HomeMy WebLinkAbout2026-04-21 - Item 6f. Floyd and Fuchs - Staff Agenda CorrespondenceCity of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: April 21, 2026
TO: Mayor and Council
FROM: Aaron Floyd, Public Works and Utilities Director
Prepared By: Alex Fuchs, Mobility Services Business Manager
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 7f – AUTHORIZATION TO AWARD TRANSIT OPERATION AND
MAINTENANCE SERVICES CONTRACT
Staff received the following questions regarding the recommended action to authorize the
City Manager to award a contract to MV Transportation, Inc. for transit operation and
maintenance services. The questions are below with staff’s response shown in italics:
1) Which service changes identified in the Short-Range Transit Plan (SRTP) are
incorporated into the draft agreement for transit operations and maintenance
services?
The current Financial Plan includes implementation of Short-Range Transit Plan
recommendations including:
o Fiscal Year 2025-2026
▪ Reinstate services to pre-pandemic levels1
▪ Increase Route 4A/4B Frequency (45-minute headways)
▪ Revise Route 2A/2B to serve San Luis Ranch
o Fiscal Year 2026-2027
▪ Operate B Routes on weekends year-round
▪ New Avila Ranch direct route
The draft agreement (Attachment C to the staff report) includes pricing formulas
that account for several SRTP-recommended service changes, including:
• Reinstating services to pre-pandemic levels2
• Increasing Route 4A/4B frequency during the academic year
• Operating “B” routes on weekends
1 As of January 2026, suspended services include the San Luis Tripper and the Highland
Tripper. All other services have been reinstated.
2 “A” Routes travel clockwise and operate daily while “B” Routes travel counter-clockwise and
currently only run on weekdays
ITEM 7f – Authorization to Award Transit Operation and Maintenance Services Contract Page 2
The remaining recommended changes, specifically revisions to Route 2A/B (45-
minute headways) and the addition of a new direct service to Avila Ranch, are
constrained by current bus bay capacity at the Downtown Transit Center, which
limits the number of routes that can operate efficiently at one time. As a result,
these changes cannot be implemented until that infrastructure is built. Funding for
design alternatives for the Downtown Transit Center was also included in the
current Financial Plan and that design work is currently underway.
Design for the Downtown Transit Center Project is anticipated to be completed by
July 2027, with construction planned from February through June 2028.
Implementation timing for these service enhancements is dependent on
completion of these improvements. Funding for this project is primarily from
competitive federal grant programs that may be reduced or eliminated entirely with
the adoption of future annual budget appropriations. If staff is unsuccessful in
securing competitive federal funds for this project, then other federal and state
sources will be pursued.
All other service recommendations may be implemented later in the contract term,
subject to the availability of funding, vehicles, and staffing, and would be brought
forward for future Council consideration as needed. The agreement structure also
allows the City to scale service levels over time based on demand and available
resources. Agreement amendments may be necessary to adjust the total City
obligation under the contract for these services.
In summary, the draft agreement positions the City to restore and expand transit
service in the near term, while deferring more significant service changes until
infrastructure constraints at the Downtown Transit Center are addressed.
Additional detail is provided on pages 148-149 of the agenda packet.