Provide operating assistance for the period of 7/1/25 to 6/30/26 to continue providing transportation services in the operation of the city of corona transit system

The Department of Transportation Federal Transit Administration awarded the City of Corona $2.854 million on February 23, 2026, under the Federal Transit Formula Grants program (CFDA 20.507) to provide operating assistance and capital cost contracting for the City of Corona Transit System during the period July 1, 2025, through June 30, 2026.

Of the total obligated amount, $914,189 funds capital cost contracting and $855,651 funds eligible operating assistance. The city contracts with MV Transportation for operation and maintenance of public fixed-route and demand-response services. MV Transportation is in the eighth year of a nine-year contract that began September 1, 2018. The eighth-year contract is estimated at $2.994 million; the federal capital funding covers 80 percent of the city's 40 percent eligible capital cost share, while the federal operating assistance funds a portion of the remaining 60 percent of contract costs after deducting estimated fare revenues and local cost share.

Place of performance is California. The ultimate completion date is December 30, 2026.

Purpose

The purpose of this grant is to provide operating assistance for the period of 7/1/25 to 6/30/26 to continue providing transportation services in the operation of the city of corona transit system.

Activities

The city of corona is hereby submitting this grant for $1769840 in section 5307 funds. Funds will be used to offset costs associated with FY25-26 operating expenses for contracted transportation services. The services are contracted with a third-party contractor who provides operation and maintenance of the city of coronas public fixed route and demand response services. MV transportation is the current contractor. They were awarded the contract on july 20 2018 for three (3) base years plus three (3) one-year options to renew. On may 15 2024 the contract was extended for an additional three years resulting in a nine-year contract. The contract for MV transportation started on september 1 2018. MV is currently in its eighth year of the contract. This grant would fund FY 25-26 (july 1 2025 through june 30 2026). The contract is eligible for capital cost contracting and operating assistance. The eighth-year contract is estimated at $2994922. The capital cost of contracting is eligible at 40% of the contract cost ($1197969) with federal funding at 80% of the eligible cost ($958375). This grant will fund $914189 of the $958375 eligible federal amount. The balance of $44186 is funded with grant CA-2025-088-00.the remaining 60% of the contract is eligible for federal operating assistance. Therefore the remaining 60% less fare revenues ($2994922 - $1197969 = $1796953 - estimate $85650 in fares and local share = $1711303) is eligible for operating assistance. The city is utilizing $855651 for operating assistance (less than the allowed maximum federal amount for FY2025 section 5307 apportionment of $928755). This grant would fund $914189 in capital cost of contracting and $855651 in eligible operating assistance with a total federal fund request of $ 1769840.

Expected outcomes

This grant will provide the necessary funds to continue to provide transportation services to the riding public. Without these funds the city will have a shortfall which will hinder the operation.

Intended beneficiaries

All current and future city of corona transit service riders will continue to benefit by being able to continue to use public transportation for their commute.

Subrecipient activities

The recipient does not intend to subaward funds.