STAFF REPORT
Meeting Date:
March 24, 2026
CONSENT
16 SUBJECT: RESOLUTION AUTHORIZING APPLICATION TO THE ORANGE COUNTY
TRANSPORTATION AUTHORITY FOR LOCAL TRANSPORTATION FUNDS RECOMMENDATION: It is recommended that the City Council:
1. Adopt the Resolution titled, “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LAGUNA BEACH CALIFORNIA, AUTHORIZING THE FILING OF ALL APPLICATIONS
WITH THE ORANGE COUNTY TRANSPORTATION AUTHORITY FOR LOCAL TRANSPORTATION FUNDS,” authorizing the City Manager to file an application and claim with the Orange County Transportation Authority for $1,480,411.10 from the Local Transportation Fund, and to file amendments as necessary due to budget adjustments or any changes in the City’s apportionment of Local Transportation Funds; and
2. Find said action not subject to the California Environmental Quality Act.
SUMMARY OF THE MATTER
Each year, the City must submit a claim to the Orange County Transportation Authority (OCTA) to access transit capital and operating dollars from the State’s Local Transportation Fund (LTF), which are passed through OCTA to the City. The City uses its LTF allocation to fund operating costs associated with trolley and on-demand transit services. In order to receive the Fiscal Year (FY) 2026-27 LTF funding, the City Council must adopt the attached resolution (Attachment 1) authorizing the City Manager to submit an application and claim form for access to said funds.
The LTF was established by the Transportation Development Act of 1971 and is derived from a ¼-cent general sales tax collected statewide. The LTF funding available to the City in FY 2026-27, referred to as the City’s “apportionment,” is projected by OCTA to be $1,480,411.10, but is subject to adjustment depending on actual sales tax revenues collected. This represents a $15,483.68 decrease from last year’s apportionment.
Following City Council approval, the City Manager will finalize and submit the LTF application and claim form, which will be processed by OCTA. The City will file application adjustments as necessary in response to budget adjustments or changes in the City’s LTF apportionment.
FINANCIAL ANALYSIS
The $1,480,411.10 in LTF funding, or as such amount may be subsequently amended, will be included as projected revenue in the Transit Fund as part of the City’s FY 2026-27 budget.
ENVIRONMENTAL ANALYSIS
The proposed actions do not constitute a project subject to the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines section 15060(c)(3). Section 15378 defines a project as an
RESOLUTION AUTHORIZING APPLICATION TO THE ORANGE COUNTY
TRANSPORTATION AUTHORITY FOR LOCAL TRANSPORTATION FUNDS March 24, 2026
activity that “has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” (State CEQA Guidelines, § 15378(a).) Here, the proposed actions are administrative in nature and merely authorize the City Manager to submit an application and claim form to receive LTF funding for the 2025-26 Fiscal Year. These actions do not involve physical alterations. Nor will such actions result in a direct or reasonably foreseeable indirect physical change in the environment. Section 15378 excludes from its definition of “project” organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.” (State CEQA Guidelines, § 15378(b)(5).) Here, the proposed actions are administrative in nature and will not result in a physical change in the environment, and it therefore is not subject to CEQA. (Ibid.) Accordingly, the recommended actions are not a “project” subject to CEQA. (State CEQA Guidelines, § 15060(c)(3).)
ATTACHMENTS
1. Resolution (Pgs. 3-5)
Submitted By: Alexis Braun Approved: .David A Kiff
Alexis Braun, Acting Director of
Transit and Community Services
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Alexis Braun, Acting Director of Transit and
Community Services
Michelle Bannigan, Finance Director