R2009-225 AUTHORIZING THE FILING OF AN APPLICATION FOR AN OPERATING ASSISTANCE GRANT

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_ ♦ Mass Transit Memorandum No. 102309-1 October 23, 2009 TO: Honorable Mayor McElroy and City Council Members FROM: Ryan McCrady, City Manager�� Paul McChancy, Mass Transit Administrato�j��f. SUBJECT: FTA Operating Assistance Grant Application SUMMARY Staff recommends that Council approve a Resolution to authorize RECOMMENDATION: the filing of an application for federal operating assistance for the first quarter of FY-2010 in the amount of$218,945. BACKGROUND: Every year the Federal Transit Administration(FTA) apportions grant funds to each metropolitan transit system for operating assistance and for capital projects. Decatur currently has a balance of$218,945 remaining from the FY 2009 apportionment. This amount had been reserved for capital projects,but it was not used due to the large amount of American Recovery and Reinvestment Act (ARRA) funds that the Transit System received. Staff intends to use this balance to offset part of the Transit System's operating deficit for the first quarter of the 2010 state fiscal year: July through September, 2009. Additional federal funds will become ' available in January, when the FTA announces the FY 2010 apportionments. POTENTIAL A public hearing was held to discuss this grant application. No OBJECTION: negative comments were received. There are no known or expected objections to this grant application. INPUT FROM Richard Foiles, General Manager, DPTS OTHERSOURCES: STAFF REFERENCE: Paul McChancy, Mass Transit Administrator BUDGET/TIME The proposed FTA operating assistance grant requires a IMPLICATIONS: 50/50 match. The local match would be made up of farebox revenues and state operating funds already awarded to Decatur. The proposed $218,945 grant would be only 15% of the Transit System's total expenses for the first quarter.