DATE: April 21, 2026
TO: Mayor and City Council
FROM: Director of Public Works
SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute the Alameda County Transportation Commission Master Programs Funding Agreement for Measure B, Measure BB, and Vehicle Registration Fee Direct Local Distribution Funds
RECOMMENDATION
That the City Council a dopts a Resolution Authorizing the City Manager to Execute the Alameda County Transportation (CTC) Commission Master Programs Funding Agreement s for Measure B, Measure BB, and Vehicle Registration Fee (VRF) Direct Local Distribution (DLD) Funds.
SUMMARY
The current Alameda CTC Master Programs Funding Agreements (MPFAs), executed in 2016, allow the City to receive disbursements of Measure B/BB/VRF DLD from Alameda CTC.
These distributions provide support to locally identified transportation improvements among the City’s local transportation, bicycle and pedestrian, mass transit, and paratransit programs. The MPFAs are set to expire on June 30, 2026.
Alameda CTC and the City will enter into new MPFAs containing updated I mplementation Guidelines (Attachment V). These MPF As will ensure continued and uninterrupted distribution of DLD funds. The City will enter into two DLD MPFAs: A ten-year MPFA for the Measure BB and VRF DLD Program (Attachment III) and a one-year MPFA for the Measure B DLD Program (Attachment IV).
FISCAL IMPACT
This item does not impact the General Fund or Measure C . These external funding sources fund programs and projects that would otherwise require funding from the General Fund.
Execution of the MPFA prior to June 30, 2026, will allow uninterrupted flow of transportation-specific funds from Alameda CTC to the City from Measure BB, and VRF Direct
Local Distributions. The table below illustrates the estimated funds provided by each program for FY26.
Funding Source Local Streets & Roads Bicycle & Pedestrian Paratransit Measure BB1 $6.10 million $1.08 million $2.04 million
VRF2 $703,000 - -
Since Measure B sunset on March 31, 2022, the City is no longer receiving Measure B DLD funds. The Measure B MPFA will only be required if a DLD recipient has an existing DLD balance as of June 30, 2025 , such as City of Hayward , and will allow the City to continue to use the remaining balance up till June 30, 2027.
BACKGROUND
Alameda County voters approved Measure B funds in November 2000, and collection of the sales tax began on April 1, 2002. Agreements were executed with transit agencies, Alameda County, and local jurisdictions to receive Measure B pass through funds for fou r types of programs: bicycle and pedestrian; local streets and roads; mass transit; and paratransit.
Voters also approved the Measure F Alameda County VRF program on November 2, 2010.
The additional annual $10 per vehicle fee generates about $11 million per year countywide.
Voters approved Measure BB funds on November 4, 2014. Measure BB renewed the 0.5% Measure B transportation sales tax approved in 2000 and increased the tax by an additional
0.5%, resulting in a 1% sales tax throughout Alameda County dedicated to transportation expenses. The thirty -year plan proposed $7.8 billion in spending to improve and maintain transportation infrastructure and systems in the county.
These distributions provide support to locally identified transportation improvements among the City’s local transportation, bicycle and pedestrian, mass transit, and paratransit programs. Alameda CTC is responsible for the distribution of revenues generated through the Measure B, Measure BB, and the VRF p rograms. Over half of these revenues are distributed by formula directly to local jurisdictions, including the City of Hayward, to support locally managed transportation, bicycle and pedestrian, transit, and paratransit programs. These funds can only be used on transportation-related expenditures. To receive Measure B/BB/VRF D LD funds, the City is required to maintain a MPFA with the Alameda CTC. The MPFA identify the roles and responsibilities related to the DLD expenditures.
The current MPFA was approved by City Council on May 24, 2016 and executed on July 1, 2016. It enabled continued disbursement of Measure B/BB/VRF DLD funds through June 30, 2026. With the expir ation date approaching and to ensure continued and uninterrupted distribution of formula funds, Alameda CTC intends to execute a new MPFA with local jurisdictions, including the City of Hayward, by June 30, 2026.
1 https://www.alamedactc.org/wp-content/uploads/2026/02/FY25-26_Updated_Sales_Tax_Projections_01.2026.pdf 2 https://www.alamedactc.org/wp-content/uploads/2025/09/VRF_FY25-26_Projections_20250910.pdf
DISCUSSION
The proposed DLD MPFA contains no significant changes to the existing 2016 MPFA. Minor updates were made by Alameda CTC to correct outdated references and to separate Measure B from the Measure BB/VRF requirements. The City will enter into both of the DLD MPFAs:
A ten-year MPFA for the Measure BB and V RF DLD Program and a one- year MPFA for the Measure B DLD Program.
The 2016 MPFA included performance metrics pertaining to the use of DLD administered funds. The DLD performance metrics for the proposed MPFA has been updated to reflect current best practices and available data. The performance metrics reflect quantifiable data of universal investments such as the pavement condition index (PCI) for streets and roads, quantities of sidewalk or bike facility improvements, transit ridership, and trips provided/individuals served. The performance metrics serve to provide Alameda CTC information on service availability, service reliability, community impact, financial accountability, and delivery performance of projects and programs.
ECONOMIC IMPACT
The City currently uses DLD funds to fund various projects, operations, and maintenance of transportation infrastructure and programs. Ensuring the continued and uninterrupted flow of these funds will contribute to the modernization of the City’s transportation infrastructure and ensure it is kept in a state of good repair . This economically benefits all residents and regional commuters who rely on the City’s transportation infrastructure in their daily lives.
STRATEGIC ROADMAP
This agenda item supports the Strategic Priority of Invest in Infrastructure. This item is not specifically related to a project identified in the Strategic Roadmap. Staff is bringing forth this new item because it will allow disbursements of funds to the City to support many of the projects within the Invest in Infrastructure category.
SUSTAINABILITY FEATURES
Measure B, BB, and VRF DLD funds are used for funding various Transportation- related Public Works projects in the City. Many of these projects will support active transportation, transit, and the efficient flow of traffic, which will reduce greenhouse gas emissions.
PUBLIC CONTACT
The Alameda CTC presented the MPFA Implementation Guidelines before appropriate Almeda CTC Committees, which provide oversight on funds. On February 26, 2026, the Alameda CTC adopted the final MPFAs and Implementation Guidelines.
NEXT STEPS
If Council approves staff recommendations, the MPFAs will be executed by the City Manager prior to June 30, 2026 to ensure that Measure BB/VRF DLD funds continue to flow to the City and to ensure City’s ability to continue to utilize the remaining Measure B balance up till June 30, 2027.
Prepared by: Byron Tang, Principal Transportation Engineer Elli Lo, Senior Management Analyst
Recommended by: Alex Ameri, Director of Public Works
Approved by:
______________________________
Jennifer Ott, City Manager