Calendar Details:
Monday, June 29
7:30am - Legislative Delegation Breakfast (awaiting delegation response), Room 267
10:30am - Budget Committee, Room 280. AGENDA: State Tax Proposal and Impact on Local Revenues (Part 2)
Tuesday, June 30
6:30pm - Council member Carter Community Meeting, Hickory Grove Rec Center
Friday, July 3
HOLIDAY-INDEPENDENCE DAY OBSERVED
Information Items:
Monday, June 29 - Legislative Breakfast with the Mecklenburg Delegation
Resource:
Boyd Cauble, City Manager's Office, 704-336-2009, bcauble@ci.charlotte.nc.us
The City Council breakfast with the Mecklenburg Delegation to discuss the impact of the State budget on the City will be held on Monday, June 29 at 7:30 a.m. in Room 267 of the Charlotte-Mecklenburg Government Center. The agenda will include an overview of the House's adopted budget and the Senate's budget proposal and their impact on the City, plus discussion of the Senate's approval of a continuing budget resolution. We have received confirmation from some of the delegation members, along with County Board Chair Jennifer Roberts and CMS Board Chair Molly Griffin.
Small Business Development Program
Resource:
Nancy Rosado, Neighborhood & Business Services, 704-336-2116, nrosado@ci.charlotte.nc.us
Based on the discussion at the June 22, 2009 City Council dinner briefing, the City Manager will refer the Small Business Opportunity Program back to the Restructuring Government Committee for additional review. This will allow the Committee members an opportunity to further discuss City Council questions regarding net worth thresholds, good faith efforts, and new small businesses entering the program. The item will not appear on the July 27 City Council agenda as noted during the presentation. The next Restructuring Government Committee is scheduled for July 27, 2009 at Noon in Room 280.
Closure of Portion of Crestland Avenue
Resource:
Greg Cole, E&PM, 704-336-4647, gcole@ci.charlotte.nc.us
Linda Durrett, CDOT , 704-336-3902, ldurrett@ci.charlotte.nc.us
The Charlotte Department of Transportation (CDOT) closed Crestland Avenue between the 5100 and 5200 blocks on Tuesday, June 23. Road closure signs have been posted and local access to homes will be maintained. CATS buses will not be affected.
Crestland Avenue is located in north Charlotte near Derita between W. Sugar Creek Road, Gibbon Road, and Christenbury Road. The portion of the road that is closed is part of the earthen dam forming Hunter Acres Pond. The dam is unstable and there is a reasonable risk the dam could fail.
Charlotte-Mecklenburg Storm Water Services (Storm Water) is currently in the process of conducting a feasibility study on the dam for a water quality project and has discovered numerous deficiencies. Storm Water is working with CDOT to evaluate alternatives for replacing the dam and road.
Potential Transfer of CATS Buses
Resource:
Larry Kopf, CATS, 704-432-0497, lkopf@ci.charlotte.nc.us
The operations and management of the Charlotte Area Transit System (CATS) comes under review every three years by the Federal Government as a requirement of CATS' status as a recipient of federal capital funds. The most recent federal review was completed in May 2009. Overall the evaluation of the CATS operation was positive. One area that CATS was instructed to address pertained to the number of buses in the CATS fleet. Specifically, federal guidelines dictate that a federal recipient is required to maintain a fleet with no more than twenty percent (20%) spare buses.
Currently 35% of the CATS bus fleet consists of spares, a result of service reductions that took place in March 2009. The reviewer from the Federal Transit Administration (FTA) understood the circumstances that led to the temporary increase in the CATS spare ratio, but indicated that CATS would be required to develop a plan to comply with the regulation that limits the spare ratio to twenty percent (20%). To address the situation, CATS developed the following plan:
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Twenty-five (25) buses at the end of their useful life based on age and/or mileage will be retired as of June 30, 2009.
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Three (3) buses with significant damage due to accident will be retired by July 31, 2009.
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Eleven (11) buses with two years of useful life remaining would be transferred to other transit agencies that receive federal funds.
These three steps would reduce the CATS fleet to 324 buses, representing a requirement for 270 buses at the peak service hour, and 54 spare buses, a twenty percent (20%) spare ratio as required by FTA.
The depreciated value of the eleven (11) buses slated for transfer is $518,149. Eighty percent (80%) of this value ($414,519) is the federal interest in the buses. Ten percent (10%) of the value ($51,815) is state interest and ten percent (10%) of the value ($51,815) is local interest. CATS determined that transferring buses to other systems would be the best financial option for the following reasons:
- The best case scenario is that the buses would return twenty percent (20%) of their value ($103,630) at auction. In this case CATS would still have to repay $414,519 to the federal government and $51,815 to the state.
- FTA would not require reimbursement if the buses are transferred to other transit systems that receive federal funds. The State of North Carolina would not require reimbursement if the buses are transferred to transit systems within North Carolina.
- CATS is currently working with several systems within North Carolina who have shown various levels of interest in the buses, and CATS has been contacted by a transit system in Oxford, MI.
CATS is currently working on an RCA with the intent of bringing this matter to the attention of City Council on July 27, 2009.
