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: Sarah Whitecotton, Management Analyst
Subject:
title
Approve AB 2766/MSRC Microtransit Service Grant Agreement with the South Coast Air Quality Management District (“SCAQMD”) to provide funding for the City’s downtown shuttle service agreement with Circuit Transit, Inc. (“Circuit”)
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Statement of Issue:
A two-year downtown electric shuttle service agreement with Circuit Transit, Inc. was approved effective January 2024, and staff was directed to obtain grants to help fund the contract. Approving this AQMD/MSRC one-time grant will fund $279,186 of the overall Circuit agreement.
Financial Impact:
The AB 2766/MSRC Microtransit Service Grant Agreement with SCAQMD will fund $279,186 of the Circuit agreement. A required match of equal funds which will be provided through an Orange County Transit Authority (OCTA) grant that has been received into business unit 126390001.69505.
Recommended Action:
recommendation
A) Approve the AB 2766/MSRC Microtransit Service Grant Agreement with the South Coast Air Quality Management District for the downtown shuttle service agreement funding for Circuit Transit, Inc.; and
B) Grant permission to the Director of Public Works to execute the AB 2766/MSRC Microtransit Service Grant Agreement with the South Coast Air Quality Management District electronically; and
C) Approve a budget appropriation of $279,186 for the AQMD/MSRC grant funds into business unit 129185101.69505.
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Alternative Action(s):
Do not approve the recommended actions, and direct staff accordingly.
Analysis:
The SCAQMD Governing Board approved funding for the City’s downtown electric shuttle project on June 2, 2023. As a result, staff issued a request for proposals to provide a downtown shuttle service with bids due in August 2023. An internal panel of staff reviewed all proposals, and rated Circuit as the most qualified firm; therefore, a contract was negotiated with Circuit for a term of two years and a not-to-exceed amount of $1,535,426.
The City has obtained sufficient grants to fund this agreement with Circuit. The AB 2766/MSRC Microtransit Service Grant Agreement from SCAQMD is effective beginning July 1, 2024 and will provide $279,186 in funding. SCAQMD will audit the shuttle program at least once every two years over the span of the agreement to ensure compliance with the terms of the grant.
The downtown electric shuttle service program is also being funded through an Orange County Transit Authority Project V grant of $806,240 (126390001.69505) and In-Lieu Parking Fee funds of $100,000 (30885101.69505). The remainder of funding will be supplemented with State earmarks from Senator David Min’s Office in the amount of $350,000. There will be no impact to the City’s General Fund to provide this service for the two-year term.
Environmental Status:
This action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Strategic Plan Goal:
Goal 2 - Fiscal Stability, Strategy A - Consider new revenue sources and opportunities to support the City's priority initiatives and projects.
For details, visit www.huntingtonbeachca.gov/strategicplan <http://www.huntingtonbeachca.gov/strategicplan>.
Attachment(s):
1. AB 2766/MSRC Microtransit Service Grant Agreement with the South Coast Air Quality Management District
2. PowerPoint Presentation