TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: 2026 State Transportation Improvement Program
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider adoption of Resolution No. 25-037 authorizing the General Manager, or his designee, to file and execute documents for an application for funding assigned to the Metropolitan Transportation Commission and committing any necessary match funds and stating assurance to complete the purchase of two zero-emissions buses.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
By applying for funds through the Regional Transportation Improvement Program (RTIP), the District may secure funding for bus replacement purchases scheduled for 2029.
BUDGETARY/FISCAL IMPACT:
This application will provide funds for the District’s regular bus procurements. The funds require a local match of approximately $517,000, which the District will meet with other grants, if possible.
These funds can be used on any of the District’s zero-emission bus procurements in FY 2029-30, which are included in the District’s Capital Improvement Program (CIP) as well as the District’s Zero Emission Transition Plan. The specific bus procurement will be identified as the availability of the funds is better known to match to the relevant planned procurement along with the rest of the funding secured at that time.
BACKGROUND/RATIONALE:
The State Transportation Improvement Program (STIP) serves as California’s five-year capital improvement program for transportation projects. The STIP includes a regional program (the RTIP), which the state divides by formula into county shares.
Every two years, the state programs STIP funds in five-year cycles, typically adding new projects to the final two years of each cycle. The Metropolitan Transportation Commission (MTC), in coordination with Alameda County Transportation Commission (ACTC), programs Alameda County’s share of regional program funds through the RTIP.
Alameda County expects to have $10 million available in FY 2029-30 or 2030-31 for new project nominations. As a result, the ACTC set a funding request limit of up to $4 million per agency for projects that meet several criteria including the ability to achieve NEPA clearance, clearly demonstrate the need for funds in FY 2029-30 or FY 2030-31, and a Resolution of Local Support by October 24, 2025.
The District's bus procurement project meets all listed criteria and is considered an appropriate fit for the constrained STIP funding window. Staff identified buses as the best candidate for the programming as it could apply to any bus procurement proceeding in FY 2029-30.
ADVANTAGES/DISADVANTAGES:
The advantage to approving the action is that it will allow the District to receive committed grant funds for a necessary investment in new buses, which will reduce the need for District funding for regular bus replacement.
Staff cannot identify any disadvantages.
ALTERNATIVES ANALYSIS:
Staff considered other capital projects but focused on a bus replacement as the greatest ongoing need in the CIP and the simplest way to receive the funds.
PRIOR RELEVANT BOARD ACTION/POLICIES:
SR 23-468 - 2024 State Transportation Improvement Program
ATTACHMENTS:
1. Resolution 25-037
Prepared by:
Regina Tran, Principal Capital Planning Specialist
In Collaboration with:
Emily Heard, Capital Planning and Grants Manager
Approved/Reviewed by:
Richard Oslund, Director of Management & Budget
Chris Andrichak, Chief Financial Officer
Aimee L. Steele, General Counsel/Chief Legal Officer
Salvador Llamas, General Manager/Chief Executive Officer