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File #: 64017    Version: 1 Name: 5339b Discretionary Grant Application and 2021 Capital Budget Amendment
Type: Resolution Status: Passed
File created: 2/2/2021 In control: Metro Transit
On agenda: 2/23/2021 Final action: 2/23/2021
Enactment date: 3/3/2021 Enactment #: RES-21-00155
Title: Authorizing the Transit General Manager to file an application for a Section 5339 Buses and Bus Facilities Discretionary Grant with U.S. Department of Transportation and authorizing the Mayor and the City Clerk to execute the associated grant agreement with USDOT and the 13 (c) agreement with Teamsters Local No. 695. Amending the 2021 Capital Budget to add $7 million in federal funding to Metro’s Satellite Bus Facility project and changing project borrowing to General Fund-supported general obligation borrowing.
Sponsors: Samba Baldeh, Grant Foster, Syed Abbas, Nasra Wehelie
Fiscal Note
The 2020 Adopted Capital Budget appropriated $12,893,000 in Metro supported general obligation borrowing to purchase land for Metro’s Satellite Bus Facility project. Metro’s 2020 Adopted Capital Improvement Plan also included amounts for construction in 2021. In the 2021 Adopted Capital Budget, construction funding for the satellite facility was transferred to the Bus Rapid Transit (BRT) project within the Transportation Department. As such, the Satellite Bus Facility project was not shown in Metro’s 2021 Capital Budget.

The proposed resolution authorizes the application and execution of a grant agreement for $7 million in funds from the U.S. Department of Transportation to purchase real estate for Metro’s satellite bus facility. The resolution amends the 2021 Capital Budget to add $7 million in federal funding to the Satellite Bus Facility project within Metro Transit. Construction funding transferred to BRT in the 2021 Capital Budget will remain within BRT.

Under state law, the operating subsidy provided to Metro from the City’s General Fund is considered within the limits under the state’s Expenditure Restraint Program (ERP). The operating subsidy also includes amounts provided to Metro to pay its debt service on newly issued general obligation debt. As Metro’s capital program has expanded for major projects (e.g., renovation of the bus maintenance and storage facility, acquisition and development of a satellite facility), Metro debt service has increased commensurately. This increase has placed more pressure on the city qualifying for ERP and the associated $7 million in state aid. In the 2020 and 2021 budgets, this issue was addressed through allocation of the city’s reoffering premium from debt issuance toward payment of Metro debt service. The efficacy of this approach is limited going forward as Metro’s capital budget and debt issuance continues to expand. Another option to address the ERP issue is to fund Metro’s capital budget from G...

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