R2011-127 AUTHORIZING AN AGREEMENT FOR FY-2012 TRANSIT OPERATING ASSISTANCE GRANT

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Mass Transit Memorandum No. 072011-1 July 20, 2011 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$5,674,000 for State Fiscal Year 2012. 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 March 16th staff submitted an application to IDOT requesting an operating assistance grant for State fiscal year 2012. The attached agreement would award Decatur an operating assistance grant not to exceed $5,674,000. 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 City Fiscal Year 2011-2012 (Funds 70 and 74), the 65% IDOT reimbursement of eligible operating expenses will be about$3,701,808. The term of this grant agreement is State Fiscal Year 2012: July 1, 2011 through June 30, 2012. 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 2012: July 1, 2011 through June 30, 2012.