City Council Staff Report Page 1 of 3 May 12, 2026
Staff Report
Agenda Item No. 4.9
DATE: May 12, 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 a TenYear Master Programs Funding Agreement with Alameda County Transportation Commission for Measure BB and Vehicle
Registration Fee Direct Local Distribution Funds
EXECUTIVE SUMMARY
The Alameda County Transportation Commission (Alameda CTC) serves as the congestion management agency and transportation authority for the County of Alameda.
It is responsible for planning, programming, and allocating federal, state, regional, and local funding for transportation improvements throughout Alameda County.
As part of their scope, Alameda CTC manages the county’s voter-approved transportation expenditure plans, including Measure BB and the Vehicle Registration Fee (“VRF”). The current funding agreement with Alameda CTC for distributing these funds expires on June 30, 2026, and a new agreement must be executed for Union City to receive its share. The new agreement aligns with the prior agreement and authorizes the Alameda CTC to continue allocating funds derived from Measure BB and VRF.
Therefore, staff recommends the City Council adopt a resolution authorizing the City Manager to execute a Ten-Year Master Programs Funding Agreement with Alameda County Transportation Commission for Measure BB and the Vehicle License Fee Direct Local Distribution Funds.
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.
BACKGROUND
In 2010, voters approved Measure F, the Vehicle Registration Fee (VRF) program that collects $10 annually on vehicle registration to fund local road repairs, bicycle and Agenda Item No. 4.9
City Council Staff Report Page 2 of 3 May 12, 2026
pedestrian safety improvements, and transit upgrades in Alameda County.
In 2014, voters approved the 2014 Transportation Expenditure Plan (Measure BB), a halfcent transportation sales tax, on November 4, 2014, that extended the existing 2000 Measure B transportation sales tax and augmented it by one-half percent to fund projects and programs in Alameda County—collection of the Measure B 0.5% sales tax ended on March 31, 2022.
In 2015, the City Council adopted Resolution No. 4723-15 approving the Alameda County Transportation Commission Measure BB Master Programs Funding Agreement. The proposed new agreement will supersede the 2015 agreement.
The Alameda County Transportation Committee (Alameda CTC) is responsible for dispersing Measure BB and VRF funds, known as Direct Local Distributions (DLD), to local jurisdictions using established formulas to support bicycle and pedestrian programs, local transportation (local streets and roads), and transit and paratransit programs.
DISCUSSION
On February 26, 2026, Alameda CTC approved a combined ten-year Measure BB and VRF Master Programs Funding Agreement (MPFA) that specifies the requirements for the DLD funds, Alameda CTC’s responsibilities, and the recipient’s responsibilities for revenues collected from July 1, 2026, through June 30, 2036.
The new ten-year Measure BB/VRF MPFA supersedes the prior master agreements related to Measure B, Measure BB, and VRF DLD funds, as of the effective date of July 1, 2026.
These voter-approved funds are critical to the ongoing maintenance of streets, bicycle and pedestrian improvements, and transit operations. For Fiscal Year 2025-2026, Union City Public Works will receive about $2.16 million for CIP projects, and Union City Transit Operations will receive about $1.47 million for operations from the Measure BB and VRF Funds. See Attachment 2 for Alameda CTC Revenue Projections. These funds are budgeted as noted below:
Union City Public Works:
Local Streets and Roads $ 1,710,540
Bicycle and Pedestrian $ 450,490
$ 2,161,030
Union City Transit Operations:
Paratransit $ 545,560
Mass Transit Program $ 927,830
$1,473,390
Union City’s future Measure BB and VRF allocations will be presented by the Alameda CTC annually. Alameda CTC has published the Implementation Guidelines on the appropriate expenditure of DLD funds.
Agenda Item No. 4.9
City Council Staff Report Page 3 of 3 May 12, 2026
FISCAL IMPACT
There will be no fiscal impact on the General Fund.
RECOMMENDATION
Staff recommends the City Council adopt a resolution authorizing the City Manager to execute a Ten-Year Master Programs Funding Agreement with Alameda County Transportation Commission for Measure BB and the Vehicle License Fee Direct Local Distribution Funds.
Prepared by: Marilou Ayupan, Public Works Director
Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Attachment 1 – Ten-Year MPFA for Measure BB and VLF DLD Funds
2. Attachment 2 - Alameda CTC FY 2025-2026 Revenue Projections
3. Draft Resolution
4. Exhibit A – Implementation Guidelines