AGENDA #4i
MEMORANDUM
TO: Roger L. Stancil, Town Manager
FROM: K. Stephen Spade, Transportation Director
SUBJECT: Project Ordinance for a Transportation Capital Grant
DATE: October 23, 2006
The attached ordinance would establish a project budget for a transit capital grant, which will be used to purchase three hybrid electric buses.
BACKGROUND
Chapel Hill Transit operates a fleet of 86 buses ranging in age from four to 19 years old. The national standard fleet age is seven years. In an attempt to maintain a modern fleet and provide modest expansion, Chapel Hill Transit staff has implemented a plan for bus replacement and expansion. The three hybrid buses are a part of the fleet expansion.
Chapel Hill Transit submitted an application to the State of North Carolina for Congestion Mitigation and Air Quality (CMAQ) funds to purchase three hybrid electric buses. Under the basic provisions of the CMAQ program, the project must demonstrate that it will help to improve the air quality in the region. The project must demonstrate a reduction in emissions. The Town will receive these funds over the next three years with the first year allocation being received in FY 2007.
Companion grants will be submitted for the remaining two years as those funds are allocated and then transferred from the Federal Highway Administration to the Federal Transit Administration. A companion grant allows the joint funding of a project between two or more grants.
DISCUSSION
Urbanized Area Formula Program (Section 5307) - Capital
On July 19, 2006, a Federal Transit Administration grant totaling $587,337 was approved for the purchase of hybrid electric buses. The federal portion of the grant will provide 80 percent ($469,869). The Town of Chapel Hill has submitted an application to the N.C. Public Transportation Division requesting 10 percent ($58,734) in matching funds.
The Town’s matching share for this grant ($58,734) will come from the Transportation Capital Reserve Fund.
That the Council enact the attached project ordinance.