MEMORANDUM
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TO: |
Roger L. Stancil, Town Manager |
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FROM: |
K. Stephen Spade, Transit Director Kenneth C. Pennoyer, Director of Business Management |
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SUBJECT: |
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DATE: |
September 8, 2008 |
Enactment of the attached ordinances would amend a project budget for a transit capital grant which will be used to supplement funding for the purchase two of hybrid electric articulated buses. A second ordinance would be established to create an additional budget for the purchase of the buses. These ordinances would correct an ordinance approved by Council on June 9, 2008. The original ordinance overstated the amount of funds available from the Federal Transit Administration and the corresponding match.
BACKGROUND
Chapel Hill Transit operates a fleet of 98 buses ranging in age from one to thirteen years old. In an attempt to maintain a modern fleet and provide modest expansion, Chapel Hill Transit staff has implemented a plan for bus replacement and expansion. The buses to be purchased are a part of the fleet expansion.
Chapel Hill Transit submitted a request for Congestion Mitigation and Air Quality (CMAQ) funds for inclusion in a FY2006 statewide application to purchase hybrid electric buses. These funds were approved for the purchase of hybrid electric buses and operating assistance to provide transit service to the University of North Carolina’s North Chatham park and ride facility. Under the basic provisions of the CMAQ program, the project must demonstrate that it will help to improve the air quality in the region and these buses improve the air quality by reducing emissions. The Federal Highway Administration administers CMAQ funds and allocates them annually over a three year period. The funds are transferred from the Federal Highway Administration to the Federal Transit Administration each year. The third year allocation transferred to the Federal Transit Administration on May 15, 2008. Of the $469,869 in federal funds, $289,107 will be used to offset the cost of the North Chatham Park and Ride lot service and the balance of $180,762 will be used to supplement the purchase of the two hybrid articulated buses.
Congestion Mitigation Air Quality program funds have also been awarded to Chapel Hill Transit by the Durham-Chapel Hill-Carrboro Metropolitan Planning Organization to purchase buses. The federal funds totaling $1,360,000 will be used for the purchase of the two hybrid electric articulated buses. These funds have been allocated to transit systems to make use of the Metropolitan Planning Organization’s 2008 balance that will lapse in September 2008.
DISCUSSION
Urbanized Area Formula Program - Capital
The federal portion of the third year CMAQ grant will provide $180,762. The local matching share of $45,191 for the capital portion of this grant will come from the Transit Capital Reserve Fund.
The federal portion of the allocation from the MPO for the purchase of buses will provide 80% ($1,360,000). The Town of Chapel Hill will submit an application to the N.C. Public Transportation Division requesting 10% ($170,000) in matching funds. The local matching share for this grant ($170,000) will come from the Transit Capital Reserve Fund.
Below is a summary of awards that will be used to purchase the hybrid electric articulated buses:
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Funding Type |
Funding Agency |
Amount (federal) |
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Congestion Mitigation Air Quality |
N.C. Department of Transportation |
$180,762 |
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Congestion Mitigation Air Quality |
DCHC – MPO |
$1,360,000 |
That the Council enact the attached project ordinances [(2008-09-08/O-2a), (2008-09-08/O-2b)].