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HomeMy WebLinkAbout01-14-2026 MTC Agenda Packet Mass Transportation Committee AGENDA Wednesday, January 14, 2026, 2:30 p.m. Council Hearing Room, 990 Palm Street, San Luis Obispo The Mass Transportation Committee holds in-person meetings. Zoom participation will not be supported. Attendees of City Council or Advisory Body meetings are eligible to receive one hour of complimentary parking; restrictions apply, visit Parking for Public Meetings for more details. INSTRUCTIONS FOR PUBLIC COMMENT: Public Comment prior to the meeting (must be received 3 hours in advance of the meeting): Mail - Delivered by the U.S. Postal Service. Address letters to the City Clerk's Office at 990 Palm Street, San Luis Obispo, California, 93401. Email - Submit Public Comments via email to advisorybodies@slocity.org. In the body of your email, please include the date of the meeting and the item number (if applicable). Emails will not be read aloud during the meeting. Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, the agenda item number you are calling about, and leave your comment. Verbal comments must be limited to 3 minutes. Voicemails will not be played during the meeting. *All correspondence will be archived and distributed to members, however, submissions received after the deadline may not be processed until the following day. Public Comment during the meeting: Meetings are held in-person. To provide public comment during the meeting, you must be present at the meeting location. Electronic Visual Aid Presentation. To conform with the City's Network Access and Use Policy, Chapter 1.3.8 of the Council Policies & Procedures Manual, members of the public who desire to utilize electronic visual aids to supplement their oral presentation must provide display-ready material to the City Clerk by 12:00 p.m. on the day of the meeting. Contact the City Clerk's Office at cityclerk@slocity.org or (805) 781-7114. Pages 1.CALL TO ORDER Chair Figueroa will call the Regular Meeting of the Mass Transportation Committee to order. 2.PRESENTATION On November 18, 2025, the City Council approved consolidating the Public Works and Utilities Departments, creating a new Director position, and reclassifying the former Director positions into Assistant Director roles. Following this action, Aaron Floyd was appointed Director of the consolidated Public Works and Utilities Department. Aaron previously served as Utilities Director and, since May 2025, as Interim Public Works Director. The City has also completed recruitment for the new Assistant Director positions. Madeline Kascinta was appointed Assistant Director of Public Works, and Shawna Scott was appointed Assistant Director of Utilities. In her role, Madeline will oversee the Public Works operational branch, including the City’s Transit program. 3.PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA At this time, people may address the Committee about items not on the agenda. Persons wishing to speak should come forward and state their name and address. Comments are limited to three minutes per person. Items raised at this time are generally referred to staff and, if action by the Committee is necessary, may be scheduled for a future meeting. 4.CONSENT Matters appearing on the Consent Calendar are expected to be non- controversial and will be acted upon at one time. A member of the public may request the Mass Transportation Committee pull an item for discussion. The public may comment on any and all items on the Consent Agenda within the three-minute time limit. 4.a CONSIDERATION OF MINUTES - NOVEMBER 12, 2025, MASS TRANSPORTATION COMMITTEE MINUTES 5 Recommendation: To approve the Mass Transportation Committee Minutes of November 12, 2025. 5.COMMENT AND DISCUSSION 5.a SLO TRANSIT UPDATE 7 Mobility Services Business Manager Alex Fuchs will provide an update on the following: Transit Innovation Study Implementation Progress Report• Short-Range Transit Plan Implementation Progress Report• 5.b STUDY SESSION FOR MICROTRANSIT FEASIBILITY STUDY 11 Receive a presentation from Cal Poly student and SLO Transit Intern, Emily McBride, on a Microtransit Pilot Program Feasibility Study and provide feedback on the initial service alternatives, community engagement, and next steps. 6.ADJOURNMENT The next Regular Meeting of the Mass Transportation Committee meeting is scheduled for March 11, 2026, at 2:30 p.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo. LISTENING ASSISTIVE DEVICES are available -- see the Clerk The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7114 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7410. Service Complaints: Complaints regarding bus service or routes are to be directed to the customer service line at (805) 594-8090. Reports of complaints/commendations are available to the public upon request. Agenda related writings or documents provided to the Mass Transportation Committee are available for public inspection on the City’s website: https://www.slocity.org/government/mayor-and-city-council/agendas-and- minutes. Meeting recordings may be found on the City’s website: https://opengov.slocity.org/WebLink/Browse.aspx?id=60984 1 Mass Transportation Committee Minutes November 12, 2025, 2:30 p.m. Council Hearing Room, 990 Palm Street, San Luis Obispo Mass Transportation Committee Members Present: Member Hans Hershberger (Business Rep), Member Robin Kisinger (Senior Rep), Member Audrey Lariz (Alternate), Member Stone Ramage (ASI Rep), Vice Chair Marlene Cramer (Cal Poly Rep), Chair David Figueroa (At-Large Rep) MTC Members Absent: Member Michaela Crampton (Technical Rep), Member Matthew Duffy (Disability Community Rep) City Staff Present: Mobility Services Business Manager Alexander Fuchs, Transit Coordinator Jesse Stanley _____________________________________________________________________ 1.CALL TO ORDER A Regular Meeting of the San Luis Obispo Mass Transportation Committee was called to order on November 12, 2025, at 2:33 p.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo, by Chair Figueroa. 2.OATH OF OFFICE FOR NEW MTC MEMBER City Clerk Teresa Purrington administered the Oath of Office to newly appointed Mass Transportation Committee Member Stone Ramage. 3.PUBLIC COMMENT FOR ITEMS NOT ON THE AGENDA Public Comment: None --End of Public Comment-- 4.CONSENT 4.a CONSIDERATION OF MINUTES - SEPTEMBER 10, 2025, MASS TRANSPORTATION COMMITTEE MINUTES Item 4.a Page 5 of 49 2 Motion By Member Lariz Second By Member Hershberger To approve the Mass Transportation Committee Minutes of September 10, 2025. CARRIED 5.BUSINESS ITEMS 6.COMMENT AND DISCUSSION 6.a 2027 REGIONAL TRANSPORTATION PLAN UPDATE Received update on the San Luis Obispo Council of Governments’ 2027 Regional Plan Update from Mass Transportation Committee Member Audrey Lariz. 6.b SLO TRANSIT UPDATE Mobility Services Business Manager Alex Fuchs provided updates on the following: •6 Express Service •Memorandum of Understanding for Pilot Express Transit Services •Request for Proposals for Transit Operation and Maintenance Services •2025 Holiday Trolley 7.ADJOURNMENT The meeting was adjourned at 3:42 p.m. The next Regular Meeting of the Mass Transportation Committee is scheduled for January 14, 2026, at 2:30 p.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo. _________________________ APPROVED BY MASS TRANSPORTATION COMMITTEE: XX/XX/202X Item 4.a Page 6 of 49 Item 5.a Mass Transportation Committee Agenda Report For Agenda of: 1/14/2026 Item Number: 5.a FROM: Alexander Fuchs, Mobility Services Business Manager Phone Number: (805) 783-7877 E-mail: afuchs@slocity.org SUBJECT: SLO TRANSIT UPDATE FOR JANUARY 2026 MEETING RECOMMENDATION Receive the SLO Transit Update for January 2026 and provide comment on discussion items as necessary DISCUSSION Transit Innovation Study Implementation Progress Report In January 2024, City Council reviewed a draft of the Transit Innovation Study and directed staff to finalize the report and begin implementation. Specific recommendations of the study were further analyzed and incorporated into the FY 2026-30 Short-Range Transit Plan. In March 2025, staff published its first annual implementation progress report outlining the description and status of the ‘High’ and ‘Medium’ priority recommendations of the study. Staff are preparing the second annual implementation progress report with updated information for the same ‘High’ and ‘Medium’ priority recommendations. Staff anticipate the report to be published in March of 2026; however, below is a summary of the major updates that will be included in this year’s report. Recommendation No. 2 - Pursue Open-Loop Payment System Description: Open-Loop payment systems allow riders to pay fares by ‘tapping’ their payment card or mobile device when boarding. The payment system also allows for ‘fare capping’ which means riders never pay more than the cost of a daily, weekly, or monthly pass. Once they reach that amount, all additional rides in that period are free. It ensures riders automatically get the best fare without needing to buy a pass in advance. Status: In May 2025, Council approved execution of agreements between the City and vendors for hardware and software needed to implement the project. Installation of hardware is tentatively scheduled for early January 2026 and system launch in February 2026. Page 7 of 49 Item 5.a Recommendation No. 4 – Replace CAD/AVL System on Fixed-Route Vehicles Description: Computer-Aided Dispatch and Automated Vehicle Location (CAD/AVL) system connects with other technologies such as onboard voice announcements, passenger counters, security cameras, and real-time passenger information displays. CAD/AVL system also improves service scheduling, reporting accuracy, and provide better, more reliable information to customers. Status: In December 2025, Council approved the replacement of the current CAD/AVL system through a purchasing cooperative. Staff is currently working with the selected vendor, Connexionz, on design and configuration of the system. Hardware installation is tentatively scheduled for February to March 2026 and system launch in April 2026. This project also supports Recommendation No. 5 – Upgrade Automated Passenger Counters – as well as Recommendation No. 6 – Enhance Real-Time Passenger Information. The new CAD/AVL system will improve the accuracy of passenger count data needed to meet state and federal requirements. It will also provide real-time transit information to riders through mobile apps, Google Maps, and text messages. Recommendation No. 11 – Pursue Microtransit Mobility Services Description: Microtransit is a flexible on-demand transportation service that provides shared rides within a defined area. Think of it as an on-demand community shuttle. This form of public transit can fill service gaps in traditional services offered by public transit agencies. Status: In August 2025, the City Transit Intern and Cal Poly Graduate Student initiated a Microtransit Feasibility Study. The purpose of the study is to develop a set of alternatives as to how Microtransit could be implemented and operated in the City including proposed success metrics. In May 2026, a draft Microtransit Feasibility Study will be presented to City Council for their consideration. Implementation of a Microtransit pilot program would not occur until in FY 2027-28. Page 8 of 49 Item 5.a Short-Range Transit Plan Implementation Progress Report The FY 2026-30 Short-Range Transit Plan (SRTP) was adopted by City Council in April 2025 and includes service, fare, and program change recommendations for the next five year period. The near-term recommendations (one to two years) were incorporated into the City’s Major City Goals and adopted with the 2025-27 Financial Plan in June 2025. Similar to the Transit Innovation Study, staff plans to provide annual progress reports on the implementation of the plan’s recommendations. Below are some of the status updates that will be included in this year’s report. Reinstate Services to Pre-pandemic Levels Description: Reinstate the remaining Route 3A trips (7 additional trips between 6 a.m. and 12 p.m.), the Highland Tripper, (serving Cal Poly campus and Foothill Boulevard) and the San Luis Tripper (connecting downtown with SLO High School), which have been suspended since the onset of the pandemic. Status: The remaining Route 3A trips were reinstated on January 5, 2026. The Highland Tripper and San Luis Tripper are scheduled to be reinstated in August 2026 to align with the 2026-27 Academic service. Increase Routes 4A/B Service Frequency Description: The SRTP includes a recommendation to add two additional trips in the morning on Route 4A and two additional trips in the evening on Route 4B to help Cal Poly students get to and from campus. Status: Staff anticipates implementing the additional Route 4 trips in August 2026 when Academic service resumes. Modify Academic Service to Align with Cal Poly’s Semester System Transition Description: Cal Poly is the last campus within the California State University system to transition to the semester-based academic calendar. The university was informed in October of 2021 that it would begin the process of converting to a semester -based calendar. Cal Poly's first term on a semester system will begin fall 2026. Status: Cal Poly’s adopted 2026-27 Academic Calendar indicates that Fall term classes Page 9 of 49 Item 5.a begin on Monday August 24, 2026. Staff plans on resuming Academic service at least two weeks prior to the beginning of classes, so that incoming students can get acquainted with SLO Transit’s services before classes start. Eliminate 5-Day and 7-Day passes Description: The SRTP recommends simplifying pass options by eliminating the 5 -Day and 7-Day passes which made up less than one percent of boardings in FY 2022-23. Status: COMPLETE. With the adoption of the plan in April 2025, Council also approved SLO Transit’s fare rates including the elimination of the 5 -Day and 7-Day passes. Expand the Downtown Access Pass Program Geographic Boundaries Description: The Downtown Access Pass (DAP) program allows employees of the downtown area to ride SLO Transit at no cost. As recommended by the Transit Innovation Study, the SRTP also recommends expanding the geographic boundaries east and south of the existing program area. Status: Staff plans on bringing an item to City Council for consideration in late summer/early fall of 2026 to phase in the expansion of the DAP program boundaries and possibly to make other changes like allowing downtown residents to also participate in the program. Page 10 of 49 Item 5.b Mass Transportation Committee Agenda Report For Agenda of: 1/14/2026 Item Number: 5.b FROM: Emily McBride, Transit Intern; Alexander Fuchs, Mobility Services Business Manager Phone Number: (805) 783-7877 E-mail: emcbride@slocity.org, afuchs@slocity.org SUBJECT: STUDY SESSION FOR THE MICROTRANSIT PILOT PROGRAM FEASIBILITY STUDY RECOMMENDATION Receive a presentation from Cal Poly student and SLO Transit Intern, Emily McBride, on a Microtransit Pilot Program Feasibility Study and provide feedback on the initial service alternatives, community engagement, and next steps. REPORT-IN-BRIEF This report presents an update on the Microtransit Pilot Program Feasibility Study including initial service alternatives. Staff is seeking feedback from the Mass Transportation Committee (MTC) members and the public in attendance on the initial service alternatives, additional community engagement efforts, and next steps in preparation for the presentation of a draft study for City Council’s consideration at the May 5, 2026 meeting. POLICY CONTEXT The Transit Innovation Study (TIS) includes a recommendation to pursue Microtransit as a transportation service enhancement (recommendation 7.1). Implementation of a Microtransit pilot program was further analyzed in the Short-Range Transit Plan (SRTP 2025). The SRTP includes a service change recommendation to implement a two -year Microtransit pilot program beginning in fiscal year (FY) 2027-28 that will operate from 10:00 p.m. to 12:00 a.m., daily. For the purposes of this study, Microtransit is defined as an on-demand transportation service that uses multi-passenger vehicles within a designated service area. Riders can request a trip through a mobile app or by callin g a dispatcher, and routes are created in real time based on rider requests. It could be thought of as a ‘community shuttle’ public service. Page 11 of 49 Item 5.b BACKGROUND Cal Poly students enrolled in the Master of City and Regional Planning (MCRP) program must complete a professional project, thesis dissertation, or exam as their culminating experience. The City’s Transit intern, Emily McBride, is in her second year of the MCRP program and has optioned to complete a professional project as her culminating experience. After discussions with City staff and her graduate advisor, Emily has chosen to conduct a Microtransit Pilot Program Feasibility Study. The City has included in both the Transit Innovation Study and the Short -Range Transit Plan a recommendation to pursue a Microtransit pilot program. The purpose of a Microtransit Pilot Program Feasibility Study is to further analyze the operational and service elements not discussed in the SRTP and to present service alternatives based on the additional analysis which will inform the scope of a pilot Microtransit program. The draft study (Attachment A) consists of the following elements completed since August 2025: Existing Conditions, Microtransit Overview, Initial Public Outreach, and Service Alternatives. Each of these elements are also summarized below. Draft Microtransit Pilot Program Feasibility Study Elements Existing Conditions This section summarizes fixed-route and on-demand transit coverage in the City of San Luis Obispo, in addition to regional air and rail transportation options. Relevant public feedback and analysis from the 2025 Short Range Transit Plan and San Luis Obispo Coalition of Governments (SLOCOG) Unmet Transit Needs report are also included.  Transit coverage: There are locations and time windows within SLO Transit’s service boundary that have less service than others. In relation to distance to stops, 34 percent of the population lives further than one quarter of a mile from a bus stop, which may be too far for some people to walk to. Additionally, some residents may live in areas where service doesn’t start as early or run as late as they may need. Finally, with only “A” routes serving the City on the weekends, specific types of trips may be hard to make. This can include cross-town travel or travel a short distance but, in a counterclockwise direction (the type of trip served by “B” routes). As described in the SRTP, it is planned to have “B” routes operate on the weekends beginning fiscal year 2026-2027.  Demand-response transit: There are multiple demand-response transit options currently available to residents of San Luis Obispo, and all of them serve a specific population (people with disabilities, seniors, or veterans). This means that some residents are not eligible to utilize these on-demand services. All these services require pre-booking at least 24 hours in advance, which can be inconvenient for riders using the service.  Regional Transportation: Departures and arrivals via rail, bus, and plane occur throughout the day from the San Luis Obispo Train Station and San Luis Obispo Page 12 of 49 Item 5.b County Airport. Arrivals and departures from these locations early in the morning and late evening are common, which is when SLO Transit operates limited service or no service at all.  Relevant Studies – SLO Transit Short-Range Transit Plan: There are multiple findings in the Short-Range Transit Plan relevant to the development of a Microtransit pilot. Demographic analysis found that from 2020-2030, the number of ‘mature retirees’ (75- 84 years old) is predicted to grow 61%. As seniors are known to use transit at a higher rate than the overall population, this will mean an increased demand for transit options in the City into the next decade. It is noted that Cal Poly is planning to increase enrollment an additional 5,000 students by 2035, with an increase in on -campus residents from 8,000 to 15,000. This increase in on -campus residents may mean an increase in demand for transportation options from Cal Poly students. The SRTP also presents a Transit Needs Index which shows downtown and the southern -central area of the City as the areas with the highest transit needs.  Relevant Studies – SLOCOG Unmet Transit Needs Study (2024-2025): Every year, SLOCOG asks community members if they have any unmet transit needs, and the following requests were specific to SLO Transit. A significant number of respondents requested express or shuttle service, including specifically to the SLO Airport. Additionally, increased service on the weekends was requested by multiple residents. Microtransit Overview This section provides information on the various services and operational elements that make up a Microtransit program. Service model describes how Microtransit operates in a community – where riders can be picked up and dropped off, and how flexible the service is. The three service models relevant to SLO Transit are below:  Zone-Based with Point-to-Point (Anywhere-to-Anywhere Service - Within a Zone): Riders can request a trip between almost any two places within a defined service area. Pickups and drop-offs may happen at nearby corners, the curb, or right at your door, depending on the location.  Zone-Based with External Nodes (Anywhere-to-Anywhere with Key Destinations Outside the Area): This works like the anywhere-to-anywhere service within the main service area, but also includes select destinations outside the area, such as an airport or major hub, where riders can be picked up or dropped off.  Point Deviation (Key Destinations Service): Trips connect a set of popular community destinations, like transit centers, shopping areas, medical offices, community centers, or downtown, rather than any address. Riders travel between these common stops using on-demand vehicles. Operational model refers to the logistics, mechanisms, and technology used to deliver Microtransit. The two common operational models can be described as Software as a Page 13 of 49 Item 5.b Service (SaaS) and Turnkey.  Software as a Service: Is a model where Microtransit operations are publicly regulated and operated. A transit agency partners with a vendor to provide on -board routing and customer-facing smartphone application technology. Vehicles are owned by the transit agency, and drivers and dispatchers are employees of the transit agency.  Turnkey1: Is a model which is publicly regulated but privately operated. A transit agency enters an agreement with a private company that provides not only technology, but vehicles, drivers, and dispatchers as well. In some cases, agencies will opt for two different providers: one for technology and one for operations. Operational Costs: Public transit is usually funded through a combination of federal, state and local funding, combined with fare revenues. In general, on-demand transit provides a significantly lower farebox recovery (the percent of the operation cost covered by fares), due to the lower average passenger trips per hour. An industry-standard metric used to assess the cost of providing transit service is cost per vehicle per revenue hour. Based on a review of multiple agencies operating turn -key Microtransit programs, the average cost per vehicle per revenue hour is $108. Fares: Fares for Microtransit can be established based on agency goals. To align with the goal to increase transit ridership in the City, fares should be an accessible price. Additional considerations are fiscal responsibility and comparison to private and subsidized demand-response options in the area. Most agencies choose t o offer discounts on Microtransit fares to those riders who qualify for fixed-route discount passes like seniors and persons with disabilities. Fares for Microtransit service provided by agencies in California range from free, to $2-$6 per ride. Fare collection most often occurs through the mobile application, though Microtransit vehicles are often equipped with fareboxes to allow for cash payment upon boarding. Equity and Access: Microtransit can provide a more accessible transit network in a variety of ways. It can function as a supplement to existing paratransit, by providing a more flexible and immediately on-demand form of transportation for riders with disabilities. Additionally, it can provide another option to those with limited mobility and/or access to vehicles, like seniors, youth, or those who don’t own a car. When designed to fill service gaps during the times of day fixed-route does not operate, Microtransit can provide a transit option to those who work early-morning or late-night shifts. By providing a publicly subsidized on-demand transit option, Microtransit can remove the financial barrier to transportation. Public Outreach Efforts Public outreach efforts are summarized in the Outreach section of the report. Thus far, four in-person pop-up events have been held to educate the public about Microtransit and 1 This is the model recommended in the SRTP as it limits the need for initial capital investment in vehicles or operational resources and can be deployed quickly Page 14 of 49 Item 5.b to promote a Microtransit survey. Certain transit-oriented groups were targeted for outreach including older adults, college students, and current transit riders. Additionally, stakeholder meetings were held with representatives from SLOCOG, San Luis Obispo Regional Transit Authority (RTA), the City’s Office of Sustainability, and the San Luis Obispo Airport’s Office of Sustainability. Survey: An eight-question survey was created to gauge interest in Microtransit. The survey provided an overview of Microtransit and asked questions about how residents would use the service if it was available. A total of 73 survey responses were received. It is important to note the results of this survey reflect the needs of residents who are likely more transit-dependent than the overall population of the City. This is due to the survey being promoted at pop-ups meant to reach people more likely to be transit dependent: seniors at the San Luis Obispo Senior Citizens Center, college students and Cal Poly, and transit riders and the Downtown Transit Center. All participants said they would utilize Microtransit if it was an available service. When asked what time during the day they would use Microtransit, the most popular choice was midday – though there was notable interest for late evening and early morning as well. “Accessing essential services” was the most selected answer to the question of what types of trips Microtransit would be used for. Full results from the survey can be seen in Attachment A. Initial Alternatives Analysis This section outlines Operational Elements and Initial Alternatives for review by the City’s Mass Transportation Committee. Below are the assumptions made when developing the following alternatives. These elements were determined based on recommendations in the SRTP, established industry trends, and relevancy to San Luis Obispo.  Operational Model: Turnkey model, as recommended in the SRTP. A turnkey model will allow the City to easily implement a pilot. Contract should include performance metrics and access to data to allow for service modifications during the pilot window.  Pilot Length: Two-year pilot, as recommended in the SRTP  Service Model: Zone-based with either Point-to-Point or External Nodes service. A Zone-based model asks very little of users, is convenient, accessible, and provides a service unique from and complementary to fixed route.  Fares: $3 to $5 per trip, depending on final service Alternative. Accessibly priced fares allow for all residents to utilize Microtransit as a service. Pass-holders (Seniors, riders with disabilities, and K-12 Students) will receive a discount on the established fare. Cal Poly students will pay full fare.  Vehicles: Electric vehicles will be used, and they will be ADA accessible.  Coverage: Coverage should be targeted to fill service gaps either by days of week, hours of service, or geographic coverage. Page 15 of 49 Item 5.b Initial Alternatives The following three alternatives are provided as initial service options for a Microtransit pilot program. The alternatives are based on a synthesis of se rvice gaps and needs found in: SLOCOG Unmet Transit Needs Survey, SLO Transit’s 2025 SRTP, and results from the community outreach efforts. The service needs are:  Additional evening and weekend service when fixed route is limited  Additional service to the Airport and Train Station, particularly in the early mornings  More service at midday to supplement existing door-to-door service for seniors and others without vehicle access Alternative 1: Evening Service (10:00 p.m. to 12:00 a.m.), City-wide and Airport, 7 days/week This is the recommended alternative in the SRTP, however it is considered as a year- round service, as SLO Transit will be operating on a year-round schedule by 2028. Service Gap Addressed: Late night service Key Benefits: Fills an existing service gap, when fixed route service is limited. The coverage area is City-wide including the SLO Airport, so it will be equally accessible. Lowering annual operating cost compared to the other alternatives based on the number of annual service hours needed to operate this alternative. Considerations: Staffing late shifts may be challenging. Potential for high demand as an alternative to other Transportation Network Companies (TNC) (Uber, Lyft) options for evening travel to downtown may cause increased wait times. Alternative 2: Early Morning Service (4:00 a.m. to 8:00 a.m.), Targeted Coverage, 7 days/week This alternative is presented as an option with a target coverage area. Less geographic coverage decreases the number of vehicles which lowers costs. Potential targeted area could be the east side of SLO including Cal Poly, the SLO Train Station, and the SLO Airport. Service Gap Addressed: Early morning service, service to San Luis Obispo Train Station and San Luis Obispo County Airport Key Benefits: Targeted geographic area allows for lower costs and fewer vehicles needed. Provides service to regional/national transportation – SLO Airport and SLO Train Station. Considerations: Does not provide service to all residents in the City. Staffing early shifts may be challenging. Page 16 of 49 Item 5.b Alternative 3: All Day Service (8:00 a.m. to 8:00 p.m.), City-wide, Weekends This alternative provides service throughout the City on the weekends, when the Counterclockwise “B” routes do not operate. The service window covers the same time fixed route operates on weekends. Service Gap Addressed: Weekend service Key Benefits: Provides increased weekend service. Equal coverage across the City. Considerations: Has potential to pull ridership from fixed route as service window is the same as fixed route. Does not provide weekday, early morning ,or late evening service. Table 1 - Initial Alternatives Comparison Alternative 1: City-Wide Evening Service Alternative 2: Targeted Morning Service Alternative 3: City-Wide Weekend Service Geographic Coverage City-wide Targeted City-wide Service Window Late Night (10pm-12am) Early Morning (4am-8am) All Day (8am-8pm) Days of Week Mon - Sun Mon-Sun Weekends Service Deliver Model Zone-based Point-to-point Zone-based with external nodes Zone-based Point-to-point Est. Trips / Year 7,200 9,600 12,200 Cost Low Low Medium Conclusion These three initial alternatives showcase different approaches to designing a pilot program that is reasonable in cost and size, while also addressing existing service gaps. Based on feedback from MTC and continuing public outreach efforts, thes e alternatives will be modified and presented to City Council on May 5, 2026, for their consideration. If a piloted Microtransit program proves to be a successful form of public transit in San Luis Obispo, the City could consider expanding service to an all-day, city-wide Microtransit service. Questions for the Committee’s Consideration 1. Of the three Initial Alternatives presented, is there one that the MTC thinks should be prioritized, based on their experience with and knowledge of SLO Transit and/or the community’s public transportation needs? 2. Are there any specific service gaps not addressed by one or more of the Initial Alternatives that the MTC thinks should be taken into consideration? 3. What additional outreach should be conducted between now and the May 5, 2026 Council meeting? Page 17 of 49 Item 5.b NEXT STEPS After presentation to the MTC, comments and feedback will be recorded and incorporated into the draft report. Phase two includes further refinement of the service alternatives, additional public outreach, developing success metrics for the pilot program, and presentation to City Council at the May 5, 2026 meeting. ATTACHMENTS A - Draft Microtransit Pilot Program Feasibility Study Page 18 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 1 Phase 1 Draft Microtransit Pilot Program Feasibility Study January 7, 2026 Emily McBride City of San Luis Obispo Table of Contents Introduction ...................................................................................................................... 3 Background ............................................................................................................................. 3 Policy Context .......................................................................................................................... 3 Existing Conditions ............................................................................................................ 5 Transit Network ................................................................................................................ 5 Fixed Route System .................................................................................................................. 5 Service Coverage ...................................................................................................................... 5 Key Takeaways ........................................................................................................................................ 8 Demand-Response Transit ........................................................................................................ 8 Key Takeaways ........................................................................................................................................ 9 Regional Transportation ............................................................................................................ 9 Key Takeaways ...................................................................................................................................... 10 Relevant Study Findings ...........................................................................................................10 San Luis Obispo Coalition of Governments (SLOCOG) 2024/2025 Unmet Transit Needs Study ..................... 10 Short Range Transit Plan ........................................................................................................................ 11 Microtransit Overview ..................................................................................................... 13 Operations Overview ...............................................................................................................13 Service Models .......................................................................................................................14 Service Model Key Terms ....................................................................................................................... 14 Operational Models ................................................................................................................14 Interaction with Preexisting Transit Services ..............................................................................15 Fixed Route ........................................................................................................................................... 15 Paratransit ............................................................................................................................................ 15 Cost and Fares ........................................................................................................................16 Page 19 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 2 Operational Costs .................................................................................................................................. 16 Fares .................................................................................................................................................... 16 Equity and Access ....................................................................................................................17 Case Studies ...........................................................................................................................17 Santa Barbara Municipal Transit District – The Wave Microtransit ............................................................. 17 Key Takeaways ...................................................................................................................................... 18 Santa Maria Regional Transit– SMRT Micro ............................................................................................. 18 Key Takeaways ...................................................................................................................................... 18 Sacramento Regional Transit – SacRT Flex ............................................................................................... 19 Key Takeaways ...................................................................................................................................... 19 City of Whittier - Whittier Cruiser ........................................................................................................... 19 Key Takeaways ...................................................................................................................................... 19 Community Engagement ............................................................................................ 20 Outreach Events ......................................................................................................................20 Pop-Up Events ...................................................................................................................................... 20 Map Activity ......................................................................................................................................... 21 Survey ....................................................................................................................................22 Survey Results....................................................................................................................................... 23 Stakeholder Meetings ..............................................................................................................27 Community Partner Outreach ..................................................................................................28 Continuing Outreach ...............................................................................................................28 Initial Alternatives Analysis .............................................................................................. 29 Operational Elements ..............................................................................................................29 Initial Alternatives ...................................................................................................................29 Alternative 1: Evening Service (10:00 p.m. to 12:00 a.m.), City-wide and Airport, 7 days/week .................... 30 Alternative 2: Early Morning Service (4:00 a.m. to 8:00 a.m.), Targeted Coverage, 7 days/week ................... 30 Alternative 3: All Day Service (8:00 a.m. to 8:00 p.m.), City-wide, Weekends .............................................. 30 Initial Alternatives Comparison Table ................................................................................................. 31 Conclusion .......................................................................................................................................... 31 Page 20 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 3 Introduction This draft of the Microtransit Pilot Program Feasibility Study covers background to inform discussion of potential service alternatives at the January meeting of the City of San Luis Obispo Mass Transportation Committee (MTC). Report Sections: 1. Existing Conditions 2. Microtransit Overview 3. Public Outreach 4. Initial Alternatives Project Phases: o Phase 1 entails the writing of the above report sections, conducting public outreach, and presenting findings for discussion to the Mass Transportation Committee. o Phase 2 entails detailing service alternatives, additional public outreach, developing success metrics for the pilot program, and conducting a study session with the City Council. Background A Microtransit Pilot Program was first recommended in the Transit Innovation Study (TIS). A key recommendation in the TIS was to pursue Microtransit as a transportation service (recommendation 7.1). Specific recommendations for Microtransit service were introduced in the Short-Range Transit Plan (SRTP 2025). The Microtransit Pilot Program Feasibility Study is a next step toward implementing a two-year pilot program as recommended by the SRTP beginning fiscal year (FY) 2027-28. Policy Context As part of the City’s strategic planning process for the 2025-2027 Financial Plan, a set of Major City Goals were established for the two-year fiscal period. Under the Major City Goal category of Infrastructure and Sustainable Transportation, action item 5 states: “Support and maintain policies aimed at expanding mass transportation and public transit.” The City’s Circulation Element of the General Plan (2014) established transportation mode-split objectives. The Circulation Element calls for 12 percent of trips within the City to be made by transit by the year 2035. The City’s Climate Action Plan (CAP 2020) outlined steps for reaching community-wide carbon neutrality by 2035. Pursuant to this goal, the CAP established an intermediary mode split benchmark of 8 percent of trips made by transit, by 2030. The Transit Innovation Study Page 21 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 4 recommended pursuing Microtransit as a service enhancement, and the Short-Range Transit Plan (SRTP 2025) outlined potential alternatives to provide this service. ➢ Climate Action Plan (2020): Connected Community Action 4.3 Explore additional innovative transit options in the 2024 SRTP (e.g., on demand deviated routes, electric fleet expansion, Microtransit, Bus Rapid Transit, and Transit Signal Priority). ➢ Transit Innovation Study (2022) Recommendation 7.2 Pursue Microtransit Mobility Services - In addition to traditional fixed-route service improvements, there are several opportunities to implement on-demand mobility or fixed-route Microtransit that may help supplement current service and further expand ridership (…). Page 22 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 5 Existing Conditions This section details the existing transit conditions in the City of San Luis Obispo. The Transit Network portion covers the current transit availability in the City including fixed route, demand- response service, rail, airline, and intercity bus. The Relevant Study Findings portion summarizes information from the San Luis Obispo Council of Governments (SLOCOG) Unmet Transit Study and the San Luis Obispo Short Range Transit Plan. Transit Network Fixed Route System SLO Transit operates eight fixed routes year-round - four numbered routes running bidirectionally. “A” routes run in clockwise direction, while “B” routes run in a counterclockwise direction. Due to the significant population increases when Cal Poly is in session, SLO Transit operates at higher levels of service during the academic year (September to June, known as “academic service”). Cal Poly will switch to a year-round academic schedule starting in the 2028- 2029 year, and at that time SLO Transit plans to move to operating academic service year-round. Currently, during summer, SLO Transit operates a non-academic schedule which provides slightly reduced service. In addition to year-round fixed routes, SLO Transit operates one tripper route (Laguna Tripper), one express route (6X from Cal Poly to Downtown), and trolley in Downtown San Luis Obispo. Historically, operations have also included a SLO High Tripper, serving San Luis Obispo High School, and a Highland Tripper serving the Cal Poly campus. These Tripper services were suspended during the pandemic and have yet to be restored. Service Coverage As this study is addressing potential service additions beginning in fiscal year 2027-2028, the information regarding SLO Transit’s service coverage will be based on SLO Transit’s academic service schedule. The academic service will operate year-round beginning in fiscal year 2028- 2029, as Cal Poly plans to transition to a year-round academic schedule then. Throughout the 7-day week, there are two distinct service schedules: weekday service and weekend service. During the weekdays, all eight fixed routes operate, with the “A” routes operating during a larger service window compared to “B” routes. On weekends, only the “A” routes operate, with a shorter service window compared to the weekdays. Figures 1 and 2 illustrate the service coverage throughout the day for weekday and weekend service. Page 23 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 6 Figure 1: SLO Transit weekday service by route and hours Figure 2: SLO Transit weekend service by route and hours Page 24 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 7 SLO Transit’s service boundary encompasses the City, Cal Poly campus, and the San Luis Obispo County Airport. In Figure 3 below, a one quarter mile walkshed1 buffer was overlaid on each bus stop serviced by SLO Transit. Figure 3 illustrates that a large percentage of the residential area of the City are within walkable distance of a bus stop. Based on SLO Transit’s standard for service coverage, the 2025 SRTP estimated that two-thirds of residents live within walking distance of a bus stop. 1Walkshed is an area reachable from a specified point. One quarter mile is a transit industry standard when looking at access to transit. On average, this distance can be covered by foot in 10 minutes, and areas that fall within this boundary are considered a ‘walkable’ distance to and from a bus stop. Figure 3: 1/4 mile walkshed from SLO Transit bus stops Page 25 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 8 Key Takeaways There are locations and time windows within SLO Transit’s service boundary that have less service than others. In relation to distance to stops, 34 percent of the population lives further than one quarter mile from a bus stop, which may be too far for some people to walk to. Additionally, some residents may live in areas where service doesn’t start as early as they may need. Finally, with only “A” routes serving the city on the weekends, specific types of trips may be hard to make. This can include cross-town travel or travel a short distance but, in a counterclockwise direction (the type of trip served by “B” routes). As described in the SRTP, it is planned to have “B” routes operate on the weekends beginning fiscal year 2026-2027. Demand-Response Transit There are multiple public demand-response transit services available within the City which are not operated by SLO Transit. Demand-response transit is defined as flexible, shared transit that operates without a schedule in repone to customer needs. These services include Runabout Paratransit, Senior Go!, Veterans Express Shuttle, and Dial-a-Ride. These services provide door- to-door or curb-to-curb on-demand transit to certain population groups. The tables below provide a description of the service including the target audience if applicable, the fare, booking method, and availability of the service. Runabout Paratransit Description Operated by RTA, Runabout is San Luis Obispo county’s Americans with Disabilities Act (ADA) paratransit program which provides ADA complementary service. As a regional provider, this service provides the ADA complementary service for the City of San Luis Obispo. Riders must be ADA certified to qualify for Runabout service. Pick up and drop -offs are provided within ¾ miles of regular bus routes. Fare Double the regular one-way fixed route bus for the same trip distance (Between $2.50 - $11.00). Booking At minimum, reservations must be made one day in advance and can be made up to 7 days in advance. Reservations are made by phone. Availability 7 days a week Senior Go! Description Operated by Ride-On Transportation. Available to all seniors (age 65+) in San Luis Obispo County. Up to eight rides per month are available. Service is door-to-door or curb-to-curb. Fare Based on distance, starting at $2.50 for up to 5 miles. Booking Reservations must be made 2-3 days in advance. Reservations are made by phone. Availability Monday – Friday 9:00am – 5:00pm Page 26 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 9 Veterans Express Shuttle Description Operated by Ride-On Transportation. Available for veterans, providing rides from their homes to local veteran’s clinics. Service is door-to-door and offered to veterans with disabilities or veterans with no other means of transportation. One ride per month, per rider based on current funding. Fare $3 each way Booking Reservations must be made 2-3 days in advance. Reservations made by phone or on Ride-On’s website. Availability 7 days a week, 6:30am – 5:00pm Key Takeaways Though there are multiple demand-response transit options currently available to residents of San Luis Obispo, all of them serve a specific population. All these services require pre-booking at least 24 hours in advance which can be inconvenient for riders using the service. Regional Transportation First-mile / last-mile connectivity involves the short distance to connect people to longer transit trips. This can include connections to intercity buses, like Greyhound, and regional and interstate rail, like Amtrak. Though not as common - connectivity to airports can also be considered a first mile / last-mile connection. The table below outlines common arrival and departure times of regional transportation from the San Luis Obispo County Airport, located at 975 Airport Drive, and the San Luis Obispo Train Station, located at 1011 Railroad Avenue. Location Type of Service Notes on arrival/departure patterns San Luis Obispo County Airport Flights High flight volume windows: Departures - 5:00am-7:30am Departures / Arrivals – 11:00am – 2:30pm San Luis Obispo Train Station Rail Service (Coast Starlight) Departure – 6:00am (SB) Arrival – 9:00pm (Return) San Luis Obispo Train Station Rail Service (Pacific Surfliner) Arrival – 3:25pm (SB), 2:45pm (NB) Departure – 3:35pm (SB), 3:05pm (NB) San Luis Obispo Train Station Amtrak Bus 6-10 buses / day Southbound departures – morning-midday Northbound departures - afternoon Arrivals – midday Page 27 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 10 San Luis Obispo Train Station Greyhound Bus 1-2 buses / day Departures – morning and evening Arrivals – midday San Luis Obispo Train Station Flix Bus 2-4 buses / day Demand-response service provides higher service levels during busy times Departures – morning and afternoon Arrivals - midday Key Takeaways Departures and arrivals via rail, bus, and plane occur throughout the day from the San Luis Obispo Train Station and San Luis Obispo County Airport. Air and train travel is frequent early in the morning and late evening when SLO Transit operates limited service or no service at all. Relevant Study Findings San Luis Obispo Coalition of Governments (SLOCOG) 2024/2025 Unmet Transit Needs Study Each year, SLOCOG performs an Unmet Transit Needs study. The purpose of the study is to ensure that any unmet transit needs which are found reasonable to meet are met before Transportation Development Act (TDA) funds expended for non-transit uses. The three requests listed below were determined to be an unmet need by SLOCOG’s criteria (criteria listed beneath each item). The items are deemed relevant to the implementation of a Microtransit pilot program due to meeting SLOCOG’s criteria and multiple community member requests. 1. Unmet Need: Better transit services to the San Luis Obispo Airport and more frequent express bus services from the airport to San Luis Obispo and back. Number of Requests: 5 Criteria Met: Fills gap in service, current need, and service expansion Relevancy to Microtransit: Describes need for increased service to a specific point of interest. 2. Unmet Need: Increase the frequency of SLO Transit busses Number of Requests: 3 Criteria Met: Fills gap in service, current need, and service expansion Page 28 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 11 Relevancy to Microtransit: Describes a need for increased service across all operational hours. 3. Unmet Need: Run the B-Routes on weekends Number of Requests: 6 Criteria Met: Fills gap in service, current need, and service expansion Relevancy to Microtransit: Describes a need during a particular time (weekends). 4. Unmet Need: Senior Go/Senior Shutte on Sundays Number of Requests: 7 Criteria Met: Fills gap in service, current need, and service expansion Relevancy to Microtransit: Describes a need during a particular time (weekends). Though the Senior Go service is not operated by SLO Transit, it is a service provided within the boundaries of the City. Key Takeaways A high number of respondents requested express or shuttle service, including specifically to the SLO Airport. Additionally, increased service on the weekends was requested by multiple residents. Short Range Transit Plan The 2025 Short Range Transit Plan (SRTP) provided detailed assessments and recommendations for improvement of SLO Transit’s service. The relevant demographic takeaways from the plan are highlighted below. Key Takeaways: There are multiple findings in the SRTP relevant to the development of a Microtransit pilot. Demographic analysis found that from 2020-2030, the number of ‘mature retirees’ (75-84 years old) is predicted to grow 61%. As seniors are known to use transit at a higher rate than the overall population, this will mean an increased demand for transit options in the City into the next decade. It is noted that Cal Poly is planning to grow enrollment an additional 5,000 students by 2035, with an increase in on -campus residents from 8,000-15,000. This increase in on-campus residents may mean an increase in demand for transportation options from Cal Poly Students. A Transit Needs Index shows that the highest need areas of the City are downtown and the southern-central area. Below, Figure 5 shows a map from the SRTP of the Transit Needs Index. Page 29 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 12 Figure 4: SLO Transit Needs Index Map. Source: 2025 Short Range Transit Plan Page 30 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 13 Microtransit Overview The Federal Transit Administration (FTA) defines Microtransit as a technology-enabled service that uses multi-passenger vehicles to provide on-demand services with dynamically generated routing within a designated service area. For the purpose of this study, a simplified definition will be used: Microtransit is an on-demand transportation service that uses multi-passenger vehicles within a designated service area. Riders can request a trip through a mobile app or by calling a dispatcher, and routes are created in real time based on rider requests. It could be thought of as a ‘community shuttle’ public service. Public transit agencies choose to implement Microtransit for a variety of reasons. Use cases fall into three general categories: providing first-mile / last-mile connections to fixed route-services, expansion of service coverage/hours, or replacing underperforming fixed routes. This chapter details specific service delivery types, how Microtransit can complement other transit options, and a selection of case studies of peer cities. Operations Overview Microtransit is an on-demand, flexible, and shared form of public transportation. Vehicles used as part of a Microtransit program can range anywhere from Americans with Disabilities Act (ADA)-accessible minivans, passenger vehicles, to small busses – with the number of riders accommodated ranging from 4 – 15. Often, these vehicles are electric to help advance the operating agency ’s greenhouse gas emission reduction goals. Riders request a ride in a Microtransit vehicle primarily through a smartphone application, though booking by phone call is also available. How long a rider waits for a ride is determined by demand throughout the system, but agencies can set a maximum allowable wait time as a success metric, which is often 30 minutes. Once a rider is picked up, onboard technology dynamically routes the vehicle. This dynamic routing allows for efficient trips between riders’ origin and destination, while picking up other riders along the way. Figure 5 illustrates the basics of requests a ride through a Microtransit service. Figure 5: Microtransit infographic, source: North Carolina Department of Transportation Page 31 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 14 Service Models Service Model Key Terms o Virtual Stop: pick-up/drop-off limited to specific stops, often designated along higher traffic through streets. Though these types of stops require riders to walk, agencies can determine a maximum walking distance to balance convenience for riders and operational efficiency. o Door-to-door: pick-up/drop-off occurs at the doorstep of the location requested. o Curb-to-curb: service where pick-up/drop-off occurs at the curb of the location requested. This can also occur at the nearest cross-street intersection. o Shared Ride / Pooled Trip: multiple passengers sharing the same vehicle as they are routed to their individual destinations. Service model refers to the design and approach of how Microtransit is provided within a given community. Assuming Microtransit service meets the elements defined above (on-demand, flexibly routed, and shared), the differentiating element is the travel pattern and stop type. Due to the flexibility of the technology-enabled routing of Microtransit, many variations of service models can be created to fit the community’s transportation needs. The three models relevant to the City of San Luis Obispo are: Zone-Based, Point-to-Point, Zone-Based with External Nodes, and Point Deviation. o Zone-Based with Point-Point (Anywhere-to-Anywhere Service - Within a Zone): Riders can request a trip between almost any two places within a defined service area. Pickups and drop-offs may happen at nearby corners, the curb, or right at your door, depending on the location. o Zone-Based with External Nodes (Anywhere-to-Anywhere with Key Destinations Outside the Area): This works like the anywhere-to-anywhere service within the main service area, but also includes select destinations outside the area, such as an airport or major hub, where riders can be picked up or dropped off. o Point Deviation (Key Destinations Service): Trips connect a set of popular community destinations, like transit centers, shopping areas, medical offices, community centers, or downtown, rather than any address. Riders travel between these common stops using on-demand vehicles. Operational Models Operational model refers to the logistics, mechanisms, and technology used to deliver Microtransit. The two common operational models can be described as Software as a Service (SaaS) and Turnkey. Page 32 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 15 o Software as a Service is a model where Microtransit operations are publicly regulated and operated. A transit agency partners with a vendor to provide on-board routing and customer-facing smartphone application technology. Vehicles are owned by the transit agency, and drivers and dispatchers are employees of the transit agency. o Turnkey is a model which is publicly regulated but privately operated. A transit agency enters an agreement with a private company that provides not only technology, but vehicles, drivers, and dispatchers as well. In some cases, agencies will opt for two different providers: one for technology and one for operations (vehicles and drivers). o This is the model recommended in SRTP for the City’s pilot program, as it limits investment in capital and operational resources and can be deployed quickly Interaction with Preexisting Transit Services Fixed Route While fixed route services operate on a set schedule and specified route, Microtransit is flexible and dynamically routed to riders’ needs. Microtransit can serve as a first-mile / last-mile solution for residents by providing rides to and from fixed-route bus stops. Additionally, Microtransit can provide a transit option during times when fixed route services are not operating, like early morning and late evening. When designing Microtransit service zones, it is important that it provides a complement to fixed-route services. To prevent drawing riders from fixed route, some agencies implement the following operational/service elements: o Design Microtransit service zones so they do not duplicate the service corridors of fixed-route services. o Use technology-based tools which can prohibit riders from booking a ride that cou ld be taken by fixed route. Such tools can instead prompt riders to use the fixed -route service. o Limit the overlap between fixed-route service hours and Microtransit service hours Paratransit Paratransit is a service that provides individual, demand-response transit services to people with disabilities. This service is offered as a comparable service to fixed routes in accordance with the American with Disabilities Act, for those unable to use fixed route services. Most paratransit services require booking at least 24 hours in advance by phone call. Unlike Page 33 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 16 paratransit, which requires pre-booking, Microtransit service can provide an immediate on- demand transit option for people with disabilities. Comingling: This is when a fixed-route provider integrates their preexisting paratransit service with Microtransit. Transit agencies can contract with a single on-demand operator or operate in- house. Comingled services provide paratransit as a comparable service during all fixed -route operational hours and additionally provide Microtransit during designated times and in designated zones. For some agencies, this shared service can be more cost effective than providing or contracting separate paratransit and Microtransit services. Cost and Fares Operational Costs Public transit is usually funded through a combination of federal, state and local funding, combined with fare revenues. In general, on-demand transit provides a significantly lower farebox recovery (the percent of the operation cost covered by fares), due to the lower average passenger trips per hour. An industry-standard metric used to assess the cost of providing transit service is cost per vehicle per revenue hour. Based on a review of multiple agencies operating turn-key Microtransit, the average cost of $108 per vehicle per revenue hour. Agency / Service Location Cost per Vehicle Revenue Hour Type of Source L.A. Metro Los Angeles County, CA $102 Performance Report Lextran Lexington, Kentucky $95 Feasibility Study SacRT Sacramento, CA $138 Performance Report BRITE Central Shenandoah Valley, VA $80 Feasibility Study Breeze OnDemand Sarasota County, FL $132 Regional Transit System NTD Analysis Average Cost $108 Fares Fares for Microtransit can be established based on agency goals. To align with the goal to increase transit ridership in the City, fares should be an accessible price. Additional considerations are fiscal responsibility and comparison to private and subsidized demand- response options in the area. Most agencies choose to offer discounts on Microtransit fares to those riders who qualify for fixed-route discount passes like seniors and persons with disabilities. Fares for Microtransit service provided by agencies in California range from free, to $2-$6 per ride. Fare collection most often occurs through the mobile application, though Page 34 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 17 Microtransit vehicles are often equipped with fareboxes to allow for cash payment upon boarding. Agency Location Fare Santa Barbara Municipal Transit District Santa Barbara, CA $3 North County Transit District San Diego, CA $2.50 L.A. Metro Los Angeles, CA $2.50 Sacramento Regional Transit Sacramento, CA $2.50 Redding Area Bus Authority Redding, CA $2 Santa Maria Regional Transit SMRT Micro Currently free, $6 planned fare City of Whittier Whittier Cruiser Free Sacramento Regional Transit SacRT Flex $2.50 Equity and Access Microtransit can provide a more accessible transit network in a variety of ways. It can function as a supplement to existing paratransit, by providing a more flexible and immediately on- demand form of transportation for riders with disabilities. Additionally, it can p rovide another option to those with limited mobility and/or access to vehicles, like seniors, youth, or those who don’t own a car. When designed to fill service gaps during the times of day fixed -route does not operate, Microtransit can provide a transit option to those who work early-morning or late- night shifts. By providing a publicly subsidized on-demand transit option, Microtransit can remove the financial barrier to transpiration Case Studies Santa Barbara Municipal Transit District – The Wave Microtransit Santa Barbara Metropolitan Transit District (SBMTD) launched ‘The Wave,’ a Microtransit program serving the Goleta and University of California, Santa Barbara (UCSB) area in May of 2025. The Wave was launched as a one-year pilot program, and serves a Microtransit zone, with additional drop-off locations including the Santa Barbara Airport and UCSB. Similar to the relationship between SLO Transit and Cal Poly, SBMTD and UCSB have an agreement which allows students to ride the fixed-route buses for free. In the case of SBMTD’s agreement with Page 35 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 18 the university, the agreement does not include Microtransit services, so students are required to pay the standard fare of $3. Santa Barbara Municipal Transit District – The Wave Hours of Operation 10 am – 6 pm Tuesday through Sunday Fare Regular Fare: $3. Discount pass holders: $1.50 Booking Method Mobile App or Phone Call Service Delivery Model Zone-Based with external Nodes Operational Model Turnkey Key Takeaways Relevancy to San Luis Obispo: The Wave demonstrates how an agency can use Microtransit to serve the area surrounding a university in addition to an airport on the edge of town. o Zone-Based with External Nodes: Combines two Microtransit zones with additional drop- off / pick-up locations including UCSB and Santa Barbara Airport o Service agreement with UCSB does not include rides on the Wave – students must pay full price. Santa Maria Regional Transit– SMRT Micro Santa Maria Regional Transit launched the SMRT Metro service in September 2024. The service is designed to provide a transit option to residents in the evening when fixed route does not operate. Initially, the service was offered on the weekdays, and a year later weekend service was added. In conversation with SMRT staff, it was noted that an important feature of the service is that it is door-to-door, which provides convenience and safety to riders using the service in the evening. Santa Maria Regional Transit – SMRT Micro Hours of Operation 8:30 pm – 10:30 pm Monday through Sunday Fare Currently: Free Planned fare: $6 / ride. Discount pass holders: $3 / ride. Booking Method Mobile App or Phone Call Service Delivery Model 24 square-mile operation zone Operational Model In-house operations Key Takeaways Relevancy to San Luis Obispo: SMRT Micro is an example of how a transit agency can use Microtransit to fill a service gap in the evenings. o The service was launched during the weekdays but now includes weekends. The highest demand is still on weekdays. Page 36 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 19 o Fare structure provides half-off discount to all discount pass holders (i.e. seniors, riders with disabilities). SMRT compared fixed route fares with private on-demand ride costs (Uber, Lyft) to find a fare that was reasonable for riders. Sacramento Regional Transit – SacRT Flex Sacramento Regional Transit launched SacRT Flex in January 2025. This service replaced a previous pilot that was deemed not fiscally feasible by SacRT due to grant funding ending. This new service – SacRT Flex – is a Microtransit service that is limited in availability to eligible riders. Eligibility is open to low-income individuals, seniors, and those with disabilities. Minors age 13 - 17 with low-income parents can register as well. Sacramento Regional Transit – SacRT Felx Hours of Operation 7 am – 7 pm Monday through Friday Fare Regular fare: $2.50 Booking Method Mobile App or Phone Call Service Delivery Model Zone-Based Operational Model Turnkey Key Takeaways Relevancy to San Luis Obispo: This case study serves as an example of how an agency may continue to offer a Microtransit service on a more limited basis when pilot funding expires. o An initial proposal to provide vouchers to ride-hailing companies like Uber and Lyft to eligible customers was cancelled. Community feedback emphasized that such a model would limit accessibility to those with disabilities or service animals. City of Whittier - Whittier Cruiser The Whittier Cruiser is a pilot program in the City of Whittier. The service utilizes small electric passenger vehicles and provides rides within a single designated zone within the city. City of Whittier – Whittier Cruiser Hours of Operation 10 am – 10 pm Wednesday through Sunday Fare Free Booking Method Mobile App Service Delivery Model Zone-Based Operational Model Turnkey Key Takeaways Relevancy to San Luis Obispo: The Whittier Cruiser is an example of a pilot service in a city which covers a limited geographic area and has potential to expand. Page 37 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 20 o All-electric vehicles provide a zero-emissions Microtransit service, but current do not have wheelchair accessibility. o The feasibility study was funded by the developer of a new neighborhood, and the Cruiser provides service to this neighborhood and the surrounding area. Community Engagement Outreach for the Microtransit project has consisted of three elements at this stage in the project. Based on the City’s Public Engagement and Noticing manual, the communication objective for this study is collaboration with the public. This is reflected in survey materials and pop-up events which asked community members to describe where and how a Microtransit pilot program should be implemented in the City. The three engagement opportunities that have been conducted so far are pop-up events, a Microtransit survey, and stakeholder interviews. The goal of the outreach effort is to better understand what service delivery model and operational parameters will best serve the community’s needs. Outreach Events Pop-Up Events Pop-up style outreach events were held to promote a Microtransit survey and answer questions about Microtransit. Seventy-three total survey responses were received as a product of these pop-ups. Beyond survey responses, numerous community members participated at the pop-up by having discussions about Microtransit and interacting the with mapping activity. It is estimated that 100 total engagements were made across these events. The pop-ups were held at the following locations:  Downtown San Luis Obispo Transit Center -October 10, 2025  San Luis Obispo Senior Center October 21 & 22, 2025  Cal Poly Campus October 22, 2025 Page 38 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 21 Map Activity A mapping activity collected information from participants about points of interest throughout SLO Transit’s service area. Fourty-eight individuals took part in the activity. Participants were asked to place a green pin where they would start a Microtransit trip and a red pin where they would be dropped off. Figure 6 shows participants taking part in the mapping activity. Figure 7 is a heat map of points of interest collected at all the pop-ups combined. This heat map illustrates patterns of where partricipants were interested in travelling to with Microtransit. It can be seen on the heat map that downtown, Cal Poly campus, and the Madonna shopping area are all popular points of interest Figure 6: Mapping activity at Cal Poly pop-up event Page 39 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 22 Survey These survey results are current as of November 24, 2025. Figure 7: Heat map from pop-up mapping activity Page 40 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 23 An eight-question survey was created to gauge interest in Microtransit The survey provided an overview of Microtransit and asked questions about how residents would use the service if it was available. A total of 73 survey responses were received. Four pop-up events, listed above, were held to promote the survey and encourage participation. Additionally, the survey was promoted via fliers posted on board City busses. It is important to note the results of this survey reflect the needs of residents who are likely more transit-dependent than the overall population of the city. This is due to the survey being promoted at pop-ups meant to reach people more likely to be transit dependent: seniors at the San Luis Obispo Senior Citizens Center, college students and Cal Poly, and transit riders and the Downtown Transit Center. Survey Results Question: Do you have reliable access to a personal vehicle? Of respondents surveyed, 51% of respondents did not have access to a reliable personal vehicle. The 2023 Census American Communities Survey indicates that only 7% of households in the City of San Luis Obispo do not have a vehicle available. This result from the Microtransit survey indicates the respondents are more likely to rely on public transit and other forms of transportation to move around the city. This is likely due to the survey being promoted at pop-ups where populations of high transit ridership can be found: the downtown transit center, the San Luis Obispo Senior Citizen’s Center, and Cal Poly San Luis Obispo. Question: What forms of transportation do you currently use to travel around the City? (Check all that apply) Yes 49% No 51% Yes No Page 41 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 24 The mode of transportation selected by most respondents was bus, followed by walking, personal vehicle, ride-hailing, and finally biking. As indicated in the response above, many respondents Question: If Microtransit was an option, would you utilize this service? All respondents expressed interest in using Microtransit if it was available as an option. Question: Which types of trips would you utilize Microtransit for? (Check all that apply) 24 31 30 5 14 0 5 10 15 20 25 30 35 Personal Vehicle Bus Walking Biking Ride Hailing Services (Taxi, Uber, Lyft, ect.)Nu m b e r o f R e s p o n s e s Yes 71%No Maybe 29% Yes No Maybe Page 42 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 25 Respondents were prompted to select all that apply. Responses to this question indicate that a majority of respondents would use Microtransit to access essential services as well as recreation and leisure activities. Though a number of respondents indicated they would utilize Microtransit for commuting, this was the less common response. Question: Would you use Microtransit to connect to bus routes in the City of San Luis Obispo (SLO Transit) or Regional Transit (RTA)? More than half of respondents indicated they would use Microtransit to connect to other existing transit services. Additionally, 25 percent said they would be consider (“maybe”) using Microtransit for such connections. This results indicates a high interest in using Microtransit as a first-mile / last-mile connection for transit within the City. 14 18 40 37 0 5 10 15 20 25 30 35 40 45 Nu m b e r o f R e s p o n s e s Commuting to work Commuting to school Accessing essential services (groveries, medical appointments, ect.) Yes, 60%No, 14% Maybe , 25% Yes No Maybe Page 43 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 26 Question: When during the week would you most likely use Microtransit? When asked when during the week they would most likely use Microtransit, a majority of respondents indicated they would use the service throughout the meek. Those indicating either weekends or weekdays were split nearly evenly, representing 20 percent and 18 percent, respectively. These results indicate no clear preference between weekend and weekday service. Question: What time of day would you most likely use Microtransit? Weekdays 18% Weekends 20%Both Weekdays and Weekends 62% Weekdays Weekends Both Weekdays and Weekends Page 44 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 27 Respondents were allowed to pick all that apply when responding to this question. Many people selected all time windows, but the chart indicates that mid-day service (between 12:00pm and 6:00pm) had the highest number of responses with a slight preference for late evening service compared to early morning service. Stakeholder Meetings Meetings were held with key stakeholders during August and September 2025. At these meetings, important information was collected about how Microtransit can be designed to complement existing transit services. Takeaways from meetings with stakeholders: o San Luis Obispo Regional Transit Authority (RTA) o The City of Morro Bay considered implementing Microtransit, and it was too costly for their situation. o It was recommended that a turn-key operation would be the most effective way to pilot Microtransit in the City. o SLOCOG o It was discussed that transit-dependent populations should be considered when developing a pilot program. Early Morning - Before 8:00 am Morning - 8:00am - 12:00 pm Afternoon -12:00 pm -…Evening - 6:00 pm - 9:00 pm Late Evening -After 9:00pm 0 5 10 15 20 25 30 35 40 Nu m b e r o f R e s p o n s e s Page 45 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 28 o Noted that often Microtransit programs are funded through consolidating low- performing fixed-routes. o City’s Office of Sustainability o It was recommended the pilot program is designed to be iterative so it can evolve based on demand throughout the course of the pilot. o San Luis Obispo County Airport Office of Sustainability o There is high demand for transit options to and from the airport, especially during the early morning hours when fixed route does not operate. Community Partner Outreach Community partner organizations help City staff connect with specific stakeholders and groups in the City. Community partner outreach will be conducted in the second phase of this study during February 2026. Outreach will include but is not limited to the following community partner organizations: Lumina Alliance, Race Matters, SLO GALA, Transitions Mental Health Association, SLO Disabled Veterans, SLO County UndoccuSupport, San Luis Coastal Unified School District, Latino Outreach Council, SLO People’s Kitchen. Continuing Outreach Outreach is a continuing element of this project. The Microtransit survey will continue to be promoted to encourage responses – specifically with on-board promotional material on SLO Transit buses. Community Partner outreach and more stakeholder meeting(s) will be held during the phase two of this project. Page 46 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 29 Initial Alternatives Analysis This section outlines Operational Elements and Initial Alternatives for review by the City’s Mass Transportation Committee. Operational Elements Below are the assumptions made when developing the following alternatives. These are elements were determined based on recommendations in the SRTP, established industry trends, and relevancy to San Luis Obispo. o Operational Model: Turnkey model, as recommended in the SRTP. A turnkey model will allow the City to easily implement a pilot. Contract should include performance metrics and access to data to allow for service modifications during the pilot window. o Pilot Length: Two-year pilot, as recommended in the SRTP o Service Model: Zone-based with either Point-to-Point or External Nodes service. A Zone-based model asks very little of users, is coinvent, accessible, and provides a service unique from and complementary to fixed route. o Fares: $3 to $5 per trip, depending on selected alternative. Accessibly priced fares allow for all residents to utilize Microtransit as a service. Pass-holders (Seniors, riders with disabilities, and K-12 Students) will receive a discount on the established fare. Cal Poly students will pay full fare. o Vehicles: Electric vehicles will be used, and they will be ADA accessible. o Coverage: Coverage should be targeted to fill service gaps either by days of week, hours of service, or geographic coverage. Initial Alternatives The following three alternatives are provided as initial service options for a Microtransit pilot program. The alternatives are based on a synthesis of service gaps and needs found in: SLOCOG Unmet Transit Needs Survey, SLO Transit’s 2025 SRTP, and results from the community outreach efforts. The service needs are: o Additional evening and weekend service when fixed route is limited o Additional service to the Airport and Train Station, particularly in the early mornings o More service mid-day to supplement existing door-to-door service for seniors and others without vehicle access Page 47 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 30 Alternative 1: Evening Service (10:00 p.m. to 12:00 a.m.), City-wide and Airport, 7 days/week This is the recommended alternative in the SRTP. It has been modified to be year-round service, as SLO Transit will be operating on a year-round schedule by 2028. Service gap addressed: Late night service Key Benefits: Fills an existing service gap, when fixed route service is limited. The coverage area is all SLO, so it will be equally accessible. Lowering annual operating cost compared to other alternatives based on the number of annual service hours needed to operate this alternative. Considerations: Staffing late shifts may be challenging. Potential for high demand as an alternative to other TNC (Uber, Lyft) options for evening travel to downtown may cause increased wait times. Alternative 2: Early Morning Service (4:00 a.m. to 8:00 a.m.), Targeted Coverage, 7 days/week This alternative is presented as an option with a target coverage area. Less geographic coverage decreases the number of vehicles which lowers costs. Potential targeted area could be the east side of SLO including Cal Poly, the SLO Train Station, and the SLO Airport. Service gap addressed: Early morning service, service to San Luis Obispo Train Station and San Luis Obispo County Airport Key Benefits: Targeted geographic area allows for lower costs and fewer vehicles needed. Provides service to regional/national transportation – SLO Airport and SLO Train Station. Considerations: Does not provide service to all residents in the City. Staffing early shifts may be challenging Alternative 3: All Day Service (8:00 a.m. to 8:00 p.m.), City-wide, Weekends This alternative provides service throughout the City on the weekends, when the Counterclockwise “B” routes do not operate. The service window covers the same time fixed route operates on weekends. Service gap addressed: Weekend service Key Benefits: Provides increased weekend service. Equal coverage across the City. Considerations: Has potential to pull ridership from fixed route as service window is the same as fixed route. Does not provide early or late service. Page 48 of 49 Draft Microtransit Pilot Program Feasibility Study Emily McBride | City of San Luis Obispo 31 Initial Alternatives Comparison Table Alternative 1: City-Wide Evening Service Alternative 2: Targeted Morning Service Alternative 3: City-Wide Weekend Service Geographic Coverage City-wide Targeted City-wide Service Window Late Night (10pm-12am) Early Morning (4am-8am) All Day (8am-8pm) Days of Week Mon - Sun Mon-Sun Weekends Service Deliver Model Zone-based Point-to-point Zone-based with external nodes Zone-based Point-to-point Est. Trips / Year 7,200 9,600 12,200 Cost Low Low Medium Conclusion These three initial alternatives showcase different approaches to designing a pilot program that is reasonable in cost and size, while also addressing existing service gaps. Based on feedback from the Mass Transportation Committee and continuing public outreach efforts, these alternatives will be modified and presented to City Council on May 5, 2026, for their consideration. If a piloted Microtransit program proves to be a successful form of public transit in San Luis Obispo, the City could consider expanding service to an all-day, city-wide Microtransit service. Page 49 of 49