COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: March 3, 2026
SUBJECT: Adoption of a Resolution to Authorize Procurement of Transit Shelters Via CalACT/MBTA Cooperative Purchasing Agreement with Tolar Manufacturing Company, Inc.
Description:
The City Council will consider adopting a Resolution to procure transit shelters through the CalACT cooperative purchasing agreement with Tolar Manufacturing Company, Inc.
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 authorizing the procurement of transit shelters through the California Association for Coordinated Transportation/Morongo Basin Transit Authority cooperative purchasing agreement with Tolar Manufacturing Company, Inc.; and
2. Authorize the City Manager, or designee, to execute the assignment to purchase agreement
BACKGROUND:
Santa Maria Regional Transit (SMRT) currently requires the expansion of its passenger infrastructure to improve rider comfort and safety. To streamline procurement, SMRT utilizes the California Association for Coordinated Transportation (CalACT)/Morongo Basin Transit Authority (MBTA) Purchasing Cooperative. This consortium allows member agencies to "piggyback" on competitively bid contracts, ensuring compliance with federal and state procurement requirements while leveraging the scale of a statewide organization for better pricing.
The City has an established relationship with Tolar Manufacturing Company, Inc. through this consortium, having previously installed Tolar shelters along major corridors like Broadway.
2 DISCUSSION:
The current contract, No. 21 -01-Tolar, was recently extended via Amendment 3, which exercised the second one -year option period. This extension ensures the contract remains valid through October 4, 2026.
Sole Source Justification and Benefits:
Standardization: SMRT currently utilizes Tolar Sunset series shelters. Procuring from the same manufacturer ensures aesthetic consistency across the City’s transit network and allows maintenance staff to utilize a standardized inventory of replacement parts (glass, seating, and roofing).
Cost Efficiency: Amendment 3 establishes a unit price based on the original 2021 schedule plus an 18.8% Force Majeure adjustment. This pre -negotiated rate is significantly lower than the cost of a standalone solicitation for a small quantity of shelters.
Procurement Speed: Utilizing the CalACT consortium eliminates the 4 –6 month timeline required for a formal Request for Proposals (RFP), allowing SMRT to address immediate infrastructure needs.
Regulatory Compliance: The contract and the manufacturer meet all "Build America, Buy America" requirements, ensuring the City remains eligible for federal grant reimbursements.
Alternative(s)
Alternatively, City Council could choose for the Transit Division to conduct its own independent competitive bidding process, such as an RFP, for the bus shelters. However, this alternative is not recommended as there is 1) no reason to believe that Santa Maria alone would have better purchasing power than a statewide consortium contract and 2) there is no guarantee that the consistency in bus shelter design and function could be achieved with another vendor.
Fiscal Considerations
There are no impacts to the City’s General Fund for this project . The Transit Enterprise Fund’s operational and capital costs are solely sustained by its own sources of transit specific funding, in this case Transit Development Act Funds. The City of Santa Maria’s Procurement Manual allows City departments to leverage 3rd party contracts for procurements. To this, staff proposes to leverage the CalAct/Morongo Basin contract to achieve the best price. There was $300,000 budgeted for these shelters, and funding for this is included in the current fiscal year’s Transit Capital Fund.
3 Impact on the Community
The installation of new and upgraded transit shelters will enhance rider comfort and safety by providing weather protection and improving the overall transit experience.
ATTACHMENT(S)
A. Resolution
B. Agreement
C. Tolar Amendment 3 to Agreement
D. 2021 Pricing Schedule
E. Tolar Bus Shelter Quote