Agenda Item No: N.7
AGENDA REPORT
DATE: April 7, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-49 PW Establishing Capital Project Transit Maintenance Facility Expansion within the 5-Year Capital Improvement Plan and Reallocation of Funds
Adding the Transit Maintenance Facility Expansion Project to the Capital Budget, Authorizing the Reallocation of $12.016M Federal Transit Administration Grant Funds from Phase 1A – Corporation Yard Electrification Project to the Transit Maintenance Facility Expansion Project , Approving $3.47M Local Match Using Transportation Development Act Grant Funds, Updating the 5 -Year Capital Improvement Plan to Include the Transit Maintenance Facility Expansion Project, and Authorizing an Update to the Fiscal Year 2025-2026 Budget
Funding Source: $15,486,400 ($12,016,400, Federal Transit Administration Grant;) $3,470,000, Transportation Development Act Grant)
Contact: Shaun Vigil, (707) 434-3807
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
On May 17, 2022, the City Council approved Resolution No. 2022-107 authorizing the submission of grant applications to the Federal Transit Administration (FTA ). The City applied for and was awarded a grant from the FTA, rec eiving $12.016 million through the Bus & Bus Facilities Competitive Program. The City allocated $3,000,000 in state and local funds including Transportation Development Act (TDA) funds, to meet the 20% local match requirement . The initial l scope focused on zero -emission infrastructure as part of Phase 1A – Corporation Yard Fleet Electrification Project (Electrification Project; CPW080104).
In Summer 2025, the FTA notified the City of a policy change prioritizing low-emission over zero- emission projects. This shift impacts both new and previously awarded grants, placing the City's awarded funds at risk. Staff submitted a re vised application, and the FTA approved the
reallocation of the $12.016M grant to a revised scope under a new project. This requires establishing a separate Capital Improvement Plan to effectively track funding and expenses.
DISCUSSION
On December 14, 2018, the California Air Resources Board (CARB) adopted the Innovative Clean Transit (ICT) Act requiring public transit agencies to transition to 100% zero -emission bus fleets by 2040. The Advanced Clean Fleet (ACF) Act adopted April 28, 2023, mandates medium - and heavy-duty vehicles (>8,500 lbs.) tran sition to zero -emission, with 50% of new vehicles zero - emission starting January 1, 2024 (100% by 2027), and for transit: 50% of new purchases zero - emission starting 2026 (100% by 2029).
Staff originally designed the Electrification Project to support compliance, including E lectric Vehicle (EV) Charging infrastructure, funded by the $12.016M FTA grant and $3.47M TDA local match.
Due to the recent FTA policy change, the City revised the scope to retain the grant as follows:
Replace five battery -electric buses with diesel -electric hybrids to align with low -emission initiatives, support CARB Compliance, and reduce operation costs. Acquire adjacent real property at 1336 Woolner Avenue to serve as additional space for bus storage and maintenance (addressing insufficient space at the current Corporation Yard. Incorporate workforce development and training programs focused only on hybrid vehicle maintenance and operations.
Provide engineering design for future maintenance facility upgrades.
This revis ed scope is now the Transit Maintenance Facility Expansion Project (Project; CPW080105), located at and is adjacent to 1336 Woolner Avenue. The current Corporation Yard lacks adequate bus storage: the adjacent property includes an existing structure and open parking to support storage while enhancing fleet maintenance.
The Electrification Project has proceeded separately with alternative funding sources, including a construction contract awarded to Bockmon & Woody Electric Company Inc. in December 2025 for chargers and infrastructure. Establishing this new Project and reallocating or approving funds ensures proper tracking, compliance with grant terms, and progress toward CARB goals while retaining the grant.
FINANCIAL IMPACT
The Transit Maintenance Facility Expansion Project (CPW080105) was not included in the fiscal year (FY) 2025-2026 Capital Budget. Therefore, a budget amendment is required to authorize an increase in appropriations of $15,486,400 to the Transit Fixed Route Fund (Fund 451). Funding for the Project is allocated as follows: $12,016,000 FTA grant funds that will be reallocated from the Electrification Project and $3,470,000 TDA grant funds. The reallocation preserves the FTA grant funds that were at risk. There is no impact on the General Fund.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council could choose not to adopt the resolution, which would prevent proper tracking of the reallocated grant funds, potentially jeopardize FTA compliance, delay property acquisition , bus procurement, training, and hinder CARB regulatory alignment.
COORDINATED WITH
N/A
STAFF CONTACT
Shaun Vigil Operations, Manager – Transit
(707) 434-3807
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution