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2011-27580 Reso RESOLUTION NO. 2011 -27580 r A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN INTE'RLOCAL AGREEMENT BETWEEN MIAMI -DADE COUNTY AND THE CITY OF MIAMI BEACH IN THE AMOUNT OF $945 FOR THE PURCHASE OF TWO (2) MINIBUSES FOR BUS ROUTES IN MIAMI BEACH - , WITH FUNDING FROM A FEDERAL. TRANSIT ' ADMINISTRATION AMERICAN RECOVERY AND REINVESTMENT ACT GRANT. WHEREAS,. the American Recovery and. Reinvestment Act "of 2009, (ARRA) was signed into . law by President Obama on February 17, 2009; and WHEREAS, ARRA funds were allocated by the Federal Transit Administration (FTA) as . formula grants for local, or regional entities for construction ready transit projects; and WHEREAS, the City will receive $945,460.98 in FTA ARRA funds as a sub - recipient of Miami -Dade: Transit (MDT), the direct recipient of the funds; and WHEREAS, MDT is allowed to collect a 5% administrative fee, or $47,273.05, from the municipalities, which results in a total of $898,187.93 in .FTA ARRA funding that the City would receive for transit purposes, and WHEREAS-, MDT is requiring the City to enter into an Interlocal Agreement.(ILA) with Miami- Dade County;. and WHEREAS, MDT will use the FTA ARRA funds to purchase two (2) new diesel minibuses for local circulator bus routes within the Miami Beach city limits for subsequent_ reimbursement by the FTA. 'with ARRA funds; and WHEREAS, the estimated cost for the purchase of the two (2) minibuses is $820,887, and the balance of funding may be available for other transit improvements along transit corridors within Miami Beach, dependent on final approval from FTA; and WHEREAS, the Administration- recommends that. the Mayor and City Commission approve the'_ILA with the County to purchase two (2) minibuses for local circulator bus routes in Miami Beach through a FTA ARRA grant. NOW, THEREFORE, BE IT RESOLVED BY'THE MAYOR AND CITY COMM'ISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve and authorize the Mayor and City Clerk to execute an Interlocal Agreement between Miami Dade County and the. City of Miami Beach in the amount of' $945,460.98 for the purchase of two (2) minibuses for bus routes.'in Miami. Beach, with funding from a Federal Transit Administration ,American Recovery and - Reinvestment Act grant. PASSED AND ADOPTED this /9 day of 1&11 2011. ATTEST: m �-� , &t, CITY CLERK - MA OR APPROVED AS TO TA 1 \1 -19-11 \ARRA Bus Purchase Reso.doc AFORCUTION UAGE . J City oney Date =' COMMISSION ITEM SUMMARY Condensed Title: A Resolution of the Mayor and City Commission of the City of Miami Beach, Florida, Approving and Authorizing the Mayor and City Clerk to execute an Interlocal Agreement between Miami -Dade County and the City of Miami Beach for the purchase of two 2 minibuses with American Recovery and Reinvestment Act funds. Key Intended Outcome Supported: Enhance mobility throughout the City. Supporting Data (Surveys, Environmental Scan, etc.): According to the 2009 Customer Satisfaction Survey, T ransportation remains one of the most significant areas to address from the survey results (often mentioned as a key h uality of life issue). 24% of residents rated traffic flow as, excellent or good, and 37% as poor. 35% of residents rated e availability of pedestrian trails and bicycle paths/lanes as excellent or good, and 30% as poor. Issue: Shall the Mayor and City Commission approve the Resolution? Item Summa /Recommendation: The American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law by President Obama on February 17, 2009. ARRA funds were allocated by the Federal Transit Administration (FTA) as formula grants for local or regional entities for construction ready transit projects. A total of $69,802,389 was allocated for Miami -Dade Transit (MDT). The Metropolitan Planning Organization approved an automatic 20% allocation, or $13,960,477, of the FTA. ARRA funding to be distributed to municipalities in the County. Based on population estimates, it was calculated that the City would receive $945,460.98 in FTA ARRA funds.- The City will receive the allocated FTA ARRA funds as a sub - recipient of MDT. MDT, as the direct recipient of the funds, will be liable for complying with FTA ARRA funding requirements. MDT is requiring the City to enter into an Interlocal Agreement (ILA) with the County, which would stipulate that the City would also be held responsible for meeting all federal funding requirements. Additionally, the ILA stipulates that MDT is allowed to collect a 5% administrative fee, or $47,273.05, which results in a total of $898,187.93 in FTA ARRA funding that the City would receive for transit purposes. The FTA ARRA funds expire on September 30, 2015; however, FTA is requesting MDT to accelerate the purchasing of the buses and expend the funds by March 30, 20.12, since the purpose of ARRA is to promote economic recovery. City staff evaluated potential construction. ready transit projects, and it was determined that the purchase of two (2) new diesel minibuses would be the quickest way to expend funds, while also improving transit service for local circulator bus routes within Miami Beach. Pursuant to Section 7.2 in the ILA, these buses will be utilized for the _provision of transit service only in Miami Beach. Bus routes in Miami Beach that utilize minibuses include the Route 115/11.7 Mid- North Beach Connection, the South Beach Local, and the Route A. In the event that the ILA is terminated, the County shall maintain ownership of the buses, which must remain as part of MDT's service fleet. In the event that. the buses are removed from transit service prior to the end of their useful life, the County shall be responsible for reimbursing FTA with the depreciated value of the buses., The estimated cost for the purchase of the two buses is $820,887; however FTA's grant rules require the full amount of the grant award to be included in the ILA. If the actual cost of the buses is less than the full amount of the grant award, the City will be able to request approval from FTA for a budget revision for the balance of funding so that it may be used for other transit improvements along transit corridors within Miami Beach. THE ADMINISTRATION RECOMMENDS APPROVAL OF THE RESOLUTION. Advisory Board Recommendation: N/A Financial Information: Source of Amount Account Funds.: - 2 3 OBPI Total Financial impact Summary: City Clerk's Office Legislative Tracking: Fernando Vazquez, City Engineer, x.6399 Sign-Offs: Department Director Assistant CitVJWnager . City Manager FHB JGG JMG T: AGENDA\2011Wanuary MARRA Bus Purchase Sum.doc AGENDA[ E.IM C � �- -_ . MIAMIBE DATE � � � MIAMIBEACH''.. City of Miami Beath, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miam'ibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the C' Commission FROM: Jorge M. Gonzalez, City Manager DATE: January 19, 2011 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN INTERLOCAL AGREEMENT BETWEEN MIAMI DADE COUNTY AND THE CITY OF MIAMI BEACH IN THE AMOUNT OF $945,460.98 FOR THE PURCHASE OF TWO (2) MINIBUSES FOR BUS ROUTES IN MIAMI BEACH, WITH FUNDING FROM A FEDERAL TRANSIT. ADMINISTRATION AMERICAN RECOVERY AND REINVESTMENT ACT GRANT. ADMINISTRATION RECOMMENDATION Adopt the Resolution. FUNDING Miami -Dade Transit will purchase two (2) buses using County funds in the estimated amount of $820,887 for subsequent reimbursement by the federal Transit Administration with American Recovery and Reinvestment Act Funds awarded to the City of Miami Beach. The balance of funding may be available for other transit improvements along transit corridors within Miami Beach, dependent on final approval from FTA. ANALYSIS The American Recovery and Reinvestment Act of 2009 (ARRA) was signed into law by President Obama on February 17, 2009. The purposes of ARRA are the following: to preserve and create jobs and promote economic recovery; to assist those negatively affected by the recession; and to stabilize State and local government budgets in order to minimize reductions in essential services. ARRA includes measures to modernize the nation's infrastructure, enhance America's energy independence, expand educational opportunities, increase access to health care, provide tax relief, and protect those in greatest need. ARRA funds are being distributed through existing funding programs through the following three (3) categories: -1. -Funds allocated as formula grants directly to local or regional entities; 2. Funds allocated to the states for discretionary pass- through or competitive grants; 3. Funds to be distributed at the Federal level through a grant competitive process. ARRA funds were allocated by the 'Federal Transit Administration (FTA) as formula grants for local or'regional entities for construction ready transit projects. A total of $69,802,389 was allocated for Miami -Dade Transit (MDT), which is responsible for planning and providing all public transit services in Miami -Dade County (County), including in Miami Beach. The Metropolitan Planning Organization (MPO) approved an automatic 20% allocation, or $13,960,477, of the FTA ARRA funding to be distributed to municipalities in the County. Based on population estimates, it was calculated that the City of Miami Beach would receive $945,460.98 in FTA ARRA funds. Commission Memorandum — ARRA ILA Bus Purchase January 19, 2011 Page 2 of 2 On March 18, 2009 the City Commission approved the submission of a grant application for the FTA ARRA funding and authorized the execution of all necessary documents related to this application. City staff evaluated potential construction -ready transit projects for Miami Beach, and it was determined that the purchase of diesel minibuses would be the quickest way to expend. funds and improve transit service. The MPO amended the Transportation Improvement Plan (TIP) to include the purchase of the buses as an approved project with the buses to be used for local circulator routes within Miami Beach. The grant application submitted.to FTA requested the purchase of the buses, and the FTA ARRA funds subsequently awarded can now only be used for the purchase of buses. The City will receive the allocated FTA ARRA funds as a sub - recipient of MDT. MDT, as the direct recipient of the funds, will be liable for complying with FTA ARRA funding requirements. MDT is requiring the City to enter into an Interlocal Agreement (ILA) with the County, which would stipulate that the City would also be held responsible for meeting all federal funding .requirements (see Attachment A, ARRA Transit ILA). Additionally, the ILA stipulates that MDT is allowed to collect a 5% administrative fee, or $47,273.05, which results in a total of $898,187.93 in FTA ARRA funding that, the City would receive for transit purposes. There are no matching funds required for this funding. MDT will first incur project costs and then seek reimbursement from FTA. The FTA ARRA funds expire on September 30, 2015; however, FTA is requesting MDT to accelerate the purchasing of the buses and expend the funds by March 30, 2012, since the purpose-of ARRA is to promote economic recovery. MDT has agreed to allow the City. to purchase the buses through an existing County bus procurement contract. MDT will use County funds to execute the purchase with a reimbursement from ARRA funds. The buses will be owned and maintained by the County as part of the MDT fleet. Pursuant to Section 7.2 in the ILA, these buses will be utilized for the provision of transit service only in Miami Beach. Bus routes in Miami Beach that utilize minibuses include the Route 115/117 Mid - North Beach Connection, the South Beach Local, and the Route A. In the event that the ILA is = terminated, the County shall maintain ownership of the buses, which must remain as part of MDT's service fleet. In the event that the buses are removed from transit service prior to the end of their useful life, the County shall be responsible for reimbursing FTA with the depreciated value of the buses.. The estimated cost for the purchase of the two buses is $820,887; however FTA's grant rules require the full amount of the grant award to be included in the ILA. If the actual cost of the buses is less than the full amount of the grant award, the City will be able to request approval from FTA for a budget revision for the balance of funding so that it may be used for other transit improvements along transit corridors within Miami Beach. These transit improvements may include the following: enhanced access to transit for pedestrians and people with disabilities; bicycle access facilities and equipment for storage; and other transit enhancements. CONCLUSION The Administration recommends approving the Resolution. Attachment: 1: ARRA Transit ILA JMG /JGG /FHB /FV TAAGENDA\2011 \January 19\ARRA Bus Purchase Memo.doc