AGENDA #4m
MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Amendment to a Project Ordinance for a Transportation Capital Grant
DATE: September 12, 2005
PURPOSE
The attached ordinance would establish a project budget for a transit capital grant which would be used to rehabilitate eight buses that have reached the end of their service life.
BACKGROUND
The Town currently owns 13 1990 GMC RTS buses that were scheduled for replacement in 2002. The useful life of a vehicle of this type is 12 years. On April 2, 2003, the Council received a report on the cost effectiveness of remanufacturing buses and directed staff to pursue rehabilitation rather than replacement at a higher cost.
In the fall of 2004, the Town received $800,000 in federal funds for the rehabilitation project. A bid was awarded to Complete Coach Works on September 27, 2004 for the rehabilitation of up to 13 buses. Five of the 13 buses are currently being rehabilitated using the available funds.
On July 7, 2005, a companion grant was awarded with earmark funds secured by Representative David Price. A companion grant allows the joint funding of a project between two or more grants. A partial allocation of $1,267,871 (65%) of Section 5309 federal funds has been authorized for the project. In addition to the Section 5309 funds, the Town received a Statewide earmark of $144,000 in federal funds for the same project.
This amendment to the existing project ordinance will allow the Town to complete the project and rehabilitate the remaining eight 1990 buses.
DISCUSSION
Federal Transit Administration Discretionary Program (Section 5309)
On August 9, 2005, a Federal Transit Administration grant in the amount of $1,707,555 was approved for the remanufacture of eight buses.
Funding details for the companion grant are:
· $1,267,871 - in federal funds from a congressional earmark (announced in November 2004). State matching funds will be requested for $122,204, and the local match will be $137,480. This project is eligible for an 83% federal portion due to the American’s with Disabilities requirement that all rolling stock should be ADA accessible. The State has agreed to match these projects with 8% and the remaining 9% will be the local share.
· $144,000 - in federal Section 5309 bus and bus-related allocation funds have also been allocated to the project. State matching funds of 10% are required ($18,000) as well as local matching funds of 10% ($18,000).
|
Funding Source |
Federal |
State |
Local |
Totals |
|
Congressional Earmark |
$1,267,871 |
$122,204 |
$137,480 |
$1,527,555 |
|
Statewide Earmark |
$144,000 |
$18,000 |
$18,000 |
$180,000 |
|
Total |
$1,411,871 |
$140,204 |
$155,480 |
$1,707,555 |
The federal portion of the grant will provide $1,411,871, the State will provide $140,204, and the Town’s matching share of $155,480 is available in the Transportation Capital Reserve Fund.
That the Council enact the attached project ordinance.
AN ORDINANCE AMENDING A PROJECT BUDGET FOR A TRANSPORTATION GRANT (2005-09-12/O-4)
BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following grant project is hereby established:
The Federal Transit Administration Discretionary Program (Section 5309) funds are from a 2005 agreement with the Federal Transit Administration.
The Manager of the Town of Chapel Hill is hereby directed to proceed with the implementation of the project within the terms of the grant agreements executed with the Federal Transit Administration and the North Carolina Department of Transportation within the funds appropriated herein.
The following revenue is anticipated to be available to the Town to complete activities as outlined in the project application.
Federal Transit Administration Discretionary Program (Section 5309)
|
Federal Transit Administration (FTA) |
$1,411,871 |
|
N.C. Department of Transportation (NCDOT) |
140,204 |
|
Town of Chapel Hill (local match) |
155,480 |
|
Total |
$1,707,555 |
The following amounts are appropriated for the FY 2005 Section 5309 project:
|
Capital Equipment |
$1,707,555 |
|
Total |
$1,707,555 |
This the 12th day of September, 2005.