HomeMy WebLinkAboutPH2 CMAQ GrantCity of San Luis Obispo, Council Agenda Report, Meeting Date, Item Number
FROM: Daryl Grigsby, Director of Public Works
Prepared By: Gamaliel Anguiano, Transit Manager
SUBJECT: EXCHANGE OF FEDERAL TRANSIT ADMINISTRATION 5307 FUNDS
WITH THE REGIONAL TRANSIT AUTHORITY FOR CONGESTION
MITIGATION AND AIR QUALITY (CMAQ) MONEY FOR THREE BUS
REPLACEMENTS IN FY 2015
RECOMMENDATION
1. As recommended by the Central Area Programming Committee:
a. Adopt revisions to the Fiscal Year 2013-14 Federal Transit Administration (FTA)
Program of Projects.
b. Adopt approval of the Fiscal Year 2014-15 FTA Program of Projects allowing the
exchange of previously awarded capital funding ($202,000) and new capital
funding ($442,000) to the Regional Transit Authority (RTA) in exchange for
$1,125,000 in new CMAQ transit funding for the replacement of three buses for
SLO Transit .
2. Approve the appropriation of $495,700 for the purchase of a third bus in 2014-15 and the
amendment of the 5 Year Capital Improvement Plan by shifting this amount out of the
2015-16 Fiscal Year program.
3. Approve the use of $329,700 in State TDA funds for local match purposes to acquire the
CMAQ Funding.
4. Adopt a resolution authorizing the Public Works Director to file grant applications,
execute a grant agreement with the Federal Transit Administration for a total of
$1,125,000, and proceed with acquisition of vehicle replacements as soon as the grants
are programmed in the Federal Transportation Improvement Program (FTIP).
DISCUSSION
Background
During Fiscal Year 2013/14 RTA was awarded Congestion Mitigation and Air Quality (CMAQ)
money in the sum of $1.125 million. The CMAQ money was originally approved for the
purchase of two Over-the-Road Coaches which would provide the 55+/- seating capacity now
needed on both RTA’s Routes 9 and 10. However, a recent change in the CMAQ “allowable
spending” language has caused FTA to reconsider whether the proposed vehicles could be
purchased with CMAQ funding. While RTA could choose to challenge such a ruling by FTA,
the process could strain relationships with Federal representatives and cause a lengthy delay in
the proposed project.
The proposed exchange of RTA’s CMAQ money for SLO Transit’s 5307 money is for a dollar-
for-dollar exchange between the two transit agencies. Through the Program of Projects (POP)
amendment process, SLOCOG could reallocate the $1.125 million in CMAQ money to the City
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SLO Transit Revised Program of Projects Page 2
of San Luis Obispo in exchange for SLO Transit’s $202,000 in currently allocated, but unspent,
Bus Rehabilitation money. SLOCOG could also reallocate future, yet to be programed (FY
15/16), $442,000 Bus Replacement money. South County Transit will contribute the remaining
5307 funding to make the CMAQ exchange whole.
Such a swap would meet several objectives. The swap of CMAQ for 5307 money would provide
RTA the money they need to proceed with the purchase of the originally identified Over-the-
Road motor coaches. This approach is preferred to waiting or revising their vehicle type to go
with traditional fixed-route vehicles which offer less seating capacity. SLO Transit has three
vehicles that were purchased in 2001 and now exceed their FTA mandated minimum 12 years of
useful life requirement. While these vehicles are candidates for the Bus Rehab money, all three
vehicles are quickly approaching 500,000 miles, an FTA milestone for retiring vehicles. In fact,
two of these vehicles were already expected to have been retired but this process was delayed
when the Federal funds for their replacement were delayed. The exchange would guarantee SLO
Transit the funds needed for the purchase of the two pending and one anticipated vehicles this
year. Replacement of these three vehicles completes current scheduled fleet replacement needs
until 2018.
Several steps are necessary in order to accomplish this process. RTA has received tentative
approval from an FTA representative to proceed with the process. The issue was raised with the
Central Area Programming Committee who met and voted unanimously to approve the
exchange/reprogramming. City Council now needs to approve the FY 14 POP revision to send
the $202,000 to RTA and part of the FY 15 POP for the remainder of $442,000. SLOCOG, at its
September meeting, will then reprogram the $1.125M in CMAQ for SLO Transit and exchange
the 5307. In order to complete the purchases, SLO Transit needs to provide a minimum of 20%
local match ($282,000) to access the grants. Staff is recommending that the City Council approve
the use of $329,700 in TDA funds as match to provide sufficient budget for purchase of the three
vehicles.
The FTA requires that each recognized Urbanized Zone Area must review and authorize a
Program of Projects on an annual basis. Since the 1990 census, the City of San Luis Obispo has
been classified as an Urbanized Zone Area by the Federal government and is eligible to receive
Federal Transit Administration Section 5307 formula grants for transit operating and capital
assistance. To apply for these grants, the City must complete the following on an annual basis:
1. Publish the Program of Projects (POP);
2. Seek approval by the San Luis Obispo Urbanized Zone Area (SLO UZA) Technical
Committee;
3. Hold a public hearing on the proposed POP for Federal transit assistance;
4. Adopt a resolution authorizing the Public Works Director to file a grant application and
execute the grant agreement; and
5. Forward the approved POP to San Luis Obispo Council of Governments (SLOCOG) for
review and amendment into the Federal Transportation Improvement Program (FTIP).
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SLO Transit Revised Program of Projects Page 3
The Revised POP is scheduled to be published in the Tribune on August 8, 2014 as is shown in
Attachment 1.
Transit Total Federal*Local
Operator Cost ShareShare
Bus Rehabilitation SLO City 252,500$ 202,000$ 50,500$
252,500$ 202,000$ 50,500$
Bus Replacement RTA 252,500$ 202,000$ 50,500$
252,500$ 202,000$ 50,500$
252,500$ 202,000$ 50,500$
Revised FY 2013-14 FY Program of Projects
Project Description
SLO Transit Totals
RTA Totals
Total POP Funding
Transit Total Federal*Local
Operator Cost ShareShare
Bus Replacement RTA 552,500$ 442,000$ 110,500.00$
552,500$ 442,000$ 110,500$
552,500$ 442,000$ 110,500$
Partial FY 2014-15 FY Program of Projects
Project Description
RTA Totals
Total POP Funding
Purchase of Vehicles
This exchange in money with RTA provides timely and needed Federal funds for SLO Transit.
While all three vehicles are one year overdue for replacement, the funds to commence the
gradual replacement of these were not received these past two fiscal years. In addition, the funds
for the final bus are scheduled to be received FY 15/16, according to the current POP as shown
below. This injection in capital funds gives SLO Transit the opportunity to catch up and expedite
the replacement process of all three vehicles. The $1.125 million, along with the mandated local
matching funds ($282,000), is enough for the purchase and replacement of all three 2001
vehicles.
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SLO Transit Revised Program of Projects Page 4
Notes: In order to fulfill the project budget, the unspent amount from 2013-14 will be carried over into 2014-15
and the amount of $495,700 is being advanced from the 2015-16.
Both SLO Transit and RTA have vehicles in considerable need of being retired. Besides the
current age, condition, maintenance expenses and challenges of keeping these vehicles on the
road for a longer period of time, there are other potential challenges on the horizon that would
affect RTA should a money exchange not be achieved.
CVC Section 35554
One issue that particularly affects RTA with regard to vehicles being replaced beyond this fiscal
year is the potential lapse of Section 35554 of the California Vehicle Code (CVC). The CVC
currently prohibits transit vehicles with a gross vehicle weight of one axle of 20,500 pounds. The
current Legislature has established an exemption of this provision until January 1, 2015 such that
an agency may: “procure and operate a new bus exceeding 20,500 pounds that is of the same or
lesser weight than the bus it is replacing.” (CVC Section 35554(a)(2)(d)(A). If there are any
delays in RTA pursuing an order for Over-The-Road coaches beyond the January 1st deadline,
they would be subject to this new regulation as these other types of vehicles would not qualify as
procurement of a “same or lesser” weight vehicle than the ones they are retiring. While
manufactures are seeking an extension of this exemption, through the Assembly (AB 1720), that
would extend through January 2016 there are however no guarantees that the Bill will be ratified.
This change in the 35554 section of the California Vehicle code will not have an impact on SLO
Transit’s procurements of the three proposed transit vehicles for two specific reasons. The first
reason is that SLO Transit is replacing fixed-route vehicles for the “same” type, as covered under
the current exemption language. The second reason is that earlier this year (February 4, 2014)
the Council approved a “piggyback” agreement with the Central Contra Costa Transit Authority
to exercise the purchase of up to three (3) 40-foot low floor buses within a five year period. This
agreement was ratified before the deadline date and acts as a perfunctory, but not obligatory,
agreement to purchase vehicles not subject to this new regulation. And it is under this agreement
5 Year Capital Improvement Plan
FY 2013-14FY 2014-15FY 2015-16 Per Bus
Bus Replacement/Rehab Budgeted BudgetedProjectedTotalsBudget
CMAQ
FTA 379,280$ 387,920$ 396,560$ 1,163,760$ 387,920$
TDA 94,820$ 96,980$ 99,140$ 290,940$ 96,980$
474,100$ 484,900$ 495,700$ 1,454,700$ 484,900$
5 Year Capital Improvement Plan (Revised)
FY 2013-14FY 2014-15FY 2015-16 Per Bus
Bus Replacement/Rehab Actual Budgeted Projected Totals Budget
CMAQ 1,125,000$ 1,125,000$ 375,000$
FTA -$ -$ -$ -$
TDA 329,700$ -$ 329,700$ 109,900$
-$ 1,454,700$ -$ 1,454,700$ 484,900$
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SLO Transit Revised Program of Projects Page 5
that Staff proposes to use for the purchase of the vehicles. As such, once the CMAQ grant is
programmed staff will be processing the purchase of the three vehicles to be ordered by the
December 31, 2014 deadline, to be sure.
Therefore we are recommending the City Council approve the acceleration of bus replacements
third vehicle in FY 2014-15 to coincide with the new CMAQ funding.
FISCAL IMPACT
The impact to the Transit Enterprise fund consists of: an immediate infusion of $1.25 million in
CMAQ money in exchange for the unspent $202,000 in Bus Rehab money along with future
programmed (FY 15/16) $442,000 for Bus Replacement money. The City will match the CMAQ
funds (20%) with $329,700 from available excess revenues already programmed into the 2014-
15 budget.
Depending upon final bus pricing there may be the need to augment this local match to meet
final costs for the three vehicles. Any funds not used to provide the local match requirement will
be returned to the Transit completed projects account or fund reserve to be reprogrammed for
other purposes.
CONCURRENCES
On July 22, 2014 the Central Area Programming Committee voted unanimously to reprogram the
FY 2013/14 funds and program $422,000 in FY 2014/15 funds to implement the CMAQ
exchange between SLO Transit and RTA.
On August 6, 2014 the SLOCOG board voted unanimously to support the exchange of FTA 5307
for CMAQ.
ALTERNATIVES
1. The City Council could decide not to approve the SLO Transit and RTA money exchange
of 5307 for CMAQ money. This would force RTA to either challenge the FTA ruling of
negating the use of CMAQ money for Over-the-Coaches or to revise its purchase request
for standard fixed-route vehicles which do not meet seating requirements on Routes 9 &
10. Meanwhile SLO Transit will have to wait until next fiscal year before we can
proceed with the replacement of just one of the 2001 vehicles and then subsequent years
for the other two vehicles.
ATTACHMENTS
1. Draft Resolution
2. Legal Ad for Revised POP FY 13/14 and partial POP FY 14/15
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Attachment-1
R
RESOLUTION NO. XXXXX (2014 Series)
A RESOLUTION OF THE CITY OF SAN LUIS OBISPO AUTHORIZING THE FILING
OF A REVISION TO THE 2013-14 FEDERAL CAPITAL ASSISTANCE GRANT
APPLICATION, FILING OF PART OF THE FY 2014-15 CAPITAL ASSISTANCE
GRANT APPLICATION AND CONGESTION AND AIR QUALITY MITIGATION
(CMAQ) APPLICATION WITH THE FEDERAL TRANSIT ADMINISTRATION
WHEREAS, the Federal Transit Administration has been delegated authority to award
federal financial assistance for a transportation project; and
WHEREAS, a grant of federal assistance will impose certain obligations upon the City
of San Luis Obispo and may require the City of San Luis Obispo provide the local share of
project costs; and
WHEREAS, the City of San Luis Obispo has or will provide all annual certifications and
assurances to the Federal Transit Administration required for the project; and
WHEREAS, the City of San Luis Obispo is an eligible recipient of Congestion
Mitigation and Air Quality (CMAQ) funds; and
WHEREAS, as part of CMAQ funding, the San Luis Obispo Council of Governments
(SLOCOG) requires a resolution adopted by the responsible implementing agency stating the
following:
1. The commitment of necessary funding for local match requirements of at least
20%
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. The City of San Luis Obispo is an eligible recipient as defined by 49
U.S.C. 5307, 5311, 5317, 5336j, 5339, and 5340.
SECTION 2. The City of San Luis Obispo hereby amends it’s FY 2013-14 FTA 5307
grant application to reduce $202,000 in FTA 5307 funds and allow the Regional Transit
Authority (RTA) instead to use this amount for bus replacement/expansion purposes; and
SECTION 3. The Public Works Director, or his/her designee is authorized to execute
and file an application for revision of federal assistance on behalf of the City of San Luis Obispo
(as necessary) with the Federal Transit Administration making amendment in a similar amount
($202,000) for federal assistance authorized by 49 U.S.C. Chapter 53, Title 23, United States
Code and other federal statutes authorizing a project administered by the Federal Transit
Administration.
SECTION 4. The City of San Luis Obispo will provide a minimum of $282,000 in non-
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Resolution No. (2014 Series) Attachment 1
Page 2
federal matching funds to access $1,125,000 in federal CMAQ funds for the replacement of three
(3) transit vehicles; and
SECTION 5. The Public Works Director, or his/her designee is authorized to execute
grant agreements with the Federal Transit Administration and other agencies on behalf of the
City of San Luis Obispo to program and appropriate $1,125,000 in federal CMAQ funding for
the replacement of three (3) transit vehicles.
Upon motion of , seconded by , and on
the following vote:
AYES:
NOES:
ABSENT:
the foregoing resolution was adopted this day of , 2014.
_______________________________
Mayor Jan Marx
ATTEST:
_______________________________
Anthony Mejia
City Clerk
APPROVED AS TO FORM:
_______________________________
J. Christine Dietrick
City Attorney
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Attachment-1
Exhibit A
FEDERAL TRANSIT ADMINISTRATION
GRANT APPLICATION
FOR
SLO UZA
PROGRAM OF PROJECTS
FOR FISCAL YEAR 2012-2013
The City of San Luis Obispo will be conducting a public hearing to receive comments on the
Draft Program of Projects on Wednesday, November 07, 2012 at 6:00 p.m. in Council Chambers,
990 Palm Street, San Luis Obispo. The below Draft Program of Projects will become the final
program unless modified:
Federal Apportionments:
For 2012-13 $1,970,923
Carryover from previous year $71,919
Available to Program $2,042,842
Project
Transit
Operator
Federal
Amount
Total
Amount
Operating Assistance 7/1/2012-6/30/2013 SLO City 1,124,563 2,466,464
Preventative Maintenance SLO City 150,000 187,500
Bus Rehab
Support Vehicle Replacement
Paratransit operations
Bus Rehab
SLO City
SLO City
SLORTA
SLORTA
100,000
50,000
340,000
100,000
125,000
62,500
740,000
125,000
Bus Stop Improvement-Ticket Kiosk
Support Vehicle Replacement
Joint DTC Environmental Study*
SLORTA
SLORTA
City/RTA
112,820
50,000
15,459
187,820
62,500
90,459
Total Project Cost $4,027,243
Federal Share $2,042,842
City of San Luis Obispo 1,424,563
San Luis Obispo Regional Transit Authority 618,279
Local Share $2,004,401
City of San Luis Obispo 1,416,901
San Luis Obispo Regional Transit Authority 587,500
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Attachment #2
FEDERAL TRANSIT ADMINISTRATION
GRANT APPLICATION
FOR
SLO UZA
Revised PROGRAM OF PROJECTS
FOR FISCAL YEAR 2013-2014
and
Partial PROGRAM OF PROJECTS
FOR FISCAL YEAR 2014-2015
The City of San Luis Obispo will be conducting a public hearing to receive comments on the
Draft Program of Projects on August 19, at 6:00 p.m. in Council Chambers, 990 Palm Street, San
Luis Obispo. The below Draft Program of Projects will become the final program unless
modified:
Revised Federal Apportionments:
For 2013-14 (Revised) $202,000
For 2014-15 (Partial)
Carryover from previous year
$442,000
$0.00
Available to program $644,000
Project
Transit
Operator
Federal
Amount
Total
Amount
Bus Replacement s(2) SLORTA 644,000 805,000
Total Project Cost $805,000
Federal Share $644,000
San Luis Obispo Regional Transit Authority 644,000
Local Share $161,000
San Luis Obispo Regional Transit Authority $161,000
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