City Council Staff Report Page 1 of 3 September 8, 2026 Staff Report
Agenda Item No. 5.16
DATE: September 8, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Authorizing the City Manager, or Their Designee, to Submit the Required Project List Authorizing Resolution, to Execute the Certifications and Assurances, and to Submit Authorized Agent Forms for the State Transit Assistance (STA) State of Good Repair (SGR) Program for Union City Transit
EXECUTIVE SUMMARY
Staff recommends the City Council adopt a resolution authorizing the City Manager, or their designee, to submit the required project list authorizing resolution, to execute the certifications and assurances, and to submit authorized agent forms for the State Transit Assistance (STA) State of Good Repair (SGR) Program for Union City Transit.
STRATEGIC PLAN ALIGNMENT
There is no direct alignment with the Strategic Plan goals.
BACKGROUND
Senate Bill 1 (SB1), also known as the Road Repair and Accountability Act of 2017, augmented the existing State Transit Assistance program with the State of Good Repair (SGR) program funded from a portion of a new Transportation Improvement Fee on vehicle registrations due on or after January 1, 2018. Funds are administered by the California Department of Transportation (Caltrans) and distributed by formula on a population basis in the region to the Metropolitan Transportation Commission (MTC), and on a revenue basis to eligible transit operators for transit maintenance, rehabilitation, and capital projects. The State Controller’s Office (SCO) has estimated that $20,108 in revenue-based SGR funds will be available for allocation to the City of Union City – Union City Transit in FY 2026-27.
Caltrans’ SGR Program guidelines require regional agencies, including MTC, to approve transit operators’ revenue-based SGR projects and submit a single region-wide list of projects to Caltrans by September 1 of each year. In order for MTC to approve the Regional SGR Program Project List by September 1, transit operators in the Bay Area must submit a governing body–approved project list for all anticipated SGR Program Agenda Item No. 5.16
City Council Staff Report Page 2 of 3 September 8, 2026 expenditures to MTC no later than July 1. MTC staff have stated they will accept the City of Union City’s resolution approving the project list following the September 8, 2026, City Council meeting.
The program guidelines state that transit agencies receiving funds from the SGR Program must submit expenditure proposals listing projects that maintain the public transit system in a state of good repair, which are:
• Transit capital projects or services to maintain or repair a transit operator’s existing transit vehicle fleet or transit facilities, including the rehabilitation or modernization of the existing vehicles or facilities.
• The design, acquisition, and construction of new vehicles or facilities that improve existing transit services.
• Transit services that complement local efforts for repair and improvement of local transportation infrastructure.
DISCUSSION
Staff proposes using the FY 2026-2027 SGR allocation to continue improving bus stops around Union City. This project will continue the installation of new bus stop improvements that have been ongoing since 2023. The total estimated amount available to support the project is $20,108.
Caltrans has adopted requirements for agencies to designate an authorized agent and to provide certifications and assurances for SGR. As a condition to receive SGR funds, each project sponsor/agency must authorize an agency designee to execute these certifications and assurances. They include guidelines for project administration, reporting, cost principles, record retention, and special situations.
FISCAL IMPACT
The City will receive approximately $20,108 in pass-through SGR funds, either as a onetime or progressive disbursement, depending on the State’s sales receipts and committed funds; staff will bring the award to City Council for acceptance at that time. These funds will be combined with prior year SGR and local transit funds for the proposed project.
There will be no impact on the General Fund.
RECOMMENDATION
Staff recommends the City Council adopt a resolution authorizing the City Manager, or their designee, to submit the required project list authorizing resolution, to execute the certifications and assurances, and to submit authorized agent forms for the State Transit Assistance (STA) State of Good Repair (SGR) Program for Union City.
Prepared by: Steve Adams, Transit Manager
Submitted by: Marilou Ayupan, Public Works Director
Agenda Item No. 5.16
City Council Staff Report Page 3 of 3 September 8, 2026 Attachments
1. Draft Resolution
2. Exhibit A - SGR Authorized Agent
3. Exhibit B - SGR Certificates and Assurances