RESOLUTION NO. 2025-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY
AWARDING A CONTRACT TO GILLIG, LLC, FOR THE PURCHASE OF SEVEN (7) COMPRESSED NATURAL GAS (CNG) THIRTY-FIVE FOOT (35’) HEAVY-DUTY FIXED-ROUTE TRANSIT VEHICLES (BUSES)
THROUGH THE WASHINGTON STATE DEPARTMENT OF
ENTERPRISE SERVICES (WADES) MASTER CONTRACT NO. 06719, IN THE AMOUNT OF $6,406,547, AUTHORIZING THE CITY MANAGER TO
EXECUTE THE CONTRACT IN A FORM APPROVED BY THE CITY
ATTORNEY, AND AUTHORIZING AN AMENDMENT TO THE CAPITAL
IMPROVEMENT PLAN
WHEREAS, Union City Transit plans to replace the existing 35 heavy-duty fixedroute vehicles (buses) transit fleet that have reached, or are near, the end of their useful lives with zero-emissions vehicles; and
WHEREAS, the Washington State Department of Enterprise Services (WADES) awarded Master Contract No. 06719 for Transit Buses: Heavy Duty with Gillig, LLC (Livermore, CA) to manufacture buses for transit and public agencies, see Exhibit A; and WHEREAS, on December 14, 2018, the California Air Resources Board (CARB) implemented the Innovative Clean Transit (ICT) regulation, requiring all transit agencies to transition their bus fleets to zero-emission technologies gradually. In accordance with this regulation, Union City Transit is required to have twenty-five percent (25%) of its fixed-route bus procurements to be zero-emission by 2026; and WHEREAS, on February 25, 2020, the City Council adopted Resolution No. 5568- 20 committing to the procurement of zero-emissions Union City Transit fixed-route vehicles; and
WHEREAS, following this commitment, the City of Union City and Union City Transit have been coordinating with the Metropolitan Transportation Commission (MTC), CARB, the Alameda County Transportation Commission (Alameda CTC), and the Federal Transit Administration (FTA) on the funding opportunities to convert the City’s CNG fixedroute buses to battery electric buses (BEB). Union City Transit staff were able to secure both an FTA Section 5307 formula funding grant and an FTA Section 5339(c) Low or No Emission Vehicle (Low-No) discretionary grant for fixed-route BEBs; and WHEREAS, on January 10, 2023, the City Council adopted Resolution No. 6067- 23 awarding a contract to Gillig, LLC (Livermore, CA), for the purchase of fourteen (14) Battery Electric Thirty-Five Foot (35’) Heavy-Duty Fixed-Route Transit Vehicles (Buses) through the Washington State Department of Enterprise Services (WADES) Master Contract No. 06719, in the amount of $16,516,360; authorizing the City Manager to Execute a Contract in a Form Approved by the City Attorney; and appropriating $9,316,360 to City Project No. 21-08; and.
WHEREAS, on Friday, August 22, 2025, staff was informed through FTA that the Section 5339(c) discretionary grant application would not be approved for purchase of zero-emissions buses unless Union City Transit agreed to change propulsion engine types to satisfy the new federal administration’s definition of clean air vehicles and that Resolution No. 2025-XXX
Authorize Agreement with Gillig, LLC, for purchase of CNGs
the only viable option for Union City Transit was to procure Compressed Natural Gas (CNG) buses as opposed to the six (6) Battery Electric Buses (BEB) planned to be purchased with the Section 5339(c) funds; and
WHEREAS, with the federal fiscal year deadline of September 30, 2025, rapidly approaching, Union City Transit staff moved quickly to avoid the risk of losing funds for the bus procurement and successfully modified the grant funding obligation application to comply with the new requirements; and
WHEREAS, on September 23, 2025, the FTA approved the obligation of FTA 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 for improvements to the Corp Yard where the buses are parked, see Exhibit B for FTA Grant Award; and
WHEREAS, on November 4, 2025, City Council adopted Resolution No. 2025-148 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 fixedroute transit vehicles (buses) (BEBs) to be purchased from fourteen (14) to eight (8), in a form approved by the City Attorney; and
WHEREAS, Union City Transit is required to comply with the federal procurement process for federal funding and can confirm that Gillig has submitted all the necessary documents for WADES, has provided a pre-award Buy America checklist to Union City Transit, and does not appear to be suspended or debarred from doing business with the federal government based on a search of the federal System for Award Management (SAM) website; and
WHEREAS, on December 9, 2025, Union City Transit received a quote from Gillig, LLC, for seven (7) thirty-five-foot (35’) CNG Low Floor Buses at a cost of $915,221 for each bus, see Exhibit C; and
WHEREAS, the total cost for the purchase of seven (7) CNG buses is $6,406,547; and
WHEREAS, the Union City Transit replacement fixed-route fleet will now include eight (8) battery-electric thirty-five-foot (35’) heavy-duty fixed-route transit buses and seven (7) thirty-five-foot (35’) CNG Low Floor buses, totaling fifteen (15) new buses; and WHEREAS, Union City Transit seeks to expedite the procurement of the CNG buses before the ICT regulation requiring twenty-five percent (25%) of all bus procurements to be zero-emission technology takes effect on January 1, 2026, as there are currently no identified funding options for BEBs to meet the requirement after this date (competitive state or regional funding sources will be likely be oversubscribed with the current federal administration no longer issuing discretionary awards for zero-emission technology); and
Resolution No. 2025-XXX
Authorize Agreement with Gillig, LLC, for purchase of CNGs
Resolution No. 2025-XXX
Authorize Agreement with Gillig, LLC, for purchase of CNGs
WHEREAS, there is $6,406,547 available in FTA 5339(c) Discretionary Grant No.
CA-2025-277-00 totaling $10,888,882, which includes $9,342,346 of federal funds and $1,546,536 of Transportation Development Act (TDA) fund; and WHEREAS, the purchase of the seven (7) CNG buses, in an amount up to $6,406,547, will be funded from the FTA Section 5339(c) Low-No Emission Grant in the amount of $10,888,882 in the Capital Projects Grants Fund (Account Number 41092108- 57140) and there are sufficient funds available for this purchase, as identified in the approved Five-Year Capital Improvement Plan (CIP) for Fiscal Years 2025-2026 through Fiscal Year 2029-2030.
.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Union City hereby awards a contract to Gillig, LLC, of Livermore, CA, for the purchase of seven (7) Compressed Natural Gas (CNG) thirty-five-foot (35’) heavy-duty fixed-route transit vehicles (buses) through the Washington State Department of Enterprise Services (WADES) Master Contract No. 06719, in the amount of $6,406,547; and BE IT FURTHER RESOLVED that the City Council of Union City hereby authorizes the City Manager to execute a contract with Gillig, LLC, in a form approved by the City Attorney; and
BE IT FURTHER RESOLVED that the City Council of the City of Union City hereby approves the amendment of the approved Five-Year Capital Improvement Plan (CIP) for Fiscal Years 2025-2026 through Fiscal Year 2029-2030 by changing the name of Project 50 from “Transit Heavy-Duty Battery Electric Vehicle Procurement” to “Transit HeavyDuty Vehicle Procurement”.
Resolution No. 2025-XXX
Authorize Agreement with Gillig, LLC, for purchase of CNGs
Resolution No. 2025-XXX
Authorize Agreement with Gillig, LLC, for purchase of CNGs
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a special meeting held on December 16, 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 – WADES Master Agreement with Gillig, LLC
2. Exhibit B – FTA Grant Award
3. Exhibit C – Quote for CNG Bus Purchase