ITEM 4. 6
CITY MANAGER' S REPORT
JUNE 8, 2026 CITY COUNCIL REGULAR MEETING
ITEM: AUTHORIZE THE FILING OF THE LOW CARBON
TRANSIT OPERATIONS PROGRAM APPLICATION
RECOMMENDATION: Resolution to Authorize the City Manager or Designee to Submit an Application for Low Carbon
Transit Operations Program Funding from the
California Department of Transportation
SUMMARY:
The City of Lathrop recently launched Lathrop Transit, a new on -demand microtransit service that provides flexible transportation throughout the City. The service is supported by multiple funding sources, including the Low Carbon Transit Operations Program ( LCTOP). LCTOP provides operating and capital assistance for transit projects that reduce greenhouse gas emissions and improve mobility.
BACKGROUND:
LCTOP is one of several State funding programs under the Transit, Affordable Housing, and Sustainable Communities Program, established by the California Legislature in 2014 through Senate Bill 862 ( SB 862). LCTOP provides operating and capital assistance to transit agencies for projects that reduce greenhouse gas emissions and improve mobility, with priority given to projects that serve State - identified disadvantaged communities. Disadvantaged communities are identified by the State based on geographic, socioeconomic, public health, and environmental hazard criteria used to identify vulnerable populations disproportionately affected by pollution. For agencies whose service area includes disadvantaged communities, at least 50 percent of LCTOP funds received must be expended on projects that benefit those communities.
The California Department of Transportation ( Caltrans), in partnership with the California Air Resources Board ( CARB), administers LCTOP and reviews applications to ensure proposed projects meet program requirements, including serving disadvantaged communities, where applicable, and reducing greenhouse gas emissions.
The proposed use of funds is expected to meet statutory requirements under SB 862 and Public Resources Code Section 75230( a). Public Resources Code Section 75230( f) requires LCTOP funds to be expended on transit operating or capital assistance that meets one or more of the following categories:
1. Expenditures that directly enhance or expand transit service by supporting new or expanded bus or rail services, new or expanded water - borne transit, or expanded intermodal transit facilities, including CITY MANAGER' S REPORT PAGE 2
JUNE 8, 2026 CITY COUNCIL REGULAR MEETING
AUTHORIZE THE FILING OF AN APPLICATION FOR LOW CARBON TRANSIT
OPERATIONS PROGRAM FUNDING
equipment acquisition, fueling, maintenance, and other costs to operate those services or facilities.
2. Operational expenditures that increase transit mode share.
3. Expenditures related to the purchase of zero -emission buses, including electric buses, and the installation of the equipment and infrastructure necessary to operate and support those buses.
A. Operational Projects
1. New or expanded/ enhanced transit service
2. Free or reduced fares
3. Network and fare integration
4. Alternative transportation services
B. Capital Projects
1. Purchase zero -emission or low -emission vehicles and equipment in support of new or expanded/ enhanced transit service.
2. Purchase, construct, and/ orinstall infrastructure to support zero -emission or low -emission vehicles in support of new or expanded/ enhanced transit service.
3. Purchase, construct, and/ or install passenger amenities at transit stops/tations to encourage increased transit ridership.
4. Purchase, construct, and install renewable energy for transit facilities in support of new or expanded/ enhanced transit service.
5. Purchase and construct active transportation facilities that connect to stops/tations and encourage ridership.
6. Purchase, construct, and install equipment and facilities needed to provide expanded/ enhanced transit service.
7. Purchase and install equipment on transit vehicles to encourage increased transit ridership.
8. Purchase replacement zero - emission vehicles.
9. Purchase, construct, and/ or install infrastructure, equipment, or facilities to support zero -emission vehicles.
LCTOP- funded projects must demonstrate a reduction in greenhouse gas emissions.
Eligible project examples include expanded transit service; fleet or infrastructure improvements that support low -carbon transit service; connections to active transportation facilities; and technology or fare programs that improve transit efficiency and encourage ridership.
Eligible recipients must demonstrate the financial capacity to maintain and operate project services and the ability to accept legal liability and fulfill financial obligations for the project' s useful life.
CITY MANAGER' S REPORT PAGE 3
JUNE 8, 2026 CITY COUNCIL REGULAR MEETING
AUTHORIZE THE FILING OF AN APPLICATION FOR LOW CARBON TRANSIT
OPERATIONS PROGRAM FUNDING
The Certifications and Assurances document includes the general conditions of LCTOP, as well as reporting, cost principles, and record retention requirements that are standard for State -funded projects.
LCTOP guidelines require regional entities and transit operators that expect to receive LCTOP funds to designate one or more Authorized Agents to sign documents associated with obtaining and managing the funds.
The City anticipates using this year' s $192 allocation to provide free Lathrop Transit fares and encourage ridership. Although the current allocation is modest, future allocations are expected to increase as Lathrop Transit ridership grows and the City is listed by the State Controller' s Office as an eligible transit operator.
REASON FOR RECOMMENDATION:
Staff recommends that the City Council adopt a resolution authorizing the City Manager, Deputy City Manager, Transit Manager, or designee to apply for and manage LCTOP funds on behalf of the City.
FISCAL IMPACT:
Approval of this item will provide $ 192 in additional transit funds to support free Lathrop Transit fares. There is no impact to the General Fund.
ATTACHMENTS:
A. Resolution to Authorize the City Manager or Designee to Submit an Application for Low Carbon Transit Operations Program Funding from the California Department of Transportation
CITY MANAGER' S REPORT PAGE 4
JUNE 8, 2026 CITY COUNCIL REGULAR MEETING
AUTHORIZE THE FILING OF AN APPLICATION FOR LOW CARBON TRANSIT
OPERATIONS PROGRAM FUNDING
APPROVALS:
Thomas Hedegard
Deputy City Manager
6/ 2/' oZ4
Date
Salvador Navarrete Date
City Attorney
Step en 3. Salvatore
City Manager
Date
RESOLUTION NO. 26-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LATHROP
AUTHORIZING THE CITY MANAGER OR DESIGNEE TO SUBMIT AN
APPLICATION FOR LOW CARBON TRANSIT OPERATIONS PROGRAM FUNDING
FROM THE CALIFORNIA DEPARTMENT OF TRANSPORTATION
WHEREAS, the City of Lathrop is an eligible project sponsor and may receive state funding from the Low Carbon Transit Operations Program ( LCTOP) for transit projects; and
WHEREAS, the statutes related to state -funded transit projects require a local or regional implementing agency to abide by various regulations; and WHEREAS, Senate Bill 862 ( 2014) named the Department of Transportation Department) as the administrative agency for the LCTOP; and WHEREAS, the Department has developed guidelines for the purpose of administering and distributing LCTOP funds to eligible project sponsors ( local agencies); and
WHEREAS, the City of Lathrop wishes to delegate authorization to execute these documents and any amendments thereto to Stephen J. Salvatore, City Manager, Thomas Hedegard, Deputy City Manager and John Andoh, Transit Manager; and
WHEREAS, the City of Lathrop wishes to implement the following LCTOP project( s): to provide free Lathrop Transit fares and encourage ridership, NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lathrop that the fund recipient agrees to comply with all conditions and requirements set forth in the Certification and Assurances and the Authorized Agent documents and applicable statutes, regulations and guidelines for all LCTOP funded transit projects; and
BE IT FURTHER RESOLVED, that Stephen J. Salvatore, City Manager, Thomas Hedegard, Deputy City Manager and John Andoh, Transit Manager be authorized to execute all required documents of the LCTOP program and any Amendments thereto with the California Department of Transportation.
The foregoing resolution was passed and adopted this 8th day of June 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