RESOLUTION NO. 2026-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY
TO FORM CITY OF UNION CITY COMMUNITY FACILITIES DISTRICT NO. 2026-1 (STATION EAST FACILITIES AND SERVICES), DESIGNATE IMPROVEMENT AREA NO. 1 THEREIN AND ESTABLISH A FUTURE
ANNEXATION AREA, AND TO AUTHORIZE THE LEVY OF SPECIAL
TAXES THEREIN TO FINANCE CERTAIN PUBLIC SERVICES AND THE
ACQUISITION AND CONSTRUCTION OF CERTAIN PUBLIC FACILITIES WHEREAS, the City Council (the “City Council”) of the City of Union City (the “City”) on May 26, 2026, adopted its Resolution No. 2026-074 (the “Resolution of Intention”), stating its intention to (i) form “City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services)” (the “CFD”), (ii) designate therein “Improvement Area No. 1 of the City of Union City Community Facilities District No. 2026- 1 (Station East Facilities and Services)” (“Improvement Area No. 1”), and (iii) establish “City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services) (Future Annexation Area)” (the “Future Annexation Area”), all pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the “Act”); and
WHEREAS, the Resolution of Intention incorporates a map of the proposed boundaries of the CFD, Improvement Area No. 1, and the Future Annexation Area, which map is on file with the City Clerk and the provisions thereof are incorporated herein by this reference as if fully set forth herein; and
WHEREAS, the rate and method of apportionment of special tax for Improvement Area No. 1 is set forth as Exhibit A hereto and hereby made a part hereof, and the list of authorized services and facilities for Improvement Area No. 1 and the CFD is set forth as Exhibit B attached hereto and hereby made a part hereof; and WHEREAS, the City Council noticed a public hearing to be held on the date hereof, in accordance with the Act and the Resolution of Intention; and WHEREAS, at the hearing all interested persons desiring to be heard on all matters pertaining to the formation of the CFD, Improvement Area No. 1, and the Future Annexation Area, the services and facilities to be provided therein, and the levy of said special taxes were heard and a full and fair hearing was held; and WHEREAS, at the hearing evidence was presented to the City Council on said matters before it, including a report caused to be prepared by NBS as consultant to the City (the “Report”) as to the services and facilities to be provided in the CFD and the costs thereof and incidental expenses related thereto, a copy of which is on file with the City Clerk, and the City Council at the conclusion of said hearing is fully advised in the premises; and
Resolution No. 2026-XXX
Form CFD No. 2026-1 and Designate Improvement Area No. 1
WHEREAS, written protests with respect to the formation of the CFD and the designation therein of Improvement Area No. 1, the furnishing of specified types of services and facilities and the rate and method of apportionment of the special taxes for Improvement Area No. 1 have not been filed with the City Clerk by fifty percent or more of the registered voters residing within the territory of the CFD and Improvement Area No. 1 or property owners of one-half or more of the area of land within the CFD and Improvement Area No. 1 and not exempt from the proposed special taxes; and WHEREAS, written protests with respect to the formation of the Future Annexation Area have not been filed with the City Clerk by fifty percent or more of the registered voters residing within the territory of the proposed CFD or the proposed Future Annexation Area or property owners of one-half or more of the area of land within the proposed CFD or proposed Future Annexation Area; and
WHEREAS, the special taxes proposed to be levied in Improvement Area No. 1 to pay for the proposed services and facilities, in accordance with the rate and method of apportionment for Improvement Area No. 1 have not been eliminated by protest by fifty percent or more of the registered voters residing within the territory of Improvement Area No. 1 or the owners of one-half or more of the area of land within Improvement Area No. 1 and not exempt from the special tax.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Union City as follows:
1. The foregoing recitals are true and correct.
2. The proposed facilities special tax and proposed services special tax to be levied within Improvement Area No. 1 have not been precluded by majority protest pursuant to section 53324 of the Act.
3. The community facilities district designated “City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services)” of the City is hereby established pursuant to the Act.
The improvement area designated “Improvement Area No. 1 of the City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services)” is hereby established pursuant to the Act.
The future annexation area designated “City of Union City Community Facilities District No. 2026-1 (Station East Facilities and Services) (Future Annexation Area)” is hereby established pursuant to the Act.
4. The boundaries of the CFD, Improvement Area No. 1, and the Future Annexation Area are shown on proposed boundary map on file with the City Clerk, which was approved by the Resolution of Intention and filed for record on June 4, 2026 in the Office of the County Recorder of the County of Alameda in Book 19 at Page 67 of the Maps of Assessment and Community Facilities Districts, as Document No. 2026073720 are hereby approved, are incorporated herein by reference and shall be the boundaries of the CFD, Improvement Area No. 1, and the Future Annexation Area, respectively.
Resolution No. 2026-XXX
Form CFD No. 2026-1 and Designate Improvement Area No. 1
Parcels within the Future Annexation Area shall be annexed to the CFD only with the unanimous approval (each, a “Unanimous Approval”) of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed, without any requirement for further public hearings or additional proceedings. The City Council hereby determines that any property for which the owner or owners execute a Unanimous Approval shall be added to the CFD, either into an existing improvement area or a Future Improvement Area (defined herein), and the City Clerk shall record an amendment to the notice of special tax lien for Improvement Area No. 1 pursuant to Section 3117.5 of the Streets & Highways Code, or a new notice of special tax lien pursuant to Section 3114.5.
All or any portions of territory that annexes into the CFD from the Future Annexation Area or otherwise may be annexed into one or more separate improvement areas (each, a “Future Improvement Area”) then in existence or to be formed at the time of such annexation and no additional hearings or procedures are required. The designation of a parcel or parcels as an improvement area shall be specified and approved by the Unanimous Approval at the time that the parcel or parcels are annexed to the CFD. After the designation of a parcel or parcels as an improvement area, all proceedings for approval of an appropriations limit, the rate and method of apportionment and manner of collection of special taxes, and the authorization to incur bonded indebtedness may differ from other areas of the CFD, all as set forth in the Unanimous Approval, and shall apply only to the parcel or parcels within such improvement area.
5. The type of public facilities proposed to be financed by the CFD pursuant to the Act shall consist of those items listed as facilities, and incidental costs related thereto on Exhibit B (the “Facilities”), and the type of public services proposed to be financed by the CFD and each improvement area therein pursuant to the Act shall consist of those items listed as services on Exhibit B (the “Services”). The financing of the costs of Facilities may include, without limitation, the payment of principal of and interest on bonds together with all direct, indirect periodic, and/or other related costs (including, without limitation, costs of administering the CFD, levying the Facilities Special Tax and administering the bonds, and establishing and replenishing reserve funds).
The Council hereby determines that the Services are necessary to meet increased demands for such services placed upon the City as the result of development occurring within the area of the CFD. The Services are in addition to those provided in the territory of the CFD as of the date hereof and will not supplant services already available within the territory of the CFD as of the date hereof.
6. Facilities Special Tax and Services Special Tax.
a. Except to the extent that funds are otherwise available to the Improvement Areas to pay for the Facilities and Services, to pay the principal and interest on bonds and other debt (as defined in the Act) of the City to finance the Facilities, to the repayment of funds advanced by the City for the CFD and including the repayment under any agreement (which shall not constitute a debt or liability of the City) of advances of funds or reimbursement for the lesser of the value or cost of work in-kind provided by any person for the CFD, a facilities special tax (the “Facilities Special Tax”) and a services special tax (the “Services Special Resolution No. 2026-XXX
Form CFD No. 2026-1 and Designate Improvement Area No. 1
Tax” and together with the Facilities Special Tax, the “Special Tax”) sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non-exempt real property is intended to be levied annually and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by this City Council.
b. The proposed rate and method of apportionment of the Special Tax among the parcels of real property within Improvement Area No. 1, in sufficient detail to allow each landowner within Improvement Area No. 1 to estimate the maximum amount such owner will have to pay, is attached hereto as Exhibit A to this Resolution and hereby incorporated herein (the “Rate and Method”). The Special Tax for Improvement Area No 1 (the “Improvement Area No. 1 Special Tax”) shall not be levied in Improvement Area No. 1 after the fiscal year set forth in the Rate and Method, except that an Improvement Area No. 1 Special Tax that was lawfully levied in or before the final tax year and that remains delinquent may be collected in subsequent years. Under no circumstances shall the Improvement Area No. 1 Special Tax levied against any parcel in Improvement Area No. 1 used for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within Improvement Area No. 1 by more than 10 percent.
The proposed rate and method of apportionment of the Special Tax among the parcels of real property within a Future Improvement Area, in sufficient detail to allow each landowner within such Future Improvement Area to estimate the maximum amount such owner will have to pay, shall be set forth in the applicable Unanimous Approval. The Special Tax shall not be levied in a Future Improvement Area after the fiscal year identified in the rate and method for such Future Improvement Area, except that a special tax that was lawfully levied in or before the final tax year and that remains delinquent may be collected in subsequent years. Under no circumstances shall the special tax levied against any parcel in a Future Improvement Area for private residential purposes be increased as a consequence of delinquency or default by the owner of any other parcel or parcels within such Future Improvement Area by more than 10 percent.
For Future Improvement Areas, a different rate and method may be adopted than the Rate and Method adopted for Improvement Area No. 1 if the annexed territory is designated as a separate improvement area. No supplements to the Rate and Method for any of the Improvement Areas and no new rate and method will cause the maximum tax rate in the then-existing territory of the CFD (including Improvement Area No. 1) to increase. The designation as an improvement area of any territory annexing to the CFD, the maximum amount of bonded indebtedness and other debt for such improvement area, the rate and method of apportionment of special tax for such improvement area and the appropriations limit for such improvement area shall be identified and approved in the Unanimous Approval executed by property owners in connection with their annexation to the CFD from the Future Annexation Area. The annexation and related matters described in the Unanimous Approval shall be implemented and completed without the need for City Council approval as long as the following conditions are met:
Resolution No. 2026-XXX
Form CFD No. 2026-1 and Designate Improvement Area No. 1
(i) The rate and method of apportionment of special tax for the Future Improvement Area is prepared by a special tax consultant retained by the City.
(ii) The rate and method of apportionment of special tax for the Future Improvement Area substantially complies with the City’s local goals and policies concerning the use of the Act.
(iii) The rate and method of apportionment of special tax for the Future Improvement Area includes a mechanism that protects against revenue loss as a result of land use changes.
c. The special taxes levied within the annexation territory in the future to pay for Services to be supplied therein shall be equal to any special tax levied to pay for the same Services in the existing CFD, except that a higher or lower tax may be levied within the annexation territory to the extent that the actual cost of providing the Services in that territory is higher or lower than the cost of providing those Services in the existing CFD. Similarly, the special taxes levied within the annexation territory in the future to pay for Facilities financed with bonds that have already been issued and that are secured by the existing CFD shall be the same as the tax levied in the existing CFD for that purpose, except that a higher special tax may be levied for that purpose within the annexation territory in the future to compensate for the interest and principal previously paid by the existing CFD, less any depreciation allocable to the public facility. This paragraph shall not be construed to limit the levy of a special tax within the territory to be annexed in the future to provide new or additional Services beyond those supplied within the existing territory of the CFD, or to pay for new or additional public facilities, with or without bond financing.
d. Territory in the Future Annexation Area will be annexed into the CFD and a special tax will be levied on such territory only with the Unanimous Approval of the owner or owners of each parcel or parcels at the time that parcel or those parcels are annexed into the CFD. Except to the extent that funds are otherwise available to the CFD to pay for the Facilities and/or the principal and interest as it becomes due on bonds of the CFD issued to finance the Facilities, a Special Tax sufficient to pay the costs thereof, secured by the recordation of a continuing lien against all non-exempt real property in the Future Annexation Area, is intended to be levied annually within the Future Annexation Area, and collected in the same manner as ordinary ad valorem property taxes or in such other manner as may be prescribed by this City Council.
e. This City Council hereby finds that the provisions of Section 53313.6, 53313.7 and 53313.9 of the Act (relating to adjustments to ad valorem property taxes and schools financed by a community facilities district) are inapplicable to the proposed CFD and the Improvement Areas.
7. It is hereby found and determined that the Facilities and Services are necessary to meet increased demands placed upon local agencies as the result of Resolution No. 2026-XXX
Form CFD No. 2026-1 and Designate Improvement Area No. 1
development occurring in the CFD, Improvement Area No. 1, and the Future Annexation Area.
8. The Director of Finance of the City of Union City, 34009 Alvarado-Niles Road, Union City, California (tel: 510-675-5335) is designated as the office responsible for preparing annually a current roll of special tax levy obligations by assessor's parcel number, estimating future special tax levies and for establishing procedures to promptly respond to inquiries regarding estimates of future special tax levies. The City may contract with outside consultants to provide this service in lieu of the Director of Finance.
9. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code of California, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property in Improvement Area No. 1, and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the City ceases. Upon recordation of a notice of special tax lien pursuant to Section 3114.5 of the Streets and Highways Code of California, a continuing lien to secure each levy of the special tax shall attach to all nonexempt real property annexed to the CFD from the Future Annexation Area, and this lien shall continue in force and effect until the special tax obligation is prepaid and permanently satisfied and the lien canceled in accordance with law or until collection of the tax by the City ceases.
10. In accordance with the Act, the annual appropriations limit, as defined by subdivision (h) of Section 8 of Article XIII B of the California Constitution, shall be preliminarily established for the CFD in the amount of $38,000,000, of which the annual appropriations limit for the territory within Improvement Area No. 1 is hereby preliminarily established at $20,000,000, and the annual appropriations limit for the territory within the Future Annexation Area, once annexed to the CFD, is preliminarily established at $18,000,000. The proposition establishing said annual appropriations limit shall become effective if approved by the qualified electors voting thereon and shall be adjusted in accordance with the applicable provisions of the Act and other law.
The designation as an improvement area of any territory annexing to the CFD, the maximum amount of bonded indebtedness and other debt for such improvement area, the rate and method of apportionment of special tax for such improvement area and the appropriations limit for such improvement area shall be identified and approved in the Unanimous Approval executed by property owners in connection with their annexation to the CFD.
11. Pursuant to the provisions of the Act, the proposition of the levy of the Improvement Area No. 1 Special Tax and the proposition of the establishment of the appropriations limit for Improvement Area No. 1 specified above shall be submitted to the qualified electors of Improvement Area No. 1 at an election. The time, place and conditions of the election shall be as specified by a separate resolution of the City Council.
The qualified electors for the election to be held in these proceedings shall be the landowners owning land within the CFD. The City Council will conduct the election by mailed ballot and hereby designates the City Clerk as the official to conduct the mailedballot election.
Resolution No. 2026-XXX
Form CFD No. 2026-1 and Designate Improvement Area No. 1
12. Section 53314.9 of the Act provides that, either before or after formation of the CFD, the City may accept work in-kind from any source, including, but not limited to, private persons or private entities, may provide, by resolution, for the use of that work inkind for any authorized purpose and the City Council may enter into an agreement (an “Acquisition Agreement”), by resolution, with the person or entity advancing the work inkind, to reimburse the person or entity for the value, or cost, whichever is less, of the work in-kind, as determined by the City Council, with or without interest, under the conditions specified in the Act. Any work in-kind must be performed or constructed as if the work had been performed or constructed under the direction and supervision, or under the authority of, the City. The City Manager, the Director of Finance of the City and each other authorized officer of the City is hereby authorized and directed to enter into an Acquisition Agreement, substantially in the form attached to this Resolution as Exhibit C.
Section 53316.2 of the Act provides that a community facilities district may finance facilities to be owned or operated by a public agency other than the agency that created the district, or services to be provided by a public agency other than the agency that created the district, or any combination, only pursuant to a joint community facilities agreement or a joint exercise of powers agreement adopted pursuant to this section. The City Manager, the Director of Finance of the City and each other authorized officer of the City is hereby authorized and directed to enter into joint community facilities agreements with the County and any other entity that will own or operate any of the Facilities, as may be necessary to comply with the provisions of Section 53316.2(a) and (b) of the Act. The City Council hereby declares that such joint agreements will be beneficial to owners of property in the area of the CFD.
13. Any bonds issued in these proceedings shall be callable in accordance with the provisions of the Act and as more specifically to be set forth in any resolution providing for the form, execution and issuance of bonds.
14. This City Council now finds and determines that all proceedings up to and including the adoption of this Resolution were and are valid and in conformity with the requirements of the Act. This determination and finding is final and conclusive in accordance with Government Code Section 53325.1.
15. This Resolution shall take effect immediately upon its adoption.
Resolution No. 2026-XXX
Form CFD No. 2026-1 and Designate Improvement Area No. 1
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on July 14, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
APPROVED:
GARY SINGH
Mayor
ATTESTED: APPROVED AS TO FORM:
THAI NAM N. PHAM
City Clerk
KRISTOPHER J. KOKOTAYLO
City Attorney