title
FY27 Section 5339 (Bus and Bus Facilities) Grant Application Submission
end
|
DESCRIPTION: Authorization to submit an application for FTA Section 5339 grant funds to replace aging bus engines and transmissions in RTA’s fixed-route fleet. |
AGENDA NO: Click or tap here to enter text. |
|
ACTION REQUEST: ☒ Approval ☐ Review Comment ☐ Information Only ☐ Other |
RECOMMENDATION:
recommendation
Authorize the Interim Chief Executive Officer to apply for federal funds not to exceed $2,210,000 under the FY2027 FTA Section 5339 (Bus and Bus Facilities) grant for the replacement of aging engines and transmissions in fixed-route buses.The total project cost is $2,600,000, with a required local match not to exceed $390,000 (15%).
end
ISSUE/BACKGROUND:
body
RTA’s fixed-route fleet includes vehicles that are due for engine and transmission replacements in 2027 and beyond. Without the necessary overhauls of these components, the RTA fleet will face increased maintenance costs, reliability challenges, and reduced fuel efficiency. To address these issues, RTA is focused on the replacement of engines and transmissions for its fixed-route buses that are due for this major service. This investment will significantly improve vehicle performance, reduce downtime, and extend useful life, thereby aligning with FTA’s intent for State of Good Repair and Bus and Bus Facilities funding. This application aligns with RTA’s Strategic Mobility Plan (Major Action Area 8), which prioritizes modernization of rolling stock, operational efficiency, and environmental sustainability.
The FTA Section 5339 (Bus and Bus Facilities) program, administered through the Louisiana Department of Transportation and Development (LADOTD), provides capital assistance to transit systems for bus and facility investments that maintain and improve public transportation service across the state. The application is due to LADOTD by November 5, 2026. Staff is requesting that the Board authorize RTA to apply for these funds and commit the local match of $390,000. RTA proposes to replace or rebuild engine and transmission assemblies on approximately 20 buses to improve fleet reliability and extend the service life of existing transit assets. The per bus cost of this work is approximately $130,000, yielding a total project cost of $2,600,000.
end
DISCUSSION:
RTA’s FY2027 Section 5339 application has two components: funding for the aforementioned engine and transmission replacements for twenty buses and limited funding for cost escalation/contingency.
This project will:
• Improve system reliability and service quality for riders.
• Reduce unplanned maintenance costs and service disruptions.
• Maintain the fleet in a state of good repair and extend overall fleet longevity.
A detailed project budget is included as an Attachment.
Notification of this funding opportunity was provided by LADOTD on August 31, 2026, and applications materials are due to LADOTD on November 5, 2026.
FINANCIAL IMPACT:
|
Proposed project cost |
$2,600,000 |
|
Federal request at 85% |
$2,210,000 |
|
Local share at 15% |
$390,000 |
|
Engine and transmission assemblies |
20 buses (planning estimate: $130,000 per bus) |
The total project cost is estimated at $2,600,000, with federal funding of $2,210,000 (85%) and a local match not to exceed $390,000 (15%). The local share will be funded through RTA’s FY2027-2028 capital budgets and is included in the 2026-2030 5-Year Capital Investment Program (CIP).
NEXT STEPS:
RTA will submit the grant application to LADOTD on or before the November 5, 2026 deadline. Once RTA receives notice of an award, RTA will work to obligate the funds as quickly as possible and commence procurement of replacement engines and transmissions for its fixed route fleet.
ATTACHMENTS:
1. Resolution FY27 Section 5339 (Bus and Bus Facilities) Grant Application
2. Proposed budget
Prepared By: Rafe Rabalais
Title: Director of Capital Projects
Reviewed By: Ryan Moser
Title: Chief Asset Management Officer
Reviewed By: Gizelle Banks
Title: Chief Financial Officer
10/14/2026
Ronald Baptiste Jr. Date
Interim Chief Executive Officer