14-008 Code Vt. R. 14-010-008-X

Current through August, 2024

Section 14 010 008 - RULE FOR PUBLIC TRANSIT SUBSIDY PROGRAMS

Section 7.10 PURPOSE

The purpose of this rule is to define the policy, procedure and criteria adopted by the Agency of Transportation in accordance with 24 V.S.A., Chapter 126, Subchapter 2, Public Transit for apportioning State funds appropriated to the Agency of Transportation for subsidy support to public transit services in all areas of the State and for apportioning Federal funds made available to the Agency of Transportation by the United States Department of Transportation through 49 U.S.C., § 1614, SECTION 18 Formula Grant Program For Areas Other Than Urbanized Areas of the Urban Mass Transportation Act of 1964, as amended, for subsidy support to public transit services in rural areas of the state. An enterprise conducting public transit services is eligible for subsidy support when enterprise income attributable to public transit operations falls short of enterprise expenses attributable to public transit operations. The rule encompasses definitions, eligible categories of assistance, prerequisites of eligibility, apportionment policy, apportionment mechanism and general application procedures.

Section 7.20 DEFINITIONS

Annual Passengers: Verifiable number of passengers developed by public transit services as defined in this rule during the most recent twelve month period preceding an application for assistance; does not include passengers developed by single-ride taxi, charter or exclusive school bus transportation.

Charter Service: Transportation service provided in a vehicle licensed to render that service and engaged at a specified price, rate or fee for a specific period of time, usually on a reservation or contractual basis.

Demonstrable Need: The annual financial deficit resulting from public transit operations over the period of a twelve month fiscal year calculated as follows:

Demonstrable Need = All Expenses Attributable to Public Transit Services-(All Income Attributable to Public Transit Services + Unencumbered Cash Assets).

Dial-A-Ride: Transportation operation designed to carry multiple passengers on a collective ride basis from their origins to specific destinations (generally door-to-door) either on an [advance (e.g. 24 hour) reservation] ad hoc or subscription basis.

Existing Projects: Public transit systems that have received State or Federal DOT operating subsidy support for public transportation services during the 12 month period preceding an application for continuing assistance.

Fixed Route Service: Public transit service operated over a set route or network of routes on a regular schedule.

Formula Funding: Funding made available to the state through Section 18 of the Urban Mass Transportation Act of 1964, as amended.

Jitney Service: Transportation service operated over a fixed route on a flexible schedule, picking up and discharging passengers on demand.

Local Match: Non-Federal cash and in-kind contributions provided by grantees, sub-grantees or third parties in satisfying cost sharing and matching requirements of the United States Department of Transportation.

Local Public Body: For purposes of this rule a unit of government constituted in accordance with Vermont law as a municipality, regional transportation authority or regional transportation district.

Net Deficit: Attributable costs minus attributable revenue for an eligible expense category during a fiscal period.

New Public Transit Service: Any eligible public transit service not previously provided.

New Projects: Public transit systems in the initial stage of service implementation and not previously receiving State or Federal DOT operating subsidy.

Non-Profit Public Transit System: A domestic corporation organized in accordance with 11 V.S.A., Chapter 19 having the majority of its governing board appointed by the legislative body of the municipality or municipalities served, and a function of providing a public transit service or a foreign nonprofit corporation located in a state which borders Vermont and provides public transit services in both Vermont and bordering state.

Paratransit: Transportation services, provided through flexible scheduling or routing in small vehicles, including ridesharing, dial-a-ride, jitney, airport limousine, subscription and route-deviated bus services.

Population Served: Latest U.S. Bureau of Census population figures or most recent Vermont Department of Health population figures for a community served by local public transit services.

Public Transit Service: Any fixed route, paratransit, transportation brokerage, user-side subsidy, and/or ride-referral/ride match program which is available to any person upon payment of the proper fare, and which is promoted to be available to all members of the public, including those with special needs. "Public" in this sense refers to the access to, not ownership of, the service. Specifically excluded from this definition are services which are reserved for the private or exclusive use of one individual, group or group of individuals such as single-ride taxi, charter and exclusive school bus transportation.

Public Transit System:

(A) a transportation authority as provided by No. 122 of the Acts of 1973;

(B) a transit authority or transit district as provided by 24 V.S.A., Chapter 127;

(C) any municipal transit system, or any nonprofit public transit system.

Regional Passenger Transportation Development Plan: A plan prepared by a regional working group and, as proposed or as amended, by regional planning commissions to determine the direction of public transit services for a five-year period.

Ride-Referral/Ride-Match Services: A non fare telephone based service for arranging rides.

Ridesharing: A form of transportation in which more than one person shares in the use of the vehicle, such as a bus, van or automobile, to make a trip.

Route Deviation: A hybrid transportation service under which vehicles may deviate from a fixed route, upon request, to provide demand responsive service within the immediate vicinity of the fixed route.

Rural Public Transit Services: Local public transit projects and services outside the designated urban area which are eligible for Federal Section 18 Formula fund assistance.

Shared-Ride: Service in which individuals cannot reserve a trip for their own private use.

State Revenue Funding: State funding authorized by the Legislature as grant assistance for Public Transit Services delivered by public transit systems.

Subscription Bus: A service in which routes and schedules are prearranged to meet the specific travel needs of riders who request the service in advance; the level of service is generally higher than that of regular passenger bus service (fewer stops, shorter travel time, and greater convenience).

Transportation Brokerage: Matching the most appropriate services and providers to individual markets.

User-Side Subsidy: A direct subsidy to transportation users which allows them to select the service they prefer.

Section 7.30 ELIGIBLE ORGANIZATIONS

Public transit systems as defined herein are eligible for state revenue funding subsidy support for public transit services conducted in any geographical area of the state and for formula funding subsidy support for public transit services conducted in rural areas of the state.

Legally constituted private-for-profit companies are eligible for subsidy support when operating under a contract to provide public transit services with a public transit system, such funding to be provided through the public transit system. Applicants that are not local public bodies will make provision for a fair and timely opportunity for the community or communities served, or to be served, to participate in the planning and implementation of the transportation services, specifically in the type, nature and extent and quality of the services. Transportation services that compete with those of established private-for-profit transit or paratransit providers are not eligible for subsidy assistance. In addition, applicants for subsidy assistance must afford private-for-profit transit and paratransit providers fair and timely opportunity to participate, to the maximum extent feasible, in the planning and provision of the proposed transportation services.

Section 7.40 ELIGIBLE CATEGORIES OF SUBSIDY ASSISTANCE

7.401 State Revenue Funds: Subsidy assistance is available based on the demonstrable need of the enterprise for financial assistance to conduct public transit operations, however, no public transit system shall receive State revenue funding in excess of fifty percent (50%) of the eligible operating expenses applicable to the public transit services proposed for state funding assistance. State Revenue Funds are eligible to be used to match federal subsidy assistance for public transit services.

7.402 Section 18 Formula Funding: Subsidy assistance is available based on the demonstrable need of the enterprise for financial assistance to conduct public transit operations in other than urbanized areas. The eligible categories of assistance and local match requirements, unless stipulated otherwise in Federal program rules and regulations, are as follows:

Expense Category	Subsidy Assistance	Minimum Local Match Requirement
Capital	Up to but not to exceed 80% of Net Deficit	20%
Administrative	Up to but not to exceed 80% of Net Deficit	20%
Operating	Up to but not to exceed 50% of Net Deficit	50%

7.403 Subsidy assistance is not available for services which are reserved for the private or exclusive use of one individual or group of individuals, such as single-ride taxi, charter or exclusive school bus transportation. Transportation services not eligible for subsidy are a local expense. Revenues from non-eligible transportation services should be sufficient to cover the fully allocated costs of providing those services. Revenues from non-eligible transportation services surplus to the amount necessary to cover the fully allocated costs of providing those services may be used as local match for Federal public transit services subsidy.

Section 7.50 PRE-REQUISITES

7.511 Compliance with a regional transportation development plan. Further, when the transportation element of a regional plan prepared in conformance with the provisions of 24 V.S.A. Subparts 4302 and 4348 is adopted after July 1, 1991, public transit services within the region must be in compliance with the regional plan, in order to be eligible for state assistance; provided however, that if the regional plan has been disapproved under the provisions of 24 V.S.A., Subpart 4476, that compliance shall not be required.

7.512 Assurances that all public transit facilities and services are accessible to the disabled or a plan for public transit facilities and services to be accessible by disabled persons.

7.513 For new services, a plan for the proposed area of service to include an analysis of needs; an operating plan to meet needs, and a budget and timetable for implementation. The plan will clearly state why the service is the best suited in comparison with other alternatives for meeting the needs of the area and to what degree the service will be coordinated with other public transportation services.

7.514 Approval of AOT to be included in an Annual Program of projects.

7.515 Projects in the Chittenden Urbanized area must be included in the Transportation Improvement Plan for the area as approved by the Chittenden County Metropolitan Planning Organization.

Section 7.60 APPORTIONMENTS OF FUNDING

As approved by the Agency of Transportation, funding for both the State Revenue and Section 18 Formula funding programs will be made available based on the level of estimated demonstrable need as indicated by a total enterprise budget which delineates anticipated public transit revenue and expenses for the anticipated project period. State Revenue funds for existing projects and Section 18 Formula funding for existing and approved new projects will be apportioned based on the procedure in Section 7.70.

State Revenue funding for approved new projects is based on the following. Up to, but not to exceed, ten percent (10%) of the State Revenue funds appropriated in a State fiscal year shall be available to approved new projects. Approved new projects which receive grants from private-for-profit or private non-profit organizations for the provision of new public transit services shall receive priority consideration for funding and shall be eligible for matching grants on a dollar for dollar basis from the State for the first year of operation of the services insofar as such funds are available, not to exceed the ten percent (10%) reserve.

After the priority distribution, remaining balances of the 10% reserve will be apportioned to approved new projects as requested. If the the remaining ten percent (10%) reserve is not adequate to meet the need identified by all approved new projects, funding will be apportioned pro-rata, e.g. distributed proportionately according to the estimated need of all approved new projects.

Any remaining balance of the ten percent (10%) reserve not required for approved new projects shall be distributed to existing projects based on the procedure in Section 7.70.

Section 7.70 DISTRIBUTION MECHANISM

State Revenue and Federal Section 18 formula funds made available to the Agency of Transportation will be allocated to approved applicants within each funding program by the Secretary of Transportation on the basis of estimated demonstrable need within the following general guidelines:

7.71 An applicant's enterprise wide budget which clearly delineates anticipated public transit revenues and expenses will be reviewed to determine the applicant's estimated demonstrable need.

7.72 Based on the total amount of estimated demonstrable need in all applications for assistance received before an announced due date the Agency will determine Statewide level of estimated demonstrable need for State Revenue funding and the estimated demonstrable need of rural systems for Federal Section 18 formula funding for the program project year.

7.73 If adequate State Revenue and Federal Section 18 formula funding exists to meet the estimated demonstrable need identified in part 7.72 of this rule, funding shall be apportioned within each program as requested.

7.74 If adequate total State Revenue and Federal Section 18 formula funding does not exist to meet the need identified in part 7.72 of this rule, funds will be apportioned pro-rata within each program, e.g. distributing the funding proportionately according to estimated need to all organizations approved for participation in each program.

Section 7.80 GENERAL PROCEDURES

7.81 Annually each eligible grantee shall prepare a project plan to include necessary program information and assurances of compliance with applicable State and Federal laws, rules and requirements. The project plan shall also contain, at a minimum:

7.811 A description of the organization.

7.812 The types of services to include the routes, hours and frequency of services.

7.813 Evidence that proyision was made for the community or communities to be served to participate in the planning and implementation of the transportation services.

7.814 A complete enterprise budget for the fiscal year clearly delineating anticipated public transit revenues and expenses as well as the source and nature of other enterprise income and expenses and unencumbered cash assets.

7.815 Statistical information to include population of communities served by public transit services, annual public transit passenger volumes and any other detail required to be furnished by State or Federal program requirements.

7.816 The plan will be of sufficient detail to permit the Agency of Transportation to evaluate the annual program.

7.82 Approved applications will be included in a State program of projects for public transit and for those involving Section 18 formula funding, submitted to the U.S. Department of Transportation for final approval.

7.83 Funding will be paid to grantees within the terms and conditions of a contract with the State. State Revenue funds will be paid on a semi-annual payment basis, the first payment immediately upon full approval of the contract by the grantee and the State and the second payment to occur at the start of the third quarter of the state fiscal year.

Section 18 formula funds will be paid to grantees on a reimbursement of expense basis.

7.84 The Agency of Transportation will require the grantee to provide an independently performed post project audit in accordance with existing State and Federal audit policy, or, at the Agency's option, the Agency may conduct, or cause to be conducted by an independent accounting firm, such an audit. The cost of the audit will be paid by the grantee and is an eligible program cost.

7.85 At the conclusion of the project and in conjunction with the post audit, the grantee will provide a verifiable statement of actual demonstrable need pertaining to the project period. Federal and State funding paid to the organization and which is surplus to the grantee's demonstrable need will be returned to the State within thirty (30) days of the state's acceptance of the post-project audit.

14-008 Code Vt. R. 14-010-008-X

Effective Date: July 13, 1991 (SOS Rule Log #91-39)

Statutory Authority: 24 V.S.A. C. 126