HomeMy WebLinkAboutStaff Report 3.B 03/18/2019DATE
TO:
FROM
Agenda Item #3.B
March 18, 2019
Honorable Mayor and Members of the City Council through City Manager
Dan St. John, F.ASCE — Director, Public Works and Utilities
Jared Hall — Transit Manager, Public Works and Utilities
SUBJECT: Recommendation for City Council to Approve a Resolution Authorizing the
Submission of an Application for the Low Carbon Transit Operations Program
and the Execution of the Certifications and Assurances and Authorized Agent
Forins for the following project: Purchase One Replacement Zero -Emission Bus.
RECOMMENDATION
It is recommended that the City Council adopt a Resolution Authorizing Submittal of Low
Carbon Transit Operations Program (LCTOP) Grant Application for $130,819 towards purchase
of a zero -emission bus and Designating the City Manager as the Authorized Agent to Submit and
Accept Funding on Behalf of the City of Petaluma.
BACKGROUND
The LCTOP is one of several programs that are part of the Transit, Affordable Housing, and
Sustainable Communities Program established by the California Legislature in 2014 with Senate
Bill 862. SB 862 established LCTOP as a non-competitive, formula -based program, with 5% of
annual cap -and -trade auction proceeds being continually appropriated since 2015. LCTOP funds
are distributed based on prior use of State Transit Assistance (STA) funds with 50% of funding
designated to regional entities and the other 50% for transit operators. LCTOP was created to
provide operating and capital assistance to transit agencies with the goal of reducing greenhouse
gas emissions and improving mobility with an emphasis on serving Disadvantaged Communities.
The program is administered by Caltrans in coordination with the California Air Resources
Board (CARB) and the State Controller's Office.
DISCUSSION
For the FY 18/19 allocation, Petaluma is programmed to receive a total of $130,819, up from
$87,195 the prior year, due to increased revenue through statewide Cap and Trade auctions. This
amount is based upon a combination of the revenue generated by Petaluma Transit and City
population for FYI 8. All regional entities and transit operators expecting to receive LCTOP
funds are required to submit both the Authorized Agent and Certifications and Assurances
documents to the department annually prior to receiving funding. The Certifications and
Assurances must be accompanied by a governing board resolution. For FY 19/20, these
documents should be submitted no later than March 28, 2019. Eligible agencies who do not
submit the Authorized Agent form, Certifications and Assurances document, and project list
could risk losing their apportionment for that specific fiscal year to another operator within the
region.
LCTOP funds are to be expended by transit agencies on operating or capital projects that reduce
greenhouse gas emissions and improve mobility, with a priority on serving disadvantaged
communities, and fulfill any of the following goals:
1. Expenditures that directly enhance or expand transit service by supporting new or
expanded bus or rail services, new or expanded water -borne transit, or expanded
intermodal transit facilities, and may include equipment acquisition, fueling,
maintenance, and other costs to operate those services or facilities.
2. Operational expenditures that increase transit anode share.
3. Expenditures related to the purchase of zero -emission buses, including electric buses, and
the installation of the necessary equipment and infrastructure to operate and support zero -
emission buses.
Of the three criteria, option three best meet the current needs of Petaluma Transit while
simultaneously maintaining funding flexibility through other sources, including STA and TDA to
go towards operational needs
Funding provided through the LCTOP grant will be set aside to serve as matching funds towards
replacement of an existing fixed route bus in FY 20/21. The new bus will be funded through
FTA 5307 funds (82%), with the local match (18%) made up of LCTOP. Using these funds
towards the purchase of the new bus will enable Petaluma Transit to meet the LCTOP program
goal of reducing greenhouse gas emissions, while preserving TDA reserve funds for general
operating use. The bus being replaced, having reached the end of its useful life, will be auctioned
off for sale.
On December 14, 2018, the California Air Resources Board approved the Innovative Clean
Transit Regulation, which requires California transit agencies to gradually transition their buses
to zero -emission technology. In line with this policy, Petaluma Transit intends to purchase a
Zero -Emission Bus in FY20/21 to replace an outgoing diesel bus. Additional City Council
action will be required at the time of acquisition.
The proposed action meets Council Goals: "Improve and Enhance Fiscal Stability and
Sustainability."
NEVIN PER N 104 1 6A
The FY 18/19 LCTOP allocation represents $130,819 in capital funding for FY 20/21, which
will permit the City to replace a bus that has reached the end of its useful life, without using
TDA funds.
I
ATTACHMENTS
1. Resolution
2. Certifications & Assurances
3. Authorized Agent Form
Attachment 1
RESOLUTION AUTHORIZING THE SUBMITTAL OF AN APPLICATION FOR THE
LOW CARBON TRANSIT OPERATIONS PROGRAM (LCTOP)
AND THE EXECUTION OF THE CERTIFICATIONS AND ASSURANCES
WHEREAS, the City of Petaluma is an eligible project sponsor and may receive state
funding from the Low Carbon Transit Operations Program (LCTOP) for transit projects; and
WHEREAS, the statutes related to state -funded transit projects require a local or
regional implementing agency to abide by various regulations; and
WHEREAS, Senate Bill 862 (2014) named the Department of Transportation
(Department) as the administrative agency for the LCTOP; and
WHEREAS, the Department has developed guidelines for administering and distributing
LCTOP funds to eligible project sponsors (local agencies); and
WHEREAS, the City of Petaluma wishes to delegate authorization to execute these
documents and any amendments thereto to the City Manager; and
WHEREAS, the City of Petaluma wishes to implement the following LCTOP project(s)
listed below,
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma
that the fund recipient agrees to comply with all conditions and requirements set forth in the
Certification and Assurances and the Authorized Agent documents and applicable statutes,
regulations, and guidelines for all LCTOP funded transit projects; and
NOW THEREFORE, BE IT FURTHER RESOLVED that Peggy Flynn, City
Manager, be authorized to execute all required documents of the LCTOP program and any
Amendments thereto with the California Department of Transportation; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Petaluma
that it hereby authorizes the submittal of the following project nomination(s) and allocation
request(s) to the Department in FY 2018-19 LCTOP funds:
Project Name: Purchase One Zero -Emission Replacement Bus
Amount of LCTOP funds requested: $130,819
Short description of'project: This project will replace a diesel bus, which will have reached
the end of its useful life, with a zero -emission bus in FY 20/21.
Benefit to a Prioritv Populations: N/A
Contributing Sponsors (if applicable): Metropolitan Transportation Commission
11
Attachment 2
F FY 2018-2019 LCTOP
Certifications and Assurances
Lead Agency: p....,, .
Project Title:
Prepared by: lip
The California Department of Transportation (Caltrans) has adopted the following
Certifications and Assurances for the Low Carbon Transit Operations Program (LCTOP).
As a condition of the receipt of LCTOP funds, Lead Agency must comply with these
terms and conditions.
A. General
The Lead Agency agrees to abide by the current LCTOP Guidelines and applicable legal
requirements.
2. The Lead Agency must submit to Caltrans a signed Authorized Agent form designating
the representative who can submit documents on behalf of the project sponsor and a
copy of the board resolution appointing the Authorized Agent.
B. Project Administration
1. The Lead Agency certifies that required environmental documentation is complete before
requesting an allocation of LCTOP funds. The Lead Agency assures that projects
approved for LCTOP funding comply with Public Resources Code § 21100 and § 21150.
2. The Lead Agency certifies that a dedicated bank account for LCTOP funds only will be
established within 30 days of receipt of LCTOP funds.
3. The Lead Agency certifies that when LCTOP funds are used for a transit capital project,
that the project will be completed and remain in operation for its useful life.
4. The Lead Agency certifies that it has the legal, financial, and technical capacity to carry
out the project, including the safety and security aspects of that project.
5. The Lead Agency certifies that they will notify Caltrans of pending litigation, dispute, or
negative audit findings related to the project, before receiving an allocation of funds.
6. The Lead Agency must maintain satisfactory continuing control over the use of project
equipment and facilities and will adequately maintain project equipment and facilities for
the useful life of the project.
7. Any interest the Lead Agency earns on LCTOP funds must be used only on approved
LCTOP projects.
8. The Lead Agency must notify Caltrans of any changes to the approved project with a
Corrective Action Plan (CAP).
F FY 2018-2019 LCTOP
Certifications and Assurances
9. Under extraordinary circumstances, a Lead Agency may terminate a project prior to
completion. In the event the Lead Agency terminates a project prior to completion, the
Lead Agency must (1) contact Caltrans in writing and follow-up with a phone call
verifying receipt of such notice; (2) pursuant to verification, submit a final report
indicating the reason for the termination and demonstrating the expended funds were
used on the intended purpose; (3) submit a request to reassign the funds to a new project
within 180 days of termination.
C. Reporting
1. The Lead Agency must submit the following LCTOP reports:
a. Semi -Annual Progress Reports by May 15th and November 15th each year.
b. A Final Report within six months of project completion.
c. The annual audit required under the Transportation Development Act (TDA), to
verify receipt and appropriate expenditure of LCTOP funds. A copy of the audit
report must be submitted to Caltrans within six months of the close of the year
(December 31) each year in which LCTOP funds have been received or
expended.
d. Project Outcome Reporting as defined by CARB Funding Guidelines.
2. Other Reporting Requirements: CARB is developing Funding Guidelines that will
include reporting requirements for all State agencies that receive appropriations from the
Greenhouse Gas Reduction Fund. Caltrans and project sponsors will need to submit
reporting information in accordance with CARB's Funding Guidelines, including
reporting on greenhouse gas reductions and benefits to disadvantaged communities.
D. Cost Principles
1. The Lead Agency agrees to comply with Title 2 of the Code of Federal Regulations 225
(2 CFR 225), Cost Principles for State and Local Government, and 2 CFR, Part 200,
Uniform Administrative Requirements for Grants and Cooperative Agreements to State
and Local Governments.
2. The Lead Agency agrees, and will assure that its contractors and subcontractors will be
obligated to agree, that:
a. Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition
Regulations System, Chapter 1, Part 31, et seq., shall be used to detennine the
allow ability of individual project cost items and
b. Those parties shall comply with Federal administrative procedures in accordance
with 2 CFR, Part 200, Uniform Administrative Requirements for Grants and
Cooperative Agreements to State and Local Governments. Every sub -recipient
receiving LCTOP funds as a contractor or sub -contractor shall comply with
F FY 2018-2019 LCTOP
Certifications and Assurances
Federal administrative procedures in accordance with 2 CFR, Part 200, Uniform
Administrative Requirements for Grants and Cooperative Agreements to State
and Local Governments.
3. Any project cost for which the Lead Agency has received funds that are determined by
subsequent audit to be unallowable under 2 CFR 225, 48 CFR, Chapter 1, Part 31 or 2
CFR, Part 200, are subject to repayment by the Lead Agency to the State of California
(State). All projects must reduce greenhouse gas emissions, as required under Public
Resources Code section 75230, and any project that fails to reduce greenhouse gases shall
also have its project costs submit to repayment by the Lead Agency to the State. Should
the Lead Agency fail to reimburse moneys due to the State within thirty (30) days of
demand, or within such other period as may be agreed in writing between the Parties
hereto, the State is authorized to intercept and withhold future payments due the Lead
Agency from the State or any third -party source, including but not limited to, the State
Treasurer and the State Controller.
A. Record Retention
1. The Lead Agency agrees and will assure that its contractors and subcontractors shall
establish and maintain an accounting system and records that properly accumulate and
segregate incurred project costs and matching funds by line item for the project. The
accounting system of the Lead Agency, its contractors and all subcontractors shall
conform to Generally Accepted Accounting Principles (GAAP) and enable the
determination of incurred costs at interim points of completion. All accounting records
and other supporting papers of the Lead Agency, its contractors and subcontractors
connected with LCTOP funding shall be maintained for a minimum of three (3) years
after the "Project Closeout" report or final Phase 2 report is submitted (per ARB Funding
Guidelines, Vol. 3, page 3.A-16), and shall be held open to inspection, copying, and audit
by representatives of the State and the California State Auditor. Copies thereof will be
furnished by the Lead Agency, its contractors, and subcontractors upon receipt of any
request made by the State or its agents. In conducting an audit of the costs claimed, the
State will rely to the maximum extent possible on any prior audit of the Lead Agency
pursuant to the provisions of federal and State law. In the absence of such an audit, any
acceptable audit work performed by the Lead Agency's external and internal auditors
may be relied upon and used by the State when planning and conducting additional
audits.
2. For the purpose of determining compliance with Title 21, California Code of Regulations,
Section 2500 et seq., when applicable, and other matters connected with the performance
F FY 2018-2019 LCTOP
of the Lead Agency's contracts with third parties pursuant to Government Code § 8546.7,
the project sponsor, its contractors and subcontractors and the State shall each maintain
and snake available for inspection all books, documents, papers, accounting records, and
other evidence pertaining to the performance of such contracts, including, but not limited
to, the costs of administering those various contracts. All of the above referenced parties
shall make such materials available at their respective offices at all reasonable times
during the entire project period and for three (3) years from the date of final payment.
The State, the California State Auditor, or any duly authorized representative of the State,
shall each have access to any books, records, and documents that are pertinent to a
project for audits, examinations, excerpts, and transactions, and the Lead Agency shall
furnish copies thereof if requested.
3. The Lead Agency, its contractors and subcontractors will permit access to all records of
employment, employment advertisements, employment application forins, and other
pertinent data and records by the State Fair Employment Practices and Housing
Commission, or any other agency of the State of California designated by the State, for
the purpose of any investigation to ascertain compliance with this document.
F. Special Situations
Caltrans may perform an audit and/or request detailed project information of the project
sponsor's LCTOP funded projects at Caltrans' discretion at any time prior to the
completion of the LCTOP.
I certify all of these conditions will be met.
Peggy Flynn
(Print Authorised Agent)
City Manager
(Title)
(Signature) (Date)
F FY 2018-2019 LCTOP
Allocation
Lead Agency: n
Protect Title: p.o
Regional
Entity
County: o,k
Lead ALFenev: I certify the scope, cost, schedule, and benefits as identified in the attached
Allocation Request (Request) and attachments are true and accurate and demonstrate a fully
funded operable project. I understand the Request is subject to any additional restrictions,
limitations or conditions that may be enacted by the State Legislature, including the State's
budgetary process and/or auction receipts. In the event the project cannot be completed as
originally scoped, scheduled and estimated, or the project is terminated prior to completion, Lead
Agency shall, at its own expense, ensure that the project is in a safe and operable condition for
the public. I understand this project will be monitored by the California Department of
Transportation - Division of Rail and Mass Transportation.
Authorized Agent: Peggy Flynn
Title: City Manager
Lead Agency: City of Petaluma
Signature:
PUC Funds Type: 99313 $ , e.o° uu .pn,, .:. .
PUC Funds Type: 99314 $ 8,674
Contributing Sl)onsor(s): The contributing sponsor is an entity that passes funds to the
Lead Agency to support a project. The contributing sponsor could be the regional entity (PUC
99313) passing their funds to a recipient agency within their region or a recipient agency (PUC
99314) passing their funds through to either a regional entity or a recipient agency within their
region. The contributing sponsor(s) must also sign and state the amount and type of LCTOP
funds (PUC Sections 99313 and 99314) they are contributing the project. Sign below or attach a
separate officially signed letter providing that information. If there is more than one contributing
sponsor, please submit additional page, or a letter from the additional Contributing Sponsors.
Authorized Agent: Alix Bockelmann
Title: Deputy Executive Director, Policy
Lead Agency: Metropolitan Transportation Commission
Signature: MTC will provide signed letter to Caltrans
PUC Funds Type: 99313 $ 122,145
PUC Funds Type: 99314 $
Attachment 3
Authorized Agent
AS THE City Manager
(Chief Executive Officer/Director/President/Secretary)
OF THE City of Petaluma
(Name of County/City/Transit Organization)
I hereby authorize the following individual(s) to execute for and on behalf of the
named Regional Entity/Transit Operator, any actions necessary for the purpose of
obtaining Low Carbon Transit Operations Program (LCTOP) funds provided by
the California Department of Transportation, Division of Rail and Mass
Transportation. I understand that if there is a change in the authorized agent, the
project sponsor must submit a new form. This form is required even when the
authorized agent is the executive authority himself. I understand the Board must
provide a resolution approving the Authorized Agent. The Board Resolution
appointing the Authorized Agent is attached.
Peggy Flynn, City Manager
(Name and Title ol'Authorifed Agent)
Dan St. John, Public Works Director
(Name and Title of Authorized Agent)
Jared Hall, Transit Division Manager
(Name and Title ofAuthorifed Agent)
(Name and Title ofAuthorifed Agent)
Peggy Flynn
(Print Name)
(Signature)
City Manager
(Title)
o
RM
No
Approved this clan, v