REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Eric G. Parra, Interim City Manager
VIA: Chau Vu, Director of Public Works
PREPARED BY: Bob Stachelski, Traffic and Transportation Manager
Subject:
title
Adopt Resolution No. 2024-07 approving the submittal of two applications to the Orange County Transportation Authority (OCTA) for grant funding for Special Event Shuttle Services and the HB Circuit Program
body
Statement of Issue:
Staff has prepared two applications to the Orange County Transportation Authority (OCTA) for grant funding for alternative transportation services. The proposed services - special events shuttle services and the HB Circuit Program - are eligible for partial funding under OCTA’s Community Based Transit/Circulators program. Per grant guidelines, the City Council must adopt Resolution No. 2024-07 approving the submittal of the applications and the provision of a local match. City Council has directed staff that no General Fund monies will be used to fund the Circuit program. If a non-General Fund local match is not identified by Circuit or City staff before OCTA makes its final grant funding recommendations, the City will withdraw its application.
Financial Impact:
Annual local match funds required for the Special Event Shuttle Service are $8,000-12,000 in FY24/25, $16,000-30,000 for FY25/26, escalating to $19,000-35,000 in FY 30/31. Funding is available from Air Quality Management District Subvention funds for the anticipated annual City cost share of the Special Event Shuttle. The City receives about $250,000 annually; however, those funds are also used to purchase fleet vehicles that comply with California’s Clean Air Act zero and near-zero emission vehicle acquisition requirements. Allocation of funds from the AQMD Subvention funds would reduce the City’s ability to fund these statutory obligations.
Annual match funds required for the HB Circuit program are estimated to be $314,000 in FY 2026/27, escalating annually up to $352,500 in FY 2030/31. Over the five years of the program, the estimated local match required is $1,665,000. City Council has directed staff that no General Fund monies will be used to fund the Circuit program. If a non-General Fund local match is not identified by Circuit or City staff before OCTA makes its final grant funding recommendations, the City will withdraw its application.
Recommended Action:
recommendation
Adopt Resolution No. 2024-07, “A Resolution of the City Council of the City of Huntington Beach Authorizing the Submittal of Two Project Applications: Special Event Shuttle Service and HB Circuit Rideshare Program to the Orange County Transportation Authority for Funding Under the Project V Community-Based Transit/Circulators Program”.
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Alternative Action(s):
1. Direct staff to modify the resolution to support only the submittal of the Special Event Shuttle Service project application and approve the revised Resolution;
2. Direct staff to modify the resolution to support only the submittal of the HB Circuit project application and approve the revised Resolution;
3. Do not approve the Resolution; therefore, submitting no grant applications to OCTA.
Analysis:
Staff identified two potential projects eligible under the current request for project submittals under the Community-Based Transit/Circulators Program. Preliminary applications have been submitted for both programs with the applications pending receipt of the Resolution from the City indicating the support and commitment for both projects.
Special Event Shuttle Service (Traditional Services Category)
The first project is a multi-year funding proposal (up to 7 years) of a Special Event Shuttle Service that would provide remote parking options for up to eight events annually (e.g. 4th of July, U.S. Open of Surfing, Air Show, Concerts at the Beach). The City previously operated a similar service and the current submittal was based on this program. The shuttle would be free to patrons and provide access to remote free parking to help reduce impacts to parking near the various events. The grant application identified up to nine days of services for events. Overall annual costs would be dependent on the number of events when the services are provided and the level of use. The minimum annual local funding required is about $16,000 in the first full year of use (FY25/26) and could be as high as $35,000 if ridership is not sufficient to stay below the maximum cost per user value established by OCTA. Based on the amount of remote parking available (generally a maximum of several hundred spaces) and the practical number of buses that could be operated for various events, it is estimated that a maximum total number of people that could be moved daily for an event is about 4,000-6,000 people. Our largest events typically draw up to 100,000 spectators daily. The shuttle service would provide service to about three to seven percent of the overall estimated attendance at these events.
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Project Funding Summary |
|
Funding Year |
FY24/25 |
FY25/26 |
FY26/27 |
FY27/28 |
FY28/29 |
FY29/30 |
FY30/31 |
|
Funding Request |
$56,970 |
$109,470 |
$113,250 |
$117,750 |
$196,050 |
$128,100 |
$133,500 |
|
City Local Match |
$8,830 |
$16,330 |
$16,750 |
$17,250 |
$25,950 |
$18,400 |
$19,000 |
|
Project Annual Cost |
$65,800 |
$125,800 |
$130,000 |
$135,000 |
$222,000 |
$146,500 |
$152,500 |
|
Project Total Cost |
$977,600 |
HB Circuit Service (On-Demand Services Category)
The second project is a multi-year funding proposal (up to five years) to support the continuation of the current Circuit program. The City currently has sufficient funding to support fiscal years 2024/25 and 2025/26. The proposed application would provide funding beginning FY 2026/27. The program would continue the paid, on-demand service provided by Circuit within the downtown area. The program will continue to subsidize the cost of the service to patrons. The projected annual operating cost for FY 2026/27 is $628,000, with a required local match of $314,000 (50%). The 5-year estimated City contribution is $1,665,000 (excluding any fares collected). Proposed funding submitted is based on the minimum local match for this program which is 50% for on-demand services and the maximum annual OCTA funding allocation shown below:
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Project Funding Summary |
|
Funding Year |
FY24/25 |
FY25/26 |
FY26/27 |
FY27/28 |
FY28/29 |
FY29/30 |
FY30/31 |
|
Max Funding Request |
$0 |
$0 |
$314,000 |
$323,500 |
$332,500 |
$342,500 |
$352,500 |
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City Local Match |
$0 |
$0 |
$314,000 |
$323,500 |
$332,500 |
$342,500 |
$352,500 |
|
Project Annual Cost |
$0 |
$0 |
$628,000 |
$647,000 |
$665,000 |
$685,000 |
$705,000 |
|
Project Total Cost |
$3,330,000 |
Environmental Status:
This action is covered by the General Rule that the California Environmental Quality Act (CEQA) applies only to projects that have the potential for causing a significant effect on the environment (Section 15061.b.3 of the State CEQA Guidelines). It can be seen with certainty that there is no possibility that this activity will have a significant effect on the environment. Therefore, this activity is not subject to CEQA.
Strategic Plan Goal:
Goal 6 - Infrastructure Investment, Strategy B - Explore additional sports and concert venues to bolster tourism and provide world class amenities for community members.
The proposed services would directly support events that would bolster tourism and improve amenities offered to the public attending the events.
For details, visit www.huntingtonbeachca.gov/strategicplan <http://www.huntingtonbeachca.gov/strategicplan>.
Attachment(s):
1. Resolution No. 2024-07 by the City Council approving the submittal of two project applications under the Community-Based Transit/Circulations Program
2. Project V Council Resolution Presentation