TO: Honorable City Council
FROM: City Manager
SUBJECT: A Resolution of the City Council of the City of Commerce, California, Approving the 60% Design Concept for the New Transit Maintenance Facility Project.
MEETING DATE: February 21, 2023
RECOMMENDATION
Approve the 60% Design Concept for the Transit Maintenance Facility Project.
BACKGROUND
The City executed a professional service agreement with Stantec Architecture Incorporated (Stantec) on August 17, 2021, for architecture and engineering services to design the new Transit Maintenance Facility. Stantec has completed the 60% New Transit Maintenance Facility (TMF) design concept.
Stantec and City Staff (Design Team) used the criteria presented in the Request for Proposal (RFP) to prepare the initial material flow diagrams depicting the movements of buses, equipment, automobiles, repair parts, materials, and employees through the functional areas located onsite. This process assisted in developing the individual site, building, and functional area floor plans. Early in the design process, the joint Design Team, including essential Transportation and Public Works management and consultant staff members, identified and evaluated the immediate, short‐term, and long‐term issues and desired improvements. Staff considered the site development boundaries, access to the site, sight distances, location of utilities, parking, storage, and site mobilization.
ANALYSIS
Of interest is the future requirement mandated by the State of California (CARB). CARB requires that starting in 2026, a minimum of 25% of all City of Commerce Transit's (CCT's) bus purchases be Zero-Emission Buses (ZEBs) and that by 2029, 100% of the bus fleet purchases be ZEBs. A 2018 study conducted by CCT determined that its existing transit facility could only house 4 ZEBs and was wholly inadequate for the required 100% conversion to a ZEB fleet. Without adequate space or ownership of a new facility, it would be financially imprudent for CCT to invest in battery electric buses (BEB), fleet charging infrastructures, and solar PV to support ZEBs.
BEB equipment is costly and requires a large footprint, particularly the switchgear and charging cabinets, which must be close to the bus storage location. Fleet conversion to BEBs also requires a substantial investment in the local power grid to supply adequate power to the site. The local power supplier, Southern California Edison (SCE), is unwilling to make those investments without assurance of a 10-year commitment to the existing transit facility. Under the California State Mandate, CCT must purchase new or replacement CNG buses, and CCT could not transition to an entire ZEB fleet without a new facility. Instead, it would be forced to operate and maintain its current fleet indefinitely, significantly impacting operations and maintenance (O&M) costs, service levels, and the environment. Furthermore, without the ability to transition to ZEBs, CCT's future operations would be out of compliance with the State ZEB mandate, potentially subjecting CCT to fines for non-compliance.
OVERVIEW OF THE 60% CONCEPTUAL DESIGN
The new replacement facility is necessary to ensure the continued operation of CCT's transportation services and enable a transition to an all-ZEB bus fleet. The project design includes the following:
• Administration and Operations Facility • Maintenance Facility • BEB Charging Infrastructure • Bus Wash System and Fuel Island • Covered Bus Fleet / City Pool Vehicle Parking • Employee and Visitor Parking • Landscaping and Climate Resiliency Features • Solar Power Generation Administration and Operations Facility and Employee and Visitor Parking The administration and operations building would accommodate staff offices, cubicles, and file storage rooms; a drivers' room and lobby; a dispatch suite; training/conference rooms; lost and found room; copy/work supply rooms; and a kitchen/break room. Additionally, include an IT/server room, a small recreation area; quiet room; a custodial supply room; a central lobby with a public counter to apply for Dial-A-Ride service and general interaction with administrative staff; public and staff restrooms, and an employee shower room and lockers; employee and visitor parking with electric vehicle (EV) charging stations.
Maintenance Facility
The maintenance building would house general maintenance, inspection, tire, brake, parts distribution, and other daily vehicle maintenance functions. The maintenance facility would include lift bays, a parts and battery storeroom, a tire bay/storage, a lube and compressor room, mechanical and electrical rooms, a floor scrubber and forklift parking area, portable equipment storage and toolbox storage, a common work area, electronics shop, training bay, waste fluid collection, mechanic workstations, a maintenance managers office, a break room, an employee restroom, and a shower room and lockers. Maintenance personnel would work multiple shifts, performing varied tasks seven days a week. The facility design would provide flexibility to allow all maintenance activities to be performed on all shifts for improved efficiencies.
Covered Bus Fleet / City "Pool Vehicles" Parking
After moving through the wash facility, buses would be parked. The BEBs would be connected to an overhead charger for charging overnight in the City vehicle/bus fleet parking area.
This parking area would have shade canopies/structures for better and more efficient vehicle maintenance and employee protection (during pre-and post-trip inspections and vehicle cooling), particularly during extreme weather conditions (e.g., extreme summer heat), and for mounting the facility's solar array.
Solar Power Generation
The new transit facility would include solar array panels to meet CCT's current and future energy needs for BEBs and City vehicles, maintenance and operations facilities, and employee and public charging stations. The initial solar array to power CCT's bus and City vehicle fleet and the facility would be located on the canopies. Harnessing clean energy would lower operating costs and increase resiliency during extreme weather events while also hardening the local electrical grid.
BEB Charging Infrastructure
To provide power for the BEBs, charging infrastructure is proposed as part of the new transit facility design. The infrastructure would enable the new buses to recharge overnight and return to service the following day.
Bus Wash System and Fuel Island
The bus wash system would be used for exterior bus cleaning. Before moving to bus parking, vehicles would transition from washing to interior cleaning, inspection, and other maintenance areas.
Landscaping and Resiliency Features
Climate-appropriate and drought-resistant landscaping (indigenous and compatible with the surrounding area) would be provided to shade employee/visitor parking areas and along boundaries with adjoining properties, as appropriate, and for any street improvements in the right-of-way as recommended by the local jurisdiction. In addition, CCT would complete a drainage analysis for various storm events to ensure adequate site drainage. Emergency backup batteries/power generators will add resiliency, and management software with switch controllers will be installed to maintain continuous power for essential services. ----- REMAINDER INTENTIONALLY BLANK -----
PROJECT BUDGET
Use of Funds Category
Federal Commerce
Description Grant Funds Local Match Cost
Site Work/Covered Bus Parking $16,534,318 $4,133,579 $20,667,897 Elevated Parking Structure $18,460,262 $6,257,716 $31,288,579 Maintenance & Operations Building $25,307,474 $6,326,869 $31,634,343 Fuel Facility/Lanes, Chassis Wash $1,915,862 $478,965 $ 2,394,827 Bus Wash Facility $1,676,367 $500,733 $ 2,177,100
Construction Cost W/O Equipment & Escalation $88,162,746 Cost Escalation to Midpoint $10,841,908 $2,710,477 $13,552,385 Construction Cost W/O Equipment Plus Escalation $101,715,131 Maintenance Equipment $3,200,000 $800,000 $4,000,000
Fueling System $720,000 $180,000 $ 900,000
Wash Equipment $1,600,000 $400,000 $2,000,000
Total Equipment Supply $6,900,000
Equipment Installation $1,932,000 $483,000 $2,415,000 Installation w/Contingency $1,606,341 $553,911 $2,769,553 Cost Escalation $2,215,643 $306,213 $1,857,632
Installation Cost Plus Escalation $7,042,185
Totals $86,525,853 $ 23,131,463 $115,657,316
Percentages 80% 20% 100%
FUNDING SOURCES
Non-Federal Sources of Funding (Local Match)
Sale of the Existing Transit Facility
The estimated $6,645,000 value of the existing transit facility (5555 Jillson St, Commerce, CA 90040) is based on a recent administrative appraisal review completed on November 7, 2022. The City plans to transition the existing transit facility site for residential redevelopment after Transportation is relocated to the new project site at 5926 Sheila Street, Commerce, CA 90040. The existing transit facility site is part of a three-phase proposal by the developer, which will result in 133 new townhomes to be known as Rosewood Village. The existing transit site is slated to be developed with 65 units. The property adjacent to the east of the existing facility is completed with 31 residential units, which are all pre-sold. The other 37 units will be at 5550 Harbor Street, Commerce, CA 90040, north of the existing transit facility. The funds from the property sale will be used as part of the City's local match requirement.
In-Kind Contribution
The City of Commerce (City) submitted a letter to the Federal Transit Administration (FTA) requesting concurrence for the administrative appraisal review and in-kind contribution for the project site located at 5926 Sheila Street, Commerce, California 90040 (Former CREA Property). FTA's review was conducted based on its conformance to the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), and its implementing regulations at 49 CFR Part 24. FTA reviewed the City's in-kind contribution request provided by the City and concurs with the valuation of $9,295,000 to be used as part of the non-federal share in a subsequent FTA-eligible capital grant.
Proposition A 40% Discretionary Grant Funds
Prop A funds are generated by Los Angeles County's one-half percent sales tax for public transit purposes. CCT receives an annual average of $312,084 in Prop A funds and shall designate FY24 allocation towards the project. These funds are allocated through the LA County Metropolitan Transportation Authority (Metro) by formula and were approved by the Metro Board in June 2022. CCT intends to use its FY24 allocation of California State of Good Repair ($16,168) to contribute to this project.
Measure AA
On November 6, 2012, Measure AA was approved by the voters of the City of Commerce and had an average annual revenue of 8 million dollars. The Measure AA funds are generated by the City's one-half of one percent (½%) transactions and use tax within the City of Commerce.
The use of the City's Measure AA sales tax revenue is consistent with the following criteria: 70% is used for one-time infrastructure/capital items; 10% is maintained as reserves; 10% is used for economic development activities/project; 5% is used to cover administrative costs in connection with the implementation of Measure AA and the projects paid for by the Measure; 2.5% is used for City beautification activities and/or projects; and 2.5% is used for public safety activities. Based on the above funding chart, the staff intends to request ($6,000,000) in Measure AA sales tax dollars to contribute towards the local match for the project.
Summary of local match contributions:
Source Amount
Transportation Development Credits $ 1,175,355
California State of Good Repair $ 16,168
In-Kind Contribution (Value of CREA Property) $ 9, 295,000 Value of Existing Transit Facility (Jillson St) $ 6,645,000 Measure AA $ 6,000,000
Total $23,443,607
Note: The local match assumptions are based on the City receiving 80% of Federal funding towards the New Transit Facility Project.
FEDERALLY FUNDED GRANT OPPORTUNITIES
Reconnecting Communities
The City of Commerce recently applied for $15,000,000 in Reconnecting Communities grant funding towards the construction of the new transit facility. Awards announcements are expected in March 2023. The City of Commerce is diligently seeking other funding sources. Suppose the Reconnecting Communities grant application is unsuccessful and/or this project is selected and receives partial funding. In that case, the City is also applying for the following Federal grants programs in Fiscal Year 2023:
Rebuilding American Infrastructure and Sustainability and Equity (RAISE) Low or No Emission Bus Program
Grants for Buses and Buses Facilities
Transit and Intercity Rail Capital Projects
President Biden's Bipartisan Capital Infrastructure program now has new low-interest-rate DOT financing options. The financing program is designed to help fund large capital projects, such as; the Transportation Infrastructure Finance and Innovation Act (TIFIA) Program, which helps cover any remaining unfunded project costs.
The City staff has already contacted the United States Department of Transportation to discuss the requirements to secure a loan, if necessary.
Other Potential Funding Sources
Private Investment
The Southern California Edison (SCE) Charge Ready Transport Program helps install charging infrastructure to save money, eliminate tailpipe emissions, and power large fleets. The program provides incentives and rebates for EV infrastructure (depending on facility location and vehicle types), construction, and mainline power delivery upgrades. Under this program, SCE helps cover the cost of bringing the anticipated power needed to the new site from the nearest substation. The program also can provide substantial construction and logistical support, including site design and permits. CCT will apply to participate in the program when it is further along in the transit facility design process.
BEB Fleet Sources of Funds
Several programs in California are designed to help transit agencies purchase ZEBs. State Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) pay a portion of the cost of ZEB directly to the manufacturer lowering the initial cost of ZEBs. Additionally, the local air district has bus procurement funding and assists school districts in updating their fleets. California Volkswagen Environmental Mitigation Trust funds are also available on a competitive basis. Funding from Federal sources such as the 5339 Low No Emission Vehicle Program or Bus and Bus Facilities Program will also be requested to offset the high cost of ZEB adoption.
RELATIONSHIP TO STRATEGIC GOALS
This agenda item relates to the 2016 Strategic Plan - Goal #6: "Enhance Quality of Life Goal,"; this project helps the City move one step closer to building affordable homes in the community; and ensures the City of Commerce Transit complies with the CARB zero-emission mandate, which improves the overall quality of life in Commerce.
ALTERNATIVES:
Approve staff's recommendation.
Reject staff's recommendation.
Provide staff with alternate or further direction.
Prepared and recommended by: Claude McFerguson, Director of Transportation Fiscal impact reviewed by: Josh Brooks, Director of Finance Approved as to form: Noel Tapia, City Attorney
Respectfully submitted: Edgar P. Cisneros, City Manager Attachments:
Resolution
Conceptual 60% Design Presentation
CITY OF COMMERCE
AGENDA REPORT
Item No.