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sr-072710-1lCity Council Meeting: July 27, 2010 Agenda Item: S -'~° To: Mayor and City Council From: Stephanie Negriff, Director of Transit Services Subject: Support for Federal Transit Operations Funding Bill Recommended Action Staff recommends that the City Council support United States Senate Bill No. 3412 and forward a letter of support to our Congressional delegation. Executive Summary This report recommends that the City Council adopt a support position on the Public Transportation Preservation Act of 2010 (S. 3412). S. 3412 would provide $2 billion in one-time federal operating funds for eligible transit systems. If the bill was signed by the President in its current form approximately $4 million would be allocated to the Big Blue Bus. Discussion In May, US Senator Christopher Dodd (D-Connecticut) introduced S. 3412 which would distribute funds made available to help restore and prevent service reductions and layoffs, or fare increases that occurred due to decreased state and local funding from January 1, 2009 through September 30, 2011. Under this bill, 80 percent of the funds would be distributed through the Section 5307 Urbanized Area formula program, 10 percent under the 5340 High Density and Growing States formula program, and 10 percent through the 5311 Rural Area formula program. The Big Blue Bus would be eligible to use the funds for operations because we have raised fares within the designated period. Transit systems that have not increased fares, cut services, or laid off employees and do not plan to do so in the next year may use the funds for its capital needs. 1 The bill has twelve co-sponsors and is currently in the Senate Committee on Banking, Housing, and Urban Affairs. Senators Boxer's and Feinstein's staffs have indicated that they are supportive of the concept but have not adopted formal positions on the bill. Budget/Financial Impact There are no immediate financial impacts associated with Council support of this bill. If the bill is signed into law in its current form, the Big Blue Bus would expect to see a one- time allocation of approximately $4 million for BBB operations. The funds would need to be obligated by September 30, 2011 and expended by July 1, 2012. Prepared by: David Feinberg, Deputy Director of Transit Services Approved: Step= ie Negriff Direct r of Transit Services Forwarded to Council: _~.~~ ,, Rod Gould City Manager 2