To: MAYOR AND CITY COUNCIL
From: ELIZABETH HAUSE, WATERFRONT AND COMMUNITY SERVICES DIRECTOR
TITLE
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ADOPT BY TITLE ONLY RESOLUTION NO. CC-2609-078 OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA APPROVING THE FILING OF A CLAIM WITH THE LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY FOR TRANSPORTATION DEVELOPMENT ACT FUNDS FOR FISCAL YEAR 2026-27
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EXECUTIVE SUMMARY
The City of Redondo Beach is eligible to receive Transportation Development Act (TDA) IV funding through the Los Angeles County Metropolitan Transportation Authority (Metro) for transit operating assistance. The revenue is distributed from two funding sources: the Local Transportation Fund (LTF) and the State Transit Assistance Fund (STA).
To receive the funding, the City must submit claim forms to Metro that have been authorized by the City Council. The City’s FY 2026-27 TDA IV and STA allocated funding is $983,472: $792,763 of LTF and $190,709 of STA funds. All LTF and STA allocated funding is used to pay for Beach Cities Transit (BCT) and WAVE Dial-A-Ride operating costs. Staff recommends the City Council approve the resolution to submit the request for funding.
BACKGROUND
In 1971, the California State Legislature enacted the TDA to improve existing public transportation services and to encourage regional transportation coordination. The TDA established two funding sources: the LTF and the STA.
The LTF is derived from a ¼ cent of the statewide sales tax. Revenues are returned to each county based on sales tax collected, and then apportioned within each county based on population. STA funds are derived from the statewide sales tax on diesel fuel. These revenues are allocated by the State Controller’s Office, with 50% distributed based on population and 50% based on prior-year transit operator revenues.
In Los Angeles County, both LTF and STA programs are administered by Metro. Eligible transit operators, including the City of Redondo Beach, file annual claims to receive their allocations. The City has relied on this funding to support Beach Cities Transit (BCT) and WAVE Dial-A-Ride operations for more than 15 years.
In addition to LTF and STA, Metro requires claimants to include information on Senate Bill 1 - State of Good Repair (SB1-SGR) funds in the annual claim forms. SB1, the Road Repair and Accountability Act of 2017, augmented the STA program and created the SB1-SGR program, funded by a portion of the Transportation Improvement Fee on vehicle registrations. These funds have been accrued for two designated purposes: transit operations facility improvements; and the replacement of BCT fleet buses.
All LTF and STA allocated funding is used to pay for Beach Cities Transit (BCT) and WAVE Dial-A-Ride operating costs. Staff recommends approving the proposed resolution to formally submit the transit funding request and authorize the City Manager to sign the claim forms and related documents.
COORDINATION
The Resolution to file a claim with Metro has been approved as to form by the City Attorney’s Office.
FISCAL IMPACT
The City will receive $792,763 in LTF and $190,709 in STA funds for FY 2026-27 to be applied toward BCT and WAVE Dial-A-Ride operating costs. The funds are included in the City’s FY 2026-27 Adopted Budget. The FY 2026-27 LTF and STA funding amount is 5% less than what was provided in FY 2025-26.
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Reso - No. CC-2609-078 Filing of a Claim with the Los Angeles County Metropolitan Transportation Authority For Transportation Development Act Funds for FY 2026-27
• FY 2026-27 TDA Claim Forms