TO:Andrew P. Powers, City Manager
FROM:Nader Heydari, Public Works Director
DATE:January 27, 2026
SUBJECT: Interagency Agreement Amendment for Senate Bill 125 Transit Funding Disbursements
RECOMMENDATION:
1. Approve First Amendment to Interagency Agreement Contract No. 13910-2025 with the Ventura County Transportation Commission (VCTC) regarding the disbursement and administration of additional funds from the State of California’s Senate Bill 125 (SB 125), for $750,000 in Transit and Intercity Rail Capital Program (TIRCP) funds and $600,000 in Zero-Emission Transit Capital Program (ZETCP) funds.
2. Accept $750,000 in TIRCP grant funds in FY 2025-26 for future transit replacement vehicle and equipment procurements under capital projects CI 5722 ($650,000) and CI 5820 ($100,000), and $600,000 in ZETCP grant funds in FY 2026-27 for transit electric vehicle (EV) charging infrastructure under capital project CI 5473.
3. Approve revenue budget appropriation in the amount of $750,000 in FY 2025- 26 from A/C #651-5540-434-9900 (Transportation Fund, State Grants – Local Bus) to A/C #651-0000-341-9900 (Transportation Fund Retained Earnings) for capital project CI 5722 transit vehicle procurements.
4. Approve revenue budget appropriation in the amount of $600,000 in FY 2026- 27 from A/C #651-5550-434-9900 (Transportation Fund, State Grants – Other) to A/C #651-0000-341-9900 (Transportation Fund, Retained Earnings) for capital project CI 5473 transit EV charging infrastructure.
5. Authorize the City Manager or their designee to execute future amendments to the Agreement.
6. Find that this action is not a project as defined under the California Environmental Quality Act.
Interagency Agreement Amendment for SB 125 Transit Funding Disbursements January 27, 2026
1 4
5 3
LEVINE ACT ITEM: No
FINANCIAL IMPACT:
$750,000 Increase to the Adopted FY 2025-26 Transportation Fund Revenue Budget and $600,00 Increase to the Adopted FY 2026-27 Transportation Fund Revenue Budget. $750,000 increase in revenue to the Adopted FY 2025-26 Transportation Fund for TIRCP grant funds for capital projects CI 5722 ($650,000) and CI 5820 ($100,000), and $600,000 increase in revenue to the Adopted FY 2026-27 Transportation Fund for ZETCP grant funds for capital project CI 5473.
These funds will contribute further to the use of previously programmed TDA funds for these projects.
BACKGROUND:
The City of Thousand Oaks Transit services were established by the City in 1981 and provide service to nearly 200,000 passengers per year in Thousand Oaks and neighboring communities. Transit services operate within a 138-square-mile service area with over 420,000 residents, and programs include a seven-day fixed route bus service, Senior Dial-A-Ride (DAR), and Americans with Disabilities Act (ADA) paratransit services. Additional contracted services include:
County of Ventura Kanan Shuttle, DAR, and ADA services City of Moorpark fixed route bus, DAR, ADA, and vehicle maintenance City of Westlake Village DAR services
City of Agoura Hills DAR and ADA services
East County Transit Alliance (ECTA) inter-city DAR and ADA services In 2014, SB 125 appropriated Greenhouse Gas Reduction Fund (GGRF) and Public Transportation Account (PTA) funds through TIRCP and ZETCP. SB 125 includes $4 billion in statewide TIRCP funds and $1.1 billion in ZETCP funds; both state program funds are administered by VCTC in coordination with transit operators countywide using a population-based formula.
The TIRCP portion is appropriated over three fiscal years and is intended to support high-priority transit capital projects consistent with the uses allowed under Cycle 6 of the program, including projects that maintain or secure federal or local funding commitments, those in development with federal partners, or new projects advancing regional mobility and greenhouse gas reduction goals. The ZETCP portion is appropriated over four fiscal years and may be used for zero-emission transit equipment such as vehicles and refueling infrastructure, or, under specified conditions, to fund operating expenditures that prevent service reductions and maintain or increase ridership.
Interagency Agreement Amendment for SB 125 Transit Funding Disbursements January 27, 2026
1 4
5 3
On August 7, 2024, VCTC received authorization for funding of its SB 125 projects and on September 6, 2024, VCTC approved a countywide funding distribution plan that included a total of $7,350,000 allocated to the City to support transit operations and infrastructure improvements; $5,550,000 in TIRCP funds and $1,800,000 in ZETCP funds. These funds will be used toward EV charging infrastructure and other transit operational expenses.
The VCTC Disbursement Agreement for distribution and administration of funds from SB 125, approved by City Council on March 25, 2025, included these $5,550,000 (TIRCP) and $1,800,000 (ZETCP) Year 1 fund allocations to the City in FY 2024-25. The $1,800,000 ZETCP funds received under the agreement are to be used for an EV charging infrastructure project (CI 5473). The project will install EV infrastructure for charging buses at the Municipal Service Center, where Transit vehicles are stored overnight. This project will support the California Air Resource Board’s (CARB) Innovative Clean Transit regulation which requires public transit fleets, such as the City’s, to transition to zero-emission vehicles beginning in 2026. In addition, these funds will help provide operator/maintenance training, EV maintenance equipment, and procure EV charging management software.
Additionally, VCTC disbursed $5,550,000 of its share of Year 1 TIRCP funds to the City to fund the procurement of replacement vehicles and vehicle-related purchases, including new onboard equipment such as updated farebox collection systems through CI 5722 and CI 5820.
DISCUSSION/ANALYSIS:
Year 1 funding for both the TIRCP and ZETCP programs was accepted by City Council on March 25, 2025. VCTC has received the Year 2 funding from the SB 125 Program and is subsequently amending its existing Agreement with the City in order to distribute these funds in accordance with the funding distribution approved by VCTC at the July 11, 2025, VCTC meeting. The Amendment to the VCTC Disbursement Agreement includes a total increase of grant funds in the amount of $1,350,000, with $650,000 in additional TIRCP funds in FY 2025-26 for CI 5722, $100,000 in additional TIRCP funds in FY 2025-26 for CI 5820, and $600,000 in ZETCP funds in FY 2026-27 for CI 5473 (Attachment #1).
The disbursement of the additional $1,350,000 in grant funds and the amendment to the agreement were approved by the VCTC board on November 7, 2025.
California State Transportation Agency (CalSTA) has since informed VCTC that the $600,000 in ZETCP funds for Year 2 of the appropriation will not be distributed to VCTC until FY 2026-27. Therefore, Year 2 TIRCP funds will be received in FY 2025-26 and Year 2 of ZETCP funds will be received in FY 2026-27. The receipt of this funding aligns with the planned expenditure towards the EV Interagency Agreement Amendment for SB 125 Transit Funding Disbursements January 27, 2026
1 4
5 3
infrastructure project in that fiscal year.
Staff recommends allocating the TIRCP funds in the amount of $650,000 to CI 5722 and $100,000 to CI 5820, and ZETCP funds in the amount of $600,000 to project CI 5473. Staff does not recommend dividing the Year 2 ZETCP funds between multiple CI projects, as done with the initial allocation, due to project CI 5473 needing more funds than what was originally budgeted. Further discussion and analysis of the increased budget for CI 5473 will be included in the staff report for the capital project design and construction contract award planned for February 2026. Staff recommends approving the First Amendment to the VCTC Transit Program Fund Disbursement Agreement.
Future allocations of SB 125 funds for Years 3 and 4 of the program will require additional amendments to the Agreement after VCTC meets to approve funding distribution, in order for the City to accept and use the additional funds. The current proposed amendment also includes authorization for the City Manager or their designee to execute future amendments to the agreement. Acceptance of future grant funding will be brought to City Council for approval.
COUNCIL GOAL COMPLIANCE:
Meets the following City Council goal:
C. Operate City government in a fiscally and managerially responsible and prudent manner to ensure that the City of Thousand Oaks remains one of California's most desirable places to live, work, visit, recreate, and raise a family.
PREPARED BY: Alina Chalas, Assistant Analyst
Attachments:
Attachment #1 – First Amendment to Contract No. 13910-2025 DPW:940-10\ev\Council\2026\012726\Interagency Transit Funding Distribution First Amendment staff report.docx