HomeMy WebLinkAboutItem 5h - Authoriation to Accept Grant Award from ARPA and Apply For Grants for the Transit Program Item 5h
Department: Public Works
Cost Center: 5201
For Agenda of: 6/7/2022
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Austin O’Dell, Transit Manager
SUBJECT: AUTHORIZATION TO ACCEPT COMPETITIVE GRANT AWARD FROM
THE AMERICAN RESCUE PLAN ACT AND TO APPLY FOR OTHER
LOCAL, STATE, AND FEDERAL GRANTS FOR THE TRANSIT
PROGRAM
RECOMMENDATION
1. Accept an award of American Rescue Plan Grant Funding in the amount of
$12,385,511; and
2. Authorize the City Manager or his designee to file, execute, and fulfill any related grant
applications, certifications, assurances, forms, agreements, and associated
documents on behalf of the City of San Luis Obispo; and
3. Authorize the Public Works Director to apply for local, state, and federal grants that
benefit the City’s Transit Program through June 30, 2023.
DISCUSSION
In September 2021, the Federal Transit Administration (FTA) issued a Notice of Funding
Opportunity available through the American Rescue Plan Act. The FTA announced the
availability of more than $2.2 Billion for operating program funding to assist transit
agencies nationwide. The applications for this competitive grant program were due on
November 8, 2021.
Due to the limited timeframe from the grant announcement and grant applications be ing
due, the Public Works Department submitted an application on behalf of the City for
consideration by FTA in October 2021. Based on the nationwide competitive nature of
this funding, success was not assured but the benefits of being considered for this funding
were profound. Staff did not anticipate an award of this magnitude but are pleased that
the FTA realized the benefit to the City’s Transit Program. The City was notified of the
grant award in the amount of $12,385,511 on March 4, 2022.
These grant funds are provided to cover one hundred percent of the operational cost of
the City’s transit program for three consecutive years of operations. The City can use
other dedicated transit funds (Transportation Development Act, FTA 5307) towards the
purchase of zero emission buses and significantly relieve the City of financial burden of
the expense of transitioning to a zero-emission bus fleet.
Page 363 of 652
Item 5h
Future Transit Grants
During the next year, during this unprecedented time of grant opportunity, Staff is
requesting approval to apply for future funding opportunities that will benefit the City’s
transit program. These funding opportunities are released with short deadlines that
sometimes do not align with the time necessary to both prepare the grant application and
obtain concurrence from the City Council.
With the anticipation of additional funding opportunities from the state and Federal Transit
Administration, this request is timely and will allow staff the time necessary to prepare the
most competitive grant application possible. In applying for these grants, staff will be
primarily focusing on funding opportunities for bus replacements, electric vehicle charging
infrastructure, transit facility maintenance, bus stop improvements, digital bus information
at bus stops, and enhanced service and reduced headways (increased frequency of
service at a given bus stop).
Policy Context
Financial Management Manual Policy 740 requires that the City Council approve grant
applications greater than or equal to $5,000. Staff is requesting approval to apply for
future transit grants that will allow staff to meet grant deadlines and for the City to compete
for funding that will benefit the City’s Transit Program.
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 action has been reviewed by the Finance Department, City Attorney and
City Administration and Congressman’s Carbajal office. Further, this project is consistent
with the City’s adopted 2021-23 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.
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: No Budget Year: 2021-2022
Funding Identified: Yes
Page 364 of 652
Item 5h
Fiscal Analysis:
Funding Sources
Total
Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
Federal Discretionary $0 $12,385,551
Other:
Total $0 $12,385,551
The funding provided through the American Rescue Plan Act will allow the City to cover
operating expenditure for SLO Transit for three years and free other funding to expand
the City’s fleet of electric buses and related infrastructure.
ALTERNATIVES
Deny authorization request for the grant application. This is not recommended as this
will stifle the transit program the ability to utilize current transit funding to purchase zero
emission buses to achieve the statement mandate.
ATTACHMENTS
A - Draft Resolution allowing approval for Public Works to apply for future funding
opportunities
Page 365 of 652
Page 366 of 652
R ______
RESOLUTION NO. _____ (2022 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING THE DIRECTOR OF PUBLIC
WORKS TO APPLY FOR FUTURE FUNDING OPPORTUNITIES THAT
BENEFIT THE CITY’S TRANSIT PROGRAM, FILE, EXECUTE, AND
FULLFILL ANY RELATED GRANT APPLICATIONS, CERTIFICATIONS,
ASSURANCES, FORMS, AGREEMENTS AND ASSOCIATED
DOCUMENTS ON BEHALF OF THE CITY OF SAN LUS OBISPO
WHEREAS, the City of San Luis Obispo operates the San Luis Obispo (SLO)
Transit system; and
WHEREAS, the City of San Luis Obispo is an eligible applicant for the local, state,
and federal grants for transit operating and capital grant; and
WHEREAS, the City of San Luis Obispo’s Financial Management Manual Section
740 requires the City Council to approve all grant applications in excess of $5,000 ; and
WHEREAS, there is inadequate time to submit grant applications for funding
opportunities from local, state, and federal agencies.
Page 367 of 652
Resolution No. _____ (2022 Series) Page 2
R ______
NOW, THEREFORE, BE IT RESOLVED that the City if San Luis Obispo City
Council does hereby:
1. Authorize the Director of Public Works to apply for future funding opportunities
that benefit the City’s transit program, file 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 368 of 652