City Council Staff Report Page 1 of 3 October 13, 2026
CITY COUNCIL
STAFF REPORT
Agenda Item No. 3.4
DATE: October 13, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Accepting a $71,200 Grant from Fremont Bank and Appropriate the Funds to the Larry Orozco Teen Workshop Improvements Project #25-68
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution accepting a $71,200 grant from Fremont Bank and appropriate the funds to the Larry Orozco Teen Workshop Improvements Project #25-68. Fremont Bank approved the grant on September 17, 2026, to support an important phase of the planned improvements.
Resolution No. 4336-12 establishes the City’s policy governing the accounting and administration of donated funds. Under this policy, staff is authorized to accept donations of up to $5,000 without prior City Council action, with subsequent notification provided to the Council. Because the $71,200 grant exceeds the authorized threshold, formal City Council approval is required to accept the grant.
STRATEGIC PLAN ALIGNMENT
Goal D: Environmental Sustainability and Infrastructure – Create a sustainable community and maintain infrastructure.
The Larry Orozco Teen Workshop was identified during the City Council Strategic Plan retreat on August 23, 2025, as part of Goal D: Environmental Sustainability and Infrastructure.
BACKGROUND
The Larry Orozco Teen Workshop, located at 33623 Mission Boulevard, has served the Union City community for several decades. The site was formerly the Mohawk Fireball Gas Station, built in the 1930s. The gas station was later decommissioned, and the gas pumps and underground storage tanks were removed.
Agenda Item No. 3.4
City Council Staff Report Page 2 of 3 October 13, 2026
In approximately 1981, the City purchased the property and later established the Youth Employment Program at the site, which was placed under the Leisure Services Department, now known as the Community and Recreation Services Department. Since that time, the site has been continuously used by the City and the community for over 45 years.
On February 24, 2026, the City Council received a report regarding the structural condition, hazardous materials findings, and cost estimate for required remediation and repairs of the Larry Orozco Teen Workshop. The Property Condition Assessment Report rated the building as in “poor to fair” condition and identified several needed improvements, including lead and asbestos abatement, roof and window repairs and replacements, ADA improvements, mechanical, electrical, and plumbing system upgrades, and other related repairs.
The City Council also received a preliminary cost estimate for comprehensive renovation and abatement totaling $684,717. On March 24, 2026, the City Council formed the Larry Orozco Teen Workshop Ad Hoc Subcommittee to support development of a phased funding and implementation plan for the facility.
DISCUSSION
On September 17, 2026, Fremont Bank notified the City that it had approved a $71,200 grant for improvements to the Larry Orozco Teen Workshop. The award will support an important phase of the project and cover renovation-related costs.
Resolution No. 4336-12 established the City's policy governing the accounting for donated funds. Under that policy, donations up to $5,000 may be accepted without City Council action, with subsequent notification to the City Council. Amounts exceeding that threshold require City Council acceptance. Because the Fremont Bank grant is $71,200, City Council action is required to formally accept the grant.
The Larry Orozco Teen Workshop requires a phased funding approach due to the extent of the required improvements and the limited funding identified for the project. The Fremont Bank grant provides a significant new funding source for project-related expenses, but it does not cover the full renovation and abatement estimate of $684,717.
FISCAL IMPACT
City Council action is necessary to accept the $71,200 grant, which will be deposited into Account No. 11200000-24129 [Trust & Deposit Fund, Larry Orozco Teen Workshop Donations].
The grant funds, along with other donations, will be held in the deposit account until project work begins. Once the Teen Workshop Capital Improvement Program project is ready to begin, the grant funds will be recorded as actual revenues and expenses in the appropriate accounts.
Acceptance of this grant will not impact the General Fund. The funds will be restricted for improvements to the Larry Orozco Teen Workshop.
Agenda Item No. 3.4
City Council Staff Report Page 3 of 3 October 13, 2026
RECOMMENDATION
Staff recommends that the City Council adopt a resolution accepting a $71,200 grant from Fremont Bank and appropriate the funds to the Larry Orozco Teen Workshop Improvements Project #25-68.
Prepared by: Thai Nam Pham, City Clerk
Submitted by: Thai Nam Pham, City Clerk
ATTACHMENTS
1. Draft Resolution