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HomeMy WebLinkAboutItem 6j. Approve a Memorandum of Understanding with SLOCOG and with the City of Santa Maria for Pilot Express Transit Services Item 6j Department: Public Works Cost Center: 5201 For Agenda of: 1/13/2026 Placement: Consent Estimated Time: N/A FROM: Aaron Floyd, Public Works & Utilities Director Prepared By: Alex Fuchs, Mobility Services Business Manager SUBJECT: APPROVE A MEMORANDUM OF UNDERSTANDING WITH SLOCOG AND WITH THE CITY OF SANTA MARIA FOR PILOT EXPRESS TRANSIT SERVICES RECOMMENDATION Authorize the Mayor to execute a Memorandum of Understanding (Attachment A) with the San Luis Obispo Council of Governm ents and with the City of Santa Maria for Pilot Express Transit Services. REPORT-IN-BRIEF In April 2024, the Santa Maria City Council approved elimination of funding to San Luis Obispo Regional Transit Authority (RTA) for their Route 10 service and approved Santa Maria Regional Transit (SMRT) to operate its own inter-regional commuter service, referred to in this report as ‘pilot express transit service’. In June 2025, the San Luis Obispo Council of Governments (SLOCOG) resumed discussions for the development and execution of a Memorandum of Understanding (MOU) between SLOCOG, the City, and Santa Maria for SMRT’s two-year pilot express transit service. The MOU establishes terms for service coordination, data and fare sharing, and use of facilities needed to operate the pilot express transit service. SMRT began operating the pilot express service on September 15, 2025, with close coordination and monitoring by the City. After conversations regarding logistical questions and a review by each agency’s legal counsel, a final draft MOU (Attachment A) with mutually agreed upon terms is ready for Council’s consideration. POLICY CONTEXT Task 5 of the Infrastructure and Sustainable Transportation Major City Goal of the 2025- 27 Financial Plan states that the City is to, “Support policies and programs aimed at expanding mass transportation and public transit.” (page 46). Policy 3.1.1 – Transit Development – of the Circulation Element of the City’s General Plan, and incorporated by reference in the 2025 Short-Range Transit Plan, states that, “The City shall encourage transit accessibility, development, expansion, coordination, Page 151 of 525 Item 6j and marketing throughout San Luis Obispo County to serve a broad range of local and regional transportation needs.” (page 14). Goal 2 of the San Luis Obispo Council of Government’s (SLOCOG) 2023 Regional Transportation Plan is to improve intermodal mobility and accessibility for all people. Specifically, Policy Objective 2.5 which states, “Support cooperative planning activities leading to an integrated intermodal transportation system” (page 57). The 2023 Regional Transportation Plan also includes Strategy 8.2, which states, “Actively encourage modal shifts to reduce single occupant vehicles (SOVs) by expanding transportation options, including but not limited to, improvements for intercity rail, public transit, bicycling, P ark & Ride lots, carpools, and vanpools.” (page 62). DISCUSSION Background The City of Santa Maria (Santa Maria) has historically contributed funding from their Urbanized Area federal formula funds to support San Luis Obispo Regional Transit Authority’s (RTA) Route 10 service. RTA’s Route 10 provides service from San Luis Obispo to Santa Maria with stops in Pismo Beach, Arroyo Grande, and Nipomo. In 2021, Santa Maria and RTA’s respective boards agreed that an independent study was needed to guide future funding decisions following a one-time Coronavirus Aid, Relief, and Economic Security Act (CARES) contribution and a negotiated Fiscal Year (FY) 2023-24 allocation of approximately $255,100. A third-party consultant study found that Santa Maria could provide comparable service at a lower cost, prompting Santa Maria to propose a more cost -effective model where it would expand its own service into San Luis Obispo County instead of subsidizing RTA ’s service. On April 16, 2024, the Santa Maria City Council approved elimination of RTA’s Route 10 funding and approved Santa Maria Regional Transit (SMRT) to operate its own pilot express transit service. The intent of the pilot express transit service is to determine if there is a sustained need for direct service for daily commuters between Santa Maria and downtown San Luis Obispo beyond what is currently provided by RTA’s Route 10 service. Attachment B is the related Santa Maria staff report which includes a copy of the third-party consultant study. Around the same time as the Santa Maria City Council decision, representatives from RTA, Santa Maria, SLOCOG, and the City of San Luis Obispo (City) met to discuss the need to create a Memorandum of Understanding (MOU). The purpose of the MOU is to coordinate services, data sharing, fare sharing, and use of facilities for SMRT to operate a pilot express transit service. Since Santa Maria does not own or have access to any bus stops or transit facilities in San Luis Obispo, they requested that the City allow SMRT to use the Downtown Transit Center, located on the 800 block of Osos Street, for passenger boarding and de-boarding. In July 2024, discussions were put on hold as SMRT focused on its upcoming FTA triennial review as well as consolidation of services with the City of Guadalupe. Page 152 of 525 Item 6j Memorandum of Understanding In June 2025, SLOCOG reached out to City staff about resuming discussions of an MOU between SLOCOG, the City, and Santa Maria for SMRT’s two-year pilot express transit service. SLOCOG provided a draft MOU for the City and Santa Maria staff to review and provide comment. On August 6, 2025, SLOCOG’s board approved execution of the MOU once terms are finalized and accepted by all parties (Attachment C). SMRT began operating the pilot express service, designated as Route SLO 210, on September 15, 2025. The City approved initiation of the service with close coordination and monitoring to address any potential disruptions. Since service began, the only issue observed has been brief morning periods when all five bus bays are occupied. During these times, the SMRT bus either circulates the block or waits on Palm Street east of Osos Street until a bay becomes available. To date, this has not affected service delivery for either system. On September 16, 2025, Santa Maria City Council approved execution of the MOU before it was approved as to legal form or presented for consideration by the San Luis Obispo City Council. After conversations regarding remaining logistical questions that are now addressed in the agreement and a review by each agency’s legal counsel, a final draft MOU with mutually agreed upon terms is now ready for Council’s consideration. Santa Maria staff is returning to their City Council on January 20, 2026, with a recommendation to approve execution of the revised MOU. Table 1 is a summary of the key MOU terms. The pilot service provides direct express trips that are not currently available on RTA’s Route 10. Although Route 10 operates in the sam e regional corridor, with multiple stops in Santa Maria, Nipomo, Arroyo Grande, Pismo Beach, and San Luis Obispo. As a result, the pilot service is expected to attract a different group of riders. Route 10 offers only one northbound express trip in the morning and one southbound express trip in the evening, with departure times that differ from SMRT’s pilot express trips. In addition, the two services are operated and branded separately. Table 1 - Key MOU Terms for the Pilot Express Transit Service Service Start Date September 15, 2025 Route Designation SLO 210 (identified in the Recital section) Service Period Two years, beginning on the service start date, unless terminated by either party or extended by mutual agreement Changes to Service Levels Proposed changes to the pilot express service require ninety (90) days’ written notice from either party and are subject to the approval of all parties Regional Pass Fare Sharing Santa Maria agrees to participate in the San Luis Obispo County Regional Pass Program, which means the Regional Day or Month Pass will be an accepted form of payment on the route Page 153 of 525 Item 6j Joint Use of Facilities The City allows Santa Maria use of the Downtown Transit Center based on the service schedule included in the MOU for passenger boarding and de-boarding. SLO Transit vehicles have priority over Santa Maria’s use of the facility. RTA’s participation in the MOU is not required as Santa Maria’s pilot express service will not use any RTA owned bus facilities. The MOU does require Santa Maria’s participation in SLOCOG’s Regional Pass Program, which covers fare sharing between all agencies in the region for passengers using either the Regional 1 -Day or Regional Monthly Pass on the pilot express service. SLOCOG is a participating agency in this MOU because SLOCOG is the regional transportation planning agency (RTPA) and the federally designated metropolitan planning organization (MPO). In that role, SLOCOG coordinates public transit services across the region including planning and policy setting, regional coordination, and performance monitoring. SLOCOG plays the oversight and evaluation role, making sure pilots align with regional transportation goals. The MOU includes a data-sharing provision, including boardings and de-boardings by stop and passenger load information, for the purpose of helping to assess the demand for the pilot express service and its impacts on SLO Transit’s facilities and services. At this time, staff does not have an expectation that the new service will significantly increase ridership on SLO Transit’s routes. Santa Maria staff indicate that the pilot service primarily targets downtown employees and secondarily Cal Poly staff, faculty, and students. Cal Poly-affiliated riders would have to transfer to either SLO Transit’s Route 3 or 4 to complete their trips. Preliminary data from SMRT show 57 passenger trips in September 2025 and 177 in October 2025. SMRT continues to market the service to downtown employees and anticipate that ridership will grow over the coming months. To date, the express service has not been associated with an increase ridership on SLO Tranist routes, suggesting that few, if any, riders are transferring to local services during these initial months of operation. Previous Council or Advisory Body Action 1. September 10, 2025 – The Mass Transportation Committee, at a regularly schedule meeting, voted in-favor of recommending that the City Council authorize the Mayor to execute the MOU. 2. June 17, 2025 – Council adopted the 2025-27 Financial Plan including the Infrastructure and Sustainable Transportation Major City Goal. Public Engagement At the public meeting in December 2024, City of Santa Maria staff held an Unmet Transit Needs meeting to present potential route modification options to public, including a SMRT service from Santa Maria/Orcutt to SLO/Cal Poly. Public comment on this item can be provided to the City Council meeting through written correspondence prior to the meeting Page 154 of 525 Item 6j and through public testimony at the meeting. CONCURRENCE On August 6, 2025, SLOCOG’s Board approved execution of an MOU with the City of San Luis Obispo and with the City of Santa Maria for a new express fixed -route pilot service from Santa Maria to downtown San Luis Obispo. City of Santa Maria legal counsel reviewed the draft MOU and approved the form of the agreement. The City Attorney’s Office has reviewed and revised the draft MOU and approves the form of the agreement. On September 10, 2025, the Mass Transportation Committee (MTC) considered a recommendation by staff to support the execution of the MOU. The MTC voted 5 to 0 in- favor of recommending that the City Council authorize the Mayor to execute the MOU. On September 16, 2025, Santa Maria City Council approved execution of the MOU; however, several revisions have been made to the MOU since then, so Santa Maria staff is returning to their City Council on January 20, 2026, with a recommendation to approve execution of the revised MOU (Attachment A). The City’s transit operation and maintenance contractor, Transdev, reviewed the proposed route and schedule, including use of the Downtown Transit Center. Since the pilot express service began, Transdev has coordinated daily use of the Downtown Transit Center and monitors and reports any issues to staff. Additionally, the City’s agreement with Transdev does not change and does not need to be amended based on the pilot express service. Prospective bidders for the transit operation and maintenance services Request for Proposals can identify any concerns and/or service implications in their respective proposals. ENVIRONMENTAL REVIEW Operation of the new pilot express service is statutorily exempt under California Public Resources Code Section 21080.25(b)(5), which exempts public projects for the institution or increase of bus service which will be exclusively provided by zero-emission vehicles on existing public right-of-way. Santa Maria has confirmed that the pilot express service will use zero-emission electric buses and, therefore, meets the requirements of the above statutory exemption section. FISCAL IMPACT Budgeted: N/A Budget Year: 2025-26 Funding Identified: N/A Fiscal Analysis: Page 155 of 525 Item 6j Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $ 0 $ 0 $ 0 $ 0 Transit Fund $ 0 $ 0 $ 0 $ 0 State Federal Total $ 0 $ 0 $ 0 $ 0 There will be no fiscal impact to the City’s Transit Fund or the General Fund resulting from the recommended action in this report. Under the proposed MOU language, Santa Maria will retain all fares and other revenues collected for operation of the pilot express service. Additionally, the MOU states that any additional maintenance required to the City of San Luis Obispo stops by increased traffic from this pilot program will be Santa Maria’s responsibility. If through the operation of the new pilot service, SLO Transit’s current or future planned service schedules are adversely impacted or an increase in maintenance needs is identified, then notice will be provided to the other parties that an amendment is required, per the agreement terms. If, during the operation of or at the end of the two -year pilot service, Santa Maria notifies the other parties of their intent to make the service permanent, then a new MOU will need to be drafted and approved by each agency’s respective governing board prior to the service being made permanent. ALTERNATIVES 1. Council could decide not to approve execution of the MOU with SLOCOG and the City of Santa Maria. Should Council pursue this option, inter-regional public transit will continue to rely on the San Luis Obispo Regional Transit Authority’s Route 10 service and limit opportunities to expand commuter-focused transportation options. 2. Council could decide to not approve the execution of the MOU and direct staff to negotiate terms of the agreement based on Council’s comments o n this item. Should Council pursue this option, execution of the MOU may need to return to each agency’s respective board for approval depending on the extent of the negotiated revisions. ATTACHMENTS A - Final Draft MOU for Pilot Express Transit Service B - April 16, 2024, City of Santa Maria Staff Report C - August 6, 2025, SLOCOG Staff Report Page 156 of 525 MEMORANDUM OF UNDERSTANDING (MOU) FOR PILOT SANTA MARIA TO SAN LUIS OBISPO EXPRESS TRANSIT SERVICES Between SAN LUIS OBISPO COUNCIL OF GOVERNMENTS 1114 MARSH STREET SAN LUIS OBISPO, CA 93401 And CITY OF SAN LUIS OBISPO 990 PALM STREET SAN LUIS OBISPO, CA 93401 And SANTA MARIA REGIONAL TRANSIT 1303 FAIRWAY DRIVE SANTA MARIA, CA 93455 THIS AGREEMENT is entered into this day of , by the San Luis Obispo Council of Governments, the Metropolitan Planning Organization (MPO) for the San Luis Obispo region pursuant to 23 USC M,L Section 134 of Title, (herein referred to as “SLOCOG”) and between the CITY OF SAN LUIS OBISPO, (herein referred to as “SAN LUIS OBISPO”) and the SANTA MARIA REGIONAL TRANSIT, (hereinafter referred to as “SANTA MARIA”), collectively referred to as “the parties”. THIS AGREEMENT is made between SLOCOG, SAN LUIS OBISPO and SANTA MARIA for the dissemination of information and the coordination of a pilot express service and service planning efforts, fare structures, use of bus stops, and facilitation of transfers. RECITALS: WHEREAS, SAN LUIS OBISPO and SANTA MARIA provide general public transit in the counties of San Luis Obispo and Santa Barbara; and, WHEREAS, Santa Maria will begin to operate a pilot express transit route (SLO 210) beginning September 15, 2025, that will utilize SAN LUIS OBISPO right-of-way at (the Downtown Transit Center located on the 800 block of Osos Street); and, Page 157 of 525 WHEREAS, to efficiently serve the travel demands of each county, each agency agrees to coordinate and cooperate in route planning, scheduling, and disseminating information; and WHEREAS, SAN LUIS OBISPO and SANTA MARIA desire to enter into this memorandum of understanding for the provision of the pilot express fixed route service between San Luis Obispo and Santa Maria; and WHEREAS, SLOCOG provides regional transportation planning and oversees Federal and State transportation funding within San Luis Obispo County and has agreed to facilitate communication and performance of this agreement between SAN LUIS OBISPO and SANTA MARIA. NOW THEREFORE, “the parties” mutually agree as follows: 1. TERM OF AGREEMENT. A. The term of this AGREEMENT shall be effective September 15, 2025, and will remain in effect for two (2) years or until terminated with or without cause or extended by either party by giving 90 days' written notice to the other party. Any party may terminate this AGREEMENT immediate “for cause” provided the terminating party notifies the other party of the basis for termination and provides the other party with ten (10) calendar days to cure. 2. HOLD HARMLESS AGREEMENTS. A. In the performance of this AGREEMENT, SAN LUIS OBISPO shall jointly and severally indemnify, defend, and hold harmless SANTA MARIA, its officers, agents and employees against any and all suits, claims, demands, liabilities, losses, and damages, including reasonable attorneys’ fees and costs, arising from or connected with injury to persons or property, or any alleged injury, occurring during the performance of this AGREEMENT and resulting from the negligent or intentional acts or omissions of SAN LUIS OBISPO or its officers, employees or agents (Collectively “Claims”). SAN LUIS OBISPO shall, at its own expense, pay all legal costs, attorneys’ fees, and expenses arising from or related to such Claims, and shall satisfy and discharge any judgment rendered against SANTA MARIA or any of its officers, agents or employees arising from or related to such Claims. B. In the performance of this AGREEMENT, SANTA MARIA shall jointly and severally indemnify, defend, and hold harmless SAN LUIS OBISPO, its officers, agents and employees against any and all suits, Page 158 of 525 claims, demands, liabilities, losses, and damages, including reasonable attorneys’ fees and costs, arising from or connected with injury to persons or property, or any alleged injury, occurring during the performance of this AGREEMENT and resulting from the negligent or intentional acts or omissions of SANTA MARIA or its officers, employees or agents (Collectively “Claims”). SANTA MARIA shall, at its own expense, pay all legal costs, attorneys’ fees, and expenses arising from or related to such Claims, and shall satisfy and discharge any judgment rendered against SAN LUIS OBISPO, or any of its officers, agents or employees arising from or related to such Claims. C. In performance of this Agreement, SANTA MARIA and SAN LUIS OBISPO shall jointly and severally indemnify, defend, and hold harmless SLOCOG, its officers, agents, and employees from and against any and all suits, claims, demands, liabilities, losses, and damages, including reasonable attorneys' fees and costs, arising from or connected with injury to persons or property, or any alleged injury, occurring during the performance of this AGREEMENT, and resulting from the negligent or intentional acts or omissions of SANTA MARIA, SAN LUIS OBISPO, or their respective officers, employees, or agents (Collectively “Claims”). Both SANTA MARIA and SAN LUIS OBISPO shall, at their own expense, pay all legal costs, attorneys' fees, and expenses arising from or related to such Claims, and shall satisfy and discharge any judgment rendered against SLOCOG or its officers, agents, or employees arising from or related to such Claims. 3. SEVERABILITY A. Should it be determined by a court of competent jurisdiction that any term, section, or provision of this agreement is void, invalid or unenforceable, the other provisions of this agreement shall remain in full force and effect. 4. GOVERNING LAW A. This agreement shall be governed by, construed, and enforced in accordance with the laws of the State of California. 5. SERVICE COORDINATION/DATA EXCHANGE A. Each party shall inform the other of future plans for pilot and/or permanent new routes, schedules, and fares, exclusive of emergencies, within San Luis Obispo County. Any plans by SANTA Page 159 of 525 MARIA for implementing new or pilot routes, not previously identified in Exhibit 1, must be pre-approved by SAN LUIS OBISPO and SLOCOG prior to implementation. SAN LUIS OBISPO and SLOCOG reserve the right to conduct an analysis of any proposed changes or addition of new routes, schedules and fares. If analysis determines that the contemplated change could adversely impact the SAN LUIS OBISPO’s or other transit services in San Luis Obispo County, SAN LUIS OBISPO and SLOCOG, individually, reserve the right to deny such change. B. SANTA MARIA shall provide, on request by SAN LUIS OBISPO or SLOCOG, data that is readily available including boardings and alightings by stop and passenger load information for all inter-county services operated in between SANTA MARIA AND SAN LUIS OBISPO during the term of this AGREEMENT. Should a data request require extensive efforts, SANTA MARIA shall advise the requesting party of the expected costs; and, if the requesting party still desires the data, it shall so advise Santa Maria which shall provide the data and which may charge a fee to recover its actual costs. 6. SERVICE TO BE OPERATED. A. SANTA MARIA’s proposed pilot service may not deviate from the agreed upon service route, fare levels, service times, service days, and designated bus stop(s) (as shown in EXHIBIT 1) without prior consent from SAN LUIS OBISPO and SLOCOG. Minor modifications to the service route, fare levels, service times, service days, and/or stop placement can be made without an amendment to this AGREEMENT if approved in writing by the authorized representatives of SAN LUIS OBISPO and SANTA MARIA. 7. CHANGES IN SERVICE LEVELS A. Proposed changes to services (as shown in Exhibit 1) require ninety (90) days’ written notice from SAN LUIS OBISPO or SANTA MARIA and are subject to the mutual written approval of all parties. B. Major Service Changes, such as, establishing a new or eliminating a fixed route, realignment of more than 25% of the length of the route, adding or eliminating more than one (1) bus stops, moving a stop more than one quarter of a mile, or changing service span (as shown in Exhibit 1) that impacts the agencies existing transit service shall require an amendment to this AGREEMENT. 8. PUBLIC INFORMATION A. Each party shall cooperate, to the extent feasible, in providing the general public with specific transit information and in advertising of operations of SAN LUIS OBISPO and SANTA MARIA’S services, in Page 160 of 525 promoting the general use of public transit, and in providing participation and support in required public hearings. 9. REGIONAL PASS/FARES A. SANTA MARIA agrees to participate in the San Luis Obispo County Regional Pass Program, which means that on the pilot express route operated between Santa Maria and San Luis Obispo, the Regional Day or Month Pass will be an accepted form of payment on the route. SANTA MARIA will be paid the fare revenue for the San Luis Obispo County Regional Pass for riders of the pilot express route. B. SANTA MARIA will conduct quarterly surveys or use other means agreed to by the parties to determine the ridership levels of customers using San Luis Obispo County regional passes on SANTA MARIA’s transit system. SANTA MARIA shall provide the quarterly survey results to SAN LUIS OBISPO and SLOCOG C. SANTA MARIA shall retain all fares or other revenues collected on its pilot route with respect to that service for payments not made with the San Luis Obispo Regional Pass. D. SANTA MARIA will provide access to the pilot express bus service, without charge, to SAN LUIS OBISPO staff for the purposes of checking/monitoring the bus service performance. 10. BUS STOPS/FACILITY SHARING A. SAN LUIS OBISPO is responsible for the installation, maintenance, and expenses for bus stop infrastructure located at the SLO Downtown Transit Center. However, SANTA MARIA will be responsible for the cost of any increased maintenance to such bus stop facilities reasonably resulting from the pilot express program. B. Pilot express routes may utilize existing bus stop infrastructure for signage, provided such signage complies with all applicable SAN LUIS OBISPO Standard Specifications and Engineering Standards. C. All signage for jointly used bus stops shall be subject to prior approval by SAN LUIS OBISPO before installation. D. Each Party shall be solely responsible for any claims or damages arising from the installation of its own bus stop signs, posts, or poles. E. SAN LUIS OBISPO shall provide access to restroom facilities for SANTA MARIA bus drivers at the City Hall Building facility located at 990 Palm Street. F. All parties agree that SAN LUIS OBISPO vehicles have priority over pilot express transit service parking at the Downtown Transit Center and in no event shall pilot express transit vehicles block, delay, or idle in the street or otherwise contribute to congestion while waiting for access to the Downtown Transit Center. 11. EXHIBITS A. All exhibits referenced in this AGREEMENT are hereby incorporated into the AGREEMENT as if set forth in full herein. In the event of any material discrepancy between the terms of any exhibit so incorporated and the terms of this AGREEMENT, the terms of this AGREEMENT shall control. Page 161 of 525 12. NOTICES. A. Any notice required to be given pursuant to the terms and provisions hereof shall be in writing, and shall be sent by certified or registered mail to: SAN LUIS OBISPO: Public Works and Utilities Director City of San Luis Obispo 919 Palm Street, San Luis Obispo, CA 93401 AND City Clerk City of San Luis Obispo 990 Palm Street, San Luis Obispo, CA 93401 SANTA MARIA: Transit Manager City of Santa Maria 110 E Cook Street Santa Maria, CA 93454 AND SAN LUIS OBISPO COUNCIL OF GOVERNMENTS Executive Director City of San Luis Obispo 1114 Marsh Street San Luis Obispo, CA 93401 13. ENTIRE AGREEMENT. A. The terms and conditions set forth in this AGREEMENT, including exhibits referenced, constitute the complete and exclusive statement of the agreement between all of the parties with respect to the subject matter hereof, and there are no other representations, promises, warranties, covenants or undertakings with respect thereto and this agreement may not be contradicted by prior or contemporaneous agreements. Page 162 of 525 IN WITNESS WHEREOF, this AGREEMENT has been executed by the parties hereto, upon the date first above written. CITY OF SANTA MARIA CITY OF SAN LUIS OBISPO & SLOCOG ATTEST: ATTEST: Mayor City of Santa Maria Erica A. Stewart, Mayor City of San Luis Obispo Name City Clerk Teresa Purrington City Clerk APPROVED AS TO FORM AND LEGAL EFFECT: APPROVED AS TO FORM AND LEGAL EFFECT: Name City Counsel By: City Attorney Date: By: SLOCOG Legal Counsel Date: Name City Counsel By: City Attorney Date: SLOCOG Page 163 of 525 President SLOCOG Board of Directors Date: Page 164 of 525 EXHIBIT 1 Page 165 of 525 Page 166 of 525 Figure 1: Service Schedule – Weekdays Only Santa Maria Crossroads Ctr (Depart) Downtown SLO Transit Center Santa Maria Crossroads Ctr (Arrive) 6:20 AM 7:20 AM 8:20 AM 6:45 AM 7:45 AM 8:45 AM 8:20 AM 9:20 AM 10:20 AM 8:45 AM 9:45 AM 10:45 AM No Midday Service, See SLO RTA for travel options 3:00 PM 4:00 PM 5:00 PM 4:10 PM 5:10 PM 6:10 PM 5:00 PM 6:00 PM 7:00 PM Page 167 of 525 Page 168 of 525 FOR THE COUNCIL MEETING OF APRIL 16, 2024 COUNCIL AGENDA REPORT TO: City Council FROM: Interim City Manager Alex Posada BY: Director of Public Works Brett Fulgoni SUBJECT: Federal Transit Administration 5307 Program of Projects for the Federal Fiscal Year 2024-2027 Federal Transportation Improvement Program Description: The City Council will consider adopting the proposed projects selected to receive continual funding for the Federal Fiscal Year 2024-27, Federal Transit Administration's 5307 Call for Projects process, to support ongoing transit capital and operations costs within the Santa Maria Urbanized Area. Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDATION: Adopt a Resolution approving applications for Federal Transit Administration Section 5307 funds for Fiscal Year 2024-25, Fiscal Year 2025-2026, and Fiscal Year 2026-27 for Santa Maria Urbanized Area. BACKGROUND: Each year the Federal Transit Administration (FTA) distributes Section 5307 operating and capital assistance funds to Urbanized Areas (UZAs) to support their respective transit programs. The FTA 5307 funds are apportioned to the small UZAs on the basis of population and population density. Santa Maria Regional Transit (SMRT), as the designated grantee of Section 5307 funds, conducts the project selection process for the Santa Maria Urbanized Area. The City of Santa Maria approves projects and then submits the projects to projects to Santa Barbara County Association of Governments (SBCAG). SBCAG then includes the approved projects into the Federal Transportation Improvement Program. The primary transit operator for the Santa Maria UZA is the City's Santa Maria Regional Transit, but there are other operators. Page 169 of 525 SBCAG staff has estimated available FTA 5307 apportionments for Fiscal Year (FY) 24/25 to 26/27 for the 2024 cycle. The estimates are in the table below. Urbanized Area FY 24/25 FY 25/26 FY 26/27 Totals Lompoc 1,763,907 1,763,907 1,763,907 5,297,721 Santa Maria 4,248,541 4,248,541 4,248,541 12,745,623 Total 6,012,448 6,012,448 6,012,448 18,037,344 Note: Apportionments are based on Federal Fiscal Year 2023 Apportionments Apportionments exclude Small Transit Intensive Cites funding estimates* To select the projects that will receive funding, SBCAG is required by federal regulation to adopt procedures that will be used for the selection of projects for FTA 5307 funding. The procedures require each designated grantee of the UZA to screen, score, and recommend to SBCAG which projects in their UZA should be funded for fiscal years 24/25 to 26/27. After the initial screening and scoring by each designated grantee, the projects must be submitted to the SBCAG Board for approval. DISCUSSION: While SMRT is the primary transit operator and designated FTA grantee for the Santa Maria UZA, there are also three other transit operators, who provide some level of service to the Santa Maria UZA: Guadalupe Flyer, SBCAG's Clean Air Express, and San Luis Obispo County's San Luis Obispo Regional Transit Authority (SLORTA). The Call for Projects process is open to considering funding these other transit operators as well. Consideration of awarding Santa Maria UZA funds to these other operators is based on the scoring criteria which includes whether it is considered an "effective and cost-efficient use of public funds," amongst other criteria. Two project applications were submitted in the Santa Maria UZA; one from SMRT and another from SLORTA. 1. Federal Transit Operating Assistance for SMRT: Program a total of $4,461,000 in FY's 24/25 to 26/27 in FTA Section 5307 urbanized area formula funds for transit capital, operating, maintenance, and expansion assistance. 2. Operating Assistance for SLORTA Route 10: Program a total of $255,093 in FY 24/25 in FTA Section 5307 urbanized area formula funds for partial funding of SLORTA Route 10 fixed -route services. Change from Status Quo Historically, Santa Maria, as the designated recipient, contributed Santa Maria UZA allocated funding to support SLORTA's Route 10 service into Santa Maria from San Luis Obispo (SLO) County. However, Santa Maria has long disputed the appropriate level of 2 Page 170 of 525 financial contribution to SLORTA and that this matter should be studied rather than capitulating to the request. After a very generous and negotiated contribution of Santa Maria UZA allocation of The Coronavirus Aid, Relief, and Economic Security (CARES) Act (2020) funding in the amount of $1.2 million and an additional one-time contribution of $255,093 in FY 23/24 5307 funds to SLORTA back in 2021, a May 17, 2021, letter from the Executive Director of SLORTA (Attachment A) acknowledges that an "independent study...will inform future negotiations on regional funding." A codeveloped study, with SLORTA input (Attachment B), by HDR Consulting, found that Santa Maria Regional Transit could offer comparable service far cheaper and in lieu of financial support to SLORTA. Santa Maria Transit staff have reached out to SLORTA to collaborate on an alternative "effective and cost-efficient use of public funds" transit model where SMRT operates increased service into SLO County in lieu of a subsidy to SLORTA. Which notably has not restored pre -pandemic service levels due to ongoing challenges stemming from the pandemic, issues SMRT has long resolved. These negotiations have only recently begun (March 2024), and the two organizations are still without the necessary agreement. On the basis of the criteria for "effective and cost-efficient use of public funds," the lack of a mutually agreed upon agreement and the notably substantial amount of already contributed funds, Santa Maria staff are not recommending the award of Santa Maria UZA allocated 5307 funds be shared with SLORTA. Should an agreement be reached later, an amendment to the Call for Projects will be brought forward for consideration. Notably, there is no obligation to do so, and SLORTA has been aware of this possibility since May 2021. It should also be noted that SLO County has its own independent sources of SLO County related UZA's 5307 funding which would support SLORTA's Route 10 operational costs, including the marginal amount it takes to cross the river into Santa Maria, and which San Luis Obispo residents expect from SLORTA. Similarly, SMRT has regularly offered, relying on its own allocation of SM UZA funds, to support additional service into SLO County in lieu of the subsidy request from SLORTA. As previously noted, these negotiations have only recently begun, and the two organizations are still without the necessary agreement. Until such an agreement can be reached, at which time an amendment to the Call for Projects will be brought forward for consideration, it is the recommendation to not share SM UZA funds with SLO RTA on the basis herein outlined. This would be consistent with any other time Santa Maria allocates funding. Alternative(s) The City Council may alternatively decide to offer SLORTA some negotiated amount of Santa Maria UZA funding. However, this alternative is not recommended as it continues a precedent that supports a SLO County reliance on Santa Maria UZA funds to augment their budget while not producing an equally beneficial service for both San Luis Obispo and Santa Maria/Santa Barbara County residents. 3 Page 171 of 525 Fiscal Considerations The FTA required 5307 selection process is necessary for UZAs to have, in order for their projects to be recorded in the Federal Statewide Transportation Improvement Program and then be able to expend federal funds on their transit programs. Not adopting a 5307 projects list for the Santa Maria UZA would prevent SMRT from using this primary source of funding used to support Santa Maria's, Orcutt's, and Tanglewood's transit services. Impact to the Community An ever-increasing population of the Santa Maria UZA community members are relying on the City's SMRT public transit system to address their mobility needs. As of recent, ridership numbers have surpassed pre -pandemic levels. SMRT is continuing to invest in its transit services for the Santa Maria UZA, and beyond, by making intentional, deliberate, and cost-effective service improvements which focus on prioritizing Santa Maria UZA and Northern Santa Barabara resident needs. The adoption of the recommended FTA 5307 Call for Projects will ensure that SMRT can continue to deliver these vital services, while still buying out the team for a mutually beneficial agreement to be reached. ATTACHMENTS A. May 17, 2021, RTA Letter — Amended Application, Need for Study B. HRD Route 10 Operational Analysis Technical MEMO 4 Page 172 of 525 Attachment A rta 179 Cross Street, Suite A San Luis Obispo, CA 93401 805) 781-4472 Fax (805) 781-1291 www.slorta.org REGIONAL TRANSIT AUTHORITY May 17, 2021 SENT VIA EMAIL Kevin McCune Santa Maria Public Works Director Re: Amended FTA Section 5307 Application for Santa Maria UZA Funds Dear Mr. McCune: Per our recent discussions, the San Luis Obispo Regional Transit Authority (RTA) accepts the City of Maria's recommended programming of $255,093 in Fiscal Year 2023-24 Federal Transit Administration Section 5307 funds for partial funding of RTA Route 10 fixed -route services that operate in the Santa Maria Urbanized Area. As agreed, we herein withdraw our request for FY21-22 and FY22-23 funding. Please accept this letter as an amendment to tike RTA's application that we submitted to the City on January 14, 2021. We look forward to partnering with the City, the Santa Barbara County Association of Governments and the San Luis Obispo Council of Governments to jointly fund and conduct an independent study that will inform future negotiations on regional funding agreements for transit services that cross county lines. Feel free to call or email me if you need additional information. Sincerely, RTA Executive Director cc: Pete Rodgers, SLOCOG Sarkes Khachek, SBCAG The Regional Transit Authority is a Joint Powers Agency serving residents and visitors of: Arroyo Grande Atascadero Grover Beach Morro Bay Paso Robles Pismo Beach San Luis Obispo and The County of San Luis Obispo Page 173 of 525 Attachment B Route 10 Operational Analysis Findings Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan — Contract Amendment Memorandum Date: Wednesday, July 12, 2023 Project: Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan — Contract Amendment To: Gamaliel Anguiano, City of Santa Maria From: Marie Lewis Adams, HDR Subject: Route 10 Operational Analysis Findings The San Luis Obispo Regional Transit Authority (RTA) currently operates bus service between Santa Maria and San Luis Obispo designated as Route 10. The City of Santa Maria historically contributes a portion of its FTA 5307 funds to RTA, to support operation of the route, outside of a formal agreement with RTA. The City of Santa Maria, in partnership with RTA, the Santa Barbara County Association of Governments (SBCAG), and the San Luis Obispo Council of Governments (SLOCOG), wishes to assess the potential benefits and costs of alternative operating arrangements for Route 10 to achieve attractive, cost-effective service along this section of the US 101 corridor. This memo summarizes the findings of the analysis conducted. Travel Demand 1. 1 Overall Travel Patterns Travel demand between Santa Maria and Nipomo, the Five Cities, and San Luis Obispo was analyzed using Replica, a data platform that uses mobile location data to create a representative sample of daily origin and destination patterns. Data from Replica captured travel demand for all modes of transportation between January and June of 2022. Shown in Figure 1, weekday trips originating in Santa Maria peak during commute times at 7:OOAM and 3:OOPM, with the highest number of trips made from Santa Maria to the Five Cities. Travel between the Five Cities and Santa Maria is bidirectional during the peak periods. In contrast, trips from Santa Maria to San Luis Obispo peak in the morning, with a corresponding afternoon return peak, whereas trips to Nipomo show the opposite pattern. Weekday trips ending in Santa Maria (Figure 3) were the highest from the Five Cities at 7:OOAM and 3:OOPM. Travel demand on the weekends, shown in Figure 2 and Figure 4, presents a bell curve with the highest number of trips at midday. Overall, weekend travel was highest between Santa Maria and the Five Cities, followed by Nipomo and San Luis Obispo. March 2024 1 1Page 174 of 525 Route 10 Operational Analysis Findings Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan Figure 4. Weekday northbound trips from Santa Figure 3. Weekend northbound trips from Santa Maria, Maria, all modes (January — June 2022) 10,000 8,000 6,000 U cL 4,000 2,000 0 O0 O0 O0 O0 .O0 O0 O0 O0 O0 O0 O0 na. . AA. c5. . r. X17. A . ^p. r . Time t Nipomo --The Five Cities --0—San Luis Obispo all modes (January — June 2022) 10,000 8,000 6,000 U cL 4,000 2,000 0 O0 O0 O0 O0 .O0 O0 O0 O0 O0 O0 O0 N• <o. AA. p). . <n. . A . wpb. r. (0. Time t Nipomo —0—The Five Cities —0—San Luis Obispo Figure 1. Weekday southbound trips to Santa Maria, Figure 2. Weekend southbound trips to Santa Maria, all modes (January — June 2022) 10,000 8,000 6,000 U Q- 4,000 2,000 0 0 0 0 0 0 0 0 0 0 00OOOO .0 .O O O O O O Time t Nipomo The Five Cities San Luis Obispo all modes (January — June 2022) 10,000 8,000 6,000 U e- 4,000 2,000 O0 O0 O0 O0 .0 .0 .O0 O0 O0 O0 O0 .0 r. . GD. .l. cb. P,. N`s. (. K\. Np5. ,. rb. Time t—Nipomo The Five Cities San Luis Obispo March 2024 1 2Page 175 of 525 Route 10 Operational Analysis Findings Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan 1.2 Route 10 Ridership Patterns In fiscal year (FY) 2018/2019, prior to the Covid-19 pandemic, annual ridership on the route totaled over 193,000. Ridership in FY 2021/2022 totaled over 112,000, representing a decrease of over 40 percent. Notably, monthly ridership showed an increasing trend during the early months of 2022. With pandemic restrictions easing and workers returning to the office, local and national trends suggest that ridership will likely continue to increase in the near future. It is unclear, however, if or when ridership will return to pre -pandemic levels. Route 10's regular (non -express) service pattern includes 22 stops in each direction. Three of those stops (Government Center, Pismo Beach Premium Outlets, Santa Maria Transit Center) generate over 50 percent of total route boardings and alightings. When combined with the fourth highest -ridership stop, Tefft & Carillo in Nipomo, those four stops together account for approximately two-thirds of total activity along the route. Route 10 ridership by time of day was compared with Replica data to assess differences in travel patterns between those riding transit and overall, non -mode -specific travel. Total Route 10 boardings between January and June 2022 are shown in the figures below. Boardings reflect commute -oriented travel demands on the weekdays and midday -focused travel demands on the weekend. This distribution closely reflects overall demand patterns, except for weekday northbound boardings, which show relatively higher trips in the morning peak and fewer in the afternoon compared to overall travel demand on the corridor, as shown in Figure 5. This more closely reflects the demand pattern for trips to San Luis Obispo suggests that the route is particularly well -suited to long distance commuters to downtown San Luis Obispo. Northbound boardings are highest for the 7:14AM departure on weekdays and the 12:14PM departure on weekends. Southbound boardings are highest for the 3:33PM departure on weekdays and the 1:33PM departure on weekends. Weekday boarding activity is stronger in the AM peak northbound and the PM peak southbound, suggesting more passengers are heading northbound for work using Route 10. Before the pandemic, RTA operated express patterns that served Cal Poly San Luis Obispo and made fewer intermediate stops. In 2019, the Cal Poly Library ranked 19th out of 30 stops by ridership, despite only being served by two round trip express runs per day. On a per trip basis, it ranked 9th. This suggests potential latent demand for additional trips to Cal Poly. March 2024 1 3Page 176 of 525 Route 10 Operational Analysis Findings Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan — Contract Amendment Figure 5. Weekday northbound travel demand compared Figure 6. Weekend northbound travel demand compared to Route 10 boardings (January — June 2022) to Route 10 boardings (January — June 2022) 3000 N 2500 2000 0 1500 0 1000 m 500 0 .111 1111111111111111 1 1111 i 1 1 . O° O° O° O° .O° O° o° O° O° .O° O° O° Time 20000 15000 cu 10000 p 5000 m 0 O 800 20000 600 15000 c 400 10000 ca m 200 . . ' I I II I d ii i i . 5000 O° .O° O° O° O° O° .O° O° O° O° O° .O° Time Boardings •Travel Demand Boardings •Travel Demand Overall Demand Figure 7. Weekday southbound travel demand compared Figure 8. Weekend southbound travel demand to Route 10 boardings (January — June 2022) compared to Route 10 boardings (January — June 2022) 3000 2500 E 2000 1500 O 1000 m 500 0 1dddii111lllllll I I do11 l I . o° .o° o° O° .o° .o° o° o° o° .o° .o° O° O. <D . O. ,\N. <5. <0. <\ • ,,O. . evr5. Time 20000 15000 10000 5000 0 Overall Demand 800 20000 600 15000 c 400 10000 co o too 200 :°°° I tlll V I I I .0 o° .O° o° o° o° o° .O° o° o° o° o° .o°N. O. <0. A. c. ,\N. <O. <0. <\. , j. rvN. cp. Time Boardings •Travel Demand Boardings •Travel Demand Overall Demand March 2024 1 4Page 177 of 525 Route 10 Operational Analysis Findings Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan Comparison with Potential SMRT Operation This section provides a theoretical comparison of differences if the city of Santa Maria, which manages contract -operated Santa Maria Regional Transit (SMRT) service, were to operate the route with no changes to its current service pattern. This comparison is provided for informational purposes only. 2.1 Operational Impacts of Zero -Emissions Technology Route 10 currently operates at one -hour headways using three diesel internal combustion engine (ICE) buses operating up to five round trips per day with 31 -minute layovers at the Santa Maria Transit Center. SMRT is in the process of transitioning from diesel ICE buses to battery electric buses (BEBs) to comply with the California Air Resources Board's (CARB) Innovative Clean Transit rule. RTA will also transition to zero -emissions technology to comply with CARB regulations, but on a different timeline than SMRT. Route 10 was analyzed to determine what changes to the operating pattern, if any, would be needed to deliver the same service with BEBs. BEBs have shorter range capabilities than ICEs, which is an issue when operating a longer -distance route. BEB ranges will likely continue to increase in future as the technology progresses. The estimated daily energy need per vehicle for five round trips on Route 10 is 836 kilowatt-hours kWh), well above the end -of -life battery capacity of 281 kWh for SMRT's BEBs (end -of -life battery storage reflects a conservative estimate of battery capacity). If a 300 -kW charger were available during layovers at the Santa Maria Transit Center, charging for at least 28 minutes between trips could provide enough energy for this route to operate. Therefore, it would be feasible to operate the service with no increase in the number of buses required if the necessary charging infrastructure is available at the Transit Center. Currently, SMRT is in the early stages of studying the possibility of installing charging equipment at the Transit Center. While this analysis provides an estimate of the requirements to operate BEBs on Route 10, ICE vehicles or a combination of BEB and ICE vehicles may be utilized during the transition phase. 2.2 Deadhead Requirements RTA currently operates Route 10 with buses stored overnight and services at its facility at 253 Elks Lane in San Luis Obispo, just over 2 miles from Government Center, the northern terminus of Route 10. SMRT's bus facility is located at 1303 Fairway Drive in Santa Maria, approximately 4 miles from the Santa Maria Transit Center, the southern terminus of Route 10. However, existing operational patterns require RTA to deadhead multiple trips to and from Santa Maria. Under the current schedule, two of three buses must first deadhead to the Santa Maria Transit Center in the morning to start their runs, and all three must deadhead back to San Luis Obispo at the end of the day — over 30 miles each way. Since two of the three buses both begin and end revenue service in Santa Maria, deadhead miles could be substantially reduced if more vehicles started and ended their operation in Santa Maria. 2.3 Subsidy Comparison Table 1 shows the estimated operating costs, fare revenue, and subsidy under existing RTA operation and potential SMRT operation, using information provided by RTA and SMRT. Operating costs per hour were derived from the 2021 National Transit Database. While average fares are slightly lower, March 2024 1 5Page 178 of 525 Route 10 Operational Analysis Findings Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan SMRT's lower hourly operating cost results in a reduction in total subsidy by over $710,000 and a 6.33 reduction in operating subsidy per passenger. This comparison does not consider any cost implications of responsibility for associated paratransit service. Table 1. Annual Subsidy Comparison by Operator Annual revenue hours*9,907 0 Approximate annual ridership 113,000 0 Cost per hour 133.35 58.34 75.01 Total annual cost 1,320,000 580,000 740,000 Average Fare 1.79 1.52 0.27 Total Fare Revenue 202,000 171,000 31,000 Total Subsidy 1,120,000 410,000 710,000 Subsidy per passenger 9.94 3.61 6.33 Assumes operation of August 2022 schedule over 255 weekdays, 52 Saturdays and 56 Sundays or holidays. 2.A Start -Up Costs for BEB Operation Route 10 requires three buses in daily service, and one additional spare bus will be required to maintain adequate spare ratio. To operate with only three buses using battery technology, installation of a charger at the Santa Maria Transit Center would also be required. Table 2 shows the estimated start-up costs associated with operation of Route 10 using BEBs, based on unit costs derived from the Santa Maria ZEB Feasibility Study completed in 2022. The total estimated start-up cost for either agency to operate Route 10 service with BEBs is approximately $4.6 million. Like the operating comparison above, this estimate does not consider any start-up costs associated with the potential need to operate paratransit service along the corridor. Table 2. Estimated Start -Up Capital Costs Item Unit Quantity Unit Cost Cost (2021$) Battery Electric Buses Charger Charger installation Supporting infrastructure Total Ea 4 940,000 1 $3,760,000 kW 300 1,190 $357,000 1,000 $300,000kW300 kW 300 $520 $156,000 4!573,000 An important note is that the above Estimated Start -Up Costs are based on the most extreme, and least likely, hypothetical scenario of SMRT taking over the operations of Route 10. However, the start-up costs would be lower if operation of the Route 10 where shared between the two agencies, as illustrated by Shared Operation alternatives presented later in this report. Route 10 Observations Routing and Operations. The current Route 10 route structure combines elements of local and express service. Notably, just four stops make up nearly two thirds of boardings. In addition, RTA operates an overlay express service during peak hours that makes fewer intermediate stops. The express service was suspended during the pandemic, and restoration was requested during the FY23 and FY24 SLOCOG unmet transit needs cycles. RTA has now restored one express round trip from March 2024 1 6Page 179 of 525 Route 10 Operational Analysis Findings Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan Santa Maria to Cal Poly. Scheduled travel times between Santa Maria and Government Center are approximately 15 minutes shorter, representing a 20 percent travel time savings while still serving nearly 70 percent of current riders (as of FY 2021/2022) with the six stops identified on the online schedule. Anecdotal information from Santa Maria riders and transit service providers suggests there is latent demand for more direct service between Santa Maria and San Luis Obispo. Demand Patterns. As noted in Section 1.2, boarding patterns show substantial ridership in the morning commute period northbound to San Luis Obispo, but the earliest arrival time in at Government Center is currently 7:28 AM. Demand for earlier weekday service was also identified in rider surveys for the 2017 Santa Maria -San Luis Obispo Transportation Connectivity Study. Providing earlier service would likely capture commuters with earlier start times. This represents a potential partnership opportunity with SMRT, since SMRT buses could begin service earlier without having to deadhead from San Luis Obispo. In contrast to demonstrated ridership demand for commute trips to San Luis Obispo, there is significant travel demand between Santa Maria and the Five Cities and Nipomo that is not reflected to the same degree in Route 10 ridership. Better understanding of demand patterns between the Five Cities Area and Santa Maria could provide insight into potential opportunities for better first/last mile connectivity, particularly to/from the Pismo Beach Premium Outlets location. Given the close proximity of Nipomo to Santa Maria, express -type service may not provide convenient connections between these cities, and there may be an opportunity for a more local -type service if an appropriate interagency agreement could be developed. Transfers. The Santa Maria Transit Center is the primary Route 10 boarding location in the City of Santa Maria, and also serves as a transfer hub for SMRT routes. However, current schedules do not allow convenient connections between Route 10 and SMRT routes. Route 10 buses are scheduled to arrive and depart consistently at the same time each hour, whereas most SMRT routes operate on a 45 -minute headway, meaning that ideal connections are possible at most once every 3 hours. One SMRT route (Route 2) operates on a primarily hourly schedule but arrives 10 minutes after Route 10 departs the transit center and departs 13 minutes before Route 10 arrives. Assuming no changes to these basic schedules, differences in headways limit the ability to make consistent connections. There may be opportunities to modify RTA or SMRT schedules to provide timed transfers to or from Route 10 at select points in the day. Surveys of Route 10 riders could help pinpoint the SMRT routes that these riders most frequently connect to, and these routes could be prioritized for connections. Fare Payment. As a regional route, transfers are an important way to extend the reach of service, and the 2017 Route 10 on -board survey found that nearly a quarter of riders made a transfer on their trip. Riders going between both transit systems to reach their final destination must pay full fare on both systems and navigate using two fare payment applications or physical passes. An inter -agency fare agreement would help reduce cost burdens for disadvantaged riders and could promote ridership on both RTA and SMRT Routes. If SMRT were to assume or supplement even just part of the operation of Route 10, an inter -agency agreement would still be recommended to preserve transfers to RTA, SLO Transit, and SoCo Transit routes that are currently available with RTA passes. Use of common fare media or purchasing systems could also help improve convenience, such as a single app which could be used to purchase fares for multiple agencies. March 2024 1 7Page 180 of 525 Route 10 Operational Analysis Findings Santa Maria Regional Transit Zero Emission Bus Fleet Rollout Plan Findings and Recommendations While the subsidy comparison indicates that SMRT could operate Route 10 more cost effectively than RTA, the majority of the route is in RTA's service area, and there are key connections to SoCo Transit and SLO Transit for which RTA has existing transfer agreements. Operational savings for the route would need to be balanced against upfront capital costs and the need to assume complementary paratransit service (unless the route is classified as a commuter bus, per FTA guidelines). In particular, SMRT would need to expand its fleet, whereas RTA is already in possession of buses for existing operations. In the long term, either agency would incur costs related to transition to zero -emission buses, and charging infrastructure would be needed to support operations with BEBs. As the agencies transition, a BEB charging agreement should be considered to facilitate efficient BEB operations across the region. The City of Santa Maria has been providing a portion of its FTA 5307 funds to RTA to support the operating costs of Route 10 since the mid -1990s, outside of a formal or defined method, and there is a need to consider the most efficient use of public funds. Given that the analysis conducted indicates that SMRT can provide service with lower operating cost, and there are other potential operating efficiencies of buses beginning in Santa Maria, it is recommended that the two agencies discuss ways to maximize limited funding resources to address rider needs. Assuming RTA intends to continue operating Route 10 in its current configuration, there may be a partnership opportunity for SMRT to operate supplemental express overlay service. This would allow for service expansion using SMRT's drivers and would support earlier service northbound without buses needing to deadhead from San Luis Obispo. There are a number of different ways this could be structured, and continued discussions would need to take place on fare payment, schedules, and transfers; any service arrangement should be delivered in a way prioritizes simplicity for riders. Per California Transportation Development Act regulations, any extension of service into a neighboring service area requires the approval of the affected transit district. This would apply to both SMRT extending into RTA's service area as well as RTA's extension into Santa Maria as part of Route 10. As a regional route, connecting services are important for customers to make complete trips and will only become more important if operations are streamlined. With buses operating only once an hour, timed transfers at major hubs like the Santa Maria Transit Center are crucial to making convenient connections, but current SMRT and RTA schedules do not allow for timed transfers. Another factor complicating passenger transfers between operators is the need to pay a second fare, which adds cost and complexity. RTA already allows transfers to SLO Transit and SoCo Transit with its passes. A similar agreement with SMRT would improve customer convenience for connections between Route 10 and SMRT's local routes. March 2024 1 8Page 181 of 525 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA MARIA, CALIFORNIA, APPROVING APPLICATIONS FOR FEDERAL TRANSIT ADMINISTRATION SECTION 5307 FUNDS FOR FISCAL YEAR 2024-25, FISCAL YEAR 2025-2026, AND FISCAL YEAR 2026-27 FOR SANTA MARIA URBANIZED AREA WHEREAS, the City of Santa Maria desires to apply for Federal Transit Administration (FTA) Section 5307 capital and operating assistance funds; and WHEREAS, the City of Santa Maria provides fixed route and Americans with Disabilities Act (ADA) transit services to the Santa Maria Urbanized Area (UZA) as Santa Maria Regional Transit (SMRT); and WHEREAS, SMRT is the Santa Barbara County Association of Governments' SBCAG) designated grantee of FTA Section 5307 funds; and WHEREAS, SBCAG has established a competitive process for the granting of FTA Section 5307 funds; and WHEREAS, SBCAG has designated SMRT to administer the competitive process for the Santa Maria UZA; and WHEREAS, SBCAG publicly advertised for FTA Section 5307 funding applications; and WHEREAS, the City of Santa Maria application for local capital and operating assistance received the highest score and ranked first in the Santa Maria UZA; and WHEREAS, there are sufficient FTA Section 5307 funds in the Santa Maria UZA to award funding requests from the City of Santa Maria NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, California, as follows: 1. The City of Santa Maria's SMRT Local Capital and Operating Assistance application for FTA Section 5307 funds in the Santa Maria UZA are each recommended for approval and funding by SBCAG Board of Directors. PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria held this 16th day of April 2024. Page 182 of 525 Mayor ATTEST: Chief Deputy City Clerk APPROVED AS TO FORM: Risk Manager City Attorney APPROVED AS TO CONTENT: Department Director Interim City Manager Page 183 of 525 FOR THE COUNCIL MEETING OF APRIL 16, 2024 COUNCIL AGENDA REPORT TO: City Council FROM: Interim City Manager Alex Posada BY: Director of Public Works Brett Fulgoni SUBJECT: Santa Maria Regional Transit Fiscal Year 2023-24 Low Carbon Operations Program Grant Application, Solar Array Electric Vehicle Charger Description: The City Council will consider authorizing the Transit Program's recommended Fiscal Year 2023-24 Low Carbon Operations Program grant application for the amount of 213,970 to be used for the purchase of two off -grid solar array electric vehicle chargers, off the California Department of Goods & Services contract, to support the Transit Program's fleet electrification efforts. Environmental Notice: The activity is not a "Project" as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required. RECOMMENDATION: Adopt a Resolution authorizing the execution of the Certifications and Assurances and authorized agent forms for the Low Carbon Transit Operations Program, approve the grant application and receipt of Fiscal Year 2023-24 Low Carbon Operations Program grant funding for $213,970 for the purchase of two Solar Array Electric Vehicle Chargers, designate representatives to act on City Council's behalf, and amend the Transit Program's Capital Maintenance Equipment Project Budget to reflect this project. BACKGROUND: The Low Carbon Transit Operations Program (LCTOP) was created by the State of California to provide operating and capital assistance for transit agencies to reduce their greenhouse gas emissions and improve mobility. Approved LCTOP projects include the support of new or expanded bus or rail services, expansion of intermodal transit facilities, and may include equipment acquisition, fueling, maintenance, and other costs to operate those services or facilities, as long as the project supports reducing greenhouse gas emissions. For service areas that include disadvantaged communities (DAC), at least 50 percent of the total funds received shall be expended on projects that will benefit DAC. Page 184 of 525 SAN LUIS OBISPO COUNCIL OF GOVERNMENTS STAFF REPORT MEETING DATE: AUGUST 6, 2025 ITEM C-10 SUBJECT: STAFF CONTACT: MOU between SLOCOG, City of San Luis Obispo and City of Santa Maria Ivana Rodriguez SUMMARY The City of Santa Maria’s public transit system, Santa Maria Regional Transit (SMRT) will be operating a new express fixed-route pilot service from Santa Maria to San Luis Obispo beginning as early as September 2025. Coordination between SLOCOG, San Luis Obispo, Santa Maria, and SLO RTA has been ongoing to mutually agree on the logistics of this pilot service. This staff report presents a Memorandum of Understanding (MOU) for SLOCOG, the City of San Luis Obispo, and the City of Santa Maria to establish mutually agreeable terms for the operation of inter-county services. RECOMMENDATIONS Staff: Execute the Memorandum of Understanding between SLOCOG, the City of San Luis Obispo and the City of Santa Maria once finalized by each agency’s legal team. TTAC: Support staff recommendation CTAC: Support staff recommendation DISCUSSION Beginning as early as September 2025, Santa Maria Regional Transit (SMRT) will begin operating a new express fixed-route pilot service from Santa Maria to San Luis Obispo. The pilot route will be in operation for two years. The direct service route will depart from the Santa Maria Crossroads Shopping Center and travel directly to the Downtown Transit Center in San Luis Obispo. The service will operate on weekdays only during peak commute times in the morning and afternoon. A Memorandum of Understanding (MOU) has been established to formalize each agency's role, responsibilities, data sharing protocols, and communication methods during the pilot phase. This MOU is currently being reviewed by agency’s legal team and will be released as a draft in the addendum for the SLOCOG Board Meeting packet. As part of this MOU, SMRT will participate in the Regional Pass Program, allowing passengers to use their existing regional passes on the new pilot route. RTA, which administers the program, will compensate SMRT for accepted regional passes. Should SMRT decide to make this route permanent after the pilot, a new MOU will be drafted to outline additional roles and responsibilities for transit operators within San Luis Obispo County. SMRT will provide monthly performance reports including on-time performance, ridership by stop, and customer feedback data to SLOCOG and San Luis Obispo Transit. The pilot service will help commuters traveling from Santa Maria to San Luis Obispo. This service is seen as providing an alternative transit service that is not entirely duplicative of RTA’s Route 10 because there are no stops in-between the origin and end destination. Riders who will benefit the most are those traveling between Santa Maria and San Luis Obispo during the morning and evening on weekdays. Additional transit service between the two cities can help reduce congestion if more people are able to commute via transit and not single occupancy vehicle. Because it is a direct service, the travel time associated with this pilot route is much more competitive with driving. SLOCOG staff is supportive of enhanced transit service between these key destinations. C-10-1 Page 185 of 525 C-10-2 The MOU will be provided in the Addendum that will be distributed on August 1, 2025. Page 186 of 525