2-3.1 Appendix A Attachment 1 – Draft MTC Short Range Transit Planning Guidelines.pdf

TFWG Item 10

TO: Transit Finance Working Group DATE: April 1, 2026

FR: Jonathan Singh

RE: Draft Guidelines for Short-Range Transit Plans (SRTP) in FY2027

Introduction to Short-Range Transit Plans

The purpose of a Short-Range Transit Plan (SRTP) is to serve as a management and policy document for the transit operator, provide information to MTC and the Federal Transit Administration that is needed to meet requirements for regional planning and funding, and provide a clear basis for the transit operator’s capital and operating budget. MTC requires transit operators to prepare, adopt, and submit an SRTP to MTC every four years to maintain eligibility for federal funding distributed by MTC. The SRTP helps align operators with transportation plans and projects throughout the nine-county Bay Area. These include the long-range Regional Transportation Plan (RTP) that is required by federal statutes and is part of Plan Bay Area, and a Transportation Improvement Program (TIP) which implements the RTP by programming federal funds to transportation projects contained in the RTP.

MTC prepares and updates Guidelines for the SRTP process to assist transit operators and agencies in preparing their plan. The purpose of this memo is to share key components of the SRTP Guidelines with transit operators to aid in the preparation of their plan. MTC staff will share final SRTP Guidelines with the TFWG after adoption (anticipated in June or August 2026). A limited amount of grant funding will be provided to each transit operator to cover all or part of the cost of producing the SRTP. Large operators will receive $60,000 each and small to medium-size operators will receive $40,000 each.

Key Components of SRTP Guidelines for FY2027

1. Schedule: All transit operators will submit an updated SRTP for FY2027. MTC staff anticipate that the Final SRTP Guidelines will be adopted by the Programming and Allocations Committee of MTC in June or August 2026. Transit operators will receive a copy of the Final SRTP Guidelines to aid in the preparation of the SRTP. MTC requires each transit operator to submit a draft SRTP to MTC for review and comment by March 31, 2027. Each transit agency board or governing body must adopt the final SRTP by August 31, 2027.

2. Coordination: The Counties of Contra Costa, Marin, Solano, and Sonoma are required to address the topic of coordination among operators based in their county. Each one has more than two small operators based in their county or multiple operators with overlapping service areas.

Counties and operators have two options to address the topic of coordination:

a. Complete a “consolidated” SRTP which combines the plans for all operators based in each county, like what Solano County did in the 2013 and 2016 SRTP cycles. A grant will be provided to each lead agency who participates in this consolidated SRTP process. The grant will be equal to the total amount that all operators participating in the consolidated SRTP process would have received individually. For example, if County Z does a consolidated SRTP that covers Operators A and B, the grants for Operators A and B will be added together and paid to County Z.

b. Produce an “add-on” report that addresses coordination at the county level in addition to individual SRTPs for each transit operator based in their county. An example is Sonoma County’s additional report on county coordination produced in 2019. This approach may be helpful in situations where operators serve multiple counties (for example AC Transit serving both Contra Costa and Alameda). A grant will be provided to each operator who participates in this SRTP process. Additional funding may be available for the lead agency to help cover the cost of the “add-on” report. In this example, Operators A and B each receive a grant to support their SRTP process. County Z also receives a separate grant to help pay the cost of producing the “add-on” report on behalf of Operators A and B.

3. Planning Horizon: Transit operators should analyze their present-day network in FY2027. Then they will be asked to provide a ten-year revenue forecast and operating plan covering FY2027 through FY2036.

4. System Overview: A brief qualitative discussion of changes to the transit system since the prior “reimagined” SRTPs were produced in FY2022 and anticipated future changes within the ten-year SRTP period (FY2027 through FY2036). Topics could include transit service provided (areas served, frequency, modes), fare structure, revenue fleet, and agency goals or policies.

a. Regional Coordination: As a new component of the System Overview, MTC asks operators to discuss their efforts regarding regional coordination with other transit operators, local jurisdictions, or private entities. Operators should also discuss their participation in activities led by MTC under the Regional Network Management framework (RNM) and their plans to support RNM initiatives.

5. Revenue Forecast: The FY2027 SRTP requires one revenue forecast and provides an option to produce a second revenue forecast.

a. Forecast Number One (required for all operators): A realistic or expected estimate of operating and non-operating revenues in FY2027 through FY2036. Operators programmed to receive funds from the Connect Bay Area sales tax measure should include those revenues, if the measure passes in November. If a transit operator’s ten-year projections assume a balanced budget in the future through expanded local revenue sources or expense reductions, please explain the assumptions underlying these projections.

b. Forecast Number Two (optional for all operators): Allows operators to plan for up to 125% of the revenues in “base” forecast number one. As an example, this optional scenario could be prepared by operators that plan to expand their system with anticipated new revenues or that project additional local funding which will enable increased service.

c. MTC will provide an Excel spreadsheet template which includes guidance on projecting future revenue growth for regional and local funding, state funding such as TDA and STA funds, fare revenues, and other assumptions that may affect revenue.

6. Operating Plan: The FY2027 SRTP requires each operator to submit one operating plan. The optional second plan applies to operators developing the optional second revenue forecast. This plan describes future service within the strict constraints of the revenue forecast. MTC will provide an Excel spreadsheet template with space to enter high-level details of the operating plan including service hours, service miles, and mode of service. The SRTP should include a qualitative discussion of the operating and service plan. This will address proposed changes to transit service, the effect on operating expenses caused by changes to service, and the effects on riders from any proposed reduction in service.

7. Capital Plan: MTC is requesting that each transit operator provide information on their capital asset plan. Operators should describe the capital programs that are necessary for the operating plan laid out in the SRTP.

a. Description of current vehicle fleet, including total number of vehicles in the active fleet and spare/reserve fleet, vehicle type, seating capacity, year of manufacture, power source, and other details. Also briefly discuss other capital assets such as stops/stations, buildings and facilities, equipment, or non-revenue vehicles. MTC encourages the use of existing fleet data submitted to other entities such as CARB Innovative Clean Transit, MTC Regional Transit Capital Inventory, or FTA fleet inventory data. Further details will be provided in the full SRTP Guidelines.

b. Describe and discuss policies or goals that cover vehicle replacement, vehicle rehabilitation or retrofit, and intended fleet expansion or reduction. Importantly, discussion of transit agency policy and plans regarding procurement of zero-emissions vehicles and charging infrastructure is required. Operators are encouraged to make use of existing documents and reports.

c. For planned vehicle fleet replacement, rehabilitation, or expansion, please discuss the characteristics of the vehicles to be added to the fleet. This will include total number of vehicles, vehicle type, seating capacity, year of manufacture, mode of power, estimated costs, and other details.

d. If applicable – Details on non-revenue vehicle procurement

e. If applicable – Major facilities: plans for replacement, upgrade, expansion, or rehabilitation

f. If applicable – Details on replacement or upgrade of tools and equipment

g. If applicable – Discussion of asset management programs and processes

Guidelines for Short-Range Transit Plans (SRTP) Transit Finance Working Group April 1, 2026

Introduction

• Purpose of SRTPs

• Plan transit service at regional level

• Management and policy document for transit agency

• Basis for transit operator’s capital and operating budgets

• Completed by all transit operators in nine-county Bay Area

• Grant funding available for transit operators

• SRTP Guidelines to be released later in 2026

Schedule

Apr 1, 2026 Preliminary Guidelines shared with

TFWG

Jun 10, 2026 PAC adopts

SRTP

Guidelines

(August alternate)

Aug 31, 2027 Agency boards adopt Final SRTPs

Apr 30, 2027

MTC

completes review of Draft

SRTPs

Mar 31, 2027 Draft SRTPs due

Nov 2026:

Results of

Connect Bay Area measure

Content of FY27 SRTP

1. Overview of current system in FY2027

2. Revenue Forecast for ten years, FY2027 – FY2036

• Required base scenario with a realistic estimate of operating and non-operating revenues, including Connect Bay Area revenues if applicable

• MTC to provide guidance on state and local funding, fares, ridership, etc.

• Optional scenario planning for revenue growth

3. Operating Plan for ten years, FY2027 – FY2036

• Service plan must fit within the constraints of the revenue scenario

• MTC to provide template to enter amounts of service provided by year

Content of FY27 SRTP

4. Capital Plan

• Inventory of current vehicle fleet and other capital assets

• Plans and associated costs for vehicle fleet changes and zero-emission transition

• Policies governing vehicle replacement, rehab, or fleet expansion

• Other information as needed

5. Focus on Coordination

• County transportation agencies in Contra Costa, Marin, Solano, and Sonoma are required to address the topic of coordination among operators based there

• CTAs can lead a “consolidated” SRTP with all operators or an “add-on” analysis to complement individual SRTPs

• All operators must discuss participation in Regional Network Management and other coordination activities

Thank You

• Questions or comments on SRTP Guidelines

• Contact Jonathan Singh at jsingh@bayareametro.gov mailto:jsingh@bayareametro.gov