COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: May 6, 2025
SUBJECT: Adoption of a Resolution Approving the Appropriation of Santa Maria Regional Transit’s Senate Bill 125 and Transit and Intercity Rail Capital Program Grant Funds
Description:
The City Council will consider appropriating Transit Division grant funds awarded through California Senate Bill-125 and the Transit & Intercity Rail Capital Program, totaling $17,544,169. The funds will support the procurement of an over -the-road coach, Bus Rapid Transit development, facility improvements, and electric vehicle charging infrastructure.
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 authorizing the appropriation of California Senate Bill 125 and Transit and Intercity Rail Capital Program grant funds and authorizing the Mayor to execute an agreement with the Santa Barbara County Association of Governments for Senate Bill 125 funding, effective upon mutual execution and continuing through June 30, 2028.
BACKGROUND:
California Senate Bill 125 (Chapter 54, Statutes of 2023) (SB-125) directs $4 billion in funding through the Transit and Intercity Rail Capital Program (TIRCP) via a population- based formula, allowing regional transportation planning agencies to fund capital improvements and transit operations.
Additionally, the bill establishes the $1.1 billion Zero -Emission Transit Capital Program, distributed by both populat ion-based and revenue -based formulas. There is also a competitive discretionary funding pool available to transit agencies.
DISCUSSION:
SB-125 and TIRCP were created to fund transformative capital improvements that modernize California’s bus transportation, vanpool services, ferry, and rail transit systems to achieve all of the following policy objectives:
2 1. Reduce emissions of greenhouse gases
2. Expand and improve transit service to increase ridership
3. Integrate the rail service of the state’s various rail operations, including integration with the high‐speed rail system
4. Improve transit safety
In collaboration with the Santa Barbara Council of Associated Governments (SBCAG), Santa Barbara County transit operators convened to identify both local and region wide qualifying projects. The group agreed to leverage the formula -based distribution of SB - 125 funds as a local match towards applying for the discretionary T IRCP funds, in order to complete more substantial projects.
According to a population -based fo rmula and the formula based on transit operator revenues within the jurisdiction, the Santa Barbara County region is estimated to receive around $53 million in SB-125 funds over the next five years. Additionally, Santa Barbara County transit operators wer e successful with an award of $51,129,875 in TIRCP discretionary funds, of which the City of Santa Maria is scheduled to receive a total of $17,544,169 in combination of formula SB -125 and competitive discretionary TRCIP funds, which were awarded in the fourth quarter of 2024 and to be partly dispersed by the fourth quarter of 2025.
Santa Maria Regional Transit Projects
Amongst the groups, proposed local/regional projects were broader scale deployment of zero emission vehicles, construction of associated c harging infrastructure, the development of transformative transit models (e.g. Bus Rapid Transit ), as well as the purchase and/or construction of administrative facilities necessary to support rapidly expanding transit programs throughout the County.
Based on the adopted criteria recorded in Santa Maria Regional Transit (SMRT)’s 2021 Short Range Transit Plan, the City’s subsequent 2022 Zero Emission Transition Plan, regional consultation and internal forecasting, funds were awarded to the City of Santa Maria’s SMRT for the following projects noted in Table 1.
Table 1:
Santa Maria Regional Transit Projects
SMRT Project
SB-125
Formula
TIRCP
Competitive
Project
Total
Electric Over the Road Bus and Charger $1,472,428 $1,472,428 Facility Improvement $2,800,000 $9,500,000 $12,300,000 Opportunity Charging $1,071,741 $1,071,741
Bus Rapid Transit $1,200,000 $1,500,000 $2,700,000
Grant Total $17,544,169
3 Over the Road Coaches (Zero Emission)
Designed for long -distance intercity travel, these vehicles offer enhanced comfort, amenities (Wi -Fi, reclining seats, restrooms), and smoother ride quality compared to standard fixed -route buses. They are ideal for expanding regional connections while aligning with zero-emission goals.
Bus Rapid Transit (Transformative Project)
Bus Rapid Transit (BRT) is a high-quality bus-based public transport system designed to improve speed and reliability compared to traditional bus services. Key features include dedicated bus lanes, off-board fare collection to speed up boarding, frequent service, and comfortable stations with amenities like real-time information displays. BRT systems aim to offer a travel experience that rivals light rail, but at a significantly lower cost.
Furthermore, BRT can stimulate econo mic development along corridors by increasing property values and attracting businesses. (See Attachment B – BRT Feasibility Study.)
Administrative Transit Facility and EV Charging Infrastructure While the City’s SMRT has already achieved a lot to meet Air Resource Board mandates for the 100% transition to zero emission vehicles, infrastructure, particularly to support longer distance regional transit service, remains a need. The TIRCP discretionary grant award group concurred with this assessment and awarded $9.5 Million to SMRT towards addressing this need. Two key projects, with alternatives, are brought forward for City Council’s consideration.
A. Buellton Transit Hub
SMRT, in coordination with SBCAG, Lompoc, Solvang, and Buellton, proposes a new reg ional transit hub in Buellton. This facility will support multiple transit agencies and provide crucial electric charging for long -distance travel.
Approximately $4.5 million is earmarked. (See Attachment C – Map of Strategic Properties & Design Concepts.)
B. Transit-Oriented Development (TOD) & Admin Center
Funds will also support the acquisition of strategic properties near existing transit infrastructure for a new SMRT administrative center with TOD features. These may include mixed-use residential and com mercial spaces promoting walkability and transit access. (See Attachment C – Map of Strategic Properties & Design Concepts.)
City staff requests Council authorization to begin exploratory negotiations with property owners. Any proposed acquisitions will be brought back for Council consideration.
SBCAG SB-125 Agreement
A required formality for receiving the SB-125 funds is signing an agreement with SBCAG, our Regional Transportation Planning Agency (RTPA). Once the agreement is signed by both parties, the City can begin reimbursements for SB -125 funded projects. (See Attachment D.)
4 Alternative(s)
City Council may elect not to accept the allocation of TIRCP funds; however, this course is not recommended as it would forgo a significant one -time windfall for the transit program to supplement its ongoing and increasing capital expenditure costs.
Environmental Review
California State Bill 2922 (SB -922) exempts transit projects from having to conduct the CEQA analysis until 2030.
Fiscal Considerations
There is no impact on the City’s General Fund. The Transit Division is an Enterprise Fund sustained solely on its own sources of Federal, State funding, and locally generated revenues (i.e., fares). Appropriation of $11 million would be made available to the City’s Transit Program to be used for its defined eligible uses previously mentioned.
Impact to the Community
There are no anticipated impacts to the community nor the Transit Division riders by appropriating these funds to the Transit Division to sup plement its ongoing operating costs. However, the residents of Santa Maria and of northern Santa Barbara County are anticipated to be the biggest beneficiaries of these projects as enhanced carless travel options are made more robust throughout the region.
ATTACHMENT(S)
A. Resolution
B. BRT Feasibility Study
C. Map of Strategic Properties
D. SBCAG SB125 Agreement