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June 2, 2026
ITEM TITLE
Approve Agreement Amendments and Grant Funds: Approve Agreement Amendments and Authority to Apply for Grants for the Sustained Operations of the Chula Vista Community Shuttle Pilot Program Report Number: 26-0186
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 (CEQA) 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 the following resolutions:
(A) Approving a third amendment to the a greement with Community Congregational Development Corporation (“CCDC”) to accept an additional $1,000,000 in grant funds for up to three (3) additional years of Chula Vista Community Shuttle Pilot program (the “CV Community Shuttle”) operations and appropriating funds for that purpose (4/5 Vote Required);
(B) Approving a fourth amendment to the agreement with Circuit Transit Inc. (“Circuit”) for the Chula Vista Community Shuttle Pilot program to update the service hours, service area, fleet configuration, and cost structure for operations up to June 2029 , and amending the f iscal year 2025 -26 budget by transferring $440,000 in available Chula Vista Housing Authority (“Housing Authority”) funds from the Bridge Shelter (Village at Otay) to CV Community Shuttle for year four (4) of operation (4/5 Vote Required); and (C) Authorizing staff to submit an application for San Diego Association of Government’s (“SANDAG”) Flexible Fleets Pilot Grant Program.
SUMMARY
Since June 13, 2022, CV Community Shuttle has provided valuable on -demand transportation services in western Chula Vista, completing over 108,062 completed shared rides, serving more than 124,317 passengers with an average occupancy of ~1.15 passengers per ride . This item would authorize the City P a g e | 2
Manager to: (1) finalize negotiations and execute the amended agreement with CCDC to accept and appropriate an additional $1,000,000 in grant funding to support up to three (3) additional years of shuttle operations; (2) finalize negotiations and execute the amended agreement with Circuit for operations from June 13, 2026 to November 19, 2026, with options to extend through June 12, 2029; and (3) authorize staff to apply for the SANDAG Flexible Fleets Pilot Grant Program for the maximum amount of $500,000 to enhance the existing CV Community Shuttle.
ENVIRONMENTAL REVIEW
The proposed activity has been reviewed for compliance with CEQA, and it has been determined that the activity is not a “Project” as defined under Section 15378 of the CEQA Guidelines because it will not result in a physical change to the environmen t. 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 CEQA Guidelines. Thus, no further environmental review is required.
BOARD/COMMISSION/COMMITTEE RECOMMENDATION
Not applicable.
DISCUSSION
Background
Chula Vista Community Shuttle Pilot Program Funding
To support City of Chula Vista ’s efforts of reducing greenhouse gas emissions and meeting public transportation needs for all ages, the City of Chula Vista ( the “City”) applied for the Clean Mobility Options (“CMO”) grant in October of 2020. In June 2021, the City was awarded $997,833 through the CMO program to launch CV Community Shuttle to provide clean transportation to seniors in northwest Chula Vista, within a targeted service area deemed eligible through CMO using four (4) sedans and one (1) 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 to cover a larger area in western Chula Vista and add an additional sedan to the service. On October 12, 2021, the City Council accepted both grant awards, which fund the first three (3) 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. On March 18, 2025, the City Council accepted additional supplemental grant funding from CMO of $300,000 and $100,000 from CCDC to fund Year 4 of operations and expand current services to the Southwest portion of Chula Vista extending services south along Third Avenue to Anita Street and west to the bayfront.
The total funding required to support four (4) years of operations is $3.34 million, which includes $2.9 million in grant funding received to date and $440,000 in Housing Authority funds to be transferred from the Bridge Shelter (Village at Otay) to CV Community Shuttle through this item. The City has committed and/or anticipates adequate funding to cover the Village at Otay through other funding sources such as the Permanent Local Housing Allocation Program, Prohousing Incentive Program, and Housing Successor Funds P a g e | 3
to ensure continued operations of the facility for the next four (4) years. The total funding by year and by funding source to support four (4) years of CV Community Shuttle operations is summarized in Table 1 below.
Table 1: CV Community Shuttle Funding Years: Pre-Launch Year 0 and Operational Years 1-4 Operational Year Funding Sources Total per Year
0 – Pre-Launch Year CMO $107,998
1 – June 12, 2022, through June 13, 2023 CMO
CCDC
$634,365
$155,232
2 - June 12, 2023, through June 13, 2024 CMO
CCDC
$755,470
$173,963
3 - June 12, 2024, through June 13, 2025 CCDC $670,805
4 - June 12, 2025, through June 13, 2026 CMO
CCDC
City
$100,000
$300,000
$440,000
Non-Operational – Administrative Cost CMO $2,167
Funding to Date $3,340,000
Operations Year 1 through Year 4
City first entered into its operating agreement with Circuit for CV Community Shuttle on October 12, 2021, pursuant to Resolution No. 2021-188. CV Community Shuttle officially launched in June 2022 and currently 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 currently serviced by a total of five (5) sedans and two (2) passenger vans, one (1) of which is a Wheelchair Accessible Vehicle (“WAV”). Riders can request rides within a geo -fenced coverage zone through a mobile ride request app available on iOS and Android, by calling in, or by waving down a vehicle. The initial goal of CV Community Shuttle was to improve mobility options for the senior community, 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 one WAV van for riders requiring ADA assistance, which can be indicated in the ride request app or when requesting by phone.
Upon initial application for funding, Circuit had identified a plan for offsetting operational costs and thereby reducing the long -term grant funds needed through a revenue -sharing model with the City for: 1) fare collection; and 2) advertising revenue. In Year 3 of operations ( beginning August 2024), CV Community Shuttle expanded to include riders under the age of fifty-five (55) at a fare of $2.00 per ride. While the service remains free for riders ages fifty-five ( 55) and up , the revenue-sharing model remains in place with the current operator, whereby a portion of fare and advertising revenues are applied to Year 4 of the program costs. As of March 2026, fare collection has been limited , totaling approximately $10,590.27 , and no advertising revenue has been generated.
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In Year 4 of operations (beginning July 2025 ), CV Community Shuttle’s service area expanded to the southwest region of Chula Vista that connect ed all three (3) trolley stops, including the E Street Transit, H Street Transit, and Palomar Transit centers. This expansion provided additional connectivity to regional amenities, retail, and services along both Third Avenue and Broadway, including the South Branch Library and major shopping centers.
Proposed Year Five Operations
Current Challenges
Several challenges have occurred over the years, with the largest being the ability to sustain operations without City funding and maintaining a high quality of service that has come to be expected by the community which CV Community Shuttle is serving, as detailed below. Funding - Most grant programs will only fund enhanced or expanded transportation programs. As indicated above, Circuit presented a variety of ways that offsetting funds could be generated in order to assist in the operational expenses . However, this has not occurred and only $ 10,590.27 in fares has been collected to date, of which City under the current agreement with Circuit receives sixty percent (60%), or $6,354.16 in funds towards offsetting operations, while Circuit retains the other forty percent (40%) as profit. City was required to operate under the CMO Voucher Agreement for a minimum of four (4) years or was at risk of funding being recaptured. To support the fourth year, City used a combination of CMO, which required an expansion of the service area, and CCDC funds, which required the service remain free to seniors, and for the first time City had to dedicate $440,000 Housing Authority funds.
Quality of Service - The average passenger wait -time has increased over the course of CV Community Shuttle , with t he July expansion of the service area being the clearest operational inflection point . Prior to the July 2025 expansion, the average wait-time had been increasing gradually due to steadily rising demand, moving from approximately eight (8) minutes at launch to a relatively stable ten (10) to eleven ( 11) minute range through mid -2025. Following the expansion, however, the existing fleet began serving a substantially larger geographic area, which accelerated wait-time growth and reduced overa ll service responsiveness from eleven (11) minutes to an average of sixteen (16) minutes.
It should also be noted that administration of CV Community Shuttle is being provided by staff in the Housing and Homeless Services Department and reimbursed through the City’s General Fund as an in-kind match to the grant funds. Administration of the program includes grant management, client inquiries, and financial management. Since July 2025, the primary staff er has worked over 370 hours on the project, equa ting to approximately $46,000 or forty two percent (42%) of their time.
CCDC Grant Funds (Year 5, Year 6, and Year 7)
Since the inception of CV Community Shuttle , CCDC has been a key partner in supporting the program, consistent with its mission to serve older adults in Chula Vista. On April 23, 2026, the CCDC Board approved an additional $1,000,000 in grant funding to support Year 5, Year 6, and Year 7 of shuttle operations. This item appropriates the funds and authorizes the City Manager to finalize negotiations and execute a third amendment to the agreement with CCDC, as presented in Attachment 1, to accept the funding and incorporate minor administrative updates to the agreement.
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Operational Updates
To address service concerns and with reduced overall funding to continue operations, the proposed Year 5 (2026/2027) operational plan updates the service hours, service area, fleet configuration, and cost structure to support long -term sustainability of CV Community Shuttle . Under the proposed plan, CV Community Shuttle will operate between the hours of 8 a.m. and 5 p.m . on Monday through Friday as an on -demand service using a fleet of four (4) dedicated all-electric sedans and one (1) WAV van.
The proposed service area modifications are based on cumulative ridership data, operational performance trends, including wait times and fleet utilization, service demand patterns, and strategic planning efforts to improve overall service reliability, operational efficiency, and long-term fiscal sustainability. The proposed adjustments to the current service area boundaries should improve operational efficiency and service reliability. The modifications include refining portions of the southwest service zone by redefining the southern boundary from Anita Street to Palomar Street and reducing western and eastern coverage areas that have experienced lower ridership demand and present operational inefficiencies. The proposal maintains connectivity to key transit corridors, community destinations, identified ridership hotspots, major commercial centers, and transit centers, as outlined in Figure 1.
Figure 1 - Updated Service Area for Year Five Operations (beginning June 13, 2026)
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In addition, in the first few months of the updated agreement, City and Circuit w ill explore the implementation of an up to $2.00 senior fare for riders ages fifty-five (55) and up and an increase for those under the age of fifty-five (55), as part of the broader strategy to support the long-term sustainability of the program while maintaining affordable and accessible transportation options for the older adult s in Chula Vista. The proposed nominal fare is intended to support operational sustainability while also helping moderate marginal ridership demand. Operational experience with similar micro transit programs has shown that modest fares can reduce cancellations and no -shows by encouraging more intentional trip booking behavior, improve routing efficiency by decreasing unproductive vehicle time, and discourage discretionary or low-value trips that can disproportionately consume limited system capacity. The proposed senior fare is expected to preserve affordability and accessibility for older adults while improving operational sustainability and the overall rider experience . Should all parties agree to the fare implementation, the operator will lead community outreach and rider education prior to implementation to ensure the riders and stakeholders are informed of the program changes, with the support and coordination provided by staff. Attachment 2 provides the fourth amendment with Circuit.
New Grant Opportunity
While CV Community Shuttle was initially launched as a pilot program, the City recognizes the value it has provided and continues to pursue long-term funding strategies through grants and community partnerships to support program sustainability. This includes a n anticipated June 2026 application to the Flexible Fleets Pilot Grant Pr ogram administered by SANDAG . If awarded, the grant would provide up to $500,000 in operating support to enhance CV Community Shuttle, with a performance period through December 2029.
Staff anticipate a response in late 2026. In parallel, staff have expanded marketing efforts and strengthened partnerships over the past six (6) months to support ridership growth and long -term viability. Staff are seeking City Council approval to apply for the Flexible Fleets Pilot Grant Program in this item.
Conclusion
While CV Community Shuttle began as a pilot program, the City recognizes the valuable service it is providing to the senior community to fill a gap in transportation services and provide a reliable mobility option for western Chula Vista. While the proposed action would alter the operating times to Monday through Friday from 8 a.m. to 5 p.m. and adjust the service area as depicted in Figure 1, staff will continue to pursue opportunities to enhance CV Community Shuttle.
DECISION-MAKER CONFLICT
Staff have reviewed the dec shision contemplated by this action and ha ve 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 interes t under the Political Reform Act (Cal. Gov't Code § 87100, et seq.). Staff are not independently aware and ha ve 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
As discussed earlier in the staff report, the total funding required to support four (4) years of operations is $3.34 million, which includes $2.9 million in grant funding received to date and $440,000 in Housing Authority funds.
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Staff recommend transferring $440,000 in available Housing Authority funds from the Bridge Shelter (Village at Otay) to CV Community Shuttle. The City has committed and/or anticipates adequate funding to cover the Village at Otay through other fun ding sources such as the Permanent Local Housing Allocation Program, Prohousing Incentive Program, and Housing Successor Funds to ensure continued operations of the facility for the next four (4) years.
ONGOING FISCAL IMPACT
The proposed third amendment with CCDC will accept an additional $1,000,000 for three (3) additional years of shuttle operations. The agreement with CCDC is contingent upon the City providing a local 1-for-1 match per fiscal year over the course of three (3) years, or $1,000,000 in total, in fiscal years 2026-27, 2027-28, and 2028-29.
The City’s fiscal year 2026-27 local match in the amount of $ 350,000 was included in the budget that was adopted on May 19, 2026. Funds for future years have not yet been appropriated and would be subject to City Council approval and availability of funds as part of the annual budget development process. If the City does not contribute the required amount, the grant funds from CCDC will be cancelled.
The proposed fourth amendment to the agreement with Circuit would commit the City to continue to use Circuit for Year 5 operations as the CV Community Shuttle operator through the end of the CMO Voucher period on November 19, 2026. For the remainder of Year 5 operations (November 20, 2026, through June 12, 2027), City will have the option to renew with Circuit to continue shuttle operations with a not-to-exceed amount of $680,000. Continued operations for Year 6 and Year 7 with Circuit beyond this date are subject to City Council appropriation of funds as part of the annual budget development process.
Staff will continue to pursue other potential funding opportunities from the State and other agencies to help with future funding of CV Community S huttle; however, should funding not be attained or other financial sustainability be determined, staff will determine the viability of continuing CV Community Shuttle.
ATTACHMENTS
1. CCDC Third Amendment No. 2026-125 to Agreement No. 2021-1012
2. Circuit Fourth Amendment No. 2026-126 to Agreement No. 2021-96 Staff Contact: Stacey Kurz, Director of Housing & Homeless Services Chris Stanley, Senior Planner
Emily Tran, Management Analyst II