AGENDA CAPTION:
Title
Consider approval of Resolution 2026-145R, approving a Subrecipient Funding Agreement with Texas State University under which the city will pass through Fiscal Year 2025 Section 5339 (c) Federal Transit Administration funds to Texas State University in the amount of $1,762,476.00 on a reimbursement basis for the purchase of vehicles for the Bobcat Shuttle Service; authorizing the City Manager, or her designee, to execute the agreement on behalf of the city; and declaring an effective date.
Body
Meeting date: August 18, 2026
Department: Public Works
Amount & Source of Funding
Funds Required: FTA: $1,762,476.00 // TXST: $311,026 // City: $0.00
Account or Project Number (C = CIP funds): Click or tap here to enter text.
Funds Available: Click or tap here to enter text.
Account Name: Click or tap here to enter text.
Fiscal Note:
Prior Council Action: August 15, 2023, Council approved an Interlocal agreement with Texas State University (Resolution 2023-137R) which details the sharing of Federal Transit Administration funds.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Mobility & Connectivity
Environmental Protection
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
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Background Information:
On August 15, 2023, the City Council approved an Interlocal Agreement with Texas State University (TXST), establishing TXST as a subrecipient of Federal Transit Administration (FTA) funds to support improved public transit service for the community. The agreement provides:
1. A framework for coordination between the City and TXST on transit operations and future project development using federal transit funds.
2. Identification of initial transit projects and associated funding amounts.
3. A standard subrecipient funding agreement template to be used for each future project approved for funding.
This funding agreement will be the third such funding agreement between the City and TXST.
To further leverage available federal transit funds, TXST applied for and was awarded a competitive grant through the FTA Section 5339(c) Low or No Emission Vehicle Program. This program supports the purchase or lease of zero-emission and low-emission transit buses. As the direct recipient of FTA funding, the City sponsored TXST’s application. This successful application for competitive grant funds is an achievement, with applications from transit agencies all fifty states competing for the grant funds dollars.
With this grant award, TXST plans to purchase two new 40-foot New Flyer low-floor, heavy-duty diesel-electric hybrid buses to replace aging vehicles in the Bobcat Shuttle fleet following TXST’s approved Transit Asset Management Plan. These buses comply with Clean Air Act requirements and will contribute to reducing greenhouse gas emissions within the community. Texas State is supplying the local match requirement for this grant. There is no financial cost to the City.
As a note, the Bobcat Shuttle service is open to the public and operates fare-free to San Marcos residents and visitors.
Benefits of this agreement:
• Improved bus rider comfort and safety
• Enhanced public transit service reliability and maintained schedules of operation
• Reduction in greenhouse gas emissions and improved air quality
• Reduced maintenance costs associated with aging fleet
• Maintains FTA requirements for transit asset management (TAM) plan
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Staff recommends approval.