City Council Staff Report Page 1 of 2 February 24, 2026 Staff Report
Agenda Item No. 4.7
DATE: February 24, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Authorizing City Staff to File Annual Funding Applications with the Metropolitan Transportation Commission for the Allocation of Funds for the Operation of Union City Transit Services for Fiscal Year 2025-2026
EXECUTIVE SUMMARY
Staff recommends the City Council adopt a resolution authorizing City staff to file annual funding applications with the Metropolitan Transportation Commission (MTC) for the allocation of funds for the operation of Union City Transit services for Fiscal Year 2025- 2026.
STRATEGIC PLAN ALIGNMENT
There is no direct alignment with the Strategic Plan goals.
BACKGROUND
The State’s Transportation Development Act (TDA), through the Local Transportation Fund (LTF), and State Transit Assistance (STA), provide the two (2) main sources of funding for public transportation providers throughout the state, including the City of Union City – Union City Transit. The LTF funds are derived from a quarter cent ($0.0025) of the seven-and-a-quarter cent ($0.0725) retail sales tax collected statewide. The STA funds are derived from the statewide sales tax on gasoline and diesel fuel. Both TDA and STA funds are apportioned through MTC.
DISCUSSION
Union City Transit may claim these funds annually to meet operating, planning, and capital requirements. Unclaimed and/or unused funds are rolled over for future transit operating needs or are set aside to fund large upcoming transit capital projects. Both TDA and STA funds will be claimed to operate the City’s local transit provider, Union City Transit, including fixed-route transit, Americans with Disabilities Act (ADA) complementary paratransit, and microtransit services. The estimated total application amounts for these funds are as follows (fixed-route, paratransit, and microtransit combined), based on Agenda Item No. 4.7
City Council Staff Report Page 2 of 2 February 24, 2026 current allocation estimates:
TDA $6,064,304
TDA Capital $1,248,106
STA $1,018,651
Total $8,331,061
A portion of Union City Transit’s allocation forms is included in Attachment 1 for budgetary reference.
FISCAL IMPACT
The TDA and STA funding sources, along with anticipated passenger fares and other revenues (including Alameda County Transportation Commission Measure BB, Federal Transit Administration, and Low Carbon Transit Operations Program), will fully fund Union City Transit services for FY 2025-2026.
There will be no impact on the General Fund.
RECOMMENDATION
Staff recommends the City Council adopt a resolution authorizing City staff to file annual funding applications with the MTC for the allocation of funds for the operation of Union City Transit services for Fiscal Year 2025-2026.
Prepared by: Steve Adams, Transit Manager
Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Attachment 1 – Section F Allocation Request Forms
2. Draft Resolution