TO: ADAM PIRRIE, CITY MANAGER
FROM: BRAD JOHNSON, COMMUNITY DEVELOPMENT DIRECTOR
DATE: JULY 23, 2024
Reviewed by:
City Manager: AP
SUBJECT:
Title
BUDGET AMENDMENT FOR THE AMERICAN RESCUE PLAN ACT FUNDED GOSGV SUBSIDY (FUNDING SOURCE: AMERICAN RESCUE PLAN ACT FUND)
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SUMMARY
In March 2022, the City surveyed community members and businesses, asking for input on what ARPA funding priorities they would like to see for the community. In response to the feedback from surveys, staff prepared funding recommendations for City Council consideration. In May 2022, the City Council approved American Rescue Plan Act (ARPA) funding options, which included $100,000 to provide rebates to Claremont residents who purchase an electric bike (e-bike).
In July 2023, staff presented two e-bike programs utilizing ARPA funding, including an E-Bike Rebate Program and a subsidy for monthly bike rentals through the ActiveSGV managed by GoSGV e-bike share program. The City Council approved these programs and allowed staff to adjust the budget between the two programs. Staff allocated $40,000 towards the E-Bike Rebate Program and $60,000 for the GoSGV program.
The E-Bike Rebate Program funds have been fully distributed to residents, while the GoSGV has funding available to provide subsidies for two more months. ActiveSGV has continued to experience high interest in the GoSGV and currently has 119 residents participating, with a waitlist of forty-five residents.
RECOMMENDATION
Recommended Action
Staff recommends the City Council:
A. Authorize the City Manager to amend the existing agreement with ActiveSGV to increase the compensation by $168,000 for a total agreement amount of $228,000 for GoSGV e-bike subsidies; and
B. Appropriate $168,000 from the American Rescue Plan Act Fund to increase the GoSGV Program subsidy funding.
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ALTERNATIVE TO RECOMMENDATION
In addition to the staff recommendation, there is the following alternative:
• Request additional information from staff.
FINANCIAL REVIEW
The City of Claremont received a total allocation of $8.7 million in American Rescue Plan Act Funding. The City Council previously approved $100,000 for e-bike incentive programs, including an E-Bike Rebate Program and GoSGV Program subsidy, and allowed staff to allocate the funds depending on the demands of each program. This budget amendment would increase the funding by $168,000 for a total of $268,000.
The staff cost to prepare this report is estimated at $800 and is included in the operating budget of the Community Development Department
ANALYSIS
In July 2023, the Claremont City Council approved $100,000 in ARPA funding for the E-Bike Rebate Program and the GoSGV e-bike subsidy program. The E-Bike Rebate Program offered a rebate of up to $1,000 for moderate-income Claremont residents who purchased an eligible e-bike. Staff allocated $40,000 of the approved budget for the e-bike rebates, allowing for 40 rebates, and $60,000 for the GoSGV subsidies. The rebate program required significant administrative support, including marketing, reviewing e-bike and income documentation, and processing rebate checks. Therefore, staff is not recommending to increase funding for this program.
In September 2022, ActiveSGV launched the GoSGV program, which offers affordable monthly e-bike rentals for San Gabriel Valley residents. The classic commuter bike costs $69 monthly, but through the subsidy program, ActiveSGV lowered the monthly price to $50. With the City Council-approved subsidy, the GoSGV commuter bikes are free to Claremont residents.
Since the inception of the subsidy, Claremont residents' participation has remained consistent. Approximately 120 residents rent bikes on a monthly basis, which is the maximum that the City and ActiveSGV have set. Due to this limit, ActiveSGV currently has a waitlist of forty-five residents interested in a subsidized GoSGV bike. With the current program allocation and no increase in the number of subsidies offered, the program has enough funding for two more months of subsidies. After the funds have been depleted, participants will become responsible for the monthly payments or may return the bike to ActiveSGV.
While a study has not been conducted specifically on the Claremont E-Bike Subsidy Program’s environmental impacts, similar incentive e-bike programs have been found to reduce vehicle miles traveled (VMT) and local greenhouse gas emissions. A study conducted by the University of California, Davis, Institute of Transportation Studies found that recipients of e-bike incentive programs increased their bike usage from one to three times per month to one to three times per week. It also estimated that each incentive program participant reduced between twelve and forty-four kilograms of CO2 equivalent per month.
If the program budget is increased by $168,000, the City may offer an additional twenty-eight months of subsidies to Claremont residents at existing rental levels until December 2026. By then, the City must have fully expended its ARPA funding. If the rental limit is increased to 165 residents, allowing waitlisted residents to participate in the program, the City can subsidize GoSGV rentals for an additional twenty months, until March 2026.
Additionally, Claremont residents are eligible to participate in the GoSGV share-to-own program, which allows participants to take ownership of the bike after making payments equivalent to ActiveSGV’s cost to purchase the e-bike. At the City’s rate of fifty dollars a month, a participant could take ownership of the bike after fifty months of payments.
RELATIONSHIP TO CITY PLANNING DOCUMENTS
Staff has evaluated the agenda item in relationship to the City’s strategic and visioning documents and finds that it applies to the following City Planning Documents: Council Priorities, Sustainable City Plan, and the 2024-26 Budget.
CEQA REVIEW
This item is not subject to environmental review under the California Environmental Quality Act (CEQA).
PUBLIC NOTICE PROCESS
The agenda and staff report for this item have been posted on the City website and distributed to interested parties. If you desire a copy, please contact the City Clerk’s Office.
Submitted by: Prepared by:
Brad Johnson Alex Cousins
Community Development Director Management Analyst