HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 06/15/2021 - SECOND READING OF ORDINANCE NO. 073, 2021, MAKINGItem # 14 Page 1
AGENDA ITEM SUMMARY
Agenda Item 14
June 15, 2021
City Council
STAFF
Drew Brooks, Director of Transit
Claire Havelda, Legal
SUBJECT
Second Reading of Ordinance No. 073, 2021, Making Supplemental Appropriations of American Rescue Plan
(ARP) Act and Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) Funding.
EXECUTIVE SUMMARY
This Ordinance, adopted on First Reading on June 1, 2021 by a vote of 5-1 (Nay: Ohlson), appropriates grant
revenue allocated to Transfort by the Federal Transit Agency (FTA). Transfort was awarded $1,509,248 and
will net the amount of $1,284,514 in Section 5307 and 5310 CRRSAA Funding. Additionally, Transfort was
awarded $8,964,773 and will net the amount of $7,626,773 in ARP Section 5307 and 5310 Funding through
FTA apportionments to urbanized areas. Both CRRSAA and ARP funding is provided at a 100-percent federal
share, with no local match required, and is available to support capital, operating, and other expenses to
prepare for and respond to COVID-19. Transfort plans to use these funds to pay for what has been previously
allocated from the General Fund for operating assistance, preventative maintenance, capital projects,
contracted service costs, and enhancing mobility for seniors and those with disabilities.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1.First Reading Agenda Item Summary, June 1, 2021 (w/o attachments)(PDF)
2.Powerpoint Presentation (PDF)
3.Ordinance No. 073, 2021 (PDF)
Agenda Item 3
Item # 3 Page 1
AGENDA ITEM SUMMARY June 1, 2021
City Council
STAFF
Drew Brooks, Director of Transit
Claire Havelda, Legal
SUBJECT
First Reading of Ordinance No. 073, 2021, Making Supplemental Appropriations of American Rescue Plan
(ARP) Act and Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) Funding.
EXECUTIVE SUMMARY
The purpose of this item is to appropriate grant revenue allocated to Transfort by the Federal Transit Agency
(FTA). Transfort was awarded $1,509,248 and will net the amount of $1,284,514 in Section 5307 and 5310
CRRSAA Funding. Additionally, Transfort was awarded $8,964,773 and will net the amount of $7,626,773 in
ARP Section 5307 and 5310 Funding through FTA apportionments to urbanized areas. Both CRRSAA and ARP
funding is provided at a 100-percent federal share, with no local match required, and is available to support
capital, operating, and other expenses to prepare for and respond to COVID-19. Transfort plans to use these
funds to pay for what has been previously allocated from the General Fund for operating assistance, preventative
maintenance, capital projects, contracted service costs, and enhancing mobility for seniors and those with
disabilities.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
BACKGROUND / DISCUSSION
On December 27, 2020, President Trump signed the CRRSAA into law. The CRRSAA provided emergency
appropriations to support Executive Branch agency operations during the COVID-19 pandemic. The FTA
allocated $14 billion to recipients of urbanized area and rural area formula funds, with $13.27 billion allocated to
large and small urban areas.
CRRSAA funding was disbursed through FTA apportionments to its Urbanized Area (Section 5307 and 5310)
Formula program. Transfort’s apportionment of Section 5307 funding is $1,477,651, and Section 5310 funding
is $31,597. Because Transfort is the designated, or primary, recipient for the geographical Transportation
Management Area (TMA), Transfort is responsible for allocating dedicated funds to smaller transit agencies and
metropolitan planning organizations in the TMA. After Transfort distributes the appropriate allocations to
Berthoud Area Transportation System (BATS) in the amount of $26,063 in 5307 funds and $557 in 5310 funds,
and the North Front Range Metropolitan Planning Organization (NFRMPO) in the amount of $193,966 Section
5307 funds and $4,148 in 5310 funds, Transfort will receive $1,257,622 in 5307 funds and $26,892 in 5310
funds.
On March 22, 2021, President Biden signed the American Rescue Plan Act of 2021 (ARP) into law. The ARP
included $30.5 billion in federal funding to support the nation’s public transportation systems as they continue to
respond to the COVID-19 pandemic.
ATTACHMENT 1
Agenda Item 3
Item # 3 Page 2
ARP funding was disbursed through FTA apportionments to its Urbanized Area (Section 5307 and 5310) Formula
program. Transfort’s apportionment of Section 5307 funding is $8,933,175, and Section 5310 funding is $31,598.
After Transfort distributes the appropriate allocations to BATS in the amount of $157,934 in 5307 funds and $557
in 5310 funds, and the NFRMPO in the amount of $1,175,361 Section 5307 funds and $4,148 in 5310 funds,
Transfort will receive $7,599,880 in 5307 funds and $26,893 in 5310 funds.
Through existing FTA-approved agreements with BATS and NFRMPO, the City retains 38% of BATS’ and
NFRMPO’s funding allocation to exchange their respective federal share with local funds. This exchange relieves
BAT and NFRMPO from federal compliance responsibilities.
Operating expenses incurred beginning on January 20, 2020 for all rural and urban recipients are eligible,
including operating expenses to maintain transit services as well as paying for administrative leave for transit
personnel due to reduced operations during an emergency.
Transfort seeks to repay portions of its prior 2021 budget allocation with these FTA funds, less a portion reserved
to provide local match for upcoming grants. These FTA funds will repay previously appropriated Transfort costs
as described below.
1. Transfort will use the Section 5307 funds to continue provision of fixed route service. The Fort Collins area
has seen significant impacts from COVID-19 and has taken measures to ensure social distancing and mask
compliance when providing public transportation. Additionally, CRRSAA and ARP Section 5307 funds will
be used for preventative maintenance activities and capital projects for rolling stock, facilities, and IT
equipment. Regular, scheduled, preventative maintenance will continue to allow Transfort to realize the
benefits of a safe, reliable, and well-maintained fleet in support of its services.
2. Section 5307 CRRSAA and ARP funds will also be used to fund Transfort’s complimentary ADA paratransit
service, Dial A Ride, which is provided by a contractor, satisfying ADA requirements of providing paratransit
services for eligible clients. As a result of the COVID-19 pandemic, Transfort temporarily reduced service
effective April 18, 2020. To ensure that citizens can still access essential services, Transfort began offering
a taxi service option, performed by a contractor, allowing riders to schedule a trip from a bus stop along a
suspended route, to or from another linked bus stop or transit center. CARES funds will also be used to
provide this contracted Demand Response Service.
3. Section 5310 CRRSAA and ARP funds will be used for programs that improve mobility for seniors and
individuals with disabilities, including the Dial A Taxi program that provides additional, more flexible service
for Dial A Ride passenger. Section 5310 funding can also be used towards capital projects that will improve
mobility for seniors and individuals with disabilities.
During the 2021 budget, sufficient appropriations were provided to cover Transfort operating costs, which
can now be partially re-funded with ARP and CRRSAA funds. Transfort is requesting an appropriation of
$1.2M of these funds to be used as a source of local funds grant matches for additional opportunities that
may arise throughout the fiscal year. Transfort frequently applies for discretionary, or competitive, grants
throughout the year that require a committed local match and has received feedback from the FTA that some
discretionary grant applications are not considered as competitive as other applications due to the
appropriation process post award. Article V, Section 10 of the City Charter authorizes the City Council, upon
recommendation of the City Manager, to transfer unexpended and unencumbered appropriated amount or
portions of one fund or capital project to another fund or capital project when appropriate. The City Manager
finds it appropriate and recommends the transfer of $1,200,000 from the Transfort operating budget (in the
Transit Services Fund) to the new established Transfort budget (also in the Transit Services Fund) to be
used specifically as local matching funds for grants that Transfort.
Transfort recognizes that public transit is an essential service and that many transit-dependent members of the
community rely on public transit to get to and from work, buy groceries and other essentials, and receive medical
care or care for loved ones. Transfort has seen a significant drop in ridership and revenue during the COVID-19
pandemic. The CRRSAA and ARP funding received will greatly benefit the safety, quality, and levels of service
that Transfort is able to provide during this time.
Agenda Item 3
Item # 3 Page 3
CITY FINANCIAL IMPACTS
The following is a summary of the project funding using CRRSAA and ARP funds. These funds are provided at
a 100-percent federal share and no local match is required.
Funds Provided by FTA
FY21 CRRSAA 5307 Funds $ 1,477,651.00
FY21 CRRSAA 5310 Funds $ 31,597.00
FY21 ARP 5307 Funds $ 8,933,175.00
FY21 ARP 5310 Funds $ 31,598.00
Total Funding Provided $ 10,474,021.00
Less local dollars pass through to NFRMPO $ (1,377,623.00)
Less local dollars pass through to BATS $ (185,111.00)
Net City Financial Impact $ 8,911,287.00
Though total grant revenues are anticipated at $8.9M, Transfort is only requesting $1.2M of supplemental
appropriations. During the 2021 budget, sufficient appropriations were provided to cover operating costs. This
supplemental appropriation will cover the operating costs, while previously appropriated local funds will be used
as a source of grant matches for additional opportunities that may arise throughout the year. Appropriations of
these funds are necessary due to City Code Article V, Part I, Section 4.
Note that the funding provided by the FTA takes the place of General Fund and Transportation Fund monies
that would have been the basis for Transit spending during the fiscal year.
Update: Transfort –ARP & CRRSAA Funding Appropriations
June 15th, 2021
ATTACHMENT 2
FTA G rant Sources
Coronavirus Response and Relief
Supplemental Appropriations Act American Rescue Plan
2
“…provide immediate relief for American workers, help communities that are struggling
in the wake of COVID-19, and ensure that our transportation system keeps running.”
FTA F unding Apportionments
3
Funds Provided by FTA •
FY21 CRRSAA 5307 Funds $1,477,651.00
FY21 CRRSAA 5310 Funds $31,597.00
FY21 ARP 5307 Funds $8,933,175.00
FY21 ARP 5310 Funds $31,598.00
To tal Funding Provided $10,474,021.00
Less local dollars pass through to North Front Range
Metropolitan Planning Organization (NFRMPO)$(1,377,623.00)
Less local dollars pass through to Berthoud Area Tr ansit
System (BATS)$(185,111 .00)
Net Transfort Financial Impact $8,911,287.00
Funding Distribution
5307 Urbanized Area Formula Program:
•Eligible activities:
•Tr ansit capital and maintenance
projects
•Operating assistance
•Tr ansportation related planning
4
Funding Distribution
5310: Formula Program for Seniors &
Individuals with Disabilities:
•Eligible activities include:
•Improved mobility for seniors and
individuals with disabilities .
•Tr aditional capital investment
•Nontraditional investment beyond
the Americans with Disabilities
Act (ADA) complementary
paratransit services
5
Next Steps & Recommendation
•FTA m andate to appropriate funds and program grants by Sept. 30th
•Staff will present the program of projects to the Council Finance
Committee at the July 7th, 2021 meeting, and to the Tr ansportation
Board on July 21st
•Staff recommends adoption of the ordinance to appropriate funds
6
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ORDINANCE NO. 073, 2021
OF THE COUNCIL OF THE CITY OF FORT COLLINS
MAKING SUPPLEMENTAL APPROPRIATIONS OF AMERICAN RESCUE
PLAN (ARP) ACT AND CORONAVIRUS RESPONSE AND RELIEF SUPPLEMENTAL
APPROPRIATIONS ACT (CRRSA) FUNDING
WHEREAS, the City’s Transportation Department received federal funding from the
American Rescue Plan Act of 2021 (“ARP”) and 2021 Corona Virus Response and Relief
Supplemental Appropriations Act (“CRRSAA”) for Transfort operation assistance, preventative
maintenance, contracted services costs, and mobility for seniors and individuals with disabilities
related to preparation for and response to the COVID-19 pandemic; and
WHEREAS, the City’s Transfort Department is also the designated recipient of these funds
for the geographical Transportation Management Area (“TMA”), and thus, is responsible for
allocating dedicated funds to smaller transit agencies and metropolitan planning organizations in
the TMA; including the Berthoud Area Transportation System (“BATS”) and the North Front
Range Metropolitan Planning Organization (“NFRMPO”); and
WHEREAS, the City’s Transfort Department received total Federal Transit Authority
(“FTA”) grant revenue in the following amounts:
• $1,509,248 in CRRSAA Section 5307 & 5310 funding;
• $8,964,773 in ARP Section 5307 and 5310 funding; and
WHEREAS, through existing FTA-approved agreements with BATS and NFRMPO, the
City retains 38% of BATS’ and NFRMPO’s funding allocation to exchange their federal share
with local funds; and
WHEREAS, as the TMA manager, the City’s Transfort Department is obliged to pass along
the remaining 62% of the grant funding through allocations as follows:
• $1,377,623 to NFRMPO;
• $185,111 to BATS; and
WHEREAS, the City’s net grant revenue is:
• $1,284,514 in CRRSAA Section 5207 & 5310 funding;
• $7,626,773 in ARP Section 5307 and 5310 funding; and
WHEREAS, the City Council recognizes that its Transfort Department has been
competitively disadvantaged when seeking grant funding due primarily to not having funds
appropriated for local match at the time grant applications are submitted; and
WHEREAS, City Council finds it appropriate to allow $1.2M of the net $8,911,287 FTA
funding to be designated as local funds to be used as a source of Transfort grant matches for
additional opportunities that may arise throughout the fiscal year; and
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WHEREAS, Council finds it appropriate to allocate the remainder of the net CRRSAA and
ARP funds to repay a portion of the funds previously budgeted and appropriated in the 2021
Transfort budget for:
• continuation of fixed route services, including preventative maintenance activities;
• capital projects for rolling stock;
• facilities;
• IT equipment;
• Contracted services costs;
• to support Transfort’s ADA paratransit services;
• programs that improve mobility for seniors and individuals with disabilities;
WHEREAS, these appropriations benefit the public health, safety and welfare of the
residents of Fort Collins and serves the public purpose of supporting the essential transportation
services that many transit-dependent members of the community rely on to get to and from work,
buy groceries and other essentials, to receive medical care, and to care for family or friends; and
WHEREAS, Article V, Section 9, of the City Charter permits the City Council, upon
recommendation of the City Manager, to make supplemental appropriations by ordinance at any
time during the fiscal year, provided that the total amount of such supplemental appropriations, in
combination with all previous appropriations for that fiscal year, does not exceed the current
estimate of actual and anticipated revenues and all other funds to be received during the fiscal year;
and
WHEREAS, the City Manager has recommended the appropriation described herein and
determined that this appropriation is available and previously unappropriated from the Transit
Services Fund and will not cause the total amount appropriated in the Transit Services Fund to
exceed the current estimate of actual and anticipated revenues and all other funds to be received
in that fund during this fiscal year; and
WHEREAS, Article V, Section 10 of the City Charter authorizes the City Council, upon
recommendation by the City Manager, to transfer by ordinance any unexpended and
unencumbered appropriated amount or portion thereof from one fund or capital project to another
fund or capital project, provided that the purpose for which the transferred funds are to be expended
remains unchanged, the purpose for which the funds were initially appropriated no longer exists,
or the proposed transfer is from a fund or capital project in which the amount appropriated exceeds
the amount needed to accomplish the purpose specified in the appropriation ordinance; and
WHEREAS, the City Manager has recommended the transfer of $1,200,000 from the
Transfort operating budget in the Transit Services Fund to a newly established Transfort budget,
also in the Transit Services Fund, to be used specifically as local match funding for grants that
Transfort will apply for in the future, and has determined that the proposed transfer is from a
budget in which the amount appropriated exceeds the amount needed to accomplish the purpose
specified in the appropriation ordinance.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT
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COLLINS as follows:
Section 1. That the City Council hereby makes and adopts the determinations and
findings contained in the recitals set forth above.
Section 2. That there is hereby appropriated from unanticipated grant revenue in the
Transit Services Fund the sum of TEN MILLION FOUR HUNDRED SEVENTY-FOUR
THOUSAND TWENTY-ONE DOLLARS ($10,474,021) for expenditure from the Transit
Services Fund for operating assistance, preventative maintenance, contracted service costs,
mobility for seniors and individuals with disabilities related to preparation for and response to the
COVID-19 pandemic ($8,911,287), grant match local funding ($1,200,000) and to cover pass
through money due to NFRMPO ($1,377,623) and BATS ($185,111).
Section 3. That the unexpended and unencumbered appropriated amount of ONE
MILLION TWO HUNDRED THOUSAND DOLLARS ($1,200,000) is hereby authorized for
transfer from the Transfort operating budget to a newly established Transfort budget to be used
specifically as local match funding for grants that Transfort will apply for in the future and
appropriated therein.
Introduced, considered favorably on first reading, and ordered published this 1st day of
June, A.D. 2021, and to be presented for final passage on the 15th day of June, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk
Passed and adopted on final reading on the 15th day of June, A.D. 2021.
__________________________________
Mayor
ATTEST:
_______________________________
City Clerk