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SR-03-24-2015-3GReport City of i� Council Santa Monica City Council Meeting: March 24, 2015 Agenda Item: 3-C-1 To: Mayor and City Council From: Edward F. King, Director of Transit Services Subject: Low Carbon Transit Operations Program Resolution Recommended Action Staff recommends that the City Council adopt the attached resolution for the Low Carbon Transit Operations Program. Executive Summary The Low Carbon Transit Operations Program ( 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 via Senate Bill 862. The LCTOP was created to provide operating and capital assistance for transit agencies to reduce greenhouse gas emissions and improve mobility, with a priority on serving disadvantaged communities. As a requirement for funding, a resolution must be submitted. Discussion SB 862 (2014) establishes the LCTOP as a new formulaic program instead of a state - level competitive program. The LCTOP uses the existing State Transit Assistance (STA) Fund formula to distribute $25 million statewide. The STA formula has two components, a population share and a revenue share. Metro receives all of the population share while the revenue share is split between the Los Angeles County Municipal Operators and Metro. The California Department of Transportation (Caltrans) is responsible for ensuring that the statutory requirements of the program are met in terms of eligibility, greenhouse gas reduction, disadvantaged community benefit, and other requirements of law. The LCTOP guidelines describe the process that transit agency recipients must follow to qualify and receive a share of the fund. These funds are available to provide E operations, maintenance, and capital assistance for transit agencies with the goals of reducing greenhouse gas emissions, improving mobility for the California public, and include a priority to serve disadvantaged communities. The LCTOP is a new ongoing funding source for the Big Blue Bus. The new LCTOP funds would bring approximately $131,000 to the Big Blue Bus to be used for operating purposes, such as but not limited to fuel, maintenance and salaries. As a requirement for funding, a resolution, certification and assurances, and a project description and allocation request form must be submitted. The resolution would authorize the City Manager to execute the required documents for funding. Big Blue Bus (BBB) is seeking to submit the required forms for disbursement by the April 15, 2015 due date. Financial Impacts & Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future. Staff anticipates that BBB will receive approximately $131,000 annually to be used to cover operating expenses. Prepared by: Enny Chung Graham, Senior Administrative Analyst Approved: Forwarded to Council: Edward King Elaine M. Polachek Director of F. Transit S rvices Interim City Manager Attachments: 1. Resolution FA Reference: Resolution No. 10869 (CCS)