TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Application for Fiscal Year 2021-2022 State of Good Repair Program
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider adoption of Resolution No. 21-018 authorizing the General Manager, or his designee, to file and execute applications and funding agreements, and certifications and assurances with the Metropolitan Transportation Commission for the State of Good Repair (SGR) Program to fund the purchase of fifty diesel buses.
Body
STRATEGIC IMPORTANCE:
Goal - Safe and Secure Operations
Initiative - Infrastructure Modernization
Applying for the funds supports the District’s Transit Asset Management (TAM) policy and plan, fleet transition plan, and maintains operations.
BUDGETARY/FISCAL IMPACT:
The Fiscal Year (FY) 2021-22 SGR program will provide approximately $4.0 million for AC Transit. Matching funds are not required. The SGR funds will be a portion of the overall cost of the fifty diesel buses, which is approximately $28.9 million.
BACKGROUND/RATIONALE:
Senate Bill 1 (SB1), The Road Repair and Accountability Act of 2017, provides funds for the State of Good Repair (SGR) Program to provide approximately $105 million annually to transit operators in California for eligible transit maintenance, rehabilitation, and capital projects.
The District is allocated $4.0 million in SB1 SGR funds this year and proposes to use them for the purchase of fifty diesel buses. The purchase of these fifty diesel buses is part of the District’s fleet plan and replaces buses that have exceeded the end of their useful life. Further, replacing older buses with new buses with modern technology enhances the efficiency of the fleet and brings the District closer to achieving the Federal Transit Administration (FTA) mandated TAM performance targets.
Staff evaluated various projects and determined that this is the most critical project that is eligible for State of Good Repair funds. This project is in the current capital budget and will carry forward into the FY 2021-22 annual capital budget.
ADVANTAGES/DISADVANTAGES:
Applying for these funds allows the District to receive additional funds that can be used to maintain and improve its capital assets. There are no disadvantages to applying for these funds.
ALTERNATIVES ANALYSIS:
The eligibility criteria for the program are very broad for capital projects and assets. Staff identified the abovementioned project as the most critical for this funding because the District is projected to have 119 buses beyond their useful life by 2022. This purchase of fifty diesel buses follows the District’s fleet replacement plan and as indicated in our Zero Emission Bus (ZEB) Rollout Plan, we will not be purchasing ZEBs until 2026.
PRIOR RELEVANT BOARD ACTION/POLICIES:
SR 21-096 State of the Fleet Report
ATTACHMENTS:
1. Resolution 21-018
2. Recipient Certifications and Assurances
3. Authorized Agent Form
Prepared by:
Michelle Ruan, Senior Capital Planning Specialist
In Collaboration with:
Evelyn Ng, Capital Planning and Grants Manager
Approved/Reviewed by:
Jill A. Sprague, General Counsel
Chris Andrichak, Chief Financial Officer
Salvador Llamas, Chief Operating Officer
Cecil Blandon, Director of Maintenance