June 23, 2025 Lathrop City Council Special Meeting Agenda Page 1
CITY OF LATHROP
CITY COUNCIL SPECIAL MEETING
MONDAY, JUNE 23, 2025, 1:30 P.M.
COUNCIL CHAMBER, CITY HALL
390 Towne Centre Drive, Lathrop, CA 95330
AGENDA
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Notification 48 hours prior to a meeting will enable the City to make reasonable arrangements to ensure accessibility to that meeting [ 28 CFR 35 .102. 35.104 ADA Title II].
This public meeting will be conducted in person; all members of the City Council will attend in person. Members of the public are welcomed in person. This meeting will also be available for public participation by teleconference via ZoomGov at the following link:
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Meeting Webinar ID: Webinar ID 160 222 3411 / Passcode: 143604 If you are not able to attend the meeting in person or virtually - Public comment / questions will be accepted by email to City Clerk Teresa Vargas at website_ cco@ci. lathrop. ca. us or by calling ( 209) 941- 7230. Please reference the Agenda Item, and the date of the City Council Meeting, in your written communication.
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To address City Council in person, please submit a purple card to the City Clerk indicating name, address, and number of the item upon which a person wishes to speak.
Council Meetings are live- streamed ( with Closed Captioning) on Comcast Cable Channel 97, and on the City Council Webpage: https:// www. ci.lathrop. ca. us/ citycouncil/ page/ live- stream This meeting was called by a majority of the City Council per Government Code Section 54956.5. Members of the public interested in addressing the City Council during this Special Meeting may address the item( s), which have been described in the notice of this Special Meeting in accordance with Government Code Section 54954. 3( a).
1 June 23, 2025 Lathrop City Council Special Meeting Agenda Page 2
CITY OF LATHROP
CITY COUNCIL SPECIAL MEETING
MONDAY, JUNE 23, 2025, 1:30 P.M.
COUNCIL CHAMBER, CITY HALL
390 Towne Centre Drive, Lathrop, CA 95330
AGENDA
PLEASE NOTE: There will be no Closed Session. The Special Meeting will commence at 1:30 p.m.
1. PRELIMINARY
1.1 CALL TO ORDER
1.2 ROLL CALL
1.3 PLEDGE OF ALLEGIANCE
1.4 DECLARATION OF CONFLICT(S) OF INTEREST
2. CONSENT ITEM(S)
2.1 TRANSIT OPERATIONS AND CAPITAL BUDGET – FISCAL YEARS 2025- 2026 & 2026- 2027
Adopt Resolution Authorizing the Transit Operations and Capital Budget for Fiscal Years 2025-2026 and 2026-2027
3. ADJOURNMENT
Teresa Vargas/
Teresa Vargas, MMC
Government Services Director
City Clerk
2 ITEM 2. 1
CITY MANAGER' S REPORT
JUNE 23, 2025 CITY COUNCIL SPECIAL MEETING
ITEM: TRANSIT OPERATIONS AND CAPITAL BUDGET -
FISCAL YEARS 2025-026 & 2026-027
RECOMMENDATION: Adopt a Resolution Authorizing the Transit Operations and Capital Budget for Fiscal Years 2025-
2026 and 2026-027
SUMMARY:
The City of Lathrop recently started a microtransit service named " Lathrop Transit" and the City, through the assistance of a transit planning and management consultant has been assisting in obtaining the necessary funding sources to ensure that the City' s public transit services is using all available transit only funding that is allocated through local, state and Federal agencies.
Based on the proposed transit obligations for the upcoming two fiscal years, staff is projecting an operations budget of $ 1, 646, 319 in Fiscal Year 2025-6 and 1, 451, 388 in Fiscal Year 2026-7. For the capital budget, $1, 260, 000 in Fiscal Year 2025-6 and $ 100, 00 for Fiscal Year 2026-7.
BACKGROUND:
For the past three years, the City has worked to develop a public transit system to serve the City' s residents and visitors, as the population continues to increase and there has been a need to connect students to Lathrop High, as well as connect people to existing public transit services operated by San Joaquin Regional Transit District RTD), Altamont Corridor Express ( ACE) and the City of Manteca' s Manteca Transit.
In June, 2025, the City launched " Lathrop Transit" through an operating contractor, Unified Transit which is providing curb to curb microtransit service and two fixed routes connecting Lathrop students to schools operated by Manteca Unified School District.
In order to fund this operation, as well as capital needs, staff has prepared a biannual budget for the public transit system that could be incorporated into the City' s bi- annual budget recognizing available funding sources for the upcoming fiscal year, as well as new funding sources that would be available to the City in Fiscal Year 2026-
27. The overall transit budget takes into consideration new funding sources available to the City, that does not impact the General Fund or funding for bicycle, pedestrian, street and roadway purposes. For the first year, the City expects to use the Transportation Development Act ( TDA) Local Transportation Fund ( LTF) transit set - aside, Measure K, Measure C, fares and miscellaneous revenues. The City, RTD, San 3 CITY MANAGER' S REPORT
JUNE 23, 2025 CITY COUNCIL SPECIAL MEETING
TRANSIT OPERATIONS AND CAPITAL BUDGET
PAGE 2
Joaquin Regional Rail Commission ( SJRRC), San Joaquin Council of Governments SJCOG) and Federal Transit Administration ( FTA) are in discussions on an equitable distribution of FTA funds that would be allocated to support the City' s operational and capital needs. Upon resolution, the staff will return to City Council to authorize specific actions to become an FTA Direct Recipient to receive these funds which is projected to be about $ 600, 00. New funding sources will be introduced in Fiscal Year 2026- 27 once the City has been determined an " Operator" under the Public Utilities Code to receive TDA- State Transit Assistance ( STA), Low Carbon Transit Operations Program ( LCTOP), State of Good Repair ( SGR) and SB 125 Transit Program funding.
In addition, staff will claim the necessary LTF funds from SJCOG once this budget is adopted to ensure that the transit operational and capital costs are fully funded.
REASON FOR RECOMMENDATION:
The City is required to adopt a transit operations and capital budget for demonstrating financial capacity with FTA, as well as demonstrating to the California State Controller that the City is an " Operator" as defined in the Public Utilities Code.
FISCAL IMPACT:
Adopting a transit operations and capital budget for Fiscal Years 2025-6 and 2026- 27 will generate $ 2, 906, 319for Fiscal Year 2025-6 and $ 1, 551, 388 for Fiscal Year 2026-7 in revenues and expenses. The higher amount in Fiscal Year 2025-6 is due to start- upexpenses associated with the launch of the microtransit service as well as procuring capital investments to support the new transit operation.
ATTACHMENTS:
A. Resolution adopting the Operating and Capital Budget for Fiscal Year 2025- 26 and 2026-7.
B. Proposed Operating and Capital Budget for Fiscal Year 2025-6 and 2026-
27. 4
CITY MANAGER' S REPORT
JUNE 23, 2025 CITY COUNCIL SPECIAL MEETING
TRANSIT OPERATIONS AND CAPITAL BUDGET
APPROVALS:
4,( to/z5—
Thomas Hedegard Date
Deputy City Manager
Salvador Navarrete
City Attorney
c)/ / c)- 0c9s
Date
Stephen J. Salvatore Date
City Manager
PAGE 3
5 RESOLUTION NO. 25-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO
AUTHORIZE THE TRANSIT OPERATIONS AND CAPITAL BUDGET FOR FISCAL YEARS 2025-026 to 2026-027
WHEREAS, a preliminary budget request for Fiscal Years 2025-026 and 2026-026 has been submitted to the City Council of the City of Lathrop and such request and all sources of revenue have been thoroughly analyzed by City staff and studied by the City Council; and
WHEREAS, it is desirable and recommended that budget appropriations for Fiscal Year 2025-026 and 2026-026 be adopted at this time; and WHEREAS, the preparation of this budget is in accordance with appropriate City policies; and
WHEREAS, the preparation of this budget shall demonstrate financial capacity to the Federal Transit Administration, support the designation of an " Operator" with under the Public Utilities Code.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop does hereby adopt the transit operations and capital budget for Fiscal Years 2025-026 and 2026-027.
BE IT FURTHER RESOLVED that the City Manager, Director of Finance or designee shall be able to file and amend the FY 2024-025 TDA claim to SJCOG, to claim additional transit set aside to ensure that the transit operations and capital budget for Fiscal Year 2025-026 is fully funded.
6 The foregoing resolution was passed and adopted this 23rd day of June 2025, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney 7 ATTACHMENT " re
Revenues FY 25-6 FY 26-7 Notes
FTA Section 5307 500, 00 500, 00 TBD - negotiating with FTA, RTD FTA Section 5339 100, 00 100, 00 TBD - negotiating with FTA, RTD LTF 651, 39 475, 938 Use 50% transit set -a -side
LCTOP 22, 000 Possibly in FY26- 27
SGR 92, 700 Possibly in FY 26-7
SB 125 100, 00 Need to request funds in Phase 2
STA 99313 Need to change policy
STA 99314 5, 000 Possibly in FY 26-7
Fares 30, 000 30, 750 Bus Fares
Misc. Revenues 25, 000 25, 000 Advertising revenue for bus shelters Measure K 1, 500, 000 100, 00 Request to SJCOG
Measure C 100, 00 100, 00 Transportation Reserves ($ 411, 000 in reserves) SIVAPCD Grants Need to apply
Grand Total 2, 906, 319 1, 551, 388
Operating Expenses FY 25-6 FY 26-7 Notes
Personnel Services 291, 89 304, 950
10% City Manager' s
Office Cost Allocation, 10% Public Works
Administration Division Allocation, 5% Finance/ Accounting Oversight Allocation
Contractual Services 1, 277, 000 1, 067,00
Unified Transit, Transit Consultant, Bus Shelter Maintenance, park and ride lot maintenance ( Save Mart and Community Center)
Supplies and Materials 52,00 53, 813 Advertising, Operational Expenses, Membership, Telephone Fixed Chargers 25, 000 25, 625 City Overhead
Grand Total 1, 646, 319 1, 451, 388
Capital Expenses FY25- 26 FY26- 27 Notes
Complete Transit Study 25, 000
Consultant to finalize RTD' swork and incorporate into SRTP to meet SJCOG requirements
Bus Parking Area 350, 00 Establish a secure area for bus parking Purchase Vehicles 660, 00 See below
Replacement Bus Shelters 125, 000
For RTD Hopper stops on Louise Rd @ Harlan Rd ( EB), Louise Rd @ Lof Wy (EB), Lathrop Rd @ Harlan Rd ( WB), Harlan Rd @ Lathrop Rd ( SB), Harlan Rd @ Lathrop Rd ( NB)
Miscellaneous Transit Capital 100, 00 100, 00 Minor capital needs using FTA 5339 @ 80%, other funds @20% Grand Total 1, 260, 000 100, 00
Total of Operations & Capital 2, 906, 319 1, 551, 388
Vehicle Capital Costs
Item Qty Cost Total Cost
CAL ACT Class D Chevy Voyager Minivan 3 90, 000 270, 00 CAL ACT Class D RAM Promaster 2 180, 00 360, 00
Vehicle Branding 5 6, 000 30, 000
Total 660, 00
8