Union City City Council
October 11, 2022

ABSTAIN:

APPROVED:

CAROL DUTRA-VERNACI
Mayor
ATTESTED: APPROVED AS TO FORM:
_________________________ _________________________
ANNA M. BROWN KRISTOPHER J. KOKOTAYLO
City Clerk City Attorney
City Council/RSA Agenda 205 Tuesday, October 11, 2022
Agenda Item
DATE: 10/11/2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: JOAN MALLOY, CITY MANAGER
SUBJECT: ADOPT A RESOLUTION RATIFYING PRIOR SERVICES RENDERED BY

VENTEK INTERNATIONAL, IN THE APPROXIMATE AMOUNT OF
$99,900, AND RATIFYING PRIOR SERVICES RENDERED BY DATA
TICKET, IN THE APPROXIMATE AMOUNT OF $95,000, AND

AUTHORIZING THE CITY MANAGER TO EXECUTE A FIVE-YEAR

CONTRACTUAL SERVICES AGREEMENT WITH VENTEK
INTERNATIONAL, IN THE AMOUNT OF $185,000, FOR PARKING METER

OPERATIONS AND MAINTENANCE, AND TO EXECUTE A FIVE-YEAR

CONTRACTUAL SERVICES AGREEMENT WITH DATA TICKET, IN THE AMOUNT OF $175,000, FOR PARKING CITATION PROCESSING AND

COLLECTIONS
Staff recommends that the City Council adopt a resolution ratifying prior services rendered by VenTek International, in the approximate amount of $99,900, and ratifying prior services rendered by Data Ticket, in the approximate amount of $95,000, and authorizing the City Manager to execute a five-year contractual services agreement with VenTek International, in the amount of $185,000, for parking meter operations and maintenance, and to execute a five-year contractual services agreement with Data Ticket, in the amount of $175,000, for parking citation processing and collection services.

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

BACKGROUND
Union City launched the Station District parking program in April 2010 and since 2011, the City has contracted with VenTek International to operate parking meters and has contracted with Data Ticket to processes the payments for parking citations. In April 2020, the contracts for both vendors expired, however, the City continued to pay for the services rendered. The City Council is asked to ratify prior City Council/RSA Agenda 206 Tuesday, October 11, 2022
services rendered by both vendors for the period of April 2020 through October 2022, as well as to authorize the City Manager to execute a five-year contractual services agreement with VenTek International to continue parking meter operations and maintenance and with Data Ticket to continue parking citation processing services.

DISCUSSION
VenTek International
VenTek International provides an interconnected online network of 26 automated pay station units that collect electronic revenue in the form of credit or debit card payments which in Station District. On April 1, 2017, the City entered into a three-year contractual services agreement with VenTek International, in the amount of $100,000. The contractual services agreement expired on April 1, 2020, and the City inadvertently continued to utilize VenTek’s products and services. VenTek International was paid according to the services rendered in the approximate additional amount of $99,900 (This amount includes total payments to date of $94,606.73, plus an estimate of the October 2022 invoice).

The consultant services agreement will be effective November 1, 2022 and will be valid for five years through October 31, 2027. It is estimated that VenTek International’s fees for the five-year agreement will be $185,000.

Data Ticket
Data Ticket processes payments of parking citations, provides staff administrative and hearing appeals, files liens with the Franchise Tax Board and Department of Motor Vehicles on unpaid citations and deposits tax payments to public agencies on parking citation revenues. On April 1, 2017, the City entered into a three-year contractual services agreement with Data Ticket, in the amount of $100,000. The contractual services agreement expired on April 1, 2020, and the City inadvertently continued to utilize Data Tickets services. Data Ticket was paid according to the services rendered in the approximate additional amount of $95,000 (This amount includes total payments to date of $81,271.35, plus an estimate of the September and October invoices).

The consultant services agreement will be effective November 1, 2022 and will be valid for five years through October 31, 2027. It is estimated that Data Ticket’s fees for the 5-year agreement will be $175,000.

FISCAL IMPACT
The total estimated costs for the contractual services agreements with VenTek International and Data Ticket are $185,000 and $175,000, respectively. Funding is included in the FY 2022-2023 General Fund budget for these agreements and funds willalso be included in future budgets.

RECOMMENDATION
Staff recommends that City Counciladopt a resolution:

1. Ratifying prior services rendered after the expiration of the original contractual services agreement with VenTek International, in the approximate amount of $99,900.

2. Ratifying prior services rendered after the expiration of the original contractual services agreement with City Council/RSA Agenda 207 Tuesday, October 11, 2022
Data Ticket, in the approximate amount of $95,000.

3. Authorizing the City Manager to execute a five-year contractual services agreement with VenTek International, in the amount of $185,000.

4. Authorizing the City Manager to execute a five-year contractual services agreement with Data Ticket, in the amount of $175,000.

Prepared by:

Serenity Mlay, Management Analyst I
Submitted by:

Joan Malloy, City Manager
ATTACHMENTS:

Description Type
Resolution Resolution
Contractual Services Agreement with VenTek International Attachment Contractual Services Agreement with Data Ticket Attachment City Council/RSA Agenda 208 Tuesday, October 11, 2022
RESOLUTION NO. XXXX-22

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY RATIFYING PRIOR

SERVICES RENDERED BY VENTEK INTERNATIONAL, IN THE APPROXIMATE AMOUNT OF $99,900, AND RATIFYING PRIOR SERVICES RENDERED BY DATA TICKET, IN THE APPROXIMATE AMOUNT OF $95,000, AND AUTHORIZING THE CITY MANAGER TO

EXECUTE A CONTRACTUAL SERVICES AGREEMENT WITH VENTEK INTERNATIONAL, IN THE AMOUNT OF $185,000, FOR PARKING METER OPERATIONS AND MAINTENANCE, AND

TO EXECUTE A CONTRACTUAL SERVICES AGREEMENT WITH DATA TICKET, IN THE AMOUNT OF $175,000, FOR PARKING CITATION PROCESSING AND COLLECTIONS WHEREAS, Union City launched the Station District parking program in April 2010 and since 2011, the City has contracted with VenTek International to operate parking meters and has contracted with Data Ticket to process the payments for parking citations; and WHEREAS, VenTek International provides an interconnected online network of 26 automated pay station units that collect electronic revenue in the form of credit or debit card payments; and
WHEREAS, Data Ticket processes payments of parking citations, provides staff administrative and hearing appeals, files liens with the Franchise Tax Board and Department of Motor Vehicles on unpaid citations and deposits tax payments to public agencies on parking citation revenues; and
WHEREAS, the agreements with VenTek International and Data Ticket expired on April 1, 2020, and the City inadvertently continued to utilize VenTek International’s and Data Ticket’s products and services; and
WHEREAS, VenTek International and Data Ticket timely and satisfactorily provided all services under the terms and conditions of the expired agreements; and WHEREAS, the City compensated VenTek International for products and services in the additional amount of approximately $99,900 and compensated Data Ticket in the additional amount of approximately $95,000; and
WHEREAS, the City and VenTek International and Data Ticket agree to ratify prior services rendered under their respective expired agreements; and WHEREAS, new contractual services agreements with VenTek International and Data Ticket, in amounts not-to-exceed $185,000 and $175,000, respectively, and for the term of November 1, 2022 through October 31, 2027 for each agreement, have been drafted.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Union City hereby authorizes the City Manager to execute an agreement with VenTek International, in an amount not-to-exceed $185,000, for parking meter operations and maintenance, and with Data Ticket, in an amount not-to-exceed $175,000, for parking citation processing and collection services, both in a form acceptable to the City Attorney.

City Council/RSA Agenda 209 Tuesday, October 11, 2022
Resolution No. XXXX-22

BE IT FURTHER RESOLVED that the City Council acknowledges the ratification of prior services rendered, in the approximate amount of $99,900 from VenTek International, and in the approximate amount of $95,000 from Data Ticket.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 11th day of October 2022, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

CAROL DUTRA-VERNACI
Mayor
ATTESTED: APPROVED AS TO FORM:
_________________________ ___________________________
ANNA M. BROWN KRISTOPHER J. KOKOTAYLO
City Clerk City Attorney
5199236.1
City Council/RSA Agenda 210 Tuesday, October 11, 2022
Consulting Services Agreement between
City of Union City and VenTek International , Inc. Page 1 of 13

CONSULTING SERVICES AGREEMENT BETWEEN

THE CITY OF UNION CITY
AND

VENTEK INTERNATIONAL

FOR PARKING METER OPERATION AND MAINTENANCE
This Agreement for consulting services is made by and between the City of Union City, a municipal corporation, (“City”) and VenTek International Inc. a California (corporation / limited liability company / sole proprietor), with offices located at 1260 Holm Road-Suite A, Petaluma, Ca 94954, (“Consultant”), (together referred to as the “Parties”) as of November 1, 2022 (the “Effective Date”).

Section 1. Services. Subject to the terms and conditions set forth in this Agreement, Consultant shall provide to City the services described in the Scope of Work attached as Exhibit A and incorporated herein, at the time and place and in the manner specified therein. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit A, the Agreement shall prevail.

1.1 Term of Services. The term of this Agreement shall begin on the Effective Date and shall end on October 31, 2027, and Consultant shall complete the work described in Exhibit A on or before that date, unless the term of the Agreement is otherwise terminated or extended, as provided for in Section 8. The time provided to Consultant to complete the services required by this Agreement shall not affect the City’s right to terminate the Agreement, as referenced in Section 8.

1.2 Standard of Performance. Consultant shall perform all services required pursuant to this Agreement according to the standards observed by a competent practitioner of the profession in which Consultant is engaged.

1.3 Assignment of Personnel. Consultant shall assign only competent personnel to perform services pursuant to this Agreement. In the event that City, in its sole discretion, at any time during the term of this Agreement, desires the reassignment of any such persons, Consultant shall, immediately upon receiving notice from City of such desire of City, reassign such person or persons.

1.4 Time is of the Essence. Time is of the essence. Consultant shall devote such time to the performance of services pursuant to this Agreement as may be reasonably necessary to timely finish the Scope of Work, to meet the standard of performance provided in Section 1.1 above and to satisfy Consultant’s obligations hereunder.

Section 2. COMPENSATION. City hereby agrees to pay Consultant a sum not to exceed One Hundred Eighty-Five Thousand Dollars ($185,000) notwithstanding any contrary indications that may be contained in Consultant’s proposal for services to be performed and reimbursable costs incurred under this Agreement. In the event of a conflict between this Agreement and Consultant’s proposal, attached as Exhibit A, regarding the amount of compensation, the Agreement shall prevail. City shall pay Consultant for services rendered pursuant to this Agreement at the time and in the manner set forth herein. The payments specified below shall be the only payments from City to Consultant for services rendered pursuant to this Agreement. Consultant shall submit all invoices to City in the manner City Council/RSA Agenda 211 Tuesday, October 11, 2022
Consulting Services Agreement between
City of Union City and VenTek International , Inc. Page 2 of 13 specified herein. Except as specifically authorized by City in writing, Consultant shall not bill City for duplicate services performed by more than one person.

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

2.1 Invoices. Consultant shall submit invoices, not more often than once a month during the term of this Agreement, based on the cost for services performed and reimbursable costs incurred prior to the invoice date. Invoices shall contain the following information:
• The beginning and ending dates of the billing period; • A task summary containing the original contract amount, the amount of prior billings, the total due this period, the balance available under the Agreement, and the percentage of completion;
• The total number of hours of work performed under the Agreement by Consultant and each employee, agent, and subcontractor of Consultant performing services hereunder; • The Consultant’s signature;

2.2 Monthly Payment. City shall make monthly payments, based on invoices received, for services satisfactorily performed, and for authorized reimbursable costs incurred. City shall have 30 days from the receipt of an invoice that complies with all of the requirements above to pay Consultant.

2.3 Final Payment. City shall pay the last 10% of the total sum due pursuant to this Agreement within 60 days after completion of the services and submittal to City of a final invoice, if all services required have been satisfactorily performed.

2.4 Total Payment. City shall pay for the services to be rendered by Consultant pursuant to this Agreement. City shall not pay any additional sum for any expense or cost whatsoever incurred by Consultant in rendering services pursuant to this Agreement. City shall make no payment for any extra, further, or additional service pursuant to this Agreement.

In no event shall Consultant submit any invoice for an amount in excess of the maximum amount of compensation provided above either for a task or for the entire Agreement, unless the Agreement is modified prior to the submission of such an invoice by a properly executed change order or amendment.

2.5 Hourly Rate/Fees. Unless the services provided are for a lump sum or flat fee, fees for work performed by Consultant on an hourly basis shall not exceed the amounts shown on the City Council/RSA Agenda 212 Tuesday, October 11, 2022
Consulting Services Agreement between
City of Union City and VenTek International , Inc. Page 3 of 13 compensation cost proposal attached hereto as Exhibit B. In the event of a conflict in or inconsistency between the terms of this Agreement and Exhibit B, the Agreement shall prevail.

2.6 Reimbursable Expenses. Reimbursable expenses are specified in Exhibit C, attached hereto and incorporated herein. Reimbursable expenses not listed in Exhibit C are not chargeable to City. Reimbursable expenses shall not include a mark-up and are billed as a direct costs. In no event shall expenses be advanced by the City to the Consultant. Reimbursable expenses are included in the total amount of compensation provided under this Agreement that shall not be exceeded.

2.7 Payment of Taxes. Consultant is solely responsible for the payment of employment taxes incurred under this Agreement and any similar federal or state taxes.

2.8 Payment upon Termination. In the event that the City or Consultant terminates this Agreement pursuant to Section 8, the City shall compensate the Consultant for all outstanding costs and reimbursable expenses incurred for work satisfactorily completed as of the date of written notice of termination. Consultant shall maintain adequate logs and timesheets to verify costs incurred to that date.

2.9 Authorization to Perform Services. The Consultant is not authorized to perform any services or incur any costs whatsoever under the terms of this Agreement until receipt of authorization from the Contract Administrator.

2.10. Business License. The Consultant is not authorized to perform services or incur costs whatsoever under the terms of this Agreement until Consultant applies for and has been issued a business license from the City pursuant to Title 5 of the Union City Municipal Code.

Section 3. FACILITIES AND EQUIPMENT. Except as set forth herein, Consultant shall, at its sole cost and expense, provide all facilities and equipment that may be necessary to perform the services required by this Agreement. City shall make available to Consultant only the facilities and equipment listed in this section, and only under the terms and conditions set forth herein.

City shall furnish physical facilities such as desks, filing cabinets, and conference space, as may be reasonably necessary for Consultant’s use while consulting with City employees and reviewing records and the information in possession of the City. The location, quantity, and time of furnishing those facilities shall be in the sole discretion of City. In no event shall City be obligated to furnish any facility that may involve incurring any direct expense, including but not limited to computer, longdistance telephone or other communication charges, vehicles, and reproduction facilities.

Section 4. INSURANCE REQUIREMENTS. Before beginning any work under this Agreement, Consultant, at its own cost and expense, unless otherwise specified below, shall procure the types and amounts of insurance listed below against claims for injuries to persons or damages to property that may arise from or in connection with the performance of the work hereunder by the Consultant and its agents, representatives, employees, and subcontractors. Consistent with the following provisions, Consultant shall provide proof satisfactory to City of such insurance that meets the requirements of this section and under forms of insurance satisfactory in all respects, and that such insurance is in effect prior to beginning work for the City. Consultant shall maintain the insurance City Council/RSA Agenda 213 Tuesday, October 11, 2022
Consulting Services Agreement between
City of Union City and VenTek International , Inc. Page 4 of 13 policies required by this section throughout the term of this Agreement. The cost of such insurance shall be included in the Consultant's bid. Consultant shall not allow any subcontractor to commence work on any subcontract until Consultant has obtained all insurance required herein for the subcontractor(s) and provided evidence to the City that such insurance is in effect. Verification of the required insurance shall be submitted and made part of this Agreement prior to execution.

4.1 Required Coverage. Consultant shall maintain all required insurance listed herein for the duration of this Agreement.

COVERAGE TYPE OF INSURANCE MINIMUM LIMITS
A Commercial General
Liability
Premises Liability; Products
and Completed Operations;
Contractual Liability; Personal
Injury and Advertising Liability
$1,000,000 per occurrence;
Bodily Injury and Property
Damage
$2,000,00 in the aggregate;
Commercial general coverage
shall be at least as broad as
Insurance Services Office
Commercial General Liability
occurrence form CG 0001
(most recent edition) covering
comprehensive General
Liability on an “occurrence”
basis.

B Commercial or Business
Automobile Liability
All owned vehicles, hired or
leased vehicles, non-owned,
borrowed and permissive uses.

Personal Automobile Liability
is acceptable for individual
contractors with no
transportation or hauling
related activities
$1,000,000 per occurrence;
Any Auto; Bodily Injury and
Property Damage. Automobile
coverage shall be at least as
broad as Insurance Services
Office Automobile Liability
form CA 0001 (most recent
edition), Code 1 (any auto). No
endorsement shall be attached
limiting the coverage.

C Workers’ Compensation
(WC) and Employers
Liability (EL)
Required for all contractors
with employees
WC: Statutory Limits
EL: $100,000 per accident for
bodily injury or disease.

Consultant may rely on a selfinsurance program to meet those requirements, but only if
the program of self-insurance
complies fully with the
provisions of the California
Labor Code. The insurer shall
waive all rights of subrogation
City Council/RSA Agenda 214 Tuesday, October 11, 2022
Consulting Services Agreement between
City of Union City and VenTek International , Inc. Page 5 of 13 against the City and its officers,
officials, employees, and
volunteers for loss arising from
work performed under this
Agreement.

D Professional Liability/Errors
& Omissions
Includes endorsements of
contractual liability
$1,000,000 per occurrence
$2,000,000 policy aggregate;
Any deductible or self-insured
retention shall not exceed
$150,000 per claim.

4.2 Additional requirements. Each of the following shall be included in the insurance coverage or added as a certified endorsement to the policy:
a. All required insurance shall be maintained during the entire term of the Agreement with the following exception: Insurance policies and coverage(s) written on a claims-made basis shall be maintained during the entire term of the Agreement and until three (3) years following termination and acceptance of all work provided under the Agreement, with the retroactive date of said insurance (as may be applicable) concurrent with the commencement of activities pursuant to this Agreement b. All insurance required above with the exception of Professional Liability, Personal Automobile Liability, Workers’ Compensation and Employers Liability, shall be endorsed to name as additional insured: City of Union City, its City Council, and all City officers, agents, employees, volunteers and representatives.
c. For any claims related to this Agreement or the work hereunder, the Consultant’s insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance and shall not contribute with it. d. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after 30 days’ prior written notice has been provided to the City.
e. Certificates of Insurance: Before commencing operations under this Agreement, Consultant shall provide Certificate(s) of Insurance and applicable insurance endorsements, in form and satisfactory to City, evidencing that all required insurance coverage is in effect. The City reserves the rights to require the Consultant to provide complete, certified copies of all required insurance policies.
f. Subcontractors: Consultant shall include all subcontractors as an insured (covered party) under its policies or shall furnish separate certificates and endorsements for each subcontractor.

All coverages for subcontractors shall be subject to all of the requirements stated herein.

City Council/RSA Agenda 215 Tuesday, October 11, 2022
Consulting Services Agreement between
City of Union City and VenTek International , Inc. Page 6 of 13 g. Claims-made limitations. The following provisions shall apply if the professional liability coverage is written on a claims-made form:
i. The retroactive date of the policy must be shown and must be before the date of the Agreement.
ii. Insurance must be maintained and evidence of insurance must be provided for at least five years after completion of the Agreement or the work, so long as commercially available at reasonable rates.
iii. If coverage is canceled or not renewed and it is not replaced with another claims-made policy form with a retroactive date that precedes the date of this Agreement, Consultant must purchase an extended period coverage for a minimum of three (3) years after completion of work under this Agreement.
iv. A copy of the claim reporting requirements must be submitted to the City for review prior to the commencement of any work under this Agreement.

4.3 All Policies Requirements.
a. Acceptability of insurers. All insurance required by this section is to be placed with insurers with a Bests' rating of no less than A:VII. Insurance shall be maintained through an insurer with a minimum A.M. Best Rating of A- or better, with deductible amounts acceptable to the City. Acceptance of Consultant’s insurance by City shall not relieve or decrease the liability of Consultant hereunder. Any deductible or self-insured retention amount or other similar obligation under the policies shall be the sole responsibility of the Consultant. b. Deductibles and Self-Insured Retentions. Consultant shall disclose to and obtain the written approval of City for the self-insured retentions and deductibles before beginning any of the services or work called for by any term of this Agreement. At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its officers, employees, and volunteers; or the Consultant shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses.
c. Wasting Policies. No policy required by this Section 4 shall include a “wasting” policy limit (i.e. limit that is eroded by the cost of defense). d. Waiver of Subrogation. Consultant hereby agrees to waive subrogation which any insurer or contractor may require from vendor by virtue of the payment of any loss.

Consultant agrees to obtain any endorsements that may be necessary to affect this waiver of subrogation. The Workers’ Compensation policy shall be endorsed with a waiver of subrogation in favor of the entity for all work performed by the consultant, its employees, agents, and subcontractors.

4.4 Remedies. In addition to any other remedies City may have if Consultant fails to provide or maintain any insurance policies or policy endorsements to the extent and within the time City Council/RSA Agenda 216 Tuesday, October 11, 2022
Consulting Services Agreement between
City of Union City and VenTek International , Inc. Page 7 of 13 herein required, City may, at its sole option exercise any of the following remedies, which are alternatives to other remedies City may have and are not the exclusive remedy for Consultant’s breach:
• Obtain such insurance and deduct and retain the amount of the premiums for such insurance from any sums due under the Agreement;
• Order Consultant to stop work under this Agreement or withhold any payment that becomes due to Consultant hereunder, or both stop work and withhold any payment, until Consultant demonstrates compliance with the requirements hereof; and/or • Terminate this Agreement.

Section 5. INDEMNIFICATION AND CONSULTANT’S RESPONSIBILITIES.

Consultant shall indemnify, defend with counsel acceptable to City, and hold harmless City and its officers, officials, employees, agents and volunteers from and against any and all liability, loss, damage, claims, expenses, and costs (including without limitation, attorney’s fees and costs and fees of litigation) (collectively, “Liability”) of every nature arising out of or in connection with Consultant’s performance of the Services or its failure to comply with any of its obligations contained in this Agreement, except such Liability caused by the sole negligence or willful misconduct of City.

The Consultant’s obligation to defend and indemnify shall not be excused because of the Consultant’s inability to evaluate Liability or because the Consultant evaluates Liability and determines that the Consultant is not liable to the claimant. The Consultant must respond within 30 days, to the tender of any claim for defense and indemnity by the City, unless this time has been extended by the City. If the Consultant fails to accept or reject a tender of defense and indemnity within 30 days, in addition to any other remedy authorized by law, so much of the money due the Consultant under and by virtue of this Agreement as shall reasonably be considered necessary by the City, may be retained by the City until disposition has been made of the claim or suit for damages, or until the Consultant accepts or rejects the tender of defense, whichever occurs first.

With respect to third party claims against the Consultant, the Consultant waives any and all rights of any type to express or implied indemnity against the Indemnitees.

Notwithstanding the forgoing, to the extent this Agreement is a “construction contract” as defined by California Civil Code Section 2782, as may be amended from time to time, such duties of consultant to indemnify shall not apply when to do so would be prohibited by California Civil Code Section 2782.

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

Section 6. STATUS OF CONSULTANT.

City Council/RSA Agenda 217 Tuesday, October 11, 2022
Consulting Services Agreement between
City of Union City and VenTek International , Inc. Page 8 of 13

6.1 Independent Contractor. At all times during the term of this Agreement, Consultant shall be an independent contractor and shall not be an employee of City. City shall have the right to control Consultant only insofar as the results of Consultant's services rendered pursuant to this Agreement and assignment of personnel pursuant to Subparagraph 1.3; however, otherwise City shall not have the right to control the means by which Consultant accomplishes services rendered pursuant to this Agreement. Notwithstanding any other City, state, or federal policy, rule, regulation, law, or ordinance to the contrary, Consultant and any of its employees, agents, and subcontractors providing services under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any and all claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in the California Public Employees Retirement System (PERS) as an employee of City and entitlement to any contribution to be paid by City for employer contributions and/or employee contributions for PERS benefits.

6.2 Consultant Not an Agent. Except as City may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of City in any capacity whatsoever as an agent.

Consultant shall have no authority, express or implied, pursuant to this Agreement to bind City to any obligation whatsoever.

Section 7. LEGAL REQUIREMENTS.

7.1 Governing Law. The laws of the State of California shall govern this Agreement.

7.2 Compliance with Applicable Laws. Consultant and any subcontractors shall comply with all laws applicable to the performance of the work hereunder.

7.3 Other Governmental Regulations. To the extent that this Agreement may be funded by fiscal assistance from another governmental entity, Consultant and any subcontractors shall comply with all applicable rules and regulations to which City is bound by the terms of such fiscal assistance program.

7.4 Licenses and Permits. Consultant represents and warrants to City that Consultant and its employees, agents, and any subcontractors have all licenses, permits, qualifications, and approvals of whatsoever nature that are legally required to practice their respective professions. Consultant represents and warrants to City that Consultant and its employees, agents, any subcontractors shall, at their sole cost and expense, keep in effect at all times during the term of this Agreement any licenses, permits, and approvals that are legally required to practice their respective professions. In addition to the foregoing, Consultant and any subcontractors shall obtain and maintain during the term of this Agreement valid Business Licenses from City.

7.5 Nondiscrimination and Equal Opportunity. Consultant shall not discriminate, on the basis of a person’s race, religion, color, national origin, age, physical or mental handicap or disability, medical condition, marital status, sex, or sexual orientation, against any employee, applicant for employment, subcontractor, bidder for a subcontract, or participant in, recipient of, or applicant for any services or programs provided by Consultant under this Agreement. Consultant shall comply with all applicable federal, state, and local laws, policies, rules, and requirements related to equal opportunity and nondiscrimination in employment, contracting, and the provision of any services that City Council/RSA Agenda 218 Tuesday, October 11, 2022
Consulting Services Agreement between
City of Union City and VenTek International , Inc. Page 9 of 13 are the subject of this Agreement, including but not limited to the satisfaction of any positive obligations required of Consultant thereby.

Consultant shall include the provisions of this Subsection in any subcontract approved by the Contract Administrator or this Agreement.

Section 8. TERMINATION AND MODIFICATION.

8.1 Termination. City may cancel this Agreement at any time and without cause upon written notification to Consultant. Consultant may cancel this Agreement upon thirty (30) days’ written notice to City and shall include in such notice the reasons for cancellation.

In the event of termination, Consultant shall be entitled to compensation for services performed to the effective date of termination; City, however, may condition payment of such compensation upon Consultant delivering to City any or all work product, including, but not limited to documents, photographs, computer software, video and audio tapes, and other materials provided to Consultant or prepared by or for Consultant or the City in connection with this Agreement.

8.2 Extension. City may, in its sole and exclusive discretion, extend the end date of this Agreement beyond that provided for in Subsection 1.1. Any such extension shall require a written amendment to this Agreement, as provided for herein.

8.3 Amendments. The parties may amend this Agreement only by a writing signed by all the parties.

8.4 Assignment and Subcontracting. City and Consultant recognize and agree that this Agreement contemplates personal performance by Consultant and is based upon a determination of Consultant’s unique personal competence, experience, and specialized personal knowledge.

Moreover, a substantial inducement to City for entering into this Agreement was and is the professional reputation and competence of Consultant. Consultant may not assign this Agreement or any interest therein without the prior written approval of the Contract Administrator. Consultant shall not subcontract any portion of the performance contemplated and provided for herein, other than to the subcontractors noted in the proposal, without prior written approval of the Contract Administrator.

8.5 Survival. All obligations arising prior to the termination of this Agreement and all provisions of this Agreement allocating liability between City and Consultant shall survive the termination of this Agreement.

8.6 Options upon Breach by Consultant. If Consultant materially breaches any of the terms of this Agreement, City’s remedies shall include, but not be limited to, the following:

8.6.1 Immediately terminate the Agreement;

8.6.2 Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement; City Council/RSA Agenda 219 Tuesday, October 11, 2022
Consulting Services Agreement between
City of Union City and VenTek International , Inc. Page 10 of 13

8.6.3 Retain a different consultant to complete the work described in Exhibit A not finished by Consultant; or

8.6.4 Charge Consultant the difference between the cost to complete the work described in Exhibit A that is unfinished at the time of breach and the amount that City would have paid Consultant pursuant to Section 2 if Consultant had completed the work.

Section 9. KEEPING AND STATUS OF RECORDS.

9.1 Records Created as Part of Consultant’s Performance. All reports, data, maps, models, charts, studies, surveys, photographs, memoranda, plans, studies, specifications, records, files, or any other documents or materials, in electronic or any other form, that Consultant prepares or obtains pursuant to this Agreement and that relate to the matters covered hereunder shall be the property of the City. Consultant hereby agrees to deliver those documents to the City upon termination of the Agreement. It is understood and agreed that the documents and other materials, including but not limited to those described above, prepared pursuant to this Agreement are prepared specifically for the City and are not necessarily suitable for any future or other use. City and Consultant agree that, until final approval by City, all data, plans, specifications, reports and other documents are confidential and will not be released to third parties without prior written consent of both parties.

9.2 Consultant’s Books and Records. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services or expenditures and disbursements charged to the City under this Agreement for a minimum of 3 years, or for any longer period required by law, from the date of final payment to the Consultant to this Agreement.

9.3 Inspection and Audit of Records. Any records or documents that Section 9.2 of this Agreement requires Consultant to maintain shall be made available for inspection, audit, and/or copying at any time during regular business hours, upon oral or written request of the City. Under California Government Code Section 8546.7, if the amount of public funds expended under this Agreement exceeds $10,000.00, the Agreement shall be subject to the examination and audit of the State Auditor, at the request of City or as part of any audit of the City, for a period of 3 years after final payment under the Agreement.

Section 10 MISCELLANEOUS PROVISIONS.

10.1 Attorneys’ Fees. If a party to this Agreement brings any action, including an action for declaratory relief, to enforce or interpret the provision of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees in addition to any other relief to which that party may be entitled. The court may set such fees in the same action or in a separate action brought for that purpose.

10.2 Venue. In the event that either party brings any action against the other under this Agreement, the parties agree that trial of such action shall be vested exclusively in the state courts of California in the County of Alameda or in the United States District Court for the Northern District of California.

City Council/RSA Agenda 220 Tuesday, October 11, 2022
Consulting Services Agreement between
City of Union City and VenTek International , Inc. Page 11 of 13

10.3 Severability. If a court of competent jurisdiction finds or rules that any provision of this Agreement is invalid, void, or unenforceable, the provisions of this Agreement not so adjudged shall remain in full force and effect. The invalidity in whole or in part of any provision of this Agreement shall not void or affect the validity of any other provision of this Agreement.

10.4 No Implied Waiver of Breach. The waiver of any breach of a specific provision of this Agreement does not constitute a waiver of any other breach of that term or any other term of this Agreement.

10.5 Successors and Assigns. The provisions of this Agreement shall inure to the benefit of and shall apply to and bind the successors and assigns of the parties.

10.6 Use of Recycled Products. Consultant shall prepare and submit all reports, written studies and other printed material on recycled paper to the extent it is available at equal or less cost than virgin paper.

10.7 Conflict of Interest. Consultant may serve other clients, but none whose activities within the corporate limits of City or whose business, regardless of location, would place Consultant in a “conflict of interest,” as that term is defined in the Political Reform Act, codified at California Government Code Section 81000 et seq.

Consultant shall not employ any City official in the work performed pursuant to this Agreement. No officer or employee of City shall have any financial interest in this Agreement that would violate California Government Code Sections 1090 et seq. Consultant hereby warrants that it is not now, nor has it been in the previous 12 months, an employee, agent, appointee, or official of the City. If Consultant was an employee, agent, appointee, or official of the City in the previous twelve months, Consultant warrants that it did not participate in any manner in the forming of this Agreement.

Consultant understands that, if this Agreement is made in violation of Government Code § 1090 et seq., the entire Agreement is void and Consultant will not be entitled to any compensation for services performed pursuant to this Agreement, including reimbursement of expenses, and Consultant will be required to reimburse the City for any sums paid to the Consultant. Consultant understands that, in addition to the foregoing, it may be subject to criminal prosecution for a violation of Government Code § 1090 and, if applicable, will be disqualified from holding public office in the State of California.

10.8 Solicitation. Consultant agrees not to solicit business at any meeting, focus group, or interview related to this Agreement, either orally or through any written materials.

10.9 Contract Administration. This Agreement shall be administered by the City Manager, or his designee, identified as Serenity Mlay ("Contract Administrator"). All correspondence, meeting documation, invoices and project deliverables shall be directed to or through the Contract Administrator.

City Council/RSA Agenda 221 Tuesday, October 11, 2022
Consulting Services Agreement between
City of Union City and VenTek International , Inc. Page 12 of 13

10.10 Notices. Any written notice to Consultant shall be sent to:

Contract Administrator
Erika Anderson Stewart
VenTek International
1260 Holm Road – Suite A
Petaluma, CA 94954
All other written notices to City shall be sent to:

Joan M. Malloy Kristopher J. Kokotaylo,
City Manager City Attorney
City of Union City City of Union City
34009 Alvarado Niles Rd. with a copy to 34009 Alvarado Niles Rd.

Union City, CA 94587 Union City, CA 94587

10.11 Professional Seal. Where applicable in the determination of the contract administrator, the first page of a technical report, first page of design specifications, and each page of construction drawings shall be stamped/sealed and signed by the licensed professional responsible for the report/design preparation. The stamp/seal shall be in a block entitled "Seal and Signature of Registered Professional with report/design responsibility," as in the following example. _________________________________________
Seal and Signature of Registered Professional with
report/design responsibility.

10.12 Integration. This Agreement, including the scope of work attached hereto and incorporated herein as Exhibits A, B, C represents the entire and integrated agreement between City and Consultant and supersedes all prior negotiations, representations, or agreements, either written or oral.

Exhibit A Online Service Delivery
Exhibit B Transaction Processing Services
Exhibit C Software Subscription

10.13 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be an original and all of which together shall constitute one agreement.

SIGNATURES ON FOLLOWING PAGE
City Council/RSA Agenda 222 Tuesday, October 11, 2022
Consulting Services Agreement between
City of Union City and VenTek International , Inc. Page 13 of 13 The Parties have executed this Agreement as of the Effective Date.

CITY OF UNION CITY VENTEK INTERNATIONAL
_______________________________ ______________________________

JOAN MALLOY, CITY MANAGER ERIKA ANDERSON STEWART
Title: _____________________
ATTEST:
______________________________
ANNA M. BROWN, CITY CLERK
APPROVED AS TO FORM:
_________________________________
KRISTOPHER J. KOKOTAYLO

CITY ATTORNEY
VP of Sales
City Council/RSA Agenda 223 Tuesday, October 11, 2022

EXHIBIT A

ONLINE SERVICE DELIVERY
.

City Council/RSA Agenda 224 Tuesday, October 11, 2022

VENTEK ONLINE SERVICES AGREEMENT (OSA)

VenTek International – City of Union City
Online Services Agreement (OSA)
SCHEDULE “A” – ONLINE SERVICE DELIVERY
Description Unit
Cost Qty Units Extended Cost Months Annual Amount Total Initial Year Fees
APS Unit Online Data Services Election(s)
Data Hosting $45 26 per APS Unit $1,170 12 $14,040 $14,040 APS Unit Online Connectivity Services Election(s)
Digital Cellular Connectivity $45 26 per APS Unit $1,170 12 $14,040 $14,040 Remote Management Software Annual Subscription Election(s) venVUE® Subscription
(Primary User)
$495 1 per credentialed
User
$495 Annual $495 $495
venVUE® Subscription
(Additional User(s))
$295 2 per credentialed
User
$590 Annual $590 $590
Enhanced venVUE®
Report Engine
$295 1 per Unit $295 Annual $295 $295
Transaction Processing Services (TPS) Election
VenDIRECT Variable Rate
(per transaction) $0.05 Variable per transaction Variable Variable Variable Total Price per year
$29,460.00 +
variable
Table 1: Annual Service Fees for 26 APS Units – Commencement Date: 11/1/2022 5 Year Term – End Date 10/31/2027
A.1 Service Elections & Service Delivery
Table 1 of this schedule, describes all of the Services selected by SUBSCRIBER and their respective fees, to be delivered by VENTEK pursuant to this Agreement, as amended from time to time to reflect the purchase/retirement of Service elections and/or added/removed APS Units connected to the System.

The Terms and Conditions are described under A.2 on the next page.

City Council/RSA Agenda 225 Tuesday, October 11, 2022

VENTEK ONLINE SERVICES AGREEMENT (OSA)

VenTek International – City of Union City
Online Services Agreement (OSA)
A.2 General Service Delivery Terms & Conditions

1. Minimum Term – Each Service has a minimum subscription term of two (2) years.

2. If a Service is terminated by SUBSCRIBER before the end of the effective term (the “Service Maturity Date”), then payment for the remainder of the Services becomes due as per Section 6, entitled “TERMINATION”.

3. Renewal – After the Service Maturity Date, each service remains in effect until explicitly cancelled by SUBSCRIBER.

4. Payment – Unless otherwise specified payment for each Service is due in advance on its Anniversary Date.

5. Carrier Services – SUBSCRIBER may choose from the following types of Online Connectivity services:
a. GSM/GPRS Digital Cellular
b. CDMA/1xRTT Digital Cellular
c. Satellite
d. Analog Dial-up
e. Ethernet (DSL, Cable Modem, T1/T3 Service, etc.)

6. Fee Increase – The annual fee increase prescribed in Section 4.3 shall apply at the start of each year after the initial year, unless otherwise specified in A.3 below.

7. Transaction Processing Service (TPS) – details of the elected TPS mode can be found in SCHEDULE “B” herein.

A.3 SUBSCRIBER-specific Service Delivery Terms & Conditions

1. N/A
City Council/RSA Agenda 226 Tuesday, October 11, 2022

EXHIBIT B

TRANSACTION PROCESSING SERVICES
City Council/RSA Agenda 227 Tuesday, October 11, 2022

VENTEK ONLINE SERVICES AGREEMENT (OSA)

VenTek International – City of Union City
Online Services Agreement (OSA)
SCHEDULE “B” – TRANSACTION PROCESSING SERVICES (“TPS”)
This SCHEDULE “B” describes the electronic payment (credit and debit cards) Online Services, a.k.a Transaction Processing Services (“TPS”), provided to the SUBSCRIBER under this Agreement. This schedule may be amended from time to time to reflect the addition, modification or deletion of services, the purchase of new APSUs and the corresponding pricing adjustments to these services, if any.

B.1 Transaction Processing Services (“TPS”) Modes
More specifically, VENTEK provides one of two different forms of TPS to SUBSCRIBER:

1. Basic Payment Gateway (“BPG”) transaction switching (on either a bulk or ‘per transaction’ basis), or;

2. Full Service “Turn-key” (“FSTK”) payment card processing.

Respectively, these two TPS modes (“Mode”), described more fully herein, provide for VENTEK delivery of electronic revenues to SUBSCRIBER using either:
• An automated SUBSCRIBER-managed TPS facility in which funds are delivered directly to a SUBSCRIBER’s financial container, in the case of the BPG product, or • In the case of the FSTK product, a VENTEK-managed TPS facility in which funds are collected in a VENTEK financial container, fully reconciled, and subsequently manually delivered to a specified SUBSCRIBER financial container B.2 SUBSCRIBER TPS Election
SUBSCRIBER has elected and is funded and billed accordingly the following TPS Mode:

BPG per transaction
B.2.1 Basic Payment Gateway TPS
Mode 1 – Basic Payment Gateway TPS [BPG] (Per Transaction) – ONLY AVAILABLE FOR 3 OR MORE MACHINES
a. VenTek’s Payment Gateway software forms the basis for this basic ‘transaction switching’ payment processing TPS Mode
b. In this mode payment authorization requests are “switched” from the APSU network to the SUBSCRIBER’s Merchant Account (MA) facility c. All electronic revenue is delivered directly to SUBSCRIBER’s checking account as an effect of automated payment “Settlements” at the end of the revenue day d. Merchant Service Provider (MSP) Fees are paid directly by SUBSCRIBER to the MSP on a monthly basis
e. The fee for BPG Service is:
i. Service Fee Amount = $0.05 per transaction
ii. It is charged per unit of “transaction presented for payment” on a ‘Pay As You Go’ (PAYG) manner
f. BPG Service Fees are billed monthly in arrears
Note:

1. Offered pricing may be reviewed in the event of:
a. The end of the first full, and all subsequent, years of revenue service b. A change in the number of APS units in the system
c. Significant changes in transaction volume
City Council/RSA Agenda 228 Tuesday, October 11, 2022
Consulting Services Agreement between
City of Union City and VenTek International

EXHIBIT C

SOFTWARE SUBSCRIPTION
City Council/RSA Agenda 229 Tuesday, October 11, 2022

VENTEK ONLINE SERVICES AGREEMENT (OSA)

VenTek International – City of Union City
Online Services Agreement (OSA)
SCHEDULE “C” – venVUE® SOFTWARE SUBSCRIPTION (“venVUE”) This SCHEDULE “C” attached contains SUBSCRIBER’s subscription order form aka “venVUE® Remote Management Software Order Form” and the terms and conditions for its use. Please note that these are “Samples” only.

City Council/RSA Agenda 230 Tuesday, October 11, 2022

VENTEK ONLINE SERVICES AGREEMENT (OSA)

VenTek International – City of Union City
Online Services Agreement (OSA)
venVUE® Remote Management Software
Order Form
For__________________________
(Print Customer Name)
VenTek International’s (“VenTek”) venVUE®software product is an online client program that allows VenTek Revenue Collection System (“RCS”) administrators, service personnel, finance departments and revenue planners to remotely control and view Automated Pay Station (“APS”) activity. These real-time functions include: monitoring APS status, remotely controlling APS configuration, managing system notifications and providing consolidated revenue and audit data viewing. The venVUE® application, using Windows®Internet Explorer, is your enterprise view into the VenTek RCS. Working in conjunction with the Central Controller Unit (CCU) front-end processor, the venVUE®interface enables users to setup and configure automated payment operations, monitor pay station performance and receive system alert and status messages.

All system reports are viewable from any computer with Windows®Internet Explorer and a licensed set of venVUE® reporting software credentials. Additional venVUE® user licenses can be added to existing VenTek RCS implementations for the prices outlined below.

Price List
Product 1
st User Account 2 to 5 Additional Users 7 or more users venVUE® Annual License1,2 $495 per annum3 $295 per user per annum4,5 $1,995 per annum Cost Example: 3 venVUE® Annual License User Accounts = $1,085 ($495+$295+295) 1 venVUE®licensing fees are firm for each subscription year but are subject to change on or before the Subscription Anniversary Date. 2Multi-year license subscriptions can be purchased at current pricing. 3The Subscription Anniversary Date is established when the first Single User credential is issued. 4Additional User license subscriptions will be prorated based on the Subscription Anniversary Date.

Number of annual User License licenses5: Amount: $
5One completed venVUE® User License Request Form is required per User License Please indicate the Purchase Order number to use:___________________________________________ VenTek Authorized Representative Authorized Representative Print Name: Print Name:

Signature: Signature:

Phone Number
PLEASE PROVIDE USER ACCOUNT DETAILS ON PAGE 2 OF THIS FORM NOTE: New system user accounts by default are granted general access privileges. This entitles the account holder full access to all of the reports above and to each of the venVUE modules; Configuration, Lot Status, Rate Tables, and Reports. Additionally, there are specific account levels that can be assigned to key personnel automatically.

These choices are General User, Operations User, Finance User, Status User, Enforcement User, and Remote Validation User. Users can also be granted access on a custom basis should none of the pre-defined access groups provide the proper level of access.
venVUE® offers a rich suite of general report templates designed to render detailed real-time reporting information from the underlying system database into a comprehensive set of reports. These reports are provided based on their association to the User Account groups, but access to reports can also be provided or restricted on an individual basis.
venVUE® User License Request Form
City Council/RSA Agenda 231 Tuesday, October 11, 2022

VENTEK ONLINE SERVICES AGREEMENT (OSA)

VenTek International – City of Union City
Online Services Agreement (OSA)
(Note: One completed form is required per User License Request) Please complete this section for each User license purchased. Each venVUE® log-in credential is private and confidential to the specific user. Credentials are sent by email to the user with log-in directions, a temporary password, a link to venVUE® and a link to download the venVUE® User Manual.

NEW USER INFORMATION:

FULL NAME: EMAIL:

TITLE: PHONE:

USER ACCOUNT DETAILS: Please Select Pre-defined User Access Level, or set custom access OPTION 1: PRE-DEFINED USER ACCESS LEVEL (Select One or set Custom User Access in OPTION 2):
□ GENERAL USER: Access to all configuration settings, all reports and status information □ CONFIGURATION USER: Access to all configuration settings and status information □ OPERATION REPORT USER: Access to Event Status, Rejection, Transaction Count, Parking Enforcement, Stall Transaction, and Parking Volume reports
□ FINANCE REPORT USER: Access to all reports (except Coupon reports) □ STATUS USER: Access to status information (Lot Status) □ ENFORCEMENT USER: Access to create and view parking enforcement, and to stall transaction report.

OPTION 2: CUSTOM USER ACCESS LEVEL (Complete if one Pre-Defined User Access Level is not checked in OPTION 1):

CONFIGURATION ACCESS:
□ Bad Cards List Creation
□ Cost Centers
□ Coupons
□ Event Filters
□ Event Group Filters
□ Lots
□ Pay Stations
□ Rate Tables
□ Vendors
REPORT ACCESS:

Coupons
□ Coupon Balance
□ Coupon Usage
Enforcement
□ Parking Enforcement
□ Parking Handheld
□ Stall Transactions
System Statistics
□ Parking Volume
Transaction Lookup
□ Cash Transactions
□ Sales Transactions
Revenue Reconciliation
□ Batch Settlements
□ Credit Card Detail
□ Daily Transactions
□ Lost Sales
□ Monthly Transactions
Terminal Data
□ Cash Audit
□ Event Status
□ Rejection
□ Transaction Count
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Agenda Item
DATE: 10/11/2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CARMELA CAMPBELL, ECONOMIC, AND COMMUNITY

DEVELOPMENT DIRECTOR
SUBJECT: PUBLIC HEARING AND INTRODUCTION OF ORDINANCE APPROVING ZONING TEXT AMENDMENT, AT-22-004, AMENDING CHAPTER 18.52, ADMINISTRATION, OF TITLE 18, ZONING, OF THE UNION CITY
MUNICIPAL CODE, ADDING SECTION 18.52.084, PUBLIC CONVENIENCE

OR NECESSITY DETERMINATION AND APPEALS, TO ALLOW THE

ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR TO

DETERMINE THAT PUBLIC CONVENIENCE OR NECESSITY WOULD

BE SERVED BY THE ISSUANCE OF ABC RETAIL LICENSES FOR

ALCOHOL SALES
Staff recommends that the City Council hold a public hearing and adopt the attached Ordinance (Attachment 1) approving Zoning Text Amendment, AT-22-004. The proposed amendment will add Section 18.52.084, Public Convenience or Necessity Determination and Appeals, to allow the Economic and Community Development Director to determine that public convenience or necessity would be served by the issuance of ABC retail licenses for alcohol sales.

The Planning Commission recommended approval of this Zoning Text Amendment to the City Council at its September 15, 2022, meeting on a 4-0 vote. Attached to this staff report are the Planning Commission Staff Report (Attachment 2), Planning Commission Desk Item (Attachment 3), Planning Commission Meeting Minutes (Attachment 4), and Planning Commission Resolution (Attachment 5).

STRATEGIC PLAN ALIGNMENT
While this agenda item does not have alignment with a specific Strategic Plan goal, approval of the application implements the Citywide vision included in the Strategic Plan, which is "To be a vibrant, inclusive and prosperous community where residents and businesses thrive, and innovation grows." City Council/RSA Agenda 268 Tuesday, October 11, 2022

BACKGROUND
The City of Union City is seeking a Zoning Text Amendment, AT-22-004, to amend Chapter 18.52, Administration, of Title 18, Zoning, of the Union City Municipal Code. The proposed amendment will add Section 18.52.084, Public convenience or necessity determination and appeals, to allow the Economic and Community Development Director to determine within 90 days of notification of a completed application for licensure, that public convenience or necessity would be served by the issuance of a retail license for alcohol sales.

Any person or entity wishing to obtain an alcoholic beverage license must apply to the office of the Department of Alcoholic Beverage Control (ABC). Before opening an alcoholic beverage business, the applicant must receive approval from ABC before beginning any actual work.

If the business is located in a high-crime area or an area that has too many licenses (i.e., undue or over concentration), ABC will deny the license under the premise that it would not serve public convenience or necessity. In that situation, the City Council, or its designated subordinate officer or body, has 90 days to determine whether the license serves a public convenience or necessity. ABC must then be notified of the determination within the 90-day period. If there is no decision within 90 days, ABC may issue the license if the applicant demonstrates to ABC that issuance would serve public convenience or necessity.

The proposed Zoning Text Amendment will allow, pursuant to the State of California Business and Professions Code Section 23958.4, the City of Union City’s designated subordinate officer or body, in this case the Economic and Community Development Director, to make the determination whether a public convenience or necessity would be served by the issuance of an ABC license.

The proposed Zoning Text Amendment is listed in Exhibit A. No redlined version is attached as this is a new section, which includes all new text.

DISCUSSION
Public Convenience or Necessity
The impetus for the proposed amendment is to streamline the processing of ABC license applications.

Currently, the City does not have a process in place to allow a subordinate officer or body to make the determination that public convenience or necessity would be served by the issuance of an ABC retail license.

The proposed text amendment would relieve the City Council from this duty and designate the Economic and Community Development Director as the subordinate body to make the determination. The proposed amendment will also provide findings that must be made in order to support a determination of public convenience or necessity.

In the past, the Economic and Community Development (ECD) Director made these types of determinations in areas of overconcentration within the City. Current areas of overconcentration include Union Landing and the Marketplace shopping area due to the large number of restaurants that serve alcohol. The proposed amendment is a result of staff being made aware of the requirement that the City Council needs to formally identify a designated subordinate officer or body. The proposed amendment willcodify the existing practice of the ECD Director making determinations of public convenience or necessity.

City Council/RSA Agenda 269 Tuesday, October 11, 2022
Staff is proposing that all of the following findings be made for a determination of public convenience or necessity. These findings are identical to the findings required for issuance of a Use Permit and Administrative Use Permit.

1. That the proposed location of the use is in accord with the purposes of this title and the purposes of the district in which the site is located;

2. That the proposed location of the use and the conditions under which it would be operated or maintained will not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity;

3. That the proposed use is consistent with the general plan and any applicable specific plans and willcomply with each of the applicable provisions of this title.

Public notice would be required for a determination that public convenience or necessity would be served by the license issuance. No public hearing would be required. Public notice shall be given at least ten (10) calendar days before the date of consideration and shall include, at a minimum, the date the application will be considered; a description of the proposed request; and the project location. Notice shall be mailed to the applicant and to each adjacent property owner and occupant. The Director’s decision is final unless appealed to the Planning Commission.

Planning Commission Meeting
The public hearing for the project was held on September 15, 2022. The Commission considered feedback from staff. For a detailed overview of the Planning Commission discussion, see the attached Meeting Minutes labeled Attachment 4.

Staff received questions and comments in advance from the Commission regarding the proposed text amendment and a Desk Item was prepared in response. The Desk Item provided clarification of the approval process used in the past for PCN determinations; clarification of approval process moving forward; the districts where the amendment applies, which includes all districts where alcohol is sold; as well as minor updates to amendments proposed by staff.Commission members also had questions regarding the City's process, areas of over-concentration, and processing of applications for a license from ABC.

After consideration of the proposed text amendment and testimony from staff, the Commission voted 4-0 to recommend the City Counciladopt a resolution approving the proposed amendment.

FISCAL IMPACT
The Economic and Community Development Department will be charging an hourly fee for these determinations in the short term. As part of the next Master Fee Schedule, staff will be adding a flat fee based on a review of the amount of time staff spent working on these applications to ensure cost recovery.

RECOMMENDATION
Consistent with the Planning Commission recommendation, staff recommends that the City Council hold a public hearing and adopt the attached Ordinance (Attachment 1) approving Zoning Text Amendment, AT-22- City Council/RSA Agenda 270 Tuesday, October 11, 2022
004 to amend Chapter 18.52, Administration, of Title 18, Zoning, to add Section 18.52.084, Public Convenience or Necessity Determination and Appeals.

Prepared by:

Natalie Dean, Associate Planner
Submitted by:

Natalie Dean, Associate Planner
ATTACHMENTS:

Description Type
Attachment 1: Draft City Council OrdinanceApproving Zoning Text Amendment,AT-22-004
Ordinance
Attachment 1 Exhibit A Exhibit
Attachment 2: Planning Commission Staff Report dated 09/15/2022 Attachment Attachment 3: Desk Itemdated 09/15/2022 Attachment
Attachment 4 Draft Planning Commission Minutes dated 09152022 Resolution Attachment 5: Drat Planning Commission Resolution Attachment Power Point Attachment
City Council/RSA Agenda 271 Tuesday, October 11, 2022
ATTACHMENT 1
ORDINANCE NO. XXX-22

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF UNION CITY APPROVING ZONING TEXT AMENDMENT, AT-22-004, TO AMEND TITLE 18, ZONING, OF THE MUNICIPAL CODE TO ADD SECTION 18.52.084, PUBLIC CONVENIENCE OR

NECESSITY DETERMINATION AND APPEALS, TO ALLOW THE ECONOMIC AND

COMMUNITY DEVELOPMENT DIRECTOR TO DETERMINE THAT PUBLIC

CONVENIENCE OR NECESSITY WOULD BE SERVED BY THE ISSUANCE OF ABC

RETAIL LICENSES FOR ALCOHOL SALES
WHEREAS, the California Constitution, Article XI, Section 7, provides cities and counties with the authority to enact ordinances to protect the health, safety, welfare, and morals of their citizens; and
WHEREAS, the City’s Zoning Ordinance (Title 18) currently regulates the uses allowed within the City.

PLANNING COMMISSION REVIEW
WHEREAS, the Planning Commission held a duly noticed public hearing on the proposed amendments on September 15, 2022, at which time all interested parties had the opportunity to be heard. The Planning Commission considered a staff report dated September 15, 2022, and all written and oral testimony, and adopted Resolution No. 12-22 recommending approval of the amendments. The staff report and resolution are incorporated herein by reference; and

CITY COUNCIL REVIEW
WHEREAS, the City Council held a duly noticed public hearing on the proposed amendments on October 11, 2022, at which time all interested parties had the opportunity to be heard. The City Council considered a staff report dated October 11, 2022, and incorporated herein by reference, the Planning Commission recommendation, and all written and oral testimony before taking action on the amendments; and
WHEREAS, the amendment to the Municipal Code proposes to amend Chapter 18.52, as shown in Exhibit A, which is attached hereto and incorporated herein by reference.

WHEREAS, no redlined version is attached as this is a new section, which includes all new text.

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

SECTION 1. Recitals. The above recitals are true and correct and made a part of this Ordinance.

SECTION 2. CEQA. Approval of the amendment is exempt from environmental review in accordance with California Environmental Quality Act Guidelines section 15061(b)(3), the general exemption for projects with no potential for significant effect on the environment.

City Council/RSA Agenda 272 Tuesday, October 11, 2022
Ordinance No. XXX-22

SECTION 3. Findings. The City Council makes the following findings in support of approving this Ordinance, based on the whole of the record before it.

1. The proposed Municipal Code Amendments are consistent with the General Plan,

2. The proposed Municipal Code Amendments are necessary and desirable to achieve the purposes of Title 18.

SECTION 4. Approval. The City Council hereby approves the amendments to the Municipal Code, more particularly, amending Chapter 18.52 and adding Section 18.52.084 as shown in attached Exhibit A, which is incorporated herein by reference and available for review in the City Clerk’s office during normal business hours.

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 City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses, or phrases be held unconstitutional, invalid, or unenforceable.

SECTION 6. 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. This Ordinance shall take effect and be enforced thirty (30) days after its adoption.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 11th day of October, 2022, by the following vote:
(Signatures on Following Page)
City Council/RSA Agenda 273 Tuesday, October 11, 2022
Ordinance No. XXX-22

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

CAROL DUTRA-VERNACI
Mayor
ATTESTED: APPROVED AS TO FORM:

ANNA M. BROWN KRISTOPHER J. KOKOTAYLO
City Clerk City Attorney
City Council/RSA Agenda 274 Tuesday, October 11, 2022
Updated

EXHIBIT A

18.52.084 Public convenience or necessity determination and appeals.

A. Applicability. Where the California Department of Alcoholic Beverage Control (ABC) has denied an application for the sale of alcoholic beverages based on an undue concentration of licenses or law enforcement criteria, a finding of public convenience or necessity (FOPCN) for alcohol beverage sales, in compliance with this section, is required. The following requirements are intended to comply with the requirements of the State of California Business and Professions Code Section 23958.4.

B. Finding of Public Convenience or Necessity (FOPCN). When the California Department of Alcoholic Beverage Control (ABC) denies an application for the sale of alcoholic beverages based upon an undue concentration of licenses or law enforcement criteria, pursuant to the State of California Business and Professions Code Section 23958.4, the Department may issue a license if the local governing body of the area in which the applicant premises are located, or its designated subordinate officer or body, which is the Economic and Community Development Director, determines within 90 days of notification of a completed application that public convenience or necessity would be served by the issuance.

All of the following findings are required for a determination that public convenience or necessity would be served by the license issuance:

1. That the proposed location of the use is in accord with the purposes of this title and the purposes of the district in which the site is located;

2. That the proposed location of the use and the conditions under which it would be operated or maintained will not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity;

3. That the proposed use is consistent with the general plan and any applicable specific plans and will comply with each of the applicable provisions of this title.

C. Noticing. Public notice is required for a determination by the Economic and Community Development Director, that public convenience or necessity would be served by the license issuance. Notice that the Economic and Community Development Director is considering a decision shall be given as follows:

1. Notice shall be given at least ten (10) calendar days before the date of the Director consideration.

2. Notice shall be mailed to the applicant and to each adjacent property owner and occupant. For the purposes of this chapter, “adjacent” means any property sharing any common line, corner or point with the subject property. Properties which are directly across the street are also considered adjacent.

City Council/RSA Agenda 275 Tuesday, October 11, 2022
Updated
D. Appeal. The Director’s decision is final unless appealed as provided in Section 18.52.085.

City Council/RSA Agenda 276 Tuesday, October 11, 2022
Agenda Item
DATE: SEPTEMBER 15, 2022
TO: PLANNING COMMISSION
FROM: CARMELA CAMPBELL, ECONOMIC, AND COMMUNITY

DEVELOPMENT DIRECTOR
SUBJECT: TEXT AMENDMENT TO TITLE 18, ZONING, OF THE UNION CITY MUNICIPAL CODE (AT-22-004)
APPLICANT: CITY OF UNION CITY
REQUEST: The proposed amendment will add Section 18.52.084, Public convenience or necessity determination and appeals, to Chapter 18.52, Administration, to allow the Economic and Community
Development Director to determine within 90 days of notification of a completed application for licensure, that public convenience or necessity would be served by the issuance of retail licenses for alcohol sales and to notify the Department of Alcoholic Beverage Control of the determination.

LOCATION: Citywide
ENVIRONMENTAL ASSESSMENT:

The project is categorically exempt per Section 15061(b)(3), the general exemption for projects with no potential for significant effect on the environment, of the California Environmental Quality Act (CEQA) Guidelines.

I. BACKGROUND & PROPOSAL
The City of Union City is seeking a Zoning Text Amendment, AT-22-004, to amend Chapter 18.52, Administration, of Title 18, Zoning, of the Union City Municipal Code.

The proposed amendment will add Section 18.52.084, Public convenience or necessity determination and appeals, to allow the Economic and Community Development Director to determine within 90 days of notification of a completed application for licensure, that public convenience or necessity would be served by the issuance of retail licenses for City Council/RSA Agenda 277 Tuesday, October 11, 2022
Planning Commission Staff Report, September 15, 2022
AT-22-004, Page 2
alcohol sales and to notify the Department of Alcoholic Beverage Control of the determination.

Any person or entity wishing to obtain an alcoholic beverage license must apply to the office of the Department of Alcoholic Beverage Control (ABC). Before opening an alcoholic beverage business, the applicant must receive approval under Section 24044 before beginning any actual work.

The ABC license application process includes applications for a new license, premises-topremises transfer, change in license privileges or ownership change (for example, transfer to a new owner, change in stock ownership or adding/dropping a partner).

1. If the business is located in a high-crime area or an area that has too many licenses (i.e., undue or over concentration), ABC will deny the license under the premise that it would not serve public convenience or necessity. In that situation, the City Council, or its designated subordinate officer or body, has 90 days to determine whether the license serves a public convenience or necessity. ABC must then be notified of the determination within the 90-day period. If there is no decision within 90 days, ABC may issue the license if the applicant demonstrates to ABC that issuance would serve public convenience or necessity.

The proposed Zoning Text Amendment will allow, pursuant to the State of California Business and Professions Code Section 23958.4, the City of Union City’s designated subordinate officer or body, in this case the Economic and Community Development Director, to make the determination whether a public convenience or necessity would be served by the issuance of an ABC license.

The proposed Zoning Text Amendment is listed in Exhibit A. No redlined version is attached as this is a new section, which includes all new text.

II. DISCUSSION
A. Permit Requirements
Any amendment to Title 18: Zoning, which changes any district regulation, general provision, exception or other regulatory provision thereof shall be made only in accordance with the procedure prescribed in Chapter 18.64 Amendments. The procedure will include an investigation and report by the Economic and Community Development Director that will be submitted to the Planning Commission. The Planning Commission will hold at least one publicly noticed hearing in accordance with the provisions of City Council/RSA Agenda 278 Tuesday, October 11, 2022
Planning Commission Staff Report, September 15, 2022
AT-22-004, Page 3
Section 18.52.082. Following the public hearing the Planning Commission shall transmit a written recommendation to the City Council.

B. Public Convenience or Necessity
When the California Department of Alcoholic Beverage Control (ABC) denies an application for the sale of alcoholic beverages based upon an undue concentration of licenses or law enforcement criteria, pursuant to the State of California Business and Professions Code Section 23958.4, the Department may issue a license if the local governing body of the area in which the applicant premises are located, or its designated subordinate officer or body, determines within 90 days of notification of a completed application that public convenience or necessity would be served by the issuance.

The impetus for the proposed amendment and update is to streamline the processing of ABC license applications. Currently, the City does not have a process in place to allow a subordinate officer or body to make the determination that public convenience or necessity would be served by the issuance of ABC license when ABC denies an application. The proposed text amendment would relieve the City Council from this duty and designate the Economic and Community Development Director as the subordinate body to make the determination. The proposed amendment will also provide findings that must be made in order to support a determination of public convenience or necessity.

In the past, the Economic and Community Development (ECD) Director made these types of determinations in areas of overconcentration within the City. Current areas of overconcentration include Union Landing and the Marketplace shopping area due to the large number of restaurants that serve alcohol. The proposed amendment is a result of staff being made aware of the requirement that the City Council would need to formally identify a designated subordinate officer or body. The proposed amendment will codify the existing practice of the ECD Director making determinations of public convenience or necessity.

Staff is proposing that all of the following findings be made for a determination of public convenience or necessity. These findings are identical to the findings required for issuance of a Use Permit and Administrative Use Permit.

1. That the proposed location of the use is in accord with the purposes of this title and the purposes of the district in which the site is located; City Council/RSA Agenda 279 Tuesday, October 11, 2022
Planning Commission Staff Report, September 15, 2022
AT-22-004, Page 4

2. That the proposed location of the use and the conditions under which it would be operated or maintained will not be detrimental to the public health, safety or welfare, or materially injurious to properties or improvements in the vicinity;

3. That the proposed use is consistent with the general plan and any applicable specific plans and will comply with each of the applicable provisions of this title.

Public notice would be required for a determination that public convenience or necessity would be served by the license issuance. No public hearing would be required. Notice that the Economic and Community Development Director is considering a decision shall be given at least ten (10) calendar days before the date of consideration and shall include, at minimum, the date the application will be considered; a description of the proposed request; and the project location.

Notice shall be mailed to the applicant and to each adjacent property owner and occupant.

The Director’s decision is final unless appealed to the Planning Commission as provided in subsection C of Section 18.52.085 of the Union City Municipal Code (UCMC).

C. Noticing & Communication
A newspaper notice for the zoning text amendment was published in the Tri-City Voice on August 30, 2022, as required by law. No public comment or feedback has been received by staff.

E. Conclusion
The proposed Zoning Text Amendment (AT-22-004) to Title 18, Chapter 18.52, of the Municipal Code will update the City’s Administration regulations. Staff recommends the Planning Commission recommend the City Council approve AT-22-004 and make the required findings as provided in Section III of this report, in support of this approval. The amendment will allow the City a process for determining if public convenience or necessity would be served by the license issuance by ABC.

The proposed Zoning Text Amendment (AT-22-002) to Title 18 of the Municipal Code will update the City’s Administration by allowing for a streamlined process that aligns with the City’s policies to provide for community-supportive uses that support the needs of Union City’s residents. The amendment also aligns with several General Plan Policies.

These include: ED-1.1, Increase Revenues, which encourages development that generates sales tax revenues to improve the City’s ability to provide the public with high-quality City Council/RSA Agenda 280 Tuesday, October 11, 2022
Planning Commission Staff Report, September 15, 2022
AT-22-004, Page 5
services and minimize future tax increases on existing businesses and residents; ED-2.1 Attract a Range of Businesses, that calls upon the City to market to a range of business types to diversify the local economy to ensure its resiliency during economic downturns; and ED-4.1 Attractive Amenities, that supports amenities that improve quality of life and attract new businesses and their employees to the city, including a variety of dining, shopping, and entertainment options that are close by.

Staff is recommending that the Planning Commission recommend to the City Council approval of the proposed amendment. The text amendment is tentatively scheduled for a first reading by the City Council on. The second reading would likely occur on, , 2022, and the provisions would become effective 30 days later.

III. REQUIRED FINDINGS
Amendments
Section 18.64.060 requires that, when considering Zoning Text Amendments, the Planning Commission shall provide a recommendation to the City Council on the following:

1. Recommendation whether the application should be granted or denied, including the reasons for the recommendation.

The text amendment should be granted. Updating processes in Chapter 18.52, Administration, by adding Section 18.52.084 that designates the Economic and Community Development Director as the subordinate body to make the determination of public convenience or necessity, supports the City’s efforts to increase sales tax revenue while protecting public health, safety, convenience and general welfare through City oversite of business selling alcohol.

2. The relationship of the application or proposal to the general plan and any applicable specific plans; and
The amendment allows for a streamlined process that aligns with the City’s policies to provide for community-supportive uses that support the needs of Union City’s residents. The amendment also aligns with several General Plan Policies. These include: ED-1.1, Increase Revenues, which states the City shall encourage development that generates sales tax revenues to improve the City’s ability to provide the public with high-quality services and minimize future tax increases on existing businesses and residents; ED-2.1, Attract a Range of Businesses, that calls upon the City to market to a range of business types to diversify the local economy to ensure its resiliency during economic downturns; and, ED-4.1, Attractive Amenities, that supports amenities that improve City Council/RSA Agenda 281 Tuesday, October 11, 2022
Planning Commission Staff Report, September 15, 2022
AT-22-004, Page 6
quality of life and attract new businesses and their employees to the city, including a variety of dining, shopping, and entertainment options that are close by.

3. Whether the change is necessary or desirable to achieve the purposes of Title 18 (included in Attachment 1).

The amendment will protect the public health, safety, convenience, and general welfare by providing a process to address determinations of public convenience or necessity. These determinations of public convenience or necessity will be based upon required findings with the intent of protecting the character and maintaining the stability of residential, business and industrial areas within the City.

IV. ALTERNATIVES

1. Recommend approval of the proposed Zoning Text Amendment to the City Council as proposed;

2. Recommend approval of the proposed Zoning Text Amendment to the City Council with stated modifications;

3. Recommend denial of the proposed Zoning Text Amendment to the City Council, stating reasons for denial;

4. Continue the matter for further consideration.

V. RECOMMENDATION
Staff recommends that the Planning Commission recommend approval of Zoning Text Amendment (AT-22-004) to the City Council based on the following specific findings:

1. That the Zoning Text Amendment is categorically exempt per Section 15061(b)(3), the general exemption for projects with no potential for significant effect on the environment, of the California Environmental Quality Act (CEQA) Guidelines; and

2. That the text amendment should be granted. Updating processes in Chapter 18.52, Administration, by adding Section 18.52.084 that designates the Economic and Community Development Director as the subordinate body to make the determination of public convenience or necessity, supports the City’s efforts to increase sales tax revenue while protecting public health, safety, convenience, and general welfare through City oversite of business selling alcohol; and

3. That the relationship of the application or proposal to the general plan and any applicable specific plans allows for a streamlined process that aligns with the City’s policies to provide for community-supportive uses that support the needs City Council/RSA Agenda 282 Tuesday, October 11, 2022
Planning Commission Staff Report, September 15, 2022
AT-22-004, Page 7
of Union City’s residents. The amendment also aligns with several General Plan Policies. These include: ED-1.1, Increase Revenues, which states the City shall encourage development that generates sales tax revenues to improve the City’s ability to provide the public with high-quality services and minimize future tax increases on existing businesses and residents; ED-2.1, Attract a Range of Businesses, that calls upon the City to market to a range of business types to diversify the local economy to ensure its resiliency during economic downturns; and, ED-4.1, Attractive Amenities, that supports amenities that improve quality of life and attract new businesses and their employees to the city, including a variety of dining, shopping, and entertainment options that are close by.

4. That the proposed Zoning Text Amendment is necessary and desirable to achieve the purposes of Title 18; the amendment will protect the public health, safety, convenience, and general welfare by providing a process to address determinations of public convenience or necessity. These determinations of public convenience or necessity will be based upon required findings with the intent of protecting the character and maintaining the stability of residential, business, and industrial areas within the City.

It is further recommended that the Planning Commission adopt a Resolution confirming this action.

City Council/RSA Agenda 283 Tuesday, October 11, 2022
Planning Commission Staff Report, September 15, 2022
AT-22-004, Page 8
Prepared by
Natalie Dean, Associate Planner
Attachments
Exhibit A: Zoning Text Amendments
Attachment 1: Purpose of Title 18
City Council/RSA Agenda 284 Tuesday, October 11, 2022
ATTACHMENT 1
Chapter 18.04 - General Provisions

18.04.020 Purpose
The purpose of this title is to bring into reality the proposals of the General Plan and to accomplish the following:

A. To promote and protect the public health, safety, morals, comfort, convenience and the general welfare of the people;
B. To divide the City into zones and districts restricting and regulating therein the location, construction, reconstruction, alteration and use of buildings, structures and land for residence, business, industrial and other specified uses;
C. To protect the character and maintain the stability of residential, business and industrial areas within the City, and to promote the orderly and beneficial development of such areas; D. To encourage the provision of a variety of housing types and prices to meet the needs of all economic segments of the City, and to provide adequate light, air, privacy and convenience of access to property;
E. To regulate the intensity of use of zoning lots, and to determine the area of open spaces surrounding buildings necessary to provide adequate light and air and protect the public health; F. To establish the building lines and the location of buildings designed for residential, business, industrial, or other uses within such lines;
G. To fix reasonable standards to which buildings and building additions shall conform, and to promote and encourage energy-conserving measures for residential, commercial, and industrial structures consistent with improving and maintaining standards of good design and appearance as set forth in this title;
H. To prohibit uses, buildings or structures which are incompatible with the character of development of the permitted uses within specified zoning districts;
I. To prevent such additions to, and alterations or remodeling of, existing buildings or structures as would not comply with the restrictions and limitations imposed under this title; J. To limit congestion in the streets and so protect the public health, safety, convenience and general welfare by providing for off-street parking of motor vehicles and for the loading and unloading of commercial vehicles;
K. To provide protection against fire, explosion, noxious fumes and other hazards in the interest of the public health, safety, comfort and general welfare;
L. To prevent the overcrowding of land and undue concentration of structures, so far as is possible and appropriate in each district, by regulating the use and the bulk of buildings in relation to the land surrounding them;
M. To conserve the taxable value of land and buildings throughout the City; N. And to define and limit the powers and duties of the administrative officers and bodies as provided in this title.

City Council/RSA Agenda 285 Tuesday, October 11, 2022
Desk Item
DATE: SEPTEMBER 15, 2022
TO: PLANNING COMMISSION
FROM: CARMELA CAMPBELL, ECONOMIC AND COMMUNITY

DEVELOPMENT DIRECTOR
SUBJECT: TEXT AMENDMENT TO TITLE 18, ZONING, OF THE UNION CITY MUNICIPAL CODE (AT-22-004)
Staff received questions/comments from Planning Commissioner Jo Ann Lew regarding the proposed amendment. The following are the questions received and staff’s responses (in red italics). Staff is also proposing a few minor updates to the draft wording. Attached to this Desk Item is an updated version of the proposed amendments (Exhibit A and Exhibit B for redline). These updated amendments should be referenced when making any motion to recommend approval to the City Council.

Commissioner Lew Comments

1. Staff report, page 3, Section B, 3rd para., the first sentence states the ECD Director has made “these types of determinations in areas of overconcentration within the City.” What was the investigative process that the ECD Director used as the basis for his/her determinations and what were the past findings required for approval? The prior determinations were focused on the City’s major commercial areas, including Union Landing, Four Corners shopping area (i.e., located at Dyer Street and Alvarado Blvd.), and the Market Place shopping area (i.e., located at Decoto Road and Alvarado-Niles Road) and were typically for restaurants who wanted to sell alcohol. The investigative process included a review to determine if the business was in good standing including having a business license. Police Department staff were also consulted for their feedback regarding any security concerns. No formal findings were made in those prior determinations and no referrals were made to the City Council.

2. Staff report, page 3, Section B, 3rd para., the second sentence refers to Union Landing and the Marketplace shopping areas as “areas of overconcentration within the City.” City Council/RSA Agenda 286 Tuesday, October 11, 2022
Will this amendment apply City-wide or only to shopping centers? Will this amendment apply to all businesses—restaurants and bars, supermarkets, neighborhood liquor stores adjacent to residential neighborhoods, and beer and wine stores, for example—in the respective zoning districts where they are allowed and located? Please clarify.

The amendment will apply in all zoning districts, which allow uses that sell alcohol.

3. Under the proposed text amendment, will a business that was denied an ABC license to sell alcohol be required to submit an application to the City of Union City in order to request that a Finding of Public Convenience or Necessity be submitted to the ABC on their behalf? If so, please describe, in full, the City’s application process and what additional information must also be provided. Also confirm whether the investigative process currently used will remain unchanged after approval of the proposed text amendment.

Regarding the scenario listed above, an application will be required to be submitted to the City requesting a “Public Convenience or Necessity (PCN)” determination. In terms of process, the application will be submitted to the Planning Department and will be accompanied by the required filing fee along with any other required materials including the ABC Form that the City would need to sign off on in the event of a favorable PCN determination. Since this type of review was never formalized previously, staff is looking into what, if any, additional materials may need to be submitted. It is anticipated that there would be a similar internal review process as before. However, Planning staff will be working with Police Department staff regarding any suggestions for improvements. On a related note, along with the proposed amendment, the City Council will be reviewing an update to the Master Fee Schedule to add a review fee for this process of $1,149, which is the same as the fee for a Zoning Administrator Written Interpretation.

City Council/RSA Agenda 287 Tuesday, October 11, 2022
ATTACHMENT 4 Attachment 4
1 PLANNING COMMISSION MINUTES SEPTEMBER 15, 2022

CITY OF UNION CITY

MINUTES FOR THE REGULAR PLANNING COMMISSION MEETING
ON THURSDAY, SEPTMBER 15, 2022, 7:00 P.M.

IN THE COUNCIL CHAMBERS OF CITY HALL
34009 ALVARADO-NILES ROAD
UNION CITY, CA 94587

AND VIA TELECONFERENCE
DRAFT

1. ROLL CALL: Vice Chairperson Lee Guio; Commissioner JoAnn Lew; Commissioner Seyi Mclelland; Commissioner Scott Sakakihara

2. STAFF: Carmela Campbell (Economic & Community Development Director); Shandyn Pierce (Acting Deputy City Attorney); Natalie Dean (Associate Planner); Brandon H DeLucas (Associate Planner); Denisse Anzoategui (Administrative Assistant III)

3. APPROVAL OF MINUTES:

The regular Planning Commission minutes of August 18, 2022 and September 1, 2022 were approved as submitted.

Commissioner Lew asked if Staff attach Exhibits A and B as well as any Desk Items prepared to the minutes.

Ms. Anzoategui assured Commissioner Lew that all items would be kept together and submitted as part of the public record.

4. ORAL COMMUNICATIONS: None.

5. WRITTEN COMMUNICATIONS: None.

6. PUBLIC HEARINGS:

A. CONTINUED HEARINGS:

1. YALDA AND ELYAS MOJADDIDY, 388 APPIAN WAY (087-0038-024), ADMINISTRATIVE SITE DEVELOPMENT REVIEW (ASD-22-009), AND USE PERMIT (UP-22-002): The applicants, Yalda and Elyas Mojaddidy, are seeking approvals to construct an approximately 2,740 square-foot, two-story residence with an attached 456 square-foot garage on a vacant lot within the RS-6000 Zoning District and Hillside (H) Combining District. Staff is recommending that this project be considered categorically City Council/RSA Agenda 288 Tuesday, October 11, 2022
ATTACHMENT 4 Attachment 4
2 PLANNING COMMISSION MINUTES SEPTEMBER 15, 2022
exempt per Section 15303, New Construction or Conversion of Small Structures, of the California Environmental Quality Act (CEQA) Guidelines.

Ms. Campbell introduced the project and Mr. Shandyn Pierce representing the City Attorney’s Office from Meyers Nave.

Brandon H DeLucas, Associate Planner, presented the staff report and shared a Desk Item that was prepared in response to questions submitted by Commissioner Lew.

Commissioner Mclelland commended the work of the architects of the building as it looks good, with a very simple and elegant design. Commissioner Mclelland stated that she looked forward to seeing it. Commissioner Mclelland referred to the Arborist report that would be coming at some point and asked when the Public Works Department would know if a tree replacement would be required.

Mr. DeLucas replied that the City Engineer will review that as part of his grading and drainage permit application. Mr. DeLucas added that he will look at the conditions of the trees and determine an appropriate valuation of the trees and then determine whether to replace them on site and if they can’t pay the fee. Mr. DeLucas added that it is always determined at the grading and draining permit application process.

Commissioner Sakakihara thanked staff for the report and Desk Item. Commissioner Sakakihara asked staff to explain the relationship between the previous Geotechnical report that the Commission had reviewed and soils report in Attachment 1 of the staff report.

Mr. DeLucas replied that Attachment 1 is the soil’s report and that is focused more on the actual soil of the site. Mr. DeLucas added that the other report was debunking that they did trenching to determine that the fault trace wasn’t there. Mr. DeLucas also explained that Attachment 2 is the engineer reaffirming that the two reports do coincide that they don’t contradict and that the determination in his soils report is consistent with the geological investigation. Mr. DeLucas also noted that the incorrect address was referenced as it was supposed to say 379 Appian, and they will be updating the report when they resubmit as part of their building and grading permits.

Commissioner Sakakihara thanked Mr. DeLucas for the explanation. Commissioner Sakakihara stated that he didn’t know why he was having so much trouble understanding the right of way piece and noted that it looked like they meet more of the minimum setbacks and asked if they expand the amount of space, they have what would the adjustment they would need to make.

Commissioner Sakakihara noted that they would be farther away from the bottom line.

Mr. DeLucas replied yes, and the front and rear setback stays the same. Mr. DeLucas added that it is really the side setback, which in the district is 10% of the average lot width. Mr.

DeLucas added that with them buying the property it will increase the lot width and therefore would also increase the side setbacks and would need to adjust it over. Mr. DeLucas added that it would be roughly estimated that they would probably have to have about an eight-foot setback. Mr. DeLucas also added that of course it will be confirmed if they do purchase the property and staff receives the new lot dimensions. Mr. DeLucas noted that they have plenty of room on the left size and once they buy, they can readjust the building towards the middle, and they should be able to meet the setbacks on both sides.

City Council/RSA Agenda 289 Tuesday, October 11, 2022
ATTACHMENT 4 Attachment 4
3 PLANNING COMMISSION MINUTES SEPTEMBER 15, 2022
Commissioner Sakakihara replied that he understood and added that it is because the right of way does not stretch across the whole property and is just the little corner. Commissioner Sakakihara noted that it does not provide the full buffer.

Mr. DeLucas replied yes.

Commissioner Sakakihara asked if there is any connection between these two properties that they are re-using some of the same report since they are so close together.

Mr. DeLucas replied that there is no connection, and they are two separate property owners with two different applicants. Mr. DeLucas noted that it was only that the report for 379 Appian debunked the fault trace that affected several properties.

Commissioner Sakakihara noted that there are a couple of other vacant lots and asked if Mr.

DeLucas could foresee those coming before the Commission.

Mr. DeLucas replied yes and with the Use Permit requirement, those who choose to develop would be coming back with the same process that they have done for the two homes.

Commissioner Lew thanked Mr. DeLucas and Ms. Campbell for working on the Desk Item that was prepared that evening. Commissioner Lew acknowledged that it takes a lot of time to answer some of these questions. Commissioner Lew noted that she was really confused by the report, but she was glad things were straightened out. Commissioner Lew mentioned that she was up there a day earlier and met Mr. and Mrs. Mojadiddy and noted that they are extremely nice, and they are the kind of people that anyone would love to have as neighbors.

Commissioner Lew wished them much luck and success with the building of their new home.

Vice Chairperson Guio noted that he was a little bit concerned about the size of the home compared to the others, but it looks like it is roughly the same. Vice Chairperson Guio noted that on the Arborist report there was four versus five trees and asked where the fifth tree was and if it was someplace in the report.

Mr. DeLucas replied that it will be in the report. Mr. DeLucas referred to a slide in the presentation and noted that the details did not come through very clearly. Mr. DeLucas noted that the Arborist report was done at an earlier stage, and they must adjust the building over for setbacks and so that added an additional tree. Mr. DeLucas added that it is one of the trees located at the bottom of the slide and L-1 of the project plans showed the trees. Mr. DeLucas identified the trees that would be removed and noted that they were labeled as orange in the arborist report.

Vice Chairperson Guio noted that he wanted to see a call out for fencing.

Mr. DeLucas confirmed there were fence details on Sheet A-2 on the project plans. Mr.

DeLucas noted that the addition of the sheet was in response to one of the comments provided by Commissioner Lew before the Item was continued.

Vice Chairperson Guio noted that in some of the projects that they have seen the drainage is out into the street and that in this one the drainage is out into the street and down. Vice Chairperson Guio asked if that is a difference in regulation.

Farooq Azim, City Engineer replied that it is the same regulation, and the idea is that the water needs to come out to the front of the property and not go to the adjacent property owners.

City Council/RSA Agenda 290 Tuesday, October 11, 2022
ATTACHMENT 4 Attachment 4
4 PLANNING COMMISSION MINUTES SEPTEMBER 15, 2022
Vice Chairperson Guio replied that he understood that, but he was thinking that in some of the properties that he has been they must put in a sunken area where water is capture and then filtered. Vice Chairperson Guio noted that he thought there was some change in requirements of California regulations that required water to be maintained within a particular property. Vice Chairperson Guio noted that he also realizes that there is a slope issue and water would drain in the front.

Mr. Azim noted that Vice Chairperson Guio was referring to the clean water program for bigger projects. Mr. Azim explained that they treat the water and sometime put it in rain gardens or biotreatment areas right before they allow them to escape into the street, but it is not a requirement for a single-family home. Mr. Azim added that they still encourage them to put it in what’s called a dry well which is where all the water goes in a structure located toward the front of the house which is basically a big hole with a cover and water can get in there and infiltrate as much as possible then can overflow in the street.

Mr. DeLucas explained that the applicant is doing one of the recommended proposals which would mean that all of the downspouts will go into a trench system and go to a buried dispersal area in the front yard. Mr. DeLucas added that they are trying but are constrained by a small site for a single-family home.

Vice Chairperson Guio noted the stone wainscoting coming around the front but asked if staff had any graphical images of what it would look like.

Mr. DeLucas showed detail elevations of the plan and identified where the stone accent would be located.

Vice Chairperson Guio opened the public comment.

Yalda Mojadiddy, 730 Appian Way, Union City, CA 94587, thanked Mr. DeLucas for his time, professionalism and added that specifically he was very detail oriented, and his patience helped them get their project along. Ms. Mojadiddy also thanked the Commissioners for their time and expertise to come together to bring their dream home into reality. Ms. Yalda explained that she has lived on the block since 2003, graduated from Logan, and got married and had three kids and began living next to her parents when she started working remotely and needed their help.

Ms. Mojadiddy explained that when they began the design phase of the project, they wanted to go with a design that matched the neighborhood and felt like a colonial Georgian model that would suit the neighborhood the best. Ms. Mojadiddy stated that she was happy to answer any questions along with the architect that was in attendance.

The Commissioner had no further questions.

Vice Chairperson Guio closed the public comment.

Commissioner Lew moved that the Planning Commission approve Administrative Site Development Review (ASD-22-009) and Use Permit (UP-22-002) incorporating the new and modified conditions in the Desk Item, and making the specific finding as modified by the Desk Item, in support of the approval and adopt a resolution confirming this action.

Commissioner Sakakihara seconded.

The motion was carried by the following roll call vote:

City Council/RSA Agenda 291 Tuesday, October 11, 2022
ATTACHMENT 4 Attachment 4
5 PLANNING COMMISSION MINUTES SEPTEMBER 15, 2022
AYES: (GUIO, LEW, MCLELLAND, SAKAKIHARA)
NOES: NONE
ABSTAIN: NONE
ABSENT: MANN
The motion passes 4-0.

B. NEW HEARINGS:

1. CITY OF UNION CITY, ZONING TEXT AMENDMENT AT-22-004: The City of Union City is proposing to add Section 18.52.084, Public Convenience or Necessity Determination and Appeals, to Chapter 18.52, Administration, to allow the Economic and Community Development Director to determine that public convenience or necessity would be served by the issuance of retail licenses for alcohol sales. Staff is recommending that this project be considered categorically exempt per Section 15061(b)(3), the general exemption for projects with no potential for a significant effect on the environment, of the California Environmental Quality Act (CEQA) Guidelines.

Natalie Dean, Associate Planner, presented the staff report.

Commissioner Mclelland asked what the approval process was before.

Ms. Dean explained that Alcohol Beverage Control (ABC) will send the City notice, specifically the Planning Division, when they deny an application for a license to sell alcohol. Ms. Dean added that the denial is generally done when there is an over concentration, and they go to the Police Department and find out more information about problems in that area and whether they would allow alcohol to be sold. Ms. Dean added that it could be in an area that has high crime or a history of a lot of visits from the police or have had a lot of problems where the police might have been called to the scene.

Commissioner Mclelland asked how the proposal helps streamline the process.

Ms. Dean replied that the current requirement is that the City Council would make the determination and that would require putting a hearing on the calendar for this to be heard by a City Council. Ms. Dean added that by streamlining the process the request would go to the Economic & Community Development Director and then she can make the findings to whether the license for alcohol sales would serve the community.

Carmela Campbell, Economic & Community Development Director added that the City was not aware of this requirement in State law and that the City Council was supposed to be making determinations on public convenience or necessity. Ms. Campbell added that they can designate a subordinate so when the City Attorney notified the City, staff decided to come forward with this. Ms. Campbell also added that they haven’t had any of these determinations since she has been the Economic & Community Development Director, and the City saw more when the Union Landing Shopping Center began to fill in. Ms. Campbell added that this was due to the restaurants that sell beer and wine and liquor being in the same census track and further added these are the typical types of determinations that the ECD Director previously provided feedback on. Ms. Campbell added that it hasn’t come up lately but when this was brought to City Council/RSA Agenda 292 Tuesday, October 11, 2022
ATTACHMENT 4 Attachment 4
6 PLANNING COMMISSION MINUTES SEPTEMBER 15, 2022
their attention staff thought it would be good to get its’ ducks in a row so when they do receive one, there is a process in place.

Commissioner Mclelland stated she was going to ask about how many applications they get a year and added perhaps before COVID as those number may have been impacted.

Ms. Campbell replied that it is quite low because her understanding is that once a location gets a beer and wine license and a new restaurant moves in, they just transfer it, and they don’t need to do a second public convenience or necessity. Ms. Campbell noted that when Union Landing, the Four Corners, or the Safeway Marketplace area started getting more restaurants then when the centers originally developed, such as a dry cleaners turning into restaurants, they saw an increase as well. Ms. Campbell noted that the City does not necessarily anticipate many coming in, but it is important to have the regulations in place.

Commissioner Sakakihara asked if there are standards that ABC uses to decide that there is a high crime or over concentration, and if they will deny it presumptively unless Union City comes back and says that it is ok. Commissioner Sakakihara asked if those objectives are known.

Commissioner Sakakihara noted that in theory when a place would apply for a license the City would already know whether it was going to get rejected by ABC.

Ms. Dean replied that they are objective, and it is proportional. Ms. Dean added that the proportion of licenses to population is larger than the proportion to of licenses to population in the city, ABC will deny it. Ms. Dean added that it goes for crimes and licenses, as well.

Commissioner Sakakihara noted that it was a similar situation for the Christmas tree lots but asked how the City found out there was a requirement that wasn’t tracked before.

Ms. Campbell replied that they received a request from a business who thought that they may be subject to this which caused staff to start thinking about the protocols in place. Ms. Campbell also noted that the Department has new staff from other jurisdictions who were knowledgeable in the area. Ms. Campbell added that at some point they’ll see one come in.

Commissioner Sakakihara remarked that the Planning Commission would not be reviewing it.

Ms. Campbell replied yes and noted that it wouldn’t seem like a good use of anyone’s time to bring that all the way up to City Council. Ms. Campbell also noted that there is the appeal process, which then would go to the City Council.

Commissioner Lew thanked Ms. Dean for preparing the Desk Item. Commissioner Lew explained that she is all about the process and that the City is a bureaucratic organization, and she loves bureaucracy because of the structure. Commissioner Lew asked for clarification regarding a slide where it was mentioned that the applicant shows the ABC issuance would serve a public convenience or necessity, and if ABC rejects an application, then how does the applicant show that the ABC issuance would serve the public convenience. Commissioner Lew asked if it is after the City has demonstrated or made the finding.

Ms. Dean replied that it is her understanding that if they send the notice and the City does not respond, then the applicant can try themselves to prove that it would serve a public convenience or necessity.

Commissioner Lew replied that it was interesting and asked why they don’t let the process run its course with the 90-day timeframe.

City Council/RSA Agenda 293 Tuesday, October 11, 2022
ATTACHMENT 4 Attachment 4
7 PLANNING COMMISSION MINUTES SEPTEMBER 15, 2022
Ms. Campbell replied it is ABC’s preference is to have a local jurisdiction weigh in and have a process in place.

Commissioner Lew replied that it was interesting.

Ms. Campbell replied that in case a City is busy or they can’t get to it in that they want to provide due process to the business owner.

Commissioner Lew asked that after the ABC forwards the rejection to the local jurisdiction who takes the next step. Commissioner Lew asked if Union City will contact the applicant or if they will wait for the applicant to come to the City to fill out the application and submit all the paperwork.

Ms. Campbell replied that she had seen it done differently but, in her experience, she recalled that it was the business owner coming in as soon as they got the letter asking the City to sign it off.

Commissioner Lew asked that instead of signing off the letter they would require the applicant to go through a process where they must fill out an application, submit paperwork, and then the City would investigate. Commissioner Lew added that if it looks good including approval from the Police Department then the director will make the findings and then issue a letter of approval.

Ms. Campbell replied yes and that they would issue a letter and then sign off the form.

Commissioner Lew asked if the applicant would then take it to ABC and that the City would not be required to work with ABC.

Ms. Campbell confirmed that the City would not have to coordinate with ABC and once they are provided with their form they would be sent on their way.

Commissioner Lew stated that it just needs to be clarified, and since the City is going through the clarification process, it would be nice to put it in writing, not necessarily in the code but as instructions to people who come to the front desk and need to know. Commissioner Lew stated that it was great and would help a lot of people. Commissioner Lew stated that while she didn’t want to see a lot of places selling alcohol but understood that it is part of a meal and some people can’t get by without wine or beer.

Ms. Campbell added that she has seen in jurisdictions where they weigh these determinations a little more heavily is when you have a downtown and you have several bars and another bar comes in, Ms. Campbell added that’s when she has seen jurisdictions really start to scrutinize the types of applications and they don’t have as much of an issue with that in Union City.

Commissioner Lew stated that she was glad that staff would contact the Police Department as their feedback is very important on this issue especially because they will be the ones on the other end and could end up chasing people who are driving drunk and things like that.

Ms. Campbell replied that they could inform staff if there is potential for crime issues associated with the center and if an additional license could influence that.

Commissioner Lew stated that she did not think it was fair to deny a restaurant or bar the opportunity to try to get a license when everyone around them has legal licenses. Commissioner Lew added that everyone should be treated fairly and given the opportunity to succeed.

City Council/RSA Agenda 294 Tuesday, October 11, 2022
ATTACHMENT 4 Attachment 4
8 PLANNING COMMISSION MINUTES SEPTEMBER 15, 2022
Commissioner Lew added that it is also money for the City and that she is very pro-economic development, and they should take that all into consideration.

Vice Chairperson Guio noted that in the past he has been involved in events where he obtains a single day license and asked if it would be separate from this process.

Ms. Campbell replied yes and added that it was separate.

Vice Chairperson Guio asked if there is a length to the license, or if it is in perpetuity, or does it have to be renewed.

Ms. Dean replied that the only licenses that would come in would be if someone was to transfer their license to a different location or if they’re opening a restaurant, bar, or grocery store that is proposing to sell alcohol.

Ms. Campbell added that she believed that the permits run with the business but would obtain renewals through ABC.

Vice Chairperson Guio asked who makes the determination of the identified high crime and high license areas. Vice Chairperson Guio asked if those determinations change over time. Vice Chairperson Guio asked if Union Landing is counted as a whole or if different areas have their own determination.

Ms. Dean replied that ABC decides by census tract or crime reporting districts.

Ms. Campbell added that Union Landing is one census track.

Vice Chairperson Guio replied that there are set numbers and percentages that determine if an area is considered high crime or high concentration.

Ms. Dean added that they use an objective procedure to determine whether it’s over concentrated with licenses or crime.

Vice Chairperson Guio explained that he was reading Exhibit A which said something to the effect that if an applicant can be denied by ABC, then they go to the City and the City approves and then they would go to ABC with an approval but going back to ABC with the approval would not guarantee a license.

Ms. Dean replied that this is based upon what the business and professions code allow for. Ms.

Dean added that ABC uses their own procedures, but this proposed text amendment is based upon the understanding that a council or a designated subordinate can make the finding that it will serve a public convenience or necessity. Ms. Dean stated that she was unsure what ABC would do from there and would have to find the answer for the Commission.

Mr. DeLucas replied that over concentration is just one of the criteria that ABC considers. Mr.

Delucas added because that is the major one, ABC wants an answer to that first and then they will look at the rest of their requirements. Mr. DeLucas listed some of those requirements such as owners cannot have felony convictions within X number of years, and they must pass health inspections. Mr. DeLucas added that it is not a guarantee just because it is approved by the City.

Vice Chairperson Guio thanked staff for the clarification.

Vice Chairperson Guio opened and closed the public hearing.

City Council/RSA Agenda 295 Tuesday, October 11, 2022
ATTACHMENT 4 Attachment 4
9 PLANNING COMMISSION MINUTES SEPTEMBER 15, 2022
Ms. Campbell reminded the Planning Commission of the minor update to the motion to reflect the updated Exhibit A attached to the Desk Item.

Commissioner Sakakihara moved that the Planning Commission recommend approval of Zoning Text Amendment (AT-22-004) to the City Council, and making the specific findings as listed in the staff report and updated in the Desk Item, in support of the recommendation of approval, and adopt a resolution confirming this action.

Commissioner Lew seconded.

The motion was carried by the following roll call vote:

AYES: (GUIO, LEW, MCLELLAND, SAKAKIHARA)
NOES: NONE
ABSTAIN: NONE
ABSENT: MANN
The motion passes 4-0.

7. SUPPLEMENTAL STAFF REPORTS:

A. CONTINUED HEARINGS: None.

B. NEW REPORTS: None.

8. ECONOMIC DEVELOPMENT REPORTS: None.

9. COMMISSION MATTERS:

A. Follow-up on Planning Commission referrals to the City Council.

Ms. Campbell reported that City Council reviewed the ordinance for the Zoning Text Amendments that were previously seen by the Planning Commission and included residential updates and the seasonal sale lots. Ms. Campbell noted that they have a second reading scheduled for the following City Council meeting. Ms. Campbell also noted that they received a report on the Objective Standards that the Planning Commission also received.

B. Upcoming applications for the Regular Planning Commission meeting for October 6, 2022.

Ms. Campbell informed the Planning Commission that on October 6, 2022 they will review the Station District Specific Plan as well as the Final Environmental Impact Report (FEIR). Ms.

Campbell stated that the Commission had a Study Session last June where it reviewed the Station District Specific Plan and Draft EIR.

10. GOOD OF THE ORDER:

City Council/RSA Agenda 296 Tuesday, October 11, 2022
ATTACHMENT 4 Attachment 4
10 PLANNING COMMISSION MINUTES SEPTEMBER 15, 2022
Commissioner Lew announced that Nuvera homes in the 511 District have begun grading.

Commissioner Lew encouraged the Commission to visit and check out what they have started.

Commissioner Lew added that she loves the sound of construction, but she was concerned about the children that were playing around Seabreeze Park as there was a lot of dust flying around.

Ms. Campbell informed the Planning Commission of the Nuvera Homes project, located in the 511 area on the west side of the City along the bay next to the former Turk Island Landfill. Ms.

Campbell added that the site the project is being constructed on was an adjunct of the Turk Island landfill and then it was backfilled with clean dirt. Ms. Campbell added that 36 new singlefamily home have been approved as well as some related improvements to Sea Breeze Park.

Vice Chairperson Guio noted upcoming events around the City including Our Lady of the Rosary Festival, The Peace Walk at Lake Elizabeth, and the Stop the Bleed Training hosted at the CERT Building.

11. ADJOURNMENT: 8:17 PM
City Council/RSA Agenda 297 Tuesday, October 11, 2022
ATTACHMENT 12-22

PLANNING COMMISSION RESOLUTION NUMBER

RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF UNION CITY

RECOMMENDING APPROVAL TO THE CITY COUNCIL OF ZONING TEXT AMENDMENT, AT-22-004, TO AMEND CHAPTER 18.52, ADMINISTRATION, OF TITLE 18, ZONING, OF THE UNION CITY MUNICIPAL CODE, ADDING SECTION 18.52.084,

PUBLIC CONVENIENCE OR NECESSITY DETERMINATION AND APPEALS, TO

ALLOW THE ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR TO

DETERMINE THAT PUBLIC CONVENIENCE OR NECESSITY WOULD BE SERVED

BY THE ISSUANCE OF ABC RETAIL LICENSES

WHEREAS, the California Constitution, Article XI, Section 7, provides cities and counties with the authority to enact ordinances to protect the health, safety, welfare, and morals of their citizens; and
WHEREAS, the City of Union City is proposing Zoning Text Amendment, AT-22- 004, to amend Chapter 18.52, Administration, of Title 18, Zoning, of the Union City Municipal Code to add Section 18.52.084, Public Convenience or Necessity Determination (PCN) and Appeals, to allow the Economic and Community Development Director to determine within 90 days of notification of a completed application for licensure, that public convenience or necessity would be served by the issuance of ABC retail licenses for alcohol sales; and
WHEREAS, on September 15, 2022, the Planning Commission held a duly noticed public hearing to consider the proposed zoning text amendment, receive the staff report and staff presentation, and discuss the matter; and
WHEREAS, the amendment to Title 18 is shown in Exhibit A, which is attached and incorporated herein by reference.

NOW, THEREFORE, BE IT RESOLVED, that the foregoing recitals are true and correct and made a part of this Resolution.

BE IT FURTHER RESOLVED that the Planning Commission of the City of Union City hereby recommends approval of Zoning Text Amendment, AT-22-004, as shown in Exhibit A, to the City Council, and does hereby find as follows:

1. That the proposed Zoning Text Amendment is categorically exempt per Section15061(b)(3), the general exemption for projects with no potential for significant effect on the environment, of the California Environmental Quality Act (CEQA) Guidelines; and
City Council/RSA Agenda 298 Tuesday, October 11, 2022
4 Planning Commission Reso #12-22
AT-22-004, Zoning Text Amendments

2. That the proposed Zoning Text Amendment is consistent with the General Plan, including Policy ED-1.1, Increase Revenues, which states the City shall encourage development that generates sales tax revenues to improve the City’s ability to provide the public with high-quality services and minimize future tax increases on existing businesses and residents; ED-2.1, Attract a Range of Businesses, that calls upon the City to market to a range of business types to diversify the local economy to ensure its resiliency during economic downturns; and, ED-4.1, Attractive Amenities, that supports amenities that improve quality of life and attract new businesses and their employees to the city, including a variety of dining, shopping, and entertainment options that are close by; and

3. That the proposed Zoning Text Amendment is necessary and desirable to achieve the purposes of Title 18. The amendment will protect the public health, safety, convenience, and general welfare by providing a process to address determinations of public convenience or necessity. These determinations of public convenience or necessity will be based upon required findings with the intent of protecting the character and maintaining the stability of residential, business and industrial areas within the City.

City Council/RSA Agenda 299 Tuesday, October 11, 2022
4 Planning Commission Reso #12-22
AT-22-004, Zoning Text Amendments

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 September 15, 2022, by the following vote:

AYES 4
NOES 0
ABSTAIN 0
ABSENT 0
MOVED: Commissioner
SECONDED: Commissioner

APPROVED

HARPAL MANN, CHAIRPERSON
ATTEST:

CARMELA CAMPBELL, SECRETARY
City Council/RSA Agenda 300 Tuesday, October 11, 2022
Item 6.a.

AT-22-004 – Add "Public Convenience or
Necessity Determination and Appeals" to Chapter 18.52, Administration, of the Municipal Code City Council/RSA Agenda 301 Tuesday, October 11, 2022
2 •Any person or entity wishing to sell alcohol must apply to the State Department of Alcoholic Beverage Control (ABC) •ABC will deny the license if the business is in a high-crime area or area with too many licenses (i.e., undue or over concentration) Background
City Council/RSA Agenda 302 Tuesday, October 11, 2022
3 Background
Public Convenience or Necessity Determinations
• After denial by ABC, license may still be issued if local governing body, or its designated subordinate officer or body, determines that public convenience or necessity (PCN) would be served by issuance
• Staff recently determined that City Council is required to make PCN determinations or need to formally designate asubordinate officer or body • Proposed amendment will codify the existing practice of the ECD Director making PCN determinations
City Council/RSA Agenda 303 Tuesday, October 11, 2022
4 Chapter 18.52 - Proposed Zoning Amendment

18.52.084 Public convenience or necessity determination andappeals. • Applicability- applies when ABC denies an application•Finding of Public Convenience of Necessity- Findings identical to UP and AUP approvals:
• That proposed location of the use is in accord with the purposes of Title 18 the district in which the site is located;
• That proposed location of the use and the conditions under which it would be operated/maintained will not be detrimental to public health, safety or welfare, or materially injurious to properties in thevicinity; • That proposed use is consistent with General Plan and any applicable specific plans and will comply with each of the applicable provisions of Title 18.
• Noticing -10 calendar days before Director determination; notice provided to adjacent properties • Appeal - Decision is final unless appealed to PC
City Council/RSA Agenda 304 Tuesday, October 11, 2022
5 Planning Commission Review
• Planning Commission held a public hearing on September 15, 2022, to consider AT-22- 004 and voted 4-0 to recommend approval to the City Council • Desk Item prepared, which clarified:
• Approval process used in the past• New approval process going forward• Districts where the ordinance would apply (which is all districts where alcohol is sold) • Minor updates proposed by staff to the draft text amendment City Council/RSA Agenda 305 Tuesday, October 11, 2022
6 Recommendation
Consistent with the Planning Commission recommendation, staff recommends the City Council make the following motion:• Move that the City Council hold a public hearing and introduce the attached Ordinance approving Zoning Text Amendment AT-22-004 City Council/RSA Agenda 306 Tuesday, October 11, 2022
Agenda Item
DATE: 10/11/2022
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CARMELA CAMPBELL, ECONOMIC AND COMMUNITY

DEVELOPMENT DIRECTOR
SUBJECT: ACCEPT A REPORT ON THE OPPORTUNITIES AND CHALLENGES OF

THE ECONOMIC DEVELOPMENT PROGRAM
As a primary goal of the Strategic Plan, the City Council and staff have focused on strategies to strengthen fiscal stability and address the General Fund’s long-term structural deficit. Management Partners was engaged to assess the City’s current economic development practices, challenges, and opportunities. See Attachment 1 for the analysis titled Opportunities and Challenges of the Economic Development Program (Report). The Economic Development Advisory Team (EDAT) reviewed the Report at their July meeting and recommended the report be presented to the City Council for consideration and support for the recommendation.

STRATEGIC PLAN ALIGNMENT
This agenda item is in alignment with:

Goal 1, Strategy 1: Establish a comprehensive fiscal stability and sustainability plan to address the General Fund’s long-term structural deficit; and
Goal C, Strategy 6: Update the Economic Development Strategic Plan to meet the City’s financial goals and build regional partnerships.

BACKGROUND
To stabilize the City’s General Fund, voters have approved two tax revenue measures including a local sales tax measure (Measure AA), and a u"lity user’s tax (Measure WW). Measure AA sunsets on April 1, 2025 and Measure WW sunsets December 31, 2028. The extension of the sales tax measure was placed on the 2022 ballot with unanimous support from the City Council. If notapproved for renewal by voters, the City would experience a loss of more than $6 million in annual revenues. Any significant loss of revenues would have a serious impact on the City’s ability to deliver services: public safety, social services, recrea"on, public works, planning, and administra"on. It would also impact the City’s business community and staff members’ efforts to retain and City Council/RSA Agenda 307 Tuesday, October 11, 2022
a4ract businesses.

Challenged by a structural deficit, the City Council has supported economic development as a tool to help close revenue gaps. Earlier this year, staff engaged Management Partners to evaluate the City’s fiscal health and economic development opportuni"es and challenges, as well as provide an overview of the role of local government in economic development and the resources required to have successful economic development outcomes. The Report focused on a variety of topics. Below are some of the highlights.

City Steps taken to Remove Barriers to Increase Revenues Engaged Kosmont to conductaretailand zoningreport focused on preserving Union Landingretail revenue
Updated the zoningcode to streamline the review process related to nonresiden"al uses Assisted developers through development review processes Incen"vized new businesses with a business license tax holiday (expired) Provided site selec"on support for prospec"ve businesses Collaborated with localand regional organiza"ons to iden"fy economic development opportuni"es CurrentEconomic Development Program Challenges
Lack of real estate inventory to support business expansion a4rac"on,and reten"on (BEAR) Limited staffing: One full-"me Economic Development Manager with a.25 administra"ve assistant is insufficient to meet the City’s economic developmentgoals The Union Landing Property Business Improvement District (PBID) is successful, but it requires approximately 50 percent of the Economic Development Manager’s "me, distrac"ng from implementa"on of other economic development strategies
Steps to Strengthen Economic DevelopmentEfforts
Conduct market studies, sector,and cluster analysis to inform economic development strategies Design and implementastrategicand targeted brandingand marke"ngcampaign to support business expansion,a4rac"on,and reten"on efforts
Conduct land use analysis in support of conversion to higher density commercial uses Update the economic development strategic plan thataligns economic development resources with City Councilgoals

DISCUSSION
Management Partners was tasked with evaluating the City’s Economic Development program to determine the opportunities and challenges and prepared a Report in response (Attachment 1). See below for a summary of the major observations:

The City will be unable to replace the revenue generated by local sales tax in the near- or mid -term through new sales tax generating businesses sufficient to match the amount received through the voterapproved sales tax.

Maintaining City services, especially public safety and infrastructure will be critical to business attraction and retention strategies, as wellas a local workforce.

Major new business and retail opportunities are limited by the lack of available land. Infill or redevelopment by the private sector may occur, but it will be over the long term.

Low vacancy rates in both the industrialand retail sectors are positive economic indicators, but as a result there is little room for expansion of major sales tax generators in the near term.

An investment in an in-depth analysis of the business and retail sectors would assist City policymakers City Council/RSA Agenda 308 Tuesday, October 11, 2022
and staff in determining where to allocate scarce resources over the next five years in support of specific economic development objectives. This includes staff time, infrastructure investment and land use policies.

An updated Economic Development Strategic Plan would provide an opportunity for policymakers to achieve consensus about priorities and policies.

Management Partners concluded with recommendations that the City should implement based on their analysis of the City’s Economic Development Program.

Elevate the economic development focus within the organization Allocate additional staffing and budget resources to implement business expansion, attraction, and retention efforts and design and implement strategic marketing and branding efforts to target groups Update the Economic Development Strategic Plan
Perform sector and cluster analyses to support the economic development strategies EDAT supported the recommendations proposed by Management Partners and that funding to hire additional staff should be considered a priority.

FISCAL IMPACT
There is no fiscal impact to the General Fund from receiving this report. There would be fiscal impacts related to implementing the recommendations. Additional staffing would be an ongoing cost to the General Fund between $100,000 and $140,000 for the base salary and not including totalcompensation. Whereas funds for developing new marketing materials, performing a sector and cluster analysis, and updating the strategic plan would be one-time expenses; however, this would require a reprioritizing of current staff activities.

RECOMMENDATION
Staff recommends that the City Councilaccept EDAT's recommendation to accept the Management Partners Report and provide feedback on the recommendations to expand the economic development program, including additional staff, marketing, and data collection to support updated economic development goals and strategies.

Should the Council provide direction to increase economic development staff and proceed with marketing, data collection and the strategic plan update, a budget amendment would be required and additionalcosting for a complete budget impact is recommended.

Prepared by:

Gloria Ortega, Economic Development Manager
Submitted by:

Gloria Ortega, Economic Development Manager
ATTACHMENTS:

Description Type
Attachment 1 - EDEconomic Opportunities and Challenges Attachment Power Point Attachment
City Council/RSA Agenda 309 Tuesday, October 11, 2022
City Council/RSA Agenda 310 Tuesday, October 11, 2022
1730 MADISON ROAD • CINCINNATI, OH 45206 • 513 861 5400 • FAX 513 861 3480 MANAGEMENTPARTNERS.COM 2107 NORTH FIRST STREET, SUITE 470 • SAN JOSE, CALIFORNIA 95131 • 408 437 5400 • FAX 408 453 6191 To: Ms. Joan Malloy, City Manager
City of Union City
From: Jan Perkins, Senior Vice President
Sam Lieberman, Senior Manager
Slater Matzke, Special Advisor
Pat O’Keeffe, Special Advisor
Subject: Opportunities and Challenges of the Economic Development Program Date: June 22, 2022
Executive Summary
Management Partners was engaged by the City of Union City to update comparison data we included in the 2019 Organization Management Audit Report, assess the City’s current practices regarding economic development, and provide recommendations pertaining to economic development.

While recovering somewhat from the impacts of the pandemic, in great measure due to state and federal resources, the City still faces real revenue challenges to be able to recover staffing and services that support the level of services and public safety that the community expects.

Two voter approved taxes, a local sales tax and a utility user’s tax represent about 14% of the City’s General Fund revenues (together they represent the third largest revenue source after property and general sales tax). They remain critical to the City being able to provide appropriate service levels, both in the short and long term.

While Union City enjoys a diverse tax base, both in terms of property and sales tax, the ability to expand it in the short term is challenging. A major impediment is the lack of available vacant land able to be developed without constraints (i.e., City-owned properties that may need to go to housing pursuant to state law). Additionally, low vacancy rates in both the industrial (1.3%) and retail sectors (3.3% in Union Landing and within a two-mile radius) mean that growth opportunities, particularly related to sales tax generators, will need to be pursued over the long term.

The City has recently seen an increased interest in existing retail space, but that is not retail expansion on a significant scale. Infill development (redevelopment by the private sector) opportunities may also be possible, but these take time and a market that is interested when the land values are ripe to do so.

Attachment I
City Council/RSA Agenda 311 Tuesday, October 11, 2022
City of Union City Page 2
Economic Development Challenges and Opportunities
This report sets forth our general observations about the role of economic development in local government, Union City’s economic development focus over the last several years, and the challenges inherent in expanding the City’s business sectors responsible for most of the sales tax generation. We also suggest some paths for an updated economic development strategic plan and focus, some of which is already underway. The goal of such efforts is to inform both staff and policymakers as they consider future economic development endeavors. Economic development remains a priority for both staff and the City Council and continuing this focus will also likely require additional investment in this critical function.

Major Observations
Management Partners major observations in this report include the following:

1. The City will be unable to replace the revenue generated by local sales tax in the near- or mid -term through new sales tax generating businesses sufficient to match the amount received through the voter approved sales tax.

2. Maintaining City services, especially public safety and infrastructure will be critical to business attraction and retention strategies, as well as a local workforce.

3. Major new business and retail opportunities are limited by the lack of available land.

Infill or redevelopment by the private sector may occur, but it will be over the long term.

4. Low vacancy rates in both the industrial and retail sectors are positive economic indicators, but as a result there is little room for expansion of major sales tax generators in the near term.

5. An investment in an in-depth analysis of the business and retail sectors would assist City policymakers and staff in determining where to allocate scarce resources over the next five years in support of specific economic development objectives. This includes staff time, infrastructure investment and land use policies.

6. An updated Economic Development Strategic Plan would provide an opportunity for policymakers to achieve consensus about priorities and policies.

This report is organized into the following major sections:
• Fiscal Context
• Role of Local Government in Economic Development
• Current Union City Economic Development Environment
• A Long-Term Focus on Economic Development Is Required • An Investment in Additional Resources Will Be Required • Conclusion
Fiscal Context
Management Partners assisted the City with the creation of a ten-year financial forecast for the General Fund. The forecast indicates that the City is fiscally sustainable based on current service and staffing levels assuming all existing revenue sources would continue in perpetuity. However, this is not the case.

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The City’s local sales tax Measure AA generates over $6 million per year. However, that tax measure sunsets on April 1, 2025. The approval of Measure WW, a 5% utility users’ tax (UUT) measure approved by voters in November 2020 that replaces the former public safety parcel tax which lapsed in FY 2021, was expected to generate over $5.5 million per year starting in April 2021 and will continue to grow. However, the current year, FY 2021-22 is expected to have a shortfall of approximately $200,000; UUT revenues have not met anticipated projections. This measure will sunset in December 2028. Revenues from the new UUT have helped the General Fund restore fiscal sustainability and have provided some fiscal capacity to address much needed service level deficiencies in the areas of planning, recreation, public works, public safety and City administration.

General Fund Challenges
Prior to the approval of the American Rescue Plan Act (ARPA) by the federal government in March 2021, the City was expecting to operate at a deficit of $6.7 million in FY 2021-22, and $3.3 million in FY 2022-23, as indicated in Figure 1.

Figure 1. Union City General Fund Projected Surplus (Deficit) without ARPA (in millions of dollars) The Coronavirus Local Relief Fund provisions in ARPA resulted in the City receiving nearly $14.1 million in federal assistance in two equal payments (tranches). In June 2021, the City Council considered options for the use of the ARPA funds and chose to use the funds to restore staffing to pre-pandemic levels, make infrastructure maintenance and improvements, and sustain public safety to the extent revenue was lost during the pandemic. ARPA funds must be used for General Fund expenditures. As a result, the relief provided by ARPA funds (one time revenue) resulted in an elimination of deficit spending by the General Fund in FY 2021-23 as indicated in Figure 2.

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Figure 2. Union City General Fund Projected Surplus (Deficit) with ARPA (in millions of dollars) When compared with similar cities in the East Bay and lower Peninsula (jurisdictions were selected by staff), Union City has the third lowest General Fund revenue per capita and is 25% lower than the average as shown in Figure 3. This is a slight improvement from FY 2018-19 when an initial comparison was established.

Figure 3. General Fund Revenue per Capita Comparison for FY 2021-22 $-
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One-Half Cent Sales Tax
In November 2010 the voters in Union City approved Measure AA, a one-half cent local sales tax, with just over 60% of the vote. Measure AA included a provision for the sales tax increase to sunset in four years. According to the ballot text, the measure was presented to the voters as a way “to prevent severe cuts to essential services such as police, fire, paramedic, library, streets, parks and other services.”
In November 2014 Union City asked the voters to approve Measure JJ, a ten-year extension of the one-half cent sales tax again to “prevent severe cuts to, and maintain essential services such as police, fire, paramedic, library, streets, parks and other services.” Nearly three-quarters of those that voted in 2014 (73.74%) approved the ten-year extension. The one-half cent sales tax is now set to expire in April 2025 unless another extension is put before and approved by voters.

Sales Tax from Measure AA
• In FY 2011-12, the first full year of sales tax revenue from Measure AA, the City received nearly $3.5 million. The FY 2022-23 adopted budget assumes the City will receive nearly $6.3 million from the one-half cent sales tax, accounting for just over 10% of all General Fund tax revenues and 7.56% of total General Fund revenues. • To put this into perspective, the Public Works General Fund budget for FY 2022-23 is about $6.5 million, accounting for nearly all the revenue generated by the Measure AA sales tax.
• Management Partners projects that the one-half cent sales tax will result in nearly $7.2 million in revenue in FY 2023-24 and $7.5 million in revenue in FY 2024-25 before it expires.
• The loss of revenue from the Measure AA sales tax could have a significant impact on service delivery in Union City. The average cost for an employee in Union City is $138,000. No longer having $6.3 million from Measure AA is akin to losing 45 positions.

As Figure 4 shows, nearly all of the Public Works Department, or most of Community and Recreation Services, or a large portion of Police services represent $6.3 million in costs.

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Figure 4. Impact of Measure AA Sales Tax on the General Fund Note: Community and Recreation Services includes $2.3 million from the leisure revolving fund Using the most recent sales tax data available to Management Partners provided by Avenu Insights and Analytics, between the third quarter of 2020 and the third quarter of 2021 the City received $10.7 million in total sales tax receipts.

What New Business Would Need to Generate $6.3 million in Revenue Management Partners conducted a high-level analysis to determine what current industries or sectors would have to generate in addition to what they already do to make up the $6.3 million expected in the FY 2022-23 budget from the Measure AA sales tax if it were to not be renewed.

Union City would need to increase sales tax receipts substantially to offset the loss of the Measure AA sales tax. The City would need to increase sales tax receipts from service stations by 1,101%, restaurants by 500%, general retail by 333%, or business-to-business sales tax receipts by 269%, or some combination thereof to offset the loss of the Measure AA sales tax. Given that the sales tax will expire in April 2025, it is unrealistic to expect that these numbers could be achieved in new business between now and then.

City Manager/Administrative Services
$8,528,307
Public Works
$6,459,349
Economic and
Community
Development
$4,759,936
Community and
Recreation
Services
$7,950,856
Finance
$5,128,662
Police
$31,994,467
Fire Services
$12,146,129
Represents Measure AA Sales Tax Revenue
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Economic Development Challenges and Opportunities
General Fund Reserves
While ARPA funds provided one-time relief to the City in recovering from the economic impacts associated with the pandemic, an ongoing fiscal gap exists resulting from the anticipated expiration of Measure AA in 2025, and Measure WW in 2028. Without these revenue sources being continued and/or restored through other budget strategies (which could include service level reductions), the City’s General Fund reserves will fall below the minimum reserve policy of 20% of annual operating expenditures by FY 2028-29 and will fall below zero by FY 2030-31. Figure 5 illustrates this. A 20% reserve is adequate to maintain operations for 73 days, or 2.4 months.

Figure 5. Union City General Fund Projected Reserve Balance (in millions of dollars) Note: Does not include most recent personnel cost projections following the agreement of memorandums of understanding with bargaining units
How Union City Compares with Other Cities
When comparing Union City with similarly situated cities in the East Bay and lower Peninsula, Union City has the lowest sales tax revenue per capita and is 68% lower than the average, as shown in Figure 6.

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Figure 6. Sales Tax per Capita Comparison for FY 2021-22 Role of Local Government in Economic Development
Economic development is a critical aspect of the community vision and health. While seemingly obvious, the California Association for Local Economic Development (CALED) lists the following benefits of economic development as important reminders of the broader reasons why cities allocate resources to economic development:
• Maintain, increase and diversify the tax base;
• Increase revenues faster than the cost of municipal services increase • Business retention
• Economic vitality and diversification for commercial and industrial areas • Maximize property through highest and best use
• Create and retain jobs, increase per capital income
• Self-sufficiency in the face of state and federal budget issues • Recognition of local products
• Beneficial partnerships between local governments, business and community members Among other things, Union City leaders understood the importance of these broad economic development objectives when they adopted an optional Economic Development Element as part of the General Plan. This policy document rests on economic development fundamentals that include:
• Supporting successful businesses that provide goods and services to the community, • Creating a good jobs/housing balance that reduce commuting and its creation of greenhouse gasses, and
• Recognizing the role of retail and restaurants as an element of quality of life. $0
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Economic Development Challenges and Opportunities
Economic development is critical to any city’s fiscal health, especially over the long term. Union City’s Economic Development Element includes the following important observations about the need for a strong and sustainable business and an economic development environment that the City can rely on to generate revenue to support basic municipal services over the long term.

1. Fiscal health is a result of concerted efforts by the City’s policy makers to make decisions that help grow and sustain the economic base and attract private investments.

2. A strong economic base includes jobs with competitive wages, a diverse mix of industries to limit dependency on any one sector, business clusters that create opportunities for business-to-business transactions, a robust retail sector that offers goods and services desired by the local and regional community that generates sales taxes, and a strong property tax base.

3. Maintaining industrial and commercial lands is key to accommodating long-term economic and job growth.

Typical Economic Development Activities
Local governments typically support businesses and broader economic development policy objectives through the following activities:
• Providing the appropriate infrastructure for businesses to operate (e.g., streets and utilities);
• Providing assistance navigating the business approval and licensing process; • Creating business friendly zoning and land use regulations; • Providing a safe environment through public safety services; and • Marketing the community as a great place to invest and operate a business.

The City’s Economic Development Strategic Plan identifies these as important activities to support economic development activities and the City using available resources.

Through these activities that support a successful business environment, cities then benefit more specifically through:
• Local tax revenue to support city services including parks, infrastructure and public safety;
• Providing opportunities for employment where people live; and • Improving the quality of life with retail, restaurants, and other services as community amenities.

Implementation of these activities includes support from the community development function, which includes establishing appropriate land use and zoning policies and streamlining review processes. Community development is a partner in the overall city team that supports economic development activities. Often cities will have a separate economic development function and/or staff that helps coordinate the activities of numerous departments. Some examples include public safety measures for retail districts (police), establishment of business improvement districts (finance), or ombudsman for assisting with land use and building approval processes (community development).

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One major tool now lost to California cities is redevelopment. The activities that redevelopment agencies used to provide include land assembly, toxic remediation, funding for infrastructure projects (road capacity, street beautification, public plazas), and small business loans for façade improvements, equipment acquisition and business expansion. The financial support provided by redevelopment cannot easily be replaced as cities struggle to balance their budgets with revenue uncertainty due to Covid and other economic uncertainties.

Business Location Choices are Limited
The following major areas support existing and new businesses in Union City when vacancies become available.

1. Retail Areas. Union City includes several major retail centers including Calaveras Landing, Four Corners, The Marketplace and Union Landing, plus several smaller neighborhood commercial areas throughout the city on major arterials. There is also a portion of mixed-use development on 11th Street in the Station District Core subarea near the Intermodal station.

2. Industrial and Research and Development Areas. These include Alvarado Business Park, Central Bay Business Park, and Station East.

3. Office Areas. Offices are allowed in all commercial and industrial areas. Stand-alone office uses are developed in an area designated Professional and Administrative Commercial along Alvarado-Niles Road and adjacent to the Intermodal Station along Decoto Road between Union Square and Station Way, and at the corner of Whipple Avenue and Liston Way.

4. Hotel Areas. Hotel uses are either permitted or conditionally permitted within the majority of the City’s major retail areas; Union Landing, which currently is developed with three hotels; within the area designated Visitor and Recreation Commercial (CVR), which currently accommodates the Crown Plaza Hotel; the Station District area including the Station East area, and commercial mixed-use districts Although there are substantial areas with land use categories in support of businesses, there are few areas with vacant land available for new commercial development. • The primary areas with vacant land available for development are within the Core and Station East subareas.
• The vacant land available for development in the Core subarea, owned by the City and not under an existing sales contract must be offered to affordable housing developers if the City disposes of them pursuant to the State Surplus Land Act. • As a result, opportunities for hotels and offices are constrained by the lack of vacant land.

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Business Attraction and Retention
In general, it is important for the City to continue its attraction and retention activities to ensure the commercial fiscal base remains strong. Maintaining existing jobs and attracting new jobs will support the retail and hospitality businesses in Union City. Increasing private or combined public/private investment in properties will support the growth of the property tax base to support government services.

The City’s General Plan Economic Development Element has several relevant and important policies designed to support expansion of existing businesses and attract new businesses. They include the following:
• Support Local Business Expansion through individualized site selection assistance. • Support Business Relations by creating networking opportunities and encouraging business-to-business transactions.
• Partner with Organizations, including the Union City Chamber of Commerce. • Encourage High-Performing Business Infrastructure including high-speed fiber optic communications, and sustainable energy systems.
• Improve Access to Employment Centers, which includes a focus on connecting local employees to the Intermodal Station with flexible route/on-demand transit, last-mile transit connections (shuttles), carpools, ridesharing, bicycle lanes, and sidewalks. • Encourage Conversion of Warehouses to More Intensive Uses, including efforts to convert existing warehouse space into more employment-intensive uses to increase the number of high-paying jobs and the City’s property tax base.

It is important to note that many of these policies are long term in nature. Establishing supportive infrastructure, improving access, and converting low density uses to higher density uses takes years to plan and execute, and require positive market forces. These are important activities to undertake, recognizing that they may have a time horizon of five to fifteen years to produce results.

Economic Development – Short-, Mid-, and Long-Range Horizons Economic development activities have different time horizons. • There are short-term actions (one to two years) City staff can undertake such as inventorying existing available land and building vacancy, marketing these spaces and the community.
• Mid-range activities have a timeframe of two to five years and include actions such as rezoning to higher intensity land uses or establishing assessment districts. • Seeing the results of establishing these support mechanisms requires a long range (five to fifteen years) timeframe.

For example, it may be possible to lay the groundwork for a new hotel with short-and midrange actions such as identifying land and properly zoning it but seeing the revenue from a new hotel is long term, likely five years or more. In addition to zoning and marketing activities, the hotel proposal will need to obtain the appropriate use permits, complete construction drawings City Council/RSA Agenda 321 Tuesday, October 11, 2022
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Economic Development Challenges and Opportunities
for building permits, find a hotel operator and flag (e.g., Marriott), obtain equity and construction financing, negotiate construction and labor contracts, and complete construction.

A Stable City Workforce, Adequate Safety and Community Services Are Critical As Union City transitions into this next phase of recovery, it is imperative that an emphasis is placed on continued recruiting and hiring to achieve and maintain full service levels for residents and the business community. This is of particular importance as it is a critical factor for establishing a robust and resilient business expansion, attraction, and retention strategy in the City. Union City needs to ensure that it has the appropriate staffing levels to provide the safety and community service needs of the residents and business community.

In response to the pandemic, City leaders instituted a temporary hiring freeze of 45 positions to preserve those salary savings as a bulwark against anticipated revenue losses in the General Fund. While this reduction in staffing costs provided some financial relief, doing so only serves as a short-term emergency measure.

Sustained staffing reductions have had, and will continue to have, negative impacts on service delivery, employee morale, and recruitment and retention.

Current Union City Economic Development Environment
Even with the economic uncertainty of the past two years, the Bay Area is primed for additional growth, particularly in the tech and bio-tech oriented areas of the Peninsula, San Jose, and East Bay. Major tech firms such as Google are expanding throughout the area, and major bio-tech developers such as Alexandria are acquiring and entitling properties that may have previously served as industrial or retail space.

Union City is well located to draw a portion of this demand due to its location between the Oakland/Emeryville and San Jose business centers and its close access to the Peninsula from Highways 84 (Dumbarton Bridge) and 92 (San Mateo-Hayward Bridge). Strong regional access and connections exist with Interstate 880 and the BART line.

Similar to other cities in the region, the current economic development environment of Union City has been heavily impacted by the pandemic, especially with many business sectors shifting to remote work. This has impacted business and consumer spending behaviors and workforce activity as many companies shifted to remote and telecommute operations. While BART continues to trail its pre-pandemic ridership levels, there have been significant increases (in March 2022 there was a 32% increase).

Commercial and Industrial
Opportunities are limited in existing buildings with low vacancy rates in the City’s industrial areas. While there has been a slight uptick in the overall Union City commercial vacancy rate, the combined rate for Industrial, Warehouse, R&D/Flex is 1.4% (Colliers Q4 2021 report). This remains one of the lowest in the East Bay. Even an increase in the vacancy rate would not City Council/RSA Agenda 322 Tuesday, October 11, 2022
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necessarily result in an increase in sales tax revenue, as it may be an industrial use that does not produce sales tax.

Costar’s (a commercial real estate information company) commercial availability in Union City as of April 29, 2022 also highlights the limited amount of available commercial property for lease or sale. According to this source, the following were available for lease (23 properties total):
• Retail: 59,000 square feet
• Industrial 110,000 square feet
• Office 19,000 square feet
• For Sale: two properties (6,000 and 3,000 square feet) Union City has demonstrated economic resiliency by maintaining consistent activity through its diversity and real estate activity in the business sector. The City led the East Bay with three of the top four property sales transactions in the last quarter of 2021. Sales activity was led in the fourth quarter by Harrison Street Capital’s purchase of a five-building portfolio totaling 322,318 square feet located at 3200-3280 Whipple Road (Crossroads Technology Park). The research and development/flex buildings sold for $161,000,000, or $500 per square foot, and life science conversion is expected (Colliers Q4 2021 Report). The new property owner is rebranding the center as “Union City Labs” and intends to utilize the complex for life science uses.

Also, three of the 17 significant leases with OMNI Logistics, Chetak and Advanced Manufacturing Group are renewing for long-term commitments. This represents more than 340,000 square feet. The Union City real estate market has also demonstrated a strong net absorption rate during 2021 of 330,000 square feet.

Significant sales activity from the fourth quarter of 2021 is shown in Table 1 and significant lease activity is shown in Table 2.

Table 1. Significant Sales Activity in Q4 2021
Buyer Address Date Square Footage Type
Harrison Street Capital 3200-3280 Whipple Road November 2021 322,318 Investment Ark Row Partners 2975 Volpey Way October 2021 60,080 Investment Fortress 27211 Industrial Boulevard December 2021 52,502 Investment Lift Partners 24343 Zwissig Way November 2021 51,828 Investment Source: Colliers 2021 Q4 Industrial Market Statistics Report Table 2. Significant Lease Activity in Q4 2021
Tenant Lease Date Square Footage Type
OMNI Logistics November 2021 191,868 Renewal
Chetak San Francisco LLC November 2021 77,244 Renewal
Advanced Manufacturing Group October 2021 71,964 Renewal Source: Colliers 2021 Q4 Industrial Market Statistics Report City Council/RSA Agenda 323 Tuesday, October 11, 2022
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Retail Sales
While there have been serious financial challenges for retail due to the pandemic, Union City has demonstrated remarkable resiliency with Union Landing continuing to serve as the prime retail center and sales tax generator. It generated $210 million in annual retail sales in 2019.

Economic indicators show that Union Landing has maintained the second highest visitation rate relative to other East Bay retail shopping centers through the first quarter of 2021. Additionally, Union Landing commands the highest triple net rents in relation to its competitors as well as comparable vacancy and positive net absorption rate. (Kosmont Union Landing Retail Study).

Table 3 shows a retail market summary for regional retail centers.

Table 3. Retail Market Summary Two Mile Radii from Retail Centers as of Q1 2021 Availability
Union
Landing
Bayfair
Center
Fremont
Hub
Newpark
Mall
Pacific
Commons
Southland
Mall
Triple Net (NNN) Rent1(per square
foot per year) $41.72 $22.35 $30.88 $30.11 $29.37 $25.05 Vacancy Rate 3.3% 3.6% 3.8% 4.5% 2.1% 2.6%
Vacant Square Footage 71,357 152,481 256,304 236,004 76,223 147,567 Net Absorption 1,904 (24,677) (10,466) (2,267) (5,777) 26,004 Existing Square Footage 2,158,905 4,247,082 6,713,501 5,277,525 3,601,518 5,697,389 Source: CoStar
1Costar defines Triple Net (NNN) as “a lease where the tenant is responsible for all expenses associated with their proportional share of occupancy of the building, except long-lived structural components and management charges.” Sales Tax Generators
Union City is well positioned with a diverse range of industries that generate sales tax revenue.

Figure 7 shows the distribution of sales tax revenue by industry for the Q3 of 2021.

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Figure 7. Avenu Insights and Analytics Q3 2021 Union City Sales Tax by Industry Business-to-business is a significant sales tax revenue driver in Union City, accounting for 22% of sales tax revenue, followed closely by construction (18%), general retail (18%), county pool (17%), and food products (16%).
• Business-to-business sales include office equipment, electronic equipment, and heavy and light industry, among others.
• Construction sales are generally wholesale or retail building materials. • General retail includes apparel stores and miscellaneous retail. • Food products include restaurants, grocery stores, liquor stores, and food processing equipment.
• Transportation includes auto parts, auto repair, auto sales, and service stations.

Under the countywide pool system, sales tax is reported by the business or individual obligated to pay the tax to the countywide pool of use and then distributed to each jurisdiction in that county on a pro-rata share of taxable sales. Transportation, which accounted for 8% of Q3 2021 sales tax revenue, includes auto sales, auto parts sales, and service stations.

The top 25 sales tax producing businesses are equally as diversified across both industry and economic segment, as shown in Table 4.

Table 4. Top 25 Sales Tax Producers by Industry and Economic Segment Industry Economic Segment Number
Construction Building Materials - Wholesale 5
General Retail Apparel Stores 2
Transportation Service Stations 2
Food Products Food Markets 2
General Retail
$1,891,295 (18%)
Food Products
$1,770,578 (16%)
Transportation
$840,400 (8%)
Construction
$1,948,669 (18%)
Business to
Business
$2,344,519 (22%)
Miscellaneous
$87,246 (1%)
County Pools
$1,849,218 (17%)
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Industry Economic Segment Number
Business to Business Electronic Equipment 2
Business to Business Heavy Industry 2
Business to Business Light Industry 2
Construction Building Materials - Retail 2
Food Products Restaurants 2
General Retail Furniture/Appliance 1
Business to Business Office Equipment 1
General Retail Miscellaneous Retail 1
General Retail Department Stores 1
Source: HdL Companies
Seven of the top 25 sales producers are in the business-to-business industry, yet they produce the greatest percentage of sales tax for Union City. At the same time, the other industries (e.g., construction and general retail), are also producing significant percentages of sales tax.

The diversity of sales tax producing businesses in Union City is a strength for the City. It ensures there is not reliance on any one industry or segment, which allows it to withstand potential downturns in a particular industry.

A Long-Term Focus on Economic Development Is Required
The City enjoys a fairly diverse, robust tax base, but unlike its regional neighbors, it has little vacant land on which to develop commercial property that would result in significant new sales tax. This section discusses these issues, as well as some paths City leaders and staff can pursue as they focus on long-term strategies.

Short range opportunities focus on existing businesses and existing commercial spaces.

Although their fiscal impact may be relatively modest, short-range opportunities are nonetheless important for maintaining existing jobs and tax revenues with the possibility of some increases. These opportunities are pursued through the activities currently within the Economic Development Element summarized above. They include marketing existing properties and assets, providing essential services, and ensuring supportive infrastructure.

These activities require an on-going understanding of the current business environment and its performance by understanding current sales and business tax generation, workforce characteristics, and city and sub-regional demographics described above. On-going support of these activities requires an investment in additional Economic Development staff capacity.

Long range means two to ten years in duration. These opportunities have the potential to substantially increase economic development and fiscal health. They may best be addressed and documented in the context of an updated Economic Development Strategic Plan. Consistent with the City’s Strategic Plan, an update to the City’s Economic Development Strategic Plan is planned to begin in the next few months.

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Summary of City Actions Taken Over the Last Several Years While the pandemic abruptly shifted the focus of economic development efforts in Union City it did not halt the work and there is much that has been accomplished. Staff have been busy with Covid recovery strategies, business retention efforts, the Union Landing Property Business Improvement District (PBID) and rezoning, collaborating with the Economic Development Advisory Team (EDAT) on various projects, and more.

Economic development staff regularly communicated with businesses in Union City to provide updates on pandemic-related regulations and opportunities for assistance. Economic development staff also assisted on the City’s Road to Recovery Small Business Assistance grant program and Temporary Outdoor Dining program, which were created as a result of the pandemic to support impacted businesses. Staff also collaborated with regional partners including the East Bay Economic Development Alliance and the Silicon Valley Economic Development Alliance and worked collaboratively to adopt a sector classification strategy.

Economic development staff also began to assist the Union Landing Property Owner’s Association (ULPOA) / PBID in an executive director role. This assistance brought together the 16 disparate property owners at Union Landing to fund security, branding, marketing and promotions, wayfinding and signage, and property maintenance. In addition, the ULPOA has recently begun to focus on capital projects (i.e., gateway walls, landscape replacement, pylon sign maintenance) to enhance the shopping center which requires management by economic development staff. Though the PBID is successful, it does come at a cost to the City because it requires approximately 50% of the Economic Development Manager’s time.

Economic development staff worked with Kosmont Companies who developed a retail study and zoning report for Union Landing. Kosmont’s analysis led to an update of the zoning regulations for Union Landing to provide more flexibility for property owners and help streamline permitting and licensing for prospective businesses.

Over the last few years, the City has focused on updates to the zoning ordinance among other efforts to streamline the approval process for land use and building permits to support the establishment of new businesses. The City should continue to look for opportunities to streamline approval processes where feasible to support economic development efforts.

In collaboration with the Economic Development Advisory Team, economic development staff engaged HdL Companies to review the City’s business license tax and make recommendations for shifting the business license tax from a per employee basis to a square footage basis. The result of this analysis was presented to City Council in February 2022 and the consensus was that further study was needed to ensure Union City does not set a business license tax rate that is out of alignment with neighboring jurisdictions and does not negatively impact important retail sales tax generators.

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Economic development staff also works closely with new and existing businesses on an ongoing basis to ensure that their needs are met as well as to resolve issues that may arise during the permitting and zoning process, in addition to a variety of other tasks such as supporting the Chamber of Commerce.

The above represents a high-level description of the work being performed by the economic development staff in Union City and should not be construed as an exhaustive listing.

Real Challenges
The greatest challenge to the City’s economic development policy objectives to increase economic and business activity is the lack of available vacant land. The most significant vacant parcels are near the BART station and they are limited in number. As mentioned previously, the parcels owned by the City that are not under contract must be offered for affordable residential per the State Surplus Land Act.

The lack of land is not surprising as Union City is within an older portion of the East Bay that was previously developed. The major economic development opportunity for these older Bay Area communities now consists of redeveloping lower density industrial and retail properties into higher density employment generating uses including tech and bio tech uses. This may result in the loss of some industrial businesses to lower cost industrial space in other communities. Existing warehouse buildings are not conducive to conversion for lab and tech space for major companies. Developing lower density industrial properties into higher density employment generating uses will be driven by market demand.

Some limited opportunities may exist for smaller infill commercial development such as retail and restaurants. An assessment of these sites and the existing zoning will assist marketing efforts to attract desired tenants. The addition of new retail uses is most likely to happen through the development of new residential mixed-use buildings. However, these opportunities are unlikely to be major revenue producers.

For either retail or commercial development, the limited opportunities with vacant land and infill sites make the attraction of new businesses difficult. The creation of new opportunities through redevelopment of existing uses is long term in nature. Creating the appropriate land use regulations, marketing the area, and entitling individual projects will take years to complete.

Business Sector Analysis
With the pandemic enters a new phase of economic recovery it is critical that Union City take advantage of this opportunity to update its Economic Development Strategic Plan. This effort is expected to begin in the next few months.

To inform this effort, performing comprehensive market studies and a business sector analysis will help bolster business expansion, attraction, and retention initiatives focused on creating opportunities for residents and the business community at large.

City Council/RSA Agenda 328 Tuesday, October 11, 2022
City of Union City Page 19
Economic Development Challenges and Opportunities
A current assessment of both local and regional industries, sectors and business clusters will help identify needs for the existing economic ecosystem as well as opportunities to help strengthen the local economy and draw new investment and activity to Union City. The data and information collected through these market studies and analysis has the potential to help Union City establish a competitive advantage in the region and expand its tax base.

Union City benefits from having a diverse economy with its core sectors almost equally divided between General Retail Food Products, Construction and Business to Business, and this business diversity is also reflected in the top 25 sales tax remitters. A key indicator of the recovery of the Union City economy is the continued positive trend of local business activity which represents all sales-tax generating transactions occurring within the City.

Significant activity has been indicated in the most recent reporting from the Q3 of 2021 with increases in Transportation (33.8%), Food Products (26.0%) and business to business (18.7%) and with annual increases across all industrial categories.

Additionally, the Union City economy is tracking close to or above the rest of the San Francisco Bay Area as well as the state with aggregated local business activity up 8.4% annually and

11.2% in the Q3. Further analysis and market research will help identify opportunities to fortify and strengthen these sectors.

Table 5 shows total quarter and annual local business activity for Union City, San Francisco Bay area and California as of Q3 in 2021.

Table 5. Comparison of Business Activity in Union City, San Francisco Bay Area, and California for Q3 2021
Business Activity
Union City San Francisco Bay Area California
Quarter Annual Quarter Annual Quarter Annual
General Retail 2.6% 10.8% 8.0% 7.0% 20.5% 12.7%
Food Products 26.0% 11.0% 21.7% -5.5% 24.2% -0.3%
Transportation 33.8% 9.8% 6.8% 8.3% 14.8% 8.7%
Construction -8.4% 10.8% -2.9% 3.9% 1.4% 3.5%
Business To Business 18.7% 1.7% 1.0% 3.6% 5.1% -1.2%
Total Local Business Activity 11.2% 8.4% 7.1% 3.6% 14.6% 5.4% Countywide Pool Activity -15.9% 4.0% -2.5% 7.7% 0.5% 14.7% Source: Avenu Insights
City Council/RSA Agenda 329 Tuesday, October 11, 2022
City of Union City Page 20
Economic Development Challenges and Opportunities
Increased Commercial and Industrial Density in Specific Areas Conducting a land use analysis of an industrial area most likely to convert to higher density uses with appropriate changes to existing zoning standards such as higher floor area ratio (FAR) limits would help implement the following policy from the Economic Development Element of the General Plan:

ED-5.2 Encourage Conversion of Warehouses to More Intensive Uses The City shall support efforts to convert existing warehouse space into more employment-intensive uses to increase the number of high-paying jobs and the City’s property tax base.

The identification of an area that could convert from industrial use might be followed by a specific plan for the area that identifies the appropriate infrastructure required to support the intensified uses. This effort will address the challenge of a lack of vacant land discussed above by identifying sites that can be created through the demolition and redevelopment of existing low-density uses. Increasing density will result in higher value buildings that will generate higher property tax revenues and result in more employees to support surrounding retail, restaurant and hotel businesses. While City Council has begun the evaluation of this matter and concluded the current approach is to review and update the business license tax, further market study is needed to assess the feasibility of converting land where low density uses exist to higher density uses.

Additional Market Studies
Building on the prior Kosmont Study, conducting an analysis of existing retail, hotel, high-tech uses and office opportunities that inventories available space and likely tenants in the environment should also be pursued. This analysis would include the industrial areas, four major retail centers as well as the neighborhood commercial and the ground floor opportunities for mixed-use development in the Station District.

Market studies will provide strategic guidance to the City Council and economic development staff about the future direction and what is possible to actively attract.

Economic Development Strategic Plan Update
The existing Union City Economic Development Strategic Plan (Plan) includes several appropriate policies, activities and metrics to measure progress. Typical economic development strategic plans include the following elements:
• Goals and objectives,
• Results of market studies,
• A regional and local industry sector and cluster analysis, • Identifying key business expansion, attraction, and retention (BEAR) initiatives, • Possible zoning changes,
• Outreach and marketing priorities, and
• Implementation action plans.

City Council/RSA Agenda 330 Tuesday, October 11, 2022
City of Union City Page 21
Economic Development Challenges and Opportunities
Union City’s Plan was developed in 2015 and was updated in 2018. Since then, a citywide strategic plan was adopted in FY 2019-20 as well as its 2040 General Plan. Both are important source documents for an updated Economic Development Strategic Plan (with the update to be starting in a few months). The City Charter calls for a new Economic Development Strategic Plan every five years or as economic conditions change. Clearly, due to the pandemic, the major changes in employment and commuting, retail consumer habits, and economic conditions have changed significantly.

Union City’s Plan could be updated to add several additional activities including the following:

1. An analysis of existing retail opportunities as well as research regarding retail leakage (supply and demand).

2. An analysis of existing business clusters and how they can be strengthened and networked for increases in business-to-business sales.

3. An analysis of cluster and sectoral employment trends to help identify workforce development opportunities.

4. A land use analysis of an industrial area most likely to convert to higher density uses with any needed changes to existing zoning standards such as higher floor area ratio (FAR) limits. This might be followed by a specific plan for the area that identifies the appropriate infrastructure required to support the intensified uses.

5. Revitalization and conversion strategy (which could include demolition and building new) for retail, warehouse, industrial and manufacturing areas with an emphasis on site and district positioning, including Highest and Best Use studies and Adaptive Reuse research.

6. A hotel and hospitality market study to identify the support for additional hotels in the City, the most likely locations for attracting hotels, and the most appropriate type of hotel to pursue.

7. A fiscal analysis that projects potential new revenues from increased business and development activity and the likely timing of realizing new revenues.

8. An economic development grant strategy to actively seek and identify project funding opportunities from state and federal sources.

9. A marketing, branding, identity, and communications strategy The existing set of strategic policies and action items could be revised and supplemented based on data for consideration by policy makers and implementation by staff. An annual review and update of the plan would also be appropriate to adjust strategies and activities to changes in the business climate and market. With fresh goals, research, data and analytics as well as redefined key performance indicators and refined implementation action plans, the City would be well positioned for the future.

City Council/RSA Agenda 331 Tuesday, October 11, 2022
City of Union City Page 22
Economic Development Challenges and Opportunities
An Investment in Additional Resources Will Be Required
Focusing on the long-term sustainability and expansion of the City’s tax base will likely require an investment of additional resources in its economic development program and efforts.

Staffing
The economic development function in Union City is located in the Department of Economic and Community Development and is staffed by one full-time economic development manager and a part-time administrative assistant (0.25 FTE). The Economic Development Manager is supported by the Economic and Community Development Department Director. The Economic Development Manager currently spends about half of their time on performing the role of executive director for the Union Landing PBID, which leaves half their time for analysis, business retention efforts, collaboration with regional partners, and business attraction efforts.

As a part of this engagement Management Partners also updated comparable agency data that was presented as a part of a prior management audit performed for Union City. The peer agencies for that engagement were Napa, Petaluma, Redwood City, San Rafael, Tracy, and Walnut Creek. In addition to those agencies, Management Partners added Fremont, Hayward, and Milpitas. Specifically, Management Partners wanted to understand the economic development staffing levels in each of the peer agencies.

Table 6 shows the total FTE and position titles that perform the economic development functions in each comparable agency as reported in each agency’s budget document.

As the table shows, Union City is the only agency among all peers that has just one full-time staff member focused on economic development. Each of the peer agency have at least two fulltime economic development staff.

Table 6. Comparable Agency Economic Development Staffing Peer Cities Total FTE Position Titles
Fremont 2.5 Economic Development Manager
Economic Development Specialist
Management Analyst (0.5)
Hayward 3.5 Economic Development Manager
Economic Development Specialist (2)
Senior Secretary (0.5)
Milpitas 3 Economic Development Director
Economic Development Coordinator
Economic Development Specialist
Napa 3 Economic Development and Redevelopment Manager (FY 2021 frozen) Senior Development Project Coordinator
Development Project Coordinator
City Council/RSA Agenda 332 Tuesday, October 11, 2022
City of Union City Page 23
Economic Development Challenges and Opportunities
Peer Cities Total FTE Position Titles
Petaluma 2 Economic Development Manager
Management Analyst
Redwood City 2 Economic Development Manager
Housing and Economic Development Specialist II
San Rafael 2 Director of Economic Development and Innovation Senior Management Analyst
Tracy 2 Economic Development Manager
Economic Development Management Analyst II
Union City 1 Economic Development Manager
Walnut Creek 2 Economic Development Manager
Economic Development Project Manager
Note: There is support from an administrative analyst in Union City (0.25 FTE) that is not included in this comparison because it is not included in the budget document. We would expect similar administrative support in comparison jurisdictions although that was also not specified in budget documents.

As mentioned previously, the Economic Development Manager spends nearly 50% of their time supporting the Union Landing PBID and the remainder on all other economic development efforts. Pursuing a robust economic development agenda as set forth by the community and Council’s policies and priorities will invariably need more support than one full time staff member can provide.

Consulting Services
To further enhance existing economic development activities, strengthen the local business ecosystem, and increase the tax base, City leaders should also consider supplementing efforts through contract and consulting services to assist City staff. As part of realizing this initiative, we suggest that City staff contract with subject matter experts to provide support creating the strategic plan and, and as important, conducting market studies, industry analysis, marketing, and associated activities.

Conclusion
The Union City business ecosystem has proven to be resilient through the pandemic. Key contributors to its ability to weather economic uncertainty are its industry and sector diversity, as well as its position as a regional commerce hub. With economic indicators trending positively for the Bay Area at large, Union City has an opportunity to further establish itself as an ideal location for businesses by continuing to provide City services and public safety through sound fiscal policy that will help grow the local economy.

City Council/RSA Agenda 333 Tuesday, October 11, 2022
City of Union City
Economic Development
Strategies
City Council Meeting
October 11, 2022 Pat O’Keeffe, Special Advisor Slater Matzke, Special Advisor City Council/RSA Agenda 334 Tuesday, October 11, 2022
Presentation Overview
2 Setting the Context
Economic Development Challenges
Economic Development Strategies
Wrap Up
City Council/RSA Agenda 335 Tuesday, October 11, 2022
Revenue Enhancement Requires a
Long-Term Commitment and Focus
• One-half cent sales tax revenue loss cannot be bridged through new sales tax generating businesses in the nearterm, mid- or even long-term (Council has placed a sales tax renewal on the November ballot). • Economic development should remain focused on
strategies that lead to revenue enhancement and a
resilient economy over the long-term.
• A stable city workforce, adequate public services and a safe community are critical to business attraction and
retention.
3 Our Observations
City Council/RSA Agenda 336 Tuesday, October 11, 2022
The City Has Worked to Remove Barriers
4 Engaged Kosmont to
conduct a retail and
zoning report focused
on preserving Union
Landing retail revenue
Updated Zoning Code
to streamline the
review process related
to non-residential uses
Staff assist developers
through development
review process
Incentivize businesses
with a business license
holiday (expired)
Staff provide site
selection support for
prospective businesses
Staff liaise with local
and regional
organizations to
identify economic
development
opportunities
City Council/RSA Agenda 337 Tuesday, October 11, 2022
What Businesses Look for in Locating: Talent, Location, Opportunity Skilled workforce
and talent pool
Appropriate site
requirements for
current and future
operations
Suitable business
ecosystem and
access to markets
Streamlined
development and
permitting process
Stable City
government
workforce
Adequate safety
and community
services
Spending power
for retail
5 City Council/RSA Agenda 338 Tuesday, October 11, 2022 2021 Q3 Sales Tax By the Numbers…
• Sales tax revenue is diversified across a
few sectors
• Business-to-business is a significant sales
tax revenue driver in Union City, accounting for 26% of sales tax revenue • Followed closely by construction (22%),
general retail (21%), and food products (20%)
6 General Retail
$1,891,295 (21%)
Food Products
$1,770,578 (20%)
Transportation
$840,404 (10%)
Construction
$1,948,669 (22%)
Business To
Business
$2,344,519 (26%)
Miscellaneous
$87,246 (1%)
Sales Tax Revenue by Industry
Source: Avenu Insights and Analytics Q3 2021 Data
Market studies, sector and cluster analyses are needed to inform future business expansion attraction and retention (BEAR) efforts City Council/RSA Agenda 339 Tuesday, October 11, 2022
Current Economic Development Program Challenges
7 Lack of available real estate (public and private) for economic development will require the City to target BEAR (Business Expansion Attraction and Retention) efforts informed by market studies, sector and land use analysis.Program and business data and information are critical to focused economic development strategies.A robust economic development program requires full-time focus on targeted marketing and BEAR efforts.

City Council/RSA Agenda 340 Tuesday, October 11, 2022
Current Economic Development Program is Challenged
8 One full-time Economic Development Manager with a 0.25 administrative assistant is not sufficient to meet the City’s economic development goals.The Union Landing Property-Based Improvement District (PBID) may be successful; however, it severely impacts ED Manager’s capacity to focus on data analysis that informs outreach. (ED Manager spends approximately 50% of time assisting PBID.)Existing ED staffing level will not allow an emphasis on expansion, attraction and retention initiatives.

City Council/RSA Agenda 341 Tuesday, October 11, 2022
Union City Economic Development Staffing Is Low
9 Peer Cities
Total Economic Development FTE
Fremont
4 Hayward 3.5Napa
3 Petaluma
2 Redwood City
2 San Rafael
2 Tracy
2 Union City 1.25*Walnut Creek
2 Sources: FY 2021-22 Budgets*Approximately 50% of ED Manager’s time allocated to Union Landing City Council/RSA Agenda 342 Tuesday, October 11, 2022
Economic Development
Will Be Strengthened By…
Conducting market studies, sector and cluster analysis to inform economic development strategy – data is needed
Launching targetedbusiness expansion, attraction, and retention (BEAR) efforts
Designing and implementing a strategically targeted branding and marketing campaign Aligning economic development resources to meet Council goals Conducting a land
use analysis in
support of conversion to higher density commercial uses Completing the update to the economic development strategic plan 10 City Council/RSA Agenda 343 Tuesday, October 11, 2022 Kosmont Study
11 Analyzed current zoning subdistricts and reviewed demographic and market data specific to Union Landing and retail centers Supported rezoning of Union Landing to reduce development barriersProvided rich information on Union Landing and areas of improvement for the City’s zoning and permitting process.
Highlighted the need for similar City-level and regional data to inform economic development strategy and enhance BEAR initiatives.

Kosmont Companies performed a retail study and zoning
report focusing on Union Landing
City Council/RSA Agenda 344 Tuesday, October 11, 2022
A Sector and Cluster Analysis Will
12 Identify
geographically
concentrated
industries
Provide data,
analytics and
market
intelligence
Assess
opportunities
in Union City
and the region
Inform
targeted
attraction and
recruitment
strategies
Identify factors
unique to
Union City that
influence
economic
development
efforts
City Council/RSA Agenda 345 Tuesday, October 11, 2022
Economic Development Is a Big Lift
 To ensure a smart growth economic development
strategy requires:
 Executive level focus Expertise, capacity, and leg work built on data Identification of existing assets and barriers Identification of specific sites or area(s) of focus Sector data and analytics to help define context and place-based assets
 Key performance indicators (KPIs) and goals Policy tools that leverage workforce development, public-private partnerships to support and incentivize development 13 Smart Growth is a strategy that
builds on existing assets, takes incremental actions to strengthen communities, and builds long-term value to attract a range of investments City Council/RSA Agenda 346 Tuesday, October 11, 2022
Pursuing Major Economic Development
Opportunities Will Require…
14 Strategic Marketing and
Branding
Implementing strategic marketing,
branding and outreach to target
groups (site selectors, facilities
managers, developers, businesses)
Strategic Prioritization
Updating economic development
strategic priorities and focus
Data Gathering
Conducting industry, sector and
cluster analyses to identify existing
needs of the Union City business
ecosystem and opportunities for
business recruitment and attraction
Applying Data
Analysis
Using data and analytics
to enhance BEAR
Economic Development
Resources
Providing additional economic
development staff resources
City Council/RSA Agenda 347 Tuesday, October 11, 2022
Major New Revenue from Economic Development Takes Time
• Trends and opportunities need to be
identified to lay the groundwork for BEAR efforts
• Set realistic expectations for development
project lifecycles
• Economic development alone will not close
the revenue gap of losing the half-cent sales tax if not approved by voters • Union City will continue to have significant
unmet capital needs and the utility user’s tax is set to expire in 2028 15 City Council/RSA Agenda 348 Tuesday, October 11, 2022 Next Steps
Elevate the economic development focus within the
organization
Perform sector and cluster analysesComplete an updated economic development strategic plan
 Confirm goals and strategies for economic development Allocate additional staffing and budget resources to:
 Implement focused BEAR efforts Design and implement strategic marketing and branding efforts to targeted groups
16 Photo from City of Union City Facebook
City Council/RSA Agenda 349 Tuesday, October 11, 2022
Questions and Comments
City Council/RSA Agenda 350 Tuesday, October 11, 2022