Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Microtransit topic
No spam. Unsubscribe anytime.
Milpitas approves $300,000 bridge funding to keep ‘Milpitas Smart’ microtransit running until VTA grant decision
Summary
The council authorized a $300,000 one‑time appropriation to continue the Milpitas Smart microtransit service pending the Santa Clara VTA’s grant awards; staff said the funding could be credited toward local match if the city receives the VTA Measure B award.
The Milpitas City Council on June 17 approved a one‑time $300,000 allocation to bridge operations of the Milpitas Smart microtransit service until the Santa Clara Valley Transportation Authority announces Measure B grant awards in fall 2025.
Community Development Director Jay Lee and project staff told the council that average monthly operating costs (excluding an anomalous strike month) are roughly $101,000 and average monthly revenue about $5,000, and that existing funds would carry operations only to early September without additional bridge funding.
Staff said the city applied for $2,766,114 in Measure B funds to continue service for 18 months and proposed integrating autonomous vehicles (AVs) to reduce long‑term operating costs; the proposed grant included a 20% local match requirement. Lee said much of the local match could be in‑kind staff time, which VTA counts toward match, and that VTA has indicated awards may be retroactive so bridge funding could be reimbursed or credited.
Council and staff reviewed program performance: average monthly ridership rose to about 5,282 passengers in 2025 (excluding March during the VTA strike) and roughly 75% of rides were used by disadvantaged or transit‑dependent populations (youth, seniors, low‑income, persons with disabilities). Staff said a turnkey hourly rate of about $71 per vehicle revenue hour yields the current per‑month operating cost given the fleet’s weekly schedule; the program runs seven vehicles and increased service during the VTA strike.
Public comment praised the program’s value to seniors and mobility‑dependent riders. Councilmember Chua moved to approve bridge funding per staff recommendation; the motion passed 5‑0 (Barbadillo — aye; Chua — aye; Lam — aye; Lian — aye; Mayor Montano — aye).
Staff said next steps include negotiating amendments to agreements with VTA and the vendor, pursuing AV demonstrations if funded, and pursuing sponsorships and fare strategies to improve long‑term financial sustainability.
