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Home My Public Portal About19. American Rescue Plan Funded Electric Bike Rebate Program GuidelinesClaremont City Council Agenda Report File #: 4728 Item No: 19. TO: ADAM PIRRIE, CITY MANAGER FROM: BRAD JOHNSON, COMMUNITY DEVELOPMENT DIRECTOR DATE: JULY 25, 2023 Reviewed by: City Manager/Finance Director: AP SUBJECT: CONSIDERATION OF THE AMERICAN RESCUE PLAN ACT - FUNDED ELECTRIC BIKE REBATE PROGRAM GUIDELINES AND GOSGV SUBSIDY (FUNDING SOURCE: AMERICAN RESCUE PLAN ACT) SUMMARY In March 2022, the City conducted surveys with 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 the surveys, staff prepared funding recommendations for City Council consideration. On May 10, 2022, the City Council approved the ARPA funding options. This approval included $100,000 to provide rebates to Claremont residents that purchase an electric bike (e -bike). E -bike rebate programs have been utilized across the State to encourage households to reduce their vehicle usage and provide alternative transit options. An increase in usage of e -bikes has been shown to reduce regional greenhouse gas emissions and improve parking availability in high -demand areas. However, the high up -front cost of e -bikes can be a barrier for many households, especially compared to non -electric bikes. The proposed rebate and subsidy programs aim to make e -bikes more affordable and accessible for Claremont's households that are interested in diversifying their transportation options. RECOMMENDATION Staff recommends that the City Council: A. Approve the E -bike Rebate Program guidelines and allocate $75,000 for the program; and B. Approve the GoSGV E -bike subsidy program in the amount of $25,000. ALTERNATIVES TO RECOMMENDATION In addition to the recommendation, there are the following alternatives: CLAREMONT Page 1 of 4 Printed on 7/20/2023 powered by LegistarTM A. Do not approve either of the proposed programs. B. Direct staff to make changes to one of the proposed programs and depending on the extent of the changes, request the program draft to be brought back for consideration at a future meeting. FINANCIAL REVIEW The City of Claremont received a total allocation of $8.7 million in American Rescue Plan Act funding. The City Council approved $100,000 for the current budget year for an e -bike incentive program. The staff cost to prepare this report is estimated at $800 and is included in the operating budget of the Community Development Department. ANALYSIS An e -bike is a bicycle equipped with an electric motor and a rechargeable battery. E -bikes typically combine the traditional pedaling mechanism of a regular bicycle with the assistance of an electric motor, which provides additional power to the rider. Electric bikes come in various styles such as city bikes, mountain bikes, cargo bikes, folding bikes, and tricycles. E -bikes reduce the physical effort required for cycling, enabling riders to travel longer distances, promoting active transportation and reducing emissions compared to traditional vehicles. E -bikes typically have a higher upfront cost than traditional bicycles. The average price of a new e - bike is about $2,000; entry-level e -bikes are about $1,000 and high -end e -bikes are typically priced over $5,000. The proposed rebate program intends to reduce the high up -front cost and make e - bikes more obtainable for Claremont households. Furthermore, the long-term maintenance costs of an e -bike are significantly lower than that of a car, which can provide a long-term cost savings for Claremont households. The primary objectives of the proposed E -bike Rebate Program are to reduce local emissions, make e -bikes more affordable, provide long-term cost savings, encourage more people to use bikes, improve public health, and offer an alternative transit option. By promoting the use and purchase of e -bikes, staff believe it will reduce Claremont households' dependence on cars when visiting destinations such as the Village, potentially increasing parking availability during peak times. Standard and Low -Income Rebate The proposed standard rebate is a 50 percent rebate or reimbursement for a new e -bike purchase, up to $500. The proposed low-income rebate would be a 100 percent rebate for the purchase of a new e -bike up to $1,000. Therefore, households deemed low-income, as defined by the United States Department Housing and Urban Development (HUD), purchasing an entry-level bike may have the full cost of the e -bike reimbursed. The proposed guidelines would allocate $25,000 of the program funding for low-income applicants, and the remaining $50,000 would be available for standard rebates. Both programs require the applicants to maintain ownership and operation of the e - bike for at least one year after purchase. Staff will verify this through either a physical inspection of the e -bike or a date and time stamped photo. Rebate vs Grant Structure E -bike grant and rebate programs have been popular tools across the state for cities and other local CLAREMONT Page 2 of 4 Printed on 7/20/2023 powered by LegistarTM jurisdictions to make e -bikes more accessible for Californians. These programs typically take one of two forms: a rebate, which reimburses residents after purchasing an eligible e -bike, or a grant or voucher, which provides the funds up -front to residents, who may then purchase an e -bike at a discounted price. After analyzing other programs and having discussions with other jurisdictions, staff decided to structure the proposed program as a rebate. Some jurisdictions have experienced issues with applicant's receiving vouchers but never using them, with some stating over 50 percent of the vouchers going unused. These jurisdictions also experienced problems with applicants attempting to sell the vouchers to other residents. Additionally, voucher programs are limited to a certain number of retailers willing to accept the vouchers. While some affordable e -bikes can be provided locally, there are more lower -cost e -bike options available online. By structuring the program as a rebate, applicants may purchase eligible e -bikes of their choice and not be limited to those offered by local retailers. Online retailers may offer a wider range of e -bike options, including e-trikes for people with disabilities. While the rebate structure is preferred, the primary downside is that applicants will need to fund the purchase before they can be reimbursed by the City. Many online retailers offer low- or no -interest buy now pay later options, which may be utilized by applicants, or they may use another preferred method. GoSGV E -Bike Subsidy Program In September 2022, ActiveSGV launched the GoSGV program, which allows San Gabriel Valley residents to check out an e -bike for monthly use. There are a total of 840 e -bikes available through the GoSGV program, including 12 cargo e -bikes. However, since the inception of this program, Claremont residents' participation in this program has remained low. In addition to the e -bike rebate, staff proposes to offer a subsidy to incentivize more Claremont residents to utilize the GoSGV bikes. The subsidy would provide up to $49 per month, for up to a year, per household. Staff proposes allocating $25,000 for the e -bike subsidy program. The City would pay the subsidy directly to ActiveSGV, and the remaining balance, if any, would be paid by the resident. The chart below shows the current monthly rental price and the proposed subsidized price. Type Monthly Price Proposed Subsidized Price Classic Commuter $69 $20 Student Rate $49 $0 Senior Rate (62+ years old) $49 $0 Income Qualified Rate $29 $0 Cargo $149 $100 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 2022-24 Budget. CEQA REVIEW This item is not subject to environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15060(c)(3) (the activity is not a "project" as defined in Section 15378). CLAREMONT Page 3 of 4 Printed on 7/20/2023 powered by LegistarTM 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 Attachment: Electric Bike Rebate Program Guidelines CLAREMONT Page 4 of 4 Printed on 7/20/2023 powered by LegistarTM ATTACHMENT CITY OF CLAREMONT Electric Bike Rebate Program General Qualifications and Conditions for Program Eligibility I. Applicant Eligibility 1. Applicants must be at least 18 years of age and live in the City of Claremont. 2. Businesses, non-profit organizations, and government entities are not eligible for rebates. II. Eligible E -Bikes 3. Electric bikes (E -bikes) must be NEW at time of purchase. 4. Class 1, 2, 3 e -bikes are eligible for rebates. E -bikes must have pedals to qualify for a rebate. Foot pegs do not qualify as pedals. 5. Children's electric bikes, or bikes advertised for children, are not eligible for rebates. 6. E -bikes that are purchased online must be shipped/delivered to an address located within the City of Claremont. II. Application Process 7. Applicants must purchase an eligible electric bicycle before applying for a rebate. Applicants must apply for a rebate within six months of the date listed on the e -bike sales receipt and prior to rebate fund exhaustion or program termination. 8. Applicants must submit a photo of the sales receipt that includes the purchase date, purchase price, proof that CA sales tax was applied to the transaction, and the make and model name of the e -bike. 9. Applicants must provide proof of age in the form of a driver's license, state -issued ID, or passport. 10. Applicants must provide proof of City of Claremont residency by submitting a photo of recently dated official correspondence such as a utility bill, cell phone bill, pay stub, property tax statement, lease agreement, etc. that shows the applicant's name and home address. P.O. Boxes will not be accepted as proof of residency. 11. Applicants will be required to participate in at least one post -rebate survey. 12. Applicants must pledge to maintain ownership and operation of the rebated e -bike for at least one year after purchase, barring any physical limitations (to applicant or e -bike) that may arise. The City will verify ownership of the e -bike. Electric Bike Rebate Program— Page 1 13. Applicants will be notified of their application status by email within seven days of submitting a rebate application. If approved for a rebate, checks (issued by City of Claremont) will be issued in the name of the applicant and mailed within 30 days. 14. If a rebate applicant loses their rebate check and request a new one, a service fee of $18 will be deducted from the replacement rebate check. 15. The City of Claremont reserves the right to deny a rebate to any individual deemed, in the City of Claremont's sole discretion, to be violating the terms, conditions, and restrictions of the Program. III. About the Rebates 16. Limit: ONE rebate per person; ONE rebate per home address. 17. Standard rebates will be a 50% rebate for a new e -bike purchase up to $500. 18. Low Income rebates will be a 100% rebate for a new e -bike purchase up to $1,000. Households must qualify as Low- Very Low-, or Extremely Low -Income as defined by HUD. To determine if you are income -qualified, please visit huduser.gov/portal/datasets/il.html. The Los Angeles -Long Beach -Glendale, CA HUD Metro FMR Area contains all of Los Angeles County, including Claremont. The City of Claremont will always use the current year's income limits provided by HUD in determining eligibility. To supplement your application you will be required to provide one of the following documents for each adult member off your household: a. Proof of enrollment in a public assistance program such as: • City of Claremont Temporary Housing Stabilization and Relocation Program (Tiers 1 and 3) • Low Income Home Energy Assistance Program (LIHEAP) • Woman, Infants, and Children (WIC) • CalFresh/SNAP (Food Stamps) • CalWORKs (TANF) • Supplemental Security Income (SSI) • Medi-Cal for Families (Healthy Families A & B) • National School Lunch Program (NSLP) • Medicaid/Medi-Cal b. Tax document, such as a W-2, Tax Return, 1099-MISC, or other applicable tax document • Applicants should omit social security numbers when submitting tax documents. • Applicants who can be claimed as a dependent must provide qualifying proof of total household income to qualify for a low-income rebate c. A copy of most recent pay stubs or similar documentation showing two months' or more of household's monthly income d. Social Security or Social Security Disability Insurance statements or benefit letters. 19. If the purchase price of the e -bike is lower than the qualified rebate amount, participants will receive a rebate for the full purchase price. Electric Bike Rebate Program— Page 2 20. The purchase price (excluding sales tax) of the E -bike must be less than $3,000 before any incentives are applied. 21. Assembly fees, if offered, can be included in the total purchase price of the E -bike. 22 City of Claremont E -Bike Rebates are subject to funding availability. $25,000 of the funding will be set aside for Low Income Applicants; $50,000 will be available for Standard Rebates. Submission of a completed application will not guarantee issuance of a rebate. Rebates will be issued on a first -come first -served basis as applications are received, until funding is depleted or the Program chances. All incentives are final. IV. User Responsibilities 23. User Responsibility: Owners of e -bikes who receive a City of Claremont E -Bike Rebate are responsible for knowing and following all laws regarding use of e -bikes. Rebate recipients independently select and purchase their own devices, assume all liability, and must agree to a disclaimer: a. Disclaimer: Owners of electric bikes who receive a rebate from the City of Claremont are responsible for knowing and following all laws regarding use of said device. The City of Claremont and its employees are held harmless and assume no liability for any rebated items nor incidents involving their usage. Rebate recipients agree that the City of Claremont is not liable for all usage of and incidents involving rebated items including injury, death, or claims resulting from collisions, accidents, defective devices, and/or traffic violations. Furthermore, the City of Claremont is not liable for the theft of loss of e -bikes, not the theft or loss of rebate checks. 24. Tax Liability and Credits: The City of Claremont is not responsible for any taxes which may be imposed on the customer as a result of the rebates provided by the Program. 25. Disputes: Except where otherwise limited by law, the City of Claremont reserves the right, in its sole discretion, to make final determinations regarding any disputed issues about the Program, including but not limited to eligibility and rebate amount. 26. Program Changes: The City of Claremont reserves the right to change, modify, or terminate the program at any time without any liability except as expressly stated herein. (Signatures on next page) Electric Bike Rebate Program— Page 3 I/WE have read and understand the foregoing general qualifications and conditions for program eligibility. I/WE further understand that any misstatements, omissions, misrepresentations, deletions, falsifications, or other actions which result in MY/OUR not conforming to the requirements listed above or in other contract documentation will subject MY/OUR application to immediate cancellation and cause any disbursed funds to become immediately due and payable and may cause further legal action if warranted. Date Applicant Signature Co -Applicant Signature CONTACT INFORMATION: If you have any questions regarding this application or the program in general, please do not hesitate to contact Alex Cousins, Management Analyst at (909) 399-5323. Electric Bike Rebate Program— Page 4