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

Under the current Federal Transportation Bill, FAST-ACT, Section 5310 provides funding allocated to the State of Montana's three larger urban systems (Missoula, Great Falls, and Billings) for capital assistance. This program is administered by the MDT through which MET regularly applies for Section 5310 funding for the purchase of Paratransit vans and other related projects.  Grant funding normally provides for a minimum of 80% of the cost of the capital with a local match contribution of 20%.  These vans and projects will be included in the MET capital budget and City Equipment Replacement Program (ERP).

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

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

City Council may:

• Approve the Resolution for the City of Billings to apply for and execute grant agreements administered by MDT and/or FTA to purchase vehicles or provide other capital assistance; or
• Disapprove the Resolution and advise staff on how to proceed.

With 5310 grants, the MET will be able to replace Paratransit vans should the funding be available.  For each van, the cost would be approximately $70,000.  Federal share (80%) would be approximately $56,000, local share (20%) would be approximately $14,000. Any 5339 grant could provide funding for buses and bus facilities.  A new bus is approximately $378,000, with 80% ($302,400) paid with Federal funds and 20% ($75,600) in local share match.

Staff recommends that the City Council approve the Resolution authorizing the City of Billings MET Transit to apply for any Section 5310, 5339, or any other available capital grants, and allow the Mayor to execute any subsequently awarded FTA grant agreement(s) for the City of Billings MET Transit.

Recommended Motion: I move for the approval and adoption of a Resolution authorizing the MET Transit to apply for any Section 5310, 5339 or other capital grants and allow the Mayor to execute any awarded grant agreement(s).