RESOLUTION NO. 2026-XXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UNION CITY
AUTHORIZING THE CITY MANAGER TO EXERCISE THE SECOND
OPTION YEAR TO THE OPERATIONS AND MAINTENANCE
AGREEMENT WITH MV TRANSPORTATION, INC., FOR UNION CITY
TRANSIT (FIXED-ROUTE, PARATRANSIT, AND MICROTRANSIT),
WITH A SECOND OPTION YEAR NOT-TO-EXCEED AMOUNT OF
$8,157,217, AND AUTHORIZING THE CITY MANAGER TO EXECUTE
THE CONTRACT AMENDMENT IN A FORM APPROVED BY THE CITY
ATTORNEY
WHEREAS, on March 13, 2023, the City Council adopted Resolution No. 6096- 23, awarding the Operation and Maintenance Agreement with MV Transportation, Inc., of Dallas, Texas, to operate Union City Transit services after a competitive bid process; and WHEREAS, the base period of the Agreement, C5948, was for twenty-one (21) months beginning April 1, 2023, through December 31, 2024, for four (4) types of transportation services:
• Union City Transit: Fixed-Route bus service in Union City • Union City Paratransit: Americans with Disabilities Act (ADA) complementary service in Union City and Paratransit Plus non-ADA service to parts of Fremont, Hayward, and Newark
• Union City Flea: Zone-based on-demand microtransit service open to the general public in Union City
• Ride-On Tri-City!: Wheelchair Accessible Vehicle (WAV) service for residents of Fremont and Newark with destinations in Fremont, Newark, and Union City; and WHEREAS, on September 3, 2024, the City of Fremont awarded a contract for a multi-year pilot same-day wheelchair accessible van (WAV) service to Via Transportation, Inc., commencing on January 1, 2025, and removed Ride-On Tri-City! from the option years in Union City Transit’s Agreement with MV Transportation, Inc.; and WHEREAS, on December 10, 2024, Union City Transit staff were presented with an adjusted cost proposal for contract pricing, reflecting staff who were partially funded through the Ride-On Tri-City! portion of the Agreement, but are key to Union City Transit administrative and maintenance operations; and
WHEREAS, the difference in annual costs for the first option year was approximately $199,236, and Union City Transit believed it could absorb the 2.61% increase in costs but indicated that it would need to start evaluating future option years for financial viability; and
WHEREAS, on December 30, 2024, Union City Transit staff issued a Continuation of Service letter to MV Transportation, Inc., based on the revised cost proposal; and WHEREAS, on January 28, 2025, the City Council adopted Resolution No. 2025- 019, authorizing the City Manager to exercise the first option year to the Operation and Maintenance Agreement with MV Transportation, Inc.; and Resolution No. 2026-XXX
Transit Exercising Second Option Year of Transit Operations & Maintenance Contract
WHEREAS, on November 25, 2025, Union City Transit staff were presented with an adjusted cost proposal for contract pricing due to recent new union contracts for drivers and mechanics; and
WHEREAS, on December 29, 2025, Union City Transit staff issued a Continuation of Service letter to MV Transportation, Inc., based on the revised cost proposal; and WHEREAS, Union City Transit initially awarded the contract based on a calendar year, meaning that the option years are tied to the calendar year starting on January 1 and not the fiscal year starting on July 1 because of a potential nexus with City Project No. 21-14, Dumbarton Express Service contract, administratively overseen by the Alameda-Contra Costa Transit District (AC Transit), who preferred the term to be in calendar years; and
WHEREAS, the table below shows Union City Transit’s three (3) services as they were originally approved using six (6) months of each fiscal year (FY) to create the first option year and the proposed cost changes in the same format, along with the percentage increase in the total cost:
Service Type Monthly
Fixed Fee
Monthly
Variable Fee Months Annual Totals
Percent
Increase
Fixed-Route $181,476.40 $276,464.34 6 $2,747,644.44
Paratransit $51,082.05 $72,520.41 6 $741,614.76
Original FY26 Jan-Jun
Flea $29,635.84 $42,809.03 6 $434,669.22
Fixed-Route $187,652.12 $290,366.63 6 $2,868,112.50
Paratransit $52,812.99 $76,217.59 6 $774,183.48
Original Option Year 2
Original FY27 Jul-Dec
Flea $30,640.69 $44,980.87 6 $453,729.36
Total $8,019,953.76
Service Type Monthly
Fixed Fee
Monthly
Variable Fee Months Annual Totals
Percent
Increase
Resolution No. 2026-XXX
Transit Exercising Second Option Year of Transit Operations & Maintenance Contract
Fixed-Route $184,557.49 $278,871.45 6 $2,780,573.64
Modified FY26 JanJun
Paratransit & Flea $89,398.95 $126,940.15 6 $1,298,034.60 Modified Option Year 2
Fixed-Route $184,557.49 $278,871.45 6 $2,780,573.64
Modified FY27
Jul-Dec
Paratransit & Flea $55,269.93 $67,789.47 6 $1,298,034.60 Total $8,157,216.48 1.71%
; and
WHEREAS, the difference in annual costs is approximately $137,263, and Union City Transit can absorb this 1.71% increase in costs for this second option year, but will need to implement some service changes in February 2026 to ensure financial viability, with some State of California funds becoming unreliable with the estimates provided; and WHEREAS, Union City Transit has secured or is securing funding as follows for the second option year:
• Federal Transit Administration (FTA) Section 5307 ADA Set-Aside Operating • California Transportation Development Act (TDA)
• California State Transit Assistance (STA)
• Low Carbon Transit Operations Program (LCTOP)
• Alameda County Transportation Commission (Alameda CTC) Measure BB; and WHEREAS, the second contract option period of one (1) year will be funded with $5,561,147 from the Transit Fund (Fixed-Route Account Number 511-34002-54114) and $2,596,070 for fixed-route service from the Paratransit and Transit Funds (Paratransit Account Number 512-34022-54114 and Microtransit Account Number 511-34042-54114) for demand-response services (paratransit and microtransit) for using funds from the FTA, State of California, and Alameda County, and there will be no impact to the General Fund.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Union City hereby authorizes the City Manager to exercise the second option year to the Operations and Maintenance Agreement with MV Transportation, Inc., for Union City Transit (fixed-route, paratransit, and microtransit), with a first option year not-to-exceed amount of $8,157,217.
Resolution No. 2026-XXX
Transit Exercising Second Option Year of Transit Operations & Maintenance Contract
Resolution No. 2026-XXX
Transit Exercising Second Option Year of Transit Operations & Maintenance Contract
BE IT FURTHER RESOLVED that the City Council of the City of Union City hereby authorizes the City Manager to execute the contract amendment in a form approved by the City Attorney.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of Union City at a regular meeting held on January 13, 2026, 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