HomeMy WebLinkAboutItem 6f. Authorization to apply for FY 2023-24 Low Carbon Transportation Operations Program (LCTOP) Grant Item 6f
Department: Public Works
Cost Center: 5201
For Agenda of: 6/18/2024
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Alexander Fuchs, Mobility Services Business Manager
SUBJECT: AUTHORIZATION TO APPLY FOR FY 2023-24 LOW CARBON
TRANSPORTATION OPERATIONS PROGRAM (LCTOP) GRANT FUNDS
RECOMMENDATION
Adopt a Draft 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
fulfil any related Low Carbon Transportation Operations Program Grant Applications,
Certifications, Assurances, Forms, Agreements, and Associated Documents on behalf of
the City.”
POLICY CONTEXT
The City’s Financial Management Manual Section 740 requires that the City Council
approve grant applications in excess of $5,000 and delegates receipt and contract
execution to the City Manager if delegation is allowed by the grantor agency. The
proposed applications request $376,368 in total between two proposed projects for Low
Carbon Transportation Operations Program (LCTOP) funds.
The California Department of Transportation (Caltrans) is the grantor agency and allows
for delegation of authority to the City Manager or their designee. Council approval via
Resolution to file, execute, and fulfill documents related to the LCTOP grant application
is required as part of the allocation request packages submitted to Caltrans by the City.
The LCTOP projects requested under this authorization are (1) $319,168 in funding for
battery electric charging infrastructure for SLO Transit’s Bus Yard and (2) $57,200 in
funding to serve as the local match for a battery electric cutaway bus to replace an existing
gasoline-powered cutaway bus. Staff is seeking federal funding for the federal match
portion of the battery electric bus.
These projects are consistent with the City’s 2023-25 Financial Plan Major City Goal of
Climate Action, Open Space, and Sustainable Transportation. These projects are also
consistent with the City’s Climate Action Plan and SLO Transit’s adopted Zero-Emission
Rollout Plan.
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Item 6f
DISCUSSION
Background
LCTOP is one of several programs that are part of the Transit, Affordable Housing, and
Sustainable Communities Program established by the State in 2014 by Senate Bill (SB)
862. Since FY 2015-16, SB 862 continuously provides five percent of the annual auction
proceeds from the Greenhouse Gas Reduction Fund for LCTOP. LCTOP provides
operating and capital assistance to transit agencies to reduce greenhouse gas emissions
and to improve mobility, with a priority on serving disadvantaged communities. Projects
approved for LCTOP funding must support new or expanded transit services or expand
intermodal transit facilities and may include equipment and operating costs with each
project reducing greenhouse gas emissions.
LCTOP is administered by Caltrans in coordination with the California Air Resource s
Board and the State Controller’s Office. Caltrans is responsible for ensuring that the
statutory requirements of LCTOP are met in terms of project eligibility, greenhouse gas
reduction, disadvantaged community prioritization, and other legal requirements.
Each year, the City of San Luis Obispo is eligible to apply for project funding via the
LCTOP discretionary funds through a competitive application process. The region’s
anticipated discretionary amount for FY 2023-24 is $788,075 and is available to all local
eligible transit agencies in the county. Each transit operator in the county is also entitled
to a portion of LCTOP funds based on a statewide formula. The City’s anticipated formula-
based allocation for FY 2023-24 is $14,868. Both the discretionary and formula amounts
may change depending upon revised numbers as determined by the State of C alifornia.
Typically, final funding amounts are not determined and disbursed to approved agencies
until the first quarter of the following fiscal year. This means, if one or both projects are
approved by Caltrans, the City will not receive the funds unti l FY 2024-25 even though
the projects requested funding based on FY 2023 -24 discretionary and formula amounts.
In the Fiscal Impact section of the report, staff has budgeted for project related revenues
and expenditures in FY 2024-25 which are included in the Transit’s Fund Supplemental
Budget that will be reviewed and considered by Council at the June 4, 2024, meeting.
Grant Application Process
San Luis Obispo Council of Governments (SLOCOG) is identified as a contributing
agency for the LCTOP program and redirects funds to transit agencies. SLOCOG is also
responsible for receiving, scoring, and ranking applications for LCTOP funding. Scoring
is based on the following criteria: greenhouse gas emission reduction, need for project,
cost-effectiveness and mode share, project readiness, and local match/leverage. Grant
funds for applications can be partially or wholly approved by SLOCOG depending on the
scoring results.
On December 6, 2023, SLOCOG’s Board of Directors approved a transit programming
update including programming of LCTOP, State of Good Repair (SGR), and Rural Transit
Fund (RTF) competitive grant programs. On December 15, 2023, SLOCOG notified local
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Item 6f
agencies of a call for projects for these programs. Agencies were to submit completed
project applications to SLOCOG no later than February 9, 2024. The City submitted two
project applications for LCTOP funds for (1) battery electric charging infrastructure for
SLO Transit’s Bus Yard ($319,168) and (2) local match funding for a battery electr ic
cutaway bus to replace an existing gasoline-powered cutaway bus ($57,200). Staff is
currently seeking funding for the federal match component needed to purchase the
battery electric cutaway bus.
SLOCOG staff scored the City’s applications against applications received and
recommended to their Board programming funds for both projects. On April 3, 2024,
SLOCOG’s Board approved the City’s applications for grant funding. The City must now
submit an allocation request package for each project to Caltrans for review and approval.
The allocation request must be accompanied by an adopted Council resolution
authorizing execution of Certifications and Assurances, forms, and any other documents
associated with the grant fund applications.
Staff is, therefore, recommending adoption of a Resolution included with this report as
Attachment A authorizing the City Manager or their designee to fulfill and execute the
necessary documents.
Previous Council Action
1. March 5, 2024 – Council adopted SLO Transit’s Zero-Emission Rollout Plan which
is meant to guide the transition to zero-emission technologies in accordance with
state mandates.
2. June 6, 2023 – Council adopted the 2023-25 Financial Plan including the Climate
Action, Open Space, and Sustainable Transportation Major City Goal.
3. December 13, 2022 – Council adopted the Climate Action Plan 2023-27 Work
Program.
4. March 15, 2022 – Council authorized advertisement of the Transit Facility Electric
Vehicle Charging Infrastructure project, Specification No. 1000535.
Public Engagement
This is an administrative item, so no public engagement was completed. Public comment
on this item can be provided to the City Council through written correspondence prior to
the meeting and through public testimony at the meeting. SLOCOG’s approval of the
City’s applications at their April 3, 2024, board meeting also provided an opportunity for
public comment through their respective processes.
CONCURRENCE
The proposed projects and requested funding have been reviewed by the San Luis
Obispo Council of Governments (SLOCOG) before submission to City Council. SLOCOG
Board, the Transportation Technical Advisory Committee (TTAC), and the Social Services
Transportation Advisory Committee (SSTAC) recommend funding for the proposed
projects.
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Item 6f
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended
action in this report because the action does not constitute a “Project” under CEQA
Guidelines Sec. 15378. Authorization to apply for grant funding is an administrative action
of a government agency that will not result in direct or indirect physical impact to the
environment.
The environmental impacts of the proposed EV charging infrastructure project was
already reviewed as part of SLO Transit’s facility EV charging infrastructure project
approved for advertisement on March 15, 20221. Below is an excerpt from the
Environmental Review section of that agenda report.
This project is exempt from environmental review under Section 15301
Class 1 (Existing Facilities) of the California Environmental Quality Act
(CEQA) Guidelines because this project proposes to work within the exiting
transit facility. The project is consistent with the applicable general plan
policies as well as with applicable City Regulations. A Notice of Exemption
will be filed through the Community Development Department upon Council
approval of the project.
If funding is approved for the EV cutaway bus project and federal match funding is
secured, then the purchase would comply with all applicable state and local laws,
including a showing of CEQA compliance or exemption.
FISCAL IMPACT
Budgeted: No Budget Year: 2024-25
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
Transit Fund
State – LCTOP
Discretionary
(99313)
$ 361,500
State – LCTOP
Direct (99314) $ 14,868
Federal
Fees
Total $ 0 $ 376,368 $ 0 $ 0
1 March 15, 2022 – Item 5e. Authorization to Advertise Transit Facility Electric Vehicle Charging
Infrastructure, Specification 1000535
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Item 6f
The funds and corresponding projects are included in the Transit Fund’s Supplemental
Budget and will be reviewed and considered for approval by Council at the June 4 th
meeting prior to presentation of this item. The LCTOP grant funding provides the local
match for the purchase of an EV cutaway bus, but federal match funds are still needed.
Staff is pursuing federal match funds for the project. Without federal match fund s the EV
cutaway bus project cannot move forward. If federal match is secured, then staff will return
to amend the applicable project budget.
ALTERNATIVES
1. Council could decide to deny the authorization request for both grant
applications. Staff does not recommend this alternative because SLOCOG and
several of its advisory committees recommend funding the proposed projects and
these projects are critical for the continued electrification of SLO Transit’s fleet needed
to meet state mandates.
2. Council could decide to approve the authorization request for the EV charging
infrastructure grant application and deny the authorization request for the EV
cutaway bus grant application until federal match funds are secured. Staff does
not recommend this alternative because funding for vehicle replacements typically
require multiple funding sources and LCTOP grant program was established to
provide operating and capital assistance for transit agencies. Local matching funds
are often requested before federal match funds are secured because identification of
local match funds is required in all federal grant applications. Denial of the EV cutaway
bus grant application would delay SLO Transit’s ability to transition its fleet to zero -
emission technologies and, thus, delay achievement of the City’s carbon neutrality
goals.
ATTACHMENTS
A - Draft Resolution authorization to apply for FY 2023-24 LCTOP Grant Funds
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R ______
RESOLUTION NO. _____ (2024 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, the City of San Luis Obispo (City) operates the San Luis Obispo (SLO)
Transit system and the City Council of the City of San Luis Obispo is SLO Transit’s
governing board; and
WHEREAS, the City and SLO Transit are eligible recipients of the State of
California’s Low Carbon Transportation Operations (LCTOP) Program grant annually,
throughout the life of the program; and
WHEREAS, Senate Bill 862 (2014) named the Department of Transportation
(Caltrans) as the administrative agency for LCT OP; and
WHEREAS, Caltrans has developed guidelines for the purpose of administering
and distributing LCTOP funds to eligible contributing sponsors including San Luis Obispo
Council of Governments (SLOCOG) who is the contributing sponsor in the region; and
WHEREAS, Caltrans permits delegation of execution of LCTOP grant
agreements, other documents and any amendments thereto to the City Manager or their
designee; and
WHEREAS, the City wishes to implement the following LCTOP projects:
Procurement of Electric Vehicle (EV) Charging Infrastructure using LCTOP funds in the
amount of $319,168 and Procurement of a Battery Electric Cutaway Bus using LCTOP
funds in the amount of $57,200.
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of San Luis
Obispo does hereby authorize the submittal of the above listed project nominations and
allocation requests to Caltrans for FY2023-24 LCTOP funds as follows:
SECTION 1. Environmental Review. The California Environmental Quality Act
(CEQA) does not apply to the recommended action in this report because the action does
not constitute a “Project” under CEQA Guidelines Sec. 15378. Authorization to apply for
grant funding is an administrative action of a government agency that will not result in
direct or indirect physical impact to the environment. The proposed projects to be funded
through this grant application would be required to comply with all applicable state and
local laws including showing of CEQA compliance or exemption.
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Resolution No. _____ (2024 Series) Page 2
R ______
SECTION 2. Approval. The City Council of the City of San Luis Obispo does
hereby:
1. Approve the City’s previously submitted application for Low Carbon
Transportation Operations Program grant funding; and
2. Authorize staff to submit an allocation request package; and
3. Authorize the City Manager of 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 Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this ____ day of _________ 2024.
___________________________
Mayor Erica A. Stewart
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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