Staff recommends that City Council accept this informational report on the progress and accomplishments on the Strategic Plan (see Attachment 1) and City Council priorities made from August 2021 and July 2022.

This report is in alignment with Goal E, Strategy 3, of the Strategic Plan.

 GOAL E: Communication and Outreach

Strategy.3: Create and implement a plan for conveying progress and outcomes from the City’s Strategic Plan to employees and the community at large.

The five-year (FY2019-20 through FY 2024-25) Strategic Plan was adopted in 2019 as a tool to establish the priorities set by the City Council and ensure accountability in implementing the strategies. Approximately a year ago, on August 5, 2021, City Council and department directors held a Strategic Plan workshop retreat to review the midpoint accomplishments of the five-year plan and establish new strategies for the coming FY of 2021-22 and 2022-23. The Strategic Plan Midpoint Updates were adopted in October 12, 2021.

At the August 2021 retreat, the Council restated its commitments to the Goals and added the following strategies:

GOAL  A: Financial Stability and Sustainability

1.  Study and prepare for placement of a revenue measure for the November 2022 election that addresses the expiration of the half-cent sales tax; or prepare for $6 million in service cuts.
2.  Determine the feasibility of a revenue ballot measure for November 2024 and/or November 2026 that could consider a new landscape and lighting district (indexed to CPI) and/or a tax to fund a new City Hall/library.
3.  Study the benefits and opportunity to update the City’s business license tax for voter consideration.

GOAL B: Governance and Organization Effectiveness

  While no new strategies were added under this goal, the Council restated their commitment to staff recruitment, retention, and succession planning.

GOAL C: Economic, Community Development and Public Safety       

1. Facilitate the development of entitlements and closing on the sale of the Gateway property to generate revenue to fund the construction of Phases 3 and 4 of the Quarry Lakes Parkway.
2. Continue providing support to City residents and businesses related to COVID-19 recovery.
3. Increase fines for illegal fireworks, develop and implement a public communication campaign about fireworks, consider banning the sale and deployment of all fireworks if the threat to community safety is not significantly reduced during the 4th of July season.

GOAL D: Environmental Sustainability and Infrastructure

1.  Prepare RFP for Franchise Agreements for solid waste and recycling collections with emphasis on selecting vendors with resources to implement organics legislation
2.  Enable a robust cyber security and information technology disaster recovery service.

GOAL E: Communication and Outreach

1.  Develop and implement a diversity, equity and inclusion approach to citywide communications and outreach.
2.  Collaborate with the Arts and Culture Commission and Bay Area Rapid Transit (BART) to place murals on the Kennedy Park BART pillars.

As the City recovers from COVID-19, staff continues to make progress in implementing and completing the strategies. This report documents the progress and outcomes of the strategies since the August 2021 workshop retreat and midpoint update of the Strategic Plan.

GOAL A: FINANCIAL STABILITY AND SUSTAINABILITY

Foster fiscal health through disciplined long-term planning, cost control, heightened efficiency, increased revenue, and cost recovery.

A.5: Implement the City cannabis program to attain anticipated new revenue with a commitment to adapting where necessary in light of evolving Statewide trends

• FLOR East Bay, LLC received a retail permit February 23, 2021. FLOR opened for business in late June 2021. Their expected cannabis business tax revenue was projected to be $279,000 in FY 2021-22. As of March 31, 2022, the City had collected $310,573 in cannabis tax revenues, exceeding the initial projections.
• Jiva Life, LLC had a grand opening for a retail location at 30545 and 30547 Union City Boulevard on May 25, 2022. The City anticipates a cannabis business tax revenue of $258,000 in FY 2022-23; $277,000 in FY 2023-24; $298,000 in FY 2024-25; and, $320,000 in FY 2025-26.
• To date, Union City has received $175,768.80 in cannabis community benefits payments. These funds support a variety of services and community needs, including marijuana drug recognition training for police officers, support for Youth and Family Services and the City’s CAREvan program, CRS scholarships, and other high-priority community programs.

A.6: Conduct routine evaluations of city fees and update as needed.

Based on strategies recommended by the Fiscal Stability Committee on August 2020, the Community & Recreation Services Department presented recommendations for increasing CRS fees to City Council in March 2021. City Council approved the fee increases, which is projected to increase CRS revenues to reduce City subsidies of classes, court maintenance, facility use, and field rentals. These adjustments included:

• Increased sports field rental rates.
• Increased reserved tennis court rates.
• Increased Mark Green Sports Center membership fees.
• A five (5) percent increase for all fee-based classes.

In addition, City staff have retained a consultant to perform a comprehensive update of our Development Impact Fees. The fee updates are expected to be completed by spring 2023 and will include a review of the Public Works Department’s Plan Check fees. Last, the FY 2022-23 Master Fee Schedule was adopted by City Council on May 24, 2022.

A7: Study and prepare for placement of a revenue measure for the November 2022 election that addresses the expiration of the half-cent sales tax; or prepare for $6 million in service cuts.

• In January 2022, a City Council Ad Hoc Subcommittee, consisting of Councilmembers Singh and Duncan, was formed to consider the placement of the one-half cent sales tax on the November 2022 ballot. The Subcommittee also considered a possible update to the City’s business license tax, which would also require voter approval. The Subcommittee recommended that the Council consider placing the extension of the one-half cent sales tax on the ballot and further study the business license tax for consideration by the voters in November 2024.
• A survey was conducted regarding the residents’ perspective on the half-cent sales tax and City services. Other outreach methods included social media, web content, flyers, FAQs, and informational mailers sent to every household.
• On July 12, 2022, City Council voted unanimously to place the measure on the November 2022 ballot for voter consideration.

A9: Study the benefits and opportunity to update the City’s business license tax for voter consideration.

• On February 3, 2022, staff presented to the Council Ad Hoc Subcommittee to consider the placement of revenue measures (i.e., business license tax increase and/or the one-half cent sales tax extension) on the 2022 ballot.
• On February 17, 2022, the Ad Hoc Subcommittee recommended deferring the consideration of the business license tax to 2024 to provide time to refine the analysis and understand the impact that raising the tax may have on Union City businesses.
• On February 22, 2022, City Council accepted Ad Hoc Subcommittee recommendations. Finance is continuing to gather data from our local businesses to better assess the impact a business license tax increase may have.

GOAL B: GOVERNANCE AND ORGANZATIONAL EFFECTIVENESS

Produce high-quality services to the community through a commitment to local government best practices and employee development, support, and retention

B.1: Align the provision of critical city services and Strategic Plan implementation with current staffing levels.

Human Resources Director, Lilybell Nakamura, gave a report to City Council on July 26, 2022 detailing the operational plan for the Human Resources Department and the accomplishments in improving the onboarding process for new employees. The new onboarding process includes an in-person orientation where the employee will have an opportunity for an onsite tour of city hall, introduction to staff,  a PowerPoint presentation about the City’s mission and values, an overview of the  organizational structure, operations, employee resources, policies, and training. 

GOAL C: ECONOMIC, COMMUNITY DEVELOPMENT AND PUBLIC SAFETY

Institute forward-thinking business, land use development, housing, social services, and public safety strategies that promote community growth and innovation.

C.1: Analyze the feasibility of transforming warehouses to attract high-value industrial and commercial uses for the benefit of the community.

• Staff presented to EDAT in 2020 the feasibility of transforming warehouses and provided several options to explore. EDAT members supported updating the Zoning Ordinance to include standards for flex-industrial buildings and preparation of a study to analyze increasing the business tax on warehouse uses.
• Staff hired HdL to prepare the analysis. Based on feedback from HdL, the scope of the analysis was expanded to review all the City's business license tax fees.
• The draft study entitled "HdL Business Tax Analysis" was presented to EDAT in September 2021, which provided several methodologies for increasing the business license tax. EDAT members provided feedback on a preferred methodology.
• In October 2021, staff provided an overview of the warehouse transformation options presented to EDAT, the draft HdL study, and EDAT’s recommendations to the City Council. The Council concurred with updating the Zoning Ordinance and evaluating the business license tax structure for consideration of putting it on the ballot. Staff noted the need for additional time to further refine the business license tax methodology and to outreach to businesses.

C3: Develop a multi-departmental approach to address homelessness through coordination with staff, community organizations and Alameda County.

• The City applied for and received a Permanent Homeless Local Housing (PHLA) grant that provides funding for homelessness programs staffing (one full-time Coordinator/Case Manager and one part-time Outreach Worker).
• The City hired a Homelessness Programs Coordinator/Case Manager, who will be the City’s central point of contact for homeless matters and will establish a City inter-departmental team that will meet regularly to address the circumstances of homeless individuals and encampments within City boundaries.
• A recruitment plan is being prepared to hire a part-time Homeless Outreach Worker in the fall of 2022.

C.4: Work with the Union Landing Property Owner’s Association to ensure Union Landing remains a destination for shoppers through property improvements, on-going property maintenance, and a continued focus on public safety.

• Economic Development staff provide direct support to the administrative function of the Union Landing Property Owners Association (ULPOA), which includes administration of the Union Landing Property Business Improvement District (PBID) funds and budget; tax filings; records retention; nonprofit filings; and budget reports. As a result of these efforts, an active, engaged ULPOA Board of Directors work to ensure the center’s viability and continued collaboration with the City and the Police Department.
• Economic Development and Public Works staff worked with the ULPOA to complete Phase I of the gateway walls rebranding along Dyer Street. This work required removal of dead and dying landscaping, repair and repainting of the walls and the installation of new wall signage on each of the City-owned walls and the privately-owned wall.
• Phase II of the rebranding is underway and includes re-landscaping both the City and privately-owned gateway wall landscape areas. This project will be largely overseen by Public Works staff.
• The ULPOA and City Council approved the FY 2022-23 Annual Report with a budget that included funding for three dedicated police officers; web page and social media promotions; banner maintenance; funds for gateway wall landscaping, and a contingency fund to support ongoing improvement efforts.
• With the support of City staff, the ULPOA funded holiday festivities in 2001 to support enhanced holiday sales post pandemic.

C.5: Promote housing development for all income levels in the community by updating the zoning ordinance to include objective standards for new multi-family residential development in order to streamline the review of applications for housing developments, and update the Housing Element, to facilitate the development of affordable housing.

• The draft Housing Element was prepared over the past year and was informed by extensive outreach efforts (i.e., community meetings, community survey in multiple languages, stakeholder interviews, and pop-up event at Farmers Market). The Housing Element was released for 30-day public review in June/July 2022 and the draft was reviewed by the Planning Commission during that time.
• The draft has been submitted to the State Housing and Community Development (HCD) Department for their review. A formal adoption by City Council is expected in the Winter 2022-23.
• Updates to the Zoning Ordinance are currently underway to streamline review of single-family developments including the addition of objective design standards for single-family and accessory dwelling units and SB 9 developments. Zoning Ordinance updates also address streamlining review of new single-family residences and accessory structures. Anticipated review by City Council in September 2022.
• Updates to Zoning Ordinance are currently underway to create new residential/mixed use Zoning Districts to implement the 2040 General Plan and Station District Specific Plan and add objective design standards for multi-family developments. Anticipated review by the City Council is in first half of 2023.
• Staff processed and City Council approved a 123-unit, 100 percent affordable housing development within the Station East area in June 2022.
• Staff partnered with Midpen Housing, the developers for Lazuli Landing, which is an 80-unit, 100 percent affordable housing development, to successfully obtain an Affordable Housing and Sustainable Communities grant in the amount of $13.5 million.

C.6: Update the Economic Development Strategic Plan to meet the City’s financial goals and build regional partnerships.

• City staff supported Management Partners’ effort to evaluate economic development practices. Staff support to this effort included Union City sector analysis including top 10 sectors based on NAICS codes; summarization of sales tax revenue reports; industrial real estate reports; and real estate trend reports for the region. This data will also feed into the Economic Development Strategic Plan update scheduled to begin in FY 2022-23.

C.7: Collaborate with commercial brokers on retail and commercial opportunities for new businesses and identify factors that will encourage high revenue-producing businesses to lease vacant properties.

• Economic Development staff provides on-going response to broker and businesses inquiries regarding interest in both retail and industrial space.

C10: Strengthen the Community Emergency Response Team Program through the Alameda County Fire Department per agreement with the County

• City staff conducted a hybrid CERT Academy, which will include a hands-on module with ACFD later this year.
• City staff have also coordinated with Newark CERT to combine training and meetings together to allow for both programs to leverage our current membership. Staff are also beginning to conduct quarterly in-person hands-on training for all CERT members, and staff are holding monthly virtual trainings for CERT members and community members.

C.11: Complete the General Plan update, the Station District Specific Plan, and the Hillside Specific Plan.

• The draft Station District Specific Plan and related draft EIR was released for public review in June 2022. The Specific Plan and EIR are anticipated to be brought back to the City Council for adoption/certification in Fall 2022.
• Staff and the consultant team are preparing a Background Report for the Hillside area, which is the first step to develop a Specific Plan for the proposed Hillside development project.

C12: Provide employee training for emergency preparedness and conduct disaster response drill

City staff is working with the Human Resources Department to develop the FEMA Incident Command System (ICS) training program, which is expected to begin later this summer. The program will cover the principles and basic function areas of the ICS system, online FEMA courses in IS 100, IS 700, National Incident Management System (NIMS) and up to operating a full Emergency Operations Center (EOC). The program will also offer employees Personal Emergency Preparedness (PEP) training to inform and prepare individuals and their families to be self-sufficient for days after an area-wide emergency or disaster.

C.14: Update the police department strategic plan to include Reimagine Policing Initiatives

In June 2020, the Policing and Community Engagement Committee convened eight virtual listening sessions where 15 stakeholders provided feedback on policing in Union City. The committee developed the following initiatives:

1. Accountability and Transparency
2. Hiring and Training
3. Mental Health & Social Services
4. Community Policing

• City Council provided direction to establish work teams (Policing & Community Engagement Working Groups) to research opportunities and create an implementation plan.
• Policing & Community Engagement Working Groups provided areas in which the Police Department could focus their efforts to reimagine policing within the strategic plan.
• Internal and external surveys were conducted with employees and community members.
• A Peace Officer Standards and Training (P.O.S.T) facilitated Team Building Workshop was attended by all supervisory ranks and above. This Team Building Workshop was used to build upon the recommendations from the Policing & Community Engagement Working Groups as it pertained to the Strategic Plan and their reimagining recommendations. 
• A five (5) year Police Department Strategic Plan was developed, reviewed, and approved by the City Council.
• The Strategic Plan will be published on the Police Department website.

C.15: Continue to review development permitting processes to streamline service and improve efficiency and develop a communication plan to disseminate modifications to staff and customers.

• Economic and Community Development Department staff refined internal processes to better facilitate on-line application submittals and updated public handouts further clarifying on-line submittal process.

C.17: Create a plan for leveraging the social services resources in Union City and the County to make efficient use of all limited resources

•  COVID-19 severed the traditional model of providing social services to the community. In, addition, staffing shortages made it more difficult to maintain relationships with community partners. Now that programming and services have returned, staff is forging new private/public partnerships to continue to serve the growing needs of the community. 
• A new client management software also has been launched for Youth and Family Services, which will significantly improve staff's ability to track and report on the clients that are served and the case loads that are managed.  The software also meets federal privacy rules, commonly referred to as HIPAA standards. 

C.20: Facilitate the development of entitlements and closing on the sale of the Gateway property to generate revenue to fund the construction of Phases 3 and 4 of the Quarry Lakes Parkway

• The City entered into an ENA with City Ventures in December 2021 for development of the Gateway property.

C21: Continue providing support to City residents and businesses to COVID-19 recovery

Despite the business need for financial assistance as a result of the impacts of COVID-19, the business response has been slow to apply for funding. While not documented, businesses may be experiencing fatigue, and some have struggled to provide necessary documentation to receive funding.

• On-going Business Support

Both Housing and Economic Development staff continually provided support to residents and businesses regarding COVID-19 relief grant opportunities at the state, federal, and regional level. Most funds are used for rent relief, payroll support and reimbursement for personal protection equipment (PPE) and other COVID-19 expenses. In addition, not all assistance is monetary, some include referral to legal or other resources

Union City’s Road to Recovery Loan Results (CARES Act and CDBG entitlement funding)

• Temporary Outdoor Dining

The City established a COVID-19 Relief Temporary Outdoor Dining program to allow restaurants to install seating outdoors through a streamlined review process. Thirty restaurants took advantage of the outdoor dining temporary program and staff also worked with SyWest Development to address the sidewalk seating needs of smaller businesses.

• Eastbay Community Energy (EBCE) Food Security Grant

Fifty thousand dollars was allocated to eight community organizations for COVID-19 response to support food security in the community. Funding helped aid in purchasing additional food and non-grocery items, the distribution of food and support for the expansion of operations, purchase of PPE and supplies, and the hiring of temporary staff.

• Residential Rental Assistance

Approximately $284,000 in rental assistance was issued to provide rental assistance for tenant’s struggling financially due to the COVID-19 pandemic and who have been unable to pay their rent. The total number of household members that were able to stay housed with the help of the rental assistance payments was 202. Funding was provided from both the CARES Act and the City’s CDBG entitlement funding to provide rental assistance for tenants.

• Alameda County Emergency Rental Assistance Program

Alameda County was able to provide approximately $3.26 million in emergency rental assistance for tenants in Union City who were struggling financially due to the COVID-19 pandemic and were unable to pay rent and had accrued back rent through the pandemic. The County was able to approve 208 applications for Union City residents who were eligible for the program. City staff coordinated with the County on multiple communication outreach flyers to ensure that tenants struggling to pay rent had access to the Alameda County application portal to apply for rental assistance

C.22: Increase fines for illegal fireworks, develop and implement a public communication campaign about fireworks, consider banning the sale and deployment of all fireworks if the threat to community safety is not significantly reduced during the 4th of July season.

Staff explored strategies for increased penalties for the deployment of illegal fireworks, conducted a public opinion survey on community views regarding fireworks, formalized regulations and processes for the sale of Safe and Sane fireworks, and increased outreach and education. These efforts are described in full detail below.

Increase fines for illegal fireworks: The City Council introduced and adopted Ordinance No. 890-21 on October 26, 2021, which added Chapter 7.26 – Fireworks to the Union City Municipal Code, that:

• Deleted UCMC Chapter 15.20.140 – Explosives and Fireworks.
•  Defined the deployment of illegal fireworks as a misdemeanor.
•  Created a $1,000 fine for deployment of illegal fireworks or for the deployment of Safe and Sane fireworks in violation of UCMC Chapter 7.26.
•  Established a Social Host Ordinance that created a $1,000 fine issued against the property owner where illegal fireworks are deployed.
•  Provided the authority to the Union City Police Department to issue administrative citations in violation of UCMC Chapter 7.26.
•  Determined that Union City would be responsible for collecting the fines for citations issued as opposed to the Alameda County District Attorney.

Public Opinion Survey: In response to the City Council's direction to seek the community’s viewpoint regarding the use of fireworks, staff engaged Godbe Research to prepare a survey. Results of the survey were presented to the City Council at the October 26, 2021, meeting. The polling results showed that the community is divided on the issue of supporting the sale of Safe and Sane Fireworks and supporting the banning of all fireworks. The results indicated that, should an ordinance banning all fireworks be adopted by the Council, the ordinance is unlikely to hold up in a referendum.

Updated Regulations for Safe and Sane Fireworks Sales: The City Council also adopted Resolution No. 5844-21 on October 26, 2021, which amended City Council Resolution No. 2537-03 as follows to reflect actual practices in the administration of Fireworks regulations for organizations issued a permit to sell State Fire Marshal-approved “Safe and Sane” fireworks:

• Organizations issued a permit to sell fireworks are now required to document all costs and expenses incurred selling fireworks on a Fireworks Financial Report disclosure form prepared by the City.
• Organizations selling fireworks must comply with state law and provide proof of payment to the California Department of Tax and Fee Administration (CDTFA) of state and local sales taxes.
• Provided authority for the Fireworks Administrator not to issue a fireworks sales permit for the 2022 season if an organization did not provide proof of payment for state and local sales taxes.
• Requires treasurer of the organization selling fireworks to determine the net income generated from fireworks sales and the amount deposited into the treasury.
• Requires treasurer of the organization selling fireworks to attest to accuracy of the Fireworks Financial Report submitted to the City.

City staff also worked with the fireworks suppliers to design a Fireworks Financial Report disclosure form to identify revenues generated by fireworks sales and all expenses incurred, including the payment of sales taxes. The fireworks suppliers assisted the organizations selling fireworks to complete the form. The specific disclosure items included:

• Retail value of fireworks sold.
• Sales taxes and City surcharge fees charged to fireworks customers.
• Payment to California Department of Tax and Fee Administration for state and local sales taxes.
• Expenses incurred selling fireworks.
• An attestation of the net fireworks income deposited into the treasury. 

Outreach and Education: For the 2022 fireworks season, the City Attorney, staff, and the fireworks distributors Phantom and TNT worked together to prepare a brochure that was printed by the fireworks suppliers and provided to all customers purchasing Safe and Sane Fireworks. The brochure identifies safe practices for the deployment and disposal of Safe and Sane fireworks and discloses the new fines for the deployment of illegal fireworks and deployment of Safe and Sane fireworks in violation of UCMC Chapter 7.26.  The brochure was also mailed as a fire safety educational postcard to all Union City residents (22,536 addresses) on June 13, 2022.

The Union City web page and City-sponsored social media advised residents about the increased fines for deploying illegal fireworks. From June 27^th – July 4^th, the City conducted a social media campaign on local fireworks laws, penalties, and safety procedures, on Facebook, Twitter, Instagram, and Next Door. In addition, the City distributed the educational brochure on its email list-servs through GovDelivery on June 27^th, July 1^st, and July 4^th.

The City and ACFD staff also participated in two nonprofit booth operator orientations coordinated through TNT and Phantom Fireworks in May 2022. Staff discussed the fireworks booth application process, financial reporting process, inspections, and answered questions. Staff will also train volunteers on how to document fireworks sales expenses and to complete a new online Fireworks Financial Report.

GOAL D: ENVIRONMENTAL SUSTAINABILITY AND INFRASTRUCTURE

Create a healthy, sustainable community and maintain and improve the City’s infrastructure.

D.4: Evaluate development impact fees for new development infrastructure: Decoto Industrial Park Study Area (DIPSA), Transportation Impact Fee, Fire, Parks Facilities Fee, Railroad Preemption Fees9

• On February 8, 2022, City Council authorized staff to engage Economic Planning Systems, Inc. (EPS) to update several existing development impact fees and add a Transportation Impact Fee in accordance with AB 1600. The analysis is to ensure impact fees are aligned with the impact that new development will have on City services, infrastructure, and facilities. Staff anticipates the completion of the development impact fee update by spring 2023.

D.9: Convert the UC Transit fleet to electric

• To date, Union City Transit has applied for multiple Federal Transit Administration (FTA) discretionary grants through the Bus & Bus Facilities (B&BF) and Low or No Emissions Vehicle (Low-No) programs without success. The discretionary funds are needed to cover the funding gap that exists between the secured FTA formula funds for replacement vehicles that only cover the cost of a diesel-hybrid buses and the much more expensive battery-electric buses (BEB). With the passage of the federal Bipartisan Infrastructure Law (BIL), several million dollars were allocated to FTA discretionary programs and FTA announced that a new notice of funding opportunity (NOFO) would be released in March 2022. Union City Transit has applied for these funds through the Low-No and/or B&BF program to cover not only the current need for replacement buses (replace two 2008 and six 2010 buses) but also near-term replacement buses (replace six 2012 buses) along with the necessary charging infrastructure for these vehicles and the electric paratransit vehicles that were authorized for procurement in February 2022. Union City Transit is waiting to hear from FTA for grant application determination.
• As of September 27, 2021, the City has one fully electric Transit vehicle procured and entered into service.

GOAL E: COMMUNICATION AND OUTREACH

Build strong connections with community partners, residents, and employees.

E.8: Develop an outreach strategy aligned with the City’s brand guidelines aimed at heightening the profile of the City within the community and region

• On June 17, 2022, KTVU’s Zip Trip broadcasted live in Union City. Four reporters visited different business and locations around town highlighting resident’s favorite places, restaurants and why Union City is called a diverse and compassionate city.

E.10: Collaborate with the Arts and Culture Commission and Bay Area Rapid Transit (BART) to place murals on the Kennedy Park BART pillars.

• After coming out of pandemic restrictions, the Arts and Culture Commission is re-engaging and re-establishing the mural program, starting with the utility box mural program with a plan to expand in the future to other mural projects, such as the BART pylons. The Human Relations Commission (HRC) has expressed interest in participating in the mural program to engage in the community.

There is no fiscal impact associated with this report.

Staff recommends that City Council accept this informational report on the progress and accomplishments on the Strategic Plan and City Council priorities made from October 2021 and July 2022.

Serenity Mlay, Management Analyst I

Joan Malloy, City Manager