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CC - CONSENT ITEM: (1) Adoption of a Resolution Authorizing Staff to Submit Applications for Various Grant Funding Opportunities Identified through June 30, 2023 for Transportation Projects and Programs; and (2) Adoption of a Resolution Authorizing Staff to Submit Applications through June 30, 2023 for Grant Funding Associated with the Purchase of Alternative Fuel Vehicles and Other Emission Control Technologies.
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Meeting Date: August 8, 2022
Contact Person/Dept: Nick Szamet & Allison Cohen/Transportation Department
Phone Number: (310) 253-6523
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Attachments: Yes [X] No []
Commission Action Required: Yes [] No [X] Date:
Public Notification: (E-Mail) Meetings and Agendas - City Council (08/03/2022)
Department Approval: Rolando Cruz, Chief Transportation Officer (07/20/2022)
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RECOMMENDATION
Staff recommends the City Council (1) adopt a resolution authorizing staff to submit applications for various grant funding opportunities identified through June 30, 2023 for transportation projects and programs (Attachment 1); and (2) adopt a resolution authorizing staff to submit applications through June 30, 2023 for grant funding associated with the purchase of alternative fuel vehicles, infrastructure and other emission control technologies, namely, Clean Transportation Funding from the Mobile Source Reduction Committee (MSRC) and the South Coast Air Quality Management District (AQMD), to assist the City in achieving clean air mandates in the South Coast Region of California (Attachment 2).
BACKGROUND/DISCUSSION
Grant Application Authority
Per the City’s Administrative Procedures for Grant Submission and Management, Article VI, City staff are required to retain authorization to submit grant applications on behalf of the City. The Transportation Department applies for multiple grants for programs, on both a formula and competitive basis, as they are identified throughout the year. Grants provided by federal, State of California, and regional entities are all considered and utilized based on grant funding program objectives, department needs, and administrative capacity. The Transportation Department utilizes multiple sources as matching funds to meet cost-sharing requirements for these grants, none of which are supplied by the City’s General Fund. Matching sources are comprised of local-return allocations from sales tax measures, State Transportation Development Act and Transportation Assistance funds, among other sources, which comprise a patchwork of transit funding in Los Angeles County, the State of California and nationally.
Authority to apply for grant programs shall not supersede any additional requirements imposed by the granting agencies, such as, but not limited to, a requirement that a City Council resolution be submitted for a specific grant application and/or receipt of grant funding, and shall not supersede any other requirements as set forth in the Administrative Procedures which are not consistent with the authority granted by the proposed Resolution. Prior to submission of all grant applications, staff will secure written approval from the Chief Financial Officer and the City Manager.
As was most recently demonstrated by the COVID-19 pandemic, transit is uniquely vulnerable to downstream impacts of reductions in funds given the heavily subsidized nature of transit in the United States. Maintaining a proactive and nimble approach to sourcing funds is tantamount to maintaining service levels, while meeting the strategic objectives of electrification, increased ridership, and innovative service delivery in the face of funding constraints.
MSRC and AQMD Application Resolution
The City, situated in the South Coast Region of California, is mandated to comply with State and local clean air rules for municipal fleets, as administered by the AQMD.
Every year, the AQMD and the MSRC allocate discretionary funds for clean air projects to assist local fleets in meeting these mandates. Proposals are solicited from cities, counties, school districts and private businesses for grant funded projects including, but not limited to, electric and alternative-fuel refueling infrastructure; heavy-duty alternative fuel vehicle purchases; alternative fuel refuse vehicle purchases; diesel retrofit devices for off-road construction equipment; and transit bus purchases.
The City has been committed to the use of renewable compressed natural gas (RCNG) as the alternative fuel of choice for our City’s fleet, and has recently transitioned to battery electric, zero-emission vehicle technologies. These alternative fuel sources solidify the City’s opportunity to apply for grant funding to assist in off-setting the costs of zero emission engines versus their diesel- and unleaded-fueled counterparts, as well as grant funds toward CNG refueling station and electric vehicle charging infrastructure. The City’s receipt of AB2766 Subvention Funds also establishes eligibility to participate in Local Government Match Programs offered annually by the MSRC. Staff continues to monitor state and local clean air legislation and keeps informed about opportunities to obtain assistance with the purchase of alternative fuel vehicles and other emission control technologies.
On July 12, 2021, the City Council adopted a Resolution which provided authority for staff to pursue these grants during Fiscal Year 2022-2023. Staff is requesting the City Council adopt a similar resolution for the upcoming fiscal year.
Since the initiation of air quality grant activities in 2002, the City has been awarded over $2.5 million in grant funds from the AQMD and the MSRC for the purchase of alternative fuel vehicles and associated clean air projects. In addition, staff manages the AB2766 Subvention Fund which is utilized to replace petroleum-fueled vehicles which have reached the end of their useful life. These replacements include a variety of alternative fuel vehicles for City use, including hybrid electric vehicles, plug-in electric vehicles, and light-, medium- and heavy-duty RCNG vehicles. These funds are also utilized for alternative fuel infrastructure enhancement projects such as the City’s RCNG refueling station and electric vehicle charging stations for the City’s fleet.
The AQMD and MSRC require documented authorization by the City Council for signatory authority on grant applications and associated awarded contracts. The proposed resolution, if adopted by the City Council, would provide such authorization to continue the pursuit of these grant funds during Fiscal Year 2022-2023.
FISCAL ANALYSIS
Awarded grant funds are used to off-set the costs for the alternative fuel vehicles and contribute toward alternative fuel infrastructure project costs. Purchases of new alternative fuel vehicles which do not impact the General Fund, such as replacements for transit buses that have reached their useful life, are acquired using federal and local funds allocated annually in the Transportation Department budget. The purchase of alternative fuel vehicles and equipment is reviewed on an annual basis by the City Council as part of the budget process.
No General Fund monies are necessary to implement the grant funding process.
ATTACHMENTS
1. 2022-08-08_ATT 1_Resolution_Transportation Projects and Programs Grant Applications
2. 2022-08-08_ATT_Resolution_Air Quality Grant Applications
MOTIONS
That the City Council:
1. Adopt of a Resolution authorizing staff to submit applications for various grant funding opportunities as identified through June 30, 2023 for transportation projects and programs; and
2. Adopt a Resolution authorizing the submittal of grant applications and acceptance of such approved funding made available by the AQMD and the MSRC to June 30, 2023 for the purchase of alternative fuel vehicles and other emission control technologies.