Consent 1.I.
Regular City Council Meeting
- Meeting Date:
- 02/11/2013
- TITLE
- Submittal and Acceptance of Grant Application to the Montana Department of Transportation (MDT) for Operating and Capital Assistance
- PRESENTED BY:
- Thomas H. Binford
- Department:
- Transit
Presentation:
Information
PROBLEM/ISSUE STATEMENT
The City of Billings MET Transit Division was advised by the Montana Department of Transportation (MDT) - Transit Section of the availability of Federal grants for operating and capital assistance applied for through the State of Montana. The MDT Transit Section has three grant programs, Section 5310, Section 5311, and Section 5339. Met Transit plans to apply for funding from all three grant programs.
Under the new Transportation Bill, MAP-21, Section 5310 is funding that has been allocated to the State's three larger urban systems (Missoula, Great Falls, and Billings) for capital assistance. This program will be administered by the State and MET Transit will receive funding for one paratransit van. This funding would provide $65,600 (80%) for the cost of the van. The local match would be $16,400 (20%). The van will be included in the FY14 Transit capital budget.
Section 5311 are funds that are left over from the old SAFETEA-LU Transportation Bill and is a one time award. The State awarded these funds to offset the changes being implemented to the TransADE program. MET Transit will receive $390,000, and is intending to utilize this grant for assistance with operating costs. This grant is funded on a 50% Federal, 50% Local basis.
Section 5339 is a new grant created by the MAP-21 Transportation Bill and replaces Section 5309 Discretionary grants received in the past for capital assistance. MET Transit will receive $195,000 in both FY13 and FY14, and plans to purchase a paratransit van and a 31-foot bus. This grant is funded on a 80% Federal, 20% Local basis.
In order to apply for these grants, it is necessary to include with this Grant Application, a Resolution formally authorizing the Mayor to execute the Grant Agreement with the MDT.
Under the new Transportation Bill, MAP-21, Section 5310 is funding that has been allocated to the State's three larger urban systems (Missoula, Great Falls, and Billings) for capital assistance. This program will be administered by the State and MET Transit will receive funding for one paratransit van. This funding would provide $65,600 (80%) for the cost of the van. The local match would be $16,400 (20%). The van will be included in the FY14 Transit capital budget.
Section 5311 are funds that are left over from the old SAFETEA-LU Transportation Bill and is a one time award. The State awarded these funds to offset the changes being implemented to the TransADE program. MET Transit will receive $390,000, and is intending to utilize this grant for assistance with operating costs. This grant is funded on a 50% Federal, 50% Local basis.
Section 5339 is a new grant created by the MAP-21 Transportation Bill and replaces Section 5309 Discretionary grants received in the past for capital assistance. MET Transit will receive $195,000 in both FY13 and FY14, and plans to purchase a paratransit van and a 31-foot bus. This grant is funded on a 80% Federal, 20% Local basis.
In order to apply for these grants, it is necessary to include with this Grant Application, a Resolution formally authorizing the Mayor to execute the Grant Agreement with the MDT.
ALTERNATIVES ANALYZED
The City Council may:
- Approve MET Transit applying for the three grant programs, Section 5310, Section 5311, and Section 5339, for a total amount of $650,600 to go toward operating assistance and the purchase of vehicles; or
- Not approve MET Transit applying for the three grant programs, Section 5310, Section 5311, and Section 5339, for a total amount of $650,600 to go toward operating assistance and the purchase of vehicles.
FINANCIAL IMPACT
Through these grants, the City's Transit Division could receive $390,000 of revenue to offset operating costs, and up to $260,600 of the cost for new paratransit vans and a smaller bus during FY13.
RECOMMENDATION
Staff recommends that the City Council approve MET Transit applying to the MDT - Transit Section for Sections 5310, 5311, and 5339 grants, and the execution by the Mayor of any subsequently awarded Grant Agreement(s) provided by the MDT.