CITY OF SIMI VALLEY
MEMORANDUM
Oc
tober 6, 2025
TO: City Council
F
ROM: Department of Public Works
S
UBJECT: APPROVE AMENDMENT TO THE SIMI VALLEY TRANSIT PROGRAM OF PROJECTS FOR FISCAL YEAR 202 5-26 AND A RELATED
SUPPLEMENTAL BUDGET REQUEST FOR THE TRANSIT FUND THAT
INCLUDES ESTABLISHING FOUR NEW CAPITAL PROJECT S; AND A
RELATED SUPPLEMENTAL BUDGET REQUEST FOR THE TRANSIT
FUND (FUND 750) AND LOCAL TRANSPORTATION FUND ( FUND 238);
AND AUTHORIZE THE CITY MANAGER TO EXECUTE ALL NECESSARY
DOCUMENTS
STAFF RECOMMENDATION
I
t is recommended that the City Council:
1. Appr
ove amendment to the Simi Valley Transit (SVT) Program of Projects (POP) for Fiscal Year 2025-26 (FY26) and a related Supplemental Budget Request for the Transit Fund (Fund 750) for $339,263, that includes establishing four new capital projects;
2. Appr
ove a Supplemental Budget Request for the required local match of $67,853 from the Local Transportation Fund (Fund 238) and approve an interfund transfer of $67,853 from Fund 238 to Fund 750; and,
3. A
uthorize the City Manager , or her designee, to execute all necessary documents related to the project amendments, budget allocation, and transfers.
BACKGROUND AND OVERVIEW
On
June 9, 2025, the City Council approved the FY26 Simi Valley Transit Budget and proposed Simi Valley Transit POP (Attachment A, page 5). The POP will be forwarded to the Ventura County Transportation Commission (VCTC) for final approval and included in the City’s Federal Transit Administration (FTA) 49 U.S.C. grant applications, which include Section 5307, Section 5339, Congestion Mitigation and Air Quality , Job Access Reverse Commute, and other grant funds.
FINDINGS AND ALTERNATIVES
T
he City Council reviews and approves the POP funding as part of the City ’s Annual Budget. Pursuant to 49 U.S.C. 5307 (“Section 5307 Funds”), FTA apportions Urbanized
AGENDA I
TEM NO.
Consent (5)
Area Formula Program funds to urbanized areas for public transportation, capital projects, operating assistance, job access , reverse commute projects , and transportation-related planning. The estimated Simi Valley Urbanized Area 5307 funding for the Federal Fiscal Year (FFY) 2026 is $3,819,290. VCTC’s planning and programming costs are $543,506 leaving the remaining balance of $3,275,784. Staff recommends allocating the remaining balance for ADA paratransit ($372,614) and fixed-route bus operations ($2,903,170). The funds needed to meet the local match requirement for ADA paratransit (25% match = $93,153) and fixed- route bus operations (100% match = $2,903,170) were previously approved, and those funds are currently available.
In addition, FTA awards grants under Section 5339 to finance capital equipment such as buses and bus -related projects to support the continuation and expansion of public transportation services. The funds associated with F ederal FY (FFY) 2024, which total $236,878, will be used to replace an existing backup compressor and its parts, as well as to install a cover to the new bus wash system. Regarding the funds associated with FFY2025, the Council approved $103,989 for farebox replacement on November 18, 2024.
Since that appr oval, an additional funding source has become available to cover the farebox purchase. Therefore, SVT proposes reallocating $34,532 for other capital projects. Specifically, SVT recommends these funds be allocated to upgrade the transit entrance gate, improve space utilization, and modernize working areas in the Transit administrative office.
A summary of the new capital projects is provided in the table below:
Federal Grant Local Match
Planning Assistance
Planning Assistance and Programming
(Sec. 5307)
$543,506
Operating Assistance
Simi Valley Transit (Sec. 5307) $2,903,170 $2,903,170
Capital Assistance
ADA Paratransit (Sec. 5307) $372,614 $93,154
Subtotal (Sec. 5307) $3,819,290 $2,996,324
New Capital Projects (Sec. 5339)
Backup Compressor Replacement Upgrade
(FFY2024)
$163,804 $40,951
Bus Wash System Cover (FFY2024) $73,074 $18,269
Transit Entrance Gate Upgrade (FFY2025) $11,200 $2,800 Transit Admin Office Improvement (FFY2025) $23,332 $5,833 Subtotal (Sec. 5339) $271,410 $67,853
Total Grant Funds $4,090,700 $3,064,177
2 To utilize the Section 5339 funds, a local match is required. Therefore, staff is requesting an interfund transfer of $67,853 from Fund 238 to Fund 750.
The following alternatives are available to the City Council:
1. Approve amendment to the Simi Valley Transit P OP for FY 26 and related Supplemental Budget Request in Fund 750 for $339,263, which includes establishing four new capital projects to track each capital project’s expenditures;
2. Approve a Supplemental Budget Request for the required local match of $67,853 from Fund 238 and approve an interfund transfer of $67,853 from Fund 238 to Fund 750;
3. Authorize the City Manager, or her designee, to execute all necessary documents related to the project amendments, budget allocation, and transfers;
4. Provide staff with other direction.
Staff recommends Alternative Nos. 1, 2, and 3.
SUGGESTED CITY COUNCIL MOTION
I move to approve the amendment to the Simi Valley Transit Program of Projects for FY26; a Supplemental Budget Request to Transit Fund 750 for $ 339,263 that includes establishing four new capital projects; a Supplemental Budget Request of $67,853 to Local Transportation Fund 238; and an interfund transfer of $67,853 from Fund 238 to Fund 750; and authorize the City Manager, or her designee, to execute all necessary documents related to the project amendments, budget allocation, and transfers.
SUMMARY
On June 9 , 2025, the City Council approved the FY26 Simi Valley Transit Budget and proposed POP. It is recommended that the City Council approve the amen ded POP for submission to VCTC , approve a related Supplemental Budget Request of $ 339,263, including establishing four new capital projects to efficiently track each capital project expenditure, and approve a Supplemental Budget of $67,853 in the Local Transportation Fund 238 with a n interfund transfer of $67,853 from Fund 238 to Fund 750 to meet the local match requirement, and authorize the City Manager, or her designee, to execute all necessary documents related to the project amendments, budget allocation, and transfers.
_____________________________________
Ronald K. Fuchiwaki
Public Works Director
3 Prepared by: Tan Koehler, Senior Management Analyst
INDEX Page
Attachment A (Excerpt from FY2025-26 Budget Staff Report) .......... …………5 4 Fixed-route and ADA/DAR service ridership declined dramatically during the 2020 pandemic. Although passenger ridership for fixed-route services improved by 49.8% for FY2023–24 compared to FY2020–21, it still has not fully recovered to its pre-pandemic numbers. In contrast, Dial-A-Ride (DAR) services increased by 139.1% from FY2020– 21 and have surpassed their pre-pandemic figures by 19.9%. To further boost fixed- route ridership, staff are collaborating with the Simi Valley Unified School District to promote the Youth Ride Free Program.
The Department strives to introduce Microtransit services aimed at meeting the needs of our ADA/DAR clients as well as other members of the general public who require transit services in specific areas of the city.
In addition, other objectives and achievements fulfilled by transit are increased productivity and efficiency of Dial-A-Ride services, such as the purchase of eight (8) CNG Dial-A-Ride vans. Furthermore, the Department secured a competitive State grant of $7,053,000 to construct the Civic Center Transit hub and purchase six (6) fixed-route zero emission buses.
Transit Proposed Program of Projects (POP) for FY 2025-26 On December 19, 1988, the City Council established a policy to review the City’s Transit proposed fiscal year budget annually. This review is part of the City Council’s consideration of the Transit Program of Projects. The Transit Program of Projects (POP) provides the foundation for the City’s grant applications for federal funds, which help to offset the cost of operating the Simi Valley Transit System and funding capital projects.
According to Title 49 U.S.C. Chapter 53, the City of Simi Valley's Transit Division is eligible to apply for FTA grant funding under Section 5307. This funding will support both operating and capital expenditures for FY 2025-26.
Once the City Council the approves
the proposal, the approved Program of Projects (POP) for Simi Valley Transit will be sent to the Ventura County Transportation Commission (VCTC), which is the designated recipient of FTA funds for the City. The VCTC will then hold a public hearing to grant final approval and include the POP in the City’s FTA Section 5307 funding.
The proposed POP outlines a grant of $3,726,137 to Simi Valley Transit, out of which $574,683 will be allocated directly to V CTC f or countywide planning assistance. The remaining amount of $3,151,454 will be used for operating and capital assistance, as detailed below.
ATTACHMENT A
5 Federal Grant Local Match
Planning Assistance
Countywide Planning 574,683 -
Operating Assistance
Simi Valley Transit 2,541,454 2,541,454
Capital Assistance
Preventive Maintenance 240,000 60,000
Non-Fixed Route ADA Paratransit 370,00 92,500
$3,726,137 $2,693,954
After the City Council reviews the proposal, any necessary adjustments to the POP will be made accordingly.
A r
esolution is needed to authorize the City Manager to file an application with the U.S.
Department of Transportation, Federal Transit Administration (FTA), for funding assistance for operating expenses, capital projects, planning, and preventive maintenance under Title 49 U.S.C. Section 5307. This resolution is included on page 15.
Sanitation Fund
The
Sanitation financial system is comprised of an Operating Fund, a Replacement Reserve Fund, and a Plant Expansion Fund. The Operating Fund finances the day-to- day cost of operating the sanitation system. The Replacement Reserve Fund is used to finance the replacement of equipment and infrastructure used to collect and treat wastewater. Both funds are financed from user fees (service charges). The Plant Expansion Fund is financed from developer fees, and the revenue generated can only be used to expand the capacity of the sanitation system to serve new development adequately. Prior to FY 2022- 23, the Operating Fund and Replacement Reserve fund were combined for reporting purposes in the Annual Budget. The funds are now reported on separately.
The Sanitation Operating Fund r evenue is budgeted at $36.2 million, an increase of $210,774 over the estimated actual for FY 2024-25. Expenses, excluding the transfer to the replacement fund, are budgeted at $20.9 million, an increase of $2.9 million above the FY 2024-25 estimated actual. This increase is mostly in salaries and benefits, due to vacancies in the current fiscal year.
The Sanitation Replacement Reserve Fund is funding the capital projects and has a budget of $18.1 million in FY 2025-26 for new project and $1.9 million for vehicle replacement expenses. Based upon the City Council’s policy to establish a Replacement Reserve Fund, the target funding level of the Fund is six months of operating expenses and one year of average CIP expenses.
Bot
h the operating fund and the replacement reserve fund are now holding money aside as reserves for unanticipated expenditures and emergencies as directed by City Council in December of 2019 when the new rate structure was adopted. 6