REPORT ON
STATE AUDIT 2025-120
EAST BAY TRANSIT
AGENCIES
Steve Adams, Transit Manager
City Manager Report, Item 6.3
JUNE 9, 2026 CITY COUNCIL MEETING
2 Background
June 4, 2025: City notified
Union City Transit and five (5)
other East Bay transit
operators will be considered
for an audit on June 18, 2026,
at request of District 10 State
Senator Dr. Aisha Wahab.
3 Background
General Areas of Evaluation for Audit
▪ Laws, Rules, Regulations, Legality of Existence
▪ Current v. Pre-Pandemic Ridership
▪ Financial Health & Use of MTC Funds
▪ Maintain or Expand Service with Current Funds
▪ Regional Collaboration and Coordination
▪ Customer Experience
▪ Evaluate Consolidation
4 Background
June 18, 2025: The JLAC
voted unanimously to
move forward with audit
(Photo: Transit Leaders for Six (6) East Bay Transit Operators) 5 Background
▪ August 2025: Audit Starts
▪ March 2026: Audit Concludes
▪ May 2026: Audit Released
6 Discussion
▪ “They (Transit Agencies) Collaborate
Consistently but Face Declining Reserves,
Slow Ridership Recovery, and Barriers to
Consolidation”
▪ Audit Results Favorable to Transit
Operators and Recommends MTC Work
Faster to Implement Regional Initiatives
7 Discussion: Significant Findings
Five (5) of the six (6) transit
agencies face serious fiscal risks
8 Discussion: Significant Findings
Zero Emission bus
mandates present major
financial challenges
9 Discussion: Significant Findings
The Consolidation of the six
East Bay Transit Agencies
is very challenging and is
not a significant cost saving
to the limited available Bay
Area transit funds
10 Discussion: Union City Transit Specific Findings
▪ Union City Transit without serious
financial risks
▪ Union City Transit needs new transit
revenues to avoid using future reserves
▪ Union City exists because it is
integrated Citywide
“Union City Transit is recognized as being
efficient and a connected transit agency”
11 Discussion: Union City Transit Connections
12 Moving Forward
▪ Welcomes new staff to help keep
transit functioning for the community
▪ Short-Range Transit Plan process
and feedback from community
▪ Planned transit projects:
- ANR Part Time Transit Lanes Pilot
- Union City Transit Electrification Project
13 State Audit of East Bay Transit Agencies
Thank you for your support
Questions?