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.
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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
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