REPORT TO THE CITY COUNCIL September 27, 2018 FROM: GREGORY A. BARFIELD, Interim Director Department of Transportation BY: DARLENE CHRISTIANSEN, Senior Management Analyst Department of Transportation SUBJECT ..Title ***RESOLUTION - Authorizing the application for and execution of Certifications and Assurances for and approving the FY 2018-19 project list for the California State of Good Repair Program (Subject to Mayor's Veto) ..Body RECOMMENDATION Staff recommends Council adopt a resolution authorizing the Director of Transportation or designee to submit project lists to obtain funding to purchase two 40-foot compressed natural gas (CNG) buses through the California State of Good Repair (SGR) Program, execute and file all necessary funding documents on behalf of the City, and approve application for the purchase of the two CNG buses. EXECUTIVE SUMMARY The Department of Transportation (Department) seeks Council approval of the attached resolution authorizing the Director of Transportation or designee to execute and file required Certifications and Assurances, project proposals, grant approval documents, and other documents required by the State of California on behalf of the City for the SGR Program. BACKGROUND Senate Bill 1, known as the Road Repair and Accountability Act of 2017, was established in 2017 (Chapter 5, Statutes of 2017) in order to provide funding to repair highways, bridges, and local roads; to make strategic investments in congested commute and freight corridors; and to improve transit service. A portion of SB-1 will provide approximately $105 million annually to transit operators in California for eligible transit maintenance, rehabilitation, and capital projects. This investment in public transit is called the SGR Program. The SGR Program is funded from a portion of a new Transportation Improvement Fee on vehicle registrations due on or after January 1, 2018. A portion of this fee will be transferred to the State Controller's Office (SCO) for the SGR Program. In collaboration with the SCO, Caltrans is tasked with the management and administration of the SGR Program. These funds will be allocated under the State Transit Assistance (STA) Program formula to eligible agencies pursuant to Public Utilities Code (PUC) section 99312.1. This program demonstrates California's commitment to clean, sustainable transportation, and the vital role that public transit plays in this vision. While SB-1 addresses a variety of transportation needs, this program has a specific goal of keeping transit systems in a state of good repair, including the purchase of new transit vehicles, and maintenance and rehabilitation of transit facilities and vehicles. These new investments will lead to cleaner transit vehicle fleets, increased reliability and safety, and reduced greenhouse gas emissions and other pollutants. The Department anticipates annually submitting project lists to Caltrans for available SB-1 SGR funding. These anticipated revenues and corresponding appropriations will be included in the Department proposed budget each fiscal year, or the Department will return to Council to request the appropriations. ENVIRONMENTAL FINDING The resolution and authorization to submit the project list to purchase buses is not a "project" for the purposes of the California Environmental Quality Act, pursuant to CEQA Guidelines section 15378. LOCAL PREFERENCE Local preference was not considered because the resolution and authorization do not include a bid or award of a construction or services contract. FISCAL IMPACT This request will have no impact to the General Fund as the SGR project is 100 percent state funded. Attachment: Resolution Certifications and Assurances