COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: March 3, 2026
SUBJECT: Adoption of a Resolution Authorizing a Sole Source Agreement with Genfare, LLC for Genfare Link Subscription
Description:
The City Council will consider adopting a Resolution authorizing the execution of a sole source agreement with Genfare, LLC for the implementation, activation, and ongoing support of Genfare Link open payment “tap -to-pay” capabilities, including the procurement of additional farebox equipment, to modernize the Santa Maria Regional Transit fare collection system.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality A ct State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
1. Adopt a Resolution authorizing a sole source agreement with Genfare, LLC for the implementation, activation, and ongoing support of the Genfare Link "tap -to-pay" capabilities for the Santa Maria Regional Transit electric fleet; and
2. Authorize the City Manager or designee to execute agreement and any necessary amendments.
BACKGROUND:
The City of Santa Maria is currently modernizing its transit fleet, transitioning from legacy cash and magnetic card -based systems to a state -of-the-art digital fare management platform. A significant portion of the fleet is already equipped with Genfare FastFare fareboxes, which are ha rdware-capable of supporting contactless "tap -to-pay" transactions.
DISCUSSION:
Eliminating Barriers to Transit
The primary goal of this initiative is to reduce barriers to riding transit in Santa Maria.
Currently, many riders must secure a physical bus pass at a specific location before they can board. By activating Genfare Link’s Open Payments module, riders can s imply "tap" their contactless credit or debit cards or mobile wallets (such as Apple Pay or Google Pay) directly on the FastFare farebox. This eliminates the need for pre-purchased media, 2 making transit more accessible to spontaneous riders, tourists, and residents who may not have easy access to pass-vending locations.
Alignment with State Initiatives and Regional Cooperation This project directly addresses the State of California’s Integrated Travel Project and Innovative Clean Transit initiatives, which aim to make tap -to-pay universal across the state. Santa Maria Regional Transit is working in alignment with regional partners, including the San Luis Obispo Regional Transit Authority and the Santa Barbara Metropolitan Transit District, to ensure a seaml ess payment experience for travelers throughout the Central Coast. Furthermore, the Santa Barbara County Association of Governments (SBCAG) has secured a grant specifically to make tap -to-pay capabilities universal throughout Santa Barbara County and will assist in funding this technology for Santa Maria.
Sole Source Justification
Genfare, LLC is the proprietary manufacturer of the City’s existing FastFare fareboxes and the developer of the Genfare Link back -office system. Because the "tap -to-pay" functionality is integrated into the existing proprietary hardware and software architecture, Genfare is the only entity capable of activating, licensing, and supporting these specific modules. Transitioning to a different vendor would require the costly replaceme nt of all existing onboard hardware and back-office infrastructure.
Alternative(s)
1. Do not approve the agreement.
This alternative would maintain the current fare payment system and delay the implementation of contactless payment options. Riders would continue to rely on cash and physical fare media, which may limit accessibility and convenience and could result in reduced ridership and customer satisfaction.
2. Seek a competitive procurement for a new fare collection system.
This option would require the removal and replacement of existing farebox hardware and back -office systems, resulting in significantly higher costs , longer implementation timelines, and potential service disruptions. This alternative would also forfeit the benefits of compatibility with regional partners and current state grant funding.
Fiscal Impact
Transit is an Enterprise Fund with its own funding sources separate and distinct from the City’s General Fund and can only be used to support transit-related projects. The Transit Division has a budget line item for Intelligent Transportation Systems Technology in the amount of $1,178,771 to complete this project. Further, some of the costs will be able to be charged to SBCAG’s 2025 Transit and Intercity Rail Capital Program (TIRCP) Grant which was awarded specifically to support the launch of tap-to-pay capabilities
The proposed agreement includes a on e-time implementation fee and annual subscription and support fees:
3 Hardware Procurement: $223,024.42 for nine additional FastFare units, including J1708 interface software licenses and installation
Implementation Fee (Tier 2): $147,150.
Annual Subscription (Years 1–3): Approximately $29,430 to $31,222 annually. Software Support (Gold-Level): Included to ensure 24/7 technical assistance and system reliability.
Funding for this project will be partially offset by the SBCAG TIRCP grant intended for universal tap-to-pay implementation across Santa Barbara County.
Impact on the Community
Activating these capabilities will modernize Santa Maria’s transit system, align with state- wide mandates, and significantly improve the rider experience by removing the friction associated with physical fare media.
ATTACHMENT(S)
A. Resolution
B. Agreement
C. Hardware Procurement
D. Fees
E. Genfare Scope of Work