City Council Staff Report Page 1 of 3 September 22, 2026 Staff Report
Agenda Item No. 3.14
DATE: September 22, 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 Funding Application and to Execute the Certifications, Assurances and Authorized Agent Forms for the Electric Vehicle Charging Infrastructure for Union City Transit Project, in the Amount of $94,882, to the Low-Carbon Transit Operations Program (LCTOP) Cycle B and to Place the Award in the Capital Facilities Improvements Fund for the Union City Transit Fleet Electrification Project, City Project No. 22-11
EXECUTIVE SUMMARY
Staff recommends the City Council adopt a resolution authorizing the City Manager, or their designee, to submit the required funding application and to execute the certifications, assurances, and authorized agent forms for the Electric Vehicle Charging Infrastructure for Union City Transit Project, in the amount of $94,882, to the Low-Carbon Transit Operations Program (LCTOP) Cycle B, and to place the award in the Capital Facilities Improvements Fund for the Union City Transit Fleet Electrification Project, City Project No. 22-11.
STRATEGIC PLAN ALIGNMENT
There is no direct alignment with the Strategic Plan goals.
BACKGROUND
Assembly Bill 32 (AB 32), the California Global Warming Solutions Act of 2006, took a long-term, comprehensive approach to address climate change and its effects on the environment and natural resources. The legislation allows the California Air Resources Board (CARB) to establish a quarterly auction of a limited number of greenhouse gas (GHG) tradable permits. The program is commonly referred to as Cap-and-Trade, in which the proceeds from these auctions fund legislated programs that further the purpose of AB32.
The LCTOP is one of several programs within the Transit, Affordable Housing, and Sustainable Communities Program, established by the California Legislature in 2014 Agenda Item No. 3.14
City Council Staff Report Page 2 of 3 September 22, 2026 through Senate Bill 862 (SB 862), to further the purpose of AB32. Senate Bill 862 (Statutes of 2014) appropriated $25 million for LCTOP for Fiscal Year (FY) 2014-2015, and SB 862 continuously appropriates five percent (5%) of the annual auction proceeds in the Greenhouse Gas Reduction Fund for LCTOP, beginning in FY 2015-2016.
Approved projects in LCTOP will support new or expanded bus or rail services, expand intermodal transit facilities, and may include equipment acquisition, fueling, maintenance, and other costs to operate those services or facilities, with each project required to reduce greenhouse gas emissions. Funds in this program are allocated to operators by the Metropolitan Transportation Commission (MTC) through the State Controller’s Office, which uses Public Utility Code (PUC) Sections 99313 and 99314 to identify funding.
Funds are distributed based on revenues and, through MTC Resolutions 4123 and 4130, based on population. The California Department of Transportation (Caltrans) is the administering agency.
DISCUSSION
MTC is changing the distribution of funds for LCTOP this year by introducing Cycle A and Cycle B funding rounds. Cycle B funds have been finalized and are being presented for approval. Cycle A funds were approved by City Council on April 14, 2026, by the adoption of Resolution No. 2026-040. Union City Transit will apply all LCTOP funds towards the City’s Electric Vehicle Charging Infrastructure system this year.
Staff recommends that the City Council direct staff to apply for approximately $14,037 (PUC 99314) in direct LCTOP funds from Caltrans and $80,845 (PUC 99313) in LCTOP funds through the MTC population-based calculation for the FY2025-2026 Cycle B program period, for a total of $94,882. The LCTOP FY 2025-2026 Cycle A and Cycle B funding amounts to a combined total of $242,973. Over the course of twenty-five (25) years, Union City will receive $1.5 million dollars in combined revenue and population funds from the various projects enabled through this MTC program.
The FY 2025-2026 funds will be combined with previous LCTOP funds dedicated to electric vehicle charging infrastructure, along with other state, regional, and local transit funds through the Union City Transit Fleet Electrification Project, City Project No. 22-11 (formerly City Project 20-04). The attached funding application identifies the proposed project and allows Caltrans to allocate Cycle B funds to it. The City Council has approved similar resolutions for LCTOP funds annually since 2015, and the City has successfully received all requested funding (see Attachment 1 for a list of past LCTOP resolutions).
Caltrans has adopted an authorized agent designation, certifications, and assurances for LCTOP. As a condition to receive LCTOP 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 $94,882 in pass-through LCTOP Cycle B funds sometime in December 2026; staff will bring the award to City Council for acceptance at that time.
These funds will be combined with previous LCTOP funds dedicated to electric vehicle Agenda Item No. 3.14
City Council Staff Report Page 3 of 3 September 22, 2026 charging infrastructure, along with other state, regional, 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 funding application and to execute the certifications, assurances, and authorized agent forms for the Electric Vehicle Charging Infrastructure for Union City Transit Project, in the amount of $94,882, to the Low-Carbon Transit Operations Program (LCTOP) Cycle B and to place the award in the Capital Facilities Improvements Fund for the Union City Transit Fleet Electrification Project, City Project No. 22-11.
The resolution also authorizes the City Manager to designate the Transit Manager or Public Works Director to execute the required certifications and assurances for the LCTOP funds.
Prepared by: Steve Adams, Transit Manager
Submitted by: Marilou Ayupan, Public Works Director
Attachments
1. Attachment 1 – List of Past LCTOP Resolutions
2. Draft Resolution
3. Exhibit A - LCTOP Allocation Request Form
4. Exhibit B - LCTOP Authorized Agent
5. Exhibit C - LCTOP Certificates and Assurances