City Council Staff Report Page 1 of 6 April 28, 2026
Staff Report
Agenda Item No. 5.2
DATE: April 28, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Authorizing the City Manager to Execute an Agreement with Rocky Ridge, LLC, for the Purchase and Sale of the Mitigation Values, in the Amount of $11,050,000, for the Quarry Lakes Parkway Project, Phases 1-4, City Project No. 18-04 – CEQA Review – First Addendum to the East West Connector Project Final Environmental Impact Report – April 2026
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute an Agreement with Rocky Ridge, LLC for Purchase and Sale of the Mitigation Values in the amount of $11,050,000, for the Quarry Lakes Parkway Project, Phases 1- 4, City Project No. 18-04 - CEQA review - First Addendum to the East-West Connector Project Final Environmental Impact Report – April 2026.
This Agreement will allow the Quarry Lakes Parkway Project to fulfill its obligation to mitigate key environmental impacts (waters/wetlands/riparian effects) identified in the original 2009 Environmental Impact Report and addressed in the First Addendum to the East West Connector Project Final Environmental Impact Report – April 2026. Mitigation is required to receive permits before the construction of Quarry Lakes Parkway from several state and federal regulatory agencies.
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.
Agenda Item No. 5.2
City Council Staff Report Page 2 of 6 April 28, 2026
BACKGROUND
The Alameda County Transportation Authority (“ACTA”), in cooperation with the cities of Fremont and Union City, proposed a 3.0-mile transportation corridor that would provide East West access between I-880 and Mission Boulevard (SR 238) in southern Alameda County. The “East West Connector (“EWC”) Project” would widen existing roads (1.7 miles along Decoto Road and Paseo Padre Parkway in Fremont) and construct a new roadway (1.3 miles from Paseo Padre Parkway in Fremont to Mission Boulevard in Union City), and upon completion, would provide a continuous bike and pedestrian corridor from I-880 to Mission Boulevard.
ACTA, as the Lead Agency under the California Environmental Quality Act (“CEQA”) and the State CEQA Guideline, prepared the Final Environmental Impact Report (“Final EIR”) for the East West Connector Project (State Clearinghouse No. 200710278) in compliance with CEQA, to assess the potential environmental impacts, describe the alternatives, and the potential mitigation measures. Section 3.3, Biological Resources, in the Final EIR addresses the project's environmental impacts and potential mitigation measures. On May 28, 2009, the ACTA Board certified the Final EIR, dated April 2009, for the East West Connector Project, located at: Alameda County Transportation Authority East West Connector Project Final Environmental Impact Report. On June 25, 2009, the ACTA Board considered related Board reports, documents presented by ACTA staff and ACTA’s environmental consultants, including a Finding of Facts and the Statement of Overriding Considerations for the East West Connector Project, prepared in accordance with the CEQA and State CEQA Guidelines and adopted Resolution No 2009-004 (“ACTA Resolution”).
In accordance with the CEQA Guidelines Sections 15091 and 15096 (h), the City of Union City was named a Responsible Agency for the East West Connector Project. On July 14, 2009, the City Council adopted Resolution No. 3838-09, making the findings as a Responsible Agency (adopting the same findings as ACTA in their Final EIR) pursuant to the California Environmental Quality Act for the East West Connector Project (Route 84, Option 2) and approving the project.
In July 2010, the Alameda County Transportation Commission (“Alameda CTC”) was created by the merger of the Alameda County Congestion Management Agency (“ACCMA”) and the Alameda County Transportation Improvement Authority (“ACTIA”), formerly ACTA, to streamline operations, eliminate redundancies, and save taxpayers’ dollars. As a result of the merger, Alameda CTC can implement more cost-effective planning, funding, and delivery methods for programs and projects that benefit Alameda County residents and businesses. Alameda CTC is now the funding agency that will administer the transportation funds for this project.
On March 22, 2018, the Alameda CTC approved the request from the City of Union City to be the Project Sponsor for the remaining phases of the I-880 to Mission Boulevard/East West Connector Project and to update the project description eligible for the remaining commitment from the 1986 Measure B Transportation Expenditure Plan to reflect the Quarry Lakes Parkway Project.
Agenda Item No. 5.2
City Council Staff Report Page 3 of 6 April 28, 2026
On September 14, 2018, the City of Union City received from Alameda CTC the executed I-880 to SR 238 (Mission Boulevard) East-West Connector Project Funding Agreement (“PFA”) No. A18-0046, in the amount of $2,500,000, identifying Union City to be the Project Sponsor for the Final Design and Construction, and the Lead Agency for CEQA documentation, which included revising the design to include transit, bike, and pedestrian improvements, evaluating the need for a traffic study update, and determining if the 2009 Final EIR was sufficient for project revisions. The City completed all of these tasks.
On February 12, 2019, the City Council adopted Resolution No. 5444-19, which authorized renaming the I-880 to Mission Boulevard/East West Connector Project to the Quarry Lakes Parkway Project. To better manage the project, the City divided the project into usable segments or phases that included:
• Phase (Segment) 1: 7th Street Connection (7th Street to Mission Boulevard), • Phase (Segment) 2: Gateway Connection (Old Alameda Creek to Alvarado-Niles Road),
• Phase (Segment) 3: 11th Street Connection (11th Street to 7th Street), • Phase (Segment) 4: Alvarado-Niles Connection & Grade Separations (BART and Oakland Subdivision), and
• Phase (Segment) 5: Paseo Padre Parkway & Bike Trail Connection (Paseo Padre Parkway in Fremont to Old Alameda Creek in Union City).
The Quarry Lakes Parkway, City Project No. 18-04, is funded with 1986 Measure B funds, 2014 Measure BB funds, and other transportation funds administered by Alameda CTC and Regional Measure 3 (“RM3”) Dumbarton Corridor Improvement Program funds administered by the Metropolitan Transportation Commission (“MTC”).
Mark Thomas and Company, Inc, the Engineering Design Consultant, has completed engineering design for Quarry Lakes Parkway, Phase 1 (65% Plans), Quarry Lakes Parkway, Phase 2 (95% Plans), Quarry Lakes Parkway, Phase 3 (35% Plans), and Quarry Lakes Parkway, Phase 4 (35% Plans). The design work has been sufficient to determine the environmental impacts on wetlands, riparian areas, species, and other environmental resources. ICF, the Environmental Consultant for the past several years, has prepared the required technical studies and coordinated with the regulatory agencies for the permits from the Regional Water Quality Control Board (“RWQCB”) for water quality certification and discharge into Old Alameda Creek; U.S. Army Corps of Engineers for wetlands; U.S. Fish and Wildlife Services for biological resources impacts; California Department of Fish and Wildlife for stream alteration impacts to Line M Channel and Old Alameda Creek/other biological resources impacts; and the State Historic Preservation Office for cultural resources impacts.
The consultant team and City staff held several technical meetings from 2022 to 2025 with the San Francisco Bay RWQCB, Alameda County Water District (“ACWD”), and the City of Fremont to review and evaluate options for on-site mitigation improvements within Old Alameda Creek. The onsite mitigation options within Old Alameda Creek became challenging, with expected high costs to construct creek improvements and to fund a 10- year mitigation monitoring maintenance program, in addition to maintenance agreements with both ACWD and the city of Fremont. The consultant team and City staff concluded that the off-site environmental mitigation option is likely more feasible and realistic.
Agenda Item No. 5.2
City Council Staff Report Page 4 of 6 April 28, 2026
On March 25, 2025, the consultant team and City staff held a technical meeting with San Francisco Bay RWQCB staff to provide an update on on-site mitigation options, project mitigation impact calculations, and off-site mitigation concepts (see Exhibit A for the Meeting Presentation). At the same meeting with the RWQCB staff, the identified off-site mitigation locations were the Manning Ranch (part of Eagle Ridge Ranch) and the Livermore Valley Preserve. Olberding Environmental, Inc., manages these areas.
On April 2, 2025, the consultant team and City staff met with Olberding Environmental, Inc., to discuss the project's off-site mitigation needs and to confirm whether an available area within the Manning Ranch or Livermore Valley preserve was available for Quarry Lakes Parkway, City Project No. 18-04. At the same meeting, Olberding Environmental, Inc., staff noted that the RWQCB staff had recently visited the mitigation site to observe habitat growth and the site's natural development.
On July 25, 2025, the City entered into a Consulting Services Agreement with Olberding Environmental, Inc., a biological consulting firm, in the amount of $74,500, to begin the design of an initial conceptual Habitat Management and Mitigation Plan (“HMMP”) for Quarry Lakes Parkway, City Project No. 18-04.
Olberding Environmental, Inc., coordinated with Rocky Ridge, LLC, the owner and developer of the unique, high-value mitigation site known as Manning Ranch, and confirmed that the property is available for offsite mitigation requirements for Quarry Lakes Parkway, City Project No. 18-04. Alameda CTC also used the Manning Ranch site for off-site mitigation of environmental impacts related to the recently completed I-580 Widening Project in Livermore and Pleasanton.
The consultant team, including Olberding Environmental, Inc., continued to coordinate with regulatory agencies and meet with them to prepare and design the initial conceptual HMMP for Quarry Lakes Parkway, City Project No. 18-04, dated September 2025, for their review and comments.
On October 14, 2025, the City Council adopted Resolution No. 2025-136 authorizing the City Manager to execute First Amendment to the Consulting Services Agreement with Olberding Environmental, Inc., in the amount of $200,000, for a total contract amount of $274,500, for the Design of the Habitat Mitigation and Monitoring Plan (“HMMP”) for Quarry Lakes Parkway Project, City Project No. 18-04. The consultant team coordinated the review comments from the regulatory agencies and prepared an updated Habitat Mitigation and Monitoring Plan (HMMP), dated November 2025, and submitted the HMMP with the initial permit applications to the U.S. Army Corps of Engineers, U.S. Fish and Wildlife Service, California Regional Water Quality Control Board, and California Department of Fish and Wildlife in early 2026.
The consultant team has received comments from the permitting agencies and has updated the Habitat Mitigation and Monitoring Plan, dated April 2026 (see Exhibit B). The HMMP will be resubmitted to the U.S. Army Corps of Engineers, the U.S. Fish and Wildlife Service, the California Regional Water Quality Control Board, and the California Department of Fish and Wildlife.
Agenda Item No. 5.2
City Council Staff Report Page 5 of 6 April 28, 2026
DISCUSSION
The Environmental Consultant has prepared the First Addendum to the certified East West Connector Project 2009 Final EIR for the Quarry Lakes Parkway, Phases (Segments) 1-4 in Union City, dated April 2026. The First Addendum describes and analyzes the environmental impacts of the proposed changes to Phases 1-4 of the Quarry Lake Parkway Project as compared to the project and impacts analyzed in the 2009 Final EIR to determine if future environmental review was required under the CEQA subsequent review standards outlined in Public Resources Code section 21166 and CEQA Guidelines section 15162.
Section 3.3, Design Changes Since the EWC EIR (referred to herein as the 2009 Final EIR) in the First Addendum, identifies the project changes in detail. Below is a summary of these changes related to this proposed action. The complete description in the First Addendum of all the proposed changes to the project analyzed in the 2009 Final EIR is incorporated herein by reference.
Mitigation for Waters/Wetlands/Riparian Effects
The planned mitigation area identified in the EWC EIR was located within the project limits, as onsite mitigation, in the area of Old Alameda Creek adjacent to Quarry Lakes Drive. When the design and cost for onsite mitigation were determined to be unfeasible, offsite mitigation sites were evaluated, with the Eagle Ridge East and Manning Ranch sites in Livermore, as identified in the Habitat Mitigation & Monitoring Plan (“HMMP”) dated April 2026, which the regulatory agencies have conditionally approved.
Rocky Ridge, LLC, the owner and developer of the Manning Ranch Mitigation Site, will provide Mitigation Values to the City of Union City and will prepare and process the HMMP for approval to satisfy the compensatory mitigation requirements.
The City Council is considering the Addendum in connection with the proposed approval of the work relating to the new proposed off-site mitigation for biological impacts under this Agreement with Rocky Ridge, LLC and the City of Union City.
On February 10, 2026, the City Council adopted Resolution No. 2026-017, accepting $16,728,000 from the Regional Measure 3 Dumbarton Corridor Improvements Program of the Metropolitan Transportation Commission, increasing the revenue projections in the Capital Projects Grants Fund by $16,728,000, and appropriating $16,728,000 to the Quarry Lakes Parkway Project, City Project No. 18, with $13,000,000 programmed for the environmental mitigation.
FISCAL IMPACT
The Agreement for the Purchase and Sale of the Mitigation Values for Quarry Lakes Parkway, Phases 1-4, City Project No. 18-04, between Rocky Ridge, LLC, and the City of Union City, in the amount of $11,050,000, will be funded with FY 2025-2026 Capital Project Grants (Account Number 410-91804-57115).
Agenda Item No. 5.2
City Council Staff Report Page 6 of 6 April 28, 2026
RECOMMENDATION
Staff recommends that the City Council adopt a resolution authorizing the City Manager to execute an Agreement with Rocky Ridge, LLC for Purchase and Sale of the Mitigation Values in the amount of $11,050,000, for the Quarry Lakes Parkway Project, Phases 1- 4, City Project No. 18-04 - CEQA review - First Addendum to the East-West Connector Project Final Environmental Impact Report – April 2026.
Prepared by: Marilou Ayupan, Public Works Director
Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Attachment 1 – Agreement for the Purchase and Sale of Mitigation Values
2. Attachment 2 – Environmental Off-Site Mitigation (Location Exhibit)
3. Draft Resolution
4. Exhibit A – RWQCB Mitigation Meeting 03.25.25
5. Exhibit B – Habitat Mitigation and Monitoring Plan – April 2026
6. Exhibit C – Manning Ranch Mitigation Site