City Council Staff Report Page 1 of 4 January 13, 2026
Staff Report
Agenda Item No. 6.1
DATE: January 13, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute an Operating and Management Agreement, in a Form Approved by the City Attorney, with the Union Landing Property Owners’ Association
EXECUTIVE SUMMARY
The Union Landing Property and Business Improvement District (“ULPBID”) is an Assessment District created by the City, with approval of the property owners, to fund security, administration, and marketing services for the Union Landing Shopping Center.
The ULPBID was renewed for the period of July 1, 2025, through December 31, 2030.
Due to City staff stepping down from managing the ULPBID and the Union Landing Property Owners' Association (ULPOA) hiring a third-party management company, it is necessary to agree with the City and the ULPOA to allow for the transfer of assessment fees to the ULPOA received by the City from the Alameda County Assessor’s Office. Staff recommends the City Council adopt a resolution (Attachment 1) authorizing the City Manager to execute an Operating and Management Agreement (labeled Exhibit A), in a form approved by the City Attorney, with the ULPOA.
STRATEGIC PLAN ALIGNMENT
This agenda item is in alignment with the following:
Goal C, Strategy 4: Enhance the City’s partnership with Union Landing property owners and tenants to grow the vitality of the business district and revenue to the City.
BACKGROUND
ULPBID is established in accordance with the provisions of the Property and Business Improvement District Law of 1994, California Streets and Highways Code section 36600 et seq. ("1994 Law"). On May 13, 2025, the City Council declared its intention to renew the ULPBID (Resolution No. 2025-060), and on July 8, 2025, it took the final step to restore the District and to levy and collect assessments for Fiscal Year 2025-2026 (Resolution No. 2025-096).
Streets and Highways Code Section 36651 authorizes the City to contract with an owners' Agenda Item No. 6.1
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association to provide the improvements, maintenance, and activities specified in the Management District Plan (“MDP”).
Since the District’s initial formation in 2004, City staff have managed the operations of the ULPOA. At that time, the collected assessments covered the cost of three dedicated police officers, a police substation, and related administrative duties performed by City staff. In 2017, the menu of services expanded to include marketing services. The additional funding allowed for essential improvements to the center, including updating the center’s logo, developing branding guidelines and a webpage, social media campaigns, events, and upgrades to the center, including landscape enhancements for the gateway walls, improved median landscaping, and pylon sign upgrades. As services expanded, City staff assumed the role of part-time executive director with all the duties associated with nonprofit organizational management.
Also in 2017, the ULPOA applied for designation as a nonprofit corporation as required by State law to manage the ULPBID operations. The ULPOA includes five “Directors” who represent all Union Landing property owners. The Directors make decisions about activities to be paid for by the PBID for the coming year and are very engaged in directing funds to improve the center as best as possible. After a lot of back-and-forth between the IRS and the City and requests for various types of documentation, on June 26, 2025, the IRS finally determined that the ULPOA was exempt from federal income tax under Internal Revenue Code Section 501(c)(6).
The latest MDP is attached to this staff report (Attachment 2) and includes funds to cover the cost of a third-party management company, which will now provide the support that City staff has been providing since the inception of the ULPBID, relieving City staff of those responsibilities. Economic Development staff will, however, continue to serve as a liaison to the ULPOA. Moving forward, Finance staff will be responsible for managing the transfer of the assessment funds to the ULPOA and billing the ULPOA for the cost of security services being provided by the City, as well as related administrative costs incurred by the City.
DISCUSSION
On July 1, 2025, the ULPOA entered into a professional services agreement with Community Strong Strategies LLC ("CSS") to begin the transition of management of the ULPBID from the City to CSS. CSS has a long track record of working with property/business improvement districts throughout the state and in the Bay Area. CSS also has a team dedicated to accounting and other duties needed to support management of the ULPBID.
The following highlights the significant terms of the Operating and Management Agreement between the City of Union City and the Union Landing Property Owners’ Association; additional terms and conditions are reflected in the Agreement.
1. Term of Agreement. The Agreement will commence on January 13, 2026, and terminate on December 31, 2030, consistent with the MDP's end of term.
Agenda Item No. 6.1
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2. Services. The services provided by the ULPOA are fully defined in the MDP; however, they will include marketing services: website/social media support, events, installation of banners, and administrative services: financial management, preparation of the Annual Report, and all board management-related duties. The City will provide security services: three (3) dedicated Union Landing police officers, a substation at Union Landing, vehicle maintenance and supplies, for which the ULPOA will be invoiced.
3. Budget and Financial Obligations
a. Collection of Assessment. The City will coordinate the annual levy, placement, and collection of all assessments for the District. The City shall provide general assistance, clarification, or information to the ULPOA, the assessed parties, and the public at large.
b. Disbursement. The City will disburse to the ULPOA, into such account identified by the ULPOA, one hundred percent (100%) of all District assessments, including related late fees and penalties, as well as the assessments due from the City for City-owned parcels within the District, actually received by the City.
Disbursements will be made within 30 days of receipt by the City from Alameda County. Typically, most of the assessment revenues are received by the City in December and April.
c. General Benefit. The District’s assessment provides both special benefits to property owners within the District and a general benefit. The City shall pay the annual contribution for the general benefit by October 31 of each year. d. Security Services. At the beginning of each calendar quarter, the City will send an invoice to the ULPOA for 25% of the budgeted costs of City-provided security services pursuant to the MDP. The ULPOA shall pay the City the amount of such invoice within thirty (30) days of receipt.
4. City Administrative Costs
a. Once per calendar quarter, the City will send an invoice to the ULPOA for the actual cost of all administrative services related to the District, such as the County Auditor/Controller’s fee to collect the District’s Assessment and third-party consultant fees. The ULPOA shall pay the City within thirty (30) days of receipt of the invoice.
b. Once per fiscal year, the city will send an invoice to the ULPOA for the estimated costs of administrative services provided by City staff, not to exceed five percent (5%) of the total District assessment for that fiscal year. The ULPOA shall pay the City within thirty (30) days of receipt of the invoice. c. During the first quarter of the calendar year of 2026, the City will invoice the ULPOA for all costs the City incurred and paid for on behalf of the ULPOA during the transition period of July 1, 2025, through December 31, 2025, including the Agenda Item No. 6.1
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fees paid for the preparation of the new 5-Year MDP. ULPOA shall pay the City the amount of such invoice on or before June 15, 2026.
5. Tax Return. The ULPOA shall provide copies of all filed state and federal tax returns to the City within ten (10) days of filing. The City, at its discretion, may request any related documentation pursuant to Section 5 of the Agreement.
FISCAL IMPACT
In Fiscal Year 2025-2026, the PBID assessment will provide funding for the abovereferenced services in the approximate amount of $1,615,471.62, related to the special benefit conferred by the services. The City will contribute $75,399.35 related to the general benefit conferred by the services. Beginning in Fiscal Year 2026-2027, the maximum assessment may increase by 4% per year. All administrative costs the City incurs related to the collection of the assessments and administration of the PBID will be paid for by the ULPOA, up to a maximum of five percent (5%) of the total assessment amount.
RECOMMENDATION
Staff recommends that the City Council adopt the attached resolution authorizing the City Manager to execute an Operating and Management Agreement, in a form approved by the City Attorney, with the ULPOA.
Prepared by: Gloria Ortega, Economic Development Manager Submitted by: Carmela Campbell, Economic and Community Development Director Attachments
1. Draft Resolution Authorizing Execution of the Operating and Management Agreement with the ULPOA
Exhibit A - Operating and Management Agreement
2. ULPBID Management District Plan