AGENDA #4f

MEMORANDUM

TO:                  Roger L. Stancil, Town Manager

FROM:            K. Stephen Spade, Transit Director

                        Kenneth C. Pennoyer, Director of Business Management

SUBJECT:       Project Ordinance for a Surface Transportation Program Capital Grant

DATE:             June 25, 2008

Enactment of the attached ordinance would establish a project budget for a 2008-2009 Surface Transportation Program capital grant in the amount of $500,000 and would provide the local match of $50,000 from the Transit Capital Reserve Fund.

BACKGROUND

On May 19, 2008 the Council authorized the filing of applications for federal and State transit grants for capital and planning funds as part of the 2008-2009 budget.

The Federal Highway Administration (FHWA) provides Surface Transportation Program-Direct Attributable (STP-DA) funds to urbanized areas over 200,000 in population.  These funds are provided to the Durham-Chapel Hill-Carrboro Metropolitan Planning Organization (DCHC MPO) based on the population of the urbanized area.  The DCHC MPO receives these funds directly and has the authority to allocate these funds to projects as needed and has traditionally used STP-DA funds on non-highway capacity projects. 

In 2007 the Transportation Advisory Committee requested that the Lead Planning Agency staff and the Transportation Coordinating Committee work to develop a STP-DA funding proposal for the 2008-2015 Transportation Improvement Program.  It is expected that the DCHC MPO will allocate about 17% annually to transit projects.

DISCUSSION

Surface Transportation Program-Direct Attributable - Capital

Surface Transportation Program-Direct Attributable (STP-DA) funds will be to purchase miscellaneous capital items and may be used to:

• Purchase replacement support vehicles and lift-equipped vans;
• Purchase engine and transmission rebuilds for bus fleet;
• Purchase software and hardware for new technology,
• Purchase and repair bus shelters, and
• Purchase and/or upgrade security systems at existing park and ride lots.

The grant includes $400,000 in federal funds.  We will request $50,000 in State matching funds from the N.C. Public Transportation Division for eligible capital project costs.

The Town of Chapel Hill will provide a local match of $50,000 that is currently available in the Transit Department’s Capital Reserve Fund.

RECOMMENDATION

That the Council enact the attached project ordinance.