City Council Staff Report Page 1 of 4 June 9, 2026
Staff Report
Agenda Item No. 4.6
DATE: June 9, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Amending the Five-Year Capital Improvement Plan, Approving a Budget Transfer, in the Amount of $311,000, from the General Liability Self-Insurance Fund to the General Fund, and Reallocating Two Appropriations in the General Fund: 1) in the Amount of $186,000, to the Hazard Mitigation Grant Program Ruggieri Senior Center Generator, City Project No. 18-17; and, 2) in the Amount of $125,000, to the Library Roof Modernization, City Project No. 26-21
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution amending the Five-Year Capital Improvement Plan (CIP) for FY 2025–26 through FY 2029–30, approving a $311,000 budget transfer from the General Liability Self-Insurance Fund to the General Fund, and authorizing General Fund reallocations of appropriations to address funding shortfalls affecting two priority capital projects:
$186,000 – Hazard Mitigation Grant Program (HMGP) Ruggieri Senior Center Generator (Project 18-17)
$125,000 – Library Roof Modernization (Project 26-21)
Both projects are necessary to maintain critical emergency operations capacity and preserve essential public infrastructure.
STRATEGIC PLAN ALIGNMENT
This agenda item is aligned with the following:
Goal D, Strategy 2: Environmental Sustainability and Infrastructure – Implement the City’s capital improvement plan.
BACKGROUND
On June 24, 2025, the City Council adopted the Five-Year CIP for FY 2025–26 through FY 2029–30 (Resolution No. 2025-086). The plan relied on projected development impact Agenda Item No. 4.6
City Council Staff Report Page 2 of 4 June 9, 2026
fee revenues based on anticipated construction activity; however, due to unforeseen adverse economic disruptions and uncertainties, construction activity has been delayed, thereby delaying the associated development impact fees.
This revenue shortfall has created a funding gap in the Capital Facilities Improvement Development Impact Fee (DIF) Fund (Fund 411), which supports several projects scheduled for FY 2026-27. Two priority projects, the HMGP Ruggieri Senior Center Generator (Project 18-17) and the Library Roof Modernization (Project 26-21), cannot proceed without supplemental funding.
DISCUSSION
HMGP Ruggieri Senior Center Generator (City Project No. 18-17) The Union City/Newark Multi-Jurisdiction Hazard Mitigation Plan identifies the Ruggieri Senior Center as a critical facility and the City’s Emergency Operations Center (EOC).
The existing gas-powered generator is insufficient for emergency operations; it cannot power the entire facility and risks becoming inoperable if the gas supply is shut down during emergencies.
Project History and Status
Construction contract awarded January 28, 2025 (Resolution No. 2025-016) Contractor: James Day Construction, Inc., dba Coastal Mountain Electric Construction began April 27, 2026
Completion is expected by the end of June 2026
Project Budget
Project Cost: $651,000
$279,000 FEMA’s HMGP (Fund 410)
$186,000 Capital Facilities Improvement DIF Fund (Fund 411) $186,000 General Fund (Fund 110) via transfer from General Liability SelfInsurance Fund (Fund 614) The original Five-Year Capital Improvement Plan includes funding in the amount of $372,000 from the Capital Facilities Improvement DIF Fund (Fund 411), but since there is only sufficient balance to fund half that amount, staff recommends funding the remaining $186,000 using funds in the General Fund (Fund 110).
Library Roof Modernization (City Project No. 26-21)
On April 12, 2022, the City Council adopted Resolution No. 5922-22, authorizing the use of budget surplus funds for emergency repairs to the Union City Library. These repairs addressed water damage to the roof and interior but were explicitly understood to be temporary, extending the roof’s life for only a few more serviceable years. More than three years later, the roof has reached the end of its useful life. The Library Roof Modernization, City Project No. 26-21 (not previously listed in the Five-Year CIP), is deemed necessary to complete before the rainy season.
Project Budget
Project Cost: $250,000
Agenda Item No. 4.6
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$125,000 Capital Facilities Improvement DIF Fund (Fund 411) $125,000 General Fund (Fund 110) via transfer from General Liability SelfInsurance Fund (Fund 614) As with the HMGP Ruggieri Senior Center Generator, there is only sufficient budget in the Capital Facilities Improvement DIF Fund (Fund 411) to cover half of the project cost, and staff recommends funding the remaining $125,000 from the General Fund (Fund 110).
Budget Transfer from General Liability Self-Insurance Fund (Fund 614) to General Fund (Fund 110)
Staff recommends that $311,000 be transferred from the General Liability Self-Insurance Fund to the General Fund and be reallocated for appropriation to the following accounts:
$186,000 towards HMGP Ruggieri Senior Center Generator (Account Number 110-91817-57125)
$125,000 towards Library Roof Modernization (Account Number 110-92621- 57125)
In September 2025, City staff asked the Bay Cities Joint Power Insurance Agency (BCJPIA) to return $650,000 in dividends that were held in BCJPIA’s Union City Contingency Account. Staff determined that the City did not need such a large amount in our Contingency Account at BCJPIA and that the City would be better off using the funds.
On January 13, 2026, the City Council authorized the transfer and appropriation of $50,000 for the City Hall Mobile Generator Tap Box Project (Resolution No. 2026-004).
Staff requests similar transfers, reallocations, and appropriations for these capital projects.
FISCAL IMPACT
With the shortfall in anticipated development impact fees, staff recommends using $311,000 from an alternative funding source to complete two priority capital projects. Staff recommends using available General Liability Self-Insurance (Fund 614) funds to transfer the $311,000 to the General Fund (Fund 110) and reallocate the appropriation of these funds to the two capital projects in need of budget for their completion.
RECOMMENDATION
Staff recommends that the City Council adopt a resolution:
1. Approving a budget transfer, in the amount of $311,000, from the General Liability Self-Insurance Fund (Fund 614) to the General Fund (Fund 110), and
2. Authorizing a reallocation of appropriation from the General Fund, in the amount of $186,000, to the HMGP Ruggieri Senior Center Generator, City Project No. 18- 17 (Account Number 110-91817-57125), and
3. Authorizing a reallocation of appropriation in the General Fund, in the amount of $125,000, to the Library Roof Modernization, City Project No. 26-21 (Account Number 110-92621-57125); and
Agenda Item No. 4.6
City Council Staff Report Page 4 of 4 June 9, 2026
4. Amending the Five-Year Capital Improvement Plan for Fiscal Years 2025-2026 to 2029-2030, by rebalancing the General Fund to reflect the budget transfer Prepared by: Jose Gutierrez, Supervising Construction Inspector Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Draft Resolution