Report No:Meeting Date

18-316

December 12, 2018

Alameda-Contra Costa Transit District

STAFF RE PO RTTO:

FROM:

SUBJECT:

AC Transit Board of Directors

Michael A. Hursh, General ManagerFY 2017-18 Affordable Housing & Sustainable Communities Grant Application forthe Berkeley Way Project

ACTION ITEM

RECOMMENDED ACTION(S);

Consider adoption of Resolution No. 18-042 authorizing 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 BRIDGE Housing(BRIDGE) and the City of Berkeley(City), or as aparticipating entity in an agreement with the City, in connection with the Berkeley Way Projectlocated at Berkeley Way and Henry Street, Berkeley, CA 94707(project).

BUDGETARY/FISCAL IMPACT:

A grant award would provide approximately $1,300,000 in funds for the procurement of one newzero-emission bus for expanded service on the Transbay F Line. No District funds would berequired for the bus purchase. Regional Measure 3 operating funds will cover the cost ofoperating the bus as expanded Transbay service. BRIDGE will also be applying for funding topurchase transit passes from the District as required by the AHSC program.

BACKCKOUND/RATIQNAIE

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 compact

infilldevelopment 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 bythe housing developers, as the housing portion is the prominentand 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.

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Report No.18-316Page 2 of3

AHSC Round4

This is the fourth round of AHSC program applications, and the fourth round the District hasparticipated as a joint applicant or participating entity. This report concerns the Berkeley WayProject at Berkeley Way & Henry Street, Berkeley, CA 94707, which is one of five Districtapplications for Round 4 of the AHSC program. The project is planned to be a 140-unit housingdevelopment, led by BRIDGE in partnership with the City of Berkeley. The District would eitherbe ajoint applicant or participating entity to the AHSC program grant application that includesup to $1,300,000 in funds forthe procurement of a new bus for expanded service on the TransbayF line

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$14,000,000. 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.

ADVANTAGES/DISADVANTAGES

The primary advantage is the District will receive external state grant funding for the identifiedcapitalneed of bus procurement for expanded Transbay F line service, if successfulin obtainingthe grant. Partnering with the other agencies greatly increases the competitiveness of the AHSCprogram 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 city for the AHSC

program grant application. However, this would drastically decrease the chances of the otherorganizations receiving the grant. The Berkeley Way project is one of five projects recommended

by staff to advance for the full AHSC program application. This is because the project meets theprimary needs of the District by providing funding for bus procurement for expanded Transbay Fline service.

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Report No.18-316Page 3 of3

PRIOR RELEVANT BOARD ACTION/POLICIES

SR 16-137a - Affordable Housing and Sustainable Communities Grant Award(Round 2 FY15-16

AHSC Grant Program Resolution and Authorization)

SR 18-021, 18-033, 18-034, 18-035, ]-8-036 (Round 3 FY16-17 AHSC Grant Program ProjectResolutions and Authorizationsl

ATTACHMENTS

1. Resolution 18-042 -- City of Berkeley - BRIDGE Housing2. AHSC Round 4 Presentation

Approved by:

Reviewed by:

Claudia L. Allen, Chief FinancialOfficer

Denise C. Standridge, GeneralCounselChris Andrichak, Director of Management and Budget

Eve Ng, CapitalPlanning and Grants ManagerMichele Joseph, Director of Marketing and CommunicationsJim Cunradi, Transportation Planning Manager

Prepared by: Kevin Gilday, Senior Capital Planning Specialist

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SR 18-316Attachment I

ALAMEDA-CONTRA COSTA TRANSIT DISTRICT

RESOLUTION NO. 18-042

A RESOLUTION AUTHORIZING THE GENERAL MANAGER OR HIS DESIGNEE TO FILE ANAPPLICATION AND EXECUTE RELATED DOCUMENTS UNDER THE STATE OF CALIFORNIA'S

AFFORDABLE HOUSING AND SUSTAINABLE COMMUNITIES PROGRAM ("AHSC PROGRAM") ASA JOINT APPLICANT AND JOINT GRANTEE WITH BRIDGE HOUSING("BRIDGE") AND WITH THE

CITY OF BERKELEY ("CITY"); OR AS PARTICIPATING ENTITY, IN CONNECTION WITH THE

PROJECT AT BERKELEY WAY & HENRY STREET, BERKELEY, CALIFORNIA 94704(THE"PROJECT").

WHEREAS, the State of California, the Strategic G rowth Council(SGC) and the Departmentof Housing and Community Development (Department) has issued a Notice of FundingAvailability dated November 1, 2018 (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 directed

to 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 AC Transit applicant. The totalamount of the Applicant's component of the applicationeither as joint applicant or participating entity is not to exceed $1,300,000 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 Agreements 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- 042 Page! of24 of 11

SR 18-316Attachment 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 Manager or his designee is authorized to execute in the nameof 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].2th 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. 18-042 Page2of25 of 11

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