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<br /> <br />LSA Design. Inc. <br />One Financial Plaza <br />120 S. Sixth Street <br />Suite 1700 <br />Minneapolis. MN 55402 <br />T. 612.339.8729 <br />F. 612.339.7433 <br />www.lsadesigninc.com <br /> <br />Planning <br />Architecture <br />Urban Design <br /> <br /> <br />To: <br /> <br />Brian Olson <br /> <br />From: <br />Project: <br />Subject: <br />Date: <br /> <br />Jo Ann Olsen <br />Ramsey Star Express <br />CMAQ grant - Bus Operation: Options <br />April 20, 2009 <br /> <br />A. Federal Highway Administration: CMAQ Final Program Guidance <br /> <br />Below is the text from the FHWA on the three (3) year limit on Operating Assistance. A link to the <br />whole document is listed below. <br /> <br />Operatinq Assistance <br />There are several general conditions that must be met for operating assistance to be eligible <br />under the CMAQ program: <br />a. Operating assistance is limited to new transit services, intermodal facilities, and travel <br />demand management strategies (including traffic operation centers); and the incremental <br />cost of expanding existing transit services. <br />b. In using CMAQ funds for operating assistance, the intent is to help start up viable new <br />transportation services that can demonstrate air quality benefits and eventually cover their <br />costs as much as possible. Other funding sources should supplement and ultimately replace <br />CMAQ funds for operating assistance, as these projects no longer represent additional, net <br />air quality benefits but have become part of the baseline transportation network. <br />c. Operating assistance includes all costs of providing new transportation services, including, <br />but not limited to, labor, fuel, administrative costs, and maintenance. <br />d. When CMAQ funds are used for operating assistance, non-Federal share requirements still <br />appl . <br /> <br />e <br /> <br /> <br />http://WWW. fhwa. dot. Qov/environmentlcmaqpQs/cmaq08qd. pdf <br /> <br />B. Ramsey CMAQ Funds for Bus Operations <br /> <br />The Ramsey Star Express bus operation began in January 2007. The CMAQ funds for operating <br />assistance are limited to three years (ends January 2010). Between January 2007 and December <br />2008, the City of Ramsey has incurred $794,544 in capital and operating costs for the bus <br />operation. A spare vehicle is currently being provided by the Northstar Commuter Coach vehicles. <br />Once the Northstar Commuter Rail service begins (estimated November 2009), this spare vehicle <br />will no longer be available and provided to Ramsey Star Express. A potential additional monthly <br />