City Council Staff Report Page 1 of 9 July 14, 2026
Staff Report
Agenda Item No. 4.1
DATE: July 14, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt Two Resolutions:
1. Approving the Union Landing Property Owners Association Annual Report and Amending the City of Union City Revised Budget as Necessary for Consistency; and
2. Ordering Levy and Collection of Assessment for the Union Landing Property and Business Improvement District to Fund Services in Calendar Year 2027
EXECUTIVE SUMMARY
On an annual basis, the City Council reviews the Annual Report for the Union Landing Property and Business Improvement District (“ULPBID”) and takes action to order the levy and collection of assessments. These assessments are collected through the property tax roll and used to pay for security and marketing services within the district.
The assessment revenues are collected by the County Tax Assessor, remitted to the City, and distributed to the ULPBID.
Staff recommends the City Council:
1. Adopt a Resolution approving the Union Landing Property and Business Improvement District Annual Report with a four percent (4%) budget increase, and amending the City of Union City Revised Budget as necessary for consistency (Attachment 1: Draft Resolution), and
2. Adopt a Resolution ordering the levy and collection of assessments for the Union Landing Property Business Improvement District with a four percent (4%) budget increase to fund services in calendar year 2027 (Attachment 2: Draft Resolution)
STRATEGIC DISTRICT MANAGEMENT PLAN ALIGNMENT
This agenda item is aligned 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.
Agenda Item No. 4.1
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BACKGROUND
The ULPBID is an assessment district established pursuant to the Property and Business Improvement District Law of 1994 to fund security, administration, marketing, and related services that support the continued vitality of the Union Landing Shopping Center.
The ULPBID was renewed for a five-year period from July 1, 2025, through June 30, 2030, and is governed by the ULPBID Management Plan (the “District Management Plan”). The District Management Plan includes an updated description of services, the annual budget, assessment methodology, and district management guidelines (Attachment 4).
ULPBID provides funding for the following services:
• Security Services: three dedicated Union City Police Officers, supplies and equipment, and a Police Substation to increase visibility and security in the area. • Administration & Compliance: management fees, legal and accounting services, and the costs associated with the annual renewal of the district. • Marketing & Promotions: social media and web page management, as well as coordinating community events and local promotions.
The budget tied to service costs establishes the amount of assessment fees to be collected.
The amount of the assessment paid by each property owner is determined by two different formulas. The Security Services formula includes the number of dispatched calls for service, building square footage, and lot size. For marketing services, a .50 benefit point per building square foot is used to determine the increased economic benefit for services provided. The City is one of the property owners, as the Union Landing Transit Center is included in the assessment district. For a detailed description of the formulas, see the District Management Plan (Attachment 4).
In most cases, assessment fees are passed through to tenants/business owners who have “Triple Net Lease Agreements”. These commercial leases require tenants to pay property taxes, building insurance, and maintenance costs in addition to base rent, utilities, and other charges. Accordingly, the Union Landing Property Owners Association's (“ULPOA”) Board of Directors (the “Directors”) carefully evaluates expenditures to control costs, avoid placing undue financial burden on tenants, and minimize the potential for vacancies.
The Annual Report is approved by the Directors and provides a review of services delivered during the current reporting period, proposed services for the upcoming year, and the projected budget needed to fund them.
To better align with the ULPOA’s operational needs and tax filing requirements, the ULPBID changed from a July-to-June fiscal year to a January-to-December fiscal year.
To accommodate this change, the Year 1 transition period for the ULPBID spans 18 months of service, from July 1, 2025, through December 31, 2026.
Changing to the January-to-December fiscal year also helps with the ULPOA’s operational cash flow. City staff provides the County Tax Assessor with assessment information in August, and the ULPBID assessments are collected through the property tax roll in two installments, with payments due on November 1 and February 1. The assessment revenues are collected by the County Tax Assessor, remitted to the City in Agenda Item No. 4.1
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December, and the City will distribute the funds to the ULPBID in January, the start of their new fiscal year.
After the 18-month Year 1 transition, future Annual Reports presented to the City Council should be streamlined, as the ULPOA has more time between its December 31 fiscal year-end and July to prepare and present them.
DISCUSSION
On May 20, 2026, the ULPOA Directors approved the Annual Report, which summarizes the Year 1 transition period of July 1, 2025, through June 30, 2026, and proposes the Year 2 Budget for the period of January 1, 2027, through December 31, 2027. Approval of the Year 2 Budget allows the assessment amounts to be submitted to the County Tax Assessor and placed on the property tax roll in accordance with the required assessment schedule.
Because the initial fiscal period spans 18 months (July 1, 2025, through December 31, 2026), an additional end-of-first-year Annual Report update will be presented in December 2026, covering the remaining six months of the transition period.
The Year 1 Security and Marketing Services Budgets, Assessments, and Accomplishments for the transition period are as follows:
Table 1: Year 1 (18-month budget covering July 1, 2025, through December 31, 2026, Security & Marketing and Administrative Services)
ULPOA Budget Year 1
Jul 1, 25 to Dec 31, 26
Security Services Costs
Sworn Police Services Salaries $1,274,487.00
Vehicles and Equipment $36,244.50
Office Space Lease for Police Personnel $58,797.00
Supplies $16,548.00
Total Security Services Costs $1,386,076.50
Marketing Services Costs
Marketing and Events $165,750.00
Administration Costs $239,026.00
Marketing and Administration Cost $50,000.00
Total Marketing and Admin Costs $304,776.00
Total ULPBID Costs $1,690,852.50
Agenda Item No. 4.1
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Table 2: Year 1 Assessments Levied/To Be Collected
Special Assessment Year 1
Jul 1, 25 to Dec 31, 26
Total ULPBID Costs $1,690,852.00
General Benefit-Security Services ($69,303.83)
General Benefit-Marketing and Administration Services ($6,095.52) Total Special Assessment $1,615,452.65
While the total ULPBID costs are $1,690,852, the City must contribute to the total cost by paying the “general benefit.” The general benefit is defined as the level of benefit (expressed in a percentage of the total assessments levied) to surrounding properties outside of the ULPBID from services provided by the ULPBID. Consistent with State law, this amount cannot be levied on Union Landing property owners. The total general benefit for Year 1 was $75,398, paid out of the City’s General Fund. For the breakdown on how the general benefit is calculated, see the District Management Plan (Attachment 4).
The total assessment levied on the Union Landing property owners for Year 1 was $1,615,452.65, which is the total ULPBID cost of $1,690,852 minus general benefits of $75,398.
Year 1 - Services and Accomplishments
Administrative Services
Since ULPBID's inception, City staff have served as the managing agent for ULPOA.
Effective July 1, 2025, management responsibilities began transitioning to Community Strong Strategies ("CSS"). Throughout the transition period, CSS worked collaboratively with City staff and the Directors to ensure continuity of services while strengthening the organization's independent administrative and operational capacity.
Key accomplishments during the transition included establishing independent banking and financial management systems, implementing enhanced bookkeeping and financial reporting procedures, maintaining investments in public safety services, and expanding marketing and promotional initiatives to support the district's businesses and community.
Following the successful completion of the transition, CSS assumed full management responsibilities for the ULPOA effective January 1, 2026.
Security Services
Consistent with the District Management Plan, assessment revenues continued to support enhanced public safety services provided through the Union City Police Department (“UCPD”). Public safety continues to represent the largest investment category within the ULPBID and remains a foundational component of the district's service delivery strategy. Assessment revenues support enhanced public safety services, including three dedicated officers, vehicles, equipment, operational support, and operation of the Union Landing Police Substation. These services supplement the City's broader public safety resources and help maintain a safe and welcoming environment for businesses, employees, customers, and visitors.
Having three dedicated officers at Union Landing allows for the following services to be Agenda Item No. 4.1
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delivered:
• Enhanced Business Engagement: The UCPD continues to strengthen partnerships with the business community by maintaining regular engagement with business owners, managers, and property managers throughout the district. To enhance ongoing communication, UCPD publishes the Union Landing Newsletter, which provides updates on enforcement activities, crime trends, crime prevention strategies, and other public safety initiatives
• Proactive Patrols, Rapid Incident Response, Increased Police Visibility: These measures have resulted in a significant drop in dispatched calls for service, as reported in Table 3: Annual Crime Reduction Comparison Union Landing below. • Relocation of the Police Substation: This year, the Police Substation will open its doors on Courthouse Drive, a more visible location at the center. While this move resulted in costly tenant improvements paid for by UCPD with Supplemental Law Enforcement Services Funds, the return is the added value of crime reduction that comes with a more visible location on a major throughfare. • Automated License Plate Recognition (ALPR) Cameras: Approximately one-half of the City’s 20 cameras are strategically located within one-quarter mile of Union Landing. Camera expansion is planned for 2026-2027 to strategically enhance camera placement around Union Landing. In addition, a mobile ALPR trailer is available to be moved to address a specific location, and the patrol vehicles in Union Landing have ALPR capabilities. Having three dedicated officers in Union Landing supports the technology and ensures rapid response. The initial investment and ongoing subscription costs are covered by the City. • Community Engagement: The UCPD expends significant staff resources to engage the community and Union Landing servers as the City’s downtown in doing so. These activities included National Night Out, Shop with a Cop, and other community-focused programs that strengthen relationships among law enforcement, businesses, residents, and visitors while promoting a safe and welcoming environment
It is important to note that while assessment revenues support dedicated public safety resources, they do not cover the costs of the full range of City personnel and operational resources that contribute to public safety efforts within Union Landing, including supervisory staff, administrative personnel, emergency response resources, and other City departments that support district operations as needed.
One recent example demonstrates the UCPD's commitment to providing the highest level of public safety services to Union Landing businesses and property owners. Lieutenant Kanazeh recently led a collaborative effort to address a challenging situation involving an unhoused individual who had established a campsite on private property, including a tent, a substantial amount of debris, and an inoperable vehicle.
Rather than relying on a lengthy and costly court-ordered enforcement process, Lieutenant Kanazeh worked closely with neighboring businesses, the individual, and the City's homeless outreach team to develop a voluntary relocation plan. Through this coordinated, collaborative approach, the campsite was successfully removed, the individual was reunited with family members, and an opportunity was created for the individual to begin a path toward recovery. The matter was resolved in a manner that Agenda Item No. 4.1
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balanced compassion with the interests of Union Landing businesses and property owners while avoiding more costly enforcement actions.
Proactive Policing Results in Crime Reduction
Below is an overview of the results of enhanced Union Landing security services, showing the reduction in crime between 2024 and 2025 (annual years).
Table 3: Annual Crime Reduction Comparison Union Landing For a detailed review of Security Services Accomplishments, see the Annual Report (Attachment 1 – Exhibit A).
Marketing Services Accomplishments
Marketing and promotional services continued to play an important role in supporting Union Landing’s visibility, tenant engagement, and position as a regional shopping, dining, and entertainment destination. Consistent with the objectives outlined in the District Management Plan, marketing efforts focused on strengthening the district’s identity, increasing community engagement, supporting tenant promotion, and encouraging visitation through coordinated digital outreach and community-centered events.
To support these efforts, ULPOA partnered with Sparq Marketing to provide social media management, website administration, digital marketing, tenant outreach, promotional campaign development, event support, and analytics reporting.
ULPOA also supported a variety of community-oriented events and seasonal activations designed to strengthen community participation and encourage repeat visitation to the district. These efforts included Sama-Sama Fest, holiday-themed programming, and other promotional activities coordinated in partnership with marketing consultants, tenants, community organizations, and local stakeholders. These events helped reinforce Agenda Item No. 4.1
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Union Landing’s role as a community gathering place while creating additional opportunities to promote businesses operating within the district.
For a detailed review of Administration and Marketing Services Accomplishments, see the Annual Report (Attachment 1 – Exhibit A).
Looking Ahead: Proposed Year 2, FY 2027, Security and Marketing Services Budget and Projected Assessments
The proposed FY 2027 Budget was adopted by the Directors with an overall increase of
2.7 percent. However, the annual budget may be increased by up to 4 percent to account for inflation. The Directors may elect not to fund the Marketing and Administration Contingency Fund ($50,000 baseline). Eliminating this contingency would reduce the overall budget and lower the assessment fees.
The City Council may approve the budget as adopted by the Directors, with the 2.7 percent increase, or modify individual budget line items, provided that the overall adjustment does not exceed the authorized 4 percent increase. However, staff recommends increasing the Security Services budget by 4 percent to help cover public safety service costs, including the three dedicated UCPD officers. The 4 percent increase is necessary to address increases in police officers’ salaries, vehicle and equipment costs, the on-site police office, and supplies. If the Security Services budget is not increased by 4 percent, it would place an additional burden on the City’s General Fund.
Below are the budget proposals: the Directors' budget shows a 2.7 percent increase, and the City-recommended budget shows a 4 percent increase.
Agenda Item No. 4.1
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Table 4: Calendar Year 2027 Security and Marketing Services Budget Increase Comparisons
Table 5: Estimated assessment from Year 2 (12-month budget covering January 1, 2027, through December 31, 2027, Security & Marketing and Administrative Services) Consistent with the District Management Plan, the General Benefit-Security Services is 5% of total Security Services, and the General Benefit-Marketing & Administration Services is 2% of total Marketing & Administration Services.
Description
Year 2 (1/1/2027-
12/31/2027)
Baseline
Budget*
Year 2 (1/1/2027-
12/31/2027)
Baseline Budget
plus 2.7%
Year 2 (1/1/2027-
12/31/2027)
Baseline Budget
plus 4.0%
Security Services Costs:
Sworn Police Services Salaries $849,658.00 $872,598.77 $883,644.32 Vehicles and Equipment $24,163.00 $24,815.40 $25,129.52 Office Space Lease for Police
Personnel $39,198.00 $40,256.35 $40,765.92
Supplies $11,032.00 $11,329.86 $11,473.28
Total Security Services Costs $924,051.00 $949,000.38 $961,013.04 Marketing & Administration Services Costs:
Marketing Services $110,500.00 $113,483.50 $114,920.00
Administration Costs $140,950.00 $140,950.00 $140,950.00 Marketing & Administration
Contingency $50,000.00 $51,350.00 $52,000.00
Less Prior Year Rollover Funds $0.00 $0.00 $0.00
Total Marketing & Administration
Services Costs $301,450.00 $305,783.50 $307,870.00
Total PBID Costs $1,225,501.00 $1,254,783.88 $1,268,883.04 *The Year 2 Baseline Budget does not include renewal fees and interim management costs Estimated Assessment
Year 2 (1/1/2027-
12/31/2027)
Baseline
Budget*
Year 2 (1/1/2027-
12/31/2027)
Baseline Budget
plus 2.7 %
Year 2 (1/1/2027-
12/31/2027)
Baseline Budget
plus 4.0 %
Total PBID Costs $1,225,501.00 $1,254,783.88 $1,268,883.04 General Benefit-Security Services ($46,202.23) ($47,449.69) ($48,050.32) General Benefit-Marketing &
Administration Services ($6,029.00) ($6,115.67) ($6,157.40) Total Estimated Special
Assessment $1,173,269.77 $1,201,218.52 $1,214,675.32
Agenda Item No. 4.1
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The City Council will vote on and approve the Year 2 assessment (2.7% or 4% assessment).
FISCAL IMPACT
The Year 2, 4% option will pay for $961,013.04 security services provided by the Union City Police Department. This option will also pay for approximately $20,000 of City services, identified in the Annual Report as City Administration Fees.
To meet the total PBID budget, the City must contribute $48,050.32 for general benefitsecurity services and $6,157.40 for general benefit-Marketing & Administration Services.
These contributions will be made by the General Fund and are included in the City’s FY2026-2027 adopted budget.
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt a Resolution approving the Union Landing Property and Business Improvement District Annual Report with a four percent (4%) budget increase, and amending the City of Union City Revised Budget as necessary for consistency; and
2. Adopt a Resolution ordering the levy and collection of the annual assessment for the Union Landing Property and Business Improvement District with a four percent (4%) budget increase, for Fiscal Year 2026-2027 to fund services in Calendar Year 2027.
Prepared by: Gloria Ortega, Economic Development Manager Submitted by: Carmela Campbell, Economic and Community Development Director Attachments:
1. Draft Resolution - Approving the Union Landing Property and Business Improvement District Annual Report
Exhibit A – Union Landing Property Owners Association Annual Report (July 1, 2025 – December 31, 2026)
2. Draft Resolution - Ordering the Levy and Collection of Assessments for the Union Landing Property and Business Improvement District
Exhibit A - Union Landing Property and Business Improvement District Annual Assessment Roll (4.0% budget increase)
3. Alternate Exhibit A - Union Landing Property and Business Improvement District Annual Assessment Roll (2.7% budget increase)
4. Union Landing Property and Business Improvement District Management Plan