City of Simi Valley
Staff Report
October 12, 2026
To: City Council
From: Public Works Department
Jay Spurgin, Interim Public Works Director
Subject: Approve amendment to Simi Valley Transit Program of Projects for FY 2026-27, supplemental budget requests of $245,704 and $61,426, repurpose and transfer of funds of $180,000, and authorize the City Manager to execute all necessary documents
Staff Recommendation
It is recommended that the City Council:
1. Approve the amendment to the Simi Valley Transit (SVT) Program of Projects (POP) for Fiscal Year 2026-27 (FY27) and a related Supplemental Budget Request in the Transit Fund (Fund 750) for $245,704, that includes establishing four new capital projects;
2. Approve a Supplemental Budget Request for the required local match of $61,426 from the Local Transportation Fund (Fund 238) and approve an interfund transfer of $61,426 from Fund 238 to Fund 750;
3. Approve repurposing Federal Transit Administration (FTA) Bus Facilities grant funds of $144,000 and its required local match of $36,000, totaling $180,000, and authorize the funds to be transferred from Capital Project CP75000020, Bus Engine/Transmission Rebuilds to CP75000011, Transit Bus Wash System, subject to FTA approval of the repurposing; and,
4. Authorize the City Manager or her designee to execute all necessary documents related to the project amendments, budget allocations and transfers.
Background
Simi Valley Transit operates with funding from several sources, including Federal Transit Administration (FTA) and Transportation Development Act (TDA) funds. On June 8, 2026, the City Council approved the FY2026-27 Simi Valley Transit Budget and proposed Simi Valley Transit POP (Attachment A). The POP will be forwarded to the Ventura County Transportation Commission (VCTC) for public comment and further processing consistent with applicable federal and regional requirements.
Agenda Item No.
Consent (3)
Discussion
VCTC provided an update on the estimated Section 5307 funding for the City’s Urbanized Area for Federal Fiscal Year 2027, which amounts to $3,726,137. VCTC’s planning and programming costs are $561,314, leaving the remaining balance of $3,164,823 for operational needs. The required local match totals $2,705,363. FTA provides formula grants under Section 5339 (a) to assist eligible recipients in financing capital projects for replacing, rehabilitating, and purchasing buses and related equipment and constructing bus-related facilities. The City is receiving $245,704 in Section 5339(a) funding for the four new capital projects identified below, which require a $61,426 local match. Staff requests an interfund transfer of $61,426 from Fund 238 to Fund 750. Below is a table summarizing the 5307 and 5339 funding allocations.
Federal Grant Local Match
Planning Assistance
Planning Assistance and Programming (Sec. 5307) $561,314 Operating Assistance
Simi Valley Transit (Sec. 5307) $2,552,209 $2,552,209
Capital Assistance
Preventive Maintenance (Sec. 5307) $240,000 $60,000
ADA Paratransit (Sec. 5307) $372,614 $93,154
Subtotal (Sec. 5307) $3,726,137 $2,705,363
New Capital Projects (Sec. 5339)
Renovate Transit Maintenance Facility Admin Office $63,144 $15,786 Repaint Transit Maintenance Facility Building $10,560 $2,640 Purchase two vans for microtransit $152,000 $38,000
Renovate Transit Maintenance Facility Restroom $20,000 $5,000 Subtotal (Sec. 5339) $245,704 $61,426
Total Grant Funds (Sec 5307 & Sec 5339) $3,971,841 $2,766,789 On November 18, 2024, Council approved $200,000 ($160,000 Federal grant plus $40,000 local match) for the Bus Engine/Transmission Rebuild Project, CP75000020 (Attachment B). However, as more than 50% of the fleet has transitioned into electric vehicles and the Compressed Natural Gas (CNG) buses are being phased out, the need for engine and transmission rebuilding is expected to decrease. SVT would like to repurpose $180,000 of the funds towards the new bus wash system and retain $20,000 to continue to support the engine and transmission rebuilds project.
Financial Impact
The total fiscal impact is $307,130. Of this amount, 80% of the total cost, or $245,704 will be funded through a Federal grant, and the remaining 20%, or $61,426 will be funded by the Local Transportation Fund (Fund 238). A supplemental budget request of $307,130 which includes an interfund transfer of $61,426 from Fund 238 to Fund 750 has been requested.
2 City Council Priority
This item supports the Reliable Infrastructure Pillar of Excellence.
Suggested Motion
I move to:
1. Approve the amendment to the Simi Valley Transit (SVT) Program of Projects (POP) for Fiscal Year 2026-27 (FY27) and a related supplemental budget request for the Transit Fund (Fund 750) for $245,704, that includes establishing four new capital projects;
2. Approve a supplemental budget request for the required local match of $61,426 from the Local Transportation Fund (Fund 238) and approve an interfund transfer of $61,426 from Fund 238 to Fund 750;
3. Approve repurposing FTA Bus Facilities grant funds of $144,000 and its required local match of $36,000, totaling $180,000, and authorize the funds to be transferred from Capital Project CP75000020, Bus Engine/Transmission Rebuilds to CP75000011, Transit Bus Wash System, subject to FTA approval of the repurposing; and,
4. Authorize the City Manager or her designee to execute all necessary documents related to the project amendments, budget allocations, and transfers.
Summary
On June 8, 2026, the City Council approved the FY26-27 Simi Valley Transit Budget and proposed POP. It is recommended that the City Council approve the amended POP for submission to VCTC to allocated funds for a bus wash station from the Bus Engine/Transmission Rebuild Project, approve a related Supplemental Budget Request of $245,704, including establishing four new capital projects, approve a Supplemental Budget Request of $61,426 in the Local Transportation Fund (Fund 238) with an interfund transfer of $61,426 from Fund 238 to Fund 750 to meet the local match requirement.
Approve the repurpose and transfer of $180,000 from Capital Project CP75000020, Bus Engine/Transmission Rebuilds to CP75000011, Transit Bus Wash System, subject to FTA approval, and authorize the City Manager or her designee to execute all necessary documents related to the project amendments, budget allocations, and transfers.
Prepared by: Tan Koehler, Senior Management Analyst
Attachments
Attachment A - Excerpt from FY2026-27 Budget Staff Report Attachment B - Staff Report from November 18, 2024
3 9
Transit Fund
FY2025-26 revenue is projected to increase by $3.6 million compared to the revised budget, primarily due to an increase in state assistance grants, specifically allocated for Transit capital projects.
Federal revenue is projected to reach approximately $4.3 million. However, this figure falls short of the revised budget by $317,675. The slight decrease is offset by the increased state assistance grants, which help cover the costs for the ongoing capital projects.
Additionally, funding from the Transportation Development Act Article 4 (TDA) is projected to total $9.5 million, exceeding the revised budget by $740,000. This increase is due to the local match requirement for new capital projects as well as rising project costs.
On the fare revenue front, projections indicate $324,250 in total. This amount is slightly below the anticipated budget by $2,450. Although ridership has improved since the pandemic, it has yet to rebound to pre-pandemic levels.
The FY2026-27 budgeted revenue is expected to decline significantly, reflecting a decrease of $7.8 million relative to the projected actuals for FY2025-26, and down by $4.2 million relative to the revised budget for that same year. The downturn is primarily due to reductions in state assistance grants and TDA funds. As most capital projects are making progress and will be carried over into FY2026-27, fewer new projects will be initiated in FY2026-27. Moreover, fare revenue is anticipated to remain stable, showing no significant changes from FY2025-26.
The FY2025-26 expense is projected to decrease by $15.9 million compared to the revised budget. This reduction is primarily due to capital projects and equipment purchases that were budgeted but not completed, as projects often span multiple years.
In FY2026-27, the expense budget is projected to decrease by $23.6 million compared to the revised budget for FY2025-26. This decrease is attributed to fewer new capital projects initiated in FY2026-27, as most projects from FY2025-26 are still ongoing and will be carried over into FY2026-27.
4 Attachment A
10 Fixed-route and ADA/DAR service ridership declined dramatically during the 2020 pandemic. Passenger ridership on fixed-route services has improved, rising 56.8% in FY 2024–25 compared to FY 2020–21. Fixed-route service has not yet fully recovered to pre-pandemic levels, a trend nationwide.
While fixed-route service has not yet reached pre-pandemic ridership levels, Dial-A-Ride (DAR) services have increased by 108% from FY 2020–21 and have surpassed prepandemic levels by 4%. In an effort to continue increasing fixed-route ridership, staff is collaborating with the Simi Unified School District to promote the Youth Free Ride Program and the College Student Ride Free Program. Additionally, staff will increase their marketing efforts to promote all transit services.
The Department introduced Microtransit services at the beginning of fiscal year FY2025- 26 to provide alternative transit services to residents in areas without public transportation access. Ridership for the new service continues to increase, and staff continues to receive requests to expand service zones. As a pilot project, the department will continue to evaluate operations and assess its potential for inclusion as a permanent transit service.
Transit Proposed Program of Projects (POP) for FY 2026-27 On December 19, 1988, the City Council established a policy to conduct an annual review of the proposed fiscal year budget for the City’s Transit program. This review is part of the City Council’s consideration of the Transit Program of Projects (POP). The POP serves as the foundation for the City’s federal grant applications, which help offset the operating costs of the Simi Valley Transit System and fund capital projects.
According to Title 49 U.S.C. Chapter 53, the City of Simi Valley's Transit Division is eligible to apply for Federal Transportation Administration (FTA) grant funding under Section 5307. This funding will support both operating and capital expenditures for FY 2026-27.
Once the City Council approves the proposal, the approved POP will be sent to the Ventura County Transportation Commission (VCTC), the designated Regional Transportation Planning Agency for Ventura County. VCTC will then post the projects for public comment and forward them to the Southern California Association of Governments (SCAG) for final approval.
The proposed POP outlines a $3,817,695 grant to Simi Valley Transit, of which $543,506 will be allocated directly to VCTC for countywide planning assistance. The remaining amount of $3,274,189 will be used for operating and capital assistance, as detailed below.
Federal Grant Local Match
Planning Assistance
Countywide Planning 543,506 -
Operating Assistance
Simi Valley Transit 2,592,420 2,592,420
5 11
Capital Assistance
Preventive Maintenance 300,000 75,000
Non-Fixed Route ADA Paratransit 381,769 95,443
$ 3,817,695 $ 2,762,863
After the City Council reviews the proposal, any necessary adjustments to the POP will be made accordingly.
A resolution 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 as Attachment “A”.
6 CITY OF SIMI VALLEY
MEMORANDUM
November 18, 2024
TO: City Council
FROM: Department of Public Works
SUBJECT: APPROVE AMENDMENT TO THE SIMI VALLEY TRANSIT PROGRAM OF PROJECTS FOR FISCAL YEAR 2024-25 AND A RELATED
SUPPLEMENTAL BUDGET REQUEST FOR THE TRANSIT FUND THAT
INCLUDES ESTABLISHING FOUR NEW CAPITAL PROJECTS, AND A
RELATED SUPPLEMENTAL BUDGET REQUEST FOR THE TRANSIT
FUND (FUND 750) AND LOCAL TRANSPORTATION FUND (FUND 238)
STAFF RECOMMENDATION
It is recommended that the City Council:
1. Approve amendment to the Simi Valley Transit Program of Projects (POP) for Fiscal Year 2 024-25 (FY 25) and a related Supplemental Budget Request for the Transit Fund (Fund 750) for $335,989, that includes establishing four new capital projects;
2. Approve a Supplemental Budget Request for the required local match of $83,997 from the Local Transportation Fund (Fund 238) and approve an interfund transfer of $83,997 from Fund 238 to Fund 750; and,
3. Authorize 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 3, 2024, the City Council approved the FY 25 Simi Valley Transit Budget and proposed Simi Valley Transit POP (Attachment A, page 4). 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, CMAQ, Job Access Reverse Commute (JARC), and other grant funds.
FINDINGS AND ALTERNATIVES
The 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 Area Formula Program funds to urbanized areas for public transportation, capital projects, TRAN2458.SR.MG
AGENDA ITEM NO.
Consent (6)
Attachment B
7 Federal Grant Local Match
Planning Assistance
Planning Assistance and Programming
(Sec. 5307)
$574,683
Operating Assistance
Simi Valley Transit (Sec. 5307) $2,709,392 $2,709,392
Capital Assistance
ADA Paratransit (Sec. 5307) $364,897 $91,224
Subtotal (Sec. 5307) $3,648,972 $2,800,616
New Capital Projects (Sec. 5339)
HVAC Replacement for TMF Server Room $40,000 $10,000
Bus Engine/Transmission Rebuilds $160,000 $40,000
Farebox Replacements $103,989 $25,997
Driver Breakroom $32,000 $8,000
Subtotal (Sec.5339) $335,989 $83,997
Total Grant Funds $3,984,961 $2,884,613
The following alternatives are available to the City Council:
1. Approve amendment to the Simi Valley Transit POP for FY 25 and related Supplemental Budget Request in the Transit Fund (Fund 750) for $335,989, that TRAN2458.SR.MG
8 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) 2025 is $3,648,972. VCTC’s planning and programming costs are $574,683 leaving the remaining balance of $3,074,289. Staff recommends allocating the remaining balance for ADA paratransit ($364,897) and fixed-route bus operations ($2,709,392). The funds needed to meet the local match requirement for ADA paratransit (25% match = $91,224) and fixed-route bus operations (100% match = $2,709,392) was previously approved and those funds are currently available.
In addition, FTA awards grants under Section 5339 to finance capital equipment such as bus and bus-related projects to support the continuation and expansion of public transportation services. Simi Valley Transit is estimated to receive $335,989 in FTA grant funds for FFY 2025 and proposes to utilize those funds on the New Capital Projects listed in the table below. There is a local match requirement in order to utilize Section 5339 funds, therefore staff is requesting an interfund transfer of $83,997 from Fund 238 to Fund 750.
The following chart summarizes the amended 2024-25 POP budget:
TRAN2458.SR.MG
includes establishing four new capital projects to track each capital project expenditures;
2. Approve a Supplemental Budget Request for the required local match of $83,997 from the Local Transportation Fund 238 and approve an interfund transfer of $83,997 from Fund 238 to Fund 750;
3. Provide staff with other direction.
Staff recommends Alternative No. 1 and 2.
SUGGESTED CITY COUNCIL MOTION
I move to approve the amendment to the Simi Valley Transit Program of Projects for FY25; a Supplemental Budget Request to Transit Fund 750 for $335,989 that includes establishing four new capital projects; a Supplemental Budget Request of $83,997 to Fund 238; and an interfund transfer of $83,997 from Fund 238 to Fund 750.
SUMMARY
On June 3, 2024, the City Council approved the FY 25 Simi Valley Transit Budget and proposed POP. It is recommended that the City Council approve the amended POP for submission to VCTC, approve a related Supplemental Budget Request of $335,989, including establishing four new capital projects to efficiently track each capital project expenditure, and approve a Supplemental Budget of $83,997 in the Local Transportation Fund 238 with an interfund transfer of $83,997 from Fund 238 to Fund 750 to meet the local match requirement.
_____________________________________
Ronald K. Fuchiwaki
Public Works Director
Prepared by: Tan Koehler, Senior Management Analyst
INDEX Page
Attachment A (Excerpt from FY2024-25 Budget Staff Report) .......... …………4 9 Communitv Development Aqencv (CDA)
The process of dissolving the former Community Development Agency (CDA) is ongoing.
SuccessorAgency (formerCommunity DevelopmentAgency) expenditures are limited by State law to recognized obligations in place prior to July 1 ,2011. Staff members continue to process prior obligations and debt service under the Recognized Obligation Payment Schedule (ROPS) agreement with the State of California Department of Finance. The primary fund expense is the annual debt service and related costs for the former Agency's 2003 TaxAllocation Bonds, which is $2.1 Million in FY 2024-25.
Staff in the Department of Environmental Services handle Housing Successor Agency functions. At the time of dissolution in 2012, the Community Development Agency's Housing Administration Fund was responsible for over $9.1 Million in recognized obligations to provide developer loans to create affordable rental or ownership housing units. The Housing SuccessorAgency Fund (Fund 201) is projected to have a $3.6 million fund balance at the beginning of FY 2024-25 as a result of principal and interest received over the years from prior repaid loans, and these funds will continue to be utilized to encourage the creation of affordable housing in SimiValley.
Transit Fund
The FY 2024-25 Transit budget includes farebox revenues and state and federal grant funds and allocations. Transit farebox revenue budget is $326,650, slightly higher than the FY 2023-24 budget of $324,200. Grant funds and allocations are budgeted at $9.2M, $348K more than the prior year's budget, to cover increased operating expenses such as the payroll. ln addition, the Transit budget includes $8.5M in funding for Capital Projects, significantly higher than the prior year's $2.6M as a result of Transit and lntercity Rail Capital Project (TIRCP) funding received this year to construct a new transit center and purchase of six electric vehicles.
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 FY 2023-24 compared to FY 2020-21, it still has not fully recovered from its prepandemic numbers. Furthermore, Dial-A-Ride (DAR) services increased by 139.1o/o from FY2020-21 and have surpassed their pre-pandemic figures by 19.9o/o. ln an effort to continue increasing fixed-route ridership, staff is collaborating with Simi Valley Unified School District to help promote the Youth Ride Free Program.
Additionally, the Department strives to introduce Microtransit services, which will help meet the needs of our ADfuDAR clients and other members of the general public who require transit services in particular parts of the city. lnstead of depending on fixed-route services or booking in advance for ADA/DAR services, Microtransit aims to give users an on-demand service option. The Department intends to launch this service in FY 2024-25 once the new electric mini vans arrive from production.
The other objectives and achievements fulfilled by transit are increased productivity and efficiency of Dial-A-Ride services, as well as the purchase of two (2) CNG fixed-route buses and eight (8) CNG Dial-A-Ride vans. Furthermore, the Department received a $7,053,000 competitive State grant for the Civic Center Transit hub.
ATTACHMENT A
10 Transit Proposed Program of Projects (POP) for FY 2024-25 On December 19, 1988, the City Council established a policy to annually review the Simi Valley Transit proposed fiscal year budget as 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 offset the cost of operating the Simi Valley Transit System and capital projects.
Under 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 to assist with its FY 2024-25 operating and capital expenditures. Following City Council approval, Simi Valley Transit's approved POP will be forwarded to the Ventura County Transportation Commission (VCTC), the City's current designated recipient of FTA funds, who will conduct a public hearing for final approval and inclusion in the City's FTA Section 5307.
The proposed POP allocates Simi Valley Transit's FTA 5307 grant of $3,648,972, as indicated below. The POP also identifies $539,760 in 5307 grant funds, which will go directly to VCTC for countywide planning assistance funds.
Planning Assistance
Countywide Planning
Operating Assistance
Simi Valley Transit
Capital Assistance
Preventive Maintenance
Non-Fixed Route ADA Paratransit
Federal Grant
539,760
2,594,315
150,000
364,897
$3,699,623
Local Match
2,594,315
37,500
91,224
$2,888,411
After City Council consideration, any adjustments to the POP will be made as appropriate.
A resolution authorizing the City Manager to execute and submit the filing of an application with the U.S. Department of Transportation, FTA, for operating, capital, planning, and preventive maintenance assistance funds under Title 49 U.S.C. Section 5307 is required and is included on page 16.
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-today 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 11