HomeMy WebLinkAboutItem 09 - Authorization to apply for 2020-21 Low Carbon Transit Operations Program Grant (LCTOP) Department Name: Public Works
Cost Center: 5201
For Agenda of: February 2, 2021
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Gamaliel Anguiano, Transit Manager
SUBJECT: ADOPT A RESOLUTION AUTHORIZING STAFF’S SUBMISSION OF 2020-
21 LOW CARBON TRANSIT OPERATIONS PROGRAM (LCTOP) GRANT
APPLICATIONS, EV INFRASTRUCTURE
RECOMMENDATION
Adopt a Resolution authorizing the City Manager or her/his designee to file, execute, and fulfill
any related 2020-21 LCTOP grant applications 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 has continuously
appropriated five percent of the annual auction proceeds in the Greenhouse Gas Reduction Fund
(GHG Fund) for LCTOP. That is, GHG producing companies that will not meet their carbon
reduction strategies can buy GHG credits via the LCTOP auction process, from which these
funds are derived and provided to GHG offsetting programs, such as transit programs.
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. In compliance with Public Resource Code § 75230(f)(1)-(3) LCTOP
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.
Anticipated LCTOP to the City for 2020-21 Financial Year
The City of San Luis Obispo may seek a portion of LCTOP funds annually. Each transit operator
is entitled funds (non-discretionary funds) based on a statewide formula. In Fiscal Year (FY)
2019-20, the City’s allocation of LCTOP was $10,867. FY 2020-21 LCTOP funding is
estimated to be a similar amount but may change slightly based upon revised State numbers.
Exact funds for FY 2020-21 have not yet been
released by the State. In consultation with SLOCOG,
they have recommended using the same amounts that
were allocated in FY 2019-20 as a basis for preparing
the FY 2020-21 resolution for direct allocation as well
as discretionary funds available. The table to the right
is from SLOCOG’s December 2020 Call for Projects
staff report.
Regionally, there is also projected to be a
discretionary amount of approximately $512,000
available to all local transit agencies. Both
discretionary and non-discretionary LCTOP funds
require an annual grant application that has been approved by City Council. SLOCOG will
determine the grant awards amounts for discretionary LCTOP funds.
City LCTOP Grant Application for Transit EV Infrastructure
Staff was originally recommending that FY 2020-21 LCTOP grant application be for a combined
non-discretionary and discretionary amount of $325,000 to support the infrastructure costs
related to the purchase and installation of electric bus charging units. However, to align this
report with the SLOCOG staff recommendation to the SLOCOG board for adoption at their
February 3, 2021 meeting, City staff is reducing the amount to $273,731. Therefore, although
less than originally sought after and fewer charging units will be acquired this go around, this
will still suffice in meeting SLO Transit’s EV infrastructure needs for the next eight years.
The State of California’s Air Resource Board has manded that transit agencies convert to zero
emission vehicles by 2040. The City of San Luis Obispo’s Climate Action Plan also has the
ambitious goal for City services to be carbon neutral by 2030. To support Climate Action Goals,
the City Council approved the replacement of two aged diesel transit buses with two electric
transit vehicles on July 7, 2020. These new electric transit vehicles are expected to be delivered
in late 2021.
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These two new electric transit vehicles will require the appropriate electric vehicle (EV)
infrastructure and charging units. Work to accomplish this is underway and in coordination with
Air Pollution Control District and PG&E. If secured, these LCTOP funds will allow the City to
complete the build out of EV infrastructure to support the new transit electric vehicles.
Policy Context
Financial Management Manual Policy 740 requires that the City Council approve grant
applications equal to or greater than $5,000.
This action is consistent with the City’s adopted Climate Action Plan, 2017-22 Short Range
Transit Plan, the regions SLO Regional Zero Emission Bus Plan and the State’s Innovative Clean
Transit Rule.
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: 2020-21
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 $262,864
State – LCTOP Non-Discretionary $10,867
Other:
PG&E
Total $273,731
*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 project goals, which has no other identified funding source.
ALTERNATIVES
Deny authorization request for the grant application. This is not recommended as this will
leave the transit program without another funding source to pursue this vital project.
Attachments:
a - Draft Resolution
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R ______
RESOLUTION NO. _____ (2021 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, the 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 Low Carbon Transportation Operations Program (LCTOP) 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 State’s LCTOP)
annual grant, throughout the life of the program; and
WHEREAS, the City has determined to use the City apportionment and pursue
discretionary amounts from the LCTOP grant to fund SLO Transit capital projects; and
WHEREAS, the City is requesting 100% of its annually allocated amount and additional
annually awarded discretionary amounts from the LCTOP grant; 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. _____ (2021 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 _____________________ 2021.
____________________________________
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, on ____________________________.
____________________________________
Teresa Purrington
City Clerk
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