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SR 05-23-2017 3H Ci ty Council Report City Council Meeting : May 23, 2017 Agenda Item: 3.H 1 of 2 To: Mayor and City Council From: Edward King, Director , Big Blue Bus, Transit Finance & Grants Subject: Adopt Resolution for Low Carbon Transit Operations Program (LCTOP) Recommended Action Staff recommends that the City Council adopt a resolution for t he Low Carbon Transit Operations Program, which was created to provide operating and capital assistance 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 are part of the Transit, Affordable Housing, and Sustainable Communities Program established by the California Legislature in 2014. LCTOP provide s operating and capital assistance for transit agencies to reduce greenhouse gas e missions and improve mobility with a priority on serving disadvantaged communities. To receive funding through LCTOP, a City Council resolution must be submitted, which authorizes the City Manager to execute the required documents for funding. Discussi on California State Senate Bill 862 (2014) established the ongoing LCTOP as a formulaic program instead of a state -level competitive program. The LCTOP uses the existing State Transit Assistance (STA) fund formula to distribute $75 million statewide. The STA formula divides the money into two pools - a population share and a revenue share. Los Angeles County Metro politan Transportation Authority (Metro) receives all of the population share, while the revenue share is divided among the Los Angeles County Mu nicipal 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 c ommunity benefit , and other requirements of law. The LCTOP Guidelines describe the process that transit agency recipients must follow 2 of 2 to qualify and receive a share of the fund. The intent of the program is to provide operating and capital assistance for transit agencies to reduce greenhouse gas emission 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 is eligible for $178,703 from the LCTOP program , which would be used to operate revenue service hours, vehicle maintenance expenditures , and operating staf f salaries. To qualify for funding, a resolution, certification and assurances, a project description and allocation request form must be submitted . The resolution would authorize the City Manager to execute the required documents for funding. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff wi ll return to Council if specific budget actions are required in the future. Prepared By: Enny Chung, Sr. Admin Analyst - Grants Approved Forwarded to Council Attachments: A. BBB LCTOP Resolution_041717_final REFERENCE:    Resolution  No. 11043   (CCS)