Agenda Item Wording:
title
Authorization to submit allocation request for V-LINE transit service - Authorization to submit two (2) allocation requests in the total amount of $489,061 to the California Department of Transportation Low Carbon Transit Operations Program for operating funds to continue funding the V-LINE operations and approve the funds to be appropriated when the grant is awarded (Resolution No. 2026-71).
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Agenda Date: 10/19/2026
Prepared by:
David Chang, Financial Analyst, David.Chang@Visalia.gov, (559)713-4526
Angelina Baker, Transit Manager, Angelina.Baker@Visalia.gov, (559)713-4591
John Lollis, Assistant City Manager, John.Lollis@Visalia.gov, (559)713-4323
Department Recommendation:
Staff recommends that the City Council authorize staff to submit two (2) allocation requests in the total amount of $489,061 to the California Department of Transportation Low Carbon Transit Operations Program (LCTOP) for operating funds to continue funding the V-LINE operations and approve the funds to be appropriated when the grant is awarded (Resolution No. 2026-71).
Summary:
Staff is requesting authorization to submit two (2) allocation requests to the LCTOP grant program in cycle A for $297,854 and cycle B for $191,207 in the total amount of $489,061 to continue funding V-LINE operations.
Background Discussion:
The Low Carbon Transit Operations Program (LCTOP), established under Senate Bill 862, provides operating and capital assistance to transit agencies with the goal of reducing greenhouse gas emissions and improving mobility, with a focus on serving disadvantaged communities. Eligible projects include new or expanded bus or rail services, intermodal facility enhancements, and may include related equipment, fueling, and maintenance needs necessary to operate those services.
SB 862 provided for consistent appropriations of five percent (5%) of the annual auction proceeds from the Greenhouse Gas Reduction Fund (GGRF) to LCTOP. Historically, the program has offered one (1) allocation request per year, typically mid-year. Beginning this year, LCTOP has transitioned to a two-allocation cycle while maintaining the same annual funding amount, providing agencies additional flexibility in project timing and funding requests. It should be noted that in the State’s adopted 2026-27 Budget, GGRF funding for the LCTOP funding will transition going forward from a continuous appropriation to a percentage of actual cap-and-invest program auction revenues, potentially resulting in lower funding levels.
The V-LINE service began operations in November 2015 and provides intercity transit service connecting Visalia to Fresno. The service is considered an essential fixed-route operation and is funded through a combination of passenger fare revenue, Rural Transit & Intercity Bus Program funds (FTA Section 5311(f)), and allocations from LCTOP.
The V-LINE service operates a shuttle between Visalia and Fresno. The shuttle route includes stops at the Visalia Transit Center, the Visalia Municipal Airport, Fresno Yosemite International Airport, California State University Fresno (CSUF), and Courthouse Park (Fresno). The last stop is a major bus transfer point for Fresno Area Express (FAX) allowing passengers access to other Fresno destinations. V-LINE operates six (6) daily round trips (4am; 6am; 9am; 1pm; 4pm; 6:30pm) seven (7) days per week with a one-way full fare of $10. There is also a one-way discounted fare of $9 for students, seniors, disabled, and veteran riders. These one-way fares can be purchased on-board V-LINE shuttle buses, as well as at the Visalia Transit Center.
The clear benefits of the V-LINE service include the following:
•Improvement of the Air Quality in the San Joaquin Valley Air Basin
•Increased transportation options for low income, seniors, and disabled passengers
•Meeting multi-modal transportation needs with connections to other forms of transportation
•Increased educational opportunities for students seeking higher education.
•Increased access to specialized services not readily available in Visalia.
Fiscal impact including annual maintenance and operating costs:
The V-LINE service is currently funded using rider fares, FTA Section 5311(f), and LCTOP allocations. As the receipt of LCTOP funds for this project are uncertain, the City will continue to pursue other sources of funding for the V-LINE service. While other funding will be sought for this service, future allocations of Local Transportation Funds (LTF) are currently expected to be sufficient to supplement its operation as needed.
Prior Council Action:
03/21/2022-Authorization for allocation request LCTOP/VLINE 22-0112
04/17/2023-Authorization for allocation request LCTOP/VLINE 23-0123
05/06/2024-Authorization for allocation request LCTOP/VLINE 24-0164
05/05/2025-Authorization for allocation request LCTOP/VLINE 25-0148
Alternatives:
Do not submit an allocation request and forfeit the funds.
Recommended Motion (and alternative motions if expected):
recommendation
I move to authorize staff to submit two (2) allocation requests in the total amount of $489,061 to the California Department of Transportation for funding from Low Carbon Transit Operations Program to continue funding the V-LINE operations and approve funds to be appropriated when the grant is awarded (Resolution No. 2026-71).
Environmental Assessment Status:
N/A
California Environmental Quality Act (CEQA) Review:
N/A
Deadline for Action: 10/19/2026
Attachments:
Resolution No. 2026-71
LCTOP FY25-26 Cycle A Allocation Request
LCTOP FY25-26 Cycle B Allocation Request
Strategic Goal: Indicates which City Strategic Goal(s) this item supports. Select all that apply.
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