STATEMENT OF ISSUE
StarMetro requests approval to submit a grant application to the Federal Transit Administration (FTA) for the 2009 Transit Stimulus funding, approval to execute the Transit Stimulus funding grant, and approval to purchase buses and related equipment with the funding provided by this grant. This is a time sensitive process, as a purchase order is needed by March 31, 2009, in order to meet the deadline for honoring manufacturing slots with Gillig Bus Corporation and to meet the Federal Stimulus Bill requirements obligating these funds within the timeframe dictated by FTA. StarMetro’s stimulus funding in the amount of $3,453,321 will be available in its entirety upon publication of the March 2009 Federal Register. The aforementioned bus procurement is contingent upon the release of these funds.

RECOMMENDED ACTION
Option 1 – Approve proposal to submit and execute this grant. Upon receipt of the grant, order up to nine (9) buses and related equipment at a cost of approximately $3,453,321 to be funded with the Stimulus funding for Transit.

FISCAL IMPACT
There would be no fiscal impact to the City as this purchase would be funded 100% with federal Stimulus funds. The Office of Budget and Policy has reviewed this item, and it is in compliance with City guidelines.

Ronald Garrison, Executive Director, StarMetro

Anita Favors Thompson, City Manager

For information, please contact: Ralph Wilder, Superintendent of Maintenance, ext. 5217.

SUPPLEMENTAL MATERIAL/ISSUE ANALYSIS
HISTORY/FACTS & ISSUES
For StarMetro, the purchase of replacement buses is a high priority. StarMetro has a fleet of seventy-three (73) buses providing service. Twenty-nine (29) of these buses have been in operation since 1994 or 1996 and have logged over 500,000 miles each. The manufacturer no longer supplies parts for these buses, thereby increasing the cost of maintenance and the difficulty of acquiring parts in the near and long-term future. StarMetro lacks sufficient funding to immediately acquire all twenty-nine (29) buses. Using the available Stimulus funding, StarMetro seeks to replace up to nine (9) of the remaining out-dated buses and related equipment. Gillig Bus Corporation was selected by the Florida Consortium through a competitive process in compliance with FTA regulations. The approximate cost is $375,640 per bus.

CHARITABLE CONTRIBUTIONS
The funding is expected to come from the Federal Transit Administration; therefore, charitable contributions are not applicable.

OPTIONS

1. Approve proposal to submit and execute this grant. Upon receipt of the grant, order up to nine (9) buses and related equipment at a cost of approximately $3,453,321 to be funded with the Stimulus funding for Transit.

Pros: Cost savings on fuel expenditures, part acquisitions, preventative maintenance, savings by purchasing at today’s price verses a substantial increase in 2010 of at least $15,000 per bus, improved StarMetro image and improved customer satisfaction with newer/more reliable/more comfortable/better looking buses. The newer buses would produce substantially lower emissions.

Cons: Obligating limited future 5307 funds for bus purchases.

2. Do not approve and provide alternative direction to staff.

Pros: Stimulus funding would be transferred to other transit agencies.

Cons: Pros identified above, under option 1, would not be achieved, and many, if not all the current 1994 and 1996 buses would be taken out of service as availability of parts decreases.

ATTACHMENTS/REFERENCES
None