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CONTRACT K-2021-57: A PUBLIC TRANSIT REVOLVING FUND AGREEMENT BY BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND THE OKLAHOMA DEPARTMENT OF TRANSPORTATION (ODOT) DISTRIBUTING A MAXIMUM AMOUNT OF FUNDS IN AN AMOUNT NOT-TO-EXCEED $134,285 IN ONE (1) BILLING PAYABLE ON OR AFTER NOVEMBER 1, 2020, SUCH FUNDS TO BE USED FOR ESTABLISHING, EXPANDING, IMPROVING, AND MAINTAINING THE CITY OF NORMAN’S URBAN PUBLIC MASS TRANSPORTATION SERVICES AND BUDGET APPROPRIATION.
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BACKGROUND: The City of Norman has been designated by the Federal Transit Administration (FTA) as eligible to receive federal funds to be used for public transportation services. As a result of this designation by the FTA, the City is also eligible to receive disbursement of funds from the Oklahoma Department of Transportation (ODOT) Public Transit Revolving Fund to be used to establish, expand, improve, and maintain its public transportation system.
DISCUSSION: On May 22, 2019, the Governor of Oklahoma designated the City to be the direct recipient of federal funds to be used for the provision of public transportation services effective upon the date the FTA formally approves the City eligible to receive such federal funds. On June 20, 2019, the FTA formally designated the City to be the direct recipient of such federal public transportation funds.
69 O.S. § 4301 creates in the State of Oklahoma Treasury a revolving fund called the “Public Transit Revolving Fund” for ODOT to be used for the purpose of establishing, expanding, improving, and maintaining rural and urban public transportation services. Eligible entities to apply for disbursement of such funds are defined as those entities receiving federal financial assistance through the FTA’s Block Grant for Urbanized Areas and Formula Grant Program for Areas other than Urbanized Areas under 49 U.S.C. §1607a and §1614, and other public mass transportation programs provided by entities, municipalities, and community action programs which have submitted an audited financial statement showing total reported vehicle revenue mileage for the prior year to ODOT.
The City of Norman is eligible to receive disbursement from this fund due to it being an entity approved to receive federal financial assistance through the FTA Block Grant for Urbanized Areas. Each year, entities must have their previous fiscal year’s vehicle revenue mileage audited to include in their applications to ODOT. However, due to the current pandemic, ODOT allowed agencies to use fiscal year 2019 mileage for the fiscal year 2021 application. As a note, the fiscal year 2018 mileage was from when the University of Oklahoma’s Cleveland Area Rapid Transit program managed the public transportation operations. After reviewing all applications, the City of Norman was approved for a maximum amount of funds in an amount not to exceed One Hundred Thirty-Four Thousand Two Hundred Eighty-Five Dollars ($134,285) to be distributed in fiscal year 2021.
This agreement provides that such maximum disbursement shall be distributed in one billing of the full amount payable on or after November 1, 2020. Under normal circumstances, the total amount would be split evenly throughout the fiscal year using three separate payments. However, due the current pandemic ODOT is allowing agencies to receive the funds in one lump sum payment.
This Agreement further provides that the City of Norman certifies that at least fifty percent (50%) of the funding provided by this agreement shall be spent for services for the elderly and disabled.
The City of Norman will use this distribution to help fund its public transportation system and will use at least fifty percent (50%) of the distributed funds for its paratransit operations, which provide services to the elderly and disabled.
Funds distributed pursuant to this agreement shall be deposited into the Public Transportation and Parking Fund, Other Revenue/State Grant Reimbursements (275-331380) and appropriated for public transportation operations use.
RECOMMENDATION: This agreement provides integral public transportation funding needed to continue, improve, and maintain the City’s public transportation operations. Staff recommends approval of Contract K-2021-57 and appropriation of $134,285 from Other Revenue/State Grant Reimbursement (275-331380) into the Public Transportation and Parking Fund Transportation-Operations (27550277-44766).