AGENDA
Thursday, March 13, 2025
7:00 P.M.
Michael K. Hannon, Mayor
Eve Marie Little, Vice Mayor
Matthew Jorgens, Council Member
Terrence Grindall, Council Member
Julie Del Catancio, Council Member
A. ROLL CALL
B. PRESENTATIONS
1. Oath of Office for Planning Commissioner Darshpal "Jolly" Dhillon
2. Proclaiming March as American Red Cross Month
3. Presentation on Newark Library
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 February 27, 2025, minutes
3. Mid-year budget review and adopt a resolution amending the 2024-2026 Biennial Budget and Capital Improvement Plan for Fiscal Year 2025
E. PUBLIC HEARINGS
F. OTHER BUSINESS
G. CITY MANAGER UPDATES
H. 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.
I. CLOSED SESSION
1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS pursuant to Government Code Section 54956.8
Property: Assessor’s Parcel Number 901-200-16; 901-200-17 Agency negotiator: David J. Benoun, City Manager and Steven Turner, Community Development Director
Negotiating parties: LS Newark LLC/Franco Tenerelli ESQ Under negotiation: Price and terms of payment
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.com pursuant to Assembly Bill 2449, then the Webinar ID No. 893 9330 6695 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 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.
Mission Statement
It is our mission to serve and partner with our community to continually enhance the quality of life of everyone in Newark.
Executive Team Members
David J. Benoun
City Manager
Lenka Hovorka
Assistant City Manager
Kristopher J. Kokotaylo
City Attorney
Steven Turner
Community Development Director
Jonathan Arguello
Police Chief
Edwin Miranda
CIO/Information Technology
Director
Howard Young
Public Works Director
Corazon Dino
Interim Human Resources Director
Krysten Lee
Finance Director
Ryan Nishimoto
ACFD Deputy Chief
Nicholas Cuevas, Recreation and Community Services Director Item B. 1.
DATE 03/13/2025
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT Oath of Office for Planning Commissioner Darshpal "Jolly" Dhillon On February 27, 2025, the Newark City Council approved the Mayor's appointment of Darshpal "Jolly" Dhillon to the Planning Commission. Mr. Dhillon was appointed to fill the remainder of Julie Del Catancio's term on the Planning Commission through December 31, 2027. The Oath of Office will be administered at the City Council meeting.
Item B. 2.
DATE 03/13/2025
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT Proclaiming March as American Red Cross Month The American Red Cross shelters, feeds and provides comfort to victims of disasters; supplies about 40% of the nation's blood; teaches skills that save lives; distributes international humanitarian aid; and supports veterans, military members and their families. A proclamation has been prepared proclaiming March as American Red Cross Month. A member of the Red Cross will accept the proclamation at the City Council meeting.
Attachments
Proclamation
PROCLAMATION NO. 1932
AMERICAN RED CROSS MONTH
WHEREAS, March is American Red Cross month, when we recognize the compassion of people in Newark and renew our commitment to lend a helping hand to our neighbors in need; and WHEREAS, American Red Cross volunteers have stepped up to deliver relief and care across our country and around the world, bringing out the best of humanity in times of crisis as Clara Barton, founder of the American Red Cross, did over 140 years ago; and
WHEREAS, the volunteers, blood and platelet donors, and supporters shine a beacon of hope in people’s darkest hours —delivering shelter, food and comfort during disasters; providing critical blood donations for hospital patients; supporting service members, veterans and their families; saving lives with first aid, CPR, AED and other skills; or delivering international aid and reconnecting loved ones separated by global crises; and WHEREAS, with 1,638 volunteers in Alameda County, the American Red Cross assisted or responded to 163 disasters, assisting 305 families; and through their Sound the Alarm program, the American Red Cross installed 988 smoke alarms, making 291 homes safer and trained 2,544 youth and adults through Pedro and Preparedness Programs; and WHEREAS, Alameda County residents donated 30,572 units of lifesaving blood; hosted 1,154 blood drives; and trained 13,893 citizens in first aid, CPR, AED, and aquatics; and provided 455 case services to military members and their families; and provided humanitarian aid internationally; and WHEREAS, this work to uplift our community is made possible by those who selflessly answer the call to help, whenever and wherever it is needed. We hereby recognize this month of March in honor of their remarkable service, and we ask everyone to join in their commitment to care for one another.
NOW, THEREFORE, I, Michael K. Hannon, Mayor of the City of Newark, on behalf of the Newark City Council, do hereby proclaim March 2025 as
AMERICAN RED CROSS MONTH
in Newark and urge all citizens to reach out and support its humanitarian mission.
IN WITNESS THEREOF, I have hereunto set forth my hand and caused the Official Seal of the City of Newark, State of California, to be affixed this Thirteenth Day of March, Two Thousand Twenty-five MICHAEL K. HANNON
Mayor
Item B. 3.
DATE 03/13/2025
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT Presentation on Newark Library
Branch Manager Joe Stoner will provide the annual report at the City Council meeting covering statistics and special programs at the Newark Library. A copy of the presentation is attached.
Attachments
Presentation
NEWARK LIBRARY
Annual report
New library open since August 2021
With Sunday hours since July 2023
Newark Library FY 22/23 FY 23/24 FY 24/25 (to January)
Total visitor count 105,215 145,954 91,757
Daily average visitors 423 487 521
Hourly average visitors 54 68 73
Checkouts 269,101 269,053 154,712
Daily Average Checkouts 1,081 897 879
Note: Sunday hours funded starting FY 2023/24
Homework Help, Mondays-Thursdays, 4:00-6:00 pm
10 high school volunteers each hour
BACH annual
Ohana Health Fair,
2nd year inside
library
Music, Dance, & Theater
Summary of library programs
FY 2023/24 - 399 total programs, 11,500 attendance
• Homework Help – every day
• Storytimes: English, Arabic, Russian, & Spanish,
occasionally in Chinese
• English Conversation groups – 2 weekly groups for
adults & 1 for teens.
• 1st Saturday of month – Music Hour program, with
EternityBand.org
• Summer ESL for Youth camp
• Teen Advisory Group – every 2 weeks
• Black History Month
• Art & Craft & Makerspace programs
• Mental Health
• Summer performers
6-week Business start-up workshops (English & Spanish)
Item D. 1.
DATE 03/13/2025
TO Honorable Mayor and City Council Members
FROM Krysten Lee, Finance Director
SUBJECT Approval of Audited Demands
Attachments
Audited Demands 02.13.25
Audited Demands 02.20.25
!"
#
$
%&'() %*
+,-. /01.2345.678369.:0,.204. ;<+=0>?@A983>1
+60>B91C8>
A483>1
=0>?A983>1DEFGHIE J KLMNOFEP IQRJSTUV WXYZ[ W\Z[X]\EU^_`abFcdefTEQJgNPhEMEiRhRMNORjkgJROlgMJm nloWm]
g`p^qUTrcaTrTbUsqta^`JSTUVO^saJ uT
Ev^_`a
woxnnWXYWn \OJyKKQJjKOOgMiiLEjrOkJ WZY\GZYoX\
nloWm]
JSTUV WXYZ[ W\Z[X]]EU^_`abFcdefTEgONjLONEJ KLMNRzFKjN \lWxm
g`p^qUTrcaTrTbUsqta^`JSTUVO^saJ uT
Ev^_`a
Xwn[]oxWZY[ XW\{PX\Y]LEkgMOLjEMJRFKQgJPjRM zEQGWZYXo \GWZYXo ] \lWxm
JSTUV WXYZ[ W\Z[X]nEU^_`abFcdefT iLONEkKj KPK
Zl[xm
g`p^qUTrcaTrTbUsqta^`JSTUVO^saJ uT
Ev^_`a
ZX [R|FWZY]XWx hgQREiRGJEFgNKQKJKhhLMgNROZXY [
Z[]mXx
ZWG [XR|FWZY]XWx hgQREiRGgMNRjMEQ{ gjOMkRONgiE KMOZYG [X \Zmo
WoXGoX[xR|FWwYW X xNEJKFOKLNyjRghILjORhRMN
Zl\[mX
JSTUV WXYZ[ W\Z[X]oEU^_`abFcdefTEOJRMN kgjKMhRMNEQlgMJm n]Xm\W
g`p^qUTrcaTrTbUsqta^`JSTUVO^saJ uT
Ev^_`a
XW[ZxwmWZGWWZYX[ W\JQghENREJNgKMFQEMrRk QKFhRMNZXYx n]Xm\W
JSTUV WXYZ[ W\Z[X]wEU^_`abFcdefTIEgQRP{ MJ KhFEMPgJ [lw]mW
g`p^qUTrcaTrTbUsqta^`JSTUVO^saJ uT
Ev^_`a
o]wxWZYXW \OFKjNO{gRQr{RMJ j FEgjWZYX x
[lw]mW
JSTUV WXYZ[ W\Z[XnWEU^_`abFcdefTIEPgOQEMrK{{gJEQO KJgENKM ZlowmW
g`p^qUTrcaTrTbUsqta^`JSTUVO^saJ uT
Ev^_`a
}EML jP[ZXW\WZY[ XW\ K{{gJENMi{KjIEO~RNIEQMrkKQQRPIEQiEhRO{Kj }EML jPX\
ZlowmW
JSTUV WXYZ[ W\Z[XnZEU^_`abFcdefTIRQ~KjFEilQJ
\wZmXo
g`p^qUTrcaTrTbUsqta^`JSTUVO^saJ uT
Ev^_`a
ZW\XnWZYX W\{QR NOLF QgROG}KyMrR j grQ jlIKQNlML lzEOyRjlEg JQREM j
\wZmXo
JSTUV WXYZ[ W\Z[XnXEU^_`abFcdefTONE RrgOILjORhRMNL gN Zm[o
g`p^qUTrcaTrTbUsqta^`JSTUVO^saJ uT
Ev^_`a
F RXmZ \WXYW] \ iEjMgOyGJEORXW XZo[]\GZYwX\GZ \
Zm[o
JSTUVWXYZ[ W\Z[Xn[EU^_`abFcdefTIREJKMkRN jgME POFRJgEQON oxm]\
g`p^qUTrcaTrTbUsqta^`JSTUVO^saJ uTEv^_`a
!
"#
$
" #
%&'
"
$
()*
*
+), + -
.
" /
!
"%'01
'
"%
2
()*
*
+), + -
.
3 4
$ #%0'#
'
56 #
2
4
$ #%0'#*
56 #
2
4
$ #%0'#7
1 #%
23
! '5
"61
23
()*
*
+), + -
.
33
$
"
"38/
3
$
"
"38/
2
3
$
"
"38/
2
! '
'5
"&9
5'
2
2
()*
*
+), + -
.
:/
#'0
'
$0
* #
$0
#
"
7
1 #%
2
!*
$5
#;
"
<$
2
()*
*
+), + -
.
3 '#
# '0"=
#
/=
# *
# '#
$
2
3
!
$&
56#
2
()*
*
+), + -
.
=
"
#
/
3
=
"
#
/
3
=
"
#
/
3
!
*
9#
2
()*
*
+), + -
.
/ /
&'
$
#
/
2
!
=
<
# <
"'
#'*1 "
3
()*
*
+), + -
.
#;> 2#
*
1# $
6'?
*
#'
<#
6'?/
'
"'0
$
3
#;"
0'
*> /
'
!0
"<1
#*2
3
()*
*
+), + -
.
#
"
5
"
3
!0#
5'
"0'#*
()*
*
+), + -
. 0'#* '
#
*<
;
"
0'#*&'
*
01 $0
#
3
! <5
1
$% '5
%
2
!!"#$"
%&'
(
" )*+ ,#-,.#
('
/((
(
! 0-!.#&$"-
'
/(
&
&
1"!2,3#45
'/(
(
" )*+2.!6-7# -0.-5!" - ,% '
(%
'
.8-.9"#40!#5#:34$ .- $7 52#3
/
'
&(
(/
&.8$1 #2-,52 #-5 -2 "# ;.5$7 52#3
/
&
%
'
/
& &.8$1 #2-,52 #-5 -2 "# ;.5$7 52#3
&
%&'
&
&.8$1 #2-,52 #-5 -2 "# ;.5$7 52#3
&
%
'
(
" )*+"
'
(
"0.0:.#2"
1 #2.1#,3.! $
&
'
((
" )*+".5#30-.
/'
4/5#- ,;-3 #<
/'
(/
" )*+; .!<-.'# !-
% '
/
&
"#.$0"! <0.-5"<2 ! ,!#. -,$
'
(/
"#.$0"! <0.-5"<2 ! ,!#. -,$
'
/
" )*+; 2-4"3
%
/'
&$
&.6"
:0 5 #< !. 3#.$0.!
&/
'
&$
&$.6"
/
0!.,.=2 5.!# 0:3#.0.-5$:0 5 #<!.
&$
&
%
'/
$
&.6"
/
0!.,.#.0:3#.0.-5
$
&
'&
(
$(
&.6"
/
5 ". 5#.0:3#.0.-5(
$(
&
%
'
/
" )*+-" 35 "#5
%/'
(
;->
-" $1!. 53" !.;-3 #<
%/'
(
/
" )*+4- ##< 5.0-5.#-5 -!
('
/((
#: - 6.# 1!
('
/
" )*+!'-3#5= -
('&
-7/
&
3-1 #0- . #.
('&
/&
" )*+!-.% !!= 3-,2#!"
%
'
!"#$%&$'(! $)"!%)**$% +)%!,-.
/
0
+ 123!$% " *
/(04
'
$5+
+!$% 67 %$6$"!
'
/(04
+ 123*))6
0
4 (
%6)%$%$ &$'
0
+ 123 68$-)%8"&$!# )"
/ 0
'
78#%) "&$!# )"
4'
4 0
'
78#%) "&$!# )"
'
(
4 0
('
78#%) "&$!# )"
( '
/ 0
('(
78#%) "&$!# )"
('
/ 0
4
+ 123 6%" 9* "+$
/40
(4
* 6"):!7*:$ )"&$%)"
(%$6" #
;
/40
+ 123"&7$" :!)* !)"*$"!+-
0
(
:-(
)7%6"!% )":$ '
!)
0
+ 123 ) +!)"*<$*!<$"! %):
*:)%"
0
4
(+%$'6+*)-6$"!
)!+<-*'
(
0
+ 123 )!$* &!)%)6+"-
(/0
(
( ($*$&!)%$%&$
('
4 (/0
+ 123+8+) %)" *!"##%) +/"0
/(0
4
(
+%=6"#$6$"!& ' $"!%*&$)& %+ +%=
'
(
/(0
4
+ 123+%$: % *"$"
/(0
'"
(%")6>")"'%")6% #!$ "#'$9(
/(0
(
+ 123%"#$"!%*"0
(/ 0
?
(
(
":$! * +<)"$- !$6'
'
(/ 0
+ 123% ##$%'=$" '@ %
/ 0
4
)"'*&*$"#$ %"#$& *)+6$"!+*"%$&A$%&$
(
/ 0
+ 1238
/4
0
!"#$%&'( (& "$
)
*
+*,
*
*
- ./0%-1
+*,
%-1 (&!" ( 2
*+ ,
%-1 (&!" ( 2*
+,3
*
*
- ./0 "$( ! 1- $'#,+&
+,
3
* ,
$ 4&5$ !5'-
+,
3
*
*3
- ./0!(#& $&-(1- $'+
3,*
3 )
3 - 6!#-#$
3,*
*
*
- ./0'( #+&
3+
,
(&( 7'4&7(4(&!( 8(
)
3+
,
*
*
- ./0$ 7 -9
+
,
*3
%$( ! 8(
3%# (* %(& -$4&!&-&!
+
,
*
*
- ./0-% "9
+ ,3
#&
*
"9& (!$9 1
+ ,3
*
*
*
- ./0!(4- !1 (! 9&#$#7'&
*+,
*3
98)!'9$+5 '&-
)
*+,
*
*
- ./0!4!(&! - ( &
,
%)
*)
* !4!%& (9 7(%# &8#(
3*
,
*
*
- ./0!(8 &!1 &(
,
(:-
%##!#"($#4(474!& $'! #(-!
,
*
*
- ./08# !(:&1! (+&,
+
3,
*)
*
$ 4&## (-
+
3,
*
*
- ./0 "(!#! 5# ! &
+ ,
3
- 6! ( 4&!( (
)
+ ,
*
*
- ./0;14 &1! (
,
! 79!$(75 6(!"95#$!
,
!
"#$$%#&'% (
)*
+,*
-
./ 01/0 /0
2$-' 0 3./$
!
/'
0 -
0 -/
!
"#$$%#&'% (
)
$ +!,*,
3./$,4
2 !5 0$
5246 /6
' $.
0 -/
2 0
!
30
,
2 /03 '0/-2-61-/'.20 /6
*+ +, *
+
!
"#$$%#&'% (
)
*
,02 -
2
/0
-/ 4
,
+
!
30
, ,
78
$-.
/0'-2.0 -/'
2!9
:+
*,
*+!;
"#$$%#&'% (
)
1
,
- 2
' 1
-3
4-
6' ,4
+*!
1
,*
, ,- 2
' 1
-3
4-
6' ,4 ,
;*!
30
,
0 --2 0
/2
/ 66 -. ,; +;
,*
+
!
"#$$%#&'% (
)
,;
*
0 '7- $<
4-/
2' 4 0 .
,
+
!
30
, +
$5--$.82
5 2
;
*,
,
*+!
"#$$%#&'% (
)
,26
2' '0 -.6$
8
,
+!
,26
2' '0 -.6$
8
,
,!;
,26
2' '0 -.6$
8
,
+*!
,26
2' '0 -.6$
8
,
*!
,
,26
2' '0 -.6$
8
,
!
+
,26
2' '0 -.6$
8
,
!
*
,26
2' '0 -.6$
8
,
,!
;
,26
2' '0 -.6$
8
,
!
,26
2' '0 -.6$
8
,
,!
,26
2' '0 -.6$
8
,
*!
,26
2' '0 -.6$
8
,
*;!
,26
2' '0 -.6$
8
,
,+!
30
, *
'0-
5 /$2 , +;
,
!
"#$$%#&'% (
)
*;
0$
0 /0-/2 /0
/ 64.20
' =
+
-/0'
,
!
8 -./0'
1 820>0%#>+
?
+
!+
>
+?
!,
30>
?
+
,!
!"
#
$
%&' (
)*+, -./,0123,456147,8.*,0.2, 9:);.<=>?761</
)4.<@7/A6<
?261</
;.<=?761</BCDEFGC H IJKLMDCN GOPHQRST UVW XYZVYCS[\]^_D`abcRCH PM YdefU
g]h[iSRj`^RjR_Skil^[]HQRSTM[k^H mR
Cn[\]^
YZoUXUUYWZ VUXMpqPj gKrMsH tCKJ qNVUX
YdefU
HQRST UVW XYZVVCS[\]^_D`abcRCHuj
YdXvwfeU
g]h[iSRj`^RjR_Skil^[]HQRSTM[k^H mR
Cn[\]^
YUVxEYZVXUYWUdV XCHujHgLNugjPuCLPqYUWVxEYWZVX
YdXvwfeU
HQRST UVW XYZVZCS[\]^_D`abcRCLy
YVefo
g]h[iSRj`^RjR_Skil^[]HQRSTM[k^H mR
Cn[\]^
VZUEVY XUVWUY XHCDLgIKOgMLKrEUVWYEVWf UX
YVefo
HQRST UVW XYZVxCS[\]^_D`abcRDqItPHLjPs OIDzPKLy{gKC HP MIOJLgIKMvOH
dXeU
g]h[iSRj`^RjR_Skil^[]HQRSTM[k^H mR
Cn[\]^ XUYWZ VUXOPrCOMPqsgHPME CKHLJCqNuPMLEUYWVX
dXeU
HQRST UVW XYZVXCS[\]^_D`abcRGOCgMjPO|MGJ gKP DqIjJHLM VoeUY
g]h[iSRj`^RjR_Skil^[]HQRSTM[k^H mR
Cn[\]^
tCK|VXUVWUY X I{{gHPMJD OgPMUYWXV}CDM~VXE
VoeUY
HQRST UVW XYZVdCS[\]^_D`abcR IMHCq gOI
dUe
g]h[iSRj`^RjR_Skil^[]HQRSTM[k^H mR
Cn[\]^
UVY XPDUVWY UXHCHPILqCgK rEMgjPuCOsPKjgruPGgKCqUVWY X dUe
HQRST UVW XYZVwCS[\]^_D`abcRHgKjNepJOyCM IHgCLPME
{IqPKMgHIKMJOLgKr
ZUe
g]h[iSRj`^RjR_Skil^[]HQRSTM[k^H mR
Cn[\]^
YXoCUYWZ VUXOCLPK DqgKLC ONMgtCKJ qNVUX
ZUe
HQRST UVW XYZVfCS[\]^_D`abcRHgKLCMHIqD
xvXZUew
g]h[iSRj`^RjR_Skil^[]HQRSTM[k^H mR
Cn[\]^
tCK|VXUVWUY XJKg{IqzWzCLMtCKJ qNVUX
xvXZUew
HQRST UVW XYZVoCS[\]^_D`abcRHIzHCML
fZxeYU
g]h[iSRj`^RjR_Skil^[]HQRSTM[k^H mRCn[\]^fVYEU fXUYWVx UXLPO sgMIKyDJGOgHug{gCH PM UYWVoEUWf X fZxeYU
HQRSTUVWU XYZ UCS[\]^_D`abcRHIzHCMLGJMgKP
ZvVwdeY
!" "#
$
%
&
'
#(
)
) !" "#
)#$%
&
)
'
#($
#
!" "#
)#$%
&
)
)(
* +,-./! .0. 1". '
(
$
2!"0 2!/ " ! 3./! /4&2 "4/1
(
* +,-.1 "5.3 6!
')(
7 1 /58
) " . */.! 03! &7 1 /58
')(
* +,-!60 0'(
)'$
(
#$
)
!/34! 1 /! 9 35
)'$
(
)
* +,-!9 0/ 0". */.1" (
($
)
)
) */:716;. *2 *&.
($
* +,- 04 (
')$(
&
)
":./!/ .(&6.9/52! "4!/ 5"/! "<4/.104
')$(
* +,- 0/! 4 .5 "!6
')#(
$
) 9"! /: 0(.64." 0=6. "4 56 "
)&
#
')#(
$
* +,-4 .3"9/!'
'
()
)$#
11" * ./"= 1"/56. "./ 0&7
'
()
* +,-4 5/
'#(
$
#
$
7 "./ 1* !&".9! '" 1! !".2!/
'#(
#
* +,-7. "2! "1/! . 2 !5
'
(
).2 !9/:
" !.3"4!2 !5. 3!/
*. ./ 4*
'
(
)
* +,- 9! ": 1:!9>
')#(
$)& )
;/ ! ! 3./
$
&
)
')#(
)
* +,-:6 !5&4./ ."!' (
$'#(
$
#$
)
)"/3 ! 0! / 0 "/ *./" . * 0!/2!
)
)'
()
$
)"/3 ! 0! / 0 "/ *./" . * 0!/2!
)
'#(
$
!"#
!
$
%
&'(()'*
) +
,
-
./
0
#
1 0
$!
23
%
0
4
%
./%
&'(()'*
) +
,
/-5
# 0
3
#62
7
.5
./%
#8! !
#
#
1
%
&'(()'*
) +
,
/.
#8! !
"#
1
0
%
#
!
( #9
" 06
1
0
4 %
&'(()'*
) +
,
3-/
#
$
" 063
7 3
- %
3-
#
$
" 063
7 3
- %
3-5/
.
#
$
" 063
7 3
5 %
3-/5
#
$
" 063
7 3
5
%
3-
5.5
#
$
" 063
7 3
5
%
3- .
#
$
" 063
7
3-/
4 %
3-
- #
$
" 063
7 3
%
.
$ 1
9 #
-4
.5%
&'(()'*
) +
,
/ -3. .
#68
( #
#6.
/54
.%
-
/ .3-
1
1
(0
4 %
/
:! 1
(
%
&'(()'*
) +
,
/
/
( 6
1(#
; !#23#
12#
1 :!
6 %
-
$
/%
&'(()'*
) +
,
.
/ $::;
2 $! 2
$
1"!
/%
5
!
:
/45%.
&'(()'*
) +
,
5
-
(8
!$$
#
. 3
/45%.
($#
$
6 #:
4
%
/4
%
&'(()'*
) +
,
05
-
(
12#
:
:!
#!
1<
" 6
/4
%
6
!
3!
;!##
1%
% .
&'(()'*
) +
,
/
$!!(
(;0
1
"
% .
2"#4:
2 698
; 1
45/
%
&'(()'*
) +
,-5/-
1
0
3
#"
68
#3 0 #2 "
4 /%
-5
1
0
3
#
0
" !0
3 0 #2 "
.%
!
"##$"%
$ &
'
()
*++ ,
-.( /
0 .-1
-
2 3
,3 45**67 5
(
-
!
"##$"%
$ &
'
74
2 3
,3*53*5 *338
-(
()
( + 3
*548
38
)
-
49
63*,
(
-
!
"##$"%
$ &
'
-
*5.
34 ,3
38
9*3#3
# .
(
-
)
+32*5
32
-(
!
"##$"%
$ &
'
).
2 .
5 ,
322*5 *356
.)
-(
73 45**6
5
-)
!
"##$"%
$ &
'
- .
)
)
*53
2
5 625
,
, *3+
.(
-)
(
,5 #
*2
3
-
!
"##$"%
$ &
'
5-)
*
6
725+*3,223
8 *
3#+7
-
,5 83
:, #5638 ;
, 7*
-
!
"##$"%
$ &
'
-
<
5 *3
38 . :3
7<
5, 37
-
)
=>:
59
!
"##$"%
$ &
'
)-) 483*5 )
+
-
(
5+ 345**67*5, 56
)
)-
!
"##$"%
$ &
'
(-
-,3 7
23
:#6
262
.
-
+
-
64
45**6 5/
41
-(
)
(
!
"##$"%
$ &
'
- (-
( 47,:
9, : 3 *535 =
-) .- )
(
+
-
63
5 , )
!
"##$"%
$ &
'
)(
=: 2 *5
*+-
?:
*,5
7 :
@$"
@-
A
(
@-A
)
-
+@
A
)
Item D. 2.
DATE 03/13/2025
TO Honorable Mayor and City Council Members
FROM Sheila Harrington, City Clerk
SUBJECT Approval of February 27, 2025, minutes
Attachments
Minutes
City of Newark | Newark City Council
Mayor Michael K. Hannon | Vice Mayor Eve Marie Little | Council Members: Matthew Jorgens, Terrence Grindall, Julie Del Catancio
Minutes
Thursday, February 27, 2025
7:00 P.M.
A. ROLL CALL
Mayor Hannon called the meeting to order at 7:00 p.m. Council Members Grindall, Jorgens, Catancio, and Vice Mayor Little were present.
B. PRESENTATIONS
1. Alameda County Mosquito Abatement District Presentation Eric Hentschke, the City Council appointed Trustee to the District, introduced Judith Pierce, Public Education Officer who gave the presentation. Presentation on file with City Clerk.
C. PUBLIC COMMENT
Molly Connolly reported dead trees located around Stevenson Boulevard, Parada, and Cherry Streets and referenced materials that she sent to the City Council before the meeting (on file with City Clerk). She was concerned with the liability for all parties and potential reprisals against her for reporting. She requested that the City investigate the trees and request an opinion from the City of Fremont.
Larry Jenkins, Waterford Homeowners Association (HOA) provided a plan for the removal of the trees referenced by Ms. Connolly.
Devdatta Narote and Sunil of Hindu Swayamsevak Sangh, USA Inc. spoke about Surya Namaskar (Sun Salutation Yogathon) and food donation efforts through their Sewa initiative.
Page No. 2
City of Newark City Council Minutes February 27, 2025
Rosalia Avilla invited the public to attend a Community Tree Planting at Mayhews Landing Park on March 8, 2025. The event is sponsored by the Puente Program and the Friends of Urban Forest.
D. CONSENT CALENDAR
Council Member Jorgens moved, Council Member Catancio seconded, to approve Consent Calendar items D.1 to D.6, that the resolutions be numbered consecutively, and that reading of the titles suffice for adoption. The motion passed, 5 AYES.
1. Approval of Audited Demands
2. Approval of February 13, 2025, minutes
3. Adopt a resolution approving the Consulting Services Agreement with Lance, Soll & Lunghard, LLP (LSL), Certified Public Accountants, for Professional Auditing Services
Resolution No. 11726
4. Adopt a resolution approving a modification to a contractual services agreement with Surf to Snow Environmental Resource Management, Inc. to conduct inspections of industrial and commercial facilities as required by the City's stormwater discharge permit
Resolution No. 11727
5. Adopt a resolution authorizing the City Manager to execute Contractual Service Agreements for On-Call Civil Engineering Services with the following consultants: Coastland Civil Engineering, LLP, CSW-Stuber Stroeh Engineering Group, Inc., Haley & Aldrich, Inc., and F.J. Kennedy and Associates, Inc.
Resolution No. 11728
6. Adopt a resolution acknowledging receipt of the report made by the Fire Chief of the Alameda County Fire Department regarding the inspection of certain occupancies required to perform annual inspections pursuant to California Health and Safety Code Section 13146.2 and 13146.3, which includes educational and residential occupancies
Resolution No. 11729
Page No. 3
City of Newark City Council Minutes February 27, 2025
Mayor Hannon called for a recess at 7:40 p.m. The meeting resumed at 7:45 p.m.
E. PUBLIC HEARINGS
1. Consideration of an Appeal from the decision of the Public Works Director to issue a tree removal permit to the Waterford Association authorizing removal of a Eucalyptus Tree on private property located at 6200 Buena Vista Drive Motion Approved to affirm the Public Works Director’s decision Public Works Director Young gave the staff report reviewing his decision to issue the tree removal permit. He recommended that the City Council consider the appeal and then either affirm, modify, or reverse his decision.
Molly Connolly, the appellant, shared her arborist report that found the tree to be healthy, savable, and low risk for failureShe requested that the tree permit be revised to list the tree tag numbers and to defer a decision. She suggested tree trimming to decrease the risk. She referenced materials that she sent to the City Council before the meeting (on file with City Clerk).
Ryan Serene, Waterford Homeowners Association President, requested that the City Council affirm the Public Works Director’s decision. The HOA conducted a tree inventory in October. He outlined trees scheduled to be removed or noticed for potential removal. He reviewed the tree 199 removal timeline. Presentation on file with City Clerk.
Mayor Hannon opened the public hearing at 8:20 p.m.
Charles Gee, owner of the unit next to the tree, requested that the City Council approve the removal of the tree. He stated that tree branches fall, are a fire hazard, life threatening and attract animals and pests.
Mayor Hannon closed the public hearing at 8:23 p.m.
City Council discussion ensued.
Vice Mayor Little moved, Council Member Grindall seconded, to adopt a motion Page No. 4
City of Newark City Council Minutes February 27, 2025
affirming the Public Works Director decision to issue a tree removal permit. The motion passed, 5 AYES.
F. OTHER BUSINESS
1. Adopt a resolution authorizing the City Manager to execute the amendment to the Affordable Housing Loan Agreement for the Thornton Avenue Apartments project, including the Purchase and Sale Agreement, deed of trust and all related documents necessary to complete the purchase and conveyance of property located at 6347-6375 Thornton Avenue, a Short-Term Lease Agreement with Thornton, L.P. and a Lease Option Agreement with Thornton, L.P. for said property, and adopt a resolution to declare the property exempt surplus land. Exempt from the CEQA per CEQA Guidelines Sections 15061(b) (3) and 15312
Resolution No.s 11730 to 11731
Council Member Jorgens announced that he would recuse due to a leasehold interest near the project. Council Member Jorgens left the City Council Chambers.
City Manager Benoun provided background information on the project.
Housing Policy and Programs Manager Coulom, and Senior Planner Lopez gave the presentation. Presentation on file with City Clerk. The City Council authorized a $12 million loan to Satellite Affordable Housing Associates (SAHA) for the acquisition and development of apartments on Thornton Avenue for low to very low-income households. SAHA is seeking state and federal assistance for the project. The City can increase the Project’s likelihood of success in obtaining other funding sources by acquiring the Project Site and leasing it back to SAHA for a long-term and nominal cost.
They recommended that the City Council adopt a resolution authorizing the City Manager to execute the amendment to the Affordable Housing Loan Agreement for the Thornton Avenue Apartments project, including the Purchase and Sale Agreement, deed of trust and all related documents necessary to complete the purchase and conveyance of property located at 6347-6375 Thornton Avenue, a Short-Term Lease Agreement with Thornton, L.P. and a Lease Option Agreement with Thornton, L.P. for said property, and Page No. 5
City of Newark City Council Minutes February 27, 2025
adopt a resolution to declare the property exempt surplus land.
No one from the public requested to speak.
Council discussion ensued.
Council Member Grindall moved, Council Member Catancio seconded, to adopt the resolutions. The motion passed, 4 AYES, 1 RECUSED.
Council Member Jorgens returned to the Council Chambers.
2. Community Preservation Presentation
Community Preservation Manager Carrillo gave a presentation on the code enforcement process, Community Preservation Division accomplishments, and planned initiatives.
No one from the public requested to speak.
Council Member Grindall requested a proactive approach for commercial property code enforcement. He suggested weekend hours for code enforcement.
Mayor Hannon requested focus on absentee landlords and to provide an annual community preservation report to the City Council.
This item was informational only.
3. Adopt a resolution to appoint Corazon Dino as an Interim Human Resources Director pursuant to Government Code section 21221(h)
Resolution No. 11732
Assistant City Manager Hovorka gave the staff report recommending approval.
No one from the public requested to speak.
Council Member Jorgens moved, Council Member Grindall seconded, to adopt the resolution. The motion passed, 5 AYES.
Page No. 6
City of Newark City Council Minutes February 27, 2025
G. CITY MANAGER UPDATES
City Manager Benoun announced that the Recreation and Community Services Recreation Guide was available at newarkca.gov.
H. CITY COUNCIL MATTERS
1. Adopt a resolution approving the Mayor's appointments to the Planning Commission and Measure GG Tax Oversight Committee
Resolution No. 11733
Mayor Hannon recommended the appointment of Darshpal “Jolly” Dhillon to the Planning Commission. He stated that he would defer his appointments to the Measure GG Tax Oversight Committee to a future date.
Vice Mayor Little moved, Council Member Grindall seconded, to appoint Darshpal “Jolly” Dhillon to the Planning Commission. The motion passed, 5 AYES.
Council Member Catancio thanked staff for the presentations. She announced registration opened for the next school year, March 8, 2025 tree planting with the Newark Memorial High School Puente Program, March 14, 2025, Color Run and Pancakes at Newark Junior High School, and March 15, 2025, Newark Memorial High School Crab feed at Swiss Park.
Council Member Grindall announced March 16, 2025 Coffee with a Council Member would be held at the Starbucks located at 39201 Cedar Boulevard.
Vice Mayor Little announced her VIP Pokemon Party at the 88 Card House on March 6, 2025, Your Identity Under Siege for seniors at the Newark Library on April 5, 2025, and the Mission Peak Yo-yo day at the Silliman Center on April 5, 2025.
Mayor Hannon thanked City Manager Benoun and Police Chief Arguello for attending the Promotores meeting and reinforcing the Welcoming City status.
He stated that the Alameda County Transportation Committee meeting discussed scam FasTrak invoices. He requested an article in the Newark News Page No. 7
City of Newark City Council Minutes February 27, 2025
on scams. He stated that there would be a fundraiser this weekend for the Newark High School Band and Choir.
I. CLOSED SESSION
1. Closed session for conference with Labor Negotiators pursuant to California Government Code Section 54957.6.
Agency designated representatives: Assistant City Manager Hovorka, Interim Human Resources Director Dino, and Special Counsel Jesse Lad Employee Organization: The Newark Police Association
Agency designated representatives: Assistant City Manager Hovorka, and Interim Human Resources Director Dino
Employee Organizations: The Newark Police Management Association and the Newark Association of Miscellaneous Employees
Unrepresented Employees: Employees subject to the Compensation and Benefit Plan for the Confidential Employee Group
Agency designated representative: Interim Human Resources Director Dino Unrepresented Employees: Employees subject to the Compensation and Benefit Plan for the Management, Supervisory, and Professional Employee Group
No one from the public requested to speak.
At 10:00 p.m, the City Council recessed into a Closed Session.
At 12:02 a.m. the City Council reconvened in open session.
J. ADJOURNMENT
Mayor Hannon adjourned the meeting at 12:03 a.m.
Item D. 3.
DATE 03/13/2025
TO Honorable Mayor and City Council Members
FROM Krysten Lee, Finance Director
SUBJECT Mid-year budget review and adopt a resolution amending the 2024-2026 Biennial Budget and Capital Improvement Plan for Fiscal Year 2025 SUMMARY AND RECOMMENDATION
As part of the City's mid-year budget review, staff assess financial trends, operational adjustments, and emerging fiscal needs. This report analyzes the unaudited General Fund status, comparing year-end projections based on second-quarter actuals (July 1 – December 31, 2024) to the Amended Budget.
The review evaluates budget performance since the Biennial Budget’s adoption, highlighting key developments and necessary adjustments before the fiscal year ends on June 30. It provides a financial outlook by assessing General Fund revenues and expenditures against year-end projections.
The FY 2025 mid-year budget amendments reflect necessary adjustments to align revenues and expenditures with updated financial conditions, operational priorities, and unanticipated needs. General Fund revenues are projected at $87.3 million, exceeding the Amended Budget by $2.4 million (2.8%), primarily due to higher investment earnings, federal reimbursements, and increased Transient Occupancy Tax (TOT) revenue following the passage of Measure LL.
General Fund expenditures are projected at $91.7 million, which includes a $12.0 million transfer to the Section 115 Trust for pension liability funding. Excluding this transfer, operating expenditures total $79.7 million, $5.7 million below the Amended Budget, largely due to vacant positions and lower-than-expected non-personnel costs.
Key revenue adjustments include:
$1.4 million increase in investment earnings from higher cash balances. $1.2 million in ARPA reimbursements for eligible personnel and non-personnel expenses. $99,200 in FEMA reimbursements for severe storm-related expenses. $125,000 in transfers of residual interest from prior debt service funds to the General Fund. $150,000 Local Early Action Planning (LEAP) Grant allocation to support housing initiatives.
Key expenditure adjustments include:
$162,000 increase to the Police part-time personnel budget to reflect the actual hourly rate and associated costs.
$47,000 for updated OPEB actuarial obligations.
$40,000 for TextMyGov a public outreach and communication platform. $41,000 for IT equipment purchases.
$100,000 for Silliman Center facility repairs.
$60,000 for encampment removal services.
$17,000 for the State of the City general contractual services. $50,000 for Newark’s Street Tree Management Program (TMP). $365,264 increase for the Annual Curb, Gutter, and Sidewalk Replacement Project to integrate design and construction phases, optimizing costs, accelerating completion, and ensuring ADA compliance.
$530,000 increase for the Annual Accessible Curb Ramps Project to integrate design and construction phases, optimizing costs, accelerating completion, and ensuring ADA compliance. $1.06 million transfer to close out remaining ARPA funds for eligible projects.
Other minor amendments and associated details are in the attachment, Exhibit A.
Staff recommends that the City Council adopt a Resolution amending the 2024-2026 Biennial Budget and Capital Improvement Plan for Fiscal Year (FY) 2025 in accordance with the proposed adjustments outlined in Exhibit A.
BACKGROUND
The City Council adopted the 2024-2026 Biennial Budget and Capital Improvement Plan on June 27, The City Council adopted the 2024-2026 Biennial Budget and Capital Improvement Plan on June 27, 2024 (Resolution No. 11665). Budget amendments are made as needed throughout the year to reflect unanticipated changes in revenues and expenditures. As part of standard practice, mid-year budget amendments are presented to the City Council for consideration.
The mid-year review updates available City resources based on:
1.Audited financial statements for FY 2024, presented to the City Council on January 23, 2025.
2. Unaudited financial data through the second quarter of FY 2025.
3.Year-end projections, incorporating the latest economic trends.
DISCUSSION/ANALYSIS
FY 2025 is the first year of the City's biennial budget cycle. As part of the mid-year review process, a number of amendments are proposed to align budgeted revenues and expenditures with the latest financial data and economic trends. These amendments are identified where changes have occurred since adopting the Biennial Budget in June 2024.
Economic Indicators
The U.S. inflation rate for the 12-month period ending January 2025 is 3%, up from 2.9% in December and 2.8% in November. Higher costs for housing, energy, and food, including fluctuations in gas prices, have contributed to this increase. Housing costs alone account for 60% of overall inflation, driven by rising home insurance rates.
Energy and food costs also contributed to the increase, where grocery prices jumped 0.5% from December. Circumstances such as weather and disease (such as the avian flu affecting egg prices) also influence food and energy prices and can be volatile.
Core CPI, which excludes food and energy, has slowed, rising 3.2% year-over-year in December 2024, compared to 3.9% in December 2023.
The U.S. economy grew at an annualized rate of 3.2% in Q4 2023, primarily due to increases in consumer, state, and federal government spending. In Q4 2024, GDP growth slowed to 2.3%, down from 3.1% in Q3, reflecting a decline in private investment.
Newark’s median household income of $164,909 surpasses both the Alameda County median ($126,240) and state averages.
Unemployment rates have risen slightly. As of December 2024:
U.S. Unemployment Rate: 4.1% (up from 3.8% in December 2023).
California: 5.5% (up from 5.2%).
San Francisco-Oakland-Hayward Metro Area: 4.0%.
Newark’s median home price now stands at $1.3 million, up from $1.2 million last year, exceeding both the Alameda County average of $1.1 million and the California statewide average of $869,000.
General Fund: Operating Revenues
The FY 2025 mid-year report includes projections for all General Fund revenue sources. Overall, Projected General Fund revenues for FY 2025 total $87.3 million, reflecting:
5.7% growth ($4.7 million) over FY 2024 actuals.
2.8% increase ($2.4 million) above the Amended Budget.
The table below compares FY 2025 projected revenues with the FY 2025 Amended Budget and FY 2024 actuals.
Property Taxes
Property tax, the City’s largest revenue source, is projected at $33.3 million, reflecting 5.6% growth ($1.8 million) over the prior year but slightly below budget. Growth is attributed to higher assessed values from property ownership changes and new development.
Property tax revenue is generally the most stable source of revenue due to a combination of higher assessed valuations on properties due to ownership changes and annual inflation adjustments allowed under Proposition 13. Under Proposition 13, the annual real estate tax on a parcel of property is limited to 1% of its assessed value. This assessed value may be increased only by a maximum of 2% per year until the property has a change of ownership. Increases in assessed values are often related to changes in ownership and new development.
According to the Alameda County Assessor, Newark’s FY 2024 assessed valuation increased by
7.24%, exceeding the countywide growth of 5.06%. Property tax revenues typically lag transactions by 12–18 months, with major distributions received in December, March, and April.
No budget adjustment is recommended for property tax revenues at this time, as they remain in line with the adopted budget. Major distributions in December, March, and April will provide greater clarity, allowing for reassessment if necessary. Staff, in coordination with the Alameda County Assessor and HdL Coren & Cone, will continue to monitor revenue trends.
Sales Tax
Sales tax, constituting the General Fund's second-largest revenue source, is projected to be $22.2 million (Bradley-Burns 1% = $14.9 million and Measure GG = $7.3 million) for FY 2025.
This is $1.1 million below the Amended Budget but $0.9 million higher than FY 2024.
HdL’s latest outlook indicates net-negative growth in key sectors:
Auto & Transportation: -6.2% (due to declining new car sales).
Building & Construction: -2.5%.
General Consumer Goods: -2.4%.
Measure GG saw gains in business-industry and consumer goods sectors.
Given flat taxable sales in Alameda County and a 1.9% decline in the Bay Area, staff recommends no budget adjustment but will monitor year-end updates.
Transient Occupancy Tax (TOT)
The City has eleven hotels (ALoft Silicon Valley, Chase Suites, Wyndham Garden, Courtyard by Marriot, DoubleTree Hilton, E-Z8 Motel, Homewood Suites Hilton, Newark Residence Inn by Marriot, Staybridge Suites, SpringHill Suites by Marriott, and Hyatt Place Newark). Newark’s 11 hotels have maintained a 67.9% average occupancy rate, slightly below last year’s 68.1%.
On November 5, 2024, Newark voters approved Measure LL with 80.44% support, increasing the Transient Occupancy Tax (TOT) rate from 10% to 14%, effective January 1, 2025. This rate increase applies to the second half of FY 2025 and is expected to generate additional revenue.
To account for this adjustment, projected FY 2025 TOT revenue has been revised from $5.2 million to $6.4 million, reflecting a $1.1 million increase over the Amended Budget.
Staff recommends updating the Adopted Budget to reflect this revised revenue projection.
Utility Users Tax (UUT)
The City of Newark imposes a UUT on the use of cable, electric, gas, wired telecom, and wireless telecom services at a rate of 3.25%, and is projected to be $4.5 million at the end FY 2025. Generating about 5.2% of the General Fund revenues, this projection is inline with the Amended Budget.
No budget adjustments are recommended at this time.
Licenses, Permits, and Fees
The Licenses, Permits & Fees category, which includes recreation fees, franchise fees, animal licenses, and various permits, is projected to reach $12.9 million for FY 2025—exceeding both the $12.1 million Amended Budget and $11.8 million from FY 2024.
Franchise Fees
The City collects franchise fees from utility providers for the use of public streets and rights-of-way, including cable TV, garbage, electricity, and natural gas services. These payments are received on an uneven schedule throughout the fiscal year, making mid-year receipts less predictive of year-end totals.
Franchise Fee revenue is projected at $5.2 million, slightly above both the $5.1 million Amended Budget and $5 million from FY 2024.
Licenses & Permits
Revenues from zoning review fees, code enforcement fees, and construction, encroachment, and building permits are expected to total $3.9 million, above the $3.6 million budgeted and relatively flat compared to FY 2024.
Recreation Fees
Revenue from recreation services is projected at $2.5 million, reflecting an increase of $234,000 over the Amended Budget and $197,000 over FY 2024. This growth is driven by higher participation in revenue-generating programs at the Silliman Aquatic Center and General Recreation Services.
Although certain fees were adjusted in the second half of the fiscal year to align with the updated Master Fee Schedule, staff remains cautious in revising revenue projections and does not recommend any budget adjustments at this time.
Investment Income
Investment income represents the largest growth in General Fund revenue compared to the Amended Budget. While interest rates have gradually declined in recent quarters, higher cash balances have offset the impact, leading to increased earnings.
Year-over-year comparisons show:
First Quarter Average Interest Rates: 5.38% (FY 2025) vs. 5.46% (FY 2024) Second Quarter Average Interest Rates: 4.80% (FY 2025) vs. 5.07% (FY 2024) Despite declining rates, higher cash balances from prior fiscal year interest earnings have boosted returns in the Local Agency Investment Fund (LAIF) and California Asset Management Program returns in the Local Agency Investment Fund (LAIF) and California Asset Management Program (CAMP). As a result, FY 2025 investment income is projected at $5 million, up from the $3.6 million Adopted Budget.
To maximize returns, the City transferred funds from general checking and sweep accounts into CAMP, which reported a seven-day yield of 4.52% as of February 13, 2025. LAIF’s average monthly yield for December 2024 was 4.434%, with a quarterly apportionment rate of 4.62% for the period ending December 31, 2024.
General Fund: Expenditures (Appropriations)
The following table provides through second-quarter actual expenditure comparisons and compares the Fiscal Year 2024 actual results with the FY 2025 Amended Budget and Staff's FY 2025 mid-year estimate for year-end.
The General Fund expenditures for FY 2025 are projected to be $91.7 million at the end of the fiscal year, which includes the $12 million payment to PARS for the establishment of the Section 115 Trust to address the pension liability. Excluding this $12 million payment, FY 2025 projected expenditures would be $79.7 million, which is $5.3 million higher than FY 2024. Compared to the Amended Budget, the FY 2025 projection is $5.7 million less than anticipated.
Personnel expenditures are projected to be lower than the Amended Budget due to staffing vacancies, namely in the Police Department and the Public Works Engineering Department. Non-Personnel Expenditures for FY 2025 are projected at $20.13 million, a 17.2% increase over FY 2024 but $3.47 million below the Amended Budget, reflecting encumbrances and actual spending trends. The increase is primarily driven by inflationary factors and rising costs across key categories, including materials and supplies (4.3%), services, including travel and training but excluding Alameda County Fire (6.2%), utilities (11.9%), and Internal Service Fund (ISF) allocations (25.2%). The ISF increase is largely attributed to an approximate 25% year-over-year rise in Public Liability insurance costs, significantly impacting expenditures, with FY 2025 department charges adjusted accordingly. Despite these cost increases, Non-Personnel Expenditures remain under budget due to cost control efforts and a prudent approach to discretionary spending.
The Alameda County Fire Department (ACFD) services expenditure is projected to increase by The Alameda County Fire Department (ACFD) services expenditure is projected to increase by $660,000 (5.0%) in FY 2025 compared to prior fiscal year (FY 2024), aligning with the Amended Budget, which anticipated this increase when adopted in June 2024.
Funding for the PARS $12.0 million payment comes from a transfer from the Pension and OPEB Reserve fund, leaving about $1.0 million in the reserve fund. In addition to this transfer, about $1.0 million was also transferred from the ARPA fund to support projects previously approved.
It should also be noted that excess Measure GG funds over debt service have been earmarked as assigned fund balance and is not available to fund operating expenditures. Similarly, the additional 4% increase in TOT resulting from the passage of Measure LL, is set aside for new debt funding in the near future.
Special Revenue Funds
American Rescue Plan Act (ARPA): The last quarter of calendar year 2025 was the final period of performance to spend down ARPA funds, unless obligated for future spending. Approximately $1.1 million has been added as a budget amendment to transfer the remaining funds into the General Fund and Capital Projects Fund to largely fund personnel positions (previously frozen at the onset of the pandemic) and the Newark Resource Center project.
Capital Improvement Projects
Alameda County Transportation Commission (ACTC) Measure B and Measure BB funds support the Annual Curb, Gutter, and Sidewalk Replacement Project (CIPA 10007.FY2025) and the Annual Accessible Curb Ramps Project (CIPA 10001.FY2025) as part of the FY 2025 adopted Capital Improvement Plan (CIP). Initially, these projects were funded for design work only, with $400,000 allocated for curb, gutter, and sidewalk replacements and $75,000 for accessible curb ramps.
The City is now ready to proceed with both the design and construction phases and aims to go out to bid to integrate construction to maximize efficiency. Appropriating both design and construction funding together is beneficial for the following reasons:
Allows sufficient time for bid preparation, advertising, and award before peak construction season when bids are typically higher.
Ensures contracts are in place before summer, when weather conditions are optimal for concrete work.
Provides contractors ample time for workforce scheduling and material procurement.
Ensures compliance with federal ADA requirements for curb ramps as part of upcoming paving projects.
To facilitate this approach, staff is requesting additional appropriations of $365,264 for curb, gutter, and sidewalk replacements and $530,000 for accessible curb ramps to include the construction phase.
These projects are expected to be completed by the end of the fiscal year.
Additionally, to maximize roadway coverage, improve cost efficiency, and ensure long-term pavement maintenance, $4 million has been reallocated from the Annual Street Asphalt Concrete Overlay Program (CIPA10005.FY2025) to the Street Slurry Seal Program (CIPA10006.FY2025). This adjustment utilizes existing approved funds, requiring no additional appropriations, and aligns with available staffing resources and project timing.
The reallocation expands the number of streets receiving rehabilitation, helping to maintain the City’s overall pavement condition while enhancing cost efficiency and extending pavement life. By shifting funds to slurry sealing, the City can preserve more streets through preventative maintenance, delaying the need for costly overlays and reducing long-term repair expenses.
Some streets originally planned for overlay will be deferred to a future capital cycle, but the reallocation ensures that a greater number of streets receive necessary maintenance, preventing deterioration and improving overall road conditions. This decision aligns with the City’s Pavement Management Program improving overall road conditions. This decision aligns with the City’s Pavement Management Program (PMP), which prioritizes cost-effective street maintenance strategies. Maintaining an active PMP is also required by the Metropolitan Transportation Commission for Bay Area cities to remain eligible for certain funding opportunities. To provide further insight into the City's pavement maintenance strategies and funding considerations, staff is planning to present a summary of the Pavement Management Program to the City Council at a meeting in April or May of this year.
Internal Services Funds
The Internal Service Funds include Equipment Maintenance, Equipment Replacement, Technology Equipment Replacement, Building Maintenance, Office Support, Public Liability Insurance and Worker's Compensation. The revenues in these funds are derived from charges to the departments/funds receiving their services.
Staff is recommending budget amendments to the Equipment and Building Maintenance Funds of $100 thousand each to address added expenses for unanticipated repairs and safety/emergency services.
General Fund Reserves and Unallocated Fund Balance
As of the end of FY 2024, the General Fund Unassigned Fund Balance was $37.2 million, of which $22.2 million represents Emergency and Fiscal Reserves to be maintained as 30% of prior year General Fund Operating Expenditures. The $15.0 million balance remaining in the General Fund Unassigned Fund Balance includes a $5.6 million set-aside for cash-flow purposes, $5.0 million earmarked for two new Fire Stations, $1.0 million for additional funding for the Maintenance Reserve, and funding for the Broadband and Newark Resource Center projects which did not complete at the close of the prior fiscal year. It should be noted that the Pension and OPEB Reserve Fund is not included in the General Fund Unassigned Fund Balance.
City Cash and Investments
Through the close of January 2025, the City maintained the following Cash and Investments:
$123,454,236 – CAMP (4.55% Yield)
$50,475,429 – LAIF (4.37% Yield)
$12,274,169 – US Bank checking (.005% Yield)
$186,203,834 – TOTAL
On January 7, 2025, Staff transferred $15.0 million in excess cash from its US Bank Checking account to the higher-yielding CAMP investment portfolio. This transfer increased the balance in the CAMP account from $107,990,170 to $122,990,170, before interest was credited.
On January 16, 2025, Staff withdrew $12.0 million from the LAIF account to fund the payment to PARS for the Section 115 Trust.
Summary
The City's total revenues for FY 2025 are projected to be higher than the FY 2025 Amended Budget.
Projected expenditures are currently under-budgeted amounts at this time, given vacancies in personnel and the pace of spending for materials, supplies and contractual services. In summary, the total projected year-end General Fund revenues are $87.3 million, and projected expenditures are $91.7 million. For FY 2025, staff estimate a General Fund year-end surplus of approximately $5.1 million after transfers and set-asides for excess Measure GG and increased TOT revenue resulting from the passage of Measure LL. This $5.1 million surplus is $8 million higher than the FY 2025 Amended Budget and $3.3 million higher than the prior fiscal year.
FISCAL IMPACT
The recommended amendments included in the mid-year review increase or decrease the Fiscal Year 2025 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 - David J. Benoun, City Manager
Attachments
Mid Year Budget Amendment Resolution
Exhibit A - FY2025 Mid-Year Amendments
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWARK AMENDING THE 2024-2026 BIENNIAL BUDGET
AND CAPITAL IMPROVEMENT PLAN FOR FISCAL YEAR
2025
WHEREAS, the 2024-2026 Biennial Budget and Capital Improvement Plan was adopted by the City Council via Resolution No. 11,665 on June 27, 2024; and WHEREAS, as part of the mid-year budget review for Fiscal Year 2025, 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 "2024-2026 Biennial Budget and Capital Improvement Plan of the City of Newark" adopted by Resolution No. 11,665 on June 27, 2024, and subsequently amended by resolutions, is hereby amended as set forth in Exhibit A attached.
Exhibit A
FUND DEPT DIV PROG ACCT ACCOUNT DESCRIPTION DR CR
110 00 000 000 4880 Investment Earnings 1,400,000 Incr. projected investment earnings to reflect higher cash balances 110 00 000 000 4999 Transfers In 414,000 Add: Reimbursement for Approved ARPA-Eligible Expenses (Personnel Costs) 110 00 000 000 4999 Transfers In 4,600 Add: FEMA reimbursements for severe storm events DR-4699 and DR-4683 110 00 000 000 4999 Transfer In 55,223 Transfer prior years' residual interest from debt service funds to the General Fund 110 00 000 000 4999 Transfer In 7,030 Transfer prior years' residual interest from debt service funds to the General Fund 110 3000 UNAPPROPRIATED FUND BALANCE 1,880,853
110 00 000 000 5530 OPEB 47,000 Incr. for updated OPEB actuarial report 110 10 010 100 6221 General Contractual Services 17,000 Incr. for State of the City Contractual Services 110 21 021 200 5120 PST Salaries 17,000 Upgrade the PT Accounting Assistant to FT to Support IT Dept. 110 21 021 200 6150 IT Software/Licenses/Subscriptions 40,000 Fund TextMyGov Software Management and Support August 2024 - July 2029 110 21 021 200 8051 IT Equipment 15,000 Network Expansion - Added ports for new cameras and card readers. 110 21 021 200 8051 IT Equipment 26,000 Equipment Purchase – (7) HP EliteBooks and accessories. 110 30 031 310 5120 Part Time Personnel 162,000 Incr. the Police PST budget to reflect the actual hourly rate and associated costs. 110 3000 UNAPPROPRIATED FUND BALANCE 324,000
120 00 000 000 4999 Transfers In 248,000 Add: Reimbursement for Approved ARPA-Eligible Expenses (Personnel Costs) 130 00 000 000 4999 Transfers In 205,000 Add: Reimbursement for Approved ARPA-Eligible Expenses (Personnel Costs) 130 3000 UNAPPROPRIATED FUND BALANCE 453,000
140 00 000 000 4999 Transfers In 119,000 Add: Reimbursement for Approved ARPA-Eligible Expenses (Personnel Costs) 140 00 000 000 4999 Transfers In 92,800 Add: Reimbursement for Approved ARPA-Eligible Expenses (Personnel Costs) 140 3000 UNAPPROPRIATED FUND BALANCE 211,800
140 60 064 643 6221 General Contractual Services 60,000 Add: Encampment removal services provided by OFRS 140 3000 UNAPPROPRIATED FUND BALANCE 60,000
201 00 000 000 4999 Transfers In 33,400 Add: FEMA reimbursements for severe storm events DR-4699 and DR-4683 201 3000 UNAPPROPRIATED FUND BALANCE 33,400
214 50 520 000 4790 Other Governmental Agencies 150,000 Add: Local Early Action Planning (LEAP) Grant Allocation 214 3000 UNAPPROPRIATED FUND BALANCE 150,000
260 00 000 000 9999 Transfer Out 11,000 Add: Certified Access Specialist (CASp) funding to partially cover personnel salaries and supplies. 260 3000 UNAPPROPRIATED FUND BALANCE 11,000
261 60 062 620 6120 Supplies 2,000 Add: California Strong Motion Instrument funding for supplies 261 3000 UNAPPROPRIATED FUND BALANCE 2,000
262 60 062 620 6120 Supplies 1,000 Add: Building Standards Administration funding for supplies. 262 3000 UNAPPROPRIATED FUND BALANCE 1,000
382 00 000 000 9999 Transfers Out 1,060,000 Close out remaining ARPA funds for approved eligible projects (Personnel Costs) 382 70 079 790 6950 Economic/Public Assistance 16,000 Incr. budget for additional recreation scholarships awarded FY 2025 Mid-Year Amendments
Exhibit A
FY 2025 Mid-Year Amendments
382 3000 UNAPPROPRIATED FUND BALANCE 1,076,000
383 00 000 000 4793 Federal Grants and Awards 55,000 Add: FEMA reimbursements for severe storm events DR-4699 and DR-4683 383 3000 UNAPPROPRIATED FUND BALANCE 55,000
383 00 000 000 9999 Transfers Out 137,000 Add: FEMA reimbursements for severe storm events DR-4699 and DR-4683 383 3000 UNAPPROPRIATED FUND BALANCE 137,000
406 60 068 682 6221 General Contractual Services 6,000 Add: LLD budget for unanticipated current expenditures. 406 00 000 000 9999 Transfers Out 137,000 Add: FEMA reimbursements for severe storm events DR-4699 and DR-4683 406 3000 UNAPPROPRIATED FUND BALANCE 143,000
415 61 069 682 6221 General Contractual Services 4,000 Add: LLD budget for unanticipated current expenditures. 415 00 000 000 9999 Transfers Out 137,000 Add: FEMA reimbursements for severe storm events DR-4699 and DR-4683 415 3000 UNAPPROPRIATED FUND BALANCE 141,000
501 00 000 000 9999 Transfer Out 55,223 Transfer prior years' residual interest from debt service funds to the General Fund 501 00 000 000 9999 Transfers Out 137,000 Add: FEMA reimbursements for severe storm events DR-4699 and DR-4683 501 3000 UNAPPROPRIATED FUND BALANCE 192,223
502 00 000 000 9999 Transfer Out 7,030 Transfer prior years' residual interest from debt service funds to the General Fund 502 00 000 000 9999 Transfers Out 137,000 Add: FEMA reimbursements for severe storm events DR-4699 and DR-4683 502 3000 UNAPPROPRIATED FUND BALANCE 144,030
610 00 000 000 4999 Transfers In 74,000 Add: Reimbursement for Approved ARPA-Eligible Expenses 610 3000 UNAPPROPRIATED FUND BALANCE 74,000
610 00 000 000 9999 Transfers Out 137,000 Add: FEMA reimbursements for severe storm events DR-4699 and DR-4683 610 3000 UNAPPROPRIATED FUND BALANCE 137,000
703 00 000 000 4999 Transfers In 3,300 Add: FEMA reimbursements for severe storm events DR-4699 and DR-4683 703 3000 UNAPPROPRIATED FUND BALANCE 3,300
703 87 703 671 6261 Equipment Repaid and Maint. 100,000 Incr. unexpected safety and emergency service expenses 703 00 000 000 9999 Transfers Out 137,000 Add: FEMA reimbursements for severe storm events DR-4699 and DR-4683 703 3000 UNAPPROPRIATED FUND BALANCE 237,000
704 00 000 000 4999 Transfers In 2,900 Add: FEMA reimbursements for severe storm events DR-4699 and DR-4683 704 3000 UNAPPROPRIATED FUND BALANCE 2,900
704 87 704 673 6251 Repairs and Maintenance Services 100,000 Incr. budget for necessary and unanticipated repairs at the Silliman Center 704 3000 UNAPPROPRIATED FUND BALANCE 100,000
FUND DEPT DIV PROG ACCT ACCOUNT DESCRIPTION DR CR
Capital Improvement Projects
Exhibit A
FY 2025 Mid-Year Amendments
281 90 091 910 6221.CIPA10007.FY2025 365,264 Incr. Annual Curb Gutter and Sidewalk Project - Construction Phase 281 3000 UNAPPROPRIATED FUND BALANCE 365,264 Incr. Annual Curb Gutter and Sidewalk Project - Construction Phase 284 90 091 910 6221.CIPA10001.FY2025 530,000 Incr. Annual Citywide Accessible Curb Ramp Improvement Project - Construction Phase 284 3000 UNAPPROPRIATED FUND BALANCE 530,000 Incr. Annual Citywide Accessible Curb Ramp Improvement Project - Construction Phase 201 90 091 910 6221.CIPA10006.FY2025 1,000,000 Reallocate funds from the 2025 Annual Street Asphalt Overlay Prgm. to the 2025 Slurry Seal Prgm. 202 90 091 910 6221.CIPA10006.FY2025 1,500,000 Reallocate funds from the 2025 Annual Street Asphalt Overlay Prgm. to the 2025 Slurry Seal Prgm. 284 90 091 910 6221.CIPA10006.FY2025 1,500,000 Reallocate funds from the 2025 Annual Street Asphalt Overlay Prgm. to the 2025 Slurry Seal Prgm. 201 90 091 910 6221.CIPA10005.FY2025 1,000,000 Reallocate funds from the 2025 Annual Street Asphalt Overlay Prgm. to the 2025 Slurry Seal Prgm. 202 90 091 910 6221.CIPA10005.FY2025 1,500,000 Reallocate funds from the 2025 Annual Street Asphalt Overlay Prgm. to the 2025 Slurry Seal Prgm. 284 90 091 910 6221.CIPA10005.FY2025 1,500,000 Reallocate funds from the 2025 Annual Street Asphalt Overlay Prgm. to the 2025 Slurry Seal Prgm.
FUND DEPT DIV PROG ACCT ACCOUNT DESCRIPTION DR CR
110 00 000 000 5530 OPEB 48,000 Update OPEB payment based on current actuarial report which was available after budget adoption 110 30 031 310 5120 Part Time Personnel 178,000 True-up Police PST budget to align with actual spending from FY 2026 110 3000 UNAPPROPRIATED FUND BALANCE 226,000
260 00 000 000 9999 Transfer Out 12,000 Apply CASP funding for small portion of personnel salaries and supplies 260 3000 UNAPPROPRIATED FUND BALANCE 12,000
261 60 062 620 6120 Supplies 5,000 Apply CA Strong Motion Instrument funding for supplies 261 3000 UNAPPROPRIATED FUND BALANCE 5,000
262 60 062 620 6120 Supplies 5,000 Apply Building Standards Administration funding for supplies 261 3000 UNAPPROPRIATED FUND BALANCE 5,000
FY 2026 Mid-Year Amendments
Item I. 1.
DATE 03/13/2025
TO Honorable Mayor and City Council Members
FROM David Benoun, City Manager
SUBJECT CONFERENCE WITH REAL PROPERTY NEGOTIATORS
pursuant to Government Code Section 54956.8
Property: Assessor’s Parcel Number 901-200-16; 901-200-17 Agency negotiator: David J. Benoun, City Manager and Steven Turner, Community Development Director
Negotiating parties: LS Newark LLC/Franco Tenerelli ESQ Under negotiation: Price and terms of payment