AGENDA #4k
MEMORANDUM
TO: Mayor and Town Council
FROM: Roger L. Stancil, Town Manager
SUBJECT: Project Ordinance for a Transportation Capital Grant
DATE: September 11, 2006
The attached ordinance would establish a project budget for a transit capital grant that will be used to purchase three 35 foot replacement buses.
BACKGROUND AND DISCUSSION
Chapel Hill Transit operates a fleet of 86 buses ranging in age from four to 19 years old. The national standard average fleet age is seven years. A plan has been developed to bring the existing fleet within the national average and to provide a modest expansion over the next six years.
The Town has received $742,500 for replacement bus purchase. These funds were awarded through the transit capital investment program (49 U.S.C. 5309) and provide capital assistance for new and replacement buses.
Eligible recipients for capital investment funds are public bodies and agencies (transit authorities and other state and local public bodies and agencies thereof) including municipalities. Funds are allocated on a discretionary basis.
Eligible uses of these funds include the acquisition of buses for fleet and service expansion and acquisition of replacement vehicles. Three 1995 buses in the Chapel Hill Transit fleet will be replaced with this purchase.
Transit Capital Investment Program (Section 5309)
The Town of Chapel Hill is currently soliciting bids for the purchase of multi-type vehicles over a five-year period. Replacement buses are included in this project.
The Federal Transit Administration approved a grant totaling $894,578 for the purchase of three replacement buses on July 20, 2006. The federal portion of the grant will provide 83 percent ($742,500). The Town of Chapel Hill will submit an application to the N.C. Public Transportation Division requesting 8 percent ($71,566) in matching funds.
The Town’s matching share for this grant ($80,512) will come from the Transportation Capital Reserve Fund.
That the Council adopt the attached project ordinance.