AGENDA #4c

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Authorization to Apply for Federal and State Grants for Public Transportation

DATE:            April 24, 2006

The attached resolution would authorize grant applications for federal and State transportation operating assistance, capital and planning funds for 2006-07.

BACKGROUND

The Town has applied for and received federal and State transportation grants since 1974.  These funds have been used for capital, operating, and planning programs for the public transit system.

The Town of Carrboro and the University of North Carolina also provide financial support for transit services through annual service contracts with the Town.

The service contracts provide the foundation for cooperation, describe the role of each partner, pledge continued support for transit services, set the level of service each year, and assign proportional costs to each jurisdiction.

DISCUSSION

Federal Assistance/State Assistance

Based on prior year allocations we estimate the federal assistance available for 2006-2007 to offset maintenance costs will be about $1,115,000.

The Town of Chapel Hill and the City of Durham annually re-negotiate the allocation formula used to distribute the federal funds received by the urban area based on passenger miles, ridership and population.  The current formula uses the demographic statistics for each city to calculate the appropriation for this operating funding.

We also expect to receive State funds totaling about $3,300,000 from the State Maintenance Assistance Program used to offset the cost of operations.

Planning Funds

Federal Transit Administration urbanized area formula program planning funds (Section 5307) would be used for activities including:

• monitoring of special services;
• monitoring, evaluation and annual assessment of current services;
• annual update of the Metropolitan Transportation Improvement Program.

Of the total $200,000, the Federal Transit Administration would provide 80 percent ($160,000), and the State would provide 10 percent ($20,000).  The local matching share of 10 percent ($20,000) is budgeted in the Transportation Department’s Capital Reserve Fund.

Federal Transit Administration urbanized area formula program planning funds (Section 5303) would be used for activities including:

• developing the capital improvements program;
• developing the annual Planning Work Program;
• identifying strengths and weaknesses of service by route to assess problems and options;
• completing the Long Range and Short Range transit plans;
• refining Town regional transit models; and
• completing work with the region to develop the 2035 Regional Transportation Plan.

Of the total Section 5303 planning project expenses of $118,070 the federal government would provide 80 percent ($94,450), and the State would provide 10 percent ($11,810).  The local matching share of 10 percent ($11,810) is budgeted in the Transportation Department’s Capital Reserve Fund.

Capital Funds

• Section 5307 capital funds will be allocated for the transportation portion of the Town Operations Center.  In addition to the $14,251,000 already received for the project an additional $6,988,000 will be funded this year.  The federal government will provide 80 percent ($5,591,000), the State will provide 10 percent ($699,000), and the local matching share of 10 percent ($699,000) is budgeted in the Transportation Department’s Capital Reserve Fund.

• Section 5309 funds totaling $5,908,000 will be received to purchase a bus replacement fleet consisting of both diesel and hybrid-diesel buses.  Town staff will continue discussions with the Public Transit Committee to determine the number of each type of bus that will be ordered.  The federal government will provide 80 percent ($4,726,400), the State will provide 10 percent ($590,800) and the local matching share of 10 percent ($590,800) will be budgeted in the Transportation Department’s Capital Reserve Fund.

• Section 5309 capital funds will be received for land acquisition and design of a park/ride lot in the 15-501 North corridor.  The federal government will provide 80 percent ($586,500), the State will provide 10 percent ($73,300), and the local matching share of 10 percent ($73,300) will be budgeted in the Transportation Department’s Capital Reserve Fund.

• The annual Section 5307 urbanized area formula allocation will include capital funds that would be used to purchase major spare parts for the bus fleet such as rebuilt engines and transmissions, air conditioning compressors and bus tires.  Funds available for this project are estimated to be about $300,000.  The federal government will provide 80 percent ($240,000).  The State will not participate in this project therefore, the local match requirement will be 20 percent ($60,000).  The local match is budgeted in the Transportation Department’s Capital Reserve Fund.

The total amount of grant funds to be requested for capital projects in FY 2006-2007 is about $12,507,000.

RECOMMENDATION

That the Council adopt the attached resolution authorizing the Manager to apply for and execute contracts for transportation grants.