Cov txheej txheem txog California State of Good Repair (SGR) Program rau nyiaj pab txhawb Department of Transportation Fresno Area Express (FAX) yuav cov tsheb uas tsis muaj nyiaj tau los: 1. Txais ib qho kev nrhiav pom txais ib qho kev nrhiav pom tias qhov haujlwm no tsis tau tshuaj xyuas ib puag ncig raws li California Environmental Quality Act (CEQA) raws li Guidelines Section 15061(b)(3) 2. ***RESOLUTION - Tso cai xa ib qho kev thov allocation yuav cov tsheb uas tsis muaj nyiaj tau los thiab txais nyiaj pab txhawb los ntawm California State of Good Repair (SGR) program, txais tus npe ntawm FY 2026-27 project list, thiab tso cai ua ntaub ntawv npaj (Subject to Mayor's Veto)

REPORT TO THE CITY COUNCIL FROM: GREGORY A. BARFIELD, M.A., Director Department of Transportation BY: ELIZABETH TORRES, Senior Management Analyst Department of Transportation SUBJECT ..Title Actions related to the California State of Good Repair (SGR) Program for funding to conduct Department of Transportation Fresno Area Express (FAX) purchase non-revenue vehicles: Adopt a finding adopt a finding that the proposed project is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Guidelines Section 15061(b)(3) ***RESOLUTION – Authorizing submission of an allocation request to purchase non-revenue vehicles for and acceptance of funding from the California State of Good Repair (SGR) program, approving the associated FY 2026-27 project list, and authorizing execution of grant documents (Subject to Mayor’s Veto) ..Body RECOMMENDATION Staff recommends Council find that the project is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15061(b)(3) (the "Common Sense Exemption"), as it can be seen with certainty that the routine procurement of vehicles has no potential to cause a significant effect on the environment, and resolution authorizing the Department of Transportation to submit a project description to the California State of Good Repair (SGR) Program seeking funding $1,508,806 to purchase non-revenue vehicles, authorizing the Director of Transportation Fresno Area Express (FAX) or designee to execute and file all necessary documents to accept funds on behalf of the City. EXECUTIVE SUMMARY The Department of Transportation seeks Council approval of the attached resolution authorizing the Director or designee to submit a project description to the SGR program seeking funding, and to execute and file the associated required project proposals, grant approval documents, and other documents required by the State of California on behalf of the City for the SGR Program. With this funding, FAX seeks to purchase non-revenue vehicles. BACKGROUND Senate Bill 1, known as the Road Repair and Accountability Act of 2017, was established in 2017 (Chapter 5, Statutes of 2017) to provide funding to repair highways, bridges, and local roads to make strategic investments in congested commute and freight corridors and to improve transit service. A portion of SB-1 provides approximately $105 million annually to transit operators in California for eligible transit maintenance, rehabilitation, and capital projects. This investment in public transit is called the State of Good Repair (SGR) Program. The SGR Program is funded from a portion of a new Transportation Improvement Fee on vehicle registrations due on or after January 1, 2018. A portion of this fee will be transferred to the State Controller’s Office (SCO) for the SGR Program. In collaboration with the SCO, Caltrans is tasked with the management and administration of the SGR Program. These funds will be allocated under the State Transit Assistance (STA) Program formula to eligible agencies pursuant to Public Utilities Code (PUC) section 99312.1. This program demonstrates California commitment to clean, sustainable transportation, and the vital role that public transit plays in this vision. While SB-1 addresses a variety of transportation needs, this program has a specific goal of keeping transit systems in a state of good repair, including the purchase of new transit vehicles and related equipment, and maintenance and rehabilitation of transit facilities and vehicles. These new investments will lead to cleaner transit vehicle fleets, increased reliability and safety, more efficient transit service, and reduced greenhouse gas emissions and other pollutants. SGR funding is to be used for Capital construction costs only, and cannot be utilized for any operating, fare subsidy, or planning/design phase expenses. FAX will purchase non-revenue vehicles to include bus stop maintenance trucks, transit supervisor vehicles, and transit patrol vehicles: to replace aging fleet used to clean, maintain, patrol and repair bus stops, shelters, and stations throughout the FAX service area. The department anticipates annually submitting project lists to Caltrans for available SB-1 SGR funding. These anticipated revenues and corresponding appropriations will be included in the department’s proposed budget each fiscal year, or the department will return to Council to request the appropriations. ENVIRONMENTAL FINDINGS Staff performed a preliminary environmental review and determined that the project is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) (the "Common Sense Exemption"). It can be seen with certainty that there is no possibility that vehicle procurement may have a significant effect on the environment, as the activity involves only the routine replacement or acquisition of fleet vehicles to maintain existing operations with no expansion of service. LOCAL PREFERENCE Local preference was not considered because this resolution does not include a bid or award of a construction or services contract. FISCAL IMPACT This request will have no impact to the General Fund as the SGR project is 100% state funded. Attachment: Resolution