TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: FTA Section 5311 Grant Application
ACTION ITEM
AGENDA PLANNING REQUEST: ☐
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager, or his designee, to file and execute a grant application and agreements for Federal Transit Administration (FTA) Section 5311 funds for transit operations.
Staff Contact:
Chris Andrichak, Chief Financial Officer
Body
STRATEGIC IMPORTANCE:
Goal - Financial Stability and Resiliency
Initiative - Financial Efficiency and Revenue Maximization
The District has been allocated $81,635 to the District in operating revenue.
BUDGETARY/FISCAL IMPACT:
Approval of this item would allow AC Transit to apply for and receive an estimated $81,635 FTA Section 5311 (Formula Grants for Rural Areas) operating funds for the FY 2025-26 Program. The exact amount of funding AC Transit will receive is dependent on how the Metropolitan Transportation Commission (MTC) distributes their apportionment of these funds.
BACKGROUND/RATIONALE:
The FTA offers formula funding to provide revenue for transit agencies operating transit service in rural areas, and a very small amount of the District’s service miles occur in what the FTA defines as “non-urbanized areas”. The allocation of funds under this federal program to transit agencies is administered by Caltrans and the Metropolitan Transportation Commission (MTC). For the FTA Section 5311 Federal Fiscal Year (FFY) 2026 Apportionment, MTC received $2,419,219 in regional funding. Based on MTC's allocation methodology, AC Transit is estimated to be eligible to receive $81,635If other regional transit agencies do not apply for the funding provided by this program, that amount will increase. Award of these funds is also contingent on successfully completing an application and meeting the application requirements.
Although the amount is relatively modest, staff is pursuing this formula funding to maximize all available funding opportunities in light of the District's current financial situation.
ADVANTAGES/DISADVANTAGES:
There are no disadvantages to approving this item. Applying for the funds would provide the District with approximately $81,635 in operating funds for the FY 2025-26 Program.
ALTERNATIVES ANALYSIS:
The only alternative to the course of action recommended in this report is to not apply for the funds.
PRIOR RELEVANT BOARD ACTION/POLICIES:
None
ATTACHMENTS:
None
Prepared by:
Jesse Rosemoore, Senior Capital Planning Specialist
In Collaboration with:
Emily Heard, Capital Planning and Grants Manager
Approved/Reviewed by:
Richard Oslund, Director of Management & Budget
Chris Andrichak, Chief Financial Officer
Aimee L. Steele, General Counsel/Chief Legal Officer
Paul Kincaid, Assistant General Manager/Chief Executive Officer