TO: Mayor and Members of City Council
THRU: Telly C. Whitfield, PhD, Assistant City Manager
FROM: Randy Hume, Transit Director
Kelly Olivera, Budget and Evaluation Director
DATE: June 27, 2022
RE:
Title
Adoption of a Resolution to Approve Submission of a Grant Application to the North Carolina Department of Transportation (NCDOT) for Urban Capital Matching Funds
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 4: Desirable Place to Live, Work and Recreate
Objective 4.1: Maintain public transportation investments with high quality transit and airport services
Executive Summary:
Council is asked to adopt a Public Transportation Program Resolution for a competitive grant application to the North Carolina Department of Transportation (NCDOT) for $318,000 of Urban Capital Matching Funds to match approved FTA grants for bus purchases.
Federal Transit Administration (FTA) awarded grant NC-2021-023-00 to the City for numerous capital, planning and operating projects. City Council appropriated the capital portion of this grant with Capital Project Ordinance (CPO) 2021-24 in June 2021 which included local matching funds comprised of $459,725 of City funding and $255,500 of grant funds from the North Carolina Department of Environmental Quality (NCDEQ) from the Volkswagen (VW) emissions settlement.
The Integrated Mobility Division of NCDOT has announced a “call for projects” for state capital matching funds. Bus replacement projects are eligible for NCDOT funding under this program. The proposed application will seek NCDOT funding for: $114,000 to match the FTA grant for battery-electric buses (15% of total cost less the VW settlement funding); and $204,000 or 10% of the total cost for the diesel buses in the grant.
The attached resolution is required as part of the application process and authorizes staff to submit applications to NCDOT for consideration for funding. Applications must be submitted no later than October 8, 2022.
Background:
The North Carolina Department of Transportation (NCDOT) has established a program to assist cities and urban transit systems throughout the state with funding of certain capital projects. The Urban State Match Program now may provide up to 10% of the local share toward matching FTA capital grants, however NCDOT has increased its maximum share toward electric bus projects to 20% of the grant total.
Since NCDOT’s last call for projects, Transit received grant NC-2021-023-00 from FTA for replacement buses. The grant included 85% federal funding for two (2) battery electric buses and related charging infrastructure and four (4) clean diesel buses. At the time of grant award, the City appropriated CPO 2021-24 the full 15% local match but anticipated an opportunity to apply for NCDOT match when the next call for projects was issued. The City’s portion of the match was reduced a $255,000 grant award by NCDEQ from VW Settlement funds.
The proposed application will seek 15% or the entire local portion for the electric buses and infrastructure less the NCDEQ VW funds and 10% of the cost of the diesel buses. If the proposed application is approved by NCDOT, City funding for these projects would be reduced and returned to the Transit Operating Fund.
The resolution authorizes staff to submit the applications to NCDOT. The actual grant agreements and corresponding Capital Project Ordinance Amendments will be presented to City Council for approval if the application is approved for funding.
Issues/Analysis:
None
Budget Impact:
There is no budget impact as the full local match had already been appropriated when the FTA grant was accepted and project funds appropriated. The City’s local share of these projects could be reduced and funds transferred back to the Transit Operating Fund for other purposes if State funds are awarded.
Options:
Adopt the Public Transportation Resolution as presented and authorize staff to submit applications to NCDOT; or
Reject the Public Transportation Resolution and do not move forward with application submission and provide further directions to staff
Recommended Action:
Adopt the Public Transportation Resolution as presented and authorize staff to submit applications to NCDOT
Attachments:
Resolution Authorizing the Application
NCDOT Funding Request