City Council Staff Report Page 1 of 3 May 26, 2026
Staff Report
Agenda Item No. 4.11
DATE: May 26, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt Two Resolutions: 1) Approving the Annual Engineer's Report for the Landscape and Lighting Maintenance District (LLAD) No. 3, and 2) Declaring the City Council's Intent to Levy and Collect Assessments, Setting June 23, 2026, as the Public Hearing Date
EXECUTIVE SUMMARY
Annually, the City Council considers renewing the Landscape and Lighting Maintenance District (LLAD) No. 3. The LLAD is a critical funding source for the maintenance of landscaping, irrigation, lighting, and traffic signals. Staff now recommends that the City Council take the appropriate steps to consider the LLAD property assessments at a future public hearing with the adoption of two resolutions:
1. Approving the Annual Engineer’s Report for Landscape and Lighting Maintenance District (LLAD) No. 3; and
2. Declaring its intention to levy and collect assessments and setting June 23, 2026, as the public hearing date.
STRATEGIC PLAN ALIGNMENT
This agenda item is aligned with the following:
Goal D: Create a healthy, sustainable community and maintain and improve the City’s Infrastructure.
BACKGROUND
Pursuant to the Landscaping and Lighting Act of 1972 and the California Streets and Highways Code, the City Council is required to conduct an annual public hearing on the levy of assessments for the upcoming fiscal year to ensure legal compliance and authority.
1. Initiating proceedings,
2. Accepting the Annual Engineer’s Report and declaring the City Council’s intention to levy assessments at a future public hearing, and
Agenda Item No. 4.11
City Council Staff Report Page 2 of 3 May 26, 2026
3. Conducting a public hearing to confirm and levy the assessments.
On April 14, 2026, the City Council adopted Resolution No. 2026-039, initiating proceedings for the levy of assessments for Fiscal Year 2026–2027 and directing NBS Government Finance Group to prepare and file the Annual Engineer’s Report with the City Clerk. The report has since been completed and filed for City Council consideration.
DISCUSSION
LLAD No. 3 funds a variety of services and improvements throughout the city consistent with the FY 2026–2027 budget, including street maintenance and improvements, traffic signal maintenance, street tree management, and park maintenance.
Services provided through the District include the operation, maintenance, and servicing of public landscaping improvements, including but not limited to plant materials, shrubs, trees, ground cover, irrigation systems, pathways, hardscape, walls, fences, traffic signals, and related appurtenant facilities. District-funded activities also include personnel, materials, electricity, water, administration, and other operational services necessary to maintain these improvements in a safe, healthy, and satisfactory condition throughout Union City.
The City Council will hold a public hearing on June 23, 2026, to discuss the proposed assessments for LLAD No. 3 and emphasize the importance of community participation in this process.
The Annual Engineer’s Report, prepared by NBS Government Finance Group, is attached for City Council review. The report outlines the District’s boundaries, improvements, budget, and assessment methodology.
FISCAL IMPACT
Since the establishment of the original Landscape and Lighting District in 1996 and the reformation of LLAD No. 3 in 2005–2006, the assessment rate has remained at $90.19 per Equivalent Dwelling Unit (EDU), providing stability despite rising costs.
In addition, State law requires that only costs associated with the proportionate special benefit received by properties within the District may be assessed to property owners.
Certain park maintenance activities provide broader community-wide benefits and therefore cannot be fully funded through District assessments. As a result, the City must contribute toward the portion of costs attributed to general and citywide benefits.
For FY 2026–2027, the total estimated District maintenance and administrative costs are $3,929,698.31. Recommended assessments are projected to generate $2,676,236.36, while the City’s contribution toward general and citywide benefit costs is estimated at $772,040.00. Even with these revenues, the District is projected to experience a funding shortfall of $481,421.95.
Accordingly, the City’s contribution of $772,040.00, together with the projected funding shortfall of $481,421.95, for a combined total of $1,253,461.95, will be necessary to fully fund the District’s estimated FY 2026–2027 maintenance and operational costs.
Agenda Item No. 4.11
City Council Staff Report Page 3 of 3 May 26, 2026
RECOMMENDATION
Staff recommends that the City Council adopt two resolutions:
1. Approving the Annual Engineer’s Report for Landscape and Lighting Maintenance District (LLAD) No. 3; and
2. Declaring its intention to levy and collect assessments and setting June 23, 2026, as the public hearing date.
Prepared by: Diana Cangco, City Engineer
Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Draft Resolution 1 – Approving the Engineer’s Report
2. Exhibit A – Preliminary Engineer’s Report
3. Draft Resolution 2 - Intention to Levy and Collect Assessments
4. Exhibit A – Preliminary Assessment Roll