HomeMy WebLinkAboutItem 4 - Authorization to submit 2019-20 Low Carbon Transit Operations Program Grant Applications (LCTOP)
Department Name: Public Works
Cost Center: 5201
For Agenda of: February 4, 2020
Placement: Consent
Estimated Time: N/A
FROM: Shelly Stanwyck, Assistant City Manager, Community Services
Prepared By: Gamaliel Anguiano, Transit Manager
SUBJECT: AUTHORIZATION TO SUBMIT 2019-20 LOW CARBON TRANSIT
OPERATIONS PROGRAM (LCTOP) GRANT APPLICATIONS
RECOMMENDATION
Adopt a Resolution authorizing the City Manager or her/his designee to file, execute, and fulfill
any related LCTOP grant applications, certifications, assurances, forms, agreements, and
associated documents on behalf of the City of San Luis Obispo. (Attachment A).
DISCUSSION
Background Information on California’s LCTOP
The LCTOP is one of several programs that are part of the Transit, Affordable Housing, and
Sustainable Communities Program established by the California Legislature in 2014 by Senate
Bill 862. The California Legislature created LCTOP to provide operating and capital assistance
for transit agencies to reduce greenhouse gas emissions and improve mobility, with a priority on
serving disadvantaged communities. Approved projects in LCTOP support new or expanded bus
or rail services, expand intermodal transit facilities, and may include equipment acquisition,
fueling, maintenance, and other costs to operate those services or facilities, with each project
reducing greenhouse gas emissions. Since 2015-16, Senate Bill 862 continuously appropriates
five percent of the annual auction proceeds in the Greenhouse Gas Reduction Fund (Fund) for
LCTOP.
The LCTOP is administered by California Department of Transportation (Caltrans) in
coordination with the California Air Resource Board (ARB) and the State Controller’s Office
(SCO). Caltrans is responsible for ensuring that the statutory requirements of the LCTOP are met
in terms of project eligibility, greenhouse reduction, disadvantaged community benefit, and other
requirements of the law.
Per Public Resource Code § 75230(f)(1)-(3) funds shall be expended to provide transit operating
or capital assistance that meets any of the following three criteria:
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1. New and Expanded. 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 facilities, and may include equipment acquisition, fueling, and
maintenance, and other costs to operate those services or facilities.
2. Increased Modality. Operational expenditures that increase transit mode share.
3. Zero-Emissions. Expenditures related to the purchase of zero-emission buses, including
electric buses, and the installation of the necessary equipment and infrastructure to
operate and support zero-emission buses.
Relevancy of LCTOP to the City
The City of San Luis Obispo may seek a portion of LCTOP funds annually. Each transit operator
is entitled funds based on a statewide formula. The City’s currently identified allocation is
$9,892 per annum; this amount may change slightly based upon revised State numbers.
Exact funds for FY 19-20 have not yet been released
by the State. In consultation with SLOCOG, they have
recommended using the same amounts that were
allocated in FY 18-19 as a basis for preparing the FY
20-21 resolution for direct allocation as well as
discretionary funds available. The table below is from
SLOCOG’s November 2019 Call for Projects staff
report.
Regionally, there is also projected to be a discretionary
amount of $517,293 available to all local transit
agencies to apply for. These specific and regional
LCTOP funds require an annual grant application. This grant application requires City Council
approval. SLOCOG determines the grant awards.
City LCTOP Grant Application is for New Vehicles
As Council may recall, earlier this year, the City received notice from the Air Pollution Control
District that funds of $162,000 have been tentatively awarded to the City to help with electric
charging infrastructure upgrades at the City’s Transit Yard.
Staff therefore recommends pursuing $517,293 for the purchase of new electric transit vehicles.
SLO Transit is facing a significant replacement need on buses that have aged out and are either
approaching the end or exceeded their useful life. State mandates as discussed in this report also
require the City to begin implementation of electrification (or another zero-emission vehicle
strategy) as vehicle replacements or expansions occur. The LCTOP and other grants are essential
in assisting the City convert the current fossil fuel powered SLO Transit fleet to electric vehicles.
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Policy Context
Financial Management Manual Policy 740 requires that the City Council approve grant
applications equal to or greater than $5,000. The application will request $527,185 in combined
City allocated and discretionary LCTOP funds.
The 2019-21 Financial Plan (adopted June 4, 2019) includes budgeting assumptions of
$2,875,000 in grant funds being sought for FY 2019-20 for bus replacements to begin to electrify
the transit fleet. The LCTOP grant solicitation is consistent with the Financial Plan goals of
seeking funding assistance to begin replacement of the City’s transit fleet. Local funding match
requirements or additional funding to complete acquisitions will come from unappropriated
Transit Fund working capital and other grant funds that will be solicited.
Transitioning the City’s public transit fleet to zero-emission technology is in line with the City’s
adopted 2019 Major City Goals, particularly in regard to Climate Action and Sustainable
Transportation. Likewise, the City’s adopted 2017-22 Short Range Transit Plan (SRTP) also
calls for advancements in transit technology that support enhanced and sustainable transportation
goals. Furthermore, the California Air Resource Board’s ICT Rule would obligate all California
agencies to move towards zero-emission vehicles by 2040.
Public Engagement
This is an administrative item, so no outside public engagement was completed. Public comment
can be provided to the City Council through written correspondence prior to the meeting and
through public testimony at the meeting.
CONCURRENCE
This proposed project has been reviewed by the Finance Department, City Attorney and City
Administration and San Luis Obispo Council of Governments before submission to the City
Council.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes - Grant Funding Budget Year: 2019-2020
Funding Identified: Yes
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Fiscal Analysis:
Funding Sources
Total
Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing Cost
Transit Fund
State – LCTOP Discretionary $517,293*
State – LCTOP Direct $9,892
Other:
Total $527,175
*This is the grant application amount. Some other amount could be awarded.
There is no impact on the City’s General Fund as a result of applying or receiving these grant
funds. Rather, securement of these funds will assist and supplement the Transit Enterprise fund
in achieving its capital projects, which has no other identified funding source.
Full award would pay for as much as 65% of an Electric Bus, based on the State of California’s
Department for Goods & Services purchase consortium contract. The remaining amount would
be funded with local funds coming from the unappropriated Transit fund working capital. The
City will continue to apply for individual capital grants to accumulate funding to purchase buses
as funding becomes available. The goal will be to leverage as much outside funding as possible
and take advantage of available working capital as a last resort. The Transit Fund holds
approximately $1.1 million in unappropriated and unassigned Working Capital to be used to help
leverage these funds and purchase a ZEV if LCTOP discretionary funds are awarded to the City.
Once all Grant Funding as described above is in place, staff will return to Council seeking
electric bus purchase approval.
ALTERNATIVES
1. Deny authorization request for the grant application. This is not recommended as this will
leave the transit program without another funding source to pursue the purchase of transit
vehicles.
Attachments:
a - Draft Resolution
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R ______
RESOLUTION NO. _____ (2020 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING THE CITY MANAGER OR
THEIR DESIGNEE, TO FILE, EXECUTE AND FULFILL ANY RELATED
LOW CARBON TRANSPORTATION OPERATIONS PROGRAM GRANT
APPLICATIONS, CERTIFICATIONS, ASSURANCES, FORMS,
AGREEMENTS, AND ASSOCIATED DOCUMENTS ON BEHALF OF THE
CITY OF SAN LUIS OBISPO
WHEREAS, California Department of Transportation (Caltrans) in coordination with the
Air Resource Board (ARB) and the State Controller’s (SCO) office have been authorized to
administer the LCTOP program as defined in Senate Bill 862; and
WHEREAS, the City of San Luis Obispo (City) operates the San Luis Obispo (SLO)
Transit system; and
WHEREAS, the City and SLO Transit are eligible applicants for the States’ Low Carbon
Transportation Operations Program (LCTOP) grant annually, throughout the life of the program;
and
WHEREAS, the City has determined to use the City apportionment and pursue
discretionary amounts to fund SLO Transit capital projects; and
WHEREAS, the City is requesting 100% of its annually allocated amount and additional
annually awarded discretionary amounts; and
WHEREAS, the filing and receipt of such LCTOP grant will impose certain reporting
obligations upon the City and will require the City to provide a local share of the project costs; and
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Resolution No. _____ (2020 Series) Page 2
R ______
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of San Luis
Obispo does hereby authorize the City Manager or his designee, to file, execute and fulfill any
related Low Carbon Transportation Operations Program grant applications, certifications,
assurances, forms, agreements, and associated documents on behalf of the City.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2020.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this _________ day of _____________________________, 2020.
____________________________________
Teresa Purrington
City Clerk
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