The City of Billings, MET Transit Division receives Federal grant operating assistance through the State of Montana, Section 5317 New Freedom program. This program was established to help supplement operating expenses for paratransit service that MET provides above and beyond Federally regulated ADA service, including providing transportation to newly annexed areas of the City.  On June 22, 2009, City Council accepted this Grant for the amount of $120,002.  The City of Billings, MET Transit Division was notified by the Montana Department of Transportation, Transit Division (MDT) in December 2009 that additional funds in the amount of $40,000 were available.  The accepted additional funds were reflected in Amendment One, which brought the Contract to $160,002.  The original Contract was for the period July 1, 2009 through June 30, 2010.  In July 2010, MDT advised MET Transit that they were extending the Contract through March 31, 2011, so that MET Transit and MDT could finish spending the remaining balance of the New Freedom Urban Grant, resulting in the approval of Amendment Two.  Recently, MET Transit was advised of the availability of additional New Freedom funds for FY 2010.  Should  Amendment Three to the Contract be accepted by the City, the Contract amount would increase from $160,002 to $258,380, and would provide the MET grant authority for an additional $98,378 of operating expense reimbursement (like/kind local contribution) on a 50% grant, 50% local basis.  Sufficient eligible operating expenses will be expended from the FY 11 budget to meet the required match amount. 

The City Council may:

• Approve the Contract as amended in the amount of $258,380; or
• Not approve the Contract as amended in the amount of $258,380.

This Contract will allow the MET to access an additional $98,378 in grant revenue to offset FY 11 paratransit operating expenses incurred providing service above and beyond the Federally regulated ADA service.

Staff recommends that the City Council approve and the Mayor execute the attached Amendment Three Contract with the MDT for paratransit operating assistance funded through the Federal Transit Administration New Freedom program.