Union City City Council
March 22, 2022

neighborhood-serving retail and service uses. Further, the project is consistent with General Plan Policy LU-1.2, Promote infill and enhance Neighborhoods. and General Plan Policy CD-6.2, Placement of Public Art, and General Plan Policy ED-3.1, Support Local Business expansion, because it is a well-designed project that improves an existing site located along a major thoroughfare and within the city and supports the expansion of a local business. There are no applicable specific plans; and

3. The project, as conditioned, is consistent with the purpose of Title 18, which seeks to promote and protect the public health, safety, morals, comfort, convenience, and the general welfare of the people; the proposed project, as conditioned, is consistent with the applicable requirements for the CC, Community Commercial, Zoning District; and

4. The project is consistent with the purpose of Site Development Review as it would result in an addition that incorporates the original building design, a new trash enclosure, and other site improvements such as upgraded landscaping and fencing, which are orderly and attractive; and
Use Permit

5. The location of the use is in accord with the purposes of Title 18 of the Municipal Code, and the purposes of the CC, Community Commercial, Zoning District, because it will provide expanded veterinary services to our community, with minimal associated impacts, to meet the increased needs of the City's residents as a whole for veterinarian services; and

6. The location of the use, as conditioned, is not detrimental to the public health, safety, welfare, or materially injurious to properties within the vicinity. The project will adhere to all required conditions from the City and responsible agencies pertaining to public health, safety, and welfare; and

7. The use is generally consistent with the subject property's General Plan designation of Corridor Mixed Use Commercial, which allows for the construction of commercial uses and mixed-use higher-density residential development that will support the commercial uses and create vibrant places for people to live, work, shop, and play.

The veterinary clinic use, as conditioned, will comply with provisions of the Municipal Code including all applicable provisions of Title 18. There are no applicable specific plans; and
Variance

8. The strict or literal interpretation of the street side setback requirement would result in both a practical difficulty and an unnecessary physical hardship that are inconsistent with the purposes of the zoning title for the following reasons. Meeting the setback requirement would result in a structure with an internal floor plan that would be detrimental for the proposed use, based on the siting of rooms and support facilities necessary for the operation of the clinic. The existing adjacent single-family residence would be subject to increased impacts from the proposed veterinary clinic expansion, including noise and privacy. Additionally, meeting the required setback would deprive the residents of the use of a reasonably sized rear year that they have enjoyed and that is consistent with the single-family residential development patterns seen in the surrounding neighborhood; and
City Council/RSA Agenda 193 Tuesday, March 22, 2022
Planning Commission Resolution No. #XX-22
UP-21-005, SD-21-003, and V-21-002
33663 Mission Blvd

9. The property’s historic development pattern including the fact that the existing building was developed with a 2-foot street side setback consistent with the zoning at the time of development, however, this is inconsistent with current zoning requirements and property setbacks. The Street side setback for this zoning district was not adopted until 1996. Other lots within the zoning district generally do not have to face these same circumstances and conditions; and

10.The exceptional circumstances discussed above do not result from the actions of the applicant. The project site was developed in phases from at least the 1960s, and the current owners purchased the property in 2006; and

11.Strict interpretation of the regulations would deprive the applicant of privileges enjoyed by other property owners within the CC, Community Commercial, zoning district in that the variance requests would facilitate the expansion of an existing commercial use, which owners of other properties within the same zoning district could do generally without the same exceptional circumstances; and

12.Granting the variance request will not constitute a grant of special privilege because owners of other properties within the same zoning district could build an expansion without having to take into account the exceptional or extraordinary circumstances or conditions which exist on the site; and

13.Granting of the variance request will not have a detrimental effect on public health, safety, or welfare or be materially injurious to property owners or improvements in the vicinity because the proposed development will comply with all other requirements of the Zoning Ordinance and the purpose of Site Development Review.

BE IT FURTHER RESOLVED, that the Planning Commission of the City of Union City hereby recommends approval of Site Development Review, SD-21-003, Use Permit, UP-21-005, and Variance, V-21-002 to the City Council, subject to conditions of approval listed below.

CONDITIONS OF APPROVAL

PLANNING DIVISION

1. These conditions of approval shall supersede the Conditions of Approval for UP-1-95 and SD-1-95, as listed in Attachments 1 and 2

2. All actual site improvements shall be made and maintained with strict adherence to plans marked Exhibit A, except as they may be modified by other conditions of approval.

3. The applicant/property owners shall apply for and take out all required building and fire permits prior to beginning any on-site work. Plans submitted to the Building Division and Fire Department shall demonstrate compliance with all code requirements, local ordinances and State building regulations where applicable.

4. The Site Development Review, Use Permit and Variance approvals shall expire one year from the date of City Council approval unless building permits have been issued and construction is commenced and diligently pursued, or an extension is sought and approved by the Zoning Administrator per applicable sections of the Zoning Ordinance.

City Council/RSA Agenda 194 Tuesday, March 22, 2022
Planning Commission Resolution No. #XX-22
UP-21-005, SD-21-003, and V-21-002
33663 Mission Blvd

5. The applicant/property owner shall attach an annotated copy of the approved City Council Resolution with the conditions of approval to each set of detailed construction plans and civil and working drawings submitted for plan review prior to issuance of a building permit. Notations to the plans shall be made to clearly indicate how the project complies or will comply, with the conditions of approval. Construction plans shall not be accepted without the annotated final conditions of approval included with each set of plans.

6. The applicant/property owner's failure to adhere to any conditions of approval shall be cause for revocation of the project approvals.

7. The applicant/property owner shall submit plans and details to the city for review for the design of the proposed public art. Prior to the issuance of building permits, the public art proposal shall be reviewed and approved by the City’s Arts and Culture Commission. The public art shall be installed and inspected by City’s planning staff prior to occupancy of the building. If the proposed public art does not fully meet the prescribed contribution requirements per Section 12.40.030 of the Municipal Code, the remaining portion shall be paid as an in-lieu fee prior to occupancy of the building.

8. The applicant/property owner shall pay a General Plan Cost Recovery Fee in the amount of $1.00 per $1,000.00 of construction valuation per City Council Resolution Number 3379-07.

9. The applicant/property owner shall obtain a business license from the City and shall maintain said license as long as it operates at this address.

10.The applicant/property owner shall be responsible for ensuring that all contractors and subcontractors have obtained a valid City of Union City business license for the duration of the project.

11.Any graffiti appearing on the site shall be removed by the applicant and/or property owner within forty-eight hours after discovery. If not removed in a timely manner, the City may, at its option, remove the graffiti and charge the applicant and/or property owner for the services performed. The applicant and/or property owner shall coordinate with neighboring property owners, as needed, to ensure adequate property maintenance.

12.The applicant/property owner shall adhere to the colors and materials shown in Exhibit A. Prior to issuance of building permits, submit brushed out paint samples from the manufacturer for review and approval by the Economic and Community Development Department. Any future amendments or changes to the approved painting schemes or material shall be submitted to the review and approval by the Economic and Community Development Department.

13.Plans submitted for building permit issuance shall include a detailed fencing plan and be consistent with the plans marked Exhibit A. Chain link fencing is prohibited

14.The applicant/property owner shall provide factory processed color finishes, such as baked enamel, on all exterior metal surfaces.

15.The applicant/property owner shall screen all meters, telecommunications equipment, roof equipment and appurtenant structures from public view. A detail of such screening shall be shown on the plans submitted for the issuance of building permits.

City Council/RSA Agenda 195 Tuesday, March 22, 2022
Planning Commission Resolution No. #XX-22
UP-21-005, SD-21-003, and V-21-002
33663 Mission Blvd

16.All signage must comply with Chapter 18.30, Sign Regulations and is subject to review and approval by the Economic and Community Development Department.

17.Plans submitted for building permit issuance shall include an additional 9ft by 18 ft parking space in the front parking lot adjacent to the northern elevation of the structure.

18.The trash enclosure shall be designed to match the main building and consistent with Section 7.04.055, Enclosures for Solid Waste, Organic Waste and Recycling Containers, of the Municipal Code. Details shall be shown on building permit plans.

The trash enclosures shall be covered; be sufficient in capacity to accommodate a weekly pick-up schedule, as determined by City staff; be illuminated within the interior and exterior to a minimum lighting level of 1.0-footcandle; and feature a motion sensor which activates lighting providing required illumination per the above. a. The trash enclosure shall consist of walls matching the material, texture and color of the building and gates of heavy gauge corrugated steel, or other material approved by the Economic and Community Development Department. A security barrier shall be added to the space between the top of wall and bottom of roof of to prevent illegal activities. The final design for the barrier is subject to the review and approval of the Economic and Community Development Department. b. The enclosure shall not be used for any purposes other than storage of the trash bin, recycling bin, compost bin, and, if applicable, the tallow bin. All bins shall be kept within the enclosure except during servicing time.

19.Prior to the issuance of building permits, the applicant shall submit a landscape package which shows existing landscaping upgraded to be consistent with Chapter

18.112, Water Efficient Landscape, of the Municipal Code (if applicable) and the Landscape Standards Policy Statement. The final landscape plan will be subject to review and approval by the City's consulting Landscape Architect, City Arborist, and staff. Additional fees for consultant's review and inspection are required to be paid with the building permit fees. A final inspection of the installed landscaping and irrigation shall be completed prior to issuance of the Certificate of Occupancy. The applicant/property owner shall be responsible for maintaining all irrigation and landscaping and shall replace any dead or dying vegetation for the life of the project.

The landscape package shall incorporate the following comments:
a. All new trees shall be 24-inch box.
b. The applicant and/or property owner shall ensure that trees planted within 10 feet of any public paved or concrete area include a root control barrier and deep watering sleeve, the design of which shall be subject to approval by the City’s consultant Landscape Architect. Note and detail shall be included on landscape plans.
c. Any new equipment, such as back flow prevention devices, shall be adequately screened by landscaping to the extent feasible.
d. Enhanced landscaping consisting of shrubs and ground covers shall be provided at the base of any monument sign.

20.A certificate of deposit shall be submitted in the amount of 50% of the estimated City Council/RSA Agenda 196 Tuesday, March 22, 2022
Planning Commission Resolution No. #XX-22
UP-21-005, SD-21-003, and V-21-002
33663 Mission Blvd

installation cost of the landscaping, up to $10,000.00, in order to ensure installation of the planting shown on the approved landscape plan. The property owner shall enter into a private landscape maintenance contract for the maintenance of the required landscaping for a minimum period of two years after installation. The required certificate of deposit shall be submitted to the Economic and Community Development Department prior to the issuance of building permits. The project landscaping shall be completed, pursuant to the above-stated requirements, prior to issuance of a Certificate of Occupancy for the building.

21.The applicant/property owner shall provide illuminated addressing on the forwardmost portion of the building with a minimum of six-inch high numerals and painted addressing on curbs.

22.The applicant/property owner shall be responsible for staff time spent on abating any verified code violations at the site or to ensure compliance with the Conditions of Approval once the business is in operations.

23.Plans submitted for building permit issuance shall show the two (2) on-site bike parking spaces meeting the design criteria listed in Section 18.28.080 of the Municipal Code.

24.Plans submitted for building permit review shall show adequate lighting levels in the rear parking lot to the satisfaction of the Police Department and Economic and Community Development Department. Plans shall also include details regarding new lighting fixtures.

BUILDING DIVISION

25.The applicant/property owner shall maintain all public and exterior private improvements to be in compliance with the Americans with Disabilities Act (ADA).

26.Any construction shall fully comply with the Building Standard Codes in effect at the time of building permit issuance.

27.The applicant/property owner shall provide detailed construction plans (working drawings) and calculations to the Building Division for plan review prior to issuance of a building permit. Plans and supporting documents shall be prepared by a statelicensed architect or engineer. Upon completion of the plan check, all applicable fees shall be paid and a building permit issued prior to commencement of any actual construction work on-site.

28.The applicant/property owner shall maintain the property to be free of litter, weeds, debris, etc., both before and after issuance of building permits. Daily litter and debris collection rounds shall be conducted on the site and an adequate number of trash receptacles shall be provided to minimize litter accumulation.

29.The applicant/property owner shall comply with the Construction and Demolition Ordinance 576-01 to divert recyclable debris away from landfills. The applicant and/or property owner shall submit a completed Construction and Demolition Waste Management Plan with their application for a construction or demolition permit.

30.The applicant/property owner shall not locate construction debris boxes within the public right-of-way (ROW), driveways or on adjacent private properties.

City Council/RSA Agenda 197 Tuesday, March 22, 2022
Planning Commission Resolution No. #XX-22
UP-21-005, SD-21-003, and V-21-002
33663 Mission Blvd

FIRE DEPARTMENT

31.The project shall comply with the California Building and Fire Codes and current local ordinances in effect at the time of building permit submittal.

32.The applicant/property owner shall provide an exit analysis plan, for review prior to issuance of building permit.

33.The applicant/property owner shall provide a KNOX BOX Mode 3200 (Lock Box) with door hinge, mounted adjacent to the front door no higher than 6 feet, prior to final inspection of building permit.

34.The applicant/property owner shall pull fire and building permits for a Fire sprinkler system. Fire sprinkler systems for Building undergoing a change of occupancy or use, shall be designed and installed in accordance with the CFC and NFPA 13 fire Sprinkler Standard.

35.The applicant/property owner shall have the Fire Alarm system professionally monitored by a Central Monitoring Control Center

36.The applicant/property owner shall ensure access to the building under construction will not impede and/or obstruct responding personnel or workers evacuating the property.

37.The applicant/property owner shall apply for hot work permits for all welding or cutting operations.

PUBLIC WORKS DEPARTMENT

38.The applicant/property owner shall secure an encroachment permit from the Public Works Department for all work in the public right-of-way. The applicant shall be responsible for any repairs required adjacent to the development, including paving, curbs and gutters, sidewalks, and streetlights, or installation of same where not existing, as required by the City Engineer.

39.The applicant/property owner shall apply for and submit plans for a lot merger, combining lots 7, 8, 9 and 10 of Block 74, as said lots and blocks are shown upon that certain map entitled “AMENDED PLAN OF DECOTO ALAMEDA COUNTY, CALIFORNIA", filed December 01, 1904, Map Book 19, Page(s) 43, Alameda County Records. Excepting therefrom all those portions of lots 9 and 10, Granted to the State of California, by deed recorded January 14, 1930, in Book 2308, Page 33, Alameda County Records.

40.The applicant shall be responsible for any required repairs associated with the development, including paving, trenching, curbs and gutters, sidewalks, as determined by the City Engineer.

41.The applicant/property owner shall place a copy of the approved Public Works conditions of approval (COA) on the improvement/grading plans.

42.The applicant shall submit improvement plans for review and approval that show the existing and proposed grades on the parking lot to demonstrate how the drainage is conveyed from the private property to the public right of way. No drainage shall be allowed to enter adjacent properties. The plans shall show the location of the City Council/RSA Agenda 198 Tuesday, March 22, 2022
Planning Commission Resolution No. #XX-22
UP-21-005, SD-21-003, and V-21-002
33663 Mission Blvd

downspouts, any existing and proposed drainage structures, and other proposed improvements, such as trash enclosure and striping, etc.

43.The applicant shall paint the curb red for a distance of 30 ft. along G street side from the new driveway towards Second street to minimize blocking the line of sight for the vehicles exiting the new parking lot.

44.The applicant shall show the dimensions of the parking stalls (9 ft. x18 ft.) and the width of the new access aisle (26 ft. min.)

45.The applicant shall submit a signed and dated ‘Applicability of C.3 and C.6 Stormwater Requirements’ checklist demonstrating that the project meets the requirements of the Municipal Regional Stormwater Permit (MRP) for approval by City Staff.

46.The applicant shall ensure that the project complies with the most current requirements of the Alameda County Clean Water Program, including installing BMPs during construction, such as stabilized construction entrance, straw wattles, street sweeping to pick up mud and picking up any mud deposited in the gutters.

47.The applicant shall upgrade the existing wheelchair ramp located at the intersection of G Street and Second Street. This work may include replacing or ensuring the existing concrete apron adjacent to the ramp does not hold water and provides a positive drainage to the valley gutter.

48.The applicant shall upgrade the existing wheelchair ramp located at the intersection of Mission Blvd. and G Street.

49.The applicant shall ensure positive drainage along the gutter on Second Street. where the future through-the-curb drain from the property will discharge onto public right of way. This may require replacing a portion of curb and gutter that may be uplifted.

50.The applicant shall ensure that the new commercial driveway meets the City’s minimum standard of 28 ft. min. width including driveway apron.

51.The applicant shall ensure that any needed repairs are made to the existing parking lot prior to restriping the parking lot.

52.The applicant shall apply for a Grading Permit, pay a fee and post a Grading Permit Bond, which will be based upon the final estimate of the number of cubic yards of dirt estimated to be moved, including cut, fill and import, etc.

53.The applicant shall provide a structural paving section adequate to accommodate the vehicular loads, including garbage truck traffic, for the proposed parking lot.

54.The applicant shall ensure that there is sufficient lighting levels in the drive aisle and in the rear of the property.

55.The applicant shall submit a grading plan to the Public Works Department and obtain a Grading Permit prior to proceeding with any demolition and grading operations.

56.The applicant shall underground the existing overhead electrical and communication utilities across Second Street to the new building extension. No overhead lines shall remain following the completion of this project. The overhead lines to the house located on the same lot shall also be undergrounded by placing them in the same trench as the overhead lines to the clinic.

City Council/RSA Agenda 199 Tuesday, March 22, 2022
Planning Commission Resolution No. #XX-22
UP-21-005, SD-21-003, and V-21-002
33663 Mission Blvd

57.The applicant shall pay all Public Works Department fees such as Plan Check & Inspection fees, Grading Permit Fee (and associated bonds) and Encroachment Permit fee. Except for the Encroachment Permit fee, all other fees shall be paid prior to the issuance of the Grading Permit.

58.The applicant shall provide a detailed breakdown of the engineer’s estimate for all onsite work including grading, storm drainage facilities, paving, sidewalk, striping and landscaping. The Plan Check & Inspection Fees will be based upon this estimate that is reviewed and accepted by the City Engineer.

59.The applicant shall contact the Alameda County Water District, Engineering Department, at (510) 659-1970 to determine water service and permit requirements and Union Sanitary District at (510) 477-7500 to determine sewer service and permit requirements.

60.Construction activity on-site shall comply with Section 9.40.053 of the Union City Municipal Code, and is limited to the following hours:

Monday through Friday - 8:00 a.m. to 8:00 p.m.

Saturday - 9:00 a.m. to 8:00 p.m. (allowed only on a case-by-case basis) Sundays & Holidays - 10 a.m. to 6 p.m. (allowed only on a case-by-case basis)

61.The applicant/property owner will work with ACWD to ensure any existing monitoring wells on site are protected or removed following ACWD's standards.

62.Stormwater Post-Construction Best Management Practices a. All condensate drainage shall be routed to sanitary sewer. This shall include, but is not limited to chiller and HVAC condensate, cooling tower and boiler discharges, air compressor condensate, de-ionized water softening units, etc. Compressors:

Air or liquid lines contaminated with oil/hydrocarbons shall drain to sanitary sewer.

These activities shall be clearly delineated in the plans and specifications submitted for building permits.
b. Metal roofs, including galvanized, shall be coated and/or treated to minimize runoff of metallic materials and salts. Lead and copper materials or solders shall not be used.
c. Paved outdoor storage, staging, or lay down areas shall be designed to limit the potential for storm water runoff to contact pollutants. Bulk materials stored outdoors shall be covered.
d. Landscaping shall be designed with efficient irrigation practices to reduce runoff, promote surface infiltration, and to minimize the need for fertilizers and pesticides.

All landscaping shall be properly maintained.
e. Sidewalks, parking lots, driveways and other paved areas under private ownership/management shall be regularly swept to prevent the accumulation of litter and debris. If water is used, it shall be collected, along with any debris before entering the storm drain system. Discharge of wash waters from parking lots, sidewalks, etc. to the sanitary sewer system requires the approval of the Union Sanitary District.
f. The property owner and/or applicant is responsible for cleaning storm drains and City Council/RSA Agenda 200 Tuesday, March 22, 2022
Planning Commission Resolution No. #XX-22
UP-21-005, SD-21-003, and V-21-002
33663 Mission Blvd

catch basins that are located on private property at least three times each year, once prior to the rainy season (before October 1st), once in January, and once in May. The Public Works Department may require additional cleaning as warranted.

Maintenance and cleaning records shall be maintained at the site. g. On-site storm drain inlets shall be labeled "No Dumping - Drains to Bay" using a stencil approved by the Public Works Department.

63.Stormwater-"During Construction" Best Management Practices  The following Best Management Practices (BMPs) relating to construction site controls shall be implemented during construction activities.  These best management practices shall be shown as notes on the approved grading and building permit plan sets.
a. The applicant shall ensure compliance with all of the following best management practices by making sure that all contractors, subcontractors and suppliers are aware of all storm water pollution prevention measures and their implementation requirements.
b. The applicant shall ensure that concrete supply trucks or concrete/plaster and finishing operations discharge washout water into a designated cleanout area, designed to prevent pollutants from entering the storm water and/or sanitary sewer system.
c. Discharge restrictions shall also apply to the operation of general construction machinery including masonry cutting equipment, and the washing of tools, brushes, containers, etc. These operations shall not be performed in the street, gutter, or where pollutants can enter the storm water system. Failure to comply with the approved construction requirements will result in the issuance of correction notices, citations, or project stop work orders. d. The applicant shall minimize the removal of natural vegetation or ground cover from the site in order to minimize the potential for erosion and sedimentation problems. All cut and fill slopes shall be stabilized as soon as possible after completion of grading. No site grading shall take place unless approved erosion control measures are in place.
e. The applicant shall install filter materials (sand bags, filter fabric, straw wattle, etc.) at the storm drain inlet nearest the downstream side of the project site prior to the start of work. Filter materials shall be maintained and/or replaced as necessary to ensure effectiveness and prevent street flooding. Filtered particles shall be disposed of in an appropriate manner based upon constituents. f. The applicant shall gather all construction debris on a regular basis and place in a dumpster or other container, which is emptied or removed at a minimum on a weekly basis. When appropriate, tarps shall be used on the ground to collect falling debris, paint over-spray, etc. that could contribute to storm water pollution. g. Trash enclosures and/or recycling containers, paved outdoor storage, staging, or lay down areas shall be designed and constructed to prevent pollutants from entering storm drain system.

City Council/RSA Agenda 201 Tuesday, March 22, 2022
Planning Commission Resolution No. #XX-22
UP-21-005, SD-21-003, and V-21-002
33663 Mission Blvd

h. The applicant/property owner shall create a contained and covered area on the site for the storage of bags of cement, paints, flammables, oils, fertilizers, pesticides or any other materials used on the project site that have the potential of becoming a pollutant and/or being discharged to the storm drain system. i. Dirt, gravel, debris and green waste shall be removed from the sidewalk, street pavement, and storm drains adjoining the project site. These areas shall be broom swept on a daily basis. Caked-on mud or dirt shall be scraped before sweeping. During wet weather, the applicant should avoid excavation and other activities that lead to pollutants entering storm water such as driving vehicles on unpaved areas, etc.
j. Outdoor washing or pressure washing shall be managed to prevent pollutants from getting into storm water and/or into the storm drain system.

ENVIRONMENTAL PROGRAMS

64.The applicant/property owner shall obtain a permit from the Environmental Programs Division for the storage, use, or handling of hazardous materials. This may include carbon dioxide, refrigerant gases, propane, gasoline or diesel. To satisfy this requirement, owner or operator shall make a complete, accepted submittal to the California Environmental Reporting System (CERS) within 30 days of transferring reportable quantities onto site for business operations. This requirement also is applicable for any amount of hazardous waste that will be generated at the facility. For more information, please contact the Environmental Programs Division at [email protected] or (510) 675-5360.

65.The applicant/property owner is hereby advised that unauthorized discharge of any kind to the storm water system, which includes the streets and gutters, is prohibited, and that such discharges, whether intentional or not, are subject to penalties up to $20,000 per violation per day. This applies both to the construction phase and to routine facility operations.

ALAMEDA COUNTY WATER DISTRICT (District)

66.Each non-residential and irrigation service will require a separate dedicated fire service and may require an above-ground reduced pressure backflow prevention device. Backflow prevention devices must be located in accordance with District Standard Drawings BP-1-08 through BP-3-08. The location and screening of these above-ground devices should be considered in the site design to address both District installation standards as well as aesthetic concerns of the development. Backflows located within buildings are not acceptable.

67.The applicant/property owner shall provide the minimum clearance requirements specified by ACWD between water meters, service lines, fire hydrants or mains and the nearest utilities, buildings, and trees. Reference District Standard Drawings CL-1- 08 through CL-5-08.

68.The applicant/property owner shall contact the ACWD Engineering Department for modifications of existing water facilities. Any existing water services which will not be used in the new development must be removed by the district at the developer's expense.

City Council/RSA Agenda 202 Tuesday, March 22, 2022
Planning Commission Resolution No. #XX-22
UP-21-005, SD-21-003, and V-21-002
33663 Mission Blvd

I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of the Planning Commission of the City of Union City held on February 17, 2022, by the following vote:

AYES 5
NOES 0
ABSTAIN 0
ABSENT 0
MOVED: Commissioner Lew
SECONDED: Commissioner Finnerty

APPROVED
______________________________________

HARPAL MANN, CHAIRPERSON
ATTEST:
_________________________________

CARMELA CAMPBELL, SECRETARY
City Council/RSA Agenda 203 Tuesday, March 22, 2022
Item 6.a
33663 Mission Blvd
Union City Veterinary Medical Center
SD-21-003, UP-21-005, V-21-002
City Council/RSA Agenda 204 Tuesday, March 22, 2022
2 Project Overview
Project Site
N
Owner: Dr. Surat GillLocation: 33663 Mission Blvd.
(APN: 486-6-33)
Lot Size: 15,848 sq. ft. (0.36 ac.)Proposal:
1) Use Permit (UP-21-005) to modify UP-95-1, 2); Site Development Review (SD-21-003), for the construction of a proposed 946 square-foot addition; and 3) Variance request (V-21-002) to reduce the street side setback requirement for the addition from 10 feet to 2 feet.

City Council/RSA Agenda 205 Tuesday, March 22, 2022
3 Proposal
Site Development Review
• 946 square-foot rear addition to
the existing building for a total building size of 2,472 square feet • Addition will be consistent with
existing building
• Upgraded site landscaping • New trash enclosure • Underground service drops City Council/RSA Agenda 206 Tuesday, March 22, 2022
4 Proposal
Use Permit
• Modifying UP-1-95, which allowed
for a veterinary clinic to be established
• No overnight boarding unless
medically necessary
• 15-20 Clients per day• Up to a total of 7 staff members• Hours of operation: 7am -9pm• New COA supersede UP-1-95 Variance
• Reduce street side setback
from 10 feet to 2 feet
City Council/RSA Agenda 207 Tuesday, March 22, 2022
5 Site Plan
City Council/RSA Agenda 208 Tuesday, March 22, 2022
6 Elevations – Front/Rear Architecture - Elevations
Front- Facing Mission Blvd Street Side- Facing G Street Rear- Second Street Interior Side- Facing North
Future Mural
The existing and proposed building incorporates California Mission-style elements which include:

City Council/RSA Agenda 209 Tuesday, March 22, 2022
7 Public Art
Chapter 12.40 of the Union City Municipal Code requires public art for certain projects • Mural proposed on southern elevation (facing G Street)• As conditioned, mural shall include elements of historic character of Decoto Neighborhood
• Final mural design to be reviewed/approved by Arts and Culture Commission
City Council/RSA Agenda 210 Tuesday, March 22, 2022
8 Variance
• Reduction of street-side setback from 10 feet to 2 feet • Existing building constructed before current setback established• Current standard would result in:
• Structure with disjointed internal floor plan;• Residence, on the same site, would be subjected to increased impacts; and
• Would deprive the residents of the use of a reasonably sized rear yard • Mid-block location precludes potential visibility concerns• Building addition shall be setback approx. 4 feet from the back of walk City Council/RSA Agenda 211 Tuesday, March 22, 2022
9 General Plan Compliance
• Corridor Mixed-Use Commercial (CMU)
• Allows for various neighborhood-serving retail and service uses • General Plan Policy LU-1.2, Promote Infill and Enhance Neighborhoods • Improves and expands the existing building onto currently underutilized portion of site• Well-designed and will enhance the surrounding neighborhood •General Plan Policy CD-6.2, Placement of Public Art
• Proposed public art on highly visible corner that serves as an entrance to the Decoto Neighborhood
•General Plan Policy ED-3.1, Support Local Business expansion. • Helps support the local veterinary clinic to expand service and continue to serve Union City community
City Council/RSA Agenda 212 Tuesday, March 22, 2022
10 Planning Commission
• Commissioners’ questions included:

Security, disposal of deceased animals, lighting in the rear parking lot, signage, access along Mission Blvd, and clarifications on some of the findings/conditions • Updated findings and conditions are incorporated as part of the Council resolution• One member of the public spoke in favor of the project • The Commission voted 5-0 to recommend approval to City Council at their February 17, 2022
City Council/RSA Agenda 213 Tuesday, March 22, 2022
11 Recommendation
Consistent with the Planning Commission recommendation, staffrecommends that the City Council hold a public hearing and adopt aResolution approving Site Development Review (SD-21-003), UsePermit (UP-21-005), and Variance (V-21-002) for the construction of aproposed 946 square foot addition to the existing veterinary clinic at City Council/RSA Agenda 214 Tuesday, March 22, 2022
Agenda Item
DATE: 3/22/2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: MARK EVANOFF, DEPUTY CITY MANAGER
SUBJECT: RECEIVE INFORMATIONAL REPORT ON 2021 FIREWORKS SEASON AND EDUCATION PLANS FOR 2022 FIREWORKS SEASON
Staff recommends that the City Council receive the informational report on the 2021 fireworks season and education plans for the 2022 fireworks season.

STRATEGIC PLAN ALIGNMENT
Goal C: Economic, Community Development and Public Safety New Strategy 3: Increase fines for illegal fireworks, develop and implement a public communication campaign about fireworks, consider banning the sale and deployment of all fireworks if the threat to community safety is not significantly reduced during the 4
th of July season.

BACKGROUND
The City Council undertook severalactions in 2021 evaluating the sale of State Fire Marshalapproved “Safe and Sane” fireworks, the payment of state and local sales taxes by organizations selling fireworks and increasing the fines for the deployment of illegal fireworks or deployment of “Safe and Sane” fireworks in violation of Union City Municipal Code (UCMC) Chapter 7.26 - Fireworks.

The City Counciladopted Resolution No. 5844-21 on October 16, 2021, which amended City Council Resolution No. 2537-03 as follows to reflect actual practices in the administration of Fireworks regulations for organizations issued a permit to sell State Fire Marshal-approved “Safe and Sane” fireworks:

Organizations issued a permit to sell fireworks are now required to document allcosts and expenses incurred selling fireworks on a Fireworks Financial Report disclosure form prepared by the City.

Organizations selling fireworks must comply with state law and provide proof of payment to the City Council/RSA Agenda 215 Tuesday, March 22, 2022
California Department of Tax and Fee Administration (CDTFA) of state and local sales taxes.

Provided authority for the Fireworks Administrator not to issue a fireworks sales permit for the 2022 season if an organization did not provide proof of payment for state and local sales taxes.

Requires treasurer of the organization selling fireworks to determine the net income generated from fireworks sales and the amount deposited into the treasury.

Requires treasurer of the organization selling fireworks to attest to accuracy of the Fireworks Financial Report submitted to the City.

The City Council introduced and adopted Ordinance No. 890-21, which added Chapter 7.26 – Fireworks to the Union City Municipal Code, that:

Deleted UCMC Chapter 15.20.140 – Explosives and Fireworks.

Defined the deployment of illegal fireworks as a misdemeanor.

Created a $1,000 fine for deployment of illegal fireworks or for the deployment of Safe and Sane fireworks in violation of UCMC Chapter 7.26.

Established a Social Host Ordinance that created a $1,000 fine issued against the property owner where illegal fireworks are deployed.

Provided the authority to the Union City Police Department to issue administrative citations for the deployment of illegal fireworks or for the deployment of Safe and Sane fireworks in violation of UCMC Chapter 7.26.

Determined that Union City would be responsible for collecting the fines for citations issued under UCMC Chapter 7.26 as opposed to the Alameda County District Attorney.

The City Council directed staff to work with the fireworks suppliers TNT and Phantom to prepare educational materials on how to safely deploy and dispose of Safe and Sane fireworks and to educate residents about the increased fines for the deployment of illegal fireworks and the use of Safe and Sane fireworks in violation of UCMC Chapter 7.26. Residents may be issued a fine for deployment of Safe and Sane fireworks in an unsafe location, or during times other than July 1 - 4 during during authorized hours.

DISCUSSION
TNT and Phantom, the fireworks suppliers, provided the City a chart at the close of the 2021 fireworks season that identified for each organization selling fireworks:

The gross retail fireworks value of fireworks purchased from the fireworks supplier at the wholesale price.

Business license fees and City surcharge fees (City staff time related to fireworks) paid to the City by the fireworks suppliers on behalf of the organizations selling fireworks.

Payments received from the organizations selling fireworks for the purchase of fireworks at the wholesale price, booth rental fees, and other fees.

Estimated state and local sales tax owed to CDTFA for each organization selling fireworks based on retail value of fireworks purchased from the fireworks suppliers at the wholesale price.

The chart did not include other expenses incurred by the organizations selling fireworks.

City staff worked with the fireworks suppliers to design the Fireworks Financial Report disclosure form to identify revenues generated by fireworks sales and allexpenses incurred, including the payment of sales taxes.

The fireworks suppliers assisted the organizations selling fireworks to complete the form. The specific disclosure items included:

Retail value of fireworks sold.

Sales taxes and City surcharge fees charged to fireworks customers.

City Council/RSA Agenda 216 Tuesday, March 22, 2022
Payment to CDFTA for state and local sales taxes.

Expenses incurred selling fireworks.

An attestation of the net fireworks income deposited into the treasury.

After City staff reviewed the submitted Fireworks Financial Report forms, the fireworks suppliers assisted City staff in contacting organizations that submitted incomplete forms or failed to submit the Fireworks Financial Report to the City.

One organization did not submit the Fireworks Financial Report form and did not respond to repeated calls and emails from both the fireworks supplier and from City staff. Two organizations submitted incomplete or financially inconsistent reports. Staff emailed a Notice of Termination on March 7, 2022, to the three organizations that provided incomplete documentation and were provided a March 28 deadline to provide documentation for payment of sales taxes or to submit the Fireworks Financial Report. Failure to comply would result in the termination of the fireworks sales permit. One organization immediately paid the additional sales taxes and provided proof of payment. One organization is in discussion with staff on providing required documentation. The organization that did not submit the Fireworks Financial Report or proof of sale tax payment has not contacted staff or the fireworks supplier.

City staff shared the submitted Fireworks Financial Report data with the fireworks suppliers to review discrepancies.

The reasons for the discrepancies between the information provided by the organizations selling fireworks and that provided by the fireworks suppliers include:

Several organizations reported giving fireworks away or selling fireworks at a discount and therefore did not generate the retail value projected by the fireworks suppliers.

Under state law, sales taxes should be charged and paid both on the retail price charged for fireworks and on the 6% surcharge paid by fireworks customers. Not all organizations charged and paid the sales tax on the 6% surcharge.

Several organizations were late in paying sales taxes and incurred fines and interest fees from CDFTA.

For purposes of clarity, staff is reporting to the City Councila summary of the amounts reported to the City on the Fireworks Financial Report forms submitted by the organizations selling fireworks. State confidentiality laws do not allow disclosing the retail sales of any individual business paying sales taxes. Staff can only report the total sales taxes collected and the total retail sales. The percentage distribution of fireworks sales proceeds between the fireworks suppliers, state and local sales taxes, City of Union City, and the organizations selling fireworks are also included below:

Summary of Fireworks Financial Reports
Amount Percentage
Gross Revenues (Fireworks + 6% surcharge + 10.75% sales tax)
$1,099,896 100.0%
Fees and taxes to Union City:

Application fee $1,309
Business license tax $2,737
Staff costs $45,353
Sales tax (1.5% to City) $14,277
Total to Union City $63,676 5.8%
City Council/RSA Agenda 217 Tuesday, March 22, 2022
Sales tax paid to State and County (9.25%) $88,044 8.0% Wholesale cost of fireworks paid to distributor $475,876 43.3% Costs and fees paid to the distributor (fireworks booth rental, insurance, advertising, etc.)
$117,795 10.7%
Other expenses (not paid to the distributor) $8,427 0.8% Totals costs and expenses $753,818 68.6%
Net profit to the organizations $346,078 31.4%
There is an approximate $9,500 discrepancy in the amount owed to CDFTA in sales taxes based on the retail value of the fireworks purchased from the fireworks suppliers and the sales tax payments to CDFTA reported by the organizations selling fireworks. A $9,500 sales tax payment discrepancy equates to about a $1,325 shortfall in sales taxes that the City should have received.

Most of the discrepancy in sales taxes owed to the state can be attributed to one organization who it did not submit the required Fireworks Financial Report and may not have paid the required sales tax. A few other organizations paid less sales tax than they should have because it appears that they did not pay sales tax on the 6% surcharge.

Twenty-one organizations were grandfathered in to retain fireworks permits after the City Counciladopted a policy to limit fireworks permits to one permit per 4,000 Union City residents. With a current population of approximately 70,143, the limit on fireworks permits in Union City would be 18 permits. If a permit holder chooses not to sell fireworks, or the permit is revoked by the City, the City would not accept new fireworks permit applications until the number of active fireworks permits fell below 18.

Three of the 21 organizations with fireworks permits chose not to open a fireworks booth in 2020 and 2021 due to COVID concerns. These three organizations will be allowed to open a fireworks booth in 2022.

Education Efforts
The City Attorney, staff, and the fireworks distributors Phantom and TNT worked together to prepare a brochure that will be printed by the fireworks suppliers and provided to allcustomers purchasing State Fire Marshal-approved Safe and Sane Fireworks. The brochure identifies safe practices for the deployment and disposal of Safe and Sane fireworks and discloses the new fines for the deployment of illegal fireworks and deployment of Safe and Sane fireworks in violation of UCMC Chapter 7.26. (See Attachment 1). TNT and Phantom willeach print copies of the brochure and direct the organizations selling fireworks to distribute the brochure to allcustomers who purchase fireworks.

During the Lunar New Year, the Union City web page and City-sponsored social media advised residents about the increased fines for deploying illegal fireworks. The education effort willcontinue during the July 4th fireworks season. Staff will feature fireworks safety procedures and warnings about the increased fines for the deployment of illegal fireworks and violations of UCMC Chapter 7.26 on the Union City webpage and through social media. A flyer advising residents of the penalties for deploying illegal fireworks will be prepared and mailed to Union City households prior to July 4th.

City Council/RSA Agenda 218 Tuesday, March 22, 2022
Prior to July 1, staff will meet with the volunteers selling Safe and Sane fireworks to emphasize the City and fireworks sellers' partnership in educating the public on penalties for deployment of illegal fireworks and how to use fireworks safely. Staff willalso train volunteers on how to document fireworks sales expenses and to complete a new online Fireworks Financial Report.

FISCAL IMPACT
There is no impact to the General Fund from accepting the fireworks report.

RECOMMENDATION
Staff recommends that the City Council receive the informational report on the 2021 fireworks season and education plans for the 2022 fireworks season, ask clarifying questions, and discuss the issues presented.

Prepared by:

Mark Evanoff, Deputy City Manager
Submitted by:

Mark Evanoff, Deputy City Manager
ATTACHMENTS:

Description Type
Attachment 1: Fireworks Brochure Attachment
Power Point Attachment
City Council/RSA Agenda 219 Tuesday, March 22, 2022
Let’s work together to stop the sale and use of illegal fireworks. To report individuals using or selling illegal fireworks, call the non-emergency police dispatch line at (510) 471-1365. For additional information regarding the use of “Safe and Sane” fireworks, including the City’s ordinance and regulations, please go to https://www.unioncity.org/395/Fireworks-Laws-and-Safety

MORE INFORMATION
unioncity.org/fireworks
Enjoy a Safe 4th of July
Only State Fire Marshal-Approved “Safe and Sane" fireworks, bearing the seal above, are allowed in Union City
“Safe and Sane” fireworks may be used only between 8:00 AM to 10:00 PM, July 1 – 4 on your private property
If you intend to use "Safe and Sane" fireworks on property other than your own, you must have written approval from the property owner
Fireworks are not allowed east of Mission Boulevard, in City parks, on school property, or on City streets
Do not use illegal fireworks alongside “Safe and Sane” fireworks. Fireworks that explode or go up in the air are illegal. This includes firecrackers, bottle rockets, and aerial shells and mortars Property owners can be fined up to $1,000 if illegal fireworks are used from their property Individuals possessing or using illegal fireworks from any location may be fined up to $1,000 Deploy fireworks at least ten feet away from any dwelling or structure Use fireworks under adult supervision and keep a hose handy Fireworks should be disposed of by soaking them in a bucket of water and then placing them in the trash

1. 2.

3. Thank you for supporting your local community organization through the purchase of “Safe and Sane” fireworks. Union City welcomes your participation in providing a safe 4th of July for all Union City residents. Please practice basic safety procedures in compliance with all laws.

Additionally, please remember:

City Council/RSA Agenda 220 Tuesday, March 22, 2022
Agenda Item 7a
Informational Report on2021 Fireworks
Season and Education Plans for 2022 Season
March 22, 2022
City Council/RSA Agenda 221 Tuesday, March 22, 2022
2 Strategic Plan ConsistencyGoal C: Economic, Community Development, and Public SafetyStrategy 3: Increase fines for illegal fireworks, develop and implement a public communication plan about fireworks, and consider banning the sales and deployment of all fireworks if the threat to community safety is not significantly reduced during the 4th of July season.Informational Report 2021 Fireworks Season – March 22, 2022 City Council/RSA Agenda 222 Tuesday, March 22, 2022
3 City Council Adopted New Fireworks Polices 2021
• Defined deployment of fireworks as a misdemeanor• Created $1,000 fine for deployment of illegal fireworks• Established Social Host Ordinance that created a $1,000 fine issued against property owner where illegal fireworks are deployed
• City to coordinate public education program with fireworks suppliers and sellers on the increased fines for deploymentof illegal fireworks Informational Report on 2021 Fireworks Season – March 22, 2022 City Council/RSA Agenda 223 Tuesday, March 22, 2022
4 City Council Adopted New Fireworks Polices 2021
• Organizations selling fireworks required to document all costs and expenses in a Fireworks Financial Report
• Organizations selling fireworks must pay sales tax• Fireworks Administrator provided authority to not issue fireworks sales permit in 2022 if sales taxes not paid
Informational Report on 2021 Fireworks Season – March 22, 2022 City Council/RSA Agenda 224 Tuesday, March 22, 2022
5 Staff Engagement with Fireworks Suppliers
• Preparation Fireworks Financial Form• Assisted fireworks sellers with Fireworks Financial Form• Contacting organizations that filed incomplete forms or did not submit forms
• Jointly prepared fireworks educational flyer
Informational Report on 2021 Fireworks Season – March 22, 2022 City Council/RSA Agenda 225 Tuesday, March 22, 2022
6 Fireworks Financial Report
• Consistent with design of fireworks suppliers
closing invoice
• Seventeen out of eighteen organizations selling
fireworks submitted Fireworks Financial Report
• Staff issued letter to three organizations to provide documentation of sales taxes by March 28, 2022, or fireworks sales permit would not be issued Informational Report on 2021 Fireworks Season – March 22, 2022 City Council/RSA Agenda 226 Tuesday, March 22, 2022
7 Fireworks Financial Report
• Staff compared reports with financial reports
provided by fireworks suppliers
• Minor discrepancies on application of sales taxes• Organizations sold fireworks at discount or did not charge sales tax on City surcharge
• Fireworks suppliers assisted staff in reaching out
to organizations who had inconsistent data, or did not provide payment verification Informational Report on 2021 Fireworks Season – March 22, 2022 City Council/RSA Agenda 227 Tuesday, March 22, 2022
8 Fireworks Financial Report
• Staff issued letter to three organizations to provide documentation of sales taxes by March 28, 2022, or fireworks sales permit would not be issued • One organization contacted staff and provided
documentation for payment of required taxes
• One organization is looking for documentation of
payment
• One organization never responds to staff or TNT
Informational Report on 2021 Fireworks Season – March 22, 2022 City Council/RSA Agenda 228 Tuesday, March 22, 2022
9 Fireworks Sales and Distribution Summary
Informational Report on 2021 Fireworks Season – March 22, 2022ENTITY DISTRIBUTION TOTALS DOLLAR AMOUNT PERCENT OF INCOMEGross Revenue: Fireworks sold, 6 percent surcharge, and 10.75 % sales tax $1,099,896 100.0 %
Fees and sales taxes (1.5%) paid to Union City $ 64,676 5.8 %Sales Taxes paid to State and County (9.25%) $ 88,044 8.0 %Wholesale fireworks fees paid to distributor $ 475,876 43.0 %Other fees paid to distributor $ 117,795 10.7 %Other expenses for permit holder $ 8,427 0.8 %Net Profit to organization $ 246,078 31.4 % City Council/RSA Agenda 229 Tuesday, March 22, 2022
10 Educational Programs
• City website described new penalties for deployment
of illegal fireworks prior to Lunar New Year
• Joint effort by City, fireworks suppliers, and fireworks sellers to educate public on 4th of July fireworks safety • Advise residents not to deploy illegal fireworks
alongside Safe and Sane Fireworks
Informational Report on 2021 Fireworks Season – March 22, 2022 City Council/RSA Agenda 230 Tuesday, March 22, 2022
11 Fireworks brochure distributed with all fireworks saleCity will send fireworks postcard to all Union City residents Informational Report on 2021 Fireworks Season – March 22, 2022 City Council/RSA Agenda 231 Tuesday, March 22, 2022
12 2022 Fireworks Season
• How to complete the Fireworks Financial Report• IT will prepare on-line Fireworks Financial Report• Emphasize partnership to educate public• Twenty groups permitted to sell fireworks• No new fireworks sales permits issued Informational Report on 2021 Fireworks Season – March 22, 2022 City Council/RSA Agenda 232 Tuesday, March 22, 2022
13 Fiscal Impact
• This is an informational report• There is no impact on the General Fund Informational Report on 2021 Fireworks Season – March 22, 2022 City Council/RSA Agenda 233 Tuesday, March 22, 2022
14 Recommendation

1. Ask clarifying questions2. Accept report
Informational Report on 2021 Fireworks Season – March 22, 2022 City Council/RSA Agenda 234 Tuesday, March 22, 2022
Agenda Item
DATE: 3/22/2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: JOAN MALLOY, CITY MANAGER
SUBJECT: ADOPT A RESOLUTION APPROVING AN AMENDMENT TO THE

COMPENSATION AND BENEFIT PLAN FOR UNREPRESENTED
EMPLOYEES AND APPROVING AN AMENDMENT TO THE CITY’S

SALARY SCHEDULE IN CONFORMANCE WITH CALIFORNIA CODE OF
REGULATIONS, TITLE 2, SECTION 570.5
Staff recommends that the City Councilapprove an amendment to the City’s Compensation and Benefit Plan for Unrepresented Employees (the “Plan”) and a concurrent amendment to the City’s Salary Schedule, effective April 4, 2022. Employees subject to the Plan include Department Heads, Management, and NonManagement positions.

STRATEGIC PLAN ALIGNMENT
This action supports Strategy 8 of Goal B, Governance and Organization Effectiveness, by ensuring salaries are competitive in order to recruit, attract and retain talented employees.

BACKGROUND
The unrepresented Department Head positions subject to the Plan include:Assistant City Manager/Chief Financial Officer, Deputy City Manager, Community and Recreation Services Director, Economic and Development Director, Finance Director, Human Resources Director, Information Technology Director, Community, and the Public Works Director. The unrepresented Management positions subject to the Plan include:Assistant to the City Manager, Chief Human Resources Officer, Chief Technology Officer, City Clerk, Human Resources Analyst I, Human Resources Analyst II, Human Resources Manager, and Supervising Construction Inspector. The unrepresented Non-Management positions subject to the Plan include: Administrative Specialist-Confidentialand Human Resources Technician.

The proposed resolution provides that any revisions will not include any adjustment to the salary or benefits for City Council/RSA Agenda 235 Tuesday, March 22, 2022
the City Manager, who is subject to a separate employment agreement and will be considered separately.

Additionally, the Chief of Police is subject to a separate employment agreement that identifies applicable benefits and compensation for that position.

The changes to the Plan seek to provide clarification and consistency among benefit offerings for allemployees citywide. In addition, the changes eliminate compaction and provide growth opportunities within the positions.

DISCUSSION
Below is a summary of the main revisions to the Plan. As noted above, these revisions will not apply to the City Manager.

Cost of Living Adjustments
· Department Head positions: Provides cost of living adjustments of o 3% effective the first full pay period following January 1, 2023; and o 3% effective the first full pay period following January 1, 2024. o Additionally, employees will receive a one-time lump sum payment equivalent to the required contributions made toward medical, dental, and vision premiums from January 10, 2022, through April 3, 2022.
· Management and Non-Management positions: Provides cost of living adjustments of:
o 3% effective April 4, 2022
o 3% effective the first full pay period following January 1, 2023; and o 3% effective the first full pay period following January 1, 2024. o Additionally, employees will receive a one-time lump sum payment equivalent to 3% for the period of January 10, 2022, through April 3, 2022.

Market Equity Adjustments:

Pursuant to the Strategic Plan adopted by the City in FY 2020-21, the City is initiating the process to retain consultant services for the purposes of conducting a totalcompensation and benefits study for all City classifications (except those in Police Officer Association and Police Management Association) to make a determination regarding equity adjustments.

Vacation Accrual
Department Heads: Increases the vacation accrual rate for employees at all tiers of service to be consistent with all other bargaining units.

Management and Non-management: Changes the years of service for Tier 2 from 4-9 years of service to 4-8 years of service and changes the years of service for Tier 3 from 10-12 years of service to 9-12 years of service to be consistent with all other bargaining units.

Vacation and Administrative Leave Sellback
Revises vacation and administrative leave sellback language and maximum limit of hours to be compliant with IRS constructive receipt as applicable.

Health and Welfare
Department Heads: Removes the required employee contribution of $709.50 per month toward medical, dental, and vision monthly premiums before accessing the City’s contribution. Adds cash in lieu of health plan coverage pay of three hundred dollars ($300.00) per month to be consistent with all other bargaining units.

Floating Holidays
Updates language to meet intent of “use it or lose it.” Floating holidays must be used within the fiscal City Council/RSA Agenda 236 Tuesday, March 22, 2022
year that they are awarded. Updates the pay period in which additional floating holidays are loaded in employee’s leave balance when a holiday falls on a dark non-working Friday.

Salary Step Schedule
Adds language to define schedule of salary steps consistent with other bargaining units.

FISCAL IMPACT
The estimated cost of this Compensation and Benefits Plan is projected to be $83,741 annually. over the next three years.

RECOMMENDATION
Staff recommends that the City Councilapprove the attached resolution to approve an amendment to the Plan and Salary Schedule, effective April 4, 2022, for the applicable positions.

Prepared by:

Joan Malloy, City Manager
Submitted by:

Joan Malloy, City Manager
ATTACHMENTS:

Description Type
Resolution Compensation and Benefit Plan Unrep 3 22 2022 Resolution 2021-22-9 - Salary Compensation Table FY2021-22.Effective 04-04- 2022.UNREP'DDH_MGMT_NON-MGMT
Attachment
Compensation and Benefit Plan March 22, 2022 Attachment Desk Item Attachment
Desk Item Attachment
Power Point Attachment
City Council/RSA Agenda 237 Tuesday, March 22, 2022
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

UNION CITY APPROVING AN AMENDMENT TO THE

COMPENSATION AND BENEFIT PLAN FOR

UNREPRESENTED EMPLOYEES AND APPROVING AN
AMENDMENT TO THE CITY’S SALARY SCHEDULE IN

CONFORMANCE WITH CALIFORNIA CODE OF
REGULATIONS, TITLE 2, SECTION 570.5
WHEREAS, the City of Union City (the “City”) has previously adopted and periodically amended the Compensation and Benefit Plan for Unrepresented Employees; and
WHEREAS, classifications that are subject to the Compensation and Benefit Plan for Unrepresented Employees are unrepresented employees; and WHEREAS, the City Council desires to establish salaries and benefits for classifications that are subject to the Compensation and Benefit Plan for Unrepresented Employees; and
WHEREAS, the City Council does not desire or intend to adjust the salary or benefits for City Manager Joan Malloy (the “City Manager”), who is subject to a separate employment agreement (the “Employment Agreement”). Pursuant to the terms of the Employment Agreement, the City Council will consider adjusting salary and/or benefits to the City Manager following a performance evaluation and separately from this action.

Thus, Malloy shall continue to receive the salary outlined in the Employment Agreement and any benefits that existed prior to approval of the Plan (as identified in Exhibit A and delineated below); and
WHEREAS, the Compensation and Benefit Plan for Unrepresented Employees (the “Plan”), dated March 22, 2022, attached hereto and incorporated by this reference as Exhibit A, enumerates the job classifications whose incumbents shall be considered subject to the Plan and also provides for the salaries and benefits for such incumbents; and
WHEREAS, the City Council has considered the Plan and finds that the terms and conditions of the Plan are proper and in the best interests of the City.

NOW, THEREFORE, BE IT RESOLVED that the City Council hereby approves and adopts the Compensation and Benefit Plan for Unrepresented Employees, dated March 22, 2022 and attached hereto and incorporated herein by reference, effective April 4, 2022 and authorizes the City Manager to take such further actions as may be necessary to implement the Plan including any necessary non-substantive modifications.

City Council/RSA Agenda 238 Tuesday, March 22, 2022
BE IT FURTHER RESOLVED that any revisions to salary and benefits provided for in the Plan shall not apply to the City Manager.

BE IT FURTHER RESOLVED that the City Council hereby approves an amendment to the City’s Salary Schedule to reflect the revisions in compensation provided pursuant to the Plan, effective April 4, 2022.

City Council/RSA Agenda 239 Tuesday, March 22, 2022
`
Amendment #9: Effective April 4, 2022 - Reso. No. XXXX-22 Amendment #8: Effective April 4, 2022 - Reso. No. XXXX-22 Amendment #7: Effective March 21, 2022 - Reso. No. XXXX-22

CITY OF UNION CITY
Salary Compensation Table
FY 2021-22
Effective: April 4, 2022
Amendment #1: Effective September 14, 2021 - Reso. No. 5824-21 Amendment #2: Effective January 1, 2022 - Minimum Wage
Amendment #3: Effective January 10, 2022 - Reso. No. 5884-22 Amendment #4: Effective January 10, 2022 - Reso. No. 5889-22 Amendment #5: Effective February 22, 2022 - Reso. No. 5898-22 Amendment #6: Effective March 7, 2022 - Reso. No. 5899-22 City Council/RSA Agenda 240 Tuesday, March 22, 2022
Bargaining Step Step Step Step Step
Unit # Title 1 2 3 4 5
FULL-TIME (monthly rates shown )
City Council 10010 Mayor 2,437
City Council 10020 Council Member 1,625
City Manager 20010 City Manager 22,310
Min. Range Max.

Dept. Heads 20015 Asst. City Manager/Chief Financial Officer 17,004 20,436 Dept. Heads 20020 Deputy City Manager 16,383 19,650
Dept. Heads 20470 CRS Director 15,976 19,154
Dept. Heads 20515 ECD Director 15,976 19,154
Dept. Heads 20275 Finance Director 15,976 19,154
Dept. Heads 20280 Human Resources Director 15,976 19,154 Dept. Heads 20290 Information Technology Director 15,976 19,154 Dept. Heads 40010 Police Chief 20,870 21,705 22,573 23,476 24,415 Dept. Heads 20710 Public Works Director 16,277 19,522
Unrep Mgmt 21050 Assistant to City Manager 13,796 16,567 Unrep Mgmt 21185 Chief Human Resources Officer 14,487 17,396 Unrep Mgmt 21315 Chief Technology Officer 14,487 17,396 Unrep Mgmt 20030 City Clerk 11,453 11,977 12,529 13,108 13,716 Unrep Mgmt 20145 Human Resources Analyst I 7,754 8,094 8,452 8,828 9,223 Unrep Mgmt 20155 Human Resources Analyst II 9,482 9,911 10,360 10,829 11,324 Unrep Mgmt 20180 Human Resources Manager 12,108 12,666 13,248 13,862 14,505 Unrep Mgmt 20930 Supervising Construction Inspector 9,833 10,279 10,748 11,240 11,756 Unrep Non-Mgmt 21010 Administrative Specialist-Confidential 6,363 6,683 7,017 7,369 7,738 Unrep Non-Mgmt 30800 Human Resources Technician 6,985 7,336 7,694 8,087 8,487 Management 20360 Budget Manager/Purchasing Agent 11,196 11,711 12,250 12,818 13,412 Management 20590 Chief Building Official/Sr. Plans Examiner 12,881 13,473 14,099 14,752 15,441 Management 20810 City Engineer 13,375 13,999 14,653 15,339 16,060 Management 20505 Clinical Supervisor 7,965 8,317 8,687 9,076 9,484 Management 20650 Communications & Marketing Mgr. 10,722 11,251 11,781 12,304 12,834 Management 20800 Cyber Security Manager 10,762 11,246 11,752 12,281 12,834 Management 20630 Economic Development Manager 10,722 11,251 11,781 12,304 12,834 Management 20600 Environmental Program Manager 11,580 12,114 12,674 13,262 13,879 Management 20911 Fleet Supervisor 9,689 10,128 10,590 11,074 11,583 Management 20540 HCD Manager 11,483 12,013 12,568 13,151 13,762 Management 20500 Intervention Counselor I 6,788 7,084 7,391 7,716 8,055 Management 20310 IT Manager 13,394 14,017 14,672 15,361 16,084 Management 20450 CRS Manager 11,293 11,811 12,357 12,929 13,531 Management 20080 Management Analyst I 7,528 7,858 8,206 8,571 8,955 Management 20090 Management Analyst II 9,206 9,622 10,058 10,514 10,995 Management 20100 Management Analyst III 11,196 11,711 12,250 12,818 13,412 Management 20510 Neigh. Pres. Coord. 10,722 11,251 11,781 12,304 12,834 Management 20560 Planning Manager 12,268 12,832 13,427 14,049 14,705 Management 20860 Principal Civil Engineer 11,995 12,550 13,132 13,745 14,385 Management 20730 Public Works Superintendent 11,677 12,214 12,780 13,372 13,997 Management 20920 PW Grounds Supervisor 10,047 10,505 10,984 11,489 12,016 Management 20910 PW Streets Supervisor 10,047 10,505 10,984 11,489 12,016 Management 20700 Recycling & Solid Waste Prog Mgr 10,431 10,909 11,410 11,937 12,489 Management 20620 Redevelopment Manager 11,580 12,114 12,674 13,262 13,879 Management 20370 Revenue Collections Manager 11,196 11,711 12,250 12,818 13,412 Management 20350 Supervising Accountant 10,451 10,927 11,428 11,955 12,506 Management 20912 Transit Manager 11,293 11,811 12,357 12,929 13,531 Classification
CITY OF UNION CITY - Salary Compensation Table - FY 2021-22 City Council/RSA Agenda 241 Tuesday, March 22, 2022
Management 20508 Youth & Family Servs Prog Mgr 9,547 9,980 10,435 10,913 11,414 Bargaining Step Step Step Step Step Step Step
Unit # Title 1 2 3 4 5 6 7
Police Mgmt. 40020 Police Captain 16,533 17,312 18,129 18,987 19,889 Police Mgmt. 40040 Police Lieutenant 14,016 14,702 15,423 16,187 16,989 Police Mgmt. 40015 Deputy Police Chief 17,342 18,155 19,010 19,904 20,848 Police Mgmt. 40045 Police Commander 14,712 15,428 16,182 16,979 17,817 UCPOA 40220 Community Relations Officer 6,714 7,050 7,402 7,773 8,163 UCPOA 40095 Community Resources Coord 5,826 6,118 6,424 6,744 7,081 UCPOA 40090 Community Service Aide 5,748 6,004 6,273 6,557 6,856 UCPOA 40240 Confidential Operations Assistant 6,688 7,023 7,374 7,742 8,130 UCPOA 40080 Crime Analyst 8,163 8,571 8,999 9,450 9,922 UCPOA 40070 Dispatch Clerk 6,355 6,530 6,824 7,135 7,460 UCPOA 40170 Dispatch Clerk Trainee 5,503
UCPOA 40063 Personnel and Training Supervisor 6,714 7,050 7,403 7,773 8,163 UCPOA 40130 Police Corporal 11,091
UCPOA 40230 Police Dept. Office Coord. 5,785 6,076 6,379 6,698 7,034 UCPOA 40140 Police Office Assistant 5,273 5,537 5,814 6,105 6,410 UCPOA 40050 Police Officer 8,056 8,428 8,809 9,184 9,646 10,129 10,635 UCPOA 40150 Police Officer Recruit I 6,455
UCPOA 40160 Police Officer Recruit II 7,622
UCPOA 40060 Police Records Supervisor 6,714 7,050 7,402 7,773 8,163 UCPOA 40030 Police Sergeant 10,888 11,377 11,882 12,476 13,100 UCPOA 40120 Prisoner Transportation Officer 5,748 6,004 6,273 6,557 6,856 UCPOA 40100 Property & Evidence Specialist 5,748 6,004 6,273 6,557 6,856 UCPOA 40065 Property & Evidence Supervisor 6,714 7,050 7,402 7,773 8,163 UCPOA 40110 Public Services Officer I 5,826 6,118 6,424 6,744 7,081 UCPOA 40180 Public Services Officer II 6,133 6,441 6,763 7,099 7,455 SEIU 1021 50520 Administrative Assistant I 4,806 5,028 5,258 5,504 5,757 SEIU 1021 50525 Administrative Assistant II 5,258 5,504 5,757 6,025 6,304 SEIU 1021 50530 Administrative Assistant III 5,757 6,025 6,304 6,600 6,909 SEIU 1021 50290 Bldg./Code Comp. Inspector 6,935 7,257 7,589 7,937 8,300 SEIU 1021 50201 Bldg./Code Comp. Insp. - Trainee 6,116 6,401 6,694 7,001 7,322 SEIU 1021 50255 Building Permit Technician 5,529 5,807 6,087 6,368 6,645 SEIU 1021 50251 Building Permit Technician II 6,011 6,303 6,610 6,933 7,271 SEIU 1021 50566 Communications Coordinator 4,937 5,164 5,401 5,654 5,913 SEIU 1021 50256 Community Development Technician 5,394 5,665 5,938 6,212 6,483 SEIU 1021 50351 Facility Maint - Worker 5,342 5,583 5,834 6,103 6,378 SEIU 1021 50080 Finance Specialist I 4,474 4,674 4,899 5,130 5,369 SEIU 1021 50090 Finance Specialist II 4,899 5,130 5,369 5,627 5,893 SEIU 1021 50100 Finance Specialist III 5,369 5,627 5,893 6,173 6,470 SEIU 1021 50332 Lead Facilities Maintenance Worker 6,261 6,546 6,847 7,151 7,484 SEIU 1021 50537 Lead Outreach Worker 5,159 5,418 5,688 5,972 6,271 SEIU 1021 50323 Lead Veh. Heavy Eqpt. Mech. 6,261 6,546 6,847 7,151 7,484 SEIU 1021 50361 Leisure Services Maintenance Worker 4,746 4,984 5,233 5,495 5,769 SEIU 1021 50360 Maint I - Parks & Grounds 4,886 5,116 5,355 5,606 5,872 SEIU 1021 50330 Maint I - Streets 4,886 5,116 5,355 5,606 5,872 SEIU 1021 50342 Maint II - Parks & Grounds 5,409 5,664 5,927 6,206 6,500 SEIU 1021 50320 Maint II - Streets 5,409 5,664 5,927 6,206 6,500 SEIU 1021 50325 Maint Trainee-Parks & Grounds 4,187 4,380 4,586 4,798 5,022 CITY OF UNION CITY - Salary Compensation Table - FY 2021-22 Classification
City Council/RSA Agenda 242 Tuesday, March 22, 2022
Bargaining Step Step Step Step Step
Unit # Title 1 2 3 4 5
SEIU 1021 50350 Maint Trainee-Streets 4,187 4,380 4,586 4,798 5,022 SEIU 1021 50500 Office Specialist I 3,790 3,963 4,138 4,323 4,520 SEIU 1021 50505 Office Specialist II 4,128 4,313 4,508 4,714 4,926 SEIU 1021 50510 Office Specialist III 4,505 4,711 4,923 5,150 5,386 SEIU 1021 50560 Preschool Site Supervisor II 3,783 3,972 4,171 4,379 4,598 SEIU 1021 50291 Public Works Inspector 6,829 7,213 7,562 7,927 8,310 SEIU 1021 50370 Public Works Maintenance II 5,409 5,664 5,927 6,206 6,500 SEIU 1021 50110 Recreation Administrative Technician 5,912 6,207 6,518 6,843 7,186 SEIU 1021 50160 Recreation Program Coordinator 5,381 5,643 5,921 6,215 6,519 SEIU 1021 50600 Recycling Programs Coordinator 5,552 5,822 6,109 6,412 6,726 SEIU 1021 50380 Special Projects Coordinator 5,033 5,271 5,516 5,774 6,048 SEIU 1021 50538 Street Outreach Worker 3,863 4,057 4,260 4,473 4,696 SEIU 1021 50341 Street Sweeper Operator 5,212 5,447 5,692 5,954 6,222 SEIU 1021 50517 Transit Coordinator 6,332 6,628 6,966 7,259 7,601 SEIU 1021 50321 Veh. Heavy Eqpt. Mech. 5,590 5,844 6,111 6,388 6,683 SEIU 1021 50326 Vehicle Equipment Technician 4,646 4,877 5,122 5,378 5,647 SEIU 1021 50536 Youth Employment Coordinator 5,159 5,418 5,688 5,972 6,271 Professionals 30060 Accountant 6,952 7,299 7,657 8,048 8,446 Professionals 30250 Assistant Planner 6,418 6,738 7,072 7,427 7,799 Professionals 30230 Associate Planner 7,685 8,067 8,469 8,893 9,336 Professionals 30090 Case Manager 5,289 5,553 5,830 6,122 6,428 Professionals 30275 Emergency Services Coordinator 8,304 8,719 9,148 9,607 10,087 Professionals 30150 Engineer I (Civil) 6,456 6,775 7,116 7,473 7,846 Professionals 30130 Engineer II (Civil) 7,363 7,731 8,108 8,521 8,944 Professionals 30120 Engineer III (Civil) 8,304 8,719 9,148 9,607 10,087 Professionals 30030 Environmental Analyst I 6,178 6,489 6,812 7,154 7,512 Professionals 30031 Environmental Analyst II 6,975 7,342 7,729 8,135 8,564 Professionals 30040 Environmental Programs Inspector 8,986 9,459 9,956 10,477 11,031 Professionals 30080 Intervention Counselor 6,175 6,484 6,809 7,149 7,507 Professionals 30065 Payroll Technician 6,782 7,122 7,470 7,851 8,240 Professionals 30100 Recreation Supervisor 6,519 6,845 7,187 7,545 7,922 Professionals 30020 Senior Accountant 7,931 8,335 8,751 9,184 9,638 Professionals 30210 Senior Planner 8,761 9,222 9,709 10,218 10,755 Professionals 30400 Senior Recreation Supervisor 8,225 8,626 9,045 9,489 9,951 Professionals 30260 Senior Systems Analyst 10,088 10,615 11,144 11,669 12,196 Professionals 30310 Sustainability Analyst I 6,089 6,393 6,713 7,049 7,401 Professionals 30320 Sustainability Analyst II 7,189 7,548 7,926 8,322 8,738 Professionals 30053 Building Code Compliance Coordinator 10,088 10,615 11,144 11,669 12,196 Professionals 30055 Sr. Building/Code Compliance Inspect 8,986 9,459 9,956 10,477 11,031 Professionals 30265 Systems Analyst 9,675 10,159 10,667 11,200 11,760 Professionals 30501 Transit Planner-Assistant 6,418 6,738 7,072 7,427 7,799 Professionals 30502 Transit Planner-Associate 7,685 8,067 8,469 8,894 9,335 Professionals 30503 Transit Planner-Senior 8,761 9,222 9,709 10,218 10,756 Professionals 30270 Web and Database Administrator 9,231 9,693 10,177 10,686 11,220 PART-TIME (hourly rates shown)
UCPOA PT 40070 Dispatcher Clerk (PT) 36.67 37.67 39.37 41.16 43.04 UCPOA PT 40120 Prisoner Transportation Officer (PT) 33.16 34.64 36.19 37.83 39.55 UCPOA PT 40181 Public Services Officer I (PT) 33.61 35.30 37.06 38.91 40.85 UCPOA PT 40182 Public Services Officer II (PT) 35.38 37.16 39.02 40.95 43.01 CITY OF UNION CITY - Salary Compensation Table - FY 2021-22 Classification
City Council/RSA Agenda 243 Tuesday, March 22, 2022
Bargaining Step Step Step Step Step
Unit # Title 1 2 3 4 5
Min. Range Max.

Unrep. Police PT 60140 Per Diem Police Dispatcher 36.00 50.00 Unrep. Police PT 60120 Police Cadet 15.86 16.65 17.48
Unrep. Police PT 60130 Police Reserve 15.00
Unrep. Police PT 60150 Police Officer Trainee 41.13
SEIU 1021 PT 50373 Facilities Maint Attendant (PT) 23.16 24.32 25.54 26.82 28.16 SEIU 1021 PT 50533 CRS Program Manager 18.30 19.20 20.17 21.16 22.21 SEIU 1021 PT 50500 Office Specialist I (PT) 21.86 22.87 23.87 24.94 26.08 SEIU 1021 PT 50505 Office Specialist II (PT) 23.82 24.88 26.01 27.20 28.42 SEIU 1021 PT 50510 Office Specialist III (PT) 25.99 27.18 28.40 29.71 31.07 SEIU 1021 PT 50561 Preschool Site Supv. I 17.69 18.57 19.50 20.47 21.49 SEIU 1021 PT 50532 Program Coordinator (PT) 31.04 32.56 34.16 35.86 37.61 SEIU 1021 PT 50531 Senior Recreation Leader 15.03 15.80 16.59 17.41 18.30 SEIU 1021 PT 50538 PT Street Outreach Worker 22.29 23.40 24.58 25.81 27.09 Unrep. Gen. PT 60069 CRS Program Manager 19.29 20.25 21.26 22.33 23.44 Unrep. Gen. PT 60100 Preschool Aide 15.00 15.75
Unrep. Gen. PT 60090 Preschool Teacher 17.14 18.00 18.90 19.84 20.84 Unrep. Gen. PT 60072 Program Coordinator (PT) 22.50 23.62 24.81 26.05 27.35 Unrep. Gen. PT 60232 Recreation Aide 15.00 15.75
Unrep. Gen. PT 60233 Recreation Leader 16.07 16.87 17.72 18.60 19.53 Unrep. Gen. PT 60300 Seasonal Maintenance Worker 21.43 22.50 23.62 24.81 26.05 Unrep. Gen. PT 60234 Senior Recreation Leader 17.14 18.00 18.90 19.84 20.84 Unrep. Gen. PT 60600 Intern 15.00 54.64
Unrep. Gen. PT 60570 Project Specialist 15.00 83.48
CITY OF UNION CITY - Salary Compensation Table - FY 2021-22 Classification
City Council/RSA Agenda 244 Tuesday, March 22, 2022
1 COMPENSATION AND BENEFIT PLAN

FOR UNREPRESENTED EMPLOYEES
Department Heads, Management and Non-Management
Updated March 22, 2022
(Excludes Unrepresented Seasonal and Police Department positions) City Council/RSA Agenda 245 Tuesday, March 22, 2022
2 TABLE OF CONTENTS
SECTION 1.00 CLASSIFICATIONS .....................................................................................3 SECTION 2.00 COMPENSATION...........................................................................................

A. Administration of the Compensation Plan ...........................................................................

B. Longevity Pay
C. Vehicle Allowance
D. Salaries
SECTION 3.00 WORK SCHEDULES......................................................................................

SECTION 4.00 LEAVE .............................................................................................................

A. Administrative Leave ...........................................................................................................

B. Bereavement Leave ..............................................................................................................

C. Family Leave ........................................................................................................................

D. Holidays
E. Jury Leave ............................................................................................................................

F. Military Leave ......................................................................................................................

G. Personal Leave
H. Sick Leave
I. Occupational Injury Leave
J. Unpaid Leave of Absence
K. Vacation
SECTION 5.00 INSURANCE COVERAGE ............................................................................

A. Health and Welfare Coverage ..............................................................................................

B. Life Insurance.......................................................................................................................

C. Deferred Compensation Plan................................................................................................

D. Disability Insurance..............................................................................................................

SECTION 6.00 RETIREMENT BENEFITS.............................................................................

A. Classic Members ..................................................................................................................

B. New Members ......................................................................................................................

SECTION 7.00 TUITION REIMBURSEMENT ......................................................................

SECTION 8.00 SEPARATION .................................................................................................

City Council/RSA Agenda 246 Tuesday, March 22, 2022
3 SECTION 1.00 CLASSIFICATIONS
The classifications listed below of unrepresented positions shall be compensated pursuant to the City’s Compensation Plan and the salary schedule as set forth in Attachment A attached hereto and incorporated herein by this reference. The classifications that are participating in the unrepresented management compensation and benefit plan are those listed below:

Department Heads Unrepresented Management
Assistant City Manager/Chief Financial
Officer
Deputy City Manager
Economic and Community Development
Director
Finance Director
Human Resources Director
Information Technology Director
Community and Recreation Services
Director
Public Works Director
Assistant to the City Manager
Chief Human Resources Officer
Chief Technology Officer
City Clerk
Human Resources Analyst I
Human Resources Analyst II
Human Resources Manager
Supervising Construction Inspector
Unrepresented Non-Management
Human Resources Technician
Administrative Specialist -
Confidential
SECTION 2.00 SALARIES AND ALLOWANCES
Administration of the Compensation Plan:

The Compensation Plan may provide a flat salary rate or a defined salary range for each management employee classification with a minimum/maximum salary level and one or more intermediate steps.

A. Longevity Pay (For Department Heads only):

Upon completion of nineteen (19) years of permanent full-time service with the City, employees shall be entitled to longevity pay of 5% of base salary.

B. Vehicle Allowance (For Department Heads only):

Employees shall be provided a vehicle allowance in the amount of Four Hundred Dollars ($400) per month ($184.62 per pay period).

C. Salaries
Effective April 4, 2022, the City will provide each Unrepresented Management and Non-management classification with a cost-of-living increase of three percent (3.0%).

Additionally, the City shall provide a one-time lump sum payment equivalent to 3% for the period of January 10, 2022 through April 3, 2022 for these classifications.

Department Head employees will receive a one-time lump sum payment equivalent to the required contributions made toward medical, dental, and vision premiums from January 10, 2022, through April 3, 2022.

City Council/RSA Agenda 247 Tuesday, March 22, 2022
4 Effective the first full pay period following January 1, 2023 the City will provide each unrepresented classification subject to this Compensation and Benefits Plan with a cost-of-living increase of three percent (3.0%).

Effective the first full pay period of January 1, 2024, the City will provide each unrepresented classification subject to this Compensation and Benefits Plan with a cost-of-living increase of three percent (3.0%).

SECTION 3.00 WORK SCHEDULES
The City normally operates on a 9/80 work schedule with employees working eighty (80) hours over nine (9) consecutive business days, Monday through Friday. However, Department Heads, with the City Manager approval, shall structure the work schedules for all management and non-management employees in their department. In structuring schedules, the Department Head shall be governed by the priority to provide quality service to the community. In delivering these services Department Heads have the opportunity to consider flexible scheduling options. These scheduling opportunities shall remain solely at the City’s discretion.

SECTION 4.00 LEAVE
A. Administrative Leave for FLSA exempt positions:

In lieu of paid overtime, Unrepresented Management employees shall receive seventy (70) hours of Administrative Leave at the beginning of each fiscal year. In addition, those management employees whose work assignments require additional work effort and/or attendance at evening and/or weekend meetings and/or special events on behalf of the City above and beyond seventy (70) hours per fiscal year shall be eligible for an additional forty (40) hours per fiscal year of Administrative Leave (II) for a total of one hundred ten (110) hours. Additional Administrative Leave is subject to the recommendation of the Department Head and approval by the City Manager.

Department Head employees shall receive one hundred fifty (150) hours of Administrative Leave at the beginning of each fiscal year. In addition, those management employees whose work assignments require additional work effort and/or attendance at evening and/or weekend meetings and/or special events on behalf of the City above and beyond 150 hours per fiscal year shall be eligible for an additional ten (10) hours per fiscal year of Administrative Leave for a total of one hundred (160) hours.

Effective fiscal year 2022-2023, Department Head employees shall receive one hundred sixty (160) hours of Administrative Leave at the beginning of each fiscal year.

The guidelines for making use of Administrative Leave will be as follows:

1. Employees shall submit requests for time off under Administrative Leave in writing directly to their immediate supervisor. The supervisor will approve or deny the request based upon operational needs.

City Council/RSA Agenda 248 Tuesday, March 22, 2022
5 2. Administrative Leave is based on the City’s fiscal year and therefore runs from July 1 to June 30.

3. Administrative Leave for employees hired after July 1 or who leave prior to June 30 of the following year will be prorated.

4. Employees may not use Administrative Leave during their first six months of service. (Exceptions to this rule may be granted by the City Manager).

For Unrepresented Management only: For fiscal year 2021-2022, unused Administrative Leave may be accumulated up to a maximum of two hundred forty (240) hours or may be cashed out as requested by the employee at the end of the fiscal year 2022 only. Said payment shall be based upon the employee's salary rate at the time of the cash out request. For separation provisions concerning Administrative Leave, please see Section

8.00 of this document. The unused 240-hour accumulation does not include the Additional Administrative Leave identified in paragraph below.

The award of Administrative Leave is subject to the recommendation of the Department Head and approval by the City Manager. The first 10 (ten) hours of additional Administrative Leave awarded will be deposited in the same leave bank as regular, recurring Administrative Leave, (70 hours). Additional Administrative Leave awarded above 10 hours will be loaded in a separate Administrative Leave bank and must be used during the fiscal year awarded. These hours are awarded for the prior year’s work and may not be accumulated or cashed out.

For Department Heads only: For fiscal year 2021-2022, unused Administrative Leave may be carried over to the subsequent fiscal year or may be cashed out as requested by the employee at the end of fiscal year 2022 only. Cash out is up to maximum accruals.

Said payment shall be based upon the employee's salary rate at the time of the cash out request. For separation provisions concerning Administrative Leave, please see Section

10.00 of this document. For fiscal year 2022-23, Department Heads may sell back up to their maximum accrual by December 31, 2022.

For Department Heads and Unrepresented Management: Effective calendar year 2023, and every calendar year thereafter , under the following conditions employees may make an irrevocable election to sell back to the City accrued administrative leave per fiscal year at the employee’s base rate of pay. Unrepresented Management positions may make an irrevocable election to sell back to the City up to seventy (70) hours. Department Head positions may make an irrevocable election to sell back to the City up to one hundred and sixty (160) hours. At the time of distribution, the following must be true:
• The employee is in good standing and meeting performance expectations on the last performance evaluation received.
• The employee must have taken a minimum of eighty (80) hours of vacation, holiday and/or administrative leave in the preceding twelve (12) months.

City Council/RSA Agenda 249 Tuesday, March 22, 2022
6 Requests to sell back administrative leave must be received by Payroll no later than December 31 for the following year’s election.

The City makes no representation as to the tax consequences of an employee cashing out accrued leave. It is the employee’s sole responsibility to address the tax consequences of cashing out accrued leave.

B. Bereavement Leave:

Employees may be granted paid bereavement leave, not to exceed five (5) workdays, upon the occasion of the death of a close relative. The five days may be taken nonconsecutively. Close relatives are defined as mother, father, sister, brother, spouse, child, grandparent, grandchild, mother-in-law, father-in-law, sister-in-law, brother-in-law, daughterin-law, son-in-law, stepmother, stepfather, stepchild, domestic partner, or individuals residing in the household for whom the employee has legal guardianship. In addition, employees may be granted one (1) workday’s paid bereavement leave to attend the funeral of a close relative not in the employee’s immediate family (for example, aunts, uncles, nephews, nieces, or spouse/domestic partner's close relatives as defined above).

C. Family Leave:

The City shall comply with all provisions of the Federal Family Medical Leave Act (FMLA) and the California Family Rights Act (CFRA), including their respective implementing regulations. However, Administrative Policy Memorandum (APM) #61 shall provide the overriding basis and criteria for all decisions and matters relating to Family Leave.

D. Holidays
The following are holidays:

New Year's Day January 1
Martin Luther King, Jr.'s Birthday 3rd Monday in January President's Day 3rd Monday in February
Memorial Day Last Monday in May
Independence Day July 4
Labor Day 1st Monday in September
Veteran's Day November 11
Thanksgiving Day 4th Thursday in November
Friday after Thanksgiving 4th Friday in November
Christmas Eve December 24*
Christmas Day December 25
In the event a holiday falls on a normal day off which is either a Saturday or the first day off of the two normal days off, the employee shall observe the previous workday as the holiday. In the event a designated holiday falls upon a normal day off which is either a Sunday or the second day of the two normal days off, the employee shall observe the following workday as the holiday. Should the holiday fall on a closed (non-working) Friday, eight (8) additional floating holiday hours shall be added to each employee's floating holiday bank. *Christmas Eve Observed
City Council/RSA Agenda 250 Tuesday, March 22, 2022
7 If Christmas Day falls on a Saturday, the Christmas Day holiday is observed on Friday; the Christmas Eve holiday is then observed on Thursday. If Christmas Day falls on a Sunday, the Christmas Day holiday is observed on Monday; there is no Christmas Eve holiday observance. When Christmas Day falls on Monday, there is no Christmas Eve holiday observance.

City offices shall be closed between Christmas Day and New Year's Day.

For Non-Management Employees Only:

Prior approval for holiday work must be obtained from the City Manager, except in an emergency situation where said approval cannot be obtained. Work performed on a holiday shall be compensated at time and one-half the straight time hourly rate, in addition to regular salary.

Floating Holidays
Each employee shall also be granted twenty-seven (27) additional Floating Holiday hours per fiscal year, which may be scheduled for use upon approval. The Floating Holiday hours, if not used within the fiscal year earned, may not be accumulated.

In the event a holiday falls on a normal day off which is either a Saturday or the first day off of the two normal days off, the employee shall observe the previous workday as the holiday. In the event a designated holiday falls upon a normal day off which is either a Sunday or the second day of the two normal days off, the employee shall observe the following workday as the holiday.

Should the holiday fall on a closed (non-working) Friday, eight (8) additional floating holiday hours shall be added to each employee's floating holiday bank in the pay period immediately before the holiday.

E. Jury Leave:

An employee summoned to jury duty or summoned as a witness in a City-related matter shall not suffer a loss of pay or other benefits by reason of said service. Employees are required to submit verification of jury leave attendance to their supervisor promptly upon returning to work. The juror badge attached to the jury summons notice does not qualify as verification of attendance.

F. Military Leave:

Military Leave shall be granted in accordance with the provisions of State law. All employees entitled to Military Leave shall give their Department Head an opportunity within the limits of military requirements to determine when such leave shall be taken.

G. Occupational Injury Leave:

For employee injury or disability falling within the provisions of the State Worker's Compensation Act, additional compensation equal to the difference between said employee’s regular pay and their disability compensation allowance shall be paid for a total not to exceed one-hundred seventy-six (176) hours or equal to one-half the amount of the City Council/RSA Agenda 251 Tuesday, March 22, 2022
8 employee's accumulated Sick Leave balance as of July 1 for each fiscal year, whichever is greater.

Included in the calculation of the one-hundred seventy-six (176) hours granted will be compensation for any waiting period. Following exhaustion of this benefit, employees may utilize accumulated Sick Leave to the extent available to make up the difference between said employee’s regular pay and their disability compensation allowance.

H. Personal Leave:

The City shall allow twenty (20) hours per fiscal year of accumulated Sick Leave to be used for conducting personal or emergency business that cannot be conducted outside regular working hours.

An additional eight (8) hours will be allowed for those employees who have an accumulated Sick Leave balance as of July 1 of each fiscal year of one hundred (100) hours or more for a total of twenty-eight (28) hours per fiscal year. An additional twelve (12) hours will be allowed for those employees who have accumulated a Sick Leave balance as of July 1 of each fiscal year of two hundred (200) hours or more, for a maximum total of forty (40) hours per fiscal year. Personal Leave shall not be used as a substitute for, or in conjunction with any other type of leave. The employee must request Personal Leave at least 48 hours (2 days) prior to time of utilization. In cases of need, the immediate supervisor may waive the 48-hour notification procedure.

I. Sick Leave:

Employees shall earn three and 69/100 (3.69) hours per pay period of Sick Leave without limit on accumulation. Employees absent without pay for more than thirty-six (36) hours during a two week pay period shall not earn sick leave benefits for that pay period. Sick leave shall be taken in periods of no less than one-quarter of an hour.

Sick leave may be utilized due to the employee's personal sickness, injury, maternity leave, sickness or injury in the immediate family, in accordance with the provisions outlined in Administrative Policy Memorandum (APM) #21, Administration of Sick Leave, which shall serve as the operating guideline for both employees and management.

Employees shall be allowed to convert sixty (60) hours of unused Sick Leave per fiscal year to their Vacation Time Bank provided the employee maintains a balance of four-hundred eighty (480) hours of Sick Leave. Conversion of Sick Leave to Vacation Leave is on an hour-for-hour basis and may only take place at the end of each fiscal year.

J. Unpaid Leave of Absence:

The City Manager may grant, a regular employee other than a probationary employee, a Leave of Absence without pay for a maximum period of one (1) year. The City Manager may grant an extension of an approved Leave of Absence without pay for an additional period, said extension not to exceed one additional (1) year. An Unpaid Leave of Absence may be granted if it does not have an unduly adverse impact on the service of the City, the purpose of the leave would be beneficial to the City, or it would meet some pressing and extreme need of the employee. Whenever granted, such leave requests shall be in writing and signed by the City Manager.

Upon expiration of the Unpaid Leave of Absence, the employee will be reinstated to the position held at the time leave was granted. Failure of the employee to report promptly at the City Council/RSA Agenda 252 Tuesday, March 22, 2022
9 expiration of the Unpaid Leave of Absence, or within a reasonable time after notice to return to duty shall terminate their right to be reinstated. Unpaid Leaves of Absence shall not be taken during the first six (6) months of City employment.

Employee is fully responsible for all benefit premiums while on approved Unpaid Leave of Absence.

K. Vacation
Employees shall accrue vacation benefits annually in accordance with the following schedule and provisions:

Years of ServiceAnnual Accrual
Rate
Non Mgmt Max
Accrual
Mgmt Max
Accrual
Dept Head Max
Accrual
0-3 Years 80 160 320 560
4 - 8Years 120 240 400 560
9-12 Years 140 280 440 560
13-15Years 160 320 480 560
16+Years 200 400 560 560
Non-Management employees shall be limited to accruing two times their maximum number of annual accrual rate.
 Management employees shall be limited to accruing two times their maximum number of annual accrual rate plus 160 hours per year.
 Department Heads may accrue up to 560 hours.

The City Manager shall have the authority to provide credit for years of service with a prior agency for newly hired Department Heads for purposes of establishing the vacation accrual rate per City Council Resolution 5793-21.

For calendar year 2022, Management and Non-Management employees may receive annual cash payment for up to eighty (80) hours of Vacation Leave provided an 80-hour balance vacation balance is maintained after cash out. Department Heads may cash out any number of hours provided an 80-hour balance is maintained after cash out.

Effective calendar year 2023, under the following conditions employees may make an irrevocable election to sell back to the City accrued vacation leave per calendar year at the employee’s base rate of pay. Management and Non-Management may make an irrevocable election to sell back up to eighty (80) hours and Department Heads may make an irrevocable election to sell back to the City up to their annual accrual.

At the time of distribution, the following must be true:
The employee is in good standing and meeting performance expectations on the last performance evaluation received.
The employee must have taken a minimum of eighty (80) hours of vacation, holiday and/or administrative leave in the preceding twelve (12) months.

City Council/RSA Agenda 253 Tuesday, March 22, 2022
10 Requests to sell back vacation leave must be received by Payroll no later than December 31 for the following year’s election.

The City makes no representation as to the tax consequences of an employee cashing out accrued leave. It is the employee’s sole responsibility to address the tax consequences of cashing out accrued leave.

Employees shall receive cash payment for all unused excess Vacation Leave at their current salary rate at the time of separation or upon the start of an extended leave from City employment.

SECTION 5.00 INSURANCE COVERAGE
A. Health and Welfare Coverage:

The City will contribute up to Two Thousand Dollars ($2,000) per month toward the medical, dental and vision premiums for all unrepresented department management and non-management employees, regardless of the plan in which they are enrolled.

This monthly contribution includes the City's basic employer contribution for health premiums under PEMCHA which City Council Resolution No. 2279-02 set as the minimum required under PEMCHA. Employees shall pay premium costs exceeding the City's maximum contribution amount.

Employees who are covered for medical benefits through a spouse or a domestic partner may elect not to enroll in a City group medical plan and are not eligible for the City's contribution towards medical, dental and vision premiums as identified in this Section.

Employees electing this option shall provide proof of medical coverage to the City. In lieu of medical insurance premiums, the City will contribute the amount of $300 per month to the employee’s deferred compensation account, or pay employees $300 per month in cash, at the employee's option.

The City agrees to advance the full cost of health premiums (medical, dental, vision, and LTD coverage) when an employee is on leave without pay for medical reasons. Amounts advanced shall be limited to three (3) months beyond any FMLA benefits and shall be due and payable to the City within six (6) months of return to work or upon termination. Retirees may elect to continue coverage with the group medical and dental plans at retiree’s cost.

B. Life Insurance:

The City shall provide life insurance coverage for unrepresented employees as follows:
$100,000 for life insurance, and $100,000 for accidental death or dismemberment.

Supplemental life insurance is also available, the cost of which shall be borne by the employee.

C. Deferred Compensation Plan (for Department Heads and Management Employees Only):

City Council/RSA Agenda 254 Tuesday, March 22, 2022
11 The City shall contribute one hundred dollars ($100.00) per month ($46.15 per pay period) to a pre-tax 401(a) Deferred Compensation Plan. The specific groupings/divisions of management classifications shall be defined at plan inception and shall be based upon criteria stated in the Deferred Compensation Plan. The option to opt out is currently irreversible and can take place only when an employee is hired/promoted to a management-level classification. If an employee opts out of plan entirely, he/she will not receive said benefit.

All details of the Deferred Compensation Plan will be consistent with the requirements of the plan provider.

D. Disability Insurance:

Both Short-Term Disability (STD) and Long-Term Disability (LTD) Insurance programs are available. Participation in the Short-Term and Long-Term Disability Plans is not optional.

SECTION 6.00 RETIREMENT BENEFITS (CalPERS)
A. Classic Members:

Consistent with its historical practice, the City pays the full share of the employee contributions to CalPERS and reports the payments as Employer Paid Member Contributions (EPMC) on behalf of the CalPERS classic members. For classic members receiving benefits based on the

2.5% at 55 formula, these payments are equal to 8% of the member employees' reportable income. For classic members receiving payments based on the 2% at 60 formula, these payments are equal to 7% of the member employees’ reportable income.

2.5% at 55: Classic Members hired prior to November 24, 2010 are provided benefits under the CalPERS 2.5% at 55 retirement formula, with final compensation calculated based on the employee's highest earning year. Employee cost sharing will be 11%. 2% at 60: Employees hired on or after November 24, 2010 are provided benefits under the CalPERS 2% at 60 retirement formula. Final compensation for these employees will be calculated based on the highest three-year average earnings. Employee cost sharing will be 10%.

B. New Members
CalPERS new members hired by the City on or after January 1, 2013 are provided pension benefits using a 2.0% at 62 formula. New members are responsible for contributing to CalPERS as required by CalPERS law.

In addition to their required employee contribution, new members of management are required to contribute 3% of the City’s contribution and new members of non-management are required to contribute 1.5% of the City’s contribution. As of the time this compensation plan is adopted, the total employee contribution is 10% for Department Heads and Management employees and 8.5% for Non-Management employees. This contribution will increase if the employee contribution rate for new members is increased above the current rate of 7%.

City Council/RSA Agenda 255 Tuesday, March 22, 2022
12 Specific Features of CalPERS Benefits
Specific features of the CalPERS benefits applicable to all employees hired prior to January 1, 2011 include:

Indexed Level of the 1959 Survivor Benefit as provided in Section 21574.5.

One-Year Fiscal Compensation as provided in Section 20042.

Post-Retirement Survivor Allowance as provided in Sections 21624, 21626 and 21628.

Benefits Payable to Surviving Spouse upon the death of an employee who qualified for retirement shall continue in full should the Spouse remarry as provided in Section 21551.

Continuation of Surviving Spouse-Benefits upon remarriage as provided in Section 21635.

Military Credit for time served in active military or merchant marine service prior to employment with the City as Public Service as provided in Section 21024, provided such cost of this enhancement be fully borne by the employee.

Sick Leave Credit as provided in Section 20965 for any unused sick leave days will be converted to service credit at the rate of 0.004 years of service for each day of sick leave provided there is less than 120 days between the member's separation date and retirement date.

Non-Industrial Disability pursuant to Section 21427, providing an annuity equal to 30% of final compensation with five years of service increasing 1% for each year in excess of five years to a maximum of 50% of final compensation.

One-time lump sum payout of $500 upon the death of a retiree paid to the retiree's survivor or retiree's estate pursuant to Section 21620.

COLA Adjustment of 2% beginning after the second calendar year after the year of retirement and each year thereafter provided the adjustment is not greater than the change in CPI-Section 21329.

Two Years Additional Service Credit to employees who retire within a specified period provided in Government Code Section 20903.

Members not covered by Social Security upon retirement shall receive a monthly allowance of $350, $700, or $840 depending on the number of eligible survivors as defined in Section 21573.

SECTION 7.00 TUITION REIMBURSEMENT
For Management Employees Only:

When a management employee voluntarily, and with prior approval of the City Manager, undertakes any education or training program that will improve their skills and abilities in relation to the job, the City will reimburse the employee upon successful completion of the course for the cost of the course or training to a maximum of three thousand dollars ($3,000) City Council/RSA Agenda 256 Tuesday, March 22, 2022
13 per fiscal year, subject to an annual cap of nine thousand dollars ($9,000) per fiscal year on total educational reimbursements paid by the City for management employees where the employee identifies the total cost of the course up front. Where the class is of unusual value and cannot be scheduled during the employee's off hours, the employee may be excused at no loss of pay. Employees may be reimbursed for more than one course per fiscal year or over the life of their employment with the City if total cost of all reimbursements does not exceed three thousand dollars ($3,000) per fiscal year. To qualify for reimbursement, employees shall submit written requests to the City Manager and requests shall be considered on a first come, first serve basis each fiscal year.

For Non-Management Employees Only:

When an employee voluntarily and with prior approval of their department head undertakes an education or training program that will improve their skills and abilities in relation to the job, the City will reimburse the employee upon successful completion of the course for the cost of the course or training. The reimbursement will be limited to an aggregate annual cap of $9,000 for all employees, to be distributed in accordance with City procedures. If the books are turned over to the City upon course completion, the City shall reimburse the employee for the costs of the books. Where the class is of unusual value and cannot be scheduled during the employee's off hours, the employee may be excused at no loss of pay.

For purposes of this Section, costs incurred by employees for obtaining and maintaining professional certification or registration shall be reimbursable so long as conditions of approval and course completion are met.

SECTION 8.00 SEPARATION
Upon separation from the City or upon the start of an extended leave from City employment (e.g., military duty, etc.), employees shall receive cash payment on a pro-rated basis for unused Administrative Leave and Holiday Hours. Said payment(s) shall be based upon the employee's accrued Administrative Leave and Holiday hours and base salary rate at the time of separation or upon the start of an extended leave from City employment.

At that time, employees shall also receive full cash payment for any unused accrued vacation and administrative leave. Said payment shall be based upon the employee's base salary rate at time of separation or upon the start of an extended leave from City employment. However, employees shall not receive cash payment for any unused accrued sick or floating holiday leave. All of the aforementioned separation payments, including additional monies owed from negotiated severance packages, shall be paid to employees within 14 calendar days after separation.
3588961.2
City Council/RSA Agenda 257 Tuesday, March 22, 2022
Item 7.b. Desk Item
1 COMPENSATION AND BENEFIT PLAN

FOR UNREPRESENTED EMPLOYEES
Department Heads, Management and Non-Management
Updated March 22, 2022
(Excludes Unrepresented Seasonal and Police Department positions) City Council/RSA Agenda 258 Tuesday, March 22, 2022
Item 7.b. Desk Item
2 Table of Contents
SECTION 1.00 CLASSIFICATIONS......................................................................................... 3 SECTION 2.00 COMPENSATION ............................................................................................ 3 A. LONGEVITY PAY (FOR DEPARTMENT HEADS ONLY): .......................................................... 3 B. VEHICLE ALLOWANCE (FOR DEPARTMENT HEADS ONLY): ................................................. 3 C. SALARY STEP SCHEDULE ..................................................................................................... 3 D. SALARIES ............................................................................................................................. 4 SECTION 3.00 WORK SCHEDULES.................................................................................... 4 SECTION 4.00 LEAVE................................................................................................................ 4 A. ADMINISTRATIVE LEAVE FOR FLSA EXEMPT POSITIONS: .................................................... 4 B. BEREAVEMENT LEAVE:........................................................................................................ 6 C. FAMILY LEAVE: ................................................................................................................... 6 D. HOLIDAYS............................................................................................................................ 7 E. JURY LEAVE: ....................................................................................................................... 8 F. MILITARY LEAVE:................................................................................................................ 8 G. OCCUPATION INJURY LEAVE: .............................................................................................. 8 H. PERSONAL LEAVE:............................................................................................................... 9 I. SICK LEAVE: ........................................................................................................................ 9 J. UNPAID LEAVE OF ABSENCE ................................................................................................ 9 K. VACATION ......................................................................................................................... 10 SECTION 5.00 INSURANCE COVERAGE............................................................................ 11 A. HEALTH AND WELFARE COVERAGE .................................................................................. 11 B. LIFE INSURANCE:............................................................................................................... 12 C. DEFERRED COMPENSATION PLAN (FOR DEPARTMENT HEADS AND MANAGEMENT ONLY) 12 D. DISABILITY INSURANCE:.................................................................................................... 12 SECTION 6.00 RETIREMENT BENEFITS (CALPERS)..................................................... 12 A. CLASSIC MEMBERS:........................................................................................................... 12 B. NEW MEMBERS.................................................................................................................. 13 SECTION 7.00 TUITION REIMBURSEMENT..................................................................... 14 SECTION 8.00 SEPARATION ................................................................................................. 15 City Council/RSA Agenda 259 Tuesday, March 22, 2022
Item 7.b. Desk Item
3 SECTION 1.00 CLASSIFICATIONS
The classifications listed below of unrepresented positions shall be compensated pursuant to the City’s Compensation Plan and the salary schedule as set forth in Attachment A attached hereto and incorporated herein by this reference. The classifications that are participating in the unrepresented management compensation and benefit plan are those listed below:

DEPARTMENT HEADS UNREPRESENTED MANAGEMENT
Assistant City Manager/Chief Financial
Officer
Deputy City Manager
Economic and Community Development
Director
Finance Director
Human Resources Director
Information Technology Director
Community and Recreation Services
Director
Public Works Director
Assistant to the City Manager
Chief Human Resources Officer
Chief Technology Officer
City Clerk
Human Resources Analyst I
Human Resources Analyst II
Human Resources Manager
Supervising Construction Inspector

UNREPRESENTED NON-MANAGEMENT
Human Resources Technician
Administrative Specialist -
Confidential
SECTION 2.00 COMPENSATION
Administration of the Compensation Plan:

The Compensation Plan may provide a flat salary rate or a defined salary range for each management employee classification with a minimum/maximum salary level and one or more intermediate steps.

A. Longevity Pay (For Department Heads Only):

Upon completion of nineteen (19) years of permanent full-time service with the City, employees shall be entitled to longevity pay of 5% of base salary.

B. Vehicle Allowance (For Department Heads only):

Employees shall be provided a vehicle allowance in the amount of Four Hundred Dollars ($400) per month ($184.62 per pay period).

C. Salary Step Schedule
Salary Step increases shall be implemented in the following manner:

City Council/RSA Agenda 260 Tuesday, March 22, 2022
Item 7.b. Desk Item
4 An employee who is eligible for a step increase and whose anniversary date occurs during the first seven (7) days of the pay period shall have his/her step increase implemented on the first day of the pay period during which the anniversary date occurs.

An employee who is eligible for a step increase and whose anniversary date occurs during the last seven (7) days of the pay period shall have his/her step increase implemented on the first day of the following pay period.

D. Salaries
Effective April 4, 2022, the City will provide each Unrepresented Management and Nonmanagement classification with a cost-of-living increase of three percent (3.0%).

Additionally, the City shall provide a one-time lump sum payment equivalent to 3% for the period of January 10, 2022 through April 3, 2022 for these classifications.

Department Head employees will receive a one-time lump sum payment equivalent to the required contributions made toward medical, dental, and vision premiums from January 10, 2022, through April 3, 2022.

For all Unrepresented employees:

Effective the first full pay period following January 1, 2023 the City will provide each unrepresented classification subject to this Compensation and Benefits Plan with a cost-of-living increase of three percent (3.0%).

Effective the first full pay period of January 1, 2024, the City will provide each unrepresented classification subject to this Compensation and Benefits Plan with a cost-of-living increase of three percent (3.0%).

SECTION 3.00 WORK SCHEDULES
The City normally operates on a 9/80 work schedule with employees working eighty (80) hours over nine (9) consecutive business days, Monday through Friday. However, Department Heads, with the City Manager approval, shall structure the work schedules for all management and non-management employees in their department. In structuring schedules, the Department Head shall be governed by the priority to provide quality service to the community. In delivering these services Department Heads have the opportunity to consider flexible scheduling options.

These scheduling opportunities shall remain solely at the City’s discretion.

SECTION 4.00 LEAVE
A. Administrative Leave for FLSA exempt positions:

In lieu of paid overtime, Unrepresented Management employees shall receive seventy (70) hours of Administrative Leave at the beginning of each fiscal year. In addition, those City Council/RSA Agenda 261 Tuesday, March 22, 2022
Item 7.b. Desk Item
5 management employees whose work assignments require additional work effort and/or attendance at evening and/or weekend meetings and/or special events on behalf of the City above and beyond seventy (70) hours per fiscal year shall be eligible for an additional forty (40) hours per fiscal year of Administrative Leave (II) for a total of one hundred ten (110) hours. Additional Administrative Leave is subject to the recommendation of the Department Head and approval by the City Manager.

Department Head employees shall receive one hundred fifty (150) hours of Administrative Leave at the beginning of each fiscal year. In addition, those management employees whose work assignments require additional work effort and/or attendance at evening and/or weekend meetings and/or special events on behalf of the City above and beyond 150 hours per fiscal year shall be eligible for an additional ten (10) hours per fiscal year of Administrative Leave for a total of one hundred (160) hours.

Effective fiscal year 2022-2023, Department Head employees shall receive one hundred sixty (160) hours of Administrative Leave at the beginning of each fiscal year.

The guidelines for making use of Administrative Leave will be as follows:

1. Employees shall submit requests for time off under Administrative Leave in writing directly to their immediate supervisor. The supervisor will approve or deny the request based upon operational needs.

2. Administrative Leave is based on the City’s fiscal year and therefore runs from July 1 to June 30.

3. Administrative Leave for employees hired after July 1 or who leave prior to June 30 of the following year will be prorated.

4. Employees may not use Administrative Leave during their first six months of service. (Exceptions to this rule may be granted by the City Manager).

For Unrepresented Management only: For fiscal year 2021-2022, unused Administrative Leave may be accumulated up to a maximum of two hundred forty (240) hours or may be cashed out as requested by the employee at the end of the fiscal year 2022 only. Said payment shall be based upon the employee's salary rate at the time of the cash out request. For separation provisions concerning Administrative Leave, please see Section

8.00 of this document. The unused 240-hour accumulation does not include the Additional Administrative Leave identified in paragraph below.

The award of Administrative Leave is subject to the recommendation of the Department Head and approval by the City Manager. The first 10 (ten) hours of additional Administrative Leave awarded will be deposited in the same leave bank as regular, recurring Administrative Leave, (70 hours). Additional Administrative Leave awarded above 10 hours will be loaded in a separate Administrative Leave bank and must be used during the fiscal year awarded. These hours are awarded for the prior year’s work and may not be accumulated or cashed out.

City Council/RSA Agenda 262 Tuesday, March 22, 2022
Item 7.b. Desk Item
6 For Department Heads only: For fiscal year 2021-2022, unused Administrative Leave may be carried over to the subsequent fiscal year or may be cashed out as requested by the employee at the end of fiscal year 2022 only. Cash out is up to maximum accruals.

Said payment shall be based upon the employee's salary rate at the time of the cash out request. For separation provisions concerning Administrative Leave, please see Section

10.00 of this document. For fiscal year 2022-23, Department Heads may sell back up to their maximum accrual by December 31, 2022.

For Department Heads and Unrepresented Management: Effective calendar year 2023, and every calendar year thereafter, under the following conditions employees may make an irrevocable election to sell back to the City accrued administrative leave per fiscal year at the employee’s base rate of pay. Unrepresented Management positions may make an irrevocable election to sell back to the City up to seventy (70) hours. Department Head positions may make an irrevocable election to sell back to the City up to one hundred and sixty (160) hours. At the time of distribution, the following must be true:
• The employee is in good standing and meeting performance expectations on the last performance evaluation received.
• The employee must have taken a minimum of eighty (80) hours of vacation, holiday and/or administrative leave in the preceding twelve (12) months.

Requests to sell back administrative leave must be received by Payroll no later than December 31 for the following year’s election.

The City makes no representation as to the tax consequences of an employee cashing out accrued leave. It is the employee’s sole responsibility to address the tax consequences of cashing out accrued leave.

B. Bereavement Leave:

Employees may be granted paid bereavement leave, not to exceed five (5) workdays, upon the occasion of the death of a close relative. The five days may be taken nonconsecutively. Close relatives are defined as mother, father, sister, brother, spouse, child, grandparent, grandchild, mother-in-law, father-in-law, sister-in-law, brother-inlaw, daughter-in-law, son-in-law, stepmother, stepfather, stepchild, domestic partner, or individuals residing in the household for whom the employee has legal guardianship.

In addition, employees may be granted one (1) workday’s paid bereavement leave to attend the funeral of a close relative not in the employee’s immediate family (for example, aunts, uncles, nephews, nieces, or spouse/domestic partner's close relatives as defined above).

C. Family Leave:

The City shall comply with all provisions of the Federal Family Medical Leave Act (FMLA) and the California Family Rights Act (CFRA), including their respective implementing regulations. However, Administrative Policy Memorandum (APM) #61 City Council/RSA Agenda 263 Tuesday, March 22, 2022
Item 7.b. Desk Item
7 shall provide the overriding basis and criteria for all decisions and matters relating to Family Leave.

D. Holidays
The following are holidays:

New Year’s Day January 1
Martin Luther King, Jr.’s Birthday 3
rd Monday in January
President’s Day 3
rd Monday in February
Memorial Day Last Monday in May
Independence Day July 4
Labor Day 1
st Monday in September
Veteran’s Day November 11
Thanksgiving Day 4
th Thursday in November
Friday after Thanksgiving 4
th Friday in November
Christmas Eve December 24*
Christmas Day December 25
In the event a holiday falls on a normal day off which is either a Saturday or the first day off of the two normal days off, the employee shall observe the previous workday as the holiday. In the event a designated holiday falls upon a normal day off which is either a Sunday or the second day of the two normal days off, the employee shall observe the following workday as the holiday. Should the holiday fall on a closed (non-working) Friday, eight (8) additional floating holiday hours shall be added to each employee's floating holiday bank.
*Christmas Eve Observed
If Christmas Day falls on a Saturday, the Christmas Day holiday is observed on Friday; the Christmas Eve holiday is then observed on Thursday. If Christmas Day falls on a Sunday, the Christmas Day holiday is observed on Monday; there is no Christmas Eve holiday observance. When Christmas Day falls on Monday, there is no Christmas Eve holiday observance.

City offices shall be closed between Christmas Day and New Year's Day.

For Non-Management Employees Only:

Prior approval for holiday work must be obtained from the City Manager, except in an emergency situation where said approval cannot be obtained. Work performed on a holiday shall be compensated at time and one-half the straight time hourly rate, in addition to regular salary.

Floating Holidays
City Council/RSA Agenda 264 Tuesday, March 22, 2022
Item 7.b. Desk Item
8 Each employee shall also be granted twenty-seven (27) additional Floating Holiday hours per fiscal year, which may be scheduled for use upon approval. The Floating Holiday hours, if not used within the fiscal year earned, may not be accumulated.

In the event a holiday falls on a normal day off which is either a Saturday or the first day off of the two normal days off, the employee shall observe the previous workday as the holiday. In the event a designated holiday falls upon a normal day off which is either a Sunday or the second day of the two normal days off, the employee shall observe the following workday as the holiday.

Should the holiday fall on a closed (non-working) Friday, eight (8) additional floating holiday hours shall be added to each employee's floating holiday bank in the pay period immediately before the holiday.

E. Jury Leave:

An employee summoned to jury duty or summoned as a witness in a City-related matter shall not suffer a loss of pay or other benefits by reason of said service. Employees are required to submit verification of jury leave attendance to their supervisor promptly upon returning to work. The juror badge attached to the jury summons notice does not qualify as verification of attendance.

F. Military Leave:

Military Leave shall be granted in accordance with the provisions of State law. All employees entitled to Military Leave shall give their Department Head an opportunity within the limits of military requirements to determine when such leave shall be taken.

G. Occupation Injury Leave:

For employee injury or disability falling within the provisions of the State Worker's Compensation Act, additional compensation equal to the difference between said employee’s regular pay and their disability compensation allowance shall be paid for a total not to exceed one-hundred seventy-six (176) hours or equal to one-half the amount of the employee's accumulated Sick Leave balance as of July 1 for each fiscal year, whichever is greater.

Included in the calculation of the one-hundred seventy-six (176) hours granted will be compensation for any waiting period. Following exhaustion of this benefit, employees may utilize accumulated Sick Leave to the extent available to make up the difference between said employee’s regular pay and their disability compensation allowance.

City Council/RSA Agenda 265 Tuesday, March 22, 2022
Item 7.b. Desk Item
9 H. Personal Leave:

The City shall allow twenty (20) hours per fiscal year of accumulated Sick Leave to be used for conducting personal or emergency business that cannot be conducted outside regular working hours. An additional eight (8) hours will be allowed for those employees who have an accumulated Sick Leave balance as of July 1 of each fiscal year of one hundred (100) hours or more for a total of twenty-eight (28) hours per fiscal year. An additional twelve (12) hours will be allowed for those employees who have accumulated a Sick Leave balance as of July 1 of each fiscal year of two hundred (200) hours or more, for a maximum total of forty (40) hours per fiscal year. Personal Leave shall not be used as a substitute for, or in conjunction with any other type of leave. The employee must request Personal Leave at least 48 hours (2 days) prior to time of utilization. In cases of need, the immediate supervisor may waive the 48-hour notification procedure.

I. Sick Leave:

Employees shall earn three and 69/100 (3.69) hours per pay period of Sick Leave without limit on accumulation. Employees absent without pay for more than thirty-six (36) hours during a two week pay period shall not earn sick leave benefits for that pay period. Sick leave shall be taken in periods of no less than one-quarter of an hour.

Sick leave may be utilized due to the employee's personal sickness, injury, maternity leave, sickness, or injury in the immediate family, in accordance with the provisions outlined in Administrative Policy Memorandum (APM) #21, Administration of Sick Leave, which shall serve as the operating guideline for both employees and management.

Employees shall be allowed to convert sixty (60) hours of unused Sick Leave per fiscal year to their Vacation Time Bank provided the employee maintains a balance of fourhundred eighty (480) hours of Sick Leave. Conversion of Sick Leave to Vacation Leave is on an hour-for-hour basis and may only take place at the end of each fiscal year.

J. Unpaid leave of Absence
The City Manager may grant, a regular employee other than a probationary employee, a Leave of Absence without pay for a maximum period of one (1) year. The City Manager may grant an extension of an approved Leave of Absence without pay for an additional period, said extension not to exceed one additional (1) year. An Unpaid Leave of Absence may be granted if it does not have an unduly adverse impact on the service of the City, the purpose of the leave would be beneficial to the City, or it would meet some pressing and extreme need of the employee. Whenever granted, such leave requests shall be in writing and signed by the City Manager.

City Council/RSA Agenda 266 Tuesday, March 22, 2022
Item 7.b. Desk Item
10 Upon expiration of the Unpaid Leave of Absence, the employee will be reinstated to the position held at the time leave was granted. Failure of the employee to report promptly at the expiration of the Unpaid Leave of Absence, or within a reasonable time after notice to return to duty shall terminate their right to be reinstated. Unpaid Leaves of Absence shall not be taken during the first six (6) months of City employment.

Employee is fully responsible for all benefit premiums while on approved Unpaid Leave of Absence.

K. Vacation
Employees shall accrue vacation benefits annually in accordance with the following schedule and provisions:

Years of Service Annual Accrual
Rate
Non-Mgmt. Max
Accrual
Mgmt. Max
Accrual
Dept Head Max
Accrual
0-3 Years 80 160 320 560
4 – 8 Years 120 240 400 560
9-12Years 140 280 440 560
13-15Years 160 320 480 560
16+Years 200 400 560 560
 Non-Management employees shall be limited to accruing two times their maximum number of annual accrual rate.
 Management employees shall be limited to accruing two times their maximum number of annual accrual rate plus 160 hours per year.
 Department Heads may accrue up to 560 hours.

The City Manager shall have the authority to provide credit for years of service with a prior agency for newly hired Department Heads for purposes of establishing the vacation accrual rate per City Council Resolution 5793-21.

For calendar year 2022, Management and Non-Management employees may receive annual cash payment for up to eighty (80) hours of Vacation Leave provided an 80-hour balance vacation balance is maintained after cash out. Department Heads may cash out any number of hours provided an 80-hour balance is maintained after cash out.

City Council/RSA Agenda 267 Tuesday, March 22, 2022
Item 7.b. Desk Item
11 Effective calendar year 2023, under the following conditions employees may make an irrevocable election to sell back to the City accrued vacation leave per calendar year at the employee’s base rate of pay. Management and Non-Management may make an irrevocable election to sell back up to eighty (80) hours and Department Heads may make an irrevocable election to sell back to the City up to their annual accrual.

At the time of distribution, the following must be true:
 The employee is in good standing and meeting performance expectations on the last performance evaluation received.
 The employee must have taken a minimum of eighty (80) hours of vacation, holiday and/or administrative leave in the preceding twelve (12) months.

Requests to sell back vacation leave must be received by Payroll no later than December 31 for the following year’s election.

The City makes no representation as to the tax consequences of an employee cashing out accrued leave. It is the employee’s sole responsibility to address the tax consequences of cashing out accrued leave.

Employees shall receive cash payment for all unused excess Vacation Leave at their current salary rate at the time of separation or upon the start of an extended leave from City employment.

SECTION 5.00 INSURANCE COVERAGE
A. Health and Welfare Coverage
The City will contribute up to Two Thousand Dollars ($2,000) per month toward the medical, dental and vision premiums for all unrepresented department management and non-management employees, regardless of the plan in which they are enrolled.

This monthly contribution includes the City's basic employer contribution for health premiums under PEMCHA which City Council Resolution No. 2279-02 set as the minimum required under PEMCHA. Employees shall pay premium costs exceeding the City's maximum contribution amount.

Employees who are covered for medical benefits through a spouse or a domestic partner may elect not to enroll in a City group medical plan and are not eligible for the City's contribution towards medical, dental and vision premiums as identified in this Section.

Employees electing this option shall provide proof of medical coverage to the City. In lieu of medical insurance premiums, the City will contribute the amount of $300 per City Council/RSA Agenda 268 Tuesday, March 22, 2022
Item 7.b. Desk Item
12 month to the employee’s deferred compensation account, or pay employees $300 per month in cash, at the employee's option.

The City agrees to advance the full cost of health premiums (medical, dental, vision, and LTD coverage) when an employee is on leave without pay for medical reasons. Amounts advanced shall be limited to three (3) months beyond any FMLA benefits and shall be due and payable to the City within six (6) months of return to work or upon termination.

Retirees may elect to continue coverage with the group medical and dental plans at retiree’s cost.

B. Life Insurance:

The City shall provide life insurance coverage for unrepresented employees as follows:
$100,000 for life insurance, and $100,000 for accidental death or dismemberment.

Supplemental life insurance is also available, the cost of which shall be borne by the employee.

C. Deferred Compensation Plan (for Department Heads and Management Only) The City shall contribute one hundred dollars ($100.00) per month ($46.15 per pay period) to a pre-tax 401(a) Deferred Compensation Plan. The specific groupings/divisions of management classifications shall be defined at plan inception and shall be based upon criteria stated in the Deferred Compensation Plan. The option to opt out is currently irreversible and can take place only when an employee is hired/promoted to a management-level classification. If an employee opts out of plan entirely, he/she will not receive said benefit.

All details of the Deferred Compensation Plan will be consistent with the requirements of the plan provider.

D. Disability Insurance:

Both Short-Term Disability (STD) and Long-Term Disability (LTD) Insurance programs are available. Participation in the Short-Term and Long-Term Disability Plans is not optional.

SECTION 6.00 RETIREMENT BENEFITS (CalPERS)
A. Classic Members:

Consistent with its historical practice, the City pays the full share of the employee contributions to CalPERS and reports the payments as Employer Paid Member Contributions (EPMC) on behalf of the CalPERS classic members. For classic members receiving benefits based on the 2.5% at 55 formula, these payments are equal to 8% of the member employees' reportable income. For classic members receiving payments City Council/RSA Agenda 269 Tuesday, March 22, 2022
Item 7.b. Desk Item
13 based on the 2% at 60 formula, these payments are equal to 7% of the member employees’ reportable income.

2.5% at 55: Classic Members hired prior to November 24, 2010 are provided benefits under the CalPERS 2.5% at 55 retirement formula, with final compensation calculated based on the employee's highest earning year. Employee cost sharing will be 11%. 2% at 60: Employees hired on or after November 24, 2010 are provided benefits under the CalPERS 2% at 60 retirement formula. Final compensation for these employees will be calculated based on the highest three-year average earnings. Employee cost sharing will be 10%.

B. New Members
CalPERS new members hired by the City on or after January 1, 2013 are provided pension benefits using a 2.0% at 62 formula. New members are responsible for contributing to CalPERS as required by CalPERS law.

In addition to their required employee contribution, new members of management are required to contribute 3% of the City’s contribution and new members of nonmanagement are required to contribute 1.5% of the City’s contribution. As of the time this compensation plan is adopted, the total employee contribution is 10% for Department Heads and Management employees and 8.5% for Non-Management employees. This contribution will increase if the employee contribution rate for new members is increased above the current rate of 7%.

Specific Features of CalPERS Benefits
Specific features of the CalPERS benefits applicable to all employees hired prior to January 1, 2011 include:

Indexed Level of the 1959 Survivor Benefit as provided in Section 21574.5.

One-Year Fiscal Compensation as provided in Section 20042.

Post-Retirement Survivor Allowance as provided in Sections 21624, 21626 and 21628.

Benefits Payable to Surviving Spouse upon the death of an employee who qualified for retirement shall continue in full should the Spouse remarry as provided in Section 21551.

Continuation of Surviving Spouse-Benefits upon remarriage as provided in Section 21635.

City Council/RSA Agenda 270 Tuesday, March 22, 2022
Item 7.b. Desk Item
14 Military Credit for time served in active military or merchant marine service prior to employment with the City as Public Service as provided in Section 21024, provided such cost of this enhancement be fully borne by the employee.

Sick Leave Credit as provided in Section 20965 for any unused sick leave days will be converted to service credit at the rate of 0.004 years of service for each day of sick leave provided there is less than 120 days between the member's separation date and retirement date.

Non-Industrial Disability pursuant to Section 21427, providing an annuity equal to 30% of final compensation with five years of service increasing 1% for each year in excess of five years to a maximum of 50% of final compensation.

One-time lump sum payout of $500 upon the death of a retiree paid to the retiree's survivor or retiree's estate pursuant to Section 21620.

COLA Adjustment of 2% beginning after the second calendar year after the year of retirement and each year thereafter provided the adjustment is not greater than the change in CPI-Section 21329.

Two Years Additional Service Credit to employees who retire within a specified period provided in Government Code Section 20903.

Members not covered by Social Security upon retirement shall receive a monthly allowance of $350, $700, or $840 depending on the number of eligible survivors as defined in Section 21573.

SECTION 7.00 TUITION REIMBURSEMENT
For Management Employees Only:

When a management employee voluntarily, and with prior approval of the City Manager, undertakes any education or training program that will improve their skills and abilities in relation to the job, the City will reimburse the employee upon successful completion of the course for the cost of the course or training to a maximum of three thousand dollars ($3,000) per fiscal year, subject to an annual cap of nine thousand dollars ($9,000) per fiscal year on total educational reimbursements paid by the City for management employees where the employee identifies the total cost of the course up front. Where the class is of unusual value and cannot be scheduled during the employee's off hours, the employee may be excused at no loss of pay.

Employees may be reimbursed for more than one course per fiscal year or over the life of their employment with the City if total cost of all reimbursements does not exceed three thousand dollars ($3,000) per fiscal year. To qualify for reimbursement, employees shall submit written City Council/RSA Agenda 271 Tuesday, March 22, 2022
Item 7.b. Desk Item
15 requests to the City Manager and requests shall be considered on a first come, first serve basis each fiscal year.

For Non-Management Employees Only:

When an employee voluntarily and with prior approval of their department head undertakes an education or training program that will improve their skills and abilities in relation to the job, the City will reimburse the employee upon successful completion of the course for the cost of the course or training. The reimbursement will be limited to an aggregate annual cap of $9,000 for all employees, to be distributed in accordance with City procedures. If the books are turned over to the City upon course completion, the City shall reimburse the employee for the costs of the books. Where the class is of unusual value and cannot be scheduled during the employee's off hours, the employee may be excused at no loss of pay.

For purposes of this Section, costs incurred by employees for obtaining and maintaining professional certification or registration shall be reimbursable so long as conditions of approval and course completion are met.

SECTION 8.00 SEPARATION
Upon separation from the City or upon the start of an extended leave from City employment (e.g., military duty, etc.), employees shall receive cash payment on a pro-rated basis for unused Administrative Leave and Holiday Hours. Said payment(s) shall be based upon the employee's accrued Administrative Leave and Holiday hours and base salary rate at the time of separation or upon the start of an extended leave from City employment.

At that time, employees shall also receive full cash payment for any unused accrued vacation and administrative leave. Said payment shall be based upon the employee's base salary rate at time of separation or upon the start of an extended leave from City employment. However, employees shall not receive cash payment for any unused accrued sick or floating holiday leave. All of the aforementioned separation payments, including additional monies owed from negotiated severance packages, shall be paid to employees within 14 calendar days after separation. 3588961.2
City Council/RSA Agenda 272 Tuesday, March 22, 2022
Item 7.b. Desk Item
DATE: 03/22/2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: JOAN MALLOY, CITY MANAGER
SUBJECT: ADOPT A RESOLUTION APPROVING AN AMENDMENT TO

THE COMPENSATION AND BENEFIT PLAN FOR

UNREPRESENTED EMPLOYEES AND APPROVING AN
AMENDMENT TO THE CITY’S SALARY SCHEDULE IN

CONFORMANCE WITH CALIFORNIA CODE OF
REGULATIONS, TITLE 2, SECTION 570.5
Staff recommends that the City Council approve an amendment to the City’s Compensation and Benefit Plan for Unrepresented Employees (the “Pan”) and a concurrent amendment to the City’s Salary Schedule, effective April 4, 2022. Employees subject to the Plan include Department Heads, Management, and Non-Management positions.

BACKGROUND
The unrepresented Department Head positions subject to the Plan include: Assistant City Manager/Chief Financial Officer, Deputy City Manager, Community and Recreation Services Director, Economic and Development Director, Finance Director, Human Resources Director, Information Technology Director, Community, and the Public Works Director. The unrepresented Management positions subject to the Plan include: Assistant to the City Manager, Chief Human Resources Officer, Chief Technology Officer, City Clerk, Human Resources Analyst I, Human Resources Analyst II, Human Resources Manager, and Supervising Construction Inspector. The unrepresented Non-Management positions subject to the Plan include: Administrative Specialist-Confidential and Human Resources Technician.

The proposed resolution provides that any revisions will not include any adjustment to the salary or benefits for the City Manager, who is subject to a separate employment agreement and will be considered separately. Additionally, the Chief of Police is subject to a separate employment agreement that identifies applicable benefits and compensation for that position.

The changes to the Plan seek to provide clarification and consistency among benefit offerings for all employees citywide. In addition, the changes eliminate compaction and provide growth opportunities within the positions.

STRATEGIC PLAN ALIGNMENT
This action supports Strategy 8 of Goal B, Governance and Organization Effectiveness, by ensuring salaries are competitive in order to recruit, attract and retain talented employees.

City Council/RSA Agenda 273 Tuesday, March 22, 2022
Item 7.b. Desk Item

DISCUSSION
Below is a summary of the main revisions to the Plan. As noted above, these revisions will not apply to the City Manager.

Cost of Living Adjustments
 Department Head positions: Provides cost of living adjustments of o 3% effective the first full pay period following January 1, 2023; and o 3% effective the first full pay period following January 1, 2024. o Additionally, employees will receive a one-time lump sum payment equivalent to the required contributions made toward medical, dental, and vision premiums from January 10, 2022, through April 3, 2022.  Management and Non-Management positions: Provides cost of living adjustments of:
o 3% effective April 4, 2022
o 3% effective the first full pay period following January 1, 2023; and o 3% effective the first full pay period following January 1, 2024. o Additionally, employees will receive a one-time lump sum payment equivalent to 3% for the period of January 10, 2022, through April 3, 2022.

Salaries:
 Align CRS Director, ECD Director, HR Director, and Information Technology Director salaries with Finance Director monthly salary range of $15,976 to 19,154.

Market Equity Adjustments:

Pursuant to the Strategic Plan adopted by the City in FY 2020-21, the City is initiating the process to retain consultant services for the purposes of conducting a total compensation and benefits study for all City classifications (except those in Police Officer Association and Police Management Association) to make a determination regarding equity adjustments.

Health and Welfare
Department Heads: Removes the required employee contribution of $709.50 per month toward medical, dental, and vision monthly premiums before accessing the City’s contribution. Adds cash in lieu of health plan coverage pay of three hundred dollars ($300.00) per month to be consistent with all other bargaining units.

Vacation Accrual
Department Heads: Increases the vacation accrual rate for employees at all tiers of service to be consistent with all other bargaining units.

Management and Non-management: Changes the years of service for Tier 2 from 4-9 years of service to 4-8 years of service and changes the years of service for Tier 3 from 10-12 years of service to 9-12 years of service to be consistent with all other bargaining units.

City Council/RSA Agenda 274 Tuesday, March 22, 2022
Item 7.b. Desk Item
Vacation and Administrative Leave Sellback
Revises vacation and administrative leave sellback language and maximum limit of hours to be compliant with IRS constructive receipt as applicable.

Floating Holidays
Updates language to meet intent of “use it or lose it.” Floating holidays must be used within the fiscal year that they are awarded. Updates the pay period in which additional floating holidays are loaded in employee’s leave balance when a holiday falls on a dark non-working Friday.

Salary Step Schedule
Adds language to define schedule of salary steps consistent with other bargaining units.

FISCAL IMPACT
The estimated cost of this Compensation and Benefits Plan is projected to be $83,741 annually. over the next three years.

RECOMMENDATION
Staff recommends that the City Council approve the attached resolution to approve an amendment to the Plan and Salary Schedule, effective April 4, 2022, for the applicable positions.

Prepared by:

Joan Malloy, City Manager
Submitted by:

Joan Malloy, City Manager
ATTACHMENTS:

Resolution
Salary Schedule
Compensation and Benefits Plan
City Council/RSA Agenda 275 Tuesday, March 22, 2022
Unrepresented Department Head,
Management and Non-Management
Compensation and Benefits
Item 7.b.

City Council March 22, 2022
City Council/RSA Agenda 276 Tuesday, March 22, 2022
2 Unrepresented Management and Non-management:

Assistant to City Manager, Supervising Construction Inspector, City Clerk, Human Resources Manager, Human Resources Analyst II,Human Resources Analyst I, Human Resources Technician, and Administrative Specialist – Confidential
Department Head Positions:

Deputy City Manager, Assistant City Manager/CFO, CRS Director, ECD Director, Finance Director, Human Resources Director, Information Technology Director, Public Works Director Unrepresented Compensation and Benefits Plan Background City Council/RSA Agenda 277 Tuesday, March 22, 2022
3 Strategic Plan Alignment
Strategy 8 of Goal B, Governance and Organization Effectiveness“Provide competitive salary and benefits to support recruitment and retain talented staff” • Providing clarification and consistency among benefit offerings for all employees citywide.
• Consistent COLA
Unrepresented Compensation and Benefits Plan Background City Council/RSA Agenda 278 Tuesday, March 22, 2022
4 1. Term and COLA: 3-year term 3%, 3%. 3%
effective April 4, 2022; • Lump sum payment equivalent to 3% for January 10, 2022 to April 3, 2022

2. Vacation Accrual: Updated for consistency3. Vacation and Administrative Leave Sellback: Updated for consistency and compliance

4. Floating Holidays: Updated language for
consistency and intent

5. Salary Step Schedule: Updated language for
consistency
Unrepresented Management and Non-Management Changes
City Council/RSA Agenda 279 Tuesday, March 22, 2022
5 1. Term and Salary: 3-year, COLA 0%, 3,% 3%
• Removed Medical contribution of $709.50/month • Effective April 4, 2022; • One time lump sum equivalent of medical contributions from January 10, 2022 to April 3, 2022

2. Provide Cash-in-lieu: $300/month 3. Salary Range: Aligned salaries to same schedule* 4. Administrative Leave: Updated to one leave bank effective July 2022;

5. Vacation Accrual and Sellback: Updated for consistency and compliance; updated amounts.

6. Floating Holidays: Updated language for consistency and intent

7. Salary Step Schedule: Updated language for consistency *no change to PW Director Department Head Positions Changes
City Council/RSA Agenda 280 Tuesday, March 22, 2022
6 Fiscal ImpactThe estimated cost of this Compensation and Benefits Plan is projected to be $83,741 annually over the next three years.Recommendation Adopt a resolution to approve an amendment to the Compensation and Benefit Plan and Salary Schedule, effective April 4, 2022, for the Unrepresented Positions.

Department Head Positions
City Council/RSA Agenda 281 Tuesday, March 22, 2022
Agenda Item
DATE: 3/22/2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: JACKIE ACOSTA, FINANCE DIRECTOR
SUBJECT: REPORT FROM THE SALES TAX & UTILITY USERS’ TAX OVERSIGHT

COMMITTEE REGARDING THE EXPENDITURE OF THE FUNDS

GENERATED FROM THESE VOTER-APPROVED TAX MEASURES
The Sales Tax & Utility Users’ Tax Oversight Committee (ST&UUTOC) is tasked with meeting at least twice annually to review revenues and expenditures of the Sales Tax and Utility Users’ Tax to ensure that funds are being used to maintain service levels as determined by the City Council’s adopted budget and to report its findings annually to the City Council. The committee has met four times since the start of the fiscal year and at its February 14, 2022 meeting, the committee reviewed the UUT audit report and reviewed staff’s report on the sales tax and UUT revenues received for FY 2020-2021 and the expenditure of those revenues. The finding of the committee is that those revenues were accounted for in the City’s General Fund as intended to maintain service levels as determined by the City Council’s adopted budget.

STRATEGIC PLAN ALIGNMENT
The action is not an identified strategy in the Strategic Plan.

BACKGROUND
Resolution No. 5735-21, adopted on March 23, 2021, which created the Sales Tax & Utility Users’ Tax Oversight Committee (ST&UUTOC) (Exhibit No. 1), states that the committee is tasked with meeting at least twice annually to review revenues and expenditures of the sales tax and the utility users’ tax to ensure that the funds are being used to maintain service levels as determined by the City Council’s adopted budget and reporting its findings annually to the City Council. At the ST&UUTOC committee meeting on February 14, 2022, the committee reviewed and discussed the UUT audit and the FY 2020-2021 sales tax and utility users’ tax revenues and expenditures and found that the Measure AA sales tax and Measure WW utility users’ tax revenues were accounted for in the City’s General Fund as intended and in accordance with the City’s budget.

City Council/RSA Agenda 282 Tuesday, March 22, 2022

DISCUSSION
This report is being presented to the City Council in order for the Sales Tax & Utility Users’ Tax Oversight Committee to meet its requirement to annually report its findings on its review of the revenues received from these tax measures and the subsequent expenditure of those revenues. The committee has met four times since the start of the fiscal year and at its February 14, 2022 meeting, the committee reviewed the UUT audit report and reviewed staff’s report on the sales tax and UUT revenues received for FY 2020-2021 and the expenditure of those revenues. The finding of the committee is that those revenues were accounted for in the City’s General Fund as intended to maintain service levels as determined by the City Council’s adopted budget.

FISCAL IMPACT
None

RECOMMENDATION
Staff recommends that the City Council accept the finding of the Sales Tax & Utility Users’ Tax Oversight Committee that the Measure AA sales tax and the Measure WW utility users’ tax revenues received in FY 2020-2021 were accounted for in the City’s General Fund as intended to maintain service levels as determined by the City Council’s adopted budget.

Prepared by:

Jackie Acosta, Finance Director
Submitted by:

Jackie Acosta, Finance Director
ATTACHMENTS:

Description Type
Resolution No. 5735-21 Resolution
Staff Report to ST&UUTOC- UUTAudit Resolution
Staff Report to ST&UUTOC-Annual Report on ST& UUT
revenues &expenditures
Resolution
City Council/RSA Agenda 283 Tuesday, March 22, 2022
RESOLUTION NO. 5735-21

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY FORMING THE SALES TAX AND UTILITY USERS’ TAX OVERSIGHT COMMITTEE AND APPROVING

THE MAYOR'S APPOINTMENTS OF RAY GONZALEZ, JR, ESTRELITA MUNSAYAC,

DANIEL RIVERA, KASHMIR SINGH SHAHI AND ROBERT SINGER TO THE COMMITTEE WHEREAS, the City has an existing Measure AA Sales Tax Oversight Committee required by Union City Municipal Code Section 3.22.140; and
WHEREAS, in November 2020, voters approved Measure WW, a Utility Users’ Tax (Union City Municipal Code Chapter 3.28; and
WHEREAS, Union City Municipal Code Section 3.28.230 requires that the City establish a fivemember independent citizens’ oversight committee; and WHEREAS, the City of Union City desires to form the Sales Tax and Utility Users’ Tax Oversight Committee, one five-member independent citizens’ oversight committee, to comply with the requirements of Measure AA and Measure WW; and
WHEREAS, pursuant to resolution, the Council dissolved and disbanded the existing Measure AA Sales Tax Oversight Committee; and
WHEREAS, pursuant to Union City Municipal Code Section 2.20.030 and State law, committee members are appointed by the Mayor with the approval of the City Council; and WHEREAS, Mayor Carol Dutra-Vernaci seeks to appoint Ray Gonzalez, Jr, Estrelita Munsayac, Daniel Rivera, Kashmir Shahi Singh, and Robert Singer to the Sales Tax and Utility Users’ Tax Oversight Committee.

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

1. The City Council hereby establishes the Sales Tax and Utility Users’ Tax Oversight Committee consisting of five members of the public.

2. The Sales Tax and Utility Users’ Tax Oversight Committee shall perform all functions necessary to comply with the requirements of Union City Municipal Code Sections 3.22.140 and 3.28.230 and shall meet a minimum of twice annually to review revenues and expenditures of the Sales Tax and the Utility Users’ Tax to ensure that funds are being used to maintain service levels as determined by the City Council’s adopted budget.

3. The Sales Tax and Utility Users’ Tax Oversight Committee shall report its findings annually to the City Council.

4. Members of the Sales Tax and Utility Users’ Tax Oversight Committee shall serve a term of two years.

5. The City Council approves of Mayor Carol Dutra-Vernaci’s appointment of the following individuals to the Sales Tax and Utility Users’ Tax Oversight Committee: Ray Gonzalez, Jr, Estrelita Munsayac, Daniel Rivera, Kashmir Shahi Singh and Robert Singer.

Exhibit No. 1
City Council/RSA Agenda 284 Tuesday, March 22, 2022
Resolution No. 5735-21

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 23rd day of March 2021, by the following vote:

AYES: Councilmembers Duncan, Singh, Vice Mayor Gacoscos, Mayor Dutra-Vernaci NOES: None
ABSENT: Councilmember Patiño
ABSTAIN: None
City Council/RSA Agenda 285 Tuesday, March 22, 2022

ST&UUTOC
Agenda Item
New Business (a)
DATE:

TO:

FROM:

FEBRUARY 14, 2022

HONORABLE CHAIR AND MEMBERS OF THE ST&UUTOC

JACKIE ACOSTA, FINANCE DIRECTOR
SUBJECT: UTILITY USERS’ TAX AUDIT FOR THE FISCAL YEAR ENDED JUNE 30, 2021

EXECUTIVE SUMMARY
The City’s independent auditors, Badawi & Associates, have performed an audit of the City’s Utility Users’ Tax (UUT) revenues and expenditures for the fiscal year ending June 30, 2021, and have issued an unqualified opinion on the UUT Schedule of Revenues and Expenditures for the year ended June 30, 2021. Staff recommends that the ST&UUTOC members review and discuss the audit report (Exhibit No. 1) and then receive and file the audit report.

BACKGROUND
On November 3, 2020, the voters of the City of Union City approved the establishment of a Utility Users’ Tax of 5% on the following utilities: electricity, gas, telecommunications and video services. Ordinance No. 881-20, the ordinance enacting the Utility Users’ Tax, specifically states, “all funds from this measure are subject to strict fiscal accountability protections, including an independent citizens’ oversight committee, mandatory financial audits, and yearly reports to the community to ensure that all funds are spent properly.” Therefore, to ensure compliance with this Ordinance, the City contracted with our independent auditor, Badawi & Associates, to conduct an audit of the UUT revenues and expenditures received and expended in Fiscal Year (FY) 2020-2021.

DISCUSSION
As required by Ordinance No. 881-20 (Exhibit No. 2), Utility Users’ Tax (UUT) revenues and expenditures shall be audited annually. That audit has been City Council/RSA Agenda 286 Tuesday, March 22, 2022
completed by the City’s independent auditors, Badawi & Associates. The auditors have issued an “unqualified opinion” which means that in their opinion, the Schedule of Revenues and Expenditures presents fairly, in all material respects, the revenues and expenditures of the UUT for the year ended June 30, 2021, in conformity with accounting principles generally accepted in the United States of America.

As shown on the Schedule of Revenues and Expenditures (page 3 of Exhibit No. 1), the City received $1,026,166 in Utility Users’ Tax for the fiscal year ending June 30, 2021. However, it should be noted that the monies received in FY 2020- 2021 only included revenues received for the last quarter of the fiscal year as the UUT was not effective until April 1, 2021. The Schedule of Revenues and Expenditures also shows that in FY 2020-2021, the City only expended $23,268 of the UUT revenues collected. The remaining, unspent revenues of $1,002,898 will expended in FY 2021-2022.

FISCAL IMPACT:

There is no fiscal impact associated with this item.

RECOMMENDATION:

Staff recommends that the ST&UUTOC take the following actions:

1. Review and discuss the audit.

2. Receive and file the audit.

ATTACHMENTS:

Exhibit No. 1 – UUT Audit Report
Exhibit No. 2 – Ordinance No. 881-20
City Council/RSA Agenda 287 Tuesday, March 22, 2022
City of
Union City
Utility Users Tax
Union City, California
Schedule of Revenues and Expenditures
and Independent Auditor’s Report
For the year ended June 30, 2021
Exhibit No. 1
City Council/RSA Agenda 288 Tuesday, March 22, 2022
City of Union City
Utility Users Tax
Schedule of Revenues and Expenditures
For the year ended June 30, 2021
Table of Contents
Page
Independent Auditor’s Report .................................................................................................................................1 Schedule of Revenues and Expenditures ...............................................................................................................3 Notes to Schedule .......................................................................................................................................................4 City Council/RSA Agenda 289 Tuesday, March 22, 2022
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Union City
Union City, California
Report on Schedule of Revenues and Expenditures
We have audited the accompanying schedule of revenues and expenditures of the Utility Users Tax (UUT) of the City of Union City, as of and for the year ended June 30, 2021, and the related notes to the schedule as listed in the table of contents.

Management's Responsibility for the Schedule of Revenues and Expenditures Management is responsible for the preparation and fair presentation of the schedule of revenues and expenditures in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation of the schedule of revenues and expenditures that is free from material misstatement, whether due to fraud or error.

Auditor's Responsibility
Our responsibility is to express an opinion on the schedule of revenues and expenditures based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the schedule of revenues and expenditures is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the schedule of revenues and expenditures. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the schedule of revenues and expenditures, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the City's preparation of the schedule of revenues and expenditures in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing such an opinion on the effectiveness of the City's internal control. Accordingly, we express no such opinion.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall schedule of revenues and expenditures presentation.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

City Council/RSA Agenda 290 Tuesday, March 22, 2022
To the Honorable Mayor and Members of the City Council
of the City of Union City
Union City, California

2 Opinion
In our opinion, the schedule of revenues and expenditures referred to above presents fairly in all material respects the revenues and expenditures of the UUT for the year ended June 30, 2021, in conformity with accounting principles generally accepted in the United States of America.

Emphasis of Matter
As discussed in Note 1, the schedule of revenues and expenditures presents only the UUT and does not purport to, and does not, present fairly the financial position of the City as of June 30, 2021, and the changes in its financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Badawi & Associates, CPAs
Berkeley, California
January 31, 2022
City Council/RSA Agenda 291 Tuesday, March 22, 2022
City of Union City
Utility Users Tax
Schedule of Revenues and Expenditures
Total
REVENUES:

Utility Users Tax - Electric $ 601,957
Utility Users Tax - Gas 143,219
Utility Users Tax - Telecom 155,175
Utility Users Tax - Video 125,815
Total revenues 1,026,166
EXPENDITURES:

Finance:

Professional and consulting services 20,342
Printing and reproduction 1,399
Postage 1,527
Total expenditures 23,268
Revenues over expenditures 1,002,898
UUT Unspent Funds - July 1, 2020 -
UUT Unspent Funds - June 30, 2021 $ 1,002,898
See accompanying Notes to Schedule of Revenues and Expenditures.

For the Year Ended June 30, 2021
City Council/RSA Agenda 292 Tuesday, March 22, 2022 3
City of Union City
Utility Users Tax
Notes to Schedule of Revenues and Expenditures
For the year ended June 30, 2021
4 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
All transactions of the Utility Users Tax (UUT) are reported in the General Fund (Fund) of the City of Union City, California (City). A separate set of accounts has been established by the City to account for revenues earned and expenditures incurred according to UUT. The accompanying schedule of revenues and expenditures is for the UUT only and is not intended to fairly present the financial position of the City.

B. Basis of Accounting and Measurement Focus
The accompanying schedule of revenues and expenditures is prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred.

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using the current financial resources measurement focus, wherein only current assets and current liabilities generally are included on the balance sheet.

Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.

C. Fund Accounting
The operations of the UUT are accounted for as part of the General Fund. Funds are separate accounting entities with a set of self-balancing accounts which comprise their assets, liabilities, fund equity, revenues, and expenditures.

D. Revenues and Receivables
During the course of normal operations, the General Fund carries a receivable balance for UUT. UUT revenues are subject to accrual and recorded based on the earning period related to the taxable revenues, and whether UUT is considered available (generally if received within 60 days after yearend).

City Council/RSA Agenda 293 Tuesday, March 22, 2022
City of Union City
Utility Users Tax
Notes to Schedule of Revenues and Expenditures
For the year ended June 30, 2021
5 2. UTILITY USERS TAX
The City of Union City’s Utility Users Tax (UUT) is a 5% tax on electricity, gas, telecommunications, and video services. The tax was approved by the voters through passage of Measure WW in November 2020, and is in place until December 31, 2028.

The UUT is a general tax that can be used for any legitimate governmental purpose. It was proposed to preserve essential services and help the City maintain fiscal solvency, including providing local funding for services such as the following:
- Maintaining paramedic and fire protection services; 9-1-1 emergency response; and emergency and disaster preparedness programs, including for a public health crisis. - Ensuring senior citizens receive support and access to food during the COVID-19 crisis and during recovery.
- Maintaining parks and streets.
- Preserving youth violence prevention and drug and gang intervention programs.

City Council/RSA Agenda 294 Tuesday, March 22, 2022
ORDINANCE NO. 881-20

AN ORDINANCE OF THE CITY OF UNION CITY TO ADD
CHAPTER 3.28 TO THE UNION CITY MUNICIPAL CODE

TO ESTABLISH A UTILITY USERS TAX
WHEREAS, like most cities across the Bay Area and the State, Union City has been greatly affected by the COVID-19 pandemic and related steep downturn in economic activity; and
WHEREAS, prior to the COVID-19 pandemic’s impact on the local economy, Union City was experiencing a budget deficit of $3.5 million in 2019-20 and projected to grow to more than $14 million annually over the next five years; and WHEREAS, to address the deficit, Union City made significant cuts, including closing an underutilized fire station, reducing library and community center hours and eliminating community policing services and school resource officers; and WHEREAS, for the last 16 years, Union City has relied upon funding from a Public Safety Parcel Tax that has provided approximately $4 million annually to fund 911 emergency response, fire, police, and youth and family services and this funding will expire in June 2021; and
WHEREAS, the loss of funding from the Public Safety Parcel Tax in addition to Union City’s ongoing structural deficit plus decreased revenue from COVID-19 reduced economic activity will result in a projected revenue loss of $26 million over the next four years; and WHEREAS, revenue loss of this magnitude will require cuts of approximately 20% of Union City’s General Fund operations budget; and
WHEREAS, budget reductions of this magnitude will require deep and devastating cuts to city services including essential 9-1-1 emergency response services, fire protection, crime prevention, road and pothole repair and services for youth, families and seniors; and WHEREAS, the City Council believes that locally-controlled revenue is needed to prevent the most devastating cuts to essential city services that Union City residents rely upon; and
WHEREAS, passage of a temporary and modest utility users tax will provide approximately $6 million annually to preserve the most essential city services that keep Union City safe and maintain quality of life for residents; and WHEREAS, local businesses will pay their fair share of the cost of this measure so homeowners don't shoulder the entire burden; and
Exhibit No. 2
City Council/RSA Agenda 295 Tuesday, March 22, 2022
WHEREAS, additional local revenue is needed to maintain paramedic and fire protection services, 9-1-1 emergency response and emergency and disaster preparedness programs, including for a public health crisis; and
WHEREAS, additional local revenue is needed to ensure senior citizens receive support and access to food during the COVID-19 crisis and during the recovery; and WHEREAS, additional local revenue is needed to maintain street and pothole repair; and WHEREAS, additional local revenue is needed to preserve youth violence prevention and drug and gang intervention programs to keep kids off the street and maintain community safety; and
WHEREAS, all funds from this measure are subject to strict fiscal accountability protections, including an independent citizens' oversight committee, mandatory financial audits, and yearly reports to the community to ensure that all funds are spent properly; and WHEREAS, this measure will give Union City local control over local funds for local needs and no funds can be taken by Sacramento; and
WHEREAS, the proposed measure would approve a utility users tax on electricity, gas, telecommunications and video services at a 5% rate until December 31, 2028. The tax shall be approved if the measure receives at least a simple majority of affirmative votes of those voting on the measure; and
WHEREAS, the People of the City of Union City desire to establish the utility users tax at a 5% rate for an eight (8) year period.

NOW, THEREFORE, the People of the City of Union City do ordain as follows:

SECTION 1. Recitals.

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

SECTION 2. Municipal Code Amendment.

The Union City Municipal Code is amended as provided in Exhibit A, attached hereto and incorporated herein by reference.

SECTION 3. Adjustment of Appropriations Limit. Pursuant to Article XIIIB of the Constitution of the State of California and applicable laws, the appropriations limit for the City is hereby increased by the aggregate sum authorized to be levied by this tax for fiscal year 2020-21 and each year thereafter.

SECTION 4. Compliance with the California Environmental Quality Act. The approval of this ordinance is exempt from the California Environmental Quality Act (Public Resources Code City Council/RSA Agenda 296 Tuesday, March 22, 2022
§§ 21000 et seq., “CEQA,” and 14 Cal. Code Reg. §§ 15000 et seq., “CEQA Guidelines”). This ordinance imposes a general tax that can be used for any legitimate governmental purpose; it is not a commitment to any particular action. As such, under CEQA Guidelines section 15378(b)(4), the ordinance is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue from the tax were used for a purpose that would have either such effect, the city would undertake the required CEQA review for that particular project. Therefore, pursuant to CEQA Guidelines section 15060, CEQA analysis is not required.

SECTION 5. 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 People of the City of Union City hereby declare that they 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 6. Amendment or Repeal.

Chapter 3.28 of title 3 of the Union City Municipal Code may be repealed or amended by the City Council without a vote of the People. However, as required by Article XIII C of the California Constitution, voter approval is required for any amendment of any provision that would increase the rate of any tax levied pursuant to this Ordinance. The People of the City of Union City affirm that the following actions shall not constitute an increase of the rate of a tax:

A. The restoration of the rate of the tax to a rate that is no higher than that set by this Ordinance if the City Council has acted to reduce the rate of the tax; B. An action that interprets or clarifies the methodology of the tax or any definition applicable to the tax so long as interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the language of this Ordinance; C. The establishment of a class of person that is exempt or excepted from the tax or the discontinuation of any such exemption or exception other than the discontinuation of an exemption or exception specifically set forth in this Ordinance; and, D. The collection of the tax imposed by this Ordinance, even if the City had for some period of time failed to collect the tax.

SECTION 7. Codification.

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Upon adoption of this Ordinance pursuant to the voter approval referenced above, the City Clerk, in consultation with the City Attorney, is hereby authorized and directed to codify this Ordinance in the Union City Municipal Code.

SECTION 8. Publication and Effective Date.

Within fifteen (15) days from and after adoption, this Ordinance shall be published once in the Tri-City Voice, a newspaper of general circulation printed and published in Alameda County and circulated in the City of Union City, in accordance with California Government Code Section 36933. If this Ordinance is approved by a majority of the voters voting on the issue at the November 3, 2020 election, pursuant to Elections Code Section 9217, this Ordinance shall become effective ten (10) days after the Council declares the results of the election.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 8
th day of December 2020, by the following vote:

AYES: Councilmembers Gacoscos Patiño, Singh, Vice Mayor Duncan, Mayor DutraVernaci NOES: None
ABSENT: None
ABSTAIN: None
City Council/RSA Agenda 298 Tuesday, March 22, 2022
Exhibit A
Chapter 3.28 - Utility Users Tax

3.28.010 - Ordinance title.

This Chapter shall be known as the "Utility Users Tax" of the City of Union City.

3.28.020 - Definitions.

The following words and phrases whenever used in this chapter shall be construed as defined in this section.
"Ancillary telecommunication services" mean services that are associated with or incidental to the provision, use or enjoyment of telecommunications services, including but not limited to the following services:

A. "Conference bridging service" means an ancillary service that links two or more participants of an audio or video conference call and may include the provision of a telephone number. Conference bridging service does not include the telecommunications services used to reach the conference bridge.

B. "Detailed telecommunications billing service" means an ancillary service of separately stating information pertaining to individual calls on a customer's billing statement.

C. "Directory assistance" means an ancillary service of providing telephone number information and/or address information.

D. "Vertical service" means an ancillary service that is offered in connection with one or more telecommunications services, which offers advanced calling features that allow customers to identify callers and to manage multiple calls and call connections, including conference bridging services.

E. "Voice mail service" means an ancillary service that enables the customer to store, send, or receive recorded messages. Voice mail service does not include any vertical services that the customer may be required to have in order to utilize the voice mail service.
"Ancillary video services" mean services that are associated with or incidental to the provision or delivery of video services, including but not limited to electronic program guide services, search functions, recording services, or other interactive services or communications that are associated with or incidental to the provision, use or enjoyment of video services. "Billing address" means the mailing address of the service user where the service supplier submits invoices or bills for payment by the customer.
"City" means the City of Union City.
"City Manager" shall mean the City Manager, or his or her authorized representative.

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"Gas" means natural or manufactured gas or any alternate hydrocarbon fuel that may be substituted therefore.
"Mobile telecommunications service" means commercial mobile radio service, as defined in Section 20.3 of Title 47 of the Code of Federal Regulations and as set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C. Section 124) and the regulations there under. "Month" means a calendar month.
"Non-utility service supplier" means the following:

A. A service supplier, other than a provider of electric distribution services to all or a significant portion of the City that generates electricity for sale to others, including, but not limited to, any publicly-owned electric utility, investor-owned utility, co-generator, distributed generation provider, exempt wholesale generator, municipal utility district, federal power marketing agency, electric rural cooperative, or other supplier or seller of electricity.

B. An electric service provider (ESP), electricity broker, marketer, aggregator (including a community choice aggregator), pool, operator, or other electricity supplier other than a provider of electric distribution services to all or a significant portion of the City that sells or supplies electricity or supplemental services to electricity users within the City.

C. A gas service supplier, aggregator, marketer or broker, other than a provider of gas distribution services to all or a significant portion of the City that sells or supplies gas or supplemental services to gas users within the City.
"Paging service" means a telecommunications service that provides transmission of coded radio signals for the purpose of activating specific pagers; such transmissions may include messages and/or sounds.
"Person" means, without limitation, any natural individual, firm, trust, common law trust, estate, partnership of any kind, association, syndicate, club, joint stock company, joint venture, joint power authority, limited liability company, corporation (including foreign, domestic, and non-profit), municipal district or municipal corporation (other than the City), special district, school district, cooperative, receiver, trustee, guardian, or other representative appointed by order of any court.
"Place of primary use" means the street address where the customer's use of a taxable service primarily occurs, which must be the residential street address or the primary business street address of the customer.
"Post-paid telecommunication service" means the telecommunication service obtained by making a payment on a telecommunication-by-telecommunication basis either through the use of a payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a service number which is not associated with the origination or termination of the telecommunication service.
"Prepaid telecommunication service" (including prepaid mobile telecommunication service) means the right to access telecommunication services, which must be paid for in advance and which enables the origination of communications using an access number or authorization code, whether manually or electronically dialed.

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"Private telecommunication service" means a telecommunication service that entitles the customer to exclusive or priority use of a communications channel or group of channels between or among termination points, regardless of the manner in which such channel or channels are connected, and includes switching capacity, extension lines, stations, and any other associated services that are provided in connection with the use of such channel or channels. A communications channel is a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points (i.e., the location where the customer either inputs or receives the communications). "Service address" means the residential street address or the business street address of the service user. For a telecommunication service user, "service address" means either:

A. The location of the service user's communication equipment from which the communication originates or terminates, regardless of where the communication is billed or paid; or,
B. If the location in subsection (A) of this definition is unknown (e.g., mobile telecommunications service or VoIP service), the service address means the location of the service user's place of primary use.

C. For prepaid telecommunication service, "service address" means the point of sale of the services where the point of sale is within the City, or if unknown, the known address of the service user (e.g., billing address or location associated with the service number), which locations shall be presumed to be the place of primary use. "Service supplier" means any entity or person, including the City, that provides or sells telecommunication, video, gas, or electrical service to a user of such service within the City. "Service user" means a person required to pay a tax imposed under the provisions of this chapter.
"Tax Administrator" means the finance director of the City or his or her designee. "Telecommunications service" means the transmission, conveyance, or routing of voice, data, audio, video, or any other information or signals to a point, or between or among points, whatever the technology used. The term "telecommunications services" includes such transmission, conveyance, or routing in which computer processing applications are used to act on the form, code or protocol of the content for purposes of transmission, conveyance or routing without regard to whether such services are referred to as voice over internet protocol (VoIP) services or are classified by the Federal Communications Commission as enhanced or value added, and includes video and/or data services that is functionally integrated with "telecommunication services". "Telecommunications services" include, but are not limited to the following services, regardless of the manner or basis on which such services are calculated or billed; ancillary telecommunication services; intrastate, interstate, and international telecommunication services; mobile telecommunications service; prepaid telecommunication service; post-paid telecommunication service; private telecommunication service; paging service; 800 service (or any other toll-free numbers designated by the Federal Communications Commission); 900 service (or any other similar numbers designated by the Federal Communications Commission for services whereby subscribers who call in to pre-recorded or live service).

City Council/RSA Agenda 301 Tuesday, March 22, 2022
"Video programming" means those programming services commonly provided to subscribers by a "video service supplier" including but not limited to basic services, premium services, audio services, video games, pay-per-view services, video on demand, origination programming, or any other similar services, regardless of the content of such video programming, or the technology used to deliver such services, and regardless of the manner or basis on which such services are calculated or billed.
"Video services" mean video programming and any and all services related to the providing, recording, delivering, use or enjoyment of video programming (including origination programming and programming using Internet Protocol, e.g., IP-TV and IP-Video) using one or more channels by a "video service supplier," regardless of the technology used to deliver, store or provide such services, and regardless of the manner or basis on which such services are calculated or billed, and includes ancillary video services, data services, telecommunication services, or interactive communication services that are functionally integrated with video services.
"Video service supplier" means any person or service that provides or sells video programming, or provides or sells the capability to receive video programming, including any telecommunications that are ancillary, necessary or common to the provision, use or enjoyment of the video programming, to or from a business or residential address in the City, where some fee is paid, whether directly or included in dues or rental charges for that service, whether or not public rights-of-way are utilized in the delivery of the video programming or telecommunications. A "video service supplier" includes, but is not limited to, multi-channel video programming distributors (as defined in 47 U.S.C.A. Section 522(13); open video systems (OVS) suppliers; and suppliers of cable television; master antenna television; satellite master antenna television; multi-channel multipoint distribution services (MMDS); video services using Internet Protocol (e.g., IP-TV and IP-Video, which provide, among other things, broadcasting and video on demand), direct broadcast satellite to the extent federal law permits taxation of its video services, now or in the future; and other suppliers of video services (including two-way communications), whatever their technology.
"VoIP (Voice over Internet Protocol) means the digital process of making and receiving real-time voice transmissions over any Internet Protocol network. "800 service" means a telecommunications service that allows a caller to dial a toll-free number without incurring a charge for the call. The service is typically marketed under the name "800," "855," "866," "877" or "888" toll-free calling, and any subsequent numbers designated by the Federal Communications Commission.
"900 service" means an inbound toll telecommunications service purchased by a subscriber that allows the subscriber's customers to call in to the subscriber's prerecorded announcement or live service. "900 service" does not include the charge for: collection services provided by the seller of the telecommunications services to the subscriber, or service or product sold by the subscriber to the subscriber's customer. The service is typically marketed under the name "900" service, and any subsequent numbers designated by the Federal Communications Commission for pay for services calls.

3.28.030 – Statutory, Constitutional and Other Exemptions.

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A. Consistency with State and Federal Law. Nothing in this chapter shall be construed as imposing a tax upon any person or service when the imposition of such tax upon such person or service would be in violation of a federal or state statute, the Constitution of the United States or the Constitution of the State of California.

B. Exemption Application. Any service user that is exempt pursuant to subsection (A) from any tax imposed by this chapter pursuant shall file an application with the Tax Administrator for an exemption; provided, however, this requirement shall not apply to a service user that is a state or federal agency or subdivision (such as a public school district or a community college district) with a commonly recognized name for such service. Said application shall be made upon a form approved by the Tax Administrator and shall state those facts declared under penalty of perjury which qualify the applicant for an exemption and shall include the names of all utility service suppliers serving that service user. If deemed exempt by the Tax Administrator such service user shall give the Tax Administrator timely written notice of any change in utility service suppliers so that the Tax Administrator can properly notify the new utility service supplier of the service user's tax exempt status. A service user that fails to apply and obtain an exemption pursuant to this section shall not be entitled to a refund of utility user taxes collected and remitted to the Tax Administrator from such service user as a result of such noncompliance. The decision of the Tax Administrator may be appealed pursuant to Section 3.28.190(A) of this chapter. Filing an application with the Tax Administrator and appeal to the City Manager pursuant to Section

3.28.190(B) of this chapter is a prerequisite to a suit thereon.

C. The City. Nothing in this chapter shall be construed as imposing a tax upon the City of Union City.

D. Low Income Exemptions.

1. The taxes imposed by this chapter shall not apply to any household within the City with a household income of less than fifty percent (50%) of the area median family income for the County of Alameda as adjusted for household size, as most recently established by the United States Department of Housing and Urban Development (“HUD”), upon presentation to the Tax Administrator of a written request for such exemption and reasonable proof of qualification for the exemption. The Tax Administrator will advise such service suppliers of the exempt status of its customer. In the event that HUD ceases to publish the area median income for the County of Alameda, the Tax Administrator shall use data equivalent data published by another state or federal agency. Individuals receiving the exemption granted by this subsection must reside at the location receiving the service; the exemption shall not apply to any nonresidential service location.

2. A residential service user shall be exempt from the gas, electric, telecommunications, and video tax of this chapter if he or she is qualified and is enrolled in Pacific Gas and Electric Company's (PG&E) CARE Program ("California Alternate Rates for Energy" program). Individuals receiving the exemption granted by this subsection must reside at the location receiving the service; the exemption shall not apply to any nonresidential service location. A residential service user that is qualified and is enrolled in the CARE Program shall be exempted from the gas, electric, telecommunications and video tax of this chapter upon presentation to the Tax City Council/RSA Agenda 303 Tuesday, March 22, 2022
Administrator of a written request for such exemption. The Tax Administrator will advise such service suppliers of the exempt status of its customer.

E. Senior Citizen Exemption.

1. An exemption from any tax imposed under this chapter shall be granted to any residential service user who is seventy years of age or older if such service user resides alone or if he or she shares his or her residence with a spouse or a registered domestic partner, and at least one spouse or partner meets the age criteria for the exemption.

2. Any service user seeking an exemption pursuant to this subsection (E) from any tax imposed by this chapter shall file an application with the Tax Administrator for an exemption. Said application shall be made upon a form approved by the Tax Administrator and shall state those facts, declared under penalty of perjury, which qualify the applicant for an exemption, and shall include the names of all service suppliers serving that service user. A driver's license or identification (ID) Card issued by the California Department of Motor Vehicles shall be prima facie proof of age. The Tax Administrator will advise such service suppliers of the exempt status of its customer.

F. Application Processing.

1. The Tax Administrator shall within sixty days of receipt of an application for exemption determine whether the exemption is granted, and if so notify the service supplier. The exemption shall apply from the date of the Tax Administrator's determination that the household qualifies.

2. If the Tax Administrator determines that an application for exemption is faulty, that the applicant has failed to truthfully set forth facts, or that the facts do not support the application for exemption, the application shall be denied in writing to the applicant. The applicant shall thereafter have a right to file an amended application, or to appeal the Tax Administrator's decision to the City Manager within a ten-day period after the mailing date of the Tax Administrator's notification. In the case of an appeal, the City Manager shall review the facts in consultation with the City Attorney, and shall render a final determination on such appeal.

G. Effective Date of Exemption. The exemption granted to a person pursuant to this section shall become effective on the beginning of the first regular billing period which commences after the Tax Administrator has notified the service supplier that an exemption has been granted. Upon a showing of hardship by a service supplier, the Tax Administrator may, as an alternative implement this section by requiring the exempt person to pay the tax and seek a refund under Section 3.28.180. The Tax Administrator shall provide a refund claim form for this purpose.

H. Continuing Eligibility. The Tax Administrator in his or her sole discretion may require annual written verification from the service user of his or her continuing eligibility for any exemption granted under this section.

3.28.040 - Telecommunications users tax.

A. Telecommunications User's Tax Rate. There is hereby imposed a tax upon every person in the City using telecommunication services. The tax imposed by this section shall be at the rate of five percent of the charges made for such services and shall be collected from the service user by the telecommunication services supplier or its billing agent. There is a rebuttable presumption City Council/RSA Agenda 304 Tuesday, March 22, 2022
that telecommunication services, which are billed to a billing or service address in the City, are used, in whole or in part, within the City's boundaries and such services are subject to taxation under this chapter. There is also a rebuttable presumption that prepaid telecommunication services sold within the City are used, in whole or in part, within the City and are therefore subject to taxation under this chapter. If the billing address of the service user is different from the service address, the service address of the service user shall be used for purposes of imposing the tax. As used in this section, the term "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the telecommunication services.

B. Sourcing Rules. "Mobile telecommunications service" shall be sourced in accordance with the sourcing rules set forth in the Mobile Telecommunications Sourcing Act (4 U.S.C.

Section 124). The Tax Administrator may issue and disseminate to communication service suppliers, which are subject to the tax collection requirements of this chapter, sourcing rules for the taxation of other communication services, including but not limited to post-paid communication services, prepaid communication services, VoIP and private communication services. In promulgating any sourcing rules hereunder the Tax Administrator shall take into account but shall not be legally bound by custom and common practice that furthers administrative efficiency and minimizes taxation by more than one state of the same service usage, commonly referred to as multi-jurisdictional taxation. In doing so the Tax Administrator may refer to and/or rely upon the Streamlined Sales and Use Tax Agreement, and/or any other reasonable precedent or resource.

C. Authority for Administrative Rulings. The Tax Administrator may issue and disseminate to telecommunication service suppliers which are subject to the tax collection requirements of this chapter, an administrative ruling identifying those telecommunication services, or charges therefore, that are subject to the tax of subsection (A) above.

D. Specific Inclusions in Telecommunication Services. As used in this section, the term "telecommunication services" shall include, but are not limited to, charges for the following:
connection, reconnection, termination, movement, or change of telecommunication services; late payment fees; detailed billing; central office and custom calling features (including, but not limited to, call waiting, call forwarding, caller identification, and three-way calling); voice mail and other messaging services; directory assistance; access and line charges; universal service charges; all fees, charges and surcharges, including those mandated by state or federal regulatory agencies to fund such agencies or various mandated programs (whether such charges or surcharges are imposed on the service supplier or the customer); local number portability charges; and text and instant messaging.

E. Specific Exclusions from Telecommunications Services. As used in this section, "telecommunications services," shall not include digital downloads that are not ancillary telecommunications services such as books, music, ringtones, games, and similar digital products.

F. Multi-Jurisdictional Taxation. To prevent actual multi-jurisdictional taxation of telecommunication services subject to tax under this section, any service user, upon proof to the Tax Administrator that the service user has previously paid the same tax in another state or local jurisdiction on such telecommunication services, shall be allowed a credit against the tax imposed to the extent of the amount of such tax legally imposed in such other state or local City Council/RSA Agenda 305 Tuesday, March 22, 2022
jurisdiction; provided, however, the amount of credit shall not exceed the tax owed to the City under this section.

G. Collection of Telecommunication Users Tax. The telecommunication user tax imposed by this section shall be collected from the service user by the service supplier. The amount of tax collected in one month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before the twentieth day of the following month.

3.28.050 - Video users tax.

A. Video Users Tax Rate. There is hereby imposed a tax upon every person in the City using video services from a video provider. The tax imposed by this section shall be at the rate of five percent of the charges made for such services and shall be collected from the service user by the video service supplier or its billing agent. There is a rebuttable presumption that video services that are billed to a billing or service address in the City, are used, in whole or in part, within the City's boundaries, and such services are subject to taxation under this chapter. If the billing address of the service user is different from the service address, the service address of the service user shall be used for purposes of imposing the tax.

B. Video Charges. As used in this section, the term "charges" shall include, but is not limited to, charges for the following:

1. Regulatory fees and surcharges, franchise fees, and access fees (e.g., "PEG" fees), whether designated on the customer's bill or not, or whether they are imposed on the service provider or the customer.

2. Initial installation of equipment necessary for provision and receipt of video services.

3. Late fees, collection fees, bad debt recoveries, and return check fees.

4. Activation fees, reactivation fees, and reconnection fees.

5. Video programming and video services.

6. Ancillary video services (e.g., electronic program guide services, recording functions, search functions, or other interactive services or communications that are ancillary, necessary or common to the use or enjoyment of video services).

7. Equipment leases (e.g., remote, recording or search devices, converters, remote devices).

8. Service calls, service protection plans, name changes, changes of services, and special services.

C. Charges Further Defined. As used in this section, the term "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the video services.

D. Authority for Administrative Rulings. The Tax Administrator may issue and disseminate to video service suppliers which are subject to the tax collection requirements of this chapter an administrative ruling identifying those video services or charges therefor that are subject to or not subject to the tax of subsection (A) above
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E. Collection of Video Users Tax. The tax imposed by this section shall be collected from the service user by the video service supplier, its billing agent, or a reseller of such services. In the case of video service, the service user shall be deemed to be the purchaser of the bulk video service (e.g., an apartment owner), unless such service is resold to individual users, in which case the service user shall be the ultimate purchaser of the video service. The amount of tax collected in one month shall be remitted to the Tax Administrator, and must be received by the Tax Administrator on or before the twentieth day of the following month.

3.28.060 - Electricity users tax.

A. Electricity Users Tax Rate. There is hereby imposed a tax upon every person in the City using electricity. The tax imposed by this section shall be at the rate of five percent of the charges made for such electricity, and for any supplemental services or other associated activities directly related to and/or necessary for the provision of electricity to the service users that are provided by a service supplier or non-utility service supplier to a service user.

B. Electricity Charges. As used in this section, the term "charges" shall include, but is not limited to, the following charges:

1. Energy charges.

2. Distribution or transmission charges.

3. Metering charges.

4. Stand-by, reserves, firming, ramping, voltage support, regulation, emergency or other similar minimum charges for services.

5. Customer charges, late charges, service establishment or reestablishment charges, demand charges, fuel or other cost adjustments, power exchange charges, independent system operator (ISO) charges, stranded investment or competitive transition charges (CTC), public purpose program charges, nuclear decommissioning charges, trust transfer amounts (bond financing charges), franchise fees, franchise surcharges, annual and monthly charges, and other charges, fees, or surcharges which are necessary for or common to the receipt use or enjoyment of electric service; and,

6. Charges, fees, or surcharges for electric services or programs, which are mandated by the California Public Utilities Commission or the Federal Energy Regulatory Commission, whether or not such charges, fees, or surcharges appear on a bundled or line item basis on the customer billing, or whether they are imposed on the service provider or the customer.

C. Electricity Charges Further Defined. As used in this section, the term "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the electricity or services related to the provision of such electricity.

D. Survey of Electricity Service Suppliers—Authority for Administrative Rulings. The Tax Administrator shall, from time to time, survey the electric service suppliers in the City to identify the various unbundled billing components of the electric retail service that are being offered to customers within the City, and the charges therefore, including those items that are mandated by state or federal regulatory agencies as a condition of providing such electric service. The Tax City Council/RSA Agenda 307 Tuesday, March 22, 2022
Administrator, thereafter, may issue and disseminate to such electric service suppliers an administrative ruling identifying those components and items that are: (1) necessary for or common to the receipt, use and enjoyment of electric service; or (2) currently are or historically have been included in a single or bundled rate for electric service by a local distribution company to a class of retail customers. Charges for such components and items shall be subject to the tax of subsection (A) above.

E. "Using Electricity" Further Defined. As used in this section the term "using electricity" shall not include the mere receiving of such electricity by an electrical corporation or governmental agency at a point within the City for resale.

F. Collection of Electricity Users Tax. The tax on electricity provided by self-production or by a non-utility service supplier not under the jurisdiction of this chapter shall be collected and remitted in the manner set forth in Section 3.28.080 of this chapter. All other taxes on charges for electricity imposed by this section shall be collected from the service user by the electric service supplier or its billing agent. The amount of tax collected in one month shall be remitted to the Tax Administrator and must be received by the Tax Administrator on or before the twentieth day of the following month; or, at the option of the person required to collect and/or remit the tax, such person shall remit an estimated amount of tax measured by the tax billed in the previous month or upon the payment pattern of the service user which must be received by the Tax Administrator on or before the twentieth day of the following month provided that such person shall submit an adjusted payment or request for credit as appropriate within sixty days following each calendar quarter. The credit, if approved by the Tax Administrator, may be applied against any subsequent remittance that becomes due.

3.28.070 - Gas users tax.

A. Gas Users Tax Rate. There is hereby imposed a tax upon every person in the City using gas that is delivered through a distribution system or by mobile transport. The tax imposed by this section shall be at the rate of five percent of the charges made for such gas, including all services related to the storage, transportation and delivery of such gas, and shall apply to all uses of gas, including but not limited to, heating, electricity generation, or the use of gas as a component of a manufactured product.

B. Gas Charges. As used in this section, the term "charges" shall apply to all services components and items for gas service that are: (1) necessary for or common to the receipt, use, or enjoyment of gas service; or, (2) currently are or historically have been included in a single or bundled rate for gas service by a local distribution company to a class of retail customers. The term "charges" shall include, but is not limited to, the following charges:

1. The commodity charges for purchased gas, or the cost of gas owned by the service user (including the actual costs attributed to chilling, production, lifting, storage, gathering, trunk-line, pipeline, and other operating costs associated with the production and delivery of such gas), which is delivered through a gas pipeline distribution system or by mobile transportation.

2. Gas transportation charges (including interstate charges to the extent not included in commodity charges).

3. Storage charges; provided, however, that the service supplier shall not be required to apply the tax to any charges for gas storage services when the service supplier cannot, City Council/RSA Agenda 308 Tuesday, March 22, 2022
as a practical matter, determine the jurisdiction where such stored gas is ultimately used; but it shall be the obligation of the service user to self-collect the amount of tax not applied to any charge for gas storage by the service supplier and to remit the tax to the appropriate jurisdiction.

4. Capacity or demand charges, late charges, service establishment or reestablishment charges, transition charges, customer charges, minimum charges, annual and monthly charges, and any other charges, which are necessary or common to the receipt, use and enjoyment of gas service.

5. Charges, fees, or surcharges for gas services or programs, which are mandated by the California Public Utilities Commission or the Federal Energy Regulatory Commission, whether or not such charges, fees, or surcharges appear on a bundled or line item basis on the customer billing, or whether they are imposed on the service provider or the customer.

C. Gas Charges Further Defined. As used in this section, the term "charges" shall include the value of any other services, credits, property of every kind or nature, or other consideration provided by the service user in exchange for the gas or services related to the delivery of such gas.

D. Survey of Gas Service Suppliers; Authority for Administrative Rulings. The Tax Administrator from time to time may survey the gas suppliers to identify the various unbundled billing components of gas retail service that they commonly provide to residential and commercial/industrial customers in the City and the charges therefore, including those items that are mandated by state or federal regulatory agencies as a condition of providing such gas service.

The Tax Administrator, thereafter, may issue and disseminate to such gas service suppliers an administrative ruling identifying those components and items which are: (1) necessary for or common to the receipt use or enjoyment of gas service, or, (2) currently are or historically have been included in a single or bundled rate for gas service by a local distribution company to a class of retail customers. Charges for such components and items shall be subject to the tax of subsection (A) above.

E. Exclusion for Resale. There shall be excluded from the calculation of the tax imposed in this section charges made for gas which is to be resold and delivered through a pipeline distribution system.

F. Collection of Gas Users Tax. The tax on gas provided by self-production or by a nonutility service supplier not under the jurisdiction of this chapter shall be collected and remitted in the manner set forth in Section 3.28.080 of this chapter. All other taxes on charges for gas imposed by this section shall be collected from the service user by the gas service supplier or its billing agent. The amount of tax collected in one month shall be remitted to the Tax Administrator and must be received by the Tax Administrator on or before the twentieth day of the following month; or, at the option of the person required to collect and/or remit the tax, such person shall remit an estimated amount of tax measured by the tax billed in the previous month or upon the payment pattern of the service user, which must be received by the Tax Administrator on or before the twentieth day of the following month provided that such person shall submit an adjusted payment or request for credit as appropriate within sixty days following each calendar quarter. The credit, if approved by the Tax Administrator, may be applied against any subsequent remittance that becomes due.

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3.28.080 - Collection of Tax from Service Users Receiving Direct Purchase of Gas or Electricity.

A. Report to Tax Administrator. Any service user subject to the tax imposed by Sections

3.28.060 or 3.28.070 that produces gas or electricity for self-use, that receives gas or electricity, including any related supplemental services, directly from a non-utility service supplier not under the jurisdiction of this chapter, or that, for any other reason, is not having the full tax collected and remitted by its service supplier, a non-utility service supplier, or its billing agent on the use of gas or electricity, including any related supplemental services, in the City, shall report said fact to the Tax Administrator and shall remit the tax due directly to the Tax Administrator within thirty days of such use. In lieu of paying said actual tax, the service user may, at its option, remit to the Tax Administrator within thirty days of such use an estimated amount of tax measured by the tax billed in the previous month, or upon the payment pattern of similar customers of the service supplier using similar amounts of gas or electricity, provided that the service user shall submit an adjusted payment or request for credit, as appropriate, within sixty days following each calendar quarter. The credit, if approved by the Tax Administrator, may be applied against any subsequent tax bill that becomes due.

B. Investigation. The Tax Administrator may require said service user to identify its nonutility service supplier and provide, subject to audit, invoices, books of account or other satisfactory evidence documenting the quantity of gas or electricity used, including any related supplemental services, and the cost or price thereof. If the service user is unable to provide such satisfactory evidence, or, if the administrative cost of calculating the tax in the opinion of the Tax Administrator is excessive, the Tax Administrator may determine the tax by applying the tax rate to the equivalent charges the service user would have incurred if the gas or electricity used, including any related supplemental services, had been provided by the service supplier that is the primary supplier of gas or electricity within the City. The rate schedule for this purpose shall be available from the City.

3.28.090 - Bundling taxable items with non-taxable items.

If any non-taxable charges are combined with and not separately stated from taxable service charges on the customer bill or invoice of a service supplier, the combined charge is subject to tax unless the service supplier identifies, by reasonable and verifiable standards, the portions of the combined charge that are non-taxable and taxable through the service supplier's books and records kept in the regular course of business, and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. If the service supplier offers a combination of taxable and non-taxable services, and the charges are separately stated, then for taxation purposes, the values assigned the taxable and non-taxable services shall be based on its books and records kept in the regular course of business and in accordance with generally accepted accounting principles, and not created and maintained for tax purposes. The service supplier has the burden of proving the proper valuation of the taxable and non-taxable services.

3.28.100 - Substantial nexus/minimum contacts.

For purposes of imposing a tax or establishing a duty to collect and remit a tax under this chapter, "substantial nexus" and "minimum contacts" shall be construed broadly in favor of the City Council/RSA Agenda 310 Tuesday, March 22, 2022
imposition collection and/or remittance of the utility users tax to the fullest extent permitted by state and federal law, and as it may change from time to time by judicial interpretation or by statutory enactment. Any telecommunication service (including VoIP) used by a person with a service address in the City which service is capable of terminating a call to another person on the general telephone network shall be subject to a rebuttable presumption that "substantial nexus/minimum contacts" exists for purposes of imposing a tax or establishing a duty to collect and remit a tax under this chapter. A service supplier shall be deemed to have sufficient activity in the City for tax collection and remittance purposes if its activities include but are not limited to any of the following maintains or has within the City directly or through an agent, affiliate, or subsidiary, a place of business of any nature; solicits business in the City by employees, independent contractors, resellers, agents, or other representatives; solicits business in the City on a continuous regular, seasonal, or systematic basis by means of advertising that is broadcast or relayed from a transmitter within the City or distributed from a location within the City; or advertises in newspapers or other periodicals printed and published within the City or through materials distributed in the City by means other than the United States mail; or if there are activities performed in the City on behalf of the service supplier that are significantly associated with the service supplier's ability to establish and maintain a market in the City for the provision of services that are subject to a tax under this chapter.

3.28.110 - Duty to collect—Procedures.

A. Collection by Service Suppliers. The duty of service suppliers to collect and remit the taxes imposed by the provisions of this chapter shall be performed as follows:

1. The tax shall be collected by service suppliers insofar as practicable at the same time as, and along with, the collection of the charges made in accordance with the regular billing practice of the service supplier. Where the amount paid by a service user to a service supplier is less than the full amount of the charge and tax which was accrued for the billing period, a proportionate share of both the charge and the tax shall be deemed to have been paid. In those cases where a service user has notified the service supplier of refusal to pay the tax imposed on said charges, Section 3.28.120 shall apply.

2. The duty of a service supplier to collect the tax from a service user shall commence with the beginning of the first regular billing period applicable to the service user where all charges normally included in such regular billing are subject to the provisions of this chapter. Where a service user receives more than one billing, one or more being for different periods than another, the duty to collect shall arise separately for each billing period.

B. Filing Return and Payment. Each person required by this chapter to remit a tax shall file a return to the Tax Administrator, on forms approved by the Tax Administrator, on or before the due date. The full amount of the tax collected shall be included with the return and filed with the Tax Administrator. The Tax Administrator is authorized to require such additional information as he or she deems necessary to determine if the tax is being levied, collected, and remitted in accordance with this chapter. Returns are due immediately upon cessation of business for any reason. Pursuant to Revenue and Tax Code Section 7284.6, the Tax Administrator, and its agents, shall maintain such filing returns as confidential information that is exempt from the disclosure provisions of the Public Records Act.

City Council/RSA Agenda 311 Tuesday, March 22, 2022

3.28.120 - Collection penalties—Service suppliers.

A. Due Date for Taxes—Delinquencies. Taxes collected from a service user are delinquent if not received by the Tax Administrator on or before the due date. Should the due date occur on a weekend or legal holiday, the return must be received by the Tax Administrator on the first regular working day following the weekend or legal holiday. A direct deposit, including electronic fund transfers and other similar methods of electronically exchanging monies between financial accounts, made by a service supplier in satisfaction of its obligations under this subsection shall be considered timely if the transfer is initiated on or before the due date, and the transfer settles into the City's account on the following business day.

B. Failure to Collect or Remit. If the person required to collect and/or remit a tax imposed pursuant to this chapter fails to collect the tax (by failing to properly assess the tax on one or more services or charges on the customer's billing) or fails to remit the tax collected on or before the due date, the Tax Administrator shall attach a penalty for such delinquencies or deficiencies at the rate of fifteen percent of the total tax that is delinquent or deficient in the remittance, and shall pay interest at the rate of and 75/l00ths percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date on which the remittance first became delinquent, until paid.

C. Penalties for Fraud or Gross Negligence in Reporting or Remitting. The Tax Administrator shall have the power to impose additional penalties upon persons required to collect and remit taxes pursuant to the provisions of this chapter for fraud or gross negligence in reporting or remitting at the rate of fifteen percent of the amount of the tax collected and/or required to be remitted, or as recomputed by the Tax Administrator.

D. Penalties Due as Tax. For collection purposes only, every penalty imposed and such interest that is accrued under the provisions of this section shall become a part of the tax herein required to be paid.

E. Authority to Modify Due Dates. Notwithstanding the foregoing, the Tax Administrator may, in his or her discretion, modify the due dates of this chapter to be consistent with any uniform standards or procedures that are mutually agreed upon by other public agencies imposing a utility users tax, or otherwise legally established, to create a central payment location or mechanism.

3.28.130 - Actions to collect.

Any tax required to be paid by a service user under the provisions of this chapter shall be deemed a debt owed by the service user to the City. Any such tax collected from a service user which has not been remitted to the Tax Administrator shall be deemed a debt owed to the City by the person required to collect and remit and shall no longer be a debt of the service user. Any person owing money to the City under the provisions of this chapter shall be liable to an action brought in the name of the City for the recovery of such amount, including penalties and interest as provided for in this chapter, along with any collection costs incurred by the City as a result of the person's noncompliance with this chapter, including, but not limited to, reasonable attorneys' fees. Any tax required to be collected by a service supplier or owed by a service user is an unsecured priority excise tax obligation under 11 U.S.C.A. Section 507(a)(8)(C). Service suppliers who seek to collect charges for service in bankruptcy proceedings shall also include in any such claim the amount of taxes due the City for those services, unless the Tax Administrator City Council/RSA Agenda 312 Tuesday, March 22, 2022
determines that such duty is in conflict with any federal or state law, rule, or regulation or that such action would be administratively impractical.

3.28.140 - Deficiency determination and assessment—Tax application errors.

A. Tax Deficiency Determinations. The Tax Administrator shall make a deficiency determination if he or she determines that any service user or service supplier required to pay or collect taxes pursuant to the provisions of this chapter has failed to pay, collect, and/or remit the proper amount of tax by improperly or failing to apply the tax to one or more taxable services or charges. Nothing herein shall require that the Tax Administrator institute proceedings under this section if, in the opinion of the Tax Administrator, the cost of collection or enforcement likely outweighs the tax benefit.

B. Notice of Deficiency. The Tax Administrator shall mail a notice of such deficiency determination to the person or entity allegedly owing the tax, which notice shall refer briefly to the amount of the taxes owed, plus interest at the rate of 75/100ths percent per month, or any fraction thereof, on the amount of the tax from the date on which the tax should have been received by the City. Within fourteen calendar days after the date of service of such notice, the person or entity allegedly owing the tax may request in writing to the Tax Administrator a hearing on the matter.

C. Hearing on Deficiency. If the person or entity allegedly owing the tax fails to request a hearing within the prescribed time period, the amount of the deficiency determination shall become a final assessment, and shall immediately be due and owing to the City. If such person or entity requests a hearing, the Tax Administrator shall cause the matter to be set for hearing, which shall be scheduled within thirty days after receipt of the written request for hearing. Notice of the time and place of the hearing shall be mailed by the Tax Administrator to such person at least ten calendar days prior to the hearing, and, if the Tax Administrator desires said person to produce specific records at such hearing, such notice may designate the records requested to be produced.

D. Determination after Hearing. At the time fixed for the hearing, the Tax Administrator shall hear all relevant testimony and evidence, including that of any other interested parties. At the discretion of the Tax Administrator, the hearing may be continued from time to time for the purpose of allowing the presentation of additional evidence. Within a reasonable time following the conclusion of the hearing, the Tax Administrator shall issue a final assessment (or nonassessment), thereafter, by confirming, modifying or rejecting the original deficiency determination, and shall mail a copy of such final assessment to person or entity owing the tax.

The decision of the Tax Administrator may be appealed pursuant to Section 3.28.160 of this chapter. Filing an application with the Tax Administrator and appeal to the City Manager pursuant to Section 3.28.160 of this chapter is a prerequisite to a suit thereon.

E. Delinquencies. Payment of the final assessment shall become delinquent if not received by the Tax Administrator on or before the thirtieth day following the date of receipt of the notice of final assessment. The penalty for delinquency shall be fifteen percent on the total amount of the assessment, along with interest at the rate of 75/100ths percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the date of delinquency, until paid.

The applicable statute of limitations regarding a claim by the City seeking payment of a tax City Council/RSA Agenda 313 Tuesday, March 22, 2022
assessed under this chapter shall commence from the date of delinquency as provided in this subsection.

F. Notice of Delinquency. All notices under this section may be sent by regular mail, postage prepaid, and shall be deemed received on the third calendar day following the date of mailing, as established by a proof of mailing.

3.28.150 - Administrative remedy—Non-paying service users.

A. Administrative Remedies for the Obligation to Collect Tax. Whenever the Tax Administrator determines that a service user has deliberately withheld the amount of the tax owed by the service user from the amounts remitted to a person required to collect the tax, or whenever the Tax Administrator deems it in the best interest of the City, he or she may relieve such person of the obligation to collect the taxes due under this chapter from certain named service users for specific billing periods. To the extent the service user has failed to pay the amount of tax owed for a period of two or more billing periods, the service supplier shall be relieved of the obligation to collect taxes due. The service supplier shall provide the City with the names and addresses of such service users and the amounts of taxes owed under the provisions of this chapter. Nothing herein shall require that the Tax Administrator institute proceedings under this section if, in the opinion of the Tax Administrator, the cost of collection or enforcement likely outweighs the tax benefit.

B. Delinquency Penalty. In addition to the tax owed, the service user shall pay a delinquency penalty at the rate of fifteen percent of the total tax that is owed, and shall pay interest at the rate of 75/l00ths percent per month, or any fraction thereof, on the amount of the tax, exclusive of penalties, from the due date, until paid.

C. Notice to Non-Paying Service User. The Tax Administrator shall notify the non-paying service user that the Tax Administrator has assumed the responsibility to collect the taxes due for the stated periods and demand payment of such taxes, including penalties and interest. The notice shall be served on the service user by personal delivery or by deposit of the notice in the United States mail, postage prepaid, addressed to the service user at the address to which billing was made by the person required to collect the tax; or, should the service user have a change of address, to his or her last known address.

D. Additional Penalties. If the service user fails to remit the tax to the Tax Administrator within thirty days from the date of the service of the notice upon him or her, the Tax Administrator may impose an additional penalty of fifteen percent of the amount of the total tax that is owed.

3.28.160 - Additional powers and duties of the Tax Administrator.

A. Enforcement by Tax Administrator. The Tax Administrator shall have the power and duty, and is hereby directed, to enforce each and all of the provisions of this chapter.

B. Administrative Regulations Regarding Payment. The Tax Administrator may adopt administrative rules and regulations consistent with provisions of this chapter for the purpose of interpreting, clarifying, carrying out, and enforcing the payment, collection, and remittance of the taxes herein imposed. A copy of such administrative rules and regulations shall be on file in the Tax Administrator's office. To the extent that the Tax Administrator determines that the tax imposed under this chapter shall not be collected in full for any period of time from any City Council/RSA Agenda 314 Tuesday, March 22, 2022
particular service supplier or service user, that determination shall be considered an exercise of the Tax Administrator's discretion to settle disputes and shall not constitute a change in taxing methodology for purposes of Government Code Section 53750 or otherwise. The Tax Administrator is not authorized to amend the City's methodology for purposes of Government Code Section 53750, and the City does not waive or abrogate its ability to impose the utility users tax in full as a result of promulgating administrative rulings or entering into agreements.

C. Administrative Agreements Regarding Billing Procedures. Upon a proper showing of good cause, the Tax Administrator may make administrative agreements, with appropriate conditions, to vary from the strict requirements of this chapter and thereby: (1) conform to the billing procedures of a particular service supplier so long as said agreements result in the collection of the tax in conformance with the general purpose and scope of this chapter; or (2) to avoid a hardship where the administrative costs of collection and remittance greatly outweigh the tax benefit. A copy of each such agreement shall be on file in the Tax Administrator's office, and are voidable by the Tax Administrator or the City at any time.

D. Compliance Audits. The Tax Administrator may conduct an audit, to ensure proper compliance with the requirements of this chapter, of any person required to collect and/or remit a tax pursuant to this chapter. The Tax Administrator shall notify said person of the initiation of an audit in writing. In the absence of fraud or other intentional misconduct, the audit period of review shall not exceed a period of three years next preceding the date of receipt of the written notice by said person from the Tax Administrator. Upon completion of the audit, the Tax Administrator may make a deficiency determination pursuant to Section 3.28.140 of this chapter for all taxes (and applicable penalties and interest) owed and not paid, as evidenced by information provided by such person to the Tax Administrator. If said person is unable or unwilling to provide sufficient records to enable the Tax Administrator to verify compliance with this chapter, the Tax Administrator is authorized to make a reasonable estimate of the deficiency.

Said reasonable estimate shall be entitled to a rebuttable presumption of correctness.

E. Extension of Time. Upon receipt of a written request of a taxpayer, and for good cause, the Tax Administrator may extend the time for filing any statement required pursuant to this chapter for a period of not to exceed forty-five days, provided that the time for filing the required statement has not already passed when the request is received. No penalty for delinquent payment shall accrue by reason of such extension. Interest shall accrue during said extension at the rate of 75/100ths percent per month, prorated for any portion thereof.

F. Eligibility for Exemption. The Tax Administrator shall determine the eligibility of any person who asserts a right to exemption from, or a refund of, the tax imposed by this chapter.

G. Waiver of Penalties and Interest. Notwithstanding any provision in this Chapter 3.28 to the contrary, the Tax Administrator may waive any penalty or interest imposed upon a person required to collect and/or remit for failure to collect the tax imposed by this Chapter 3.28 if the non-collection occurred in good faith. In determining whether the non-collection was in good faith, the Tax Administrator shall take into consideration the uniqueness of the product or service, industry practice or other precedence, or whether the person offers to voluntarily disclose its tax liability. The Tax Administrator may also participate with other utility users tax public agencies in conducting coordinated compliance reviews with the goal of achieving administrative efficiency and uniform tax application determinations, where possible. To encourage voluntary full disclosure and on-going cooperation on tax collection and remittance, City Council/RSA Agenda 315 Tuesday, March 22, 2022
the Tax Administrator, and its agents, may enter into agreements with the tax-collecting service providers and grant prospective only effect on any changes regarding the taxation of services or charges that were previously deemed by the service provider, in good faith and without gross negligence, to be non-taxable. In determining whether the non-collection was in good faith and without gross negligence, the Tax Administrator shall take into consideration the uniqueness of the product or service, industry practice or other precedence, and whether the disclosure was voluntarily made by the service provider or its agent.

3.28.170 - Records.

A. Retention of Necessary Tax Records. It shall be the duty of every person required to collect and/or remit to the City any tax imposed by this chapter to keep and preserve, for a period of at least three years, all records as may be necessary to determine the amount of such tax as he/she may have been liable for the collection of and remittance to the Tax Administrator, which records the Tax Administrator shall have the right to inspect at a reasonable time.

B. Administrative Subpoenas. The City through the City council may issue an administrative subpoena to compel a person to deliver to the Tax Administrator copies of all records deemed necessary by the Tax Administrator to establish compliance with this chapter, including the delivery of records in a common electronic format on readily available media if such records are kept electronically by the person in the usual and ordinary course of business. As an alternative to delivering the subpoenaed records to the Tax Administrator on or before the due date provided in the administrative subpoena, such person may provide access to such records outside the City on or before the due date, provided that such person shall reimburse the City for all reasonable travel expenses incurred by the City to inspect those records, including travel, lodging, meals, and other similar expenses, but excluding the normal salary or hourly wages of those persons designated by the City to conduct the inspection.

C. Non-Disclosure Agreements. The Tax Administrator is authorized to execute a nondisclosure agreement approved by the City Attorney to protect the confidentiality of customer information pursuant to California Revenue and Tax Code Sections 7284.6 and 7284.7.

D. Use of Billing Agents. If a service supplier uses a billing agent or billing aggregator to bill, collect, and/or remit the tax, the service supplier shall: (1) provide to the Tax Administrator the name, address and telephone number of each billing agent and billing aggregator currently authorized by the service supplier to bill, collect, and/or remit the tax to the City; and (2) upon request of the Tax Administrator, deliver, or effect the delivery of, any information or records in the possession of such billing agent or billing aggregator that, in the opinion of the Tax Administrator, is necessary to verify the proper application, calculation, collection and/or remittance of such tax to the City.

E. Access to Necessary Records. If any person subject to record-keeping under this section unreasonably denies the Tax Administrator access to such records, or fails to produce the information requested in an administrative subpoena within the time specified, then the Tax Administrator may impose a penalty of five hundred dollars on such person for each day following: (1) the initial date that the person refuses to provide such access; or (2) the due date for production of records as set forth in the administrative subpoena. This penalty shall be in addition to any other penalty imposed under this chapter.

3.28.180 - Refunds.

City Council/RSA Agenda 316 Tuesday, March 22, 2022
Whenever the amount of any tax has been overpaid or paid more than once or has been erroneously or illegally collected or received by the Tax Administrator under this chapter from a person or service supplier, it may be refunded as provided in this section as follows:

A. Tax Administrator Authority. The Tax Administrator may refund any tax that has been overpaid or paid more than once or has been erroneously or illegally collected or received by the Tax Administrator under this chapter from a service user or service supplier provided that no refund shall be paid under the provisions of this section unless the claimant or his or her guardian, conservator, executor, or administrator has submitted a written claim to the Tax Administrator within one year of the overpayment or erroneous or illegal collection of said tax.

Such claim must clearly establish claimant's right to the refund by written records showing entitlement thereto. To the extent allowed by law, nothing herein shall permit the filing of a claim on behalf of a class or group of taxpayers unless each member of the class has submitted a written claim under penalty of perjury as provided by this subsection.

B. Action on Claim for Refund. The Tax Administrator, where the claim is within his or her settlement authority as established by ordinance or by resolution of the City council from time to time, or the City council where the claim is in excess of that amount, shall act upon the refund claim within forty-five calendar days of the initial receipt of the refund claim. Said decision shall be final. If the Tax Administrator/city council fails or refuses to act on a refund claim within the forty-five calendar day period, the claim shall be deemed to have been rejected by the Tax Administrator/city council on the forty-fifth day. The Tax Administrator shall give notice of the action in a form which substantially complies with that set forth in Government Code Section 913.

C. Written Claim for Refund. The filing of a written claim pursuant to Government Code Section 935 is a prerequisite to any suit thereon. Any action brought against the City pursuant to this section shall be subject to the provisions of Government Code Section 945.6 and 946.

D. Refunds to Service Suppliers. Notwithstanding subsections (A) through (C) above, the Tax Administrator may, at his or her discretion, give written permission to a service supplier, who has collected and remitted any amount of tax in excess of the amount of tax imposed by this chapter, to claim credit for such overpayment against the amount of tax which is due the City upon a subsequent monthly return(s) to the Tax Administrator, provided that: (1) such credit is claimed in a return dated no later than one year from the date of overpayment or erroneous collection of said tax; (2) the Tax Administrator is satisfied that the underlying basis and amount of such credit has been reasonably established; and, (3) in the case of an overpayment by a service user to the service supplier that has been remitted to the City, the Tax Administrator has received proof, to his or her satisfaction, that the overpayment has been refunded by the service supplier to the service user in an amount equal to the requested credit.

3.28.190 - Appeals.

A. Administrative Appeals. The provisions of this section apply to any decision (other than a decision relating to a refund pursuant to Section 3.28.180 of this chapter), deficiency determination, assessment, or administrative ruling of the Tax Administrator. Any person aggrieved by any decision (other than a decision relating to a refund pursuant to Section 3.28.180 of this chapter), deficiency determination, assessment, or administrative ruling of the Tax Administrator, shall be required to comply with the appeals procedure of this section.

City Council/RSA Agenda 317 Tuesday, March 22, 2022
Compliance with this section shall be a prerequisite to a suit thereon. (See Government Code Section 935(b)). To the extent allowed by law, nothing herein shall permit the filing of a claim or action on behalf of a class or group of taxpayers.

B. Appeal to City Manager. If any person is aggrieved by any decision (other than a decision relating to a refund pursuant to Section 3.28.180 of this chapter), deficiency determination, assessment, or administrative ruling of the Tax Administrator, he or she may appeal to the City Manager by filing a notice of appeal with the City clerk within fourteen days of the date of the decision, deficiency determination, assessment, or administrative ruling of the Tax Administrator which aggrieved said person.

C. Scheduling of Administrative Appeal Hearing. The matter shall be scheduled for hearing before an independent hearing officer selected by the City Manager, no more than thirty days from the receipt of the appeal. The appellant shall be served with notice of the time and place of the hearing, as well as any relevant materials, at least five calendar days prior to the hearing. The hearing may be continued from time to time upon mutual consent. At the time of the hearing, the appealing party, the Tax Administrator, and any other interested person may present such relevant evidence as he or she may have relating to the determination from which the appeal is taken.

D. Notice of Decision. Based upon the submission of such evidence and the review of the City's files, the hearing officer shall issue a written notice and order upholding, modifying or reversing the determination from which the appeal is taken. The notice shall be given within fourteen days after the conclusion of the hearing and shall state the reasons for the decision. The notice shall specify that the decision is final and that any petition for judicial review shall be filed within ninety days from the date of the decision in accordance with Code of Civil Procedure Section 1094.6.

E. Manner of Notice. All notices under this section may be sent by regular mail, postage prepaid, and shall be deemed received on the third calendar day following the date of mailing, as established by a proof of mailing.

3.28.200 - No injunction/writ of mandate.

No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action, or proceeding in any court against this city or against any officer of the City to prevent or enjoin the collection under this chapter of any tax or any amount of tax required to be collected and/or remitted.

3.28.210 - Notice of changes to ordinance.

If a tax under this chapter is added repealed, increased, reduced, or the tax base is changed, the Tax Administrator shall follow the notice requirements of California Public Utilities Code Section 799.

3.28.220 - Effect of state and federal reference—Authorization.

Unless specifically provided otherwise, any reference to a state or federal statute in this chapter shall mean such statute as it may be amended from time to time, provided that such reference to a statute herein shall not include any subsequent amendment thereto, or to any subsequent change of interpretation thereto by a state or federal agency or court of law with the duty to City Council/RSA Agenda 318 Tuesday, March 22, 2022
interpret such law, to the extent that such amendment or change of interpretation would require voter approval under California law, or to the extent that such change would result in a tax decrease (as a result of excluding all or a part of a utility service, or charge therefore, from taxation). Only to the extent voter approval would otherwise be required or a tax decrease would result, the prior version of the statute (or interpretation) shall remain applicable; for any application or situation that would not require voter approval or result in a decrease of a tax, provisions of the amended statute (or new interpretation) shall be applicable to the maximum possible extent.

To the extent that the City's authorization to collect or impose any tax imposed under this chapter is expanded or limited as a result of changes in state or federal law, no amendment or modification of this chapter shall be required to conform the tax to those changes, and the tax shall be imposed and collected to the full extent of the authorization up to the full amount of the tax imposed under this chapter.

3.28.230 – Citizens Oversight Committee and Independent audit.

A. Citizens Oversight Committee. There shall be a five-person committee of members of the public to review and annually report on the revenue and expenditure of funds from the tax adopted by this chapter. Prior to the operative date, the City Council shall adopt a resolution establishing the composition of the committee and defining the scope of its responsibilities. Also prior to the operative date, the City Council shall appoint at least a quorum of the members of the committee; the Council shall complete the appointment of members of the committee by the end of fiscal year 2020-2021.

B. Independent Audit. The City shall annually verify that the taxes owed under this chapter have been properly applied, collected, and remitted in accordance with this chapter, and properly expended according to applicable law. The annual verification shall be performed by a qualified, independent third party, and the review shall employ reasonable, cost-effective steps to assure compliance, including the use of sampling audits. The verification shall not be required of tax remitters where the cost of the verification may exceed the tax revenues to be received.

3.28.240 - Remedies cumulative.

All remedies and penalties prescribed by this chapter or which are available under any other provision of law or equity, including but not limited to the California False Claims Act (Government Code Section 12650 et seq.) and the California Unfair Practices Act (Business and Professions Code Section 17070 et seq.), are cumulative. The use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter.

3.28.250 - Termination of utility users tax.

The levy of taxes as provided in this chapter shall expire on December 31, 2028, unless reenacted by a separate ordinance approved by a vote of the People of the City of Union City conducted pursuant to law. The termination of the levy of taxes as provided herein shall not terminate the obligation to pay taxes levied on services used prior to such date. Taxes levied prior to December 31, 2028, shall remain a debt payable to the City. All provisions of this chapter except those relating to the levy of taxes shall continue in full force and effect after such date.

City Council/RSA Agenda 319 Tuesday, March 22, 2022

ST&UUTOC
Agenda Item
New Business (b)
DATE:

TO:

FROM:

FEBRUARY 14, 2022

HONORABLE CHAIR AND MEMBERS OF THE ST&UUTOC

JACKIE ACOSTA, FINANCE DIRECTOR
SUBJECT: ANNUAL REPORT TO THE CITY COUNCIL FROM THE SALES TAX & UTILITY USERS’ TAX OVERSIGHT COMMITTEE REPORTING ITS FINDINGS
REGARDING MEASURE AA SALES TAX AND MEASURE WW UTILITY USERS’ TAX REVENUES AND EXPENDITURES FOR FISCAL YEAR 2020-2021

EXECUTIVE SUMMARY
Resolution No. 5735-21, adopted on March 23, 2021, which created the Sales Tax & Utility Users’ Tax Oversight Committee (ST&UUTOC) (Exhibit No. 1), states that the committee is tasked with meeting at least twice annually to review revenues and expenditures of the sales tax and the utility users’ tax to ensure that the funds are being used to maintain service levels as determined by the City Council’s adopted budget and reporting its findings annually to the City Council. Therefore, the committee needs to review and discuss the FY 2020-2021 sales tax and utility users’ tax revenues and expenditures and prepare a report to present its findings to the City Council.

BACKGROUND
The ordinances enacting both the Measure AA one-half cent local sales tax and the Measure WW 5% utility users’ tax require that a citizens’ oversight committee exist to review the revenues and expenditures of the sales tax and utility users’ tax.

The committee is tasked with meeting at least twice annually to review these revenues and expenditures to ensure that the tax revenues generated by the measures are being used to maintain service levels as determined by the City Council’s adopted budget and reporting its findings annually to the City Council.

Therefore, the committee needs to review and discuss the FY 2020-2021 sales tax City Council/RSA Agenda 320 Tuesday, March 22, 2022
and utility users’ tax revenues and expenditures and prepare a report to present its findings to the City Council.

DISCUSSION
Sales Tax - Measure JJ was placed on the ballot on November 4, 2014, to ask the voters of the City of Union City if the existing voter-approved Measure AA sales tax should be extended. The ballot measure language stated, “To prevent severe cuts to, and maintain essential services such as police, fire, paramedic, library, streets, parks and other services, shall Union City adopt an Ordinance extending the existing voter approved Measure AA sales tax with no increase in tax rate, requiring a citizen’s oversight committee, annual independent audits, and all funds for Union City and no funds for the State of California?” This committee has been tasked by the City Council to review the sales tax revenues generated by the tax measure and determine if they have been used to maintain the essential services described in the ballot measure language. Therefore, staff is presenting the FY 2020-2021 sales tax revenue and expenditure information for the committee’s review:

Measure AA - Sales Tax – FY 2020-2021 Estimated Revenues = $5,598,000 Revenues Amount Expenditures Amount
Sales Tax $6,249,676.56 Police Patrol $13,824,622.67
Fire & Paramedic $4,313,941.72
Street Maintenance $166,641.99
Parks Maintenance $1,353,858.60
Total $6,249,676.56 Total $19,659,064.98
The Measure AA sales tax revenue is a general revenue which is accounted for in the City’s General Fund along with several other general revenues - property taxes, franchise taxes, business license taxes, service fees, intergovernmental revenues, etc. The Measure AA sales taxes were used to pay a portion of the costs of police patrol, fire and paramedic services, street maintenance and parks maintenance. Without the $6.2 million of Measure AA sales tax, the City would not be able to maintain the high quality level of services that the community enjoys and expects.

Utility Users’ Tax - Measure WW was placed on the ballot on November 3, 2020, to ask the voters of the City of Union City if a new 5% utility users’ tax should be adopted. The ballot measure language stated, “To protect essential city services including senior citizen support/meal programs during COVID-19 crisis/recovery; 911 emergency/paramedic response; street/pothole repair; fire protection; disaster/health crisis preparedness; youth violence prevention/drug intervention programs; and other city services, shall the measure establishing a 5% utility users’ tax on gas, electricity, video, telecommunications services for 8 years, providing City Council/RSA Agenda 321 Tuesday, March 22, 2022
$6,100,000 annually in locally-controlled funding, requiring citizen oversight/ independent audits, be adopted?”
This committee has been tasked by the City Council to review the utility users’ tax revenues generated by the tax measure and determine if they have been used to protect the essential city services described in the ballot measure language.

Therefore, staff is presenting the FY 2020-2021 utility users’ tax revenue and expenditure information for the committee’s review:

Measure WW – Utility Users’ Tax – FY 2020-2021 Estimated Revenues = $1.375M Revenues Amount Expenditures Amount
Electricity $601,956.57 Professional services $20,342.20 Gas $143,218.67 Printing/reproduction $1,399.00
Telecomm $155,174.92 Postage $1,526.84
Video Services $125,815.41
Total $1,026,165.57 Total $23,268.04
As the utility users’ tax only became effective on April 1, 2021, the revenues collected in FY 2020-2021 included only 3 months (April, May & June 2021) of revenues. Only a small portion of the revenues collected were expended in FY 2020-2021. The remaining, unspent funds of $1,002,897.53 will be spent during the current 2021-2022 fiscal year.

The Measure WW utility users’ tax revenues are general revenues which are accounted for in the City’s General Fund along with several other general revenues – property taxes, franchise taxes, business license taxes, service fees, intergovernmental revenues, etc. The Measure WW utility users’ taxes were used in FY 2020-2021 to pay for some initial administrative costs related to the new tax measure. The $1M of remaining funds will be used in FY 2021-2022, along with the FY 2021-2022 UUT revenues, to pay a portion of the costs of senior citizen support/ meal programs during COVID-19 crisis/recovery, 911 emergency/paramedic response, street/pothole repair, fire protection, disaster/health crisis preparedness and youth violence prevention/drug intervention programs. Without the $1 million of Measure WW utility users’ taxes received in FY 2020-2021, and the anticipated annual UUT revenues of $5.5 million, the City would not be able to maintain the high quality level of services that the community enjoys and expects.

The ST&UUTOC needs to determine what format the report to the City Council should be in and what the report will say. Staff anticipates that the ST&UUTOC’s report to the City Council will be presented at the City Council meeting on Tuesday, March 22, 2022.

FISCAL IMPACT:

There is no fiscal impact associated with this item.

City Council/RSA Agenda 322 Tuesday, March 22, 2022
RECOMMENDATION:

Staff recommends that the ST&UUTOC take the following actions:

1. Review and discuss the sales tax and utility users’ tax revenues and expenditures.

2. Discuss and determine the format and content of the annual report to be presented to the City Council.

ATTACHMENTS:

Exhibit No. 1 – Resolution No. 5735-21
City Council/RSA Agenda 323 Tuesday, March 22, 2022
RESOLUTION NO. 5735-21

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY FORMING THE SALES TAX AND UTILITY USERS’ TAX OVERSIGHT COMMITTEE AND APPROVING

THE MAYOR'S APPOINTMENTS OF RAY GONZALEZ, JR, ESTRELITA MUNSAYAC,

DANIEL RIVERA, KASHMIR SINGH SHAHI AND ROBERT SINGER TO THE COMMITTEE WHEREAS, the City has an existing Measure AA Sales Tax Oversight Committee required by Union City Municipal Code Section 3.22.140; and
WHEREAS, in November 2020, voters approved Measure WW, a Utility Users’ Tax (Union City Municipal Code Chapter 3.28; and
WHEREAS, Union City Municipal Code Section 3.28.230 requires that the City establish a fivemember independent citizens’ oversight committee; and WHEREAS, the City of Union City desires to form the Sales Tax and Utility Users’ Tax Oversight Committee, one five-member independent citizens’ oversight committee, to comply with the requirements of Measure AA and Measure WW; and
WHEREAS, pursuant to resolution, the Council dissolved and disbanded the existing Measure AA Sales Tax Oversight Committee; and
WHEREAS, pursuant to Union City Municipal Code Section 2.20.030 and State law, committee members are appointed by the Mayor with the approval of the City Council; and WHEREAS, Mayor Carol Dutra-Vernaci seeks to appoint Ray Gonzalez, Jr, Estrelita Munsayac, Daniel Rivera, Kashmir Shahi Singh, and Robert Singer to the Sales Tax and Utility Users’ Tax Oversight Committee.

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

1. The City Council hereby establishes the Sales Tax and Utility Users’ Tax Oversight Committee consisting of five members of the public.

2. The Sales Tax and Utility Users’ Tax Oversight Committee shall perform all functions necessary to comply with the requirements of Union City Municipal Code Sections 3.22.140 and 3.28.230 and shall meet a minimum of twice annually to review revenues and expenditures of the Sales Tax and the Utility Users’ Tax to ensure that funds are being used to maintain service levels as determined by the City Council’s adopted budget.

3. The Sales Tax and Utility Users’ Tax Oversight Committee shall report its findings annually to the City Council.

4. Members of the Sales Tax and Utility Users’ Tax Oversight Committee shall serve a term of two years.

5. The City Council approves of Mayor Carol Dutra-Vernaci’s appointment of the following individuals to the Sales Tax and Utility Users’ Tax Oversight Committee: Ray Gonzalez, Jr, Estrelita Munsayac, Daniel Rivera, Kashmir Shahi Singh and Robert Singer.

Exhibit No. 1
City Council/RSA Agenda 324 Tuesday, March 22, 2022
Resolution No. 5735-21

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 23rd day of March 2021, by the following vote:

AYES: Councilmembers Duncan, Singh, Vice Mayor Gacoscos, Mayor Dutra-Vernaci NOES: None
ABSENT: Councilmember Patiño
ABSTAIN: None
City Council/RSA Agenda 325 Tuesday, March 22, 2022