The Orange County Transportation Authority (OCTA) offers grants to support programs/projects that enhance regional transit services, particularly in areas underserved by existing regional transit. The Measure M2 Project V Community-Based Transit/Circulators Program is a competitive program that provides funding to local agencies to establish local transit services, which complement regional bus and rail services in areas not adequately served by regional transit and that do not duplicate or compete with existing transit services. General Program Objectives are:

• To provide community transit service that is safe, clean, and convenient.

 • To encourage new, well-coordinated, flexible transportation systems customized to each community’s needs.

• To develop financially sustainable local transit services that complement regional bus and rail service.

• To meet transportation needs

See the attached Project V Program PPT for additional information.

The City  has applied for funding to Measure M2 Project V Community-Based Transit/Circulators Program in order to initiate a program for a shared ride-hailing service.  In accordance with OCTA guidelines, a draft resolution was included with the application, and formal approval of a resolution by the City Council is requested. 

The proposed  program will  provide residents with cost-effective, fixed-fee, shared rides via an all electric eco friendly fleet. The Garden Grove program will service essential connectors between the tourist district and key city activities. These include access points to significant activity areas like the SteelCraft Food Hall, the Garden Grove Civic Center, police and fire departments, and crucial city services. Additionally, the transit system will extend its reach to economic hubs such as Main Street and the GEM Theatre, Little Saigon, and Korea Town. A map detailing the proposed service area, along with existing bus routes, is attached.

If approved and the grant is awarded, the City will issue a request for proposals for a service operator to provide shuttle services in compliance with the grant.

A resolution approving the application and committing matching funds is required per OCTA's application requirements. If approved, staff anticipates moving forward with implementation, targeting a start date of July 1, 2024.

In order to have a competitive application staff proposes a 50 percent match amounting to $2.27M over 7 years which will be funded from the Garden Grove Tourist Improvement District Transit Funds.

It is recommended that the City Council:

• Adopt a Resolution approving the submission of the Project V application to OCTA for funding under the Project V Community-Based Transit/Circulators Program.