AGENDA CAPTION:
Title
Receive a Staff update on the transit partnership with Texas State University.
Body
Meeting date: October 7, 2026
Department: Public Works - Transit
Amount & Source of Funding
Funds Required: $0.00
Account or Project Number (C = CIP funds): N/A
Funds Available: N/A
Account Name: N/A
Fiscal Note:
Prior Council Action: Council Received a presentation June 6, 2023 during a work session. August 15, 2023 approval of Resolution 2023-137R allowing Texas State University to become a subrecipient of federal funds.
City Council Strategic Initiative: [Please select from the dropdown menu below]
Mobility & Connectivity
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Comprehensive Plan Element (s): [Please select the Plan element(s) and Goal # from dropdown menu below]
N/A Arts and Culture - Choose an item.
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N/A Environment & Resource Protection - Choose an item.
N/A Housing + Neighborhoods - Choose an item.
N/A Land Use + Community Design and Character - Choose an item.
N/A Parks & Public Spaces + Health, Safety & Wellness - Choose an item.
N/A Transportation - TR-2: Create a multi-modal, well-connected, and efficient transportation network that minimizes congestion, energy use, and climate pollutants
N/A Core Services
N/A Not Applicable
Master Plan: [Please select the corresponding Master Plan from the dropdown menu below (if applicable)]
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Background Information:
This presentation provides an update to the City Council on ongoing negotiations with Texas State University to share federal grant funds that support community transit improvements. Staff will review the history of this effort, outline the contributions of both parties, summarize recent agreements on major components, and present proposed next steps for the partnership.
The City and Texas State University have worked for many years to better coordinate the two transit systems serving San Marcos. In 2018, City Council formally established this goal through Strategic Initiatives, directing the City to become the Direct Recipient of federal transit funds and to develop a “seamless transit system” with Texas State. The City achieved Direct Recipient status on October 1, 2019, and the Multimodal Transportation initiative continued through 2020. This work was further supported by the Transit Master Plan adopted by Council in September 2020.
Texas State contributes significantly to the partnership by reporting its ridership to the National Transit Database (NTD). This reporting began in 2017 and has continued annually, generating $20.2 million in FTA 5307 Small Transit Intensive City (STIC) funds, as well as additional CARES Act and American Rescue Plan funding. The City would not have received these funds without the University’s voluntary NTD reporting.
Since the approval of Resolution 2023-137R, City Council has authorized three funding agreements with Texas State for the purchase of revenue vehicles for the Bobcat Shuttle fleet.
City and Texas State staff are now prepared to begin negotiations on how to allocate the STIC funds generated by the University’s reporting for Fiscal Years 2024, 2025, and 2026. Staff is seeking direction from Council on how to distribute the $9.3 million to improve transit service throughout the community.
Council Committee, Board/Commission Action:
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Recommendation:
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