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CL- 2134 New Business   Item #:   A.    
City Council Regular Meeting
Meeting Date: 07/02/2019  
Subject:    FY2020 Federal and State Transit Funding
From: Marc Adelman

Business Meeting:     07/02/2019
The City of Danville makes application annually to the Virginia Department of Rail and Public Transportation for federal and state operating and capital assistance.  State operating and capital funding levels can vary annually and are approved in June by the Commonwealth Transportation Board.  All operating expenses are eligible for federal operating aid except depreciation and interest charges.  The Federal Transit Administration will provide financial assistance up to fifty percent of the transit system's operating deficit and provides up to eighty percent of the total cost of capital projects.  For small urban and rural transit systems in Virginia, the Virginia Department of Rail and Public Transportation maintains the authority to allocate federal funding for operating and capital assistance.
For Fiscal Year 2020, the Virginia Department of Rail and Public Transportation identified that a total of $1,213,756 will be allocated in federal operating assistance and $487,325 will be provided in state operating aid.  In addition, the state has approved $25,000 through the state's Senior Transportation Assistance Program for Danville's coordinated senior transportation service with the Southern Area Agency on Aging.  The total state operating funding level for Fiscal Year 2020 is $86,409 more than the state operating allocation provided during Fiscal Year 2019.

The state has also approved matching funds for capital projects that will provide financing to purchase five replacement buses and to complete additional improvements to the propane refueling station located at 522 Spring Street.  Specific improvements include the addition of a second dispensing unit so two buses can fuel simultaneously, a canopy and connectivity to Danville's fuel management system.  The total estimated cost for all capital projects is $780,417 and the Virginia Department of Rail and Public Transportation has approved $624,332 in federal capital assistance and $124,868 in state capital aid.  Therefore, the anticipated local match requirement is $31,217 for all capital items.  The Transportation Advisory Committee has approved these grant requests and recommends approval by City Council.
It is recommended that City Council adopt the attached Resolution authorizing an application to the Virginia Department of Rail and Public Transportation for Mass Transit funding for Fiscal Year 2020.


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