COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: January 20, 2026
SUBJECT: Adoption of a Resolution Approving a Memorandum of Understanding with the Santa Barbara County Association of Governments for the State Route 135 Comprehensive Corridor Study
Description:
The City Council will consider adopting a Resolution approving a Memorandum of Understanding with the Santa Barbara County Association of Governments to complete the State Route 135 Comprehensive Corridor Study.
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:
1. Adopt a Resolution approving a Memorandum of Understanding (MOU) between the City of Santa Maria and the Santa Barbara County Association of Governments to complete the State Route 135 Comprehensive Corridor Study, committing a total City contribution of $150,000; and
2. Authorize the City Manager, or designee, to execute the MOU.
BACKGROUND:
The City of Santa Maria, in partnership with Santa Barbara County Association of Governments (SBCAG), secured a $160,000 Sustainable Transportation Planning Grant from the California Department of Transportation (Caltrans) for the State Route 135 (SR 135) Comprehensive Corridor Study (Project). The original grant required a $40,000 local match, equally split between the City and SBCAG ($20,000 each).
At the request of the City, the project scope was expanded to extend the study limits north from McCoy Lane to U.S. 101, fully encompassing the critical portion of State Route 135 within the City limits. The estimated cost for this scope expansion is an additional $130,000.
This MOU formalizes the partnership, establishes SBCAG as the Project Managing Agency, and commits the City to its total financial contribution of $150,000 (comprising the $20,000 match a nd the $130,000 scope expansion cost) to ensure the study is completed with the expanded, comprehensive scope.
2 SBCAG, acting as the lead agency, was awarded a Sustainable Transportation Planning Grant Caltrans. This grant funding is specifically designate d for the Project. The original project scope was designed to cover SR 135 from Clark Avenue in unincorporated Santa Barbara County north to McCoy Lane within the City.
DISCUSSION:
The grant program requires a local match for the awarded funds. The initi al total project budget was structured as follows:
Funding Source Amount Notes
Caltrans Grant $160,000 Awarded to SBCAG in partnership with the CITY
SBCAG Local Match $20,000
Santa Maria Local Match $20,000 Included in the total CITY commitment.
Original Project Total $200,000
Scope Expansion and Revised Budget
To ensure the study provides maximum benefit to the C ity by analyzing the full length of SR 135 within its jurisdiction, the C ity requested the study area be extended north from McCoy Lane to U.S. 101. This is referred to in the MOU as the “scope of work expansion.”
SBCAG has determined the cost associated with this necessary expansion is $130,000.
The MOU confirms the C ity will be responsible for this entire expansion cost in addition to its original $20,000 match.
The revised total project budget is $330,000:
Funding Component Amount
Original Grant Funding $160,000
Original Local Match (SBCAG) $ 20,000
Original Local Match (City of Santa Maria) $ 20,000
Scope Expansion (City of Santa Maria) $130,000
Revised Total Project Budget $330,000
MOU Key Provisions
The MOU establishes the framework for collaboration and funding between the C ity and SBCAG:
3 1. Purpose: The Project will perform a comprehensive multi -modal corridor study of SR 135 between Clark Avenue and U.S. 101. This includes existing conditions analysis, a public engagement process, and the development of multi -modal improvement concepts for the corridor and para llel facilities. The final output will be a comprehensive study document detailing recommended capital and policy improvements.
2. Term: The MOU term begins upon execution and concludes no later than June 30, 2028.
3. Roles and Responsibilities:
SBCAG (Project M anaging Agency): SBCAG will act as the lead project manager, implement the work, and may retain necessary contractors or subcontractors.
City of Santa Maria (Stakeholder/Advisor): The City will act as a key project stakeholder and advisor, monitoring perfo rmance and participating in the Project Development Team (PDT).
Project Development Team (PDT): A PDT, including representatives from SBCAG, City staff, consultants, and Caltrans, will meet to review status, deliverables, and schedules.
4. Funding and Invoicing: The City agrees to pay SBCAG a total of $150,000 for the completion of the expanded scope of work, which covers the $20,000 grant match and the $130,000 expansion cost. SBCAG will submit invoices to the C ity, and payment is due within 30 days of receipt.
Project Significance
The SR 135 corridor is critical for regional and local mobility, connecting the Orcutt area to Santa Maria's commercial and residential core, and providing a major north -south link to U.S. 101. Expanding the scope to include the en tire City limits section ensures the resulting planning document will be complete and immediately actionable for future capital improvement funding applications.
Alternative(s)
1. Approve and Authorize Execution of the MOU (Recommended): This action allows the critical study to proceed with the comprehensive, City-requested scope, ensuring a complete planning document is produced.
2. Reject the MOU: This action would prevent the study from proceeding with the expanded scope. The study would revert to the origina l limits (ending at McCoy Lane), severely diminishing its utility for the C ity's long-term planning efforts and potentially requiring the forfeiture of the $20,000 local match commitment.
3. Amend the MOU: The financial terms and scope have been negotiated an d agreed upon by both parties. Amending the MOU would likely delay the project and potentially jeopardize the Caltrans grant funding.
4 Fiscal Considerations
The total financial commitment required from the C ity under this MOU is $150,000. This amount is budgeted within the BRT Implementation Project for the current and subsequent fiscal years. This commitment results in a total project investment of $330,000, leveraging the C ity’s $150,000 contribution to secure $180,000 in grant and partner agency funding.
Impact on the Community
Completion of the State Route 135 Comprehensive Corridor Study will support long-term transportation planning for a key north –south corridor within the C ity. The study will identify mu lti-modal improvement opportunities to enhance safety, mobility, and connectivity for residents and commuters. Expanding the study to include the full length of SR 135 within the City ensures recommendations reflect local needs and strengthens the City’s ability to compete for future transportation funding. No immediate construction or service impacts will result from this action.
ATTACHMENT(S)
A. Resolution
B. SBCAG State Route 135 Comprehensive Study Scope of Work