City Council Staff Report Page 1 of 4 September 22, 2026 Staff Report
Agenda Item No. 3.11
DATE: September 22, 2026
TO: Honorable Mayor and Members of the City Council
FROM: Joan Malloy, City Manager
SUBJECT: Adopt a Resolution Approving an Exchange of the Remaining Local Match Balance for the Metropolitan Transportation Commission’s Bus Accelerated Infrastructure Delivery Grant Program, in the Amount of $41,208, from ACTIA Streets & Roads Fund to Measure BB (2014) Fund for the Alvarado-Niles Road Part-Time Transit Lane Pilot Project, City Project No. 24-21, and Amending the Five-Year Capital Improvement Plan to Reflect the Changes in Funding
EXECUTIVE SUMMARY
Staff recommends that the City Council adopt a resolution approving an exchange of the remaining Local Match Balance for the Metropolitan Transportation Commission’s Bus Accelerated Infrastructure Delivery Grant Program, in the amount of $41,208, from ACTIA Streets & Roads Fund to Measure BB (2014) Fund for the Alvarado-Niles Road Part-Time Transit Lane Pilot Project, City Project No. 24-21, and amending the Five-Year Capital Improvement Plan to reflect the changes in funding.
STRATEGIC PLAN ALIGNMENT
There is no direct alignment with the Strategic Plan.
BACKGROUND
The Metropolitan Transportation Commission (MTC), a regional planning agency, has been designated as the federal Metropolitan Planning Organization (MPO) and the state Regional Transportation Agency (RTPA) for the San Francisco Bay Area. MTC from time to time provides available regional, state, and federal funds to itself as an MPO and RTPA, and otherwise to local agencies, and these funds are used for planning and programming transportation, transit, land use, or other projects relevant to MTC or its statutory purposes.
On July 10, 2018, the City Council adopted Resolution No. 5360-18, authorizing the City Manager to enter into a Master Funding Agreement with the MTC for funding Planning, Programming, Transportation, Transit, Land Use or Other Projects for Fiscal Years 2018- 2019 through 2027-2028.
Agenda Item No. 3.11
City Council Staff Report Page 2 of 4 September 22, 2026 The Bus Accelerated Infrastructure Delivery (BusAID) program is a $30 million Bay Area initiative managed by the MTC to speed up bus travel and boost reliability. Union City Transit and Public Works submitted a BusAID grant program application on February 23, 2024, with the following project description:
The pilot project consists of bus-lane striping and new signage to alert motorists to time restrictions when on-street parking is prohibited. At intersections, additional signage will be installed to clarify that the curb lane is to be used for right turns and through buses during peak periods.
The project entails repurposing the existing 7-foot parking lane and 5-foot bike lane into a 12-foot part-time bus lane during peak periods. Bicyclists may use the lane during peak periods, but are encouraged to use parallel bike routes along Arizona Street.
On May 28, 2024, the MTC informed Union City that it had approved funding the AlvaradoNiles Road Part-Time Transit Lane Pilot Project, City Project No. 24-21, in the amount of $1,703,025, which includes $1,507,688 of Non-Federal State Transit Assistance (STA) funds and a required local match of $195,337 (approximately 11.47%).
On July 9, 2024, the City Council adopted Resolution No. 6328-24, accepting $1,507,688 from the MTC BusAID Grant Program for the Alvarado-Niles Road Part-Time Transit Lane Pilot Project (City Project No. 24-21). At the same meeting, City Council approved the Local Match of $195,337 to be funded with $100,000 of ACTIA Bike & Ped Paths Fund monies and $95,337 of ACTIA Streets & Roads Fund monies from the Alvarado-Niles Multimodal Corridor Study, City Project No. K, as identified in the Five-Year Capital Improvement Program for Fiscal Year 2023-2024 to Fiscal Year 2027-2028 (see Attachment 1 for MTC Grant with Local Match Budget Summary).
On November 26, 2024, the City Council adopted Resolution No. 6400-24, authorizing the City Manager to execute a Consulting Service Agreement with Kittelson & Associates, Inc., in the amount of $275,611, for the Preliminary Engineering and Final Design for the Alvarado-Niles Road Part Time Transit Lane Pilot Project, City Project No. 24-21, which was funded with $243,988 in MTC BusAID Grant Fund monies, $16,184 in ACTIA Bike & Ped Paths Fund monies and $15,429 of ACTIA Streets and Roads Fund monies.
On July 9, 2024, the City Council adopted Resolution No. 6328-24, authorizing the City to sign Supplement No. 4 to the Master Funding Agreement with MTC for the AlvaradoNiles Road Part-Time Transit Lane Pilot Project (City Project No. 24-21).
On June 24, 2025, the City Council adopted Resolution No. 2025-086, approving the FY 2025-2026 & FY 2026-2027 Biennial Budget and the Five-Year Capital Improvement Plan for FY 2025-2026 through FY 2029-2030. The Alvarado-Niles Road Part-Time Transit Lane Pilot Project, City Project No. 24-21, is listed as Item No. 27 in the Capital Improvement Plan (CIP), and the project's funding includes both the ACTIA Streets & Roads Fund and the ACTIA Bike & Ped Paths Fund.
Agenda Item No. 3.11
City Council Staff Report Page 2 of 4 September 22, 2026 Agenda Item No. 3.11
City Council Staff Report Page 3 of 4 September 22, 2026 The ACTIA funding was set to sunset on July 30, 2026, but the Alameda County Transportation Commission (Alameda CTC) authorized a one-year extension of the deadline for the remaining ACTIA funding under the Master Programs Funding. On May 12, 2026, the City Council adopted Resolution No. 2026-059, authorizing the City to sign the One-Year Master Programs Funding Agreement with Alameda CTC for the remaining 2000 Measure B (ACTIA) Direct Local Distribution Funds, with an estimated balance of $239,000, which must be expended before June 30, 2027.
DISCUSSION
Staff has prioritized re-evaluating the use of the remaining ACTIA funding to maximize benefits to the City. As such, staff is requesting to reprogram ACTIA funds allocated to projects in the FY 2026-2027 Budget and the Five-Year Capital Improvement Plan for FY 2026-2027 through FY 2029-2030 to other projects that will meet the expenditure deadline.
The Alvarado-Niles Road Part-Time Transit Lane Pilot Project, City Project No. 24-21, is no longer able to meet the deadline for use of the remaining ACTIA funds; therefore, staff requests to exchange the remainder of the Local Match Balance of $41,208 from ACTIA Streets & Roads Fund to Measure BB (2014) Fund (the ACTIA Bike & Ped Paths Fund monies for this project have already been expended). If the ACTIA funds remain in the Alvarado-Niles Road Part-Time Transit Lane Pilot Project, they are at severe risk of being lost because the project deadline is not aligned with the funding expenditure deadline outlined in Alameda CTC’s one-year Master Programs Funding extension.
The exchange of funds will require amending the Five-Year Capital Improvement Plan to reflect the funding changes.
FISCAL IMPACT
The remainder of the local match balance of the ACTIA Streets & Roads Fund, in the amount of $41,208, will be transferred from the Alvarado-Niles Road Part Time Transit Lanes Pilot Project, City Project No. 24-21, to the fund balance of ACTIA Streets & Roads Fund (Fund 253) to make it available for near-term construction projects that will meet the deadline for expenditure.
In exchange for the ACTIA funds, $41,208 will be transferred from the Measure BB (2014) Fund and appropriated to the Alvarado-Niles Road Part-Time Transit Lanes Pilot Project, City Project No. 24-21 (Account Number 264-92421-57128).
The Five-Year Capital Improvement Plan for Fiscal Years 2026-2027 to 2029-2030 will be amended to reflect these changes.
There is no impact on the General Fund.
Agenda Item No. 3.11
City Council Staff Report Page 3 of 4 September 22, 2026 Agenda Item No. 3.11
City Council Staff Report Page 4 of 4 September 22, 2026
RECOMMENDATION
Staff recommends that the City Council adopt a resolution:
1. Authorizing a budget transfer, in the amount of $41,208, of ACTIA Streets & Roads Fund (Account Number 253-92421-57128) from the Alvarado-Niles Road Part Time Transit Lanes Pilot Project, City Project No. 24-21, to the fund balance of the ACTIA Streets & Roads Fund; and
2. Authorizing a budget transfer, in the amount of $41,208, from the Measure BB (2014) Fund, and appropriating the monies to the Alvarado-Niles Road Part Time Transit Lanes Pilot Project, City Project No. 24-21 (Account Number 264-92421- 57128); and
3. Amending the Five-Year Capital Improvement Plan for Fiscal Years 2026-2027 to 2029-2030, to reflect these changes.
Prepared by: Marilou Ayupan, Public Works Director
Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Attachment 1 – MTC BusAID Project Budget
2. Attachment 2 – MTC BusAID Project Fund Exchange Budget
3. Draft Resolution
4. Exhibit A – Resolution No. 2026-059