City of Alexandria, Virginia
________________
MEMORANDUM
DATE: JANUARY 22, 2025
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
THROUGH: JAMES F. PARAJON, CITY MANAGER /s/
FROM: ADRIANA CASTAÑEDA, DIRECTOR, TRANSPORTATION AND ENVIRONMENTAL SERVICES
DOCKET TITLE:
TITLE
Consideration of Grant Applications to the Virginia Department of Rail and Public Transportation for the FY 2026 State Aid Grant Programs for Capital and Operating Assistance, MERIT, CAP Workforce Development, TRIP, Demonstration Projects, and Technical Assistance. [ROLL-CALL VOTE]
BODY
ISSUE: Consideration of a Resolution to Support Grant Applications to the Virginia Department of Rail and Public Transportation (DRPT) for the FY 2026 State Aid Grant Programs.
RECOMMENDATION: That the City Council:
1. Approve a Resolution (Attachment 1) to support an application and submission to DRPT by February 1, 2024, for the following programs:
• Up to $40,000,000 in eligible expenses for State Aid Transit Operating Assistance,
• Up to $21,200,000 for State Aid Capital Assistance,
• Up to $200,000 for the Commuter Assistance Program (CAP),
• Up to $100,000 for Technical Assistance,
• Up to $110,000 for the Public Transportation Workforce Development Program,
• Up to $100,000 for the Demonstration Project Assistance Program,
• Up to $500,000 for the Transit Ridership Incentive Program (TRIP),
• Up to $150,000 for free Washington Metro Area Transit Authority (WMATA) student fares (TRIP);
2. Authorize the City Manager to commit local funds of up to $9,500,000, of which:
a. Up to $6,382,600 is currently programmed in the CIP under DASH Bus Fleet Replacement for FY 2026 in local funds
b. $2,745,000 has already been programmed in the CIP in a previous year under DASH Upper Deck Repairs
c. Approximately $300,000 can be funded through the Go Alex Fund from developer contributions or from NVTA 30% funds
d. $22,000 can be funded through DASH Operating funds; and
3. Authorize the City Manager to apply for State Aid Grants through the Northern Virginia Transportation Commission (NVTC) and enter into any necessary agreements with the Commonwealth of Virginia and/or NVTC to accept and implement the grants.
BACKGROUND: The City applies annually to the Virginia DRPT for grant funds that support transit operating assistance and capital expenses for DASH, Metro, DOT/Paratransit, and commuter outreach programs. Both state aid grants reimburse the City for funds spent on transit activities. These funds are directly deposited to the City’s Northern Virginia Transportation Commission (NVTC) Fund and are used to pay the City’s annual WMATA operating budget.
The City operates a commuter outreach program, known as GO Alex, that provides information, encouragement, and incentives to support the City’s goal of increasing transit ridership and transportation options other than a single-occupant vehicle while still ensuring that residents, workers, and visitors can reach destinations within Alexandria. This strategy is endorsed in the “Mobility Options” chapter of the Alexandria Mobility Plan. In previous years, these funds have been used to promote DASH’s free fares and the all-day network.
DASH is known in the state for its innovative pilots to test technology and has successfully submitted applications to the Demonstration Project Assistance Program in previous years. DASH has also supported workforce development through a long running intern program funded by DRPT.
DISCUSSION: The City and DASH plan to submit applications for five DRPT grant programs that will offset City expenses and provide greater support for DASH. The programs aim to continue the City’s goal of supporting multimodal transportation options and reducing single occupancy vehicle trips to relieve congestion. The summaries below reflect the proposed applications and align with the guidelines and criteria outlined by DRPT for each funding opportunity:
FY 2026 MERIT - State Operating Assistance (State Aid Grant)
City of Alexandria Transit Operating Assistance - (total eligible expenses - up to $40,000,000):
Operating assistance to jurisdictions is allocated based on system size and system performance for both DASH and DOT paratransit. Operating costs have increased over the past few years due to labor and fuel costs. However, ridership has continued to increase to unprecedented levels, which is another calculation into the reimbursement provided to the City. The amount the Commonwealth can provide in operating assistance varies annually but has typically been between 20% and 30%.
FY 2026 MERIT - Capital Assistance (State Aid Grant)
Hybrid Spare Parts - (up to $200,000):
The Capital Assistance Program provides reimbursement to the City for a portion of the funds spent on the purchase of transit capital assets. In FY 2026, DASH will purchase hybrid bus batteries and spare parts that will help maintain a safe and reliable fleet by extending the useful life of its hybrid buses. These purchases are eligible for reimbursement, and the funds that come back to the City are used to offset general fund dollars required for transit operational costs, such as WMATA. In previous years, the City has been reimbursed by up to 68% for capital purchases, but the number can vary year by year.
Bus Replacements - (up to $12,000,000)
DASH currently has seven bus replacements planned for FY 2026. These are currently funded to be clean diesel buses. These funds would allow DASH to purchase electric buses instead, accelerating their electric bus conversion. The FY 2026 budget currently has nearly $6.4 million available for bus replacement. Staff are seeking additional opportunities for funding and will likely submit well under the needed $12 million but is requesting authority to apply for up to the fully needed $12 million in case other sources are not identified. The City would be reimbursed for up to 68% of costs.
Major Expansion Project - (up to $9,000,000)
The roof deck at the DASH Facility at 3000 Business Center Drive has aged more rapidly than anticipated and is in serious need of urgent repairs to address structural integrity issues and estimates for total repairs could reach $12 million. The CIP currently has approximately $2.7 million available for this project in prior year funding. The Major Expansion Project grant requires a 50% match, however DRPT may opt to reclassify the project as a State-of-Good-Repair project, reducing the required match to 32% and increasing the state aid from $2.7M ($5.4M total) to $5.7M ($8.4M total). DASH is exploring additional funding options to meet any funding gap, including federal sources.
FY 2026 Commuter Assistance Program
GO Alex - (up to $200,000):
The Commuter Assistance Program grant provides reimbursement to the City for operating dollars spent on GO Alex programming and staffing. These funds will maintain current staffing and fund future programming such as promoting different transportation options in the City, including DASH, Metro, and Capital Bikeshare. A 20% local match is required.
FY 2026 Technical Assistance Grant
Technical Assistant Grant - Up to $100,000
In order to be eligible for Commuter Assistance Program (CAP) grants, DRPT requires programs such as GO Alex to have a CAP Strategic Plan that outlines programs and projects the program will undertake over the next few years. This grant would fund contractor support in developing a new Strategic Plan. As part of this process, staff would also collect data that could be used to establish a baseline for the surveys required through the new Transportation Management Plan (TMP) Policy.
FY 2026 Public Transportation Workforce Development Program
DASH Public Transit Workforce Development- (up to $110,000):
This grant will allow DASH to continue developing the transit workforce with either interns or apprentices in 2025. This grant will fund two positions and allow them to gain valuable experience in the public transportation industry. A 20% local match is required.
FY 2026 Demonstration Project Assistance Program
DASH Digital Mirror Technology - (up to $100,000):
DASH is seeking to pilot and demonstrate the concept of a digital mirror system as potential future technology to improve safety and cost effectiveness of buses. This technology is common and standard in many places in Europe, and in rail vehicles across North America. Potential benefits of this technology would be increased effectiveness of visibility across the bus, reduction of user error of mirrors, and reduced parts budget spending.
Mirror strikes are the second most common type of incident involving DASH buses, with annual parts cost ranging from $15,000 to $50,000 due to replacing mirrors. There are also further cost savings due to the greater functionality and effectiveness of the technology in adverse conditions (night, rain, snow) that would reduce crashes and associated losses overall. This benefit is yet to be quantified but is expected to be measured during such a pilot program. This pilot program is not a commitment or retrofit of the technology, but rather a proof of concept for both DASH and the Industry. There is a 20% required local match for this grant.
FY 2026 Transit Ridership Incentive Program (TRIP)
Transit Access and Amenities - Up to $500,000
Because the TRIP grant can be used to fund passenger amenities, this application would fund the design and/or construction of transit access and amenities Citywide, for example bus shelters, bus bulbs, lighting, benches, bus arrival screens, ADA improvements, and other minor concrete work. This work builds on last year’s TRIP award and complements the work of other efforts in the Bus Stop Program, such as ADA improvements and the Bus Shelter II project. These improvements would enhance safety, comfort, and convenience for transit riders, making the bus a more practical and convenient option to reduce Single Occupancy Vehicle (SOV) driving. Both the Alexandria Transportation Commission (ATC) and the ATC Board of Directors have been supportive of staff seeking funding for transit access and amenities over the past few years. There is a 32% local match for these projects.
Free WMATA fares for Students - Up to $150,000
The City is interested in testing out an option for free fares on WMATA for middle and high school students. This program was very successful on the DASH network before DASH went completely fare free, and staff anticipates a similar success by expanding this program to WMATA services. Additionally, Arlington County also has a similar program. The benefits to the City are potentially easing crowding on school buses, a sense of independence for students, and the ability to gather anonymized trip data on this demographic, which is intentionally not included in other survey tools. There is a 32% local match, which would be paid for with the City’s Go Alex fund.
If approved by DRPT, funds would require formal adoption by the Commonwealth Transportation Board and incorporation into the state’s six-year program in the spring of 2025. Funds would be available on or after July 1, 2025.
FISCAL IMPACT: Operating and Capital Assistance funds provided by DRPT to jurisdictions do not require a local match, as these are treated as a reimbursement to localities for funds spent on transit. Funding will be allocated by a regional formula depending on which expenditures qualify for reimbursement; as such, the expected award or grant amount is unknown at this time. Based on the funding rates for FY 2025, the City could generally expect to be reimbursed around 24% percent for operating assistance and around 68% for capital assistance.
For the Major Expansion Project Grant, the local match would be limited to $2.7 million of existing CIP funds from the DAH Upper Deck Repairs project. Additional funding would be identified by DASH from existing or grant sources. If additional funding cannot be identified, staff would reduce the amount requested.
The Commuter Assistance Program would require up to a $40,000 local match. If the required local match is not available, the City may withdraw, amend the grant applications, or decline to enter into the necessary agreements.
The Technical Assistance Grant for the CAP Strategic Plan and Baseline Data Collection for the TMP Program would require a local match of up to $50,000, which could be funded through the Go Alex Fund.
The estimated local match for the Workforce Development Program would require up to $22,000, which would need to be identified in the FY 2026 budget or supplemental appropriation process. If the required local match is not available and DASH cannot determine a local match, the Alexandria Transit Company Board of Directors may withdraw, amend the grant applications, or decline to enter into the necessary agreements.
The local match for the Demonstration Project Assistance funds would require up to $32,000, which has been already budgeted through Northern Virginia Transportation Authority (NVTA) 30% in the DASH Technology CIP project.
For the TRIP grant, the total local match would require up to $160,000 for the Transit Access and Amenities program, which could be funded by a combination of sources, including funding received by new developments under the Go Alex fund, any existing projects with local funding that could act as a match, or NVTA 30% funding. If the local match could not be identified for transit access and amenities, the City may withdraw or otherwise amend the grant applications. The Free WMATA Student fares would require a local match of up to $48,000, which will be funded through the Go Alex fund or NVTA 30% funding.
ATTACHMENTS:
Attachment 1: Resolution
Attachment 2: Endorsement Letters
Attachment 3: Presentation
STAFF:
Emily A. Baker, Deputy City Manager
Josh Baker, General Manager/CEO, DASH
Hillary Orr, Deputy Director of Transportation, T&ES
Alicia Wright, Assistant Director, Administrative Services, T&ES
Christopher Ziemann, Division Chief, Transportation Planning, T&ES
Katye North, Division Chief, Transportation Planning, T&ES
Josh Etim, GO Alex Program Manager, Mobility Services, T&ES
Philippe Simon, Grants Coordinator, T&ES
Edward Ryder, Chief Financial Officer, DASH
Martin Barna, Director of Planning & Scheduling, DASH
Raymond Mui, Chief Infrastructure and Development Officer. DASH