Title
Adopt a Resolution to Approve and Authorize the City Manager to Execute a Master Programs Funding Agreement with the Alameda County Transportation Commission for Measure BB and Vehicle Registration Fee Direct Local Distribution Funds
COUNCIL PRIORITY
• Infrastructure
• Quality of Life
• Public Safety
SUMMARY
The Alameda County Transportation Commission (Alameda CTC) is proposing a revised ten-year Master Programs Funding Agreement (MPFA) to continue the distribution of formula-based Measure BB and Vehicle Registration Fee (VRF) Direct Local Distribution (DLD) funds to DLD recipients. These programs provide the City with approximately $5 million annually for street maintenance, bicycle and pedestrian improvements, and paratransit services. Approval of the MPFA is required to ensure uninterrupted DLD funding from July 1, 2026 through June 30, 2036. The revised agreement includes updates to the implementation guidelines with no major substantive changes.
RECOMMENDATIONS
Staff recommend that the City Council approve and authorize the City Manager to execute a ten-year MPFA with the Alameda CTC.
BACKGROUND
Alameda County voters have approved multiple transportation funding measures over the past two decades. The Alameda County Transportation Commission (Alameda CTC) is responsible for administering the Measure BB and Vehicle Registration Fee (VRF) Programs. Over half of the revenues generated by the Measure BB/VRF programs are distributed directly to twenty eligible jurisdictions by a prescribed distribution formula in the Transportation Expenditure Plan (TEP). These formula-based funds are known as Direct Local Distribution (DLD) funds. Annually, these programs provide support to locally identified transportation improvements.
In 2016, Alameda CTC entered a ten-year Master Programs Funding Agreement (MPFA) with each eligible DLD recipient, including the City of San Leandro. In addition to facilitating and authorizing DLD distributions to recipients, Alameda CTC also established specific expenditure requirements. The MPFA specifies these requirements which include the obligations of the DLD recipients, reporting requirements, implementation guidelines, and performance measures for the DLD programs. The current MPFA is set to expire on June 30, 2026.
FUNDING OVERVIEW
Vehicle Registration Fee (VRF):
On November 2, 2010, Alameda County voters approved the Measure F Vehicle Registration Fee (VRF) program with 63 percent voter approval. The measure generates approximately $11 million annually through a $10 annual vehicle registration fee. The City of San Leandro receives approximately $405,000 per year, which is invested in local streets and roads, as well as bicycle and pedestrian projects.
Measure BB:
On November 4, 2014, voters approved Measure BB, which extended and increased the previous transportation sales tax (Measure B). The tax has a 30-year duration beginning April 1, 2015, and will expire on March 31, 2045. Measure BB generates approximately $120 million annually countywide, funding projects identified in the Alameda County Transportation Expenditure Plan (TEP). The City of San Leandro receives approximately $4.7 million per year, which is invested in local streets and roads, bicycle and pedestrian safety, and paratransit services.
ANALYSIS
The MPFA establishes the framework to continue receiving Measure BB and VRF DLD funds for the period between July 1, 2026 - June 30, 2036. It includes standardized policies applicable across all DLD funding sources, eligible uses, expenditure requirements, and implementation guidelines.
The updated MPFA contains no significant changes to the existing 2016 Measure B/BB/VRF MPFA template. The updates focused on outdated references, including revised lists of eligible projects for Bicycle/Pedestrian, Local Street and Roads, and Mass Transit guidelines that were last adopted in 2016, as well as the Paratransit guidelines updated by the Paratransit Advisory and Planning Committee in October 2025. The proposed agreement would also separate Measure B from the Measure BB/VRF requirements. DLD recipients who have remaining Measure B funds as of the June 30, 2025, deadline are required to enter into a MPFA specifically for Measure B funds. Because the City of San Leandro fully expended all Measure B funds before the deadline, the City will only enter a ten-year MPFA for the Measure BB and VRF DLD Program.
The MPFA also includes performance measures to track outcomes such as pavement condition index, bicycle and pedestrian infrastructure improvements, and paratransit service levels. The City will meet these requirements through its annual program compliance reporting and the annual paratransit program plan submission.
Adoption of the new MPFA will allow uninterrupted disbursement of Measure BB and VRF DLD funds beginning July 1, 2026.
PREVIOUS ACTIONS
• On March 18, 2002, by Resolution No. 2002-035, the City Council authorized the City Manager to enter into a Master Program Funding Agreement with the Alameda County Transportation Improvement Authority (ACTIA) for Measure B 2000 Programmatic Pass-Through Funds
• On July 1, 2002, by Resolution No. 2002-096, the City Council authorized the City Manager to Enter into a Master Project Funding Agreement with Three Subsequent Specific Project Funding Agreements with the Alameda County Transportation Improvement Authority (ACTIA) for Measure B 2000 Capital Project Funds
• On March 5, 2012, by Resolution No. 2012-021, the City Council authorized the City Manager to Enter the City into a Master Programs Funding Agreement with the Alameda County Transportation Commission (Alameda CTC) for the Distribution and Receipt of Measure B Transportation Sales Tax Revenue and Vehicle Registration Fee Revenue
• On June 15, 2015, by Resolution No. 2015-105, the City Council authorized the City Manager to Enter the City into a Master Programs Funding Agreement with the Alameda County Transportation Commission for the Distribution and Receipt of Measure BB Transportation Sales Tax Revenue
• On May 2, 2016, by Resolution No. 2015-105, the City Council authorized the City Manager to Enter the City into a Master Programs Funding Agreement with the Alameda County Transportation Commission for the Distribution and Receipt of Measure B, Measure F VRF, and Measure BB Transportation Tax Revenue
APPLICABLE GENERAL PLAN POLICIES
• Policy T-3.2 Funding. Maximize the City’s eligibility for funding for bicycle and pedestrian improvements and aggressively pursue such funding to complete desired projects.
LEGAL ANALYSIS
The City Attorney’s Office has reviewed and approved the MPFA as to form.
FINANCIAL IMPACTS
Execution of the MPFA enables continued receipt of Measure BB and VRF DLD funds to support street maintenance, bicycle and pedestrian improvements, and paratransit services. Execution of the MPFA will not impact the General Fund.
ATTACHMENT
A: Resolution
B: Draft Alameda CTC Master Programs Funding Agreement
PREPARED BY: Erwin Ching, Engineering Manager, Public Works Department