ITEM 4.
CITY MANAGER' S REPORT
APRIL 13, 2026 CITY COUNCIL REGULAR MEETING
ITEM: ADOPT A TRANSIT ASSET MANAGEMENT PLAN FOR
LATHROP TRANSIT
RECOMMENDATION: Resolution to Adopt the Transit Asset Management Plan for Lathrop Transit and Designate the City
Manager as the Account Executive
SUMMARY:
The City of Lathrop recently launched its microtransit service, an on -demand and flexible public transportation program intended to improve mobility for residents, increase access to key destinations, and expand local transportation options. As the City continues to develop and operate this service, it must also establish the administrative and operational framework necessary to comply with federal transit requirements and responsibly manage public assets.
One such requirement is the adoption of a Transit Asset Management ( TAM) Plan. As a direct recipient of Federal Transit Administration ( FTA) funding, the City is required to prepare, adopt, and maintain a TAM Plan in accordance with federal law. The TAM Plan provides a structured approach for tracking, maintaining, and replacing transit assets over time so that the City can deliver service safely, reliably, and costeffectively.
The proposed TAM Plan identifies the City' s transit assets, establishes performance measures and targets, and outlines a strategy for maintaining those assets in a state of good repair. The plan also supports long- range capital planning by helping the City anticipate vehicle replacement needs, reduce deferred maintenance, and make informed investment decisions as the transit system evolves.
Adoption of the TAM Plan will formally demonstrate the City' s compliance with FTA requirements and position Lathrop Transit to manage its new microtransit fleet in a proactive, accountable, and sustainable manner.
BACKGROUND:
In 2015, the U. S. Department of Transportation ( USDOT) reported that approximately 40 percent of the nation' s buses were in poor condition and that transit agencies faced an estimated $ 90 billion backlog in deferred maintenance and replacement needs. As this backlog increased, both the safety and reliability of transit service were negatively affected.
In response, the Federal Transit Administration issued a final rule in July 2016 requiring transit agencies to develop, implement, document, and report Transit Asset Management Plans. Federal law requires recipients of federal transit funds to
CITY MANAGER' S REPORT
APRIL 13, 2026 CITY COUNCIL REGULAR MEETING
TRANSIT ASSET MANAGEMENT ( TAM) PLAN
PAGE 2
establish a TAM Plan and update it at least once every four years. In addition, performance data and targets must be reported annually, and agencies must revise their plans as needed to reflect changes such as new vehicles, new facilities, or other developments that may affect asset management planning.
For the City of Lathrop, the TAM Plan is an essential tool for the ongoing management of transit assets associated with the City' s
microtransit service. The plan supports the
City' sability to maintain service quality, plan for replacement needs, and align asset investment decisions with federal State of Good Repair benchmarks.
According to the FTA, transit asset management is a strategic and systematic process for managing the performance, risks, and costs of transit assets throughout their Iifecycle in order to provide safe, reliable, and cost- effective service. A well -developed TAM Plan incorporates personnel, processes, technology, data, and continuous improvement practices to support sound decision - making and long- term asset stewardship.
The proposed Fiscal Year 2025-6 TAM Plan includes updated performance targets based on factors such as vehicle age, mileage, and equipment reliability. The plan reflects updates to the City' s revenue vehicle fleet and applies the FTA' s minimum useful life standards, together with local policies, to guide vehicle replacement scheduling. These targets are intended to reduce the proportion of aging and less reliable vehicles in the fleet and to support the long- term sustainability of Lathrop Transit.
REASON FOR RECOMMENDATION:
As a direct recipient of FTA funding, the City is required to adopt and maintain a Transit Asset Management Plan. The primary purpose of the FTA' s TAM program is to assist transit providers in achieving and maintaining a State of Good Repair for public transportation assets.
Adoption of the proposed TAM Plan will enable the City to satisfy federal compliance requirements while also establishing a practical framework for preserving and managing its transit investments. The plan supports safe and dependable operations, promotes more efficient use of available resources, and provides a basis for future asset - related decision - making as the City' stransit program grows.
FISCAL IMPACT:
There is no immediate direct fiscal impact associated with adoption of the Transit Asset Management Plan. Over time, implementation of the plan is expected to support cost savings by promoting timely maintenance, reducing the likelihood of
CITY MANAGER' S REPORT
APRIL 13, 2026 CITY COUNCIL REGULAR MEETING
TRANSIT ASSET MANAGEMENT ( TAM) PLAN
PAGE 3
costly emergency repairs, and facilitating scheduled replacement of assets before they become unreliable or excessively expensive to maintain.
ATTACHMENTS:
A. Resolution to Adopt the Transit Asset Management Plan for Lathrop Transit and Designate the City Manager as the Accountable Executive.
B. City of Lathrop Transit Asset Management ( TAM) Plan
CITY MANAGER' S REPORT
APRIL 13, 2026 CITY COUNCIL REGULAR MEETING
TRANSIT ASSET MANAGEMENT ( TAM) PLAN
APPROVALS:
Thomas Hedegard Date
Deputy City Manager
PAGE 4
Salvador Navarrete Date
City Attorney
Steph n J. Salvatore Date
City Manager
4-. 8-?!,
RESOLUTION NO. 26-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP TO ADOPT
THE TRANSIT ASSET MANAGEMENT PLAN FOR LATHROP TRANSIT AND
DESIGNATE THE CITY MANAGER AS THE ACCOUNT EXECUTIVE
WHEREAS, the City of Lathrop is a recipient of Federal Transit Administration FTA) revenues and is required to meet Federal regulatory requirements for the Transit Asset Management system; and
WHEREAS, in 2015, the U. S. Department of Transportation ( USDOT) found that approximately 40 percent of buses were in poor condition with a backlog of an estimated $ 90 billion in deferred maintenance and replacement; and WHEREAS, in July 2016, the FTA issued a final rule requiring transit agencies to maintain, document and report minimum Transit Asset Management ( TAM) Plan standards; and
WHEREAS, Federal law requires recipients of FTA funds to update the TAM plan at least once every four ( 4) years, with performance data and targets reported annually; and
WHEREAS, the City developed a TAM Plan based on best practices that meet FTA guidelines. As part of TAM requirements, an account executive is required to be designated, and the City Council designates the City Manager as the TAM Account Executive.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Lathrop hereby adopts the City of Lathrop Transit Asset Management Plan attached to hereto as Exhibit B to City Manager' sReport; and
BE IT FURTHER RESOLVED that the City Manager, or designee shall be able to file the TAM Plan with the FTA and make any necessary amendments as requested by the FTA.
The foregoing resolution was passed and adopted this 13th day of April 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 TAM Plan
ATTACHMENT " Q
Introduction
TAM Plan Name: City of Lathrop Transit Asset Management Plan TAM Plan Type: Tier II
Agency Name: City of Lathrop
Account Executive Name: Stephen Salvatore
Last Modified Date: 12/ 27/025
Brief Overview
The City of Lathrop provides Lathrop Transit which is a general public dial -a -ride and school tripper fixed route service operating solely within the City of Lathrop. The City is located in the Central Valley of San Joaquin County. The City serves a population base of 28, 701.
Methods for Target -Setting
The City of Lathrop will review asset useful life based on years and miles annually.
Performance Targets & Measures
Agency
Name
Asset
Category
Asset Class
2025
Target
2026
Target
2027
Target
2028
Target
2029
Target
2030
Target
Other Facilities Maintenance 0% 0% 0% 0% 0%
Other Facilities
Passenger
Facilities
0% 0% 0% 0% 0%
Other
Revenue
Vehicles
VN - Van 0% 0 / 0 0 /° 0% 100%
TAM Vision
To ensure that assets are replaced timely based on targets adopted by the MPO, SJCOG and is consistent with the Short Range Transit Plan.
TAM Goals
Goal Objectives
Continue to ensure that all assets
are replaced timely.
Review assets annually, Budget appropriately for asset replacements, Ensure proper preventative maintenance
Capital Asset Inventory
Asset Inventory Summary
Asset
Category/ Class
Mode Type of
Service
Total
Number
Avg
Age
Avg
Mileage
Avg
Replacement
CostNalue
Total Replacement
CostlValue
Revenue
Vehicles
N/ A N/ A 9 0. 1, 228 56, 000. 504, 000.
VN - Van N/ A N/ A 9 0. 1, 228 56, 000. 504, 000.
Facilities N/ A N/ A 1 16. 0 N/ A 0.0 0.0
Maintenance N/ A N/ A 1 16. 0 N/ A 0.0 0.0
Condition Assessment
Asset Condition Summary
Asset
Category/ Class
Mode Type of
Service
Total
Number
Avg
Age
Avg
Mileage
Avg
Replacement
CostNalue
Total
Replacement
CostNalue
At or
Exceeds
ULB
of
Track
Miles
in
Slow
Zone
Number
of
Facilities
less
than 3
on
TERM
scale
Revenue
Vehicles
N/ A N/ A 9 0. 1, 228 56, 000. 504, 000. 0% N/ A N/ A
VN - Van N/ A N/ A 9 0. 1, 228 56, 000. 504, 000. 0% N/ A N/ A Facilities NIA N/ A 1 16. 0 N/ A 0.0 0.0 N/ A N/ A 0
Maintenance N/ A N/ A 1 16. 0 N/ A 0.0 0.0 N/ A N/ A 0
Decision Support
Decision Support Tools
The following tools are used in making investment decisions:
Process/ Tool Brief Description
Spreadsheet, Rolling Stock Fleet Report, Capital Improvement Plan, Short Range Transit Plan
This is used to manage the assets and
track its performance.
Investment Prioritization
The City of Lathrop started a new transit system and as result intends to own assets, such as vehicles and a vehicle parking area instead of relying on the contractor to provide.
Proposed Investments
Project Name Project
Year
Asset
Category
Asset Class Cost Priority Updated
Date
Lathrop Transit Bus Parking
Area
2026 Facilities Parking
Structures 350, 00. High
Lathrop Transit Fleet
Ownership and Purchase
2026
Revenue
Vehicles
MV - Minivan
80, 000. High
Lathrop Transit Fleet
Purchase and Ownership
2026
Revenue
Vehicles
VN - Van 180, 00. High