CITY OF CHARLOTTESVILLE, VIRGINIA CITY COUNCIL AGENDA Agenda Date: March 7, 2022 Action Required: Approval of Resolution (Appropriation) (1st of 2 Readings) Presenter: Garland Williams, Director of Transit, Charlottesville Area Transit Staff Contacts: Garland Williams, Director of Transit, Charlottesville Area Transit Title: Receipt and Appropriation of Funds from the Virginia Department of Rail and Public Transportation (VDRPT) to Charlottesville Area Transit (CAT) - $980,599 Background This Agenda Item seeks City Council’s approval to accept grant funds in the amount of $980,559 from the Virginia Department of Rail and Public Transportation (VDRPT) and appropriate the grant funding to Charlottesville Area Transit (CAT) budget for the fiscal year beginning July 1, 2021 and ending June 30, 2022. CAT is requesting to earmark $300,000 to complete two studies: (1) an alternative fuel and facility Feasibility Study and (2) an Integration Plan. The remaining $680,559 will be used to supplement CAT operating expenditures in accordance with the terms of the grant award. The grant requires that all funding be expended by June 30, 2022. Discussion Annually VDRPT allocates grant funding to CAT to assist with general operations. This fiscal year, VDRPT has additional grant funding to allocate to all public transportation providers in the Commonwealth, and CAT has received written verification that the City of Charlottesville will be allocated an additional $980,559. CAT will be using the funding to supplement operating expenses as well as to commission an Alternative Fuel and Facility Feasibility Study and Integration Plan Study. Alignment with City Council’s Vision and Strategic Plan Appropriating additional funding to CAT for FY2022 will support City Council’s goal of “A Beautiful and Sustainable Natural and Built Environment” and will focus on (1) providing a variety of transportation and mobility options and (2) being responsible stewards of natural resources. The completion of the two transit studies will chart a path forward for CAT to introduce alternative fuel vehicles (e.g. Battery Electric Buses and/or Compressed Natural Gas Buses) into the fleet. Community Engagement CAT will follow the guidelines of the Federal Transit Administration (FTA) in completing the two studies. City Council and the public will receive two updates before the completion of each study. The public will have the ability to provide comments and suggestions after each update. Budgetary Impact This request seeks City Council’s approval to increase CAT’s FY22 Budget by $980,559. Alternatives City Council may decline to take action on this request, which will return $980,559 to the VDRPT to be redistributed to other transit agencies in the Commonwealth. City Manager/ Staff Recommendation Staff recommends the acceptance of $980,559 in grant funding from VDRPT and recommends the appropriation the purpose of funding two transit focused studies and general CAT operating expenses. Suggested Motion: I move to approve the Resolution appropriating funding in the amount of $980,559 received from the Virginia Department of Rail and Public Transportation, to be expended for Charlottesville Area Transit operations Attachment (1) Proposed Resolution RESOLUTION APPROPRIATING STATE GRANT FUNDING IN THE AMOUNT OF $980,559 RECEIVED FROM THE VIRGINIA DEPARTMENT OF RAIL AND PUBLIC TRANSPORTATION (VDRPT) TO BE EXPENDED FOR CHARLOTTESVILLE AREA TRANSIT (CAT) OPERATIONS WHEREAS the City of Charlottesville has received notice that it has been awarded an additional $980,559 in grant funding from the Virginia Department of Rail and Public Transportation (VDRPT); and City Manager proposes an increase in the budget for the CAT Department, in the amount of $980,559, to allow the expenditure of this grant funding by the end of the current fiscal year, including an Alternative Fuel and Facility Feasibility Study and Integration Plan Study for the remainder of Fiscal Year 2022; and WHEREAS in accordance with the grant, the funds must be expended by June 30, 2022, Charlottesville Area Transit CAT would like to use $300,000 for an Alternative Fuel and Facility Feasibility Study, an Integration Plan Study and $680,559 to supplement operational costs for the remainder of Fiscal Year 2022; and NOW, THEREFORE BE IT RESOLVED by the Council of the City of Charlottesville, Virginia, that grant funding in the amount of $980,559 received from Virginia Department of Rail and Public Transportation (VDRPT) is hereby accepted by the City Council, and is appropriated for expenditure within CAT’s FY2022 budget, as follows: Revenues $980,559 Fund: 245 Cost Center: 2801003000 GL Code: 430080 Expenditures $300,000 Fund: 245 Cost Center: 2801003000 GL Code: 530560 $680,559 Fund: 245 Cost Center: 2801004000 GL Code: 520100