FOR THE COUNCIL MEETING OF APRIL 16, 2024
COUNCIL AGENDA REPORT
TO: City Council
FROM: Interim City Manager Alex Posada
BY: Director of Public Works Brett Fulgoni
SUBJECT: Santa Maria Regional Transit F iscal Year 2023-24 Low Carbon Operations Program Grant Application, Solar Array E lectric Vehicle Charger
Description:
The City Council will consider authorizing the Transit Program’s recommended F iscal Year 2023-24 L ow Carbon Operations Program grant application for the amount of $213,970 to be used for the purchase of two off-grid solar array electric vehicle chargers, off the C alifornia Department of Goods & Services contract, to support the Transit Program’s fleet electrification efforts.
Environmental Notice: The activity is not a “Project” as defined under Section 15378 of the California Environmental Quality Act State Guidelines; therefore, pursuant to State Guidelines Section 15060(c)(3) no environmental review is required.
RECOMMENDATION:
Adopt a Resolution authorizing the execution of the Certifications and Assurances and authorized agent forms for the Low Carbon Transit Operations Program, approve the grant application and receipt of F iscal Year 2023-24 Low Carbon Operations Program grant funding for $213,970 for the purchase of two Solar Array Electric Vehicle Chargers, designate representatives to act on City Council’s behalf, and amend the Transit Program’s Capital Maintenance Equipment Project Budget to reflect this project.
BACKGROUND:
The Low Carbon Transit Operations Program (LCTOP) was created by the State of California to provide operating and capital assistance for transit agencies to reduce their greenhouse gas emissions and improve mobility. Approved LCTOP proje cts include the support of new or expanded bus or rail services, expansion of intermodal transit facilities, and may include equipment acquisition, fueling, maintenance, and other costs to operate those services or facilities, as long as the project suppor ts reducing greenhouse gas emissions. For service areas that include disadvantaged communities (DAC), at least 50 percent of the total funds received shall be expended on projects that will benefit DAC.
2 DISCUSSION:
In March 2024, Caltrans released the final LCTOP guidelines for the F iscal Year (FY) 2023/24 funding cycle. The State Controller’s Office has allocated the $1,166,938 in discretionary funds available to the transit operators of Santa Barbara County based on population and $295,605 available directly to transit operators based on farebox recovery.
The Santa Barbara County Association of Governments (SBCAG) administers the discretionary population-based LCTOP Funds (designated 99313) with a mutually agreed upon 43 percent, 12 percent, 45 percent split; where 43 percent of the funds go to South County transit operators, 12 percent to Regional Transit/Rail projects, and 45 percent to the North County transit operators, after DAC of Goleta and Guadalupe receive project priority funding.
After an informal Call for Projects, the North County transit operators [Santa Maria Regional Transit (SMRT), Lompoc Colt, Santa Ynez Valley Transit, Guadalupe Flyer, and SMOOTH] collaboratively divided up the North County discretionary funds (designated 99313 fund s), with Guadalupe receiving funding priority, as a recognized DAC. The smaller and remaining farebox -based component of LCTOP funds (designated 99314 funds) are allocated directly to the transit operators, unless they contribute them to another operator’s project. In total , the City of Santa Maria is to receive $213,970 in combined 99313 and 99314 LCTOP funding.
Santa Maria Regional Transit Proposed Project
After a careful review of LCTOP guidelines for qualifying projects, as well as the Transit Program’s fiscally constrained capital project list, the City’s SMRT system recommends the purchase of two Beam Global off -grid Electric Vehicle ARC solar-powered vehicle charging systems to be used to energize the City’s growing fleet of electric vehicles (EV).
Each EV ARC™ charging system fits in a standard parking space and generates and stores its own clean solar energy. The systems are flood -proof to 9.5 feet, have a wind rating up to 160 mph, and are transportable so they can be relocated as needed. The EV ARC™ is deployed with no digging, no construction, and no electric grid connection, ideal for spaces that have limited or no grid connection. The EV ARC™ systems’ off -grid capabilities eliminate the need for costly infrastructure upgrades and allow SMRT to quickly deploy charging stations to remote locations to support the City’s public transit fleet energy needs.
Alternative(s)
An alternative is not to approve the proposed SMRT FY 23-24 LCTOP grant application project. This is not a recommended alternative as this action would mean that the City of Santa Maria would forgo these (tentative to council action) awarded funds and cause the transit program to rely on other funding sources to complete a similar project.
A second alternative is to modify the project to another that would also align with LCTOP- qualifying projects. However, this alternative is not recommended, as the current project recommendation is based on the Transit P rogram’s capital expenditure priority needs, 3 which support the Transit Program’s need to comply with the Air Resource Board’s mandates for the 100 percent transition to a zero-emission fleet.
Fiscal Considerations
The City of Santa Maria’s Procurement Manual allows for City departments to leverage consortium contracts for procurements. The procurement of these units will be based on the prices made available to the City of Santa Maria by the State of California’s Department of Goods & Services contract (State of California Department of General Services – Beam Global EV ARC Cooperative Contract Landing Page).
After selecting the necessary and desired specifications for these units, each unit is anticipated to cost (circa) $138,990. The total proje ct cost for two EV ARC™ units is $277,980. Of these, 100 percent ($277,980) of the project will be covered by the LCTOP grant.
The transition to electric -powered vehicles is expected to result in immediate and long - term operational cost savings when compa red to operating equivalent fossil -fueled vehicles. This project supports this transition. Further, the City may be eligible for incentives and rebates for the purchase of equipment like this from the State’s, Federal’s, Air Resource Board’s carbon emission reduction goal incentive programs.
Impact to the Community
There is no negative impact on the community for applying for, and ultimately being awarded, LCTOP funds. The award of these funds will help alleviate the Transit Program’s reliance on less consistent funding sources to carry out a similar project. The final project, to support the electric fleet with charging infrastructure, will also support transit service reliability for our community’s transit-dependent populations.