TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Application for FY23 USDOT RAISE Grant
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager or his designee to file and execute grant applications and funding agreements with the United States Department of Transportation (USDOT) for Fiscal Year (FY) 2023 Rebuilding American Infrastructure with Sustainability and Equity (RAISE) discretionary grant program.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
Securing grant funds for this project will help the District in funding a vital planning study that will be the first step towards redeveloping the Division 4 operating facility.
BUDGETARY/FISCAL IMPACT:
The District is applying for up to $12 million to conduct a planning study for the Division 4 maintenance facility. The total project cost is estimated to be $15 million. If awarded, the District will need to provide $3 million as the required 20% match with District capital or other funds.
BACKGROUND/RATIONALE:
On December 15, 2022, the United States Department of Transportation (USDOT) released the notice for $1.5 billion of grant funding through the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) discretionary grant program for 2023. The discretionary grant program will fund planning and capital projects that are not typically funded by other USDOT grant programs.
Staff proposes to apply for funding for a planning study that will be the first step of a larger Division 4 Redevelopment project. The study will cover environmental clearance and preliminary design.
Division 4 is located in East Oakland and urgently needs to be redeveloped due to its age, conditions, and lack of capacity. Most of the buildings have not received any major renovations or updates since the construction of the facility. The Planning Study would determine the actions and budget needed to redevelop the Division 4 maintenance facility so the District can continue to improve reliability of bus service primarily serving the Disadvantaged communities in Oakland and its vicinity as well as advance much needed infrastructure to support a fully Zero Emission Bus (ZEB) fleet. This planning study will build upon Board-adopted plans such as the Facilities Utilization Plan and ZEB Transition Plan, and incorporate feedback from AC Transit Board, staff, and surrounding communities.
ADVANTAGES/DISADVANTAGES:
Applying for these funds will allow staff to move forward in evaluating the next steps required to proceed to the full design and construction phases. There are very few grants available for large-scale planning studies, therefore this grant is a good opportunity to obtain funding for this type of project.
The main disadvantages are that significant District staff time would be needed for this project and the large amount of required local match the District would need to provide.
ALTERNATIVES ANALYSIS:
The District could choose not to apply for this grant and look for other sources of funding. However, there are few grant programs that would fund a major planning study like this.
PRIOR RELEVANT BOARD ACTION/POLICIES:
None
ATTACHMENTS:
None.
Prepared by:
Michelle Ruan, Senior Capital Planning Specialist
In Collaboration with:
Evelyn Ng, Capital Planning and Grants Manager
Mika Miyasato, Principal Transportation Planner
Approved/Reviewed by:
Chris Andrichak, Chief Financial Officer
Ramakrishna Pochiraju, Executive Director of Planning & Engineering
Robert del Rosario, Director of Services Development and Planning
Richard Oslund, Director of Management & Budget