Summary Sheet- RFCA SUMMARY

CITY OF TEMPE
Meeting Date: 3/26/2026  
REQUEST FOR COUNCIL ACTION
Agenda Item: 8A6
ACTION:  Adopt a resolution authorizing the Mayor to sign an Intergovernmental Agreement with the 
Regional Public Transportation Authority for the purchase and supply of mobility transit services for fiscal 
year (FY) 2025-26. (Resolution No. R2026.37)
FISCAL IMPACT:  Total cost of this Agreement is $3,809,449. Sufficient funds have been 
appropriated in the Transit Fund (cost center 3914) as part of the adopted FY 2025-26 budget for 
anticipated expenditures in the current fiscal year. The cost of this Agreement will be funded with the 
following revenue sources: 

Tempe Transit Tax: $2,070,469

Fare Revenue: $273,679

Federal Funds: $65,439

Proposition 400 Funds: $1,399,862
RECOMMENDATION:  Adopt Resolution No. R2026.37.
 
BACKGROUND INFORMATION:  The Intergovernmental Agreement (IGA) provides the Regional 
Public Transportation Authority (RPTA) with funding to operate and maintain the mobility system 
(paratransit and RideChoice) in Tempe. The level of funding and revenue identified in the IGA was 
approved by the RPTA Board of Directors in June 2025 and by the Tempe City Council in June 2025 as 
part of the Transit Fund budget. The change in gross costs is due to the increase of administrative costs 
and agency/contracted labor, materials/vehicles, utilities, increased ridership on RideChoice and 
insurance associated with the operation and maintenance for mobility services. Information on the use 
of funds and offsetting revenue is provided below.
The RideChoice Transportation Program provides taxi subsidy for seniors and persons with 
disabilities in the East Valley. The gross cost to Tempe is $1,809,025.
FY 2024/25
FY 2025/26
% 
Increase/Decrease
Total Ride Choice 
– Gross Cost
$1,385,212
$1,809,025
26.53%
Revenue
Fare Revenue
$172,258
$186,013
7.98%
Federal Funding
$65,439
$65,439
0%
Transit Tax 
$1,147,515
$1,557,573
30.31%
Total 
Revenue/Credits
$1,385,212
$1,809,025
26.53%

2
Paratransit Service provides Tempe residents with city-wide (EVDAR) and regional paratransit 
services for Americans with Disabilities Act certified users and senior citizens. The gross cost to 
Tempe is $2,000,424.
FY 2024/25
FY 2025/26
% 
Increase/Decrease
Total Regional & 
EVDAR – Gross 
Cost
$1,520,192
$2,000,424
27.28%
Revenue
Fare Revenue
$74,772
$87,666
17.24%
Prop 400
$1,352,524
$1,399,862
3.49%
Transit Tax 
$92,896
$512,896
138.66%
Total 
Revenue/Credits
$1,520,192
$2,000,424
27.28%
ATTACHMENTS:    
1.
Resolution
2.
Intergovernmental Agreement
STAFF CONTACT(S):  Shelly Seyler, Deputy Transportation and Sustainability Director, (480) 350-
8854
Department Director:  Eric Iwersen, Transportation and Sustainability Director  
Legal review by:  Eric Anderson, City Attorney
Prepared by:  Sue Taaffe, Administrative Supervisor