Union City City Council
December 12, 2023

AGENDA

CITY OF UNION CITY/

SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY MEETING
CAROL DUTRA-VERNACI, Mayor
GARY SINGH, Vice Mayor (District 1)
JAMIE PATIÑO,Councilmember (District 2)
JEFF WANG, Councilmember (District 3)
SCOTT SAKAKIHARA, Councilmember (District 4)
Tuesday, December 12, 2023
7:00 PM
City Hall- Council Chamber
34009 Alvarado-Niles Road
Union City, CA 94587

1. CALL TO ORDER

1.a. Pledge of Allegiance

1.b. Roll Call

2. UNFINISHED BUSINESS - None

3. PROCLAMATIONS AND PRESENTATIONS

3.a. Appointment of Vice Mayor

3.b. Council Assignments To Various Boards And Commissions

4. ORAL COMMUNICATIONS
An individual speaker shall have three minutes to address the Council on non-agenda items under the Oral Communications section of the agenda. The Chair may, in their discretion, lower the time limit to less than three minutes based on the number of speakers and/or business to be conducted by the City Council.

Members of the public who wish to speak to the Council under the first Oral Communications section are requested to complete a City Council/RSA Agenda 1 Tuesday, December 12, 2023
speaker card, giving their name and city of residence. If a speaker wants further notification from the City, the speaker may include a mailing address. Neither a speaker card or identification of name, city of residence or mailing address are required to provide public comment but are requested for record keeping purposes.

5. CONSENT CALENDAR
All matters listed on the Consent Calendar are considered routine in nature and will be enacted by one motion. If discussion is required on a specific item, it will be removed from the Consent Calendar and considered separately.

5.a. Waived Further Reading of Proposed Ordinance
(This permits reading the title only in lieu of reciting the entire text of any proposed Ordinance.)

5.b. Adopt A Resolution Authorizing The City Manager To Execute The Fourth Amendment To The Consulting Services
Agreement With William R. Gray And Company, Inc., DBA
Gray-Bowen-Scott, In The Amount Of $360,000, A Total NotTo-Exceed Amount Of $904,000, For The Progress Reporting And Reimbursement Processing For Alameda County
Transportation Commission (Alameda CTC)-Funded Projects

5.c. Adopt A Resolution Authorizing The City Manager To Execute The Second Amendment To The Consulting Services
Agreement With Park Engineering, In The Amount of $100,000, For Encroachment Permit Inspection Services, For A Total NotTo-Exceed Amount Of $274,000

5.d. Adopt A Resolution Authorizing The City Manager To Execute The Second Amendment To The Consulting Services
Agreement With Urban Planning Partners, In A Form Approved By The City Attorney, To Increase The Agreement Amount By $300,000, For A Total Not To Exceed Amount Of $800,000, For Planning Division Support, And To Extend The Agreement To January 8, 2026

5.e. Adopt A Resolution Authorizing The City Manager To Execute The Seventh Amendment To The Consulting Services
Agreement With 4Leaf, Inc., In A Form Approved By The City Attorney, To Increase The Agreement Amount By $600,000, For A Not To Exceed Amount Of $2,500,000, For Building
Division Support

5.f. Adopt A Resolution Approving An Amendment To Update The Class Specification For The Classification Of Recreation Supervisor

5.g. Adopt A Resolution Receiving And Accepting The Audited Financial Statements Of The Measure B Fund, The Measure BB Fund, The Measure F Fund, And The TDA Fund For The
Fiscal Year Ended June 30, 2022
City Council/RSA Agenda 2 Tuesday, December 12, 2023

5.h. Adopt A Resolution Appointing Subru Bhat To The Alameda County Mosquito Abatement District Board Of Trustees For A Two-Year Term Expiring January 1, 2026

6. PUBLIC HEARINGS - None

7. CITY MANAGER REPORTS

7.a. Consider And Provide Direction Regarding Potential New Commercial Cannabis Application Process

7.b. Adopt A Resolution Authorizing The City Manager To Execute A Memorandum Of Understanding (MOU) With The San Joaquin
Regional Rail Commission (SJRRC) Regarding The Process, Roles And Responsibilities For The Union City Intermodal Station, Phase 3/Intercity Rail Station Project, City Project No. 23-14

7.c. Economic Development Update

8. SUCCESSOR AGENCY TO REDEVELOPMENT AGENCY -
None

9. AUTHORITIES AND AGENCIES - None

10. CITY COMMISSION / COMMITTEE REPORTS - None

11. ITEMS REFERRED BY COUNCIL

12. GOOD OF THE ORDER

13. CLOSED SESSION - None

14. ADJOURNMENT

MEETING INFORMATION
Unless otherwise provided, the City Council's regular meetings are held in person on the second and fourth Tuesday of each month at 7:00 p.m. inside the Council Chamber at City Hall, 34009 AlvaradoNiles Road, Union City CA 94587. The City continues to offer an opportunity to observe Council meetings via Zoom at: https://unioncity-org.zoom.us/j/81719037355 Passcode: u8SH9cH^ Meetings are broadcast live through UCTV Channel 15 and via live stream at:
https://unioncity.org/199/City-Meetings-Video
Members of the public will not have the ability to provide comment via Zoom except under limited circumstances specified below. The ability to observe remotely as identified above is predicated on the technology being available and functioning without technical difficulties. Should the remote platform(s) not be available, or become non-functioning, or should the City Council otherwise encounter technical difficulties that makes the platform(s) unavailable, the City Council will proceed with the items of business in person unless otherwise prohibited by law.

City Council/RSA Agenda 3 Tuesday, December 12, 2023
Any writings or documents provided to a majority of City Council members relating to each item of business referred to on this agenda are available for review on the City's website at www.unioncity.org or during regular business hours in the Office of the City Clerk located at 34009 Alvarado-Niles Road, Union City CA 94587.

In Compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, you should contact the Office of the City Clerk at (510) 675-5448. Notification 36 hours prior to the meeting will enable the City to make reasonable arrangements to assure accessibility to this meeting. The City also provides closed captioning of all its Regular City Council Meetings for the hearing impair.

ADDRESSING THE CITY COUNCIL
In Person Public Comment: Members of the public may address the Council on a matter on the agenda or during the Public Input portion of the meeting. Members who wish to speak are requested to complete a speaker card, giving their name and city of residence. If a speaker wants further notification from the City, the speaker may include a mailing address. Neither a speaker card nor identification of name, city of residence or mailing address are required to provide public comment but are requested for record keeping purposes.

Written Comment: To provide written comment on an item on the agenda or to address the Council about an issue during Public Comment, you may send an email to [email protected]. Please include the phrase "public comment" in the subject line and note the agenda item number that you want to address. Written comments will be e-mailed to the City Council and made publicly available.

Public Comment via Zoom: As indicated above, the public cannot address the Council via Zoom unless the City is required to provide such opportunity pursuant to AB 2449. In the event that members of the public are allow to participate via Zoom pursuant to AB 2449, the Mayor will make an announcement at the beginning of the meeting. Raise your virtual hand to notify the host that you would like to speak during the item that you wish to speak on.

CITY COUNCIL NORMS AND GUIDELINES (Resolution No. 6129-23; Adopted May 23, 2023) The City Council of the City of Union City comply with the following norms:

1. We conduct ourselves in a professional manner, treat everyone with respect, and act with high integrity, always putting the interests of the City of Union City ahead of self-interests in accordance with our code of ethics.

2. We respect the Council-Manager form of government, and do not interfere with the City Manager's role or any professional duties of City staff.

City Council/RSA Agenda 4 Tuesday, December 12, 2023

3. We recognize that matters of confidential nature are to be kept private and undisclosed.

4. We respect each other's opinions and are supportive of each other's work advocating for the City, and we ensure that all voices are heard. We do not criticize others for having a different point of view, and we agree to disagree respectfully.

5. We understand that the City Council acts as a body, all members are equal, and policy direction is only given by a majority vote of the City Council. Once a decision is made, all members of the City Council must respect the City Council's direction.

6. We will be prepared for City Council meetings and ask our questions of the City Manager in advance so we can avoid surprising City staff at meetings.

7. We do not criticize City staff publicly or to others and will refrain from directing them. Instead, we will take our concerns and questions privately to the City Manager.

8. We will govern on an at-large basis, although elected by districts. We will maintain a citywide perspective and consider the needs and interests of the entire community.

9. We will continue to allocate resources based on long-term strategic priorities and efforts, with consideration of citywide service levels and financial capacity.

10. We understand customer service is the priority and each member of the City Council will help constituents regardless of the district in which they reside or from which a Councilmember themselves is elected.

11. We recognize the significant importance of attendance and participation at City Council meetings in proceeding with City business. All members of the City Council should endeavor to miss no more than two regular meetings per calendar year absent extraordinary circumstances. Members of the City Council should, absent unforeseen circumstances, provide a minimum of sixty days' notice to the City Council of planned absences during the Good of the Order or Items Referred by Council portion of the City Council agenda, as appropriate.

May these Council Norms be administered and enforced in the following manner:

1. Councilmembers have the primary responsibility to assure that ethical standards are understood and met by the Council, and that the public can continue to have full confidence in the integrity of government.

2. The Mayor and the Council have the responsibility to intervene when action of its members are in violation of Council Norms.

3. The City Council can review and revise the Council Norms as needed.

4. During City Council discussions, deliberations, and proceedings, the Mayor is designated City Council/RSA Agenda 5 Tuesday, December 12, 2023
with the primary responsibility to ensure that Councilmembers adhere to the Council Norms.

CERTIFICATION OF MEETING NOTICE AND AGENDA POSTING
This notice/agenda was posted at least 72 hours in advance of the meeting date, in accordance with the Ralph M. Brown Act, on the City's Website and on the bulletin board of City Hall.

City Council/RSA Agenda 6 Tuesday, December 12, 2023
Agenda Item
DATE: 12/12/2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: MARILOU AYUPAN, PUBLIC WORKS DIRECTOR
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO

EXECUTE THE FOURTH AMENDMENT TO THE CONSULTING
SERVICES AGREEMENT WITH WILLIAM R. GRAY AND COMPANY,
INC., DBA GRAY-BOWEN-SCOTT, IN THE AMOUNT OF $360,000, FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $904,000, FOR THE PROGRESS

REPORTING AND REIMBURSMENT PROCESSING FOR ALAMEDA

COUNTY TRANSPORTATION COMMISSION (ALAMEDA CTC)-FUNDED

PROJECTS
Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to execute the Fourth Amendment to the Consulting Services Agreement with William R. Gray and Company, Inc., DBA Gray-Bowen-Scott, in the amount of $360,000, for a total not-to-exceed amount of $904,000, for progress reporting and reimbursement processing for Alameda County Transportation Commission (Alameda CTC)- funded projects.

STRATEGIC PLAN ALIGNMENT
This agenda item is in alignment with the following:

Goal D, Strategy 1: Environmental Sustainability and Infrastructure - Continue the build-out of the City’s Bicycle and Pedestrian network and with an emphasis on closing gaps, addressing safety concerns, and increasing connectivity to the Station District.

Goal D, Strategy 2: Environmental Sustainability and Infrastructure – Implement the City’s capital improvement plan.

BACKGROUND
The mission of Alameda County Transportation Commission (Alameda CTC) is to plan, fund and deliver City Council/RSA Agenda 7 Tuesday, December 12, 2023
transportation projects and programs that expand access and improve mobility to foster a vibrant and livable Alameda County. Alameda CTC coordinates transportation efforts; programs local, regional, state, and federal funding; and delivers projects and programs including those approved by voters in Alameda County’s Transportation Expenditure Plan (TEP) for Measure B, Measure BB and Vehicle Registration Fee (VRF) funds.

Alameda CTC makes monthly direct local distribution (DLD) payments of Measure B, Measure BB and VRF funds to Union City for transportation improvements related to the Local Streets and Roads Program and the Bicycle and Pedestrian Program. Alameda CTC also makes monthly DLD payments of the same funds to UC Transit for the Paratransit Program and the Transit Program. At the end of each fiscal year, Public Works and UC Transit gather funding and project documentation weeks in advance and coordinate with the Finance Department for preparation of the annual Compliance Report Forms at the end of December.

Alameda CTC also awards and oversees the expenditure of capital grant funds to projects and programs through Project Funding Agreements (PFA) with localcities.

Union City currently has four (4) active Project Funding Agreements with Alameda CTC and within the past 12 months has closed out three (3) Project Funding Agreements. See Attachment 2 for Alameda CTC along with Metropolitan Transportation Commission (MTC) List of Grant Funded Projects, totaling over $23.0 million.

DISCUSSION
Transportation projects funded with Alameda CTC funds require an extensive reporting and documentation process with due dates that are both semi-annual and annual. This reporting process includes a Project Progress Report, which includes detailed project status, reporting actions, anticipated reporting actions, procurement status, amendments, performance measures, expenditures, reimbursements, annual publicity requirements and cash flow reporting of Alameda CTC funds. Additionally, any changes to a project scope, cost, or schedule require specific reporting on an Amendment Request Form. Finally, the capital grants require Union City to expend local funds first and then prepare the Request for Reimbursement package to Alameda CTC for their review and approval. Preparation and submittal of the Project Progress Report, Amendment Request Forms, and Request for Reimbursement Form packages is time consuming and requires special knowledge about reporting requirements. It is not unusual for Alameda CTC to require multiple iterations of submittals before a reimbursement package is approved for payment.

On April 14, 2020, the City entered into a Consulting Services Agreement, C5428, with William R. Gray and Company, Inc., DBA Gray-Bowen-Scott (GBS), in the amount of $74,000, to assist the Public Works and Finance Departments with the preparation and timely submittal of the Project Progress Reports and the Request for Reimbursement packages for Alameda CTC-funded projects. GBS, who supports other small cities with transportation fund reporting, was tapped to support Union City because of their expertise with Alameda CTC, state and federal funds reporting and reimbursement processes. GBS has successfully assisted Finance and Public Works staff with the year-end closeout of active transportation projects, and the City is now on schedule with the Alameda CTC-funded projects reporting.

On July 27, 2021, the City Council adopted Resolution No. 5809-21, approving the First Amendment to the Consulting Services Agreement with GBS (C5428b), in the amount of $150,000, to enable continued support and assistance to the Public Works and Finance Departments, bringing the total not-to-exceed amount to $224,000.

Most recently, Alameda CTC has revised the reporting requirements for the Local Business Contract Equity (LBCE) Program. This program creates economic growth and jobs within Alameda County by requiring local City Council/RSA Agenda 8 Tuesday, December 12, 2023
contracting that supports residents and businesses in Alameda County. The LBCE Program helps to identify and engage the participation of Local Business Enterprise (LBE), Small Local Business Enterprise (SLBE) and Very Small Local Business Enterprise (VSLBE) firms located in Alameda County on applicable contracts as specified in Section I.C (Applicability). Further, the LBCE Program contributes to the overall economic vitality of the County by:

1. Encouraging businesses to locate and remain in Alameda County; and

2. Providing employment opportunities for residents of Alameda County; and

3. Generating economic activity and stimulating the localeconomy.

Sponsor agencies are to ensure that Alameda CTC-funded projects within their jurisdiction utilize LBE/SLBE/VSLBE businesses or at least notice and give the opportunity to capture local funds. To ensure compliance is being met, Alameda CTC requires that the sponsor agencies submit bi-annual reports that track and verify the use of funds.

On October 12, 2021, the City Counciladopted Resolution No. 5841-21, which accepted a $4,200,000 Grant from Alameda County Transportation Commission (Alameda CTC), Project Funding Agreement No. A22- 0053, for Final Design of Phases (Segments) 1 and 2 for the Quarry Lakes Parkway (formerly East West Connector) Project, City Project No. 18-04. One of rare requirements specific to the Quarry Lakes Parkway’s funding agreement is that City agrees to host quarterly, publicly noticed design updates for the benefit of the public and bicycle, pedestrian, and transit advocates, as identified as (h) in Alameda CTC’s Resolution No. 20-013. These required quarterly meetings are now part of the City’s Bicycle and Pedestrian Advisory Commission (BPAC) meetings. BPAC meeting minutes along with project presentations are now required to be included in Alameda CTC’s project quarterly reports.

On August 9, 2022, the City Counciladopted Resolution No. 5991-22, approving the Second Amendment to the Consulting Services Agreement (C5428c), in the amount of $240,000, for a total not-to-exceed amount of $464,000, to continue to assist the Public Works and Finance Departments with Project Progress Reports, Amendment Request Forms, Request for Reimbursement packages and Close-Out documentation for seven (7) active Alameda CTC-funded projects and the bi-annual reporting for Alameda CTC’s Local Business Contract Equity (LBCE) Program.

On April 11, 2023, the City Counciladopted Resolution No. 6100-23, approving the Third Amendment to the Consulting Services Agreement (C5428d), in the amount of $80,000, for a total not-to-exceed amount of $544,000, for progress reporting for transportation projects including consulting services to advise and assist the City concerning negotiations with Union Pacific Railroad for required railroad agreements related to planning, design, construction and maintenance of transportation projects on the Oakland, Niles and Coast Subdivision railroad tracks in Union City and provide a better understanding and guidance on design policies, requirements and approvals.

On June 27, 2003, the City Counciladopted Resolution No. 6152-23 accepting $1,800,000 from the 2024 Comprehensive Investment Program (CIP) from Alameda County Transportation Commission for the Union City Boulevard Bike Lanes (Phase II), City Project No. 17-29 and earmarking $450,000 of previously appropriated SB-1 funds to meet Local Match Requirement and authorize the City Manager to sign the required grant funding agreements, in a form approved by the City Attorney. Union City staff just received the draft Project Funding Agreement in the amount of $1,800,000 from Alameda CTC, which we are currently reviewing.

Staff continues to rely heavily on GBS to provide expertise and coordination for all active Alameda CTCfunded project reporting, reimbursement requests, LBCE program reports and, therefore, seeks to increase the contract amount by $360,000, bringing the total not-to-exceed amount to $904,000.

City Council/RSA Agenda 9 Tuesday, December 12, 2023

FISCAL IMPACT
The total cost for the Fourth Amendment to the Consulting Services Agreement with Gray-Bowen-Scott for preparation of the Project Progress Reports, Request for Reimbursement packages, Addendums and Project Closeout reports required for Alameda CTC-funded projects is $360,000 and will be funded with $141,380 of Measure BB Streets and Roads funds (Account Number 2545-3103-33003-54110) and $218,620 of Public Improvement funds (Account Number 4160-3103-33003-54110) identified in the recently approved Five-Year Capital Improvement Plan (CIP) for FiscalYear 2023-2024 to FiscalYear 2027-2028, bringing the total not-toexceed amount to $904,000.

There is no impact to the General Fund.

RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to execute the Fourth Amendment to the Consulting Services Agreement with William R. Gray and Company, Inc., DBA Gray-Bowen-Scott, in the amount of $360,000, for a total not-to-exceed amount of $904,000, for progress reporting and reimbursement processing for Alameda County Transportation Commission (Alameda CTC)- funded projects.

Prepared by:

Marilou Ayupan, Public Works Director
Submitted by:

Marilou Ayupan, Public Works Director
ATTACHMENTS:

Description Type
Attachment 1 - Fourth Amendment Attachment
Attachment 2 - UCList of Grants Attachment
Resolution Resolution
City Council/RSA Agenda 10 Tuesday, December 12, 2023
Fourth Amendment to the Consulting Services Agreement
between City of Union City and Gray-Bowen-Scott

FOURTH AMENDMENT TO THE
CONSULTING SERVICES AGREEMENT (C5428)
THIS FOURTH AMENDMENT (the “Fourth Amendment”) is effective as of this 12th day of December, 2023 by and between THE CITY OF UNION CITY, a municipal corporation, (“City”) and WILLIAM R. GRAY AND COMPANY, DBA GRAY-BOWEN-SCOTT, ("Consultant"), collectively referred to as the "Parties." W I T N E S S E T H:

WHEREAS, on April 14, 2020, the Parties entered into a Consulting Services Agreement (C5428) (“Agreement”) wherein the Consultant will provide the City with consulting services related to reporting and programming of transportation funds, in the amount of $74,000; and WHEREAS, on July 27, 2021, the Parties entered into a First Amendment to the Agreement (“First Amendment”), C5428b, to further clarify the scope of services and increase the compensation by $150,000; and
WHEREAS, on August 9, 2022, the Parties entered into a Second Amendment to the Agreement (“Second Amendment”), C5428c, to further expand the scope of services and increase the compensation by $240,000; and
WHEREAS, on April 11, 2023, the Parties entered into a Third Amendment to the Agreement (“Third Amendment”), C5428d, to further expand the scope of services and increase the compensation by $80,000; and
WHEREAS, the Parties desire to further amend the Agreement to expand the scope of services to be provided by the Consultant and increase the compensation by $360,000; and WHEREAS, the City and Consultant desire to enter into this Fourth Amendment.

NOW, THEREFORE, the Parties hereto do mutually agree as follows:

1. The “Scope of Services”, as set forth in Exhibit A of the Agreement, is hereby amended to include the services contained in Exhibit A of this Fourth Amendment, attached hereto, and incorporated herein by reference.

2. The “Term of Services,” as set forth in the first sentence of Section 1.1 of the Agreement, is hereby extended to December 31, 2024.

3. The first sentence of Section 2 “COMPENSATION”, of the Agreement is hereby amended to reflect payment based upon a sum increase of Three Hundred Sixty Thousand Dollars ($360,000), as set forth in Exhibit B of this Fourth Amendment. The total compensation under the Agreement including this Amendment shall not exceed a City Council/RSA Agenda 11 Tuesday, December 12, 2023
Fourth Amendment to the Consulting Services Agreement
between City of Union City and Gray-Bowen-Scott

total contract amount of Nine Hundred Four Thousand Dollars ($904,000). The first sentence shall now read:

City hereby agrees to pay Consultant a sum not to exceed Nine Hundred Four Thousand Dollars ($904,000), notwithstanding any contrary indications that may be contained in Consultant's proposal, for services to be performed and reimbursable costs incurred under this Agreement.

4. All other provisions of the Agreement, remain unchanged except as modified by this Fourth Amendment.

IN WITNESS WHEREOF, the City and the Consultant have executed this Amendment effective as of the date hereinabove written.

THE CITY OF UNION CITY WILLIAM R. GRAY & COMPANY,

DBA GRAY-BOWEN-SCOTT
By By
Joan Malloy Leo S. Scott
City Manager President
Attest:
___________________________
Jennifer Phan
Acting City Clerk
Approved as to Form:
____________________________
Kristopher J. Kokotaylo
City Attorney
City Council/RSA Agenda 12 Tuesday, December 12, 2023
Fourth Amendment to the Consulting Services Agreement
between City of Union City and Gray-Bowen-Scott

EXHIBIT A

SCOPE OF SERVICES
Reporting and Reimbursements for Grant Funded Projects
GBS will assist Public Works/Finance with requirements for Grant Funded Projects.

Scope of Services include Agency Coordination and Preparation of Project Progress Reports, Amendment Requests, Request for Reimbursement and Close-Out process for Alameda CTC Funded Projects, and coordination with Alameda CTC, MTC, Caltrans and CTC.

Tasks to be completed include:
• Coordinate with City Project Managers and City Finance Dept • Grant Reporting requirements
o Progress reporting
▪ Quarterly
▪ Semi annually
o Reimbursement requests
▪ Quarterly or semi-annually
▪ Includes reviewing invoices to ensure they meet compliance for reimbursement requirements.
▪ Assist with reporting for ACTC’s LBE/SLBE/VSLBE Goals • Assist with Coordination with Alameda CTC staff.
o Review and submit information required to be included in ACTC planning and funding programs.
o Review and advise on other Alameda CTC related funding documents and assistance with communications.
o Alameda CTC Project Funding Agreements
▪ Review prior to execution
▪ Monitor milestones.
• Project delivery
• Expiration date
▪ Create and review agreement amendment requests.
• Assist with Coordination with MTC
o Review and submit information required to be included in MTC planning programs (i.e. RTP, TIP)
o Assistance with communications
o Assist with securing funding agreements.
o Assist with requesting reimbursement.
• Assist with Coordination with CTC staff.
o Assist with LATIP administration.
o Assist with STIP projects.
• Assist with Coordination with Caltrans staff.
o Assist with LATIP administration.
o Assist with Caltrans reimbursement requests.
o Assist with federal aid and funding requiring CTC actions. o Assist with update of DBE Goals and other FHWA requirements.

City Council/RSA Agenda 13 Tuesday, December 12, 2023
Fourth Amendment to the Consulting Services Agreement
between City of Union City and Gray-Bowen-Scott

EXHIBIT B

COST PROPOSAL
This scope will include support for multiple project categories, including:

A. ACTC Fund Admin. Support w/ Project Funding
Agreements (PFA) Projects $ 60,000
Includes projects such as: BART Railroad Ped At-Grade Crossing, UCB Bike Lanes B. East West Connector PFA and Quarry Lakes
Parkway (QLP) PFA $285,000
C. Federal and State Assistance - Other Grant Funded Projects $ 15,000 TOTAL- Contract Amendment #4 $360,000
City Council/RSA Agenda 14 Tuesday, December 12, 2023
Fourth Amendment to the Consulting Services Agreement
between City of Union City and Gray-Bowen-Scott
City Council/RSA Agenda 15 Tuesday, December 12, 2023 Page 5 of 5 Union City: List of Alameda CTC and MTC Transportation Funding Grants Prepared December 4, 2023

PROJECT
Fund Source
Grants Amount Reimbursements
Secured To Date
Total Project Cost
Bike and Ped Master Plan Update- Alameda CTC PFA No. A17-0126 $ 300,000 2000 Measure B $ 150,000 $ 150,000
$ 150,000
BART Station & RR Ped Crossing Improvements- Alameda CTC PFA A13-0058 $ 22,644,974 2010 Vehicle Registration Fee (VRF) $ 5,730,000 $ 1,944,826 $ 5,730,000
Union City Blvd Class 2 Bike Lanes - Alameda CTC PFA A17-0125 $ 18,800,000 2014 Measure BB $ 6,564,000
2104 Measure BB $ 1,751,000
CMA TIP $ 1,100,000
Transportation Fund for Clear Air (TFCA) $ 185,000
$ 9,600,000
Union City Traffic Signal Control Improvements -Alameda CTC & MTC Grants $ 1,724,910 AlaCTC- Transportation Fund for Clear Air
(TFCA)
$ 221,000
MTC IDEA $ 618,916
$ 839,916
Logan High & Guy Emanuele Pedestrian Improvements -AlaCTC PFA A22-0017 $ 179,000 Safe Routes to School (SRTS) Measure B $ 81,000 $ 81,000 $ 81,000
East West Connector (PFA A18-0046)/Quarry Lakes Parkway (PFA A22-0053) $ 214,000,000 EWC-1986 Measure B (Design Phase) $ 2,500,000
QLP-1986 Measure B (Design Phase) $ 4,200,000
$ 6,700,000
Intermodal Station Phase 3 - MTC Grant $ 67,010
State CalSTA $ 60,000 $ 60,000
$ 60,000
TOTALS $ 23,160,916 $ 6,072,879 $ 257,715,894
$ 375,221
$ 839,916
$ 2,621,916
GBS work tasks include:
• Compiling and submitting biennial or quarterly progress reports • Compiling and submitting biennial TFCA reports
• Compiling and submitting biennial local business enterprise reporting • Compiling and submitting reimbursements
• Compiling and submitting contract amendment requests
• Reviewing of design team consultant invoices
• Submitting regional planning and general Measure B program reporting and update requirements GBS also tracks milestones/requirements to maintain grant compliance such as:
• Outreach/annual article requirements
• Collecting documentation requirements
• Resolutions for agreements, contracts, project completion • Resolutions required of partner agencies (i.e., BART) • Proposal documentation
• Project PSE status
• Project closeout documentation
• Tracking Agreement start and expiration milestones
• Tracking interim project phase milestones (i.e. environmental clearance, PSE, ROW) City Council/RSA Agenda 16 Tuesday, December 12, 2023
RESOLUTION NO. XXXX-23

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

AUTHORIZING THE CITY MANAGER TO EXECUTE THE FOURTH

AMENDMENT TO THE CONSULTING SERVICES AGREEMENT WITH
WILLIAM R. GRAY AND COMPANY, INC., DBA GRAY-BOWEN-SCOTT, IN THE AMOUNT OF $360,000, FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $904,000, FOR THE PROGRESS REPORTING AND REIMBURSMENT

PROCESS FOR ALAMEDA COUNTY TRANSPORTATION COMMISSION
(ALAMEDA CTC) GRANT FUNDED PROJECTS.

WHEREAS, the mission of Alameda County Transportation Commission (Alameda CTC) is to plan, fund and deliver transportation projects and programs that expand access and improve mobility to foster a vibrant and livable Alameda County.

Alameda CTC coordinates transportation efforts; programs local, regional, state, and federal funding; and delivers projects and programs including those approved by voters in Alameda County’s Transportation Expenditure Plan (TEP) for Measure B, Measure BB and Vehicle Registration Fee (VRF) funds; and
WHEREAS, on November 13, 2014, the City Council adopted Resolution No. 4654-14, which authorized the City Manager to execute a Project Funding Agreement (PFA) A13-0058 with Alameda CTC, in the amount of $5,730,000, of VRF Grant Funds contributing to the BART Station, Phase 2 Project/Pedestrian Railroad At-Grade Crossing, City Project No. 14-14, estimated at $16,914,974, and funded with other federal transit and local grants; and
WHEREAS, on September 12, 2017, the City Council adopted Resolution No. 5121-17, which authorized the City Manager to execute a Project Funding Agreement (PFA) A17-0126 with Alameda CTC, in the amount of $150,000, for the Bicycle and Pedestrian Master Plan Update, City Project No. 17-30, and appropriated $150,000 for the required local match; and
WHEREAS, on September 12, 2017, the City Council adopted Resolution No. 5121-17, which authorized the City Manager to execute a Project Funding Agreement (PFA) A17-0125 with Alameda CTC, in the amount of $7,800,000, for the Union City Boulevard Bike Lanes Project, City Project No. 17-29, and appropriated $1,000,000 for the required local match; and
WHEREAS, on August 14, 2018, the City Council adopted Resolution No. 5374- 18, which authorized the City Manager to execute a Project Funding Agreement (PFA) A18-0046 with Alameda CTC, in the amount of $2,500,000, for the East West Connector Project, City Project No. 18-04, and Union City became the project sponsor for Quarry Lakes Parkway (formerly East West Connector) responsible for the Final Design and reevaluation of the Traffic Study of the estimated $320 million transportation corridor project; and
WHEREAS, on October 12, 2021, the City Council adopted Resolution No. 5841- City Council/RSA Agenda 17 Tuesday, December 12, 2023
Resolution XXXX-23

21, which accepted a $4,200,000 Grant from Alameda County Transportation Commission (Alameda CTC), Project Funding Agreement No. A22-0053, for Final Design of Phases (Segments) 1 and 2 for Quarry Lakes Parkway (formerly East West Connector) Project, City Project No. 18-04 only with the project cost estimate for Quarry Lakes Parkway, Phase 1 (7th Street Connection) at $16.7 million and for Quarry Lakes Parkway, Phase 2 at $20.3 million; and
WHEREAS, on December 14, 2021, the City Council adopted Resolution No. 5868-21, accepting an $81,000 Grant from Alameda County Transportation Commission, Project Funding Agreement A22-0017, for the enhancement of pedestrian infrastructure at James Logan High School and Guy Emanuele, Jr. Elementary School Project, City Project No. 21-27, and appropriating $98,000 as the required Local Match, with $48,000 from Gas Tax Funds (Fund 2510) and $50,000 from Measure BB Bike and Pedestrian Funds (Fund 2546), for a Total Project Cost of $179,000; and
WHEREAS, on June 28, 2022, the City Council adopted Resolution No. 5965-22, accepting a $221,000 Transportation Fund for Clean Air Grant from Alameda County Transportation Commission, Project Funding Agreement A19-0066.A1, for the construction of Union City IDEA Grant Traffic Signal Control Upgrades, City Project No. 17-27, and Passive Pedestrian Detection Improvement Project, City Project No. 17-27A, and increasing the revenue projections in the Capital Projects Fund by $221,000 and appropriating $221,000 to the Capital Projects Fund, as part the required City Local Match; and
WHEREAS, Alameda CTC-funded projects require quarterly, semi-annual, or annual Project Progress Reports, which include detailed project status, reporting actions, anticipated reporting actions, procurement status, amendments, performance measures, expenditures/reimbursements, annual publicity requirements and cash flow reporting of Alameda CTC funds and preparation of Amendment Request documentation for any changes to project scope, schedule, and project costs; and WHEREAS, Alameda CTC-funded projects require the preparation of quarterly, semi-annual, or annual Request for Reimbursement packages to Alameda CTC for their review and approval before Union City is reimbursed: and WHEREAS, on April 14, 2020, the City of Union City entered into a Consulting Services Agreement, C5428, with William R. Gray and Company, Inc. DBA Gray-BowenScott, in the amount of $74,000, to assist the Public Works and Finance Departments with the preparation and timely submittal of the Project Progress Reports, Amendment Requests and Request for Reimbursement packages for Alameda CTC-funded projects; and WHEREAS, on July 27, 2021, the City Council adopted Resolution No. 5809-21, approving the First Amendment to the Consulting Services Agreement (C5428b), with William R. Gray and Company, Inc., DBA Gray-Bowen-Scott, in the amount of $150,000, for a total not-to-exceed amount of $224,000, to allow for the continued support and assistance to the Public Works and Finance Departments for the four (4) active Alameda City Council/RSA Agenda 18 Tuesday, December 12, 2023
Resolution XXXX-23

CTC-funded projects; and
WHEREAS, on August 9, 2022, the City Council adopted Resolution No. 5991- 22, approving the Second Amendment to the Consulting Services Agreement (C5428c), with William R. Gray and Company, Inc., DBA Gray-Bowen-Scott, in the amount of $240,000, for a total not-to-exceed amount of $464,000, to continue to assist the Public Works and Finance Departments with Project Progress Reports, Amendment Request Forms, Request for Reimbursement packages and Close-Out documentation for seven (7) active Alameda CTC-funded projects and the bi-annual reporting for Alameda CTC’s Local Business Contract Equity (LBCE) Program; and
WHEREAS, on April 11, 2023, the City Council adopted Resolution No. 6100-23, approving the Third Amendment to the Consulting Services Agreement (C5428d), with William R. Gray and Company, Inc., DBA Gray-Bowen-Scott, in the amount of $80,000, for a total not-to-exceed amount of $544,000, for progress reporting for transportation projects including consulting services to advise and assist the City concerning negotiations with Union Pacific Railroad for required railroad agreements related to planning, design, construction and maintenance of transportation projects on the Oakland, Niles and Coast Subdivision railroad tracks in Union City and provide a better understanding and guidance on design policies, requirements and approvals; and
WHEREAS, on June 27, 2023, the City Council adopted Resolution No. 6152-23, accepting $1,800,000 from the 2024 Comprehensive Investment Program (CIP) from Alameda County Transportation Commission for the Union City Boulevard Bike Lanes (Phase II), City Project No. 17-29 and earmarking $450,000 of previously appropriated SB-1 funds to meet Local Match Requirement, and authorize the City Manager to sign the required grant funding agreements, in a form approved by the City Attorney; and WHEREAS, the Fourth Amendment, in the requested amount of $360,000, if approved, will bring the total not-to-exceed amount to $904,000, and will allow the firm of William R. Gray and Company, Inc., DBA Gray-Bowen-Scott, to continue to assist the Public Works and Finance Departments with Project Progress Reports, Amendment Request Forms, Request for Reimbursement packages and Close-Out documentation for Alameda CTC-funded projects for the now seven (7) active Alameda CTC-funded projects and the bi-annual reporting for Alameda CTC’s Local Business Contract Equity (LBCE) Program; and
WHEREAS, the Measure BB Streets and Roads Fund (Fund 2545) will provide $141,380 and the Public Improvement Fund (Fund 4160) will provide $218,620, totaling $360,000, to fund this Fourth Amendment for Project Progress Reports, Amendment Request Forms, Request for Reimbursement packages and Close-Out documentation for Alameda CTC-funded projects and there are sufficient funds available in the approved Five-Year Capital Improvement Plan (CIP) for Fiscal Year 2023-2024 to Fiscal Year 2027- 2028.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of City Council/RSA Agenda 19 Tuesday, December 12, 2023
Resolution XXXX-23

Union City hereby approves $141,380 from the Measure BB Street and Roads Fund (Fund 2545), and $218,620 from the Public Improvement Fund (Fund 4160), for this Fourth Amendment to the Consulting Services Agreement with William R. Gray and Company, Inc., DBA Gray-Bowen-Scott, for continued support and assistance to the Public Works and Finance Departments with Project Progress Reports, Amendment Request Forms, Request for Reimbursement and Close-Out documentation for Alameda CTC-funded projects; and
BE IT FURTHER RESOLVED that the City Council of the City of Union City hereby authorizes the City Manager to execute the Fourth Amendment to the Consulting Services Agreement with William R. Gray and Company, Inc., DBA Gray-Bowen-Scott, of Walnut Creek, CA.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 12th day of December 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
___________________________

CAROL DUTRA-VERNACI
Mayor
ATTESTED: APPROVED AS TO FORM:
_________________________ ___________________________
JENNIFER PHAN KRISTOPHER J. KOKOTAYLO
Acting City Clerk City Attorney
City Council/RSA Agenda 20 Tuesday, December 12, 2023
Agenda Item
DATE: 12/12/2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: MARILOU AYUPAN, PUBLIC WORKS DIRECTOR
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO

EXECUTE THE SECOND AMENDMENT TO THE CONSULTING

SERVICES AGREEMENT WITH PARK ENGINEERING, IN THE AMOUNT OF $100,000, FOR ENCROACHMENT PERMIT INSPECTION SERVICES, FOR A TOTAL NOT-TO-EXCEED AMOUNT OF $274,000
Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to execute the Second Amendment to the Consulting Services Agreement with Park Engineering, in the amount of $100,000 for Encroachment Permit Inspection Services, for a total not-to-exceed amount of $274,000.

STRATEGIC PLAN ALIGNMENT
This agenda item is in alignment with the following:

Goal D: Create a healthy, sustainable community and maintain and improve the City’s Infrastructure.

BACKGROUND
The inspection staff of the Public Works Engineering Division consists of a Supervising Construction Inspector, a Lead Construction Inspector, and a Public Works Inspector. The Public Works Inspector position became vacant in early June 2023 and Public Works has since contracted with Park Engineering to assist with the demanding inspection workload. Staff had projected that the vacant position would be filled by the end of this year, but that has not occurred; therefore, staff requests an amendment to the current contract with Park Engineering in the interim to enable continued services.

DISCUSSION
The Public Works inspection staff monitors construction of various projects to ensure they meet City engineering standards and are built to City specifications. There are multiple significant construction projects City Council/RSA Agenda 21 Tuesday, December 12, 2023
underway at this time, including several fiber optic infrastructure installations by communication companies throughout the City, as wellas PG&E electrical upgrade work on Hilton Street and Arizona Street, PG&E gas main and service laterals installation on Rocklin Drive and Bel-Aire Street, and Veasy Street sewer main repair work, and a major PG&E underground electrical project along Decoto Road.

The Public Works inspection staff oversees all the encroachment permit work done in the City. The City requires utility companies and development contractors who construct utility, traffic signal, roadway, or sidewalk improvements within the City’s public right of way to get an Encroachment Permit to ensure that proposed improvements meet the City’s design criteria and standard details. In the past three years, the City has issued over one thousand eighty-eight (1,088) Encroachment Permits totaling over $1,293,000 in revenue.

The significant revenues generated are deposited into the General Fund.

On June 1, 2023, the City entered into a Consulting Services Agreement with Park Engineering (C5997), in the amount of $74,000, to address the vacancy created by the departure of the Public Works Inspector. Due to an unforeseen increase in workload, staff requested additional funds for consultant support, and, on September 26, 2023, the City Council passed Resolution No. 6205-23, approving the First Amendment to the Consulting Services Agreement with Park Engineering, in the amount of $100,000. Staff continue to be satisfied with the performance of Park Engineering and consider their role essential to maintain the level of service that the Engineering Division needs to provide untila new Public Works Inspector is available and fully trained to begin work.

FISCAL IMPACT
The total cost of the Second Amendment to the Consulting Services Agreement with Park Engineering is $100,000 and will be funded with salary savings from the vacant Public Works Inspector position in the following funds:

RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to execute the Second Amendment to the Consulting Services Agreement with Park Engineering, in the amount of $100,000 for Encroachment Permit Inspection Services, for a total not-to-exceed amount of $274,000.

Prepared by:

Jose Gutierrez, Supervising Construction Inspector
Submitted by:

Marilou Ayupan, Public Works Director
ATTACHMENTS:

City Council/RSA Agenda 22 Tuesday, December 12, 2023
Description Type
Attachment 1 - Second Amendment Attachment
Resolution Resolution
City Council/RSA Agenda 23 Tuesday, December 12, 2023
Second Amendment to the Consulting Services Agreement
between City of Union City and Park Engineering

SECOND AMENDMENT TO THE
CONSULTING SERVICES AGREEMENT (C5997)
THIS SECOND AMENDMENT (the “Second Amendment”) is effective as of this 12th day of December, 2023 by and between THE CITY OF UNION CITY, a municipal corporation, (“City”) and Park Engineering, ("Consultant"), collectively referred to as the "Parties." W I T N E S S E T H:

WHEREAS, on June 1, 2023, the Parties entered into a Consulting Services Agreement (C5997) (“Agreement”) wherein the Consultant will provide the City with consulting services related to Encroachment Permit Inspection Services, in the amount of $74,000; and WHEREAS, on September 26, 2023, the Parties entered into a First Amendment to the Consulting Services Agreement (C5997b) (“First Amendment”) to increase the compensation by $100,000 to a contract amount of $174,000; and
WHEREAS, the Parties desire to further amend the Agreement to extend the term of services to be provided by the Consultant and increase the compensation; and WHEREAS, the City and Consultant desire to enter into this Second Amendment.

NOW, THEREFORE, the Parties hereto do mutually agree as follows:

1. The “Term of Services,” as set forth in the first sentence of Section 1.1 of the Agreement, is hereby extended to July 1, 2024.

2. The first sentence of Section 2 “COMPENSATION”, of the Agreement is hereby amended to reflect payment based upon a sum increase of One Hundred Thousand Dollars ($100,000). The total compensation under the Agreement including this Amendment shall not exceed a total contract amount of Two Hundred Seventy-Four Thousand Dollars ($274,000). The first sentence shall now read:

City hereby agrees to pay Consultant a sum not to exceed Two Hundred Seventy-Four Thousand Dollars ($274,000), notwithstanding any contrary indications that may be contained in Consultant's proposal, for services to be performed and reimbursable costs incurred under this Agreement.

4. All other provisions of the Agreement, remain unchanged except as modified by this Second Amendment.

IN WITNESS WHEREOF, the City and the Consultant have executed this Amendment effective as of the date hereinabove written.

City Council/RSA Agenda 24 Tuesday, December 12, 2023
Second Amendment to the Consulting Services Agreement
between City of Union City and Park Engineering

THE CITY OF UNION CITY PARK ENGINEERING
By By
Joan Malloy Jaemin Park
City Manager President
Attest:
___________________________
Jennifer Phan
Acting City Clerk
Approved as to Form:
____________________________
Kristopher J. Kokotaylo
City Attorney
City Council/RSA Agenda 25 Tuesday, December 12, 2023
RESOLUTION NO. XXXX-23

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

AUTHORIZING THE CITY MANAGER TO EXECUTE THE SECOND

AMENDMENT TO THE CONSULTING SERVICES AGREEMENT WITH
PARK ENGINEERING, IN THE AMOUNT OF $100,000 FOR
ENCROACHMENT PERMIT INSPECTION SERVICES, FOR A TOTAL NOTTO-EXCEED AMOUNT OF $274,000 WHEREAS, the Public Works Inspector position is currently vacant, and the City is actively recruiting to fill the position because of the workload of construction activities with active CIP projects and approved development projects; and WHEREAS, the Public Works inspection staff monitors construction of various projects to ensure they meet City engineering standards and are built to City specifications.

There are currently multiple significant construction projects underway, in addition to the encroachment permit work, which generates significant revenue for the City; and WHEREAS, on June 1, 2023, the City entered into a Consulting Services Agreement (C5997) with Park Engineering to provide inspection services, in the amount of $74,000; and
WHEREAS, on September 26, 2023, the City Council passed Resolution No. 6205-23, approving the First Amendment to the Consulting Services Agreement (C5997b) with Park Engineering, in the amount of $100,000, for a total not-to-exceed amount of $174,000; and
WHEREAS, the Second Amendment to the Consulting Services Agreement with Park Engineering, in the amount of $100,000, will allow for continued inspection services to assist the Public Works Engineering Division with CIP and development projects, grading and encroachment permits through July 1, 2024; and WHEREAS, the Second Amendment, in the amount of $100,000, will be funded with salary savings from the vacant Public Works Inspector position in the following funds:

FUND ACCOUNT NUMBER AMOUNT
General Fund 1110-3104-33004-51110 $20,000
Gas Tax Fund 2510-3104-33004-51110 $40,000
AW Vehicle Impact Fund 2620-3104-33004-51110 $40,000
Total $100,000
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Union City herby approves the Second Amendment to the Consulting Services Agreement City Council/RSA Agenda 26 Tuesday, December 12, 2023
Resolution No. XXXX-23

with Park Engineering, in the amount of $100,000, for encroachment permit inspection services, for a total not-to-exceed amount of $274,000; BE IT FURTHER RESOLVED that the City Council of the City of Union City hereby authorizes the City Manager to execute the Second Amendment to the Consulting Services Agreement with Park Engineering.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 12th day of December 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
_________________________

CAROL DUTRA-VERNACI
Mayor
ATTESTED: APPROVED AS TO FORM:
_________________________ ____________________________
JENNIFER PHAN KRISTOPHER J. KOKOTAYLO
Acting City Clerk City Attorney
City Council/RSA Agenda 27 Tuesday, December 12, 2023
Agenda Item
DATE: 12/12/2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CARMELA CAMPBELL, ECONOMIC AND COMMUNITY

DEVELOPMENT DIRECTOR
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO

EXECUTE THE SECOND AMENDMENT TO THE CONSULTING

SERVICES AGREEMENT WITH URBAN PLANNING PARTNERS, IN A

FORM APPROVED BY THE CITY ATTORNEY, TO INCREASE THE
AGREEMENT AMOUNT BY $300,000, FOR A TOTAL NOT TO EXCEED AMOUNT OF $800,000, FOR PLANNING DIVISION SUPPORT, AND TO EXTEND THE AGREEMENT TO JANUARY8, 2026
Staff recommends that the City Counciladopt a resolution authorizing the City Manager to execute the Second Amendment to the Consulting Services Agreement with Urban Planning Partners (“UPP”) (Agreement No.

C5289) for Planning Division support to: 1) increase the Agreement amount by $300,000, for a total not to exceed amount of $800,000, and 2) to extend the Agreement to January 8, 2026. There is no anticipated impact to the General Fund. Funding for these services is anticipated to be covered by project applicants.

STRATEGIC PLAN ALIGNMENT
Although this agenda item does not have alignment with a specific Strategic Plan goal, approval of the agenda item willensure the Planning Division willcontinue to provide essential services to the community.

BACKGROUND
UPP has been providing Planning Division support to the Economic and Community Development Department since January 2019. At that time, the City entered into the original Agreement with UPP for $300,000. In March 2021, the originalAgreement was amended to increase the amount by $200,000, for a total of $500,000, and to extend the Agreement to January 8, 2024.

UPP staff has provided planning support for various major development projects, including the Station East Residential/Mixed Use Project, which includes 894 residential units and 30,000 square feet of commercial space, located at Decoto Road and 7th Street, as well as the revisions to the Station East project in 2022, City Council/RSA Agenda 28 Tuesday, December 12, 2023
including amendments to the Tentative Map and the Development Agreement. UPP staff has also been the project planner for approvals of several of the Planning Areas (“PA”) of the Station East development, including PA 3, 4, 9 and 10 in 2022 and 2023. Other projects supported by UPP staff include MidPen’s development of 81 units of affordable family housing (Lazuli Landing), located at Mission Boulevard and D/E Streets, which received approvals in July 2020.

DISCUSSION
Staff is requesting to increase the amount of the existing Agreement by $300,000, which would bring the not to exceed amount of the Agreement to $800,000, and to extend the Agreement to January 8, 2026. This will allow UPP staff to continue working on existing projects and potentially work on future projects.

Currently, UPP staff is working on development applications for PA 1 and 2 within the approved Station East project, which are anticipated to be considered by the Planning Commission in 2024. Additionally, UPP staff recently began work on an 88-lot Vesting Tentative Map and Site Development Review application for a site at the end of Appian Way. UPP staff is also functioning as the project manager for the Hillside Specific Plan currently underway. These projects were previously being managed by the Division’s Senior Planner but he recently moved on. The services of UPP may be extended to other projects on an as-needed basis.

FISCAL IMPACT
No impact to the General Fund is anticipated at this time from the extension of the Agreement. Costs associated with UPP support are currently being paid by project applicants. Should UPP staff provide support on a project for which the applicant is not being billed on a time and materials basis, the costs would be covered entirely, or in part, by project application fees.

RECOMMENDATION
Staff recommends that the City Counciladopt the attached resolution authorizing the City Manager to execute the Second Amendment to the Consulting Services Agreement with UPP (C5289) for Planning Division support, in a form approved by the City Attorney, to increase the Agreement amount by $300,000, for a total not to exceed amount of $800,000, and to extend the Agreement to January 8, 2026.

Prepared by:

Derek Farmer, Planning Manager
Submitted by:

Derek Farmer, Planning Manager
ATTACHMENTS:

Description Type
Resolution - Second Amendment to CSA with Urban Planning Partners
Resolution
City Council/RSA Agenda 29 Tuesday, December 12, 2023
RESOLUTION NO. XXXX-23

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

AUTHORIZING THE CITY MANAGER TO EXECUTE THE SECOND AMENDMENT

TO THE CONSULTING SERVICES AGREEMENT WITH URBAN PLANNING

PARTNERS, IN A FORM APPROVED BY THE CITY ATTORNEY, TO INCREASE THE AGREEMENT AMOUNT BY $300,000, FOR A TOTAL NOT TO EXCEED AMOUNT OF $800,000, FOR PLANNING DIVISION SUPPORT, AND TO EXTEND THE AGREEMENT TO JANUARY 8, 2026
WHEREAS, on January 8, 2019, the City Council approved a Consulting Services Agreement with Urban Planning Partners, in an amount not to exceed $300,000, for Planning Division support including assistance with large development projects paid for by applicants including the Station East Residential/Mixed Use Project and the Lazuli Landing Project; and WHEREAS, on March 23, 2021, the City Council approved a First Amendment to the Consulting Services Agreement, in an amount not to exceed $500,000, for continued assistance with large development projects, including the Station East Residential/Mixed Use Project; and WHEREAS, the Second Amendment will allow Urban Planning Partners to continue working on the Station East Residential/Mixed Use Project and other planning projects, including the Hillside Specific Plan; and
WHEREAS, it is anticipated that funding for Planning Division support will be covered by project applicants; and
WHEREAS, staff recommends that the City Council authorize the City Manager to execute the Second Amendment to the Agreement with Urban Planning Partners to increase the Agreement amount by $300,000, for a total not to exceed amount of $800,000, and to extend the Agreement to January 8, 2026.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Union City hereby authorizes the City Manager to execute the Second Amendment to the Consulting Services Agreement (C5289) with Urban Planning Partners, in a form approved by the City Attorney, to increase the Agreement by $300,000, for a total not to exceed amount of $800,000, for Planning Division support, and to extend the Agreement to January 8, 2026.

City Council/RSA Agenda 30 Tuesday, December 12, 2023
Resolution No. XXXX-23

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 12th day of December 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
___________________________

CAROL DUTRA-VERNACI
Mayor
ATTESTED: APPROVED AS TO FORM:
_________________________ ___________________________
JENNIFER PHAN KRISTOPHER J. KOKOTAYLO
Acting City Clerk City Attorney
City Council/RSA Agenda 31 Tuesday, December 12, 2023
Agenda Item
DATE: 12/12/2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CARMELA CAMPBELL, ECONOMIC AND COMMUNITY

DEVELOPMENT DIRECTOR
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO

EXECUTE THE SEVENTH AMENDMENT TO THE CONSULTING
SERVICES AGREEMENT WITH 4LEAF, INC., IN A FORM APPROVED BY

THE CITY ATTORNEY, TO INCREASE THE AGREEMENT AMOUNT BY
$600,000, FOR A NOT TO EXCEED AMOUNT OF $2,500,000, FOR

BUILDING DIVISION SUPPORT
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute the Seventh Amendment to the Consulting Services Agreement (“Agreement”) with 4Leaf, Inc. (Agreement No.

C5255), in a form approved by the City Attorney, to increase the Agreement amount by $600,000, for a total not to exceed amount of $2,500,000, for Building Division support.

STRATEGIC PLAN ALIGNMENT
Although this agenda item does not have alignment with a specific Strategic Plan goal, approval of the agenda item willensure the Building Division willcontinue to provide essential services to the community.

BACKGROUND
4Leaf, Inc. (“Consultant”) has been providing support to the Building Division since 2018. Over the last five years, the City has entered into six amendments with the Consultant. Historically, the Consultant has provided staff augmentation to support inspection and plan checking services, due to vacancies in the Building Division.

Since the Chief Building/Senior Plans Examiner (“Building Official”) position was filled in 2022, the Consultant has primarily been providing staffing support for the still vacant Building/Code Compliance Inspector position and some administrative support. The vacant Building/Code Compliance position has been opened up several times, but the City has been unable to find a qualified applicant. The City has also requested additional inspection staff to cover staff vacations or temporary upticks in permit activity, which may also be needed in the future.

City Council/RSA Agenda 32 Tuesday, December 12, 2023
Although the majority of building permit plan reviews are handled by the City’s Building Official, there are still instances when plans are sent to the Consultant including when a project is very complex or requires a review by a technical specialist such as a structuralengineer.

DISCUSSION
Staff is requesting to increase the amount of the Agreement by $600,000 which would bring the not-to-exceed amount to $2,500,000. The current Agreement expires June 30, 2026, and no extensions are proposed at this time. During the Agreement term, it is anticipated that the Consultant will continue to provide staff support to the Building Division on an as-needed basis. In addition, it is anticipated that the Consultant will assist on reviews of building permit plans for future high-density, multi-family housing due to the complexity of those projects. In these instances, the Consultant charges 65 percent of the plan check fee the City collects, which can add up quickly.

The Consultant will also be providing support related to AB 838 implementation. AB 838 requires a city or county that receives a complaint of a substandard building or lead hazard violation, from a tenant, resident, or occupant, to inspect and document any violations. AB 838 includes specific direction on these aspects of the process as well as notification and resolution of the violations. The process is more involved than the City’s Code Enforcement process and may require the assistance of a specialist if the complaint involves violations related to lead hazards. For these reasons, the Building Official has engaged the Consultant to take the lead on any AB 838 related cases on behalf of the City. The requested increase in the Agreement amount takes these tasks into consideration.

FISCAL IMPACT
There is potential for impact to the General Fund for which there are sufficient funds budgeted in Account Number 1110-6102-41002-54110. It is anticipated that the costs associated with staff support related to Division vacancies will be covered by the cost savings associated with those positions.

General Funds monies may be needed to cover costs associated with staff support to cover vacations or temporary upticks in Building Division activity. In addition, there is potential for General Fund monies to cover the cost of AB 838 implementation. In the event that substandard housing or lead hazard violations are found, the City is able to recoup costs from the property owner. Staff is currently researching this issue further and will most likely include a line item in the Master Fee Schedule to allow for the City to recoup costs. When a complaint is lodged and no violations are found, the City is responsible for covering the cost of the process, which would come from the General Fund.

Consultant work on building permit plan reviews is covered by application fees the City collects so no impact to the General Fund is anticipated with this activity.

RECOMMENDATION
Staff recommends that the City Counciladopt the attached Resolution authorizing the City Manager to execute the Seventh Amendment to the Agreement (C5255) with 4Leaf, Inc., in a form approved by the City Attorney, to increase the agreement amount by $600,000, for a total not to exceed amount of $2,500,000, for Building Division support.

Prepared by:

City Council/RSA Agenda 33 Tuesday, December 12, 2023
Carmela Campbell, Economic and Community Development Director Submitted by:

Carmela Campbell, Economic and Community Development Director ATTACHMENTS:

Description Type
Attachment 1 - CCResolution Approving 4Leaf 7th Amendment Resolution City Council/RSA Agenda 34 Tuesday, December 12, 2023
RESOLUTION NO. XXXX-23

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

AUTHORIZING THE CITY MANAGER TO EXECUTE THE SEVENTH
AMENDMENT TO THE CONSULTING SERVICES AGREEMENT WITH 4LEAF, INC., IN A FORM APPROVED BY THE CITY ATTORNEY, TO INCREASE THE AGREEMENT AMOUNT BY $600,000, FOR A TOTAL NOT TO EXCEED AMOUNT OF $2,500,000, FOR BUILDING DIVISION SUPPORT
WHEREAS, 4Leaf, Inc. (“Consultant”) has been providing support to the Building Division since 2018 (Consulting Services Agreement No. C5255); and WHEREAS, the Consulting Services Agreement (“Agreement”) has been modified six (6) times over the last five years and currently expires on June 30, 2026; and WHEREAS, historically, the Consultant provided staff augmentation to support inspection and plan checking services, due to vacancies in the Building Division; and WHEREAS, during the Agreement term, it is anticipated that the Consultant will continue to provide staff support to the Building Division on an as-needed basis. In addition, it is anticipated that the Consultant will assist on reviews of building permit plans for future highdensity, multi-family housing due to the complexity of those projects. The Consultant will also be providing support related to AB 838 implementation; and WHEREAS, staff recommends that the City Council authorize the City Manager to execute the Seventh Amendment to the Agreement with the Consultant to increase the Agreement amount by $600,000, for a total not to exceed amount of $2,500,000.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Union City hereby authorizes the City Manager to execute the Seventh Amendment to the Consulting Services Agreement (C5255) with 4Leaf, Inc., in a form approved by the City Attorney, to increase the Agreement by $600,000, for a total not to exceed amount of $2,500,000, for Building Division support.

City Council/RSA Agenda 35 Tuesday, December 12, 2023
Resolution No. XXXX-23

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 12th day of December 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
___________________________

CAROL DUTRA-VERNACI
Mayor
ATTESTED: APPROVED AS TO FORM:
_________________________ ___________________________
JENNIFER PHAN KRISTOPHER J. KOKOTAYLO
Acting City Clerk City Attorney
City Council/RSA Agenda 36 Tuesday, December 12, 2023
Agenda Item
DATE: 12/12/2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: JASON CASTLEBERRY, HUMAN RESOURCES DIRECTOR
SUBJECT: ADOPT A RESOLUTION APPROVING AN AMENDMENT TO UPDATE

THE CLASS SPECIFICATION FOR THE CLASSIFICATION OF

RECREATION SUPERVISOR
Staff recommends that the City Council adopt a resolution to approve an update to the class specification of Recreation Supervisor.

STRATEGIC PLAN ALIGNMENT
This program supports Goal B. Governance and Organization Effectiveness of the strategic plan in aligning criticalcity services with current staffing levels.

BACKGROUND
As part of a review of the Recreation Supervisor job duties and the needs of the City's Community and Recreation Services Department relative to align position functions with appropriate qualifications and experience expectations, staff recommends minor modifications to the classification specification/job description.

DISCUSSION
The proposed classification specification includes slight modifications to align functions, qualifications, experience and skills expected for the role. The goal is to provide clarity on essential functions, qualifications, and certifications during the next recruitment. The City has met and conferred with the Professonal Employee Group (PEG) regarding the proposed revisions to the class specification. No change to the current salary range is recommended at this time. The Community and Recreation Services Department worked with the Human Resources Department to ensure the class specification is updated prior to future recruitments.

City Council/RSA Agenda 37 Tuesday, December 12, 2023

FISCAL IMPACT
There is no fiscal impact for the position specification changes being proposed.

RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution to approve an amendment to the City’s Classification and Compensation Plan to update the class specification/job description of Recreation Supervisor.

Prepared by:

Jason Castleberry, Human Resources Director
Submitted by:

Jason Castleberry, Human Resources Director
ATTACHMENTS:

Description Type
Resolution - Recreation Supervisor Resolution
Class Specification (Redlined) Resolution
Class Specification (Clean) Resolution
City Council/RSA Agenda 38 Tuesday, December 12, 2023
RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

UNION CITY AMENDING THE CLASSIFICATION AND

COMPENSATION PLAN TO UPDATE THE CLASS

SPECIFICATION FOR THE CLASSIFICATION OF

RECREATION SUPERVISOR
WHEREAS, the City has undertaken an inquiry and recommends that the City Council update the class specification for the position of Recreation Supervisor; and WHEREAS, City staff have undertaken an analysis of necessary updates to the classification and compensation plan to update the class specification for the classification of Recreation Supervisor; and
WHEREAS, the City Council has identified in the Strategic Plan Goal B, Governance and Organization Effectiveness to align critical city services with current staffing levels by ensuring the accuracy and clarity for the Recreation Supervisor class specifications; and
WHEREAS, the City Manager or her designee has met and conferred in good faith with the representatives of all bargaining units related to the above matters.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Union City hereby approves the updated Recreation Supervisor class specification, attached hereto and incorporated herein by reference, effective December 12, 2023.

BE IT FURTHER RESOLVED that the City Council hereby authorizes the City Manager to take such further actions as may be necessary to implement the proposed revisions to the class specification for the classification of Recreation Supervisor.

City Council/RSA Agenda 39 Tuesday, December 12, 2023
PASSED, APPROVED AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 12th of December 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:

CAROL DUTRA-VERNACI
Mayor
ATTESTED: APPROVED AS TO FORM:
_________________________ ___________________________
JENNIFER PHAN KRISTOPHER J. KOKOTAYLO
Deputy City Clerk City Attorney
City Council/RSA Agenda 40 Tuesday, December 12, 2023
1 RECREATION SUPERVISOR
Bargaining Unit: Professional Employee’s Group
Class Code: 30100
Created/Updated:
3/1/198610/24/2023
DEFINITION:

Under general supervision of the Community and Recreation Services (CRS) Manager or Senior Recreation Supervisor department head, incumbents in this classification participates in the evaluation, development, and administration of recreation programs including parks and centers, social and cultural, and sports and physical fitness activities; plans, implements, supervises and conducts classes and activities; supervises the operation of a multi-purpose recreation facility; trains and supervises part-time, full time, and volunteer workers; performs related work as assigned.plan, develop, administer, and evaluate major leisure services and community recreation programs; supervise the operation of a multi-purpose recreation facility; provide direction to numerous part-time program staff and contract employees; perform related work as required.

OR
CLASS CHARACTERISITICS:

N/A This is a journey level classification in the Community and Recreation Services Departmentreporting to the CRS Manager or Senior Recreation Supervisor. Incumbents exercise considerable judgment in day-to-day decision making which affects the scheduling and operations of recreation activities or community centers; has responsibility for overall programs, and provides full supervision over regular, seasonal and temporary employees and volunteers.

EXAMPLES OF DUTIES (illustrative only):
• Providee leadership and daily supervision to program and clerical staff. • Recruit, screen and select full-time and part-time program and facility staff, and contract employees; assign, supervise and evaluate staff; maintain records of work performed and authorize payment for services.
• Plan, develop, organize, administer and evaluate major recreation and community leisure program areas such as teen and youth fee activities, arts, enrichment classes, sports, rentals, seniors, aquatics, therapeutic recreation, and playgrounds, adult sports, teen activities and special eventsfestivals. • Prepare publicity and informational materials and arrange for the production and distribution of such publicity.
• Meet with community representatives and others to determine the need for and availability of desired programs and services; recommend possible expanded activities complete with cost figures and service estimations. • Manage assigned community center, arranging for staff coverage and notifying appropriate staff when maintenance or repair is required.

City Council/RSA Agenda 41 Tuesday, December 12, 2023
2 • Assist in preparing materials for the department budget; estimate costs and revenue; prepare lists of required supplies and equipment for purchase. • Coordinate activities with and confer with other City staff, school and community representatives, and groups concerned with recreation and community leisure services.
• Maintain records, prepare reports of activities and correspondence as required. • Maintain and encourage observance of required safety precautions during recreation activities and center operations;
• Assigned as a liaison to a City Commission or Committee, or to a community partner or outside agency.

QUALIFICATIONS:

EDUCATION AND EXPERIENCE:

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

Bachelor degree Completion of four years of college with major work in recreation or a closely related field and two years of responsible experience in the recreation or leisure services field. Three (3) years of full-time (or part-time equivalent), progressively responsible experience in coordinating a variety of recreation, social and cultural programs and supervision of staff.

LICENSE AND CERTIFICATIONS:

Possession of a valid California Driver’s License with a satisfactory driving record.

KNOWLEDGE AND ABILITIES:

Knowledge Of:
• Principles and techniques of planning, developing and administering broad-based recreational, cultural and social and leisure services activities; community organizations and resources; basic budgetary and organizational principles; and analytical principles and recordkeeping practices.

Principles and philosophies of general human behavior.
• Programs and services related to the designated target population, which may include youth and teens, at risk youth, families, and senior citizens.

Ability To:
• Develop, administer, and coordinate and evaluate varied recreational activities; manage the operations of a community center; analyze problems, evaluate alternatives and make sound recommendations; prioritize work, develop work City Council/RSA Agenda 42 Tuesday, December 12, 2023
3 plans, and complete assignments accurately and on time; communicate effectively, orally and in writing; develop and maintain effective working relationships with those contacted in the course of the work; interpret rules, regulations, policies and procedures; maintain accurate records; prepare effective promotional materials; and work independently and coordinate numerous projects concurrently. Supervise, train and motivate permanent and seasonal staff and volunteers of all ages and cultures. Represent the City effectively in meetings with staff, community and sports groups, organizations, and other government agencies.

LICENSE AND CERTIFICATIONS:

Possession of a valid California Driver’s License with a satisfactory driving record.

WORKING CONDITIONS, ADA AND OTHER REQUIREMENTS:

The City of Union City is an equal opportunity employer. The City of Union City will comply with its obligations under the law to provide equal employment opportunities to qualified individuals with disabilities.

Positions in this class typically require: sitting, stooping, kneeling, crouching, reaching, standing, walking, pushing, pulling, lifting, fingering, grasping, talking, hearing, seeing, and repetitive motions.

Moderate Sedentary Work: Exerting up to 310 pounds of force occasionally and/or a negligible amount of force frequently or constantly to lift, carry, push, pull or otherwise move objects. Sedentary work involves sitting in an office environment most 50% of the time with adequate light and temperature. The other 50% may require walking and working outside in the elements. Jobs are sedentary if walking and standing are required only occasionally and all other sedentary criteria are met.

Incumbents generally work in a typical office environment with adequate light and temperature.

Travel: Positions in this class may require local and statewide travel as necessary.

City Council/RSA Agenda 43 Tuesday, December 12, 2023
1 RECREATION SUPERVISOR
Bargaining Unit: Professional Employee’s Group
Class Code: 30100
Created/Updated:
10/24/2023
DEFINITION:

Under general supervision of the Community and Recreation Services (CRS) Manager or Senior Recreation Supervisor, incumbents in this classification participates in the evaluation, development, and administration of recreation programs including parks and centers, social and cultural, and sports and physical fitness activities; plans, implements, supervises and conducts classes and activities; supervises the operation of a multi-purpose recreation facility; trains and supervises part-time, full time, and volunteer workers; performs related work as assigned.

OR
CLASS CHARACTERISITICS:

This is a journey level classification in the Community and Recreation ServicesDepartment. Incumbents exercise considerable judgment in day-to-day decision making which affects the scheduling and operations of recreation activities or community centers; has responsibility for overall programs, and provides full supervision over regular, seasonal and temporary employees and volunteers.

EXAMPLES OF DUTIES (illustrative only):
• Providee leadership and daily supervision to program and clerical staff. • Recruit, screen and select full-time and part-time program and facility staff, and contract employees; assign, supervise and evaluate staff; maintain records of work performed and authorize payment for services.
• Plan, develop, organize, administer and evaluate major recreation and community program areas such as teen and youth activities, arts, enrichment classes, sports, rentals, seniors, aquatics, therapeutic recreation, and special events.
• Prepare publicity and informational materials and arrange for the production and distribution of such publicity.
• Meet with community representatives and others to determine the need for and availability of desired programs and services; recommend possible expanded activities complete with cost figures and service estimations. • Manage assigned community center, arranging for staff coverage and notifying appropriate staff when maintenance or repair is required. • Assist in preparing materials for the department budget; estimate costs and revenue; prepare lists of required supplies and equipment for purchase. • Coordinate activities with and confer with other City staff, school and community representatives, and groups concerned with recreation and community services. • Maintain records, prepare reports of activities and correspondence as required.

City Council/RSA Agenda 44 Tuesday, December 12, 2023
2 • Maintain and encourage observance of required safety precautions during recreation activities and center operations;
• Assigned as a liaison to a City Commission or Committee, or to a community partner or outside agency.

QUALIFICATIONS:

EDUCATION AND EXPERIENCE:

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

Bachelor degree with major work in recreation or a closely related field and Three (3) years of full-time (or part-time equivalent), progressively responsible experience in coordinating a variety of recreation, social and cultural programs and supervision of staff.

LICENSE AND CERTIFICATIONS:

Possession of a valid California Driver’s License with a satisfactory driving record.

KNOWLEDGE AND ABILITIES:

Knowledge Of:
• Principles and techniques of planning, developing and administering broad-based recreational, cultural and social services; community organizations and resources; basic budgetary and organizational principles; and analytical principles and recordkeeping practices.

Principles and philosophies of general human behavior. Programs and services related to the designated target population, which may include youth and teens, at risk youth, families, and senior citizens.

Ability To:
• Develop, administer, coordinate and evaluate varied recreational activities; manage the operations of a community center; analyze problems, evaluate alternatives and make sound recommendations; prioritize work, develop work plans, and complete assignments accurately and on time; communicate effectively, orally and in writing; develop and maintain effective working relationships with those contacted in the course of the work; interpret rules, regulations, policies and procedures; maintain accurate records; prepare effective promotional materials; and work independently and coordinate numerous projects concurrently. Supervise, train and motivate permanent and seasonal staff and volunteers of all ages and cultures. Represent the City City Council/RSA Agenda 45 Tuesday, December 12, 2023
3 effectively in meetings with staff, community and sports groups, organizations, and other government agencies.

WORKING CONDITIONS, ADA AND OTHER REQUIREMENTS:

The City of Union City is an equal opportunity employer. The City of Union City will comply with its obligations under the law to provide equal employment opportunities to qualified individuals with disabilities.

Positions in this class typically require: sitting, stooping, kneeling, crouching, reaching, standing, walking, pushing, pulling, lifting, fingering, grasping, talking, hearing, seeing, and repetitive motions.

Moderate Sedentary Work: Exerting up to 30 pounds of force occasionally and/or a negligible amount of force frequently or constantly to lift, carry, push, pull or otherwise move objects. Sedentary work involves sitting in an office environment 50% of the time with adequate light and temperature. The other 50% may require walking and working outside in the elements.

Travel: Positions in this class may require local and statewide travel as necessary.

City Council/RSA Agenda 46 Tuesday, December 12, 2023
Agenda Item
DATE: 12/12/2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: JACKIE ACOSTA, FINANCE DIRECTOR
SUBJECT: ADOPT A RESOLUTION RECEIVING AND ACCEPTING THE AUDITED

FINANCIAL STATEMENTS OF THE MEASURE B FUND, THE MEASURE

BB FUND, THE MEASURE F FUND, AND THE TDA FUND FOR THE
FISCALYEAR ENDED JUNE 30, 2022
Staff recommends that the City Council adopt a resolution receiving and accepting the audited financial statements of the Measure B Fund, the Measure BB Fund, the Measure F Fund, and the TDA Fund for the fiscal year ended June 30, 2022.

STRATEGIC PLAN ALIGNMENT
The agenda item does not have alignment with the Strategic Plan.

BACKGROUND
The City is required to have an annual independent audit of the financial activity of the City and issue audited financial statements known as the Annual Comprehensive Financial Report (ACFR). Additionally, the Alameda County Transportation Commission (ACTC) requires the City to issue separate audited financial statements on the use of Measure B, Measure BB and Measure F funds received from ACTC and the State Controller’s Office (SCO) and the Metropolitan Transportation Commission (MTC) require the City to issue a separate audited financial statement on the use of Transportation Development Act (TDA) funds. Staff and the City’s independent certified public accountants, Badawi & Associates, are still working on the completion of the ACFR, but have completed the separate audited financial statements of the Measure B, the Measure BB, the Measure F and the TDA Funds.

DISCUSSION
City Council/RSA Agenda 47 Tuesday, December 12, 2023
Since the cyberattack in September 2019, the City has been behind in closing its books and issuing its Annual Comprehensive Financial Reports (ACFR). Staff and the auditors are in the process of completing the ACFR for the fiscal year ended June 30, 2022, but have already completed the separate audited financial statements of the Measure B, the Measure BB, the Measure F and the TDA Funds, attached to the resolution as Exhibits A, B, C and D, respectively. The separate audited financial statements of the Measure B Fund (one-half-cent transportation sales tax approved in 1986 and renewed in 2000), the Measure BB Fund (one-half-cent transportation sales tax approved in November 2014), and the Measure F Fund ($10 per year vehicle registration fee (VRF) approved in November 2010) are ready to be submitted to the ACTC. The ACTC requires these separate audited financial statements to confirm that the City is using Measure B, Measure BB and Measure F funding appropriately and to allow for the City’s continued receipt of these critical funds.

The separate audited financial statement of the TDA Fund (the Transportation Development Act of 1971) is ready to be submitted to the SCO and the MTC. The SCO and the MTC require this separate audited financial statement to ensure program compliance.

FISCAL IMPACT
There is no fiscal impact as a result of receiving and accepting these reports.

RECOMMENDATION
Staff recommends that the City Council adopt a resolution receiving and accepting the audited financial statements of the Measure B Fund, the Measure BB Fund, the Measure F Fund, and the TDA Fund for the fiscal year ended June 30, 2022.

Prepared by:

Jackie Acosta, Finance Director
Submitted by:

Jackie Acosta, Finance Director
ATTACHMENTS:

Description Type
Resolution Receiving and Accepting the Certain Audited Financial Statements for the Fiscal Year Ended June 30, 2022
Resolution
City Council/RSA Agenda 48 Tuesday, December 12, 2023
RESOLUTION NO. _____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

RECEIVING AND ACCEPTING THE AUDITED FINANCIAL STATEMENTS OF

THE MEASURE B FUND, THE MEASURE BB FUND, THE MEASURE F FUND, AND THE TDA FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2022
WHEREAS, the City is required to have an annual independent audit of the financial activity of the City and issue audited financial statements known as the Annual Comprehensive Financial Report (ACFR); and
WHEREAS, the Alameda County Transportation Commission (ACTC) requires the City to issue separate audited financial statements on the use of Measure B, Measure BB and Measure F funds received from ACTC and the State Controller’s Office (SCO) and the Metropolitan Transportation Commission (MTC) require the City to issue a separate audited financial statement on the use of Transportation Development Act (TDA) funds; and WHEREAS, staff and the City's independent certified public accountants, Badawi & Associates, are still working on the completion of the ACFR, but have completed the separate audited financial statements of the Measure B, the Measure BB, the Measure F and the TDA Funds; and
WHEREAS, the separate audited financial statements of the Measure B Fund (one-halfcent transportation sales tax approved in 1986 and renewed in 2000), the Measure BB Fund (onehalf-cent transportation sales tax approved in November 2014), and the Measure F Fund ($10 per year vehicle registration fee (VRF) approved in November 2010) are ready to be submitted to the ACTC; and
WHEREAS, the ACTC requires these separate audited financial statements to confirm that the City is using Measure B, Measure BB and Measure F funding appropriately and to allow for the City's continued receipt of these critical funds; and WHEREAS, the separate audited financial statement of the TDA Fund (the Transportation Development Act of 1971) is ready to be submitted to the SCO and the MTC; and WHEREAS, the SCO and the MTC require this separate audited financial statement to ensure program compliance; and
WHEREAS, the aforementioned separate audited financial statements have been reviewed and considered by the City Council of the City of Union City, and are attached hereto as Exhibits A, B, C and D, respectively.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Union City hereby receives and accepts the audited financial statement of the Measure B Fund, the Measure BB Fund, the Measure F Fund, and the TDA Fund for the fiscal year ended June 30, 2022.

City Council/RSA Agenda 49 Tuesday, December 12, 2023
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on December 12, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

APPROVED:
______________________________

CAROL DUTRA-VERNACI
Mayor
ATTESTED: APPROVED AS TO FORM:
________________________________ ______________________________ JENNIFER PHAN KRISTOPHER J. KOKOTAYLO
Acting City Clerk City Attorney
City Council/RSA Agenda 50 Tuesday, December 12, 2023
City of Union City
Measure B Funds
Union City, California
Financial Statements and
Independent Auditor’s Reports
For the year ended June 30, 2022
Exhibit A
City Council/RSA Agenda 51 Tuesday, December 12, 2023
City of Union City
Alameda County Transportation Commission – Measure B Funds For the year ended June 30, 2022
Table of Contents
Page
Independent Auditor’s Report .................................................................................................................................1 Financial Statements:

Balance Sheets and Statements of Net Position.................................................................................................4 Statement of Revenues, Expenditures and
Changes in Fund Balances .............................................................................................................................6 Statement of Revenues, Expenses and Changes in Net Position....................................................................7 Statement of Cash Flows ......................................................................................................................................8 Notes to Financial Statements..............................................................................................................................10 Supplementary Information:

Budgetary Basis of Accounting:

Budgetary Control and Budgetary Accounting............................................................................................18 Budgetary Comparison Schedule, ACTC Streets & Roads Special Revenue Fund.................................19 Budgetary Comparison Schedule, ACTC Bike & Pedestrian Special Revenue Fund.............................20 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.................................................................21 Report on Measure B Compliance............................................................................................................................23 City Council/RSA Agenda 52 Tuesday, December 12, 2023
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Union City
Union City, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the Measure B Funds (Measure B Funds) of the City of Union City, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the Measure B Funds of the City, as of June 30, 2022, and the respective changes in financial position, and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Measure B Funds of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.

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

Emphasis of Matter
As discussed in Note 1, the financial statements present only the Measure B Funds and do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2022, or the changes in financial position or cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. 1 City Council/RSA Agenda 53 Tuesday, December 12, 2023 To the Honorable Mayor and Members of the City Council
of the City of Union City
Union City, California

Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Measure B Funds’ ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Measure B Funds’ internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Measure B Funds’ ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
2 City Council/RSA Agenda 54 Tuesday, December 12, 2023 To the Honorable Mayor and Members of the City Council
of the City of Union City
Union City, California

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Measure B Funds’ financial statements. The budgetary comparison information is presented for purposes of additional analysis and is not a required part of the financial statements.

The budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements.

Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, budgetary information is fairly stated, in all material respects, in relation to the financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 6, 2023 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Badawi and Associates
Berkeley, California
December 6, 2023
3 City Council/RSA Agenda 55 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission - Measure B Funds Balance Sheets and Statements of Net Position
June 30, 2022
Streets & Bike &
Roads Pedestrian Paths
ASSETS
Cash and investments $ 2,076,776 $ 945,332
Receivables:

Intergovernmental 10,125 3,152
Total assets 2,086,901 948,484

LIABILITIES AND NET POSITION/FUND BALANCE
Liabilities
Accounts payable 324,073 7,326
Other accrued liabilities 10,443 -
Due to other funds - -
Total liabilities 334,516 7,326
Net position/fund balance
Fund balance:

Restricted for street maintenance & improvements 1,752,385 941,158 Total restricted 1,752,385 941,158
Total net position/fund balance 1,752,385 941,158
Total liabilities and net position/fund balance $ 2,086,901 $ 948,484 See accompanying notes to the financial statements
Special Revenue Funds
4 City Council/RSA Agenda 56 Tuesday, December 12, 2023 Mass Transit Paratransit Total
$ - $ - $ 3,022,108
6,504 4,739 24,520
6,504 4,739 3,046,628
- - 331,399
- - 10,443
6,504 4,739 11,243
6,504 4,739 353,085
- - 2,693,543
- - 2,693,543
- - 2,693,543
$ 6,504 $ 4,739 $ 3,046,628
Enterprise Funds
5 City Council/RSA Agenda 57 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission - Measure B Funds Statement of Revenues, Expenditures and Changes in Fund Balances For the year ended June 30, 2022
Bike &
Streets & Pedestrian
Roads Paths Total
REVENUES:

Direct Local Program Distribution Allocation $ 710,145 $ 221,060 $ 931,205 Investment income 16,448 7,912 24,360
Total revenues 726,593 228,972 955,565
EXPENDITURES:

Public works 1,307,439 339,361 1,646,800
Total expenditures 1,307,439 339,361 1,646,800
REVENUES OVER (UNDER) EXPENDITURES (580,846) (110,389) (691,235) FUND BALANCES:

Beginning of year 2,333,231 1,051,547 3,384,778
End of year $ 1,752,385 $ 941,158 $ 2,693,543
See accompanying notes to the financial statements
Special Revenue Funds
6 City Council/RSA Agenda 58 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission - Measure B Funds Statement of Revenues, Expenses and Changes in Net Position For the year ended June 30, 2022
Mass Transit Paratransit Total
OPERATING EXPENSES:

Purchased transportation $ 456,213 $ 332,303 $ 788,516
Total operating expenses 456,213 332,303 788,516
OPERATING LOSS (456,213) (332,303) (788,516)
NONOPERATING REVENUES:

Direct Local Program Distribution Allocation 456,213 332,303 788,516 Total nonoperating revenues 456,213 332,303 788,516
Change in net position - - -
NET POSITION:

Beginning of year - - -
End of year $ - $ - $ -
See accompanying notes to the financial statements
Enterprise Funds
7 City Council/RSA Agenda 59 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission - Measure B Funds Statement of Cash Flows
For the year ended June 30, 2022
Mass Transit Paratransit Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash payment to vendors for services $ (456,213) $ (332,303) $ (788,516) Net cash provided (used) by operating activities (456,213) (332,303) (788,516)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Direct Local Program Distribution Allocation 456,213 332,303 788,516 Net cash provided (used) by noncapital
financing activities 456,213 332,303 788,516
Net increase (decrease) in cash
and cash equivalents - - -
CASH AND CASH EQUIVALENTS:

Beginning of year - - -
End of year $ - $ - $ -
CASH FLOWS FROM OPERATING ACTIVITIES:

Operating loss $ (456,213) $ (332,303) $ (788,516)
See accompanying notes to the financial statements
Enterprise Funds
8 City Council/RSA Agenda 60 Tuesday, December 12, 2023 This page intentionally left blank
9 City Council/RSA Agenda 61 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission – Measure B Funds Notes to Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
All transactions of the Alameda County Transportation Commission Measure B Funds (Measure B Funds) of the City of Union City, California (City), are included as separate special revenue and enterprise funds in the basic financial statements of the City. Measure B Funds are used to account for the City’s share of revenues earned and expenditures incurred under the City’s streets and roads, bike and pedestrian, transit, and paratransit programs. The accompanying financial statements are for Measure B Funds only and are not intended to fairly present the financial position or results of operations of the City.

B. Basis of Accounting
Governmental Fund Financial Statements
The accompanying financial statements of the special revenue funds are prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred.

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

Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance.

Proprietary Fund Financial Statements
The financial statements of the enterprise funds are prepared on the accrual basis of accounting.

Revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the related liability is incurred.

All proprietary funds are accounted for using the “economic resources” measurement focus. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position.

The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in net position. Operating revenues in a proprietary fund are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. 10 City Council/RSA Agenda 62 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission – Measure B Funds Notes to Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED C. Fund Accounting
The accounts are maintained on the basis of fund accounting. A fund is a separate accounting entity with a self-balancing set of accounts.

The following funds are used:

Special Revenue Fund – To account for the proceeds of specific revenues (other than for capital projects) that are legally restricted to be expended for specified purposes.

Enterprise Fund – To account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the costs of providing goods and services to the general public on a continuing basis be recovered through user charges.

D. Fund Balance/Net Position
Fund balances of governmental funds are classified in one of five categories:

Nonspendable Fund Balance – Represents that portion of fund balance that includes amounts that are either 1) not in a spendable form; or 2) legally or contractually required to be maintained intact.

Amounts considered “not in a spendable form” include items that are not expected to be converted to cash, such as prepaid items and long-term notes receivable.

Restricted Fund Balance – Represents that portion of fund balance that reflects constraints placed on the use of resources (other than nonspendable items) that are either 1) externally imposed by creditors, such as through debt covenants, grantors, contributors, or the laws and regulations of other governments; or 2) imposed by law through constitutional provisions or enabling legislation.

These restrictions may be effectively changed only with the consent of the resource provider.

Committed Fund Balance – Represents that portion of fund balance that includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council, the City government’s highest-level decision-making authority. In order for funds to be considered committed, an ordinance must be introduced at a City Council meeting describing the proposed action. The ordinance must be published in the City’s official newspaper of publication within 15 days of adoption. Ordinances are then codified in the City’s municipal code. Those funds collected and expended for specific purposes defined in the City’s municipal code are reported as committed fund balances. The established constraints remain binding until the City Council takes action to amend the applicable section of the municipal code.

Assigned Fund Balance – Represents that portion of fund balance that includes amounts that are constrained by the City’s intended use of the resources but are neither restricted nor committed.

Such intent needs to be established at the highest level of decision making or by an official designated for that purpose. The City Council has given the City Manager the authority to assign amounts to be used for specific purposes.
11 City Council/RSA Agenda 63 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission – Measure B Funds Notes to Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED D. Fund Balance /Net Position, Continued
Unassigned Fund Balance – Represents that portion of fund balance that includes amounts that are not contained in any of the other fund balance categories. The General Fund is the only governmental fund that may report a positive amount as unassigned fund balance. For all other governmental funds, only negative balances may be reported as unassigned fund balance.

Net position is classified in the following categories:

Net Investment in Capital Assets – Consists of capital assets net of accumulated depreciation reduced by outstanding debt attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position – Consists of funds restricted by external creditors, grantors, contributors, or laws or regulations of other governmental entities.

Unrestricted Net Position – Consists of any amounts that do not meet the definition of net investment in capital assets or restricted net position.

In circumstances when an expenditure is made for a purpose for which amounts are available in multiple fund balance classifications, fund balance is generally depleted in the order of restricted, committed, assigned, and then unassigned.

In circumstances when an expense is made for a purpose for which amounts are available in multiple net position classifications, net position is generally depleted in the order of restricted and then unrestricted.

The City’s enterprise funds, Paratransit and Mass Transit, report zero amounts in their net position. The Measure B funds supplement passenger fares and operating grant revenues. All Measure B funds revenues are expended in the fiscal year they are allocated.

E. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. 12 City Council/RSA Agenda 64 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission – Measure B Funds Notes to Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED F. Statement of Cash Flows
For purposes of the statement of cash flows, cash equivalents are defined as investments with original maturities of 90 days or less, which are readily convertible to known amounts of cash. The City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled cash and investments (consisting of cash with fiscal agents and restricted cash and investments held by fiscal agents) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above.

2. MEASURE B FUNDS
Under Measure B, approved by the voters of Alameda County in 1986 (ACTA “Old” Measure B) and in 2000 (ACTIA Measure B), the City receives a portion of the proceeds of an additional one-half cent sales tax to be used for transportation-related purposes. This Measure was adopted with the intent that the funds generated by the additional sales tax will not fund expenditures previously paid for by property taxes but rather would be used for additional projects and programs.

Major projects funded by Measure B were as follows:

Streets and Roads Program – To provide funding for citywide overlay and slurry seal projects, paving maintenance, and installation of new traffic signals.

Bike and Pedestrian Program – To help fund construction of new sidewalks, citywide trail system rehabilitation, and intersection improvements.

Paratransit Program – To help fund Americans with Disabilities Act (ADA) mandated service; to help fund the Union City “Paratransit Plus” program, which offers an expanded service area, group trips for seniors and the disabled, and urgent medical trips; and to help fund extended weekday service hours. Measure B funds are considered spent in the year the funds are earned.

Mass Transit Program – To help fund the operations of the City’s own bus system, Union City Transit. This system operates daily (except for holidays) and provides local transit service to major destinations within the City. Union City Transit makes connections with other transit systems including BART, AC Transit, and the Dumbarton Express. Measure B funds are considered spent in the year the funds are earned.
13 City Council/RSA Agenda 65 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission – Measure B Funds Notes to Financial Statements, Continued
For the year ended June 30, 2022

3. CASH AND INVESTMENTS
Measure B Funds are to be pooled with the City’s cash and investments in order to generate optimum investment income.

The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from date of acquisition. Cash and cash equivalents are combined with investments and displayed as cash and investments.

Investment income is allocated quarterly to funds based on their proportionate share of average quarterly cash balances.

Amounts reported as unrealized gain/(loss) in market value of investments are made in accordance with Governmental Accounting Standards Board (GASB) Statement No. 31, which states all investment income, including changes in the fair value of investments, should be recognized as revenue in the operating statement.

Measure B Funds had the following cash and investments at June 30, 2022:

Cash and investments $3,022,108
14 City Council/RSA Agenda 66 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission – Measure B Funds Notes to Financial Statements, Continued
For the year ended June 30, 2022

3. CASH AND INVESTMENTS, CONTINUED
A. Investments
Under the provisions of the City’s investment policy, and in accordance with California Government Code, the following investments are authorized:

Minimum Maximum
Maximum Credit Percentage of
Authorized Investment Type Maturity Quality Portfolio
U.S. Agency and U.S. Government 5 years N/A No limit
State of California Obligations 5 years N/A No limit
CA Local Agency Obligations 5 years N/A No limit
Prefunded Municipal Obligations N/A AAA No limit
Banker Acceptances 365 days AAA No limit
Commercial Paper 270 days AAAm No limit
Negotiable Certificates of Deposit 365 days AAA No limit Repurchase Agreements 1 year AAA No limit
Money Market Mutual Funds N/A AAAm No limit
Collateralized Bank Deposits 5 years None No limit
Mortgage Pass-through Securities 5 years AA 20%
Time Deposits 365 days AAA No limit
Guaranteed Investment Contracts N/A AA No limit
California Local Agency Investment Fund N/A N/A No limit In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, investments were stated at fair value using the aggregate method in all funds and component units. The City’s investments are carried at fair market value as required by generally accepted accounting principles. The City accounts for all changes in fair value that occurred during the year and these changes are reflected in the fund balance or net position for the fiscal year.

These investment value changes are unrealized since the City’s policy is to buy and hold investments until maturity dates.

B. Risk Disclosures
Interest Risk – Interest risk is the fluctuation in the fair value of investments due to changes in interest rates. The City’s exposure to losses caused by rising interest rates is minimized by limiting the average maturity of the City’s investments to not exceed five years.

Credit Risk – Credit risk is the risk of loss of value of a security or investment due to downgrade of its rating due to a change in the ability of the issuer to fulfill its debt obligations. With the exception of U.S. Treasury securities and authorized pools, no more than 50% of the City’s total investment portfolio will be invested in a single security type or with a single financial institution to reduce the City’s exposure to credit risks.
15 City Council/RSA Agenda 67 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission – Measure B Funds Notes to Financial Statements, Continued
For the year ended June 30, 2022

3. CASH AND INVESTMENTS, CONTINUED
Custodial Credit Risk – The custodial credit risk for investments is the risk that in the event of the failure of a counterparty, the investor will not be able to recover the value of its investments or collateral securities that are in possession of an outside party. None of the City’s investments were subject to custodial credit risk.

C. Local Agency Investment Fund
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The balance is available for withdrawal on demand. The City’s investments with LAIF at June 30, 2022, include a portion of the pool funds invested in structured notes and asset-backed securities. These investments include the following:

Structured Notes - Debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities – Securities, the bulk of which are mortgage-backed securities, that entitle their purchasers to receive a share of the cash flows from a pool of assets, such as principal and interest repayments from a pool of mortgages (e.g., collateralized mortgage obligations) or credit card receivables.

As of June 30, 2022, the City invested in LAIF, which had invested 1.88% of the pool investments in structured notes and asset-backed securities compared to 2.31% in the previous year. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The fair value of LAIF was calculated by applying a factor of 0.98712 to the total investments held by LAIF.

4. INTERGOVERNMENTAL RECEIVABLES
Intergovernmental receivables represent the Measure B sales tax revenues for the fiscal year received from the Alameda County Transportation Commission after June 30, 2022.

5. COMMITMENTS AND CONTINGENCIES
The City participates in several grant programs. These programs are subject to further examination by the grantors and the amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial. 16 City Council/RSA Agenda 68 Tuesday, December 12, 2023

SUPPLEMENTARY INFORMATION
17 City Council/RSA Agenda 69 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission – Measure B Funds Supplementary Information
For the year ended June 30, 2022

1. BUDGETARY BASIS OF ACCOUNTING
A. Budgetary Control and Budgetary Accounting
The City Council adopts a two-year operating budget for the General Fund, Special Revenue funds, and Debt Service funds, with each year of the budget document independent of the other. The operating budget is effective July 1 and lapses the following June 30. Budgets are adopted on a basis consistent with generally accepted accounting principles. The budget is controlled at the department level in the General Fund and at the fund level for all other funds. The City’s five-year capital improvement plan serves as the basis for the capital project budgets. Appropriations for Capital Project funds are approved at the same time operating budgets are adopted. These appropriations are made in the fiscal year the capital project is scheduled to commence and are effective for the life of the project.

Amendments to capital budgets may be approved by Council at any time during the project’s life. As a result, budget-to-actual schedules are not presented.

The City Council may amend the budget by resolution during the fiscal year. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions which alter the total appropriations of any fund must be approved by the City Council.

Transfers between funds must be approved by the City Council. There were certain amendments made to the budget during the year for changes in employee compensation plans and to address variances between the original budget and actual activities. These adjustments are reflected in the final budget information presented in the comparison schedules.

Under encumbrance accounting, purchase orders, contracts, and other commitments for the expenditures of monies are recorded in order to reserve that portion of the applicable appropriation.

Encumbrance accounting is employed as an extension of the formal budgetary process. Encumbrances outstanding at year-end are carried forward to the following fiscal year and are re-appropriated by City Council resolution.
18 City Council/RSA Agenda 70 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission - Measure B Funds Supplementary Information, Continued
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ACTC Streets & Roads Special Revenue Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Direct Local Program Distribution Allocation $ 590,200 $ 590,200 $ 710,145 $ 119,945 Investment income 20,000 20,000 16,448 (3,552)
Total revenues 610,200 610,200 726,593 116,393
EXPENDITURES:

Current:

Public works 2,776,956 2,776,956 1,307,439 1,469,517
Capital outlay 4,625 4,625 - 4,625
Total expenditures 2,781,581 2,781,581 1,307,439 1,474,142 REVENUE OVER (UNDER) EXPENDITURES (2,171,381) (2,171,381) (580,846) 1,590,535 Net change in fund balance $ (2,171,381) $ (2,171,381) (580,846) $ 1,590,535 FUND BALANCES:

Beginning of year 2,333,231
End of year $ 1,752,385
Budgeted Amounts
19 City Council/RSA Agenda 71 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission - Measure B Funds Supplementary Information, Continued
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ACTC Bike & Pedestrian Paths Special Revenue Fund
For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Direct Local Program Distribution Allocation $ 183,100 $ 183,100 $ 221,060 $ 37,960 Investment income 8,000 8,000 7,912 (88)
Total revenues 191,100 191,100 228,972 37,872
EXPENDITURES:

Current:

Public works 1,264,125 1,264,125 339,361 924,764
Total expenditures 1,264,125 1,264,125 339,361 924,764
REVENUE OVER (UNDER) EXPENDITURES (1,073,025) (1,073,025) (110,389) 962,636 Net change in fund balance $ (1,073,025) $ (1,073,025) (110,389) $ 962,636 FUND BALANCES:

Beginning of year 1,051,547
End of year $ 941,158
Budgeted Amounts
20 City Council/RSA Agenda 72 Tuesday, December 12, 2023

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of Union City
Union City, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Measure B Funds (Measure B Funds) of the City of Union City, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, and have issued our report thereon dated December 6, 2023.

Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
21 City Council/RSA Agenda 73 Tuesday, December 12, 2023 To the Honorable Mayor and Members of City Council
of the City of Union City
Union City, California

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Measure B Funds’ financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statement. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Badawi and Associates
Berkeley, California
December 6, 2023
22 City Council/RSA Agenda 74 Tuesday, December 12, 2023

REPORT ON COMPLIANCE AND ON INTERNAL CONTROL

OVER COMPLIANCE FOR MEASURE B
Independent Auditor’s Report
To the Honorable Mayor and Members
of the City Council of the City of Union City
Union City, California
Report on Compliance for Measure B
Opinion on Compliance for Measure B
We have audited City of Union City’s (City) compliance with the types of compliance requirements described in the agreement between the City and Alameda County Transportation Commission that could have a direct and material effect on its Measure B 2000 Funds (Measure B Funds) for the year ended June 30, 2022.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its Measure B Funds for the year ended June 30, 2022.

Basis for Opinion on Measure B
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the agreement between the City and Alameda County Transportation Commission. Our responsibilities under those standards and are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the City’s Measure B Funds.

Our audit does not provide a legal determination of the Measure B Funds compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s Measure B Funds.
23 City Council/RSA Agenda 75 Tuesday, December 12, 2023 To the Honorable Mayor and Members
of the City Council of the City of Union City
Union City, California

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Measure B Fund’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the agreement between the City and Alameda County Transportation Commission will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Measure B Funds’ compliance with the requirements of the agreement between the City and Alameda County Transportation Commission.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the agreement between the City and Alameda County Transportation Commission, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Measure B Funds’ compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
 Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the agreement between the City and Alameda County Transportation Commission, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Other Matters
Under Measure B, approved by the voters of Alameda County in 2000, the City has received a total of 12 months of revenue from July 2021 through June 2022. The Local Street and Roads program has received $710,145, the Bike and Pedestrian program has received $221,060, the Mass Transit program has received $456,213, and the Paratransit program has received $332,303. 24 City Council/RSA Agenda 76 Tuesday, December 12, 2023 To the Honorable Mayor and Members
of the City Council of the City of Union City
Union City, California

Report on Internal Control over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined below. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of the agreement between the City and the Alameda County Transportation Commission on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of the agreement between the City and the Alameda County Transportation Commission will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of the agreement between the City and the Alameda County Transportation Commission that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the agreement between the City and the Alameda County Transportation Commission. Accordingly, this report is not suitable for any other purpose.

Badawi and Associates
Berkeley, California
December 6, 2023
25 City Council/RSA Agenda 77 Tuesday, December 12, 2023 City of Union City
Measure BB Funds
Union City, California
Financial Statements and
Independent Auditor’s Reports
For the year ended June 30, 2022
Exhibit B
City Council/RSA Agenda 78 Tuesday, December 12, 2023
City of Union City
Alameda County Transportation Commission – Measure BB Funds Financial Statements
For the year ended June 30, 2022
Table of Contents
Page
Independent Auditor’s Report .................................................................................................................................1 Financial Statements:

Balance Sheets and Statements of Net Position.................................................................................................4 Statement of Revenues, Expenditures and
Changes in Fund Balances .............................................................................................................................6 Statement of Revenues, Expenses and Changes in Net Position....................................................................7 Statement of Cash Flows ......................................................................................................................................8 Notes to Financial Statements..............................................................................................................................10 Supplementary Information:

Budgetary Basis of Accounting:

Budgetary Control and Budgetary Accounting............................................................................................18 Budgetary Comparison Schedule, ACTC Streets & Roads Special Revenue Fund.................................19 Budgetary Comparison Schedule, ACTC Bike & Pedestrian Special Revenue Fund.............................20 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards..................................................................21 Report on Measure BB Compliance ..........................................................................................................................23 City Council/RSA Agenda 79 Tuesday, December 12, 2023
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Union City
Union City, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the Measure BB Funds (Measure BB Funds) of the City of Union City, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the Measure BB Funds of the City, as of June 30, 2022, and the respective changes in financial position, and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Measure BB Funds of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit.

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

Emphasis of Matter
As discussed in Note 1, the financial statements present only the Measure BB Funds and do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2022, or the changes in financial position or cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter. 1 City Council/RSA Agenda 80 Tuesday, December 12, 2023 To the Honorable Mayor and Members of the City Council
of the City of Union City
Union City, California

Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Measure BB Funds’ ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Measure BB Funds’ internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Measure BB Funds’ ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
2 City Council/RSA Agenda 81 Tuesday, December 12, 2023 To the Honorable Mayor and Members of the City Council
of the City of Union City
Union City, California

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Measure BB Funds’ financial statements. The budgetary comparison information is presented for purposes of additional analysis and is not a required part of the financial statements.

The budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements.

Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, budgetary information is fairly stated, in all material respects, in relation to the financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 6, 2023 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Badawi and Associates
Berkeley, California
December 6, 2023
3 City Council/RSA Agenda 82 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission - Measure BB Funds Balance Sheets and Statements of Net Position
June 30, 2022
Streets & Bike &
Roads Pedestrian Paths
ASSETS
Cash and investments $ 2,538,100 $ 676,164
Receivables:

Intergovernmental 439,291 124,330
Total assets $ 2,977,391 $ 800,494

LIABILITIES AND NET POSITION/FUND BALANCE
Liabilities
Accounts payable 16,182 22,002
Due to other funds - -
Total liabilities 16,182 22,002
Net position/fund balance
Fund balance:

Restricted for street maintenance & improvements 2,961,209 778,492 Total restricted 2,961,209 778,492
Total net position/fund balance 2,961,209 778,492
Total liabilities and net position/fund balance $ 2,977,391 $ 800,494 See accompanying notes to the financial statements
Special Revenue Funds
4 City Council/RSA Agenda 83 Tuesday, December 12, 2023 Mass Transit Paratransit Total
$ - $ - $ 3,214,264
235,833 140,304 939,758
$ 235,833 $ 140,304 $ 4,154,022
- - 38,184
235,833 140,304 376,137
235,833 140,304 414,321
- - 3,739,701
- - 3,739,701
3,739,701
$ 235,833 $ 140,304 $ 4,154,022
Enterprise Funds
5 City Council/RSA Agenda 84 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission - Measure BB Funds Statement of Revenues, Expenditures and Changes in Fund Balances For the year ended June 30, 2022
Streets & Bike &
Roads Pedestrian Total
REVENUES:

Direct Local Program Distribution Allocation $ 1,070,027 $ 302,843 $ 1,372,870 Investment income 17,250 5,124 22,374
Total revenues 1,087,277 307,967 1,395,244
EXPENDITURES:

Public works 81,364 144,012 225,376
Total expenditures 81,364 144,012 225,376
REVENUES OVER (UNDER) EXPENDITURES 1,005,913 163,955 1,169,868 FUND BALANCES:

Beginning of year 1,955,296 614,537 2,569,833
End of year $ 2,961,209 $ 778,492 $ 3,739,701
See accompanying notes to the financial statements
Special Revenue Funds
6 City Council/RSA Agenda 85 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission - Measure BB Funds Statement of Revenues, Expenses and Changes in Net Position For the year ended June 30, 2022
Mass Transit Paratransit Total
OPERATING EXPENSES:

Purchased transportation $ 574,442 $ 341,753 $ 916,195
Total operating expenses 574,442 341,753 916,195
OPERATING LOSS (574,442) (341,753) (916,195)
NONOPERATING REVENUES:

Direct Local Program Distribution Allocation 574,442 341,753 916,195 Total nonoperating revenues 574,442 341,753 916,195
Change in net position - - -
NET POSITION:

Beginning of year - - -
End of year $ - $ - $ -
See accompanying notes to the financial statements
Enterprise Funds
7 City Council/RSA Agenda 86 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission - Measure BB Funds Statement of Cash Flows
For the year ended June 30, 2022
Mass Transit Paratransit Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash payment to vendors for services $ (574,442) $ (341,753) $ (916,195) Net cash provided (used) by operating activities (574,442) (341,753) (916,195)

CASH FLOWS FROM NONCAPITAL
FINANCING ACTIVITIES:

Direct Local Program Distribution Allocation 574,442 341,753 916,195 Net cash provided (used) by noncapital
financing activities 574,442 341,753 916,195
Net increase (decrease) in cash
and cash equivalents - - -
CASH AND CASH EQUIVALENTS:

Beginning of year - - -
End of year $ - $ - $ -
CASH FLOWS FROM OPERATING ACTIVITIES:

Operating loss $ (574,442) $ (341,753) $ (916,195)
See accompanying notes to the financial statements
Enterprise Funds
8 City Council/RSA Agenda 87 Tuesday, December 12, 2023 This page intentionally left blank
9 City Council/RSA Agenda 88 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission – Measure BB Funds Notes to Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
All transactions of the Alameda County Transportation Commission Measure BB Funds (Measure BB Funds) of the City of Union City, California (City), are included as separate special revenue and enterprise funds in the basic financial statements of the City. Measure BB Funds are used to account for the City’s share of revenues earned and expenditures incurred under the City’s streets and roads, bike and pedestrian, transit, and paratransit programs. The accompanying financial statements are for Measure BB Funds only and are not intended to fairly present the financial position or results of operations of the City.

B. Basis of Accounting
Governmental Fund Financial Statements
The accompanying financial statements of the special revenue funds are prepared on the modified accrual basis of accounting. Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred.

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

Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance.

Proprietary Fund Financial Statements
The financial statements of the enterprise funds are prepared on the accrual basis of accounting.

Revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the related liability is incurred.

All proprietary funds are accounted for using the “economic resources” measurement focus. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the Statement of Net Position.

The Statement of Revenues, Expenses and Changes in Net Position presents increases (revenues) and decreases (expenses) in net position. Operating revenues in a proprietary fund are those revenues that are generated from the primary operations of the fund. All other revenues are reported as nonoperating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. 10 City Council/RSA Agenda 89 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission – Measure BB Funds Notes to Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED C. Fund Accounting
The accounts are maintained on the basis of fund accounting. A fund is a separate accounting entity with a self-balancing set of accounts.

The following funds are used:

Special Revenue Fund – To account for the proceeds of specific revenues (other than for capital projects) that are legally restricted to be expended for specified purposes.

Enterprise Fund – To account for operations that are financed and operated in a manner similar to private business enterprises, where the intent of the governing body is that the costs of providing goods and services to the general public on a continuing basis be recovered through user charges.

D. Fund Balance /Net Position
Fund balances of governmental funds are classified in one of five categories:

Nonspendable Fund Balance – Represents that portion of fund balance that includes amounts that are either 1) not in a spendable form; or 2) legally or contractually required to be maintained intact.

Amounts considered “not in a spendable form” include items that are not expected to be converted to cash, such as prepaid items and long-term notes receivable.

Restricted Fund Balance – Represents that portion of fund balance that reflects constraints placed on the use of resources (other than nonspendable items) that are either 1) externally imposed by creditors, such as through debt covenants, grantors, contributors, or the laws and regulations of other governments; or 2) imposed by law through constitutional provisions or enabling legislation.

These restrictions may be effectively changed only with the consent of the resource provider.

Committed Fund Balance – Represents that portion of fund balance that includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council, the City government’s highest-level decision-making authority. In order for funds to be considered committed, an ordinance must be introduced at a City Council meeting describing the proposed action. The ordinance must be published in the City’s official newspaper of publication within 15 days of adoption. Ordinances are then codified in the City’s municipal code. Those funds collected and expended for specific purposes defined in the City’s municipal code are reported as committed fund balances. The established constraints remain binding until the City Council takes action to amend the applicable section of the municipal code. 11 City Council/RSA Agenda 90 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission – Measure BB Funds Notes to Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED D. Fund Balance /Net Position, Continued
Assigned Fund Balance – Represents that portion of fund balance that includes amounts that are constrained by the City’s intended use of the resources but are neither restricted nor committed.

Such intent needs to be established at the highest level of decision making or by an official designated for that purpose. The City Council has given the City Manager the authority to assign amounts to be used for specific purposes.

Unassigned Fund Balance – Represents that portion of fund balance that includes amounts that are not contained in any of the other fund balance categories. The General Fund is the only governmental fund that may report a positive amount as unassigned fund balance. For all other governmental funds, only negative balances may be reported as unassigned fund balance.

Net position is classified in the following categories:

Net Investment in Capital Assets – Consists of capital assets net of accumulated depreciation reduced by outstanding debt attributed to the acquisition, construction, or improvement of the assets.

Restricted Net Position – Consists of funds restricted by external creditors, grantors, contributors, or laws or regulations of other governmental entities.

Unrestricted Net Position – Consists of any amounts that do not meet the definition of net investment in capital assets or restricted net position.

In circumstances when an expenditure is made for a purpose for which amounts are available in multiple fund balance classifications, fund balance is generally depleted in the order of restricted, committed, assigned, and then unassigned.

In circumstances when an expense is made for a purpose for which amounts are available in multiple net position classifications, net position is generally depleted in the order of restricted and then unrestricted.

The City’s enterprise funds, Paratransit and Mass Transit, report zero amounts in their net position.

The Measure BB funds supplement passenger fares and operating grant revenues. All Measure BB funds received are expended during the year.
12 City Council/RSA Agenda 91 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission – Measure BB Funds Notes to Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED E. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

F. Statement of Cash Flows
For purposes of the statement of cash flows, cash equivalents are defined as investments with original maturities of 90 days or less, which are readily convertible to known amounts of cash. The City considers all pooled cash and investments (consisting of cash and investments and restricted cash and investments) held by the City as cash and cash equivalents because the pool is used essentially as a demand deposit account from the standpoint of the funds. The City also considers all non-pooled cash and investments (consisting of cash with fiscal agents and restricted cash and investments held by fiscal agents) as cash and cash equivalents because investments meet the criteria for cash equivalents defined above.

2. MEASURE BB FUNDS
Under Measure BB, approved by the voters of Alameda County in November 2014, the City receives a portion of the proceeds of an additional one-half cent sales tax to be used to fund the 30-year transportation expenditure plan. This measure was adopted with the intent that the funds generated by the additional sales tax will not fund expenditures previously paid for by property taxes.

Measure BB funds were expended on the following projects in fiscal year 2021-22:

Streets and Roads Program – To provide funding for citywide overlay and slurry seal projects, paving maintenance, and installation of new traffic signals.

Bike and Pedestrian Program – To help fund construction of new sidewalks, citywide trail system rehabilitation, and intersection improvements.

Paratransit Program – To help fund Americans with Disabilities Act (ADA) mandated service; to help fund the Union City “Paratransit Plus” program, which offers an expanded service area, group trips for seniors and the disabled, and urgent medical trips; and to help fund extended weekday service hours. Measure BB funds are considered spent in the year the funds are earned.

Mass Transit Program – To help fund the operations of the City’s own bus system, Union City Transit. This system operates daily (except for holidays) and provides local transit service to major destinations within the City. Union City Transit makes connections with other transit systems including BART, AC Transit, and Dumbarton Express. Measure BB funds are considered spent in the year the funds are earned.
13 City Council/RSA Agenda 92 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission – Measure BB Funds Notes to Financial Statements, Continued
For the year ended June 30, 2022

3. CASH AND INVESTMENTS
Measure BB Funds are to be pooled with the City’s cash and investments in order to generate optimum investment income.

The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from date of acquisition. Cash and cash equivalents are combined with investments and displayed as cash and investments.

Investment income is allocated quarterly to funds based on their proportionate share of average quarterly cash balances.

Amounts reported as unrealized gain/(loss) in market value of investments are made in accordance with Governmental Accounting Standards Board (GASB) Statement No. 31, which states all investment income, including changes in the fair value of investments, should be recognized as revenue in the operating statement.

Measure BB Funds had the following cash and investments at June 30, 2022:

Cash and investments $3,214,264
14 City Council/RSA Agenda 93 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission – Measure BB Funds Notes to Financial Statements, Continued
For the year ended June 30, 2022

3. CASH AND INVESTMENTS, CONTINUED
A. Investments
Under the provisions of the City’s investment policy, and in accordance with California Government Code, the following investments are authorized:

Minimum Maximum
Maximum Credit Percentage of
Authorized Investment Type Maturity Quality Portfolio
U.S. Agency and U.S. Government 5 years N/A No limit
State of California Obligations 5 years N/A No limit
CA Local Agency Obligations 5 years N/A No limit
Prefunded Municipal Obligations N/A AAA No limit
Banker Acceptances 365 days AAA No limit
Commercial Paper 270 days AAAm No limit
Negotiable Certificates of Deposit 365 days AAA No limit Repurchase Agreements 1 year AAA No limit
Money Market Mutual Funds N/A AAAm No limit
Collateralized Bank Deposits 5 years None No limit
Mortgage Pass-through Securities 5 years AA 20%
Time Deposits 365 days AAA No limit
Guaranteed Investment Contracts N/A AA No limit
California Local Agency Investment Fund N/A N/A No limit In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, investments were stated at fair value using the aggregate method in all funds and component units. The City’s investments are carried at fair market value as required by generally accepted accounting principles. The City accounts for all changes in fair value that occurred during the year and these changes are reflected in the fund balance or net position for the fiscal year.

These investment value changes are unrealized since the City’s policy is to buy and hold investments until maturity dates.

B. Risk Disclosures
Interest Risk – Interest risk is the fluctuation in the fair value of investments due to changes in interest rates. The City’s exposure to losses caused by rising interest rates is minimized by limiting the average maturity of the City’s investments to not exceed five years.

Credit Risk – Credit risk is the risk of loss of value of a security or investment due to downgrade of its rating due to a change in the ability of the issuer to fulfill its debt obligations. With the exception of U.S. Treasury securities and authorized pools, no more than 50% of the City’s total investment portfolio will be invested in a single security type or with a single financial institution to reduce the City’s exposure to credit risks.
15 City Council/RSA Agenda 94 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission – Measure BB Funds Notes to Financial Statements, Continued
For the year ended June 30, 2022

3. CASH AND INVESTMENTS, CONTINUED
Custodial Credit Risk – The custodial credit risk for investments is the risk that in the event of the failure of a counterparty, the investor will not be able to recover the value of its investments or collateral securities that are in possession of an outside party. None of the City’s investments were subject to custodial credit risk.

C. Local Agency Investment Fund
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The balance is available for withdrawal on demand. The City’s investments with LAIF at June 30, 2022, include a portion of the pool funds invested in structured notes and asset-backed securities. These investments include the following:

Structured Notes - Debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities – Securities, the bulk of which are mortgage-backed securities, that entitle their purchasers to receive a share of the cash flows from a pool of assets, such as principal and interest repayments from a pool of mortgages (e.g., collateralized mortgage obligations) or credit card receivables.

As of June 30, 2022, the City invested in LAIF, which had invested 1.88% of the pool investments in structured notes and asset-backed securities compared to 2.31% in the previous year. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The fair value of LAIF was calculated by applying a factor of 0.98712 to the total investments held by LAIF.

4. INTERGOVERNMENTAL RECEIVABLES
Intergovernmental receivables represent the Measure BB sales tax revenues for the fiscal year received from the Alameda County Transportation Commission after June 30, 2022.

5. COMMITMENTS AND CONTINGENCIES
The City participates in several grant programs. These programs are subject to further examination by the grantors and the amount, if any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial. 16 City Council/RSA Agenda 95 Tuesday, December 12, 2023

SUPPLEMENTARY INFORMATION
17 City Council/RSA Agenda 96 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission – Measure BB Funds Supplementary Information
For the year ended June 30, 2022

1. BUDGETARY BASIS OF ACCOUNTING
A. Budgetary Control and Budgetary Accounting
The City Council adopts a two-year operating budget for the General Fund, Special Revenue funds, and Debt Service funds, with each year of the budget document independent of the other. The operating budget is effective July 1 and lapses the following June 30. Budgets are adopted on a basis consistent with generally accepted accounting principles. The budget is controlled at the department level in the General Fund and at the fund level for all other funds. The City’s five-year capital improvement plan serves as the basis for the capital project budgets. Appropriations for Capital Project funds are approved at the same time operating budgets are adopted. These appropriations are made in the fiscal year the capital project is scheduled to commence and are effective for the life of the project. Amendments to capital budgets may be approved by Council at any time during the project’s life. As a result, budget-toactual schedules are not presented.

The City Council may amend the budget by resolution during the fiscal year. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions which alter the total appropriations of any fund must be approved by the City Council. Transfers between funds must be approved by the City Council. There were certain amendments made to the budget during the year for changes in employee compensation plans and to address variances between the original budget and actual activities. These adjustments are reflected in the final budget information presented in the comparison schedules.

Under encumbrance accounting, purchase orders, contracts, and other commitments for the expenditures of monies are recorded in order to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of the formal budgetary process. Encumbrances outstanding at year-end are carried forward to the following fiscal year. 18 City Council/RSA Agenda 97 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission - Measure BB Funds Supplementary Information, Continued
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ACTC Streets & Roads Special Revenue Fund
For the year ended June 30, 2022
Variance
with
Final
Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Direct Local Program Distribution Allocation $ 867,200 $ 867,200 $ 1,070,027 $ 202,827 Investment income 8,100 8,100 17,250 9,150
Total revenues 875,300 875,300 1,087,277 211,977
EXPENDITURES:

Current:

Public works 2,466,130 2,466,130 81,364 2,384,766
Total expenditures 2,466,130 2,466,130 81,364 2,384,766 Net change in fund balance $ (1,590,830) $ (1,590,830) 1,005,913 $ 2,596,743 FUND BALANCES:

Beginning of year 1,955,296
End of year $ 2,961,209
Budgeted Amounts
19 City Council/RSA Agenda 98 Tuesday, December 12, 2023 City of Union City
Alameda County Transportation Commission - Measure BB Funds Supplementary Information, Continued
Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ACTC Bike & Pedestrian Paths Special Revenue Fund
For the year ended June 30, 2022
Variance
with
Final
Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Direct Local Program Distribution Allocation $ 245,000 $ 245,000 $ 302,843 $ 57,843 Investment income 6,100 6,100 5,124 (976)
Total revenues 251,100 251,100 307,967 56,867
EXPENDITURES:

Current:

Public works 790,486 790,486 144,012 646,474
Total expenditures 790,486 790,486 144,012 646,474
Net change in fund balance $ (539,386) $ (539,386) 163,955 $ 703,341 FUND BALANCES:

Beginning of year 614,537
End of year $ 778,492
Budgeted Amounts
20 City Council/RSA Agenda 99 Tuesday, December 12, 2023

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members
of City Council of the City of Union City
Union City, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Measure BB Funds (Measure BB Funds) of the City of Union City, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, and have issued our report thereon dated December 6, 2023.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting in relation to Measure BB Funds (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
21 City Council/RSA Agenda 100 Tuesday, December 12, 2023 To the Honorable Mayor and Members
of City Council of the City of Union City
Union City, California

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Measure BB Funds’ financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Badawi and Associates
Berkeley, California
December 6, 2023
22 City Council/RSA Agenda 101 Tuesday, December 12, 2023

REPORT ON COMPLIANCE AND ON INTERNAL CONTROL

OVER COMPLIANCE FOR MEASURE BB
Independent Auditor’s Report
To the Honorable Mayor and Members
of the City Council of the City of Union City
Union City, California
Report on Compliance for Measure BB
Opinion on Compliance for Measure BB
We have audited City of Union City’s (City) compliance with the types of compliance requirements described in the agreement between the City and Alameda County Transportation Commission that could have a direct and material effect on its Measure BB Funds (Measure BB Funds) for the year ended June 30, 2022.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its Measure BB Funds for the year ended June 30, 2022.

Basis for Opinion on Measure BB
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the agreement between the City and Alameda County Transportation Commission. Our responsibilities under those standards and are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the City’s Measure BB Funds. Our audit does not provide a legal determination of the Measure BB Funds compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s Measure BB Funds.
23 City Council/RSA Agenda 102 Tuesday, December 12, 2023 To the Honorable Mayor and Members
of the City Council of the City of Union City
Union City, California

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Measure BB Fund’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the agreement between the City and Alameda County Transportation Commission will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Measure BB Fund’s compliance with the requirements of the agreement between the City and Alameda County Transportation Commission.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the agreement between the City and Alameda County Transportation Commission, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Measure BB Funds’ compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
 Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the agreement between the City and Alameda County Transportation Commission, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Other Matters
Under Measure BB, approved by the voters of Alameda County in 2014, the City has received a total of 12 months of revenue from July 2021 through June 2022. The Local Street and Roads program has received $1,070,027, the Bike and Pedestrian program has received $302,843, the Mass Transit program has received $574,442, and the Paratransit program has received $341,753. 24 City Council/RSA Agenda 103 Tuesday, December 12, 2023 To the Honorable Mayor and Members
of the City Council of the City of Union City
Union City, California

Report on Internal Control over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined below. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of the agreement between the City and the Alameda County Transportation Commission on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of the agreement between the City and the Alameda County Transportation Commission will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of the agreement between the City and the Alameda County Transportation Commission that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the agreement between the City and the Alameda County Transportation Commission. Accordingly, this report is not suitable for any other purpose.

Badawi and Associates
Berkeley, California
December 6, 2023
25 City Council/RSA Agenda 104 Tuesday, December 12, 2023 City of Union City
Measure F Alameda
County Vehicle
Registration Fee Fund
Union City, California
Financial Statements and
Independent Auditor’s Reports
For the year ended June 30, 2022
Exhibit C
City Council/RSA Agenda 105 Tuesday, December 12, 2023
City of Union City
Measure F Alameda County Vehicle Registration Fee Fund
Financial Statements
For the year ended June 30, 2022
Table of Contents
Page
Independent Auditor’s Report .................................................................................................................................1 Financial Statements:

Balance Sheet..........................................................................................................................................................4 Statement of Revenues, Expenditures and
Changes in Fund Balance...............................................................................................................................5 Notes to Financial Statements..............................................................................................................................6 Supplementary Information:

Budgets and Budgetary Accounting ...........................................................................................................13 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual:

Measure F Vehicle Registration Fund...................................................................................................14 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ..........................................15 Report on Measure F Vehicle Registration Fee Compliance..............................................................................17 City Council/RSA Agenda 106 Tuesday, December 12, 2023
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Union City
Union City, California
Report on the Audit of the Financial Statements
Opinions
We have audited the financial statements of the Measure F Alameda County Vehicle Registration Fee Fund (VRF Fund) of the City of Union City, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the VRF Fund of the City, as of June 30, 2022, and the changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the VRF Fund of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the VRF Fund and do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2023, or the change in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.

Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. 1 City Council/RSA Agenda 107 Tuesday, December 12, 2023 To the Honorable Mayor and Members of the City Council
of the City of Union City
Union City, California

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the VRF Fund’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the VRF Fund’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the VRF Fund’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control–related matters that we identified during the audit.
2 City Council/RSA Agenda 108 Tuesday, December 12, 2023 To the Honorable Mayor and Members of the City Council
of the City of Union City
Union City, California

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 6, 2023 on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Badawi and Associates
Berkeley, California
December 6, 2023
3 City Council/RSA Agenda 109 Tuesday, December 12, 2023 City of Union City
Measure F Alameda County Vehicle Registration Fee Fund
Balance Sheet
June 30, 2022
Total
ASSETS:

Cash and investments $ 1,336,797
Intergovernmental receivables 52,746
Total assets $ 1,389,543

LIABILITIES AND FUND BALANCE
Liabilities:

Accounts payable $ 26,285
Total liabilities 26,285
Fund Balance:

Restricted for
Street construction and maintenance 1,363,258
Total fund balance 1,363,258
Total liabilities and fund balance $ 1,389,543
See accompanying notes to the financial statements
4 City Council/RSA Agenda 110 Tuesday, December 12, 2023 City of Union City
Measure F Alameda County Vehicle Registration Fee Fund
Statement of Revenues, Expenditures and Changes in Fund Balance For the year ended June 30, 2022
Total
REVENUES:

Measure F revenues $ 308,608
Investment earnings 9,886
Total revenues 318,494
EXPENDITURES:

Public works 91,149
Total expenditures 91,149
Net change in fund balance 227,345
FUND BALANCE:

Beginning of year 1,135,913
End of year $ 1,363,258
See accompanying notes to the financial statements
5 City Council/RSA Agenda 111 Tuesday, December 12, 2023 City of Union City
Measure F Alameda County Vehicle Registration Fee Fund
Notes to Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
All transactions of the Measure F Alameda County Vehicle Registration Fee Fund are reported in a special revenue fund, Measure F (VRF Fund), of the City of Union City, California (City). The special revenue fund is included as part of the Measure F fund in the basic financial statements of the City. The VRF Fund is used to account for the City’s revenues earned and expenditures incurred under the City’s various street maintenance and construction projects. The accompanying financial statements are for the VRF Fund only and are not intended to fairly present the financial position of the City.

B. Basis of Accounting
The accompanying financial statements are prepared on the modified accrual basis of accounting.

Revenues are generally recorded when measurable and available, and expenditures are recorded when the related liabilities are incurred.

The accounting and financial reporting treatment applied to a fund is determined by measurement focus.

All governmental funds are accounted for using a current financial resources measurement focus, wherein only current assets and current liabilities generally are included on the balance sheet. Operating statements of governmental funds present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in fund balance.

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

D. Fund Balance
Fund balances of governmental funds are classified in one of five categories:

Nonspendable Fund Balance – Represents that portion of fund balance that includes amounts that are either 1) not in a spendable form; or 2) legally or contractually required to be maintained intact.

Amounts considered “not in a spendable form” include items that are not expected to be converted to cash, such as prepaid items and long-term notes receivable.

Restricted Fund Balance – Represents that portion of fund balance that reflects constraints placed on the use of resources (other than nonspendable items) that are either 1) externally imposed by creditors, such as through debt covenants, grantors, contributors, or the laws and regulations of other governments; or 2) imposed by law through constitutional provisions or enabling legislation.

These restrictions may be effectively changed only with the consent of the resource provider. 6 City Council/RSA Agenda 112 Tuesday, December 12, 2023 City of Union City
Measure F Alameda County Vehicle Registration Fee Fund
Notes to Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED D. Fund Balance, Continued
Committed Fund Balance – Represents that portion of fund balance that includes amounts that can only be used for specific purposes pursuant to constraints imposed by formal action of the City Council, the City’s government’s highest-level decision-making authority. In order for funds to be considered committed, an ordinance must be introduced at a City Council meeting describing the proposed action. At the following City Council meeting, a second reading of the ordinance is made and the ordinance is adopted. The ordinance must be published in the City’s official newspaper of publication within 15 days of adoption. Ordinances are then codified in the City’s municipal code.

Those funds collected and expended for specific purposes defined in the City’s municipal code report committed fund balances. The established constraints remain binding until City Council takes action to amend the applicable section of municipal code.

Assigned Fund Balance – Represents that portion of fund balance that includes amounts that are constrained by the City’s intended use of the resources but are neither restricted nor committed.

Such intent needs to be established at the highest level of decision making, or by an official designated for that purpose. The City Council has given the City Manager the authority to assign amounts to be used for specific purposes.

Unassigned Fund Balance – Represents that portion of fund balance that includes amounts that are not contained in any of the other fund balance categories. The General Fund is the only governmental fund that may report a positive amount as unassigned fund balance. For all other governmental funds, only negative balances may be reported as unassigned fund balance.

E. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. 7 City Council/RSA Agenda 113 Tuesday, December 12, 2023 City of Union City
Measure F Alameda County Vehicle Registration Fee Fund
Notes to Financial Statements, Continued
For the year ended June 30, 2022

2. MEASURE F ALAMEDA COUNTY VEHICLE REGISTRATION FEES
The Measure F Alameda County Vehicle Registration Fee (VRF) Program was approved by the voters in November 2010, with 63 percent of the vote. The fee will generate about $10.7 million per year by a $10 per year vehicle registration fee. The collection of the $10 per year vehicle registration fee started in the first week of May 2011.

The goal of the VRF program is to sustain the County’s transportation network and reduce traffic congestion and vehicle-related pollution. The program includes four categories of projects:
 Local Road Improvement and Repair Program (60 percent)  Transit for Congestion Relief (25 percent)
 Local Transportation Technology (10 percent)
 Pedestrian and Bicyclist Access and Safety Program (5 percent)

3. CASH AND INVESTMENTS
The VRF Fund’s cash and investments are pooled with the City’s cash and investments in order to generate optimum investment income.

The City pools it available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturity of three months or less from date of acquisition. Cash and cash equivalents are combined with investments and displayed as cash and investments.

Investment income is allocated quarterly to funds based on their proportionate share of average quarterly cash balances.

Amounts reported as unrealized gain/(loss) in market value of investments are made in accordance with Governmental Accounting Standards Board (GASB) Statement No. 31, which states all investment income, including changes in the fair value of investments, should be recognized as revenue in the operating statement.

The VRF Fund had the following cash and investments at June 30, 2022:

Cash and investments $1,336,797
8 City Council/RSA Agenda 114 Tuesday, December 12, 2023 City of Union City
Measure F Alameda County Vehicle Registration Fee Fund
Notes to Financial Statements, Continued
For the year ended June 30, 2022

3. CASH AND INVESTMENTS, CONTINUED
A. Investments
Under the provisions of the City’s investment policy, and in accordance with California Government Code, the following investments are authorized:

Maximum
Maximum Minimum Credit Percentage of
Authorized Investment Type Maturity Quality Portfolio
U.S. Agency and U.S. Government 5 years N/A No Limit
State of California Obligations 5 years N/A No Limit
CA Local Agency Obligations 5 years N/A No Limit
Prefunded Municipal Obligations N/A AAA No Limit
Banker Acceptances 365 days AAA No Limit
Commercial Paper 270 days AAAm No Limit
Negotiable Certificates of Deposit 365 days AAA No Limit Repurchase Agreements 1 year AAA No Limit
Money Market Mutual Funds N/A AAAm No Limit
Collateralized Bank Deposits 5 years None No Limit
Mortgage Pass-Through Securities 5 years AA 20%
Time Deposits 365 days AAA No Limit
Guaranteed Investment Contracts N/A AA No Limit
California Local Agency Investment Fund N/A N/A No Limit In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, investments were stated at fair value using the aggregate method in all funds and component units. The City’s investments are carried at fair market value as required by generally accepted accounting principles. The City accounts for all changes in fair value that occurred during the year and these changes are reflected in the fund balance for the fiscal year. These investment value changes are unrealized since the City’s policy is to hold and buy investments until maturity dates.

B. Risk Disclosures
Interest Risk – Interest rate risk is the fluctuation in the fair value of investments due to changes in interest rates. The City’s exposure to losses caused by rising interest rates is minimized by limiting the average maturity of the City’s investments to not to exceed five years.

Credit Risk – Credit risk is the risk of loss of value of a security or investment due to downgrade of its rating due to a change in the ability of the issuer to fulfill its debt obligation. With the exception of U.S. Treasury securities and authorized pools, no more than 50% of the City’s total investment portfolio will be invested in a single security type or with a single financial institution to reduce the City’s exposure to credit risks.
9 City Council/RSA Agenda 115 Tuesday, December 12, 2023 City of Union City
Measure F Alameda County Vehicle Registration Fee Fund
Notes to Financial Statements, Continued
For the year ended June 30, 2022

3. CASH AND INVESTMENTS, CONTINUED
Custodial Credit Risk – The custodial credit risk for investments is the risk that in the event of the failure of a counterparty, the investor will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the City’s investments were subject to custodial credit risk.

C. Local Agency Investment Fund
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The balance is available for withdrawal on demand. The City’s investments with LAIF at June 30, 2022, include a portion of the pool funds invested in structured notes and asset-backed securities. These investments include the following:

Structured Notes - Debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities – Securities, the bulk of which are mortgage-backed securities, that entitle their purchasers to receive a share of the cash flows from a pool of assets, such as principal and interest repayments from a pool of mortgages (e.g., collateralized mortgage obligations) or credit card receivables.

As of June 30, 2022, the City invested in LAIF, which had invested 1.88% of the pool investments in structured notes and asset-backed securities compared to 2.31% in the previous year. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The fair value of LAIF was calculated by applying a factor of 0.98712 to the total investments held by LAIF.

4. INTERGOVERNMENTAL RECEIVABLES
The intergovernmental receivables includes Measure F VRF revenues received from the Alameda County Transportation Commission after June 30, 2022.

5. COMMITMENTS AND CONTINGENCIES
The City participates in several grant programs. These programs are subject to further examination by the grantors and the amount, if any, of expenditures that may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial. 10 City Council/RSA Agenda 116 Tuesday, December 12, 2023

SUPPLEMENTARY INFORMATION
11 City Council/RSA Agenda 117 Tuesday, December 12, 2023 This page intentionally left blank
12 City Council/RSA Agenda 118 Tuesday, December 12, 2023 City of Union City
Measure F Alameda County Vehicle Registration Fee Fund
Supplementary Information
For the year ended June 30, 2022

1. BUDGETS AND BUDGETARY ACCOUNTING
A. Budgetary Control and Budgetary Accounting
The City Council adopts a two-year operating budget for the General Fund, Special Revenue funds, and Debt Service funds, with each year of the budget document independent of the other. The operating budget is effective July 1 and lapses the following June 30. Budgets are adopted on a basis consistent with generally accepted accounting principles. The budget is controlled at the department level. The City’s five-year capital improvement plan serves as the basis for the capital project budgets.

Appropriations for Capital Project funds are approved at the same time operating budgets are adopted.

These appropriations are made in the fiscal year the capital project is scheduled to commence and are effective for the life of the project. Amendments to capital budgets may be approved by Council at any time during the project’s life. As a result, budget-to-actual schedules are not presented.

The City Council may amend the budget by resolution during the fiscal year. The City Manager is authorized to transfer budgeted amounts between departments within any fund; however, any revisions which alter the total appropriations of any fund must be approved by the City Council.

Transfers between funds must be approved by the City Council. There were certain amendments made to the budget during the year for changes in employee compensation plans and to address variances between the original budget and actual activities. These adjustments are reflected in the final budget information presented in the comparison schedules.

Under encumbrance accounting, purchase orders, contracts, and other commitments for the expenditures of monies are recorded in order to reserve that portion of the applicable appropriation.

Encumbrance accounting is employed as an extension of the formal budgetary process. Encumbrances outstanding at year-end are carried forward to the following fiscal year. Per Council resolution, appropriations are increased by the amount of outstanding encumbrances. 13 City Council/RSA Agenda 119 Tuesday, December 12, 2023 City of Union City
Supplementary Information, Continued
Measure F Alameda County Vehicle Registration Fee Fund
Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual For the year ended June 30, 2022
Variance with
Final Budget
Actual Positive
Original Final Amounts (Negative)
REVENUES:

Measure F revenue $ 295,200 $ 295,200 $ 308,608 $ 13,408 Investment income 4,000 4,000 9,886 5,886
Total revenues 299,200 299,200 318,494 19,294
EXPENDITURES:

Public works 1,376,382 1,376,382 91,149 1,285,233
Total expenditures 1,376,382 1,376,382 91,149 1,285,233 NET CHANGE IN FUND BALANCE $ (1,077,182) $ (1,077,182) 227,345 $ 1,304,527 FUND BALANCE:

Beginning of year 1,135,913
End of year $ 1,363,258
Budgeted Amounts
14 City Council/RSA Agenda 120 Tuesday, December 12, 2023

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL

STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members
of City Council of the City of Union City
Union City, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Measure F Alameda County Vehicle Registration Fee Fund (VRF Fund) of the City of Union City, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, and have issued our report thereon dated December 6, 2023.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
15 City Council/RSA Agenda 121 Tuesday, December 12, 2023 To the Honorable Mayor and Members
of City Council of the City of Union City
Union City, California

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the VRF Fund’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Badawi and Associates
Berkeley, California
December 6, 2023
16 City Council/RSA Agenda 122 Tuesday, December 12, 2023

REPORT ON COMPLIANCE AND ON INTERNAL CONTROL

OVER COMPLIANCE FOR MEASURE F
Independent Auditor’s Report
To the Honorable Mayor and Members
of the City Council of the City of Union City
Union City, California
Report on Compliance for Measure F
Opinion on Compliance for Measure F
We have audited City of Union City’s (City) compliance with the types of compliance requirements described in the agreement between the City and Alameda County Transportation Commission that could have a direct and material effect on its Measure F Alameda County Vehicle Registration Fee Fund (VRF Fund) for the year ended June 30, 2022.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its VRF Fund for the year ended June 30, 2022.

Basis for Opinion on Measure F
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the agreement between the City and Alameda County Transportation Commission. Our responsibilities under those standards and are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the City’s VRF Fund. Our audit does not provide a legal determination of the VRF Fund’s compliance with the compliance requirements referred to above.

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s VRF Fund.
17 City Council/RSA Agenda 123 Tuesday, December 12, 2023 To the Honorable Mayor and Members
of the City Council of the City of Union City
Union City, California

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the VRF Fund’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the agreement between the City and Alameda County Transportation Commission will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the VRF Fund’s compliance with the requirements of the agreement between the City and Alameda County Transportation Commission.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the agreement between the City and Alameda County Transportation Commission, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the VRF Fund’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the agreement between the City and Alameda County Transportation Commission, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control over Compliance
Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined below. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.
18 City Council/RSA Agenda 124 Tuesday, December 12, 2023 To the Honorable Mayor and Members
of the City Council of the City of Union City
Union City, California

A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of the agreement between the City and the Alameda County Transportation Commission on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of the agreement between the City and the Alameda County Transportation Commission will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of the agreement between the City and the Alameda County Transportation Commission that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the agreement between the City and the Alameda County Transportation Commission. Accordingly, this report is not suitable for any other purpose.

Badawi and Associates
Berkeley, California
December 6, 2023
19 City Council/RSA Agenda 125 Tuesday, December 12, 2023 City of Union
City
Transportation Development
Act Program
Union City, California
Financial Statements and
Independent Auditor’s Reports
For the year ended June 30, 2022
Exhibit D
City Council/RSA Agenda 126 Tuesday, December 12, 2023
City of Union City
Transportation Development Act Program
For the year ended June 30, 2022
Table of Contents
Page
Independent Auditor’s Report.................................................................................................................................1 Financial Statements:

Enterprise Funds Financial Statements
Statement of Net Position......................................................................................................................................4 Statement of Revenues, Expenses and
Changes in Net Position ........................................................................................................................................5 Statement of Cash Flows..............................................................................................................................................6 Notes to Financial Statements .....................................................................................................................................7 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards................................................................13 Independent Auditor’s Report on Compliance ....................................................................................................15 City Council/RSA Agenda 127 Tuesday, December 12, 2023
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of Union City
Union City, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the Transportation Development Act (TDA) Funds of the City of Union City, California, as of and for the year ended June 30, 2022, and the related notes to the financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the TDA Funds, as of June 30, 2022, and the respective changes in financial position and cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the TDA Funds and do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2022, and the changes in its financial position or where applicable, its cash flows for the years ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
1 City Council/RSA Agenda 128 Tuesday, December 12, 2023 To the Honorable Mayor and Members of the City Council
of the City of Union City
Union City, California

Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the TDA Funds’ ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the TDA Funds’ internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the TDA funds’ ability to continue as a going concern for a reasonable period of time.
2 City Council/RSA Agenda 129 Tuesday, December 12, 2023 To the Honorable Mayor and Members of the City Council
of the City of Union City
Union City, California

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control– related matters that we identified during the audit.

Required Supplementary Information
Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 6, 2023 on our consideration of the TDA funds’ internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the TDA Funds’ internal control over financial reporting and compliance.

Badawi and Associates, CPAs
Berkeley, California
December 6, 2023
3 City Council/RSA Agenda 130 Tuesday, December 12, 2023 City of Union City
Transportation Development Act Program
Statement of Net Position
For the year ended June 30, 2022
Transit Paratransit Total
ASSETS
Current assets
Cash and investments $ - $ - $ -
Taxes receivable 242,337 145,042 387,379
Accounts receivable 12,048 956 13,004
Intergovernmental receivables 3,635,850 610,278 4,246,128 Total current assets 3,890,235 756,276 4,646,511
Noncurrent assets
Capital assets:

Depreciable, net 3,784,586 505,212 4,289,798
Total noncurrent assets 3,784,586 505,212 4,289,798
Total assets 7,674,821 1,261,488 8,936,309

LIABILITIES
Current liabilities:

Accounts payable 266,042 90,144 356,186
Due to other City funds 2,809,507 39,946 2,849,453
Due to other agencies 233,198 643,275 876,473
Unearned revenue 419,800 21,051 440,851
Accrued compensated absences - current 17,766 9,566 27,332 Total current liabilities 3,746,313 803,982 4,550,295
Noncurrent liabilities:

Accrued compensated absences - noncurrent 31,582 17,006 48,588 Total noncurrent liabilities 31,582 17,006 48,588
Total liabilities 3,777,895 820,988 4,598,883

NET POSITION
Investment in capital assets 3,784,586 505,212 4,289,798 Unrestricted 112,340 (64,712) 47,628
Total net position $ 3,896,926 $ 440,500 $ 4,337,426
Enterprise Funds
See accompanying notes to financial statements
4 City Council/RSA Agenda 131 Tuesday, December 12, 2023 City of Union City
Transportation Development Act Program
Statement of Revenues, Expenses and Changes in Net Position For the year ended June 30, 2022
Transit Paratransit Total

OPERATING REVENUES
Charges for services $ 182,154 $ 31,272 $ 213,426
Total operating revenues 182,154 31,272 213,426

OPERATING EXPENSES
Payroll and related costs 514,983 186,367 701,350
Services and supplies 690,408 75,088 765,496
Purchased transportation 3,937,212 - 3,937,212
Paratransit contract - 866,518 866,518
Administration 222,234 43,219 265,453
Depreciation 867,409 122,721 990,130
Total operating expenses 6,232,246 1,293,913 7,526,159
Operating (Loss) (6,050,092) (1,262,641) (7,312,733)

NONOPERATING REVENUES (EXPENSES)
Intergovernmental revenues (expenses)
TDA allocation - Article 4 3,363,660 121,509 3,485,169
TDA allocation - Article 4.5 - 167,020 167,020
State Transit Assistance 500,933 106,400 607,333
STA Toll Bridge Net Revenue - 109,125 109,125
FTA Section 5307 - 181,775 181,775
ACTC Measure B sales tax 456,213 332,303 788,516
ACTC Measure BB sales tax 574,442 341,753 916,195
Gain (Loss) on disposal of capital assets 12,003 159 12,162 Capital grants:

STA-State of Good Repair - 16,032 16,032
Low Carbon Transit Op/Greenhouse 215,572 141,630 357,202 BAAQMD Grant 224,926 - 224,926
Investment income (loss) (11,751) (255) (12,006)
Total nonoperating revenues 5,335,998 1,517,451 6,853,449 Changes in net position (714,094) 254,810 (459,284)
BEGINNING NET POSITION 4,611,020 185,690 4,796,710
ENDING NET POSITION $ 3,896,926 $ 440,500 $ 4,337,426
Enterprise Funds
See accompanying notes to financial statements
5 City Council/RSA Agenda 132 Tuesday, December 12, 2023 City of Union City
Transportation Development Act Program
Statement of Cash Flows
For the year ended June 30, 2022
Transit Paratransit Total

CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers $ 182,154 $ 31,272 $ 213,426 Cash paid to suppliers (4,903,808) (982,443) (5,886,251) Cash to employees for services (723,887) (222,408) (946,295) Net cash used in operating activities (5,445,541) (1,173,579) (6,619,120)

CASH FLOWS FROM NONCAPITAL AND RELATED

FINANCING ACTIVITIES
Cash receipt from other funds 2,157,020 29,302 2,186,322 Cash receipt from operating grants and taxes 2,846,535 1,082,921 3,929,456 Net cash provided by noncapital and related financing activities 5,003,555 1,112,223 3,929,456

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Cash receipt from sale of assets 12,003 159 12,162
Cash receipt from capital grants 440,498 157,662 598,160 Cash paid for the acquisition/construction of capital assets - (439,273) (439,273) Net cash used in capital and related financing activities 452,501 (281,452) 171,049

CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received (11,751) (255) (12,006)
Net cash provided by investing activities (11,751) (255) (12,006) Change in cash and cash investments (1,236) (343,063) (344,299) Cash and investments, beginning of period 1,236 343,063 344,299 Cash and investments, end of period - - -
Reconciliation of Operating (Loss) to Cash Flows
from Operating Activities:

Operating (loss) $ (6,050,092) $ (1,262,641) $ (7,312,733) Adjustments to reconcile operating income to cash flows from Operating Activities:

Depreciation 867,409 122,721 990,130
Change in assets and liabilities:

Other Accrued Liabilities (1,357) - (1,357)
Accounts payable and accrued liabilities (274,831) (40,837) (315,668) Accrued compensated absences 13,330 7,178 20,508
Net cash used in operating activities $ (5,445,541) $ (1,173,579) $ (6,619,120) Enterprise Funds
See accompanying notes to financial statements
6 City Council/RSA Agenda 133 Tuesday, December 12, 2023 City of Union City
Transportation Development Act Program
Notes to Financial Statements
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The City of Union City (City) has developed and administers the Transportation Development Act (TDA) Programs to provide transit and paratransit services to area residents. These TDA programs are funded through grants received from the Metropolitan Transportation Commission (MTC) under Local Transportation Fund allocations. Additional funding is provided by contributions from State Transit Assistance allocations, the Alameda County Transportation Commission (ACTC) Measure B and Measure BB sales taxes, state and federal funds and ridership fares. The City contracts with a third-party operator to provide transit and paratransit services.

B. Fund Accounting
The operations of the TDA Programs are accounted for in two separate enterprise funds of the City: the Transit Fund and the Paratransit Fund. The funds are separate accounting entities with a set of selfbalancing accounts which comprise their assets, liabilities, fund equity, revenues and expenses.

C. Basis of Accounting
Basis of accounting refers to when revenues and expenses are recognized. The TDA Programs are presented in the accompanying financial statements in accordance with the requirements of the Public Utilities Code Section 99243 as follows:

Enterprise Fund – The enterprise fund is used to account for operations financed and operated similar to business activities such as services rendered to the general public on a fee basis.

The TDA Program’s operations are accounted for using the accrual basis of accounting under which revenues are recognized when earned and expenses are recognized when incurred. The TDA Programs are part of the City and are included in the enterprise funds of the City’s basic financial statements.

D. Cash and Cash Equivalents
The City pools its available cash (which includes the TDA Program’s cash) for investment purposes.

The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and shortterm investments with original maturity of three months or less from the date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments. 7 City Council/RSA Agenda 134 Tuesday, December 12, 2023 City of Union City
Transportation Development Act Program
Notes to Financial Statements, Continued
For the year ended June 30, 2022

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued E. Capital Assets
Capital assets include buildings and improvements and equipment and machinery. Depreciation is provided using the straight-line method over a fifteen-year life for buildings and improvements and over a three- to twelve- year life for equipment and machinery.

F. Compensated Absences
Compensated absences are comprised of earned but unused administrative leave, compensated time off in lieu of overtime pay and unused vacation hours which are payable to the employee upon separation of employment. The maximum hours of each compensated leave type that may be accrued is determined by bargaining unit agreements. The liability for compensated absences includes salaryrelated benefits, where applicable.

G. Use of Estimates
The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions.

2. CASH AND INVESTMENTS
TDA Program Funds are pooled with the City’s cash and investments in order to generate optimum interest income. The City pools its available cash for investment purposes. The City’s cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturity of three months or less from date of acquisition. Cash and cash equivalents are combined with investments and displayed as Cash and Investments.

Investment income is allocated quarterly to funds based on their proportionate share of average quarterly cash balances.

Amounts reported as unrealized gain/(loss) in market value of investments are made in accordance with Governmental Accounting Standards Board Statement 31 which states all investment income, including changes in the fair value of investments should be recognized as revenue in the operating statement.

The TDA Program Funds had the following cash and investments at June 30, 2022:

Cash and Investments $ 0
8 City Council/RSA Agenda 135 Tuesday, December 12, 2023 City of Union City
Transportation Development Act Program
Notes to Financial Statements, Continued
For the year ended June 30, 2022

2. CASH AND INVESTMENTS, Continued
A. Investments
Under the provisions of the City’s investment policy, and in accordance with California Government Code, the following investments are authorized:

In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, investments were stated as fair value using the aggregate method in all funds and component units. The City’s investments are carried at fair market value as required by generally accepted accounting principles. The City accounts for all changes in fair value that occurred during the year which are reflected in the fund balance for the fiscal year. These investment value changes are unrealized since the City’s policy is to buy and hold investments until maturity dates.

B. Risk Disclosures
Interest Risk – Interest rate risk is the fluctuation in fair value of investments due to changes in interest rates. The City’s exposure to losses caused by rising interest rates is minimized by limiting the average maturity of the City’s investments not to exceed five years.

Credit Risk – Credit risk is the risk of loss of value of an investment due to a downgrade of its rating or the failure of impairment of its issuer. It is the City’s policy to limit its investments in these investment types to the top rating issued by nationally recognized statistical rating organizations, including raters Standard & Poor’s and Moody’s Investor’s Service.

Minimum Maximum
Maximum Credit Percentage of
Authorized Investment Type Maturity Quality Portfolio
U.S. Agency and U.S. Government 5 years N/A No limit
State of California Obligations 5 years N/A No limit
CA Local Agency Obligations 5 years N/A No limit
Prefunded Municipal Obligations N/A AAA No limit
Banker Acceptances 365 days AAA No limit
Commercial Paper 270 days AAAm No limit
Negotiable Certificates of Deposit 365 days AAA No limit Repurchase Agreements 1 year AAA No limit
Money Market Mutual Funds N/A AAAm No limit
Collateralized Bank Deposits 5 years None No limit
Mortgage Pass-through Securities 5 years AA 20%
Time Deposits 365 days AAA No limit
Guaranteed Investment Contracts N/A AA No limit
California Local Agency Investment Fund N/A N/A No limit 9 City Council/RSA Agenda 136 Tuesday, December 12, 2023 City of Union City
Transportation Development Act Program
Notes to Financial Statements, Continued
For the year ended June 30, 2022

2. CASH AND INVESTMENTS, Continued
B. Risk Disclosures, Continued
Custodial Credit Risk – For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. None of the City’s investments were subject to custodial credit risk.

C. Local Agency Investment Fund
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The balance is available for withdrawal on demand. The City’s investments with LAIF at June 30, 2022, include a portion of the pool funds invested in Structured Notes and Asset-Backed Securities. These investments include the following:

Structured Notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as Collateralized Mortgage Obligations) or credit card receivables.

As of June 30, 2022, the City invested in LAIF, which had invested 1.88% of the pool investments in Structured Notes and Asset-Backed Securities as compared to 2.31% in the previous year. The City reports its investment in LAIF at the fair value amount provided by LAIF, which is the same as the value of the pool share. The fair value of LAIF was calculated by applying a factor of 0.98712 to the total investments held by LAIF.

3. TAXES AND INTERGOVERMENTAL RECEIVABLES
For the City’s enterprise fund, the TDA Program Fund’s taxes receivable of $387,379 as of June 30, 2022 represents sales tax due from the Alameda County Transportation Commission under Measure B and Measure BB. Total intergovernmental receivables of $4,246,128 represent amounts due to the City from the State of California, Metropolitan Transportation Commission, Federal Transit Administration, Bay Area Air Quality Management District, and other governmental agencies for various grants. 10 City Council/RSA Agenda 137 Tuesday, December 12, 2023 City of Union City
Transportation Development Act Program
Notes to Financial Statements, Continued
For the year ended June 30, 2022

4. METROPOLITAN TRANSPORTATION COMMISSION GRANT
Metropolitan Transportation Commission grant revenues are recognized as earned when the related costs have been incurred. During the fiscal year ended June 30, 2022, the City incurred eligible costs and earned reimbursements under the following Transportation Development Act and State Transit Assistance grants:

5. FARE-PLUS-LOCAL-MATCH RECOVERY RATIO
The TDA is defined in Chapter 4 of the California Public Utilities Code commencing with Section 99200. The TDA Program Fund are subject to TDA provisions requiring the calculation of and adherence to fare and local support ratios for TDA transit funding. Accordingly, the TDA Program Fund must maintain a minimum Fare-Plus-Local-Match Recovery Ratio of 20%. The Fund’s Fare-PlusLocal-Match Recovery Ratio of operating revenues to operating expenses for the years ended June 30, 2022 indicate the City is in compliance with the provisions of the TDA for the years ended June 30, 2022, as computed as below:

Transit Paratransit
Allocation Services Services Total
TDA Article 4.0 $ 3,363,660 $ 121,509 $ 3,485,169
TDA Article 4.5 - 167,020 167,020
STA Article 4.0 500,933 106,400 607,333
STA-State of Good Repair - 16,032 16,032
$ 3,864,593 $ 410,961 $ 4,275,554
2022
Operating revenues - fares $ 213,426
Local match - Measure B and Measure BB 1,704,711
(a) Net Operating revenues 1,918,137
Operating expenses 7,526,159
Depreciation expense (990,130)
(b) Net operating costs, net of depreciation $ 6,536,029 (c) Fare revenue ratio [(a) / (b)] 29%
11 City Council/RSA Agenda 138 Tuesday, December 12, 2023 City of Union City
Transportation Development Act Program
Notes to Financial Statements, Continued
For the year ended June 30, 2022

6. CAPITAL ASSETS
Changes in capital assets for the year ended June 30, 2022 were as follows:

7. REFUND DUE TO THE METROPOLITAN TRANSPORTATION COMMISSION The City refunds to the MTC over-allocations of TDA operating funds received; for this fiscal year that amount is $721,966. The refund owed is reflected as a liability on the accompanying statement of net position.

8. COMMITMENTS AND CONTINGENCIES
The City participates in several grant programs. These programs have been audited by the City’s independent accountants in accordance with the provisions of applicable State requirements. No cost disallowances were proposed as a result of these audits. However, these programs are still subject to further examination by the grantors and the amount, if any, of expenses which may be disallowed by the granting agencies cannot be determined at this time. The City expects such amounts, if any, to be immaterial.

Balance
July 1, 2021 Additions Retirements
Balance
June 30, 2022
Depreciable assets:

Buildings and improvements $ 3,862,710 $ - $ - $ 3,862,710 Equipment and machinery 11,685,162 439,273 (75,153) 12,049,282 Total depreciable assets 15,547,872 439,273 (75,153) 15,911,992 Less accumulated depreciation:

Buildings and improvements (2,022,856) (97,182) (2,120,038) Equipment and machinery (8,684,361) (892,948) 75,153 (9,502,156) Total accumulated depreciation (10,707,217) (990,130) 75,153 (11,622,194) Net depreciable assets 4,840,655 (550,857) - 4,289,798
Business-type activities
capital assets, net $ 4,840,655 $ (550,857) $ - $ 4,289,798 12 City Council/RSA Agenda 139 Tuesday, December 12, 2023

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of Union City
Union City, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Transportation Development Act (TDA) Funds of the City of Union City, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, and have issued our report thereon dated December 6, 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 13 City Council/RSA Agenda 140 Tuesday, December 12, 2023 To the Honorable Mayor and Members of the City Council
of the City of Union City
Union City, California
Page Two
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the TDA Funds’ financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Badawi and Associates, CPAs
Berkeley, California
December 6, 2023
14 City Council/RSA Agenda 141 Tuesday, December 12, 2023

REPORT ON COMPLIANCE AND ON INTERNAL CONTROL

OVER COMPLIANCE FOR TRANSPORTATION DEVELOPMENT ACT FUNDS Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of Union City
Union City, California
Report on Compliance
Opinions
We have audited the City of Union City’s (City) compliance with the types of compliance requirements described in Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the Metropolitan Transportation Commission applicable to the City’s Transportation Development Act Program (TDA Program) for the year ended June 30, 2022.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its TDA Program for the year ended June 30, 2022.

Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and Section 6666 and 6667 of the rules and regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act); and the allocation instructions and resolutions of the Metropolitan Transportation Commission. Our responsibilities under those standards and the Act are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the City’s TDA Program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.
15 City Council/RSA Agenda 142 Tuesday, December 12, 2023 To the Honorable Mayor and Members of City Council
of the City of Union City
Union City, California

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s TDA Program.

Auditors’ Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the Metropolitan Transportation Commission will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the TDA Program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the Metropolitan Transportation Commission, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
 Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the Metropolitan Transportation Commission, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control over compliance. Accordingly, no such opinion is expressed.
16 City Council/RSA Agenda 143 Tuesday, December 12, 2023 To the Honorable Mayor and Members of City Council
of the City of Union City
Union City, California

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the Metropolitan Transportation Commission on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the Metropolitan Transportation Commission will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the Metropolitan Transportation Commission that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined below. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 17 City Council/RSA Agenda 144 Tuesday, December 12, 2023 To the Honorable Mayor and Members of City Council
of the City of Union City
Union City, California

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act), and the allocation instructions and resolutions of the Metropolitan Transportation Commission. Accordingly, this report is not suitable for any other purpose.

Badawi and Associates, CPAs
Berkeley, California
December 6, 2023
18 City Council/RSA Agenda 145 Tuesday, December 12, 2023 Agenda Item
DATE: 12/12/2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: JOAN MALLOY, CITY MANAGER
SUBJECT: ADOPT A RESOLUTION APPOINTING SUBRU BHAT TO THE ALAMEDA

COUNTY MOSQUITO ABATEMENT DISTRICT BOARD OF TRUSTEES
FOR A TWO-YEAR TERM EXPIRING JANUARY1, 2026
Staff has prepared a resolution appointing Subru Bhat to the Alameda County Mosquito Abatement District Board of Trustees.

STRATEGIC PLAN ALIGNMENT
There is no alignment with the Strategic Plan.

BACKGROUND
The Alameda County Mosquito Abatement District ("District") is governed by a Board of Trustees ("Board") consisting of fourteen members. One trustee is appointed by the city council for thirteen of the incorporated cities within the District and the Board of Supervisors of Alameda County appoints one trustee representing the County-at-large. The City of Albany is not a part of the District. Each trustee serves a twoyear or a four-year term.

The Board determines the general policies to be followed, employs the District manager, approves the annual budget, and controls the expenditures. Each fiscal year, the Board determines the rates of the special tax and benefit assessment that will be levied upon property owners. Funds are held in a trust fund by the County Treasurer and paid out on warrants approved by the Board and authorized by the County Auditor.

DISCUSSION
On December 18, 2017 Mayor Carol Dutra-Vernaci, with concurrence from Council, selected Subru Bhat to be Union City's appointee to the Alameda County Mosquito Abatement District Board of Trustees for a twoCity Council/RSA Agenda 146 Tuesday, December 12, 2023 year term expiring January 1, 2020. The Mayor reappointed Mr. Bhat for a four-year term on December 10, 2019, to expire on January 1, 2024.

Mr. Bhat expressed interest in seeking reappointment. Should the Councilconcur with the Mayor's appointment, Mr. Bhat would be reappointed for two more years, serving for a total of eight years with the appointment expiring January 1, 2026. Section 2.20.050 of the Municipal Code states that commissioner shall not serve more than two full terms, which is commonly understood as a total of eight years.

FISCAL IMPACT
There is no impact to the General Fund.

RECOMMENDATION
For the Council's consideration, staff has prepared a resolution appointing Subru Bhat to the Alameda County Mosquito Abatement District Board of Trustees.

Prepared by:

Joan Malloy, City Manager
Submitted by:

Joan Malloy, City Manager
ATTACHMENTS:

Description Type
Resolution - Mosquito Abatement Board Resolution
City Council/RSA Agenda 147 Tuesday, December 12, 2023
RESOLUTION NO. XXXX-23

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY

APPOINTING SUBRU BHAT TO SERVE AS TRUSTEE ON THE

ALAMEDA COUNTY MOSQUITO ABATEMENT BOARD
WHEREAS, Alameda County Mosquito Abatement District (“District”) is governed by a Board of Trustees (“Board”) consisting of fourteen members, thirteen of whom are appointed by the city council for each of the incorporated cities within the District; and WHEREAS, the District is requesting that Trustee Subru Bhat be reappointed to the Board for a term of two (2) or four (4) years; and
WHEREAS, Mayor Dutra-Vernaci, with the concurrence of Council, has selected to reappoint Subru Bhat to serve as the Union City’s representative to the Board for two years; and NOW THEREFORE BE IT RESOLVED, that Subru Bhat is hereby reappointed to serve as a representative of the City of Union City on the Alameda County Mosquito Abatement Board of Trustees for a two-year term expiring January 1, 2026.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Union City at a regular meeting held on the 12th day of December 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
______________________________
Carol Dutra-Vernaci
Mayor
ATTEST:
____________________________
Jennifer Phan
Acting City Clerk
APPROVED AS TO FORM:
______________________________
Kristopher J. Kokotaylo
City Attorney
City Council/RSA Agenda 148 Tuesday, December 12, 2023
Agenda Item
DATE: 12/12/2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: JOAN MALLOY, CITY MANAGER
SUBJECT: CONSIDER AND PROVIDE DIRECTION REGARDING POTENTIAL NEW

COMMERCIAL CANNABIS APPLICATION PROCESS
Staff recommends that the City Council provide policy direction on the City’s Commercial Cannabis Program, and namely to authorize staff to develop administrative procedures to allow any applicants who have previously received an intent to award a retailcannabis permit to apply for a new permit in a new location within the City.

STRATEGIC PLAN ALIGNMENT
This report is in alignment with the following City Council Priority:

Goal A: Financial Stability and Sustainability
Strategy 5: Implement the City’s cannabis program to attain the anticipated new revenue with a commitment to adopting where necessary in light of evolving Statewide trends.

BACKGROUND
On November 14, 2017, the City Council adopted Chapter 5.44 of the Union City Municipal Code (“UCMC”) which established the regulatory framework for commercial cannabis operators within the City.

Concurrently, the City Counciladopted Resolution No. 5144-17, allowing for up to three commercialcannabis permits in each of the following categories:cultivation, manufacturing, distribution, testing, and retail.

Two retail businesses have opened and are currently in operation since the adoption of the Cannabis Ordinance: Jiva UC LLC located at 30545 and 30547 Union City Boulevard, Union City, CA 94587 and Flor East Bay LLC located at 3100 Courthouse Drive, Union City, CA 94587.

The City Council reopened the cannabis permit process on September 27, 2022, and subsequently, the City Council adopted Resolution No. 6166-23 on July 11, 2023 declaring its intent to award Embarc a cannabis retail permit to operate a dispensary located at 2625 and 2633 Decoto Road, Union City, CA 94587 subject to City Council/RSA Agenda 149 Tuesday, December 12, 2023
compliance with all necessary conditions (the “Resolution of Intent”).

DISCUSSION
Since July, staff has been working with Embarc to establish conditions of approval pursuant to the Resolution of Intent for City Councilconsideration for ultimate award of a retailcannabis permit.

Under the established procedures for this application cycle, applicants who receive a resolution of intent to award a permit have six months to secure a resolution awarding a cannabis permit. The Resolution of Intent will expire on January 10, 2024. Given the approaching deadline, Embarc formally requested a pause on the processing of their permit application to allow them time to evaluate their proposed location and to continue their engagement with the community.

In light of these various considerations and factors, staff is now seeking City Council direction and authorization to develop administrative procedures that would allow any applicants who have previously received an intent to award a retail cannabis permit to apply for a new permit at a new location within the City.

This framework would allow for an expedited process as it would only apply to applicants that have been vetted and deemed to be qualified operators. With that direction, staff would return to City Council at its next regularly scheduled meeting on January 9, 2024, seeking approval of administrative procedures that reflect this alternative process.

FISCAL IMPACT
There is no fiscal impact as a result of the City Council taking the recommended action.

RECOMMENDATION
Staff recommends that the City Council provide policy direction on the City’s Commercial Cannabis Program, and namely to authorize staff to develop administrative procedures to allow any applicants who have previously received an intent to award a retailcannabis permit to apply for a new permit in a new location within the City.

Prepared by:

Jennifer Phan, Deputy City Manager
Submitted by:

Jennifer Phan, Deputy City Manager
ATTACHMENTS:

Description Type
Item7.a Powerpoint Attachment
City Council/RSA Agenda 150 Tuesday, December 12, 2023
Item 7.a: Consider and Provide Direction
Regarding Potential New Commercial
Cannabis Application Process
December 12, 2023, City Council Meeting
City Council/RSA Agenda 151 Tuesday, December 12, 2023
2 Item 7.a: Cannabis Application Process
Background• November 2017 – Regulatory framework
for Cannabis established
• Two dispensaries operating – FLOR and Lemonnade• September 2022 - Reopened process for third permit• July 11, 2022 – Embarc received a Resolution of Intent • 2625 and 2633 Decoto Road
City Council/RSA Agenda 152 Tuesday, December 12, 2023
3 Item 7.a: Cannabis Application Process
Update on Process
• Staff working with Embarc to establish
conditions of approval
• January 10, 2024 deadline to obtain permit• Embarc requested a pause on application to evaluate location and continue community engagement
City Council/RSA Agenda 153 Tuesday, December 12, 2023
4 Item 7.a: Cannabis Application Process
Policy Direction• Develop administrative procedure to allow new permit • Received a Resolution of Intent to Award• Apply for a new location • Defined process
• Prequalified pool• Expedited process
• With Council approval, return January 9, 2024 with
alternative process
City Council/RSA Agenda 154 Tuesday, December 12, 2023
Agenda Item
DATE: 12/12/2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: MARILOU AYUPAN, PUBLIC WORKS DIRECTOR
SUBJECT: ADOPT A RESOLUTION AUTHORIZING THE CITY MANAGER TO

EXECUTE A MEMORANDUM OF UNDERSTANDING (MOU) WITH THE SAN

JOAQUIN REGIONAL RAIL COMMISSION (SJRRC) REGARDING THE

PROCESS, ROLES AND RESPONSIBILITES FOR THE UNION CITY
INTERMODAL STATION, PHASE 3/INTERCITY RAIL STATION PROJECT, CITY PROJECT NO. 23-14
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute a Memorandum of Understanding (MOU) with the San Joaquin Regional Rail Commission (SJRRC) regarding the process, roles and responsibilities for the Union City Intermodal Station, Phase 3/Intercity Rail Station Project.

The Phase 3/Intercity Rail Station Project provides for a passenger rail connection to the Union City BART station.

STRATEGIC PLAN ALIGNMENT
This agenda item is in alignment with the following:

Goal C, Strategy 2: Economic, Community Development and Public Safety – Facilitate the build out of the greater Station District Area through the construction of the Quarry Lakes Parkway, upgrades to the BART Station and completion of the Pedestrian Rail Crossing and the sale and development to of City-owned land.

BACKGROUND
The Metropolitan Transportation Commission (MTC) and San Joaquin Regional Rail Commission (SJRRA) in partnership with Alameda County Transportation Commission are currently leading the Southern Alameda County Integrated Rail Analysis (SoCo Rail) Study under a non-federal grant from the California State Transportation Agency (CalSTA). In 2019, MTC/SJRRC staff along with their Consultant Team engaged the Southern Alameda County cities of Newark, Fremont, and Union City to begin the evaluation of the passenger rail-to-rail hub in the East Bay.

City Council/RSA Agenda 155 Tuesday, December 12, 2023
At the July 27, 2021 City Council Meeting, MTC staff presented Phase 1 of the Southern Alameda County Integrated Rail Analysis (SoCo Rail) Study, identifying the study area for a future intercity rail station connecting BART, ACE (Altamont Commuter Express), Capitol Corridor and potential Dumbarton Rail service in Southern Alameda County with potential rail stations in Newark, Fremont, and Union City The completed Southern Alameda County Integrated Rail Analysis, Phase 1 Report, dated November 4, 2021, recommended the Union City BART Station as the only passenger rail-to-rail hub location for Mid-Term Horizon (approximately 10 years) in order to allow ACE passenger trains to serve the Bay Area, provide an ACE-to-BART and ACE-to-Dumbarton Express bus connection, and to ensure the highest level of connectivity to key travel markets throughout the entire Bay Area and to proceed to Phase 2.

At the May 10, 2022 City Council Meeting, MTC/SJRRC staff presented an update of the Phase 2 of the Southern Alameda County Integrated Rail Analysis (SoCo Rail) Study on the proposed Layover Facility and Intercity Passenger Rail Station design concept on the Oakland Subdivision railroad track next to Union City BART Station and discussed that the SoCo Rail design team will be coordinating with City staff on the connectivity to BART, the East Plaza and the adjacent Station District Area. MTC/SJRRC discussed that completion of the Phase 2 Study will include development of design concepts of the intercity passenger rail station, layover facilities, the passenger and transit connection to BART Station and project cost estimate.

At the same City Council meeting in May 2022, City staff presented the Union City Intermodal Station Update outlining the 20-year project history, the $160 million regional transportation investment and status of key Station District area infrastructure projects including completion of the Union City BART Intermodal Station, Phases 1 and 2 along with the design status of the BART Pedestrian At-Grade Crossing and the Quarry Lakes Parkway.

At the May 23, 2023 City Council Meeting, San Joaquin Regional Rail Commission (SJRRC) staff presented on the recommendation and conclusion of the SoCo Rail Study, Phase 2 Report that the Union City Intermodal Station, Phase 3/Intercity Rail Station is the preferred option for a passenger rail-to-rail East Bay Hub with direction connection to the Union City BART Station and that this option will be included in the draft 2023 State Rail Plan.

The Final SoCo Rail Study dated July 20, 2023 has identified: 1) the project purpose and benefits; 2) proposed operating plan; 3) proposed infrastructure improvements such as passenger rail station design concepts, layover facilities, passenger connections (ACE to BART and transit); and 4) initial cost estimates for project scoping required for proceeding into the environmental phase.

At the same meeting, the City Council also approved Resolution No. 6136-23 authorizing the commitment of $3.0 million from the 2014 Measure BB Transportation Expenditure Plan (TEP) for the Union City Intermodal Station Project to the San Joaquin Regional Rail Commission for the Environmental Clearance/Preliminary Engineering for the Union City Intermodal Station, Phase 3/Intercity Rail Station Project and submitted the certified resolution to Alameda CTC to initiate the funding process.

DISCUSSION
On August 4, 2023, Mayor Dutra-Vernaci was invited to a SJRRC Commission meeting in Stockton and presented an overview of Union City’s Station District and Intermodal Station/East Bay Hub to Board of Directors (elected officials from the cities of Ripon, Tracy, Lodi, Manteca, Stockton and County of San Joaquin with special voting members from the cities of Dublin and Fremont) and discussed the City’s commitment of $3.0 million of Alameda CTC TEP funds to the Union City Intermodal Station, Phase 3/Intercity Rail Station Project.

The Board was impressed to learn about years of investment, planning, design, and construction in modifying the Union City BART Station and preparing the Station District area for a new passenger rail station with seamless connection to BART, transit, multimodalcorridor, and future development.

City Council/RSA Agenda 156 Tuesday, December 12, 2023
The proposed Intercity Rail Station will be located on the Oakland Subdivision railroad track, next to the Union City BART Station. The accommodation of a passenger rail connection to BART has been the long-term vision of the build-out of the Union City Intermodal Station Project and will provide new daily rail service for the Station District area, see Attachment 1. The 2014 Measure BB TEP for the Union City Intermodal Station describes the potential passenger rail service connecting to BART includes Capitol Corridor, ACE, and Dumbarton Corridor service.

The proposed Intercity Rail Station, the three (3) parallel track layover facilities, pedestrian connections, parking area and passenger pickup area are located on the east side of the Union City BART Station within Union Pacific Railroad property (Oakland Subdivision) and the City’s undeveloped parcels between the East Plaza and proposed Quarry Lakes Parkway. A portion of the proposed layover facilities impacts about a third of the existing Restoration Site, also known as the Waste Containment Area (WCA), requiring removal of the existing slag, and reconstructing the WCA. The Consultant team has met with Union Pacific Railroad and Department of Toxic Waste and Substance (DTSC) on the proposed improvements. DTSC is the State agency that oversaw the cleanup of the Pacific States Steel Corporation property where the WCA is located, and now oversees the ongoing monitoring of the site, which is owned by the City. Also, the SoCo Rail project allows the City to reconsider other infrastructure or development opportunities for the remainder of the City-owned WCA that is not needed for the passenger rail project. This undeveloped WCA parcel faces 11 th Street in the Station District area.

See Attachment 2.

Quarry Lakes Parkway, Phase 4 includes the construction of grade separation structures for trains and BART.

Infrequent, weekly freight service currently operates on the Oakland Subdivision railroad track. As part of the Union Pacific Railroad permit, flag men will be required for the duration of the construction of the roadway in this area. Both the railroad grade separation structure and rail station projects are constructed next to the BART operating track and station and will require close coordination with BART in developing a construction strategy plan to minimize impacts to BART service.

On October 24, 2023, SJRRC and Union City met with Alameda CTC to provide an overview of the SoCo Rail Project. Staff from SJRRC and Union City explained the overlap of construction improvements along the Oakland Subdivision railroad trackway next to BART and the proposed grade separation structures needed for Quarry Lakes Parkway, Phase 4 (BART and Oakland Subdivision Grade Separations). Staff articulated the importance of coordinating the rail station, grade separations, and roadway projects to avoid overlap in construction activities and to minimize throw-away costs. Also, there is an opportunity to combine construction activities for cost savings. SJRRC and Union City also discussed each of our agencies’ project roles and responsibilities and provided a draft SJRRC-Union City draft Memorandum of Understanding (MOU) to Alameda CTC after the meeting.

A key discussion in the MOU for the Union City Intermodal Station, Phase 3/Intercity Rail Station includes that the environmental clearance will include an analysis of both the partial and complete removal of the 16-acre WCA, which is composed of 440,000 cubic yards of slag and other materials stockpiled after the remediation of the former Pacific States Steel Corporation site located within the Station District area. The opportunity to remove and dispose of the slag in the WCA may be part of the Intercity Rail project, depending on the environmental analysis and the cost for complete cleanup and removal. Removal of the slag and other materials would create development opportunities along 11th Street in the Station District.

On December 1, 2023 SJRRC Commission Meeting unanimously approved Resolution No. 23/24-23 approving the Memorandum of Understanding (MOU) with the City of Union City regarding the process, roles and responsibilities for the Union City Intermodal Station, Phase 3/Intercity Rail Station Project and authorizing the Executive Director to execute any and all documents related to the project.

On Saturday, December 2, 2023, Union City held the Station District Open House at Studio 11, 34626 11th Street, to inform the community about Station District Specific Plan and the required infrastructure for buildout including Quarry Lakes Parkway and BART Pedestrian At-Grade Crossing. There was also project information about the City Council/RSA Agenda 157 Tuesday, December 12, 2023
Intermodal Station, Phase 3/Intercity Rail Station Project with SJRRC staff in attendance to respond to questions and share information. A current project fact sheet was also available, see Attachment 3.

The MOU is a non-binding, voluntary initiative, and it does not create any legally binding rights, limitations, or obligations upon Union City or SJRRC. This MOU does not purport to include all provisions relative to the structure or terms of the proposed transaction or definitive documents. Rather, both parties agree to memorialize binding commitments in future agreements as they are negotiated.

FISCAL IMPACT
There is no direct fiscal impact on the General Fund.

Indirectly, there would be staff costs as a participating agency and a project partner in the environmental review process, though SJRRC would lead the effort. Union City would also partner with SJRRC to seek funding.

RECOMMENDATION
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute the Memorandum of Understanding (MOU) with the San Joaquin Regional Rail Commission (SJRRC) regarding the process, roles and responsibilities for the Union City Intermodal Station, Phase 3/Intercity Rail Station Project, City Project No. 23-14.

With the City Council’s adoption of the resolution, the next step would be to submit the executed MOU to Alameda County Transportation Commission, the agency that oversees the disbursement of the $3.0 million for the Union City Intermodal Station Project from the 2014 Measure BB Transportation Expenditure Plan for future Commission action in early 2024.

Prepared by:

Marilou Ayupan, Public Works Director
Submitted by:

Marilou Ayupan, Public Works Director
ATTACHMENTS:

Description Type
Attachment 1 - Station Buildout & Rail Station Attachment Attachment 2 - Intermodal Station Layout Attachment
Attachment 3 - SJRRCIntermodal Ph 3 Fact Sheet Attachment Resolution Resolution
Exhibit A - 2021 MTCSoCoRail PHase 1 CCPresentation Exhibit Exhibit B- 2022 MTCSoCoRail Phase 1 CCPresentation Exhibit Exhibit C- 2022 Intermodal Station Update Exhibit
Exhibit D- 2023 SJRRCSoCoRail Phase 2 CCPresentation Exhibit Exhibit E- 2023 Station District-Intermodal Station SJRRCPresentation Exhibit Exhibit F - 2023 SJRRCReso 23/24-23 Exhibit
Exhibit G- MOU, Union City and SJRRC, Intermodal Station Phase 3 Exhibit City Council/RSA Agenda 158 Tuesday, December 12, 2023
City Council/RSA Agenda 159 Tuesday, December 12, 2023
City Council/RSA Agenda 160 Tuesday, December 12, 2023
City Council/RSA Agenda 161 Tuesday, December 12, 2023
Project Overview
 What is the Union City Intermodal Station Phase 3 Project? Phase 3 is the next phase in the transformation of Union City Intermodal Station into a rail-to-rail hub by extending Altamont Corridor Express (ACE) to the station, including construction of a new intercity passenger rail platform. New ACE service will provide intercity connections with Stockton, Sacramento, Chico, Modesto, and Merced (where passengers will have timed transfers with high-speed rail [HSR] trains for Fresno, Bakersfield, and Southern California). At Union City, passengers will have access to BART, Dumbarton Express buses for service to the Peninsula, and AC Transit and Union City Transit local buses.  What has been completed to date?
As part of the Southern Alameda County Integrated
Rail Analysis (SoCo Rail) Study, the Union City
Intermodal Station was selected as the preferred
location for an intercity rail hub in November 2021.

The second part of the SoCo Rail Study, including
detailed planning and conceptual design of the ACE
extension, the new platform, and supporting
facilities, was completed in June 2023. This part
included ridership forecasting, a funding and
implementation strategy, and other tasks.
 Who is the lead agency?
The Metropolitan Transportation Commission (MTC)
led initial planning for the project, with the San
Joaquin Regional Rail Commission (SJRRC) and City
of Union City as key partners. SJRRC, as owner and
operator of ACE, will lead the environmental review
process.

Project History and Benefits
Union City Intermodal Station Phase 3 Project
Union City Intermodal Station
Extension
as part of Phase 3
Expands rail access and connectivity at a megaregional
scale by linking ACE directly with BART, providing
attractive transit options between the Bay Area and the Central Valley
Secures a critical rail-to-rail link between the Bay Area and the HSR Early Operating Segment, maximizing the
benefits of California’s transformational investment in a fast intercity rail network
Establishes a rail-to-rail hub in Southern Alameda
County as envisioned in the State Rail Plan, building on over 20 years of ongoing transit-focused investment at
the Union City Intermodal Station
Furthers progress on California’s climate and housing
goals by supporting transit-oriented development in
the Union City Station District and shifting away from
reliance on fossil fuels
Improves equity by providing daily service (including
weekends and holidays) for transit-dependent riders,
using zero-emissions trains that reduce greenhouse gas
emissions, improve air quality, and take cars off roads  Phase 1 reconfigured the parking lot on the west side of the station to create an enhanced bus terminal and
improve multimodal access.
 Phase 2 expanded the east side of the station with a
new headhouse and vertical circulation to better
integrate the station with surrounding transit-oriented development.
 Phase 3 will link ACE directly with BART and create a true intermodal hub linking local and regional rail and bus services into the larger statewide intercity rail
network.

To Peninsula
City Council/RSA Agenda 162 Tuesday, December 12, 2023
Initial Service
 By approx. 2030
3 roundtrips daily
Preliminary forecasts
Annual ridership:

1.86 million
Annual equivalent
vehicle-miles traveled
(VMT):

88.08 million
 Long-term
Hourly bi-directional
service
Project Schedule
 Preliminary engineering &
environmental clearance
2023–2025
 Final design &
right-of-way acquisition
2026–2027
 Construction
2028–2030
 Start of service
2030 (approximate)
Project Cost
 $220 million*
Order-of-magnitude estimate
in 2023 dollars
*Right-of-way and easement acquisition
costs are currently unknown but will be
considered as part of the local match by
Union City.

Related Projects
 Valley Rail Program
Expanded passenger rail service throughout the Central Valley and connecting with the HSR Early Operating Segment, including extensions to Merced, Sacramento (Natomas), and Chico
 Valley Link
Complementary, frequent, all-day, bi-directional Altamont Corridor rail service linking Dublin/Pleasanton BART Station with Livermore and Mountain House, and then extending to Tracy and North Lathrop  Union City Station District Specific Plan
A specific plan to provide up to 1,700 transit-accessible housing units and 1.2 million square feet of transit-accessible office space on 470 acres around Union City Intermodal Station
 Quarry Lakes Parkway
This new arterial roadway will provide better multimodal access for the east side of Union City Intermodal Station and improve traffic conditions along Decoto Road, potentially benefitting bus service For more information
To view SoCo Rail Study documents, visit the project website at:
 https://mtc.ca.gov/planning/transportation/regional-transportationstudies/southern-alameda-county-integrated-rail-analysis-soco-rail-study Contact
Kara Vuicich, AICP
Principal Planner/Analyst
Metropolitan Transportation Commission
[email protected]
(415) 820-7928
Dan Leavitt
Manager of Regional Planning Initiatives
San Joaquin Regional Rail Commission
[email protected]
(209) 944-6266
# Service north of Natomas
is being planned
separately as part of the
North Valley Rail project
City Council/RSA Agenda 163 Tuesday, December 12, 2023