AGENDA #4h

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Project Ordinance for a Transportation Capital and Planning Grant

DATE:            June 12, 2006

The attached ordinances would establish a project budget for a 2005-2006 transit capital and planning grant in the amount of $682,730 and would provide the local match of $115,480 from the Transportation Capital Reserve Fund.

BACKGROUND

On June 27, 2005, the Council authorized the filing of applications for federal and State transit grants for capital and planning funds as part of the 2005-2006 budget.

Urbanized Area Formula Program (Section 5307) funds, appropriated by the Federal Transit Administration, are distributed by formula to urbanized areas.  These funds are provided to pay for operating, capital and planning needs.

The distribution of these funds was agreed upon between the recipients in the urbanized area and the distribution letter was received by the Federal Transit Administration in March 2006.  An application was filed and funds were obligated by the Federal Transit Administration on May 18, 2006.

The grant includes $546,184 in federal funds.  A request for State matching funds will be submitted to the N.C. Public Transportation Division for the amount of $20,694, representing eligible planning project costs.

The Town of Chapel Hill will provide a local match of $115,852 that is available in the capital reserve fund.

DISCUSSION

Urbanized Area Formula Program (Section 5307) - Capital

The Federal Transit Administration Section 5307 capital funds will be used to:

• Continue the ongoing lease obligation for a park-ride facility at Carrboro Plaza
• Rebuild bus engines and transmissions
• Purchase furniture for the Transportation portion of the Town Operations Center
• Lease a modular office unit for use as Transportation Department offices until completion of the Town Operations Center
• Purchase and repair bus shelters
• Provide bus shelter site improvements

Federal guidelines allow recipients of Section 5307 funds to spend a minimum of one percent annually for transit projects that would enhance mass transit service or use and also one percent annually for safety and security.  Transit enhancement funds will be used to rehabilitate and improve bus stops and signage within the Town’s service area and purchase bus shelters where needed.  Safety and security funds will be used to increase security at Town-owned park and ride lots, including installation of emergency phones and lighting fixture repairs as needed.

Urbanized Area Formula Program (Section 5307) - Planning

Planning funds will be used to offset costs incurred by three transit employees while performing planning activities.  These activities include evaluation of transit facilities and local land use plans, collection of traffic count data, evaluation of compliance with the Americans with Disabilities Act, development of the 2040 regional plan, development of a transit safety plan along the N.C. 86 corridor, and development of the annual Transportation Improvement Plan and the Unified Planning Work Program.

RECOMMENDATION

That the Council enact the following project ordinance and budget amendment.