ITEM 4. 7
CITY MANAGER' SREPORT
FEBRUARY 9, 2026 CITY COUNCIL REGULAR MEETING
ITEM: LATHROP TRANSIT FARE - FREE PROGRAM
RECOMMENDATION: Adopt Resolution to Authorize the Lathrop Transit Fare -Free Program through June 30, 2027
SUMMARY:
The City of Lathrop' stransit system, Lathrop Transit, was launched in Quarter 2 of 2025 to improve mobility, accessibility, and transportation equity for residents throughout the City. The system consists of a demand - responsive dial - a -ride microtransit service complemented by a fixed - route " School Tripper" designed to serve peak school commute periods while remaining open to the general public.
In August 2025, the City Council approved a fare -free pilot program for the fixed - route component of Lathrop Transit. That action was subsequently extended by City Council on December 8, 2025, along with approval to align the school tripper schedule with the Lathrop High School bell schedule. These prior actions have played a critical role in accelerating ridership growth, reducing barriers to access, improving service reliability, and simplifying system operations.
Since implementation of fare -free fixed -route service, Lathrop Transit has experienced consistent month - over -month increases in ridership, indicating growing community awareness and reliance on transit as a daily mobility option for students, families, and residents. New " Bus Stop" signage along the school tripper fixed routes has further improved visibility and ease of use.
Building on the success of the fare -free fixed -route program and informed by the City Council' s prior actions, staff now recommends expanding the fare -free structure to include the entire Lathrop Transit system, including dial - a - ride microtransit service.
A systemwide fare -free approach removes economic barriers, reduces administrative and enforcement costs, improves operational efficiency, and allows the City to more accurately evaluate true transit demand during this formative stage of the system.
Staff further recommends extending the systemwide fare -free program through June 30, 2027, aligning the duration of the program with the Transit Budget approved by City Council on June 23, 2025. Aligning the fare policy with the adopted budget horizon ensures fiscal consistency, operational stability, and a comprehensive multiyear evaluation period under consistent service conditions.
BACKGROUND:
Lathrop Transit was developed to increase transportation equity, convenience, and accessibility for residents citywide, including students, seniors, individuals with disabilities, and households without reliable access to private transportation. The
CITY MANAGER' S REPORT
FEBRUARY 9, 2026 CITY COUNCIL REGULAR MEETING
LATHROP TRANSIT FARE - FREE PROGRAM
PAGE 2
system combines a flexible dial -a -ride microtransit service with a fixed -route " School Tripper" operating during morning and afternoon peak school commute periods.
While designed to complement student travel needs, the fixed route remains open to the general public in compliance with state and federal funding requirements.
Recognizing the challenges new transit systems face in establishing early ridership, the City Council approved a fare -free pilot program for the fixed - route service in August 2025. On December 8, 2025, City Council approved an extension of the fare - free fixed - route program through June 30, 2026 and authorized modifications to align the fixed - route schedule with the Lathrop High School schedule. These actions reduced barriers to access, improved schedule reliability for the system' shighest -use periods, and supported sustained ridership growth.
Staff analysis indicates that fare -free service is particularly effective for emerging transit systems, where fare revenue represents a de minimis portion of total operating funds. Conversely, the administrative burden associated with fare collection — including fare media, cash handling, enforcement, customer service, and security — can be disproportionately high. Eliminating fares streamlines operations, reduces boarding delays, and allows staff resources to focus on service quality and safety.
Expanding fare -free service to include dial -a -ride microtransit further enhances equity and system efficiency. A unified, systemwide fare policy is easier for the public to understand, eliminates confusion between service types, and ensures equal access for residents with varying mobility needs. Importantly, it also allows the City to observe actual travel behavior without fare -related suppression, producing more accurate data for long- term planning and funding decisions.
The Transit Budget approved by City Council on June 23, 2025 was developed with the understanding that fare revenue would be minimal and not a material contributor to system operations. Extending fare -free service through June 30, 2027 aligns transit operations with the approved budget framework and avoids mid -cycle fare changes that could disrupt ridership trends or complicate fiscal analysis.
All services provided under Lathrop Transit will operate on a fare -free basis for all riders and trip purposes, including:
Fixed Route (" School Tripper")
Dial - A -Ride Microtransit
The hours of operation for Lathrop Transit are Monday through Friday 7am until 5pm, except on holidays. Additional information about Lathrop Transit is available online at www. Iathroptransit. com.
CITY MANAGER' S REPORT
FEBRUARY 9, 2026 CITY COUNCIL REGULAR MEETING
LATHROP TRANSIT FARE - FREE PROGRAM
REASON FOR RECOMMENDATION:
PAGE 3
The proposed systemwide fare -free program builds directly upon City Council' s prior
actions approving and extending fare -free fixed - route service and aligning the School Tripper schedule with school demand. Expanding fare -free service across the entire system removes financial barriers to access, particularly for students, seniors, lowincome households, and residents without access to private vehicles.
Fare -free service also reduces administrative and enforcement burdens associated with fare collection, improves boarding efficiency, and enhances overall service reliability. Extending the program through June 30, 2027 provides policy consistency with the Transit Budget approved on June 23, 2025 and allows for a stable, multiyear evaluation of ridership trends, service utilization, and operational performance.
For these reasons, staff recommends City Council approval of a systemwide fare -free program for Lathrop Transit through June 30, 2027.
FISCAL IMPACT:
Fare revenue for Lathrop Transit represents a de minimis portion of total operating costs and was assumed as minimal in the Transit Budget approved by City Council on June 23, 2025. Extending fare -free service systemwide through June 30, 2027 is consistent with the adopted budget and does not create a material fiscal impact.
All existing funding sources remain eligible under a fare -free structure. Staff will continue to monitor ridership, operating costs, and funding conditions and will return to City Council prior to the conclusion of the program with an evaluation and recommendation regarding future fare policy.
ATTACHMENTS:
A. Resolution to Approve Lathrop Transit Fare -Free Program through June 30, 2027
CITY MANAGER' SREPORT
FEBRUARY 9, 2026 CITY COUNCIL REGULAR MEETING
LATHROP TRANSIT FARE -FREE PROGRAM
APPROVALS:
Thomas Hedegard Date
Deputy City Manager
3/ 20 Z b
PAGE 4
Salvador Navarrete Date
City Attorney
2.4•Z
Stephen J. Salvatore Date
City Manager
RESOLUTION NO. 26-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO
AUTHORIZE THE LATHROP TRANSIT FARE -FREE PROGRAM THROUGH JUNE 30, 2027
WHEREAS, the City of Lathrop' stransit system, Lathrop Transit, was launched in Quarter 2 of 2025 to improve mobility, accessibility, and transportation equity for residents throughout the City. The system consists of a demand - responsive dial - a - ride microtransit service complemented by a fixed -route " School Tripper" designed to serve peak school commute periods while remaining open to the general public; and
WHEREAS, in August 2025, the City Council approved a fare -free pilot program for the fixed - route component of Lathrop Transit. That action was subsequently extended by City Council on December 8, 2025, along with approval to align the school tripper schedule with the Lathrop High School bell schedule; and WHEREAS, these prior actions have played a critical role in accelerating ridership growth, reducing barriers to access, improving service reliability, and simplifying system operations; and
WHEREAS, since implementation of fare -free fixed - route service, Lathrop Transit has experienced consistent month - over -month increases in ridership, indicating growing community awareness and reliance on transit as a daily mobility option for students, families, and residents. New " Bus Stop" signage along the school tripper fixed routes has further improved visibility and ease of use; and WHEREAS, building on the success of the fare -free fixed -route program and informed by the City Council' s prior actions, staff now recommends expanding the fare -free structure to include the entire Lathrop Transit system, including dial -a - ride microtransit service; and
WHEREAS, a systemwide fare -free approach removes economic barriers, reduces administrative and enforcement costs, improves operational efficiency, and allows the City to more accurately evaluate true transit demand during this formative stage of the system; and
WHEREAS, the proposed fare changes are listed in the tables below.
Proposed Fixed Route Fare Free Pilot Program for Lathrop Transit through 6/ 30/ 27:
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 Free Free Free
Seniors, ADA,
Youth( 2-17)
Free Free Free Free Free Free
Children
Under 2 ( with
accompanying
adult)
Free Free Free Free Free Free
and
WHEREAS, staff further recommends extending the systemwide fare -free program through June 30, 2027, aligning the duration of the program with the Transit Budget approved by City Council on June 23, 2025. Aligning the fare policy with the adopted budget horizon ensures fiscal consistency, operational stability, and a comprehensive multi -year evaluation period under consistent service conditions; and WHEREAS, all existing funding sources remain eligible under a fare -free structure. Staff will continue to monitor ridership, operating costs, and funding conditions and will return to City Council prior to the conclusion of the program with an evaluation and recommendation regarding future fare policy.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop authorizes the Lathrop Transit Fare -Free Program through June 30, 2027.
The foregoing resolution was passed and adopted this 9th day of February 2026, 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
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