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SR 05-10-2016 3G City Council Report City Council Meeting: May 10, 2016 Agenda Item: 3.G To: Mayor and City Council From: Edward King, Director, Big Blue Bus, Transit Finance & Grants Subject: Adoption of the Low Carbon Transit Operations Program Resolution that would make Big Blue Bus Eligible for State Funds to Reduce Greenhouse Gas Emissions and Improve Mobility. Recommended Action Staff recommends that the City Council adopt the attached resolution for the Low Carbon Transit Operations Program that was created by the California State Legislature to provide operating and capital funding for transit agencies to reduce greenhouse gas emissions and improve mobility. Executive Summary The Low Carbon Transit Operations Program (LCTOP) is one of several programs that comprise the Transit, Affordable Housing, and Sustainable Communities Program established by the California Legislature in 2014 via Senate Bill 862. LCTOP was created to provide operating and capital funding assistance for transit agencies to reduce greenhouse gas emissions and improve mobility, with a priority placed on serving disadvantaged communities. As a requirement to qualify for and receive funding through LCTOP, a City Council resolution to adopt the project must be submitted. Discussion LCTOP funding is distributed through the existing State Transit Assistance (STA) Fund formula. The STA formula has two components, a population share, which is allocated entirely to LA Metro, and a revenue share which is divided amongst 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 the law. The LCTOP provides operating and capital funding assistance for transit agencies to reduce greenhouse gas emissions and improve mobility for the California public with a priority placed on serving disadvantaged communities. LCTOP is an ongoing funding source for Big Blue Bus. Big Blue Bus received $131,000 in LCTOP funding in FY14-15, the first year of the program. The State increased annual funding for recipients in the second year, 1 of 2 therefore Big Blue Bus is eligible for $387,175 in LCTOP funding for FY16-16 LCTOP . funding may be used for operating expenditures and staff has determined that this funding should be programmed for the additional operational expenditures associated with the increase in operating revenue service hours for new service on with the Routes 15 (Bundy Station), 16 (Bergamot Station), and 17 (Palms & Sepulveda Stations). Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Revenue changes were approved in the FY 2015-16 Midyear Budget. Prepared By: Enny Chung, Sr. Admin Analyst - Grants Approved Forwarded to Council Attachments: A. Proposed Resolution 2 of 2 wĻŅĻƩĻƓĭĻʹ wĻƭƚƌǒƷźƚƓ bƚ͵ ЊЉВЎЌ Λ//{Μ