AGENDA #4g

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:       Project Ordinances for 2001-02 Transportation Capital Grants for Buses

DATE:             October 22, 2001

The attached ordinance would establish formal project budgets for transit capital grants for the purchase of twenty-four buses.  Fourteen replacement buses were ordered on March 30, 2001 and are currently being built for the Town of Chapel Hill.  The remaining ten buses are expansion buses and were ordered on July 6, 2001.

BACKGROUND

The Council authorized the staff to apply for these grant funds on May 8, 2000.

Federal Transit Administration Discretionary Program (Section 5309) Funding

These funds were from a 1999 unobligated Section 5309 earmark of federal dollars for North Carolina’s urban transit capital needs.  The Town of Chapel Hill was identified as the recipient of these funds based on the knowledge that buses were scheduled for replacement. These funds will be used to purchase seven of the 1990 buses that will be replaced this year.

Federal Transit Administration Formula Program (Section 5307) Funding

These funds were Federal Highway Administration funds programmed for use by the Town of Chapel Hill and will be used for the purchase of seven replacement buses and ten expansion buses.  The funds were transferred to the Federal Transit Administration’s Section 5307 program for award to the Town of Chapel Hill.

DISCUSSION

Federal Transit Administration Discretionary capital funds will be used to purchase the first seven of the fourteen buses scheduled for replacement.  The grant award for this project is $1,891,566. 

Replacement Buses – Federal funds were awarded for $1,570,000 (83%) and $151,325 in State funds (8%) for the purchase of seven buses.  The Town of Chapel Hill will provide the local match of nine percent ($171,241) that is available in the Transportation Capital Reserve Fund.

Federal Transit Administration Formula Program funds will be used to purchase seven of the fourteen buses scheduled for replacement this year and ten expansion buses scheduled for delivery in March 2002.

Replacement Buses - The Town was awarded $1,603,581 in federal funds (83%) and $154,562 in State funds (8%).  The Town of Chapel Hill will provide the local match of nine percent ($173,882) available from the Transportation Capital Reserve Fund.  The total grant award for this project is $1,932,025.

Federal Transit Administration Formula Program funds will also be used to purchase the ten expansion buses. 

Expansion Buses - The Town of Chapel Hill was awarded $2,324,000 in federal funds (83%) and $224,000 in State funds (8%).  The Town of Chapel Hill and its partners will provide the local match of nine percent ($252,000) from the Transportation Capital Reserve Fund.  The grant award for this project is $2,800,000.

Grant amounts differ between each award because the allocation was based on the cost of a bus at the time of the appropriation.

 

RECOMMENDATION

That the Council adopt the following project ordinance.


AN ORDINANCE TO ADOPT GRANT PROJECT ORDINANCES FOR TRANSIT PROJECTS (2001-10-22/O-4)

BE IT ORDAINED by the Council of the Town of Chapel Hill that, pursuant to Section 13.2 of Chapter 159 of the General Statutes of North Carolina, the following grant project ordinances are hereby adopted:

SECTION I

The Discretionary Program (Section 5309) funds authorized are from 1999 federal funds from an agreement with the Federal Transit Administration and the North Carolina Department of Transportation.

The Federal Transit Administration Formula Program (Section 5307) funds authorized are from

Federal Highway Administration funds transferred to the Federal Transit Administration in 2001.

SECTION II

The Manager of the Town of Chapel Hill is hereby directed to proceed with the implementation of the projects within the terms of the grant agreements executed with the Federal Transit Administration and the North Carolina Department of Transportation within the funds appropriated herein.

SECTION III

The following revenue is anticipated to be available to the Town to complete activities as outlined in the project ordinance.

Discretionary Program (Section 5309) – Seven Replacement Buses

            Federal Transit Administration (FTA)                            $1,570,000

            N.C. Department of Transportation (NCDOT)                  151,325

            Town of Chapel Hill (local match)                                                  170,241

                                                                                    TOTAL            $1,891,566

Federal Transit Administration Formula Program (Section 5307) – Seven Replacement Buses

            Federal Transit Administration (FTA)                            $1,603,581

            N.C. Department of Transportation (NCDOT)                  154,562

            Town of Chapel Hill (local match)                                                  173,882

                                                                                    TOTAL            $1,932,025

Federal Transit Administration Formula Program (Section 5307) – Ten Expansion Buses

Federal Transit Administration (FTA)                            $2,324,000

            N.C. Department of Transportation (NCDOT)                  224,000

            Town of Chapel Hill (local match)                                                  252,000

                                                                                    TOTAL            $2,800,000

SECTION IV

The following amounts are appropriated for the FY2002 projects:

Discretionary Program (Section 5309) – Seven Replacement Buses

Business Meetings/Training                                           $       3,000

Capital Equipment                                                          1,888,566

                                                                                    TOTAL            $1,891,566

Federal Transit Administration Formula Program (Section 5307) – Seven Replacement Buses

Business Meetings/Training                                           $       3,000

Capital Equipment                                                          1,929,025

                                                                                    TOTAL            $1,932,025

Federal Transit Administration Formula Program (Section 5307) – Ten Expansion Buses

Business Meetings/Training                                           $       3,000

Capital Equipment                                                          2,797,000

                                                                                    TOTAL            $2,800,000

SECTION V

The Manager is directed to report annually on the financial status of the project in an informational section to be included in the Annual Report.  He shall also keep the Council informed of any unusual occurrences.

SECTION VI

Copies of this project ordinance shall be entered into the Minutes of the Council and copies shall be filed within 5 days of adoption with the Manager, Finance Director and Town Clerk.

This the 22nd day of October, 2001.