REPORT TO THE CITY COUNCIL October 10, 2019 FROM: GREGORY A. BARFIELD, Director Department of Transportation BY: CAROLINA ILIC, Planning Manager Department of Transportation/Planning Division SUBJECT ..Title Approve Amendment No. 1 to the Measure C New Technology Grant Agreement with Fresno County Transportation Authority for the FAX Microtransit Pilot Project ..Body RECOMMENDATION Staff recommends Council approve Amendment No. 1 to Agreement to Establish Program Eligibility and Funding Requirements for Measure C New Technology Grant Agreement with Fresno County Transportation Authority for the FAX Microtransit Pilot Project, revising the budget to reflect an increase of $380,000 from other FAX operating funds and timeline to add three months for implementation. EXECUTIVE SUMMARY On December 6, 2018, Council approved a funding agreement with the Fresno County Transportation Authority (FCTA) for a 2018/19 Measure C New Technology Reserve Grant Program for $500,948 to implement a one-year Microtransit Pilot Project. Similar to Uber and Lyft, Microtransit is a form of "on-demand" transportation service that capitalizes on emerging technologies and offers customers real-time flexible transit in smaller vehicles. Preparation to deploy the pilot project has resulted in the need for modifications to the grant agreement to reflect additional costs for staff training and additional time necessary to begin program implementation. Council is requested to approve Amendment No. 1 to the Measure C New Technology grant agreement for the FAX Microtransit Pilot Project. If approved, the amended grant agreement would be presented to the FCTA Board of Directors in October 2019. The Microtransit Pilot Project, branded as "FAX Connect: On-Demand Transit," will be highlighted at as an agenda item during a Council workshop on September 19, 2019. BACKGROUND The Measure C Transportation Expenditure Plan includes the New Technology Reserve Fund. The program is administered by the Fresno Council of Governments (COG) in conjunction with the FCTA. The purpose of the program is to fund advanced transit and transportation projects that have the potential for broad benefits to Fresno County residents and will assist the region in meeting its air quality goals. In 2018, FAX applied for and received a $500,948 Measure C New Technology Grant to implement a one-year Microtransit Pilot Project. Similar to Uber and Lyft, Microtransit is a form of "on-demand" transportation service that capitalizes on emerging technologies and offers customers with real-time flexible transit. Microtransit projects use smaller vehicles and are focused in service areas that provide limited fixed-route transit. Passengers can take Microtransit anywhere within the defined service area and can connect to fixed-route transit stations at the perimeter of the service area, helping to address the first-mile and last-mile transportation gap at the start and end of trips. This is a new and emerging way to provide transit service to areas that have limited fixed-route transit service using a flexible, cloud-based microtransit software system. Passengers can download a mobile application that can be used to book a trip, see the cost of the trip, track the vehicle, and know in real time when their minibus will be available. Passengers can also call FAX to schedule their trip instead of using the mobile app. Initially, FAX anticipated operating the one-year demonstration project using contracted services; however, the Microtransit service will be operated using FAX drivers, which means all drivers will need to be trained. The proposed Amendment No. 1 reflects additional funding to train staff, as well as updating the timeline to allow three more months for implementation, from March to June 2020. The original grant proposal estimated that the operating portions of the project would cost $500,948, including the software license. Updated calculations anticipate that the operating and capital portions of the project will cost up to $605,000, based upon final labor, capital, and maintenance costs, pending variability of service demand. The City of Clovis has generously donated three cutaway vehicles for use in the program, which helps FAX meet the capital needs associated with project. FAX will use Measure C funds to cover the additional costs. Service in the northwest area is scheduled to begin on March 2, 2020, and service in the northeast area is scheduled to begin on June 8, 2020. Amendment No. 1 has been approved as to form by the City Attorney's Office. ENVIRONMENTAL FINDING This is not a "project" for purposes of CEQA, pursuant to CEQA Guidelines section 15378. LOCAL PREFERENCE Local Preference was not applied because this project does not include a bid or award of a construction or service contract. FISCAL IMPACT There is no impact to the FY20 General Fund from this action. FAX received a $500,948 grant to implement the Microtransit project and will use other budgeted operating dollars to provide the additional funds of $380,000 needed to implement the pilot service in the two service areas. The vehicles will come from donated cutaways from the City of Clovis, retired Handy Ride vehicles, and/or vans in the current FAX fleet. Attachment: Amendment No. 1 - FAX Microtransit Pilot Project