Title
AMENDMENT NO. ONE TO CONTRACT K-1415-6: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND CLEVELAND AREA RAPID TRANSIT (CART) AS AGREED UPON UNDER THE 40TH YEAR COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM INCREASING THE CONTRACT AMOUNT BY $6,000 FOR A REVISED CONTRACT AMOUNT OF $31,000 TO PROVIDE BUS PASSES FOR LOW AND MODERATE INCOME CITIZENS THROUGH THE REMAINDER OF FYE 2015.
Body
BACKGROUND: Contract K-1415-6 with CART was approved by City Council on July 8, 2014 for $25,000 for bus passes funded by the Community Development Block Grant (CDBG) Program. Contract No. K-1415-5 with CART was also approved by City Council on July 8, 2014 and provided funding for regular route and paratransit service in the amount of $510,500 from the General Fund. Included in the General Fund budget was $10,500 for bus passes to be utilized if needed after expenditure of the CDBG funds. Also available in FYE 2015 was a $6,690 carry-over of FYE 2014 General Fund designated for bus passes that has been utilized.
Bus passes are made available to low-income Norman residents who qualify on the basis of their income and residency. Students at the University of Oklahoma do not utilize bus passes because required enrollment fees provide them with free bus service.
DISCUSSION: With the rate increase enacted in the spring of 2014 and an increase in demand for bus passes it is estimated that the $25,000 CDBG budget, the $10,500 General Fund budget as well as the $6,690 of carry-over funds will be fully expended before the end of FYE 2015 on June 30, 2015. CART notified City Staff of the situation and inquired if an additional $6,000 of CDBG funding could be made available for May and June 2015.
After reviewing the amount of funding contracted for public services in the current CDBG Program, it was determined that CDBG could fund the $6,000 request and not exceed the 15% statutory cap on the CDBG Program for public services. The funding request was forwarded to the CDBG Policy Committee and was unanimously approved at the February 11, 2015 meeting.
Amendment No. 1 to the CDBG contract K-1415-6 has been prepared and is forwarded for Council action. No other changes in service or funding are being made. Funds are available in CDBG Transportation (account number 021-4085-463.47-79).
An additional request has been made by CART to increase the FYE 2016 funding for both the CDBG and General Fund allocations for bus passes to address this shortfall in the future.
RECOMMENDATION: Staff recommends approval of Amendment No. 1 to Contract K-1415-6 increasing the contract amount by $6,000.