Agenda Item #13.2
For Council Meeting of: October 13, 2026
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: RACHEL EDE, DEPUTY DIRECTOR-TRANSIT
TRANSPORTATION AND PUBLIC WORKS DEPARTMENT
SUBJECT: PURCHASE OF SIX TRANSIT BUSES FROM THE GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT AND ACCEPTANCE OF TRANSFER OF TITLE AND FEDERAL INTEREST AGENDA ACTION: RESOLUTION
RECOMMENDATION
The Transportation and Public Works Department recommends that the Council, by resolution: 1) subject to approval by the Federal Transit Administration, authorize the Director of Transportation and Public Works or designee to negotiate and execute the agreements and other documents necessary to purchase and acquire title to six 2019 Gillig hybrid transit buses from the Golden Gate Bridge, Highway and Transportation District, subject to approval as to form by the City Attorney; 2) accept and assume the remaining federal interest in the six buses in an aggregate amount not to exceed $1,894,566; and 3) authorize the Chief Financial Officer to appropriate $381,102 from the Transit Capital Fund to JL Key 45160 for the purchase. This item requests an appropriation of one-time funding from the Transit Capital Fund.
EXECUTIVE SUMMARY
The proposed action would authorize the City of Santa Rosa to acquire title to six 2019 Gillig hybrid transit buses currently leased from the Golden Gate Bridge, Highway and Transportation District (GGBHTD) and accept the transfer of the remaining federal interest through a Federal Transit Administration (FTA)-approved asset-transfer process. Acquisition of the buses would allow the City to replace older fleet vehicles, maintain scheduled fixed-route service, and provide operational resiliency as CityBus incorporates new battery-electric buses into its fleet.
GOAL
This item relates to Council Goal #2, Invest in the Development and Maintenance of the City’s Infrastructure, by supporting a state of good repair for the CityBus fleet and lowering the average age of the transit fleet.
BACKGROUND/PRIOR COUNCIL REVIEW
Over the past several years the Transit Division and Fleet Maintenance Division have experienced acute challenges with fleet availability to meet transit service delivery requirements. The ability of CityBus to provide all scheduled service has been threatened by critically low spare vehicle availability and ongoing maintenance challenges related to aging vehicles, supply chain issues including long lead times for replacement parts, and specific challenges with the electric bus fleet in the aftermath of the Proterra bankruptcy. To ensure that CityBus continues to meet the vehicle requirement needed to deliver all scheduled service, several buses were kept in service well beyond their useful life despite ongoing maintenance challenges.
In November 2024, the GGBHTD received approval from the FTA to enter into lease agreements with other public transit operators for temporary use of GGBHTD vehicles to provide public transit services. The City received concurrence from FTA to lease six 2019 Gillig hybrid buses from GGBHTD in April 2025, and on July 8, 2025 Council approved the lease of these six buses under RES-2025-118 to assist with transit fleet availability.
ANALYSIS
In response to the urgent need for additional buses to ensure that all scheduled transit service can be delivered to the public, CityBus canvassed both private and public sector options for temporarily augmenting its transit fleet with leased vehicles. In 2025 the GGBHTD partnership was found to be the most cost-effective lease option, with vehicles that could be incorporated into the CityBus fleet with minor alterations and meet all state and federal operational requirements including those related to the Americans with Disabilities Act. CityBus already operates and maintains Gillig transit buses, reducing the need for additional training and operational changes. Council approved the lease agreement with GGBHTD, and the vehicles were put into revenue service in 2025.
In June 2026, GGBHTD notified the Transit Division of its interest in selling and transferring ownership of select buses in its fleet, including the six buses CityBus is currently leasing. In August 2026, GGBHTD received approval from the FTA to enter into agreements to transfer ownership of GGBHTD vehicles to provide public transit services, and the Transit Division received concurrence from FTA staff to take ownership of the six leased GGBHTD buses, pending Council’s approval and final transfer documentation.
The opportunity to purchase the six leased buses offers several benefits to the City. GGBHTD originally acquired the buses using 85 percent federal funding and a 15 percent local share. Under the proposed asset transfer, the City would accept the remaining depreciated federal interest, estimated at an aggregate amount of $1,894,566 as of September 30, 2026, and assume the associated federal obligations. The City would pay GGBHTD an aggregate purchase price of no more than $381,102, consisting of the remaining depreciated local share, the value of certain added components, and residual value. Both amounts will continue to decline monthly until the transfer is completed. The combined depreciated value of the six buses is approximately $2.28 million, while the City’s maximum cash purchase price is approximately equal to the depreciated value of one bus.
In addition, when the lease commenced, Transit Division staff installed equipment required to place the buses into revenue service, including CityBus fareboxes, computer-aided dispatch and automatic vehicle location (CAD/AVL) systems, and Clipper card hardware. CityBus also applied decals consistent with its current branding and purchased new tires for the buses. Permanent acquisition will preserve the City’s investment in outfitting the buses for operation in the CityBus fleet.
The GGBHTD buses are newer than 20 other buses in the existing CityBus fleet and have sufficient remaining useful life to operate for at least five and potentially up to eight additional years. Acquisition of the buses will allow the Transit Division to permanently retire several older buses, experience reduced vehicle downtime and maintenance costs, improve access to replacement parts, and improve performance against federal benchmarks for timely bus replacement. The buses will also provide operational resiliency as CityBus incorporates 12 new battery-electric buses into its fleet.
Acquisition of the six GGBHTD hybrid buses will not affect the City’s compliance with the State of California’s Innovative Clean Transit (ICT) rule, as the rule does not apply to the purchase of used buses. In 2026, CityBus has placed 12 new battery-electric buses into service in compliance with the ICT rule.
If approved, City staff, subject to authorization from the Director of Transportation of Public Works, or designee, and approval as to form by the City Attorney, will negotiate the relevant agreements which may include unfavorable terms and conditions, including but not limited to, unfavorable indemnification, warranty, termination, and/or insurance provisions.
FISCAL IMPACT
Approval of this action will have no impact on the General Fund.
The requested appropriation of $381,102 will be funded through CityBus’s allocation of Transportation Development Act Article IV capital funds and appropriated to JL Key 45160. The City will pay GGBHTD an aggregate purchase price not to exceed $381,102 for the six buses. The final purchase price will continue to decline monthly until the transfer is completed. The City will also accept and assume the remaining depreciated federal interest in the buses, in an aggregate amount not to exceed $1,894,566, together with the associated federal obligations. Applicable taxes, registration fees, and other transaction costs will be paid from JL Key 45160, subject to available appropriations.
ENVIRONMENTAL IMPACT
The proposed acquisition is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301 because it involves the continued operation of existing public transit equipment within the existing CityBus fixed-route system, with no expansion of transit service. The six buses are currently leased and operated by the City, and their acquisition will allow the City to replace older buses and maintain scheduled service. In the alternative, the action is exempt pursuant to CEQA Guidelines Section 15061(b)(3) because it can be seen with certainty that the acquisition will not have a significant effect on the environment.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
Not applicable.
NOTIFICATION
Not applicable.
ATTACHMENTS
Resolution
PRESENTER
Shawn Sosa, Administrative Analyst
PURCHASE OF SIX TRANSIT BUSES FROM THE GOLDEN GATE BRIDGE, HIGHWAY AND TRANSPORTATION DISTRICT AND ACCEPTANCE OF TRANSFER OF TITLE AND FEDERAL INTEREST PAGE 3 OF 3