RESOLUTION NO. 2025-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY
AUTHORIZING THE CITY MANAGER TO EXECUTE THE SECOND
AMENDMENT TO THE AGREEMENT WITH GILLIG, LLC, REDUCING
THE NUMBER OF BATTERY-ELECTRIC THIRTY-FIVE-FOOT HEAVYDUTY FIXED-ROUTE TRANSIT VEHICLES (BUSES) TO BE PURCHASED FROM FOURTEEN (14) TO EIGHT (8), IN A FORM
APPROVED BY THE CITY ATTORNEY
WHEREAS, on February 25, 2020, the City Council adopted Resolution No. 5568- 20, committing to the procurement of Zero-Emission Union City Transit Fixed-Route Vehicles; and
WHEREAS, Union City Transit has been coordinating with transportation funding agencies at the federal level (Federal Transit Administration or “FTA”), the state level (California Department of Transportation or “Caltrans”), the regional level (Metropolitan Transportation Commission or “MTC”), and the county level (Alameda County Transportation Commission or “Alameda CTC”) to secure grant funds to replace the existing fourteen (14) compressed natural gas (“CNG”) vehicles to zero-emission vehicles; and
WHEREAS, on September 2, 2022, the FTA awarded $6,336,138 in Section 5307 (formula) Capital funds (Grant No. CA-2022-183-00) to Union City Transit for the purchase of thirty-five-foot (35’) fixed-route zero-emissions replacement vehicles (“BEBs”); and
WHEREAS, the Metropolitan Transportation Commission (MTC) programmed AB664 bridge toll revenues, in the amount of $343,242, as part of a match for the purchase of the BEBs; and
WHEREAS, at about the same time, the FTA informed Union City Transit of the award of Section 5339(c) discretionary funds, in the amount of approximately $8.0 million, to purchase additional BEBs and to build the required infrastructure improvements at the Corporation Yard to fuel them; and
WHEREAS, Union City Transit has been coordinating with the FTA to modify previously awarded Grant No. CA-2019-110-00 for Union City Transit Section 5307 (formula) funds to use about $800,000 of the $1.2 million grant towards the purchase of the BEBs; and
WHEREAS, on January 10, 2023, the City Council adopted Resolution No. 6067- 23, authorizing the City to enter into an Agreement (C5942) (“Agreement”) with Gillig, LLC, wherein the City would procure fourteen (14) BEBs through the Washington State Department of Enterprise Services (WADES) Master Contract No. 06719, in the amount of $16,516,360; and
WHEREAS, after execution of the Gillig, LLC, Agreement, Union City Transit had begun working with the FTA on the Section 5339(c) discretionary grant application for an estimated amount of over $8.0 million, and expected these funds to be obligated before September 30, 2025 (end of the federal fiscal year), right before the manufacture of the Resolution No. 2025-XXX
Authorize Second Amendment to Agreement with Gillig, LLC, for purchase of BEBs
fourteen (14) BEBs would be completed and the vehicles delivered to Union City Transit in late 2025; and
WHEREAS, on April 1, 2025, the City and Gillig, LLC, executed the First Amendment to the Agreement (C5942-A) to both extend the term of the Agreement and to add Exhibit C, authorizing the Contractor to file and submit for Hybrid and ZeroEmission Truck and Bus Voucher Incentive Project (HVIP) vouchers to the California Air Resources Board (CARB) for the purchased BEBs; and
WHEREAS, CARB approved and assigned HVIP vouchers, in the amount of $138,000, for each of the (14) BEBs, totaling $1,932,000, with these funds being provided directly to Gillig, LLC; and
WHEREAS, starting in January 2025 with the new presidential administration, the federal government immediately began implementing regulatory changes; and WHEREAS, in August 2025, FTA staff advised the City to pursue CNG buses instead of the six BEBs that were part of the discretionary FTA Low or No Emission Grant Program (Section 5339(c)) even though these six buses were on order with Gillig; and WHEREAS, to keep the federal discretionary funds, City staff worked with FTA on the Section 5339(c) grant. Staff amended the application to remove the six BEBs and obligate the funds for CNG buses before the September 30, 2025, deadline (end of the federal fiscal year); and
WHEREAS, on September 23, 2025, FTA approved the obligation of Grant No.
CA-2025-277-00 for Union City Transit Section 5339(c) Low or No Emission Grant Program Capital Projects. in the amount of $9,342,346, with a local match of $1,546,536, totaling $10,888,882 for the purchase of seven (7) thirty-five foot (35’) CNG vehicles and improvements to the Corp Yard where the buses are parked; and WHEREAS, immediately after accepting FTA Grant No. CA-2025-277-00, Union City Transit notified Gillig, LLC, that the City only had a budget to purchase eight (8) BEBs; and
WHEREAS, on October 20, 2025, the National Sales Director of Gillig, LLC, met with the City Manager, Deputy City Manager, Public Works Director, and Transit Manager to discuss and agree on a revised scope for the Agreement (C5942) without penalty by canceling six (6) of the fourteen (14) BEBs, as noted on Exhibit A; and WHEREAS, the Parties desire to amend the Agreement to remove six (6) BEBs from the Agreement without penalty and to reduce the contract amount to $8,501,822; and
WHEREAS, the HVIP vouchers in the amount of $138,000 for each of the (8) battery-electric heavy-duty fixed route buses still apply, totaling $1,104,000, and these funds will be provided directly to Gillig, LLC; and
Resolution No. 2025-XXX
Authorize Second Amendment to Agreement with Gillig, LLC, for purchase of BEBs
WHEREAS, the revised Agreement with Gillig, LLC, in the amount of $8,501,822, is now a funded contract with $994,323 (including local matching funds) from FTA Grant No. CA-2019-110-00, $6,366,138 (including local matching funds from FTA Grant No.
CA-2022-183-00), $343,242 funds from AB664, and $1,104,000 in HVIP rebates.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Union City hereby authorizes the City Manager to execute the Second Amendment to the Agreement with Gillig, LLC, reducing the number of battery-electric thirty-five-foot (35’) heavy-duty fixed-route transit vehicles (buses) to be purchased from fourteen (14) to eight (8), in a form approved by the City Attorney.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a special meeting held on November 4, 2025, 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
Attachments:
1. Exhibit A – Letter to Gillig Cancelling 6 BEBs