AGENDA #4h

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 Transportation Capital and Planning Grant
DATE:	June 9, 2008

Enactment of the attached ordinance would establish a project budget for a 2007-2008 transit capital and planning grant in the amount of $633,142 and would provide the local match of $115,625 from the Transit Capital Reserve Fund.

BACKGROUND

On May 7, 2007 the Council authorized the filing of applications for federal and State transit grants for capital and planning funds as part of the 2007-2008 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 among the recipients in the urbanized area, and the distribution letter was received by the Federal Transit Administration in March, 2008.  An application was submitted on May 5, 2008.

The grant includes $506,514 in federal funds.  We will request $11,003 in State matching funds from the N.C. Public Transportation Division for eligible capital and planning project costs.

The Town of Chapel Hill will provide a local match of $115,625 that is available in the Transit Department’s Capital Reserve Fund.

DISCUSSION

Urbanized Area Formula Program (Section 5307) - Capital

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

• Continue the on-going lease obligation for a park-ride facility at Carrboro Plaza
• Purchase software for demand response scheduling and dispatching,
• Purchase and repair bus shelters,
• To purchase bus tires, and
• Funds could also be used to purchase real estate to increase parking at the TOC.

Federal guidelines allow recipients of Section 5307 funds to spend a minimum of 1% annually for transit projects that would enhance mass transit service or use and also 1% 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 provide security at the Transit Department’s new facility and also for lighting fixture repairs as needed at Town owned park and ride lots.

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 monthly reporting of federally funded projects, re-certification of EZ Rider patrons, evaluation of compliance with the Americans with Disabilities Act, development of schedules and schedule run-cuts, annual reporting to the National Transit Database, development of the Transit Capital Improvements Program, review of the annual Transportation Improvement Plan and Unified Planning Work Program.

RECOMMENDATION

That the Council enact the attached project ordinance.