FOR THE COUNCIL MEETING OF SEPTEMBER 20, 2022
COUNCIL AGENDA REPORT
TO: City Council
FROM: City Manager
Prepared by: Interim Public Works Director
SUBJECT: ACCEPTANCE OF FEDERAL TRANSIT ADMINISTRATION (FTA) FY 2022 5339(c) LOW -NO GRANT
RECOMMENDATION:
That the City Council adopt a Resolution accepting Federal Transit Authority Section 5339(c) Low -No grant funds, approving the appropriation of said funding, and amending the Transit Enterprise's adopted Fiscal Year 2022-2024 Budget to reflect the receipt of said revenue.
BACKGROUND:
On March 7, 2022, the Federal Transit Administration (FTA) announced approximately $1.1 billion in funding available for Fiscal Year (FY) 2022 grants to help modernize bus fleets and bus facilities across the country, including assistance for transit agencies to purchase Low -or -No- emission vehicles.
On August 16, 2022, FTA officially announced the list of projects that secured Low -No funding. Within the 750 submitted applications, the City of Santa Maria's project was selected and awarded $6,664,318. The project consists of replacing five diesel buses, that have met the end of their useful life, with six new battery electric buses, Center for Transportation and the Environment (CTE) project management services, and the procurement of a bus operator virtual bus training simulator from FAAC, Inc.
DISCUSSION:
Santa Maria Regional Transit (SMRT) has begun its transition to a zero -emissions bus fleet to comply with State mandates. With the adoption of the City's 2022-2024 budget, the Transit Division has been authorized to spend $22 million in Federal and State funding over the next two fiscal years to support the purchase of electric vehicles. With $14 million in annually allocated Federal (5307) funds already in hand, Low -No (5339c) funds provide the remaining $6 million needed to acquire all budgetary approved electric vehicle acquisitions.
1 Procurement of Gilliq Buses, CTE Proiect Management, and Bus Simulator Federal Low -No funding has the distinction from other federal grants in provisioning for partnerships between transit providers and bus manufacturers. This provision allows for agencies to pre -identify vendor partners that are necessary for the successful completion of the project. SMRT selectively partnered with various vendors to present a competitive grant application.
SMRT has partnered with California bus manufacturer, Gillig, Inc., in its Low -No grant application for the purchase of the six electric buses. The six electric buses will be added to SMRT's impending fleet of Proterra and New Flyer electric buses procured with other funding sources. All buses will come with the new SMRT branding livery, additional passenger amenities, as well as the latest in air quality management systems.
Similarly, SMRT has secured the services of CTE for project management services as part of its grant application. CTE offers a full suite of technical advisory and project management services to support agencies deploying zero -emission buses and supporting infrastructure. CTE services will be relied upon for technical, logistical, and operational analysis needs.
Unique to this year's Low -No grants is an added requirement for a "workforce development" component of each grant application, whereby some of the funding would be used to cultivate and develop labor technical skills and abilities needed as part of the transition to the new technology. A virtual bus driver training simulator from FAAC is included in the grant as part of the SMRT's workforce development program. This simulator will be used to train current and future bus operators on the nuances of operating an electric bus, as opposed to a diesel bus.
As part of FTA's Notice of Award of SMRT's grant application, the procurement of grant - identified project components is accepted from FTA as part of the completion of the project. Sole source procurements will proceed with each of the preselected vendors.
Fiscal Considerations
The acceptance of $6,664,318 in federal funds represents a significant windfall for the City's Transit Enterprise fund. These funds represent 80% of the total project costs identified within the grant. The award of these funds is predicated on a local match. The remaining 20% local match, in the amount of $1,666,481 is covered by the Transit Program's positive balance in State TDA funds.
Transitioning to electric buses is anticipated to save the transit program's operating budget around $300,000 annually in fuel and maintenance costs. These cost savings will become essential to help absorb anticipated increased labor costs from the City's Transit contractor and will help to postpone fare increases for riders. 2 Impact to the Community
The transition to electric buses will help the Transit Program and the riders who rely upon its services. Using these "one-time" discretionary grant awards for the capital purchase of electric buses is anticipated to save the program over $300,000 a year in annual fuel and maintenance operating costs. The annual cost savings will help offset increased labor costs and delay fare increases for riders. Riders and the community would benefit from zero -emission vehicles, reducing both environmental and noise pollutants typically caused by fossil fuel vehicles.
Alternatives
The City Council could choose to deny acceptance of the Federal Low -No Grant funds.
However, staff does not recommend this action as it would forgo $6.6 million in revenue SMRT could use to transition to electric vehicles, as necessary to comply with State mandates.
GAMALIEL ANGUIANO
Transit Manager
BRETT FULGONI
Interim Public Works Director
Attachment A— Grant Information Form
3 Attachment A
City of Santa Maria
11i1� Finance Department
GRANT INFORMATION FORM
Complete this form for each approved grant. Attach a copy of the grant award letter to the form and the approved Council resolution (if grans it $50,000 or more); forward both to the Finance Department.
Fiscal Year of Grant: 2022
Funding Agency: Federal Transit Administration (FTA)
Date City Council Approved:
Grant Award #: TBD
Department Contact and Ext: Transit Manager
Pass -through Agency: n/a
Department: PW - Tranit
Pass -through No. n/a
Name of Grant:
Low or No Emissions
Funding Period:
2026
Amended Through:
Reporting Requirements (Examp e: Report, quarterly, to pass through agency):
Quarterly Milestone & Federal Financial Reporting to FTA Type of Grant:
Federal — CFDA # 5339 (c)
Method of Funding:
Reimbursement CI
State:
Frequency of Funding: ECHO Drawdown
County:
Other:
Grant Agency Amount:
City Matching Funds:
80% Federal
$6,664,318.00
/ 20% Local
$1,332,863.60
City Expenditure Account Number:
City Revenue Account Number:
NEW
NEW
Grant Billing Information (where AR invoice is sent)
Grantor Name: Office of Program Management - FTA
Billing Address: 1200 New Jersey Avenue, S.E.
City, State Zip: Washington, DC 20590
City Program and/or Purpose of Grant:
Procure six Battery Electric Buses from Gillig, Inc.; CTE Infrastructure Project Management & Workforce Development procurement virtual driving simulator from FAAC, Inc.
Revised 6/2019
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MARIA, CALIFORNIA, ACCEPTING FEDERAL TRANSIT AUTHORITY
SECTION 5339(C) LOW -NO GRANT FUNDS, APPROVING THE
APPROPRIATION OF SAID FUNDING, AND AMENDING THE TRANSIT ENTERPRISE'S ADOPTED FISCAL YEAR 2022-2024 BUDGET TO
REFLECT THE RECEIPT OF SAID REVENUE
WHEREAS, on March 7, 2022, the Federal Transit Administration (FTA) announced approximately $1.1 billion in funding available for fiscal year 2022 grants to help modernize bus fleets and bus facilities across the country, including assistance for transit agencies purchase Low -or -No emission vehicles; and WHEREAS, on August 16, 2022, FTA officially announced the list of projects that secured Low -No funding. Within the 750 submitted applications, the City of Santa Maria's project was selected and awarded $6.6 million; and WHEREAS, the project consists of replacing five diesel buses that have met the end of their useful life with six new battery electric buses, project management services for infrastructure oversight, and the procurement of a bus operator virtual bus training simulator; and
WHEREAS, the federal Low -No funding has the distinction from other federal grants in provisioning for partnerships between transit providers and bus manufacturers. Santa Maria Regional Transit (SMRT) selectively partnered with various vendors to present a competitive grant application; and WHEREAS, SMRT has partnered with Califomia bus manufacturer, Gillig, Inc., for the purchase of the six electric buses; and
WHEREAS, SMRT has secured the services of CTE for infrastructure project management services, including completion of technical, logistical, and operational analysis needs forthe project; and
WHEREAS, to fulfill the workforce development component of the Low -No award, the procurement of a virtual bus driver training simulator from FAAC, Inc, is included in the award. This simulator will be used to train current and future bus operators on the nuances of operating an electric bus, as opposed to a diesel bus; and
WHEREAS, as part of FTA's Notice of Award of SMRTs grant application, the procurement of grant -identified project components is accepted and awarded by FTA as part of the completion of the project. Sole source procurements will proceed with each of the preselected vendors.
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Santa Maria, Califomia, as follows:
1. Accepts the Federal Transit Authority Section 5339(c) Low -No grant funds, and approves the appropriation of$6,664,318 in saidfunding; and
2. Authorizes the City Manager, or his designee, to execute all forms and documents, and coordinate the implementation of the grant and the awarded project; and approves amending the Transit Enterprise's adopted Fiscal Year 2022-2024 Budget to reflect receipt of said revenue; and
3. The Chief Deputy City Clerk is hereby authorized to make minor changes herein to address clerical errors, so long as substantial conformance of the intent of this document is maintained. In doing so, the Chief Deputy City Clerk shall consultwith the City Manager and City Attomey conceming any changes deemed necessary.
PASSED AND ADOPTED at a regular meeting of the City Council of the City of Santa Maria, Califomia, held this 20th day of September 2022.
ATTEST:
Chief Deputy City Clerk
Mayor
2 APPROVED AS TO
APPROVED •
Department Director
' City Manager