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AGENDA ITEM REVIEW FORM |
5.A.
Regular City Council Meeting
- Meeting Date:
- 07/10/2024
- Department Head:
- Armando Esparza
- Submitted By:
- Armando Esparza, Director of Economic Development, Economic Development
Action Requested:
Motion
Resolution
Resolution
ITEM:
Discussion and possible action on any and all matters regarding Resolution No. 2321. A resolution by the Mayor and City Council authorizing the submission and the approval local match of the commitment for the San Luis Active Paths Project Grant Application to the U.S. Department of Transportation (USDOT). (Armando Esparza, Director of Economic Development)
SUMMARY:
Summary:
The City of San Luis is applying for the Fiscal Year 2023 Active Transportation Infrastructure Investment Program (ATIIP) grant from the U.S. Department of Transportation (USDOT) and the Federal Highway Administration (FHWA). This grant aims to fund the construction of the San Luis Active Paths Project, an initiative designed to enhance transportation and connectivity within our community. The San Luis Active Paths Project involves constructing a 7.7-mile shared-use path network to provide safe and accessible routes for walking and biking. This project will link key community destinations such as residential areas, schools, workplaces, and transit hubs. It addresses critical community needs for sustainable transportation, aims to improve the quality of life for residents, reduce traffic congestion, and promote healthier lifestyles.
Project Financials:
The total project cost is $15,781,400. The City is requesting $12,625,120 in federal funds under this grant. The local match required is $3,156,280, representing 20% of the total project cost. We seek council approval of the commitment letter, which confirms the City of San Luis to provide $3,156,280 in local matching funds for the San Luis Active Paths Project. Additionally, due to the community's significant economic challenges, we request the council to urge consideration for a no-match award from the U.S. Department of Transportation. Although we do not meet the 40% poverty rate requirement for 100% federal funding, the poverty rate in Census Tracts 116.01 and 114.07 is notably high, with 38.2% and 35.6%, respectively. The median household income is $35,257, with an unemployment rate of 45 by FHWA, and a request is made to provide the 20% non-Federal share as a backup. Additionally, 21.1% of the population lacks healthcare coverage. These statistics underscore the need for federal assistance to support this infrastructure project without requiring a local match. The FHWA will decide if a project qualifies for 100% federal funding. Applicants should also provide information showing they can cover a 20% non-federal share. If the FHWA finds the project ineligible for 100% funding and no alternative funding information is provided, the application will be deemed ineligible for ATIIP funds.
From NOFO: It is important to note that FHWA will make the final determination of whether a project is eligible for the 100 percent Federal share under BIL § 11529(f)(2). For that reason, it may be advisable for applicants who believe they are eligible for the 100 percent Federal share described in this section to nonetheless provide information indicating that, alternatively, they can provide a 20 percent non-Federal share. Otherwise, if FHWA determines that the application is not eligible for the 100 percent Federal share and the applicant does not provide additional information, that application would be deemed ineligible and would not receive ATIIP funds under this NOFO. (Pg. 10)
Strategic Alignment:
The San Luis Active Paths Project aligns with the U.S. Department of Transportation’s goals of improving public accessibility, reducing environmental impact, enhancing community livability, and increasing economic development. The project also supports the City’s long-term strategic objectives outlined in the San Luis Parks Paths and Trails Master Plan and the San Luis 2040 General Plan.
The City of San Luis is applying for the Fiscal Year 2023 Active Transportation Infrastructure Investment Program (ATIIP) grant from the U.S. Department of Transportation (USDOT) and the Federal Highway Administration (FHWA). This grant aims to fund the construction of the San Luis Active Paths Project, an initiative designed to enhance transportation and connectivity within our community. The San Luis Active Paths Project involves constructing a 7.7-mile shared-use path network to provide safe and accessible routes for walking and biking. This project will link key community destinations such as residential areas, schools, workplaces, and transit hubs. It addresses critical community needs for sustainable transportation, aims to improve the quality of life for residents, reduce traffic congestion, and promote healthier lifestyles.
Project Financials:
The total project cost is $15,781,400. The City is requesting $12,625,120 in federal funds under this grant. The local match required is $3,156,280, representing 20% of the total project cost. We seek council approval of the commitment letter, which confirms the City of San Luis to provide $3,156,280 in local matching funds for the San Luis Active Paths Project. Additionally, due to the community's significant economic challenges, we request the council to urge consideration for a no-match award from the U.S. Department of Transportation. Although we do not meet the 40% poverty rate requirement for 100% federal funding, the poverty rate in Census Tracts 116.01 and 114.07 is notably high, with 38.2% and 35.6%, respectively. The median household income is $35,257, with an unemployment rate of 45 by FHWA, and a request is made to provide the 20% non-Federal share as a backup. Additionally, 21.1% of the population lacks healthcare coverage. These statistics underscore the need for federal assistance to support this infrastructure project without requiring a local match. The FHWA will decide if a project qualifies for 100% federal funding. Applicants should also provide information showing they can cover a 20% non-federal share. If the FHWA finds the project ineligible for 100% funding and no alternative funding information is provided, the application will be deemed ineligible for ATIIP funds.
From NOFO: It is important to note that FHWA will make the final determination of whether a project is eligible for the 100 percent Federal share under BIL § 11529(f)(2). For that reason, it may be advisable for applicants who believe they are eligible for the 100 percent Federal share described in this section to nonetheless provide information indicating that, alternatively, they can provide a 20 percent non-Federal share. Otherwise, if FHWA determines that the application is not eligible for the 100 percent Federal share and the applicant does not provide additional information, that application would be deemed ineligible and would not receive ATIIP funds under this NOFO. (Pg. 10)
Strategic Alignment:
The San Luis Active Paths Project aligns with the U.S. Department of Transportation’s goals of improving public accessibility, reducing environmental impact, enhancing community livability, and increasing economic development. The project also supports the City’s long-term strategic objectives outlined in the San Luis Parks Paths and Trails Master Plan and the San Luis 2040 General Plan.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE AND ADOPT RESOLUTION NO. 2321 AND RATIFY THE SUBMISSION OF THE ACTIVE TRANSPORTATION INFRASTRUCTURE INVESTMENT PROGRAM APPLICATION.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- YES
- CITY/STATE/FEDERAL FUNDS:
- YES
- TOTAL:
- $3,156,280
- BUDGETED AMOUNT:
- N/A
- AVAILABLE AMOUNT TO TRANSFER:
- N/A
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- N/A
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
If the grant is awarded, the match portion of $3,156,280 will be funded by the grant. However, if the grant is not awarded, the City of San Luis will be financially responsible for the $3,156,280 match portion. Currently, there is no budget allocated for this project in the FY 2024-2025 budget. Therefore, the City of San Luis will need to allocate local funds for future fiscal years to cover this expense, as the project is expected to be completed within the next five years.
Attachments
- Resolution No. 2321
- Active Transportation Infrastructure Investment Program (ATIIP) NOFO
- Proposed Trails Map
- Construction Cost Estimates