COUNCIL AGENDA REPORT
TO: Mayor and City Council
FROM: Brett Fulgoni, Director of Public Works
DATE: September 1, 2026
SUBJECT: Adoption of a Resolution Rescinding Resolution No. 2026 -69 and Approving a Cooperative Agreement with the County of Santa Barbara for Bus Stop Amenities
Description:
The City Council will consider adopting a Resolution rescinding Resolution No. 2026 -69 and approving a Cooperative Agreement to supersede the May 5, 2026, Memorandum of Understanding with the County of Santa Barbara for the transfer of funds for bus stop improvements in Orcutt and Tanglewood.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmenta l Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
1. Adopt a Resolution rescinding Resolution No. 2026 -69 and a pproving a Cooperative Agreement with the County of Santa Barbara for the Orcutt and Tanglewood Transit Stop Furniture Improvements Project and authorizing the acceptance of revised funding in the amount of $109,265; and
2. Authorize the City Manager or designee to execute agreement and accept the revised funding amount of $109,265; and
3. Authorize the Amendment to City’s adopted FY 2026-27 Transit Budget to reflect these added funds and expenditure for Bus Stop Improvements; and
4. Approve exercising contract options for the purchase of fourteen benches and five bus shelters from Tolar Manufacturing Company, Inc., utilizing the California Association for Coordinated Transportation / Morongo Basin Transit Authority purchasing consortium Contract No. 21-01, as originally intended.
BACKGROUND:
On May 5, 2026, the City Council approved an MOU to take $100,230 from the County to buy and install bus benches and shelters in Orcutt and Tanglewood.
While the core project work has not changed, the contract itself must be upd ated before it is signed. The County's risk management team expanded the document into a more detailed "Cooperative Agreement."
2 The new agreement updates the project budget from $100,230 to $109,265 to explicitly include a 10% contingency and shipping fe es. It also extends the completion deadlines by a few months to account for this extra review time. Council action is required to officially approve the new agreement type and the increased funding amount.
DISCUSSION:
Original Action
On May 5, 2026, the City Council voted to approve a general MOU with the County. That original action authorized the City to:
Accept $100,230 in Transit Development Act (TDA) funds from the County Use the City's specialized CalACT/MBTA transit contract to buy 13 benches and 5 shelters from Tolar Manufacturing Company.
Install those items at designated bus stops served by Santa Maria Regional Transit (SMRT) in Orcutt and Tanglewood.
Under that original plan, the County agreed to handle all underlying concrete pad construction and landscaping work.
Following installation, the City will be responsible for ongoing cleaning, graffiti removal, and routine repairs of the furniture
Amended Change
After the City Council approved the initial text, the County of Santa Barbara sent the document to its County risk management division for review. This review led to a few administrative and financial changes that require City Council approval before execution:
From MOU to Cooperative Agreement: the contract vehicle has been rewritten into a detailed "Cooperative Agreement" to better protect both cities legally. Additional Bench: add a fourteenth Bench to the order Budget Increase (+ $9,035): the funding amount transferred from the County to the City is increasing to $$109,265. The original MOU left out explicit lines for contingency and shipping. The new agreement breaks these out so the City is fully protected from extra costs.
Shifted Timeline: editing the contract took extra time, the project schedule deadlines have been moved forward by a few months.
Return of Leftover Funds: a new clause states that if the City has any money left over after the installation is complete, it must send those specific funds back to the County within 75 days.
Alternative(s)
The City Council may choose to reject the Cooperative Agreement: This however could then require Santa Maria Regional Transit (SMRT), as the operator, to invest City transit funds to address ADA improvement in County areas. The MOU remains the most fiscally responsible and efficient met hod by leveraging the County’s participation and the City’s specialized procurement access.
3 Fiscal Considerations
The baseline cost for the 14 benches and 5 shelters is still $90,285. The increase in the total contract value to $109,265 covers the exact shipping charges and creates a safety net for unexpected installation challenges.
Because the County is funding 100% of this through its State -allocated TDA -Local Transportation Funds, this project does not use any City General Fund . There was $100,000 al ready included in the adopted budget for this C apital Maintenance and Equipment Project (CMEP), and this proposed budget amendment will result in a $9,265 increase each in the following accounts: Fund 660 Cost Center 1170 Spend Category 7620 and Revenue Category 4420 LTF Capital.
Impact on the Community
Entering into this MOU with County benefits SMRT riders from the unincorporated communities of Orcutt and Tanglewood by upgrading their transit stops to ADA standards, ensuring safe and acces sible boarding for seniors and individuals with mobility challenges, which lies outside the City of Santa Maria’s sphere to unilaterally perform. By installing new shelters and seating, the project provides some weather protection and comfort, which promot es public health and encourages increased ridership across the SMRT system. Furthermore, this partnership fosters agency -agnostic equity, ensuring that high-quality transit amenities are distributed to regional riders, regardless of whether they reside in the City or unincorporated County areas while preserving bus stop amenity uniformity.
ATTACHMENT(S)
A. Resolution
B. Cooperative Agreement
C. COSB Indemnification and Insurance Reqs
D. Furniture Specifications
E. List of Bus Stop Locations
F. Tolar Furniture Quote