City Council Staff Report Page 1 of 3 February 24, 2026 Staff Report
Agenda Item No. 4.8
DATE: February 24, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Accepting $50,000 from the Transportation Fund for Clean Air, Administered by the Alameda County Transportation Commission, Amending the Fiscal Year 2025-2026 Capital Projects Grants Fund Budget, and Authorizing the City Manager to Execute the Project Funding Agreement for the Dyer Street Pavement Rehabilitation Project Phase II, City Project No. 26-38
EXECUTIVE SUMMARY
Staff recommends the City Council adopt a resolution accepting $50,000 from the Transportation Fund for Clean Air (TFCA), administered by the Alameda County Transportation Commission (Alameda CTC), amending the Fiscal Year 2025-2026 Capital Projects Grants Fund Budget, and authorizing the City Manager to execute the Project Funding Agreement, in a form approved by the City Attorney, for the Dyer Street Pavement Rehabilitation Project Phase II, City Project No. 26-38.
STRATEGIC PLAN ALIGNMENT
This agenda item is aligned with the following:
Goal D, Strategy 2: Environmental Sustainability and Infrastructure – Implement the City’s capital improvement plan.
Goal D, Strategy 9 Environmental Sustainability and Infrastructure – Transition the UC Transit fleet to zero emissions.
BACKGROUND
The 2021 Bicycle & Pedestrian Master Plan (BPMP) update identified Dyer Street as a strategic corridor for bicycle infrastructure improvement. Though improvements were partially made in 2022 through the Dyer Street Pavement Rehabilitation Project Phase I, the section of Dyer Street between Deborah Drive and Union City Boulevard remained with a bicycle network gap and a deteriorating road surface. Dyer Street is a critical corridor for Union City residents, as it connects to several other major arterials and popular gathering places. The second phase of the Dyer Street project will fill the bicycle Agenda Item No. 4.8
City Council Staff Report Page 2 of 3 February 24, 2026 network gap by providing marked bicycle lanes and clear vehicle lanes on a much-needed rehabilitated surface.
Alameda CTC administers funding programs for projects and programs that benefit the Alameda County transportation system, consisting of the 2000 Measure B, 2010 Vehicle Registration Fee (VRF), 2014 Measure BB, Congestion Management Agency Transportation Improvement Program (CMA-TIP), and Transportation Fund for Clean Air Programs.
On June 13, 2025, Alameda CTC released the Call for Projects for the FY2025-26 Transportation Fund for Clean Air, with approximately $789,000 available for eligible capital projects and programs within Alameda County, and the submission period ending on July 18, 2025.
Staff submitted the Dyer Street Pavement Rehabilitation Project Phase II Project for the FY2025-26 Transportation Fund for Clean Air and recommended a funding award in the amount of $50,000 on June 25, 2025. On September 25, 2025, Alameda CTC approved the project and the full funding request, in the amount of $50,000, from the FY 2025-2026 Transportation Fund for Clean Air Program.
DISCUSSION
The 5-year Capital Improvement Project (CIP) Plan identified this project as Project #26 “Reserved for Future Project.” The additional funding provided by this grant will support overall construction efforts and may be used to explore additional safety measures. With the recent completion of the Union City Boulevard Bike Lanes Project and its modern bicycle safety improvements, the bicycle gap on Dyer Street should now be filled, extending to Deborah Drive and connecting to existing bike lanes for a seamless, safe riding experience. This project will also improve the overall road surface, rehabilitating the pavement to acceptable levels and increasing the City’s Pavement Condition Index (PCI).
FISCAL IMPACT
Union City will receive $50,000 via the Alameda CTC Project Funding Agreement (PFA) No. A25-0066 for the Dyer Street Pavement Rehabilitation Project Phase II, City Project No. 26-38. City Council action is necessary to amend the FY 2025-2026 Capital Projects Grants Fund budget, as detailed below and in the attached resolution.
The $50,000 in grant revenues will be recognized under 41092638-44502 (Capital Projects Grants Fund – Dyer Street Rehabilitation Project Phase II – Misc. County/Local Grants). A project budget of $50,000 will be created for account 41092638-57112 (Capital Projects Grants Fund – Dyer Street Rehabilitation Project Phase II – Land Improvements).
There will be no fiscal impact on the General Fund.
Agenda Item No. 4.8
City Council Staff Report Page 3 of 3 February 24, 2026
RECOMMENDATION
Staff recommends that the City Council adopt a resolution:
1. Accepting the $50,000 grant via Alameda County Transportation Commission (Alameda CTC) Project Funding Agreement No. A25-0066 and authorizing the use of those funds for the Dyer Street Rehabilitation Project Phase II, City Project No. 26-38; and
2. Amending the FY 2025-2026 Capital Projects Grants Fund revenue budget by increasing the revenue projection in Account Number 41092638-44502 (Capital Projects Grants Fund – Dyer Street Rehabilitation Project Phase II – Misc.
County/Local Grants) by $50,000; and
3. Amending the FY 2025-2026 Capital Projects Grants Fund expenditure budget by appropriating $50,000 to Account Number 41092638-57112 (Capital Projects Grants Fund – Dyer Street Rehabilitation Project Phase II – Land Improvements) for the Dyer Street Pavement Rehabilitation Project Phase II, City Project No. 26- 38; and
4. Authorizing the City Manager to sign Alameda CTC PFA No. A25-0066, which awards a grant in the amount of $50,000 to the City for the Dyer Street Rehabilitation Project Phase II, City Project No. 26-38, in a form approved by the City Attorney.
Prepared by: Trieu Tran, Civil Engineer III
Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Attachment 1 – Project Funding Agreement A25-0066
2. Draft Resolution