Keyline Transit_Purchase of VehiclesMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Purchase of Transit Vehicles
DATE: June 29, 2010
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Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David Heiar, Economic Development Director
Kelley Deutmeyer, Executive Director, ECIA
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l C. Van Milligen
Dubuque
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2007
In the recently completed LSC study, the consultants strongly encouraged the Regional
Transit Authority (RTA) and the Keyline system to coordinate services between the two
systems. Recently, the RTA was awarded a federal grant for 83% of the cost to
purchase two Pinnacle vans, however, the RTA does not have the local 17% match
($26,180) to purchase the vehicles. These federal funds could help transition the
Keyline fleet by adding some smaller vehicles to our fixed route system.
If the City provides the 17% local match of $26,180, RTA will purchase and own the
Pinnacle vans. In return for this investment, these funds would equate to the lease
payments for 4 years or 100,000 mile federal useful life. The City could continue to
lease the vehicles for Keyline use, for the extended useful life at $1.00 per year.
Economic Development Director Dave Heiar recommends City Council approval to use
$26,180 in local match for the RTA to acquire two Pinnacle vans that will be used to
provide transit services in the City of Dubuque.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: David Heiar, Economic Development Director
DATE: June 29, 2010
SUBJECT: Purchase of Transit Vehicles
Dubuque
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2007
BACKGROUND /DISCUSSION
In the recently completed LSC study, the consultants strongly encouraged the RTA and
the Keyline system to coordinate services between the two systems. Recently, the RTA
was awarded a federal grant for 83% of the cost to purchase two Pinnacle vans,
however, the RTA does not have the local 17% match ($26,180) to purchase the
vehicles.
The LSC study also recommended that the City diversify the types of vehicles (buses)
that are placed in service for public transit. These federal funds could help transition the
Keyline fleet by adding some smaller vehicles to our fixed route system.
The federal funding available to the RTA is providing an opportunity for the City and the
RTA to work together. If the City provides the 17% local match of $26,180, RTA will
purchase and own the Pinnacle vans. In return for this investment, these funds would
equate to the lease payments for 4 years or 100,000 mile federal useful life. The City
could continue to lease the vehicles for Keyline use, for the extended useful life at $1.00
per year.
Budget Director Jenny Larson has indicated that the City has $26,180 of unbudgeted
revenue in FTA funds (FY07 and FY08) that the City will receive from the Illinois DOT
for the East Dubuque mini bus service we are operating.
RECOMMENDATION /ACTION STEP
This is a great opportunity to add some new smaller vehicles to the Keyline fleet, and
also provides another opportunity to work in conjunction with the RTA. I request that
the City Council authorize the use of $26,180 in local match for the RTA to acquire two
Pinnacle vans that will be used to provide transit services in the City of Dubuque.
Attachment
cc: Jenny Larson, Budget Director
Aaron DeJong, Asst. Economic Development Director
Kelley Deutmeyer, ECIA, Executive Director
F:\USERS\Econ Dev \Transit \Council Memos\20100629 Council Memo Purchase of Transit Vehicles.doc
EAST CENTRAL INTERGOVERNMENTAL ASSOCIATION
A Regional Response to Local Needs
June 15, 2010
TO:
FR:
RE:
Dave Heiar, Economic Development Director
Kelley Deutmeyer, Executive Director Ag 11
Mark Munson, Director of Transit Operations
Local match funding for bus replacements
Purpose
The purpose of this memo is to recommend that the City of Dubuque and the Regional Transit Authority
partner on the acquisition of two wheelchair accessible Pinnacle vans to be used in conjunction with the
KeyLine minibus and the RTA services within the City of Dubuque.
Background
The Regional Transit Authority has a federal grant to fund up to 83% of eligible expenses for the
purchase of two buses. The Iowa Department of Transportation is requiring the RTA to obligate the
funds from this contract by no later than June 30, 2010. If the funds are not obligated by June 30, 2010,
the funds will be rescinded back to the state for reprogramming. The RTA cannot specifically direct the
funds to a particular transit system.
7600 Commerce Park
Dubuque, IA 52002
At issue is the RTA's capital replacement fund that would normally pay the 17% local match. This fund
has been seriously depleted due to the past three years of other capital purchases as well as high
maintenance and fuel costs that have prevented the RTA from replenishing this fund. The RTA would like
to purchase smaller wheelchair accessible Pinnacle vans to use on the Keyline medical loop
recommended in the LSC Study and funded through an ICAAP grant secured on behalf of the City by
ECIA.
Recommendation
As recommended in the recently completed LSC study, the consultants strongly encouraged the RTA and
the Keyline system to coordinate services between the two systems. As such, the RTA is requesting the
City of Dubuque to consider funding the 17% or $26,180 local match necessary to fund two additional
vehicles to be used on the proposed medical loop. The RTA would execute a lease with the City of
Dubuque to apply the total local match as lease payments for the 4 year, 100,000 mile federal useful life
of the vehicle with an extended lease for the remaining useful life at a rate of $1.00 per vehicle per year.
Cc: Lisa Weinhold, Finance Director
PHONE (563) 556 -4166 IOWA ONLY (800) 942 -4648 FAX (563) 556 -0348 E -MAIL ecia@ecia.org WEB SITE www.ecia.org
• Dubuque Metropolitan Area Transportation Study • Eastern Iowa Development Corporation •
• Eastern Iowa Regional Utility Services System • Eastern Iowa Regional Housing Authority • ECIA Business Growth, Inc. •