HomeMy WebLinkAboutItem 09 - Authorize Application for FY 2020-21 SB1 State of Good Repair Transit Grant for Electric Buses
Department Name: Public Works
Cost Center: 5201
For Agenda of: February 18, 2020
Placement: Consent
Estimated Time: N/A
FROM: Shelly Stanwyck, Assistant City Manager, Community Services
Prepared By: Gamaliel Anguiano, Transit Manager
SUBJECT: AUTHORIZE APPLICATION FOR 2020-21 SENATE BILL 1 (SB1) STATE
OF GOOD REPAIR TRANSIT GRANT FOR THE PURCHASE OF ELECTRIC
BUSES
RECOMMENDATION
1. Adopt a Resolution authorizing the City Manager, or his designee, to execute and file grant
applications with the State of California to receive State Of Good Repair Transit Grant funds
for transit projects (Attachment A) and to execute any related grant applications,
certifications, assurances, forms, agreements, and associated documents on behalf of the City
(Attachment B); and,
2. Approve a budget amendment to increase the budget reflecting these grant funds, if awarded.
DISCUSSION
Background
The State of Good Repair (SGR) program is the result of
the passage of SB1 and provides approximately $105
million annually to transit operators in California for
eligible transit maintenance, rehabilitation, and capital
projects. The SGR program benefits the public by
providing public transportation agencies with a
consistent and dependable revenue source to invest in
the upgrade, repair, and improvement of agency
transportation infrastructure. In collaboration with the
State Controller’s Office, Caltrans is tasked with the
management and administration of the SGR program.
Defined (Allocated) Portion of SGR Funds
Each regional agency and transit operator are entitled to a portion of SGR funds identified by a
statewide formula. These funds are allocated annually under the State Transit Assistance (STA)
program formula to eligible agencies pursuant to Public Utilities Code (PUC) section 99312.1.
The City receives a portion of these funds based on population and transit operator revenues.
SLO Transit anticipates receiving approximately $9,020 from this program for this fiscal year.
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Discretionary Portion of SGR Funds
The second part SGR assistance is a competitive, discretionary grant process for capital
purchases. The regional discretionary and operator SGR amounts are unknown at this time as
the State Controller’s Office has yet to release its FY 20/21 allocation list. SGR funding was
approximately $410,000 for the SLOCOG region in FY 19/20 (See table) and is expected to be
similar for FY 20/21.
Annual Grant Application for SGR Funds
The SGR program requires an annual grant application for both allocated and discretionary
amounts.
SGR Capital Project Eligibility
The SGR Program provides funding for capital assistance to rehabilitate and modernize
California’s local transit systems. Specifically, eligible projects include:
1. Fleet Maintenance. Transit capital projects or services to maintain or repair a transit
operator’s existing transit vehicle fleet or transit facilities, including the rehabilitation or
modernization of the existing vehicles or facilities.
2. Fleet New. The design, acquisition, and construction of new vehicles or facilities that
improve existing transit services.
3. Infrastructure. Transit services that complement local efforts for repair and improvement of
local transportation infrastructure.
Projects that solely expand capacity or service are not eligible projects. However, expansion of
capacity within replacement projects to meet current or projected short-term service needs (for
example replacing a maintenance facility with a larger facility or replacing a bus with a larger
bus) are eligible.
City SGR Discretionary Grant for the Purchase of Electric Buses
Staff recommends Council authorize the application for SGR authorized and discretionary grants
for the purchase of electric transit vehicles. These funds could help with the purchase of two
electric transit vehicles to replace two 2007 diesel buses that have met their useful life. The two
2007 30’ buses are now 13 years old and are beginning to show their age as evidenced by more
frequent service calls that are negatively impacting service levels and increasing operating costs
for the City’s transit system.
Because of continual ridership growth and capacity issues, the City will be not only be replacing
the diesel buses with more reliable new electric buses but will also be upgrading their size and
capacity to either 35’ or 40’ vehicles. The additional vehicle size will help ensure that the City’s
fleet has greater interoperability amongst routes, addresses demands, and will improve asset
longevity.
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As the SGR funding is insufficient to purchase vehicles in full, staff will continue to seek
additional grant assistance for the help in funding the electrification of the SLO Transit fleet. The
goal of acquiring up to two Zero Emission Bus (ZEB) buses in the next 24-month period has
been set but relies on the City successfully receiving multiple grants.
Other grants are actively being pursued include funding from SLO Air Pollution Control District
and PG&E; both of which have tentatively approved funding assistance when vehicles are
purchased by the City.
A future Council item will come forward with the full proposal of the electric bus vehicle roll out
plan and final funding strategies to implement this exciting program.
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 up to the maximum in
combined City-allocated and available discretionary competitive award amounts towards capital
purchases that meet grant criteria with the exact amount to be known upon State Controller
Office allocations.
Public Engagement
Development of this SGR project is based on the data and customer survey information gathered
during the City's adopted 2017-22 Short Range Transit Plan (SRTP) and City’s Climate Action
Plan. A reoccurring theme in the SRTP survey results was to expand technology capabilities of
the transit system in order to enhance its accessibility and appeal. A considerable public outreach
campaign was done prior to the development and adoption of the SRTP. Additionally, the City’s
sustainability and climate action plan goals looks towards electrification of the City fleet to meet
emission reduction goals and carbon neutrality.
CONCURRENCE
This proposed SGR project has been reviewed by the Finance, City Attorney and City
Administration and San Luis Obispo Council of Governments before submission to City
Council.
ENVIRONMENTAL REVIEW
No environmental review is required for grant submittals, per section 15061(b)(3) General Rule
of the CEQA Guidelines. It can be seen with certainty that the proposed action of the City to
apply for grant funding will have no significant effect on the environment.
FISCAL IMPACT
Budgeted: Yes Budget Year: FY19/20
Funding Identified: Yes
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Fiscal Analysis
Funding Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing Cost
State - SGR $378,000
State – LCTOP $250,000*
Federal TBD**
Other:
Total $628,000
* LCTOP grant allocation has been approved at SLOCOG’s February 5, 2020 meeting
** To Be Determined when there is a call for projects. Possible sources include FTA’s Low or No Emission (Low-No) Bus
Program grants.
Depending upon the grant funds that are acquired, local match requirements will be needed for
including the SGR. As grants are obtained, staff bring to Council authorization of the actual
purchase of buses. The number of buses will be contingent on how successful we are in
obtaining additional funding grants and transit funds that are available. Local unprogrammed
transit funds, coming from unappropriated fund working capital, will be allocated toward this
project including local matching requirements as necessary. This grant would not preclude the
City from acquiring or using other awarded discretionary grant funds.
ALTERNATIVES
1. Deny the request. This is not recommended as this request is strategic to a larger funding
initiative for electrifying the City’s transit operations.
Attachments:
a - Draft Resolution
b - SB1 Recipient Certifications and Assurances
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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 APPLY, EXECUTE AND FULFILL ANY
RELATED CALIFORNIA STATE OF GOOD REPAIR TRANSIT GRANT
PROGRAM APPLICATIONS, CERTIFICATIONS, ASSURANCES,
FORMS, AGREEMENTS, AND ASSOCIATED DOCUMENTS ON
BEHALF OF THE CITY
WHEREAS, California Senate Bill 1 (2017) establishes the State of Good Repair Transit
Grant (SGR) program; and
WHEREAS, the SGR program provides approximately $105 million annually to transit
operators in California for eligible transit maintenance, rehabilitation and capital projects; and
WHEREAS, the statutes related to state-funded transit projects require a local or regional
implementing agency to abide by various regulations; and
WHEREAS, Senate Bill 1 (2017) named the Department of Transportation (Department)
as the administrative agency for the SGR; and
WHEREAS, the Department has developed guidelines for the purpose of administering
and distributing SGR program funds to eligible project sponsors; and
WHEREAS, the City of San Luis Obispo (“City”) is an eligible project sponsor and wishes
to receive funding from the SGR program for transit projects; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis
Obispo as follows:
SECTION 1. The City Council hereby authorizes the City Manager, or their designee, to
file, execute and fulfill any related State of Good Repair Transit Grant program applications,
certifications, assurances, forms, agreements, and associated documents on behalf of the City.
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Resolution No. _____ (2020 Series) Page 2
R ______
SECTION 2. Environmental Determination. No environmental review is required for
grant submittals, per section 15061(b)(3) General Rule of the CEQA Guidelines. It can be seen
with certainty that the proposed action of the City to apply for grant funding will have no
significant effect on the environment.
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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State Transit Assistance State of Good Repair Program
Recipient Certifications and Assurances
Recipient: City of San Luis Obispo
Effective Date: May 21st, 2019
In order to receive State of Good Repair Program (SGR) funds from the California
Department of Transportation (Department), recipients must agree to following terms and
conditions:
A. General
(1) The recipient agrees to abide by the State of Good Repair Guidelines as may be
updated from time to time.
(2) The potential recipient must submit to the Department a State of Good Repair
Program Project List annually, listing all projects proposed to be funded by the SGR
program. The project list should include the estimated SGR share assigned to each
project along with the total estimated cost of each project..
(3) The recipient must submit a signed Authorized Agent form designating the
representative who can submit documents on behalf of the recipient and a copy of the
board resolution authorizing the agent.
B. Project Administration
(1) The recipient certifies that required environmental documentation will be completed
prior to expending SGR funds. The recipient assures that each project approved for
SGR funding comply with Public Resources Code § 21100 and § 21150.
(2) The recipient certifies that SGR funds will be used for transit purposes and SGR
funded projects will be completed and remain in operation for the estimated useful
lives of the assets or improvements.
(3) The recipient certifies that it has the legal, financial, and technical capacity to deliver
the projects, including the safety and security aspects of each project.
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(4) The recipient certifies that there is no pending litigation, dispute, or negative audit
findings related to any SGR project at the time an SGR project is submitted in the
annual list.
(5) Recipient agrees to notify the Department immediately if litigation is filed or disputes
arise after submission of the annual project list and to notify the Department of any
negative audit findings related to any project using SGR funds.
(6) The recipient must maintain satisfactory continuing control over the use of project
equipment and/or facilities and will adequately maintain project equipment and/or
facilities for the estimated useful life of each project.
(7) Any and all interest the recipient earns on SGR funds must be reported to the
Department and may only be used on approved SGR projects or returned to the
Department.
(8) The recipient must notify the Department of any proposed changes to an approved
project list by submitting an amended project list.
(9) Funds will be expended in a timely manner.
C. Reporting
(1) Per Public Utilities Code § 99312.1 (e) and (f), the recipient must submit the
following SGR reports:
a. Annual Expenditure Reports within six months of the close of the fiscal year
(by December 31st) of each year.
b. The annual audit required under the Transportation Development Act (TDA),
to verify receipt and appropriate expenditure of SGR funds. A copy of the
audit report must be submitted to the Department within six months of the
close of each fiscal year in which SGR funds have been received or
expended.
D. Cost Principles
(1) The recipient agrees to comply with Title 2 of the Code of Federal Regulations Part
200, Uniform Administrative Requirements for Grants and Cooperative Agreements
to State and Local Governments.
(2) The recipient agrees, and will assure that its contractors and subcontractors will be
obligated to agree, that (a) Contract Cost Principles and Procedures, 48 CFR, Federal
Acquisition Regulations System, Chapter 1, Part 31, et seq., shall be used to
determine the allowability of individual project cost items and (b) those parties shall
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comply with Federal administrative procedures in accordance with 2 CFR, Part 200,
Uniform Administrative Requirements for Grants and Cooperative Agreements to
State and Local Governments.
(3) Any project cost for which the recipient has received payment that are determined by
subsequent audit to be unallowable under 2 CFR, Part 200, are subject to repayment
by the recipient to the State of California (State). Should the recipient fail to
reimburse moneys due to the State within thirty (30) days of demand, or within such
other period as may be agreed in writing between the Parties hereto, the State is
authorized to intercept and withhold future payments due the recipient from the State
or any third-party source, including but not limited to, the State Treasurer and the
State Controller.
E. Record Retention
(1) The recipient agrees, and will assure that its contractors and subcontractors shall
establish and maintain an accounting system and records that properly accumulate
and segregate incurred project costs and matching funds by line item for the project.
The accounting system of the recipient, its contractors and all subcontractors shall
conform to Generally Accepted Accounting Principles (GAAP), enable the
determination of incurred costs at interim points of completion, and provide support
for reimbursement payment vouchers or invoices. All accounting records and other
supporting papers of the recipient, its contractors and subcontractors connected with
SGR funding shall be maintained for a minimum of three (3) years from the date of
final payment and shall be held open to inspection, copying, and audit by
representatives of the State and the California State Auditor. Copies thereof will be
furnished by the recipient, its contractors, and subcontractors upon receipt of any
request made by the State or its agents. In conducting an audit of the costs claimed,
the State will rely to the maximum extent possible on any prior audit of the recipient
pursuant to the provisions of federal and State law. In the absence of such an audit,
any acceptable audit work performed by the recipient’s external and internal auditors
may be relied upon and used by the State when planning and conducting additional
audits.
(2) For the purpose of determining compliance with Title 21, California Code of
Regulations, Section 2500 et seq., when applicable, and other matters connected with
the performance of the recipient’s contracts with third parties pursuant to
Government Code § 8546.7, the recipient, its contractors and subcontractors and the
Department shall each maintain and make available for inspection all books,
documents, papers, accounting records, and other evidence pertaining to the
performance of such contracts, including, but not limited to, the costs of
administering those various contracts. All of the above referenced parties shall make
such materials available at their respective offices at all reasonable times during the
entire project period and for three (3) years from the date of final payment. The
State, the California State Auditor, or any duly authorized representative of the State,
shall each have access to any books, records, and documents that are pertinent to a
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project for audits, examinations, excerpts, and transactions, and the recipient shall
furnish copies thereof if requested.
(3) The recipient, its contractors and subcontractors will permit access to all records of
employment, employment advertisements, employment application forms, and other
pertinent data and records by the State Fair Employment Practices and Housing
Commission, or any other agency of the State of California designated by the State,
for the purpose of any investigation to ascertain compliance with this document.
F. Special Situations
(1) Recipient acknowledges that if a project list is not submitted timely, the recipient
forfeits its apportionment for that fiscal year.
(2) Recipients with delinquent expenditure reports may risk future eligibility for future
SGR funding.
(3) Recipient acknowledges that the Department shall have the right to perform an audit
and/or request detailed project information of the recipient’s SGR funded projects at
the Department’s discretion from SGR award through 3 years after the completion
and final billing of any SGR funded project.. Recipient agrees to provide any
requested project information.
I certify all of these conditions will be met.
Agency: City of San Luis Obsipo
BY:
Derek Johnson, City Manager
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ATTACHMENT I
(INSERT Agency Board Resolution approving this document)
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