ReportNo:Meeting Date

18-315

December 12, 2018

Alameda-Contra Costa Transit District

STAFF R E PORTTO:

FROM:

SUBJECT:

AC Transit Board of Directors

Michael A. Hursh, General ManagerFY 2017-18 Affordable Housing & Sustainable Communities Grant Application forthe Treasure Island Development Project

ACTION ITEM

RECOMMENDED ACTION(S)

Consider adoption.of Resolution No. 18-041authorizing the General Manager, or his designee,to file an application and execute related documents under the FY2017-18 State of California'sAffordable Housing and Sustainable Communities program (AHSC program) either as a jointapplicant and joint grantee with Mercy Housing California (Mercy) and the Treasure IslandDevelopment Authority (TIDA) an agency of the City and County of San Francisco, or as aparticipating entity in an agreement with TIDA, in connection with the Treasure Island C3.1Project (project).

BUDGETARY/FISCAL IMPACT

A grant award would provide approximately $4,000,000 in funds for the procurement of up tofive new zero-emission buses for the first phase of new service to Treasure Island, with thebalance of funding coming from Treasure Island Community Development(TICD), as agreed to inan earlier Agreement with the Treasure Island Mobility Management Agency (TIMMA). NoDistrict funds would be required for the bus purchases. The District also has an operatingagreement with TIMMA that specifies they willfund the cost of the new service. Mercy willalsobe applying for funding to purchase transit passes from the District as required by the AHSC

program.

BACKGROUND/RATIONALE

AHSC Program

Senate Bill 862 established a long-term funding framework and programmatic categories forCalifornia's Cap and Trade funding, including the AHSC program. The AHSC program isadministered by the California Strategic Growth Council (SGC) and allocated by the CaliforniaDepartment of Housing and Community Development(HCD) through their funding agreements.

The AHSC program was created to reduce greenhouse gas emissions by creating more compactinfilldevelopment patterns, integrating affordable housing with sustainable transportation, andencouraging active transportation and transit usage. Statutory requirements mandate that 50%of the entire program must be used for affordable housing, and 50% must be spent indisadvantaged communities.

Eligible project applicants include government entities, transit agencies, and developers. AHSCprogram applications are led by the housing developers, as the housing portion is the prominent

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Report No. 18-315Page 2 of3

and complex element. For each project, the District is a co-applicant with the developer and withthe sponsoring city, or a participating entity with the sponsoring city.

AHSC Round 4

This is the fourth round of AHSC program applications, and the fourth round the District hasparticipated as ajoint applicant or participating entity. This report concerns a development atTreasure Island, in ParcelC3.1, which is one of five District applications for Round 4 of the AHSCprogram. The project is planned to be a 135-unit housing development, led by Mercy inpartnership with TIDA. The District would either be ajoint applicant or participating entity to theAHSC program grant application that includes up to$4,000,000 in funds for the procurement ofup to five zero-emission buses for new service to Treasure Island.

The full scope of the entire AHSC project is not yet finalized, as applications are not due untilFebruary 11, 2019, and cities and developers are developing their applications. At this time, theAffordable Housing Development (AHD) component of the project is estimated to be$12,000,000. This action is brought for Board consideration early so that cities and developerscan have advanced notice of the District's intended level of participation and plan theirapplications accordingly. If the District applies as a participating entity a signed Memorandum ofUnderstanding(MOU) or Agreement with the City is required for the application.

The AHSC program requires significant coordination with severalpartners. District staff have andwill continue to work with Enterprise Community Partners (Enterprise), the MetropolitanTransportation Commission (MTC), developers, and staff from the City of Oakland, the City ofAlameda, City of Berkeley, and the City and County of San Francisco's subsidiary agencies TIDAand the Treasure Island Mobility Management Agency(TIMMA) on the fourth round of programapplications.

Treasure Island MOU

In addition to the AHSC program coordination efforts, District staff have been working with TIDAsince 2008 regarding the operation of bus service between the City of Oakland and the plannedTreasure Island development. The Board authorized the District to enter a MOU with TIDA onNovember 16, 2011for planned service in 2015. Subsequently, the Treasure Island developmentproject faced schedule delays, and the San Francisco County Transportation Authority (SFCTA)

designated TIMMA in 2014 as the principalfor planning sustainable mobility on Treasure Island.Following the presentation of Report No. 11-lila forthe June 14, 2017 Board meeting, the Boardauthorized an MOU between the District and TIMMA, dated February 1, 2018, providing theframework of the proposed service provision between the East Bay and Treasure Island, plannedto begin in 2020.

The AHSC program application is pursuant to the MOU. The joint application for AHSC programfunds willsupplement the TICD financialcommitment to fund nine new buses for Treasure IslandService, pursuant to Section 1.3 Buses. The Buses will be zero-emissions buses, pursuant toSection 5.2 Terms of Purchase of the MOU. The AHSC program application is a cooperative effort

to jointly seek funding from allavailable externalsources for capitalneeds, pursuant to Section7.7.4 - Other Funding Sources.

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Report No.18-315Page 3 of3

ADVANTAaES/DiSADVANTAaES

The primary advantage is the District willreceive externalstate grant funding for the identifiedcapitalneed of bus procurement for Treasure Island service, pursuant to the District's MOU with

TIMMA, if successfulin obtaining the grant. Partnering with the other agencies greatly increasesthe competitiveness of the AHSC program grant application.

The disadvantage is that the AHSC program requires a significant investment of staff time fromthe application stage, to administration of the grant if awarded, to complying with operationalrestrictions on buses purchased with the grant funds. Further, if the District proceeds as a jointapplicant rather than a participating entity, upon grant funding notification joint applicants arerequired to sign and execute the SGC Standard Agreement to receive funding for the project,after which nojoint applicant may be removed from the agreement. If anyjoint applicant declinesthe funding award the entire grant award is cancelled, and no portion of the project is funded.

ALTERNATIVESANALYSIS

The District could choose not to partner with the housing developer and TIDA for the AHSCprogram grant application. However, this would drastically decrease the chances of the otherorganizations receiving the grant. The Treasure Island project is one of five projectsrecommended by staff to advance for the full AHSC program application. This is because theproject meets the primary needs of the District by providing funding for bus procurement forTreasure Island service, pursuant to the District's MOU with TIMMA.

PRIOR RELEVANT BOARD ACTION/POLICIES

GM Memo No. 11-11IReport on a Memorandum of Understand for Treasure Island Bus Service

Memorandum of Understanding Between the Alameda-Contra Costa Transit District and theTreasure Island Mobility Management Agency

SR 16-137a -- Affordable Housing and Sustainable Communities Grant Award(Round 2 FY15-16AHSC Grant Program Resolution and Authorization)

SR 18-021, 18-033, 18-034, 18-035, 18-036 (Round 3 FY16-17 AHSC Grant Program ProjectResolutions and Authorizationsl

ATTACHMENTS

1. Resolution 18-041-- TIDA --Mercy Housing California2. AHSC Round 4 Presentation

Approved by:

Reviewed by:

Claudia L. Allen, Chief FinancialOfficer

Denise C. Standridge, GeneralCounselChris Andrichak, Director of Management and BudgetEve Ng, Capital Planning and Grants ManagerMichele Joseph, Director of Marketing and CommunicationsJim Cunradi, Transportation Planning ManagerKevin Gilday, Senior Capital Planning SpecialistPrepared by:

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SR 18-315Attachment I

ALAMEDA-CONTRA COSTA TRANSIT DISTRICT

RESOLUTION NO. 18-041

A RESOLUTION AUTHORIZING THE GENERAL MANAGER OR HIS DESIGNEE TO FILE AN

APPLICATION AND EXECUTE RELATED DOCUMENTS UNDER THE STATE OF CALIFORNIA'S

AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES PROGRAM ("AHSC PROGRAM") ASA JOINT APPUCANT AND JOINT GRANTEE WITH MERCY HOUSING CAUFORNIA("MERCY")

AND WITH THE TREASURE ISLAND DEVELOPMENT AUTHORITY("TIDA") OR AS A

PARTICIPATING ENTITY, IN CONNECTION WITH THE PROJECT AT TREASURE ISLAND C3.1, SAN

FRANCISCO, CA (THE "PROJECT").

WHEREAS, the State of California, the Strategic Growth Council(SGC) and the Departmentof Housing and Community Development (Department) has issued a Notice of FundingAvai[abi[ity dated November 1, 20].8 (NOFA), under the Affordable Housing and SustainableCommunities(AHSC) Program established under Division 44, Part lof the Public Resources Codecommencing with Section 75200; and

WHEREAS, the Alameda-Contra Costa Transit District (Applicant) desires to apply forAHSC Program funds and submit the Application Package released by the Department for theAHSC Program either as ajoint applicant or participating entity; and

WHEREAS, the SGC is authorized to approve funding allocations for the AHSC Program,subject to the terms and conditions of the NOFA, Program Guidelines, Application Package, andStandard Agreement. The Department is authorized to administer the approved fundingallocations of the AHSC Program;

NOW THEREFORE, the Board of Directors of the Alameda-Contra Costa Transit Districtdoes resolve as follows:

Section 1. The General Manager, or his designee is hereby authorized and directedto apply for and submit either as joint applicant or participating entity to the Department theAHSC Program Application as detailed in the NOFA dated November 1, 2018, for Round 4 onbehalf of ACTransit applicant. The total amount of the Applicant's component of the applicationeither as joint applicant or sub-recipient is not to exceed $4,000,000 for SustainableTransportation Infrastructure (STI) as defined in the AHSC Program Guidelines adopted by SGCon October 29, 2018. If the application is approved, if necessary the Applicant is herebyauthorized and directed to enter into, execute, and deliver a State of California StandardAgreement(Standard Agreement) for the entire amount of the joint application, and any and allother documents required or deemed necessary or appropriate to secure the AHSC Programfunds from the Department, and allamendments thereto(collectively, the "AHSC Documents").

Section 2. Applicant shall be subject to the terms and conditions as specified in theStandard Agreement. Funds are to be used for allowable capitalasset project expenditures to beidentified in Exhibit A of the Standard Agreement. The application in fullis incorporated as partof the Standard Agreement. Any and allactivities funded, information provided, and timelinesrepresented in the application are enforceable through the Standard Agreement. Applicant

Resolution No. 18-041 Page1 of24 of 11

SR 18-315Attachment I

hereby agrees to use the funds for eligible capital asset(s) in the manner presented in theapplication as approved by the Department and in accordance with the NOFA and ProgramGuidelines and Application Package.

Section 3. The General Manageror his designee is authorized to execute in the name

of Applicant the AHSC Program Application Package and the AHSC Program Documents asrequired by the Department for participation in the AHSC Program.

Section 4. The resolution shall become effective immediately upon its passage byfour affirmative votes of the Board of Directors.

PASSED AND ADOPTED this 12th day of December, 2018

Elsa Ortiz, President

Attest

Linda A. Nemeroff, District Secretary

1, Linda A. Nemeroff, District Secretary for the Alameda-Contra Costa Transit District, dohereby certify that the foregoing Resolution was passed and adopted at a regular meeting of theBoard of Directors held on the 12th day of December, 2018, by the following rollcallvote:

AYES

NOES

ABSENT:

ABSTAIN

Linda A. Nemeroff, District Secretary

Approved as to Form and Content

Denise C. Standridge, GeneralCounsel

Resolution No. 18-041 Page2of25 of 11

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