Title
Update on Use of FTA Funded Capital - Buses
Summary
MEETING DATE: April 19, 2022
DEPARTMENT: Housing & Community Development
CONTACT: Akia Pichon, Transit Administrator
ITEM SUMMARY:
• Parks Staff reached out to Transit Staff to discuss a senior transit project. The City of McKinney, as the designated recipient of FTA 5307 grant funds, has three FTA funded vehicles. Two of these buses, purchased in 2014, are past their useful life and may be used for other transit projects or programs without prior approval from FTA.
• The third FTA funded vehicle was purchased in 2019 and is currently being used by the CCT program.
• McKinney will use obligated FTA funds to add a new vehicle to the fleet and give Parks one vehicle that is past its useful life. FTA calculates minimum useful life for light duty vehicles as four years or one hundred thousand miles, whichever first.
BACKGROUND INFORMATION:
• After the minimum useful life of project property is reached and is no longer needed for the original project or program, it may be used by the grantee for other transit projects or programs. FTA prior approval of this alternative is not required. FTA retains its interest if the fair market value of the project property is over $5,000.
FINANCIAL SUMMARY:
• An FTA grant for the purchase of a new fleet vehicle was obligated in late 2021.