City of Alexandria, Virginia
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MEMORANDUM
DATE: JUNE 4, 2025
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: MICHAEL MOON, P.E., INTERIM DIRECTOR, TRANSPORTATION AND ENVIRONMENTAL SERVICES
DOCKET TITLE:
TITLE
Consideration of a Resolution to Support a Grant Application to the U.S. Department of Transportation for the Federal FY 2025 Low or No Emission (Low-No) and/or Buses and Bus Facilities Grant Programs. [ROLL-CALL VOTE]
BODY
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ISSUE: Request to seek grant funding from the Federal Transit Administration (FTA) to fund projects in support of State of Good Repair of the DASH Facility and Rolling Stock, as well as the continued transition towards Zero Emissions technology.
RECOMMENDATION: That City Council:
(1) Approve resolution (Attachment 1) supporting the grant applications to the U.S. Department of Transportation (DOT);
(2) Approve the submission of up to $36 million in Federal funding to the Low-No and/or Buses and Bus Facilities grant programs by July 14, 2025; and
(3) Authorize the City Manager to enter into any necessary agreements with FTA and DASH to accept this funding.
BACKGROUND: The Low-No Program aims to support the transition of the transit fleet to low emissions or no emissions fleet technology, to include replacement buses, infrastructure, and facility improvements. For Federal FY 2025, there is $1.1 billion in funds available under this program.
The Bus and Bus Facilities Program assists in funding buses and bus facility capital projects to address severe State of Good Repair deficiencies. For Federal FY 2025, there is $398 million available in funds under this program.
Grant applications are evaluated by the FTA with considerations including demonstration of need, demonstration of benefits, planning and local or regional prioritization, local financial commitment, project implementation strategy, and technical, legal, and financial capacity. Additional consideration specific to the current Notice of Funding Opportunity (NOFO) include opportunity zone, cost-effective vehicle procurements, strengthen U.S. Vehicle Manufacturing Industry, benefits for families and communities, and Buy America.
DISCUSSION: DASH and the City of Alexandria propose applying to both projects with scalable applications.
DASH Facility Rehabilitation/Deck Repair (State of Good Repair)
In 2021, the City and DASH identified an urgent need to conduct comprehensive rehabilitation and replacement of the roof deck structure of the DASH Facility due to rapidly deteriorating conditions. This has resulted in hazardous work conditions for occupants, uncontrolled water intrusion, and subsequent damage of equipment. In FY 2023, $3 million was included in the CIP to perform the DASH Upper Deck repairs. However, it was quickly determined that the true cost to perform the project is closer to $9-12 million. DASH and the City have pursued the Virginia Department of Rail and Public Transportation (DRPT) MERIT program to secure additional State funding for this project, the project is now included in the draft Six Year Improvement Program (SYIP) for a minimum of $2.5 million and maximum of $4.7 million in supplemental State funding. This brings the total secured funding to roughly $5 million minimum. The City and DASH propose submitting this project to the FY 2025 Bus and Bus Facilities program and/or Low No program to cover the remainder of the funding gap. Staff anticipates that scope additions (such as photovoltaic/solar, microgrid elements, etc.) may be added to make this project eligible for Low No funding, which has a substantial larger amount of available funding. Staff will potentially also incorporate other various rehabilitative needs of the DASH facility as it is approaching mid-life based on ongoing grant strategy guidance.
DASH Replacement Buses (State of Good Repair)
In 2018, the City and DASH committed to shifting to an all zero-emissions bus fleet by the year 2037. DASH currently has sixteen (16) electric buses with charging infrastructure and 87 active clean diesel and hybrid buses.
Between the DASH Bus Replacement plan and existing surplus assets, twelve (12) buses are identified as exceeded their useful life and eligible for replacement by FY 2026. To replace these buses with conventional clean diesel counter parts would cost approximately $10.4 million. If all twelve buses are funded, this would alleviate pressure on the City’s CIP to fund replacement buses in subsequent year FY 2027, in which there are fourteen (14) total buses needing replacement.
To replace all twelve (12) buses with battery electric buses would cost an additional $6.8 million, totaling $17.2 million. Depending on ongoing grant strategy guidance, the City may apply for up to these twelve (12) buses either as clean diesel conventional replacement buses, and/or battery electric zero emissions buses.
In line with DASH and the City’s priorities, it is anticipated that the projects will be prioritized in this order:
1. State of Good Repair (DASH Rolling Stock)
2. State of Good Repair (DASH Facility)
3. Zero Emissions Transition (DASH Rolling Stock)
To be strategic with funding awards and amounts, DASH and City staff will submit multiple applications to this grant program with the goal of securing the maximum amount of funding. How those applications are structured and scaled will be determined after additional conversations with FTA and the release of the NOFO. Applications will likely be submitted to both Low-No and Buses and Bus Facilities, and FTA will decide from which funding source the project would be awarded.
The following projects (up to $36 million total) could be submitted within these applications.
• DASH Facility Rehabilitation: (up to $17.6 million): Replacement and rehabilitation of DASH Facility Upper Deck and other facility rehabilitation needs.
• Bus Replacement (up to $10.4 million): Retire and replace up to twelve (12) heavy duty buses with standard clean diesel replacements.
• Electrification of Bus Replacements (up to $6.8 million): Upgrade up to twelve (12) heavy duty replacement buses to battery electric propulsion.
• Workforce Development (up to $1.2 million): Possible requirement of 5% of Federal request.
The maximum total project amount is $36 million, but staff will continue to refine the ask based on feedback from the FTA. While it is unlikely the full grant request will be fulfilled, staff determined the best path forward is to propose all needs in a scalable manner by which the FTA can assess and award funds as available.
FISCAL IMPACT: The Low-No Grant Program and Buses and Bus Facilities Program both require a 10-20% local match, depending on the category. If the City is awarded all projects for a project total of $36 million, the match would be approximately $6.3 million for all projects. The FY 2026 DASH Bus Replacement CIP and Public Buildings CIP shows a total of approximately $7.7 million from various sources, which can be used to serve as local match for these projects. The City will first leverage the $4.7 million in DRPT funds awarded for FY 2026 and potentially have a saving of City funds provided in the CIP.
ATTACHMENTS:
Attachment 1: Resolution
Attachment 2: Presentation
STAFF:
Emily A. Baker, P.E., Deputy City Manager
Josh Baker, General Manager, DASH
Hillary Orr, Deputy Director, T&ES
Alicia Wright, Assistant Director, T&ES
Raymond Mui, Chief Infrastructure and Development Officer, DASH
Edward Ryder, Chief Financial Officer, DASH
Martin Barna, Director of Planning, DASH
Christopher Ziemann, Division Chief, Transportation Planning, T&ES
Philippe Simon, Grants Coordinator, T&ES