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 pro cess 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.
2 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 fund s 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 3 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 w ith 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 re sidents 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.
4 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