Arizona Department of Transportation handbook and application section 5311 Rural Transportation Program

              ARIZONA DEPARTMENT OF TRANSPORTATION



Handbook and Application

Section 5311 Rural Transportation Program FY 2008



Arizona Department of Transportation Public Transportation Division 206 South 17th Avenue, MD 340 B Phoenix, AZ 85007



Handbook and Application   Section 5311 Transportation Program

ARIZONA DEPARTMENT OF TRANSPORTATION



Table of Contents

PAGE PART I. A. B. C. D. E. A. B. C. D. E. F. G. A. B. C. D. E. F. G. H. I. J. K. L. M. N. O. A. B. C. D. E. F. G. H. I. INTRODUCTION ................................................................................................ 1 Forward ................................................................................................................................................. 1 Using This Handbook ......................................................................................................................... 2 Providing Transit Services in Rural Arizona...................................................................................3 Contact Information............................................................................................................................4 Program Update....................................................................................................................................6 PROGRAM DESCRIPTION.................................................................................9 Overview ............................................................................................................................................... 9 Program Purpose..................................................................................................................................9 Applicant Eligibility ........................................................................................................................... 10 Project Eligibility................................................................................................................................11 Applicant Responsibilities.................................................................................................................14 Project Selection Process .................................................................................................................. 15 Funding Local Transit Services........................................................................................................19 PROGRAM ADMINISTRATION AND PROJECT MANAGEMENT........22 Overall Program Administration ..................................................................................................... 22 Contracting..........................................................................................................................................22 Project Expenses, Revenues and Local Match Ratios .................................................................. 23 Fare Recovery Program.....................................................................................................................26 Reimbursement .................................................................................................................................. 26 Contract Deliverables ........................................................................................................................ 27 Project Management, Monitoring, And Reporting ....................................................................... 28 State Financial Management.............................................................................................................32 Coordination and Planning...............................................................................................................32 Transit Automated Program Systems ............................................................................................. 32 Project Training Compliance............................................................................................................32 Procurement ....................................................................................................................................... 34 Vehicles................................................................................................................................................35 Vehicle Liability Insurance................................................................................................................36 Driver and Vehicle Licenses.............................................................................................................36 FEDERAL AND STATE REQUIREMENTS ................................................ 37 Federal Government Obligations to Third Parties ....................................................................... 37 Private Enterprise Involvement.......................................................................................................37 Public Involvement............................................................................................................................38 Labor Protection Provisions ............................................................................................................ 39 Audits of State and Local Governments ........................................................................................ 39 Disadvantaged Business Enterprises (DBE)..................................................................................40 Civil Rights Requirements, Title VI ................................................................................................ 41 FTA Charter Requirements .............................................................................................................. 41 Intercity Bus........................................................................................................................................43

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PART II.



PART III.



PART IV.



Handbook and Application   Section 5311 Transportation Program

ARIZONA DEPARTMENT OF TRANSPORTATION



J. K. L. M. N. O. P. Q. A. B.



School Bus Requirements ................................................................................................................ 43 Federal Motor Carrier Safety Licenses ........................................................................................... 44 Grant Administration and Eligible Costs ...................................................................................... 44 Drug & Alcohol Requirements ....................................................................................................... 45 Applicant Certifications and Assurances ....................................................................................... 47 National Transit Database (NTD).................................................................................................. 48 Safety and Security ............................................................................................................................ 48 Federal Program Management References .................................................................................... 49 PROJECT APPLICATION ................................................................................. 51 General Instructions ......................................................................................................................... 51 Application Package.......................................................................................................................... 54



PART V.



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PART I. INTRODUCTION

A. Forward

The Public Transportation Division of the Arizona Department of Transportation (ADOT) administers the Federal Transit Administration (FTA) Non-Urbanized Area Formula Program, commonly known as the Section 5311 Program or as the Rural Public Transit Program. This program provides funds for public transportation projects and intercity bus projects serving rural areas. With these funds, the mobility needs of Arizona's rural population can be supported and enhanced. Section 5311 grants are intended to provide access to employment, education and health care, shopping, and recreation. This handbook is intended to inform the reader about the Section 5311 Program. It includes information on:             The purpose of the program Who is eligible for the program and expectations of applicants Program Administration Responsibilities of program participants How to apply for funding Support and resources available to program participants



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Handbook and Application   Section 5311 Transportation Program

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B. Using This Handbook

This handbook contains information you will need to apply for Section 5311 Program funds. It also is a reference for you to use in monitoring, administering, and working with the Public Transportation Division over the course of the year. It is divided into six parts: I. Introduction Key information on how to obtain information and apply for funding Detailed information on the program, what the funds can be used for, and responsibilities of the agency receiving the funds ADOT's role and responsibilities; Expectations of grantees and resources to use in monitoring your transit services. Detailed information on the program requirements Applications for capital, operating and administration assistance, along with instructions for completion. There are separate applications for new and existing grantees.



II. Program Description



III. Program Administration and Project Management IV. Federal and State Requirements V. Application Forms



Along with this handbook and application package, regional workshops will be held to provide an opportunity to answer specific questions and to provide more detailed information on changes in the program. This handbook contains information for existing participants to use in applying for grants for continued funding of existing projects. It also now includes information and a separate application for agencies that are considering applying for funds for the first time. For new applicants, a thorough reading of the handbook will provide information you will need to understand what is required of applicants, the responsibilities your agency will be assuming if selected as a grantee, and the expectations of each program participant. Existing applicants need to pay special attention to the Update portion of this introductory section as it identifies changes in the program that have occurred since the last application cycle. This will identify areas of the handbook where more detailed attention will be needed in preparing this years application. Other agencies that may provide technical or financial assistance in the area of rural passenger transportation include the rural Councils of Government (COGs) and the Metropolitan Planning Organizations (MPOs). See the State and Regional Program Contact list in this section for staff contacts, addresses and phone numbers of your local GOG or MPO. COGs and MPOs may also provide help to applicants in obtaining data and maps, coordinating with other agencies, and insuring public involvement.



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C. Providing Transit Services in Rural Arizona

The Section 5311 Program provides funding assistance to rural communities who wish to provide general public transit services to their residents. Eligible applicants include cities, towns, counties and Tribal governments or related Tribal communities that provide general public transit services. All projects require early, coordinated and comprehensive planning and they should involve participation by a variety of stakeholders. Projects receiving FTA Section 5311 funds are no different. This comprehensive approach is strongly encouraged at the federal and state levels so that transportation investments are maximized to provide the most effective and efficient use of resources. ADOT's Statewide and Rural Transportation Planning program provides assistance to local entities for initial transit planning activities or plans for growing and changing transit systems. Operating a general public transportation program requires local support from the sponsoring public agency and many sectors of the community. A Transportation Advisory Committee with representation from community stakeholders is required to provide input to the decision-making process, community support for the system, and oversight of the program. Coordination is a key to providing strong and effective transportation networks in communities. A comprehensive approach to planning and managing transit services will enable communities to identify how coordination would enable them to make the best use of their resources and strengthen their programs. The Public Transportation Division is strengthening its emphasis on coordination to reflect the changing federal emphasis. Arizona Rides is the state's new initiative to coordinate human service transportation and public transit services. Participants in the Section 5311 Program are expected to actively work to coordinate services with other local providers. A related initiative, the Governor's 2020 Aging Plan directs all State agencies to work together to address the senior population boom and the associated transportation needs. Many changes are anticipated in the next few years as governmental programs identify how to best provide coordinated services for both the general public and human service agency clientele. There are several transportation and social service programs to assist entities in meeting their community mobility needs. Many employment and social service programs also have transportation components, providing an incentive for communities to build a coalition of human service, business, and other stakeholders to develop a strong transit system. Together these programs and initiatives provide your community with a variety of ways to meet mobility needs. Not all programs are appropriate for all communities or agencies. A review of your community's mobility needs will indicate which programs are most appropriate in your community. The ADOT Public Transportation Division will continue to take a leadership role in coordinating transportation resources for employment services, for people with disabilities, and for seniors. As regulatory guidance on the new programs is available, the Public Transportation Division will work with Councils of Governments, Metropolitan Planning Organizations, municipalities, Indian Tribes, and local transit providers to implement these programs at a local level.



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ADOT encourages active transit systems to work with their local Department of Labor Jobs Programs, Department of Health and Human Services, Arizona Department of Economic Security Temporary Assistance to Needy Families (TANF), and local Area Agencies on Aging to coordinate local and regional transportation activities.



D. Contact Information

For inquiries regarding the Section 5311 Program Arizona Department of Transportation Public Transportation Division Attention: Sam Chavez, Program Manager 206 South 17th Avenue, Mail Drop 340 B Phoenix, Arizona 85007 Telephone: (602) 712-7465 Fax: (602) 712-3046 E-mail: schavez@azdot.gov



Web Site

A dedicated ADOT Public Transportation Division Website on the Internet can be accessed through the ADOT home page at http://www.azdot.gov/PTD/index.asp. At this address, readers will find a variety of resources. The website provides valuable resources for parties interested in learning more about ADOT's public transportation programs. It is also a primary source of information for participants in the Section 5311 program. This handbook is available on the website along with information on related programs and initiatives. Also, "hot-linked" access to numerous other local and national transit web sites, including the U.S. DOT/FTA web sites. Readers should periodically check this web site for Section 5311 and other ADOT Transit Program updates.



Civil Rights Administrator

All recipients of the Section 5311 Program are required to comply with the Civil Rights requirements. For more detailed information pertaining to the civil rights or disadvantaged business enterprise section of the application, you may also contact:

Arizona Department of Transportation Civil Rights Office Attention: Eddie Edison, Civil Rights Administrator 1739 W. Jackson, Room 127 Phoenix, Arizona 85007 Telephone: (602) 712-7761 Fax: (602) 712-8429 E-mail: eedison@azdot.gov



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State and Regional Contacts

Prospective Rural Public Transportation participants and those already participating in the Program may obtain planning assistance, demographics information, and information about other providers through the council of governments or metropolitan planning organizations in their region. CENTRAL ARIZONA ASSOCIATION OF GOVERNMENTS (CAAG) 1720 East Ash Street Globe, AZ 85502 Bill Leister (928) 425-3181 FAX: (928) 425-6450 CENTRAL YAVAPAI METROPOLITAN PLANNING ORGANIZATION (CYMPO) 7501 E. Civic Circle Prescott Valley, Arizona 86314 Jodi Rooney (928) 759-5516 FAX: (928) 759-3125 FLAGSTAFF METROPOLITAN PLANNING ORGANIZATION (FMPO) 211 West Aspen Flagstaff, Arizona 86001 Dave Wessel (928) 779-7685 FAX: (928) 779-7693 MARICOPA ASSOCIATION OF GOVERNMENT (MAG) 302 North 1st Avenue, Suite 300 Phoenix, Arizona 85003 Amy St. Peter (602) 254-6308 FAX: (602) 254-6490 NORTHERN ARIZONA COUNCIL OF GOVERNMENTS (NACOG) 119 East Aspen Avenue Flagstaff, Arizona 86001 Chris Fetzer (928) 774-1895 FAX: (928) 773-1135 PIMA ASSOCIATION OF GOVERNMENTS (PAG) 177 North Church, Suite 405 Tucson, Arizona 85701 Karen Lamberton (520) 792-1093 FAX: (520) 620-6981 SOUTHEASTERN ARIZONA GOVERNMENTS ORGANIZATION (SEAGO) 118 Arizona Street Bisbee, Arizona 85603 Richard Gaar (520) 432-5301 FAX: (520) 432-5858 WESTERN ARIZONA COUNCIL OF GOVERNMENTS (WACOG) 208 North 4th Street Kingman, Arizona 86401 Dave Barber (928) 753-6247 FAX: (928) 753-7038 YUMA METROPOLITAN PLANNING ORGANIZATION (YMPO) 502 S. Orange Ave. Yuma, Arizona 85364 Paul Melcher (928) 783-8911 FAX: (928) 329-1674

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E. Program Update

New and Continuing Applicants: Recognizing that different information is needed from first time applicants and that existing applicants provide the Public Transportation Division with ongoing data on their system performance, two separate application forms are utilized. Coordination: The emphasis on coordination has been strengthened at the Federal level and supported by the statewide initiative, Arizona Rides. The statewide initiative Arizona Rides is underway. Applicants should anticipate increased efforts to coordinate public transportation and human service transportation networks. At the State level, we will begin by providing additional support for your efforts to coordinate services with other providers. Safety and Security Compliance: As federal, state and local public safety organizations assess their capabilities to manage the new threat environment, so, too, must the public transportation industry evaluate and enhance its level of readiness. It is the goal of this program to provide transit managers with specific tools and resources to assist in the development of a practical and FTA compliant safety and security plan. Reporting Requirements: All systems will be required to report on a monthly basis its operating revenues and expenses, and system operating data. SAFETEA-LU: Updates within SAFETEA-LU for Transportation on Indian Reservations, JARC (Job Access Reverse Commute), and the New Freedoms Initiative have been defined. Applications for Section 5317 New Freedoms Program are available. Contact ADOT, COGs and MPOs for information. National Transit Database (NTD) Reporting Requirements: SAFETEA-LU has made it a requirement to provide rural transit data to the NTD. The NTD is the system through which the FTA collects uniform data needed by the Secretary of Transportation to administer department programs. Mandatory reporting, due to FTA October 28th of each year, requires each State DOT receiving funds under the Section 5311 program to submit an annual report for each Section 5311 transit agency. Each transit agency will provide an annual report to PTD not later than 1 September covering the period 1 July to 30 June containing information on their capital investments, operations, and service provided utilizing a fillable form that can be downloaded from the PTD webpage. FHWA Sliding Scale Match Ratio: SAFETEA-LU allows states eligible for the sliding scale match under FHWA programs to use that match ratio for section 5311 capital and operating projects. See page 24 for match ratios. Transit stops on State Highways/Routes: Beginning in fall, 2006, SB1166 now permits public transportation vehicles to stop on state highways/routes to embark and disembark passengers under certain circumstances that promote safe operations, through consultation of local transportation officials and ADOT.



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Five Year Plans: The five year plans will have specific accountability elements and appropriate analysis to support accomplishment of goals established by the transit managers and stakeholders. The Implementation Plan Matrix will include a detailed scheduled of activities, steps to accomplish tasks, responsible persons and completion dates. The Section 5311 Program timetable is identified in the table below. Please check the application form for the date in February by which applications are due to ADOT. FTA 5311 Budget Authorization Amount Guidelines / Application Distribution Applicants Conference Workshops Application Deadline ADOT Staff Review and Comments Comments due from COGs Review Panel Interviews Budget Negotiation Meetings Deadline for Budget Modifications Budget Application due to FTA ADOT notify Applicants of status Mail Contracts to Applicants Pre-Award Audits (if applicable) Contract must be signed by Secretary of State no later than Project Start-Up

*



January January January February 22 February March March April April June June June July September 30 October 1



Timeframes shown are typical and are subject to change. Applicants should inquire with the Section 5311 Program Manager regarding up-to-date scheduling changes and other details.



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Handbook and Application   Section 5311 Transportation Program

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PART II. PROGRAM DESCRIPTION

This section provides an overview of the program, describes eligibility and the applicant responsibilities. Finally, it identifies the basic project evaluation criteria, application review process, and appeals process.



A. Overview

Section 5311 is a grant program that provides funding for capital, administrative and operating assistance to eligible recipients for public transportation services in rural and small urban areas. Federal funds are apportioned among the States, which have the primary responsibility for administering the program. In Arizona, the Arizona Department of Transportation (ADOT) is the agency responsible for overall administration of the Section 5311 Program, which is also referred to as the Rural Public Transportation Program. The Public Transportation Division of ADOT administers this Federal program. These funds are available to non-urbanized or rural communities with a population less than 50,000 people. They are available on a competitive basis. Services must be focused on the mobility needs of the general public and are expected to be coordinated with human service transportation and other providers. The Rural Public Transportation Program funds transit systems operating in local communities or between rural communities and urban areas. Some services have been operating for many years, some have recently begun, and others are being instituted as pilot projects.



B. Program Purpose

The purpose of this program is to provide and strengthen the general public transportation services in rural areas and in communities under 50,000 in population. It is recognized that many rural Americans do not have access to an automobile and need transportation in order to access services, employment, and medical care. As part of the application process, specific criteria are described that guide the development of the program and are related to the broad goal of supporting effective transit services in Arizona's rural communities. ADOT is committed to assisting local communities build effective transit services through a combination of technical support, training, and funding to support the operating, administrative, and capital expenses of providing transit service. As part of this commitment, ADOT Public Transportation Division encourages coordination of services to facilitate the most efficient use of all Federal funds and local resources. In addition, the staff assists in the development and support of intercity bus transportation and in supporting the multi-modal transportation system that is economically efficient and environmentally sound.



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C. Applicant Eligibility

Eligible applicants for Rural Public Transportation funds include local public bodies (e.g., counties and municipalities), State agencies, Tribal governments and related Tribal communities, and private non-profit organizations. Municipalities and Tribal agencies that participate in local and regional transportation planning efforts are the most successful applicants in this program. Historically, involvement in multi-modal planning processes is a vital component in assuming funding and support. Organizations which are unsure of their status in this regard should check first with the Section 5311 program manager before submitting an application. Providers of special needs transportation (e.g., elderly or disabled clients) are eligible to apply. However, any service provided using program funds must be marketed to the general public as well. For this reason ADOT encourages such providers not to apply directly for 5311 funding, and coordinate with an existing general public provider. Private-for-profit operators, while not eligible applicants, may contract with eligible Rural Public Transportation grantees to operate such service. The terms "non-urbanized areas" and "rural and small urban areas" are used synonymously to mean any area outside of an urbanized area, as designated by the US Census Bureau. An urbanized area consists of a core area and the surrounding densely populated area with a total population of 50,000 or more, with boundaries fixed by the U.S. Census Bureau or extended by State and local officials. Areas not currently within the urbanized area are eligible for Section 5311 funding even if they are included within the metropolitan area-planning boundary, which includes the surrounding area expected to be urbanized within twenty years and/or the air quality non-attainment boundary. Since the goal of Section 5311 is to enhance access of people living in non-urbanized areas to activities, Section 5311 projects may include transportation to and from urbanized areas. Rural Public Transportation proposals must be for service in areas outside of "urbanized areas" as defined by the U.S. Census Bureau. At present, only the Phoenix, Tucson, Yuma, Flagstaff and Prescott urbanized areas are excluded from Section 5311 Rural Public Transportation eligibility. However, projects in the rural portions of Maricopa, Pima, Yuma, Prescott, and Coconino Counties may still be eligible for funding. Projects that receive assistance from the FTA Section 5307 Formula Program for urbanized areas are not eligible to receive 5311 rural assistance for the same service area Projects or portions of projects which tend to exclude certain portions of the general public of the project service area, or are intended to benefit a specific group to the exclusion of others, are not eligible for funding under this program.



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Handbook and Application   Section 5311 Transportation Program

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D. Project Eligibility

There are several categories of project eligibility.



General Public Transit Services

The primary use of the Section 5311 program fund is to support general public transportation services in communities under 50,000 and the rest of rural Arizona. To this end, a variety of operating, administrative, and capital expenses are eligible as described below.



Intercity Bus Services

In addition, this program also supports intercity bus services. These may operate between rural communities or between a rural community and an urban area. Fifteen percent of program revenues are targeted at these intercity services.



Pilot Projects

Based on request by the Arizona Legislature, Governor's Office, or ADOT management pilot projects may be considered by the Department that meet specific criteria. Concern has been expressed by a number of providers that critical gaps now exist in transit service in their communities and between these locales and their proximate urban centers. Services impacted include criticalpurpose trips such as those meeting medical, employment and nutrition needs. Projects demonstrating the viability of service that addresses these needs may receive focused attention. In order to increase the opportunity for early-phase success for a particular project, ADOT may elect to modify or waive certain performance and evaluation criteria. ADOT may also encourage applications for pilot/demonstration projects from other local governments participating in local area public transportation planning studies that have articulated significant unmet transit needs. Applications will be judged by the standard evaluation criteria and by how the following concerns are addressed in the planning process:       Area wide scope of plans, documenting demand by user group and/or trip origins and destinations. Coordination of planning and articulation of demand among governments, employers, businesses, social service agencies and user groups. Consolidation opportunities with social service transportation providers.



For three-year pilot/demonstration projects, local governmental agencies must be contract signatories with ADOT and be responsible for contract deliverables. Any new sub-recipient approved for funding will be considered a pilot or demonstration project. For projects requesting new service under the pilot program, ADOT will schedule a meeting to review the proposal. Based on unmet transit needs and budget availability, ADOT could implement the necessary plans to consider the applicant's request. After leaving the pilot program stage, the resulting transit service must continue to be managed by a local governmental agency if funded by ADOT through the 5311 Rural Public Transportation Program.

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ADOT reserves the right to conduct an overall evaluation to demonstrate viability for continuing operation under the 5311 program as defined by an IGA between ADOT and the community. These projects will need to meet all standards for the Section 5311 program for continued funding. For this grant cycle, there is no new allocation for pilot projects.



Coordination

Section 5311 funds may be used in conjunction with or to support services provided under a variety of human service initiatives. Services funded under these initiatives potentially include a large group of economically disadvantaged clientele. Applicants should work with local DES representatives to identify unmet transportation needs, investigate opportunities to coordinate service, and leverage funding opportunities available through these programs. Transportation services are crucial to enabling workers to access jobs and training programs. A responsibility of Section 5311 funded programs is to evaluate how well their current service delivery methods meet the needs of persons requiring employment transportation and consider modifications such as expanded hours of operation and individualized routes developed for welfare participants. Providing transportation services to welfare participants in rural communities throughout the State is both challenging and frustrating but with proper coordination, services can be provided in an efficient manner. Effective communication among human service agencies and transportation providers is critical to the coordination of transportation services. In some cases those in need of employment are often unaware of the transportation resources that are available and accessible within their own community. ADOT Public Transportation Division is taking a leadership role in coordinating transportation resources for welfare reform initiatives. In addition to FTA funding, funding is available under the Department of Labor (DOL) Jobs programs and Department of Health and Human Service (DHHS) Temporary Assistance to Needy Families (TANF), as described in joint guidance published by the DOT, DOL, and DHHS. One such program is the Job Access and Reverse Commute grant program, assisting States and localities in developing new or expanded transportation services that connect welfare recipients and other low-income persons to jobs and other employment related services. Job Access projects are targeted at developing new or expanded transportation services such as shuttles, vanpools, new bus routes, connector services to mass transit, and guaranteed ride home programs for welfare recipients and low income persons. Reverse Commute projects provide transportation services to suburban employment centers from urban, rural and other suburban location for all populations. Criteria for evaluating grant application for Job Access and Reverse Commute grants include:   Coordinated human services/transportation planning process involving State or local agencies that administer the Temporary Aid to Needy Families (TANF) and enabling workers to access training programs and employment activities, the community to be served, and other area stakeholders. Unmet need for additional services and extent to which the service will meet that need



 



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Project financing, including sustainability of funding and financial commitments from human service providers and existing transportation providers The participating entities share responsibility for ensuring that customers can access transportation services. Open market mechanisms give all providers an opportunity to participate and allow for cost comparisons so that purchasers can select the least expensive trip most appropriate to the customer's needs. Flexibility in using the available vehicles in a community so that the ability to transport people is not restricted by categorical claims to vehicles.



 



Other factors that may be taken into account include the use of innovative approaches, schedule for project implementation and geographic distribution. Specific efforts to promote communication with human service and job programs in your community, to design or modify services to better serve this clientele, and to access and leverage funding from human service or job programs should be identified in your application for Section 5311 funding. Describe the extent to which you coordinate transportation services with other transportation providers to reduce or eliminate duplication of services and maximize use of available resources. Letters of agreement with other agencies and contracts with private operators are good examples of coordination. The establishment of service contracts and coordination activities should be an ongoing and continuous activity of providers using FTA funds. Service plans must be reviewed with staff of the primary transit operator to ensure that there is no conflict. Assistance in establishing a coordinated system may be available from ADOT and your COG or MPO planner.



Capital Projects

Capital assistance includes the acquisition and improvement of public transit equipment and facilities needed for an efficient public transportation system. Examples of capital expenses are buses, vans, radios and communication equipment, vehicle rehabilitation, wheelchair lifts and restraints, passenger shelters, engine overhauls and special maintenance tools, operational support such as computer hardware/software and minor construction or rehabilitation of transit facilities. Another category of capital expenses is transit related "intelligent transportation system" (ITS) equipment (vehicle locator systems, scheduling and other information kiosks, etc.). This latter category is subject to a case-bycase review by ADOT.



Vehicle specifications:

Must be reviewed and approved by ADOT staff prior to purchase. See Capital Procurement Guide information under the "Procurement" section of this document for more information



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E.



Applicant Responsibilities



Successful applicants for Rural Public Transportation funding will be required to meet various local, Federal and State requirements. The local responsibilities are summarized below and are drawn from the Federal and State requirements. The Federal and State requirements are described in detail in Part IV of this handbook.



Local Stakeholder Involvement

Significant local support is required to develop and grow an effective transit system. The applicant is responsible for garnering support from a broad number of stakeholders   the local government, business community (employers, the retail sector, and the medical sector), agencies serving seniors and people with disabilities, and human service agencies. A Technical Advisory Committee (TAC) made up of these stakeholders is required to advise on service needs and monitor the provision of transit services. This TAC plays a key role in connecting the transit services with the broader community, coordinating services, and providing opportunities for public and private sector involvement.



Local Financial Support

Local financial support is also needed for an effective transit system. The standard Section 5311 program covers 58% of the subsidy needed to operate transit services, 80% of the cost of administering the service, and 80% of the cost of capital equipment. Local financial support is needed for the balance of the expenses. A higher ratio of Federal funds is available for capital projects under the FHWA sliding scale and STP Flex program but use will depend on the amount of funding requested. Much of this local financial support will come in the form of local government funding. When available, Local Transportation Assistance Funds II (LTAF II) is often used to match the Federal funds. In addition, revenues from advertising can be used to match Federal dollars. Some Federal funds can also be used as match, but whether or not a particular Federal fund source can be used as local match is determined by each specific Federal legislation. Older Americans Act Title III funds can be used as partial match. Similarly, Temporary Assistance to Needy Family (TANF) funds and Community Services Block Grant funds (CSBG) can be used as matching funds. In each case, the services provided must meet the transportation needs of the clientele of these programs. In the examples above, services must meet the needs of older adults, employment transportation needs, and low-income individuals. Additional detail on LTAF II and on using Federal funds for match can be found in Part III of this handbook.



Public and Private Sector Involvement

Local agencies must allow for active public involvement in the decision-making process. This is accomplished through the Transportation Advisory Committee and through the public decisionmaking process that is a part of local governments. Public hearings are required on certain aspects of the program. Local agencies must also involve the private sector in the decision-making process. The transportation network in rural Arizona includes both publicly funded services and private for-profit

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services. The private carriers most often serve inter-city needs or operate local taxi services. Both are valuable components of a comprehensive passenger transportation network.



Safety

A commitment to operating safe services is also needed. Drivers must be well trained. A drug and alcohol-testing program must be in place. ADOT will provide both financial support and training opportunities to assist local entities in meeting these requirements. However, it is important to realize that by participating in the Section 5311 program a commitment is made to provide for ongoing training for employees.



Reporting and Monitoring

Participants in the Section 5311 program are required to monitor and report on a variety of items, including ridership, revenues, total expenses, insurance certificate, actual maintenance cost, vehicle lien status, drug and alcohol testing policies, involvement of DBE, service coordination efforts, and Transportation Advisory Committee meeting minutes. Some reports are filed monthly and others quarterly or annually. See outline of contract deliverables at Part III, Section F.



Relationship to Federal and State Regulations

The above local requirements are identified in the Federal and State regulations that are outlined in Part IV of this handbook. In addition to reading the abbreviated summaries in this handbook, applicants are urged to read the FTA Program Circular and the applicable Office of Management and Budget Circulars for a better understanding of the Federal requirements. These are referenced at the end of the Part IV of this handbook and can be found at http://www.azdot.gov/ptd index.asp.



F.



Project Selection Process



This section provides a description of the project selection process, including the evaluation criteria, the review process and the appeals process. The application process, timeline, instructions, and forms are contained in Part V of this handbook.



Project Evaluation Criteria

Project evaluation criteria are identified for all projects. It is recognized that new systems may not start with the same standards as systems that have been in place for several years. The ADOT Public Transportation Division expects new systems to begin with a firm foundation and to steadily improve over the first few years of operations. The evaluation criteria continue to measure factors such as appropriateness of service, financial and managerial capability, and local commitment to transit.



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Read through the criteria carefully as some criteria have been adjusted so they are more measurable. Note that although ADOT has increased the emphasis on coordination by giving the category more weight, the criteria within this category have not been changed. During 2007 grantees will have the opportunity to take a more active role in coordinating services in their service area, participating with the Arizona Rides program, and the next grant cycle will reflect participation in these activities. For the project evaluation criteria below, applicants from existing programs will be evaluated based on current performance, financial management, and contract deliverables. New applicants will be evaluated based on estimated performance. I. Appropriateness and Effectiveness of Service 20 Points Maximum Provide otherwise unavailable transit services that are appropriate to the communities needs, are well used, and are provided in an efficient manner.   Type of service is suited to community characteristics and ridership levels.   Service indicators o Vehicle service miles and hours o Ridership levels o Passengers per mile and hour o Service miles per vehicle   Cost indicators (estimates for new applicants) o Cost per mile and service hour o Cost per passenger trip o Monthly fare revenues o Fare box recovery rate   Trip purpose and passengers served   Appropriateness of the routes and schedules to target riders   Service to populations that are disadvantaged, such as those with low levels of auto ownership or those with high levels of people who are elderly or have disabilities.   Number and types of local activity and employment centers served, including new developments. Coordination of Service 20 Points Maximum Maximize the use of available resources through coordination and joint planning with all service area transportation providers and human service organizations.   Level of coordination with 5310, human service agencies, and programs promoting employment and training within the proposed service area, which have transportation needs and/or currently, provide transportation services.   Level of coordination with local government agencies, county government agencies, and regional council of governments in needs assessment, transportation planning, and service provision. A coordination agreement is one way of illustrating the level of coordination.   Demonstration of actual or anticipated operating efficiencies, elimination of duplication of services and service extensions as the result of coordination with their providers or agencies. Demonstration of operating efficiencies produced should illustrate lower costs per unit of service.



II.



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With the passage of the Federal United We Ride initiative, increasing pressure is placed on state and local social service providers to assist in meeting the challenge of providing coordinated transportation services and employment transportation services. Demonstrate the level of involvement in coordinating public transit services, human service transportation, and employment transportation services. Agencies and organizations applying for funding are expected to coordinate their services with other transportation providers in their area, such as well as agencies who may be able to use or purchase the services provided by the applicant.



III. Financial and Management Capability 30 Points Maximum Demonstrate effective management and administration skills. This includes all aspects of transit service operation, financial management, and compliance with Federal regulations.             Qualifications and experience in transit or paratransit programs, as well as qualification and experience in grant administration, public service or governmental programs. Adequacy of management oversight and public involvement. What is the role and membership of the Transit Advisory Committee? Do goals and objectives address current issues? Are objectives measurable and achievable? Adequacy of marketing plans and strategy. Do materials communicate effectively with all key market segments, including those who are elderly, have low incomes, or have disabilities? Adequacy of maintenance program and performance. Is routine preventive maintenance provided and documented? Are problems with vehicles, including accessibility equipment, addressed in a timely fashion? Past performance of ADOT contract activities. Are invoices submitted on a timely basis? Are all requirements met? Demonstrate compliance with applicable State and Federal requirements, including nondiscrimination laws, statutes, and regulations. Assurance that persons employed and served by the agency are not discriminated against because of race, color, creed, sex, disability, age or national origin. Compliance with hiring, terminating, and promoting in accordance with Title VI, Civil Rights Act. Past Civil Rights or Equal Employment Opportunity complaints and the outcome of such complaints.



   



. IV. Local Commitment to Transit 15 Points Maximum Receive financial assistance for local transit operations and seek involvement in planning and policy decisions by local governments and community groups.   Financial support from local government, and local match available to meet or exceed requirements. Are adequate local matching funds available to replace vehicles in a timely manner? Local financial support includes LTAF II funding and/or other local funds.   Resolution of support from council of municipality served.   Participation in local transportation planning and policy decisions.



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Breadth of local financial base and success in working with local government, other providers, and other sectors of the community (human service organizations, education, employment and training, business community, etc.)



V.



Accessibility, Safety & Training 15 Points Maximum Provide service that provides safety to passengers and recognizes the needs of disabled and physically challenged patrons. Demonstrated competence in driver training and ability is required.   Awareness of the trip needs of people with disabilities in the planning and marketing of the service.   Accessibility of project vehicles and service. Are accessible features kept in good repair? Is there a back-up vehicle available when accessible vehicles need repair? Does the system comply with training and service provisions of the Americans with Disabilities Act?   Provision of efforts to assure drug and alcohol free workplaces and service.   Compliance with State and Federal substance abuse control measures.   Provision for training safety sensitive and supervisory personnel.   Relationship between your agency risk management and your transit system.   Attendance at ADOT sponsored training sessions and conferences



Application Review Process

An advisory review panel consisting of individuals with rural transit knowledge will interview each applicant. This panel consists of representatives of COGs, DES, Elderly and Disabled, and Tribal governments. ADOT ensures that the elderly and disabled are represented in the review panel. The panel will rank the applicants according to the evaluation criteria contained in this document. It is important that you refer to these criteria when answering the questions in the application. The panel will submit their recommendations to ADOT staff for review. Councils of Government will also review the recommendations and comment on each application received from their planning area. ADOT will consider COG comments and recommendations when reviewing applications for final funding. ADOT staff will discuss program issues with each applicant. Based upon the Application Review Process, ADOT will determine a fair and equitable distribution of available FTA funding using the following criteria: Program Maintenance, Program Growth, Capital Investment and Coordination. Program Maintenance   Maintain investment in administration and operations at least at the previous years allocations recognizing economic factors like inflation and conservation. Program Growth   Develop capacity for individual program growth to meet local community needs and state program growth to ensure new program entry based upon the application review process. Capital Investment   Provide long term program capacity to meet annual variations in capital purchases without impacting administration and operations budgets.



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The Public Transportation Section Manager and the Transportation Planning Division Director will approve final scopes and budgets.



Appeal Process

All applicants will be notified in writing of funding recommendations made by the Arizona Department of Transportation, Public Transportation Division (PTD). Applicants will be given the opportunity to appeal the funding recommendations. The applicant must use the following process to be recognized as a valid appeal. The letter of appeal must clearly identify the applicant, contact person, address, and phone number, project description and grounds for appeal. Letters of appeal must be postmarked by April 18, 2008 and mailed to Sam Chavez, Section 5311 Program Manager, Arizona Department of Transportation, 206 S. 17 Avenue, Mail Drop 340 B, Phoenix, Arizona 85007. ADOT will review the appeal and notify the applicant of the decision within ten business days. If the applicant is not satisfied with the Program Manager's response, an appeal may be made to the Public Transportation Division Director. This appeal must be submitted and postmarked within ten business days of the Program Manager's decision. The Public Transportation Division Director will provide a written response to the applicant within 30 days of receipt of the appeal to the Director's Office. A copy of the appeal must also be sent to the Sam Chavez, 5311 Program Manager.



G. Funding Local Transit Services

This section describes the funds that can be used to fund local transit services. Sources include local government funding (a key part of the funding picture), human service program funding, and a variety of Federal transportation funds. Each is described below.



Local Government Support

Local government financial support is a key aspect of developing and maintaining a strong network of community transit services. All applicants must obtain a letter or resolution from the mayor or municipal council of each municipality or Tribal government/Tribal community served by the project stating their position towards the project, and any levels of committed funding. In non-incorporated areas, similar documentation and information shall be supplied from the county. Applicants are strongly encouraged to provide the majority of their local match from local government(s). In light of the current levels of Federal funding and local financial participation, it is critical that local governments involve the transit system in their local multi-modal transportation process, consistent with the directives set by the Federal Transit Act. Applications lacking significant local public support generally do not receive as high a ranking as those with a solid base of local funding. This is even more critical in incorporated areas. Sources of local funds may include general fund dollars, LTAF II, farebox receipts, advertising revenues, dedicated taxes or levies for transit, or other similar local sources. As communities grow, reaching the 50,000 population level, it is critical that an adequate and stable stream of local financial support be provided.



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Other Funding Resources

In addition to the FTA programs, a variety of human service programs and employment programs can provide some support to the general public transit system, through service contracts or direct funding. In this section, the most commonly used funds are listed, starting with the FTA programs administered by ADOT Public Transportation Division. FTA Section 5310: Elderly Individuals and Individuals with Disabilities Program   This program provides vehicles primarily to private non-profit entities transporting individuals who are elderly or have disabilities. This program is focused on entities providing services to a specific clientele although vehicles can also be used as part of a coordinated system. A separate handbook describes this program in detail. ADOT Statewide and Rural Transportation Planning   ADOT administers a program to assist communities and rural regions identify transit needs, evaluate alternatives, and identify implementation plans to meet their transit needs. These funds may be requested in communities without transit service or in communities with services that are facing changing needs. Rural Transit Assistance Program   The RTAP program provides a variety of opportunities to learn about how to operate transit services in your community. A major focus is to provide training to eligible providers   from bus drivers to management   in the skills necessary to provide safe and effective services in your community. The training opportunities are available to eligible transit providers in the Section 5310 and 5311 transit programs. The specific program goals of the RTAP program are to:   Provide ongoing training opportunities statewide throughout the grant year.   Monitor and mentor in house training programs.   Set minimum required training standards for the rural transit providers. Job Access / Reverse Commute (JARC) - funds are targeted towards employment trips. The JARC grant program is intended to establish a coordinated regional approach to job access challenges. All projects funded under this program must be the result of a collaborative planning process. In the new highway and transit-funding bill, SAFETEA-LU, this program has been made a formula program with allocations for rural areas, small-urbanized areas, and large urbanized areas. The funds will be awarded on a competitive basis and all projects must be the result of coordinated human service program and public transportation program planning. New Freedom Program funds are also new to the recently passed highway and transit legislation. These funds are part of a broader initiative involving many Federal departments all working to integrate people with disabilities into the activities of community life. There is an emphasis on providing employment transportation and on using these funds to enable a region to provide a higher level of service to individuals with disabilities than required by the ADA. Older Americans Act Title III - These funds are used to meet the transportation needs of the elderly. Trips to congregate meal sites, doctors and grocery stores are commonly funded through this source. Coordinate with your local Area Agency on Aging to see if there are opportunities for coordination. Temporary Assistance to Needy Families (TANF) funds are another source of funding for employment trips or trips to training facilities.

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Indian Reservations Roads Program - Transit facilities within public lands, national parks, and Tribal lands are eligible to use this funding for public lands highways, park roads, and parkways, and Tribal reservation roads (Chapter 2, Title 23). These funds will be administered directly by the appropriate Federal land management agency (e.g., the Bureau of Indian Affairs for the Indian Reservations Roads Program), but must be included within the State Transportation Improvement Program [49 U.S.C. 5304(c) (6)]. In developing its 5311 application to the FTA, ADOT will evaluate the impact of any transit projects that tribal governments may have developed with Indian reservation road funds. STP Flexible Funds - Since 1999, the State Transportation Board has annually made available flexible Surface Transportation Program (STP) funds for transit projects throughout the State. The STP program is one of the programs within the Federal highway and transit-funding bill and is flexible   it can be used for transit capital in addition to roadways. The STP funds augment the transit programs administered by the Public Transportation Division, so they are available only to those municipalities and counties that are eligible to receive funds from the Federal Transit Administration (FTA). The match ratios for the STP Flex funds used in the 5311 program may be less than for other capital funds in the program. Distribution of funds will be based on the number of applications submitted and funds available and will be at the discretion of the Program Manager.



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PART III. PROGRAM ADMINISTRATION AND PROJECT MANAGEMENT



This part describes the responsibilities the ADOT Public Transportation Division (PTD) has in administering the program and the responsibilities of the grantees in managing the projects funded through the Section 5311 program. Detailed information is provided on planning, contracting, procurement, monitoring, and funding local transit systems.



A. Overall Program Administration

ADOT is the State agency designated by the Governor to administer the U.S. Department of Transportation's Section 5311 Transit Grant Program. ADOT receives a formula allocation of funds from FTA annually which is then utilized to administer the program. Program funds may be used for capital, operating, and administrative assistance to support eligible grantees. In addition to developing the annual Statewide Rural Transit Program application for submittal to FTA, the Arizona Department of Transportation (ADOT) administers the Program at a State level by performing the following activities:   Providing program information, planning, and technical assistance for project development, implementation and operation, and use of public transportation systems in rural and small urban areas. Documenting the State's procedures in the State Management Plan; developing project selection criteria; reviewing and selecting projects for approval; forwarding an annual program of projects and grant application to FTA; certifying eligibility of applicants and project activities; insuring compliance with Federal requirements by all sub-recipients; monitor project activity and overseeing project audit and closeout. Integrating the 5311 Program with other ADOT administered FTA Programs including the Section 5310, Rural Transit Assistance Program (RTAP), and the Transportation Planning Programs (Sections 5303 and 5304 Statewide Transportation Planning Program and the Metropolitan Transportation Planning Program). Monitoring the progress of each project through audits and site visit reviews. Maintaining current knowledge on Federal regulations and initiatives, passing on this information to grantees, and assuring that grantees comply with all program requirements.



 



 



   



B. Contracting

Each successful applicant, referred to as a grantee, will be awarded funds as part of an annual grant contract. ADOT enters into an agreement with each local sub-recipient stating the terms and conditions. This contract identifies the responsibilities of ADOT and the grantee, lists the performance expectations and contract deliverables, and includes all Federal requirements as described in Part IV of this handbook.



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Contract Effective Dates

Contract effective dates are from October 1 to September 30, which is consistent with the Federal fiscal year. Contracts and Intergovernmental Agreements must be signed and dated by the Secretary of State before October 1, of the contract year, for sub-recipients to officially request payment of eligible costs incurred beginning October 1. ADOT Public Transportation Division will not assume financial obligation or liability until the Secretary of State signs the agreement. As a result, it is important to have contracts signed by the grantee and returned to ADOT in enough time to allow for the Secretary of State's signature prior to October 1. Approved grantees are responsible for all expenses until the contract is signed. No Federal funds will be available until the contract is signed. Agencies which use local funds to cover expenses before the contract is signed need to be aware that these funds will not count toward their local match requirements for federal funds after the contract is signed. Per the contract, Section II (1.b.), ADOT has the authority to re-distribute funds, if the Agreement is not executed by the Secretary of State by December 30th.



Contract Clauses

The grant contract will contain all of the required Federal clauses, certifications, and assurances described in Part IV of this handbook.



C. Project Expenses, Revenues and Local Match Ratios

It is useful to begin with the basic terminology about expenses, revenues, farebox recovery ratios and matching ratios as they are used in both the grant application and the contract documents. The definitions on the following page explain the terminology used to describe project expenses and revenues. These definitions are then used in the following discussion of local matching requirements. The matching requirements are summarized in the following table and then each is described in more detail after the definitions. Minimum Local Share 20% 42% 20% 7% 0% Maximum Federal Share 80% 58% 80% 93% 100%



Project Administration Project Operating Capital (Section 5311)* Capital (Sliding Scale / STP Flex)* Training

*To be determined during budget negotiations



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Definitions

Operating Revenues - Operating revenues are monies derived from the project, which are returned to the operation of the project to offset operating costs. All fare box revenues paid by the riders (cash fares, fares from tickets, passes, etc.) are considered to be operating revenue and therefore cannot be used to satisfy local match requirements. Contract revenues derived as part of agreements with human service agencies will be considered local match as long as the fund source is local or state. If the source is federal, they will be considered as local match if allowed by the federal source. Effective with the passage of SAFETEA-LU, more federal funds can be used as match than previously allowed. Operating Expenses - Operating expenses are considered those costs directly related to system operations. At a minimum, the following items are considered as operating expenses: fuel, oil, driver's salaries and fringe benefits, dispatcher salaries and fringe benefits and licenses. Net Operating Expenses - Net operating expenses are those expenses that remain after operating revenues are subtracted from eligible operating expenses. Administration Expenses Eligible project administrative costs may include, but are not limited to: General administrative expenses such as salaries of the project director, transit manager and secretary Fringe Benefits Marketing expenses Insurance premiums or payments to a self insurance reserve Office supplies Facilities and equipment rental, Administering drug and alcohol testing Administrative costs shall not equal more than 40 percent of the total administrative and operating Federal budget. Capital Expenses - Capital expenses include buses, vans, radios and communication equipment, vehicle rehabilitation, wheelchair lifts and restraints, passenger shelters, engine overhauls and special maintenance tools, operational support such as computer hardware/software and minor construction or rehabilitation of transit facilities. A separate application must be submitted for capital items, reflecting estimated cost for requested items. All capital equipment purchased and operated with grant funds must be maintained in good operating order, and must be utilized for the purposes described in the grant application. Grantees are also expected to comply with procurement deadline requirements. See contract deliverables, Part III, Section F. Local Matching Funds - Local matching funds are primarily cash contributions from local or state sources. The local share may include: state or local appropriations, dedicated tax revenues, private donations, or net income generated from advertising and concessions.

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For administration and operating costs, certain forms of in-kind match (e.g., volunteer drivers) might be acceptable in lieu of cash. However, all in-kind match must be approved by ADOT, included in the contract, and thoroughly documented in the recipient's accounting system. Funds derived from purchase of service agreements are generally considered to be cash and used as local match. Such funds received pursuant to service agreements with a state or local social service agency or a private social service organization may be treated as local rather than Federal funds, even though the original source of such funds may have been another Federal program. Funds from other Federal programs may be used only if so authorized by the program. Examples of Federal programs where funds can be used as match are Older Americans Act Title III funds, Temporary Assistance to Needy Families (TANF) funds, and Community Services Block Grant funds. FHWA Sliding Scale Match Ratio - As authorized by SAFETEA-LU, Arizona is eligible to utilize the sliding scale match ratio under FHWA programs for Section 5311 operating projects and Section 5310/5311 capital projects. The sliding scale match allows identified states with large areas of public lands to request an increased federal share for their eligible transit programs. The Public Transportation Division has the option to use a 93%/7% match ratio for capital projects and a 58%/42% match ratio for operating projects based on the match rates in Section 120(b)(2) of Title 23 and the Federal-State match ratio agreement between FHWA and ADOT. Use of the increased federal share will be determined by assessing state need through applicant operating and capital funding requests and the forecast of new program starts against growing agencies moving into the 5307 program.



Administration Expense Match Ratio

The Section 5311 federal share may not exceed 80 percent of the net cost. Administrative assistance includes costs that support but are not directly related to system operations. Certain forms of in-kind match (e.g., a volunteer bookkeeper) might be acceptable in lieu of cash. However, all in-kind match must be approved by ADOT, included in the contract, and thoroughly documented in the sub-recipient's accounting system.



Operating Expense Match Ratio

The Section 5311 federal share for net operating expenses may not exceed 58 percent. Of the remainder of the deficit, 42 percent must be financed from sources other than Federal funds or revenues of the system (half of the local share must come from local funds). The other half of the local share may be made up of unrestricted funds from service agreements or other Federal programs, as described in the definitions section. Certain forms of in-kind match (e.g., a volunteer driver) might be acceptable in lieu of cash. However, all in-kind match must be approved by ADOT, included in the contract, and thoroughly documented in the sub-recipient's accounting system.



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Capital Expense Match Ratio

The entire local match for capital costs must be in cash. The Federal match share shall not exceed 80 percent of the net cost, unless the sliding scale match ratio is used. The Federal share may be 90 percent for vehicle related equipment required to comply with the Americans with Disabilities Act, as amended (ADA), or the Clean Air Act as amended. If STP Flex funds are awarded for capital projects, the match ratio may be 93% federal/7% local funds. ADOT will determine the final match ratio for any given capital project depending on the types of funds awarded, the number of applications, and the amount of funding requested.



Drug and Alcohol Compliance Match Ratio

Eligible Drug and Alcohol Testing expenses may be funded up to 80 percent federal share. Section 5311 sub-recipients are required to comply with regulations issued by the FTA Drug and Alcohol Testing Program.



D. Fare Recovery Program

ADOT does not have a specific farebox recovery requirement for this program. The requirement remains for operating funds to be matched, at the ratios described in the previous section, Systems may elect to administer a fare recovery program based upon its local needs. Systems are not required to charge a fare as long as match requirements are met. A reconciliation process at year's end will be employed to address shortfalls if a system cannot meet its operating match requirements. Emphasis in evaluation of any application will be placed on ridership trends, marketing efforts, and local commitments to encourage system utilization. See Part II Section F for specific evaluation criteria that may be used in the evaluation process.



E.



Reimbursement



All operating and administrative payments made under the Rural Public Transportation Program shall be on a cost reimbursement basis, up to the authorized amounts described in the sub-recipient's contract attachment B. Reimbursement will not be processed until all required information is provided in correct format. Each request for reimbursement must be accompanied by a reimbursement description, which will include information verifying the requested amount. Noncompliance with billing schedule could result in placing the agency in Category B, second tier projects that may not be recommended for immediate or full funding. Sub-recipients last contract month billing will not be processed until all administrative requirements are submitted. ADOT will not consider requests for prepayment of capital costs for rolling stock or other expensive items even if covering such a purchase would place a hardship on the applicant. No costs incurred prior to October 1, and ADOT's authorization to proceed are eligible for reimbursement, unless approved in writing by ADOT. All expenses incurred during the contract period must be paid by the contractor in full to be eligible for reimbursement by ADOT.



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Billing Schedule and Payments

Invoices are required for reimbursement of operating and non-operating expenses, along with a written explanation for capital and training expenses and must be submitted to ADOT on a monthly basis in formats prescribed by ADOT. At its option, the State may impose a 5 percent reduction of total Federal reimbursement per billing period for all billings or reports submitted more than 30 calendar days after the end of the monthly billing period. Final invoices shall be submitted up to 30 calendar days after the end of the final billing period, before becoming subject to late penalty. ADOT reimbursements of the total Federal operating expenses will be made based upon equal monthly allocations. Failure to comply with monthly billing submittal will result in ADOT contacting the grantees finance director if not resolved within 30 days. Billings are due the last Friday of the following month.



Program Timetable for Funded Projects

Failure to supply contract deliverables on time, as listed in the next section, could jeopardize full Federal funding requested for the project. Also, project-billing reimbursements will not be processed until all required information is provided in the correct format.



F.



Contract Deliverables



Successful applicants for Section 5311 funding will be required to submit a variety of contract deliverables. They are listed below, along with the due date. Product Updated Implementation Schedule from the Three Year Transit Plan Private Sector Policy Labor Protection Provision Information Certification of Supervisory Training for Safety Sensitive Employees Transit Advisory Committee Minutes Billings DBE Report Single Audit Report IGA Contract Capital Procurement Documents National Transit Database Report Due Date With application With application for continuing grantees August, prior to entering into contract. With application for continuing grantees January, April, July, October Last Friday of the following month, per contract May of the contract year Due 6 months after the transit provider agency's fiscal year end. Not later than 30 September Prior to Federal Funding Reimbursement 1 September



Three Year Transit Plan: An updated copy of the implementation plan schedule of the Three Year Transit Plan must be submitted with your application for continuing projects. New applicants will submit appropriate transit planning documents. The contents of the Three Year Transit Plan will form an integral part of the 5311 Rural Public Transportation Program application for current



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projects. These issues are further addressed in the application packet within this document. The implementation plan schedule will be discussed during the application interview.



SERVICE DEMAND & NEEDS ASSESSMENT

Service Area Characteristics Local activity centers Trip origin and destination data Changes and dynamics in area Service Design Routes Modes Accessibility Performance Standards ADA Compliance Cost/Revenue Factors and Forecasting Capital replacement costs Potential efficiencies Service change Local Government Involvement Financial Involvement/Support Coordination Opportunities Social service agencies Other transportation providers Marketing Component Advertising Surveys Outreach Economic Development Operational Monitoring Performance evaluation User data Maintenance planning Civil Rights o Title VI o EEO Report o DBE Opportunities (for sub-recipients who receive more than $250,000 exclusive of capital)



G. Project Management, Monitoring, And Reporting

Roles and Responsibilities

The grantee and staff of ADOT's Public Transportation Division have specific roles and responsibilities in ensuring the project is well managed, the monitoring systems are effective, and performance is routinely reported. The grantee has primary responsibility for management of the project. This includes assuring the transit service meets local transportation needs, is safe, is operated effectively and efficiently, meets performance standards, is coordinated with other agencies, and is marketed to the public and to human service agencies. In addition, the service must be operated in compliance with Federal and State regulations. The grantee is also responsible for identifying areas where technical assistance is needed in order to fulfill these requirements. The grantee also has primary responsibility for monitoring and reporting system performance on a daily, weekly, and monthly basis. In this section you will find resources to assist you in carrying out this task. ADOT's Public Transportation Division staff has two roles: providing oversight and monitoring for each Section 5311 project and providing technical support and assistance. It is recognized that

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operating effective transit services is a complex responsibility. Providing each grantee with the training and support needed for initiating and developing effective transit service is a role the Public Transportation Division staff takes seriously. Public Transportation Division oversight begins at the application and contracting process, assuring that all required information is submitted. Review of the monthly reports, invoices, and other contract deliverables are another area where ADOT monitors performance of the grantees. Public Transportation Division staff will participate in Transportation Advisory Committee meetings when possible. Finally, ADOT conducts site visits to observe the system and assure that the program is in compliance with all aspects of the Section 5311 program. Assistance and technical support can be obtained through the Public Transportation Division staff. In addition to being ready to answer your questions, an array of training and technical support services are available through the Rural Transit Assistance Program (RTAP).



In Good Standing:

It is the policy of the Public Transportation Division to administer state and federal grants in compliance with all appropriate federal and state regulations and use best practices of grant management of public funds and public accounting. Public transit systems, local governments, tribal governments, nonprofit organizations and for profit business, must maintain a status of "good standing" to receive grant funds.



Procedures for Determining "In Good Standing":

                Responsiveness to communications and request for information from ADOT. Maintenance of adequate financial records that document and support all grant expenditures. Submitting quarterly progress reports and invoices that are accurate and timely. Full participation in site visits with timely responses to any deficiencies that are noted during, and, or after the site visit. Submission of annual reports to ADOT to include audit documents, vehicle inventory, drug and alcohol reports, DBE, etc. Compliance with contractual obligations. Receipt of passing score on the recipient interview assessment conducted by PTD staff on recipients receiving public transportation grants. Satisfactory progress of the grant funded project.



Monitoring and Reporting System Performance

Grantees are expected to maintain records of ridership, service characteristics, maintenance activities, expenses, and revenues on a daily basis. This information is then tabulated for monthly and annual reports. Grantees report these statistics monthly, submitting reports with their monthly invoice. ADOT Public Transportation Division provides reporting formats for grantees to use as part of the contracting process.



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The information the grantee collects, monitors, and reports is that which is needed to monitor the performance of the transit service. Transit managers need to be assured that:     Drivers are well trained and this training is reflected in how they carry out their jobs on both a daily basis and in emergency situations; Vehicles are safe, well-maintained, and that costs for maintenance are appropriate. Grantees must document routine maintenance i.e., oil change, fluids, and tire condition and maintain the vehicle in accordance with the manufacturers recommended maintenance plan; Service is provided at appropriate levels, meets the needs of the community, and is accessible; and, Costs of operating service are reasonable and both revenues and expenses are in line with budget projections;



   



This information is gathered through regular reviews of all aspects of the system: collection and monitoring of data on ridership; service miles and hours provided; maintenance provided (both preventive and that provided in response to breakdowns); pre-trip vehicle inspections; and revenue and expense records. It also includes driver-training records, employee evaluations and "ride checks" of drivers in the field; customer complaints and compliments; accident report forms, and reports for the Drug and Alcohol testing program. ADOT Public Transportation Division maintains a variety of resources that can be modified for your system. The specific forms and how they are personalized for your system will depend on the type of services you operate.



Pre-Award Visits

ADOT will endeavor to perform on-site visits prior to contract execution for the purpose of determining fiscal and administrative capabilities of new applicants, and current applicants who have experienced difficulty in program areas.



Local Transit Advisory Committee

Successful new applicants will be required to establish a Transit Advisory Committee. Besides the Transit Manager, the committee membership must include representation from the elderly and disabled community, local business, city, town or county. Entities receiving funds through the Federal grant programs administered by ADOT Public Transportation Division are required to coordinate with human service programs to the maximum extent feasible. The Transit Advisory Committee can serve as the group to facilitate this coordination at the local level. Transit Managers are required to conduct meetings on a quarterly basis and submit minutes of the meetings to ADOT. Meeting topics should include, but not be limited to fare structures, monthly passenger statistics, training requirements, procurement, staffing issues, route structure, and any other transit concerns.



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Substance Abuse Compliance Audits

Consistent with FTA's oversight responsibilities, FTA has initiated a program of transit system audits assessing compliance with the drug and alcohol testing regulations (49 CFR Part 653 and Part 654). A team of FTA experts performs the audits. The audit is comprehensive in nature, including a review of each agency's policies, procedures and record keeping. ADOT will be working with the agencies and a consultant to prepare for these audits.



Project Monitoring & Site Visits

ADOT, as the administrative agent for Federal funds, is required to monitor grant sub-recipients for certain requirements on a regular basis. ADOT must determine if all activities, as specified in the 5311 Handbook and the contract, are being implemented. The reviews require detailed and comparative information from the transit provider regarding monthly billings, ridership statistics, funding, transit service operation and service provided to the elderly, disabled, and the general public. While these site visits will be conducted with a random schedule, barring unforeseen circumstances, ADOT will typically give sub-recipient agencies at least two weeks notice prior to their occurrence. ADOT will gather other information necessary to determine compliance with 5311 Rural Transit Program directives. Inspection of vehicle(s) will be performed during on site visits or more often if the inspection performed indicates that the equipment is being maintained poorly and is being operated in an unsafe manner. Inspections will include all major vehicle components and maintenance records, insurance policies, operation policies, training records and a ride along with an operator on a regular scheduled route trip. COGs will be available to assist agencies in this process. The review will also include, but not be limited to the following:                 Vehicle Maintenance Plan EEO Compliance Poster Civil Rights Compliance DBE Compliance Level of Assistance Provided by ADOT Vehicle Inventory Charter Bus Service Continuing Control of FTA Funded Facilities               Compliance with Drug and Alcohol Testing Program Financial Management Compliance with all Assurances signed by subrecipient Level and Quality of Transit Services Procurement Procedures Safety and Risk Management ADA Compliance



Continuing Control of FTA Funded Facilities When facilities are acquired, built, or improved for use by a Section 5311 grantee, ADOT will ensure satisfactory continuing control of the capital facility through the annual site visit process. ADOT will ensure that there is no degradation or failure to maintain the federal investment, that facilities are available to the public, and the grantee complies with ADA and federal requirements.



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H. State Financial Management

Each grantee is required to prepare an annual audit that complies with the Single Audit requirements. A copy of this must be submitted to ADOT Public Transportation Division. The FTA requires ADOT to perform financial audits of this program. In any given year, ADOT's auditor may request to examine the financial records of sub-recipients. Actions resulting from these recommendations are designed to ensure tighter budget-process control, asset inventory management and enhanced ADOT-FTA reporting capability.



I.



Coordination and Planning



The transportation funding bill, SAFETEA-LU, enacted in 2005, calls for State DOTs to undertake activities to ensure that maximum feasible coordination of transportation programs occurs in order to optimize Federal grant awards and requires that projects be included in a plan that coordinates public transit and human service transportation services. In Arizona, COGs are utilized to assist in regional screening of applicants annually, and to report to ADOT on any transit issues and regional transportation priorities, which may impact or require Section 5311 service. Rural COG involvement occurs, in part, through ADOT contracts with these regional planning agencies to perform transportation planning and vehicle inspection functions. Additionally, the FTA and ADOT have sought to enhance coordination activities, in part through regional FTA efforts seeking multi-State DOT cooperation and networking in developing coordination initiatives interdepartmentally within the various State DOTs.



J.



Transit Automated Program Systems



ADOT Public Transportation Division uses Transit Automated Program Systems (TAPS) to track vehicle assets and grantee financial and operating performance. Typical transit performance measures will include vehicle condition, transit agency performance statistics, and transit agency financial statistics. TAPS is used to monitor the status of vehicle liens and vehicle inspections. Inventories of 5311 vehicles are kept up-to-date via annual reports filed with ADOT, and incorporated into project database files for program management use.



K. Project Training Compliance

Training is an extremely important part of any transit program. Participation in ADOT sponsored workshops is included in the selection criteria and application. An effective training program must include driver training to ensure passenger safety, staff training to ensure that clients are handled in an efficient, firm, yet sensitive manner, and client training program procedures and "how to access the system".



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Driver training is the single most important tool that transit management has available to improve a system's operational efficiency, image, and risk management. Vehicle operators are the first and often the only personal contact that passengers have with the transportation system. Drivers should be familiar with the vehicles they operate, their driving habits, be knowledgeable of the system fare structure, transfer procedures, fare collection, correctly complete all required forms, safety and security, emergency and accident handling procedures, dealing with the elderly and disabled, CPR, first aid, and Passenger Assistance Service and Safety training (PASS). Consistent with industry standards, ADOT expects, at a minimum, a transit program to include the following training:                             Customer Service Employees must be familiar with the transit system's policies and procedures Safety and Security Emergency Preparedness and Evacuation Planning Pre-employment drug test (Employee cannot perform duties until test results are known.) Vehicle Pre-trip Inspection training Vehicle maintenance reporting procedures At least 24 hours of route introduction with experienced driver Passenger Service & Safety (PASS) Training First Aid and CPR training American with Disabilities Act (ADA), including service requirements All employees must receive at least one hour of training on the effects and consequences of prohibited drug use; pre-employment and drug/alcohol testing requirements. Defensive driving training (all employees) Dispatchers, at least 24 hours (OJT) training.



For additional information on program training requirements, contact Dan Harrigan, RTAP Training Coordinator at (602) 712-8232.



Rural Transit Assistance Program (RTAP)

A variety of training programs and resources are available to assist systems develop and maintain their training programs. The Rural Transit Assistance Program (RTAP) is a program designed to provide an enhanced level of training and technical assistance to 5310 and 5311 transit providers. RTAP is a funded nationwide technical assistance program that focuses on training issues. RTAP funding is allocated to ADOT for the development of training material and courses. Current RTAP projects include a resource library, scholarship program, networking meeting fund, annual conference costs, on site technical assistance as requested. ADOT provides a training budget for all approved Section 5311 projects, which is funded up to a 100% reimbursement. Reimbursement for training must be reflected in the monthly or quarterly billings. A brief Statement summarizing the type of training and expenses must be attached with the billing.



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L.



Procurement



Successful applicants are required to follow Federal and State procurement requirements, as outlined in the ADOT Public Transportation Division Capital Procurement Handbook. It outlines required and recommended procedures and other considerations for prospective purchases of rolling stock and other equipment. The ADOT document may be accessed through the following Internet address: www.azdot.gov/ptd.index/asp Grantees in the Section 5311 Program procure a variety of operating and capital items. In doing so, the purchasing policies must comply with a variety of regulations. There are no standard requirements for competitive procurements for any purchase. The recommended method identified by ADOT may be used as appropriate or a method established by your entity (City, County, Tribal government or related Tribal community) may be used when approved by ADOT. The sub-recipient must follow FTA Third Party Contracting Guidelines per FTA Order 4220.1D. When the subrecipient develops bid specifications they must be submitted to ADOT for approval prior to release for solicitations to potential bidders. Please also refer to Part IV, section F of this handbook for information on assuring contract opportunities are provided to Disadvantaged Business Enterprises. As guidance for capital procurements, a Capital Procurement Handbook was developed by ADOT to assist grantees under the Section 5311 Rural Public Transportation Program in meeting State and Federal requirements when purchasing vehicles and related equipment using Federal funds. The Capital Procurement Handbook http://www.azdot.gov/PTD/index.asp documents a step-by-step process for self-procurement of vehicles at the local level for the Section 5311 Program. Required forms must be completed before ADOT will approve reimbursement. Several overarching federal policies, as identified in Circular FTA C 4220.1E, apply to the procurement process:       While FTA will provide guidance, Federal agencies must refrain from "substituting their judgment for that of sub-recipients unless the matter is primarily a Federal concern." FTA relies on validity of each grantee's self-certification. General procurement standards that are applicable to all procurements include: Conformance with State and Local Law Must have contract administration system Must have written standards of conduct.   Competition must be full and open.



Sub-recipients are also encouraged to utilize piggybacking in the procurement process. This process allows the sub-recipient to purchase vehicles through an existing open contract established by another agency. Through this process the sub-recipient can obtain the benefits of volume purchases and the reduction in administrative workload and expenses. Guidelines and requirements for piggybacking are located in the Capital Procurement Handbook.



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Most standard state and federal procurement regulations are incorporated in local government purchasing policies and procurement procedures. These policies and procedures, under the direction of a local Finance Department and/or local legal counsel, should be coordinated with the information in the Capital Procurement Handbook. Grantees shall have written protest procedures to handle and resolve disputes relating to their procurements and shall in all instances disclose information regarding the protest to ADOT.



M. Vehicles

Funding

ADOT will continue to approve and reimburse for the purchase of any suitable bus or van. Any special vehicle equipment or options desired by the project, but not deemed essential by ADOT will be paid 100 percent by the project.



Leased Vehicles

ADOT has not historically participated in the leasing of project vehicles. Rural Public Transportation Program funding is approved on an annual basis and leases are typically made for five years. ADOT cannot guarantee Rural Public Transportation Program funding for additional program years or the life of a lease. Federal guidelines mandate that grant funds be expended in the most cost-effective fashion, which in most cases would be a direct purchase. For ADOT to consider participating in a vehicle lease, the applicant must demonstrate that the lease provides cost efficiency. This could include factors such as a lease incorporating both maintenance and insurance. ADOT may also require a project requesting leasing to request bids for private operation of the system. ADOT will not participate in a lease, which extends beyond the usable life of the vehicle based on average annual mileage.



ADOT Liens on Project Equipment

ADOT will retain a first lien equal to 80% (or its share in the purchase price if other than 80%) of the fair market value on all capital equipment purchased with Rural Public Transportation funds. Capital equipment is defined as equipment that has a unit value over $1,000 and is expected to last one year or more. Vehicle liens will be retained for a minimum of either:       4 years or 100,000 miles for vans (up to 15 passengers); 5 years or 200,000 miles for mini buses (up to 30 passengers); and 7 years or 400,000 miles for buses (over 30 passengers or 30 ft. vehicles).



Grant sub-recipients are expected to use the equipment up to its useful life or the duration of their contract. When vehicles have reached the end of their useful life or miles the grant sub-recipient is required to submit a lien release request to ADOT. Grantees cannot sell, discard transfer or dispose of equipment without a lien release approval from ADOT.

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N. Vehicle Liability Insurance

All sub-recipients must obtain and maintain adequate insurance as prescribed by the Arizona Department of Transportation insurance liability policy. The current minimum liability coverage required is based on vehicle size and is as follows: VEHICLE CAPACITY 15 passengers or less 16 passengers or more LEVEL OF INSURANCE COVERAGE $1,000,000 vehicle liability $300,000 uninsured motorist $5,000,000 vehicle liability $300,000 uninsured motorist



To comply with this requirement, the successful applicant will be required by August 15, 2008, to enclose a copy of an insurance binder indicating that the proper amount of insurance is held for each vehicle in the system; or alternatively provide evidence of a letter of intent to purchase insurance and a letter of acceptance by the insurance carrier. Insurance policies for vehicles must show ADOT as an "additional insured". Vehicles on which ADOT holds a lien must also show ADOT as "loss payee."



O. Driver and Vehicle Licenses

All successful applicants will employ drivers that hold a current and valid Arizona Driver's License. The ADOT Motor Vehicle Division requires licensing in keeping with their Commercial Driver's License Program as follows: Vehicles under 16-passenger capacity including driver:   Class D (Operator's) License Vehicles 16 passenger and over:   Class B or C Commercial License with bus/school bus endorsement   Class B or C Commercial License with bus/school bus endorsement ADOT encourages all agencies which have any vehicles in excess of 16 passenger capacity to have all drivers obtain a Class B or C Commercial License.



Drivers who currently have a Chauffeur's License may continue to use such a license until it expires. At that time, the appropriate above license must be acquired. Grant sub-recipients are also required to comply with Arizona laws in the licensing of all agency vehicles.



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PART IV. FEDERAL AND STATE REQUIREMENTS



As a Federal program, Federal legislation and a variety of Federal regulations form the foundation of how the Section 5311 program is operated. Arizona Department of Transportation (ADOT) has developed regulatory guidance on how some of these provisions are enacted in Arizona. In other cases, the requirement and language is straight from the Federal legislation and enabling regulations. In this section, the basic Federal and State requirements are summarized. In addition to reading the abbreviated summaries in this handbook, applicants are urged to read the FTA Program Circular and the applicable Office of Management and Budget Circulars for a better understanding of the Federal requirements. These references are provided at the end of the chapter. In Part V of the handbook, the Application Forms, applicants will see these fundamental regulations included in the application. As you complete the application, it may be useful to return to this section to get a broader understanding of the Federal or State requirement.



A. Federal Government Obligations to Third Parties

Sub-recipients must agree that without the Federal government's express written consent, the Federal government shall not be subject to any obligations or liabilities to any sub-recipient, any third party contractor, or any other person not a party to the Grant Agreement or Cooperative Agreement in connection with the performance of the Project. Notwithstanding any concurrence provided by the Federal government in or approval of any solicitation, sub-agreement, or third party contract, the Federal government continues to have no obligation or liabilities to any party, including the subrecipient and third party contractor.



B. Private Enterprise Involvement

Applicants must ensure that private-for-profit and private non-profit transit operators are given the opportunity to participate in the planning and implementation of the project to the maximum extent feasible. This includes soliciting private companies' participation in their planning process and encouraging private companies to actively participate in the planning process. ADOT encourages all applicants to fully utilize the resources and expertise of private providers such as taxicab companies, intercity bus operators and human service transportation systems, considering the capability of these firms to provide the needed service. Purchase of service agreements or contracts with private operators are an appropriate means of providing general public transportation service. Applicants should review local regulations to ensure that private companies are treated fairly. This includes revising or encouraging adjustments in local regulations to permit private companies to operate the applicants' services more efficiently.

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Applicants should periodically review their existing services to determine if private companies can provide parts of the service, or the entire service, more efficiently. Consider the total cost of providing transportation service when comparing public and private service proposals. The subsidies provided to public and private nonprofit transportation providers such as capital assistance grants, operating subsidies, and the use of public facilities should be reflected in the cost comparisons. Finally, applicants shall have a process in place to resolve disputes with private transportation providers. Documentation such as letters of support, formal agreements or minutes of meetings will assist the application. The application must contain a list and description of all transportation providers in the service area including the days and hours of service, number of passengers, frequency of service, fare charged, and area served. Requirements the applicant must meet related to private enterprise involvement are:   Provide Reasonable Notice to Private Operators. The applicant must provide reasonable notice to all transportation providers in the proposed service area to inform them of the project and ascertain whether the private providers could participate in the project. This is accomplished by publishing a public notice in a newspaper of general circulation and by writing letters to providers. Publish two notices of public hearings, one week apart. Schedule the date of the hearing at least five days after the second notice is published. The notice of the public hearing must include the name of the applicant, the time, date, and place of the hearing, an adequate description of the project, including the area to be served by the proposed undertaking, items to be purchased, constructed, etc. The grant proposal must be made available for public inspection. See Application Supplemental Materials for a sample Notice of Public Hearing. Send letters to each private provider describing the project and providing the notice of the public hearing. These letters must be sent via registered mail. The application must contain a copy of the notice of public hearing as published and a summary of the public hearing, together with copies of the letters sent, any exhibits and written statements submitted.   Privatization Policy. The applicant must submit a local privatization policy that includes a method of resolving disputes. New projects will write privatization policies as part of their contract activities. ADOT will provide guidance to projects on this task.



C. Public Involvement

All applicants for Rural Public Transportation Program funds must hold a public hearing. Public notices shall be published in the newspaper(s) having general circulation in the vicinity of the proposed undertaking. Any public hearings should be held at a place and time generally convenient for persons affected by the proposed undertaking. The site must be accessible to the elderly and persons with disabilities. Provisions should be made at the hearing for submission of written



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statements, exhibits, and oral statements. As appropriate to the ethnic makeup of the community, translators should be provided for non-English speaking persons at the hearing. A written summary of the oral proceedings must be prepared. (See Notice of Public Hearing in Application.)



D. Labor Protection Provisions

Section 13 of the Urban Mass Transportation Act of 1964, as amended, specifies that as a condition to any financial assistance, fair and equitable arrangements be made to protect the interests of employees of transit providers, which may be affected by the project receiving such assistance. Applicants shall either (1) execute the Special Warranty developed by the U.S. Departments of Labor and Transportation or (2) request and receive approval for waiver of the required protection from the Department of Labor. Successful applicants must provide the labor protection information required (see attached sample Listing of Recipients Eligible Surface Public Transportation Providers and Labor Representation for 13(c) in application) by no later than August in order to insure a fully executed contract by October first. ADOT is required (annually) to certify to the Department of Labor that 5311 agencies are in compliance with terms and conditions of the Special Section 13(c) Warranty.



E.



Audits of State and Local Governments



State agencies are responsible for: ensuring that audits are performed pursuant to the requirements of OMB Circular A-133, "Audits of States, Local Governments, and Non-Profit Organizations;" resolving audit findings; and bringing problems to FTA's attention. FTA does not require an annual financial audit of a sub-recipient when assistance is provided solely in the form of capital equipment procured directly by the State. If the amount of FTA funds granted to a particular sub-recipient does not trigger the requirement for an A-133 audit, the State may still request to review the total Federal funds received by an agency to determine if, in combination their total Federal funds from all sources exceed the threshold set at $300,000. At a minimum, ADOT requires sub-recipients to bring to the attention of the State any audit findings relevant to their use of FTA funds. The Single Audit Act provides that: The audit shall cover the entire operations of the transit agency and departments that received Federal financial assistance during the year. A series of audits of individual departments, agencies, and establishments for the same fiscal year may be considered a single audit. An independent auditor in accordance with generally accepted government auditing standards covering financial and compliance audits should conduct the audit. The Auditor shall determine whether:   The financial statements of the agency present fairly its financial position and results of its financial operation in accordance with generally accepted accounting principles.



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The agency has internal accounting and other control systems to provide reasonable assurance that it is managing Federal financial assistance program in compliance with applicable laws and regulations. The agency has complied with laws and regulations that may have material effect on its financial statements and on each major Federal assistance program.



 



The audits shall be submitted annually as part of the contract deliverables.



F.



Disadvantaged Business Enterprises (DBE)



A DBE is defined by the U.S. Department of Transportation as "a for-profit small business concern 1) that is at least 51 percent owned by one or more individuals who are socially and economically disadvantaged or, in the case of a corporation, in which 51 percent of the stock is owned by one or more such individuals; and 2) whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it." A "socially and economically disadvantaged individual" is further defined as any individual who is a citizen (or lawfully admitted permanent resident) of the United States and who is African American, Hispanic American, Native American, Asian-Pacific American, Subcontinent Asian American, a women, determined at be socially and economically disadvantaged by ADOT, or a member of an additional group designated as socially and economically disadvantaged by the Small Business Administration. The FTA states, sub-recipients who receive more than $250,000 in various forms of FTA assistance, exclusive of transit vehicle purchases, must have a DBE program Assurances: The contractor, sub-recipients (including vehicle awardees) or subcontractors shall not discriminate on the basis of race, color, national origin, or sex in the performance of this contract. The contractor shall carry out applicable requires of 49 CFR part 26 in the award and administration of DOT-assisted contracts. Failure by the contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy, as the sub-recipient deems appropriate. The Objectives of the DBE Program are: The Arizona Department of Transportation's policy is to ensure nondiscrimination in the award and administration of DOT-assisted contracts in its highway, transit and airport financial assistance programs. To achieve this, the agency will strive:           To create a level playing field on which DBEs can compete fairly for DOT-assisted contracts; To ensure that the DBE program is narrowly tailored in accordance with applicable law; To ensure that only firms that fully meet this part's eligibility standards are permitted to participate as DBEs; To help remove barriers to the participation of DBEs in DOT-assisted contracts; and To assist the development of firms that can compete successfully in the marketplace outside the DBE program.



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Sub-recipients of Rural Public Transportation funds should take affirmative steps to ensure that socially and economically disadvantaged business enterprises participate in the performance of contracts and subcontracts. This may mean as actual transportation service providers, or as suppliers of commodities or services needed in the operation of transportation service. Where the sub-recipient or subcontractor is found to have failed to exert sufficient reasonable and good faith efforts to involve DBEs in the work provided, ADOT may declare the sub-recipient or subcontractor in breach of contract. The ADOT Civil Rights Administrator files annual contracting activity reports to FTA. All subrecipients, even those not meeting the threshold, are required to calculate the DBE participation rate and submit these to ADOT. ADOT requires sub-recipients to obtain certifications from contractors that they are DBE, if applicable. All applicants who receive preliminary approval for their project must notify ADOT Civil Rights Office and inform them of all proposed contracting and purchasing opportunities in the project, and request the Program Administrator's assistance in locating and contracting with DES.



G. Civil Rights Requirements, Title VI

All sub-recipients of FTA assistance are responsible for compliance with all Civil Rights requirements applicable to transit related projects, including 49 U.S. 5332 (Nondiscrimination), Title VI of the Civil Rights Act of 1964, Equal Employment Opportunity (EEG), Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990 and Disadvantaged Business Enterprise (BE) program requirements. The sub-recipients also agrees to include these requirements in each subcontract financed in whole or in part with Federal assistance provided by FTA, modified only if necessary to identify the affected parties. The sub-recipient agrees that it will not discriminate against any participant, employee or applicant for employment because of race, color, creed, sex, disability, age, religion, or national origin. The subrecipient agrees to take affirmative action to ensure applicants and employees are treated without regard to their race, color, creed, sex, disability age, religion, or national origin. Such action shall include, but not be limited to the following: employment, upgrading, demotion or transfer, recruitment or advertising, layoff of termination, rates of pay or other forms of compensation; and selection for training. The sub-recipient also agrees to comply with any implementing requirements FTA may issue. The sub-recipient agrees to comply with the current DBE, EEO and ADA regulation requirements identified in the respective assurances enclosed in the application package. Failure by the sub-recipient to carry out the terms of the DBE, EEO and ADA program shall be treated as a violation of the Grant Agreement.



H. FTA Charter Requirements

Under FTA's charter service regulation, 49 CFR Part 604, sub-recipients are barred from providing charter service using FTA-funded equipment or facilities if there is at least one willing and able private

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operator. Sub-recipient must indicate in the application if they intend to provide charter service at anytime during the contract year. Procedures for determining if there are any willing and able operators are identified in 49 CFR 604.9 (b). This section requires a public notification process, which includes placing a notice in a newspaper of general circulation within the charter service area, with a copy to private charter operators in the same area. The notice must describe the charter service the sub-recipient seeks to provide, the days and time at which it will take place, and the type of vehicle that will be used. Requirements of the charter regulations are as follows:       A sub-recipient may provide charter service if there is no willing and able private charter operator. A sub-recipient may enter into a contract with a private charter operator to supply equipment or actually provide a trip if the private operator does not have the capacity needed for the trip. A sub-recipient may enter into a contract with a private operator to supply equipment for a particular trip if the private charter operator lacks equipment accessible to elderly and disabled persons. Sub-recipients in rural areas may petition FTA for an exception if the charter service that will be provided by private operators would result in a financial or other hardship for the customer. Sub-recipients should submit hardship exception requests to their FTA regional office. Sub-recipients may petition FTA for authorization to provide charter service directly to the customer when private operators are not capable of providing service for special events. Sub-recipients may provide direct charter service for tax-exempt nonprofit social service organizations that are contracting for service for disabled persons, is a sub-recipient of funds under certain U.S. Dept. of Human Health Services (USDHHS) programs, or is State certified according to a procedure set forth in the regulation. Sub-recipients in rural areas may provide direct charter service for tax-exempt social service agencies that are contracting for service for elderly persons. Sub-recipients may provide certain types of charter service when they have a formal agreement with local willing private operators. The sub-recipient must state in its annual charter notice that it wishes to provide specified types of charter service, and must obtain the written agreement of all willing and able private operators in its service area.



 



   



   



If a request to any charter agency results in a negative reply, the grantee must submit a request to ADOT for approval before providing the charter service. Monitoring of this rule will be included in the annual on-site-visit review. Trip records, contracts, income statements, and marketing materials will be reviewed for any evidence of chartering in the absence of authority to do so. Lack of compliance will result in disciplinary action and a plan of correction.



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I.



Intercity Bus



FTA identifies intercity bus service as regularly scheduled bus service for the general public which operates with limited stops over fixed routes connecting two or more urban areas not in close proximity, which has the capacity for transporting available. Package express service may be included, if incidental to passenger transportation. Commuter service (service designed primarily to provide daily work trips within the local commuting area) is excluded from the definition. While much of the public transportation service assisted under Section 5311 covers large distances because of the nature of the areas served, not all long distance trips are included in the definition of intercity service. Similarly, service that only stops at an intercity bus facility among other destinations within the city at either end of a route that covers a long distance, without regard to scheduled connections, is eligible for Section 5311 assistance as public transportation, but is not an intercity feeder service. A public entity operating or contracting for intercity bus service is not required to provide complementary paratransit service for individuals with disabilities who are unable to use the fixed route intercity bus service. Intercity bus service is a vital link between otherwise isolated rural and small urban communities and the rest of the nation. In recent years the major intercity carriers have abandoned many less productive routes. Patronage generated in rural and small urban areas, however, appears to be important to the continuing viability of the remaining intercity routes. One objective of the funding for intercity bus service under Section 5311, therefore, is to support meaningful connections between non-urbanized areas and scheduled intercity bus service in urban areas to more distant points. Intercity services accommodate baggage carried by passengers. Another objective is to support services to meet the intercity travel needs of residents in non-urbanized areas.



J.



School Bus Requirements



Under FTA's school bus requirements, set out under 49 U.S.C. 5323(f) and 49 CFR Part 605, sub-recipients may not engage in school bus operations exclusively for the transportation of students. These provisions derive from 49 U.S.C. 5302(a), which authorizes FTA assistance for mass transportation, but specifically excludes school bus service from such Federal assistance. Section 605.3 of the regulation allows grantees to provide "tripper" service, which is mass transit service modified to accommodate the needs of school students and personnel. Buses used in tripper service must be clearly marked as open to the public. These buses may stop only at a grantee's regular service stop. All routes traveled by tripper buses must be within a grantee's regular route service as indicated in their published route schedules. The purpose of this provision is to ensure that buses acquired with Federal assistance are clearly perceived by the public as available for their use. Moreover, Section 605.11 of the rule exempts a grantee from the prohibition on exclusive school bus operations if it engaged in school bus operations prior to August 1973 or if private operators are unable to provide adequate transportation. A request for such an exemption, with supporting documentation, should be sent to the FTA Administrator.



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It should be noted that even if a grantee obtains an exemption to engage in school bus operations, the Federal transit laws do not permit support of such operations with FTA assistance. Thus, the grantee cannot use FTA funded buses in its school bus operations, or service or maintain them in a FTA funded facility.



K. Federal Motor Carrier Safety Licenses

All non-municipal operators are subject to Federal Motor Carrier Safety Regulations. Contact the Federal Highway Administration, Office of Motor Carriers, 234 North Central, Suite 330, Phoenix, AZ 85004, (602) 379-6851.



L.



Grant Administration and Eligible Costs



As with all Federal grant programs, sub-recipients must comply with the following Office of Management and Budget (OMB) Circulars, and Presidential Executive Order 12372. Applicable Circular or Executive Order for State, Local, and Tribal Governments OMB Circular A-102 Uniform Administrative Requirements for Grants-In-Aid to State and Local Governments OMB Circular A-87 Cost Principles Applicable to Grants and Contracts with State and Local Governments Executive Order 12372 Intergovernmental Review of Federal Programs OMB Circular A-128 Audits of State and Local Governments Applicable Circular or Executive Order for Non-Profit Organizations Applicable Circular or Executive Order for State, Local, and Tribal Governments OMB Circular A-110 Grants and Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations OMB Circular A-122 Cost Principles for Non-Profit Organizations Executive Order 12372 Intergovernmental Review of Federal Programs OMB Circular A-133 Audits of Institutions of Higher Education and other Non-Profit Institutions



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M. Drug & Alcohol Requirements

The Drug-Free Workplace Policy is part of the Federal government's effort to eliminate the use of illegal and controlled substances from the workplace. This includes any substance that alters the senses or could affect one's ability to function in one's job. The regulations affect all Federal government agencies, their contractors and their direct grant sub-recipients and/or subcontractors.



ADOT and FTA Requirements

The Arizona Department of Transportation has adopted a Drug & Alcohol-Free Workplace Policy. In addition to the Department, sub-recipients which receive FTA funds must comply with the regulations contained in 49 CFR Part 40, procedures for transportation workplace drug testing programs and 49 CFR Part 655, Prevention of Alcohol Misuse and Prohibited Drug Use in Transit Operations. Safety sensitive functions are defined as those employees who operate revenue vehicles (whether or not in revenue service), operate a non-revenue service vehicle when required to be operated by a holder of a Commercial Driver's License, control the movement or dispatch of the vehicles, and maintain vehicles (unless in the case of the Rural Public Transportation programs 5311, 5307 or 5309 in an area less than 200,000 in population and contracts out such services), security personnel who carry firearms, and supervisors who could perform any of the above responsibilities. The Implementation Guidelines for Drug and Alcohol Regulations in Mass Transit updates the document revised in August 2002 (FTA-OH-26-001-94-1). The revised Implementation Guidelines summarize and interpret Part 655. The Implementation Guidelines and the Best Practices are intended to be used together. The Implementation Guidelines communicates to readers the requirements and the Best Practices explain compliance. To obtain a copy of The Implementation Guidelines for Drug and Alcohol Regulations in Mass Transit, go to http://www.transit_safety.volpe.dot.gov



Grantee Requirements

FTA requ