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HomeMy WebLinkAboutItem 5f. Authorization to apply for 2020-21 Low Carbon Transit Operations Program (LCTOP) Grant Funds Item 5f Department: Public Works Cost Center: 5201 (Transit) For Agenda of: 3/1/2022 Placement: Consent Estimated Time: N/A FROM: Matt Horn, Public Works Director Prepared By: Austin O’Dell, Transit Manager SUBJECT: AUTHORIZATION TO SUBMIT 2020-21 LOW CARBON TRANSIT OPERATIONS PROGRAM (LCTOP) GRANT APPLICATIONS, ELECTRIC VEHICLE (EV) INFRASTRUCTURE RECOMMENDATION Adopt a Resolution entitled, “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.” 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 (GHG). 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 thr ee criteria: Page 93 of 231 Item 5f 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 to funds based on a statewide formula. The City’s currently identified allocation is $5,899; this amount may change slightly based upon revised State numbers. Regionally, a discretionary amount of $285,233 available to all local transit agencies to apply for is also projected. These specific and regional LCTOP funds require an annual grant application. This grant application requires City Council approval. SLOCOG determines the grant awards based on one of following criteria:  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.  Operational expenditures that increase transit mode share.  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. City LCTOP Grant Application for Supporting EV Infrastructure Staff is recommending that this year’s 2021-22 LCTOP grant application be made toward supporting the infrastructure costs related to the purchase and installation of electric bus charging units. Page 94 of 231 Item 5f 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. In support of this , City Council has previously approved the purchase of two (2) electric transit vehicles on July 7, 2020, to replace two aged diesel transit buses. These electric transit vehicles are expected to be delivered in early 2022. These two new vehicles will therefore need to be supported with appropriate EV infrastructure and charging units. The design for this EV infrastructure and charging units is in progress. Funding to support the construction phase of this work will come from both an Air Pollution Control District and PG&E grants. Supplemental funding from LCTOP meets the intended purpose of the funds by supporting reduction in GHG emission. 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 $291,132 combined with the City allocated and discretionary LCTOP funds. Further, this project is consistent with the City’s adopted 2019 Major City Goals Financial Plan, 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 San Luis Obispo Council of Governments (SLOCOG) before submission to the City Council. SLOCOG board, Transportation Technical Advisory Committee, and Social Services Technical Advisory Committee are recommending funding for the City’s project. ENVIRONMENTAL REVIEW The California Environmental Quality Act does not apply to the recommended actio n in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. Page 95 of 231 Item 5f FISCAL IMPACT Budgeted: Yes – Grant Funding Budget Year: 2021-22 Funding Identified: Yes Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost Transit Fund $ $ State – LCTOP Discretionary $285,233 State – LCTOP Direct $5,899 Other: APCD Other: PG&E Total $291,132 $ $ 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. 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 authorizing submission of LCTOP grant applications Page 96 of 231 R ______ RESOLUTION NO. _____ (2022 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 WHEREAS, 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 app ortionment 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 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. Page 97 of 231 Resolution No. _____ (2022 Series) Page 2 R ______ NOW, THEREFORE, BE IT RESOLVED that the City if San Luis Obispo City Council does hereby authorize 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. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2022. ________________________________ Mayor Erica A. Stewart ATTEST: ________________________ Teresa Purington 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 Page 98 of 231