California Department of Transportation (Caltrans)

Section 5311 Grant Application

September 28, 2010

Why update FTA Section 5311’s application?

• During the FY 2010 State Management Review, it was found that FTA 5311 program needs to strengthen its policies and procedures to ensure that subrecipients are in compliance with all FTA and State requirements.

Applications were updated to help facilitate the program management and FTA/State oversight.

FTA Section 5311 Applications

• Operating Assistance• Capital (Vehicle & Equipment)• Capital (Construction/Real Estate

Acquisition)

We’ve decided to divide applications into three segments based on the type of the project, operating assistance, capital (vehicle & equipment) & capital (construction & real estate acquisition). The reason for the division is each category has its own requirements that subrecipients must meet. For example, only for capital projects, subrecipients must hold public hearing to receive comments from the public on the proposed project, etc. (Per FTA C 9040.1F IV, 3 & Title 49 U.S.C. 5323(b))

What has been updated on FY 2011 FTA Section 5311 Application?

• Project Description• Project Budget Worksheet• Project Budget• Coordination of Services with Social Service Agencies• Transit Security and Emergency Preparedness• Optional Enhancements for Vehicles/Equipment• Authorized Resolution• Bid Related Documents/Checklist• IT/ITS Compliance Plan• Maintenance Plan/Checklist

Project Description

• Instead of narrative that requires a lot of writing, we are now moving towards yes/no questions, multiple choice questions, filling in tables/charts, and short paragraphs.

In prior year’s application, we required subrecipients to write a page or two pages narrative to describe the proposed project. We often had difficulties reading through the entire narrative to look for the important information, such as “Does the subrecipient serve the general public,” “Are 5311 funds spent in rural area only?’ and so forth. With the questionnaire format, subrecipients can save time because it doesn’t require a lot of writing, and state can also cut down the application review time.

Project Budget Worksheet

Per OMB Circular A-87 and 49 CFR 18.20, State is responsible for:

• Determining the allowable costs incurred by subrecipients under grants, cost reimbursement contracts, and other agreements.

• Reviewing expenditures and/or outlays with budgeted amount for each standard agreement.

How are we supposed to determine the costs?-Caltrans has developed “Project Budget Worksheet for Subrecipient” and the “Project Budget Worksheet for Third Party contractor” for subrecipients to itemize the costs related to the project. Subrecipients are required to fill out both worksheets (subrecipinet-mandatory & third party contractor-if the subrecipient is contracting with a third-party contractor) in the application. What are the allowable/disallowed costs?

Allowable costs are (Per 5010.1D Section VI-5.b.):1.Necessary and reasonable for proper and efficient administration of the grant. 2. Authorized under State and local laws and regulations 3. Able to conform to any limitation or exclusions set forth in federal laws 4. Consistent with policies, regulations, and procedures that apply uniformly to both federally assisted and other activities of the unit of government of which subrecipient is a part5. Treated consistently 6. Determined in accordance with generally accepted accounting principles (GAAP) 7. Not allocable to or included as a cost of any other federally financed program in either current or prior periods 8. Adequately documented 9. No incurred prior to grant award unless specifically provided for in a letter (pre-award authority)Disallowed costs are (5010. 1D. VI -5.c):1. Any projects costs incurred by the subrecipients prior to the date of the approved grant, unless specifically provided for in a letter (pre-award authority) 2. Any costs attributable to goods or services received under a standard agreement that is required to be, but has not been, concurred in or approved in writing by State

Project Budget Worksheet - ContinuedExample of Eligible Operating Assistance Expenditures:

• Fuel and Lubricants – Gas, Diesel, bio-diesel, CNG, oil, and grease consumed by vehicles providing transportation services.

• Insurance – Vehicle insurance expenses accrued during the specified time period.

• Vehicle Maintenance – Routine vehicle maintenance and repairs that are not capitalized by your organization. (New engines and complete vehicle restorations and refurbishments that substantially extend the useful life of the vehicle should not be included. Those items should be requested through a capital grant application.)

Example of Ineligible Operating Assistance Expenditures:

Depreciation on vehicles purchased with federal or state dollarsExpenses associated with charter and school use for vehiclesExpenses associated with services not open to the general publicCosts associated with expenses incurred for timeframes outside of the stated operating period (such as pre-paid insurance coverage, etc.)Any costs associated with the project that are not in compliance with FTA and State’s requirements

Project Budget Worksheet - Continued

Example of Eligible Operating Assistance Expenditures:

• Contracted Services – Expenses that are paid to outside sources/vendors to provide the services in lieu of subrecipient’s employees performing the activity.

• Labor and Benefits – Wages, salaries and fringe benefits paid to employees such as drivers, dispatchers, and shop mechanics.

• Administrative Expenses – Salaries and related benefits of those employees who perform administrative/clerical duties, and other non-salaried administrative expenses incurred to support a project.

Project Budget Worksheet - Continued

Example of Eligible Capital Expenditures:

• Purchase of vehicles such as buses and vans • Purchase of communication equipment such as radio• Purchase of wheelchair lifts and restraints• Purchase and construction/rehabilitation of bus

shelters and transit center• Purchase of computer hardware/software • Purchase of transit related “intelligent transportation

system” (ITS) equipment such as automated vehicle locator systems, scheduling software, information kiosks, etc.)

Project Budget

• Local Share• In-kind Match• Toll Credit

Three things changed for the project budget page. We are now requiring subrecipients to itemize the source of local funds. With the funding constraint California faces today, we have to make sure that subrecipients have the sufficient local match to move forward with the proposed project. 5311 staff is working closely with the DMT staff who handle TDA and PTMISEA funding to ensure that there is sufficient balance in those programs. In addition, with FTA’s approval, now State is allowing subrecipients to use in-kind match as local match. In-kind match are goods and services donated from outside your agency. The value of non-cash charges for real property and equipment, and the value of goods and services must be directly benefiting and specifically identifiable to the project. To be eligible as a match, the monetary value of the in-kind contributions must be documented. If you are planning to use in-kind match for local share, you must submit a plan documenting a list of donated goods and services, the fair market value of such goods and services and how the values were determined. The plan MUST be approved by Caltrans DMT as well as FTA. Otherwise, Caltrans will NOT issue a standard agreement for your proposed project. The last item added is Toll Credit. Toll credits provide a credit toward a project’s local share for certain expenditures with toll revenues. The amount of credit toward local share to be earned by State is based on revenues generated by toll authorities within the State. Under the provision of 23 U.S.C. 120(j), FHWA oversees the determination of toll credit within each state. For FTA, the effect of utilizing toll credits mean that FTA, in essence, provides 100% of the total net project cost. Again, if you are planning to use toll credit for local share, you MUST coordinate with your MPO and Caltrans before you submit an application to ensure the availability of the credit.

Coordinate Services with Social Service Agencies

• Instead of narrative that requires a lot of writing, now there are multiple choice questions and short paragraphs.

• What human service agencies, employment / training programs, or other transportation providers has your agency met with in the last year to discuss transit service coordination? Explain the outcomes.

• Describe any special efforts made to provide information about your agency’s service to human service agencies, the Work Force Center, or other activity centers.

Transit Security and Emergency Preparedness

Our goals:• Help California be better prepared for

emergencies of all kinds• Make every effort to ensure that, if

confronted with a safety or security event or major emergency, personnel will respond effectively, using good judgment and building on best practices

• Does your county emergency evacuation plans identify your agency as community responder-transportation provider? • What is your capacity to move individuals with disabilities during an emergency situation from schools, neighborhoods, medical

facilities, etc?

Optional Enhancements for Vehicles/Equipment

• Subrecipients are required to purchase vehicles that meet the requirements of Federal Motor Vehicle Safety Standards (FMVSS).

In addition to the FMVSS's requirements, Caltrans has developed the following optional enhancements for vehicles and vehicles equipments:•Seat material •Weight•Rare view cameras•Interior/exterior lighting•Communication equipment •Inspection

Authorized Resolution

• Must refer to the 5311 program• Designate all individuals authorized to

sign/submit applications, standard agreements, and request for reimbursements

• Ensure the programming of funding and availability of local match to move forward with the proposed project

We have noticed that many resolutions we receive from the subrecipients do not cover the following required items, so we had come up with the sample language for the authorized resolution for 5311 program.

Bid Related Documents and Checklists

• Subrecipient of FTA assistance to acquire goods, property or services MUST comply with all applicable third-party procurement provisions of federal laws, regulations, and directives.

Subrecipients seeking federal assistance under the Federal Transit Laws as codified at 49 U.S.C. 5301 et seq. to acquire property or services in support of a proposed project is subject to numerous provisions of law pertaining to third-party procurement requirements. SAFETEA-LU re-codified FTA’s procurement requirements in 49 U.S.C. 5325. In addition, regulations promulgated at 49 CFR part 18 (Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments) establish uniform administrative rules for federal grants, cooperative agreements, and subawards to State, local, and Indian tribal governments (private, non-profit organizations must comply with similar regulations in 49 CFR part 19). Provisions of the common rule pertaining to procurement requirements for FTA recipients that are governmental authorities are set forth at 49 CFR 18.36. Those requirements, as well as other FTA specific provisions, are also set forth in FTA’s Master Agreement, FTA MA(13) October 1, 2006, at Section 15, “Procurement,” and will be updated annually with issuance of each new Master Agreement. Finally, FTA has published additional guidance on recipient compliance with third-party procurement requirements within the most current FTA Circular 4220 and its “Best Practices Procurement Manual.” These regulations and guidance are intended to ensure full and open competition and equitable treatment of all potential sources in the procurement process including planning, solicitation, award, administration, and documentation of all Federally-funded contracts.

IT/ITS Compliance Plan

• According to the annual “Certifications and Assurances,” and consistent with the National ITS Architecture, all requests for ITS projects by an awarding agency must be included in Regional ITS Plan. ITS is referenced in SAFETEA-LU Subtitle C, Section 5301, Paragraph 512.

For more information about ITS, visit these websites:

http://www.iteris.com/itsarch/http:// www.pcb.its.dot.gov/factsheets/avl/avlRur.pdf http://www.itscosts.its.dot.gov/ http://itsweb.mitretek.org/aptsmatrix www.resourceguide.its.dot.gov/default.asp www.itslessons.its.dot.gov/its/benecost.nsf/DisplayLessonCategory

Maintenance Plan/Checklist

• Subrecipients are required to develop written maintenance plans for FTA funded facilities, vehicles, and equipment.

Per FTA Master Agreement Section 19.c, 49 CFR 37.161, FTA C 5010.1D, Chapter II, Section 3.a(11) and Chapter IV, Section 3.m, subrecipients are required to develop written maintenance plans for FTA funded facilities, vehicles, and equipment.

The plan should identify the goals and objectives of a maintenance program and establish the means by which such goals and objective will be attained. In the maintenance plans, periodic reporting, maintenance record review, visual inspections, and maintenance audits should also be addressed.

Questions/Comments?

For more information, please contact James Ogbonna at (916) 651-6116 orJames-Ogbonna@dot.ca.gov

Thank you!

Starting FY 2011 Grant Cycle, Please note that Standard Agreement will NOT be issued until a complete application is received by State.