For City Council Meeting July 25, 2023
TO: Honorable Mayor and City Council
APPROVAL: Arron Brown, Acting City Manager
FROM: Cynthia Alvarado, Parks, Recreation & Community Services Director
Title
Request City Council to: (1) Approve a grant application for Window 1 Mobility Project Voucher (MPV) under the Clean Mobility Options (CMO) Program; (2) Authorize the Acting City Manager to sign all necessary documents to complete the grant submission
Body
BACKGROUND
On October 20, 2020, the city of Rialto applied for $1 million to support the bike share program. There is no minimum dollar amount or match requirements for projects proposed through the CMO Pilot Program. On February 12, 2021, the city of Rialto received notice from CMO that the City was conditionally approved for funding, and on April 16, 2021, the city of Rialto received a Notice of Proposed Award from CMO in the amount of $1 million.
On March 29, 2023, CMO announced additional funding for the MPV under the CMO Program. Awardees who have less than $1 million in the voucher funding in their current voucher agreement can apply for additional funding. The additional grant funds may be used to cover insurance costs, capital acquisition, planning and operations, administration, outreach and marketing, and participation in Clean Mobility Equity Alliance (CMEA) meetings. The deadline for applications is August 8, 2023.
ANALYSIS/DISCUSSION
The Parks, Recreation & Community Services Department has already spent $462,351.78 of the $1 million dollar grant money awarded by CMO to cover the cost of the infrastructure (bikes, software, tools and supplies, and operations team). The next four years are funded by the original $1 million dollar grant; however, inflation and insurance costs will increase the bottom-line cost for the city of Rialto and the managing company of the bikes, Drop Mobility.
The city of Rialto budgeted $50,000 in cost for one Accounting Technician, one Assistant Engineer, and one interim Director to handle the project over five-year grant period. Accumulative, the city estimated that the department would spend around 350 hours on this project; but that timeframe has multiplied four times that. The weekly meetings, reporting, project managing and communication between the CMO and the City has gone above the city’s original expectations.
Drop Mobility, the awarded consultant, provider, and manager of the bikes also has additional costs due to the additional time needed for the bike’s release to the public and inflation costs for the program.
Window 1 Mobility Project Voucher Awardees with less than $1 million are eligible for up to $500,000 in additional funding for the current CMO Project without submitting a new voucher application. The additional funds for Window 1 MPV Awardees may be applied to insurance compliance, capital acquisition, planning and operations, administration, outreach and marketing, participation in Clean Mobility Equity Alliance meetings and other program activities only in support of the project scope outlined in their voucher agreement. Awardees must submit an updated financial sustainability plan and a revised budget that justifies the need and use of additional funds based on the current approved milestone schedule and budget to the Program Administrator for review and approval.
ENVIRONMENTAL IMPACT
The proposed request is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to section 15378(b), a project does not include: (5) Organization or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
Approval of this action complies with the following City of Rialto General Plan Goals and Policies:
Our city government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
Approval of this action also complies with the City of Rialto General Plan Goal and Policies.
LEGAL REVIEW
The City Attorney has reviewed and supports this staff report.
FINANCIAL IMPACT
Operating Budget Impact
There is no financial impact to the General Fund. This is not a grant match required grant. If awarded, the funds are administered by a third party (CMO) who seeks the City’s approval before releasing payments to Drop Mobility. Payment requests are fully vetted by City staff before moving forward to the City Manager for payment approval signature.
Capital Improvement Budget Impact
There is not financial impact to the Capital Improvement Budget.
Licensing
There is no business license required for the requested action.
RECOMMENDATION
Staff recommends that the City Council Authorize (1) the submission of a grant application for Window 1 Mobility Project Voucher (MPV) under the Clean Mobility Options (CMO) Program; (2) Authorize the City Manager to sign all necessary documents to complete the grant submission.