Title
RESOLUTION R-1920-96: A RESOLUTION OF THE COUNCIL OF THE CITY OF NORMAN, OKLAHOMA, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO SUBMIT A GRANT APPLICATION TO THE FEDERAL TRANSIT ADMINISTRATION'S FISCAL YEAR 2020 LOW OR NO EMISSION VEHICLE PROGRAM AND EXPRESSING ITS COMMITMENT TO SECURE FUNDING FOR THE LOCAL MATCH IF SUCH GRANT IS AWARDED AND PROJECT APPROVED.
Body
BACKGROUND: The Federal Transit Administration (FTA) Grants for Buses and Bus Facilities Program (49 U.S.C. § 5339) makes federal resources available to states and direct recipients to replace, rehabilitate, and purchase buses and related equipment and to construct bus-related facilities, including technological changes or innovations to modify low or no emission vehicles or facilities. Funding is provided through formula allocations and competitive grants. A sub-program, the Low or No Emission Vehicle Program, provides competitive grants for bus and bus facility projects that support low and zero emission vehicles.
On June 27, 2019, the City of Norman was recognized by the FTA as an eligible recipient of federal transit funds and is an eligible applicant of the Low or No Emission Vehicle Program. Eligible activities for this program include capital projects to replace, rehabilitate, and purchase buses, vans, and related equipment and to construct bus-related facilities, including technological changes or innovations to modify low or no emission vehicles or facilities.
A requirement of the Low or No Emission Vehicle Program is to identify the source of local match to the federal funds and to provide evidence and commitment of those funds with the entity’s application. A Council resolution meets this requirement.
When a project is selected, funds are available for obligation for three fiscal years after the fiscal year in which the competitive awards are announced.
DISCUSSION: The City’s fixed-route fleet includes eight (8) vehicles out of thirteen (13) that have reached their useful life. Vehicle replacement is critical to operate and maintain a safe, reliable, and cost-effective transit system. As the City of Norman begins to replace the vehicles in its transit fleet, staff will identify opportunities to offset the cost of replacement by combining federal and local funds.
The FTA’s Low or No Emissions Vehicle Program is a specific opportunity to replace those vehicles that have reached their useful life with low or no emission alternatives, such as battery electric vehicles. City staff has identified battery electric buses as a viable option for the City’s transit services.
As permitted by the Further Consolidated Appropriations Act , 2020, applicants to the Low or No Emission Vehicle Program may submit applications that include partnerships with other entities that intend to participate in the implementation of the project, including, but not limited to, specific vehicle manufacturers, equipment vendors, owners, or operators of related facilities or project consultants. If an application that involves such a partnership is selected for funding, the competitive selection process will be deemed to satisfy the requirement for a competitive procurement under 49 U.S.C. § 5325(a) for the named entities.
Five (5) of the City’s thirteen (13) fixed route buses are Gilligs. Staff have discussed the need to partner with Gillig on this grant application to capitalize on efficiencies for parts, support, warranty, and general familiarity with Gillig products. Gillig has provided a price estimate for a 35-foot electric bus. Base price, estimated options and, delivery charges come to approximately $860,000 in total cost. The minimum, proposed cost share for this grant can be 80% federal ($688,000) and 20% local ($172,000).
RECOMMENDATION: Staff recommends the approval of Resolution R-1920-96, authorizing the City Manager or his designee to submit a grant application on behalf of the City of Norman to the Federal Transit Administration’s Fiscal Year 2020 Low or No Emission Vehicle Program for a battery electric bus, partnering with Gillig as the manufacturer, and committing the City of Norman to provide the required local match, through either the General Fund or the Public Transit Sales Tax Fund, if the project is selected.