Agenda - 09-17-2013 - 5h - Laserfiche WebLink

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2 guidance, NCDOT is allowing the CMAQ grant to be extended for the portion of the total grant amount previously programmed for FY 2013 ($131,000), the first year the Federal transportation authorization upon which the guidance is based applies. In NCDOT's interpretation of how the new guidance would apply to the Hillsborough Circulator project, once the first $198,000 of funding for the service is exhausted, Orange County will be eligible to begin drawing down the $131,000 amount programmed for FY 2013. However, this amount may only fund 80% of the operating costs incurred from the route on a reimbursement basis, requiring both a 20% local match to leverage this grant award and the County to retain its project-specific account for expending funds until NCDOT provides reimbursement for eligible project costs. The Town of Hillsborough has previously contributed and/or authorized the total amount of local match necessary to sustain the Hillsborough Circulator. Updated projections on the financial status of the route indicate that the Circulator can be maintained with both the grant award amount and the Town of Hillsborough's contribution at least through June 30, 2015, with potential for the project to be extended beyond that date depending on quarterly cost outcomes. Attachment 2 is the existing Supplemental Agreement between NCDOT and the County that will require amendments in order for the County to take advantage of the CMAQ grant extension. NCDOT is in the process of drafting these amendments, and the County has not yet received a draft. However, changes to the agreement will be minor in detail and will only substantively affect the total amount of grant monies and applicable years when those monies will be available to the County. Because the approval of the item is time-sensitive for the continuance of the service with Federal grant funds, staff is suggesting that the BOCC authorize the County Attorney to review and approve the modifications to the agreement when it is received by NCDOT and authorize the County Manager to sign the agreement. The County has also drafted amendments to the existing Memorandum of Agreement (MOA) between the County and Town of Hillsborough that lays out the responsibilities of each party for providing the service and has forwarded the MOA to the Town for review, consideration and approval. County staff anticipates that the Town will approve the MOA at its September 9, 2013 regular meeting, and County staff anticipates that the MOA will be ready for BOCC review, consideration, and approval at the Board's October 1, 2013 regular meeting. In the future, if it is the desire of the Town and the County for the route to be sustained beyond the CMAQ grant authorization's extension, Orange County planning staff can work with the Town's planning staff to identify other grant sources or other sources of local revenue (e.g., Orange County Bus and Rail Investment Plan [OCBRIP] monies) that may be available to support the route after the existing grant award is exhausted. If OCBRIP monies are to be used to support the service, all three (3) parties to the OCBRIP's Interlocal Implementation Agreement must agree to that arrangement. Additionally in the future, operation of the service may be affected by the recommendations of an ongoing Orange Public Transportation-Chapel Hill Transit Consolidation Study. The route's location and existing schedule can be accessed using the following web link: http://orangecountync.gov/planning/documents/Townofhillsboroughandorangecounty.pdf FINANCIAL IMPACT: Based on conservative estimates, projections reveal that the total cost of continuing the operation of the Hillsborough Circulator transit service through the life of the grant authorization extension (November 18, 2015) is $192,519. Orange County will be reimbursed for all eligible costs of operating the route by NCDOT and the Town of Hillsborough. However, the County