COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: September 16, 2025
SUBJECT: Adoption of a Resolution Authorizing the Execution of a Master Agreement and Program Supplements for State -Funded Transit Projects with the California Department of Transportation (Caltrans) For Transit and Intercity Rail Capital Program (TIRCP) Funds
Description:
The City Council will consider executing a Master Agreement with Caltrans for the allocation of the Transit Program’s previous award of CA SB -125 and Transit & Intercity Rail Capital Program (TIRCP) grant funds in the amount of $17,544,169. These funds will be used for an Over-the-Road Coach, Bus Rapid Transit, an Administrative Facility, and Electric Vehicle infrastructure projects.
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. Further, California State Bill 2922 (SB922) exempts transit projects from having to conduct the CEQA analysis until 2030.
RECOMMENDATION:
1. Adopt a Resolution authorizing the execution of a Master Agreement, and Program Supplements for State-Funded Transit Projects with the California Department of Transportation (Caltrans); and
2. Authorize City Manager or designee to execute agreement.
BACKGROUND:
Transit and Intercity Rail Capital Program (TIRCP) is a statewide program that provides funding to transit agencies for capital improvements that reduce greenhouse gas emissions, expand and improve transit service, and integrate the rail and transit networks.
As noted at the May 6, 2025, Santa Maria City Council meeting, Santa Maria was awarded a total of $17,544,169 through a combination of formula-based California Senate Bill 125 (SB-125) funds and competitive discretionary TIRCP funds.
The statutes related to state -funded transit projects require a local or regional implementing agency, such as the City of Santa Maria, to execute a Master Agreement with Caltrans before it can be reimbursed for project expenditures. This Master 2 Agreement serves as the overarching contractual framework governing the administration and reimbursement of state transit funds.
DISCUSSION:
Caltrans utilizes Master Agreements for State -Funded Transit Projects, along with associated Program Supplements, to administer and reimburse state transit funds to local agencies. The Master Agreement outlines the general terms and conditions applicable to all state -funded transit projects the City may undertake with Caltrans. Each specific project awarded through programs like TIRCP will then have a corresponding Program Supplement that details the specific scope, budget, schedule, and other project -specific requirements.
Execution of this Master Agreement is a prerequisite for the City to access and receive TIRCP funds awarded. Without an executed Master Agreement, Caltrans cannot disburse funds, regardless of the City's successful grant application. The proposed Resolution delegates authority to the City Manager, or designee, to execute this Master Agreement, all Award Agreements, and all Program Supplements, and any amendments thereto. This delegation streamlines the administrative process, allowing the City to promptly enter into agreements for awarded funds, thereby avoiding delays in project implementation and reimbursement.
By adopting the recommended Resolution, the City Council affirms the City's commitment to comply with all conditions and requirements set forth in these agreements and applicable statutes, regulations, and guidelines for all state-funded transit projects.
Santa Maria Regional Transit Projects
As presented to City Council on May 6, 2025, TIRCP funds were awarded to Santa Maria Regional Transit (SMRT) for broader scale deployment of zero emission vehicles, construction of associated charging infrastructure, the development of transformative transit models (e.g. Bus Rapid Tr ansit), and the purchase and/or construction of administrative facilities necessary to support rapidly expanding transit programs throughout the County. SMRT is ready to move forward with these projects.
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 Build/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 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 opportunity for the transit program to supplement its ongoing and increasing capital expenditures.
Fiscal Considerations
There is no direct fiscal impact associated with the execution of the Master Agreement itself, as it is an administrative document. However, execution of this agreement is essential for the City to receive and expend awarded TIRCP funds. The specific fiscal impact related to future TIRCP projects will be detailed in individual staff reports accompanying each Program Supplement or Award Agreement for specifi c projects. All expenditures will be within the scope of awarded grant funds and approved project budgets.
Impact on the Community
There are no anticipated impacts to the community as this is an administrative item.
ATTACHMENT(S)
A. Resolution
B. Agreement