The City of Billings is required to provide a local match of 13.42% for Federal CTEP (Community Transportation Enhancement Program) dollars that are used for trail projects. BikeNet, a local advocacy group for trails, has secured donations through its Ales for Trails fundraising event to help develop trails in the Billings community. At its August 18th meeting, the BikeNet Board of Directors voted to provide up to $36,000 to the City of Billings for the local match for the Main Street Underpass project. About $75,400 in local funds from grants and other local sources will be leveraged against $562,800 in CTEP funds to help fund this approximate $1.6 million project. This trail project is part of the city- approved Capital Improvements Program and is currently under construction. The Main Street Underpass provides the connection between Earl Guss Park on the east side of Main Street and the trail link up to the sidewalk on the west side of Main Street. Council approval is needed to accept the BikeNet contribution for the local CTEP match to help cover the construction of the bike/pedestrian underpass. The project is expected to be completed in October 2010.

The City Council may:

• Approve acceptance of the $36,000 donation from BikeNet to provide a portion of the local matching funds to complete the Main Street Pedestrian Underpass project through the CTEP program; or
• Deny acceptance of the $36,000 donation from BikeNet to provide a portion of the local matching funds to complete the Main Street Pedestrian Underpass project through the CTEP program and find another local source of matching funds.

A portion of the Main Street Underpass project has been funded through $562,800 of CTEP funding. The CTEP program requires a local match of 13.42% or $75,528.30. BikeNet has voted to provide the City with up to $36,000 towards that required match to complete the project.

Staff recommends that the City Council approve the donation of up to $36,000 from BikeNet for the required match to leverage $562,800 in CTEP funds for the Main Street Underpass project.