The City of Billings MET Transit Division was advised by the Montana Department of Transportation (MDT) - Transit Section, of the availability of a TransADE Operating Assistance grant that can be used to offset operating costs.  The intent of the TransADE funding is to encourage agencies within the community to provide coordinated transit service for elderly and disabled citizens.  The rising costs of transporting para-transit eligible citizens has a significant impact on operating budgets and the State is recognizing that its assistance is vital to continuing this needed service.  The grant of $64,442.00 will be used to pay approximately 5.2% of MET's Para-transit FY 2018 operating costs.

City Council may:

• Approve this Memorandum Agreement with MDT and accept $64,442 of TransADE funding to reimburse a portion of the MET Transit's operating expenses; or
• Disapprove this Memorandum Agreement with MDT for the TransADE funding.

This Memorandum Agreement will allow MET Transit to access $64,442 to pay for operating expenses incurred for transporting elderly and disabled citizens.  This anticipated funding was included in the FY 2018 Revenue budget and will be used to cover approximately 5.2% of the Para-transit operation's budgeted costs.

Staff recommends that the City Council approve and the Mayor execute the attached Operating Assistance Memorandum Agreement with MDT to provide $64,442 of Paratransit operating assistance through the TransADE grant program.