AGENDA CAPTION:
Title
Consider approval of Resolution 2026-192R, approving Amendment No. 2 to the 2023 Transit Funding Interlocal Agreement with Texas State University for the purpose of adjusting the funding split or allocation of Section 5307 Formula funds, Section 5307 Small Transit Intensive Cities funds, CARES Act funds and American Rescue Plan Act funds; authorizing the City Manager, or her designee, to execute the Amendment on behalf of the city; and declaring an effective date.
Body
Meeting date: October 20, 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: October 7, 2026 - Council received a presentation on the transit partnership and the proposed funding split for FTA funds. Council gave unanimous support for the proposed funding split proposal for fiscal years 2024 - 2028.
August 15, 2023 - Approval of Resolution 2023-137R
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Mobility & Connectivity
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Background Information:
This item follows the direction Council provided staff during the October 7th Work Session Presentation on the ongoing negotiations with Texas State University to share federal grant funds that support community transit improvements. During the October 7th presentation, Council received an update on the Transit Partnership with Texas State; a review of each organization’s Transit Asset Management Plan; a breakdown of the National Transit Database; and how Federal Transit Administration Funds are generated. Council gave unanimous direction in support for the proposed funding split outlined in Amendment NO. 2.
The City and Texas State University have collaborated for many years to better coordinate the two transit systems serving San Marcos. In 2018, the City Council formally reinforced this goal through its Strategic Initiatives, directing the City to become the Direct Recipient of federal transit funds and to work toward a “seamless transit system” with Texas State University.
The City achieved Direct Recipient status on October 1, 2019, and continued its Multimodal Transportation initiative into 2020. This effort was further supported by the Transit Master Plan adopted by Council in September 2020.
Texas State University plays a key role in this partnership by voluntarily reporting its ridership to the National Transit Database (NTD). This reporting, which began in 2017, has generated $20.2 million in Federal Transit Administration 5307 Small Transit Intensive City (STIC) funds, along with additional CARES Act and American Rescue Plan funding. The City would not have received these funds without the University’s participation.
Since the approval of Resolution 2023-137R, the City Council has authorized three funding agreements with Texas State to purchase new revenue vehicles for the Bobcat Shuttle fleet.
City and Texas State staff are proposing allocation the STIC funds generated by the University’s reporting for Fiscal Years 2024, 2025, 2026, 2027 and 2028.
Council Committee, Board/Commission Action:
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Alternatives:
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Recommendation:
Staff recommends approval.