City Council Staff Report Page 1 of 5 February 10, 2026 Staff Report
Agenda Item No. 5.2
DATE: February 10, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Accepting $16,728,000 from the Regional Measure 3 Dumbarton Corridor Improvements Program of the Metropolitan Transportation Commission, Increasing the Revenue Projection in the Capital Projects Grants Fund by $16,728,000, and Appropriating the $16,728,000 to the Quarry Lakes Parkway Project, City Project No. 18-04
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution accepting $16,728,000 from the Regional Measure 3 Dumbarton Corridor Improvements Program of the Metropolitan Transportation Commission (MTC), increasing the revenue projections in the Capital Projects Fund by $16,728,000, and appropriating the $16,728,000 to the Quarry Lakes Parkway, City Project No. 18-04.
STRATEGIC PLAN ALIGNMENT
This agenda item is in alignment with the following:
Goal C, Strategy 2: Economic, Community Development, and Public Safety – Facilitate the build-out of the greater Station District Area through the construction of the Quarry Lakes Parkway, completion of the pedestrian rail crossing, and implementation of the recommendations of the Southern Alameda County Regional Rail Integration Study to make the Station District a passenger rail hub served by ACE.
Goal D, Strategy 2: Environmental Sustainability and Infrastructure – Implement the City’s capital improvement plan.
BACKGROUND
MTC, a regional planning agency, has been designated as the federal Metropolitan Planning Organization (MPO) and the state Regional Transportation Agency (“RTPA”) for the San Francisco Bay Area. At designated times, MTC receives available regional, state, and federal funds as an MPO and RTPA, and, in turn, provides these funds to local agencies for planning and programming transportation, transit, land use, or other projects Agenda Item No. 5.2
City Council Staff Report Page 2 of 5 February 10, 2026 relevant to MTC or its statutory purposes (the “Project” or “Projects”).
SB 595 (Chapter 650, Statutes 2017), commonly referred to as Regional Measure 3 (RM 3), identified projects eligible to receive funding under the Regional Measure 3 Expenditure Plan. Voters in 2018 approved the Regional Measure 3 Expenditure Plan (RM 3) to finance $4.45 billion for highways and transit improvements through an increase of tolls of $1.00 on the region’s seven (7) state-owned toll bridges, including the San Francisco-Oakland Bay Bridge, the San Mateo-Hayward Bridge, the Dumbarton Bridge, the Richmond-San Rafael Bridge, the Benicia-Martinez Bridge, the Carquinez Bridge and the Antioch Bridge.
MTC is responsible for funding projects eligible for RM 3 funds, pursuant to Streets and Highways Code Section 30914.7(a) and (c), and the Alameda County Transportation Commission (Alameda CTC) is the sponsor of the Dumbarton Corridor Improvements Program project in the RM 3 Expenditure Plan.
The Regional Measure 3 Expenditure Plan identifies corridor improvements under Corridor-Specific Capital Projects. Under the South (San Mateo-Hayward, Dumbarton) list of projects, $130 million has been programmed for the Dumbarton Corridor Improvements
The statute description for the Dumbarton Corridor Improvements states:
“Funding planning, environmental review, design and construction of capital improvements with the Dubarton Bridge and rail corridors in the Counties of Alameda and San Mateo to relieve congestion, increase person throughput, and offer reliable travel times. Eligible projects include, but are not limited to, the projects recommended in the Dumbarton Corridor Transportation Study and improvements to facilitate rail and transit connectivity among the Altamont Commuter Express, Capitol Corridor, and Bay Area Rapid Transit, including rail connection at the Shinn Station. The project sponsors are the Bay Area Toll Authority, Alameda County Transportation Commission, San Mateo County Transit District, and the San Mateo County Transportation Authority.” The Quarry Lakes Parkway Project meets the statute language for the RM 3, Dumbarton Corridor Improvements program funds. Also, the project is identified in Alameda CTC’s Countywide Transportation Plan (CTP) and MTC’s Plan Bay Area (PBA) 2050 Plus.
The Dumbarton Corridor Improvements Program – Quarry Lakes Parkway, City Project No. 18-04, was eligible for consideration in the RM 3 Expenditure Plan, as identified in California Streets and Highways Code Section 30914.7(a).
On June 24, 2024, MTC unanimously approved the staff recommendation for programming $130.0 million to projects in Alameda and San Mateo County and approved Resolution No. 4411 for the Dumbarton Corridor Improvement Program. With the award of $28.0 million to Union City projects, $25.0 million for Quarry Lakes Parkway, and $3.0 million for the Union City BART East Entrance and At-Grade Crossing.
Agenda Item No. 5.2
City Council Staff Report Page 2 of 5 February 10, 2026 Agenda Item No. 5.2
City Council Staff Report Page 3 of 5 February 10, 2026
DISCUSSION
On July 8, 2025, the City Council adopted Resolution No. 2025-097, authorizing the City Manager to submit an Allocation Request for $25.0 million to MTC for the Regional Measure 3 Dumbarton Corridor Improvements Program and accepting Alameda County Transportation Commission’s designation of the City of Union City as the Implementing Agency for the Quarry Lakes Parkway, City Project No. 18-04.
On September 25, 2025, the City Council received a report on the Revised Funding Allocation Request to MTC from the Regional Measure 3 Dumbarton Corridor Improvement Program for the Quarry Lakes Parkway Project, City Project No. 18-04, see Exhibit A for Presentation.
On December 11, 2025, the Alameda County Transportation Commission (Alameda CTC) approved Resolution No. 25-009 Designating the City of Union City as the Implementing Agency for the Subproject of the Dumbarton Corridor Improvements Project–Quarry Lakes Parkway Project (RM 3 Subproject #17.5), see Exhibit B for Alameda CTC Resolution.
On December 17, 2025, MTC approved Resolution No. 4660 for the allocation of Regional Measure 3 Dumbarton Corridor Improvement project (RM 3 Project#17) sponsored by Bay Area Toll Authority, Alameda County Transportation Commission, San Mateo County Transit District and the San Mateo Transportation Authority and includes allocation of $16.73 million in RM 3 funds to the City of Union City for the construction of Quarry Lakes Parkway Project (RM 3 Project #17.5), see Attachment 1 for MTC RM 3 Project Summaries and Exhibit C for MTC Resolution. The approved allocation for Quarry Lakes Parkway (QLP), RM 3 Project #17.5 in the amount of $16,728,000 is summarized below:
MTC Allocation for RM 3 Subproject #17.5
Quarry Lakes Parkway Project
QLP, Phase 1 Final Design $2,578,000
QLP, Phase 1A-Temporary Bus Facility Construction 1,000,000 QLP, Phase 2, Right of Way 150,000
QLP, Phases 1-4, Off-Site Mitigation Construction 13,000,000 Total $16,728,000
The remaining $8,272,000 of the $25.0 million in RM 3 funds programmed for the construction of Quarry Lakes Parkway, Phase 1, will be approved as part of a future allocation request.
On January 27, 2026, Public Works received the approved Allocation of RM 3 Funds for FY 2025-26 Letter #01 from MTC for Quarry Lakes Parkway, totaling $3,728,000 for Quarry Lakes Parkway (RM 3 Project #17.5) for Phase 1 Final Design ($2,578,000), Phase 1A -Temporary Bus Facility Construction on Block 6 ($1,000,000) and Phase 2, Right of Way ($150,000), see Exhibit D.
Agenda Item No. 5.2
City Council Staff Report Page 4 of 5 February 10, 2026 On the same day, Public Works received the approved Allocation of Regional Measure 3 (RM 3) Funds for FY 2025-26 Letter #02 from MTC in the amount of $13,000,000 for Quarry Lakes Parkway (RM 3 Project #17.5) for the Offsite Mitigation Construction for Phases 1-4 within Union City, see Exhibit E.
The acceptance of the new RM 3 funds for QLP, Phase 1 Final Design will be followed by a separate City Council resolution to authorize the City Manager the Fifth Amendment to the Consulting Services Agreement with Mark Thomas & Company, inc. to increase their contract amount by $2,578,000 to complete the Plans, Specifications and Estimate (PS&E) for advertisement and award in 2027.
FISCAL IMPACT
Union City will receive $16,728,000 from the Regional Measure 3 Dumbarton Corridor Improvements Program grant funds for Quarry Lakes Parkway, City Project No. 18-04, and these funds will be accounted for in the Capital Projects Grants Fund (Fund 410).
This will be in addition to the $6,270,000 adopted by the City Council for FY 2025-2026, detailed below:
Union City Project No. 18-04
Quarry Lakes Parkway (Phases 1-4)
FY 2025-2026
Adopted Budget
Fund 250-State Gas Tax Fund $100,000
Fund 251-SB 1 Road Maint & Rehab Fund 500,000
Fund 264-Measure BB (2014) Fund 200,000
Fund 266-DIPSA Development Fund 100,000
Fund 267-Measure BB Bike & Ped Fund 75,000
Fund 410-Capital Projects Grants Fund 3,995,000
Fund 416-Public Improvements Fund 1,300,000
Total $6,270,000
City Council action is necessary to amend the Capital Projects Grants Fund (Fund 410) budget for FY 2025-2026, as detailed below and in the attached resolution, as a result of accepting this additional funding.
There is no impact on the General Fund.
Agenda Item No. 5.2
City Council Staff Report Page 4 of 5 February 10, 2026 Agenda Item No. 5.2
City Council Staff Report Page 5 of 5 February 10, 2026
RECOMMENDATION
Staff recommends that the City Council adopt a resolution:
1. Accepting $16,728,000 from the Regional Measure 3 Dumbarton Corridor Improvements Program of the Metropolitan Transportation Commission (MTC) and authorizing the use of those funds for the Quarry Lakes Parkway, City Project No. 18-04; and
2. Amending the FY 2025-2026 Capital Projects Grants Funds revenue budget by increasing the revenue projection in Account Number 410-91804-44502 (Capital Projects Grants Fund – Quarry Lakes Parkway Project – Misc. County/Local Grants) by $16,728,000; and
3. Amending the FY 2025-2026 Capital Projects Grants Fund expenditure budget by appropriating an additional $16,728,000 to Account Number 410-91804-57128 (Capital Projects Grants Fund – Quarry Lakes Parkway Project – Street Improvements) for the Quarry Lakes Parkway Project, City Project No. 18-04.
Prepared by: Marilou Ayupan, Public Works Director
Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Attachment 1 – MTC RM3 Project Summaries
2. Draft Resolution
3. Exhibit A – September 25, 2025 Presentation
4. Exhibit B – Alameda CTC Reso No. 2025-097
5. Exhibit C– MTC Resolution No. 4660
6. Exhibit D – MTC Allocation Letter #01
7. Exhibit E – MTC Allocation Letter #02