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Home My WebLink About01-17-2017 Item 10 Low Carbon Transit Operations Program (LCTOP) Grant Applications Meeting Date: 1/17/2017 FROM: Daryl Grigsby, Director of Public Works Prepared By: Gamaliel Anguiano, Transit Manager SUBJECT: LOW CARBON TRANSIT OPERATIONS PROGRAM (LCTOP) GRANT APPLICATION(S) RECOMMENDATION 1. Authorize the City Manager or their designee to annually apply for LCTOP funds on behalf of the City of San Luis Obispo; and 2. Adopt a resolution applying for LCTOP funds for transit capital projects DISCUSSION Background Financial Management Manual Policy 740 requires that the City Council approve grant applications equal or greater than $5,000. The application will request $120,000 annually in combined City allocated and discretionary competitive award amounts towards capital pursuing capital purchases/leases with regard to transit fleet needs, such as pursuing alternative energy vehicles. The Low Carbon Transit Operations Program (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 LCTOP was created to provide operating and capital assistance for transit agencies to reduce greenhouse gas emission and improve mobility, with a priority on serving disadvantaged communities. Approved projects in LCTOP will 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. For agencies whose service area includes disadvantaged communities, at least 50 percent of the total moneys received shall be expended on projects that will benefit disadvantaged communities. Senate Bill 862 continuously appropriates five percent of the annual auction proceeds in the Greenhouse Gas Reduction Fund (Fund) for LCTOP, beginning in 2015-16. This program will be administered by Caltrans in coordination with Air Resource Board (ARB) and the State Controller’s Office (SCO). The California Department of Transportation (Caltrans) is responsible to ensure that the statutory requirements of the program 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 three criteria: Packet Pg. 127 10  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. Caltrans and the California Air Resources Board (ARB) will review Allocations Requests to determine if the project supports at least one of the above listed criteria. Agencies have the ability to fund “new or expanded services” with a single or multiple years of LCTOP funding as long as the agency is not supplanting1 funds. Any request or expenditure identifying a phase prior to construction will likely be ineligible for the program. Each transit operator is entitled to a portion of LCTOP funds (derived from auction sales) identified by a statewide formula, as well as a regional discretionary amount (~$291K shown below in the table from last year). All candidate projects submitted must be specifically endorsed by the agency’s respective board (i.e. a general request for all the funds is not acceptable). Capital Projects, New Vehicles Access to LCTOP requires an annual grant application for both allocated and the competitive discretionary amounts. Such grant applications also require board/council approval. LCTOP funding is typically only sufficient for smaller projects to be funded. LCTOP allows for annual roll-over and combining of multiple years, up to four years’ worth, in order to help 1 Supplanting occurs when a state, local, or Tribal Government reduces state, local, or tribal funds for an activity specifically because federal or state funds are available (or expected to be available) to fund that same activity. Packet Pg. 128 10 achieve a larger project. Staff recommends pursuing $120,000 annually, in combined City allocated and discretionary competitive award amounts, towards pursuing capital purchases/leases with regard to transit fleet needs, such as pursuing alternative energy vehicles. FISCAL IMPACT There is no impact on the City’s General Fund as a result of applying or receiving these grants funds. Rather securement of these funds will assist and supplement the Transit Enterprise fund in achieving its capital projects of which; has no other identified funding source beyond federal 5307 funding and their local match requirements. While there are no defined match requirements for the LCTOP program, grants applications which show a matching source of funds tend to score higher in the evaluation process. Staff proposes to match grant amounts similar to federal grant match amounts of 20% of the total cost of the project. This would equate to approximately $24,000 for each successful $120,000 project. Funds would come out of the Transit Enterprise annual fund balance which has come under budget the last three fiscal years. ALTERNATIVES 1. Authorize the City Manager or their designee, apply for LCTOP funds on behalf of the City of San Luis Obispo throughout the life of the LCTOP program. This would be an expansion of the authority being requested. 2. Authorize the City Manager or their designee to annually apply for LCTOP funds on behalf of the City of San Luis Obispo and request City Council authority for each year’s grant application. 3. Deny grant application of these funds. Attachments: a - CAR LCTOP Resolution - Draft Packet Pg. 129 10 R ______ RESOLUTION NO. _____ (2017 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 apportionment and pursue discretionary amounts to fund SLO Transit capital projects; and WHEREAS, the City his 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 will require the City to provide a local share of the project costs; 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. 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 _____________________ 2017. Packet Pg. 130 10 Resolution No. _____ (2017 Series) Page 2 R ______ ____________________________________ Mayor Heidi Harmon ATTEST: ____________________________________ Carrie Gallagher 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, this ______ day of ______________, _________. ____________________________________ Carrie Gallagher City Clerk Packet Pg. 131 10 Page intentionally left blank. Packet Pg. 132 10