DATE:
| 3/28/2017 | TO:
| HONORABLE MAYOR AND CITY COUNCIL | FROM:
| MINTZE CHENG, PUBLIC WORKS DIRECTOR | SUBJECT:
| ADOPT A RESOLUTION AUTHORIZING THE EXECUTION OF THE CERTIFICATIONS AND ASSURANCES FOR THE LOW CARBON TRANSIT OPERATIONS PROGRAM (LCTOP) |
A resolution has been prepared authorizing the City Manager or his designee to execute required certifications and assurances for the use of the Low Carbon Transit Operations Program (LCTOP).
BACKGROUND
Assembly Bill (AB 32), the California Global Warming Solutions Act of 2006, took a long-term, comprehensive approach to addressing climate change and its effects on the environment and natural resources. The legislation allows the California Air Resources Board (CARB) to establish a quarterly auction of a limited number of greenhouse gas (GHG) tradable permits. The program is commonly referred to as the Cap-and-Trade, whereby the proceeds from these auctions fund legislated programs furthering the purpose of AB32.
The 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 by Senate Bill 862 (SB 862) drafted to further the purpose of AB32. Senate Bill 852 (Statutes of 2014) appropriates $25 million for LCTOP for Fiscal Year (FY) 2014-15 and Senate Bill 862 continuously appropriates five percent (5%) of the annual auction proceeds in the Greenhouse Gas Reduction Fund for LCTOP beginning in FY2015-16.
Approved projects in LCTOP will support new or expanded bus or rail services, expand intermodal transit facilities, and may include equipment acquisition, fueling, maintenance and other costs to operate those services or facilities, with each project required to reduce greenhouse gas emissions. Funds in this program are allocated to operators by the Metropolitan Transportation Commission (MTC) through the State Controller’s Office. Funds are distributed based on revenues and, through MTC Resolutions 4123 and 4130, based on population. The California Department of Transportation (Caltrans) is the administering agency.
DISCUSSION
Caltrans has adopted certifications and assurances for LCTOP. As a condition to receive LCTOP funds, each project sponsor/agency must authorize an agency designee to execute these certifications and assurances. The certifications and assurances include guidelines for project administration, reporting, cost principles, record retention and special situations.
FISCAL IMPACT
There will be no fiscal impact by executing the required certifications and assurances for the LCTOP.
RECOMMENDATION
It is recommended City Council adopt the attached resolution authorizing the City Manager or designee to execute the required certifications and assurances for the LCTOP.
Prepared by:
Wilson Lee, Transit Manager
Submitted by:
Mintze Cheng, Public Works Director |