Each year the City of Billings MET Transit Division (MET) applies for various types of grants with the Transit Planning Division of the State of Montana Department of Transportation (MDT). These grant funds may be available for planning, capital, training, demonstration, or operating assistance. MET was advised by the MDT of the availability of Federal grant funds for capital assistance.  

Under the current Transportation Bill, FAST-ACT, Section 5310 provides funding that has been allocated to the State of Montana's three larger urban systems (Missoula, Great  Falls, and Billings) for capital assistance. This program will be administered by MDT and MET can apply for funding for up to two Paratransit vans. This grant funding will provide 80% of the cost of the vans with a local match contribution of 20%. These vans will be included in the FY 19 MET capital budget and City Equipment Replacement Program (ERP).

Additionally, Section 5339 funding can become available for capital funding to replace, rehabilitate, and purchase buses and related equipment, and to construct bus related facilities. Should capital grant funds become available under the Section 5339 program, MET would like to apply for these funds as well.  The Section 5339 grant funding is also an 80% grant, 20% local share program and will be used for bus or bus equipment replacements.

In order to apply with the MDT for these grants, it is necessary to include with the grant applications a City Council approved Resolution formally authorizing the City of Billings' Director of Aviation and Transit to submit the MDT on-line grant application, the annual certifications and assurances, and any other documents required to secure the grant funding from the MDT, and for the Mayor to execute any subsequent grant agreements with the MDT.
 

City Council may:

• Approve the Resolution for the City of Billings to apply for and execute grant agreements administered by MDT to purchase vehicles or provide other capital assistance; or
• Disapprove the Resolution.

Through the 5310 grants, the MET will be able to replace up to two vans should the funding be available. For two vans the cost would be approximately $128,000 ( 80% ) of Federal share, and $32,000 (20%) of Local share.  The 5339 grant could provide approximately $300,000 of grant funding to be applied towards a Capital project such as bus replacements, at the 80% grant and 20% local share ratio.

Staff recommends that the City Council approve the Resolution authorizing the City of Billings MET Transit to apply to the MDT Transit Planning Division for any Section 5310, 5339 or any other available capital grants and allowing the Mayor to execute any subsequently awarded Grant Agreement(s) provided by the MDT.