City of Lawrence

Public Transit

 

TO:

Dave Corliss, City Manager

 

FROM:

Cliff Galante, Public Transit Administrator

 

CC:

Debbie Van Saun, Assistant City Manager

 

Date:

April 26, 2007

 

RE:

Agenda Item:

Federal Transit Administration FY 2007 Bus and Bus Facilities Discretionary Program Grant

 

Please place the following item on the City Commission consent agenda for consideration at their May 1, 2007 meeting:

 

Authorize staff to apply for available Federal Transit Administration FY 2007 Bus and Bus Facilities Discretionary Program Grant.

 

Background Information:

 

Recently, the Federal Transit Administration notified grantees nationwide of a total of $438,184,372 in available (49 U.S.C 5309) discretionary funds that were not allocated in FY06 and FY07.  These discretionary funds can only be used only for bus and bus facility projects.   The discretionary funds are intended to provide financial assistance to help transit providers address planned capital improvements beyond what can be provided with existing resources such as Urbanized Area (49 U.S.C. 5307) and Non-urbanized Area (49 U.S.C. 5311) formula resources that are currently available to grantees.  These competitive grants will support cost effective strategic investments in buses and bus facility projects that represent the highest and best use of the available discretionary funding.  There are no minimum or maximum funding limits for applications, however FTA intends to fund as many meritorious projects as possible.  FTA may allocate less than the total amount requested in the application.  The grant submission deadline is May 22, 2007.

 

While funds under the program have a three year period of availability for obligation, FTA intends to award grants for the selected projects before the end of FY07 or in the first quarter of FY2008.  Grants are subject to a 20 percent local match requirement and projects must comply with all the requirements applicable to the Section 5309 Bus and Bus Facility Program.

 

FTA will give special consideration to applications that address the following priority areas that FTA has established for the FY2007 discretionary Bus and Bus Facilities program:

 

•          Fleet replacement needs that cannot be met with formula funds. 

•          Fleet expansion that allows significant service increase and/or improvements and/or operating efficiencies.

•          Facility construction or renovation to support increased service or introduction of clean fuels.

•          Strategic investments in rural areas where formula funding is inadequate.

•          Purchase of clean fuel vehicles.

•          Intermodal terminal projects that include intercity bus providers.

 

In February, the City Commission authorized staff to formally make an earmark request to the Kansas Congressional Delegation to obtain Federal funding to address the transit system’s capital needs.  This funding request totaled $2,320,000 (6 fixed-route vehicles at a unit cost of $320,000 each and $400,000 feasibility study).  Furthermore, the City Commission agreed that the City would provide the federally required local match for any Federal funds received.  The University also agreed to cover half of the local match requirement for any funding received for the feasibility study of joint Bus Maintenance/Administration facility.  Mayor Amyx, at the time, made a formal request to the Kansas Department of Transportation about using available Kansas Turnpike Toll Credits as in-kind local match to cover match requirements as other communities in Kansas have historically done.  A portion of the local match can also be covered by the City utilizing local overmatch on prior Federal Transit capital expenditures that can be applied to this project as well as any available funds in the transit equipment reserve.  The total local match requirement based on the total funding request is $493,253.  Federal funds can cover up to 83% of vehicle replacement costs and up to 80% feasibility study costs.

 

Typically, Federal earmark funds received by communities are a fraction of the funding request made.  For example, the most the City has ever received in a Federal Transit Earmark in any given year is approximately $500,000 even though the funding request was much larger.  As such, staff recommends pursuing the FY07 FTA “Bus and Bus Facility” grant as a way to improve the City’s chances of receiving sufficient federal transit funds to address its current capital needs.

 

Recommendation:

 

Staff recommends the City submitting a grant application by the May 22nd deadline to address transit vehicle replacement needs in the total amount of $2,142,225 based on acquiring seven (7) heavy-duty, low-floor, conventional diesel engine, ADA-accessible fixed-route vehicles at a unit cost of $330,000 and three (3) ADA-accessible paratransit vehicles at a unit cost of $54,075.  The reason for including a seventh fixed-route vehicle in this request is to utilize Federal funds to acquire the vehicle instead of utilizing 100% local funding available in the transit equipment reserve.  The $330,000 cost per fixed-route vehicle is based on recent vehicle pricing staff received ($320,000) as well as including a contingency by factoring PPI fluctuations.  By the time funding becomes available and vehicles are ordered, it is highly likely the acquisition price per vehicle will increase.  Also, if Federal discretionary funds can be used to acquire three (3) paratransit vehicles instead of utilizing 100% state funding, a larger portion of the state funding budgeted for this purpose can be redirected to support transit operations.

 

Included in the grant request should also be funding to complete a feasibility study for a new joint City/University of Kansas Bus Maintenance/Administration facility in the amount of $400,000 that mirrors the City’s FY08 Transit Earmark Request to Congress.  In an effort towards increasing coordination between City and University transit services, the Transit Department and the University of Kansas representatives mutually understand one of the greatest benefits of coordination would be sharing in the cost of designing, constructing, and operating a shared maintenance/administration facility. 

 

 

Action Request:

 

Staff seeks City Commission approval to apply for available Federal Transit Administration FY 2007 Bus and Bus Facilities Discretionary Program Grant funding in the total amount of $2,872,225 for the replacement of seven (7) fixed-route vehicles and three (3) paratransit vehicles that have reached their useful service-life requirements as well as to fund a feasibility study for a City of Lawrence/University of Kansas joint-use Bus Maintenance/Administration facility.  Furthermore, through this approval the City intends to cover the federally required local match requirements to utilize any funding received by using existing equipment reserve funds designated for transit as well as other available local overmatch and in-kind sources such as KTA Toll Credits.