Adopt A Resolution Authorizing 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)
Steve Adams, Union City Transit Manager
City Manager Report- Item 4.1
November 4, 2025 – City Council Meeting
(Special Meeting)
2 • On February 25, 2020, the City Council approved Resolution No. 5568-20, committing to the procurement of ZeroEmissions Union City Transit Fixed-Route Vehicles. • On September 2, 2022, the Federal Transit Authority (FTA) awarded $6,336,138 in Section 5307 (formula) of capital grant funds to UC Transit for purchase of thirty-five-foot (35’) fixed-route battery-electric buses (BEB) zero- missions replacement vehicles
UC Transit Fleet Replacement Project
3 • Metropolitan Transportation Commission (MTC) programmed AB664 bridge toll revenues, in the amount of $343,242 as part of the local match for the purchase of the battery-electric buses (BEB)s
• At about the same time, Federal Transit Authority (FTA) informed UC Transit award of Section 5339 (c) discretionary funds approximately $8.0 million to purchase BEBs and to build the required infrastructure improvements at the Corp Yard to fuel them.
UC Transit Fleet Replacement Project
4 • UC Transit has been working with FTA to modify a previous awarded Section 5307 (formula) capital funds to use
$800,000 of the $1.2 million grant towards the purchase of the BEBs.
• On January 10, 2023, the City Council approved Resolution No. 6067-23, authorizing the City to enter into an agreement with Gillig, LLC, to purchase of fourteen (14) fixed-route battery-electric buses (BEB)s in the amount of $16,516,360.
UC Transit Fleet Replacement Project
5 • After the execution of the Gillig, LLC agreement, UC Transit had begun working with FTA on the Section 5339(c)
discretionary grant application and expected these funds to be obligated before the September 30, 2025 deadline.
UC Transit Fleet Replacement Project
6 • On April 1, 2025, UC Transit & Gillig, LLC,
amended their Agreement to extend the term of
the Agreement including allowing Gillig, LLC, to
file and submit for Hybrid and Zero-Emission
Truck and Bus Voucher Incentive Project (HVIP)
vouchers to CARB for the BEBs.
• HVIP vouchers would bring the price of each BEB
down by $138,000 totaling $1,932,000 for
fourteen (14) BEBs at the time.
UC Transit Fleet Replacement Project
7 • UC Transit’s fourteen (14) BEBs with Gillig,
LLC, were scheduled to enter production in
October 2025.
• In January 2025, the new presidential
administration immediately began implementing
regulatory changes.
• UC Transit’s Low-No discretionary funds were
pending approval for obligation in July 2025.
UC Transit Fleet Replacement Project
8 • On August 22, 2025, FTA staff advised UC Transit staff that the discretionary grant funds were unlikely be approved by current federal administration for BEBs and to reconsider switching back to CNG vehicles
• UC Transit staff quickly modified the grant application in late August 2025 to meet the FTA obligation deadline of September 30, 2025, or risk losing all the funds associated with the grant award.
• On September 23, 2025, FTA approved and obligated the Low-No discretionary funds for seven (7) CNG buses instead of six (6) BEBs.
UC Transit Fleet Replacement Project
9 • UC Transit FTA formula funds originally covered eight (8) of the fourteen (14) BEBs resulting in a shortfall for six (6) BEBs because of the loss of FTA discretionary funds.
• On October 20, 2025, Gillig, LLC, presented a solution to Union City whereby they would allow UC Transit to cancel the six (6) of the fourteen (14) BEBs without penalty followed by a request letter by the City Manager dated October 21, 2025, to Gillig, LLC confirming this solution.
UC Transit Fleet Replacement Project
10 • October 2025 BEB Procurement
• Eight (8) BEBs instead of (14) BEBs
• Cost now $8,501,822 instead of $16,516,360
• HVIP now $1,104,000 instead of $1,932,000
• Fully Funded
• Low-No Discretionary CNG Procurement
• Seven (7) CNGs instead of six (6) BEBs
• Subject to ICT Regulation effective 01/01/26
• CNG Buses Fully Funded, ZEB Not Funded
• Needs Quote and New Contract
• New buses expected in early 2029
UC Transit & Bus Procurement Funds
11 • Approve Second Amendment to Agreement C5942 with Gillig, LLC, to purchase (8) thirty-five-foot (35’) fixed-route BEBs • Take delivery of eight (8) BEBs in late November 2025. • Get quotes for EV fuel Station and mobile EV chargers to initiate procurement contracts for upcoming city council action. • Get quote for new CNG buses to initiate procurement contract for upcoming city council action.
• Investigate ZEB waiver with CARB for ICT Regulation.
UC Transit Next Steps
12 Staff Recommends:
Adopt a resolution authorizing the City Manager to
execute the Second Amendment to the Agreement with
Gillig, LLC, reducing the number of battery-electric thirtyfive-foot (35’) heavy-duty fixed-route transit vehicles (buses) (BEBs) to be purchased from fourteen (14) to
eight (8), in a form approved by the City Attorney.
UC Transit Fleet Replacement Project