Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JUNE 18, 2025
Subject
SUBJECT: FY26 TRANSPORTATION DEVELOPMENT ACT (TDA) ARTICLE 8 FUND PROGRAM
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
ADOPT:
A. Findings and Recommendations (Attachment A) for allocating fiscal year 2026 (FY26), Transportation Development Act (TDA) Article 8 funds estimated (Attachment B) at $33,368,313 as follows:
1. In the City of Avalon, there are no unmet transit needs that are reasonable to meet. Therefore, TDA Article 8 funds in the amount of $156,044 may be used for street and road projects or transit projects;
2. In the Cities of Lancaster and Palmdale, there are no unmet transit needs that are reasonable to meet; in the Cities of Lancaster and Palmdale, and the unincorporated portions of the Antelope Valley, transit needs can be met by using other existing fund sources. Therefore, TDA Article 8 funds in the amount of $8,131,009 for Lancaster and $7,821,276 for Palmdale may be used for street and road projects or transit projects, provided that transit needs continue to be met;
3. In the City of Santa Clarita, there are no unmet transit needs that are reasonable to meet; in the City of Santa Clarita and the unincorporated portions of the Santa Clarita Valley, existing transit needs can be met through the recommended actions using other fund sources. Therefore, $10,853,278 in TDA Article 8 funds for the City of Santa Clarita may be used for street and road projects or transit projects, provided that transit needs continue to be met;
4. In the Los Angeles County Unincorporated areas of North County, the areas encompassing both the Antelope Valley and the Santa Clarita Valley, transit needs are met with other fund sources such as Proposition A and Proposition C Local Return. Therefore, TDA Article 8 funds in the amount of $6,406,706 may be used for street and road projects or transit projects, provided that transit needs continue to be met; and
B. A resolution (Attachment C) making a determination of unmet public transportation needs in the areas of Los Angeles County outside the Metro service area.
Issue
ISSUE
State law requires that the Los Angeles County Metropolitan Transportation Authority (Metro) make findings regarding unmet transit needs in areas outside of Metro’s service area. If any unmet transit needs are identified as reasonable to meet, they must be met before TDA Article 8 funds can be allocated for street and road purposes.
Background
BACKGROUND
Under the State of California TDA Article 8 statute, state transportation funds are allocated to the portions of Los Angeles County outside Metro’s service area. These funds are for “unmet transit needs that may be reasonable to meet.” However, if no such needs exist, the funds can be spent for street and road purposes. See Attachment D for a summary of the history of TDA Article 8 and definitions of unmet transit needs.
Before allocating TDA Article 8 funds, the Act requires Metro to conduct a public hearing process (Attachment E). If there are determinations that there are unmet transit needs, which are reasonable to meet and Metro adopts such a finding, then these transit needs must be met before TDA Article 8 funds can be used for street and road purposes. By law, Metro must adopt a resolution annually that states our findings regarding unmet transit needs. Attachment C presents the FY26 Resolution. The proposed findings and recommendations are based on the results of the public hearing process and the recommendations of the Social Service Transportation Advisory Council (SSTAC) and the Hearing Board.
Antelope Valley Transit Authority Transit Service Updates
Antelope Valley Transit Authority (AVTA) is developing a new route called the High Desert Connector to link Antelope Valley with Victor Valley, to connect Lancaster/Palmdale Transit Centers to the Victor Valley Transit Center. They are also looking into an eco-friendly charging solution with solar farms and battery storage.
In addition, AVTA is enhancing bus stops in Lancaster and Palmdale by installing shelters, benches, and trash receptacles at several locations. Four additional sites are planned for installation, with completion scheduled for FY25/26. An internal committee has been established to review passenger feedback and recommend service changes. The committee meets every other month. AVTA is also starting a Regional Transit Plan Committee to address future transportation needs across various service types.
City of Santa Clarita Transit Service Updates
The City of Santa Clarita has continued its efforts to promote public transportation and develop the essential infrastructure needed to support public transit services now and in the future. Over the past year, the City has achieved several milestones, including the completion of its Transit Development Plan update, which incorporated community outreach to assess transit service demand. Ridership on local fixed-route services has surpassed pre-pandemic levels, and ridership for the City's on-demand service “Go! Santa Clarita” has also increased.
Santa Clarita also awarded a contract for four zero-emission fuel cell electric buses, bringing the total to seven buses scheduled for delivery in the third quarter. The City designed a hydrogen electrolyzer and fueling station at the Transit Maintenance Facility, with construction beginning in FY25. In addition, Santa Clarita received its first zero-emission electric transit vehicle through a partnership with Access Services to secure federal funding for zero-emission paratransit vehicles and added two new CNG-powered local buses to its fleet.
The City completed the replacement of 50 electronic signs, and installed vandal resistant placards with unique stop numbers and QR codes at over 700 bus stops system wide. These QR codes provide real-time arrival information for the routes serving the individual stop. The City also expects to complete another bus stop improvement project by the end of June 2025. This project will improve access and replace worn or damaged benches, shelters, and trash receptacles at 20 bus stop locations within the City.
Discussion
DISCUSSION
Metro has complied with state law by conducting public hearings and obtaining input from the Social Service Transportation Advisory Council (SSTAC) regarding unmet transit needs. The SSTAC is comprised of riders representing seniors, individuals with disabilities, social service providers, and other interested parties from the North County areas.
• Attachment A presents the proposed FY26 SSTAC recommendations.
• Attachment F summarizes the recommendations made and actions taken by area transit agencies during FY2025 (for the FY26 allocation estimates).
On May 5, 2025, the TDA Article 8 Hearing Board convened on behalf of the Metro Board of Directors to conduct the required public hearing process. The Hearing Board developed findings and made recommendations for the use of TDA Article 8 funds based on input from the SSTAC and the public hearing process.
Funds will be released to eligible jurisdictions upon:
1. Transmittal of the Metro Board-adopted findings and recommendations,
2. Transmittal of public hearing documentation to Caltrans, and
3. Caltrans approval
A delay in adopting the findings, recommendations, and the resolution contained in Attachments A and C would delay the allocation of $33,368,313 in TDA Article 8 funds to the recipient local jurisdictions.
Determination_Of_Safety_Impact
DETERMINATION OF SAFETY IMPACT
Approval of this project will have no impact on Safety.
Financial_Impact
FINANCIAL IMPACT
The TDA Article 8 funds for FY26 are estimated at $33,368,313 (Attachment B). Funding for this action is included in the FY26 Adopted Budget in cost center 0443, project number 410059 TDA Subsides - Article 8. TDA Article 8 funds are state sales tax revenues designated by law for use by Los Angeles County local jurisdictions outside Metro’s service area. Metro allocates these funds based on population and disburses them monthly, once each jurisdiction’s claim form is received, reviewed, and approved.
Equity_Platform
EQUITY PLATFORM
This process is established by the State and requires Caltrans approval prior to release of the funds, including allocation of funds based on jurisdiction population and local control of eligible expenditure decisions. On March 4, 2025, in-person and virtual public hearings were conducted in Palmdale/Lancaster and Santa Clarita, and on March 18, 2025, in the City of Avalon during their city council meeting. Public hearing notices were posted in the Daily News and La Opinión for each jurisdiction, as well as in local newspapers serving the Antelope Valley, Santa Clarita, San Fernando Valley, Catalina Island, and Long Beach. In addition, notifications were sent to all businesses in the area. Santa Clarita Transit published the hearing notice across its system and posted it in public areas throughout the cities. Avalon shared the notice through their social media outlets. Spanish interpreters were available at all hearings, and all public hearing spaces were accessible in compliance with the American with Disabilities Act (ADA). Members of the public were also given the opportunity to participate virtually.
After the comment period, staff convened the SSTAC, consisting of representatives from the senior (65 and older) and disability communities. As required by law, staff also included representatives from community-based organizations that assist seniors, individuals with low incomes, and people with disabilities. The meeting was conducted in a hybrid format, allowing participants to attend either in-person or online, and a Spanish language interpreter was available. No members of the public attended the public hearings nor were there any comments submitted during the public comment period. Based on the public hearing process, no unmet transit needs were identified in the above jurisdictions.
Vehicle_Miles_Traveled _Outcome
VEHICLE MILES TRAVELED OUTCOME
VMT and VMT per capita in Los Angeles County are lower than national averages, the lowest in the SCAG region, and on the lower end of VMT per capita statewide, with these declining VMT trends due in part to Metro’s significant investment in rail and bus transit.* Metro’s Board-adopted VMT reduction targets align with California’s statewide climate goals, including achieving carbon neutrality by 2045. To ensure continued progress, all Board items are assessed for their potential effect on VMT.
The projects result from the funding adjustments presented in this report have mixed outcomes, but on a whole, most of the projects in this report will likely decrease VMT in LA County. Within this suite of projects, Metro seeks to reduce single-occupancy vehicle trips, provide a safe transportation system, and increase accessibility to destinations via transit, cycling, walking, and carpooling. Some of the projects within this status report include items that will ease congestion for cars and trucks, or expand vehicle capacity, resulting in the possibility of increased VMT. However, these projects also provide for carpooling infrastructure and reinvestment of funding towards transit projects. The projects’ multi-modal benefits may contribute to offsetting the possible increase in VMT.
While TDA Article 8 funds are distributed based on population and the outcome of the unmet transit needs process, the investments they support have a meaningful impact on travel behavior. In FY26, the Antelope Valley Transit Authority (AVTA), the City of Santa Clarita, and the City of Avalon are advancing projects that expand access to public transit, improve service quality, and reduce reliance on single-occupancy vehicles. AVTA’s High Desert Connector will link the Antelope and Victor Valleys, providing a regional transit option that helps reduce long-distance driving. AVTA is also improving local stops with shelters and seating, making transit more attractive for short trips. Santa Clarita continues to grow ridership on its fixed-route and on-demand services and is expanding its zero-emission fleet with new fuel cell electric buses and a hydrogen fueling station. Avalon, where private vehicle use is already limited, continues to enhance mobility options through improved transit access and public engagement. Collectively, these TDA Article 8-funded initiatives align with Metro’s broader VMT reduction strategy by encouraging sustainable travel choices across the county.
*Based on population estimates from the United States Census and VMT estimates from Caltrans’ Highway Performance Monitoring System (HPMS) data between 2001-2019.
Implementation_of_Strategic_Plan_Goals
IMPLEMENTATION OF STRATEGIC PLAN GOALS
The program advances several Strategic Plan Goals including:
• Goal #1: High-quality mobility options that enable people to spend less time traveling
• Goal #2: Deliver outstanding trip experiences for all users of the transportation system
• Goal #4: Transform LA County through collaboration and leadership
Alternatives_Considered
ALTERNATIVES CONSIDERED
The Board of Directors could adopt findings or conditions other than those developed in consultation with the Hearing Board, with input from the state required SSTAC (Attachment A), and through the public hearing process. However, this is not recommended because adopting the proposed findings and recommendations made by the SSTAC and adopted by the Hearing Board has been developed through a public hearing process, as described in Attachment E, and in accordance with the TDA statutory requirements.
Next_Steps
NEXT STEPS
Once Caltrans reviews and approves the Board-adopted resolution and documentation of the hearing process, TDA Article 8 funds will be allocated to the recipient local jurisdictions.
Attachments
ATTACHMENTS
Attachment A - FY26 Proposed Findings and Recommended Actions
Attachment B - TDA Article 8 Apportionments: Estimates for FY26
Attachment C - FY26 TDA Article 8 Resolution
Attachment D - History of TDA Article 8 and Definitions of Unmet Transit Needs
Attachment E - TDA Article 8 Public Hearing Process
Attachment F - Summary of Recommendations and Actions Taken
Prepared_by
Prepared by: Juan Miranda, Manager, Transportation Planning, (213) 922-2824
Manijeh Ahmadi, Senior Manager, Transportation Planning, (213) 922-3083
Cosette Stark, Executive Officer, Finance, (213) 922- 2822
Reviewed_By
Reviewed by: Nalini Ahuja, Chief Financial Officer, (213) 922-3088
