AGENDA #1f

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:       Preliminary Proposal for 2005-2006 Use of Transportation Grants

DATE              March 23, 2005

The purpose of this memorandum is to present a preliminary proposal for use of funds we expect to receive from the Federal Transit Administration (FTA) under the 2005-2006 Capital and Planning program.

SUMMARY

· We have not yet received notification from FTA of the amount of the 2005-2006 formula allocation.  However, we have developed a preliminary budget based on the 2004-2005 allocation of $1,701,142.

· We expect to receive notification of the 2005-2006 grant by October 1, 2005.

· The existing transportation improvement plan includes the annual preventive maintenance allocation, replacement vehicles, associated capital maintenance items and planning funds.

· We expect to receive statewide discretionary, direct allocation funds for additional Capital and Planning projects for 2005-2006 totaling $15,216,000.

BACKGROUND

The Federal Transit Administration (FTA) provides funds for the support of operations and capital purchases for transit agencies.  As part of the Durham Urbanized Area, along with the City of Durham and the Triangle Transit Authority, the Town of Chapel Hill is awarded capital and planning funds and based on an agreed upon distribution among the agencies in the Durham Urbanized area.  The Town of Chapel Hill receives an annual allocation from the FTA.

The Transportation Improvement Program allows transit agencies to plan for projects and budget program amounts that will be needed for each project.

The 2005-2006 project budget includes continued support of the operating budget, funding for the transit portion of the Town Operations Center, funds for replacement buses, and short-range transit planning activities.

DISCUSSION

We have not received notification from the FTA of the amount of the 2005-2006 grant and it is not expected until after the federal fiscal year at October 1, 2005.

Operating Assistance:

The estimated amount of federal operating assistance to be requested for 2005-2006 is about $1,116,000 and State operating assistance is estimated to total $2,500,000.  Combined, these comprise about 29% of the operating cost of the transit system.

Capital Projects:

Approximately $12,817,000 of federal funds would be requested, including $5.7 million for construction of the new transit facility.  State grant funds of up to 10% would be requested to help cover matching costs.

Proposed uses of grants are:

· Construct new transit operations facility.  During 2004-2005 the Town received $6.8 million in federal funds for the new facility.

· Replace twenty 1995 buses.

· Use technology funds for mobile data computers for services to citizens having mobility impairments.

· Purchase associated capital maintenance items, including air conditioning compressors, bus tires and engine/transmission rebuilds.

· Continue efforts to locate land for the 15-501 North park and ride lot project, to include engineering and design work.

We will also pursue funds to purchase additional buses and vans as needed for expansion and seek funding for a multi-modal center as downtown development plans continue for Parking Lots 2 and 5.

Planning Projects:

About $550,000 of federal funds would be requested for short-range transit planning projects.  Proposed uses of grants are:

Transportation Planning:

· To support ongoing operational planning and long-range planning for the Chapel Hill Transit system and general transportation planning for the Town.  These funds will be used to allow the Town to participate in coordination with the Durham-Chapel Hill-Carrboro Metropolitan Planning Organization to support regional transportation planning and the development of the Metropolitan Transportation Improvement Program and 2040 Long Range Transportation Plan.

        Federal:  $327,423

State:    $30,556

Local:   $51,301

Total:  $409,280

Mobility Report Card:

· To allow Chapel Hill and Carrboro to prepare the 2005 update to the Mobility Report Card.  The Mobility Report Card is also used by the Durham-Chapel Hill-Carrboro Metropolitan Planning Organization to meet federal requirements to prepare congestion management assessments on a regular basis.

    Federal:  $100,000

       Local:    $25,000

       Total:   $125,000

Regional Planning Projects:  

· To participate in the funding and management of various regional transportation planning projects as part of the Durham-Chapel Hill-Carrboro Metropolitan Planning Organization.  For the 2005-2006 fiscal year these projects include data collection for the 2040 Regional Transportation Plan, modifications and improvements to the regional transportation model and the development of a collector roads plan for southwest Durham County and eastern Chapel Hill.

           Federal:    $154,117

  Local:      $38,530

   Total:    $192,647

CONCLUSION

Comments and recommendations received tonight will be taken into consideration in developing a recommended final program of projects.