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 Submission of Santa Maria Regional Transit’s Fiscal Year 24/25 Low Carbon Transit Operations Grant For $537,586
Description:
The City Council will consider authorizing the Transit Program’s recommended F iscal Year 2024/25 Low Carbon Transit Operations Program grant application for the amount of $537,586 to fund new transit service to the City of Guadalupe.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefor e, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
Adopt a Resolution authorizing the Public Works Director, or designee, to submit the City of Santa Maria’s Low Carbon Transportation Operations Program grant with the Santa Barbara County Association of Governments for Fiscal Year 2024/25 for two new services to Guadalupe and execute the Certifications and Assurances and authorized agent forms for Low Carbon Transportation Operations Program.
BACKGROUND:
The Low Carbon Transit Operations Program (LCTOP) was created by the State of California to provide operating and capital assistance for transit agencies to reduce greenhouse gas emissions and improve mobility. Approved LCTOP projects may include support for new or expanded bus or rail services, expanded intermodal transit facilities, and equipment acquisition, fueling, maintenance, and other operating costs, as long as the project supports reducing greenhouse gas emissions.
For service areas that include disadvantaged communities (DACs), at least 50 percent of total funds received must be expended on projects that benefit DACs.
DISCUSSION:
In March 2025, Caltrans released the final LCTOP guidelines for the FY 2024/25 funding cycle. The Stat e Controller’s Office has allocated $1,166,938 in discretionary funds to 2 Santa Barbara County transit operators based on population, and an additional $537,586 allocated directly based on farebox recovery.
The Santa Barbara County Association of Governme nts (SBCAG) administers the population-based LCTOP funds (designated 99313), using a mutually agreed-upon 43%/ 12%/ 45% split: 43% for South County transit operators, 12% for regional transit/rail projects, and 45% for North County transit operators after DACs of Goleta and Guadalupe receive priority project funding.
Following an informal call for projects, the North County transit operators (SMRT, Lompoc, SYVT, Guadalupe Flyer, and SMOOTH) collaboratively divided up the North County designated 99313 funds, with Guadalupe receiving priority as a recognized DAC.
The smaller farebox -based component of LCTOP funds (designated 99314 funds) is allocated directly to each operator, unless voluntarily transferred to support another project.
SMRT Proposed Project: Guadalupe Service
In early 2025, the cities of Guadalupe and Santa Maria agreed to explore consolidating the Guadalupe Flyer with Santa Maria Regional Transit (SMRT). After assessment, consolidation was found to be logistically and operationally feasible . However, the pending consolidation would significantly benefit from supplemental operating funds, such as LCTOP, to support new SMRT service to Guadalupe during the transition. Since Guadalupe is the only recognized DAC in northern Santa Barbara County, using LCTOP funds for this service also fulfills priority requirement.
Following a careful review of LCTOP guidelines for qualifying projects, as well as the Transit Division’s fiscally constrained operating budget, staff recommends using FY 24 - 25 LCTOP funds to support two new routes to Guadalupe. This project meets the qualifying criteria for “support of new or expanded bus routes reducing greenhouse gas emissions” and reduces the Transit Program’s reliance on other operating funds.
In total, the City of Santa Maria will receive $537,586 in combined 99313 and 99314 LCTOP funding.
The Resolution authorizes the Public Works Director (or designee) to submit the grant application for the aforementioned project, receive, and manage these funds once they are available. It also allows for administrative adjustments to the grant i f requested by SBCAG or the State of California.
Alternative(s)
An alternative is not to approve the proposed Santa Maria Regional Transit FY 24 /25 LCTOP grant application project. This is not a recommended alternative as this action would mean that the C ity would forgo these (tentative to council action) awarded funds and cause the transit program to rely on other funding sources to complete the proposed project.
3 A second alternative is to modify the project to one that also aligns with LCTOP qualifying projects. However, this alternative is not recommended as the current project recommendation is based on the Transit Division’s fiscally constrained operating budget.
Environmental Review
California State Bill 2922 (SB922) exempts transit projects from having to conduct the CEQA analysis until 2030.
Fiscal Considerations
There are no impacts to the City’s General Fund. The Transit Enterprise Fund’s operational and capital costs are sustained entirely by transit -specific funding, such as LCTOP. The use of LCTOP funds will also help Transit from relying on other transit funds (e.g. TDA or FTA 5307) to support the new Guadalupe service.
Impact to the Community
There is no negative impact on the community for applying for or receiving LCTOP funds.
This award will reduce reliance on inconsistent funding sources and help implement a service that improves reliability and connectivity between Guadalupe and Santa Maria for transit-dependent populations.
ATTACHMENT(S)
A. Resolution
B. SMRT’s FY 24-25 LCTOP Grant Application Packet