TO: Mayor and Members of City Council
THRU: Jay Reinstein, Assistant City Manager
FROM: Tracey Broyles, Budget and Evaluation Director
Randy Hume, Transit Director
DATE: October 9, 2017
RE:
Title
Adoption of a Resolution Authorizing the City Manager to Execute Grant Agreement 18-90-X614 STI with the North Carolina Department of Transportation (NCDOT) and Adoption of Capital Project Ordinance Amendment (CPOA) 2018-24 to Appropriate $29,400 in Grant Funding to Assist with the Purchase of an Expansion Bus
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:
On September 12, 2016, City Council approved Capital Project Ordinance 2017-13 appropriating $840,000 for the purchase of two 35 foot buses, funded by a Federal Transit Administration (FTA) grant of $714,000 (85%) and a $126,000 transfer from the Transit Operating Fund (15%). The North Carolina Department of Transportation (NCDOT) has now committed a $29,400 grant to match 7% of the cost of one bus.
Staff recommends that Council adopt a required resolution authorizing the City Manager to execute necessary grant agreements and also adopt Capital Project Ordinance Amendment (CPOA) 2018-24 to appropriate the NCDOT grant funds and allow for the return of $29,400 back to the Transit Operating Fund.
Background:
The Fayetteville Area System of Transit (FAST) continues to enhance bus services, and recent service expansions, as well as planned future enhancements, require additional buses to accommodate service demands and provide spare buses to facilitate reliable service.
On September 12, 2016, City Council adopted Capital Project Ordinance 2017-13 to appropriate $840,000 for the purchase of two 35 foot buses. A Federal Transit Administration (FTA) grant provided 85% funding through a $714,000 grant. The NCDOT had agreed to provide $29,400 for a 7% match for the purchase of one bus under the Strategic Transportation Investment program, also known as SPOT 3.0; however, notice of the grant award had not been received when the Federal grant was appropriated. As such, the full 15% local match was funded by a $126,000 transfer from the Transit Operating Fund.
The City has now received a grant agreement from the NCDOT for a $29,400 grant to provide a 7% match for the purchase of one of the expansion buses.
Issues/Analysis:
Two buses will be purchased. One bus will be funded 85% FTA/7% NCDOT/8% Local. The second bus will be funded 85% FTA/15% Local.
Budget Impact:
Receipt of the NCDOT grant funds will allow for $29,400 to be returned to the Transit Operating Fund.
Options:
1) Adopt the resolution to authorize the City Manager to execute NCDOT grant agreements and adopt CPOA 2018-24
2) Do not adopt the resolution or CPOA 2018-24 and provide further direction to staff.
Recommended Action:
Staff recommends that Council move to adopt the resolution authorizing the City Manager to execute the grant agreement with the NCDOT for project 18-90-X614 STI, and adopt Capital Project Ordinance Amendment 2018-24 as presented.
Attachments:
Resolution Authorizing the City Manager to Execute NCDOT Grant Agreement 18-90-X614 STI
Capital Project Ordinance Amendment 2018-24