TO: Mayor and Members of City Council
THRU: Kelly Olivera, Assistant City Manager
FROM: Tyffany L. Neal, Transit Director
DATE: April 22, 2024
RE:
Title
Adoption of a Resolution of Support for an FTA Grant Application for Battery Electric Buses
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 4: Desirable Place to Live, Work and Recreate
Objective 4.1: To develop and maintain public transportation investments with high quality transit and airport services
Executive Summary:
Council is asked to adopt a Resolution of Support to demonstrate the City’s local match funding commitment for a competitive grant application to the Federal Transit Administration (FTA) for the purchase of four (4) 35-ft low-floor battery-electric buses (BEBs) to replace diesel buses that have already met or exceeded their useful life. The total estimated replacement cost is $7,531,210. The Resolution would indicate the City’s willingness to fund a $1,136,426 local match to leverage $6,397,784 of federal funds under an 85%/15% grant scenario for the majority of the grant.
Background:
Congress has established a competitive capital grant program under the FTA entitled Low or No Emission Grant Program (Low-No Program). This program provides transit bus funding over and above FTA’s formula grant programs.
The City’s bus fleet is aging, with several buses approaching their estimated useful life of 12 years (or 500K miles). It is critical that buses be replaced in a timely manner since FAST buses accumulate a high number of miles every year. The City purchased 10 buses between 2010 and 2013 that are due to be replaced over the next two to three years. Annual FTA formula fund apportionments are not sufficient to fund these needed replacements as formula funds also support other areas of the Transit budget such as operating assistance, maintenance, ADA, planning and other capital needs.
The FTA issued its call for projects, or Notice of Funding Opportunity (NOFO), for the FY24 Low or No Emission and Grants for Buses and Bus Facilities Competitive Programs. Applications or proposals are due to be submitted in Grants.gov no later than April 25, 2024. Normally, project selections are announced three to four months after the submittal deadline. Once a project is selected, a grantee must then submit a formal grant application via FTA’s grants management system. That process also takes two to three months. If our application were to be successful, we would expect a grant award for Council to appropriate in late fall 2024.
Transit seeks Council support to request $6,397,784 from the FTA, with a local match of $1,133,426 for a total grant of $7,531,210. The grant is proposed to fund the replacement of four 35-ft. low-floor diesel buses with zero emission battery-electric buses (BEBs). The diesel buses have all exceeded 500,000 miles and will have exceeded 12 years of service by the time the replacements would be received and placed into service. The replacement buses are proposed to be 35-ft. buses in order to increase battery capacity and increase the operating range of the buses.
This will be the City’s fourth attempt for funding under the Low-No Program. Our 2021 application for four (4) buses was successful.
The City was successful with its competitive application for replacement diesel buses in 2021 under FTA’s Bus and Bus Facilities program. FTA provided $2,185,350 in federal funds for the purchase of replacement diesel buses.
The Resolution of Support and local funding commitment is a critical part of the application process for the FTA’s competitive grant programs.
Issues/Analysis:
Success with competitive grants is critical to FAST’s ability to replace buses in a timely manner. The cycles for these grants and the City’s budget process do not coincide. Staff has also been coordinating the future transition to electric buses with PWC.
Budget Impact:
If the proposed grant application is successful, the formal grant appropriation including local share will be needed in FY25. The FY25 budget is currently under development.
Options:
• Adopt the Resolution of Support as presented;
• Amend and then adopt a Resolution of Support; or
• Reject the Resolution of Support and do not move forward with competing for this grant opportunity
Recommended Action:
Staff recommends that Council move to adopt the Resolution of Support as presented
Attachments:
Resolution of Support