Memorandum

City of Lawrence

Public Transit

TO:	Dave Corliss, City Manager
FROM:	Cliff Galante, Public Transit Administrator
CC:	Debbie Van Saun, Assistant City Manager
Date:	March 28, 2007
RE:	Agenda Item: Utilize Available “Bus and Bus Facility” Federal Transit Earmarks for Fixed-Route Bus Replacement

Please place the following item on the City Commission consent agenda for consideration at their April 3, 2007 meeting:

Authorize staff to utilize all existing “Bus and Bus Facility” Federal Appropriations received by the City for vehicle replacement of fixed-route fleet.

Background Information:

The City of Lawrence currently has three (3) Federal transportation discretionary appropriations (earmarks) totaling $1,280,550 that it received in the past to address transit system’s capital needs.

FY04 – FHWA Section 115 Earmark totaling $400,000 “Bus & Bus Facilities” (100% federally funded, no local match)

FY05 – FTA Section 5309 Earmark totaling $388,711 “Bus Maintenance Facility” (requires 20% local match)      

FY05 – FTA Section 5309 Earmark received through KDOT totaling $491,839 “Bus & Bus Facilities” (requires 20% local match)

In order to utilize these available funds, the City must identify a specific project, the cost, and the year it will be completed.  This information must be listed in the Lawrence/Douglas County Metropolitan Planning Organization’s Transportation Improvement Program.  Both of the FY05 earmarks are subject to lapsing September 30, 2007 so it is imperative that a specific project be identified, and available grant funds be obligated to avoid losing available capital funding.

The City Commission has the option to use these available funds to address bus facility needs or bus replacement/acquisition needs. 

If the City Commission decides to use the available transit funds for bus replacement, the action taken to include this project in the TIP does not authorize staff to move forward with any procurement for vehicles and staff would still be required to obtain City Commission authorization before proceeding. 

Recommendation:

Staff believes that vehicle replacement should be the Transit Department’s top capital priority at this time.  Furthermore, staff recommends that the City Commission utilize the available grant funds to address the Transit System’s fixed-route bus replacement needs since the entire fleet will be reaching it’s useful service life per manufacturer specifications and Federal requirements in FY2008 (calendar year). 

Action Request:

Staff seeks City Commission approval to work with the Lawrence/Douglas County MPO in revising the region’s Transportation Improvement Program to obligate available Federal transit earmarks in the total amount of $1,280,550 to acquire fixed-route transit vehicles.