The Aviation and Transit Department, MET Transit Division, is seeking grant assistance from the Montana Department of Transportation (MDT) Transit Section, for paratransit operations.  The deadline for filing applications is March 1, 2011.

The MDT Transit Section has three grant programs, TransADE, Section 5317 New Freedom, and Section 5316 Job Access Reverse Commute (JARC).  MET Transit plans to apply for funding from all three grant programs.  The application requests State funds for paratransit operating assistance in the amount of $265,000.  MET Transit is requesting $50,000 from TransADE, $65,000 from 5317 New Freedom, and $150,000 from 5316 JARC.  All programs must be applied for annually and MET Transit is awarded the grants based on available funds on a year-to-year basis.  The State recognizes the rising costs of transporting elderly and disabled citizens, and the significant impact this has on operating budgets.  The intent of this funding is to encourage all agencies to provide coordinated transit service to elderly and disabled citizens.  In addition, this funding will help supplement operating expenses for paratransit service provided to newly annexed areas of the City, and to serve low income disabled citizens of Billings.  It is anticipated that the outcome from this grant request will be known by May 2011. 

The Council may:

• Approve the filing of the grant application in the amount of $50,000 from TransADE, $65,000 from 5317 New Freedom, and $150,000 from 5316 JARC, for a total amount of $265,000 for paratransit operating assistance; or
• Not approve the filing of the grant application in the amount of $50,000 from TransADE, $65,000 from 5317 New Freedom, and $150,000 from 5316 JARC, for a total amount of $265,000 for paratransit operating assistance.

These grants, if awarded to MET, would provide varying levels of reimbursement for paratransit expenses incurred.  Under the TransADE grant,  MET can be reimbursed $.5411 for every dollar spent on operating costs (driver wages and fuel), $.70 for every administrative dollar spent, and $.80 for every dollar spent on maintenance.  Under the JARC and New Freedom grants, MET can receive $.50 for every dollar spent on these same types of expenses up to the limit of the grants.  Because MET's annual expenditures are significantly larger than the grants, the drawdown against these grants is completed fairly early in the budget year.  The local match for these grants would be the remaining percentage of the incurred expenditures, which is commonly called a soft match.  

Staff recommends that City Council approve the submittal of this grant application and the subsequent execution by the Mayor of the grant agreement(s) with the MDT.