Union City City Council
February 10, 2026

Underwriting Options for
Sidewalk Repair Costs
City Project No. 25-03 – Annual Sidewalk, Curb &
Gutter, and Ramp Repair
2 Project BackgroundCity Council Project Approvals and DirectionUnderwriting Options (Discounts of 13%, 31.5%, 50%)Recommendations/Feedback Underwriting Options for Sidewalk Repair Costs
Presentation Overview
3 § 12.08.615 Sidewalk maintenance—Duty and liability. Section A, Section D ”Duty of Property Owners. The owners of lots or portions of lots fronting on any portion of a public street…shall maintain any sidewalk in such condition that the sidewalk will not endanger persons or property and maintain it in a condition which will not interfere with the public convenience…” “Maintenance and Repair. For purposes of this section, "maintenance and repair" on sidewalk areas shall include removal and replacement of sidewalks, removal and filling or replacement of parking strips… ”
(Ord. 365-91 § 1, 1991)
Underwriting Options for Sidewalk Repair Costs
Project Background - Municipal Code
4 Underwriting Options for Sidewalk Repair Costs
Project Background – Project Funding
•CIP Budget FY 2025-2026 - $700,000• Funds
• State Gas Tax
• SB 1 Road Maintenance and Rehab Fund•Measure BB Bike and Ped Fund • Per Municipal Code, property owners pay
100% of their share of repair costs
5 Underwriting Options for Sidewalk Repair Costs
City Council Project Approvals and Direction
Cost
Original Project Budget (25-26 CIP) $700,000Approved Project Cost + 20% Contingency $647,945Actual Cost of Work + Used Contingency $611,523Approved Budget Unused: $36,422 • August 12, 2025 - City Council awarded the Construction Contract and approved a total construction budget of $647,945.
• December 16, 2025 - City Council accepted the completion of the project with a final construction cost of $611,523 (City Cost: $333,177 Homeowners’ Costs: $278,346) • The remaining project budget was $36,422.• December 16, 2025 - City Council also directed staff to look at different underwriting options to offset the increased costs for property owners, including a 50% discount option. 6 Cost Increases from 2022 to 2025• General Project Costs: Approx. 85% cost increase for similar number of locations.
• Sidewalk Unit Costs: 78% cost increase for removal and replacement of sidewalk per square foot.
• Resident Portion Cost: 75% increase in median cost per homeowner 2022 vs.
2025 Cost
Increase
City Proj. 25-03
(Completed:
2025)
City Proj. 20-03
(Completed:
2022)
Total Contract Cost $327,500 $611,523 +86%
Private Locations 93 114 -
$16.82 /sf $30 /sf +78% Sidewalk Replacement Cost per Square Foot $1,080 $2,025 +75% Median Homeowner Portion
Underwriting Options for Sidewalk Repair Costs
City Council Direction - Cost Comparison (2022 vs. 2025) 7 Option 1: 13% Discount (Use of
Remaining Project Budget)
• Amount to Underwrite: $36,000• Median Cost per homeowner: $1,762• Highest Cost: $7,223• Lowest Cost: $418• City Cost: $369,177• Homeowners’ Cost: $242,346 Underwriting Options for Sidewalk Repair Costs
Underwriting Options
*Without a discount, the current Median Cost per homeowner is $2,025Highest Cost: $8,302Lowest Cost: $480 $647,945 - $611,523 = $36,422
8 Underwriting Options for Sidewalk Repair Costs
Underwriting Options
Option 2: 31.5% Discount (Use of
Remaining Project Budget Plus the Delta from CIP Budget of $700,000) • Amount to Underwrite: $87,500• Median Cost per homeowner: $1,387• Highest Cost: $5,687• Lowest Cost: $329• City Cost: $420,677• Homeowners’ Cost: $190,846 $700,000 - $611,523 = $88,477
*Without a discount, the current Median Cost per homeowner is $2,025Highest Cost: $8,302Lowest Cost: $480 9 Underwriting Options for Sidewalk Repair Costs
Underwriting Options
Option 3: 50% Discount
• Amount to Underwrite: $139,173• Median Cost per homeowner: $1,012• Highest Cost: $4,151• Lowest Cost: $240• City Cost: $472,350• Homeowners’ Cost: $139,173 Total Resident Costs $278,346 x 50%
= $139,173
*Without a discount, the current Median Cost per homeowner is $2,025Highest Cost: $8,302Lowest Cost: $480 10 Underwriting Options for Sidewalk Repair Costs• Funding and Cost Recovery Approach

SAVINGS CITY COSTS

PROPERTY
OWNERS’
COST
PROJECT COST = $611,523
$333,177 $278,346

CIP BUDGET

CONSTRUCTION BUDGET
$369,177 $242,346
$420,677 $190,846
$472,350 $139,173
OPTION 1 USE $36,000 SAVINGSOPTION 2 USE $87,500 SAVINGS OPTION 3 USE $88,477 SAVINGS + DIVERT $50,696 FUNDS
SAVINGS AND PROPERTY OWNERS’ COSTS REIMBURSES GAS TAX, SB1, MEASURE BB FUNDS TO USE FOR OTHER CIP ROADWAY PROJECTS $36,422 - $88,477
11 Underwriting Options for Sidewalk Repair Costs
Recommendations / Feedback
• Resident Payment Options:
• One-Time Payment• Monthly Payment Option of 18 months at 0% Interest (Typical 12 months)
• Property Lien (remaining amount owed after 18 months) • Questions / Recommendations