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CC - CONSENT ITEM: (1) Adoption of a Resolution Authorizing the Execution of a Master Agreement and Program Supplements for State-Funded Transit Projects; and (2) Acceptance of the Following Competitive Grant Awards: (A) $9,530,321 from the Federal Highway Administration’s Congestion Mitigation and Air Quality (CMAQ) Improvement Program for the Jefferson Enhanced Transit Service (JETS) Project; (B) $1,674,248 from the Federal Highway Administration’s Carbon Reduction Program (CRP) for the Sepulveda and Jefferson Corridor Projects; (C) $3,247,000 from the California State Transportation Agency’s (CalSTA) Transit and Intercity Rail Capital Program (TIRCP) to Support the Jets Project and Microtransit Service Delivery in Culver City; (D) $500,000 from the Federal Highway Administration’s Surface Transportation Block Grant (STBG) Program for the Culver City Transit Center Future Visioning Study; and (E) $14,450,000 from the Federal Transit Administration’s Low or No Emissions Grant Program for the Purchase of 17 Replacement Renewable Compressed Natural Gas Replacement Renewable CNG (rCNG) Buses for the Culver City Fleet; and (3) FOUR-FIFTHS VOTE REQUIREMENT: Approval of Related Budget Amendments to Record the Revenue and Appropriate the Funding for these Projects Upon Receipt of the Fully Executed Grant Agreements.
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Meeting Date: January 26, 2026
Contact Person/Dept: Seth Contreras/Transportation Department
Phone Number: (310) 253-6500
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Attachments: Yes [X] No []
Public Notification: (E-Mail) Meetings and Agendas - City Council (01/22/2026)
Department Approval: Yanni Demitri, Public Works Director/City Engineer and Interim Chief Transportation Officer (01/05/2026)
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RECOMMENDATION
Staff recommends the City Council (1) adopt a resolution authorizing the execution of a master agreement and program supplements for state-funded transit projects; (2) accept the following competitive grant awards: (a) $9,530,321 from the Federal Highway Administration's Congestion Mitigation and Air Quality (CMAQ) Improvement Program for the Jefferson Enhanced Transit Service (JETS) project; (b) $1,674,248 from the Federal Highway Administration's Carbon Reduction Program (CRP) for the Sepulveda and Jefferson Corridor Projects; (c) $3,247,000 from the California State Transportation Agency’s (CalSTA) Transit and Intercity Tail Capital Program (TIRCP) to support the JETS project and microtransit service delivery in Culver City; (d) $500,000 from the Federal Highway Administration's Surface Transportation Block Grant (STBG) Program for the Culver City Transit Center Future Visioning Study; and (e) $14,450,000 from the Federal Transit Administration's Low or No Emissions Grant Program for the purchase of seventeen replacement renewable compressed natural gas (rCNG) buses for the Culver CityBus Fleet; and (3) approve related budget amendments to record the revenue and appropriate the funding for these projects upon receipt of the fully executed grant agreements (requires four-fifths vote).
[NOTE: Acceptance of these competitive grants by the City Council will position the City to access and obligate these funds when permissible. At this time, staff is not seeking Council approval to implement these projects, rather, to accept the awarded funds only. The Transportation Department will return to Council for further direction as each project progresses.]
BACKGROUND
A. Federal Highway Administration (FHWA) Congestion Mitigation and Air Quality Improvement Program (CMAQ) - $9,530,321
As part of the 2023-2026 Congestion Mitigation and Air Quality Improvement Program (or CMAQ), the Southern California Association of Governments (SCAG) approved the funding recommendations and awarded the City of Culver City $9,530,321 for operating costs of the newly implemented JETS service as part of the Culver CityBus system.
Following the procurement of five electric minibuses for a new high quality transit service on Jefferson Boulevard using TIRCP funds, the CMAQ grant will be used to subsidize the operating expenses of the new service over three years. This service is currently being evaluated in the Comprehensive Mobility Services Plan.
B. Federal Highway (FHWA) Congestion Relief Program (CRP) Grant - $1,674,248
As part of the 2023-2026 Congestion Relief Program (CRP), SCAG approved the funding recommendations and awarded the City of Culver City $1,674,248 for mobility improvements along the Sepulveda and Jefferson corridors. The funding will be used for the planning, community outreach, environmental documentation, design and construction of transit priority bus lanes for two corridors: Sepulveda and Jefferson Boulevards. Work would be phased, beginning with the “Sepulveda Connects” Corridor. The timing of the Jefferson Corridor has not been determined.
On October 27, 2025, City Council approved the Guiding Principles for the Sepulveda Connects Project, in alignment with the City’s vision and guiding documents, including the 2045 General Plan. The project is currently in the conceptual design process, which includes community outreach and public design workshops. These data-driven and community identified corridor improvements will enhance bus speed and reliability for the busiest Culver CityBus route (Line 6/ Rapid 6), connecting travelers to major job centers, educational institutions, and other key destinations, and supporting multiple transit routes. These mobility improvements will also support transit services needed for the 2028 Olympics and Paralympic Games.
C. California State Transportation (CalSTA) Transit and Intercity Rail Capital Program (TIRCP) - $3,247,000
In April of 2023, the California State Transportation Agency (CalSTA) awarded the City of Culver City $3,247,000 as part of their Transit and Intercity Rail Capital Program (TIRCP) Round Six. The project has two main components: (1) The Jefferson Enhanced Transit Service and (2) a new microtransit service. The goals of the TIRCP program are to reduce greenhouse gas (GHG) emissions and increase transit ridership.
The Jefferson Enhanced Transit Service (JETS) component will procure five electric minibuses and associated infrastructure for a new high quality transit service on Jefferson Boulevard that will be added to the Culver CityBus system to provide frequent and convenient transit service to efficiently transport people to major commercial, office, and residential centers.
The second component is the purchase of six new vans for a microtransit service that could help fill gaps in fixed route transit service in Culver City neighborhoods. The goal is to establish an all-day and late-night microtransit service with city-owned electric vehicle fleet. Staff is working with CalSTA to potentially use funds to operate a “turn-key” system without purchasing additional vehicles, and instead operated by a third-party. A “turn-key” system could provide a more cost efficient model that is less dependent on limited yard capacity. Either method would require a procurement to be approved by City Council in the future.
The total reductions in GHG emissions from the project is estimated to be 5,000 MTCO2e.
To accept the award, City of Culver City must enter a Master Agreement between the agencies. As a prerequisite, the City must submit a Resolution authorizing and affirming the City’s willingness to accept grant funds from Caltrans, allow expenses funds for Grant-Awarded projects to be reimbursed, and give signing authority to execute the Master Agreement (MA) with Caltrans to a City designee, the City Manager. (See proposed Resolution attached to this staff report.)
D. Federal Highway Administration (FHWA) Surface Transportation Block Grant (STBG) Program - $500,000
On December 4, 2025, the SCAG Regional Council approved the Federal Fiscal Year 2026-27 and 2027-28 STBG/CMAQ funding recommendations for $1.25 billion across 132 projects within the SCAG region. The Surface Transportation Block Grant (STBG) program provides federal transportation funding for projects that preserve and improve the conditions and performance of highways, bridges, and public roads; pedestrian and bicycle infrastructure; and transit capital projects. The City of Culver City was awarded $500,000 in STBG grant funding for the “Culver City Transit Center Future Visioning Study.”
The goal of the study is to assess current and projected transit operational needs, evaluate the existing site and alternative locations, and develop recommendations for reconfiguration, improvement, or relocation. Additional emphasis will be placed on integrating zero-emission fueling infrastructure and enhancing the overall passenger experience.
E. Federal Transit Administration (FTA) Low-or-No Emissions Grant - $14,450,000
On December 2, 2025, the Federal Transit Administration (FTA) awarded the City of Culver City Transportation Department $14,450,000 as part of their FY25 Low or No Emission grant program. The funding will support the Culver CityBus Replacement Project, with a total 15% local match commitment in the amount of $2,550,000. The Culver CityBus Replacement Project will replace up to 17 renewable compressed-natural-gas (rCNG) buses in the Culver CityBus fleet that have exceeded their useful life. A large portion of the current Culver CityBus fleet is beyond the 12-year useful life benchmark for the industry. Older transit vehicles are increasingly prone to mechanical issues, leading to breakdowns and unplanned maintenance that can disrupt daily operations and increase operational and maintenance costs. Replacing buses that are beyond their useful life with new rCNG buses will help reduce these service interruptions, ensure a more dependable transit experience for riders, and reduce costs.
This project represents a comprehensive investment in Culver City’s transit future, including preparations for the LA 2028 Olympics. The effort is designed to improve environmental outcomes, strengthen operational resiliency, and meet both immediate and long-term service demands. City Council approval to accept this grant award will position Culver City to secure critical external funding and advance its strategic transportation and sustainability objectives.
FISCAL ANALYSIS
A. CMAQ Grant
The expected starting year of expenditure is dictated by the procurement of the five electric minibuses and the subsequent launch of the new high quality transit service on Jefferson Boulevard (JETS). Staff estimates approximately one and-a-half to two years to procure the vehicles, resulting in an expected starting year of expenditure of CMAQ funding in FY2028. The total estimated cost to operate the new JETS service over three years is $10,765,075. Of the total award amount, approximately 11.47%, or $1,234,754, would be provided by the Transportation Department using local transportation funds in compliance with the Grant’s 11.47% minimum local match requirement, and no General Fund monies would be required. The local match funding would be comprised of Prop A discretionary funds and Prop C MOSIP capital funds.
Through the ongoing Comprehensive Mobility Services Plan (CMSP) development, the Department is analyzing options to sustainably fund the JETS operating expenses following the conclusion of the 3-year CMAQ funding.
B. CRP Grant
Staff estimates the total cost to complete the project to be $1,891,165. Of the total award amount, 11.47%, or $216,917, would be provided by the Transportation Department using allocated Measure M local return funds in compliance with the Grant’s 11.47% minimum local match requirement, and no General Fund monies would be required.
C. TIRCP Grant
Staff estimates the total cost to complete the project to be $3,547,000, which is entirely comprised of vehicle procurement costs and a third-party microtransit operator. Of the total award amount, approximately $300,000 would be provided by the Transportation Department using local and regional transportation funds. No General Fund monies would be required. The $300,000 in local match funding would be comprised of $100,000 WSCCOG Measure M Multi-Year Subregional Program (MSP) funds and $200,000 Measure M and Measure R local return funds. Additionally, in order to maintain access to these funds, CalSTA has a deadline of June 2027 for Culver City to liquidate the funds.
D. STBG Grant
Staff estimates the total cost to complete the visioning study to be $564,780. Of the total award amount, 11.47%, or $64,780, would be provided by the Transportation Department using local transportation funds in compliance with the Grant’s 11.47% minimum local match requirement, and no General Fund monies would be required.
E. Low-No Emission Grant
Staff estimates the total cost to complete the project to be $17,000,000, which is entirely comprised of vehicle procurement costs. Of the total award amount, 15%, or $2,550,000, would be provided by the Transportation Department using local transportation funds in compliance with the Grant’s 15% minimum local match requirement, and no General Fund monies would be required. The $2,550,000 in local match funding would be comprised of Prop A local return funds as well as PTMISEA and Playa Vista deferred revenue.
Staff recommends Council approve related budget amendments recognizing the respective grant revenues and appropriating the funds for the corresponding expenditures and the local match requirements upon receipt of the fully executed grant agreements (four-fifths vote requirement).
ATTACHMENTS
2026-01-26 - ATT Resolution Authorizing the Execution of a Master Agreement, and Program Supplements for State-Funded Transit Projects
recommended action
MOTIONS
That the City Council:
1. Adopt a Resolution authorizing the execution of a master agreement and program supplements for state-funded transit projects;
2. Accept the five state and federal grant awards totaling $29,401,569 as set forth in this staff report;
3. Approve budget amendments to record the revenue and appropriate the local match funding for these projects upon receipt of the fully executed grant agreements (four-fifths vote required).
4. Authorize the City Attorney to review/prepare the necessary documents; and
5. Authorize the City Manager to execute such documents on behalf of the City.