AGENDA #4h

MEMORANDUM

TO:	Roger L. Stancil, Town Manager
FROM:	K. Stephen Spade, Transportation Director
SUBJECT:	Authorization to Apply for Federal and State Grants for Public Transportation
DATE:	May 7, 2007

The attached resolution would authorize grant applications for federal and State transportation operating assistance, capital and planning funds for 2007-08.

BACKGROUND

The Town has applied for and received federal and State transportation grants since 1974. These funds have been used for capital, operating, and planning programs for the public transit system.

The Town of Carrboro and the University of North Carolina also provide financial support for transit services through annual service contracts with the Town.

The service contracts provide the foundation for cooperation, describe the role of each partner, pledge continued support for transit services, set the level of service each year, and assign proportional costs to each jurisdiction.

DISCUSSION

Federal Assistance/State Assistance

Based on prior year allocations we estimate the federal assistance available for 2007-2008 to offset maintenance costs will be about $1,115,000.

The Town of Chapel Hill, the City of Durham, and the Triangle Transit Authority annually re-negotiate the allocation formula used to distribute the federal funds received by the urban area based on passenger miles, ridership and population.  The current formula uses the demographic statistics for each city to calculate the appropriation for this operating funding.

We also expect to receive State funds totaling about $3,475,000 from the State Maintenance Assistance Program used to offset the cost of operations.

Planning Funds

Federal Transit Administration urbanized area formula program planning funds (Section 5307) may be used for activities including:

• evaluation of E-Z Rider services;
• monitoring, evaluation and annual assessment of current services;
• preparation of quarterly and annual reporting documents to the State and federal governments;
• preparation of annual update and amendments to the Metropolitan Transportation Improvement Program; and
• developing a transportation capital improvements program.

Of the total Section 5307 planning project expenses of $110,030 the Federal Transit Administration would provide 80 percent ($88,024), and the State would provide 10 percent ($11,003).  The local matching share of 10 percent ($11,003) is budgeted in the Transportation Department’s Capital Reserve Fund.

Federal Transit Administration planning program funds (Section 5303) would be used for activities including:

• developing the annual Planning Work Program;
• identifying strengths and weaknesses of service to assess problems and options; and
• refining Town regional transit models.

Of the total Section 5303 planning project expenses of $113,501 the federal government would provide 80 percent ($90,801) and the State would provide 10 percent ($11,350).  The local matching share of 10 percent ($11,350) is budgeted in the Transportation Department’s Capital Reserve Fund.

Capital Funds

• Federal funds have been requested to purchase replacement buses. If funds are received they will be used to purchase four replacement 40-foot diesel buses and two additional articulated (60-foot) buses.  Based on recent awards to the Gillig Corporation and North American Bus Industries, the cost is estimated to be $2,740,000.  If funded, the federal government would provide 83 percent ($2,274,200), the State would provide eight percent ($219,200) and the local matching share of nine percent ($246,600) has been budgeted in the Transportation Department’s Capital Reserve Fund.
• The second year of Section 5309 funds will be received for land acquisition and design of a park/ride lot in the 15-501 north corridor.  This amount will be combined with the amount received in FY 2006 to begin the search for a park/ride lot site.  Federal funds provided for this project will total 80 percent ($586,500) the State will provide 10 percent ($73,300), and the local matching share of 10 percent ($73,300) is budgeted in the Transportation’s Department’s Capital Reserve Fund.
• The annual Section 5307 urbanized area formula allocation will include capital funds that would be used to purchase major spare parts for the bus fleet such as rebuilt engines and transmissions, air conditioning compressors and bus tires.  Funds will also be used to continue the lease of the Carrboro Plaza park/ride lot and replacement of support and demand response vehicles.  Based on prior years funding levels, available funds for these projects are estimated to be $850,000.  The federal government will provide 80 percent ($680,000). The State will only provide a match to revenue vehicle purchases if funds are available for the project. If the State does not participate in the project, the Town would be required to provide the entire local match at 20 percent ($170,000).  The local match is budgeted in the Transportation Department’s Capital Reserve Fund.

The total amount of grant funds to be requested for capital projects in FY 2007-2008 is about $3,833,200.

RECOMMENDATION

That the Council adopt the attached resolution authorizing the Manager to apply for and execute contracts for transportation grants.