The City of Billings MET Transit Division was advised by the Montana Department of Transportation (MDT) - Transit Section of the availability of a Federal grant for capital assistance available through the State of Montana. 

Under the current 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 two paratransit vans.  This funding would provide $134,300 (85%) of the cost of the vans.  The local match will be $23,700 (15%).  The vans will be included in the FY15 Transit capital budget.

In order to apply for this grant, a Resolution formally authorizing the Mayor to execute the Grant Agreement with MDT is required to be included with the grant application. 

The City Council may:

• Approve the Resolution authorizing MET Transit to apply for the Section 5310 grant program in the amount of $134,300 to go toward the purchase of vehicles; or
• Not approve the Resolution authorizing MET Transit to apply for the Section 5310 grant program in the amount of $134,300 to go toward the purchase of vehicles and direct staff on how to proceed.

Through this grant, the City's Transit Division could receive $134,300 of the cost for new paratransit vans during FY15.

Staff recommends that the City Council approve the Resolution authorizing MET Transit to apply with MDT-Transit Section for the Section 5310 grant, and the execution by the Mayor of any subsequently awarded Grant Agreement(s) provided by MDT.