City Council Staff Report Page 1 of 3 May 26, 2026
Staff Report
Agenda Item No. 4.9
DATE: May 26, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Approving a Tiered Recovery Structure for Property Owners’ Sidewalk Repair Costs Associated with the Annual Sidewalk, Curb & Gutter, and Ramp Repair Project, City Project No. 25-03, and Authorizing a Repayment Plan of up to 24 Months
EXECUTIVE SUMMARY
At the February 10, 2026, City Council meeting, staff presented three options for electing not to recover 13%, 31.5%, or 50% of property owners’ costs associated with the 2025 Annual Sidewalk, Curb & Gutter, and Ramp Repair Project, City Project No. 25-03. To help inform the Council’s direction, the City Council requested additional information on the full range of costs incurred by property owners and expressed interest in reducing the financial burden, particularly for economically disadvantaged property owners.
On March 24, 2026, staff returned to City Council with updated information on the total costs borne by property owners for sidewalk repairs. Staff also provided data on participation in the City’s Utility Users Tax (UUT) Exemption Program and Republic Services Discount Program, both of which offer financial assistance based on age or income eligibility. Following discussion, the City Council reached consensus on a tiered recovery approach, electing not to recover 13% as a base level for property owners, or electing not to recover 31.5% from property owners participating in either assistance program.
The proposed resolution would result in the City electing not to recover 13% of the amounts owed from property owners as a base level, or electing not to recover 31.5% from property owners who participate in the UUT Exemption Program or the Republic Services Discount Program, and extending the repayment plan to 24 months.
STRATEGIC PLAN ALIGNMENT
This agenda item is aligned with the following:
Goal D, Strategy 2: Environmental Sustainability and Infrastructure – Implement the City’s Agenda Item No. 4.9
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capital improvement plan.
BACKGROUND
On December 16, 2025, the City Council adopted Resolution No. 2025-173, accepting completion of the 2025 Annual Sidewalk, Curb & Gutter, and Ramp Repair Project, City Project No. 25-03, with a final construction cost of $611,523. Of this amount, $333,177 is the City’s share and $278,346 is attributable to property owners.
Pursuant to Section 5610 of the California Streets and Highways Code and Section
12.08.615 of the Union City Municipal Code, adjacent property owners are responsible for sidewalk repair. Under the City’s cost recovery program, and consistent with state law, the City funds the full project upfront and subsequently seeks reimbursement from property owners for eligible sidewalk repair costs. Property owners may pay their share in full or in installments. The City covers costs associated with mobilization, curb and gutter repair, and tree removal, while property owners are responsible for sidewalk demolition, site preparation, and installation.
During this project, staff received more than 35 inquiries from residents citing financial hardship. Additionally, project costs were approximately 86% higher than the City’s 2022 sidewalk repair project. In response, the City Council directed staff on December 16, 2025, to evaluate options to reduce the financial burden on property owners.
On February 10, 2026, staff presented three options for electing not to recover 13%,
31.5%, or 50% of property owners’ costs. While these options would not require additional appropriations, any reduction in cost recovery would decrease funding available for future roadway improvements. The City Council expressed interest in prioritizing assistance for economically disadvantaged property owners and requested additional information on the total costs incurred by all property owners, as well as the option of extending repayment terms to 24 months.
On March 24, 2026, staff returned with additional cost information and data on participation in the City’s UUT Exemption Program and Republic Services Discount Program. Based on this information, the City Council reached consensus on a tiered approach that does not recover either a base level of 13% from property owners or 31.5% from property owners participating in either assistance program, along with a 24-month repayment option. The City Council also directed staff to conduct outreach to ensure eligible property owners are aware of the available assistance programs.
DISCUSSION
The total sidewalk repair costs attributable to all property owners for the 2025 Annual Sidewalk, Curb & Gutter, and Ramp Repair Project, City Project No. 25-03, is $278,346 of the $611,523 total construction cost. Under the proposed tiered underwriting structure, total reimbursements from property owners are estimated to range from approximately $190,667 to $242,161. The lower amount reflects the scenario in which all property owners qualify for a non-recovery of 31.5% of the amount they owe. In comparison, the higher amount assumes all property owners qualify for the non-recovery of 13% owed.
Correspondingly, the City’s share would range from $420,856 to $369,362.
Agenda Item No. 4.9
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Property owners who qualify for the UUT Exemption Program or the Republic Services Discount Program would be eligible for the higher non-recovery rate of 31.5%. As of February 2026, 8 of 109 property owners were enrolled in these programs. Staff has notified all property owners of these assistance programs, and applications are being accepted through May 30, 2026. Approved participants will have the higher non-recovery amount applied to their final sidewalk repair costs.
Property owners may pay their share in full or through an installment plan of up to 24 months, consistent with City Council direction. Extending the repayment period to 24 months will reduce monthly payments for property owners, thereby easing the immediate financial burden associated with sidewalk repair costs.
FISCAL IMPACT
The total construction cost for the 2025 Annual Sidewalk, Curb and Gutter, and Ramp Repair Project (City Project No. 25-03) is $611,523, of which $278,346 is attributable to property owners. Approval of the proposed tiered non-recovery structure will reduce the amount of cost recovery from property owners.
Under the proposed approach, total reimbursements from property owners are estimated to range from approximately $190,667 to $242,161, depending on participation in the UUT Exemption Program and Republic Services Discount Program. Correspondingly, the City’s share of project costs would increase to approximately $369,362-$420,856.
No additional appropriations are required, as the project has been completed and funded.
However, reduced cost recovery will decrease funding available for future sidewalk and roadway improvement projects.
RECOMMENDATION
Staff recommends that the City Council approve the proposed resolution establishing a tiered non-recovery structure for the 2025 Annual Sidewalk, Curb & Gutter, and Ramp Repair Project (City Project No. 25-03), consisting of either a 13% base level of nonrecovery for property owners or a 31.5% level of non-recovery for property owners participating in the UUT Exemption Program or Republic Services Discount Program, and authorizing a repayment period of up to 24 months.
Prepared by: Diana Cangco, City Engineer
Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Draft Resolution