Fiscal Note
This resolution amends the 2015 adopted Capital Improvement Plan (CIP) to shift funds for a Metro Transit satellite bus storage and maintenance facility as part of an effort to secure a federal TIGER grant to support construction of this facility. The 2015 adopted CIP includes a total of $35 million allocated in years 2018 through 2020 for this facility. This allocation assumes that the federal government pays 80% of the cost, which had been the funding split of capital costs for transit-related infrastructure. Insufficient revenues in the federal Highway Trust Fund have raised concerns that this level of federal cost-sharing might no longer be possible. The federal TIGER grant program provides opportunities for states and local governments to secure federal support for transit infrastructure projects through a competitive process. Proposals have a greater chance of success with local contributions of at least 30% or more. This resolution amends the 2015 adopted CIP to move up the $35 million to 2016 to 2018 consistent with the timeframe for this round of TIGER grant awards and increases the City general obligation borrowing support from $7 million to $17.5 million, or 50% of the estimated project costs.
If this level of borrowing is actually implemented, annual debt service will increase by $1.4 million compared to the adopted CIP. This level of annual debt service is anticipated to be fully realized in 2019.
Title
Amending the 2015 adopted Capital Improvement Plan to provide matching funds for the City's 2015 TIGER grant application and authorizing the Mayor and Clerk to enter into a contract with USDOT to receive and expend the TIGER funds if awarded.
Body
WHEREAS, Metro Transit's current bus facility on East Washington Ave. is designed for 160 buses but currently houses 214 40-foot buses and 17 smaller paratransit vehicles; and
WHEREAS, Metro is unable to add any peak-hour service because of garage capacity constraints;
WHEREAS, in 2014 the Council approved a contract RNL Design to design a satellite bus facility located at the Nakoosa Trail site. RNL has designed a 56 bus garage, which would house 36 60-foot articulated buses and 20 40-foot buses or 70 40-foot buses;
WHEREAS, the 2015 Adopted Capital Improvement Plan includes a total of $35 million ($7 million of City general obligation debt and $28 million of federal funds) for a satellite bus facility. This amount is scheduled in 2018 through 2020;
WHEREAS, the USDOT is expected to release its 2015 TIGER grant application in early April, with a due date approximately 4 weeks later;
WHEREAS, TIGER guidelines require firm commitment of at least a 20% cash match, and to be competitive, the applicant must show 30% - 50% match. A 50% match will improve our chances of receiving a TIGER grant; and,
WHEREAS, a bus expansion facility meets many of the TIGER rating criteria, including: 1) Safety - the tight limitations in our garage cause more damage to buses and higher risks to employees working in the facility; 2) State of good repair - the East Washington facility has been fully depreciated, has obsolete facility equipment, and has exceeded its useful life; 3) Environmental protection - a new facility with alternative fuel vehicles will reduce emissions, and building HVAC will be more efficient; and, 4) Economic competitiveness - regional service expansions are currently at a limit, and serving core and periphery economic engines, such as the UW-Madison and Epic, requires additional buses, and a garage expansion.
NOW, THEREFORE, BE IT RESEOLVED, that the Madison Common Council amends the 2015 Adopted CIP to modify the Metro Transit capital budget to shift amounts currently programmed in 2018 - 2020 to 2016 -2018 and to increase general obligation borrowing from $7 million to $17.5 million and to reduce other funds from $28 million to $17.5 million; and
BE IT FINALLY RESOLVED, that the Council authorizes the Mayor and Clerk to enter into an agreement with USDOT to receive and expend the TIGER funds should they be awarded.