200 S. Anaheim Blvd.
Suite #276
Anaheim, CA 92805
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Fax: (714) 765-5161
www.anaheim.net
CITY COUNCIL AGENDA REPORT
City of Anaheim
DEPARTMENT OF PUBLIC WORKS
DATE: MARCH 25, 2025
FROM: DEPARTMENT OF PUBLIC WORKS
SUBJECT: PASSTHROUGH AGREEMENTS WITH ANAHEIM
TRANSPORTATION NETWORK FOR 2021 FEDERAL
TRANSIT ADMINISTRATION LOW- OR NO- EMISSIONS
BUS PROGRAM FUNDS AND AREAS OF PERSISTENT
POVERTY PROGRAM FUNDS
ATTACHMENT (Y/N): YES ITEM # 12
GOVERNMENT CODE § 84308 APPLIES: YES
RECOMMENDATIONS:
That the City Council, by Motion,
1) Approve Passthrough Agreement with the Anaheim Transportation Network in the amount not to exceed $2,010,000 toward the purchase of battery-electric buses, for the term expiring June 30, 2027; and authorize and direct the Director of Public Works or his designee to execute the Passthrough Agreement and any other related documents which may be necessary in order to implement the Passthrough Agreement;
2) Approve Passthrough Agreement with the Anaheim Transportation Network in the amount not to exceed $305,120 toward the completion of a Needs and Opportunity Study focusing on three census tracks identified as areas of persistent poverty, for the term expiring June 30, 2027; authorize the Director of Public Works or his designee to execute the Passthrough Agreement and any other related documents which may be necessary in order to implement the Passthrough Agreement; and
3) Increase the Public Works revenue and expenditure budget in restricted transportation grant funds by $2,315,120 in the appropriate fiscal year.
DISCUSSION:
On March 4, 2025, this Item was presented to the City Council and Mayor Pro Tem Meeks moved to have it continued to March 25, 2025.
The Anaheim Transportation Network (ATN) holds a non-exclusive franchise agreement with the City for the operation of clean fuel and/or pure electric buses, passenger trams, and other clean fuel vehicles in certain designated areas of the City.
Passthrough Agreements with Anaheim Transportation Network 2021 Federal Transit Administration Low- or No- Emissions Bus Program Funds and Areas of Persistent Poverty Program Funds
March 25, 2025
Previously, ATN requested that the City, on its behalf, apply for two Fiscal Year 2021 Federal Transit Administration (FTA) grant programs. These programs included the Low- or No- Emissions Bus Program (LWNO) and Areas of Persistent Poverty Program (APOP).
Per FTA requirements, these funds can only be awarded to the City. However, the City is allowed to passthrough these funds back to ATN, so long as the City remains the official recipient of the funds from an FTA perspective.
Given this requirement, the two attached agreements have been developed between the City and ATN to establish roles and responsibilities for the funding passthrough process. These agreements both transfer all FTA imposed requirements, for each funding source, from the City to ATN. Key provisions of the agreements include the following:
ATN Requirements:
ATN must perform all tasks as outlined in the City’s original agreements with FTA. ATN must pay the required non-federal match amount specified in each grant application. o For the LWNO grant, the non-federal match amount is $2,555,000. o For the APOP grant, the non-federal match amount is $48,960. ATN must attest to the City that it shall use FTA funds for each project’s scope as specified in each grant application.
o For LWNO Funds, expenditures shall be for the purchase of five (5) forty-foot battery electric buses.
o For APOP Funds, expenditures shall be for the completion of ATN’s “Assessing Equity through Mobility: Needs and Opportunity Study."
ATN is required to complete a Project Closeout Report for each grant, when complete. o ATN is also required to invoice the City no later than sixty (60) days after the termination of these agreements.
ATN must return any upsent or disallowed funds as determined by an audit. ATN must provide access all appropriate records and supporting documentation pertaining to performance of the agreements for a minimum of three (3) years.
CITY REQUIREMENTS:
City agrees to reimburse ATN for eligible expenditures up to $2,010,000 from its LWNO Grant from FTA.
City agrees to reimburse ATN for eligible expenditures up to $305,120 from its APOP Grant from FTA.
The terms of each Passthrough Agreement are relatively straightforward and staff is satisfied that all of the pertinent FTA mandated requirements are passed through from the City to ATN consistent with previous discussions and expectations. Further, the City is requesting that before ATN initiate procurements associated with these grants, that they provide documentation that these federal funding sources are available and are not the subject of any federal funding freezes.
Passthrough Agreements with Anaheim Transportation Network 2021 Federal Transit Administration Low- or No- Emissions Bus Program Funds and Areas of Persistent Poverty Program Funds
March 25, 2025
With ATN’s documentation identified in the paragraph above, staff recommends approval of the recommendations.
This item supports Anaheim’s Strategic Plan Goal A. – Maintain Financial Responsibility Strategy No. 1 – Identify potential new funding sources/revenue to increase City revenues to maintain and enhance services, and Strategy No. 2 – Continue proactive pursuit of state and federal grants.
IMPACT ON BUDGET:
This action will increase the Public Works Department’s revenue and expenditure budgets in the Restricted Transportation Grant funds by $2,315,120 in the appropriate fiscal year.
Respectfully submitted,
Rudy Emami
Director of Public Works
Attachments:
1. Passthrough Agreement for Fiscal Year 2021 Federal Transit Administration Low- or Now Emissions Bus Program Funds
2. Passthrough Agreement for Fiscal Year 2021 Federal Transit Administration Areas of Persistent Poverty Program Funds