TO: Mayor and Members of City Council
THRU: Barbara Hill, Interim Assistant City Manager
FROM: Randy Hume, Transit Director
Tracey Broyles, Budget and Evaluation Director
DATE: November 26, 2018
RE:
Title
Adoption of Capital Project Ordinance Amendment 2019-22 (2016 Transit Capital Grant NC-2016-021) for a Federal Transit Administration Grant Award for the Purchase of 2 Buses
end
COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal 4: Desirable Place to Live, Work and Recreate
Objective D: To develop and maintain public transportation investments with high quality transit and airport services
Executive Summary:
Capital Project Ordinance Amendment (CPOA) 2019-22 will appropriate $260,000 for the purchase of two small buses to replace buses that have exceeded their planned useful lives. The Federal Transit Administration (FTA) will provide 85% funding through a $221,000 grant, with the local match being funded by a $39,000 transfer from the Transit Operating Fund.
Background:
The City of Fayetteville is the Designated Recipient for federal transit grant funds apportioned to the Fayetteville urbanized area. The City and Fayetteville Area System of Transit (FAST) receive an annual formula apportionment from the FTA’s Bus and Bus Facilities grant program. As the annual apportionment from this program for Fayetteville is limited, FAST must accumulate multiple years of apportionments to have sufficient funding to purchase buses. Apportionments are available for obligation by executing a grant contact within three (3) years from the year of apportionment.
As FAST was preparing its grant application, the FTA determined that the grant obligation could be expedited by amending the City’s most recent Bus and Bus Facilities grant (NC-2016-021), as opposed to awarding a new grant. Staff submitted the amendment and FTA approved it on September 13, 2018. The grant amendment provides $260,000 for the purchase of two (2) low-floor light transit vehicles for use on fixed route services, which are in addition to the two (2) full size buses in the original grant award.
The original grant was appropriated on September 12, 2016 by Capital Project Ordinance 2017-13. CPOA 2019-22 will appropriate the $221,000 federal grant funds and $39,000 in local matching funds, which will be transferred from the Transit Operating Fund. Staff has also applied for NCDOT grant matching funds in the amount of $18,200 which could be used to reimburse a portion of the Transit Operating Fund transfer if approved.
Issues/Analysis:
The appropriation of this grant amendment was delayed pending appropriation of designated funding from the FY 2018 budget for use in FY 2019 for the grant match.
Budget Impact:
The local match for this grant was included in the fiscal year 2018 Transit Operating Fund budget, and was re-appropriated by Council at the November 13, 2018 meeting.
Options:
1) Adopt Capital Project Ordinance Amendment 2019-22
2) Do not adopt Capital Project Ordinance Amendment 2019-22 and provide further direction to staff.
Recommended Action:
Staff recommends that Council move to adopt Capital Project Ordinance Amendment 2019-22 as presented.
Attachments:
Capital Project Ordinance Amendment 2019-22
Federal Transit Administration Grant 2016-021 Grant Amendment