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May 18, 2010 > Union City City Council

Union City City Council

May 11, 2010

Cub Scout Troop #268 from Searles School performed the flag ceremony and led the Pledge of Allegiance.

Proclamations and Presentations
Sgt. Brandon Hayward recognized as "2010 Union City Police Department Officer of the Year."

Brian Lane recognized as "2010 Paramedic of the Year."

May 16-22 observed as "Emergency Services Week" and designated "Public Services Week." May 22 designated as "Arbor Day" in Union City.

Consent Calendar:
Renewed the Citywide Landscape & Lighting District No. 3 and set a public hearing for June 15 on the levy of FY 2010-11 assessments. The assessment district (No. 3) provides various services such as street lighting and signaling. The assessment will generate $2,556,170.36 in revenue but eligible costs are $3,321,580. The General Fund or other special funds will cover the $765,409 shortfall.

Redevelopment Agency (RDA) supported filing an appeal with the Court of Appeals re. the ruling in California Redevelopment Association (CRA) vs. Genest. The city's RDA is a co-plaintiff in this case. The lawsuit is a response to the California state legislature's vote to take $2.5 billion from redevelopment agencies. When Judge Lloyd Connelly denied the CRA its petition, the CRA appealed. Overturning the original decision would allow investment of $9.3M in the city's Station District. The CRA will pay for the appeal at no cost to the city.

Extended the time allowed for development to June 30, 2015 for property held for more than five years by the RDA. Agencies must adhere to the five-year development rule unless there are extenuating circumstances. Some of the properties are part of active redevelopment that will last more than five years. Others have not found buyers or lessees in the private sector. There is no fiscal impact.

Approved audit committee report from April 20 meeting. The city's auditors, Caporicci & Lawson, discussed the Comprehensive Financial Annual Report (CAFR) for FY ended June 30, 2009, with the Council Audit Committee and staff. The CAFR received the highest grade possible.

City Manager Reports:
A report was given on past due rental property business licenses and waiving of penalty fees. In April, more than 2,000 selected property owners received notices stating they may owe up to three years' business license taxes and that penalties had been assessed on the late fees. Penalties were waived if tax arrears were paid by June 30, 2010. The city could gain up to $1M from back taxes starting from 2006-07.

Third quarter budget on the city's General Fund finances for FY 2009-10 was presented. The General Fund's top five revenue sources are generating less income than last year. Expenditures are currently 71 percent of the total budgeted expenses for the year, a proportionate 10 percent decrease from last year. Current spending patterns show actual expenditures could be $126,500 less than budgeted at the end of the Second Quarter. However, a projected deficit of $1.8M exists for FY 2009-10 and could reach $2.8M in FY 2010-11.

Public Hearings
Authorized an agreement with Godbe Research for up to $20,000 for follow-up opinion research regarding a potential 2010 utility user tax (UUT). According to the pollster's November 2009 survey, 60 percent of voters favored a low tax rate, while 54 percent supported a tax period of no more than six years. Another poll may be needed to identify any changes in opinion. Barry Ferrier stated his support for the tax provided an effort was made to attract businesses.

Received report regarding the conditions which led to the adoption of a temporary moratorium on the establishment of drug paraphernalia establishments/head shops and repealed the ordinance that extended the original ordinance's 45-day moratorium to 10 months and 15 days. The original ordinance was passed to allow time to determine the city's requirements for such establishments and follow proper procedure to bring the item to Council for review and approval.

Mayor Mark Green - Yes
Vice Mayor Carol Dutra - Yes
Manny Fernandez - Yes
Jim Navarro - Yes
Richard Valle - Yes

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