ITEM 4. 3
CITY MANAGER' SREPORT
AUGUST 11, 2025 CITY COUNCIL REGULAR MEETING
ITEM: FIXED ROUTE FARE FREE PILOT PROGRAM FOR
LATHROP TRANSIT
RECOMMENDATION: Adopt Resolution to Approve Fixed Route Fare Free Pilot Program for Lathrop Transit through December
31, 2025
SUMMARY:
The City of Lathrop recently launched a new microtransit system that offers a flexible, on -demand transportation service aimed at improving mobility throughout the City.
There is also a fixed route component to the service called the " School Tripper" that runs in the morning and afternoon to ensure that students, parents, and school employees are able to get to school. This is not a school bus and is available to the public as well as the funding for this program cannot be restricted to school use only.
Staff is proposing a fixed route fare free pilot program through the end of calendar year 2025 to build ridership on the " School Tripper" route.
Fare free fixed routes make the microtransit system accessible to all potential transit riders in the community. This pilot program will allow the City to provide transit equitably, eliminating the fixed route fare can make a tangible difference for many riders. Eliminating fixed route fares injects money back into the local economy. Riders and families spending $ 30- 60 per month on fares today can instead invest those dollars back into their family, their homes, food, health care, and retail in Lathrop.
Without fare collection, microtransit van drivers can speed up service without pausing to verify reduced fare eligibility, or manage the collection and questions that can result at the time of fare payment.
The pilot program will also allow staff to collect data on ridership and utilization that may otherwise take years to materialize. By making the microtransit system as accessible as possible staff will be able to see the true demand that exists within Lathrop. The current fares collected on fixed route microtransit are de minimis to the overall funding of the system. The fare free pilot program meets the funding criteria for all revenue sources that the City currently uses to fund Lathrop Transit. The assumption of low fare revenue has been built into the microtransit systems operational budget. Impacts of this pilot program will be re- evaluated in Q4 2025 to determine if it is operationally and financially feasible to extend the program beyond December 31, 2025.
BACKGROUND:
The City of Lathrop recently launched a new microtransit system that offers a flexible, on -demand transportation service aimed at improving mobility throughout the City.
There is also a fixed route component to the service called the " School Tripper" that CITY MANAGER' SREPORT PAGE 2
AUGUST 11, 2025 CITY COUNCIL REGULAR MEETING
FIXED ROUTE FARE FREE PILOT PROGRAM FOR LATHROP TRANSIT runs in the morning and afternoon to ensure that students, parents, and school employees are able to get to school. This is not a school bus and is available to the public as well as the funding for this program cannot be restricted to school use only.
Staff is proposing a fixed route fare free pilot program through the end of calendar year 2025 to build ridership on the " School Tripper" route.
Fare free fixed routes make the microtransit system accessible to all potential transit riders in the community. This pilot program will allow the City to provide transit equitably, eliminating the fixed route fare can make a tangible difference for many riders. Eliminating fixed route fares injects money back into the local economy. Riders and families spending $ 30- 60 per month on fares today can instead invest those dollars back into their family, their homes, food, health care, and retail in Lathrop.
Without fare collection, microtransit van drivers can speed up service without pausing to verify reduced fare eligibility, or manage the collection and questions that can result at the time of payment.
Current fares to take a trip within the City are $ 2, with discounted fares of $ 1 for adults age 62 and older, youth/ students aged 17 or younger, and anyone who is ADA- eligible. The new service, operated by Unified Transit, provides convenient transportation through a fleet of branded Lathrop Transit vans driven by professionally trained drivers. Passengers can easily schedule affordable ($ 2 or $ 1) rides through a phone call, (wheelchair -accessible vehicles available upon request.) This professional transit service makes it simple for residents to reach work, shopping, medical appointments, and other essential destinations, proving particularly valuable for seniors, students, and residents without personal vehicles.
Current Lathrop Transit Fares:
Fixed Route Fares Dial - A -Ride & ADA Paratransit
One Way
I0 -Ride
Pass
1 -Day
Pass
One Way
10 -Ride
Pass
31 -Day
Pass
General ( 18-
61)
2 X18 45 2 18 45
Seniors, ADA,
Youth( 2-17)
1 9 30 1 9 30
Children
Under 2 ( with
accompanying
adult;
Free Free Free Free Free Free
CITY MANAGER' S REPORT PAGE 3
AUGUST 11, 2025 CITY COUNCIL REGULAR MEETING
FIXED ROUTE FARE FREE PILOT PROGRAM FOR LATHROP TRANSIT Proposed Fixed Route Fare Free Pilot Program for Lathrop Transit through 12/ 31/ 25:
Fixed Route Fares Dial -A -Ride & ADA Paratransit
One Way
10 -Ride
Pass
31 - Day
Pass
One Way
10 -Ride
Pass
31 -Day
Pass
General ( 18-
61)
Free Free Free 2 18 45
Seniors, ADA,
Youth( 2-17)
Free Free Free 1 9 30
Children
Under 2 ( with
accompanying
adult)
Free Free Free Free Free Free
The pilot program will also allow staff to collect data on ridership and utilization that may otherwise take years to materialize. By making the microtransit system as accessible as possible staff will be able to see the true demand that exists within Lathrop. The current fares collected on fixed route microtransit are de minimis to the overall funding of the system. The fare free pilot program meets the funding criteria for all revenue sources that the City currently uses to fund Lathrop Transit. The assumption of low fare revenue has been built into the microtransit systems operational budget. Impacts of this pilot program will be re- evaluated in Q4 2025 to determine if it is operationally and financially feasible to extend the program beyond December 31, 2025.
The hours of operation for microtransit are Monday through Friday 7am until 5pm, except on holidays. More information on the specific route and pickup times are available on the Lathrop Transit website at: www. lathroptransit. com A mobile application is in the development stages and should be available soon. For more information on the new micro - transit service, please call Lathrop Transit at ( 866) 495 -LIFT ( 5438) to make a reservation.
REASON FOR RECOMMENDATION:
The revised fare structure will remove a financial barrier for transit riders and families to access public transportation. The tasks associated with the oversight, management, and security of transit fares are onerous considering the de minimis funds collected. Free fares have been demonstrated to increase ridership in other agencies that have implemented similar pilot programs. Staff recommends the City Council approve the Fixed Route Fare Free Pilot Program for Lathrop Transit through December 31, 2025
CITY MANAGER' SREPORT PAGE 4
AUGUST 11, 2025 CITY COUNCIL REGULAR MEETING
FIXED ROUTE FARE FREE PILOT PROGRAM FOR LATHROP TRANSIT FISCAL IMPACT:
The current fares collected on fixed route microtransit are de minimis to the overall funding of the system. The fare free pilot program meets the funding criteria for all revenue sources that the City currently uses to fund Lathrop Transit. The assumption of low fare revenue has been built into the transit operational budget. Impacts of this pilot program will be re- evaluated in Q4 2025 to determine if it is operationally and financially feasible to extend the program beyond December 31, 2025.
ATTACHMENTS:
A. Resolution to Approve Fixed Route Fare Free Pilot Program for Lathrop Transit through December 31, 2025
CITY MANAGER' S REPORT PAGE 5
AUGUST 11, 2025 CITY COUNCIL REGULAR MEETING
FIXED ROUTE FARE FREE PILOT PROGRAM FOR LATHROP TRANSIT APPROVALS:
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Thomas Hedegard Date
Deputy City Manager
Salvador Navarrete Date
City Attorney
Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 25-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO
AUTHORIZE THE FIXED ROUTE FARE FREE PILOT PROGRAM FOR LATHROP TRANSIT THROUGH DECEMBER 31, 2025
WHEREAS, the City of Lathrop recently launched a new microtransit system that offers a flexible, on -demand transportation service aimed at improving mobility throughout the City; and
WHEREAS, there is also a fixed route component to the service called the School Tripper" that runs in the morning and afternoon to ensure that students, parents, and school employees are able to get to school. This is not a school bus and is available to the public as well as the funding for this program cannot be restricted to school use only; and
WHEREAS, fare free fixed routes make the microtransit system accessible to all potential transit riders in the community. This pilot program will allow the City to provide transit equitably, eliminating the fixed route fare can make a tangible difference for many riders. Eliminating fixed route fares injects money back into the local economy. Riders and families spending $ 30- 60 per month on fares today can instead invest those dollars back into their family, their homes, food, health care, and retail in Lathrop; and
WHEREAS, the pilot program will also allow staff to collect data on ridership and utilization that may otherwise take years to materialize. By making the microtransit system as accessible as possible staff will be able to see the true demand that exists within Lathrop; and
WHEREAS, the current and proposed fare changes are listed in the tables below.
Current Lathrop Transit Fares:
Fixed Route Fares Dial - A -Ride & ADA Paratransit
One Wa.
10 -Ride
Pass
31 -Day
Pass
One Wa y
10 -Ride
Pass
31 -Day
Pass
General ( 18-
61)
8 45 2 18 45
Seniors, ADA, 1
Youth( 2-17)
30 1 9 30
Children
Under 2 ( with
accompanying
adult)
Free Free Free Free Free Free
Proposed Fixed Route Fare Free Pilot Program for Lathrop Transit through 12/ 31/ 25:
Fixed Route Fares Dial -A -Ride & ADA Paratransit
One Wa Y
10 -Ride'
Pass
31 -Day
Pass
One Wa y
10 -Ride
Pass
31 -Day
Pass
General ( 18-
61)
Free Free Free 2 18 45
Seniors, ADA,
Youth( 2-17)
Free Free Free 1 9 30
Children
Under 2 ( with
accompanying
adult)
Free Free Free Free Free Free
and
WHEREAS, the current fares collected on fixed route microtransit are de minimis to the overall funding of the system. The fare free pilot program meets the funding criteria for all revenue sources that the City currently uses to fund Lathrop Transit. The assumption of low to no fare revenue has been built into the microtransit systems operational budget. Impacts of this pilot program will be re- evaluated in Q4 2025 to determine if it is operationally and financially feasible to extend the program beyond December 31, 2025.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop authorizes the Fixed Route Fare Free Pilot Program for Lathrop Transit through December 31, 2025.
The foregoing resolution was passed and adopted this 11th day of August 2025, by the following vote of the City Council, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
Paul Akinjo, Mayor
ATTEST: APPROVED AS TO FORM:
1: -.-.'"....-'.-------
Teresa Vargas, City Clerk Salvador Navarrete, City Attorney