COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: February 18, 2025
SUBJECT: Authorization to Explore the Consolidation of Guadalupe Transit Bus Services
Description:
The City Council will consider authorizing the City Manager to direct staff to explore the potential benefits and challenges of consolidating Guadalupe Transit Services with Santa Maria Regional Transit and report back with recommendations.
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:
The City’s transit staff requests City Council authorize the City Manager to direct staff to prepare a Letter of Intent to the City of Guadalupe to explore the potential consolidation of Guadalupe’s transit bus service with Santa Maria Regional Transit. Once the evaluation is complete, staff will report back to the Council with their findings and a formal recommendation.
BACKGROUND:
Municipalities are typically responsible for developing and managing their local public transit systems. This involves navigating complex funding applications, overseeing contracts, and ensuring strict compliance with federal and state regulations, which are the primary funding source for these services.
Currently, Santa Maria and Guadalupe operate separate transit system s, each with its own administrative burdens. While some coordination exists, these parallel systems create inefficiencies. Given the strong connection between the two communities and the reliance of residents on both transit agencies for daily needs, conso lidation may provide operational improvements.
DISCUSSION:
Recent challenges, such loss of key City and contractor transit staff in Guadalupe and increasing regulatory demands beyond the scope of current work assignments, have made managing the Guadalupe Flyer more difficult. These challenges include:
2 Difficulty meeting reporting requirements and developing an electric bus transition plan.
Challenges in administering grants and meeting deadlines. Difficulty keeping up with growing demand and preparing fo r the upcoming expiration of the current transit operations contract.
A recent State of California T ransit Development Act review and a prior 2017 regional integration study recommends exploring consolidation to improve efficiency, optimize resource allocation, and better serve the region’s needs.
Initial discussions between Santa Maria, Guadalupe, and the Santa Barbara County Association of Governments (SBCAG) have focused on the potential benefits of integrating the Guadalupe Flyer into Santa Maria Regional Transit (SMRT).
Key Advantages of Consolidation:
Streamlined Operations: Centralized management of routes, fares, and technology.
Improved Efficiency: Shared resources (fleet, staff, funding) and optimized resource allocation.
Enhanced Service: Seamless travel experience for riders between the two communities.
Stronger Administrative Capacity: Leverage SMRT's experienced staff, existing contracts, and established processes.
Improved Compliance: Better equipped to meet evolving regulations and fu nding requirements.
Moving Forward:
Exploring consolidation would help determine the benefits and challenges SMRT would assume in administering Guadalupe's transit routes. While Guadalupe could ultimately relinquish direct administrative responsibilities , it would continue supporting the service through reallocated transit funding historically provided to Guadalupe. This would streamline funding management processes and centralize operations, fare structures, and technological advancements. Benefits inclu de improved efficiency through shared resources (fleet, staff, funding), better data collection for service planning, and a more seamless travel experience for riders between the two communities.
If approved, City staff will send a Letter of Intent (Attachment A) to the City of Guadalupe, memorializing the approval of the recommendation and as to initiate the discussions.
Alternative(s)
City Council may elect not to explore the consolidation of Guadalupe Transit Services into SMRT's core services. However, this alternative is not recommended because the two communities are both economically intertwined.
3 Environmental Review
This does not constitute a project. Further, California State Bill 2922 (SB922) exempts transit projects from having to conduct the CEQA analysis until 2030.
Fiscal Considerations
There are no impacts on the City’s General Fund. The Transit Program operates as an Enterprise Fund, sustained solely by its own sources of federal and state funding, as well as locally generated revenues (e.g., fares). SMRT’s consolidation of Guadalupe routes would create no fiscal impacts on the City’s transit program and could create new funding streams to offset any financial obligations should consolidation be recommended.
Impact to the Community
There are no anticipated impacts on Santa Maria or Guadalupe riders from exploratory discussions about consolidating Guadalupe Transit Services with SMRT. Should consolidation ultimately be recommended, a public participation process would be initiated before making a recommendation to the City Council s. SMRT is committed to maintaining service levels, and consolidation could enhance service delivery for Guadalupe residents for accessing schools, job sites, and commercial opportunities in Santa Maria.
Other Agency Review
The potential consolidation of Guadalupe Transit Services into SMRT is supported by the City of Guadalupe, the County of Santa Barbara, and SBCAG.
ATTACHMENTS
A. Letter of Intent – Explore Service Consolidation