HomeMy WebLinkAbout04 - Supporting Submission of Grant Applications Under the OCTA Measure M2 Project V Program for Local Transit ServicesTO:
FROM:
CITY OF
NEWPORT BEACH
City Council Staff Report
January 23, 2024
Agenda Item No. 4
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
David A. Webb, Public Works Director - 949-644-3311,
dawebb@newportbeachca.gov
PREPARED BY: Brad Sommers, City Traffic Engineer- 949-644-3326,
bsommers@newportbeachca.gov
TITLE: Resolution No. 2024-4: Supporting Submission of Grant Applications
Under the Orange County Transportation Authority Measure M2
Project V Program for Local Transit Services
ABSTRACT:
Staff prepared grant applications for the Orange County Transportation Authority (OCTA)
under Measure M2 Project V funding for the potential continuation of the Balboa
Peninsula Trolley as well as a proposed Balboa Island/Corona del Mar area local transit
services operation. OCTA requires a City Council approved resolution authorizing and
supporting submission of the grant applications.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
b) Adopt Resolution No. 2024-4, A Resolution of the City Council of the City of Newport
Beach, California, Authorizing and Approving submittal of Funding Applications to the
Orange County Transportation Authority for Funding Under the Project V Community -
Based Transit/Circulators Program.
DISCUSSION:
Measure M2 is a half -cent sales tax intended to reduce transportation -related congestion
and impacts by funding transportation improvement projects and programs. As part of
Measure M2, OCTA administers several grant funding programs including the Project V
grant program which is designed to fund community -based transit services to complement
larger regional transit programs.
OCTA released a Project V call for projects in November 2023 with an application
deadline of January 25, 2024, and noted the next local transit grant application
opportunity will not be until at least 2029. Staff prepared and is ready to submit the
following two grant applications:
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Supporting Submission of Grant Applications Under the Orange County Transportation
Authority Measure M2 Project V Program for Local Transit Services
January 23, 2024
Page 2
Balboa Peninsula Trolley: The current Balboa Peninsula Trolley is funded through a
prior OCTA Project V grant and will conclude after operating in Summer 2024. The
planned grant funding (if approved) would fund the Balboa Peninsula Trolley for an
additional seven years beginning Summer 2025. A revised service model, including
potential procurement of new trolley -like vehicles (in lieu of the current closed vans) for
the trolley operation, is being reviewed. Balboa Peninsula Trolley is considered a
"Traditional" program as it operates on a fixed route with defined stops. The grant
opportunity allows for a maximum annual allocation of up to $592,000 and requires the
grantee to provide a minimum funding match of 10 percent of the total project amount.
Balboa Island/Corona del Mar Local Transit Program: The goal of this program would
be to connect Balboa Island, Corona del Mar (CdM) and potentially neighboring
communities with a local transit option. The operational details of this proposed program
are currently being studied through an OCTA-grant-funded Mobility Study. The study is
underway and will continue through next year. It includes review, discussion and guidance
from the recently formed City Council Transit, Mobility and Parking Ad Hoc Committee.
Considering the current Mobility Study is not complete and the next OCTA grant
opportunity is not planned until 2029, staff created the proposed application based on the
conceptual operation of a seven year, on -demand style program. OCTA indicated the City
of Newport Beach may apply for this funding round with a conceptual program and revise
the program with final details when the mobility study is concluded. The project team will
continue to guide the development of the program to ensure it is within the grant
guidelines and remains eligible for funds that may be awarded. Final review of the Mobility
Study and the proposed transit service program will be brought back to the City Council
at a future date for review, discussion and concept approval prior to the acceptance of
any grant funds and prior to program implementation.
The Balboa Island/Corona del Mar transit concept proposes use of smaller Neighborhood
Electric Vehicles (NEVs) and will potentially incorporate software to provide on -demand
ride hailing. OCTA considers this to be an "On -Demand" operation. As such, the program
is eligible for a maximum annual grant allocation of up to $296,000 and requires the
grantee to provide a minimum funding match of 50 percent of the total project amount.
If, at the conclusion of the study, the City does not wish to pursue a transit program in the
Balboa Island/CdM communities, the City may opt out of any awarded grant funds and
will not be obligated to pursue or operate the transit program.
As required by the grant application, staff requests approval of Resolution No. 2024-4 by
the City Council, indicating approval and support for the submittal of the two applications
for funding.
FISCAL IMPACT:
If awarded funding for one or both of the grant applications, the City will be obligated to
provide minimum match funding in the amount of 10 percent for the Balboa Peninsula
Trolley operation and 50 percent for the Balboa Island/Corona del Mar Local Transit
program. Additionally, OCTA defined a three percent per year cost escalation factor to
account for increases in program costs.
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Supporting Submission of Grant Applications Under the Orange County Transportation
Authority Measure M2 Project V Program for Local Transit Services
January 23, 2024
Page 3
The Balboa Peninsula Trolley grant application estimates a first year cost of $400,000
($360,000 grant funds and $40,000 City matching funds). Considering the three percent
per year escalation, the total (seven year) Balboa Peninsula Trolley cost is estimated to
be $3.1 M ($2.8M grant funds and $300,000 City matching funds).
The Balboa Island/Corona del Mar local transit program concept has an estimated first
year cost of $568,000 ($284,000 grant funds and $284,000 City matching funds) and a
total seven-year cost of $4.4M ($2.2M grant funds and $2.2M City matching funds).
Sufficient funds for the awarded projects will be included in the Capital Improvement
Program budget at the appropriate time.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find 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.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Resolution No. 2024-4
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ATTACHMENT A
RESOLUTION NO. 2024- 4
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, AUTHORIZING
AND APPROVING SUBMITTAL OF FUNDING
APPLICATIONS TO THE ORANGE COUNTY
TRANSPORTATION AUTHORTY FOR FUNDING UNDER
THE PROJECT V COMMUNITY -BASED
TRANSIT/CIRCULATORS PROGRAM
WHEREAS, the Orange County Transportation Authority's ("OCTA") Community -
Based Transit/Circulators Program (Project V under Measure M2) establishes a
competitive funding program to enable local jurisdictions to develop, test, and provide
community -based local transit services that complement regional transit services and
meets needs in areas not adequately serviced by regional transit;
WHEREAS, OCTA intends to allocate Project V funds to the incorporated cities
and the County of Orange, as applicable;
WHEREAS, OCTA has established the procedures and criteria for selecting
projects for funding through a competitive process as identified in the Comprehensive
Transportation Funding Program ("CTFP") Project V Guidelines;
WHEREAS, the City of Newport Beach ("City") desires to provide local
community -based transit services;
WHEREAS, the City authorizes the nomination of Balboa Peninsula Trolley and
Balboa Island/Corona del Mar Local Transit applications ("Projects"), including all
understanding and assurances contained therein;
WHEREAS, the City has been declared by OCTA to meet the eligibility
requirements to receive Measure M2 funds, including Project V funds;
WHEREAS, the City must include all projects funded by M2 Net Revenues in its
seven-year Capital Improvement Program ("CIP") in accordance with Measure M2
Ordinance eligibility requirements;
WHEREAS, the City Council of the City of Newport Beach authorizes amendment
of its CIP to add projects approved for Project V funding by OCTA's Board of Directors;
WHEREAS, the City's Circulation Element is consistent with the County of
Orange Master Plan of Arterial Highways;
BE
Resolution No. 2024-
Page 2 of 3
WHEREAS, the City will comply where applicable with provisions of the
Americans with Disabilities Act ("ADA"), and any other federal, state, and/or local laws,
rules and/or regulations;
WHEREAS, the City will consult with OCTA regarding the need for
ADA/paratransit services and/or plans prior to starting operations of the Projects;
WHEREAS, the City will provide a minimum 10% in matching funds for the Balboa
Peninsula Trolley (traditional service) and a minimum 50% in matching funds for the
Balboa Island/Corona del Mar Local Transit program (on -demand service), excluding
non -Project V subsidies or net fares collected, as required by the CTFP Project V
Guidelines and shall fund its share of the project costs and any additional costs over the
identified programmed amount;
WHEREAS, the City will not use Measure M2 funds to supplant developer fees or
other commitments; and
WHEREAS, the City will give OCTA's representatives access to and the right to
examine all data, records, books, papers or documents related to the Projects.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council does hereby request that the Orange County
Transportation Authority allocate Project V funds in the amounts specified in the City's
applications for the Projects to said City from the Project V Community -Based
Transit/Circulators program through the Comprehensive Transportation Funding Program
(CTFP). Said funds shall be matched by funds from the City as required and shall be used
as supplemental funding to aid the City in the implementation of the proposed transit
services.
Section 2: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
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Resolution No. 2024-
Page 3 of 3
Section 3: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 4: The City Council finds the adoption of this resolution 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, Division 6, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
Section 5: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 23rd day of January, 2024.
Will O'Neill
Mayor
ATTEST:
Leilani 1. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aar n C. Harp
City Attorney
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