TO: Honorable Mayor and Members of the City Council
FROM: Tom Kisela, City Manager
1. Subject
title
Memorandum of Understanding with Anaheim Transportation Network for microtransit services.
body
2. Summary
Memorandum of Understanding with Anaheim Transportation Network to provide a one-time payment of $100,000 to help fund the operations of a microtransit service in Old Towne and surrounding neighborhoods.
3. Recommended Action
recommendation
1. Approve the agreement with Anaheim Transportation Network in the amount of $100,000 for microtransit services; and authorize the Mayor and City Clerk to execute on behalf of the City.
2. Authorize the following budget transfer of $100,000:
From: 952.9810.56020.20247 NW & SW Merged 2003 Taxable Bonds SAORA Capital
To: 952.9810.51780.00000 NW & SW Merged 2003 Taxable Bonds Other Contractual Services
end
4. Fiscal Impact
The estimated expenditure for this agreement is $100,000 and will be funded through:
952.9810.51780.00000 NW & SW Merged 2003 Taxable Bonds Other Contractual Services
5. Strategic Plan Goals
Goal 2: Be a fiscally healthy community
e: Create an environment to attract, retain, and expand economic opportunities.
Goal 3: Enhance and promote quality of life in the community
d: Maintain and improve multi-modal transportation throughout the City.
6. Discussion and Background
Old Towne Orange is a vibrant neighborhood with residents, businesses, community spaces, and Chapman University. Public investments in parking infrastructure, the Orange Metrolink Station, and other transportation infrastructure have supported its development into a shopping and dining destination that serves residents and visitors. The City is considering several policy options to support continued business development in the area, including parking management programs, increased parking supply, wayfinding signage, and improved parking enforcement.
In March 2023, the City entered into a Memorandum of Understanding (MOU) with the Anaheim Transportation Network (ATN) in partnership with the Orange Chamber of Commerce (Chamber) to deploy a microtransit service in and around Old Towne. The service would utilize ten all-electric, zero-emission, six-passenger neighborhood vehicles to transport riders from the Orange Metrolink Station to destinations throughout Old Towne and surrounding areas such as hospitals and medical facilities on South Main Street. The service would allow residents and visitors to park once for convenient access to the Plaza area, allow local students and faculty to leave their cars on campus or at residence halls, pick up Metrolink riders from the train station, and help employees get to work.
ATN has secured $270,850 from California State Transit Agency (CalSTA) that will cover the entire capital cost for the ten vehicles. They have also secured $391,000 in operational funding from the South Coast Air Quality Management District (AQMD) to operate the program for 18 months. The AQMD funding requires a local match of $195,000. The proposed MOU would provide $100,000 in City funding to help meet the local match and it is anticipated that the remaining $95,000 would be provided through a combination of sponsorships and advertising. Under the proposed MOU, the $100,000 in funding would only be disbursed upon execution of an operating agreement with the City.
If approved by the City, the funding commitment would allow ATN to begin the process for vehicle procurement and then work the City and the Orange Chamber of Commerce to determine stop locations, vehicle storage, signage, marketing, and other operating logistics. It is anticipated that the microtransit service could begin in early 2025.
7. ATTACHMENT
• Memorandum of Understanding with Anaheim Transportation Network