AGENDA CAPTION:
Title
Consider approval of Resolution 2026-161R, approving the Transit Asset Management Plan and establishing fiscal year 2027 performance targets for the City of San Marcos Public Transit Services and vehicle assets in accordance with 49 CFR Part 625; and declaring an effective date.
Body
Meeting date: September 15, 2026
Department: Public Works
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 approved TAM plan for FY 2024 targets on October 17, 2023. TAM plan FY 2025 targets were approved on August 20,2024. TAM plan for FY 2026 September 16, 2025.
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Background Information:
The item before the Council supports the City’s ongoing responsibilities as a direct recipient of Federal Transit Administration (FTA) funding. Federal regulations require transit providers to maintain a Transit Asset Management (TAM) Plan and adopt updated performance targets each year.
As the direct recipient for the San Marcos Urbanized Area, the City manages the long-term planning and replacement of key transit assets. The TAM Plan serves as the City’s blueprint for overseeing buses, facilities, and other capital assets throughout their life cycle. This framework guides how assets are purchased, maintained, inspected, rehabilitated, and ultimately replaced, helping the City make informed decisions, reduce risk, and plan for future needs.
While Capital Area Rural Transportation Systems (CARTS) handles day-to-day maintenance of transit vehicles operating in San Marcos under the current interlocal agreement, the City is responsible for replacing vehicles once they reach the end of their federally defined useful life. The TAM Plan ensures this process is predictable, transparent, and aligned with federal requirements.
Each year, transit providers must adopt performance targets that reflect the current condition of their fleet and facilities. Upon Council approval, these updated targets will be submitted to the Capital Area Metropolitan Planning Organization (CAMPO) and the Texas Department of Transportation (TxDOT) as required.
The TAM Plan provides several administrative advantages, including:
• A complete and current inventory of buses and facilities
• Clear assessments of asset condition to support repair and replacement schedules
• Benchmarks for monitoring the remaining useful life of vehicles
Key benefits for the community include:
• Improved safety and reliability of transit service
• Data-driven decisions for capital investments
• Enhanced competitiveness for federal grant funding
• Long-term planning that manages costs and supports a sustainable transit system
Additional Information Regarding Transit Funding: Previous Question & Answer information from the September 1st Agenda
On September 1, City Council approved a contract with Capital Area Rural Transportation System (CARTS) to provide transit services in San Marcos. Prior to this meeting, City Council had questions regarding the contract. The following questions and responses are provided below as background:
Question:
Please provide a breakdown of the $2,489,447 proposed CARTS funding by source, including the amount attributable to Section 5307, Section 5310, Section 5339, state funds, City local match, prior-year/carryover funds, and any other source.
Response:
The breakdown by source is as follows:
- $273,635.00 Federal Transit Administration (FTA) American Rescue Plan grant funding
- $1,077,906.00 - FTA section 5307 Small Urbanized Area grant funding
- $285,805.00 - TxDOT-PTN Urbanized Area grant funding (Texas Department of Transportation Public Transportation Division)
- $792,101.00 - General fund
- $60,000.00 - Interurban Express fares (projected and from route 1517)
The City does not currently receive FTA section 5310 funding.
FTA Section 5339 funding may only be utilized for the purchase of busses or bus facilities.
Question:
Please also identify which amounts are currently programmed specifically for CARTS operations versus funds that could legally be programmed for another eligible transit project.
Response:
The FTA section 5307, American Rescue Plan, and TxDOT-PTN grant funds are currently programmed for purchased transit operations and maintenance for the San Marcos urbanized area. Those transit services are provided by CARTS, on behalf of the City. The transit services include local fixed route bus service, paratransit (door to door demand-response) service for eligible participants and Interurban Express service from San Marcos to Austin with return trips.
Additionally, please evaluate whether the City could program a portion of its Section 5310 and/or Section 5307 funding for an on-demand transportation program, including transportation vouchers or contracted transportation services, without jeopardizing the City’s existing federal funding.
The City does not currently receive FTA Section 5310 funding.
FTA defines public transportation in 49 U.S.C. 5302 as regular, continuing shared-ride surface transportation services that are open to the general public or a segment of the general public defined by age, disability, or low income. Public transportation generally includes transportation services provided by buses, heavy rail, light rail, commuter rail, hybrid rail, bus rapid transit, passenger ferryboats, trolley buses, inclined railways, people movers, vanpools, streetcars, jitneys, and aerial tramways. Public transportation can be either fixed route or demand-response service but excludes intercity passenger rail provided by Amtrak, intercity bus service, charter bus service, school bus service, sightseeing services, courtesy shuttle services provided by individual businesses, and intra-terminal or intra-facility shuttle services.
Before introducing a new transit service, such as an on-demand service zone, the City must complete a public participation process, as defined by the FTA, and the proposed service must be formally adopted by the City Council in a planning document. City staff is currently engaged in the Transit Development Plan process, and the City Council may consider adoption upon completion of the Plan. The FTA requires all direct recipients of federal transit funding to complete a Transit Development Plan every five years. Federal funding (including FTA section 5307 funds) cannot be used for a new transit service until the requirements are met.
To satisfy the public participation requirement, staff is evaluating on-demand service options as part of the ongoing update to the Transit Development Plan. Public outreach for the Transit Development Plan is scheduled to begin in September and will include a community survey and a variety of open-house events.
There are two rounds of public outreach scheduled for this plan:
- September 2026: Round one - to gather existing conditions information.
- February 2027: Round two - to propose service changes and get feedback.
Question:
After reviewing responses on the message board, there is a mention of updates to the Transit Development Plan. Related to the proposed service changes, will this address potential changes to routes, schedule, shelters, in addition to potential on-demand options? I see section 5 of the agreement outlines that the City has a role in scheduling and route changes.
Response:
Yes, we will review all the topics outlined above. Any proposed changes to the transit program will be guided by public participation to ensure the system reflects the community’s needs. The City maintains full administrative authority over routing and scheduling, and CARTS operates the service based on our direction.
Question:
Additionally, have there been any surveys collected or conducted that detail rider experience with the “Real Time Bus Tracker”?
Response:
Yes, we have received 17 responses and have gotten good feedback.
Question:
Has there ever been any discussion about pursuing funding for the creation of an app or in-person digital screen depicting bus tracking? I’ve seen Austin has some of these screens on certain stations equipped for the infrastructure.
Response:
Yes, we have been working through grant applications. While we haven’t had success yet, we will continue to pursue a resolution.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Staff recommends approval.