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March 18, 2025
ITEM TITLE
Chula Vista Community Shuttle: Accept Grant Funds and Authorize the Execution of Documents for the Chula Vista Community Shuttle Program for Enhanced Year 4 Services
Report Number: 24-0278
Location: No specific geographic location
Department: Housing and Homeless Services
G.C. § 84308 Regulations Apply: No
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. Notwithstanding the foregoing, the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines.
Recommended Action
Adopt a resolution authorizing the City Manager or designee to enter into agreements for additional funds to provide support for the Chula Vista Community Shuttle program and execute related agreements or documents, as follows: (1) Third Amendment with Clean Mobility Options Voucher Pilot Program accepting $300,000; and (2) Second Amendment No. 2024 -208 to Agreement No. 2021 -101 with Community Congregational Development Corporation accepting $100,000.
SUMMARY
Since June 13, 2022 , the Chula Vista Community Shuttle Pilot program (the “CV Community Shuttle”) has been providing valuable on -demand shuttle services for Northwest Chula Vi sta with over 75,000 rides provided through two primary funding sources under the Clean Mobility Options (CMO) Voucher Pilot Program and Community Congregational Development Corporation (“CCDC”). Under the CMO funds, the CV Community Shuttle must operate for a fourth year of operations. Approval of this item will authorize the City to accept funding and amend existing agreements from both existing partners totaling $400,000 towards fourth year operations.
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ENVIRONMENTAL REVIEW
The Director of Development Services has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines because it will not result in a physical change to the environment.
Therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines, the activity is not subject to CEQA.
Notwithstanding the foregoing, it has also been determined that the activity qualifies for an Exemption pursuant to Section 15061(b)(3) of the California Environmental Quality Act State Guidelines. Thus, no further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
To support Chula Vista’s efforts of reducing greenhouse gas emissions and meeting public transportation needs for all ages, the City of Chula Vista (City), applied for the CMO grant in October of 2020. In June 2021, the City was awarded $997,833 through the CMO program to launch the CV Community Shuttle Pilot program to provide clean transportation to seniors in northwest Chula Vista , within a targeted service area deemed eligible through CMO using four sedans and one Americans with Disabilities Act ( ADA) accessible van. In addition, the City received a grant award of $1,000,000 as supplemental funding from CCDC to expand the original project service area and add an additional sedan to the service. On October 12, 2021, the City Council accepted both grant awards , which fund the first three years of operations . On June 11, 2024 the City accepted $502,167 in supplemental grant funding from the CMO program to enhance the program and add a new passenger van. The total funding awarded to date is $2,500,000.
The CV Community Shuttle operates between the hours of 7 a.m. and 7 p .m. Monday through Friday as an on-demand service using a fleet of dedicated all-electric vehicles (EV). (CV Community Shuttle is serviced by a total of 5 sedans and 2 passenger vans, one of which is ADA). Riders can request rides within a geo-fenced coverage zone through a mobile ride request app available on iOS and Android, by call in or tex t, by kiosks available at key destinations and public spaces, or by waving down a vehicle. The initial goal of the CV Community Shuttle Pilot program was to improve mobility options for the senior communit y, provide connections to public transit and key community services, improve social determinants of health related to transportation accessibility, reduce greenhouse gas emissions, improve air quality, and reduce congestion.
Caregivers, senior living community staff, and others can also make requests on behalf of riders. The service includes an ADA accessible vehicle for riders requiring ADA assistance, which can be indicated in the ride request app, the kiosk, or when requesting by phone.
While the service remains free for users ages 55 and up, in April 2 024 the service was opened to everyone under 55 for a fare of $2 per ride. A revenue sharing model exists for all funds obtained through fares and advertising with the current operator to be applied to year four. As of March 2024, fare collection has been minimal, totaling approximately $2,000 and no advertising dollars have been acquired.
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While the CV Community Shuttle was started as a pilot program, the City recognizes the value the program has provided to the community and has been working to identify additional funding opportunities through grants and community partnerships to sustain the CV Community Shuttle for future years. This includes application in November 2024 to the U.S. Environmental Protection Agency (EPA) Community Change Grant in partnership with CALSTART . If successful, the grant would provide a portion of operating income until approximately June 2028, funding for EV charging infrastructure, and planning funds to look at long -term regional models of sustainability. In addition, staff over the past six months ha ve actively enhanced marketing efforts and partnership development.
CMO Supplemental Funds (Year 4)
In Fall 2024, CMO announced the availability of up to $300,000 in additional supplemental funds to further enhance services within eligible census tracts (including AB1550 and SB35 designated). Based on the City’s current operations, the application for enha nced services and funds was made for year 4 operations and include an expansion of current services to the southwest portion of Chula Vista extending service south along Third Avenue to Anita Street and west to the bayfront, as outlined in blue in Figure 1.
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Figure 1 - Proposed Expanded Service Area for Year Four Operations (beginning June 2025)
The expan ded services would begin in June 2025 and will connect all three trolley stops and provide additional connectivity to regional amenities, retail, and services along both Third Avenue and Broadway , including the South Branch Library and major shopping cente rs. In addition, this expansion will serve nine affordable housing complexes (one for seniors) and twelve mobile home parks (six for seniors), providing vital transit support for older adults and lower-income households.
In January 2025 the City was notif ied of the award of funds and was provided with a Third Amendment to the CMO Agreement as presented in Attachment 1.
CCDC Grant Funds (Year 4)
Since the inception of the CV Community Shuttle, CCDC has been dedicated to supporting the CV Community Shuttle project which aligns with organizational goals of servicing the older adult community in Chula Vista.
On February 2, 2025, the CCDC Board approved granting the City additional funds of $100,000 toward Year 4 operations. This item appropriates the f unds and authorizes the City Manager or designee to enter into a
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Second Amendment, as presented in Attachment 2, to their original agreement accepting funds and making minor clerical updates to the original agreement.
DECISION-MAKER CONFLICT
Staff has reviewed the decision contemplated by this action and has determined that it is not site-specific and consequently, the real property holdings of the City Council members do not create a disqualifying real property-related financial conflict of interest under the Political Reform Act (Cal. Gov't Code § 87100, et seq.).
Staff is not independently aware and has not been informed by any City Council member, of any other fact that may constitute a basis for a decision-maker conflict of interest in this matter.
CURRENT-YEAR FISCAL IMPACT
The first three years of the CV Community Shuttle Pilot program are funded through CMO and CCDC grants.
We are currently in year three of the grant program (which ends June 12, 2025), thus there is no new current- year General Fund impact as a result of this action.
ONGOING FISCAL IMPACT
The first three years of the CV Community Shuttle Pilot program are funded through CMO and CCDC grants.
The CV Community Shuttle Pilot program must be operational through June 2026 because CMO fun ded programs must be operational for at least 4 years. Any revenue generated via fares/advertising through the first three years will be applied to fund operations in year four.
Based on the current operating model, it costs approximately $828,000 annually to run the shuttle service.
Tonight’s action will provide $400,000, approximately half of the year 4 funds needed. Staff is currently negotiating a contract for Year 4 operations and will return at a later date for approval of that item along with any additional funding sources towards year 4.
To ensure continuation of the shuttle service, the City will work collaboratively with stakeholders to identify revenue generation opportunities through fares, advertising, and other grant opportunities. The program began charging $2 per trip for riders under the age of 55 in April of 2024 and as of the end of February 2025 has generated $3,316.80 in fares, sixty percent ( 60%) of which will be credited to the City for year 4 operations. In addition, CALSTART has hired a new Funding and Partnership Manager to work with awardees in identifying funding opportunities to maintain their pilot programs , from which generated the EPA grant application.
Staff will continue to work with this resource and continue to pur sue other potential funding opportunities from the State to help with future funding of the shuttle program. The City is providing assistance to the CV Community Shuttle operator for appropriate storage of vehicles and charging facilities.
The $400,000 provided by this action and any associated expenditures will be included in the development of the fiscal year 2025-26 annual budget process.
ATTACHMENTS
1. Third Amendment to the CMO Voucher Pilot Program
2. Second Amendment No. 2024-208 to CCDC CV Community Shuttle Agreement No. 2021-101 P a g e | 6
Staff Contact: Stacey Kurz, Director of Housing & Homeless Services Emily Tran, Management Analyst II