Agenda Item6
1 DATE: May 5, 2025
TO: Honorable Mayor and Members of the City Council through City Manager FROM: Jared Hall - Transit Manager, Public Works Department Camille Sullivan - Senior Management Analyst, Public Works Department Jeff Stutsman, TE, PE - Deputy Director of Operations, Public Works Department
SUBJECT: Resolution Authorizing the City Manager to Execute Cooperative Funding Agreement No. 51301E1 between the Sonoma County Transportation Authority and the City of Petaluma for the Increase Bus Service, Affordability, and First/Last Mile Connections Program as Part of the Go Sonoma Expenditure Plan
RECOMMENDATION
It is recommended that the City Council adopt a Resolution authorizing the City Manager to execute Cooperative Funding Agreement No. 51301E1 between the Sonoma County Transportation Authority and the City of Petaluma for the Increase Bus Service, Affordability, and First/Last Mile Connections Program, also known as Go Sonoma Transit, as part of the Go Sonoma Expenditure Plan.
BACKGROUND
On November 3, 2020, Sonoma County voters approved the Go Sonoma Act (Measure DD), a 20- year extension of Sonoma County’s ¼-cent sales tax dedicated to transportation improvements (Measure M), which was set to expire on March 31, 2025. With the passage of Go Sonoma, voters approved a new Expenditure Plan that took effect April 1, 2025. The Go Sonoma Act Expenditure Plan includes four programs in two categories:
Category 1: Fix Roads, Fill Potholes, Improve Safety and Usability for All (65 percent of funds)
1.1: Go Sonoma Roads (GSR): Smooth and Maintained Roads (38 percent)
1.2: Move Traffic and Improve Safety (MTIS) (27 percent) Category 2: Improve Alternatives to Cars, Fight Climate Change (35 percent)
2.1: Go Sonoma Transit (GST): Increase Bus Service, Affordability, and First/Last Mile Connections (23 percent)
2 2.2: Build Bikeways and Pathways (BBP) (12 percent)
Out of the four funding programs, GSR and GST are formula-based apportionments and are reimbursed through quarterly reporting and invoicing. The other two funding programs, MTIS and BBP are competitive funding programs. The Go Sonoma Strategic Implementation Plan (SIP) allocates GST funding as 3% for First/Last Mile Commuter Program to be administered by the Sonoma County Transportation Authority (SCTA), 18% for transit operations, and 2% for Transit Fare Free Program. Examples of current Fare Free programs in the county include youth pilot program, college students, and veterans. The Cooperative Funding Agreement No. 51301E1 falls under the GST 2% Transit Fare Free Program.
Effective April 1, 2025, while the County Treasury retains the revenues as they are generated, Sonoma County Transportation Authority (SCTA) will be responsible for managing cooperative agreements for the designated funding programs, verifying quarterly and annual reports, and processing invoice requests.
DISCUSSION
SCTA adopted the 2023 Strategic Implementation Plan (SIP), which outlines the policies for the Go Sonoma program and the use of funds provided under the 2020 Go Sonoma Act Expenditure Plan and Ordinance, approved by Sonoma County voters on November 3, 2020 (hereinafter referred to as “Go Sonoma”).
Under GST, Petaluma Transit is eligible to seek reimbursement for Fare Free programs. This can take the form of specifically targeted transit fare free programs for groups such as youth or seniors, or in the form of a city/system wide fare free program. The program shall tally ridership for all relevant trips and seek reimbursement from SCTA to provide the City of Petaluma with reimbursement for fare revenue that the City would otherwise receive when charging fares for the trip.
On July 1, 2024, Petaluma Transit introduced a one-year Fare Free pilot program for all riders.
The GST 2% Fare Free Program would assist in providing funding for the program.
The City of Petaluma is estimated to receive $73,375 in FY26 funding provided through this source (with annual adjustments to the amount based upon fluctuations to future sales tax revenues received through 2046. The funding helps to partially cover the cost of the Petaluma Fare Free system with the remainder ($180,000 in FY26) coming from City General Fund. Both programs combined help to fund the cost of the program (est. $225,000 in FY26). The $73,375 helps to backfill for funding from a Sonoma County Climate Resiliency Program that helped to fund the fare free program up through FY25 but has now been fully expended. . This funding helps to ensure that Petaluma Transit does not see a revenue loss related to fare free operations and have to offset this fare revenue from operating funds. The funding also helps to fulfill the 20% local/farebox recovery ratio required for recipient transit agencies of Transportation Development Act (TDA) funding.
Pursuant to the Strategic Implementation Plan and Go Sonoma, SCTA requires the City of Petaluma to enter into a Cooperative Funding Agreement. This agreement establishes a 3 collaborative framework between the two parties to work cooperatively in providing specific transit services consisting generally of fare free transit ridership. By entering into this Cooperative Funding Agreement, SCTA will be able to make quarterly reimbursements to the City of Petaluma for the identified programs as the Go Sonoma Expenditure Plan went into effect on April 1, 2025.
Once the funds are generated, SCTA will notify agencies when reimbursement requests can be submitted.
The Cooperative Funding Agreement No. 51301E1 between the Sonoma County Transportation Authority (SCTA) and Petaluma Transit establishes a framework for implementing and supporting fare-free transit services in Petaluma. Under this agreement, Petaluma Transit will provide fare- free rides to the public—either system-wide or through targeted programs such as for youth, seniors, or veterans—and receive quarterly reimbursements from SCTA for actual costs incurred.
These reimbursements are funded by up to 2% of annual sales tax revenue collected under the Go Sonoma Expenditure Plan, as outlined in SCTA’s 2023 Strategic Implementation Plan. The agreement, effective through June 30, 2046, includes requirements for quarterly reporting, annual summaries, compliance with all applicable laws, and ongoing audits.
This initiative supports increased transit utilization while ensuring transparent use of public funds .
PUBLIC OUTREACH
SCTA conducts public outreach efforts related to Go Sonoma. SCTA Board of Directors and Advisory Committee meetings are open to the public, and meeting dates and agendas are available at https://scta.ca.gov/meetings-and-events/.
This item appeared on the City Council’s tentative agenda document on April 21, 2025, which was a publicly noticed meeting.
COUNCIL GOAL ALIGNMENT
The transit operations efforts funded by Go Sonoma will support the City Council’s Safe Mobility and Community Connectivity / Safe Streets Goal, as well as the following Council Workplan Items:
#27: Encourage transit use through expanded service, pass programs, partnerships, and promotion.
#215: Update the Transit vision for the City, including reviewing transit service levels, alternative delivery models, reducing barriers to use, and increasing ridership. 4 CLIMATE ACTION/SUSTAINABILITY EFFORTS
By increasing bus ridership affordability, the project aims to ease congestion, reduce vehicle miles traveled, and encourage more residents to utilize public transportation. These improvements will contribute to a more reliable and efficient transit system, while also supporting the broader goals of reducing emissions and enhancing mobility throughout Petaluma. Transportation is Petaluma's leading source of greenhouse gas emissions, at 66.5 percent.
This action helps to implement “fare free programs” as outlined in the City’s Blueprint for Climate Action adopted on November 4, 2024. Specifically, this action is consistent with the Blueprint Cornerstone Action TS-1 “Petaluma transit service”, which seeks to “Expand and improve Petaluma Transit and shared mobility services to be more accessible, affordable, and timely.” This action is also aligned with Blueprint actions TS-5 “Transit access planning” and TS-6 “Regional coordination and partnership.”
ENVIRONMENTAL REVIEW
The proposed action is exempt from the requirements of the California Environmental Quality Act (“CEQA”) in accordance with CEQA Guidelines Section 15378(b)(2), in that entering into cooperative agreements does not meet CEQA’s definition of a “project,” because the action or and the operations of transit service does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, and because this action constitutes administrative activities of governments that will not result in direct or indirect physical changes in the environment. If this action qualified as a “project” under CEQA, it would be exempt under the Common Sense Exemption (CEQA Guidelines Section 15061(b)(3)), as the funds will be allocated to increasing affordability for riders of the City’s existing public transit system, with the goal of reducing vehicle miles traveled (VMT) by single-occupancy vehicles and CEQA Guidelines Section 15301 (Existing Facilities as it helps fund the City’s existing program.
FINANCIAL IMPACTS
Authorizing the City Manager to execute this Cooperative Funding Agreements with SCTA would enable SCTA to allocate and distribute Go Sonoma transportation sales tax revenues to the City of Petaluma to support transit operations. The funding agreement will provide an annual apportionment allocated for reimbursement for fare free programs. The apportionment is calculated annually based upon the formula set forth by Go Sonoma.
ALTERNATIVES
If the City Council decides not to authorize the City Manager to execute the Cooperative Funding Agreement with SCTA, the City will not receive Go Sonoma transportation sales tax revenues to support the Petaluma Transit Fare Free Program and other transit operations. 5 ATTACHMENTS
1. Resolution
A. Cooperative Funding Agreement No. 51301E1