STAFF REPORT
DEVELOPMENT SERVICES DEPARTMENT
DATE: December 2, 2025
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director
By: Alana Johnson, Transportation Services Manager
SUBJECT: RESOLUTION NO. 7667 AUTHORIZING SUBMITTAL OF THE FISCAL YEAR 2025-26 TRANSPORTATION DEVELOPMENT ACT – ARTICLE 4 CLAIM
FORMS TO RECEIVE CAPITAL AND OPERATING FUNDS FOR ARCADIA
TRANSIT
CEQA: Not a Project
Recommendation: Adopt
SUMMARY
Arcadia Transit is eligible to receive Transportation Development Act (“TDA”) – Article 4 funds to operate the City’s bus system. In order to receive TDA – Article 4 funds, the City of Arcadia is required to submit annual claim forms authorized by the City Council. It is recommended that the City Council adopt Resolution No. 7667 authorizing the City Manager to submit claim forms for F iscal Year 2025-26 TDA – Article 4 funds, which includes Local Transportation Fund ( “LTF”), State Transit Assistance (“STA”), and Senate Bill 1 (“SB 1”) funds, in the total amount of $600,873.
Once approved, the claim forms will be submitted to the Los Angeles County Metropolitan Transportation Authority (“Metro”) for processing.
BACKGROUND
The California State Legislature adopted the Transportation Development Act – Article 4 (Senate Bill 325) in 1971 to generate revenue from retail sales tax and gasoline/diesel sales tax , to fund public transportation projects. The funds are allocated by the Southern California Association of Governments ( “SCAG”) via the Local Transportation Fund and the STA programs , based on area population and Resolution No. 7667 – FY 25-26 TDA Article 4 Claim Forms December 2, 2025
transit fare revenue generated by an agency’s local transit system. Metro serves as the regional planning agency for Los Angeles County and administers and processes the funds to each participating municipal transit operator.
Local Transportation Fund ( “LTF”) revenue is derived from a one-fourth of one percent (0. 25%) tax on retail sales statewide , which is used for transportation planning and mass transit activity. The California State Board of Equalization returns the quarter cent to each County according to the amount of taxes collected in its jurisdiction. Eligible uses include public transit, program admin istration, transportation planning, pedestrian and bicycle facilities, special group transportation service, and rail passenger service. The City of Arcadia has been allocated $401,029 in LTF funds in Fiscal Year 2025-26 to operate Arcadia Transit.
The State Transit Assistance (“STA”) fund was approved in 1980 as a secondary source of revenue for S enate Bill 325, which is dedicated to public transit operation s and capital expenditures. STA revenue is generated from the statewide sales tax on gasoline and diesel fuels and is appropriated by the California State Controller’s Office to regional Transportation Planning Agencies (i.e., Metro) for formula allocation. The formula is calculated using 50% population count and 50% operator revenues for the prior fiscal year. The City of Arcadia has been allocated $98,177 in Fiscal Year 2025-26 in STA Funds for Arcadia Transit operations.
Senate Bill 1 (“SB 1”), the Road Repair and Accountability Act of 2017, was signed into law to augment the base of the STA program, essentially doubling the funding for this program. This law generates funds through increased fuel taxes and vehicle registration fees. The provisions of SB 1 included the establishment of a new State of Good Repair (“SGR”) program, which apportions funds per year by formula , directly to California’s transit operators and transportation agencies. This bill ensures continued maintenance and improvement of both operational funding and capital investments in California’s transportation system. The City of Arcadia has been allocated $73,893 in SB 1 STA funds, which will be used towards transit operations, and $27,774 in SB 1 SGR funds, which will be reserved for future capital purchases such as transit vehicles.
Resolution No. 7667 – FY 25-26 TDA Article 4 Claim Forms December 2, 2025
DISCUSSION
In order to receive TDA – Article 4 funds, the City of Arcadia is required to submit claim forms authorized by the City Council. Resolution No. 7667 authorizes the City Manager to submit claim forms for Fiscal Year 2025-26 TDA – Article 4 funds, which includes Local Transportation Fund, State Transit Assistance , and S B 1 funds, for a total amount of $600,873. Once approved, the claim forms will be submitted to Metro for processing.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), a s it can be seen with certainty that it will have no impact on the environment.
FISCAL IMPACT
The City of Arcadia will receive $401,029 in TDA – Article 4 LTF Funds, $98,177 in STA Funds, and $73,893 in SB 1 STA Funds for F Y 2025-26 to operate Arcadia Transit.
These funds are anticipated and included in the projections to operate Arcadia Transit successfully. Additionally, $27,774 in SB 1 SGR Funds will be reserved for future capital purchases.
RECOMMENDATION
It is recommended that the City Council determine that the proposed action is not a project under the California Environmental Quality Act (“ CEQA”); and adopt Resolution No. 7667 authorizing the submittal of the F iscal Year 2025- 26 Transportation Development Act – Article 4 Claim Forms to receive capital and operating funds for Arcadia Transit.
Resolution No. 7667 – FY 25-26 TDA Article 4 Claim Forms December 2, 2025
Attachment No. 1: Resolution No. 7667
Attachment No. 2: Draft Fiscal Year 2025-26 TDA Article 4 Claim Forms
Attachment No. 1
Public Transportation System Claim
CHECKLIST OF ITEMS FILED
FISCAL YEAR:
2025-26
C
LAIMANT: City of Arcadia DATE: December 2 2025
T
he items checked below are enclosed in connection with the claim filed herein:
X 1. Pages 1 and 2 for TDA and STA
( See instructions for completing the form in the instruction package).
X 2. Financial Statement (Table L-1)
( A separate table must be completed for each mode. The table should be consistent with the table included in the SRTP.)
X 3. Standard Assurances for Claimants
X 4. Governing Body Authorization
S ubmit a certified copy of a resolution or minute order.
5. Justification Statements
6. Proposed Commitment Statement(s)
C omplete when requesting long-term capital reserves.
X 7. Employee Retirement System Certification Statement
8. Proof of Funding Obligation
S ubmit tangible evidence of imminent need for capital reserve drawdowns.
9. Cooperative Agreement or Contract
S ubmit copies if applicable.
X 10. TDA Reserves Held by County Auditor (Table 2)
X 11. California Highway Patrol Certification (Pull Notice) C urrent within 13 months.
Attachment No. 2
LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY
PUBLIC TRANSPORTATION CLAIM
STANDARD ASSURANCES FOR APPLICANTS
FOR LOCAL TRANSPORTATION FUNDS (LTF) AND
STATE TRANSIT ASSISTANCE FUNDS (STAF)
Claimant: City of Arcadia Fiscal Year: 2025-26
PLEASE INITIAL ALL APPLICABLE PARAGRAPHS PURSUANT TO WHICH THE CLAIM IS BEING SUBMITTED.
MTA
TDA
GUIDE
SECTION Initial
1. CERTIFIED FISCAL AND COMPLIANCE AUDIT
Claimant certifies that it has submitted a
1.8.1 satisfactory, independent fiscal and compliance
1.8.3 audit, with required certification statement, to SCAG, MTA, and the Department of Transportation, pursuant to PUC Section 99245 and CAC Section 6664 for the prior fiscal year (project year minus two). Claimant assures that this audit requirement will be completed for the current fiscal year (project year minus one) and submitted to MTA no later than 120 days after the close of the fiscal year.
2. 90-DAY ANNUAL REPORT (STATE CONTROLLER'S REPORT)
Claimant certifies that it has submitted a State Controller's Report
1.8.2 in conformance with the Uniform System of Accounts and Records,
1.8.3 to SCAG, MTA, and the State Controller, pursuant to PUC Section 99243, for the prior year (project year minus two). Claimant assures that this report will be completed for the current fiscal year (project year minus one) and submitted no later than 90 days after the close of the fiscal year.
3. PART-TIME EMPLOYEES*
Claimant certifies that it is not precluded, by any contract entered
5.6.2b into on or after June 28, 1979, from employing part-time drivers or contracting with common carriers of persons operating under a franchise or license. Claimant further certifies that no person who was a full-time employee on June 28, 1979, shall have his or her employment, excluding overtime, reduced as a result of it employing part-time drivers or contracting with those common carriers. (PUC Section 99314.5c)
STANDARD ASSURANCES FOR APPLICANTS
MTA
TDA
GUIDE
SECTION Initial
4. FIFTY PERCENT EXPENDITURE LIMITATION
Claimant filing a claim pursuant to PUC Section 99268.1 certifies
2.2.1 that it was in compliance with PUC Section 99268 during the 1978-79 fiscal year, and further certifies that it will remain in compliance with that section during the project year.
5. REVENUE RATIOS FOR OLDER OPERATORS
Claimant filing a claim pursuant to PUC Section 99268.2
2.2.2 certifies that it will maintain for the project year that ratio of fare revenues and local support to operating cost which was maintained during the 1978-79 fiscal year, and further assures for the project year that it reasonably anticipates achieving the ratio of fare revenues to operating cost at least equal to the ratio maintained in FY 1978-79, or (a) 20 percent if serving an urbanized area, and (b) 10 percent if serving a nonurbanized area, whichever is greater.
6. REVENUE RATIOS FOR NEWER URBANIZED AREA OPERATORS
Claimant filing a claim pursuant to PUC Section 99268.3 certifies
2.2.2 that it will maintain for the project year at least that ratio of fare revenues and local support to operating cost which was maintained during FY 1978-79 if that ratio was greater than 20 percent; claimant further assures, for the project year, that it reasonably anticipates achieving a ratio of fare revenues to operating cost equal to or greater than 20 percent for the project year.
7. REVENUE RATIOS FOR NEWER NON-URBANIZED AREA
OPERATORS
2.2.2 Claimant filing a claim pursuant to PUC Section 99268.4 certifies that it will maintain for the project year at least that ratio of fare revenues and local support to operating cost which was maintained during FY 1978-79 if that ratio was greater than 10 percent; claimant further assures, for the project year, that it reasonably anticipates achieving a ratio of fare revenues to operating cost equal to or greater than 10 percent.
8a. REVENUE RATIOS FOR EXCLUSIVE SERVICES TO
ELDERLY AND HANDICAPPED
2.2.3 Claimant filing a claim pursuant to PUC Section 99268.5 certifies that, for the purpose of the claim, it provides services using vehicles for the exclusive use of elderly and handicapped persons.
STANDARD ASSURANCES FOR APPLICANTS
MTA
TDA
GUIDE
SECTION Initial
8b. REVENUE RATIOS FOR PARATRANSIT SERVICES
Claimant filing a claim pursuant to PUC Section
2.2.3 99275.5c (Article 4.5) further certifies that, for the project year, it reasonably anticipates achieving the performance criteria, local match requirements, or fare recovery ratios adopted by MTA.
9. EXTENSION OF SERVICE
Claimant that received an allocation of Local Transportation
1.8.4 Funds for an extension of service pursuant to PUC Section 99268.8
2.2.5 certifies that it will file a report of these services pursuant to CAC Section 6633.8b within 90 days after the close of the fiscal year in which that allocation was granted.
10. RETIREMENT SERVICE
Claimant filing a claim pursuant to PUC Section 99260 certifies
2.1.7 that: (a) the current cost of its retirement system is fully funded with respect to the officers and employees of its public transportation system; or (b) the operator is implementing a plan approved by the transportation planning agency which will fully fund the retirement system for such officers and employees within 40 years; or (c) the operator has a private pension plan which sets aside and invests, or on a current basis, funds sufficient to provide for the payment of future benefits, and which is fully compliant with the requirements stated in PUC Sections 99272 and 99273.
11a. USE OF FEDERAL FUNDS
Claimant filing a claim for TDA funds for capital intensive projects
2.2.1 pursuant to PUC Sec. 99268.7 certifies that it has made every
2.2.8 effort to obtain federal funding for any project which is funded pursuant to PUC Sec. 99268.7.
11b. Claimant qualifying for funds pursuant to PUC Sec. 99268.1 and filing a claim for TDA funds in excess of the amount allowed
2.2.1d under PUC Sec. 99268 certifies that such funds are required in order to obtain maximum federal operating funds in the year such funds are claimed, pursuant to PUC Sec. 99267.5 and CAC Sec. 6633.1.
STANDARD ASSURANCES FOR APPLICANTS
MTA
TDA
GUIDE
SECTION Initial
12. CHP CERTIFICATION
Claimant filing a claim for Local Transportation Funds has included
2.2.9 in the claim a certification completed within the last 13 months by the California Highway Patrol indicating compliance with Vehicle Code Section 1808.1, indicating that the operator has participated in a "pull notice system" to examine driver's records, as specified in PUC Sec. 99251.
13. STA EFFICIENCY STANDARDS*
Beginning in FY 1992, claimant filing a claim for State Transit Assistance Funds for operating purposes certifies that it has met the efficiency standards which limit cost per hour increases, pursuant to PUC Sec. 99314.6. This requirement is suspended until July 1, 2026.
14. REDUCED TRANSIT FARES
Claimants of TDA funds who offer reduced fares to senior citizens certify that: (a) The Federal Medicare Identification Card is sufficient identification to receive senior citizen reduced fares if such fares are available; and (b) A disabled person or disabled veteran identification card issued pursuant to subdivision (d) of Vehicle Code Sections 22511.5 or 22511.9 (whichever is applicable) is sufficient identification to receive disabled person reduced fares if such reduced fares are available.
*STA Claimants Only.
City of Arcadia
_________________________________________
Jason Kruckeberg, Assistant City Manager/
Development Services Director
CLAIM FORM
TDA CLAIM FORM
LTF PUBLIC TRANSPORTATION - ARTICLE 4
CLAIMANT: City of Arcadia
CONTACT PERSON: Alana Johnson TELEPHONE: (626) 574-5408
DATE: December 2, 2025 FISCAL YEAR: 2025-26 COUNTY STAFF: Los Angeles
PAYMENT RECIPIENT: City of Arcadia
ADDRESS: 240 W. Huntington Drive
Post Office Box 60021
Arcadia, CA 91066-6021
ATTENTION: Jason Kruckeberg
Assistant City Manager/Development Services Director
PURPOSE REQUESTED PAYMENT AND RESERVES AMOUNT
Article 4 1. Payment from FY Allocation -
PUC 99260(a) Operations $401,029
2. Amount placed in Capital Reserve from
current year allocation (Complete
Table 2) $__________________
3. Total FY 2026 funding mark (1+2) $401,029
Authorized Signature: ____________________________________________________ Jason Kruckeberg
Assistant City Manager/Development Services Director
CONDITION OF APPROVAL:
Approval of this claim and payment by the County Auditor to this claimant are subject to funds being available and to the provisions that such monies will be used only in accordance with the terms and conditions set forth by this claim.
CLAIM FORM
STATE TRANSIT ASSISTANCE FUND
STA Regular
Pursuant to Sections 6730-6735 of the California Administrative Code
CLAIMANT: City of Arcadia
CONTACT PERSON: Alana Johnson TELEPHONE: (626) 574-5408
DATE: December 2, 2025 FISCAL YEAR: 2025-26 COUNTY STAFF: Los Angeles
PAYMENT RECIPIENT: City of Arcadia
ADDRESS: 240 W. Huntington Drive
Post Office Box 60021
Arcadia, CA 91066-6021
ATTENTION: Jason Kruckeberg
Assistant City Manager/Development Services Director
PURPOSE REQUESTED PAYMENT AND RESERVES AMOUNT
( ) CAC, Section 6730 (a) 1. Payment from Unallocated - Operations $98,177 ______
( ) CAC, Section 6730 (b)
( ) CAC, Section 6730 (c) 2. Amount placed in Capital ( ) CAC, Section 6731 (a) Reserve from current year ( ) CAC, Section 6731 (b) allocation $___________________ ( ) CAC, Section 6731 (c) (Complete Table 2)
3. Total for 1 & 2 = STA Regular Allocation $98,177_____________
Authorized Signature: ____________________________________________________ Jason Kruckeberg
Assistant City Manager/Development Services Director
CONDITION OF APPROVAL:
Approval of this claim and payment by the County Auditor to this claimant are subject to monies being available and to the provisions that such monies will be used only in accordance with the terms and conditions set forth by this claim and SCAG Allocation Instructions.
CLAIM FORM
STATE TRANSIT ASSISTANCE FUND
SB1 STA and SB1 STATE OF GOOD REPAIR
Pursuant to Sections 6730-6735 of the California Administrative Code
CLAIMANT: City of Arcadia
CONTACT PERSON: Alana Johnson TELEPHONE: (626) 574-5408
DATE: December 2, 2025 FISCAL YEAR: 2025-26 COUNTY STAFF: Los Angeles
PAYMENT RECIPIENT: City of Arcadia
ADDRESS: 240 W. Huntington Drive
Post Office Box 60021
Arcadia, CA 91066-6021
ATTENTION: Jason Kruckeberg
Assistant City Manager/Development Services Director
PURPOSE REQUESTED PAYMENT AND RESERVES AMOUNT
( ) CAC, Section 6730 (a) 1. Payment from SB1 STA Funds Operations $73,893_____________
( ) CAC, Section 6730 (b)
( ) CAC, Section 6730 (c) 2. Amount placed in Capital ( ) CAC, Section 6731 (a) Reserve from current year ( ) CAC, Section 6731 (b) allocation (SB1 STA Funds) $___________________ ( ) CAC, Section 6731 (c) (Complete Table 2)
3. Total for 1 & 2 = SB1 STA Allocation $___________________
4. SB1 SGR Capital Funds $27,774_____________ (Complete Table 2)
5. Total for 1, 2, 3 & 4 = SB1 STA/SGR
Allocation $101,667_____________
Authorized Signature: ____________________________________________________ Jason Kruckeberg
Assistant City Manager/Development Services Director
CONDITION OF APPROVAL:
Approval of this claim and payment by the County Auditor to this claimant are subject to
monies being available and to the provisions that such monies will be used only in accordance with the terms and conditions set forth by this claim and SCAG Allocation Instructions.
Table L-1 (A)
HISTORICAL AND PROJECTED FINANCIAL STATUS
SOURCE AND APPLICATION OF CAPITAL FUNDS
BY YEAR OF EXPENDITURE ($ 000)
MODE:
SOURCE OF CAPITAL FUNDS: 2024 2025 2026
Audited Actual Planned
FEDERAL CAPITAL GRANTS
FTA Sec. 5309 (Sec. 3)
FAU Grants
FTA Sec. 5307(Sec. 9) 0 0 0
Other Federal (Assume 80/20 match) (Specify source)
STATE CAPITAL GRANTS AND SUBVENTIONS
TDA (ART 4) current from unallocated 0 0 0
TDA from prior years reserves
TDA (ART 8)
STA current from unallocated 0 0 0
STA from prior years reserve
SB1 SGR 0 0 0
Other State (Specify)
LOCAL CAPITAL GRANTS
System Generated
General Fund
Prop. A Local Return 0 0 0
Prop. A Discretionary Carry Over
Prop. C Discretionary
Prop. C Local Return
Prop. C 5% Security
Measure R Clean Fuel Bus Capital
Measure R 15% Local Return 0 0 0
Prop 1B PTMISEA Bridge Funds
Prop 1B Transit Security Bridge Funds
Other Local (Specify)
TOTAL CAPITAL REVENUE 0 0 0
TOTAL CAPITAL EXPENSES 0 0 0
Table L-1 (B)
HISTORICAL AND PROJECTED FINANCIAL STATUS
SOURCE AND APPLICATION OF OPERATING FUNDS
BY YEAR OF EXPENDITURE ($ 000)
SOURCE OF OPERATING FUNDS: 2024 2025 2026
Audited Actual Planned
FEDERAL CASH GRANTS AND REIMBURSEMENTS
FTA Sec. 5307 (Sec. 9) Operating
Other Federal (COVID Emergency – ARPA/CRRSAA) 984 0 0
STATE CASH GRANTS AND REIMBURSEMENTS
TDA Current from unallocated 560 463 401
STA Current from unallocated 114 150 98
Other State (Specify)
LOCAL CASH GRANTS AND REIMBURSEMENTS
Passenger Fares 8 8 8
Special Transit Service
Charter Service Revenues
Auxiliary Transportation Revenues
Non-transportation Revenues
Prop. A %40 Discretionary 241 233 263
Prop. A %25 Local Return 125 875 1,150
Prop. A Incentive fund
Prop. A Interest
BSIP 24 25 26
TSE
Base
MOSIP 69 69 77
Measure R 15% Local Return 83 584 767
Prop. C %5 Security 8 7 6
Foothill Mitigation 17 15 14
Measure M 20% - Bus Operations 222 188 170
Measure R 20% - Bus Operations 222 189 172
Other: Misc. Vehicle Loss 0 18 0
TOTAL OPERATING REVENUES 2,677 2,824 3,152
TOTAL OPERATING EXPENSES 2,677 2,824 3,152
TABLE 2
TDA
Total Capital Funds Reserved
for Future Payment (Total A & B):$___________________
(A) ( B )
PROJECT ANTICIPATED ANTICIPATED
DESCRIPTION EXPENDITURE EXPENDITURE
FY 2027 FUTURE YEARS
TABLE 2(B)
STA
Total Capital Funds Reserved
for Future Payment: $_________________________________
PROJECT ( A ) ( B )
ANTICIPATED EXPENDITURE
DESCRIPTION EXPENDITURE FUTURE YEARS
FY 2027
TABLE 2(C)
SB1 STA/SGR
Total Capital Funds Reserved
for Future Payment: $_________________________________
PROJECT ( A ) ( B )
ANTICIPATED EXPENDITURE
DESCRIPTION EXPENDITURE FUTURE YEARS
FY 2027
Future Bus Replacement $27,774