R2013-78 AUTHORIZING EXECUTION AND AMENDMENT OF FY-2014 TRANSIT OPERATING ASSISTANCE GRANT AGREEMENT

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Mass Transit Memorandum No. 070813-1 July 8,2013 TO: Honorable Mayor McElroy and City Council Members FROM: Ryan McCrady, City Manager Paul McChancy, Mass Transit Administrator SUBJECT: Grant Agreement for IDOT Mass Transit Operating Assistance SUMMARY Staff recommends that Council adopt a Resolution to execute an RECOMMENDATION: agreement with the Illinois Department of Transportation for mass transit operating assistance in the maximum amount of$6,865,500 for State Fiscal Year 2014. BACKGROUND: Each year the Illinois Department of Transportation (IDOT) provides grant assistance to offset up to 65% of the operating costs of the Decatur Public Transit System. On April 19th staff submitted an application to IDOT requesting an operating assistance grant for State fiscal year 2014. The attached agreement would award Decatur an operating assistance grant not to exceed $6,865,500. The amount of state funds actually received will be based on the amount of transit operating expenses incurred. Based on the Transit System's budget for the current City Fiscal Year, the 65% IDOT reimburse- ment of eligible operating expenses will be about $4,000,000. As recommended by IDOT, the Resolution also grants the Mayor authority to execute amendments to the Agreement, if necessary. The term of this grant agreement is State Fiscal Year 2014: July 1, 2013 through June 30, 2014. POTENTIAL No known objection to this grant agreement. OBJECTION: INPUT FROM Division of Public and Intermodal Transportation, OTHER SOURCES: Illinois Department of Transportation STAFF REFERENCE: Paul McChancy, Mass Transit Administrator BUDGET/TIME This grant will reimburse Decatur for 65%of its actual eligible IMPLICATIONS: transit operating expenses. The remaining 35%will be paid through an operating grant from the Federal Transit Administration, fares and other revenues generated by the Transit System, and local funds. The term of this grant agreement is State Fiscal Year 2014: July 1, 2013 through June 30, 2014.