CITY COUNCIL COMMUNICATION

Date:

04-15-02

 

 

SUBJECT:  FINAL READING OF ORDINANCE 2002-O-086

AUTHORIZING THE CITY MANAGER TO ACCEPT AND EXECUTE THE VEHICLE CAPITAL REPLACEMENT (VCR) GRANT VCR 0201 (22) CONTRACT NO. 51222F6007 WITH THE TEXAS DEPARTMENT OF TRANSPORTATION IN THE TOTAL DOLLAR AMOUNT OF $773,126.00; CONSISTING OF FEDERAL FUNDS OF $773,126.00 AND PROVIDING A SOFT MATCH OF 193,282 STATE TOLL CREDITS AND AMENDING THE FY 2001-2002 BUDGET BY APPROPRIATING ALL GRANT FUNDS IN THE TOTAL AMOUNT OF $773,126.00; AND PROVIDING FOR GRANT/CONTRACT FUNDS TO BE DEPOSITED IN THE CITY OF LAREDO TRANSIT FUND ACCOUNT.

INITIATED BY:

Larry Dovalina, City Manager

STAFF SOURCE:

Jose A. Guerra, Interim General Manager

 

PREVIOUS BOARD ACTION:

None

 

BACKGROUND: 

This grant will be used toward the purchase of 2 vehicles.  The expected delivery date will be 12 months from placement of the order.

 

Toll Credits were created in the Transportation Equity Act for the 21st Century (TEA-21) and are to be used as a credit toward the non-Federal matching share of programs authorized by Title 23 (except for the emergency relief program) and for transit programs authorized by Chapter 53 of Title 49.  The State of Texas earned these credits for expenditures for improvments paid for entirely without federal funds.

 

 

 

 

 

FINANCIAL: 

 

 

Prior to expenditure grant funds must be appropriated into this years fiscal budget.

 

The federal government has allowed the State and Local Governments to use toll credits to be part of the 20% local matching funds in regards to transit grants; and acknowledging that vehicles purchased will be depreciated at the higher value of 80% federal funds and 20% toll credits.

 

 

 

 

 

 

LMI BOARD OF DIRECTORS:

Approved at the LMI Board of Directors meeting on April 10, 2002.

STAFF RECOMMENDATION:

Staff recommends approval of this resolution.

 

ORDINANCE NO.  2002-O-086

 

AUTHORIZING THE CITY MANAGER TO ACCEPT AND EXECUTE THE VEHICLE CAPITAL REPLACEMENT (VCR) GRANT VCR 0201 (22) CONTRACT NO. 51222F6007 WITH THE TEXAS DEPARTMENT OF TRANSPORTATION IN THE TOTAL DOLLAR AMOUNT OF $773,126.00; CONSISTING OF FEDERAL FUNDS OF $773,126.00 AND PROVIDING A SOFT MATCH OF 193,282 STATE TOLL CREDITS; UNDERSTANDING THAT THE FEDERAL GOVERNMENT HAS ALLOWED THE STATE AND LOCAL GOVERNMENTS TO USE TOLL CREDITS TO BE PART OF THE 20% LOCAL MATCHING FUNDS IN REGARDS TO TRANSIT GRANTS; AND ACKNOWLEDGING THAT VEHICLES PURCHASED WILL BE DEPRECIATED AT THE HIGHER VALUE OF 80% FEDERAL FUNDS AND 20% TOLL CREDITS; AMENDING THE FY 2001-2002 BUDGET BY APPROPRIATING ALL GRANT FUNDS IN THE TOTAL AMOUNT OF $773,126.00; AND PROVIDING FOR GRANT/CONTRACT FUNDS TO BE DEPOSITED IN THE CITY OF LAREDO TRANSIT FUND ACCOUNT.

 

 

WHEREAS, 49 U.S.C. 5309 (m)(1)(c), authorizes the U.S. Secretary of Transportation to make grants to state governments to assist in financing capital projects that will benefit the country’s transit systems; and,

 

WHEREAS, the Governor of the State of Texas has designated the Texas Department of Transportation to receive federal funds under the Section 5309 program; and,

 

WHEREAS, Transportation code, Chapter 455, authorizes the State to assist the Subrecipient in procuring aid for the purpose of establishing and maintaining public and mass trasnportation projects and to administer funds appropriated for public transportation under Transportation Code, Chapter 456; and,

 

WHEREAS, the Subrecipient submitted an application under Section 5309 for federal financial assistance to be used to finance capital projects to benefit Texas’s transit systems; and,

 

WHEREAS, the U.S. Secretary of Transportation approved the State’s requests; and.

 

WHEREAS, the State of Texas, acting through the Texas Department of Transportation entered into this Grant Agreement No 51222F6007 [State Project No. VCR 0201 (22)] with the City of Laredo for the maximum amount payable under this grant agreement without modification is $773,126.00 and toll credits in the amount of 193,282.

 

NOW THEREFORE, BE IT RESOLVED BY CITY COUNCIL OF THE CITY OF LAREDO THAT:

 

Section 1.  The period of the Grant Agreement No. 51222F6007 State Project No. VCR 0201 is to April 30, 2003; and,

 

Section 2.  The maximum amount payable under this grant agreement without modification is $773,126.00 and toll credits in the amount of 193,282; and,

 

Section 3.  The City Manager is authorized to execute all necessary documentation in relation to this grant.

 

 

PASSED BY THE CITY COUNCIL AND APPROVED BY THE MAYOR ON THIS THE _________ DAY OF _________, 2002.

 

 

 

_________________________                     

ELIZABETH G. FLORES

MAYOR

 

ATTEST:

 

 

_________________________                     

GUSTAVO GUEVARA, JR.

CITY SECRETARY

 

 

APPROVED AS TO FORM:

 

 

BY  ______________________

         JAIME L. FLORES

         CITY ATTORNEY