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Katrina-Rita CDBG Grant Program
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DESCRIPTION: Grant Application for disaster related federal funds to purchase revenue vehicles |
AGENDA NO: Click or tap here to enter text. |
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ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
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Authorize the Chief Executive Officer to seek Katrina-Rita Disaster Related Community Development Block Grant (D-CDBG) federal funds in the amount not to exceed $5,000,000 to purchase revenue vehicles to replace vehicles that are beyond their useful life.
Included in this request is giving the CEO authorization to approve a CEA if required.
This grant is 100% federal funds and there is no local match.
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ISSUE/BACKGROUND:
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In 2021 staff made a request to the Louisiana State Office of Community Development (OCD) to be an applicant for the Katrina/Rita Disaster Community Development Block Grant Funds (D-CDBG) program. This request was recently approved.
The request is flexible and scalable to help OCD spend any remaining grant funds within less than one year of any grant award.
When the RTA received final payouts because of Hurricanes Katrina/Rita, from its insurance provider and the Federal Emergency Management Agency (FEMA) it only received 35% of the amount needed to replace the fleet of buses that ran prior to Hurricane Katrina. Prior to Katrina, the RTA had a rolling stock of 372 buses compared to the 123 buses it was able to purchase with FEMA funds in 2008 and 2010. This is due primarily to how replacement value was calculated for equipment by FEMA and the insurance industry. The buses were depreciated based on the age of the vehicles then a value was determined. In 1998, 125 buses were placed into service and were seven years old at the time of the storm.
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DISCUSSION:
As part of the New Links Implementation staff is determining the appropriate size and number of busses required for each route. New Links and the fleet condition assessment of the Transit Asset Management (TAM) will inform the estimate needed for the grant application.
Below is a potential scenario of the number of buses that may be requested.
It is expected that more funds may become available as OCD continues to close out existing grants with eligible grantees.
FINANCIAL IMPACT:
There is no local match for this grant. There is an expectation that maintenance cost will be reduced, by retiring the older vehicles.
NEXT STEPS:
Once the grant is awarded, the actual procurement of the vehicles will require Board approval.
ATTACHMENTS:
1. Resolution
2. Applicant Request
Prepared By: Lona Edwards-Hankins, lhankins@rtaforward.org
Title: Deputy CEO of Planning, Infrastructure, and Information Technology
Reviewed By: Lona Edwards-Hankins, lhankins@rtaforward.org
Title: Deputy CEO of Planning, Infrastructure and Information Technology
Reviewed By: Gizelle Johnson Banks
Title: Chief Financial Officer
2/2/2022
Alex Wiggins Date
Chief Executive Officer