TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Application for SB1 Local Partnership Program (Formulaic)
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager or his designee to file and execute grant applications and funding agreements, and certifications and assurances with the State of California for an allocation of Senate Bill 1 (SB 1) Local Partnership Program (Formulaic) to secure funding for the re-roof of the Maintenance building at Division 2.
Body
STRATEGIC IMPORTANCE:
Goal - Safe and Secure Operations
Initiative - Infrastructure Modernization
The funds will be used to repair and replace the roof of the Maintenance Building at Division 2 that is in critical need of repair to remain within environmental regulation compliance and maintain assets.
BUDGETARY/FISCAL IMPACT:
The Fiscal Year (FY) 2019-2020 LPP formulaic program cycle will provide approximately $480,000 for AC Transit. These funds require a one-to-one match. The matching funds have been secured as the District applied $1 million of its State of Good Repair (SGR) formula funds towards this on-going project.
BACKGROUND/RATIONALE:
The Road Repair and Accountability Act of 2017 (Senate Bill 1 or SB1) created the Local Partnership Program (LPP) and continuously appropriates one hundred million dollars ($100,000,000) annually statewide to be allocated by the California Transportation Commission (CTC) to local or regional transportation agencies. The LPP helps finance priority transportation projects only in jurisdictions that have sought and received voter approval of taxes or that have imposed fees dedicated solely for transportation improvements.
Projects funded by the Local Partnership Program will require a minimum one-to-one match with priority given to projects that have committed discretionary federal funds at the time of application. Included in the types of eligible projects is the acquisition, retrofit, or rehabilitation of rolling stock, buses, or other transit equipment, including, but not limited to maintenance facilities, transit stations, transit guideways, passenger shelters, and fare collection equipment with a useful life of at least 10 years.
The Maintenance building roof at Division 2 is nearing the end of its useful life and is no longer cost effective to repair. This project is already underway and the LPP funds will go towards the project’s construction phase. Staff evaluated the project and determined it to be of greatest need as well as the most ‘shovel-ready’.
ADVANTAGES/DISADVANTAGES:
Staff cannot identify any disadvantages to applying for the funds. The District will be able to use SGR funds as match and the project will be able to start construction in early FY2021-2022.
ALTERNATIVES ANALYSIS:
The eligibility criteria for the program are quite broad for capital projects. However, it is challenging to find the required one-to-one matching funds needed for the LPP formulaic funds. Staff determined that this project is the best fit for these funds because it is urgently needed and has committed funds that can be used to fulfill the one-to-one match requirement.
PRIOR RELEVANT BOARD ACTION/POLICIES:
SR 19-233 Application for Fiscal Year 2019-2020 State of Good Repair Program
SR 20-188 Application for Fiscal Year 2020-2021 State of Good Repair Program
ATTACHMENTS:
None
Prepared by:
Evelyn Ng, Capital Planning and Grants Manager
In Collaboration with:
Michelle Ruan, Senior Capital Planning Specialist
Approved/Reviewed by:
Jill A. Sprague, General Counsel
Chris Andrichak, Chief Financial Officer
Ramakrishna Pochiraju, Executive Director of Planning & Engineering
Joe Callaway, Director of Capital Projects
Richard Oslund, Acting Director of Management & Budget