’s use of the funds in order to ensure that all appropriate federal government requirements are met. This arrangement is established and governed each year by a pair of agreements, one between Alameda County and HUD, and one between the City and Alameda County. A copy of the agreement between the City and Alameda County is attached. By approving this resolution, the City Council will authorize the City Manager to execute the agreement between the City of Newark and Alameda County, thereby continuing the City’s participation in the CDBG program.

DISCUSSION/ANALYSIS
The Community Development Advisory Committee met on May 1, 2024 to review the intended purpose of CDBG funds for the Jurisdiction Improvement Fiscal Year 2024-2025. At the time of the CDAC meeting, the exact amount of funding had not been determined yet. Staff used an estimated amount of $150,884 to develop funding recommendations for the CDAC’s consideration. The CDAC voted, 7-0, to recommend that the City Council allocate the anticipated Jurisdiction Improvement Project funds to the Citywide ADA Compliance Improvements.

The Jurisdiction Improvement Project would address ADA compliance needs at City-owned parks, facilities, and parking lots as identified in the City’s Disabled Access Transition Plan. The scope of work would include improvements to Mayhews Landing Park, Birch Grove Park and Musick Park. The repairs would include ADA compliant sidewalks, installing new curb ramps, and upgrading existing curb ramps. These improvements would provide accessibility benefits for the entire community. Since the exact amount of the HUD-approved grant amount was provided recently, the recommendation for acceptance of the CDBG grant will increase slightly to $152,251.

FISCAL IMPACT
The Community Development Block Grant (CDBG) has awarded a total of $202,097 to the City of Newark. Of this amount, $49,846 is allocated to the Alameda County Minor Home Repairs Program. The remaining balance of $152,251 will be retained by the City and has been included in the proposed 2024-2026 Biennial Budget and Capital Improvement Plan for consideration for adoption by the City Council on June 27, 2024.

REVIEW AND APPROVAL
Prepared by - Art Interiano, Deputy Community Development Director Reviewed by - Steven Turner, Community Development Director Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - Lenka Hovorka, Assistant City Manager
Attachments
Resolution - 2024-2025 CDBG
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AUTHORIZING THE CITY MANAGER TO

EXECUTE AN AGREEMENT WITH ALAMEDA COUNTY

FOR PARTICIPATION IN THE ALAMEDA COUNTY URBAN

COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT
(CDBG) PROGRAM FOR FISCAL YEAR 2024-2025
WHEREAS, the City of Newark is eligible for an entitlement of Community Development Block Grant funds (CDBG) based on its participation in the Alameda County Urban County; and
WHEREAS, the County has allocated $202,097 in CDBG funds to the City based on the City's participation in the Urban County; and
WHEREAS, the City anticipated an amount of $210,042 for the annual grant award and the contract amount is lower than expected by $7,945 and the funding amount will be adjusted for Jurisdictional Improvement projects as recommended by the CDAC; and WHEREAS, the County retains $49,846 of the City's allocation providing for Minor Home Repair Program, which will be administered by Alameda County Healthy Homes Department; and
WHEREAS, the City will retain the remaining $152,251 funds to use towards jurisdictional improvements and administrative costs; and WHEREAS, the activities of the City under the Agreement with the County shall be governed by the conditions of the Grant Agreement between the County and the United States Department of Housing and Urban Development; and
WHEREAS, the City's proposed projects are CDBG-eligible in accordance with HUD regulations and the conditions of the CDBG Grant Agreement.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newark that the City Manager of the City of Newark is hereby authorized to execute an agreement with Alameda County for participation in the Alameda County Urban County Community Development Block Grant (CDBG) Program for Fiscal Year 2024-2025, said agreement on file in the Office of the City Clerk.

BE IT RESOLVED that the City Council of the City of Newark hereby intends to include the awarded CDBG grant in the proposed 2024-2026 Biennial Budget and Capital Improvement Plan for consideration for adoption by the City Council on June 27, 2024 Item D. 8.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Tonya Connolly, Maintenance Superintendent
SUBJECT Adopt a resolution authorizing the City Manager to execute a Contractual Services Agreement with West Coast Arborists, Inc. for ongoing maintenance services of City trees located in parks, streets and City-owned properties
SUMMARY AND RECOMMENDATION
The City utilizes outside consultants to perform ongoing maintenance services of City trees located in parks, streets and City-owned properties. Following a Request for Proposals process, staff is recommending a Contractual Services Agreement with West Coast Arborists, Inc. (WCA) in the amount not to exceed $3,500,000 for such services through Fiscal Year 2029. The projected cost for Fiscal Year 2025 is approximately $640,000.

Staff recommends that the City Council, by resolution, authorize the City Manager to enter into a Contractual Services Agreement, in a form approved by the City Attorney, with West Coast Arborists, Inc., in an amount not to exceed $3,500,000 for tree maintenance services through Fiscal Year 2029.

BACKGROUND
The City regularly utilizes outside consultants to perform ongoing maintenance of City trees located in parks, streets and City-owned properties. The ongoing contract for consultant tree maintenance services is an integral component of the Public Works Maintenance Division's overall scope of services for the community.

The Maintenance Division prepared and released an open and competitive Request for Proposals (RFP) for 2024-2025 Tree Maintenance Services in accordance with the City's Purchasing Rules and Regulations. The RFP specified that selection would be made based on the quality and completeness of proposals, experience of staff and management team, proposed methodology, quality control program, satisfaction of previous clients and quality of referenced work, proficiency with billing practices, financial stability of company, quality of equipment, tools and uniforms, and propfosed rate schedules/estimated cost for services.

DISCUSSION/ANALYSIS
Following the Request for Proposals, staff received one proposal on or before May 31, 2024, from West Coast Arborists, Inc. The Proposal was subsequently evaluated based on the selection criteria listed above. West Coast Arborists, Inc. provided a comprehensive proposal that satisfied these selection criteria, including competitive rate schedules/estimated cost for services. West Coast Arborists, Inc. has previously provided excellent service of a similar nature to the City and, based on staff's analysis, would provide value to the City for current tree maintenance service needs.

Staff is therefore recommending the selection of West Coast Arborists, Inc. to provide tree maintenance services for Fiscal Year 2025 with options for annual renewals through Fiscal Year 2029. The Contractual Services Agreement would begin on July 1, 2024 and expire on June 30, 2029, subject to available funding levels to be approved by the City Council. Under the terms of the agreement, West Coast Arborists, Inc. would provide the requested services in the amount not to exceed $3,500,000 through Fiscal Year 2029. The projected cost of tree maintenance services for Fiscal Year 2025 is $640,000. Prices may be increased annually by the consumer price index identified in the agreement.

FISCAL IMPACT
The proposed 2024-2026 Biennial Budget and Capital Improvement Plan has sufficient funding for tree maintenance services through Fiscal Year 2026 under this agreement.

Any future renewals will be subject to prior funding approval 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 - Lenka Hovorka, Assistant City Manager
Attachments
Resolution WCA
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK APPROVING A CONTRACTUAL SERVICES
AGREEMENT WITH WEST COAST ARBORISTS, INC., IN A

FORM APPROVED BY THE CITY ATTORNEY, IN AN
AMOUNT NOT TO EXCEED $3,500,000 FOR TREE
MAINTENANCE SERVICES THROUGH FISCAL YEAR 2029
WHEREAS, the City prepared and released a Request for Proposals for tree maintenance services in City parks, streets and other City-owned properties; and WHEREAS, the City received one proposal that was evaluated by staff based on the quality and completeness of proposals, experience of staff and management team, proposed methodology, quality control program, satisfaction of previous clients and quality of referenced work, proficiency with billing practices, financial stability of company, quality of equipment, tools and uniforms, and proposed rate schedules/estimated cost for services; and WHEREAS, based on the evaluation, staff determined that West Coast Arborists, Inc. is the most qualified firm to provide the requested tree maintenance services at the best value to the City.

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, in a form approved by the City Attorney, with West Coast Arborists, Inc. in an amount not to exceed $3,500,000.00 for tree maintenance services through Fiscal Year 2029.

BE IT FURTHER RESOLVED that the City Council hereby authorizes the City Manager to take all actions necessary to effectuate the intent of this Resolution.

Item D. 9.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Gustavo Perez, Facilities Supervisor
SUBJECT Adoption of a resolution authorizing the City Manager to execute Amendment No. 1 to the Contractual Services Agreement with Universal Building Services and Supply Company for janitorial services for City buildings
SUMMARY AND RECOMMENDATION
Universal Building Services and Supply Company (UBS) entered into a Contractual Services Agreement (Agreement) with the City of Newark for janitorial services at all City buildings. The not-to-exceed amount of the Agreement is $1,015,000 through Fiscal Year 2024, with optional annual increases through Fiscal Year 2028. An increase to the Agreement is necessary to complete an increased scope of work in Fiscal Year 2024 and to provide for increased services through Fiscal Year 2028.

Staff recommends that the City Council authorize the City Manager to execute Amendment No. 1 to the Contractual Services Agreement with Universal Building Services and Supply Company, in a form approved by the City Attorney, to increase the not-to-exceed amount to $3,664,000 for services through Fiscal Year 2028.

BACKGROUND
In December 2022, the City awarded a Contractual Services Agreement (Agreement) to Universal Building Services and Supply Company (UBS) for janitorial services with a not-to-exceed amount of $1,015,000 for the initial 19-month period (through June 2024) with the option to extend the Agreement for four (4) additional 12-month periods (through June 2028) with an increased amount and additional increases based on the Consumer Price Index. The not-to-exceed amount was based on decreased service levels during the pandemic as many City facilities were not fully occupied.

At the start of the Agreement, from December 2022 to May 2023, the City experienced a reduction in services due to low occupancy during the pandemic. This was evident at locations such as the George M. Silliman Community Activity Center, where patronage was limited. Since June 2023, as patronage and occupancy increased at all facilities, the City has added monthly and other less frequent specialty services such as carpet cleaning, window cleaning, pool deck scrubbing, and floor polishing in response to service request needs. The City also added a cleaning day (Sundays) for the Alameda County Library. Through the first 19-month period of the current Agreement, UBS has provided janitorial services at all City facilities, which includes day-to-day cleaning, day porters for specialized cleaning, and increased monthly or other less frequent duties.

UBS also provided emergency response for plumbing repairs at several locations or services for special events, such as the Tree Lighting Ceremony, Grand Opening at Civic Center, Newark Days, or cleanings after large group meetings or training sessions. During Fiscal Year 2024 the City anticipates spending up to $521,906 for services provided by UBS, $38,484 over the Agreement amount specified for Fiscal Year 2024.

DISCUSSION/ANALYSIS
In accordance with the current Agreement, there is an option to extend the contract for an additional four years through FY 2028. A contract amendment to increase the not-to-exceed amount would allow the City to continue to retain the services of UBS as the City restores janitorial services back to pre-pandemic levels. Based on current contract pricing and anticipated service level needs, staff is requesting a not-to-exceed increase to $3,664,000 through FY 2028. The total scope of services remains unchanged. This proposed not-to-exceed amount increase is for UBS to provide services through the full potential term of the contract (through FY 2028), whereas the original $1,015,000 was through FY 2024 only. The $3,664,000 amount includes an anticipated 3% increase per year based on the Consumer Price Index cited in the agreement. The extension of services each year would still be subject to approval by task order under the original agreement and prior funding approval by the City Council.

FISCAL IMPACT
The draft 2024-2026 Biennial Budget and Capital Improvement Plan includes sufficient funding for the proposed services for FY 2025 and FY 2026. Funding for FY 2027 and FY 2028 are subject to City Council approval during the biennial budget process.

REVIEW AND APPROVAL
Prepared by - Gustavo Perez, Maintenance Supervisor
Reviewed 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 - Lenka Hovorka, Assistant City Manager
Attachments
Resolution
UBS Amendment No. 1
UBS Contract
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

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

SERVICES AGREEMENT WITH UNIVERSAL BUILDING

SERVICES AND SUPPLY COMPANY, IN A FORM

APPROVED BY THE CITY ATTORNEY, TO INCREASE THE
NOT TO EXCEED COMPENSATION TO $3,664,000
THROUGH FISCAL YEAR 2028
WHEREAS, the City of Newark awarded a Contractual Services Agreement to Universal Building Services and Supply Company (“UBS”) for janitorial services for City buildings; and WHEREAS, the Maintenance Division of the Public Works Department has identified necessary increases to janitorial services to satisfy internal and external customer needs; and WHEREAS, to address these customer service needs and provide contractual capacity for the full potential term of the service contract, there is a need to amend the Contractual Services Agreement to increase the not-to exceed amount to $3,664,000 for anticipated services needed through Fiscal Year 2028; and
WHEREAS, the original agreement with UBS contemplated providing services through Fiscal Year 2028.

NOW THEREFORE, BE IT RESOLVED that the City Council hereby authorizes the City Manager to execute Amendment No. 1 to the Contractual Services Agreement with Universal Building Services and Supply Company, in a form approved by the City Attorney, to increase the not-to-exceed amount of the Contractual Services Agreement to $3,664,000 through Fiscal Year 2028, with any written task orders approved by the Public Works Director based on previously approved budgetary sources.

BE IT FURTHER RESOLVED that the City Council hereby authorizes the City Manager to take any actions necessary to effectuate the intent of this Resolution. 1 FIRST AMENDMENT TO THE

CONTRACTUAL SERVICES AGREEMENT

BETWEEN THE CITY OF NEWARK AND

UNIVERSAL BUILDING SERVICES AND

SUPPLY COMPANY
This First Amendment to Contractual Services Agreement between the City of Newark, a municipal corporation, ("City") and Universal Building Services and Supply Company, a California corporation ("Consultant") (sometimes referred to as "Parties") dated December 2022 (the “Agreement”), and is entered into as of for ongoing janitorial services in City buildings.

RECITALS
WHEREAS, the Parties executed the Agreement for the purpose of ongoing janitorial services for city buildings; 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 Agreement was initially for one nineteen-month term and the City has the option to extend the Agreement for up to four additional fiscal years; 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 be replaced in its entirety with the following:

City hereby agrees to pay Consultant a sum not to exceed Three Million Six Hundred and SixtyFour Thousand Dollars, ($3,664,000.00), for all services through Fiscal Year 2028 subject to Section 4 of the Agreement for Additional Services, notwithstanding any contrary indications that may be contained in Consultant’s proposal for services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Consultant’s proposal, attached as Exhibit A, regarding the amount of compensation, the Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for services rendered pursuant to this Agreement.

Consultant shall submit all invoices to City in the manner specified herein. Except as specifically authorized by City in writing, Consultant shall not bill City for duplicate services performed by more than one person.

Consultant and City acknowledge and agree that compensation paid by City to Consultant 2 under this Agreement is based upon Consultant’s estimated costs of providing the services required hereunder, including salaries and benefits of employees and subcontractors of Consultant. Consequently, the parties further agree that compensation hereunder is intended to include the costs of contributions to any pensions and/or annuities to which Consultant and its employees, agents, and subcontractors may be eligible. City therefore has no responsibility for such contributions beyond compensation required under this Agreement.

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

CITY OF NEWARK AND SUPPLY COMPANY

David J. Benoun Dario DeVincenzi
City Manager Operations Manager
Dated: ___________________________ Dated:

Attest:
__________________________________
Sheila Harrington
City Clerk
Approved as to Form:
__________________________________
Kristopher J. Kokotaylo
City Attorney

Item D. 10.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Art Interiano, Deputy Community Development Director SUBJECT Adopt a resolution authorizing the City Manager to execute the first amendment to the agreement with Alameda County for
participation in the Alameda County Urban County
SUMMARY AND RECOMMENDATION
The City responded to an opportunity to obtain additional grant funding for the Fiscal Year 2023-2024 Community Development Block Grant (CDBG). The City previously approved the annual CDBG grant contract on July 11, 2023, and received a total of $322,906.16. However, earlier this year staff was made aware of an opportunity to apply for approximately $400,000 of Capital Pools and Urban County Contingency Funds still available. Staff applied and the City was awarded $232,023 of the available funds for the City's project to remodel the Newark Family Resource Center adjacent to Ash Street Park. Acceptance of these additional grant funds requires an amendment to the previously approved FY 2023-2024 Annual Agreement with Alameda County to increase the overall CDBG grant award to $554,929.16.

Staff recommends that the City Council, by resolution, authorize the City Manager to sign the First Amendment to the FY 2023-2024 Annual Agreement with Alameda County for participation in the Alameda County Urban County Community Development Block Grant (CDBG) Program.

Newark’s funds are disbursed through Alameda County. The County oversees Newark’s use of the funds in order to ensure that all appropriate federal government requirements are met. This arrangement is established and governed each year by a pair of agreements, one between Alameda County and HUD, and one between the City and Alameda County. A copy of the agreement between Newark and Alameda County is attached. By approving this resolution, the City Council will authorize the City Manager to execute the First Amendment to the agreement between the City of Newark and Alameda County, to accept the additional funds for FY 2023-2024.

DISCUSSION/ANALYSIS
Recently, the City has sought additional funding for the proposed Family Resource Center improvements. The total cost for the Newark Family Resource Center project is approximately $1.8 million. The City received an award of $1 million from the State with the assistance of Assembly Member Alex Lee, but a budget gap to fully finance the project remains. When the opportunity to apply for additional CDBG grant funding was announced, staff identified the Family Resource Center as a viable project for the Capital Pool and Urban County Contingency Funds. Although the City requested $400,000, the awarded amount was $232,023.

The Community Development Advisory Committee (CDAC) met on May 1, 2024 to review the status of CDBG projects for the upcoming year. As part of the meeting agenda, staff provided the CDAC with an update on the additional funding for FY 2023-2024 as part of an informative item.

FISCAL IMPACT
Staff requests that the City Council amend the 2022-2024 Biennial Budget and Capital Improvement Plan to reflect a total of $554,929.16 of Federal Grants and Awards account (4793) in the Housing and Community Development Fund (214).

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AUTHORIZING THE CITY MANAGER TO

EXECUTE THE FIRST AMENDMENT TO THE AGREEMENT

WITH ALAMEDA COUNTY FOR PARTICIPATION IN THE

ALAMEDA COUNTY URBAN COUNTY COMMUNITY

DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM FOR
FISCAL YEAR 2023-2024
WHEREAS, the City of Newark is eligible for an entitlement of Community Development Block Grant funds (CDBG) based on its participation in the Alameda County Urban County; and
WHEREAS, the County has allocated $322,906.16 in CDBG funds to the City based on the City's participation in the Urban County; and
WHEREAS, the City and County have agreed to revise the Fiscal Year 2023-2024 Annual CDBG contract (Exhibit A) to allocate additional funds in the amount of $99,127 in Capital Project Pool and $132,896 in Urban County Contingency Funds. The additional funds will be reflected in the First Amendment (Exhibit B) to the annual CDBG contract (the “Agreement”) in the amount of $232,202; and
WHEREAS, the County has revised the Agreement to increase the allocated grant by $153,455.16 to the total amount of $554,929.16; and
WHEREAS, the City will use the grant funds toward Jurisdictional Improvement projects and remodel of the Newark Family Resource Center; and
WHEREAS, the activities of the City under the Agreement with the County shall be governed by the conditions of the Grant Agreement between the County and the United States Department of Housing and Urban Development; and
WHEREAS, the City's proposed projects are CDBG-eligible in accordance with HUD regulations and the conditions of the CDBG Grant Agreement.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newark that the City Manager of the City of Newark is hereby authorized to execute the First Amendment to the Agreement with Alameda County for participation in the Alameda County Urban County Community Development Block Grant (CDBG) Program for Fiscal Year 2023-2024, said Agreement is on file in the Office of the City Clerk.

BE IT RESOLVED that the City Council of the City of Newark hereby amends the 2022 -2024 Biennial Budget and Capital Improvement Plan to reflect a total of $554,929.16 of Federal Grants and Awards account (4793) in the Housing and Community Development Fund (214).

First Amendment C-25716
1 FIRST AMENDMENT TO THE AGREEMENT

BETWEEN

CITY OF NEWARK
AND

THE COUNTY OF ALAMEDA
THIS FIRST AMENDMENT, entered into on the 14th day of May 2024, modifies the Contract (No. 25716) entered into on the 1st day of July 2023 between the COUNTY OF ALAMEDA, a body corporate and politic of the State of California, hereinafter referred to as “COUNTY” and the CITY OF NEWARK, located in the County of Alameda, for Community Development Block Grant (CDBG) services.

WHEREAS, on July 1, 2023, the COUNTY and the CITY OF NEWARK entered into the Contract (No. 25716) for CDBG services (the “Agreement”); and WHEREAS, the COUNTY and the CITY OF NEWARK desire to amend the Agreement to adjust the scope of work and allocate additional funds to the CITY OF NEWARK for the implementation of additional CDBG eligible programs and services as outlined in the Agreement; and
THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby acknowledged, COUNTY and the CITY OF NEWARK agree as follows:

A. Agreement, Paragraph I.B. (Page 1) is amended as follows:

Delete, “The amount of fiscal year 2023 CDBG funds available to City to perform the work described in Exhibit A is three hundred twenty-two thousand, nine hundred six dollars and sixteen cents ($322,906.16).” and replace it with “The maximum amount of fiscal year 2023 CDBG funds allocated to the City pursuant to this Agreement for performing the work described in Exhibit A is five hundred fifty-four thousand, nine hundred twenty-nine dollars and sixteen cents ($554,929.16), consisting of $322.906.16 in FY23 entitlement funds, $99,127 in FY23 Capital Project Pool Funds and $132,896 in Urban County Contingency Funds.”
B. Delete Exhibit A attached to the Agreement (Page 9) in its entirety and replace it with the revised Exhibit A attached hereto.

C. Except as provided for in this First Amendment, all other terms and conditions of the Agreement, as amended, remain in full force and effect. [SIGNATURES TO FOLLOW ON NEXT PAGE]
First Amendment C-25716
2 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Agreement as of the day and year first above written.

CITY OF NEWARK COUNTY OF ALAMEDA
By:_________________________________ By: ______________________________ David Benoun, City Manager President, Board of Supervisors

Date: _______________________________ Date: _______________________________

Attest: ______________________________
Sheila Harrington, City Clerk
Date: _______________________________

By: _________________________________
Kris Kokotaylo, City Attorney
Date: _____________________________
Approved as to Form:

Donna R. Ziegler, County Counsel

By: ______________________________
Caitlyn M. Gulyas,
Deputy County Counsel
By signing above, signatory warrants and represents that he/she executed this First Amendment to the Agreement in his/her authorized capacity and that by his/her signature on this First Amendment to the Agreement, he/she or the entity upon behalf of which he/she acted, executed this First Amendment to the Agreement.
4/30/2024
4/29/2024
4/30/2024
First Amendment C-25716
3 AGREEMENT BY AND BETWEEN

THE CITY OF NEWARK
AND

THE COUNTY OF ALAMEDA

EXHIBIT A
Rev. 4/1/2024
01 – Rehabilitation of Real Property
Facility upgrades for Newark Family Resources Center (Capital Projects Pool Funds and Urban County Contingency Funds)
$232,023
03L – Sidewalks
Improve ADA parking accessibility, including basketball court resurfacing at Mayhews Landing Park, and pathway repairs at Birch Grove Park $155,000
14A Rehabilitation - Single Unit Residential
Minor Home Repair Program that promotes the maintenance of homes for the benefit of low-income Alameda County residents. County will retain funds allocated by City for services to be performed by Alameda County Healthy Homes. Including $11,490.29 for project delivery costs. $51,884
21A Administration
Funds to be used in ADA Curb Cut program $3,158
Anticipated Program Income – project TBD $112,864.16
TOTAL - CITY OF NEWARK $554,929.16
* Based on an estimate of prior years’ program income received; only actual program income received will be available to the City for its Revolving Loan Fund (Housing Rehabilitation Programs).

Item D. 11.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Michelle Villanueva, Senior Accountant
SUBJECT Adopt a resolution authorizing the City Attorney to annually execute a Certification and Mutual Indemnification Agreement with the County of Alameda
SUMMARY AND RECOMMENDATION
The City currently has an agreement with Alameda County that authorizes the collection of various taxes, assessments, and fees on the secured property tax roll.

Staff recommends that the City Council, by resolution, authorize the City Attorney to annually execute a Certification and Mutual Indemnification Agreement with the County of Alameda.

BACKGROUND
Since the passage of Proposition 218 in 1996, the County has required that each agency or district sign an annual statement certifying that each assessment, fee, and/or special tax placed on the tax roll meets the requirements of Proposition 218 and that the City indemnify the County related to any challenges for the collection of such assessments, fees and/or taxes.

DISCUSSION/ANALYSIS
Staff, in conjunction with the City Attorney, reviewed each of the City's taxes, assessments, and fees to ensure compliance with Proposition 218 and the proposed County agreement for approval as to form. Staff and the City Attorney perform this evaluation on an annual basis and recommend that the City Council approve a resolution authorizing annual execution of this agreement.

FISCAL IMPACT
There is no fiscal impact associated with this action.

REVIEW AND APPROVAL
Prepared by - Michelle Villanueva, Senior Accountant
Prepared by - Michelle Villanueva, Senior Accountant
Reviewed by - Gloria del Rosario, Deputy Finance Director Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - Lenka Hovorka, Assistant City Manager
Attachments
Resolution - Mutual indemnification Agreement Alameda County RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF NEWARK AUTHORIZING THE CITY ATTORNEY

TO ANNUALLY EXECUTE A CERTIFICATION AND

MUTUAL INDEMNIFICATION AGREEMENT WITH

THE COUNTY OF ALAMEDA RELATED TO

COLLECTION OF VARIOUS TAXES, ASSESSMENTS

AND FEES ON THE SECURED PROPERTY TAX ROLL
WHEREAS, the City of Newark has an agreement with the County of Alameda which authorizes the collection of various taxes, assessments, and fees on the secured property tax roll; and
WHEREAS, since 1996, the County of Alameda has required that each agency or district sign an annual statement certifying that each assessment, fee, and/or special tax placed on the tax roll meets the requirements of Proposition 218; and WHEREAS, staff has reviewed and confirmed that each of the City’s taxes, assessments, and fees are in compliance with Proposition 218.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newark that the City Attorney is hereby authorized to annually execute a Certification and Mutual Indemnification Agreement with the County of Alameda following confirmation from staff that each of the City’s taxes, assessments, and fees are in compliance with Proposition 218.

Item D. 12.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Gloria Del Rosario, Accounting Manager
SUBJECT Adopt a resolution declaring that there is no need for the Successor Agency to the Redevelopment Agency to function in the community and requesting that the Alameda County Oversight Board approve the dissolution of the Successor Agency
SUMMARY AND RECOMMENDATION
Staff recommends that the City Council approve a resolution declaring that there is no need for the Successor Agency to Redevelopment Agency to function in the community and requesting that the Alameda County Oversight Board approve the dissolution of the Successor Agency.

BACKGROUND
On August 14, 1976, the City Council declared a need to eliminate blight in the community and created the Redevelopment Agency of the City of Newark (the “Agency”) and recorded a map of the Newark Vista Redevelopment Project Area (the “Project Area”). The map of the Project Area was subsequently amended to add territory to the Project Area.

In June 2011 the California Legislature passed AB x1 26 (as subsequently amended, the “Dissolution Law”) which dissolved all redevelopment agencies in the State of California and created successor agencies to wind down the redevelopment activities of the former redevelopment agencies.

On January 12, 2012, the City Council adopted a resolution electing to serve as the Successor Agency to the Redevelopment Agency of the City of Newark (the “Successor Agency”) and to assume the responsibilities, rights and powers of a successor agency to wind down the affairs of the Agency, as required under the Dissolution Law.

DISCUSSION/ANALYSIS
The Successor Agency has now repaid all debt and has disposed of any real estate, as The Successor Agency has now repaid all debt and has disposed of any real estate, as required under the Dissolution Law, and the City Council now desires to dissolve the Successor Agency. By adoption of this resolution, the City Council is requesting that the Alameda County Oversight Board approve the dissolution of the Successor Agency and forward the request to the California Department of Finance.

Once the City has received final notice of dissolution of the Successor Agency from the Oversight Board, the City will record a notice terminating the Newark Redevelopment Project Area.

FISCAL IMPACT
Upon dissolution of the Successor Agency, all pass through payment agreements between the Agency and any taxing entities are automatically terminated and no further property tax will be distributed to the Redevelopment Property Tax Trust Fund. Going forward, all property taxes will be distributed to the City resulting in additional tax revenue.

REVIEW AND APPROVAL
Prepared by - Gloria del Rosario, Deputy Finance Director Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - Lenka Hovorka, Assistant City Manager
Attachments
Resolution - RDA Dissolution
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK DECLARING THAT THERE IS NO NEED FOR THE

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY

TO FUNCTION IN THE COMMUNITY AND REQUESTING

THAT THE ALAMEDA COUNTY OVERSIGHT BOARD

APPROVE THE DISSOLUTION OF THE SUCCESSOR
AGENCY
WHEREAS, the City Council of the City of Newark created the Redevelopment Agency of the City of Newark (the “Agency”) by adoption of Ordinance No. 140 on August 14, 1976; and
WHEREAS, the California Legislature dissolved all redevelopment agencies in 2012 and created successor agencies by adoption of the Redevelopment Dissolution Law (Health and Safety Code Section 34170 et seq.) (the “Dissolution Law”); and WHEREAS, pursuant to the Dissolution Law, the City Council adopted Resolution No. 9910 on January 12, 2012 electing to serve as the Successor Agency to the Agency (the “Successor Agency”); and
WHEREAS, pursuant to Section 34187(b) of the Dissolution Law, once all of the Successor Agency’s enforceable obligations have been repaid, any real property has been disposed of, and all outstanding litigation has been resolved, the successor agency shall, submit to the oversight board a request, with a copy of the request to the county auditor-controller, to formally dissolve the Successor Agency; and
WHEREAS, this City Council desires to request that the Alameda County Oversight Board approve the dissolution of the Successor Agency and submit the City Council’s request to the California Department of Finance.

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

Section 1. All of the recitals above are true and correct and incorporated herein.

Section 2. The City Council hereby requests that the Alameda County Oversight Board approve the dissolution of the Successor Agency and submit the request to the California Department of Finance in accordance with the Health and Safety Code.

Section 3. The City Manager or his designee is hereby authorized to send this request to the Alameda County Oversight Board with a copy of the request to the county auditor controller.

Section 4. The City Manager or his designee is hereby authorized to execute all documents and take any other actions necessary to dissolve the Successor Agency and to meet any other requirements under this Resolution.

Section 5. This Resolution is effective on the date of its adoption.

Item D. 13.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Krysten Lee, Finance Director
SUBJECT Year-End Budget Review and Adoption of a Resolution Amending the 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year 2024
SUMMARY AND RECOMMENDATION
Each year, as part of the year-end budget review process, staff reports on trends and actions subsequent to the adoption of the Biennial Budget and addresses any newly identified budget changes anticipated before the end of the fiscal year (June 30). This report analyzes the unaudited financial status of the City’s General Fund revenues and expenditures. Additionally, it provides year-end projections based on actual data through the third quarter of FY 2024, comparing these projections to the Amended Budget. Staff recommends that the City Council, by Resolution, amend the 2022-2024 Biennial Budget and Capital Improvement Plan for Fiscal Year (FY) 2024 according to the recommended amendments for each fund presented as Exhibit A.

BACKGROUND
The City Council adopted the 2022-2024 Biennial Budget and Capital Improvement Plan on June 23, 2022. Budget amendments occur throughout the year when unanticipated events result in an increase or decrease in revenue projections and appropriations. Regular practice includes presenting mid-year and year-end budget amendments to the City Council for consideration.

During the FY 2024 mid-year budget review, updates were made to the available City resources based on:

The audited financial statements for FY 2023 (presented to the City Council on January 11, 2024).

1. 2. The City's unaudited financial position through the third quarter of FY 2024.

3. Year-end projections based on the most recent economic trends.

DISCUSSION/ANALYSIS
FY 2024 is the second year of the City's biennial budget cycle. As part of the year-end FY 2024 is the second year of the City's biennial budget cycle. As part of the year-end review process, several amendments are proposed to align budgeted revenues and expenditures with the most current information. These amendments are identified where changes have occurred since adopting the Biennial Budget in June 2022.

Summary of Significant Amendments to the General Fund Operating Budget for FY 2024:

Emergency Services Program: Add an appropriation of $99,000 for General Contractual Services. Initially budgeted under the City Manager’s Office (non-program specific), the cost of shared services with the City of Union City for an Emergency Services Coordinator needs to be accurately reflected within the newly created Emergency Services Program within the City Manager's Office. The City Manager’s Office budget will be reduced by $95,000, the estimated cost and original appropriation at the beginning of FY 2024.

Police Department: Increase the contractual services budget by $4,000 to reflect the City of Fremont Animal Shelter services FY 2023 true-up.

Alameda County Fire Services: Increase appropriation by $242,000 for facility improvement costs.

Property Tax Administration Fees: Add an appropriation of $22,000.

Recreation Department:

Increase appropriation by $7,000 for enhancement of the Recreation Peak Software.

Add an appropriation of $4,000 for the purchase of the Affektive Software used to enhance the Recreation Department’s operations and improve customer engagement.

Add an appropriation of $12,000 for a special mailing of the Recreation postcards.

Increase appropriation by $214,000 for Recreation Instructors for contract classes that generate revenue to eventually off-set the cost.

Increase appropriation by $20,000 for Substitute Teachers services.

Other Funds:

Expenditure modifications are proposed to align the budget to actuals and are offset by the fund balance in each of those funds. Adjustments to the Special Revenue Funds and Internal Services Funds include:

Capital Improvement Project 1014 - Central Avenue Overpass Development Phase I:

Add an appropriation of $771,000. A contract amendment and resolution #11298 increased the not-to-exceed amount of a contract with Consor North America, but the resolution did not include budget language increasing the budget. This year-end budget adjustment request will accomplish that.

Bay Area Bike to Work Day (BTWD) Sponsorship: Add an appropriation of $3,000 for sponsorship to demonstrate the City’s commitment to healthier and less polluted communities.

Alameda County Vision 2026 Grant: Add an appropriation of $40,000 for supplies, laptops, and grant scholarships provided by the Alameda County Vision 2026 Grant.

Public Art: Add an appropriation of $25,000 for a Public Art Consultant to coordinate public art in the Central Overpass Project.

Office Equipment and Maintenance:

Add an appropriation of $40,000 for copier, scanner, and printer maintenance and supplies.

Add an appropriation of $15,000 for postage and folding machine maintenance and supplies.

Other minor amendments and associated details are in the attachment, Exhibit A.

FISCAL IMPACT
The recommended amendments included in the year-end review will increase or decrease the Fiscal Year 2024 budgeted revenues, appropriations, and available resources of various funds as presented in Exhibit A.

REVIEW AND APPROVAL
Prepared by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - Lenka Hovorka, Assistant City Manager
Attachments
1060_Resolution_FY 2024 Year-end Amendments
Exhibit A_FY 2024 year-end Amendments
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWARK AMENDING THE 2022-2024 BIENNIAL BUDGET

AND CAPITAL IMPROVEMENT PLAN FOR FISCAL YEAR
2024
WHEREAS, the 2022-2024 Biennial Budget and Capital Improvement Plan was adopted by the City Council via Resolution No. 11,379 on June 23, 2022; and WHEREAS, as part of the year-end budget review for Fiscal Year 2024, staff has identified and proposed changes to the budget since the original adoption by the City Council.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Newark that the certain document entitled "2022-2024 Biennial Budget and Capital Improvement Plan of the City of Newark" adopted by Resolution No. 11,379 on June 23, 2022, and subsequently amended by resolutions, is hereby amended as set forth in Exhibit A attached.

Increase Decrease
110 26 026 260 6221 FR CMO - Emergency Coordinator Contract Cost 99,000 110 20 020 200 6221 TO EOC - Emergency Coordinator Contract Cost - 95,000 110 30 030 302 6221 City of Fremont FY 2023 Animal Shelter Trueup 4,000 110 40 040 400 6221 ACFD Contract - Facility Improvement Project 242,000 130 70 071 710 6150 Peak Software 7,000
130 70 071 710 6150 Affektive Software 4,000
130 70 071 710 6211 Postage for Recreation Postcards 12,000 130 70 072 720 6220 Instructors for Recreation classes 214,000 130 70 074 740 6220 Substitute Teachers for Childcare 20,000 111 40 040 400 6270 PROPERTY TAX ADMIN FEES 5,000
140 60 063 632 6270 PROPERTY TAX ADMIN FEES 5,000
GF 3000 UNAPPROPRIATED FUND BALANCE 612,000 95,000
Increase Decrease
280 90 091 910 6221 C Central Ave Overpass Project Development Phase I 771,000 282 90 091 910 6220 Bay Area Bike to Work Day (BTWD) Sponsorship 3,000 491 70 079 790 6120 Enhancing Vision 2026 Grant Supplies 3,000 491 70 079 790 6130 Enhancing Vision 2026 Grant Computer & Laptops 20,000 491 70 079 790 6950 Enhancing Vision 2026 Grant Scholarships 17,000 SRF 3000 UNAPPROPRIATED FUND BALANCE 814,000 -
Increase Decrease
401 60 068 682 6270 PROPERTY TAX ADMIN FEES 1,000
402 60 068 682 6270 PROPERTY TAX ADMIN FEES 1,000
404 60 068 682 6270 PROPERTY TAX ADMIN FEES 2,000
407 60 068 682 6270 PROPERTY TAX ADMIN FEES 1,000
411 60 068 682 6270 PROPERTY TAX ADMIN FEES 1,000
415 60 068 682 6270 PROPERTY TAX ADMIN FEES 1,000
416 60 068 682 6270 PROPERTY TAX ADMIN FEES 1,000
417 60 068 682 6270 PROPERTY TAX ADMIN FEES 1,000
418 60 068 682 6270 PROPERTY TAX ADMIN FEES 1,000
419 60 068 682 6270 PROPERTY TAX ADMIN FEES 2,000
LLDs 3000 UNAPPROPRIATED FUND BALANCE 12,000 -
Increase Decrease
626 20 020 200 6221 Public Art Consultant - Central Overpass Project. 25,000 Capital Funds 3000 UNAPPROPRIATED FUND BALANCE 25,000 - Increase Decrease
705 87 705 800 6120 Copier, Scanner, Printer maintenance and supplies 40,000 705 87 705 800 6241 Postage and folding machine 15,000
ISF 3000 ISF CHARGES FROM DEPARTMENTS 55,000 -
Internal Service Funds
Exhibit A
Year-end Budget Amendments for Fiscal Year 2024
General Fund:

Special Revenue Funds:

LLDs
Capital Project Funds:

Item D. 14.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Diana Cangco, Acting City Engineer
SUBJECT Adopt a resolution approving the Road Repair and Accountability Act of 2017 (Senate Bill 1) Fiscal Year 2025 Project List SUMMARY AND RECOMMENDATION
In order to receive Road Maintenance and Rehabilitation Account (RMRA) funds from the State, Senate Bill 1 requires cities and counties to submit to the California Transportation Commission each year a list of projects proposed to be funded with RMRA funds.

Staff recommends that City Council for Fiscal Year 2025 approve inclusion of the 2025 Asphalt Concrete Overlay Program on the City of Newark’s RMRA Project List, and that the City Council, by resolution approve the Road Repair and Accountability Act of 2017 (Senate Bill 1) Fiscal Year 2025 Project List.

BACKGROUND
In April 2017, the State Legislature passed Senate Bill 1 (SB1), the Road Repair and Accountability Act of 2017. SB1 established the Road Maintenance and Rehabilitation Program and provides a significant, stable, and ongoing increase in state transportation funding to address deferred maintenance on the state highway and local streets and roads systems. Funds for the program are deposited into the State Transportation Fund, Road Maintenance and Rehabilitation Account (RMRA). The funds come from gasoline excise taxes, diesel fuel sales taxes, and vehicle registration fees.

SB1 continues to generate over $5 billion annually for State and local transportation improvements. Cities and counties are slated to receive over $1.4 billion per year for local street and road maintenance. Allocations of funds to cities are based upon population.

It is projected that the City of Newark will receive approximately $1,229,167 of RMRA funds for Fiscal Year 2025. This funding is in addition to the Highway Users Tax Account funds that the City receives annually (commonly known as “Gas Tax” funds).

RMRA funding is included as part of the City’s 2024-2026 Biennial Budget and Capital Improvement Plan.

In order to receive RMRA funds from the State, SB1 requires cities and counties to In order to receive RMRA funds from the State, SB1 requires cities and counties to submit to the California Transportation Commission each year a list of projects proposed to be funded with RMRA funds. RMRA funds are required to be used towards projects which include, but are not limited to:
· Road maintenance and rehabilitation
· Safety improvements
· Railroad grade separations
· Traffic control devices
· Complete street components, which include active transportation elements, pedestrian and bicycle safety improvements, transit facilities, and drainage and stormwater capture measures in conjunction with other allowable projects

DISCUSSION/ANALYSIS
It is projected that the City of Newark will receive approximately $1,229,167 of RMRA funds for Fiscal Year 2025. Staff recommends that City Council approve the following RMRA project list for Fiscal Year 2025:

The RMRA project list is neither binding nor inclusive. Including a project on the list does not obligate the City to complete the project nor does it limit the flexibility of the City to use RMRA funds for projects not originally included on the list, so long as the project meets the eligibility criteria listed above.

FISCAL IMPACT
There is no fiscal impact associated with this action. Jurisdictions that receive There is no fiscal impact associated with this action. Jurisdictions that receive SB1/RMRA funds are not required to provide local matching funds.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK APPROVING THE ROAD REPAIR AND
ACCOUNTABILITY ACT OF 2017 (SENATE BILL 1) FISCAL
YEAR 2024-2025 PROJECT LIST
WHEREAS, Senate Bill 1 (SB1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects in our community that are proposed for SB1 funding and which projects are completed each fiscal year; and
WHEREAS, the City must adopt by resolution each year a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB1, with such list of projects including a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City will receive an estimated $1,229,167 in RMRA funding in Fiscal Year 2024-2025 from SB1; and
WHEREAS, this is the eighth year in which the City is receiving SB1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, and increase access and mobility options for the traveling public that would not have otherwise been possible without SB1; and
WHEREAS, the City used the 2024-2026 Capital Improvement Plan to develop the SB1 project list to ensure public input into our community’s transportation priorities; and WHEREAS, the City uses a Pavement Management System to develop SB1 project lists to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the funding from SB1 will help the City maintain and rehabilitate multiple street segments and help add active transportation infrastructure throughout the City this year and into the future; and
WHEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets are in “good” condition and this revenue will help the City maintain the overall quality of our road system over the next decade; and WHEREAS, the SB1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety and investing in complete streets infrastructure will have significant positive co-benefits statewide.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Newark does hereby approve the following list of projects to be funded in part or solely with Fiscal Year 2024- 2025 Road Maintenance and Rehabilitation Account revenues:

Project Title
& Description Project Location
Estimated
Useful
Life
Anticipated
Start of
Project
Anticipated
Completion
of Project
2025 Asphalt
Concrete Overlay
Program
Pavement
maintenance of
various streets
involving
placement of
asphalt concrete
overlay and base
repairs
 Fountain Ave – between
Haley St and Cherry St
 Castleford Ct – from
Lake Blvd to End
 Chestnut St – between
Thornton Ave and
Juniper St
 Crestmont Ave – from
Bettencourt St to End
 Barnard Street –
between Bellhaven Ave
to Lafayette Ave
 Elm St – between SP
Railroad to Wells Ave
20 years July 2025 October 2025
Item D. 15.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Diana Cangco, Acting City Engineer
SUBJECT Adopt a resolution authorizing the City Manager to execute a Cooperative Agreement with the Alameda County Water District for water main design and construction associated with the Old Town Streetscape Improvements, Project 1258
SUMMARY AND RECOMMENDATION
The Old Town Streetscape Improvements, Project 1258, is a key component of the Old Town Specific Plan and aims to serve as a catalyst for private investment within the Old Town neighborhood by improving access, safety and connections for pedestrians, bicyclists and transit users along Thornton Avenue between Olive Street and Ash Street. As part of their Small Diameter Water Main Renewal Program, the Alameda County Water District (ACWD) plans to replace the existing water system within this segment of Thornton Avenue.

To allow for a much more efficient and economical design and construction effort, as well as minimize disruption to property owners of the Old Town neighborhood during construction, staff and ACWD desire to combine their respective improvements into a single project (the Joint Project). The Joint Project will include professional engineering design services, construction, inspection, testing acceptance, and warranties related to City and ACWD improvements within the Old Town Streetscape Improvements street areas.

Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute a Cooperative Agreement with ACWD, in a form approved by the City Attorney, for water main design and construction associated with the Old Town Streetscape Improvements, Project 1258.

BACKGROUND
In 2021, the Old Town Specific Plan was approved, bringing together 30 years of planning and analysis to identify a grand vision to revitalize the Historic Newark Old Town area as a vibrant mixed-use neighborhood, with a strong sense of place, thriving retail and commercial businesses, a range of housing choices for existing and future residents, a streetscape that prioritizes bicycles and pedestrians, and public spaces that allow community members to gather with their neighbors.

In September 2023, the City entered into a Contractual Services Agreement with CSW Stuber-Stroeh Engineering Group for Professional Design Services for the Old Town Streetscape Improvements. As part of their Small Diameter Main Renewal Program, ACWD plans to replace approximately 1,750 feet of water main within the alignment of Thornton Avenue within the Old Town Streetscape Improvements project area. The work would include replacement and relocation of an existing 8-inch and 12-inch water mains, fire hydrants, water service laterals, and related appurtenances.

DISCUSSION/ANALYSIS
In order to allow for a much more efficient and economical design and construction effort, as well as minimize disruption to property owners of the Old Town neighborhood during construction, staff and ACWD desire to combine their respective improvements into a Joint Project. The Joint Project would allow the City's consultant team, CSW Stuber-Stroeh Engineering Group, to design both the City and ACWD improvements as a single project. Similarly, the construction of the Joint Project would be bid as a single project, with one contractor selected to construct all improvements concurrently. In all, the Joint Project would include professional engineering design services, construction, inspection, testing, acceptance, and warranties related to City and ACWD improvements within the Old Town Streetscape Improvements project area.

A Cooperative Agreement has been prepared to facilitate this joint effort between the City and ACWD. The agreement addresses roles, responsibilities, and cost-sharing for the City and ACWD to complete the design and construction of the Joint Project improvements. The City would serve as the lead agency and administer the contracts for both professional engineering design services and the construction of the Joint Project improvements. ACWD participated in the evaluation of proposals received for professional engineering design services in support of the Joint Project. Construction bid items associated with ACWD's water system improvements would be identified separately as Alternate Bid Items in the construction contract. Upon review of all construction bids received, ACWD would reserve the option to remove their water system items from the construction contract should the cost or other terms be unacceptable.

FISCAL IMPACT
Partnering with ACWD and entering into the Cooperative Agreement would not cause additional project costs for the City. Instead, both City and ACWD staff anticipate that combining our two projects will result in a more efficient and economic design and construction process.

Per the terms of the Cooperative Agreement, ACWD will be responsible for 100% of the cost of professional engineering services, materials, and equipment attributed specifically to the design and construction of their water system improvements. A 5% administrative fee would also be added to all ACWD construction costs to reimburse the City for administration and construction management of the Joint Project contracts.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AUTHORIZING THE CITY MANAGER TO

EXECUTE A COOPERATIVE AGREEMENT WITH THE

ALAMEDA COUNTY WATER DISTRICT IN A FORM

APPROVED BY THE CITY ATTORNEY FOR THE WATER

MAIN DESIGN AND CONSTRUCTION ASSOCIATED WITH

THE OLD TOWN STREETSCAPE IMPROVEMENTS,
PROJECT 1258.

WHEREAS, on September 23, 2021, the City Council adopted the Old Town Specific Plan, bringing together over 30 years of planning and analysis for Newark’s Old Town neighborhood; and
WHEREAS, Old Town Streetscape Improvements, Project 1258 is a key component of the Old Town Specific Plan and aims to serve as a catalyst for private investment within the Old Town neighborhood by improving access, safety and connections for pedestrians, bicyclists, and transit users; and
WHEREAS, the Alameda County Water District (ACWD), as part of their Small Diameter Main Renewal Program, plans to replace existing water mains in the same street sections associated with Project 1258; and
WHEREAS, to ensure an efficient and economical design and construction effort and to minimize the disruption to property owners of these areas during construction, a combined single project is desirable and would include professional design services, construction, inspection, testing, acceptance and warranties related to the City and ACWD improvements in these areas; and
WHEREAS, a Cooperative Agreement has been prepared to facilitate this joint effort between the City and ACWD, with the City serving as the lead agency. This agreement provides for the roles, responsibilities, and cost-sharing for the City and ACWD to complete the design and construction of the collective improvements.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Newark does hereby authorize the City Manager to execute a Cooperative Agreement with the Alameda County Water District in a form approved by the City Attorney for the water main design and construction associated with the Old Town Streetscape Improvements, Project 1258.

Coopera�ve Agreement – City of Newark and ACWD
Newark Old Town Streetscape and Main Renewal 1 of 13 5/23/2024

COOPERATIVE AGREEMENT

BETWEEN CITY OF NEWARK AND THE ALAMEDA COUNTY WATER

DISTRICT FOR COST SHARING FOR WATER MAIN INSTALLATION WORK FOR

THE NEWARK OLD TOWN STREETSCAPE AND MAIN RENEWAL PROJECT (City Project P1258, ACWD Job XXXXX)
This "Coopera�ve Agreement for the Newark Old Town Streetscape and Main Renewal Project (City Project P1258, ACWD Job XXXX)" ("Agreement") is made and entered into by and between the City of Newark, a municipal corpora�on ("City"), and the Alameda County Water District ("ACWD"), a county water district duly organized and exis�ng under the County Water District Law (being Division 12 of the Water Code of the State of California). City and ACWD may be collec�vely referred to herein as the "Par�es."

RECITALS
A. As part of its Small Diameter Main Renewal Program, ACWD is planning and intends to construct or cause the construc�on of improvements to its water system within the City right-of-way, including approximately 1,750-feet of water main within the alignment of Thornton Avenue between Ash Street and Cherry Street, Dairy Street between Thornton Avenue and Sycamore Street, Sycamore Street between Dairy Avenue and Thornton Avenue, Magnolia Street between Thornton Avenue and Rich Avenue, and connec�ons at cross streets along this alignment. The work will include replacement and reloca�on of exis�ng 8-inch and 12-inch water mains with 12- inch water mains, fire hydrants, water service laterals, and related appurtenances (ACWD Job XXXX, the "ACWD Waterline Work").

B. The City is planning and intends to construct the Newark Old Town Streetscape Project (City Project P1258, the "City Project"), in accordance with the City’s Old Town Specific Plan, which encompasses a 76-acre area, to revitalize Old Town Newark as a vibrant mixed-use neighborhood; the City Project includes reconstruc�ng the streets with new curb and guter, sidewalk, pavement sec�on, improved and/or new storm water drainage systems, and landscaping in and around Thornton Avenue from Ash Street to Olive Street and include the exis�ng public plaza areas on the north side of Magnolia Street & Thornton Avenue and the Carter Sta�on Plaza at the south side of Sycamore Street and Thornton Avenue.

C. The ACWD Waterline Work and City Project both involve major improvements to u�li�es and other infrastructure within the public right-of-way and within the same general geographic area as shown in Exhibit A, atached hereto.

D. In order to provide for the most efficient and cost-effec�ve implementa�on of the two projects, to minimize disrup�on to the infrastructure improvements in the City Project area and impacts to Newark residents due to traffic and water service outages, the Par�es desire to combine the work into a single project to the extent possible. To this end, the Par�es intend to include the Coopera�ve Agreement – City of Newark and ACWD
Newark Old Town Streetscape and Main Renewal 2 of 13 5/23/2024 ACWD Waterline Work into the City Project, the combined project being referred to herein as the "Joint Project."
E. It is the intent of the City to administer the Joint Project. It is the intent of ACWD to support City's implementa�on of the Joint Project and to reimburse the City's reasonable costs of the ACWD Waterline Work.

F. The inclusion of the ACWD Waterline Work into the Joint Project will require coordina�on between the City and ACWD regarding the acquisi�on of permits, design and design review, construc�on, inspec�on, tes�ng, acceptance, and warran�es for the Joint Project.

G. Beginning in June 2023, the City and ACWD coordinated on the prepara�on of the City's Request for Proposals (RFP) for providing professional design services for the design of the Joint Project.

ACWD reviewed the RFP and provided comments and edits on the scope of the ACWD Waterline Work to be included in the City Project as op�onal design tasks. Accordingly, the City has included op�onal scope items to cover design services for the ACWD Waterline Work in the City Project RFP.

H. The Par�es desire to work coopera�vely and to document a reasonable and responsible basis for the coopera�ve design and construc�on of the Joint Project for the mutual benefit of their agencies and their public cons�tuents.

NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS

AND CONDITIONS IDENTIFIED HEREIN,
THE PARTIES HEREBY AGREE AS FOLLOWS:

1. ADVERTISING AND AWARD OF DESIGN AND ENGINEERING SERVICES IN SUPPORT OF THE JOINT PROJECT.

1.1. The City and ACWD previously coordinated on the development of the RFP for the design and engineering services in support of the Joint Project ("Joint Design") RFP. The City adver�sed the Joint Design RFP, including the design and engineering services related to the ACWD Waterline Work, in accordance with the City's prac�ces and applicable law. Design and engineering services associated with the ACWD Waterline Work were included separately in the RFP as "op�onal" work.

1.2. Upon receipt of proposals for the work, the City share the proposals received, including costs for the ACWD Waterline Work, with ACWD. ACWD reviewed and provided input on the evalua�on and ranking methodology; however, the City retained the sole discre�on to select the method with which proposals were evaluated and ranked. ACWD par�cipated in the evalua�on of the proposals and the City and ACWD conferred regarding the proposals; Coopera�ve Agreement – City of Newark and ACWD
Newark Old Town Streetscape and Main Renewal 3 of 13 5/23/2024 however, the City retained the sole discre�on to select the proposer based on the proposal in accordance with its proposal evalua�on criteria.

1.2.1.Should ACWD conclude that the City's selected proposal does not meet ACWD's needs, then the "op�onal" ACWD Waterline Work will not be awarded by the City, and ACWD shall be responsible for comple�ng the design of the ACWD Waterline Work. In this event, the City and ACWD shall confer as to their collec�ve approach to implementa�on of their individual projects, and this Agreement may be terminated in wri�ng by either Party.

1.2.2.Should ACWD be sa�sfied that the City's selected proposal meets ACWD's needs, ACWD will provide writen confirma�on of its agreement with the City's selec�on. The City will then award the Joint Design work, including design and engineering services in support of the ACWD Waterline Work, to the selected proposer ("Design Consultant") in accordance with its prac�ces and applicable law.

2. COORDINATED DESIGN AND ENGINEERING WORK.

2.1. City's hired Design Consultant shall prepare the design and construc�on contract documents for the ACWD Waterline Work ("Waterline Work Product") to be incorporated into Joint Project, and other requirements pursuant to Sec�ons 3 through 5.

2.2. ACWD agrees to pay one hundred percent (100%) of the costs for design services scope items for ACWD Water Pipeline as shown in Exhibit B, atached hereto.

2.3. All Waterline Work Product shall be and are the property of ACWD who shall be en�tled to access and to copy the Waterline Work Product during the progress of the work. If requested by ACWD, the City shall deliver one copy of the Waterline Work Product remaining in the hands of the City, or in the hands of the Design Consultant, or any subcontractor, upon comple�on or termina�on of the work or Agreement to ACWD. The City assigns to ACWD all right, �tle, and interest in and to the Waterline Work Product, including ownership of copyright in the Waterline Work Product. ACWD may u�lize any material prepared or work performed by the City’s hired Design Consultant pursuant to this Agreement, in any manner which ACWD deems proper without addi�onal compensa�on to the City. The City shall not disclose project related data or informa�on without the prior writen consent of ACWD.

2.4. The Joint Project construc�on contract documents shall include a schedule of “bid items” for which each bidder shall iden�fy a “bid item amount.” The bid items for the ACWD Waterline Work (“ACWD Bid Items”) shall be incorporated in the Joint Project bid and construc�on documents, along with the es�mated quan�ty for each bid item.

Coopera�ve Agreement – City of Newark and ACWD
Newark Old Town Streetscape and Main Renewal 4 of 13 5/23/2024

2.5. All City bid items will be contained in the Base Bid. The ACWD Bid Items shall be included on a separate bid item schedule ( e.g. “Waterline Work”) and shall be characterized as “Alternate Bid Items” in the construc�on contract that may be awarded with the Base Bid items, later by change order, or excluded from the award. For the purposes of bid comparison and determina�on of the lowest responsive and responsible low bid, the Waterline Work bid schedule shall be added to the City bid items.

2.6. ACWD shall review the por�on of the design, construc�on plans, and specifica�ons related to ACWD Waterline Work at ACWD's sole cost and expense.

2.7. City shall provide ACWD 50%, 90%, and 100% design submitals, to include the design drawings and specifica�ons, for any ACWD Waterline Work incorporated into the Joint Project for review.

ACWD shall promptly and diligently review each design submital, and provide comments, if any, to City within twenty-one (21) calendar days of ACWD's receipt of the respec�ve design submital.

2.8. At least thirty-five (35) calendar days prior to the adver�sement of bids, City shall provide ACWD with a complete copy of the 90% design submital for review, including but not limited to, the 90% drawing set, General Condi�ons, Special Condi�ons, Technical Specifica�ons, and payment item schedule, including the ACWD Bid Items. ACWD shall promptly and diligently review the 90% Design Submital for Joint Project, and provide comments, if any, to City within fourteen (14) calendar days of ACWD's receipt of the 90% design submital. City shall reasonably consider ACWD proposed modifica�ons of the 90% design submital. City shall supply within seven (7) calendar days writen explana�on, including reasons why and jus�fica�on for, any ACWD modifica�ons not included. If ACWD believes that its modifica�ons should be included in the Construc�on Contract plans and specifica�ons for Joint Project a�er reasonably considering City's writen explana�on, ACWD and City shall meet and confer in good faith to reach a mutually acceptable solu�on.

2.9. If re-design of ACWD’s work is required due to unforeseen condi�ons, the City’s design consultant is responsible for the re-design. ACWD shall review the revised design and shall provide the City a writen no�ce of approval of the re-design with in seventy-two (72) hours a�er ACWD receives the re-design.

3. ENVIRONMENTAL REVIEW AND PERMITTING.

3.1. City will serve as the lead agency for California Environmental Quality Act (CEQA) and Na�onal Environmental Policy Act (NEPA) for the joint project in accordance with the Federal and State grant requirements. ACWD will be a responsible agency with discre�onary approval authority Coopera�ve Agreement – City of Newark and ACWD
Newark Old Town Streetscape and Main Renewal 5 of 13 5/23/2024 over the project. The City will pay for the environmental review costs associated with the filing of the NEPA and CEQA for the Joint Project.

3.2. City will acquire all environmental, right-of-way and construc�on related permits for the Joint Project that includes ACWD Waterline Work in accordance with the Federal and State grant requirements. No City of Newark encroachment permit fee will be paid by ACWD.

4. BIDDING AND AWARD OF CONSTRUCTION CONTRACT.

4.1. The City shall issue the plans and specifica�ons, including minimum experience requirements for the ACWD Waterline Work, for the Joint Project for public compe��ve bids and award the contract for the Joint Project in accordance with the requirements of the California Public Contract Code, the Newark Municipal Code, and any other applicable laws and regula�ons.

4.2. Concurrently with adver�sing for bids, City shall provide ACWD with a complete copy of the adver�sed contract documents ("Construc�on Contract") for the Joint Project used to invite such bids. City shall include ACWD when issuing any addenda during the bidding period.

4.3. Within seven (7) working days following a bid opening, City shall provide copies of the final bid documents for the three (3) apparent lowest responsible bidders to ACWD for the Joint Project.

4.4. ACWD shall, within Five (5) working days of its receipt of the final bid documents and the City’s selected bid, indicate whether it supports the City proceeding with the award of the ACWD Waterline Work along with the City's award of the Joint Project Construc�on Contract.

4.4.1.Should ACWD conclude that the City's selected bid does not meet ACWD's needs, then the "alternate" ACWD Waterline Work will not be awarded by the City, and ACWD shall be responsible for comple�ng construc�on of the ACWD Waterline Work. In this event, the City and ACWD shall confer as to their collec�ve approach to implementa�on of their individual projects, and this Agreement may be terminated in wri�ng by either Party.

4.4.2.Should ACWD be sa�sfied that the City's selected bid meets ACWD's needs, ACWD will provide writen confirma�on of its agreement with the City's selec�on. The City will then award the Joint Project construc�on work, including construc�on of the ACWD Waterline Work, to the selected bidder ("Contractor") in accordance with its prac�ces and applicable law, and the District will proceed to authorize budgeted funds for construc�on of the ACWD Waterline Work.

Coopera�ve Agreement – City of Newark and ACWD
Newark Old Town Streetscape and Main Renewal 6 of 13 5/23/2024

5. CONSTRUCTION, INSPECTION, CONSTRUCTION MANAGEMENT AND CONSTRUCTION ADMINISTRATION.

5.1. The City shall administer the Construc�on Contract for the Joint Project including the ACWD Waterline Work. ACWD shall support the City's administra�on of the construc�on work.

5.2. ACWD will provide specialty waterline construc�on inspec�on, assist with construc�on management for all components of any ACWD Waterline Work during construc�on, and shall promptly communicate to City pursuant to each rejec�on or acceptance of the quality of materials and construc�on work rela�ng to the ACWD Waterline Work. ACWD shall retain the right to review any RFI related to Waterline Work concurrent with City’s design review, and shall be afforded the opportunity to provide input prior to the City’s response to the Contractor.

ACWD's inspec�on responsibili�es shall include, but not be limited to, inspec�ons of: (a) installa�on of the permanent waterline and all associated appurtenances, (b) waterline connec�ons, (c) pressure and bacterial tes�ng, ( d) backfill of the trench up to one foot over the top of pipe, and (e) final acceptance of ACWD Waterline Work as complete. City shall, in turn, communicate each acceptance or rejec�on of the quality of materials and construc�on work to Contractor. City shall require Contractor to cooperate with ACWD, and ACWD's agents, in inspec�on of all ACWD Waterline Work, provided that: (a) ACWD shall coordinate all inspec�ons with City; (b) all communica�on with Contractor shall be through City's Resident Engineer (except in an emergency situa�on to the extent necessary for the protec�on of persons or property); and (c) when conduc�ng any inspec�ons, ACWD shall not take any ac�ons that unreasonably interfere with Contractor's performance, direct Contractor's performance in the field, or authorize any addi�onal work. ACWD shall have an inspector available to be on-site as needed during Contractor's approved working hours, upon forty-eight (48) hours' no�ce from Contractor. Inspec�on requested by Contractor for work on Saturdays, Sundays, or ACWD Holidays, or nights shall be requested fourteen (14) calendar days in advance of the scheduled work.

5.3. No modifica�ons or connec�ons to the District’s exis�ng sterile water system shall be performed without the presence and direc�on of authorized District staff.

5.4. To the extent ACWD inspec�ons at any stage reveal a failure by Contractor to meet the requirements of the Construc�on Contract and the ACWD Plans, ACWD shall provide a writen explana�on of the basis for the failure. City shall forward all comments provided by ACWD to Contractor, instruct Contractor to take all appropriate ac�ons to correct its work, and shall not accept these components of the ACWD Waterline Work un�l ACWD approves them.

5.5. Both City and ACWD shall maintain all documents related to any ACWD Waterline Work, including all daily logs, inspector notes, tes�ng, and correspondence and each party shall provide copies of all such documents to the other party upon request.

Coopera�ve Agreement – City of Newark and ACWD
Newark Old Town Streetscape and Main Renewal 7 of 13 5/23/2024

5.6. During the course of construc�on of any ACWD Waterline Work, City shall cause its Contractor to allow ACWD to regularly inspect, a�er reasonable no�ce, record ("redline") drawings of any ACWD Waterline Work. City shall supply redline drawings of any ACWD Waterline Work to ACWD upon City's acceptance of the City Project as complete. The redline drawings shall show the loca�on and details of any changes made during construc�on to any ACWD Waterline Work.

The City shall be responsible for the day-to-day inspec�on and approval for all components of the Joint Project, except that ACWD shall be responsible for inspec�ng the ACWD Waterline Work provided that the City shall provide ACWD with at least twenty-four (24) hours prior no�ce of the date that the work is available for inspec�on. ACWD, in its sole discre�on, may have an ACWD inspector present on-site when the ACWD Waterline Work is being performed. If a�er inspec�ng the ACWD Waterline Work, ACWD determines that any of the work does not comply with the drawings and specifica�ons for the ACWD Waterline Work as set forth in the Joint Project contract, ACWD shall provide the City with writen no�ce specifying its basis for such determina�on within seventy two (72) hours a�er ACWD inspects the ACWD Waterline Work. ACWD's failure to �mely no�fy the City of its determina�on of noncompliance of any mater shall be deemed ACWD's acceptance of such mater. The City shall, in turn, forward all comments to the Contractor, instruct the Contractor to take appropriate ac�ons to correct its work, and shall not accept the ACWD Waterline Work un�l ACWD approves in wri�ng, which approval shall not be unreasonably withheld. The City shall require the Contractor to cooperate with ACWD in inspec�on of the ACWD Waterline Work. The �me impact analysis will be used to determine the �me impacts associated with changes caused by the ACWD work. The cost split associated with concurrent delays caused by both par�es work, the cost split shall be propor�onal to each party’s contribu�on to the delay, based on a �me impact analysis.

6. CONSTRUCTION COSTS AND OWNERSHIP ASSOCIATED WITH ACWD WATERLINE WORK AND ADMINISTRATIVE FEE.

6.1. The as-bid construc�on cost for the ACWD Bid Items shall be as iden�fied separately on the bid schedule to be included in the Construc�on Contract ("ACWD As Bid Construc�on Cost"). The as-bid construc�on cost, including labor, material, permit fees, equipment and warran�es for the ACWD Bid Items shall be determined before the Construc�on Contract is awarded by the City. As full considera�on for the sa�sfactory performance by the Contractor, ACWD agrees to pay one hundred percent (100%) of "ACWD As Bid Construc�on Cost" to the City per executed Construc�on Contract payment requirements. The City assigns to ACWD all right, �tle, and interest in and to the ACWD Waterline Work, including beneficial use of work in progress.

6.2. ACWD agrees to pay one hundred percent (100%) of engineering services during construc�on provided by the Design Consultant to support construc�on of the ACWD Waterline Work.

6.3. ACWD agrees to pay an Administra�ve Fee to the City to reimburse the City for administra�on and construc�on management of the ACWD Waterline Work. The Par�es agree that the Coopera�ve Agreement – City of Newark and ACWD
Newark Old Town Streetscape and Main Renewal 8 of 13 5/23/2024 appropriate amount of the Administra�ve Fee is equal to 5% of the total cost of all ACWD Waterline Work payment items as included in the successful Contractor's bid.

6.4. ACWD shall pay the City the Administra�ve Fee as part of the monthly billing as a percentage of construc�on costs atributable to ACWD Waterline Work.

7. ACWD WATERLINE WORK ACTUAL COST, ADDITIONAL ADMINISTRATIVE FEE AND PAYMENT.

7.1. Pursuant to the contract awarded by the City, the Contractor shall be obligated to the City to perform all work required by the Joint Project Contract (including the ACWD Bid Items) and the City shall be obligated to administer the Contract and pay the Contractor for all work performed in accordance with the Joint Project Contract. ACWD agrees to pay to the City the actual cost of the ACWD Waterline Work ("ACWD Waterline Work Actual Cost") plus, an addi�onal amount to reimburse the City for its costs in administering any change orders or claims rela�ng specifically to the ACWD Waterline Work and the City’s incremental cost associated with construc�on management tasks associated with the ACWD Waterline Work, including those tasks performed by a third-party construc�on manager under contract to the City, ("Addi�onal Administra�ve Fee") as further described in this Sec�on.

7.2. The "ACWD Waterline Work Actual Cost" shall equal the dollar amount that the City actually pays the Contractor in accordance with the terms of the City Project Contract for ACWD Bid Items plus the actual construc�on cost of any and all construc�on change orders and claims to the extent that they increased the cost of the ACWD Waterline Work. Thus, the ACWD Waterline Work Actual Cost will include the product of the actual quan��es and the Contractor's bid amount for each ACWD Bid Item plus payments for contract change orders and claims related to the ACWD Waterline Work as further discussed in this Sec�on.

7.3. The "Addi�onal Administra�ve Fee" shall be an amount equal to 5% of the actual cost of any and all change order work and claims actually paid to the Contractor in accordance with Sec�on

7.1 and Sec�on 7.2.

7.4. For the Joint Project construc�on contract, ACWD agrees to pay for the full cost of work for which the District is responsible based on the unit prices and final approved quan��es of the applicable pay items. Within thirty (30) days a�er the award of the Contract, ACWD agrees to deposit with the City ten percent (10%) of the ACWD As Bid Construc�on Cost, which the City will ini�ally use to deduct the monthly ACWD Waterline Work Actual Costs. On a monthly basis, City will furnish to ACWD a statement ("Invoice") of the ACWD Waterline Work Actual Cost which shall include a detailed statement of itemized construc�on costs for the completed and verified ACWD Bid Items plus the ACWD-related por�on of any and all construc�on change orders and claims to the extent that they increased the cost of the ACWD Waterline Work. The Coopera�ve Agreement – City of Newark and ACWD
Newark Old Town Streetscape and Main Renewal 9 of 13 5/23/2024 Invoice shall also itemize any Addi�onal Administra�ve Fee amounts due as determined in accordance with this Sec�on. If requested by ACWD, the City will provide ACWD with copies of the Contractor's invoices for the ACWD Waterline Work. Within fourteen (14) calendar days a�er the receipt of an Invoice from the City, ACWD shall pay the City the monthly ACWD Waterline Work Actual Costs. The City will use the payment from ACWD to replenish the ACWD deposit ini�ally used to pay the invoice. The City shall return to ACWD all unspent funds deposited by ACWD in accordance with this Agreement at the conclusion of the work.

7.5. For the Consultant Design Services, ACWD shall pay to the City the total of the ACWD Waterline Work Design Services Costs. If ACWD disputes any por�on or item of any Invoice, ACWD shall provide writen no�ce of the dispute, with an explana�on of the basis for the dispute no later than 14 calendar days a�er ACWD's receipt of the Invoice. ACWD's failure to provide �mely writen no�ce to the City dispu�ng any por�on or item of an Invoice received by the District shall be deemed an approval by ACWD of all undisputed por�ons or items of ACWD Actual Cost.

ACWD shall pay the por�on of the Invoice that is not in dispute in accordance with this sec�on.

7.6. If ACWD provides the City with a writen no�ce of dispute, the City and ACWD shall nego�ate in good faith to informally resolve any such dispute. If no agreement is reached within 45 calendar days a�er the date City receives ACWD's no�ce of dispute and either party indicates that progress is not being made to resolve the dispute, the par�es shall submit the mater to dispute resolu�on as described in Sec�on 9 of this Agreement.

8. MODIFICATIONS TO ACWD WATERLINE WORK DURING CONSTRUCTION.

8.1. To the extent that the Contractor is en�tled to addi�onal compensa�on under the terms of the City Project Contract for work related to the ACWD Bid Items, the addi�onal compensa�on shall be considered ACWD Actual Cost pursuant to Sec�on 7 of this Agreement.

8.2. All major construc�on change orders or claims affec�ng or increasing the cost of the ACWD Waterline Work shall be submited to ACWD staff for prior review and approval, except in emergency circumstances. A "major" construc�on change order or claim is one which could reasonably be deemed to result in a ten percent (10%) cumula�ve increase in cost of the ACWD Waterline Work, or one which would increase the cost of the ACWD Waterline Work by $50,000 or more. Writen responses of ACWD staff shall be provided to the City within 7 calendar days a�er receipt, unless authorized City and ACWD staff agree in wri�ng that a specific longer period of review �me is necessary for more complex change order proposals or claims. If ACWD disagrees with the proposed change order or a proposed claim approval, ACWD shall include the reasons for its disagreement in its writen responses. If the City project manager does not receive comments from ACWD within the specified �me, he or she shall be deemed to be authorized to use his or her best judgment with regard to ac�ng upon the proposed change Coopera�ve Agreement – City of Newark and ACWD
Newark Old Town Streetscape and Main Renewal 10 of 13 5/23/2024 order or claim. If ACWD submits writen responses in accordance with the schedule indicated in this sec�on, the City shall in good faith consider such responses in ac�ng upon the proposed change order or claim.

8.3. The City may act upon construc�on change orders and claims which are not "major" without consulta�on with ACWD. “Non-major” change orders are those not considered “major” as defined in Sec�on 8.2. However, a�er the aggregate total of change orders or claims exceeds 10% of the cost of the ACWD Waterline Work as set forth in the Contractor's bid, City shall submit to ACWD staff for prior review and approval all subsequent non-major change orders or claims. This prior review and ACWD response shall be pursuant to Sec�on 8.2 except that responses of ACWD staff shall be provided within five (5) working days for non-major change orders.

9. RESOLUTION OF DISPUTES. In the event the Par�es should disagree regarding implementa�on of this Agreement, the Par�es agree to use the following dispute resolu�on procedure.

9.1. At least one individual in a senior management posi�on from each party will meet, in person, and atempt to resolve the dispute informally.

9.2. If the ini�al mee�ng does not resolve the dispute, the City Manager for the City, and the General Manager for ACWD will meet, in person, and atempt to resolve the dispute informally.

9.3. If the mee�ng with the City Manager and General Manager does not resolve the dispute, the mater shall be referred to a media�on with a JAMS representa�ve with JAMS' fees to be split equally between the City and ACWD.

9.4. If neither the staff mee�ngs nor the medita�on results in resolu�on of the dispute, the Par�es shall have the right to exercise any of its remedies available under law.

10. GENERAL PROVISIONS.

10.1. RELATIONSHIP BETWEEN THE PARTIES. This Agreement does not create any partnership or agency between the par�es.

10.1.1. ACWD is, and at all �mes shall remain, solely responsible for all acts of its officials, employees, agents, and contractors, including any negligent acts or omissions. ACWD is not the City's agent and shall have no authority to act on behalf of the City, or to bind the City to any obliga�on whatsoever.

Coopera�ve Agreement – City of Newark and ACWD
Newark Old Town Streetscape and Main Renewal 11 of 13 5/23/2024

10.1.2. The City is, and at all �mes shall remain, solely responsible for all acts of its officials, employees, agents, and contractors, including any negligent acts or omissions. The City is not the ACWD's agent and shall have no authority to act on behalf of ACWD, or to bind ACWD to any obliga�on whatsoever.

10.2. AUTHORIZED REPRESENTATIVES.

10.2.1. All ACWD services under this Agreement shall be performed by, or under the direct supervision of, ACWD's Authorized Representa�ve, Rekha Ippagunta, Project Engineering Manager, unless otherwise designated in wri�ng by ACWD's Authorized Representa�ve or the General Manager.

10.2.2. All City services under this Agreement shall be performed by, or under the direct supervision of, the City's Authorized Representa�ve, Diana Cangco, Ac�ng City Engineer, unless otherwise designated in wri�ng by the City's Authorized Representa�ve or the City Manager.

10.3. INDEMNIFICATION.

Pursuant to Government Code sec�on 895.4, City shall indemnify, hold harmless, and defend ACWD (including its elected officials, officers, agents, and employees) from and against any and all claim (including all li�ga�on, demands, damages, liabili�es, costs, and expenses, and including court costs and atorney's fees) resul�ng or arising from the City's negligent acts or omissions in the performance of contract administra�on under this Agreement.

In addi�on, City will require its design and engineering consultant(s) and construc�on Contractor to indemnify, hold harmless, and defend ACWD and its officials, officers, agents, and employees and to include ACWD and its officials, officers, agents, and employees as addi�onal insureds to the same extent that the City requires its design and engineering consultants and construc�on Contractor to indemnify, hold harmless, and defend the City and to include the City as an addi�onal insured.

10.3.1. Pursuant to Government Code sec�on 895.4, ACWD shall indemnify, hold harmless, and defend the City (including its elected officials, officers, agents and employees) from and against any and all claims (including all li�ga�on, demands, damages, liabili�es, costs, and expenses, and including court costs and atorney's fees) resul�ng or arising from the standard specifica�ons provided by ACWD for the ACWD Waterline Work or ACWD's negligent performance or failure to perform, under this Agreement.

Coopera�ve Agreement – City of Newark and ACWD
Newark Old Town Streetscape and Main Renewal 12 of 13 5/23/2024

10.4. TERM OF THE AGREEMENT. The term of this Agreement shall commence on the date last signed by the par�es, below, and shall con�nue un�l comple�on of all the obliga�ons of the par�es under this Agreement.

10.5. ACCOUNTING RECORDS. The par�es shall maintain all accoun�ng records related to this Agreement in accordance with generally accepted accoun�ng principles and state law requirements, and in no event for less than four years. The par�es' accoun�ng records shall include, at a minimum, all documents which support the costs and expenses related to the ACWD Waterline Work for this Agreement, including personnel, contractors, invoices and payments, and reimbursable expenses. Each party's accoun�ng records shall be made available to the other party within a reasonable �me a�er request, during normal business hours.

10.6. NOTICES. All no�ces required or contemplated by this Agreement shall be in wri�ng and shall be delivered to the respec�ve party as set forth in this sec�on. Communica�ons shall be deemed to be effec�ve upon the first to occur of: (a) actual receipt by a party's Authorized Representa�ve, or (b) actual receipt at the address designated below, or (c) three working days following deposit in the United States Mail of registered or cer�fied mail sent to the address designated below. The Authorized Representa�ve of either party may modify their respec�ve contact informa�on iden�fied in this sec�on by providing no�ce to the other party.

To: City
Atn: Public Works Director
City of Newark
37101 Newark Boulevard
Newark, CA 94560
To: ACWD
Atn: Director of Engineering and
Technology
Alameda County Water District
P.O. Box 5110
Fremont, CA 94537-5110

10.7. HEADINGS. The heading �tles for each paragraph of this Agreement are included only as a guide to the contents and are not to be considered as controlling, enlarging, or restric�ng the interpreta�on of the Agreement.

10.8. SEVERABILITY. If any term of this Agreement (including any phrase, provision, covenant, or condi�on) is held by a court of competent jurisdic�on 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 frustra�on of the par�es' intent under this Agreement.

10.9. GOVERNING LAW, JURISDICTION, AND VENUE. The interpreta�on, 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 Coopera�ve Agreement – City of Newark and ACWD
Newark Old Town Streetscape and Main Renewal 13 of 13 5/23/2024 Agreement shall be filed and heard in a court of competent jurisdic�on in the County of Alameda.

10.10. ASSIGNMENT AND DELEGATION. This Agreement, nor any por�on thereof, shall not be assigned or transferred, nor shall any of a Party's du�es be delegated, without the writen consent of the other Party. Any atempt to assign or delegate this Agreement without the writen consent of the other Party shall be void and of no force or effect. A consent by a party to one assignment shall not be deemed to be a consent to any subsequent assignment.

10.11. MODIFICATIONS. This Agreement may not be modified orally or in any manner other than by an agreement in wri�ng signed by both par�es.

10.12. WAIVERS. Waiver of a breach or default under this Agreement shall not cons�tute a con�nuing waiver or a waiver of a subsequent breach of the same or any other provision of this Agreement.

10.13. ENTIRE AGREEMENT. This Agreement, including all documents incorporated herein by reference, comprises the en�re integrated understanding between the par�es concerning the maters described herein. This Agreement supersedes all prior nego�a�ons, Agreements, and understandings regarding this mater, whether writen 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.

10.14. EACH PARTY'S ROLE IN DRAFTING THE AGREEMENT. Each party to this Agreement has had an opportunity to review the Agreement, confer with legal counsel regarding the meaning of the Agreement, and nego�ate revisions to the Agreement. Accordingly, neither party shall rely upon Civil Code sec�on 1654 in order to interpret any uncertainty in the meaning of the Agreement.

10.15. COUNTERPART SIGNATURES. The par�es hereto recognize and agree that separate counterpart signature pages may be used but that all such pages cons�tute one and the same Agreement.

10.16. SIGNATURES. The individuals execu�ng 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 respec�ve legal en��es of the ACWD and the City. This Agreement shall inure to the benefit of and be binding upon the par�es hereto and their respec�ve successors and assigns.

IN WITNESS WHEREOF, the City and ACWD do hereby agree to the full performance of the terms set forth herein.

Coopera�ve Agreement – City of Newark and ACWD
Newark Old Town Streetscape and Main Renewal 14 of 13 5/23/2024 City of Newark Alameda County Water District
By: ______________________________ By: ____________________________________ David Benoun Ed Stevenson
Title: City Manager Title: General Manager
Date: ____________________________ Date: __________________________________

EXHIBIT A
Old Town Streetscape Project Site Area

EXHIBIT B
ACWD Design Scope Costs
Billable Rate ($/ hour)
Task 1 Preliminary Engineering

1.1 Project Kickoff
Outreach Plan and Setup 12 $2,720
Project Construction Budget 0 $0
QA/QC Plan 12 $3,040

1.2 Data Collection and Field Review 12 $2,460

1.3 Existing Conditions Mapping 0 $0

1.4 Subsurface Conditions Assessment 0 $0

1.5 General Order 88B 0 $0

1.6 Preliminary Design
35% Streetscape 0 $0
30% Waterline 56 $12,500

1.7 Public Utilities
Preliminary Notice 0 $0
65 and 95% Coordination 0 $0
New Utility Services 0 $0

1.8 Outreach 0 $0
Electronic Updates 0 $0
Community Meeting 1 0 $0
Community Meeting 2 0 $0
Public Arts 0 $0
City Council 0 $0

1.9 Contract Management
Project Management 8 $2,200
Quality Control 12 $3,040
Meetings 8 $1,940
120 $27,900
Task 2 Construction Documents

2.1 Streetscape Plans, Specifications and Estimate
50% PS&E 0 $0
90% PS&E 0 $0
100% PS&E 0 $0

2.2 ACWD Plans, Specifications and Estimate
50% PS&E 70 $15,700
90% PS&E 60 $13,600
100% PS&E 52 $11,400

2.3 Grant Funding 0 $0

2.4 Local Assistance Support 0 $0

2.5 Outreach 0 $0
Electronic Updates 0 $0
Public Arts 0 $0
City Council 0 $0

2.6 Final Plans 0 $0

2.7 Contract Management
Project Management 8 $2,200
Quality Control 24 $6,080
Meetings 16 $3,880
230 $52,860
Task 3 Bidding and Construction

3.1 Bidding Support 8 $1,680

3.2 Contract Management 0 $0
8 $1,680
Total Labor Expenses: 358 $82,440
Reimbursable Expenses
General Expenses
$0
$82,440
Total Reimbursable Expenses:

Total Subconsultant Fee:
132 138 88
Task 3 Bidding and Construction Subtotal: 080
8 16 8
Task 2 Construction Documents Subtotal: 84 86 60
88 8
no cost
12 20 20
20 20 20
20 30 20
84 Task 1 Preliminary Engineering Subtotal: 48 44 28
44 8
16 20 20
84 84
444
275.00 210.00 195.00 Glen Anderson Principal-in-Charge Brett Crews Project Engineer Varies Engineer Total Fee Proposal

FEE PROPOSAL
Submittal Date: 08.07.23
Old Town Streetscape Improvements Schaaf and Wheeler
Water Pipeline
Total Hours
DocuSign Envelope ID: 0CEC176C-A20B-4D96-A52C-5172AF901241 Item D. 16.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Roya Gonzalez, Senior Management Analyst
SUBJECT Adopt a resolution authorizing the City Manager to execute a Contractual Services Agreement with Cumming Management
Group, Inc., for Construction Management Services for Newark Resource Center, Project 1360
SUMMARY AND RECOMMENDATION
The City of Newark utilizes outside consultants to perform construction management services for various projects. The Newark Resource Center renovation project involves remodeling of an existing building and related on and off-site improvements to meet the needs of the City’s first resource center.

A competitive Request for Proposal (RFP) for Construction Management Services was released. Based on staff's evaluation of the five (5) RFP responses received, Cumming Management Group, Inc. was determined to be the firm who will provide the best overall service to the City. Staff recommends that the City Council, by resolution, authorize the City Manager to enter into a Contractual Services Agreement, in a form approved by the City Attorney, with Cumming Management Group, Inc. in an amount not to exceed $149,189 for Construction Management Services related to the Newark Resource Center renovation project.

BACKGROUND
The City’s first resource center will serve as an entry point for social services in the Newark community. Planned use includes hosting contract services with various health and social service providers and, when not in use by City programs, will be made available for local non-profit organizations.

In June 2023, the City contracted with KPA Group to provide architectural and engineering services and develop final construction documents for the Newark Resource Center, Project 1360, that will allow the City to advertise the project for bid.

The design phase is now complete, and the project is expected to be advertised for bid in late summer 2024.

The Newark Resource Center, Project 1360 involves renovating an existing building and site improvements, including bathroom renovations, minor roof repairs, interior ADA upgrades, landscaping in both front and back areas, playground equipment installation, additional parking pavement construction, and security lighting enhancements, among other improvements to meet the resource center's programming needs.

DISCUSSION/ANALYSIS
In May 2024, staff released a Request for Proposal (RFP) in accordance with the City’s Purchasing Rules and Regulations for Construction Management Services. The RFP specified firm(s) selection would be made based on the proposed cost for services, qualification and experience of the firm and assigned staff, the firm's understanding of the City’s desires and its general approach to completing the work.

In response to the RFP, staff received a total of five (5) responses by June 5, 2024, from the following firms:

Consolidated CM Inc.

CSG Consultants, Inc.

Cumming Management Group, Inc.

Epicus Group LLC
Wilsey Ham
Responses from each of the firms were evaluated based on the selection criteria listed in the RFP, and the following three (3) firms were invited to interview with staff:

Cumming Management Group, Inc.

Epicus Group LLC
Wilsey Ham
After the interviews, staff determined Cumming Management Group, Inc. would provide the best value to the City. Cumming Management Group, Inc. has a proven track record, providing similar services to other local municipalities, including the cities of Los Altos, Palo Alto, and Union City. Although their proposal was the second lowest cost, at less than $1,500 more than the lowest proposal, their extensive experience and thorough approach to construction management make them the best choice. The benefit of their expertise and approach outweighs the small cost difference.

Staff is therefore recommending the selection of Cumming Management Group, Inc. to provide construction management services.

Construction Management Services for the Newark Resource Center Project will include a comprehensive range of tasks to ensure the successful execution of the project. These services include, but are not limited to, the following key activities; Perform a constructability review: Identify potential construction issues and propose solutions to mitigate risks prior to advertising the project for bid.

Provide assistance in evaluating bids from contractors: Ensure bids meet project requirements through thorough evaluation.

Coordinate and chair pre-construction and ongoing construction-phase meetings:

Facilitate effective communication and coordination among all stakeholders.

Review of Contractor's work for compliance: Ensure adherence with contract documents, and compliance with environmental, Federal, State, and local laws and regulations.

Construction management services will be critical to ensure the Newark Resource Center Project is completed successfully.

FISCAL IMPACT
The 2022-2024 Biennial Budget and Capital Improvement Plan contains sufficient funding for this scope of work through a combination of Capital Projects Fund (Fund 610), and both State and Federal Grants. No budget modifications are necessary at this time. Should project funding be insufficient for future services, budget approval will be sought on a task order basis prior to staff authorization.

REVIEW AND APPROVAL
Prepared by - Roya Gonzalez, Senior Management Analyst
Brett Oeverndiek, Management Analyst II
Reviewed by - Lenka Hovorka, Assistant City Manager
Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - Lenka Hovorka, Assistant City Manager
Attachments
Resolution - Cumming Group
Agreement - Cumming Group
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AUTHORIZING THE CITY MANAGER TO

EXECUTE A CONTRACTUAL SERVICES AGREEMENT
WITH CUMMING GROUP, INC. FOR CONSTRUCTION

MANAGEMENT SERVICES FOR THE NEWARK RESOURCE
CENTER, PROJECT 1360
WHEREAS, City staff issued a Request for Proposals (RFP) for construction management services for the Newark Resource Center Project, in accordance with the City’s Purchasing and Regulations; and
WHEREAS, a total of five proposals were received; and
WHEREAS, all proposals received were evaluated by City staff based on the criteria listed in the RFP including proposed cost for services, qualification and experience of firm and assigned staff, the firm’s understanding of the scope of work and the general approach to completing the work; and
WHEREAS, based on staff’s evaluation, three firms were invited to participate in interviews with City staff; and
WHEREAS, following the interviews, Cumming Group, Inc. was determined to be the most qualified firm to provide the requested services for the Newark Resource Center Project.

NOW THEREFORE, BE IT RESOLVED that the City Council of the City of Newark herby authorizes the City Manager to execute the Contractual Services Agreement in a form approved by the City Attorney, with Cumming Group, Inc. in an amount not to exceed $149,189 plus a 10% contingency of $14,919, totaling $164,108 for construction management services for the Newark Resource Center, Project 1360.

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CONTRACTUAL SERVICES AGREEMENT

CONSULTANTS
This Service Agreement (hereinafter “Agreement”) is made and entered into this 27TH day of JUNE by and between the CITY OF NEWARK, a municipal corporation (“City”), and CUMMING MANAGEMENT GROUP, INC., (“Consultant”), collectively the “Parties”.

W I T N E S S E T H:

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

CONSTRUCTION MANAGEMENT SERVICES
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.

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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 $149,189.00 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.

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).

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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.

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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.

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12. RESERVED.

13. RESERVED.

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.

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.

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
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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 CSA 8/2019 -7-
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 CSA 8/2019 -8-
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.

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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.

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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 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:

CITY OF NEWARK
Bob Olson ROYA GONZALEZ
Consultant Administrator
Address: 201 Moffett Blvd.

Mountain View, CA 94043
City of Newark
Attn: Roya Gonzalez
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.

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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.

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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement the day and year first hereinabove written.

CITY OF NEWARK,
a municipal corporation
CITY OF NEWARK, a municipal corporation CONSULTANT
____________________________ ____________________________ By: David Benoun By: Bob Olson
Title: City Manager Title: Sr. Vice President
Date: ____________________________ Date: ____________________________ ATTEST:
____________________________
By: Sheila Harrington
Title: City Clerk
Date: ____________________________
APPROVED AS TO FORM:
____________________________
By: Kristopher Kokotaylo
Title: City Attorney
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EXHIBIT A

SCOPE OF SERVICES
This Scope of Services, Exhibit “A,” is hereby incorporated by reference into the Agreement, under Agreement Paragraph 1.

Phase 1: Pre-construction
Constructability Review and Contractor Bidding Support
Construction contract documents are a binding instrument between an owner and contractor for construction services, and, as such, must be as accurate as possible to protect the interests of both parties. Change orders due to design conflicts and discrepancies in construction documents are costly and ultimately disrupt the construction progress. Good interdisciplinary and Constructability reviews prior to award of construction will realize a reduction in change orders, timesaving, and the ability to deliver the project within budget.

The ideal time to mitigate design conflicts is in the pre-construction phase prior to bid. Constructability reviews are critical to time, cost control, and claims avoidance. Our team will assess the contract documents for clarity, integration of plans and specifications, constructability of details, and absence of ambiguities. Our team members are able to review systems and details, serving as a “second set of eyes” to ensure that the drawings and specifications put out to bid are complete, constructible, and of the highest quality. Our reviews will specifically address issues such as:
• Constructability of construction details
• Lead time for materials and equipment
• Reasonableness of performance of work sequence, interface relationships and periods • Site access, restrictions, staging areas, availability of utilities for construction, and safety plans for pedestrian and vehicular traffic for ongoing operations
• Coordination within and between disciplines relative to the plans and specifications • Assurance that references to statements such as “designed by others” are addressed Our goals in performing Interdisciplinary and Constructability Reviews are:
• A reduction in the amount of change orders
• A reduction in delays caused by change orders
• A reduction in Requests for Information (RFIs)
• A savings in construction administration time and effort • A smoother, non-adversarial relationship between the parties involved • A better construction project at final delivery
Throughout the process, we will periodically review construction documents, plans and specifications to achieve project goals. • Entitlements
• Program / Project Scoping
• Master Schedule Development
• Master Budget Development
• Design Criteria Development
• Consultant Procurement
• Design Management
• Delivery Process Selection
• Program / Project Controls
• Constructability Reviews
• Bid Facilitation
• Sustainability Consulting
• Cash Flow Reporting
• Cost Management
• Quality Assurance /
Quality Control
• Value Engineering
• FF&A Coordination
• Punchlist Facilitation
• Commissioning
• Program / Design Review
• Contract Administration
• Feasibility Studies
• Pay Application Processing
• Change Order Management
• Earned Value Reporting
• Document Control
• Schedule Management
• Environmental Compliance
• Building Assessments
• Cash Flow Analysis
• Risk Analysis &
Management
• Community Outreach
• Labor Compliance
• PLA Administration
• Closeout Reporting
• Document Archiving
• Financial Closeout
• Energy Services

PLANNING DESIGN CONSTRUCTION CLOSE-OUT OPERATIONS
cumming-group.com 22 City of Newark, Newark Resource Center Pre-Bid and Pre-Construction Meetings
Our team will prepare pre-bid and pre-construction agendas, and facilitate pre-bid conferences for each project. Contract Documents will be clarified and bidder inquiries will be addressed at each meeting. Our job is to clearly communicate the work with bidders. All questions resulting from the pre-bid meeting will be recorded and responses will be distributed to bidders.

Bid Phase
Methodology During Bid Phase
The project management professionals that we have proposed are fully trained in construction procurement and possess a detailed working knowledge of public contracting code. After the identification of bidders and release of the solicitation package, Cumming Group conducts project site visits and documents any questions or new data provided. If warranted, we amend the solicitation to include that new information. Our team maintains strict control of the information process during the pre-bid phase to avoid any confusion. One area of focus is on the change order process. We have found that when contractors understand the fairness of the change order and payment process, they generally bid lower because they do not have to put as much management reserve in their bids. Our evaluation process includes an assessment of both the bid and the firm’s ability to successfully perform the contract.

Cumming Group staff are extremely proficient in performing or assisting in the evaluation of cost proposals, and determining the most responsive and responsible bidder.

Phase 2: Construction
Methodology During Construction Phase
Cumming Group first hold a pre-construction meeting where the lines of communication will be delineated and individual responsibilities will be defined. Our team will work closely with your staff to ascertain the constraints that your project will face, to ensure all schedule and safety issues are addressed in the bid package and reviewed at the initial meeting. Typical concerns that must be addressed during construction include construction phasing, maintaining paths of travel around construction zones, scheduling of certain contractor activities that may impact the site, noise and dust control, vehicular access and parking, contractor staging areas, and coordination of utility shut downs, if needed.

We will also work diligently to keep you updated on progress and apprised of forecasted activities. Our team will become familiar with the general conditions and technical sections of the contract specifications and verify that the provisions of the contract are clearly understood and enforced during the construction phase. We will log and track project correspondence, project submittals, requests for information (RFIs) and other project documentation.

All contractor RFIs that require interpretation of plans or specifications will be reviewed with the architect of record. Proposed changes in the work will be evaluated with the architect. Cumming Group will track and monitor all change requests received from the contractor through the City’s document control system. With the architect, we will review the scope of the contractor’s change order proposal to determine if the work is a change from the base contract. If so, we will negotiate an equitable cost with the contractor for recommendation.

Cumming Group representatives will attend and keep minutes of the job site meetings with the contractor and project architect.

Regular agenda items for weekly progress meetings will include contract status for schedule and budget, forecasted construction activities, contractor field issues, owner and site administration concerns; submittal status, change order status, Request for Information status, and planned activities and coordination issues. Our team and architect will discuss any delays or anticipated “We are excited about the opportunity to be part of the City of Newark’s Construction Management team. The City is investing in its future, and we want to be part of the team that delivers safe and welcoming environments for our local residents and community.” — Joe Capps-Jenner
Project Director, Cumming Group
cumming-group.com 23 City of Newark, Newark Resource Center impacts to the contractor’s work where necessary. We will direct the contractors to develop recovery schedules and avoid disruption to ongoing City business.

All of these issues will be tracked within the Owner’s project controls system and reports of action items will be regularly distributed and discussed at project meetings. During the construction phase, we actively manage the site and develop good communications with the field personnel so that we become aware of conflicts as they arise and ensure that timely and concise Requests for Information are issued by the contractor. We support the consulting team by reviewing the site conditions and provide a photo if a site visit is not scheduled to facilitate a prompt response. We also ensure that the design team’s answer is to the point so that the contractor can move forward with a clear understanding and direction if there is a change to the project that has a cost impact.

Contractor Progress Payments
Cumming Group will routinely review the status of completed work prior to contractor payment requests. Using an approved schedule of values submitted by the contractor before the first payment request, we will accompany the contractor’s site representative to verify all completed work under the contract.

The agreed amount of completed work will be reflected on each line item in the schedule of values. This information will be input into an approved progress payment application form generated for signature to the architect, contractor, and owner’s representative.

Our team will review the project payment application and verify the amounts of base contract work and approved change order work included. We will review and sign all payment applications before submitting them for owner approval and payment.

Construction Sequencing
The effective sequencing and scheduling of construction work around existing facilities will begin in the design phase. Known conditions that may influence the contractor’s schedule will be shared with the prospective bidders at the pre-bid walkthroughs and will be further clarified at the pre-construction meeting held with the successful low bidder.

Cumming Group will closely review the contractor’s schedule submittal to make certain that all required sequencing
and milestones are shown. By closely monitoring the
contractor’s progress and work plan, we will be able to make recommendations as needed to adjust sequencing, work, or traffic patterns to minimize disruption to project activities.

Cost and Schedule Control
Cumming Group will regularly evaluate the progress of each construction contract to forecast potential budget and schedule variances. Our cost and schedule reporting will identify Our unwavering commitment is to
transform your goals and vision into
tangible realities, delivering results
that exceed expectations and stand as a
testament to our partnership
cumming-group.com 24 City of Newark, Newark Resource Center problems and proposed solutions, including schedule and cost status, and show the time and cost to complete the contract.

The monthly progress evaluation will compare actual expenditures against budget and as-planned performance against actual performance. The reports will also summarize the preceding month’s developments, plans for the current month, future plans, requests, recommendations, and general comments.

Change Order Management
Our team will develop a proactive approach to change management that starts during the project design phase. We will monitor design changes and scope revisions through construction documents and perform high-level constructability reviews to assist the architect/engineer (A/E) in producing clearly written and complete bid documents.

During construction, we will track A/E timeliness in responding to contractor RFIs and control the scope of A/E responses to prevent them from becoming changes or delay claims. When changes do occur, we will utilize a proscriptive approach for handling, processing, and tracking RFIs to avoid delay disruption and compounding impacts.

We will provide the team with guidelines on collecting and reviewing change order supporting documents such as quantity and cost calculations, inspection and test reports, drawings, and photographs to support your negotiating position. It is imperative that we evaluate the change to determine responsibility and causes, such as unforeseen conditions, client-requested scope changes, or design errors and omissions.

Cumming Group will impose a 45-day maximum turnaround goal for the review and preparation of change orders for the City’s approval. Our project managers will log, track, and monitor all change documents, specifically requests for information (RFIs), requests for clarification (RFCs), contractor change order proposals (COPs), estimates of the work (independent from contractor proposed costs), records of negotiation, change justification reports, and executable change order documents.

Cumming Group provides its services to public agencies
as an owner’s representative; we work collaboratively and transparently with client stakeholders to deliver services that achieve our client’s goals and objectives.
cumming-group.com 25 City of Newark, Newark Resource Center Construction Observation, Testing, and Inspections
During construction, Cumming Group will systematically verify that reviews, certifications, inspections, and tests are being performed. A good quality assurance plan includes documenting all inspections, identifying items that have been satisfactorily inspected, and targeting those requiring corrective action. At the beginning of construction, each inspector will review the contract documents outlining the most important elements to include in the quality control data. From the database, we can develop quality control checklists to manage startup, acceptance, and close-out procedures with all the required inspectors. At weekly meetings, the contractor’s completed activities will be discussed, and their quality control effectiveness measures will be evaluated. Where improvements are needed, the contractors are advised to implement them in time for upcoming activities.

Comprehensive and accurate as-built drawings are essential to the successful close-out of construction projects. Cumming Group believes that regularly updated as-built drawings are achievable when they are required for each payment application. Our team will verify that each contractor keeps its as-built drawings up to date before approving their portion of the work for payment. Any modifications to the contract documents must be posted on eDocs before submittal of any payment requests.

Strong record-keeping and document control management are maintained throughout the project’s progress. These documents are the essential components of a building program because they are a legal and physical record of transactions between members of the construction team. Their efficient, accurate, and organized distribution among all team participants is a necessary communication tool and provides a real-time accounting of the project’s history, which is an invaluable claims defense for our clients.

At the onset of every project, we ensure that there is a clear chain of communication within the project team, which will allow for direction and consensus to be communicated and reached as quickly as possible. Ideally, consensus is reached during the design phase so that plans issued to bid are likely to move forward in construction without any revisions, which have costly time and budget implications. In the event a change is unavoidable due to midstream unanticipated initiative revisions, we can provide the City with an assessment of cost and schedule impacts, along with options and our recommendation to facilitate prompt and timely resolution.

At Cumming Group, we uphold the highest standards of
quality assurance and quality control in every aspect of our construction management approach. Our commitment to
meticulous attention to detail, rigorous inspection protocols, and proactive problem-solving allow every project to meet and exceed industry standards.
cumming-group.com 26 City of Newark, Newark Resource Center Furniture, Fixtures, and Equipment
Cumming Group can assist in FF&E procurement. If the owner chooses, we have the ability and resources to coordinate the development of detailed needs, cost, purchases, installation, and move-in of all furniture, fixtures, and equipment. Using FF&E planning at the beginning of a project assures that the architect has provided space and power for unique equipment, requirements often found in office plans. We bring a current knowledge of piggy-back purchase opportunities and preparation of bid packages for FF&E not available through piggy-back contracts.

Commissioning
Cumming Group will ensure that your maintenance staff receives both appropriate orientation and instruction on new equipment and fixtures and all necessary maintenance manuals. Commissioning proves that the building and its systems work as intended. To accomplish this, our team will conduct a series of field meetings with the City’s maintenance representatives and equipment/fixture manufacturers’ representatives to conduct field training and orientation.

Phase 3: Project Closeout
Methodology After Construction
Our team can assist the architect, engineers, consultants, and all end users in developing project punch lists and verifying completion of all items. In cases where an existing facility is being remodeled, documentation of existing conditions must be performed prior to construction to confirm fairness to all parties and facilitate completion of the punch list work. If the project requires occupancy prior to the completion of minor punch list items, we will coordinate with the contractor to complete the punch list work during times when activities will not be disrupted. The inspector will coordinate with the architect to confirm that the completed punch list work is acceptable. After building occupancy, we can meet with the department heads and other staff as designated by your team to discuss problems experienced with new building systems.

Commitment to Exceeding Expectations
Cumming Group’s approach to managing the team rests on a foundation of effective communication and teamwork. To facilitate this approach, we clearly define the roles and responsibilities of all parties at the start of the project so that everyone has an opportunity to meet expectations. During the design phase, each discipline lead must attend design phase progress meetings, which are typically scheduled on a weekly basis. Representatives are held accountable for assigned action items based on due dates tracked to the overall design phase milestone schedule. Weekly meeting minutes are distributed timely, and follow-up on action items occurs in advance of the next meeting to keep progress on track. We work closely with all consultants to ensure that each team participant is performing according to the expectations of the City and meeting the terms of the contract.

Any consultant responsibility items are tracked for future negotiations to offset proposed costs for additional service requests. Post construction, upon notification by the contractor and certification by the Architect of Substantial Completion, our personnel will conduct inspections with all team members, including City assigned personnel, to ensure satisfactory completion under the terms of the contract. We will coordinate and expedite the correction work by the contractor of punch-list deficiencies and maintain a separate listing of non-contracted scope items that may arise as a result of the walkthrough for the City’s consideration. Any contract scope not completed within the contractual timeline and after giving the appropriate notice will be assigned a value and deducted from the contractor’s final payment so that the work may be completed by others at the City’s option. cumming-group.com 27 City of Newark, Newark Resource Center CSA 8/2019 -14-

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:

Fee Proposal
We are pleased to present our proposed fee to perform the services outlined in the RFP documents. We have thoroughly reviewed the project information, and have based our fee on the following assumptions:

Timeline
Phase 1 Constructability Review, Building Permits, Contractor Bidding August 2024 – October 2024 Phase 2 November 2024 – June 2025: Construction
Phase 3 July 2025: Project Closeout
Level of Effort:

Based on our understanding of the required scope and experience providing similar service for similar projects, we estimate the level of effort will be:

Phase 1:
• Saul - 2 days a week
• Joe - 0.5 days per week
Phase 2 & 3:
• Saul - 1 day a week
• Joe - 0.5 days per week
Saul is currently assigned to projects in very close proximity to the Newark Resource Center and therefore has the flexibility to be available on site as any specific needs arise.

Proposed Fixed Fee:
• Phase 1 - $17,372 x 3 months
• Phase 2 - $10,786 x 8 months
• Phase 3 - $10,786 x 1 month
Our proposed fixed fee is inclusive of typical reimbursables including mileage, printing, business license, etc.

TOTAL PROPOSED FIXED FEE: $149,189
Hourly Rates:

For reference, our monthly 2024 hourly rates. They will increase by 3.5% beginning 1st January annually. This annual increase does not alter our proposed fixed fee.

Team Member Hourly Rate
Project Director, Joe Capps-Jenner $225
Project Manager, Saul Flores $190
On the following page we have shown a more detailed breakout of our fee proposal. cumming-group.com 33 City of Newark, Newark Resource Center

CLOSEOUT

AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN JUL
1 2 3 4 5 6 7 8 9 10 11 12
$ 17,072 $ 17,072 $ 17,072 $ 10,486 $ 10,486 $ 10,486 $ 10,486 $ 10,486 $ 10,486 $ 10,486 $ 10,486 $ 10,486 $ 145,589 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 3,600 TOTAL HOURS $17,372 $17,372 $17,372 $10,786 $10,786 $10,786 $10,786 $10,786 $10,786 $10,786 $10,786 $10,786 $ 149,189 17 17 17 17 17 17 17 17 17 17 17 17
69 69 69 35 35 35 35 35 35 35 35 35
87 87 87 52 52 52 52 52 52 52 52 52
4 4 4 4 4 4 4 4 4 4 4 4
16 16 16 8 8 8 8 8 8 8 8 8
20 20 20 12 12 12 12 12 12 12 12 12
TOTAL
Project Director @ $225 / HR

TOTAL HOURS
Project Manager @ $190 / HR
Project Manager @ $190 / HR
Hours / month
Hours / week
]

PROFESSIONAL FEES
Project Director @ $225 / HR

PERMITTING / BIDDING CONSTRUCTION
2024 2025
TOTAL
Project Management
Fixed General Requirements
Cost Proposal
cumming-group.com 34 City of Newark, Newark Resource Center CSA 8/2019 -15-

EXHIBIT C

QUALIFICATIONS
These Consultant Qualifications, Exhibit “C,” are incorporated by reference into the Agreement, under Agreement Paragraph 6.

About Us
2,000+

TEAM MEMBERS WORLDWIDE
50+

OFFICES WORLDWIDE
28 YEARS IN BUSINESS
$300+

BILLION IN COMPLETED PROJECTS
#
14 RANKING ON ENGINEERING
NEWS-RECORD (ENR) TOP 100 PM/CM LIST
Cumming Group is an international project management and cost consultancy with deep industry knowledge and unrivaled expertise delivering successful outcomes to clients worldwide. The company has continuously achieved industry leading growth, and today operates as the largest pure play project consulting firm in North America, and with a rapidly expanding presence across Europe.

At Cumming Group, we are passionate about helping our clients execute large-scale, complex projects on-time and within budget. Our project and cost management services are specifically tailored to each client’s needs and add meaningful value at every step of a project’s development.

Drawing on deep expertise in the communities and sectors we serve, we anticipate and solve problems, deliver solutions, and drive results. Since opening our doors in 1996, Cumming Group has grown to 50+ offices globally, and is now home to more than 2,000 team members – including many of the brightest minds in the industry.

We have a strong Bay Area presence with decades of experience working on key projects with multiple municipalities throughout the area. We have offices in Mountain View, San Francisco, Oakland, San Jose, and Concord and we are ready to service any of the Bay Area cities and counties with our local teams.

Team Organizational Structure
Team Organization
Cumming Group has meticulously curated a team of seasoned professionals poised to deliver exemplary construction management services tailored to the needs of the City. Our proposed team members bring extensive similar project experience. Working closely with your staff, our team is prepared to address the full range of construction management services required to successfully deliver the Resource Center Renovation project. Each team member brings comprehensive construction management experience, including cost estimating, scheduling, project controls, and constructability reviews. Additionally, we are fully equipped to provide the services needed by the City. Therefore, Cumming Group does not anticipate the need to augment our team with specialized services from any outside subconsultants.

We view this project to be a truly collaborative effort where all team members complement one another based upon their specific skill sets, individual professional backgrounds, and deep understanding of the key decisions that must be made immediately.

Our team will lead by providing a flexible, efficient, effective approach while also representing the City and delivering on what the project needs to be completed successfully.

Staffing
Joe Capps-Jenner will be the project lead and contact for the City. Joe brings a variety of talents to the Cumming Group team with his diverse background. Joe specializes in working collaboratively with clients and architects to offer value-added, cost-reducing alternatives while maintaining the highest degree of quality in a project. Joe recently completed the County of Marin’s Progress Foundation project, which is a residential treatment center in San Rafael built to serve the community’s most vulnerable residents.

He also managed the build of the new Los Altos Community Center, a 25,000-sq.-ft. sustainable community facility with dedicated space for senior, teen, and kindergarten preparation programs, a commercial kitchen, bocce ball courts, and a café. Joe recently led a $180-Million multi-phased development for the City of Palo Alto. Additionally, he is leading several capital improvement projects for the city of Union City.

Saul Flores will be the day-to-day Project Manager for all project activities. Saul is a seasoned project manager with multiple public and private projects to his credit. Saul will confirm that construction activities adhere to quality standards, safety protocols, and schedules. He will also collaborate with client, stakeholders, communicate updates, mitigate risks, and oversee the entire project lifecycle to deliver successful outcomes within set timelines and budgets of the City.

Saul Flores
Project Manager
Joe Capps-Jenner
Project Director
cumming-group.com 16 City of Newark, Newark Resource Center cumming-group.com 1 Joe Capps-Jenner

EDUCATION
• Bachelor of Science, Project
Management for Construction,
University of Brighton (UK)

CONTACT
Phone: 415-720-1462
Email: joe.cappsjenner@cumminggroup.com
Joe Capps-Jenner
Project Director
Joe has broad experience working on community-focused public programs. He is a dedicated, proactive, and versatile project director with experience in tenant improvement and ground-up construction projects. Joe consistently brings the necessary leadership qualities to drive projects to achieve objectives while maintaining a collaborative approach. This is achieved through the application of meticulous planning, methodical implementation, accurate reporting, and a philosophy of continuous improvement.

REPRESENTATIVE EXPERIENCE
City of Palo Alto, Public Safety Building, Palo Alto, CA This multi-phased new Public Safety Facility in Palo Alto houses police, emergency operations, fire administration and a state-of-the-art 911 dispatch center. The new facility meets Essential Services Building and Seismic Safety Act requirements. Joe led this project from the early design stages; navigating the CEQA process, design development, permitting, bidding and construction. Joe has managed all facets of this large and complex development and has fully integrated with the City of Palo Alto, representing their interests at each stage. Throughout the project, Joe has supported the city’s extensive public outreach efforts. Cost: $100 Million County of Marin, Fire Dispatch Center, San Rafael, CA
This essential services project involves the interior remodel of approximately 16,300- sq.-ft. of existing tenant space located in an existing office building. The work includes demolition of the existing interiors and construction of a new 911 fire dispatch center as well as supporting offices, sleeping quarters, conference rooms and break area.

The building contains existing critical essential service functions for the Office of Emergency Management and the Marin County Sheriff’s Office. Continuity of these existing services must be maintained at all time during the duration of construction.

Responsible for managing the design, permitting, bidding and construction phases.

City of Union City, Multiple Capital Improvement Projects Led design, bidding, permitting, and construction for twelve small capital improvement projects. Project included Fire Station 31 and Fire Station 32 exhaust systems, atrium garden improvements, historical museum repairs and interiors, police department/city hall generator repairs/upgrades. Cost: $1.5 Million County of Marin, Progress Foundation, San Rafael, CA
This new adult residential treatment facility in San Rafael is the first licensed treatment center of its kind in Marin. It provides up to 16 beds for ambulatory adults who have serious and persistent mental health disorders. This project was completed under budget in Q4 2022. Cost: $8 Million
City of Los Altos Community Center, Los Altos, CA
Completed in late 2021, on time and on budget, the new 24,500-sq.-ft. sustainable (Net Zero Energy) Community Center is an all-electric, LEED Gold equivalent facility cumming-group.com 17 City of Newark, Newark Resource Center cumming-group.com 2 Joe Capps-Jenner
with thermally efficient rainscreen system and PV roof. The site includes a new playground, parking, a bocce ball court, extensive landscaping, and stormwater bioretention treatment areas. The program includes a Community Room capable of banquet seating for 180, spaces for seniors, teens, art, movement and three multipurpose rooms, as well as administrative offices for parks and recreation staff. A catering kitchen serves the community room. Joe led the project through constructability review, bidding, construction and closeout. Cost: $38 Million City of Palo Alto, California Avenue Parking Garage
Construction manager for the new $40 Million California Avenue Parking Garage in Palo Alto consisting of 630 stalls spread across six levels and 213,800 sf. As the lead project manager on the project, responsibilities included establishing and tracking the project budget and schedule, consultant procurement, design management, and construction management. Joe led the GC selection effort, including pre-qualification and public bidding stage in accordance with applicable public contracting codes, managing the permitting and bidding phases, and construction management.

La Terra Fina, Food Manufacturing Facility, Union City
This project is comprised of the expansion of La Terra Fina’s existing food manufacturing facility located in Union City. Joe led the team through the design and construction stages, with involved meticulous planning to ensure all work was completed without disruption to the ongoing operation of the facility. Cost: $60 Million
cumming-group.com 18 City of Newark, Newark Resource Center cumming-group.com 1 Saul Flores

EDUCATION
• Bachelor of Science, Construction
Management, Arizona State
University, Tempe, AZ

LANGUAGES
• Spanish

YEARS OF EXPERIENCE
• 16 Years

CONTACT
Phone: 650-862-3131
Email: [email protected]
Saul Flores
Project Manager
With over 16 years in construction management, Saul brings a high level of expertise to each project. Saul has worked on executive office buildings, government office buildings, universities, casinos, restaurants, and tenant improvements. Saul uses his experience in quality control, coordination, scheduling, and contract management to deliver high-quality facilities.

REPRESENTATIVE EXPERIENCE
City of Union City, Multiple Capital Improvement Projects Led design, bidding, permitting, and construction for twelve small capital improvement projects. Project included Fire Station 31 and Fire Station 32 exhaust systems, atrium garden improvements, historical museum repairs and interiors, police department/city hall generator repairs/upgrades. Cost: $1.5 Million City of Los Altos, Los Altos Community Center
Project Manager for the construction of this project that consists of a new one-story 24,500-sq.-ft. community center. The project also includes new parking lot, landscaping, hardscapes, and pedestrian pathways that connect the new building to the existing surrounding recreational facilities and the existing History Museum and Library. Cost: $38.3 Million
Peninsula Healthcare District, Trousdale Assisted Living Facility, Burlingame, CA Project lead for the completion of this project that consists of a new six-story, 140,000-sq.-ft. facility. The project also includes 124 apartments, a commercial kitchen, a fitness center, a salon, below-grade parking, and a courtyard. Work directly with the client, the architect, design consultants, the City, the Fire Department and the general contractor to manage daily project challenges. Drove the team to achieve TCO, FF&E installation, punch list completion, final occupancy, and project turnover.

Cost: $75.5 Million
City of Palo Alto, Neighborhood Traffic Safety and Bike Boulevard Phase 1 Project manager for the construction of this project that consist of curb extensions, concrete medians, raised crosswalks, raised intersections, traffic circles and miniroundabouts, asphalt placement and milling, road base repair, removal and replacement of sidewalks, curb ramps, utility upgrades and landscaping.

Cost: $10.7 Million
City of Palo Alto, Quarry Road Transit Center Bicycle and Pedestrian Pathway Connection, Palo Alto, CA
Project consisted of paving, lighting, landscaping, and signage elements. The project is located behind the Palo Alto Transit Center. Cost: $1 Million BioMed Realty, GOP3 Office and Lobby Amenity TI , South San Francisco, CA Led this project that consisted of design of a combined 17,200-sq.-ft. of office tenant improvements in three different floors. The lobby amenity tenant improvement cumming-group.com 19 City of Newark, Newark Resource Center cumming-group.com 2 Saul Flores
project consists of 5,000-sq.-ft. of new tenant improvements and the renovation of the existing main lobby. Worked directly with the client, the architect, consultants, operations stakeholders, and the general contractor to manage each design phase and the daily project challenges. Project is LEED Gold. Cost: $15M Million Amgen, Tenant Improvement, South San Francisco
This life science project consists of 243,000-sq.-ft. of lab and office space in the heart of Bay Area biotech. Worked directly with the tenant, architect, and general contractor to close out the project financially, manage the change order process, and manage Day Two and Day Three changes. The project was delivered on schedule and under budget. The project is LEED Silver and Fitwel Certified. Cost: $146.6 Million Google 1555 PLY, Mountain View, CA
Project lead on this project that consist of design and construction of an existing 34,655-sq.-ft. building. Project includes demolition of the existing interior space, partial demolition of the exterior and site, as well as construction of new tenant improvements to meet the needs of the new user. Work directly with the client, the architect, engineers, stakeholders, utility companies, and general contractor to manage each design phase and the daily project challenges. Cost: Confidential.

Dynavax, Tenant Improvement, Emeryville, CA
Project Manager for the construction of this 75,000-sq.-ft. tenant improvement that included office and lab spaces. Completed daily site walks to monitor construction and oversee quality. Helped the design team and the contractors resolve design and field conflicts. Reviewed weekly and monthly schedule to ensure timely completion of all contractor and consultant activities. Reviewed, managed, analyzed changed orders to ensure timely approval or rejection. Cost: $14.8 Million The Presidio Golf and Concordia Club, Remodel of Historic Building, San Francisco, CA
Remodel of a three story historic building constructed in 1897. The project consisted of lowering the existing basement floor three feet while maintaining tenant use of the ground and second floors. The interior basement walls were extended and strengthened. Interior improvements included health club facility, new concrete floor slab, new elevator, and a Jacuzzi. The ground and second floor entailed some cosmetic renovation and interior design. Site improvements include lowering of finish grades at rear and side yards. Cost: $9.8 Million
Intuit, Marine Way Building, Mountain View, CA
Construction of the off-site improvements, new campus signage, and crosswalks needed to support the new office buildings and parking structures. Coordinated project requirements for the landlord, property managers, the client, the AHJ, and VTA. Cost: $1 Million. The project is LEED Platinum Certified.

Dolby World Headquarters Tenant Improvement, San Francisco, CA This 16-story, 390,000-sq.-ft. world headquarters building included a complete interior demolition and reconstruction, including 114 sound labs, high-end demonstration rooms, a cafeteria, conference center, open and closed workspaces, breakrooms, and a fitness center. Also included the removal of various existing floor plates within the building to create the optimal dimensions for crucial lab functionality. Cost: $190 Million. The project is LEED Gold Certified. cumming-group.com 20 City of Newark, Newark Resource Center Item E. 1.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Carmelisa Lopez, Senior Planner
SUBJECT Public hearing to consider adoption of a resolution approving amendments to the Master Fee Schedule for Fiscal Year 2025 SUMMARY AND RECOMMENDATION
Staff requests that the City's development impact fees be updated in the City’s Master Fee Schedule (MFS) for Fiscal Year 2025. The City’s development impact fees are required to be adjusted on an annual basis based on the Engineering News Record (ENR) Construction Cost Index for San Francisco, California.

Staff recommends that the City Council conduct a public hearing and, by resolution, approve an amendment to the MFS for Fiscal Year 2025 to reflect the updated development impact fees.

BACKGROUND
Staff annually reviews and analyzes rates and charges for providing City services and incorporates these rates into the City’s MFS. In terms of development impact fees, they were approved with language in their respective resolutions that require an annual adjustment based on the ENR Construction Cost Index for San Francisco, California.

The development impact fees provide funding for various projects in the city and are essential to providing services to the community. The following is a brief description of each of the development impact fees being increased as part of this amendment:

Park Impact Fee: This fee provides funding for park land and new improvements.

Public Safety Facilities Impact Fee: This fee provides funding for additional or improved police and fire services for which the need is generated by new development within the city.

Community Service/Facilities Impact Fee: This fee provides funding for additional or improved governmental, social, and cultural facilities for which the need is generated by new development within the city.

Transportation Impact Fee: This fee provides funding for additional or improved traffic signal, operational, and infrastructure improvements for which the need is generated by new development within the city.

Housing Impact Fee: This fee provides funding to increase and improve the supply of housing affordable to households of very low, low, and moderate incomes for which the need is generated by new commercial, residential and industrial development within the city.
development within the city.

DISCUSSION/ANALYSIS
The subject development impact fees were approved through Resolutions 10,184, 10,505, 10,633, 10,634, and 10,635 and are listed in the MFS under the Construction Enterprise Fund Section. These resolutions require the development impact fees to be adjusted annually in accordance with the ENR Construction Cost Index for San Francisco, California.

ENR prepares a monthly national construction cost index as well as monthly construction cost indexes for 20 cities in the United States. The construction cost index for each city is calculated using local average prices for specific construction materials and the national average for union wages for laborers. According to the ENR website, differentials between cities may reflect differences in labor productivity and building codes and the varying quoting bases for lumber and cement.

When reviewing adjustments to the development impact fees, staff uses the Construction Cost Index for San Francisco because it represents the regional market of the San Francisco Bay Area. Staff also uses the Construction Cost Index for the same month (May) of each year for consistent annual reporting.

Table 1 below shows the Construction Cost Index for San Francisco over the past five years. The percentage change is from the month of May of each year. The Construction Cost Index increased from 2020 to 2023. Year 2022 had the largest percentage increase at almost 15%. In comparison, the increase in 2023 was much lower than the previous three years at 1.8%. In May 2024, there was a decrease of

1.1%.

Table 1. San Francisco Construction Cost Index - 2020-2024 Year Percentage Change
2020 +3.9%
2021 +4.7%
2022 +14.2%
2023 +1.8%
2024 -1.1%
Based on the ENR Construction Cost Index for San Francisco for May 2024, the development impact fees must be decreased by 1.1%. The proposed changes are attached to this report as Exhibit A. If approved, the applicable development impact fees will be decreased by 1.1% and will go into effect 60 days after approval.

Staff recommends that the City Council only amend the Construction Enterprise Fund section of the MFS as recommended in Exhibit A. The sections adopted, deleted, or amended by the City Council will then be editorially merged with the unchanged portions of the Master Fee Schedule.
portions of the Master Fee Schedule.

FISCAL IMPACT
The development impact fees collected reflect the cost of services provided by the City and are placed into the appropriate budget accounts. The fees are collected at the time of building permit issuance. Building permit activity and the proposed decrease in fees may result in less fees collected.

REVIEW AND APPROVAL
Prepared by - Carmelisa Lopez, Senior Planner
Reviewed by - Steven Turner, Community Development Director Reviewed by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - David J. Benoun, City Manager
Attachments
Draft Resolution
Exhibit A - Development Impact Fee Changes
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

NEWARK AMENDING THE MASTER FEE SCHEDULE FOR
FISCAL YEAR 2025
WHEREAS, the City Council of the City of Newark 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, the City Council of the City of Newark has, from time to time, established fees by resolution for services as authorized pursuant to the Newark Municipal Code, most recently on July 27, 2023 by Resolution No. 11,555; and WHEREAS, Resolutions 10,184, 10,505, 10,633, 10,634, and 10,635 require development impact fees to be adjusted on an annual basis based on the Engineering News Record Construction Cost Index for San Francisco, California; and WHEREAS, a public hearing has been noticed and held in accordance with Government Code Sections 6062a, 66016, 66017 and 66018.

NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby amend those portions of the City of Newark Master Fee Schedule as set forth in Exhibit “A,” attached hereto and incorporated herein by this reference and made part hereof as though set forth at length for Fiscal Year 2025.

BE IT FURTHER RESOLVED that the amendments to the City of Newark Master Fee Schedule will not become effective until 60 days after adoption of this Resolution.

City of Newark
Master Fee Schedule – Effective August 26, 2024

EXHIBIT A

SUMMARY OF PROPOSED CHANGES
V. CONSTRUCTION ENTERPRISE FUND
- The proposed adjustments decrease the Park Impact, Capital Facilities, Community Service/Facilities, Transportation, and Housing Impact Fees by 1.1% based on the Engineering News Record Construction Cost Index per Resolutions 10,505, 10,633, 10,634, 10,635 and 10,184, respectively.

Account
No.

Fee
(in dollars)
V.

A.
4995 1.
a. 492/tree
4143 2. Park Impact Fee **
a. Projects without Land Dedicated for Parks
(1) Single-Family 31,130.44
30,788.01/dwelling unit
(2) Multi-Family Units 22,414.32
22,167.76/dwelling unit
b. Projects that Dedicate Land for Parks
(1) Single-Family 9,339.13

9.236.40/dwelling unit
(2) Multi-Family Units 6,599.69
6,527.09/dwelling unit
4144 3.
a. Public Safety 1
(1) Single-family residential 4,298 4,250.72/unit
(2) Townhome 4,298 4,250.72/unit
(3) Multi-family residential 2,578.59 2,550.23/unit
(4) Office/Commercial .75 .74/square foot
(5) Manufacturing/Research & Development .32/square foot (6) Warehousing/Distribution .62 .61/square foot
b. Community Service/Facilities 1
(1) Single-family residential 2,877.89 2,846.23/unit
(2) Townhome 2,877.89 2,846.23/unit
(3) Multi-family residential 1,439.45 1,423.62/unit
(4) Office/Commercial 1.07 1.06/square foot
(5) Manufacturing/Research & Development .23/square foot (6) Warehousing/Distribution .45/square foot
620.00.000.000
** Established by Resolution No. 10,132 and amended by Resolution 10,505.

The above fees are effective as of August 8, 2016. Resolution 10,505 also requires the fee to be adjusted annually by the Engineering News Record Construction Cost Index, San Francisco, California.

Enterprise Fund
- Cost Center Description
140.60.064.643
621.00.000.000 4144
624.00.000.000
Capital Facilities *

CONSTRUCTION ENTERPRISE FUND

DEVELOPMENT
City Planted (three year maintenance)
Street Trees
City of Newark
37101 Newark Boulevard, Newark, CA 94560-3796
(510) 578-4000
Account
No.

Fee
(in dollars)
Enterprise Fund
- Cost Center Description
A.
4144 c. Transportation 1
(1) Single-family residential 6,193.51 6,125.38/unit
(2) Townhome 3,219.93 3,184.51/unit
(3) Multi-family residential 3,839.90 3,797.66/unit
(4) Office/Commercial 5.49 5.43/square foot
(5) Manufacturing/Research & Development 3.00 2.97/square foot (6) Warehousing/Distribution 6.00 5.93/square foot
4144 4.
a.
(1) First 1,000 sq. ft. floor area/unit** 24.95 24.68/square foot (2) All sq. ft. over 1,000 sq. floor area/unit 10.00 9.89/square foot b. Non-Residential Housing Impact Fee *** (revised annually) (1) Commercial 4.48 4.43/square foot
(2) Industrial .84 .83/square foot
*** Established by Resolution No. 8802. Floor area for a commercial development equals the sum of the horizontal floor areas of the a building measured from the exterior face of exterior walls or from the center line of a wall separating two buildings. Where no walls exist, the floor area is the area covered by the roof excluding two feet on each side of the structure. Outside areas used for sales or display (such as nurseries, building materials, auto sales, etc.) may be considered part of floor area when the community development director determines that the use of the outside area significantly contributes to the employee density of the building.
* Established by Resolution No. 10,184. Floor area for a residential development equals the sum of the horizontal floor areas of a building measured from the exterior face of exterior walls or from the center line of a wall separating two buildings, excluding garages, carports, and common areas. * Established by Resolution No. 8051 and amended by
Resolutions No. 9253, 10,6331
, 10,6341, and 10,6351
DEVELOPMENT, Continued
622.00.000.000
Residential Housing Impact Fee* (revised annually)
** No housing impact fee is charged for the first 200 sq. ft. of floor area for additions to existing dwellings.
623.00.000.000 Housing
City of Newark
37101 Newark Boulevard, Newark, CA 94560-3796
(510) 578-4000
Item E. 2.

DATE 06/27/2024
TO Honorable Mayor and City Council Members
FROM Krysten Lee, Finance Director
SUBJECT Adopt a resolution approving the 2024-2026 Biennial Budget and Capital Improvement Plan
SUMMARY AND RECOMMENDATION
The 2024-2026 Biennial Budget and Capital Improvement Plan outlines the City’s strategic plan objectives for the upcoming two fiscal years, aligning with the City Council’s strategic priorities. On May 23, 2024, a draft 2024-2026 Biennial Budget was presented, and City Council feedback was solicited. All comments and recommended edits have been incorporated into the attached redlined version. Staff recommends that the City Council adopt the 2024-2026 Biennial Budget and Capital Improvement Plan as presented. Following Council approval, staff will prepare a final clean version to be posted on the City’s website and to facilitate post-auditing of paid demands.

BACKGROUND
The 2024-2026 Biennial Budget and Capital Improvement Plan was developed through several dedicated City Council budget work sessions and City Council meetings. •    January 25, 2024: Staff presented an informational item providing a summary of all CIP Improvement projects submitted for consideration.
•    March 14, 2024: Staff presented an overview of the City's budget process, economic trends, financial updates, the five-year forecast, and department priorities. •    May 23, 2024: A draft of the 2024-2026 Biennial Budget was presented to the City Council, and feedback was solicited.
•    June 20, 2024: Staff presented an overview of the FY 2025 and FY 2026 CIP to City Council and sought feedback.

DISCUSSION/ANALYSIS
On May 23, 2024, a draft 2024-2026 Biennial Budget was presented, and City Council feedback was solicited. All comments and recommended edits from the City Council have been incorporated into the attached redlined version of the Council Staff Report.

Any additional Council feedback from tonight will be incorporated into a final clean version of the budget after tonight's approval for adoption.

Specific edits incorporated:

Transmittal Letter:

Added reference to the 253-page community survey and interactive data dashboard available on the City’s website. (page 2)
Department Priorities:

Police Department: Modified language to reference abandoned vehicle and graffiti abatement instead of blight. (page 42)
Community Preservation: Added priorities for developing and implementing a Tobacco Licensing Program and a Multiple Family Housing Inspection Program. (page 44)
Budget Challenges: Expanded on the establishment of the Maintenance Reserve Fund. (page 45)
Five-Year Forecast:

Updated Property Tax revenue to align with actuals. (pages 61, 86, 90) Adjusted personnel expenditures to reflect a 6% increase in City Council compensation. (pages 61, 113)
Updated non-personnel expenditures in Community Development to reflect a more accurate baseline budget. (pages 61, 95, 148, 149)
Updated Fire service costs to align with the five-year projection provided by Alameda County Fire. (pages 61, 94, 143)
Included one additional Maintenance Supervisor in the Personnel Allocation for the Public Works Department to reflect current staffing level (page 106) Economic Development Forecast:

Included a breakdown of homeownership by race and comparison to Alameda County. (page 65)
Clarified that Timber Street Senior Housing one-bedroom units are for very low and extremely low-income seniors. (page 69)
Added a table to include various federal, state, and local funding earmarked for a CIP project. (page 74)
The attached redlined version of the budget reflects all these changes. Upon approval, any additional Council feedback will be incorporated into a final version of the budget, which will be posted on the City’s website for public access.

FISCAL IMPACT
The City’s spending plan for FY 2025 and FY 2026 is detailed in the 2024-2026 Biennial Budget and Capital Improvement Plan for each department and capital project.

The adoption of the 2024-2026 Biennial Budget and Capital Improvement Plan provides for specific amounts allocated for various revenue sources and expenditure appropriations. Subsequent changes to the adopted budget, as a result of unanticipated events, will be presented separately as budget amendments for City Council approval.

REVIEW AND APPROVAL
Prepared by - Krysten Lee, Finance Director
Prepared by - Krysten Lee, Finance Director
Reviewed by - Kristopher J. Kokotaylo, City Attorney
Approved by - Lenka Hovorka, Assistant City Manager
Attachments
Resolution Adoption of 2024-2026 Biennial Budget and Capital Improvement Plan Redlined 2024-2026 Biennial Budget and Capital Improvement Plan RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWARK, ADOPTING THE 2024-2026 BIENNIAL BUDGET

AND CAPITAL IMPROVEMENT PLAN AND PROVIDING FOR

THE POST-AUDITING OF PAID DEMANDS CERTIFIED OR

APPROVED AS CONFORMING TO SUCH APPROVED
BUDGET
WHEREAS, the City Council of the City of Newark desires to establish a 2024-2026 Biennial Budget and Capital Improvement Plan that outlines the City’s strategic plan objectives for the upcoming two fiscal years 2025 and 2026, aligning with the City Council’s strategic priorities; and
WHEREAS, the development of the 2024-2026 Biennial Budget and Capital Improvement Plan (CIP) involved several dedicated City Council budget work sessions and meetings, including:
 January 25, 2024: Staff presented an informational item summarizing all CIP Improvement projects submitted for consideration.
 March 14, 2024: Staff presented an overview of the City's budget process, economic trends, financial updates, the five-year forecast, and department priorities.  May 23, 2024: A draft of the 2024-2026 Biennial Budget was presented to the City Council, and feedback was solicited.
 June 20, 2024: Staff presented an overview of the FY 2025 and FY 2026 CIP to City Council and sought feedback; and
WHEREAS, following the presentations of the draft 2024-2026 Biennial Budget and FY 2025 and FY 2026 Capital Improvement Plan, staff incorporated edits based on the feedback received from the City Council; and
WHEREAS, the City Council has reviewed and considered the Biennial Budget and Capital Improvement Plan and has received input from the public; and WHEREAS, the City’s spending plan for FY 2025 and FY 2026 is detailed in the 2024- 2026 Biennial Budget and Capital Improvement Plan for each department and capital project, providing for specific amounts allocated for various revenue sources and expenditure appropriations; and
WHEREAS, subsequent changes to the adopted budget, as a result of unanticipated events, will be presented separately as budget amendments for City Council approval; and WHEREAS, the City Manager has prepared a balanced budget which provides for organizational adjustments and allocation of resources in a manner which aligns with available resources; and
WHEREAS, the City Council is required to adopt a budget before the Fiscal Year begins on July 1, 2025.

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

Section 1. The City of Newark, California, 2024-2026 Biennial Budget and Capital Improvement Plan for Fiscal Years 2025 and 2026, a copy of which is attached hereto and made a part hereof, and which is designated as Exhibit “A,” is hereby adopted and approved.

Section 2. Pursuant to Sections 37201 and 37202 of the Government Code of the State of California, demands against the City for money or damages shall be audited by the Finance Director and thereafter submitted to this City Council for approval or rejection prior to payment, either separately or in a register of audited demands, and shall have attached thereto an affidavit or certificate of the Finance Director certifying as to the accuracy of the demands and the availability of funds for payment thereof; provided, however, that pursuant to Sections 37207 and 37208 of the California Government Code properly approved and certified payroll warrants need not be audited by this City Council prior to payment when such payrolls are included in the register of audited demands presented to this City Council at the first meeting after delivery of such warrants; and provided further, however, that pursuant to Section 37208 of the Government Code of the State of California, warrants may be drawn and delivered in payment of demands certified or approved by the Finance Director as conforming to the detailed authorized expenditures set forth in that certain document entitled “City of Newark, California, 2024-2026 Biennial Budget and Capital Improvement Plan,” a copy of which is on file in the Office of the City Clerk and which is hereby approved and adopted, even though such demands and warrants have not been audited by this City Council prior to payment, so long as such budgeted paid demands are presented to this City Council for ratification and approval in the register of audited demands presented at the first meeting after delivery of such warrants.

Section 3. Within any specific appropriation set forth in Exhibit A, the “City of Newark, California, 2024-2026 Biennial Budget and Capital Improvement Plan,” sums may be transferred from one activity to another upon approval by the City Manager, and thereafter payments may be made in accordance with the procedures set forth in the preceding Section 2.

Section 4. The Finance Director or designee are hereby authorized to cause to be transferred, at such times as are appropriate, those amounts designed as transfers in the budget, in consideration of the balances of funds affected and the fact of services furnished or expenses incurred.

City of Newark, California
Biennial Budget
& Capital Improvement Plan
2024-2026
i

TABLE OF CONTENTS
Introduction
Transmittal Letter ....................................................................................................................... 1 Public Officials & Leadership ...................................................................................................... 5 City Organization Chart .............................................................................................................. 7 History of City and Community Profile ....................................................................................... 9 Demographics ........................................................................................................................... 12 Mission Statement & Core Values ............................................................................................ 17 Fund Structure .......................................................................................................................... 21 Budget Structure ...................................................................................................................... 26 Basis of Budgeting .................................................................................................................... 29 Budget Timeline and Process ................................................................................................... 31 Financial Policies ....................................................................................................................... 35 GANN Appropriation Limit ....................................................................................................... 37 Budget Overview
Goals and Strategies ................................................................................................................. 39 Department Priorities ............................................................................................................... 42 Budgetary Challenges ............................................................................................................... 45 Economic and Financial Forecast ............................................................................................. 49 Five Year Forecast ..................................................................................................................... 61 Development Forecast ............................................................................................................. 63 Fund Summaries
All Funds Summary ................................................................................................................... 77 General Fund Summary ............................................................................................................ 79 Projected Fund Balances .......................................................................................................... 86 Revenue
Summary of Budgeted Revenues ............................................................................................. 88 ii

TABLE OF CONTENTS
Summary of Revenues – All Funds............................................................................................ 92 Expenditures
Summary of Expenditures - All Funds by Organizational Unit ................................................. 96 Revenue & Expenditure Graphs ............................................................................................. 100 Departments
Authorized Positions .............................................................................................................. 103 Breakdown of Full-Time Equivalents (Temporary Personnel) ................................................ 108 City Manager’s Office, City Attorney’s Office and Emergency Management Services........... 110 Mayor & City Council .............................................................................................................. 115 City Clerk ................................................................................................................................. 116 City Attorney ........................................................................................................................... 117 City Manager’s Office.............................................................................................................. 118 Emergency Services ................................................................................................................ 119 Information Technology Department .................................................................................... 120 Human Resources ................................................................................................................... 123 Finance ................................................................................................................................... 126 Library Support ....................................................................................................................... 129 Economic Development ......................................................................................................... 130 Police Department ................................................................................................................. 131 Fire Services ............................................................................................................................ 142 Community Development ...................................................................................................... 147 Development Cost Center ...................................................................................................... 148 Recreation Cost Center .......................................................................................................... 157 Maintenance Cost Center ....................................................................................................... 169 Internal Service Funds ............................................................................................................ 181 Capital Funds .......................................................................................................................... 192 s
iii

TABLE OF CONTENTS
Debt
Government-wide Debt ............................................................................................................. 199 Capital Improvements
Capital Improvement Plan (CIP) ................................................................................................. 201 Capital Improvement Plan Project Descriptions ........................................................................ 216 Appendix
Glossary ...................................................................................................................................... 293

TRANSMITTAL
Dear Honorable Mayor and City Councilmembers,
We are proud to submit the 2024-2026 Biennial Budget and Capital Improvement Plan (CIP) for your consideration. The 2024-2026 Biennial Budget and CIP provides for a full range of municipal services to our community. These include public safety; construction and maintenance of streets, parks, storm drains, and other infrastructure; recreational activities and human services; environmental protection; planning, zoning, and other community, and economic development activities; emergency preparedness; code enforcement; and administrative services such as human resources, information technology, and finance.

The City has largely recovered from the economic impacts of the pandemic. Property Tax, Sales Tax, Transaction Use Tax (Measure GG), and Utility Users Tax have surpassed or are close to matching pre-pandemic revenue levels. Of the City’s main tax revenues, Transient Occupancy Tax (TOT) and Franchise Fees have yet to return to pre-pandemic levels. Other revenue sources, such as recreation program fees and licenses, permits and fees, and investment income are also trending favorably now four years since the start of the pandemic. Investment earnings are also much more favorable compared to the past two years, reflecting higher interest rates on the City’s investments (current rate is 4.27% for the Local Agency Investment Fund, compared to 0.52% in April 2022 and the current rate for the California Asset Management Program is 5.44% compared to 0.50% in April 2022). In addition, proceeds of $11.8 million from the American Recovery Plan Act provided much needed funding to restore operating budget and positions which were frozen at the onset of the pandemic.

The operating budgets for Fiscal Year (FY) 2025 and FY 2026 reflect cautious optimism as geopolitical and economic factors impact both revenue growth and expenditure growth. While the City’s fiscal condition is stable and has reflected growth in recent fiscal years, inflationary pressures are increasing the City’s costs of providing services. Costs for utilities, contractual work, consultant fees, and public liability insurance have seen steeper increases in costs compared to previous years. Newark must be able to maintain control over local funds - allowing our City to be self-reliant in requiring that our tax dollars be spent for Newark residents.

This budget includes funding the following City priorities as elaborated in the Goals and Strategies section:
• Enhancing Public Safety – Provide a level of public safety services that will protect our community members, property, and community assets.
1 • Cultivating Quality of Life – Provide programs, services, facilities, parks, and open spaces that make the City of Newark a desirable and healthy place to live. • Furthering Community Development – Implement programs and make development decisions that maintain a vibrant and balanced community. • Improving Government Operations – Operate a City government that enables the organization to meet service demands of the community.
• Supporting Educational Efforts – Support, encourage, and offer opportunities and programs that facilitate quality community education.

Specifically, the City has focused on long-term strategic planning efforts, developing or updating strategic plans related to our facilities, parks, public art, transportation, broadband, hazard mitigation, unhoused community, and emergency planning. These plans take inventory of current assets and programs, include results of community-wide outreach efforts, and apply subjectmatter expertise and proven best practices to recommend immediate, short- and long-term actions to meet community needs.

The top City service priorities, as determined by a recent survey, include repairing potholes and the City’s 105 miles of street, maintaining neighborhood police patrols, maintaining fire protection and 911 emergency medical response, upgrading fire stations to ensure rapid response times, upgrading life-saving emergency equipment, improving emergency dispatch for rapid response during an earthquake or major disaster, enhancing parks and recreation programs, and maintaining sports fields and children’s play structures. This 253-page community survey and interactive data dashboard that displays data received from the community survey are available on the City’s website.

In FY 2025, the Capital Improvement Plan will fund 41 total new projects estimated at $12.7 million. Funding through Capital Funds and the Community Development Maintenance Fund will provide for $6.6 million for 33 of these projects that include critical maintenance projects for existing facilities, new vehicle and equipment purchases, operational improvements, and various planning documents that relate to the City’s General Plan. New Gas Tax funding in the amount of $6.1 million in FY 2025, in addition to the ongoing annual street maintenance programs, will support the design and installation of Pedestrian Hybrid Beacon Installations at two key intersections as well as median modifications at the Cherry Street and Mowry Avenue intersection.

In FY 2026, Gas Tax funding is provided in the amount of $4.9 million for six additional ongoing street maintenance projects. For both fiscal years, the Annual Street Asphalt Concrete Overlay Program has been increased from $2 million to $4 million per year. This increase, combined with 2 several larger projects on Thornton Avenue with Federal, State and Regional grant funds, should stabilize and ultimately increase the City’s overall Pavement Condition Index.

Many previously funded projects have been completed or otherwise closed out. However, a backlog of projects remains, especially related to building maintenance and park maintenance/improvement projects. Additional supervisory staffing has been added to the Maintenance Division of Public Works and staff is further recommending that $0.8 million in capital funds be utilized to provide additional contractual project management support to complete these projects.

FY 2025 Proposed Budget Highlights
The Proposed FY 2025 General Fund Operating Budget of $83 million is lower than the FY 2024 Amended Budget of $94.4 million, which includes a $12 million payment for creating the Pension Section 115. Excluding the $12 million payment, the FY 2024 amended budget is $82.4 million and the FY 2025 Budget is slightly higher to account for additional staffing and inflationary increases.

In FY 2025, the City will undergo a branding effort that will engage the community in developing an identity for Newark. Staffing levels have also been increased in FY 2025 compared to FY 2024 to add a Housing Policies and Programs Manager and Assistant Planner to support various Community Development project priorities such as implementation of the Affordable Housing Work Plan and the 2023-2031 Housing Element, economic development program development and implementation, particularly in the Old Town neighborhood, and review and updating of land use plans including NewPark Place Specific Plan and the Four Corners Area Plan. These positions will be filled through a variety of sources, including Housing Impact Fees, Community Development Maintenance Fees, offsets of reduced contractual services, and the general fund.

A Recreation Supervisor has also been added to the FY 2025 budget, funded in part by developerpaid Public Art fees to implement the City’s Public Art Master Plan. This new position will also expand the City’s human services with the anticipated opening of the City’s first community resource center in FY 2025, and address issues related to homelessness and other quality of life concerns.

FY 2026 Proposed Budget Highlights
The Proposed FY 2026 General Fund Operating Budget of $85.4 million reflects an increase of

2.9% over the FY 2025 Adopted Budget, which is largely driven by a projected inflationary increase. Agreements with the City’s three employee bargaining groups expire at the end of FY 2025. Actual negotiated increases to salaries or benefits could contribute to additional increases or decreases if different from budgeted assumptions. Staffing levels remain flat compared to FY 2025 and may be updated based on additional needs or City Council priorities. 3 In Closing
While there are continued unknowns and uncertainties ahead, as a result of geopolitical tensions and inflationary pressures, the 2024-2026 Biennial Budget and CIP offers the City Council, City staff and the community a sense of optimism as we look forward to FY 2025 and FY 2026. This biennial budget reflects the City’s commitment to balancing Council priorities, emerging community needs and organizational resilience while remaining focused on providing exceptional service to the Newark community through balanced conservative fiscal strategies.

Acknowledgments
The preparation of the 2024-2026 Biennial Budget and Capital Improvement Plan is the result of a team effort by City staff. Finance Department staff led an extraordinary effort that began months in advance of producing this final document. Each department is responsible for reviewing service level needs, establishing priorities, and developing a budget plan that aligns with the City’s available resources.

We also want to acknowledge the efforts of the City’s Executive Team for their important role in balancing the needs and interests of our community with conservative budget practices.

Finally, we remain grateful for the insight and direction provided by the City Council during the development of this budget, and we value the spirit of cooperation that exists between the City Council, City staff, and the public whom we all serve.

David J. Benoun Lenka Hovorka Krysten Lee
City Manager Assistant City Manager Finance Director
4 Public Officials & Leadership
City of Newark City Council
Michael K. Hannon
Mayor
Luis L. Freitas
Vice Mayor
Maria “Sucy” Collazo
Council Member
Matthew Jorgens
Council Member
Mike Bucci
Council Member
5 Executive Leadership Team
David Benoun, City Manager
Lenka Hovorka, Assistant City Manager
Kristopher Kokotaylo, City Attorney
Krysten Lee, Finance Director
Jonathan Arguello, Police Chief
Steven Turner, Community Development Director
Cathreene Ingham-Watters, Human Resources Director
Ed Miranda, Information Technology Director
Nicholas Cuevas, Recreation & Community Services Director Soren Fajeau, Public Works Director
William McDonald, Fire Chief (Alameda County Fire Department) Budget Preparation Team
Krysten Lee, Finance Director
Gloria del Rosario, Deputy Finance Director
Michelle Villanueva, Senior Accountant
Ivan Quon, Accountant
Roberto Garcia-Acosta, Accountant
Executive Team and Department Contributors
6 Newark
Residents
City
Council
City
Commissions
Advisory
Committees
Information
Technology
City Manager’s
Office
Fitness &
General
Wellness
Recreation
Services
Silliman Center
Aquatics
Licensed
Childcare
Recreation &
Community
Services
Risk
Management
Employee
Relations
Human
Resources
Accounting &
Budget
Fiscal
Compliance
Animal &
Business
License Admin
Finance Public Works
Economic
Planning
Development
Community
Preservation
General Plan
Update
Community
Development
Field
Operations
Police Support
Services
Police
AP Purchasing
Building
Inspection
Engineering
Maintenance
Environmental
Services
City Manager Assistant City Manager
Senior
Services
Human
Services
City Attorney
Treasury & Debt
Admin
Emergency
Services
City Clerk
7 8
City of Newark History and Community Profile
The City of Newark, California is a family-oriented community nestled along the southeast end of San Francisco Bay. It is located 35 miles south of San Francisco, 25 miles south of Oakland, and 20 miles north of San Jose. With a growing population of over 47,470 residents, the City of Newark offers a small town feel while sitting in the heart of bustling Silicon Valley. The City occupies an area of approximately fourteen square miles.

Past
The City’s roots are 150 years old. By California’s statehood in 1850, landings along the Bay in the vicinity of today’s City of Newark had already began to appear. In 1853, Mayhew’s Landing included warehouses for wheat, hay, and coal. This activity triggered interest in the surrounding area and by 1856 the Mayhew Ranch included 1,500 acres of farmland extending inland to present-day I-880. In the 1870s, a swamp reclamation project was started and an English capitalist bought an interest in the property. The land was eventually bought out by a Scotsman who named the City ‘Newark’, after the castle ‘Newark’ in Port Glasgow, Scotland.

Work started on a railroad through the townsite in 1875. The South Pacific Coast Railroad was not only completed from Dumbarton Point south all the way to Santa Cruz, but the town site was also moved to coincide with the curve on the railroad where the tracks turned south toward San Jose. 9 Eventually, the railroad was extended north from Newark to Alameda, providing direct ferry service to San Francisco.

The completion of the railroad precipitated additional development in Newark. Hotels and stores were soon erected, along with some of the first manufacturing industries. These enterprises joined the production of salt, which had been underway in the Newark area since the 1850’s. Acquisitions and mergers of salt production companies throughout the Bay Area ultimately resulted in the formation of today’s Cargill Salt.

Through the years, residents in Newark have retained a strong sense of independence and community. In 1953, a group representing the chambers of commerce of Centerville, Irvington, Mission San Jose, Niles, Warm Springs, and Newark commissioned a study to incorporate all six communities into one City. However, the Newark Chamber of Commerce began its own movement toward incorporation of just Newark. In September 1955, this effort paid off with the incorporation of Newark as the first new city in Alameda County in 47 years and defeating the effort to incorporate Newark as part of the Fremont metropolis.

Present
Newark has evolved throughout the years from its days enriched in agriculture, manufacturing, and railroad to today’s expansion of high-tech, bio-tech, advanced manufacturing, and the health sciences. Newark represents a diverse, bustling economy at the gateway to some of the world’s affluent markets. Small town values remain, but lower housing and development costs, close proximity to skilled workforce and universities, and a regionally strategic location make Newark a prime site for growth.
10 The City is a general law city and operates under the Council-Manager form of government. Under this form of government, policy-making and legislative authority are vested in a five-member elected City Council consisting of the Mayor and four Council Members. The Mayor and City Council have responsibility for passing ordinances, adopting and amending the operating and capital budgets, appointing various committee members, and hiring both the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances established by the City Council, for overseeing the day-to-day operations of the City, and for appointing the various department heads.

The City provides a full range of municipal services to its community. These include public safety; construction and maintenance of streets, parks, storm drains, and other infrastructure; recreational activities and human services; environmental protection; planning, zoning, and other community, and economic development activities; emergency preparedness; code enforcement; and administrative services such as human resources, information technology, and finance. Fire protection services are contracted from the Alameda County Fire Department.
11 Population Overview

TOTAL POPULATION
47,470 .7%
vs. 2021

GROWTH RANK
321 out of 497
Municipalities in California

DAYTIME POPULATION
45,871
Daytime population represents the effect of persons coming into or leaving a community for work, entertainment, shopping, etc. during the typical workday. An increased daytime population puts greater demand on host community services which directly impacts operational costs. * Data Source: American Community Survey 5-year estimates

POPULATION BY AGE GROUP
Aging affects the needs and lifestyle choices of residents. Municipalities must adjust and plan services accordingly. * Data Source: American Community Survey 5-year estimates * Data Source: U.S. Census Bureau American Community Survey 5-year Data and the 2020, 2010, 2000, and 1990 Decennial Censuses 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2…

37.5k
40k

42.5k
45k

47.5k
50k
<5 5-9 10-14 15-19 20-24 25-34 35-44 45-54 55-59 60-64 65-74 75-84 >85 12 Household Analysis

TOTAL HOUSEHOLDS
14,805 Municipalities must consider the dynamics of household types to plan for and provide services effectively.

Household type also has a general correlation to income levels which affect the municipal tax base. * Data Source: American Community Survey 5-year estimates 29%
higher than state average
Family Households
63%
26%
higher than state average
Married Couples
63%
49%
lower than state average
Singles
12%
49%
lower than state average
Senior Living Alone
7%
13 Economic Analysis
Household income is a key data point in evaluating a community’s wealth and spending power. Pay levels and earnings typically vary by geographic regions and should be looked at in context of the overall cost of living.

HOUSEHOLD INCOME
Above $200,000
37%
107%
higher than state average
Median Income
159,465
74%
higher than state average
Below $25,000
5%
66%
lower than state average
* Data Source: American Community Survey 5-year estimates Over $200,000
$150,000 to $200,000
$125,000 to $150,000
$100,000 to $125,000
$75,000 to $100,000
$50,000 to $75,000
$25,000 to $50,000
Below $25,000
14 Housing Overview
2022 MEDIAN HOME VALUE
$1,034,900
* Data Source: 2022 US Census Bureau (http://www.census.gov/data/developers/data-sets.html), American Community Survey. Home value data includes all types of owner-occupied housing.

HOME VALUE DISTRIBUTION
* Data Source: 2022 US Census Bureau (http://www.census.gov/data/developers/data-sets.html), American Community Survey. Home value data includes all types of owner-occupied housing.

HOME OWNERS VS RENTERS
Newark
31%
Rent
70%
Own
State Avg.
44%
Rent
56%
Own
* Data Source: 2022 US Census Bureau
(http://www.census.gov/data/developers/data-sets.html), American Community Survey. Home value data includes all types of owner-occupied housing.
2009
2010
2011
20122013
2014
2015
2016
2017
2018
2019
2020
2021
2022
400k
600k
800k
1,000k
1,200k
> $1,000,000
$750,000 to $999,999
$500,000 to $749,999
$400,000 to $499,999
$300,000 to $399,999
$250,000 to $299,999
$200,000 to $249,999
$150,000 to $199,999
$100,000 to $149,999
$50,000 to $99,999
< $49,999
15 16
W
I
Mission Statement & Core Values
It is our mission to serve and partner with our community to continually enhance the quality of life of everyone in Newark.

Vision
We see a place where it is safe to live, to play, and to raise children.

We see a place where diverse and energetic people strive to live in harmony.

We see a place that cherishes small town values and also enjoys being progressive.

We see a place where educational programs are available and first-rate.

We see a place where cultural and recreational opportunities are plentiful and spiritually enriching.

We see a place with residents filled with civic pride, social concerns, and community involvement.

We see a place with tree-lined streets and open green parks.

We see a place where the economy is strong and vital and provides jobs.

We see a place where government is stable, accessible, and responsive.

We see a place that is well-planned, well-managed, and well-maintained.

Mission
It is our mission to provide the quality of services that meets the highest expectations of all those whom we serve in Newark.
17 Culture
Newark is a community-driven, customer-focused organization which values fiscal independence, fosters a competitive spirit, and works together as a team to achieve community goals. These comprise our organizational culture.

Community Driven and Customer-Focused
• We are more than a service organization. We strive to provide excellent services by involving the community.
• Our residents are the owners of our corporation. They are our customers and our stakeholders. They are the reason we exist.
• We strive to assure that our efforts are guided by long-term goals rather than by short-term objectives.

Fiscal Independence
• We assure that we have the necessary resources to meet community needs. • We develop resources through aggressive economic development that attracts and retains businesses; this is the lifeline of our community. • We invest and allocate resources wisely to maximize our ability to provide community services.

Competitive Spirit
• We are committed to achieving the vision, mission, and goals of our City. • We set our own standards and expectations that we assertively and creatively are determined to achieve.
• We see our goals as personal and professional challenges towards which we focus our energies.

Team Approach
• We enhance the potential for achievement of City goals by working together as a team, drawing upon the talents and abilities of all members of the organization, the City Council, Commissioners, Committee Members, staff and volunteers.
• We develop strength and commitment within the organization by building trust, mutual respect, and appreciation for all members of the City family. • We develop partnerships in the community with the Newark Unified School District, the Chamber of Commerce, homeowners groups, neighborhoods, nonprofit organizations, and others to build alliances and common understanding.

N
18 Values
We, the employees of the City of Newark, take PRIDE in our service to our community. In the daily course of our work, we value:

Personal Service. Our success and relationships are built upon a foundation of trust and transparency. We conduct ourselves with the highest degree of ethics, integrity, accountability, and professionalism, to ensure we are championing exemplary service to each other and to the community we serve.

Resourcefulness. We actively manage our resources in the most efficient and responsible way possible. We take initiative and build dynamic teams. We train, adapt, and persist to overcome challenges and optimize value and benefit for our community.

Innovation. We are committed to evolving for the future. We generate and execute new ideas to maximize progress for our community and organization. We leverage and invest in technology and other tools to cultivate an environment that inspires imagination, creative problem-solving and forward – thinking.

Diversity. Diversity is vital to our success. We ensure accessibility and a welcoming environment for everyone. We foster equity, inclusion and belonging by honoring our differences, nurturing sensitivity, and creating opportunities so everyone can contribute in meaningful ways.

Engagement. We promote a culture of wellbeing, empowerment, appreciation, and recognition. We practice impactful communication and collaborate to foster teamwork that nurtures lasting connections within our organization and community.

We are Newark and
We are proud of who we are.

P
R
I
D
E
19 20
Fund Structure & Descriptions
Fund Structure & Descriptions
The basic accounting and reporting entity for the City of Newark is a fund. A fund is a separate accounting entity with a self-balancing set of accounts that comprise of assets, liabilities, fund equity, revenues, and expenditures. Funds are established for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. The City of Newark will annually review its fund structure, to consider whether the goals of general-purpose financial reporting could be achieved by combining similar funds into a single fund for financial reporting purposes. The funds shown below have not been combined.

Funds used in government are classified into three broad categories: Governmental, Proprietary, and Fiduciary.

GOVERNMENTAL FUNDS
Governmental funds include activities usually associated with a typical state or local government's operations (public safety and general government activities).

General Fund
The General Fund is the general operating fund of the City. The major revenue sources for this Fund are property taxes, sales taxes, or other receipts not allocated by law or some other contractual agreement to other funds accounted for in the General Fund. Expenditures of this fund include the general operating expenses traditionally associated with governments such as City Council, City Administration, Police, Fire, Recreation and Economic Development.

Special Revenue Funds
Each of these funds account for revenues that are restricted as to use. Each Fund Summary in the Fund Summary section of the budget outlines in detail what the Fund's revenues and expenditures include.

Capital Project Funds
Capital Project Funds are used for the acquisition, construction, and improvements to major capital facilities and new fleet and technology. These include improvements to land, buildings and infrastructure. These funds account for financial resources that are restricted or assigned to expenditures for capital outlays. Landscape and Lighting District (L&L) funds are not included as part of the budget and are processed separately through a budget amendment resulting in resolutions for the City Council’s approval.
21 Debt Service Funds
Debt Service Funds are used to account for the payment of long-term debt on City obligations.

PROPRIETARY FUNDS
Proprietary funds are used in governments to account for activities that involve business-like services often found in the private sector to impose fees or charges upon those who use their services. Proprietary funds are also used to charge the internal departments of the City for costs of shared expenditures.

Internal Service Funds
These funds include services provided to internal users and function as cost-reimbursement.

Internal Service Funds account for operational support activities, such as building maintenance, for the purpose of recovering the cost from the user, and for the user to identify its full cost of operations. The ISF activities include Office Support, Self-Insurance (Worker’s Compensation and Public Liability), Maintenance (Equipment and Building), and Technology, Equipment and Fleet Replacement.

FIDUCIARY FUNDS
Fiduciary funds are used to account for assets held by the City acting in a fiduciary capacity as a trustee or agent for individuals, private organizations, or other governmental units. Such funds are operated to carry out the specific actions of trust agreements, ordinances, and other governing regulations. Area Improvement District (AID) funds are not included as part of the budget and are processed separately through a budget amendment resulting in resolutions for the City Council’s approval.

Major Funds
• General Fund (110) - The General Fund is the general operating fund of the City. The major revenue sources for this Fund are property taxes, sales taxes, or other receipts not allocated by law or some other contractual agreement to other funds are accounted for in the General Fund. Expenditures of this fund include the general operating expenses traditionally associated with governments such as City Council, City Administration, Police, Fire, Library and Economic Development.

General Fund Cost Centers: The concept of a Cost Center is to account for those activities for which a fee is charged to external users of the goods or services. The cost of providing 22 services for an activity should be recovered through fees or charges. In practice, Cost Centers are used to account for activities whose costs are only partially funded by fees and charges.

A contribution from the General Fund to the Cost Center covers the balance where fees and charges are not sufficient. In other cases, some of the activities in the fund are deemed by the City Council to be of public benefit, and therefore, receives a carefully considered contribution.
o Development Cost Center (120) – The Development Cost Center consists of Planning, Engineering, Building Regulation and Inspection, and Community Development.

These are services provided for developmental activities in the community and are supported primarily by development fees.
o Recreation Cost Center (130) – The Recreation Cost Center provides for the City’s recreation programs and activities. These services are paid for by user fees that are partially cost covering. The City updates its Master Fee Schedule annually and takes into consideration market comparisons and the cost of providing the services. Some General Fund contribution is required due to market constraints in pricing services.

The specific activities in this fund include General Recreation Services, Youth/Adult Sports, Fitness and Wellness, George M. Silliman Community Activity Center – Family Aquatic Center, General Community and Human Services, Youth and Teens, Licensed Childcare, and Seniors Activity.
o Maintenance Cost Center (140) – The Maintenance Cost Center provides for the maintenance of the City’s infrastructure assets. The preservation of the City’s infrastructure is a high priority which requires a contribution from the General Fund.

Services provided in this fund include Street Repairs, Weed Abatement, Park and Landscape Maintenance, Street Lighting, and Environmental Services.

Other General Fund Operating Sub-funds are reported below:
o Paramedic Tax Fund (111) – Funds are used to support the Fire Department Paramedic Program. This voter-approved property tax is used to pay for training, supplies and certain personnel costs associated with the program. o Transaction and Use Tax Fund (TUT 112) – Measure GG funds which are used to account for the City’s one-half percent add-on transaction and use tax. o Utility Users’ Tax (UUT 115) – Fund is used to account for the City’s revenues and expenditures incurred according to the Utility Users’ Tax Ordinance of the City of Newark.

General Fund Reserves
o General Fund Emergency Reserve (101) – Funds used for unexpected expenses such as legal liability or costs associated with an unexpected disaster. o Economic Uncertainty Reserve (102) – Funds used to reduce the organizational impact of a short-term revenue loss.
23 o Pension/Other Post Employment Benefit (OPEB) Reserve (103) – Funds used to pay down the pension liability or OPEB costs.
o Equipment Replacement Reserve (104) – Funds used for the replacement of vehicles, large equipment, IT, and other department items.
• Special Revenue
o American Rescue Plan Act (382) – The American Rescue Plan Act Fund reports Federal funds received in response to the COVID-19 pandemic.
o Public Safety Impact Fees (620) – The Public Safety Impact Fees Fund accounts for fees which provide funding for additional or improved police and fire facilities whose need is generated by new development within the City.
o Community Service Impact Fees (621) – The Community Service Impact Fees Fund accounts for fees which provide funding for additional or improved governmental, social, and cultural facilities and are generated by new development within the City. o Traffic Impact Fees (622) – The Traffic Impact Fees Fund accounts for fees which provide funding for additional traffic signals or improved traffic operations. o Housing Impact Fees (623) – The Housing Impact Fees Fund is comprised of fees adopted by the City Council that are used solely to increase and preserve the supply of housing affordable to households of very low, low, and moderate incomes. o Development Maintenance Fees (625) – The Development Maintenance Fee Fund accounts for fees which provide funding to update and implement the Newark General Plan and zoning ordinance.
o Park Impact Fees (624) – The Park Impact Fees Fund accounts for fees which provide funding for park land and new improvements.
o Measure B – 1986 ACTIA (280) – The Measure B-1986 ACTIA Special Revenue Fund accounts for funds previously received by the Alameda County Transportation Authority as part of a 1986 sales tax measure passed by the voters of Alameda County to finance various transportation improvements. However, the measure expired in 2002, and the City no longer receives sales tax revenues related to the measure. • Capital Projects
o Art in Public Places (626) – Accounts for funds collected from developers to be used for the procurement and enhancement of public art.
o Capital Project Fund (610) – Capital Project Funds are used for the acquisition, construction, and improvements to major capital facilities. These include improvements to land, buildings and infrastructure.
• Debt Service
o Civic Center COP 2019 (503) – Accounts for funds reserved for the debt financing of the City’s new Civic Center.
24 Non-Major Funds
• Special Revenue
o Paramedic Tax (111)
o Gas Tax (201)
o RMRA SB1 (202)
o State Construction Maintenance Funds (210, 211, 212, 213) o Community Development Act – HCD (214)
o Measure D Recycling (215)
o Waste Management Augmentation (216)
o Hazardous Materials Program (217)
o Recycle AB 939 (218)
o Police Grants (230, 231, 232, 233, 235, 236)
o Auto Break-in Prevention - AB74 (234)
o Alameda County Fire Fees (240)
o State Senate Bills Fund (260, 261, 262)
o Measure B – 1986 ACTIA (280)
o Measure B – ACTC (281, 282, 283)
o Measure BB – ACTC(284, 285, 286)
o Measure F (VRF) – ACTC (287)
o ACTC Discretionary Fund (288)
o State Construction Maintenance Funds (210, 211, 212, 213) • Capital Projects
o Landscape and Lighting Districts (401, 402, 404, 405, 406, 407, 408, 409, 411, 413, 415, 416, 417, 418, 419)
o Miscellaneous State Grants (492)
o PEG Fees (611)
• Internal Service Funds
o Equipment & Fleet Replacement (701)
o Technology Equipment Replacement (702)
o Equipment Maintenance (703)
o Building Maintenance (704)
o Office Support (705)
o Public Liability Self Insurance (706)
o Workers’ Compensation (707)
25 Budget Structure
The City maintains a chart of accounts and uses this structure to maintain accountability over the assets and resources for which it has control. The following is the budget structure for the City of Newark: Funds – Organizational Units – Programs – Account Classifications Funds
An accounting-related entity which exists to control and account for funds from various sources. All expenditures and revenues are classified into one of three types of funds.

Organizational Units
Departments and Divisions together is the organization unit responsible for a particular service. All funds have organizational units. These are some sample organizational units in the General Fund.

Programs
A category of services or administrative function provided by the organizational units. All organizational units have programs/activities. These are some sample programs/activities within the organizational unit.

Account Classifications
A category of cost designed to provide detail on the types of commodities, materials, supplies, or services purchased by the local government and the provision of services. All activities have account codes, also known as line items. These are the three categories of account codes common to all organizational units.
26 Account Code Descriptions
The following Account Code descriptions are commonly referred to as expenditure codes. 5100 Regular Employees represent the personnel cost for services provided by full‐time and regular part‐time employees. Full‐time employees have a weekly average regular work schedule of 40 hours. Regular part‐time employees have a weekly average regular work schedule of 20‐35 hours. 5120 Personnel costs of services provided by temporary employees. 5140 Overtime represents the cost for services provided by employees for hours worked in excess of regularly scheduled hours (for FT over 40 hours) to meet service level needs. 6100 Materials and Supplies represent the cost for tangible goods and commodities which are consumed or materially altered when used.
6200 Services (professional and contractual) represent the cost for general or special City services performed by either private agencies or outside governmental agencies. An example of a private agency contract is a contract for weed abatement services. An example of an outside governmental agency contract is the contract with the City of Fremont for animal shelter services. 6400 Membership, Travel, and Training represent the cost for membership in professional and trade associations, traveling to and participation in workshops, seminars, and conferences provided by these associations, and in‐house training programs. Examples of some activities under this category include disaster preparedness training and exercises, advanced training in computer software use, and technical workshops that introduce new legislative reporting requirements. 6800 Internal Service Charges represent allocation of costs incurred by the Internal Service Fund (ISF) activities to provide services to other City departments. The ISF activities include Office Support, Self‐Insurance (Workers’ Compensation and Public Liability), Maintenance (Equipment, Building), and Technology, Equipment, and Fleet Replacement. 7000 Debt Service represents principal and interest payments on long‐term debt for the Civic 27 Center. This also includes capital lease payments for the acquisition of a fire pumper, street sweeper, and radio communications system.
8000 Capital Outlay represents the cost of major and significant acquisitions of equipment, land, buildings, and building improvements. An example is a purchase of a new vehicle that is added to the City’s fleet. Another example is the cost for a major building renovation that extends the building’s economic life and expands its functional use. 28 Basis of Budgeting
The City’s Budget is prepared in conformity with generally accepted accounting principles (GAAP), with the exception of the Landscaping and Lighting Districts (L&Ls) funds. The budget for these funds is not included in the proposed budget and is processed separately through a budget amendment resulting in resolutions for the City Council’s approval.

Budget Purpose
The City has made a strong commitment to closely tie specific short- and long-term goals directly to the budget and views the budget planning process as the primary tool used in identifying the most important things to accomplish. Accordingly, the budget process includes early City Council involvement in setting major policy goals and priorities as articulated in this document.

Many of the City’s Strategies and Action Items do not fit into one-year increments. A multi-year approach is conducive to setting meaningful objectives with realistic timeframes for completing them, allows departments to plan for the funding of worthwhile activities or projects and ensures that the funding is available for multi-year objectives and operating activities. A multi-year approach also encourages a more thorough and forward-thinking planning process. Planning must be done not just for one year, but also for the foreseeable future and involves developing and implementing solutions to meet longer-term needs.

Basis of Budgeting and Accounting
The Operating Budget and Capital Improvement Plan (CIP) is organized and operated on a fund basis. The operating budget represents services and functions provided by the City in alignment with the resources allocated during the fiscal year. The Capital Improvement Plan is funded and defined by its approved projects, with the remaining unexpended budget for ongoing or incomplete capital projects carried forward into the following fiscal year consistent with City Council approval by resolution.

Governmental Funds consisting of the General Fund, Special Revenue Funds, Debt Service Fund, and Capital Funds, are budgeted using the modified accrual basis of accounting, consistent with the City’s financial statements, which recognizes revenues when received, unless subject to accrual. Revenues are accrued when they are measurable and available to finance City operations. For example, property taxes collected within 60 days after the close of the fiscal year (June 30) are classified as revenues for the current fiscal year. Revenues from grants and donations are recognized in the fiscal year in which all eligibility requirements have been 29 satisfied. Expenditures, other than general long-term debt, are recorded when the liability is incurred. For example, when the City receives a delivery of office supplies, a liability to pay is created. General long-term debt is recorded in the year when due; e.g., payment of principal and interest on a long-term lease.

Proprietary Funds include the Internal Service Funds and are budgeted using the full accrual basis of accounting, consistent with the City’s audited financial statements, whereby revenue budget projections are developed recognizing revenues expected to be earned during the period and expenditures for expenses anticipated to be incurred in the fiscal year.

The City’s Operating Budget uses a line-item budget format within the funds. Revenues are categorized by sources and expenditures are presented by programs and by activities within the funds. Within the activities are detail categories that include personnel, supplies, contractual services, and capital outlay.
30 Budget Timeline
The City of Newark adopts a biennial Operating and Capital Improvement Plan (CIP) Budget, including a Five-Year Forecast. The budgets are adopted in the even fiscal years (FY 2024, FY2026, etc.). The City’s budget is developed in the context of a comprehensive five-year financial plan and is built upon the City Council’s priorities providing a framework to deliver high quality programs and services to the Newark community.

Two-Year Budget Cycle: The City starts the budget development process early, in October and November preceding the start of a new fiscal cycle. Initial analysis of budget numbers includes meetings with key subject matter experts including sales and property tax consultants. In January, a dialogue starts with the various departments, followed by proposed baseline budgets to the Finance Department. In March, a public work session is held on the budget, with input solicited and questions answered. A proposed budget document is then presented to the City Council in May. The budget must be approved by the City Council by July 1 31 A general overview of the Capital Improvement Plan was presented to the City Council on January 25, 2024, and a budget work session focusing on the operating budget was held on March 14, 2024. The related Capital Improvement Plan and second budget work meeting was held on May 23, 2024. The City Council adopted the 2024-2026 Biennial Budget on June 27, 2024. The work sessions and council meetings provided the opportunity for City Council to discuss the budget as well as receive public comment.

BUDGET PROCESS
The budget process consists of activities encompassing the development, implementation, and evaluation of a plan to provide services and capital assets.

Several essential features characterize a good budget process:
• Incorporates a long-term perspective,
• Establishes linkages to broad organizational goals,
• Focuses budget decisions on results and outcomes,
• Involves and promotes effective communication with stakeholders, and • Provides incentives to government management and employees.

The mission of the budget process is to help decision-makers make informed choices about the provision of services and capital assets and promote stakeholder participation in the process. The term “stakeholder” refers to anyone affected by or who has a stake in government. The budget process consists of several broad principles that stem from the definition and mission described above. These principles encompass many functions that cut across a governmental organization.

They reflect the fact that the development of a budget is a political and managerial process that also has financial and technical dimensions.

Principles of the Budget Process

1. Establish Broad Goals to Guide Government Decision Making • A government should have broad goals that provide overall direction for the government and serve as a basis for decision-making.

2. Develop Approaches to Achieve Goals
• A government should have specific policies, plans, programs, and management strategies to define how it will achieve its long-term goals.
32 3. Develop a Budget Consistent with Approaches to Achieve Goals • A financial plan and budget that moves toward the achievement of goals within the constraints of available resources should be prepared and adopted.

4. Evaluate Performance and Make Adjustments
• Program and financial performance should be continually evaluated, and adjustments made to encourage progress toward achieving goals.

The City of Newark operates on a fiscal year basis, starting July 1 and ending June 30, and budgets are on a biennial (two-year) basis. The budget is prepared by the Finance Department in collaboration with all the departments under the supervision of the City Manager.

The City follows these procedures in establishing the budgetary data:
• The City Manager submits to the City Council a proposed Biennial Budget and Capital Improvement Plan for the two fiscal years commencing the following July 1, which includes proposed expenditures and the means of financing them. • The budget is adopted by City Council resolution prior to July 1 of even-numbered years. • The City Council must approve all budget adjustments and transfers between funds by resolution during the fiscal year.
• The City Manager is authorized to transfer any unencumbered appropriations within a department within the same funds.
• Formal budgetary integration, including recording encumbrances, is for management control purposes during the fiscal year in all budgeted funds. Under encumbrance accounting, purchase orders, contracts, and other commitments for the expenditure of monies are recorded to reserve that portion of the applicable appropriations. • Budgets are adopted for all funds except for Area Improvement District Funds (AID) and Landscape and Lighting District (LLD) Funds. The budget for these funds is processed separately through a budget adjustment and approved by resolution with City Council approval.
• Budgets are prepared in conformity with generally accepted accounting principles (GAAP) with the exception of the Area Improvement District Funds (AID) and the Landscape and Lighting District (LLD) Funds.
33 PREPARATION AND REVIEW
The Finance Department is responsible for preparing revenue and expenditure estimates used to determine funding levels for new and existing services and programs. The preliminary estimates are prepared and reviewed with the City Manager and Department Directors in November/December. Finance staff will continue to use the most recent position list as a starting point for personnel expenditures in the new budget cycle. All vacant positions are budgeted at top-range/top-step, cafeteria plan contribution for employee plus 1 dependent, and PEPRA pension rates.

Any personnel increases or additions must be approved through the budget adjustment process as described later in this document. Current year estimates and long-range revenue and expenditure forecasts are incorporated into the Five-Year Forecast section of the budget document.

The non-personnel cost estimates for the current year are developed by using the budget adjustments submitted. Departments are responsible for completing non-personnel cost projections for the upcoming budget cycle. Where applicable, department staff will also prepare current year revenue estimates and projected revenue estimates for the biennial budget. Budget item descriptions justifying need should be entered for all line items.

BUDGET AMENDMENTS
During the fiscal year, amendments to the Budget are presented to the City Council for approval.

Budget amendments occur when unanticipated events result in an increased appropriation for a given service; for example, an increase in utility costs. An amendment request may be proposed for additional appropriation from reserves or an appropriation transfer from one fund to another. 34 Financial Policies
Budgeting Policies
The FY 2025 and FY 2026 budget will be the thirteenth biennial budget for the City. This budget will be based on key principles that support the City’s strategy of fiscal sustainability. • The budget will be fiscally conservative and balanced, meaning that expected revenues and transfers are sufficient to cover planned spending. • The City will continue providing services at least at current levels and with adequate funding.
• General Fund and Capital Fund balances will be maintained at levels that will support the City during future economic and other financial uncertainties. • Expenditures and revenues will be estimated at conservative, but realistic levels. • The budget will support the Critical Issues and Strategies and related Action Items that are identified in the Strategic Plan.
• All operating budget appropriations not expended in the current fiscal year will lapse on June 30th, unless encumbered to meet specific obligations such as contracts and agreements and other previously approved procurements incurred during the fiscal year through final action. These will be automatically and administratively reappropriated into subsequent fiscal year(s) without further Council consideration or action. Additionally, all budget appropriations for capital projects that are not completed and were previously approved through final action will be automatically and administratively reappropriated into the subsequent fiscal year(s) without further Council consideration or action. • A modest Capital Improvement Program should continue to be implemented due to the limited capital reserves.
35 Five-Year Forecast
The Five-Year Forecast is used by the City Council and City staff as an important planning tool for making short and long-term budgetary decisions. The Forecast provides development activity information, including significant economic development trends and planned citywide development projects. Economic and financial information is also outlined, including national, state, and local economic forecasts, as well as specific revenue and expenditure projections for the City of Newark. These financial forecasts are five-year projections based on specific assumptions about future conditions such as inflation, job growth, population, and other factors that impact the local economy. These assumptions and financial projections are updated and revised at least biennially, but more often if economic conditions dictate. Finally, the City’s strategic and budget plans are outlined. These include specific information regarding the City’s approach to budgeting and the status of the Strategic Action Plan.

Reserve Policies
• Emergency and Fiscal Uncertainty Reserves - The City will strive to maintain a minimum reserve target of 30% of final General Fund operating and debt service expenditures (excluding transfers) for fiscal stability, cash flow needs, contingencies, and strategic opportunities for the Emergency and Fiscal Uncertainty Reserves. These reserves are intended to help the City mitigate risks and respond to financial challenges during economic downturns, emergencies, or cyclical deficits when annual expenditures exceed revenues.
• Pension and Other Post Employment Benefits (OPEB) Reserve - The General Fund Pension and OPEB Reserve fund is maintained with surpluses from salary expenditures to provide for sufficient funding of pension and OPEB obligations. This reserve can only be used to pay pension or OPEB costs.
• Equipment Replacement Reserve – This reserve was established for the replacement of vehicles, maintenance equipment, and other department items and is funded through availability from the General Fund unallocated fund balance. • Capital Projects Reserve – This reserve was established to fund the Capital Improvement Plan and is funded through availability from the General Fund unallocated fund balance and unused allocation of projects.
36 Gann Appropriation Limit
California voters approved Proposition 4, commonly known as the “Gann Limits” on November 6, 1979, establishing Article XIIIB of the State Constitution. This proposition mandates an appropriations (spending) limit on the amount of tax revenue that the State and most local government jurisdictions may appropriate within a fiscal year. The fundamental purpose of the Gann Limit is to keep real (inflation adjusted) per person government spending under 1978-79 levels.

The State election on June 5, 1990 resulted in the passage of Proposition 111, amending Article XIIIB of the California Constitution, the governing legislation for calculating the appropriations limit. The measure requires that a complex series of calculations be performed each year to compare appropriations to the limit. Under the amended legislation, the appropriations limit may increase annually by a factor comprised of the change in population (city or county), combined with either the change in California per capita personal income or the change in the local assessment roll due to local nonresidential construction.

The City used the change of City population along with the change in per capita personal income options to calculate the FY 2024 appropriation limit of $511.8 million. The City’s current fiscal year 2024 Annual Budget includes appropriations subject to the limit of $64.8 million. This is well below the City’s appropriation limit. Staff has no concerns regarding our ability to stay within the limit.
37 38
Goals and Strategies
The City of Newark’s City Council reviews goals and strategies as part of the biennial budget process, to address current and long-term objectives. These goals are outlined below, along with action plans that City staff will be undertaking to accomplish them. These overarching goals are supported by the Department priorities which have been established for the current biennial budget cycle.

The Department priorities are in addition to the Key Objectives that departments focus on to provide services and support to the community, which can be found in the Department Summaries.

I. ENHANCING PUBLIC SAFETY - Provide a level of public safety services that will protect community members, property, and community assets based on community-oriented policing philosophy.

Action Plans:
• Utilize community engagement strategies to leverage our social media footprint to enhance community relations.
• Evaluate the technological needs of public safety services; utilize new and optimize existing technologies and data analysis to increase efficiency. • Explore opportunities to regionalize resources and participate in collaborative efforts with other agencies.
• Identify and evaluate resources to assist with the procurement of grant funding for public safety services.
• Proactively respond to evolving demands caused by changes in legal requirements or our diverse community.

II. CULTIVATING QUALITY OF LIFE – Provide programs, services, facilities, parks, and open spaces that make Newark a desirable, healthy, and environment-focused place to live.

Action Plans:
• Provide facilities and activities that allow all community members an opportunity to engage in cultural, recreational, wellness, and informative programs and services. • Work closely with local organizations to improve the delivery of recreation and community program services, ensuring a more impactful and effective outreach to our community.
39 • Promote climate protection strategies, water use efficiency, storm water protection, energy conservation, and innovative solid waste management practices. • Monitor transportation conditions, including traffic congestion, bicycle and pedestrian mobility, and transit level of service.
• Provide clean, safe, inviting, and well-maintained streets and landscaped areas, facilities, parks, and open spaces for community use.
• Promote and implement city beautification measures as resources allow.

III. FURTHERING COMMUNITY DEVELOPMENT – Implement programs and make development decisions that maintain a vibrant and balanced community.

Action Plans:
• Ensure that the community has a coherent and long-term vision for the future through its General Plan, Specific Plans, and Master Plans.
• Improve housing diversity, add community amenities, and enhance long-term revenue through new development consistent with Specific Plans and the General Plan. • Represent and advocate for our community through partnerships with regional agencies, neighboring communities, and directly with property owners, businesses, and the Newark Chamber of Commerce.
• Support and develop the local business community to service business ecosystem opportunities.
• Promote investment and ensure the quality of life in existing residential and commercial neighborhoods.
• Strengthen community identity and City revenue by promoting a strong hotel identity and a varied and vibrant retail mix with attractive retail areas. • Promote the development of transportation options such as Dumbarton Transit alternatives, first and last-mile transit services, and bicycle and pedestrian improvements.
• Identify and evaluate resources to assist with the procurement and administration of grant funding.
40 IV. IMPROVING CITY GOVERNMENT OPERATIONS – Operate a City government that enables the organization to meet service demands of the community.

Action Plans:
• Provide and maintain public facilities within our resources. • Take actions that promote and enhance long-term fiscal stability and independence. • Evaluate technological and security needs of the organization for operational efficiency and safeguarding of City assets.
• Identify short and long-term space needs, and ensure facility needs for City departments are provided.
• Participate in regional and sub-regional collaborative efforts and foster inter- agency partnerships to meet the needs of the community.
• Provide a safe and effective work environment that engages each employee to perform at an optimum level of service.
• Forster a workplace culture that prioritizes diversity, equity, inclusion, and belonging, and promotes an environment where every individual feels valued, respected, and empowered to contribute their unique perspectives and talents.

V. SUPPORTING EDUCATION – Support, encourage, and offer opportunities and programs that facilitate quality community education.

Action Plans:
• Work with the Newark Unified School District and private schools and support other collaborative efforts that strive toward the development of a “world class” school system.
• Offer meaningful educational, intergenerational, all-abilities and cultural programs. • Encourage continued business community involvement in supporting education. • Collaborate with Ohlone College on future improvements of the Newark campus and explore opportunities for partnerships with the Community College District. 41 Department Priorities
In addition to the goals and action plans, City Departments updated their priorities, which were presented to City Council in March 2024 to cover FY 2025 and FY 2026.

City Manager’s Office (City Manager, City Clerk, City Attorney, and Emergency Management):
• Update the citywide Comprehensive Emergency Management Plan and increase CERT participation.
• Administer the 11/5/2024 municipal election and coordinate with Alameda County Registrar of Voters.
• Initiate a Citywide branding and marketing effort.
• Develop communication priorities and increase community satisfaction with citywide communication.

Police Department:
• Increase focus on training of new officers.
• Deploy resources based on developing crime and traffic trends. • Be responsive to quality-of-life concerns such as inoperable and abandoned vehicles, illegal dumping and blight graffiti abatement.
• Implement the State grant to address auto and catalytic converter thefts. • Enhance community engagement through renewed partnerships, community events, and volunteers.
• Prioritize professional development and succession planning including mentorship and opportunities for future leaders.
• Ensure current practices are consistent with department through policies through compliance audits.

Alameda County Fire Services:
• Meet obligations in delivery of emergency response services. • Collaborate with the City’s Emergency Services Coordinator to provide community training programs.
• Review and support the City’s Comprehensive Emergency Management Plan.

Public Works - Engineering:
• Support residential and commercial construction projects. • Oversee construction of Central Avenue Railroad Overpass Project. 42 • Complete Old Town Streetscape Improvement Project and Thornton Avenue Complete Street Projects.
• Implement traffic improvement and roadway safety projects. • Continue to pursue outside funding for transportation projects.

Public Works – Building Inspection:
• Support construction activity within the community.
• Educate community on Building Code updates.
• Implement software, programs, and processes to streamline development permitting and increase customer access and satisfaction with processes.

Public Works – Maintenance:
• Improve maintenance of parks, landscaping, streets, buildings, vehicles and equipment. • Increase the City’s Urban Forest and develop an Urban Master Plan. • Complete priority maintenance needs for buildings as identified in the Facilities Master Plan and Capital Improvement Plan.
• Increase project management support to complete landscape and building projects.

Public Works – Environmental Services:
• Complete a local Sea Level Rise Resiliency Assessment and Adaptation Plan in coordination with local and regional partners.
• Update the City’s Climate Action Plan with revised emission reduction targets and updated goals, policies, and strategies.
• Implement continued diversion of solid waste from landfills. • Implement the City’s Stormwater Program in accordance with permit requirements. • Monitor changes in State law and adapt.

Community Development - Planning:
• Implement goals, policies, and programs of specific plans for Old Town and Bayside Newark. • Update the NewPark Place Specific Plan Mixed Use II area and Four Corners Area Plan. • Implement an Affordable Housing Work Plan and Housing Element Programs.

Community Development – Economic Development:
• Support the Chamber of Commerce and small businesses. • Attract new retail, biotech, and advanced manufacturing businesses. • Market the City of Newark to businesses and real estate brokers. • Develop a hotel marketing plan.
43 Community Development – Community Preservation:
• Partner with the community to maintain property standards. • Achieve compliance through outreach, education, and enforcement. • Promote health and safety by enforcing minimum housing and property maintenance standards.
• Develop and implement a Tobacco Licensing program.
• Develop and implement a Multiple Family Housing Inspection Program.

Financial Services:
• Monitor revenues, expenditures, economic trends, and fiscal policies. • Develop the biennial budget and capital improvement plan and five-year forecast. • Provide leadership and support in grant compliance and financial reporting. • Establish maintenance reserves to address needs in the Facilities Master Plan.

Recreation and Community Services:
• Open the City’s first Resource Center.
• Establish partnerships to promote social services.
• Provide for community special events and recreation opportunities. • Offer scholarships to low-income residents to improve access to recreational and fitness activities.

Human Resources Department:
• Attract a talented workforce with innovative recruitment and onboarding programs. • Retain our talented employees with engaging professional and organizational development. • Promote the City’s PRIDE values to build a thriving employee culture. • Champion employee safety and wellness and utilize risk management strategies to protect the City’s resources.

Information Technology Department:
• Implement the Technology Master Plan and Broadband Master Plan. • Support Departmental Initiatives by integrating technology solutions. • Encourage innovation and foster continuous improvement through emerging technologies and best practices.
• Enhance cybersecurity and implement proactive measures to safeguard City data against cyber threats.
44 Budgetary Challenges
There are several challenges that have been factored in the next two fiscal years’ budgets. These challenges, highlighted below, are carefully balanced with fiscal sustainability and economic conditions. Concerns from the last budget cycle, which continue into this budget cycle, include housing shortages (which in turn that affects the labor market), labor shortages, pension costs, and geopolitical tensions. While the financial effects of the COVID19 pandemic have improved significantly over the last year, new challenges arise such as sustained inflation potentially affecting sales tax, increasing costs to provide services to the community, aging infrastructure, and cybersecurity.

Fiscal Challenges:

1. Inflation – In January 2024, the consumer price index was up 3.1% year-over-year, still higher than the Federal Reserve’s preferred rate of 2%. Over the last 18 months, predictions regarding the future of the U.S. economy have varied, but many experts believe inflation will continue and that the Federal Reserve won’t cut interest rates until closer to the end of the calendar year. Interest rate sensitive sectors include construction, real estate, and manufacturing.

Increased costs impact the City’s ability to provide services to the community. Costs for utilities, contractual work, consultant fees, and public liability insurance have seen steeper increases in costs compared to previous years. While the City has factored in a CPI increase of 3% for the upcoming FY 2025 and FY 2026 cycles, some line items are expected to increase well above this percent.

2. Infrastructure Maintenance and Capital Investment – The preservation of the City’s infrastructure continues to be a high priority and is funded through multiple resources.

In addition to the Maintenance Cost Center, which is included in the General Fund, the Equipment and Building Maintenance Internal Service Funds support the upkeep costs of various assets and capital infrastructures. To support the City’s priority in maintaining its aging infrastructure and assets, staff will be recommending the establishment of a Maintenance Reserve Fund. Establishing a maintenance reserve fund is a best practice for financial management and asset preservation. It ensures that there are dedicated resources available to handle maintenance needs, leading to longer asset lifespans, reduced costs, and improved operational efficiency. A separate item will be presented to Council for this item.
45 A Facilities Master Plan is currently being prepared to assess and project the maintenance and replacement needs of current and future assets. This plan will be used in updating the Five-Year Forecast to ensure budgetary spending is set aside to address facility needs.

3. Pension Liabilities - Like most California Cities, the cost of retirement benefits continues to be significant for the City. The unfunded liability from the latest California Public Employees’ Retirement System (CalPERS) valuation report, was estimated to be $109,719,460, a 61% increase from FY 2015.

To address the growing liability, the City has taken several actions which included costsharing with employees, selecting a fresh-start option provided by CalPERS to shorten the unfunded accrued liability (UAL), establishing the Pension and Other Post Employment Benefits (OPEB) reserve fund in FY 2017, prepaying the UAL to recognize a discount, and making two additional discretionary payments (ADP) of $10 million for the Safety Plan and $5 million for the Miscellaneous Plan in FY 2021 and FY 2023, respectively.

In FY 2021, the CalPERS 21.3% investment return triggered the CalPERS funding risk mitigation policy which reduced the discount rate from 7.0% to 6.8%. Lowering the discount rate essentially increased the present value of future pension liability. By lowering the discount rate, CalPERS aims to reflect a more conservative estimate of future investment returns, which in turn helps to better align pension assets with liability.

Investment returns fluctuate, and the CalPERS investment rate for FY 2022 was a negative

7.5%, followed by a positive 5.8% return in FY 2023. During the March 2024 CalPERS Board of Administration mid-cycle review, it was decided that there will be no actuarial assumption changes and no changes to the discount rate.

At the close of FY 2023, the Pension and OPEB Reserve Fund had a balance of $12.4 million. Transfers from general fund salary savings and unallocated fund balance continue to fund this reserve. Staff has also presented to City Council to utilize $12 million of the balance to fund a Section 115 trust and/or another ADP to further paydown the UAL.

Shortly after the California Public Employee’s Pension Reform Act (PEPRA) took effect in January 2013, there were only a handful of employees under PEPRA compared to the number of PERS Classic employees. Eleven years later, the City’s workforce has tipped to being over 50% comprised of PEPRA employees. Because PEPRA’s new benefits formulas apply only to employees hired after January 2013, there won’t be material short-term savings, but there will be savings in the long run as new employees are hired and ultimately retire.

4. Cybersecurity (Technology Master Plan) - As many cities have been plagued with cybersecurity breeches, the City has taken action to prevent cybersecurity threats with increased training and monitoring. To date, these actions have proven effective but will 46 need to continue as cybersecurity threats evolve and become more sophisticated and prevalent. A new Technology Replacement Internal Service Fund was created in FY 2025 to capture ongoing costs not just for asset replacement and software needs, but to also include cybersecurity costs to safeguard the City.

5. Workforce Hiring Challenges – Like many other cities, recruitment for vacant positions presents a challenge in today’s environment. An aging workforce and the pandemic fallout has resulted in many employees heading towards retirement in greater numbers.

Labor challenges and competition for talent creates vacancies which often can go unfilled for several months. These vacancies can negatively impact the City’s ability to carry out core services to the community and hinder projects from being completed timely. To address this issue, an adequate budget was added for recruitment efforts. 47 48
Economic and Financial Forecast
Introduction
As Newark navigates through an ever-evolving economic landscape, understanding key economic indicators is essential for informed decision-making and strategic planning. Amidst this backdrop, it is imperative to examine fundamental economic indicators not only within Newark but also across the surrounding San Francisco-Oakland-Hayward area. By delving into metrics such as the Consumer Price Index (CPI), household income, housing prices and unemployment rates, this report seeks to provide a holistic view of the economic environment, laying the groundwork for the City's financial projections and initiatives.

Summary
The City of Newark, with its notable housing costs, median income figures, and low unemployment rate, remains resilient. Recent U.S. Census data underscores Newark's economic prowess, with median household incomes surpassing state and national averages. Despite facing challenges such as housing affordability concerns, Newark remains an attractive destination within the competitive Bay Area real estate landscape.

Moreover, Newark exhibits commendable economic resilience, consistently maintaining lower unemployment rates compared to broader regional and state counterparts. This trend, observed over the past few years, highlights Newark's stable local economy and labor market, positioning it favorably amidst economic fluctuations.

Looking ahead, the Economic and Financial Forecast presents an optimistic outlook for Newark's financial trajectory, with revenue and expenditure estimates developed using trend analysis forecasting and insights into known development growth and economic trends. Significant revenue sources, such as Property Tax and Sales Tax, are projected to exhibit steady growth, ensuring continued funding for essential services and infrastructure development within the City.

Furthermore, initiatives like Measure GG, a one-half percent sales tax increase, provide additional revenue streams, supporting the City's capital improvement endeavors, including the construction of a new Civic Center in 2021. Despite initial setbacks due to the pandemic, Measure GG revenue forecasts indicate a gradual increase over the next several years, contributing to the City's financial stability.

In conclusion, Newark's economic outlook remains optimistic, sustained by steadily increasing revenue projections, low unemployment rates, and a stable housing stock. While challenges persist, proactive measures and strategic planning are poised to navigate the City towards continued resilience in the face of evolving economic landscapes. 49 Economic Indicators
In February 2024, the Consumer Price Index (CPI) for the San Francisco-Oakland-Hayward area showed a 1.5% increase over the preceding two months and a 2.4% increase from the previous year. This rise in prices was primarily driven by higher costs for shelter. Over the 12-month period, food prices increased by 2.4%, while energy prices surged by 4.7%, mainly due to a rise in electricity prices. Excluding food and energy, the index for all items advanced by 2.2% over the year. These figures, provided by the U.S. Bureau of Labor Statistics, indicate an upward trend in consumer prices within the San Francisco-Oakland-Hayward area, which may impact various aspects of the local economy, including household budgets and purchasing power.

Looking ahead, forecasts for the next three to five years suggest a continued upward trend in the CPI for the San Francisco-Oakland-Hayward area. Economic indicators anticipate ongoing pressures on housing affordability, coupled with persistent demand for goods and services as the region continues to recover from the effects of the pandemic. Additionally, factors such as wage growth, employment trends, and monetary policy decisions will likely influence CPI movements in the coming years. Amidst these dynamics, policymakers and stakeholders will need to navigate strategies to manage inflationary pressures and promote economic stability within the region.

The City of Newark presents a compelling economic landscape characterized by robust household incomes and substantial homeownership rates, as evidenced by recent U.S. Census data (Census).

With a population estimated at 47,528 as of July 2023, Newark's high median household income of $159,465 compared to Alameda County of $122,488, surpassing both state and national averages. This healthy income level is further underscored by a per capita income of $62,417 over the past 12 months. Despite a relatively low poverty rate of 4%, housing affordability remains a pertinent issue, reflective of the region's desirability.

Owner-occupied housing units constitute a significant portion of Newark's housing market, with a rate of 69.5%. However, the median value of owner-occupied housing units stands at a substantial $1,034,900, compared to Alameda County at $999,200 reflecting the City's position within the competitive Bay Area real estate market.

Over the past couple of years, Newark has consistently maintained a lower unemployment rate compared to both Alameda County and the State of California as a whole. In January 2024, while California's unemployment rate stood at 5.3% and Alameda County's rate was at 5%, Newark reported a notably lower rate of 4.2%. This trend continued through February and March 2024, with Newark's unemployment rate consistently below both the county and state averages. This pattern persisted throughout the year, highlighting Newark's relative economic resilience compared to its broader regional and State counterparts. Despite fluctuations in the unemployment rate over time, Newark consistently maintained a favorable position, suggesting a relatively stable local economy and labor market.
50 Source: Bureau of Labor Statistics
The remainder of the Economic and Financial Forecast details the assumptions used in developing revenue and expenditure estimates for the City over the next five years. These estimates are used by City staff in planning the current and future year operating and capital project budgets. The projections were developed using trend analysis forecasting combined with information regarding known development growth and economic trends in Newark.

Policy decisions made at both the State and Federal levels can significantly impact local revenues and expenditures and are also taken into consideration when developing these projections. Below are explanations of significant revenue sources for the City.

Property Tax and Property Tax in Lieu of Vehicle License Fee (VLF) In 2023, Newark's property tax revenue surged to $22.1 million, marking a notable 10.6% increase from the previous year's total of $20 million. Looking forward, revenue estimates for the next several years indicate a consistent upward trajectory. By 2024, property tax revenue is projected to further rise to $23.8 million, representing a 7.62% increase from the preceding year.

Subsequent years continue this growth trend, with estimated revenues reaching $26.0 million in 2025, $27.1 million in 2026, $27.8 million in 2027, $28.9 million in 2028, and $30.2 million in 2029.

These projections underscore a steady and robust increase in property tax revenue, affirming Newark's financial stability. Such growth ensures sustained funding for essential services and ongoing infrastructure development initiatives within the City.

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51 In 2023, Newark's Vehicle License Fee (VLF) revenue amounted to $6.5 million, indicating a steady

10.4% increase from the previous year's total of $5.9 million. Projections for the subsequent years highlight a continued upward trend in VLF revenue. By 2024, revenue from VLF is forecast to reach $7.2 million, reflecting a 10.7% increase from the preceding year. This growth trajectory persists with estimated revenues of $7.5 million in 2025, $7.8 million in 2026, $8.2 million in 2027, $8.5 million in 2028 and $8.9 in 2029. The upward trajectory in VLF revenue underscores Newark's financial resilience and ability to adapt to changing economic conditions. These increasing revenues contribute to the City's capacity to maintain vital services and invest in critical infrastructure projects, ensuring sustained progress and prosperity for its residents.

Sales Tax (Bradley Burns)
“Retail spending in the U.S. rose 0.7% in March, marking the second consecutive month of growth and reflecting the strength of the consumer driven by a robust job market. Despite a slower pace compared to February, the increase surpassed economists' projections, with online sales and specialty stores experiencing solid growth, indicating continued strong consumer spending, which has remained resilient despite inflation and elevated interest rates.” Source: HdL April 2024 Sales Tax Forecast
HdL Companies, the City of Newark’s Sales Tax Consultant, completed a sales tax trends and economic drivers forecast for the State of California, examining sales tax for seven major industry groups, including: Business and Industry; Autos and Transportation; Building and Construction; 52 Restaurants and Hotels; General Consumer Goods; Fuel Service and Stations; and Food and Drugs.

The following details statewide as well as local trends within the aforementioned industry categories.

Newark’s Sales Tax forecast reflects a mix of factors influencing revenue. Sales Tax accounts for approximately 11% of the total operating revenue, making it the second largest revenue source after property tax revenues.

Actuals for FY 2023 totaled $17.4 million, a result of misallocations within the business sector and one-time increases from large equipment purchases. However, the corrections of the misallocations is expected to decline in the coming years, with projections of $15.5 million for FY 2024, $15.9 million for FY 2025, $16.4 million for FY 2026, $16.8 for FY 2027, $17.3 million for FY 2028, and $17.7 million for FY 2029.

Autos & Transportation, which is estimated to decline 41.1% in FY 2024, is expected to stabilize and then gradually increase in the following years, indicating a positive trajectory for this industry segment. Similarly, Building & Construction is projected to see consistent growth, with incremental increases forecasted through FY 2029.

Business & Industry, despite a significant decline of 37.6% in FY 2024, is anticipated to rebound and show modest growth over the forecast period. The Food & Drugs sector is expected to experience minor fluctuations but overall maintain a positive trajectory with slight increases in revenue.

Fuel & Service Stations, General Consumer Goods, Restaurants & Hotels, and State & County Pools are all projected to demonstrate steady growth over the forecast period, albeit with varying rates 53 of increase. However, it's essential to note that these projections are subject to economic conditions, consumer behavior, and other external factors that may influence sales tax revenue.

Overall, while the City faced challenges in FY 2023, the forecasted growth across multiple sectors indicates a promising outlook for Newark's sales tax revenue in the coming years, suggesting a gradual recovery and stabilization of economic activity.

The following provides highlights of activity within the major industry groups.

Business and Industry
In the state, after several years of growth, this sector experienced a 2.2% decline. Among the sector's 21 segments, only six saw positive growth. Fulfillment centers, which contribute 31% of total revenues, remained relatively stable as e-commerce continued to fulfill orders from warehouses in California. The most significant increase was observed in the energy/utilities segment, driven by regional energy and solar projects. However, the medical/biotech sector contracted due to decreased demand for equipment and supplies. Both heavy and light industries faced challenges related to inventory, pricing, and demand, while sales in business-to-business $0 $1 $2 $3 $4 $5 $6 $7
Autos & Transportation
Building & Construction
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Newark Sales Tax by Business Types
FY2023 Actuals and Two Year Projections
2024-25 Projection 2023-24 Projection 2022-23 Actuals
54 and office equipment-IT slowed down. Considering the factors affecting these sectors, HdL forecasts limited growth for the current year, followed by gradual expansion in subsequent years.

In Newark, the Business & Industry sales tax category for FY 2023 experienced a significant spike, reaching $5.65 million marking a notable increase from the previous year. This surge can be attributed to a few one-time large expenditures, such as equipment purchases and capital investment, and misallocations from businesses. The future projections reflect an adjustment in both business purchases and reallocations of funds over the next five years.

Looking ahead to the forecast for the years 2024 through 2029, steady growth is anticipated, albeit at a more moderate pace compared to the sharp increase observed in FY 2023. The forecast predicts a gradual but consistent rise in sales tax revenue within the Business & Industry category.

This growth trajectory reflects the ongoing stabilization of economic conditions and the continued adaptation of businesses to changing market dynamics. While the rate of growth may taper slightly in the later years of the forecast period, overall stability and positive momentum are expected to characterize the Business & Industry sector's contribution to tax revenues in the City.

Autos and Transportation
Throughout the state the pricing of new vehicles, especially in the electric and luxury sectors, is changing due to inflation. As dealership inventories stabilize, manufacturers are offering more incentives, leading to lower prices and affecting tax revenues. Dealerships face more competition and high lending rates, making buyers cautious. Credit conditions are tightening, slowing down market activity. While sales dropped by 3.6% in FY 2024, they're expected to rise by 2.0% in FY 2025, indicating a potential recovery. Projectionssuggest a gradual return to market stability, with a modest recovery expected later in 2024 due to lower financing rates.

The notable surge in sales tax within the Autos & Transportation sector during FY 2023, with actuals reaching $5.8 million, was primarily attributed to a misallocation of sales tax from certain auto-related businesses. However, this misallocation has been identified and corrected, leading to adjustments in the future projections for this sector. The adjusted forecast for FY 2024 is $3.42 million, and for FY 2025, it is $3.29 million. While the current projections reflect these corrections, it's important to note that further adjustments may be necessary as the City continues to refine their understanding of the sector's dynamics and tax allocation processes.

Building and Construction
The Building and Construction sector experienced mixed trends throughout the State, with a notable increase in demand for storm-damaged roofing repairs driving growth. Material suppliers and roofing contractors reported heightened business activity, leading to longer waitlists.

Optimism among contractors is fueled by new project bids for infrastructure work, supported by the Infrastructure Investment and Jobs Act (IIJA) which aims to address a wide range of 55 infrastructure needs across the country with a historical investment of approximately $1.2 trillion by the United States Congress. However, home improvement centers and lumber retailers saw declines due to factors like high mortgage rates not yet at levels to stimulate new construction.

Locally, Newark's revenue in this category is projected to increase by approximately 4.1% to $1.76 million for FY 2024, reflecting modest growth prospects despite national fluctuations.

Restaurants and Hotels
In California, the Restaurants and Hotels sector is facing challenges amid rising menu prices, leading to reduced dining-out frequency among consumers. The minimum wage hike for fast-food restaurants, effective April 1, 2024, exacerbated the situation. To offset operational cost increases, restaurateurs are implementing strategic price adjustments, aiming to balance affordability and profitability. However, some establishments have resorted to noticeable menu price surges, attracting national attention. Despite consumers' continued desire for dining out and travel, they are making more budget-conscious choices, contributing to slower sector growth.

Locally, Newark received $1.5 million in revenue for FY 2023, with projected increases of approximately 6.67% to $1.6 million for FY 2024, reflecting modest yet steady growth expectations for FY 2025.

General Consumer Goods
The General Consumer Goods sector experienced a decline in local tax allocations across various business types during the 2023 holiday quarter, reflecting softer-than-expected performance in core retail categories. This downturn signals a tightening of family budgets, aligning with recent CPI readings indicating flat prices for core goods. Consequently, near-term outcomes are anticipated to be more influenced by shifts in consumption patterns rather than pricing dynamics.

While borrowing costs remain high and access to affordable credit has diminished, the forecast has adjusted downward for the current fiscal year. The opening of Costco in November 2023 has projected revenue increases for Newark, with $778,787 received for FY 2023, and projections of $1.89 million for FY 2024. The sooner the Federal government implements rate cuts, the sooner consumers may experience relief, potentially leading to a return to non-essential purchases. The outlook anticipates mild growth for FY 2025.

Fuel and Service Stations
The Fuel and Service Stations sector saw a decrease in the fourth quarter of 2023, largely attributed to the fluctuating prices of regular and diesel fuel. Despite the initial surge followed by a decline in oil barrel costs, which helped offset the overall reduction in sales tax, the sector experienced a downturn. A typical seasonal pattern of pump prices is expected throughout 2024 and 2025, with an anticipated boost in the spring and summer months followed by a decrease in 56 late fall and early winter. Projections suggest a slight increase in FY 2025 before stabilizing at 2% growth in subsequent years.

Food and Drugs
Despite plateauing inflation, consumer spending at grocery stores experienced a notable 5% decline in the fourth quarter of 2023. With expectations of stagnant sales, shoppers exercised restraint in their spending habits. Convenience-liquor stores faced shrinking profits, partly due to the shift towards caffeinated non-alcoholic beverages among younger adults. Additionally, the closure of several locations by a major drug store chain prompted consumers to seek alternatives, including ecommerce platforms. As this sector undergoes restructuring through closures, mergers, and efforts to rebuild consumer trust, it is expected that tax revenues will decrease in the current fiscal year before gradually rebounding in the upcoming fiscal year.

Measure GG (One-Half Cent Sales Tax)
In November 2016, voters approved Measure GG, a one-half percent transaction and use (sales) tax increase, beginning April 1, 2017. This sales tax aimed to boost general fund revenues, enabling the City to construct a new Civic Center, comprised of a Police Station, Library, and City Hall. The tax is slated to end 25 years after its collection commences, unless extended by voters. Since its implementation, the actual revenues were $8.2 million in FY 2023 and estimates include a 10.8% decrease to $7.3 million in FY 2024. Further projections indicate a further slight decrease to $7.4 million in FY 2025, followed by gradual increases in subsequent years: $7.6 million in FY 2026, $7.8 million in FY 2027, $8 million in FY 2028, and $8.2 million in FY 2029. 57 Transient Occupancy Tax
Transit Occupancy Tax (TOT) is a crucial source of revenue for the City of Newark, levied at a rate of 10% on hotel room charges. With a diverse range of accommodations, including well-known brands like Doubletree by Hilton, Homewood Suites, and Courtyard by Marriott, the City boasts a total of 11 hotels. These establishments collectively offer a substantial number of rooms, contributing to the overall tourism and hospitality sector of Newark. As a significant revenue generator, TOT plays a vital role in supporting local infrastructure, services, and community initiatives within the City.

Hotels in Newark as of May 2024 Rooms
Doubletree by Hilton 315
Homewood Suites 192
Courtyard by Marriott 181
Aloft by Marriott 172
Residence Inn (Marriott) 168
EZ8 Motel 141
Chase Suites 10
SpringHill Suites (Marriott) 119
Staybridge Suites (IHG) 104
Wyndham Garden (formerly Comfort Inn) 101
Hyatt Place 112
Transient Occupancy Tax (TOT) in Newark has demonstrated a robust recovery, indicating a healthy return to economic stability. While business and leisure travel continue to improve postpandemic, the projected 2024 TOT revenue of $5.1 million is still under pre-pandemic levels, which was $6.7 million in FY 2019. The trajectory shows the hotel industry rebounding with a $5.9 million estimate by FY 2029. This upward trend signifies a positive outlook for the City's financial health and sustainability over the long term. The consistent growth in TOT revenue reflects renewed confidence in Newark's tourism and hospitality sector, suggesting increased visitor activity and spending within the City. As TOT revenues continue to climb, Newark can anticipate enhanced funding for local infrastructure, services, and community initiatives, further reinforcing its position as a vibrant and thriving destination. 58 59
60 FIVE YEAR FORECAST
61 62
Transition to a Post-COVID Economy and Development Forecast As California emerges from the COVID-19 pandemic, the state's economy is navigating a landscape reshaped by enduring challenges and emerging opportunities. Despite the significant downturns experienced by state-wide industries such as tourism and hospitality and the tech sectors, Silicon Valley (including Newark) demonstrated resilience, continuing to thrive and bolstering the state's economic outlook. Over the next two years, important California industries are expected to continue their recovery, a testament to the state's economic resilience. One measure of this recovery and stability is exemplified by the hotel sector, particularly business travel. Although the sector has not fully recovered from pandemic-related declines, there are signs of stabilization and projections for modest growth. The end of shelter-in-place and mask mandates have allowed economic and social activities to resume, resulting in the growth of government revenues.

Local governments across California have faced unique challenges and transitions in the aftermath of COVID-19. The pandemic inflicted severe financial strain on municipal budgets, primarily due to decreased revenue from sales and Transient Occupancy (TOT) taxes, which are vital for funding public services. However, in response to these challenges, many localities have taken proactive measures, prioritizing essential services and seeking federal and state aid to mitigate financial shortfalls. As the state progresses in its recovery, local governments focus on rebuilding and enhancing their economic bases. Efforts include investing in local business development and leveraging technology to improve governmental efficiency and community engagement. This period of transition is also seeing a greater emphasis on economic diversification to build more resilient local economies that can withstand future shocks.

Area-Wide Economic Development Trends in a Post-COVID Era The pandemic accelerated certain trends that define the state’s economic recovery. Remote work, for instance, has become more prevalent, prompting a reevaluation of commercial real estate needs and contributing to a surge in suburban residential development. This shift has also spurred infrastructural changes, such as increased demand for broadband access, that present logistical challenges and growth opportunities in telecommunications and related industries.

Additionally, the pandemic has catalyzed California's commitment to green technologies, with increased investments in renewable energy and electric vehicles, supporting environmental goals and job creation.
63 Despite these positive strides, California and the Bay Area nine-county region face significant challenges. The state's economy is marked by a widening inequality gap, which the pandemic exacerbated. High living costs and disparities in health care and education access pose substantial hurdles, particularly for lower-income communities. Moreover, supply chain disruptions and labor shortages have stressed many businesses, complicating recovery efforts. Addressing these issues will require innovative policies and a concerted effort to ensure that the benefits of economic growth are widely shared, setting a sustainable path for all Californians in the postpandemic world.

As described in “2024 Silicon Valley Index”, key economic indicator trends include:
• Employment—The largest technology companies in the region continue to reduce and adjust their workforce. The overall unemployment rate in the Bay Area varies by county.

According to the State of California Employment Development Department, as of March 2024, unemployment rates range from 3.5% in San Mateo County to 4.6% in Alameda County. Newark’s unemployment rate is 4.4%.
• Commercial Space Vacancies – Office vacancy rates across the Bay Area rose to nearly 19 percent by the end of 2023, reflecting a transitioning economy and new patterns of remote work. The volume of commercial leases declined 22 percent over the previous year, leaving 31 million square feet unoccupied.
• Housing Affordability - Deep disparities in housing affordability exist across racial and ethnic groups. Eighteen (18) percent of White and 27 percent of Asian potential buyers can afford to purchase a median-priced home; this compares to only seven percent of Black or African American and nine percent of Hispanic or Latino purchasers. 64 In recent years, California has witnessed significant residential and commercial construction trends, deeply influenced by economic factors, opportunities, and challenges. Economically, construction costs remain high due to increased material and labor costs, making California one of the most expensive states in which to build new properties. The demand for housing continues to outpace supply, driven by the state's economy and relatively modest housing production.

Residential construction projects have transitioned from low-density to higher-density residential buildings. Commercial development has slowed, reacting to increases in interest rates and tighter financing conditions, making it difficult for projects to secure the necessary funding.

This is exacerbated by structural and societal changes in demand, such as remote work, the rise of e-commerce, and a downturn in commercial property values. Although there is a general atmosphere of uncertainty in the commercial real estate market, the residential sector remains relatively strong, particularly for specific housing types such as for-sale townhomes.

The housing supply constraints that accelerated during the pandemic remain a significant concern. According to the Governor’s Office, it is estimated that, over the next eight years, the State of California should be planning for 2.5 million new homes, with at least one million of those homes that meet the needs of lower-income households. This represents a yearly production of over 300,000 units per year. In reality, about 116,000 units are being built per year. 65 Local Development Activity
Similar to development and construction trends seen in California and the Bay Area region, Newark is experiencing a range of development activities across the commercial and residential sectors. As illustrated below, key commercial projects have recently commenced operations, but applications for new commercial projects have slowed. Residential development, both marketrate and affordable housing projects, remain active.

Commercial Development
Costco at NewPark Mall
In November 2023, Costco opened a 161,000-square-foot retail warehouse at NewPark Mall.

Costco replaced the former JCPenney and Burlington Coat Factory retail spaces, as well as a portion of the in-line mall area. Costco also includes a 32-pump retail gasoline station, surface automobile parking, and improvements to an adjacent parking structure. Costco is expected to generate significant sales tax revenue and is providing local employment opportunities to the community.

66 Hyatt Place Hotel
In 2023, a new Hyatt Place
Hotel began operating at
39888 Balentine Drive. This
business-oriented hotel
includes 112 guest rooms,
2,000 square feet of flexible
meeting space, a restaurant, a
lounge, a market, and an
indoor pool. This hotel will
contribute TOT revenue similar
to other Newark hotels.

Prologis Light Industrial/Warehouse – Project Under Review Prologis, a worldwide developer and owner of logistics-related industrial buildings and a significant property owner in Newark, has proposed a 315,000-square-foot flexible-use building on Central Avenue near the Union Pacific railroad tracks. This project is undergoing environmental review and may be scheduled for Planning Commission and City Council review by the end of 2024.
67 Commercial and Light-Industrial/General-Industrial development has traditionally been a strength in Newark. Since 2017, Newark has welcomed over one million square feet of advanced manufacturing, research and development logistics, and warehouse space to the community.

Recent countywide studies have shown that demand for these uses is strong in southern Alameda County. To assess future opportunities, the City is undertaking a study of our existing industrial properties and the opportunities to develop additional space and attract businesses that would bring new jobs and revenue desired by the community.

Residential Development – Affordable Housing
An important component of building an inclusive community is to provide affordable housing opportunities within Newark. The City’s General Plan 2023-2031 Housing Element and Municipal Code provide policy direction and requirements to encourage affordable housing development.

In May 2021, the City council adopted a work plan to focus City staff’s affordable housing policy and program efforts, and in October 2023, the city adopted the 2023-2031 Housing Element of the General Plan that will guide work to create more housing opportunities and support for residents in a fair and equitable manner over the next eight years.

Cedar Community Apartments
Allied Housing/Abode Services opened Cedar Community Apartments in 2023, providing 124 units of affordable housing at the former Marriot Towne Place Suite, an extended-stay hotel on Cedar Blvd. Cedar Community Apartments was made possible through a $38 million Homekey grant, a State of California program to provide affordable housing in converted hotels to lowincome households and those who are experiencing homelessness or at risk of becoming 68 homeless. In addition to the Homekey Grant, the City invested $6 million in affordable housing impact fees for the hotel site purchase and conversion to affordable housing. Cedar Community Apartments received financial support from partner agencies throughout the county, including an Alameda County grant from federal HOME Investment Partnership/American Rescue Plan Act funds. Additional support was provided by the Housing Authority of the County of Alameda in the form of 60 federally funded Project Based Vouchers available to extremely low-income veterans.

Timber Street Senior Housing
Timber Street Senior Housing, a project by Eden Housing, a prominent Bay Area affordable housing developer, hosted a groundbreaking in May 2024 at a former light-industrial site on Timber Street near Central Avenue. This development will provide 79 one-bedroom units for very low and extremely low-income seniors. On-site amenities include a community room with a kitchen, a podium courtyard with space for community garden planters, recreation, and organized activities, a computer learning center, an exercise room, a bicycle storage room, and offices to house on-site services staff. The City invested over $8 million in affordable housing impact fees and Alameda County Measure A1 housing obligation bond funds for the project.

Construction is expected to be completed in early 2026.

In addition to the imminent affordable housing projects described above, the City has approved or is considering additional affordable housing projects, including:
69 • Bayside Newark – FMC Willow: Approved in 2022, this development would include 90 affordable rental units within a distinct building with ground-floor retail in the Bayside Newark neighborhood. Construction could begin in 2025.
• Satellite Affordable Housing Associates (SAHA) – Thorton Avenue: The City is reviewing a proposal from SAHA for 57 affordable apartments with one-, two-, and three-bedroom units. The City has invested $12 million in affordable housing impact fees for this project.

Residential Development – Market-Rate Housing
Newark is a regional leader in residential development, especially considering the modest size of the City's population. In the last five years, approximately 3,800 units have been constructed or are in construction, and an additional 1,400 units have received entitlement approvals. Recently approved residential projects include:

Cedar Homes
Robson Homes received approval for a 118-unit subdivision consisting of three-story singlefamily townhomes and duplexes on a former light industrial site on Cedar Blvd. Construction commenced in early 2024.

Cedar Townhomes by Waymark
Waymark Homes received approval for an 80-unit subdivision consisting of three-story townhomes on a former light industrial site near the Cedar Homes project described above.

Construction is expected to commence in 2024.

Bayside Newark – FMC Willow
In 2022, Integral Communities received approval for a mixed-use project containing 279 marketrate townhomes in addition to the 90-unit affordable rental housing project with approximately 3,000 square feet of ground-floor retail described above. Construction could begin in 2025.

Residential Projects Under Review
In addition to the recently approved projects, the city is currently reviewing additional residential projects, as described in the following table.
70 Project Name Location Housing Type/Units
Lepakshi Homes Old Town Newark, Thorton
Avenue
88 for-sale condominiums; 13
for-sale affordable units
NewPark Plaza Cedar Blvd/Balentine Avenue 800 market-rate apartments; 200 affordable apartments
Mowry Village Mowry Avenue, west of Union
Pacific railroad tracks
202 market rate, single-family
detached homes
Specific Plans and Future Development
Over the past 20 years, Newark has prepared development visions, goals, and actions for specific neighborhoods to reimage former industrial areas with new, beneficial uses and to promote residential development on underutilized lands. The vision for these neighborhoods is contained in specific plans (as defined in the State of California Government Code) that have been adopted by the City Council and are available on the city’s website.

The earliest-adopted specific plans for Areas 3 and 4 and Bayside Newark neighborhoods have been implemented over the years and are nearing completion. These neighborhoods have been developed primarily for residential uses and active open space. Some parcels in each specific plan area remain available for development, and development is expected to continue with improving economic conditions and property owner interest.

Specific plans that have been approved in the last four years also represent the City’s vision for the physical and economic development of important areas. While earlier specific plans were focused primarily on residential development, recent plans such as the NewPark Place Specific Plan and Old Town Newark Specific Plan envision a mix of uses, residential and commercial, that will contribute to vibrant neighborhoods where the community can live, shop, work, and gather. 71 NewPark Place Specific Plan
In 2021, the City of Newark and Brookfield Properties, the owner of NewPark Mall, began implementing the NewPark Place Specific Plan.

The Plan, adopted in 2018, has the vision to transform the NewPark Mall into a vibrant, urban place with modern residential units, retail, dining opportunities, community venues, and enhanced multimodal streets and transit opportunities that will act as a premier Bay Area destination to revive the regional retail uses within the mall and act as an economic engine for the City of Newark. The Planning Commission and City Council held public hearings in June and July of 2021 to consider amendments to the Specific Plan and ultimately voted to approve the recommendations.

Brookfield Properties received entitlements for the first two development phases. The first was the Phase A Residential Project, a residential and retail mixed-use project with a total of 319 rental units (with 29 affordable units), approximately 3,700 square feet of ground floor retail, approximately 12,900 square feet of amenities such as a bike shop, clubroom, co-workspace, game room and fitness room, a pool courtyard, and enclosed parking with 506 parking stalls. The second project is a Costco warehouse and 32-pump retail fuel facility, as described earlier. These projects would serve as catalysts for the future redevelopment of NewPark Mall.

Although Costco was developed and commenced operation in 2023, the approvals for the Phase A residential project expired as of mid-2023. Negative economic trends, generally described above, contributed to the property owner's decision to pause residential development in the specific plan area. Future development will require new entitlements. Economic trends, particularly for regional malls, represent significant challenges to redeveloping large retail spaces in an environment where many transactions are performed and fulfilled online. The City will monitor trends, and, as before, adapt to changes in the economic environment to further our specific plan vision and goals.
72 Old Town Newark Specific Plan
The vision of this specific plan is to
revitalize Old Town Newark as a vibrant
mixed-use neighborhood, with a strong
sense of place, thriving retail and
commercial businesses, a range of housing
choices for existing and future residents, a
streetscape that prioritizes bicycles and
pedestrians, and public space that allow
community members to gather with their
neighbors.

The Old Town Specific Plan brings together
over 30 years of planning and analysis of the Old Town neighborhood to identify a grand vision that is supported by clear, realistic steps for implementation.

Relatively low commercial and residential rents have benefited small businesses. However, these low rents have prevented revitalization goals expressed in previous planning documents. Also, high construction costs are a burden for development. The specific plan implements longstanding goals for revitalization, including new multi-family and residential mixed-use development, by responding to current market conditions and State housing requirements. At the same time, the specific plan provides steps to maintain existing housing stock and avoid displacement of existing residents and businesses.
73 A key aspect of the specific plan isthe planned Streetscape Improvement Project. The streetscape plan for Thornton Avenue in Old Town will catalyze revitalization. The streetscape plan will complement improvements in the private realm and create a safe, attractive destination for residents and visitors, whether on bike, foot, or in a vehicle. Thornton Avenue will be narrowed from four lanes to two lanes to promote slower vehicle speeds; dedicated bike lanes will be established; sidewalks will be expanded and new curb ramps will be installed to improve pedestrian access and allow outdoor seating; and enhanced lighting, landscaping, public art, and open plazas will be added to create new public spaces encouraging people to gather together in their community.

The streetscape project is partially funded from several grant sources, including the Metropolitan Transportation Commission’s (MTC) One Bay Area Grant 3 (OBAG 3) program, Regional Measure 3 (RM3), Bay Area Air Quality Management District’s (BAAQMD) Transportation Fund for Clean Air (TFCA) administered by the Alameda County Transportation Commission (Alameda CTC), and State funding secured by Assemblymember Alex Lee. Streetscape construction is e x p ected to commence in 2025.

Thefollowing chartlists the variousfederal and local dollars earmarked for theThornton Avenue Complete Streetsproject:
74 Summary
The City of Newark is recovering and adapting to a post-COVID economic landscape. The Bay Area region has shown resilience, particularly in the technology sector, to adapt to changing economic and societal changes. Resilience is set against a backdrop of evolving work patterns, notably the shift toward remote work that has reshaped commercial real estate demands and fueled suburban residential growth.

Significant challenges are faced by local governments in managing the fiscal impacts of the pandemic, with decreased revenues from sales taxes and Transient Occupancy Taxes putting strain on municipal budgets. In response, the City has prioritized essential services and leveraged federal and state aid to bridge financial gaps, all while making strategic investments to enhance our economic foundation.

Economically, construction costs remain high due to increased material and labor costs, making California one of the most expensive states in which to build new properties. The demand for housing continues to outpace supply, driven by the state's economy and relatively modest housing production. Residential construction projects have transitioned from low-density to higher-density residential buildings. Commercial development has slowed, reacting to increases in interest rates and tighter financing conditions, making it difficult for projects to secure the necessary funding. This is exacerbated by structural and societal changes in demand, such as remote work, the rise of e-commerce, and a downturn in commercial property values.

Residential development, for both market-rate and affordable units, remains strong. Numerous residential projects have been approved and constructed, with additional projects under consideration.

Although important commercial projects have been built, the City has fewer proposals for new development, likely due to the challenging economic and financing conditions.

Looking forward, the City’s previously adopted specific plans provide development visions for specific Newark neighborhoods, which provide common visions and clear goals, policies, and actions for future development.
75 76
All Funds Summary
The All Funds Summary is comprised of all City funds which total all City revenues and expenditures.

The City’s Budget consists of the General Fund, Cost Centers, Special Revenue Funds, Internal Service Funds, and Capital Projects Funds. These funds are combined in this summary and include both Operating and Capital budgets.

The revenue budget is approximately $106.6 million for FY 2025, a 10.7% decrease from FY 2024 projected revenues of $119.3 million. This substantial decrease is due to a $12 million transfer into the General Fund from the Pension Reserve Fund for the Section 115 Trust in FY 2024. FY 2026 projected revenue of $105.2 million is budgeted to be 4.7% less than FY 2025.

The expenditure budget of $105.1 million in FY 2025 is projected to be 11.9% lower than the FY 2024 estimate of $119.2 million. FY 2024 expenditures include a $12 million payment into the Pension Section 115 Trust. FY 2026 is budgeted to be $100.1 million, or 4.7% less than FY 2025. $119.3
$106.6
$105.2
$119.2
$105.1
$100.1
$90.0
$95.0
$100.0
$105.0
$110.0
$115.0
$120.0
$125.0
2024 Estimate 2025 Budgeted 2026 Budgeted
Millions
Total Revenues & Expenditures - All Funds
(including Transfers)
FY 2025 & FY 2026
Revenue
Expenditures
77 The charts below reflect each cost center’s percentage of citywide expenditures. The FY 2025 expenditure appropriations in the General Fund are 55.2% and in FY 2026 are 59.6% of the City’s Operating and Capital budget. Capital Funds make up the second largest portion of citywide expenditures, appropriating 12.3% of the budget in FY 2025 and 9.4% in FY 2026. Vacancy savings reduce total expenditures for each fiscal year, and is based on a 12% vacancy factor over total personnel costs which is budgeted for all authorized positions.

General Fund, 55.2%
Capital Funds, 12.3%
Internal Service Funds (ISF), 8.3%
Development Cost Center , 8.0%
Maintenance Cost Center, 7.0%
Recreation Cost Center , 6.3%
Debt Service Fund, 4.6%
Special Revenue, 2.6%
Impact Fee Funds, 0.5% Vacancy Savings, -4.8%
FY 2025 Citywide Expenditures
General Fund, 59.6%
Capital Funds, 9.4%
Internal Service Funds (ISF), 8.6%
Development Cost Center, 7.7%
Maintenance Cost Center, 6.8%
Recreation Cost Center, 4.9%
Debt Service Fund, 4.8%
Special Revenue, 2.3%
Impact Fee Funds, 1.1%
Vacancy Savings, -5.2%
FY 2026 Citywide Expenditures
78 General Fund Summary
The City’s General Fund operating revenues (before transfers) are budgeted at $84.8 million for FY 2025 and $87.2 million for FY 2026. This reflects a 3.1% increase between FY 2025 and FY 2024 projected revenues of $82.2 million, and a 2.9% increase between FY 2026 budgeted revenues over FY 2025.

General Fund operating expenditures (before transfers) are $80.4 million for FY 2025 and $82.7 million for FY 2026. FY 2025 budgeted expenditures are projected to be approximately 7.7% lower than FY 2024, as FY 2024 includes payment for the $12 million Pension Section 115 Trust.

FY 2026 is budgeted to be 2.9% more than FY 2025.
$82.2
$84.8
$87.2 $87.1
$80.4
$82.7
$76.0
$78.0
$80.0
$82.0
$84.0
$86.0
$88.0
2024 Estimate 2025 Budgeted 2026 Budgeted
Millions
General Fund Operating Revenues & Expenditures
FY 2024, FY 2025, FY 2026
Revenue
Expense
79 80
Including transfers, net FY 2025 operating expenditures are $83.0 million, and includes a transfer of $4.8 million to the Debt Service Fund. Transfers-in from other Special Revenues to help fund operations are $257 thousand in FY 2025 and $100 thousand in FY 2026. For FY 2026, net operating expenditures are $85.4 million and includes the $4.8 million transfer to the Debt Service Fund.
$100.1
$85.0 $87.3
$94.4
$83.0 $85.4
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
2024 Estimate 2025 Budgeted 2026 Budgeted
Millions
General Fund Operating Revenues & Expenditures,
Including Transfers
FY 2024, FY 2025, FY 2026
Revenue
Expense
81 FY 2025 General Fund Revenue
The City of Newark’s FY 2025 budgeted Operating Revenues are $84.8 million for FY 2025 and represents a 3.1% increase over FY 2024 projections of $82.2 million. Property tax continues to serve as the City’s most stable source of revenue, accounting for 39.5% of total revenues and is expected to be $33.5 million, which is an increase of 7.9% over FY 2024. Sales and the Half-cent Sales Tax (Measure GG) of $23.8 million combined accounts for 28.1% of total revenue and is budgeted to be 2.9% higher than the previous fiscal year. Accounting for 6.2% of total revenue is Transient Occupancy Tax (TOT) at $5.2 million and is expected to increase 3% in FY 2025. Utility Users Tax (UUT), making up 5.3% of total revenue at $4.5 million, is expected to grow 1.7% over the prior year. Other taxes, comprised of Business License Tax and Property Transfer Tax, is budgeted to remain flat.

General Fund, License and Permit fees account for 10.3% of total operating revenue and is budgeted to be $8.7 million, compared to $9 million in FY 2024. This decrease is in part due to the exclusion of Landscape and Lighting Maintenance revenue which will be added in the budget separately. Charges for Recreation Services, accounting for 2.6% of operating revenue, is budgeted to remain flat at $2.2 million between FY 2025 and FY 2024. Use of Money is budgeted to be $4.0 million for FY 2025, and accounts for 4.7% of total General Fund Revenue. This includes budgeted investment earnings of $3.5 million and $400 thousand of rent and concession revenue.

By comparison, FY 2024 projections are $4.6 million, comprised of $4.2 million of investment earnings and $390 thousand of rent and concessions revenue. 82 FY 2025 General Fund Expenditures
The General Fund expenditures budget in FY 2025 is at $83.0 million, which is lower than the projected $94.4 million for FY 2024 because FY 2024 includes a $12 million payment to establish the Section 115 Trust to address the pension obligation. A similar payment is not planned in FY 2025. Of the total $83.0 million of budgeted operating expenditures, $37.8 million, or 45.6%, is attributable to personnel expenditures, which was increased in FY 2025 to reflect cost of living increases and higher benefit and pension costs. The remaining half of expenditures include department materials and supplies, contractual services, utility costs, travel and training, and internal service fund allocations. Non-personnel expenditures are budgeted to be higher than FY 2024 projections due to a combination of higher department program needs (such as expanding Emergency Services and Human Services), added expenditures for the Newark Resource Center, and inflationary costs.
83 FY 2026 General Fund Revenue
General Fund revenues budgeted in FY 2026 is at $87.2 million and represents a 3% increase over FY 2025. FY 2026 property tax of $34.4 million is budgeted to increase 4.4% over FY 2025.

Accounting for the second highest largest revenue source, is Sales and the half-cent Sales Tax (Measure GG) of $24 million, which is budgeted to be 2.9% higher than FY 2025. Transient Occupancy Tax (TOT), which is 6.2% of total revenue, is budgeted to be $5.4 million and is an increase of 3% over FY 2025. Utility Users Tax (UUT), making up 5.2% of total revenue at $4.5 million, is budgeted to remain flat. Combined Business License Tax and Property Transfer Tax at $1.7 million is also budgeted to remain flat between FY 2026 and FY 2025.

General Fund non-tax revenue, Licenses and Permits account for 10.5% of total operating revenue and is budgeted to be $9.2 million for FY 2026, compared to $8.7 million in FY 2025. This increase of $500k is due to anticipated higher franchise fees and construction permit revenue. Charges for Recreation Services, accounting for 2.6% of operating revenue in FY 2026 is budgeted to remain flat at $2.3 million. Use of Money is expected to be $3.5 million for FY 2026, and accounts for 4% of total General Fund Revenue. This includes budgeted investment earnings of $3.1 million and $400 thousand of rent and concession revenue.
84 FY 2026 General Fund Expenditures
The FY 2026 General Fund expenditure are budgeted at $85.4 million and is 2.9% higher compared to budgeted expenditures in FY 2025. Of this total, 45.2% or $38.6 million, is attributable to personnel expenditures, which increased an average of 2.1% compared to FY 2025.

The remaining $46.8 million of non-personnel expenditures increased slightly 3.6% compared to FY 2025, due mainly to anticipated inflation.
85 CITY OF NEWARK PROJECTED FUND BALANCES (in thousands) Fund Name Fund Balance/
Net Position
FY2023
Projected
Revenues/
Transfers
FY2024
Projected
Expenditures/
Transfers
FY2024
Projected
Fund Balance/
Net Position
FY2024

GOVERNMENTAL FUNDS
GENERAL FUND:

Non-Spendable $ 155 - - $ 155
General Fund - Pension/OPEB Reserve 12,388 - (12,000) 388 Equipment Replacement 6,200 - - 6,200
Emergency Reserve 11,430 - - 11,430
Fiscal Uncertainty Reserve 10,725 - - 10,725
Total General Fund Reserves $ 40,899 $ - $ (12,000) $ 28,899 General Fund Operating
Paramedic Tax 1,448 264 - 1,712
Measure GG 11,631 7,283 (7,283) 11,631
Unallocated 12,686 91,576 (91,350) 12,912
Total General Fund Operating $ 25,766 $ 99,123 $ (98,633) $ 26,256 MAJOR FUNDS:

ARPA - 5,170 (5,170) -
Public Safety Impact Fees 949 639 - 1,588
Community Service Impact Fees 722 392 (45) 1,069
Traffic Impact Fees 12,601 1,185 (2,593) 11,193
Housing Impact Fees 44,593 131 (72) 44,652
Park Impact Fees 5,806 1,786 (266) 7,326
Development Maintenance Fees 4,203 805 (1,120) 3,888
Measure B - 1986 ACTIA Fund (2,560) - (888) (3,448)
Art in Public Places 1,943 32 (145) 1,830
Capital Projects Fund 16,116 8,090 (3,317) 20,889
Public Financing Authority 86 4,821 (4,821) 86
Total Major Funds $ 84,459 $ 23,051 $ (18,437) $ 89,073 NON-MAJOR FUNDS 16,010 6,308 (11,091) 11,228
TOTAL GOVERNMENTAL FUNDS $ 167,134 $ 128,482 $ (140,161) $ 155,455

PROPRIETARY FUNDS
INTERNAL SERVICES FUNDS:

Equipment Replacement $ 5,192 $ 700 $ (2,300) $ 3,592
Information Technology - - - -
Equipment Operations 1,279 611 (1,382) 508
Building Maintenance 2,452 2,913 (3,406) 1,959
Office Support 55 100 (160) (5)
Public Liability Self-Insurance 549 2,823 (2,027) 1,345 Worker's Compensation Self-Insurance 1,620 800 (1,111) 1,309 Total Internal Service Funds $ 11,148 $ 7,947 $ (10,386) $ 8,709 TOTAL FUNDS $ 178,282 $ 136,429 $ (150,547) $ 164,164
86 Projected
Revenues/
Transfers
FY2025
Projected
Expenditures/
Transfers
FY2025
Estimated Fund
Balance/Net
Position
FY2025
Projected
Revenues/
Transfers
FY2026
Projected
Expenditures/
Transfers
FY2026
Estimated Fund
Balance/Net
Position
FY2026
- - $ 155 - - $ 155
- - 388 - - 388
- - 6,200 - - 6,200
- - 11,430 - - 11,430
- - 10,725 - - 10,725
$ - $ - $ 28,899 $ - $ - $ 28,899
270 - 1,982 276 - 2,258
7,430 (7,430) 11,631 7,623 (7,623) 11,631
77,316 (75,582) 14,646 79,419 (77,806) 16,259
$ 85,016 $ (83,012) $ 28,259 $ 87,318 $ (85,429) $ 30,148 257 (257) - - - -
435 - 2,023 435 - 2,458
278 (47) 1,300 278 (49) 1,529
881 (2,656) 9,418 881 (2,731) 7,568
130 (74) 44,708 130 (77) 44,761
100 (273) 7,153 100 (281) 6,972
593 (1,371) 3,110 593 (1,400) 2,303
- (910) (4,358) - (936) (5,294)
32 (224) 1,638 32 (231) 1,439
3,600 (6,764) 17,725 - - 17,725
4,818 (4,818) 86 4,824 (4,824) 86
$ 11,124 $ (17,394) $ 82,803 $ 7,273 $ (10,529) $ 79,547 9,282 (13,752) 6,758 5,145 (9,832) 2,071
$ 105,422 $ (114,158) $ 146,719 $ 99,736 $ (105,790) $ 140,665 $ 1,000 $ (109) $ 4,483 $ 1,000 $ (110) $ 5,373
500 - 500 500 - 1,000
1,400 (1,379) 530 1,400 (1,424) 506
3,597 (3,402) 2,154 3,601 (3,512) 2,243
160 (167) (12) 160 (175) (27)
2,000 (2,198) 1,147 2,500 (2,653) 994
1,200 (1,296) 1,213 1,200 (1,334) 1,079
$ 9,857 $ (8,551) $ 10,015 $ 10,361 $ (9,208) $ 11,168
$ 115,279 $ (122,709) $ 156,734 $ 110,097 $ (114,998) $ 151,833 87 SUMMARY OF BUDGETED REVENUES
Fiscal Years 2023, 2024, 2025 and 2026
Code Revenue by Source 2023 Actual 2024 Budgeted 2024 Estimate 2025 Budgeted 2026 Budgeted

OPERATING REVENUE

TAXES - PROPERTY, SALES, OTHER
4010 Current Secured 20,595,000 22,347,000 22,348,000 24,219,000 25,277,000 4011 Current Secured - VLF 6,462,000 7,152,000 7,153,000 7,479,000 7,803,000 4012 Current Unsecured 997,000 970,000 1,204,000 1,301,000 1,358,000 4013 Prior Secured 193,000 118,000 169,000 - -
4014 Prior Unsecured -9,000 30,000 34,000 - -
4015 Supplemental 415,000 111,000 506,000 470,000 466,000 4016 Penalties 79,000 - 21,000 - -
4017 RDA -169,000 -231,000 -510,000 - -
4019 Paramedic Parcel Tax 266,000 233,000 264,000 270,000 276,000 4020 Sales & Use Taxes 17,352,000 15,170,000 15,481,000 15,926,000 16,390,000 4021 1/2 Cents Sales Tax (Measure GG) 8,163,000 7,283,000 7,283,000 7,430,000 7,623,000 4030 Transient Occupancy Tax 4,932,000 5,289,000 5,086,000 5,239,000 5,397,000 4040 Utility User Tax 4,219,000 4,371,000 4,371,000 4,459,000 4,549,000 4050.110 Business License 1,399,000 1,521,000 1,419,000 1,537,000 1,553,000 4050.120 Business License - Penalties 74,000 - 45,000 - - 4050.130 Business License - Registration 88,000 - 81,000 - - 4053 Documentary Transfer Tax 640,000 595,000 342,000 186,000 198,000 Subtotal 65,696,000 64,959,000 65,297,000 68,516,000 70,890,000

LICENSES & PERMITS
4101 Franchise Fees 4,731,000 4,873,000 4,855,000 5,072,000 5,299,000 4101.140 PEG Fees 68,000 50,000 56,000 57,000 59,000
4102 SB1186 $1 State Fee 10,000 - - - -
4103 Animal License 8,000 9,000 9,000 10,000 11,000
4104 Document Reproduction & Certification 14,000 - 11,000 11,000 12,000 4105 Records Automation fee 104,000 100,000 105,000 95,000 100,000 4120 Spec NPD Fees-False Alarms 38,000 30,000 33,000 33,000 34,000 4122 Spec NPD Fees-Towing Administration 48,000 25,000 42,000 28,000 28,000 4123 Abandoned Vehicle Abatement 69,000 20,000 45,000 45,000 46,000 4125 Spec NPD Fees-Miscellaneous 22,000 - 4,000 4,000 5,000 4130 Special Fire Fee 6,000 7,000 6,000 - -
4132 Spec FD Fee-Fire Permits 102,000 118,000 90,000 90,000 92,000 4135 Spec FD Fee Miscellaneous 2,000 - 2,000 2,000 2,000 4140 Home Occupation Fee 22,000 11,000 20,000 20,000 21,000 4141 Zoning Fee 221,000 200,000 200,000 200,000 204,000 4142 Code Enforcement 196,000 10,000 -109,000 - -
4150 Bldg. Construction Permits 1,267,000 1,680,000 1,448,000 1,300,000 1,450,000 4151 Bldg. Permit Application Fee 109,000 70,000 96,000 80,000 85,000 4152 Bldg. Plan Review Fees 849,000 800,000 786,000 625,000 700,000 4154.110 Alarm User Permit 3,000 4,000 2,000 2,000 3,000 4154.120 Alarm User Permit - Renewal 6,000 2,000 4,000 4,000 5,000 4155 Strong Motion Fees 2,000 - 2,000 2,000 3,000
4156 Building Standards Fee 1,000 - 1,000 1,000 2,000
4157 Street & Curb Permit 192,000 250,000 250,000 230,000 235,000 4158 Plan Checking Fee 216,000 325,000 284,000 320,000 327,000 4159 Maintenance Fee 78,000 - 92,000 76,000 78,000
4160 Maintenance-Utility Charges 4,000 - 5,000 5,000 6,000 4161 Stormwater Quality Control Plan - 5,000 7,000 7,000 7,000 4162 Storm Drain Fees 521,000 510,000 505,000 510,000 510,000 4163 Weed Abatement Fee 9,000 4,000 10,000 10,000 11,000 4164 Landscape & Lighting Maintenance 303,000 574,000 407,000 - - 4165 EV Charging Fee 13,000 - 14,000 14,000 15,000
4199 Other Licenses & Permits 15,000 11,000 9,000 9,000 11,000 Subtotal 9,249,000 9,688,000 9,291,000 8,862,000 9,361,000 88 SUMMARY OF BUDGETED REVENUES
Fiscal Years 2023, 2024, 2025 and 2026
Code Revenue by Source 2023 Actual 2024 Budgeted 2024 Estimate 2025 Budgeted 2026 Budgeted

FINES & FORFEITURES
4610 Vehicle Code Fines 505,000 588,000 483,000 488,000 493,000 4611 Parking Fines 35,000 40,000 19,000 20,000 21,000
4612 Other Fines 1,000 6,000 6,000 7,000 8,000
Subtotal 541,000 634,000 508,000 515,000 522,000

USE OF MONEY & PROPERTY
4880 Investment Earnings 3,400,000 3,587,000 4,217,000 3,600,000 3,100,000 4881 Sweep Invest Earnings 2,000 - - - -
4893 Silliman Concession 21,000 140,000 19,000 24,000 28,000 4891 Silliman Center Rentals 312,000 368,000 368,000 375,000 380,000 Subtotal 3,735,000 4,095,000 4,604,000 3,999,000 3,508,000

INTERGOVERNMENTAL
4701 Motor Vehicle-In-Lieu 49,000 57,000 59,000 48,000 48,000 4703 Prop 172 Public Safety Sales Tax 450,000 454,000 462,000 448,000 457,000 4704 Homeowner Relief 101,000 98,000 103,000 100,000 100,000 4705 Other State Grants 28,000 10,000 95,000 - -
4720-4725 State Gasoline Tax 848,000 1,060,000 877,000 889,000 908,000 4742 Federal & County Grants 331,000 275,000 338,000 338,000 338,000 4750 POST Reimbursement 37,000 30,000 96,000 30,000 30,000 4790 Miscellaneous Services 82,000 228,000 34,000 - -
4791 County Grants/Reimbursements 188,000 52,000 52,000 - - 4792 Other State Grants 317,000 5,135,532 814,402 4,279,000 238,000 4793 Federal Grants 3,169,000 228,000 5,215,000 302,000 45,000 4795 Donations 11,000 - 1,000 - -
Subtotal 5,611,000 7,627,532 8,146,402 6,434,000 2,164,000

CHARGES FOR SERVICES
4180 General Recreation Services 355,000 466,000 520,000 530,000 553,000 4181 Silliman General Aquatic Program 276,000 300,000 458,000 468,000 478,000 4182 Silliman Center General Admission 521,000 548,000 548,000 559,000 571,000 4183 Silliman Contract Classes 203,000 350,000 308,000 315,000 323,000 4185 Community Center Building Rental 57,000 67,000 36,000 23,000 24,000 4186 Child Care Activity 284,000 440,000 307,000 314,000 321,000 4187 Preschool Activity 19,000 45,000 22,000 23,000 24,000 4189 Senior Center Contract Classes 9,000 22,000 7,000 8,000 9,000 4190 Recreation Processing Fee 4,000 - 4,000 5,000 6,000 Subtotal 1,728,000 2,238,000 2,210,000 2,245,000 2,309,000

OTHER REVENUES
4905 Settlement-Court Cases 105,000 - - - -
4910 Landscape & Lighting Contract Admin Fee 72,000 173,862 104,000 - - 4990 Other Revenue 168,000 110,000 180,000 151,000 156,000 4995 Misc Reimbursement 48,000 6,000 105,000 - -
4997 Proceeds From Asset Disposition 9,000 - 156,000 - - 4998 Cash Short/Over - - - - -
Subtotal 402,000 289,862 545,000 151,000 156,000
SUBTOTAL GENERAL AND SPECIAL REVENUE FUNDS 86,962,000 89,531,394 90,601,402 90,722,000 88,910,000 TOTAL GENERAL AND SPECIAL REVENUE FUNDS 86,962,000 89,531,394 90,601,402 90,722,000 88,910,000 89 90

SUMMARY OF BUDGETED REVENUES
Fiscal Years 2023, 2024, 2025 and 2026
Code Revenue by Source 2023 Actual 2024 Budgeted 2024 Estimate 2025 Budgeted 2026 Budgeted

CAPITAL FUNDS

REVENUE FROM OTHER AGENCIES
4723 State Gasoline Tax 337,000 390,000 395,000 403,000 412,000 4725 HUTA RMRA SB1 1,058,000 1,114,000 1,137,000 1,165,000 1,189,000 4730 Measure D Revenue 174,000 134,000 134,000 134,000 134,000 4740-4743 Measure BB/F 1,863,000 1,564,000 1,786,000 1,817,000 1,817,000 4790 Other Governmental Agencies - - - - -
4793 Federal/County Grants 46,000 411,022 175,000 152,251 - 4995 Misc Reimbursement - - 380,000 - -
Subtotal 3,478,000 3,613,022 4,007,000 3,671,251 3,552,000

IMPACT FEES
4143 Park Impact Fees 261,000 442,000 1,786,000 100,000 100,000 4144 Development Impact Fees 2,671,000 5,238,000 2,347,000 1,724,000 1,724,000 4145 Community Development Maint. Fees 552,000 11,000 771,000 593,000 593,000 4146 Art In Public Places 28,000 20,000 32,000 32,000 32,000 Subtotal 3,512,000 5,711,000 4,936,000 2,449,000 2,449,000 SUBTOTAL CAPITAL FUNDS REVENUE 6,990,000 9,324,022 8,943,000 6,120,251 6,001,000 TOTAL CAPITAL FUNDS REVENUE 6,990,000 9,324,022 8,943,000 6,120,251 6,001,000

INTERNAL SERVICE FUNDS

OTHER REVENUES
4980 ISF Charges from Other Departments 7,800,000 7,800,000 7,800,000 9,762,000 10,262,000 4990 Other Revenue - - 1,000 - -
Subtotal 7,800,000 7,800,000 7,801,000 9,762,000 10,262,000 SUBTOTAL INTERNAL SERVICE REVENUE 7,800,000 7,800,000 7,801,000 9,762,000 10,262,000 TOTAL INTERNAL SERVICE REVENUE 7,800,000 7,800,000 7,801,000 9,762,000 10,262,000 TOTAL REVENUE - ALL FUNDS 101,752,000 106,655,416 107,345,402 106,604,251 105,173,000

REVENUE SUMMARY RECAP
General and Special Revenue Funds 86,962,000 89,531,394 90,601,402 90,722,000 88,910,000 Capital Funds Revenue 6,990,000 9,324,022 8,943,000 6,120,251 6,001,000 Internal Service Fund Revenue 7,800,000 7,800,000 7,801,000 9,762,000 10,262,000 TOTAL REVENUE - ALL FUNDS 101,752,000 106,655,416 107,345,402 106,604,251 105,173,000 91 SUMMARY OF BUDGETED REVENUES
ALL FUNDS - Fiscal Year 2025
Code Revenue by Source General
Development Cost
Center
Recreation Cost
Center
Maintenance
Cost Center Total Operating
Special Revenue,
Capital Funds & Other
Funds

TAXES-PROPERTY, SALES, OTHER
4010 Current Secured 24,219,000 - - - 24,219,000 -
4011 Current Secured - VLF 7,479,000 - - - 7,479,000 -
4012 Current Unsecured 1,301,000 - - - 1,301,000 -
4015 Supplemental 470,000 - - - 470,000 -
4019 Paramedic Parcel Tax 270,000 - - - 270,000 -
4020 Sales & Use Taxes 15,926,000 - - - 15,926,000 -
4021 1/2 Cents Sales Tax (Measure GG) 7,430,000 - - - 7,430,000 - 4030 Transient Occupancy Tax 5,239,000 - - - 5,239,000 - 4040 Utility User Tax 4,459,000 - - - 4,459,000 -
4053 Documentary Transfer Tax 186,000 - - - 186,000 -
4050.110 Business License 1,537,000 - - - 1,537,000 -
Subtotal 68,516,000 - - - 68,516,000 -

LICENSES, PERMITS & FEES
4101 Franchise Fees 5,072,000 - - - 5,072,000 -
4101.140 PEG Fees - - - - - 57,000
4103 Animal License 10,000 - - - 10,000 -
4104 Sale of Maps & Publications 11,000 - - - 11,000 -
4105 Records Automation fee - 95,000 - - 95,000 -
4120 Spec NPD Fees-False Alarms 33,000 - - - 33,000 -
4122 Spec NPD Fees-Towing Administration 28,000 - - - 28,000 - 4123 Abandoned Vehicle Abatement 45,000 - - - 45,000 -
4125 Spec NPD Fees-Miscellaneous 4,000 - - - 4,000 -
4132 Spec FD Fee-Fire Permits 90,000 - - - 90,000 -
4135 Spec FD Fee Miscellaneous 2,000 - - - 2,000 -
4140 Home Occupation Fee - 20,000 - - 20,000 -
4141 Zoning Review Fee - 200,000 - - 200,000 -
4150 Bldg. Construction Permits - 1,300,000 - - 1,300,000 - 4151 Bldg. Permit Application Fee - 80,000 - - 80,000 - 4152 Bldg Plan Review Fees - 625,000 - - 625,000 -
4154.110 Alarm User Permit 2,000 - - - 2,000 -
4154.120 Alarm User Permit - Renewal 4,000 - - - 4,000 - 4155 Strong Motion Fees - - - - - 2,000
4156 Building Standards Fee - - - - - 1,000
4157 Street & Curb Permit - 230,000 - - 230,000 -
4158 Plan Checking Fee - 320,000 - - 320,000 -
4159 Maintenance Fee - - - - - 76,000
4160 Maintenance-Utility Charges - - - - - 5,000
4161 Stormwater Quality Control Plan - 7,000 - - 7,000 - 4162 Storm Drain Fees - - - 510,000 510,000 -
4163 Weed Abatement Fee - - - 10,000 10,000 -
4165 EV Charging Fee - - - - - 14,000
4199 Other Licenses & Permits 2,000 7,000 - - 9,000 -
Subtotal 5,303,000 2,884,000 - 520,000 8,707,000 155,000

CHARGES FOR SERVICES
4180 General Recreation Services - - 530,000 - 530,000 - 4181 Silliman General Aquatic Program - - 468,000 - 468,000 - 4182 Silliman Center General Admission - - 559,000 - 559,000 - 4183 Silliman Contract Classes - - 315,000 - 315,000 -
4185 Community Center Building Rental - - 23,000 - 23,000 - 4186 Child Care Activity - - 314,000 - 314,000 -
4187 Preschool Activity - - 23,000 - 23,000 -
4189 Senior Center Contract Classes - - 8,000 - 8,000 - 4190 Recreation Processing Fee - - 5,000 - 5,000 -
Subtotal - - 2,245,000 - 2,245,000 -
92 SUMMARY OF BUDGETED REVENUES
ALL FUNDS - Fiscal Year 2025
Code Revenue by Source General
Development Cost
Center
Recreation Cost
Center
Maintenance
Cost Center Total Operating
Special Revenue,
Capital Funds & Other
Funds

FINES & FORFEITURES
4610 Vehicle Code Fines 488,000 - - - 488,000 -
4611 Parking Fines 20,000 - - - 20,000 -
4612 Other Fines 7,000 - - - 7,000 -
Subtotal 515,000 - - - 515,000 -

INTERGOVERNMENTAL
4701 Motor Vehicle-In-Lieu 48,000 - - - 48,000 -
4703 Prop 172 Public Safety Sales Tax 448,000 - - - 448,000 - 4704 Homeowner Relief 100,000 - - - 100,000 -
4720-4725 State Gasoline Tax - - - - - 1,292,000
4725 HUTA RMRA SB1 - - - - - 1,165,000
4730 Measure D Revenue - - - - - 134,000
4740-4743 Measure BB/F - - - - - 2,155,000
4750 POST Reimbursement 30,000 - - - 30,000 -
4792 Other State Grants/Reimbursements - - - - - 4,279,000 4793 Federal Grants/Awards - - - - - 454,251
Subtotal 626,000 - - - 626,000 9,479,251

USE OF MONEY & PROPERTY
4880 Investment Earnings 3,600,000 - - - 3,600,000 -
4891 Silliman Center Rentals - - 375,000 - 375,000 -
4893 Silliman Concession - - 24,000 - 24,000 -
Subtotal 3,600,000 - 399,000 - 3,999,000 -

IMPACT FEES
4143 Park Impact Fees - - - - - 100,000
4144 Development Impact Fees - - - - - 1,724,000
4145 Community Development Maint. Fees - - - - - 593,000 4146 Art In Public Places - - - - - 32,000
Subtotal - - - - - 2,449,000

OTHER REVENUES
4980 ISF Charges from Other Departments - - - - - 9,762,000 4990 Other Revenue - 151,000 - - 151,000 -
Subtotal - 151,000 - - 151,000 9,762,000
TOTAL REVENUE 78,560,000 3,035,000 2,644,000 520,000 84,759,000 21,845,251

FUND APPROPRIATIONS & TRANSFERS
4999 From Special Revenue Fund 100,000 - 157,000 - 257,000 4,818,000 TOTAL 78,660,000 3,035,000 2,801,000 520,000 85,016,000 26,663,251 93 SUMMARY OF BUDGETED REVENUES
ALL FUNDS - Fiscal Year 2026
Code Revenue by Source General
Development Cost
Center
Recreation Cost
Center
Maintenance
Cost Center Total Operating
Special Revenue,
Capital Funds & Other
Funds

TAXES-PROPERTY, SALES, OTHER
4010 Current Secured 25,277,000 - - - 25,277,000 -
4011 Current Secured - VLF 7,803,000 - - - 7,803,000 -
4012 Current Unsecured 1,358,000 - - - 1,358,000 -
4015 Supplemental 466,000 - - - 466,000 -
4019 Paramedic Parcel Tax 276,000 - - - 276,000 -
4020 Sales & Use Taxes 16,390,000 - - - 16,390,000 -
4021 1/2 Cents Sales Tax (Measure GG) 7,623,000 - - - 7,623,000 - 4030 Transient Occupancy Tax 5,397,000 - - - 5,397,000 - 4040 Utility User Tax 4,549,000 - - - 4,549,000 -
4053 Documentary Transfer Tax 198,000 - - - 198,000 -
4050.110 Business License 1,553,000 - - - 1,553,000 -
Subtotal 70,890,000 - - - 70,890,000 -

LICENSES, PERMITS & FEES
4101 Franchise Fees 5,299,000 - - - 5,299,000 -
4101.140 PEG Fees - - - - - 59,000
4103 Animal License 11,000 - - - 11,000 -
4104 Sale of Maps & Publications 12,000 - - - 12,000 -
4105 Records Automation fee - 100,000 - - 100,000 -
4120 Spec NPD Fees-False Alarms 34,000 - - - 34,000 -
4122 Spec NPD Fees-Towing Administration 28,000 - - - 28,000 - 4123 Abandoned Vehicle Abatement 46,000 - - - 46,000 -
4125 Spec NPD Fees-Miscellaneous 5,000 - - - 5,000 -
4132 Spec FD Fee-Fire Permits 92,000 - - - 92,000 -
4135 Spec FD Fee Miscellaneous 2,000 - - - 2,000 -
4140 Home Occupation Fee - 21,000 - - 21,000 -
4141 Zoning Review Fee - 204,000 - - 204,000 -
4150 Bldg. Construction Permits - 1,450,000 - - 1,450,000 - 4151 Bldg. Permit Application Fee - 85,000 - - 85,000 - 4152 Bldg Plan Review Fees - 700,000 - - 700,000 -
4154.110 Alarm User Permit 3,000 - - - 3,000 -
4154.120 Alarm User Permit - Renewal 5,000 - - - 5,000 - 4155 Strong Motion Fees - - - - - 3,000
4156 Building Standards Fee - - - - - 2,000
4157 Street & Curb Permit - 235,000 - - 235,000 -
4158 Plan Checking Fee - 327,000 - - 327,000 -
4159 Maintenance Fee - - - - - 78,000
4160 Maintenance-Utility Charges - - - - - 6,000
4161 Stormwater Quality Control Plan - 7,000 - - 7,000 - 4162 Storm Drain Fees - - - 510,000 510,000 -
4163 Weed Abatement Fee - - - 11,000 11,000 -
4165 EV Charging Fee - - - - - 15,000
4199 Other Licenses & Permits 3,000 8,000 - - 11,000 -
Subtotal 5,540,000 3,137,000 - 521,000 9,198,000 163,000

CHARGES FOR SERVICES
4180 General Recreation Services - - 553,000 - 553,000 - 4181 Silliman General Aquatic Program - - 478,000 - 478,000 - 4182 Silliman Center General Admission - - 571,000 - 571,000 - 4183 Silliman Contract Classes - - 323,000 - 323,000 -
4185 Community Center Building Rental - - 24,000 - 24,000 - 4186 Child Care Activity - - 321,000 - 321,000 -
4187 Preschool Activity - - 24,000 - 24,000 -
4189 Senior Center Contract Classes - - 9,000 - 9,000 - 4190 Recreation Processing Fee - - 6,000 - 6,000 -
Subtotal - - 2,309,000 - 2,309,000 -
94 SUMMARY OF BUDGETED REVENUES
ALL FUNDS - Fiscal Year 2026
Code Revenue by Source General
Development Cost
Center
Recreation Cost
Center
Maintenance
Cost Center Total Operating
Special Revenue,
Capital Funds & Other
Funds

FINES & FORFEITURES
4610 Vehicle Code Fines 493,000 - - - 493,000 -
4611 Parking Fines 21,000 - - - 21,000 -
4612 Other Fines 8,000 - - - 8,000 -
Subtotal 522,000 - - - 522,000 -

INTERGOVERNMENTAL
4701 Motor Vehicle-In-Lieu 48,000 - - - 48,000 -
4703 Prop 172 Public Safety Sales Tax 457,000 - - - 457,000 - 4704 Homeowner Relief 100,000 - - - 100,000 -
4705 State Mandates SB90 - - - - - -
4720-4725 State Gasoline Tax - - - - - 1,320,000
4725 HUTA RMRA SB1 - - - - - 1,189,000
4730 Measure D Revenue - - - - - 134,000
4740-4743 Measure BB/F - - - - - 2,155,000
4750 POST Reimbursement 30,000 - - - 30,000 -
4792 Other State Grants/Reimbursements - - - - - 238,000 4793 Federal Grants/Awards - - - - - 45,000
Subtotal 635,000 - - - 635,000 5,081,000

USE OF MONEY & PROPERTY
4880 Investment Earnings 3,100,000 - - - 3,100,000 -
4891 Silliman Center Rentals - - 28,000 - 28,000 -
4893 Silliman Concession - - 380,000 - 380,000 -
Subtotal 3,100,000 - 408,000 - 3,508,000 -

OTHER REVENUES
4980 ISF Charges from Other Departments - - - - - 10,262,000 4990 Other Revenue - 156,000 - - 156,000 -
Subtotal - 156,000 - - 156,000 10,262,000
TOTAL REVENUE 80,687,000 3,293,000 2,717,000 521,000 87,218,000 17,955,000

FUND APPROPRIATIONS & TRANSFERS
4999 From Special Revenue Fund 100,000 - - - 100,000 4,824,000 TOTAL 80,787,000 3,293,000 2,717,000 521,000 87,318,000 22,779,000 95 Code Program/Activity 2024 Amended 2024 Estimated 2025 Budgeted % of Total Personnel Non Personnel Personnel Non Personnel 2026 Budgeted % of Total Personnel Non Personnel Personnel Non Personnel

GENERAL FUND

00.000.000 Non Departmental 12,461,000 12,461,000 475,000 0.4% - 475,000 - - 489,000 0.5% - 489,000 - - Subtotal 12,461,000 12,461,000 475,000 0.4% - 475,000 - - 489,000 0.5% - 489,000 - -

10.010.100 Mayor-Council 422,310 400,000 425,000 0.4% 208,000 217,000 - - 433,000 0.4% 208,000 225,000 - -

13.013.130 City Clerk 374,000 413,000 586,000 0.5% 358,000 228,000 - - 420,000 0.4% 359,000 61,000 - -

15.015.150 City Attorney 482,000 573,000 588,000 0.5% - 588,000 - - 604,000 0.6% - 604,000 - - Subtotal 1,278,310 1,386,000 1,599,000 1.5% 566,000 1,033,000 - - 1,457,000 1.4% 567,000 890,000 - -

20.020.200 Management Services 1,704,050 1,922,000 2,117,000 1.9% 1,377,000 591,000 - 149,000 1,878,000 1.8% 1,381,000 343,000 - 154,000

26.026.260 Emergency Services 94,000 131,000 225,000 0.2% - 225,000 - - 238,000 0.2% - 238,000 - -

21.021.200 Information Technology 3,721,273 3,450,000 3,178,000 2.9% 1,508,000 1,670,000 - - 3,232,000 3.1% 1,513,000 1,719,000 - -

22.022.200 Human Resources Services 1,699,000 1,605,000 1,764,000 1.6% 1,033,000 731,000 - - 1,790,000 1.7% 1,041,000 749,000 - -

80.080.800 Financial Services 2,675,011 2,947,000 2,965,000 2.7% 1,855,000 1,110,000 - - 3,005,000 2.9% 1,862,000 1,143,000 - - Subtotal 9,893,334 10,055,000 10,249,000 9.4% 5,773,000 4,327,000 - 149,000 10,143,000 9.8% 5,797,000 4,192,000 - 154,000

50.051.510 Economic Development 1,149,793 1,019,000 1,293,000 1.2% 712,000 581,000 - - 1,175,000 1.1% 574,000 601,000 - - Subtotal 1,149,793 1,019,000 1,293,000 1.2% 712,000 581,000 - - 1,175,000 1.1% 574,000 601,000 - -

27.027.270 Library Support 321,000 303,000 387,000 0.4% - 387,000 - - 392,000 0.4% - 392,000 - - Subtotal 321,000 303,000 387,000 0.4% - 387,000 - - 392,000 0.4% - 392,000 - -

30.030.300 Police Administration 1,387,031 1,319,402 1,697,000 1.6% 1,311,000 386,000 - - 1,740,000 1.7% 1,341,000 399,000 - -

30.300.301 School Crossing Guards 155,101 156,000 165,000 0.2% - 165,000 - - 170,000 0.2% - 170,000 - -

30.030.302 Animal Control 440,000 452,000 454,000 0.4% 168,000 286,000 - - 462,000 0.4% 168,000 294,000 - -

30.031.310 Patrol 18,388,444 17,499,000 18,566,000 17.1% 13,959,000 4,014,000 - 593,000 18,919,000 18.3% 14,369,000 4,397,000 - 153,000

30.032.320 Investigations 3,005,000 2,156,000 3,285,000 3.0% 2,608,000 677,000 - - 3,376,000 3.3% 2,685,000 691,000 - -

30.033.330 Records & Communications 5,799,198 5,249,000 6,115,000 5.6% 5,024,000 1,082,000 - 9,000 6,288,000 6.1% 5,166,000 1,112,000 - 10,000

30.034.340 Police Reserves 12,000 12,000 10,000 0.0% - 10,000 - - 11,000 0.0% - 11,000 - - Subtotal 29,186,774 26,843,402 30,292,000 27.8% 23,070,000 6,620,000 602,000 30,966,000 29.9% 23,729,000 7,074,000 - 163,000

40.040.400 Fire, Life, & Environmental Protection 12,949,000 13,191,000 14,466,000 13.3% - 14,466,000 - - 15,332,000 14.8% - 15,332,000 - -

40.041.400 EMS Assessment 4,000 8,000 10,000 0.0% - 4,000 - 6,000 12,000 0.0% - 5,000 - 7,000 Subtotal 12,953,000 13,199,000 14,476,000 13.3% - 14,470,000 6,000 15,344,000 14.8% - 15,337,000 7,000 TOTAL GENERAL FUND 67,243,211 65,266,402 58,771,000 54.0% 30,121,000 27,893,000 - 757,000 59,966,000 57.9% 30,667,000 28,975,000 - 324,000 General Fund
Special Revenue, Capital
Funds & Other Funds General Fund
Special Revenue, Capital
Funds & Other Funds

SUMMARY OF BUDGETED EXPENDITURES
Fiscal Years 2025 and 2026

POLICE SERVICES

FIRE SERVICES

NON DEPARTMENTAL

GENERAL GOVERNMENT

MANAGEMENT/SUPPORT SERVICES

ECONOMIC DEVELOPMENT

LIBRARY
96 Code Program/Activity 2024 Amended 2024 Estimated 2025 Budgeted % of
Total Personnel Non Personnel Personnel Non Personnel 2026 Budgeted % of
Total Personnel Non Personnel Personnel Non Personnel
Subtotal brought forward 67,243,211 65,266,402 58,771,000 54.0% 30,121,000 27,893,000 - 757,000 59,966,000 57.9% 30,667,000 28,975,000 - 324,000

60.060.600 Public Works Administration - 5,000 15,000 0.0% - 15,000 - - 19,000 0.0% - 19,000 - -

60.061.611 Engineering 3,440,511 3,482,000 3,814,000 3.5% 2,226,000 1,588,000 - - 3,924,000 3.8% 2,292,000 1,632,000 - -

60.062.620 Building Inspection 1,990,000 2,037,000 2,306,000 2.1% 1,483,000 817,000 - 6,000 2,374,000 2.3% 1,527,000 841,000 - 6,000 Subtotal 5,430,511 5,524,000 6,135,000 5.6% 3,709,000 2,420,000 - 6,000 6,317,000 6.1% 3,819,000 2,492,000 - 6,000

50.050.500 Community Development Administration - - 25,000 2.3% - 25,000 - - 32,000 2.9% - 32,000 - -

50.052.520 Planning 1,297,564 1,060,000 1,457,000 1.3% 802,000 594,000 - 61,000 1,488,000 1.4% 811,000 614,000 - 63,000

50.053.530 Community Preservation 839,503 819,000 846,000 0.8% 724,000 122,000 - - 854,000 0.8% 725,000 129,000 - -

50.054.540 General Plans Programs 352,000 404,000 722,000 0.7% - - 722,000 - 730,000 0.7% - - 730,000 - Subtotal 2,489,067 2,283,000 3,050,000 5.1% 1,526,000 741,000 722,000 61,000 3,104,000 5.9% 1,536,000 775,000 730,000 63,000 TOTAL DEVELOPMENT COST CENTER FUND 7,919,578 7,807,000 9,185,000 10.7% 5,235,000 3,161,000 722,000 67,000 9,421,000 12.0% 5,355,000 3,267,000 730,000 69,000

70.071.710 General Recreation Services 1,029,700 1,197,000 1,498,000 1.4% 850,000 563,000 85,000 - 1,546,000 1.5% 876,000 582,000 88,000 -

70.072.720 Youth/Adult Sports,Fitness,&Wellness 653,600 926,000 976,000 0.9% 470,000 506,000 - - 1,005,000 1.0% 485,000 520,000 - -

70.073.730 Activity & Family Aquatic Center 2,501,000 2,167,000 2,578,000 2.4% 1,596,000 982,000 - - 2,647,000 2.6% 1,645,000 1,002,000 - -

70.074.740 Licensed Child Care 822,700 882,000 898,000 0.8% 685,000 213,000 - - 927,000 0.9% 706,000 221,000 - -

70.075.750 Senior Services 559,300 551,000 581,000 0.5% 471,000 110,000 - - 601,000 0.6% 486,000 115,000 - -

70.075.755 Paratransit (Measure B/BB) 220,000 421,000 432,000 0.4% - - - 432,000 445,000 0.4% - - - 445,000

70.077.771 Human Services/Newark Resource Center - - 124,000 0.1% 50,000 74,000 - - 134,000 0.1% 52,000 82,000 - -

70.079.790 Grants/Pass Through 51,596 497,000 50,000 0.0% - - - 50,000 - 0.0% - - - - Subtotal 5,837,896 6,641,000 7,137,000 6.6% 4,122,000 2,448,000 85,000 482,000 7,305,000 7.1% 4,250,000 2,522,000 88,000 445,000 TOTAL RECREATION COST CENTER FUND 5,837,896 6,641,000 7,137,000 6.6% 4,122,000 2,448,000 85,000 482,000 7,305,000 7.1% 4,250,000 2,522,000 88,000 445,000 Subtotal carried forward 81,000,684 79,714,402 75,093,000 71.3% 39,478,000 33,502,000 807,000 1,306,000 76,692,000 77.0% 40,272,000 34,764,000 818,000 838,000 General Fund
Special Revenue, Capital
Funds & Other Funds

PUBLIC WORKS

COMMUNITY DEVELOPMENT

RECREATION

SUMMARY OF BUDGETED EXPENDITURES
Fiscal Years 2025 and 2026

DEVELOPMENT COST CENTER

RECREATION COST CENTER
General Fund
Special Revenue, Capital
Funds & Other Funds
97 Code Program/Activity 2024 Amended 2024 Estimated 2025 Budgeted % of Total Personnel Non Personnel Personnel Non Personnel 2026 Budgeted % of Total Personnel Non Personnel Personnel Non Personnel Subtotal brought forward 81,000,684 79,714,402 75,093,000 71.3% 39,478,000 33,502,000 807,000 1,306,000 76,692,000 77.0% 40,272,000 34,764,000 818,000 838,000

60.063.631 Waste Management 1,333,428 1,135,000 1,133,000 1.0% 354,000 119,000 - 660,000 1,171,000 1.1% 364,000 125,000 - 682,000

60.063.632 Storm Drains 1,112,500 1,043,000 1,161,000 1.1% 571,000 590,000 - - 1,196,000 1.2% 587,000 609,000 - - Subtotal 2,445,928 2,178,000 2,294,000 2.1% 925,000 709,000 - 660,000 2,367,000 2.3% 951,000 734,000 682,000

60.064.641 Weed Abatement 39,000 35,000 21,000 0.0% - 21,000 - - 23,000 0.0% - 23,000 - - Subtotal 39,000 35,000 21,000 0.0% - 21,000 - - 23,000 0.0% - 23,000 - -

60.064.612 Street Lighting & Traffic Signals 1,012,586 943,000 988,000 0.9% 161,000 827,000 - - 1,016,000 1.0% 166,000 850,000 - -

60.064.642 Street Repairs 1,333,500 1,110,000 976,000 0.9% 380,000 596,000 - - 1,076,000 1.0% 391,000 685,000 - -

60.068.682 Landscape & Lighting Districts 554,063 476,000 3,000 0.0% - - - 3,000 4,000 0.0% - - - 4,000 Subtotal 2,900,149 2,529,000 1,967,000 1.8% 541,000 1,423,000 - 3,000 2,096,000 2.0% 557,000 1,535,000 4,000

60.064.643 Park & Landscape Maintenance 3,679,000 3,554,000 3,762,000 3.5% 1,668,000 2,094,000 - - 3,866,000 3.7% 1,719,000 2,147,000 - - Subtotal 3,679,000 3,554,000 3,762,000 3.5% 1,668,000 2,094,000 - - 3,866,000 3.7% 1,719,000 2,147,000 - - TOTAL MAINTENANCE FUND 9,064,076 8,296,000 8,044,000 7.4% 3,134,000 4,247,000 - 663,000 8,352,000 8.1% 3,227,000 4,439,000 - 686,000 Transfer for 2019 COP Debt Service 4,818,000 4,821,000 4,818,000 4.4% - 4,818,000 - - 4,824,000 4.7% - 4,824,000 - - Assigned Measure GG Funds 2,456,000 2,453,000 2,602,000 2.4% - 2,602,000 - - 2,788,000 2.7% - 2,788,000 - - TOTAL OPERATIONS 97,338,761 95,284,402 90,557,000 85.5% 42,612,000 45,169,000 807,000 1,969,000 92,656,000 92.4% 43,499,000 46,815,000 818,000 1,524,000

90.091.910 Street Construction 20,429,794 11,475,000 6,150,000 5.7% - - - 6,150,000 4,950,000 4.8% - - - 4,950,000

90.092.920 Housing Community Development 664,946 247,000 226,251 0.2% - - - 226,251 77,000 0.1% - - - 77,000

90.093.930 Park Construction 1,986,875 266,000 273,000 0.3% - - - 273,000 281,000 0.3% - - - 281,000

90.094.940 Capital Improvements 20,065,450 4,019,000 6,772,000 6.2% - - - 6,772,000 743,000 0.7% - - - 743,000 Subtotal 43,147,065 16,007,000 13,421,251 12.3% - - - 13,421,251 6,051,000 5.8% - - - 6,051,000 TOTAL CAPITAL FUNDS 43,147,065 16,007,000 13,421,251 12.3% - - - 13,421,251 6,051,000 5.8% - - - 6,051,000

00.000.000 COP 2019 Debt Service - 4,821,000 4,818,000 4.4% - - - 4,818,000 4,824,000 4.7% - - - 4,824,000 Subtotal - 4,821,000 4,818,000 4.4% - - - 4,818,000 4,824,000 4.7% - - - 4,824,000 TOTAL DEBT SERVICE - 4,821,000 4,818,000 4.4% - - - 4,818,000 4,824,000 4.7% - - - 4,824,000 140,485,825 116,112,402 108,796,251 102.3% 42,612,000 45,169,000 807,000 20,208,251 103,531,000 102.9% 43,499,000 46,815,000 818,000 12,399,000 Subtotal carried forward 140,485,825 116,112,402 108,796,251 102.3% 42,612,000 45,169,000 807,000 20,208,251 103,531,000 102.9% 43,499,000 46,815,000 818,000 12,399,000 General Fund
Special Revenue, Capital
General Fund Funds & Other Funds
Special Revenue, Capital
Funds & Other Funds

ENVIRONMENTAL SERVICES

TOTAL OPERATIONS, CAPITAL & DEBT SERVICE

CAPITAL FUNDS

DEBT SERVICE

SUMMARY OF BUDGETED EXPENDITURES
Fiscal Years 2025 and 2026

MAINTENANCE COST CENTER

DEBT SERVICE

WEED ABATEMENT

STREET OPERATIONS & MAINTENANCE

PARK & LANDSCAPE MAINTENANCE

FUND TRANSFERS

CAPITAL PROJECTS
98 Code Program/Activity 2024 Amended 2024 Estimated 2025 Budgeted % of Total Personnel Non Personnel Personnel Non Personnel 2026 Budgeted % of Total Personnel Non Personnel Personnel Non Personnel Subtotal brought forward 140,485,825 116,112,402 108,796,251 102.3% 42,612,000 45,169,000 807,000 20,208,251 103,531,000 102.9% 43,499,000 46,815,000 818,000 12,399,000 *

87.701.800 Equipment & Fleet Replacement 2,818,951 2,300,000 109,000 0.1% - - - 109,000 110,000 0.1% - - - 110,000 Subtotal 2,818,951 2,300,000 109,000 0.1% - - - 109,000 110,000 0.1% - - - 110,000

87.705.800 Office Support Services 103,000 160,000 167,000 0.1% - - - 167,000 175,000 0.2% - - - 175,000 Subtotal 103,000 160,000 167,000 0.1% - - - 167,000 175,000 0.2% - - - 175,000

87.707.200 Workers' Compensation 1,117,000 1,111,000 1,300,000 1.2% - - 34,000 1,266,000 1,338,000 1.2% - - 34,000 1,304,000

87.706.150 Public Liability 2,024,254 2,027,000 2,202,000 2.0% - - 34,000 2,168,000 2,657,000 2.5% - - 34,000 2,623,000 Subtotal 3,141,254 3,138,000 3,502,000 3.1% - - 68,000 3,434,000 3,995,000 3.7% - - 68,000 3,927,000

87.703.671 Equipment Maintenance 1,444,000 1,382,000 1,465,000 1.3% - - 724,000 741,000 1,513,000 1.4% - - 746,000 767,000

87.704.672 Civic Center/Other City Facilities 1,816,400 1,786,000 1,756,000 1.6% - - 544,000 1,212,000 1,812,000 1.7% - - 560,000 1,252,000

87.704.673 Silliman Center 904,600 984,000 1,073,000 1.0% - - 148,000 925,000 1,106,000 1.0% - - 153,000 953,000

87.704.674 Police Building 436,000 420,000 433,000 0.4% - - - 433,000 448,000 0.4% - - - 448,000

87.704.675 Library Building 196,000 216,000 223,000 0.2% - - - 223,000 231,000 0.2% - - - 231,000 Subtotal 4,797,000 4,788,000 4,950,000 4.4% - - 1,416,000 3,534,000 5,110,000 4.7% - - 1,459,000 3,651,000 TOTAL INTERNAL SERVICE FUNDS 10,860,205 10,386,000 8,728,000 7.8% - - 1,484,000 7,244,000 9,390,000 8.7% - - 1,527,000 7,863,000 Vacancy Savings (5,042,000) (5,164,000)
COMPOSITE TOTAL 151,346,030 126,498,402 112,482,251 102.3% 42,612,000 45,169,000 2,291,000 27,452,251 107,757,000 102.9% 43,499,000 46,815,000 2,345,000 20,262,000 General Fund
Special Revenue, Capital Funds
& Other Funds

EQUIPMENT & FLEET REPLACEMENT

OFFICE SUPPORT
PUBLIC LIABILITY & WORKERS' COMP.

MAINTENANCE

INTERNAL SERVICE FUNDS (ISF)

SUMMARY OF BUDGETED EXPENDITURES
Fiscal Years 2025 and 2026
General Fund
Special Revenue, Capital Funds &
Other Funds
99 77,687,000
86,962,000
90,601,000 90,722,000
88,910,000
70,000,000
75,000,000
80,000,000
85,000,000
90,000,000
95,000,000
2022 Actual 2023 Actuals 2024 Estimate 2025 Budgeted 2026 Budgeted Total Operating Revenues
Fiscal Year 2022-2026
98,983,000
101,752,000
107,345,000
106,604,000
105,173,000
94,000,000
96,000,000
98,000,000
100,000,000
102,000,000
104,000,000
106,000,000
108,000,000
2022 Actual 2023 Actuals 2024 Estimate 2025 Budgeted 2026 Budgeted Total Revenues - All Funds
Fiscal Year 2022-2026
100
83,251,000 80,531,000
116,112,000
108,796,000
103,531,000
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
2022 Actual 2023 Actuals 2024 Estimate 2025 Budgeted 2026 Budgeted Total Expenditures - All Funds
Fiscal Year 2022-2026
74,864,000 77,363,000
95,284,000
90,557,000 92,656,000
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
2022 Actual 2023 Actuals 2024 Estimate 2025 Budgeted 2026 Budgeted Total Operating Expenditures
Fiscal Year 2022-2026
101
102
AUTHORIZED & FUNDED REGULAR FULL-TIME & REGULAR PART-TIME POSITIONS, FULL TIME EQUIVALENTS City Clerk City Manager Information Technology Human Resources Public Liability ISF Workers' Compensation ISF

13.013.130 20.020.200 21.021.200 22.022.200 87.706.150 87.707.200

CITY CLERK
City Clerk 1.00 1.00 1.00 1.00 1.00 100%
Subtotal 1.00 1.00 1.00 1.00 1.00

CITY MANAGER
Assistant City Manager 1.00 1.00 1.00 1.00 1.00 10% 60% 15% 15% Assistant to the City Manager 1.00 1.00 1.00 1.00 1.00 100% City Manager 1.00 1.00 1.00 1.00 1.00 100%
Executive Assistant 1.00 1.00 1.00 1.00 1.00 20% 80%
Senior Management Analyst - - 1.00 1.00 1.00 100%
Subtotal 4.00 4.00 5.00 5.00 5.00

HUMAN RESOURCES
Administrative Analyst 1.00 1.00 1.00 1.00 1.00 100%
Human Resources Director 1.00 1.00 1.00 1.00 1.00 80% 10% 10% Human Resources Technician 2.00 2.00 2.00 2.00 2.00 100% Subtotal 4.00 4.00 4.00 4.00 4.00

INFORMATION TECHNOLOGY
Chief Information Officer/Information
Technology Director 1.00 1.00 1.00 1.00 1.00 100%
Information Technology Analyst 3.00 3.00 2.00 2.00 2.00 100% Sr. Information Technology Analyst - - 1.00 1.00 1.00 100% Information Technology Technician I/II 2.00 2.00 2.00 2.00 2.00 100% Subtotal 6.00 6.00 6.00 6.00 6.00 FY 2023 Amended FY 2024 Adopted FY 2024 Amended FY 2025 Budgeted FY 2026 Budgeted 103
AUTHORIZED & FUNDED REGULAR FULL-TIME & REGULAR PART-TIME POSITIONS, FULL TIME EQUIVALENTS Police Administration Animal Control Patrol Investigations Records & Communications

30.030.300 30.030.302 30.031.310 30.032.320 30.033.330 POLICE
Administrative Analyst 1.00 1.00 - - -
Administrative Assistant 1.00 1.00 1.00 1.00 1.00 100%
Administrative Support Specialist II 1.00 1.00 1.00 1.00 1.00 100% Animal Control Officer 1.00 1.00 1.00 1.00 1.00 100%
Community Engagement Manager 1.00 1.00 1.00 1.00 1.00 100% Community Service Officer 2.00 2.00 2.00 2.00 2.00 100% Community Service Officer 1.00 1.00 1.00 1.00 1.00 100% Crime Analyst 1.00 1.00 1.00 1.00 1.00 100%
Lead Public Safety Dispatcher 2.00 2.00 1.00 1.00 1.00 100% Management Analyst II - - 1.00 1.00 1.00 100%
Police Captain 1.00 1.00 1.00 1.00 1.00 100%
Police Captain 1.00 1.00 1.00 1.00 1.00 100%
Police Chief 1.00 1.00 1.00 1.00 1.00 100%
Police Lieutenant 2.00 2.00 2.00 2.00 2.00 100%
Police Lieutenant 1.00 1.00 1.00 1.00 1.00 100%
Police Officer 10.00 10.00 10.00 10.00 10.00 100%
Police Officer 34.00 34.00 34.00 34.00 34.00 100%
Police Records Supervisor 1.00 1.00 1.00 1.00 1.00 100% Police Sergeant 7.00 7.00 7.00 7.00 7.00 100%
Police Sergeant 1.00 1.00 1.00 1.00 1.00 100%
Police Support Services Manager 1.00 1.00 1.00 1.00 1.00 100% Public Safety Clerk 3.00 3.00 3.00 3.00 3.00 100%
Public Safety Dispatch Supervisor - - 1.00 1.00 1.00 100% Public Safety Dispatcher 9.00 9.00 9.00 9.00 9.00 100%
Red Light Photo Technician 1.00 1.00 1.00 1.00 1.00 100% Vehicle Abatement Officer 1.00 1.00 1.00 1.00 1.00 100% Subtotal 85.00 85.00 85.00 85.00 85.00 FY 2023 Amended FY 2024 Adopted FY 2024 Amended FY 2025 Budgeted FY 2026 Budgeted 104
AUTHORIZED & FUNDED REGULAR FULL-TIME & REGULAR PART-TIME POSITIONS, FULL TIME EQUIVALENTS Economic Development Planning Community Preservation Community Development Maintenance Fund

50.051.510 50.052.520 50.053.530 50.054.540

COMMUNITY DEVELOPMENT
Administrative Support Specialist II 1.00 1.00 1.00 1.00 1.00 40% 60% Assistant Planner - - - 1.00 1.00 50% 50%
Associate Planner 1.00 1.00 1.00 1.00 1.00 70% 30%
Community Development Director 1.00 1.00 1.00 1.00 1.00 30% 20% 50% Community Preservation Manager 1.00 1.00 1.00 1.00 1.00 100% Community Preservation Specialist 2.00 2.00 2.00 2.00 2.00 100% Deputy Community Development Director - 1.00 1.00 1.00 1.00 30% 20% 50% Deputy Economic Development Director 1.00 - 1.00 1.00 1.00 100% Economic Development Manager 1.00 1.00 - - -
Housing Policy Program Manager - - - 1.00 1.00 60% 40%
Management Analyst I/II - - 1.00 1.00 1.00 100%
Senior Planner 1.00 1.00 1.00 1.00 1.00 50% 50%
Subtotal 9.00 9.00 10.00 12.00 12.00 FY 2023 Amended FY 2024 Adopted FY 2024 Amended FY 2025 Budgeted FY 2026 Budgeted 105
AUTHORIZED & FUNDED REGULAR FULL-TIME & REGULAR PART-TIME POSITIONS, FULL TIME EQUIVALENTS Engineering Building Inspection Waste Management Storm Drains & NPDES Street Lighting & Signals Weed Abatement Street Repairs Park & Landscape Maintenance Equipment Maintenance ISF Civic Center Maintenance ISF Silliman Center Maintenance ISF

60.061.611 60.062.620 60.063.631 60.063.632 60.064.612 60.064.641 60.064.642 60.064.643 87.703.671 87.704.672 87.704.673

PUBLIC WORKS
Administrative Analyst 1.00 1.00 - - -
Administrative Support Specialist II 1.00 1.00 1.00 1.00 1.00 100% Assistant City Engineer 1.00 1.00 - - -
Assistant Engineer - Civil 1.00 1.00 1.00 1.00 1.00 75% 25% Assistant Maintenance Superintendent 1.00 1.00 - - -
Associate Civil Engineer 1.00 1.00 1.00 2.00 2.00 100%
Building Inspector I/II 3.00 3.00 3.00 3.00 3.00 100%
Building Maintenance Mechanic I - - - 1.00 1.00 100%
Building Maintenance Mechanic II 2.00 2.00 2.00 1.00 1.00 65% 35% Chief Building Official 1.00 1.00 1.00 1.00 1.00 100%
City Engineer - - 1.00 1.00 1.00 60% 10% 30%
Engineering Technician I 1.00 1.00 1.00 1.00 1.00 40% 25% 35% Environmental Services Manager 1.00 1.00 1.00 1.00 1.00 100% Equipment Mechanic I - - - 1.00 1.00 100%
Equipment Mechanic II 2.00 2.00 2.00 1.00 1.00 100%
Facilities Supervisor - - 1.00 1.00 1.00 80% 20%
General Laborer 3.00 3.00 3.00 3.00 3.00 100%
Junior Engineer 1.00 1.00 1.00 1.00 1.00 100%
Landscape & Park - Maintenance Worker I 2.00 2.00 2.00 2.00 2.00 100% Landscape & Park - Maintenance Worker II 2.00 2.00 2.00 2.00 2.00 100% Maintenance Superintendent 1.00 1.00 1.00 1.00 1.00 20% 20% 30% 30% Maintenance Supervisor 1.00 1.00 1.00 10% 90%
Maintenance Supervisor - - 1.00 1.00 1.00 25% 25% 50%
Management Analyst I - - - 1.00 1.00 10% 20% 20% 20% 30% Management Analyst II - - 1.00 1.00 1.00 35% 15% 25% 25% Permit Technician 1.00 1.00 1.00 1.00 1.00 100%
Plan Check Engineer 1.00 1.00 - - -
Principal Civil Engineer - - 1.00 1.00 1.00 100%
Public Works Director 1.00 1.00 1.00 1.00 1.00 50% 10% 10% 10% 10% 10% Public Works Inspector 1.00 1.00 1.00 1.00 1.00 90% 10% Senior Administrative Support Specialist 1.00 1.00 1.00 1.00 1.00 100% Senior Administrative Support Specialist 1.00 1.00 1.00 - - Senior Building Inspector 1.00 1.00 1.00 1.00 1.00 100% Senior Building Mechanic 1.00 1.00 1.00 1.00 1.00 70% 30% Senior Civil Engineer 2.00 2.00 2.00 1.00 1.00 100%
Senior Equipment Mechanic 1.00 1.00 1.00 1.00 1.00 100% Senior Landscape & Park Maintenance Worker 2.00 2.00 2.00 2.00 2.00 100% Senior Landscape Inspector 1.00 1.00 1.00 1.00 1.00 100% Senior Street Maintenance Worker - - 1.00 1.00 1.00 50% 50% Street Maintenance Worker I 1.00 1.00 1.00 2.00 2.00 50% 50% Street Maintenance Worker II 2.00 2.00 2.00 1.00 1.00 100% Subtotal 42.00 42.00 45.00 45.00 45.00 FY 2023 Amended FY 2024 Adopted FY 2024 Amended FY 2025 Budgeted FY 2026 Budgeted 106
AUTHORIZED & FUNDED REGULAR FULL-TIME & REGULAR PART-TIME POSITIONS, FULL TIME EQUIVALENTS General Recreation Services Youth/Adult Sports, Fitness
G.M. Silliman -Aquatics
Licensed Childcare
Senior Services Finance

70.071.710 70.072.720 70.073.730 70.074.740 70.075.750 80.080.800

RECREATION & COMMUNITY SERVICES
Administrative Assistant 0.50 0.50 0.50 0.75 0.75 80% 10% 10% Administrative Support Specialist II 1.00 1.00 1.00 1.00 1.00 30% 10% 60% Administrative Support Specialist II 0.75 0.75 1.00 1.00 1.00 25% 75% Aquatics Specialist 1.00 1.00 - - -
Childcare Instructor 4.00 4.00 4.00 4.00 4.00 100%
Lead Childcare Instructor 1.00 1.00 1.00 - -
Recreation & Community Services Director - - 1.00 1.00 1.00 20% 20% 20% 20% 20% Recreation and Community Services Manager 1.00 1.00 - - - Recreation & Community Supervisor I - - - 1.00 1.00 100% Recreation & Community Supervisor I - - 1.00 1.00 1.00 20% 10% 70% Recreation & Community Supervisor II - - 1.00 1.00 1.00 10% 10% 80% Recreation Coordinator 1.00 1.00 1.00 1.00 1.00 30% 35% 35% Recreation Coordinator 1.00 1.00 1.00 1.00 1.00 100%
Recreation Coordinator - - 2.00 2.00 2.00 100%
Recreation Coordinator - - - 1.00 1.00 100%
Recreation Coordinator 1.00 1.00 1.00 1.00 1.00 100%
Recreation Supervisor 1.00 1.00 - - -
Recreation Coordinator - Aquatics 1.00 1.00 - - -
Sr. Recreation Supervisor 1.00 1.00 - - -
Subtotal 15.25 15.25 15.50 16.75 16.75

FINANCE
Accountant 2.00 2.00 2.00 2.00 2.00 100%
Accounting Assistant I/II 1.00 1.00 2.00 2.00 2.00 100% Accounting Manager 1.00 1.00 - - -
Accounting Technician I/II 1.00 1.00 1.00 1.00 1.00 100% Cashier 1.00 1.00 - - -
Collection Assistant 1.00 1.00 1.00 1.00 1.00 100%
Deputy Finance Director - 1.00 1.00 1.00 100%
Finance Director 1.00 1.00 1.00 1.00 1.00 100%
Senior Accountant 1.00 1.00 1.00 1.00 1.00 100%
Subtotal 9.00 9.00 9.00 9.00 9.00 FY 2023 Amended FY 2024 Adopted FY 2024 Amended FY 2025 Budgeted FY 2026 Budgeted 107
BREAKDOWN OF FULL-TIME EQUIVALENTS FOR 2025
(Temporary Personnel)
Dept. Description FTE Dept. Description FTE

20.020.200 City Manager 70.071.710 General Recreation Services Office Assistant I 0.75 Activity Coordinator 2.00
Annuitants 0.33 Customer Service Rep 0.50
Total 1.08 Preschool Instructor 2.00
Recreation Instructor 2.00

21.021.210 Information Technology Recreation Leader I 1.75 Annuitant 0.50 Teen Activity Coordinator 0.50
Total 0.50 Total 8.75

22.022.220 Human Resources 70.072.720 Youth/Adult Sports, Fitness, & Wellness Annuitants (960 hours/each) 0.66 Activity Coordinator 1.00 Total 0.66 Special Assistant 0.50
Recreation Instructor 1.00

30.031.310 Patrol Recreation Leader I/II 1.00
Police Officer Trainee 3.00 Recreation Leader I/II 1.26 Special Assistant 1.00 Total 4.76
Total 4.00

70.073.730 Family Aquatic Center

30.033.330 Records & Communications Aquatic Instructor 5.00 Police Services Aide I 1.00 Customer Service Rep 4.00
Police Services Aide II 1.50 Lifeguard I/II 9.00
Special Assistant 0.25 Pool Technician 2.00
Total 2.75 Recreation Leader II 0.71
Activity Coordinator 2.00

50.051.510 Economic Development Senior Lifeguard 3.00
Special Assistant 1.44 Customer Service Rep 0.50
Total 1.44 Total 26.21

60.061.611 Engineering 70.074.740 Licensed Childcare
Special Assistant 0.25 Preschool Instructor 0.50
Total 0.25 Total 0.50

60.062.620 Building Inspection 70.075.750 Senior Services Office Assistant I (PST-X) 1.00 Recreation Leader 1.50
Total 1.00 Total 1.50

60.064.643 Maintenance 80.080.800 Finance
General Maintenance Worker III 0.50 Accounting Assistant I/II 0.50 General Maintenance Worker III 0.50 Total 0.50
General Maintenance Worker III 0.50
Total 1.50 Grand Total 55.40
108
BREAKDOWN OF FULL-TIME EQUIVALENTS FOR 2026
(Temporary Personnel)
Dept. Description FTE Dept. Description FTE

20.020.200 City Manager 70.071.710 General Recreation Services Office Assistant I 0.75 Activity Coordinator 2.00
Annuitant 0.33 Customer Service Rep 0.50
Total 1.08 Preschool Instructor 2.00
Recreation Instructor 2.00

21.021.210 Information Technology Recreation Leader I 1.75 Annuitant 0.50 Teen Activity Coordinator 0.50
Total 0.50 Total 8.75

22.022.220 Human Resources 70.072.720 Youth/Adult Sports, Fitness, & Wellness Annuitants (960 hours/each) 0.66 Activity Coordinator 1.00 Total 0.66 Special Assistant 0.50
Recreation Instructor 1.00

30.031.310 Patrol Recreation Leader I/II 1.00
Police Officer Trainee 3.00 Recreation Leader I/II 1.26 Special Assistant 1.00 Total 4.76
Total 4.00

70.073.730 Family Aquatic Center

60.061.611 Engineering Senior Lifeguard 3.00
Special Assistant 0.25 Customer Service Rep 0.50
Total 0.25 Total 26.21

60.062.620 Building Inspection 70.074.740 Licensed Childcare Office Assistant I (PST-X) 1.00 Preschool Instructor 0.50 Total 1.00 Total 0.50

60.064.643 Maintenance 70.075.750 Senior Services
General Maintenance Worker III 0.50 Recreation Leader 1.50 General Maintenance Worker III 0.50 Total 1.50
General Maintenance Worker III 0.50
Total 1.50 80.080.800 Finance
Accounting Assistant I/II 0.50
Total 0.50
Grand Total 53.96
109
City Manager’s Office, City Attorney’s Office and
Emergency Management Services – Operating Budget
The mission of the City Manager’s Office is to ensure the goals and needs of the community, City Council and staff are all in alignment. Divisions within the City Manager’s Office include the City Attorney’s Office, the City Clerk’s office, and the Office of Emergency Services.

KEY OBJECTIVES
• Assist other City departments in developing and carrying out inclusive and equitable City policies, maximizing the use of City resources and promoting long-term fiscal stability. • Successfully manage and support the November 5, 2024 election for City Council and Mayoral candidates and any potential ballot measures.
• Explore opportunities to expand partnerships with the Newark Unified School District to enhance education in our public schools.
• Develop the City’s first Homelessness Plan to identify strategies and resources for our unhoused community in an effort to eliminate homelessness. • Complete a review and update of the City’s Comprehensive Emergency Management Plan. • Apply for grant funding to carry out actions identified in the Local Hazard Mitigation Plan. • Provide specialized training to employees tasked with Emergency Operations Center responsibilities.
• Increase participation in the Community Emergency Response Team (CERT) volunteer program.
• Partner to provide our business, residential, and service communities with Emergency Prevention, Preparedness, Response, and Recovery training. • Act on the results of the biennial Community Engagement Survey 110
• Complete a citywide branding and marketing effort to improve communication with our community.
• Appoint community members to the City’s first Public Arts Committee and begin implementation of the City’s Public Art Master Plan.

Activity & Workload Highlights
Activity and Workload Indicators
FY 2021
Actuals
FY 2022
Actuals
FY 2023
Actuals
FY 2024
Projected
Legislative Records Processed:

Newark City CouncilJune 27, 2024

Newark City Council
June 27, 2024