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FTA’s Charter Regulations: A Compliance Guide for
Ohio’s Rural Public Transit Systems
The Ohio Department of Transportation Office of Transit
May 2004
An Equal Opportunity Employer
Table of Contents
Section 1.
INTRODUCTION AND PURPOSE ........................................................................................... 1 Purpose........................................................................................................................................ 1 Who Should Read This Guidebook?........................................................................................... 1 Are There Any Exceptions to the Applicability of the Charter Regulations? ............................ 2 What is Charter Service? ............................................................................................................ 2 FTA’s Basic Requirements Pertaining to Charter Service ......................................................... 3 ODOT Definition of Contract Services ...................................................................................... 3 Organization of this Guide.......................................................................................................... 3
Section 2.
GUIDANCE ON ELIGIBLE PUBLIC TRANSIT, CONTRACT, AND CHARTER SERVICES..................................................................................................................................... 6
What is Eligible Mass Transportation?....................................................................................... 6 Contract Services: Eligible Mass Transportation or Charter Service? ....................................... 6 What is the Definition of a.......................................................................................................... 7 Social Service Agency? .............................................................................................................. 7 Why is a Distinction Being Made Between Social Service Agencies and Other Entities that May Contract for Service? .......................................................................................................... 8 Transit Service is Under the Control of the Recipient ................................................................ 9 Transit Service is Designed to Benefit the Public-At-Large .................................................... 10 Transit Service is Open to the Public........................................................................................ 11 Are the Criteria for Providing Service Under Contract to Social Service Agencies Different from Providing Service Under Contract to Other Organizations?............................................ 11 Are Fixed Route Services Subject to Similar Requirements? .................................................. 13 Example of Fixed Route Service .............................................................................................. 16 Does this Guidance Mean We Cannot Provided Service Under Contract? .............................. 18 What Approach Should be Taken to Achieve Compliance? .................................................... 18 What If the Services Provided Do Not Meet the Requirements Described in this Section? .... 18
Section 3.
COMPLIANCE RESPONSIBILITIES UNDER FTA CHARTER REGULATIONS
(49 CFR PART 604).................................................................................................................... 20 Purpose of this Section.............................................................................................................. 20 Scope of Coverage of 49 CFR part 604 .................................................................................... 20 General Regulatory Requirement ............................................................................................. 21 Can a Grantee Provide Charter Using Vehicles that are Locally Funded?............................... 21
Can Our Subcontractors and/or Management Company, As a Private Entity, Provide Charter Services? ...................................................................................................................... 22 How Do We Determine If There Are Willing and Able Private Operators in Our Service Area? ............................................................................................................................ 22 What Does this Notice Have to Say?........................................................................................ 23 Do We Have to Publish This Notice? ....................................................................................... 23 How Detailed Must Our Description of Planned Charter Service Be?..................................... 23 Are We Permitted to Discuss Details with Private Operators During the Notice Solicitation Period?................................................................................................................... 24 How Do We Determine That a Private Charter Operator Qualifies as a Willing and Able Operator?................................................................................................................................... 24 How Often Do We Need to Conduct the Solicitation Process?................................................ 25 Can a Private Operator Retract its Willingness to Provide Charter Service? ........................... 26 What Happens if A Willing and Able Operator Refuses to Provide Service in Our Service Area? ......................................................................................................................................... 26 Are We Required to Make Referrals to the Public from Our Willing and able Operators List?.......................................................................................................................... 26 Are There Any Circumstances When the Transit System Can Provide Charter Services When There are Willing and Able Charter Operators? ............................................................ 26 Are There Any Other Requirements Imposed on the Transit System When We Do Provide Charter Service?........................................................................................................................ 31 What is Incidental Charter Service? ......................................................................................... 31 Can We Provide Charter Service If the Chartering Party Requests Use of Our Trolley Vehicle?........................................................................................................................ 32 If We Opt to Provide Service Free to the Chartering Party as a Gesture of Goodwill, Are We Still Subject to the Regulations? ........................................................................................ 32 Can We Use System Vehicles to Respond to Request for Service from Our County Board of Commissioners?.................................................................................................................... 32 What if We Are Ordered to Use Transit System Vehicle in a Court of Law?.......................... 32 What are the Consequences for Violations of the FTA Charter Regulations? ......................... 32
Appendix A: List of Federal Funding Sources
Section 1.
Introduction and Purpose
FTA’s Charter Regulations: A Compliance Guide for Ohio’s Public Transit Systems Page 1
Section 1.
Introduction and Purpose
Purpose As a condition of receipt of funds under 49 U.S.C. § 5307, 5309, or 5311 from the Federal Transit Administration (FTA), whether received directly from FTA or through the Ohio Department of Transportation, all transit systems must certify that they will comply with FTA’s charter regulations (49 CFR part 604). These programs are:
♦ Section 5307 – Urban Formula Program
♦ Section 5309 – Discretionary Capital
Program
♦ Section 5311 – Rural Transit Program (Nonurbanized Area Formula Program)
There is substantial confusion among Ohio transit systems with respect to FTA’s charter regulations. Moreover, ODOT has received complaints filed by private operators of charter services alleging violations of the policy. Subsequent investigation by ODOT has indicated that transit systems are potentially and unknowingly out of compliance with the charter regulations. The purpose of this manual is to define:
♦ the compliance requirements
associated with 49 CFR part 604; ♦ specific examples of eligible mass
transportation (“public transportation”);
♦ ODOT requirements for the provision of public transportation under contract;
♦ differences between charter transportation and eligible services provided under contract;
♦ the concept of “incidental” charter services and explain when such services may be provided; and
♦ the procedures that must be followed if any allowable charter services are to be provided by a transit system.
Who Should Read This Guidebook?
All Ohio public transit systems that are recipients of FTA financial assistance, or any coordination project that anticipates receipt of Federal financial assistance in the future, should read this manual. Existing coordination projects that do not receive Federal financial assistance under any of the three (3) programs listed above should consult an ODOT white paper on this topic for guidance on their current compliance responsibilities.
FTA’s Charter Regulations: A Compliance Guide for Ohio’s Public Transit Systems Page 2
Are There Any Exceptions to the
Applicability of the Charter Regulations?
There is one exception to the applicability of FTA’s charter regulations to recipients of Federal financial assistance. Ohio transit programs that only receive funding under the Specialized Transit Program (49 U.S.C. § 5310 - Elderly and Persons with Disabilities Program) are not subject to the charter regulations. However, recipients of Specialized Transit Program (Section 5310) funds must adhere to ODOT’s private sector participation policy. Recipients of Specialized Transportation Program funds (Section 5310) in urbanized areas must adhere to the private sector participation policy adopted by the Metropolitan Planning Organization (MPO) in the area.
What is Charter Service?
Definition FTA defines charter service in 49 CFR part 604.5(e). Charter Service means:
…transportation using buses or vans, or facilities funded under the Acts of a group of persons who pursuant to a common purpose, under a single contract, at a fixed charge (in accordance with the carrier's tariff) for the vehicle or service, have acquired the exclusive use of the vehicle or service to travel together under an itinerary either
specified in advance or modified after having left the place of origin.”
This definition includes the incidental use of FTA funded equipment for the exclusive transportation of school students, personnel, and equipment. What Does This Definition Mean? The definition specifies several characteristics of charter service. These components are: 1. The service is provided using vehicles
and facilities financed by FTA. 2. The service is provided to a group of
persons (two or more persons). 3. The group travels pursuant to a common
purpose. 4. There is a contract, either written or oral,
between the group and the provider. 5. The agreement stipulates an agreed
charge for the services rendered, consistent with the provider’s customary and usual charges.
6. The group has acquired the exclusive use
of the vehicle. 7. The group has specified the origin,
destination, and any intermediate stops in the travel itinerary.
If these seven conditions exist, it is likely that the service being provided is charter service subject to the provisions of 49 CFR part 604.
FTA’s Charter Regulations: A Compliance Guide for Ohio’s Public Transit Systems Page 3
FTA’s Basic Requirements Pertaining to
Charter Service
If a recipient desires to provide any charter service using FTA equipment or facilities, the recipient must first determine if there are any willing and able private charter operators to provide the charter service which the transit system desires to provide. To the extent that there is at least one such private operator, the transit system is prohibited from providing charter service with FTA funded equipment or facilities unless one or more of the exceptions to the regulation can be identified. One of the problem areas associated with compliance with the charter regulations, however, is that the distinction between prohibited charter and allowable services provided under contract is not always clear. Poorly planned contract services or improperly written service contracts may result in a determination that services provided under contract are prohibited charter services.
ODOT Definition of Contract Services
ODOT has promulgated a definition of contract service in Chapter 3 of the Rural Transit Program Manual:
…the transportation of a group of people for a specified cost scheduled and paid by a third party, e.g., Title XX group transportation, Title III-B trips, etc.
As can be seen, there are many similar elements between the definition of charter service and service provided under contract.
These similarities include: transportation provided to a specified group, use a previously agreed upon charge for the service, transportation for a common purpose, and elements of the trip itinerary controlled by the group. Public transportation systems are permitted to provide service under contract. Generally, contract services are not considered “charter” service if the service is provided in accordance with FTA’s definition of eligible mass transportation. ODOT’s Rural Transit Program Manual goes on to specify certain guidelines necessary in the provision of contract transportation necessary to meet the definition of mass transportation.1
Organization of this Guide
This guidebook provides specific guidance to public transportation systems so that compliance may be assured in the provision of services under contract or to systems that otherwise provide permissible, incidental charter services In Section 2, the guidebook provides guidance on eligible public transit services, allowable contract service, and those services that are considered charter services.
1 Throughout this manual, use of the terms “mass transportation” and “public transportation” are synonymous. Most of the regulatory language developed in the 1980s employs the term mass transportation. Public transportation is considered more appropriate usage when considering both rural and urban environments.
FTA’s Charter Regulations: A Compliance Guide for Ohio’s Public Transit Systems Page 4
In Section 3, the guidebook provides a detailed review of the requirements of 49 CFR part 604.
In Section 4, guidance is provided on soliciting the interest of willing and able private charter companies.
Section 2.
Guidance on Eligible Public Transit, Contract,
and Charter Services
FTA’s Charter Regulations: A Compliance Guide for Ohio’s Public Transit Systems Page 6
Section 2.
Guidance on Eligible Public Transit, Contract, and Charter Services
What is Eligible Mass Transportation?
Federal mass transit law defines what is “eligible mass transportation,” or public transportation. 49 U.S.C. § 5302(a)(7) states that "mass transportation" means:
…transportation by a conveyance that provides regular and continuing general or special transportation to the public, but does not include school bus, charter, or sightseeing transportation.
FTA has elaborated on this definition in various opinions rendered in response to charter complaints. FTA recognizes three (3) key components of eligible mass transit. The service must be:
♦ under the control of the recipient; ♦ designed to benefit the public at
large; and ♦ open to the public and not closed
door. FTA states:
First, mass transportation is under the control of the recipient. Generally the recipient is responsible for setting the route, rate, and schedule and deciding what equipment is used. Second, service, is designed to benefit the public at large and not some special organization such as a private club. Third, mass transportation is open to the
public and is not closed door. Thus, anyone who wishes to ride on the service must be permitted to so.
Contract Services: Eligible Mass
Transportation or Charter Service?
Many Ohio public transit systems, particularly those in rural areas, depend heavily on the revenues derived from the provision of services under contract. Based on experience, transit agencies contract with social service agencies, units of local governments, local charitable organizations, civic clubs, and other organizations to provide requested transportation. Revenues derived from the provision of service under contract are an important, if not critical, element in the budgets of many Ohio public transit systems. Some rural systems would not exist if it were not for these revenues. ODOT emphasizes that FTA’s charter regulations are not designed to limit a transit system’s generation of revenue from the provision of contract services. Indeed, revenues derived from such some contracts are referenced in the enabling legislation for the Rural Transit Program (Section 5311) program.2
2 49 U.S.C. § 5311(g)(1).
FTA’s Charter Regulations: A Compliance Guide for Ohio’s Public Transit Systems Page 7
Congress intended that rural transit systems could use revenues received under service agreements with a state, local or nonprofit social service agency as the local matching share of Rural Transit Program (Section 5311) operating grants. Congress anticipated that such revenues would be earned due to local coordination arrangements. Specific authority to make grants under the Rural Transit Program (Section 5311) requires that the Secretary of USDOT must find that the project provides for the maximum feasible coordination of mass transportation service assisted under this section with transportation service assisted by other United States Government sources.3 ODOT believes that coordination is achieved at a maximum feasible level when an organization, supported by Federal financial assistance from sources other than the U.S. Department of Transportation, enters into a purchase of service agreement with a rural public transit system funded under the Rural Transit Program. FTA Circular 9040.1E, “Nonurbanized Area Formula Program Guidance and Grant Application Instructions,” directly addresses the issue of contract services and the fact that such services are not generally considered as charter service. Chapter X, “Other Provisions,” paragraph 4, “Charter Service,” reads, in part:
Service provided under contract to a social service agency will usually be mass transportation, not charter service, if the service is under the control of the subrecipient, is open door, and the subrecipient can put any rider on the vehicle in addition to the agency's
3 49 U.S.C. § 5311(b).
clients. The regulation should not discourage Section 5311 subrecipients from using FTA funded equipment in coordinated systems, or from providing service under contract to social service agencies (emphasis added).
Thus, there is substantial evidence that service under contract to social service agencies is clearly an activity that was planned and anticipated as a component of Rural Transit Program and is clearly distinguished from services provided under contract to other organizations.
What is the Definition of a Social Service Agency?
FTA Circular 9040.1E does not provide a definition of what constitutes a “social service agency.” FTA’s charter regulations (49 CFR part 604.9(b)(5)(ii)) make reference to a “qualified social service agency.” In this context, a qualified social service agency is one that receives funding from any of the sources of funds listed in an appendix to the regulation. The list is a compendium of 38 different Federal assistance programs administered under the United States Department of Health and Human Services (HHS). The financial assistance under each of these HHS programs includes funding for the transportation needs of the program beneficiaries. The list is wide ranging and appears to be an effort to capture all potential funding sources that may be used to fund client transportation. The list is also substantially out-of-date. In defining social service transportation, ODOT has adopted the basic premise
FTA’s Charter Regulations: A Compliance Guide for Ohio’s Public Transit Systems Page 8
employed by FTA in 49 CFR part 604, but has updated and expanded the list of funding sources consistent with recent Federal research. Thus, in the ODOT definition, programs from any Federal agency identified in a
recent GAO study will be included in the list of funding sources that define a social service organization. The definition of a social service agency is as follows:
Why is a Distinction Being Made Between
Social Service Agencies and Other Entities that May Contract for Service?
ODOT draws the distinction between social service agencies and other potential organizations because of the unique attention directly focused on social services agencies in the legislative, regulatory, and policy positions of FTA with respect to the Rural Transit Program (Section 5311). With some limitations, it is clear that FTA did not intend to classify such contracts as charter services. Other types of organizations tha may enter into service agreements with rural
transit systems do not receive this attention in either legislation or regulatory treatment. This distinction is critical when FTA’s own interpretation of the difference between mass transportation and charter services is considered. In California Bus Association v. SunLine Transit Agency, FTA states:
…a balancing test must be applied to determine the nature of the service involved in any complaint filed with FTA because, as the preamble to the charter regulation points out at pages 11919-20, there is no fixed definition of charter services, and the characteristics cited by
What is a Social Service Agency: A social service agency is an organization that:
…is a government entity or a nonprofit organization exempt from taxation undersubsection 501(c)(1), 501(c)(3), 501(c)(4), or 501(c)(19) of the Internal Revenue Code;and …is a recipient of Federal funds, either directly or indirectly, from one or more of thefunding programs administered by the U.S. Departments of Health and HumanServices, Labor, and Education listed in Appendix A to this guide.
It is not necessary for the social service agency to provide an accounting of the specific funding that may be used to render payment to the transit system for particular clients, for aparticular invoice, etc. This would place an undue and unnecessary accounting burden onthe both the provider and purchaser of transit services. The agency merely would certify,in executing the purchase of service agreement, that it is a recipient of these funds.
FTA’s Charter Regulations: A Compliance Guide for Ohio’s Public Transit Systems Page 9
FTA are not exhaustive, but merely illustrative.
The balancing test referenced above relates to FTA’s assessment of the three (3) key factors associated with eligible mass transit. It is also recognized that the majority of FTA experience in the application of this “balancing test” is in the context of urbanized area fixed route service. While insightful, an examination of how FTA applied this balancing test on previous charter complaints against fixed route public transportation system reveals that issues will surface if a similar approach is used for demand response transportation system. For example, the very first criterion is that the service is “under the control of the recipient.” Demand response transportation, by definition, requires some interaction between the customer and the transit system in order to access the service.4 In a demand response system, the customer will typically specify the pick-up location, the drop-off location, and the desired time of pick-up. Thus, the customer, not the transit system, has substantial control of the service. Yet, demand response or specialized transportation is, despite the apparent contradictions to the FTA definition of public transportation, are, in fact, mass transportation, not charter service. In the following section, ODOT provides guidance on the application of the three service criteria for mass transportation service that is operated as specialized services or in demand response mode. 4 See 49 CFR part 37, Appendix D, regarding FTA’s discussion of the definition of a demand response transportation service.
Transit Service is Under the Control of
the Recipient ODOT has formulated the following guidance that will assist transit systems in making determinations if the service is eligible mass transportation or charter service. The first criterion used to indicate that service is under the control of the recipient is that the service is provided on a regular or continuing basis. Most social service agency transportation that is provided under contract is performed on a daily basis. However, for some funding programs, transit service is required only on an intermittent basis. In order to accommodate a wide range of circumstances while continuing to foster coordination between rural public transportation providers and recipients of social service agency funding, ODOT will consider the following services as regular and continuing:
♦ The recipient has a signed contract with the social service agency that calls for the provision of service over the course of the agency’s fiscal year;5 and
♦ The service under contract is
provided on a regular basis, with the transit system providing service on trip intervals not less than once per month for the duration of the contract.
5 In the case of new contracts that arise after the start of the fiscal year, any contract that runs from the initial date of the period of performance through the end of the agency’s fiscal year.
FTA’s Charter Regulations: A Compliance Guide for Ohio’s Public Transit Systems Page 10
Second, to be under the control of the recipient, the public transit system, not the contracting social service agency, must have control over the scheduling of individual rides under the contract. This means:
♦ The contract may not specify use of a dedicated vehicle to provide the service;
♦ The transit system is responsible for the scheduling of all rider pick-up and drop-off times, consistent with system policies regarding “appointment” time (e.g., the time the agency requires clients to be dropped off at the destination); and
♦ The transit system, if using
automated scheduling software, does not program agency client rides as group subscription trips that would have the affect of the software not scheduling other customers on that vehicle run.
Third, a contract service is under the control of the recipient if the social service agency is charged the usual and customary contract rate employed by the system. This means, consistent with existing ODOT guidance, that:
♦ the rates charged by the recipient represent the fully allocated costs of transit operations, maintenance, and administration. If other subsidies are used to defray the fully allocated costs of service provision, the rural transit system should indicate to ODOT that the combination of local subsidies and contract charges represents the fully allocated cost of service.
Finally, demand response service is under the control of the recipient if the project maintains full responsibility for:
♦ vehicle assignment to the runs used to meet the services provided under contract.
This provision does not preclude a contracting social service agency from specifying that only accessible vehicles be used in contract service delivery. Transit Service is Designed to Benefit the
Public-At-Large The second primary “balancing test” used to determine that service is eligible mass transportation is that the service is designed to benefit the public-at-large. ODOT, in evaluating adherence to this criterion, will use the following factors to determine if the demand response service benefits the public-at-large:
♦ The rural transit system must operate demand response transportation as part of its regular services, not solely as a mode to respond to the needs of the contracting social service agency.
♦ At the time of contract execution
with the social service agency, the scope of services provided under contract to be performed will be done so during the span of regular business hours operated by the recipient as stated in the most recent grant application and/or service brochure.
FTA’s Charter Regulations: A Compliance Guide for Ohio’s Public Transit Systems Page 11
♦ The recipient advertises the availability of services to the public.
This last requirement means that the demand response services provided to the social service agency must be included in the descriptions of all demand response services advertised by the transit system in their service brochures, print media, website, etc.
Transit Service is Open to the Public The third primary criterion specifies that the service must be open to the public and not operated on a “closed door” basis. Closed door service means that the vehicle is not available for boarding by any other individual during the period when the vehicle is in revenue service to perform the contract. In a demand response setting, this criterion is problematic. At any given hour of the day, a demand response run may be operating in exclusive mode, transporting only clients of the social service agency. The fact that no other member of the general public requests a ride appropriate for scheduling on that vehicle at that particular time of day does not by itself make the service “closed door.” ODOT will use the following factors to determine if the rural public transit system, operating in demand response mode is open to the general public. If the system:
♦ has the capacity in the system during
that particular day and time to transport other, general public passengers;
♦ imposes no policy restrictions on the assignment of general public passengers on the runs; and
♦ has not executed a contract that calls
for the provision of social service transportation in exclusive “client-only” mode
…then the system will be determined to be opened to the general public. In examining a rural transit system’s compliance with this last criterion, ODOT will consider the extent to which the system transports members of the general public on runs used primarily for social service agency transportation. ODOT will not prescribe any minimum standard for individual demand response runs, as this may unnecessarily impact a system’s ability to operate in an efficient manner. In all cases, ODOT’s service area definition applies to services provided under contract to social service agencies.
Are the Criteria for Providing Service Under Contract to Social Service
Agencies Different from Providing Service Under Contract to Other
Organizations? The criteria for provision of contract transportation to organizations other than social service agencies are very similar to those identified above for social service agency transportation. Yet, because they lack the specific regulatory or legal authority to be presumptively assumed as eligible mass transportation by definition, such contracts must more closely adhere to FTA’s definition of eligible mass transportation.
FTA’s Charter Regulations: A Compliance Guide for Ohio’s Public Transit Systems Page 12
The key differences between a contract with a qualified social service agency and another organization are:
♦ Service must be provided on a more frequent basis in order to be considered eligible mass transportation.
♦ Service must be to a destination
within the service area that is routinely accessed by members of the general public.
Service must be open to the general public as evidenced by regular and consistent assignment of general public passengers to the contract run.
Service is Under the Control of the Recipient – Regular and Continuing Service Service provided under contract to organizations other than qualified social service agencies as defined earlier in this chapter will be subject to a more stringent standard with respect to regular and continuing service when provided in the demand response mode. Whereas ODOT will only require service to be provided on a monthly interval when under contract to a social service agency, more frequent service will be required in order for ODOT to determine that a contract service is not prohibited charter operation (see explanation below).
Regular and Continuing Service – Demand Response Examples ODOT requires that for service to be provided on a regular and continuing basis, service must be provided throughout the fiscal year as evidenced by a service contract that extendsthroughout the year. Service must be provided on regular intervals. In the case of a social service agency, ODOTrequires only that the service be provided at intervals no less frequent than monthly. Forexample, the transit system may enter into a contract with a local health department to provide service to clients participating a pre-natal care program. The health department requires clients to participate in a monthly screening program and contracts with thetransportation to bring clients to their clinic facilities. The department uses Federal funds provided by the U.S. Department of Health and Human Services (DHHS), in part, to pay forthe service. This service meets the ODOT definition for regular and continuing service andis consistent with FTA’s coordination efforts wherein social service programs are encouraged to purchase client transportation from a public transportation service provider.The service interval, specified as one trip per month, is consistent with the program needs ofthe Health Department. Special consideration is given in this regard because of the entity’sstatus as a social service agency. If the contracting organization is not a social service agency, ODOT, in applying the“balancing test” to determine if the service is eligible mass transit or charter service, will require a more stringent standard. Service must be provided on a regular basis, as evidencedby service provide at a frequency no less than bi-weekly.
FTA’s Charter Regulations: A Compliance Guide for Ohio’s Public Transit Systems Page 13
While each case will be examined individually, ODOT recommends that the frequency of service under contracts with other organizations be provided no less frequently than bi-weekly. Service is Designed to Benefit the Public-At-Large For other than social service agencies, the key factors ODOT will examine is whether the provision of service under contract is performed on regular demand response runs operated by the transit system and that the destination(s) served are facilities and/or locations that are places of public accommodation (e.g., shopping centers, medical facilities, etc.). In short, the contract service must be provided in an operational manner that is consistent with the transit system’s regular demand response service. Open to the General Public and Not Closed Door In addition to all the criteria identified above for social service agency transportation (e.g., capacity and scheduling practices), a transit system must ensure that demand response service provided under contract to other than social service agencies is open to the public, generates general public ridership on all runs, and that the service is marketed in a manner consistent with all other demand response services. ODOT will specifically examine the level of general public ridership on runs used to meet the contract demand to make determinations as to whether the service is open to the public. Exhibit 2.1 provides a side-by-side comparison of the service criterion for contract services provided in demand response mode for social service and other organizations.
Are Fixed Route Services Subject to
Similar Requirements? Yes, fixed route transit service is subject to the same requirements. However, in fixed route systems, the three primary requirements for eligible mass transportation are evaluated in a different manner, reflecting the modal differences between fixed route and demand response services. Service is Under the Control of the Recipient – Regular and Continuing Service In fixed route service, this means that the transit system must operate on a regular daily schedule, the system controls the number of vehicles used in revenue service, and the customer is primarily responsible for paying the fare. ODOT will use the following criteria in making determinations that fixed route service is under the control of the transit system:
♦ The route path and the route headways are determined by the transit system, not a third party.
♦ The route operates on a daily basis on headways appropriate to demand.
♦ The transit system establishes the
fare for the service.
♦ The individual passenger pays the fare, not a third party organization.
Exhibit 2.1Comparative Analysis of Contract Service Requirements - Social Service Agencies and Other Organizations
Demand Response Transportation
FTA Primary Criteria for Contracts with Social Service Agencies: Contracts with Other Organizations:Eligible Mass Transportation Requirement Grantee Action to be Considered Eligible Mass Transportation Grantee Action to be Considered Eligible Mass Transportation
A. 1. a. Same
b.
2. Control Over Trip Scheduling a. Same
b. Same
c. Same
3. a. Same
4. Vehicle Assignment a. Same
B. 1. Demand Response Mode a. Same
2. Span of Service a. Same
3. Marketing a. Same
4. Transit Trip Destinations a.
The service is provided on a regular basis, with the trip being provided on intervals not less than once bi-weekly for the duration of the contract.
Destinations of travel must be to locations within the service area that are places of public accommodation for the general public.
Destinations of travel may include facilities and/or locations that serve a particular group provided it is consistent with the social service agency's purpose and mission.
The recipient must already operate demand response services as part of its regular scope of service delivery.
The scope of services provided under contract will be performed during the span of regular business hours operated by the recipient as stated in the most recent grant application and/or service brochure.
The recipient must advertise the contract services as being available to the general public in the same manner, using the same techniques, as used in other marketing campaigns.
The recipient is responsible for the scheduling of all rider pick-up and drop-off times, consistent with system policies regarding "appointment" time (e.g ., the time the agency requires clients to be dropped off at the destination);
The recipient, if using automated scheduling software, does not program agency client rides as group subscription trips that would have the affect of the software not scheduling other customers on that vehicle run.
The rates charged by the recipient represent the fully allocated costs of transit operations, maintenance, and administration.
The recipient maintains full control over vehicle assignment to runs.
The recipient has a signed contract with the social service agency that calls for the provision of service over the course of the agency's fiscal year
The service is provided on a regular basis, with the trip being provided on intervals not less than once per month for the duration of the contract.
The contract may not specify use of a dedicated vehicle to provide the service;
Use of Fully Allocated Contract Pricing
Service is Under the Control of the Recipient
Service is Designed to Benefit the Public-At-
Service is Operated on a Regular and Continuing Basis
Exhibit 2.1Comparative Analysis of Contract Service Requirements - Social Service Agencies and Other Organizations
Demand Response Transportation
FTA Primary Criteria for Contracts with Social Service Agencies: Contracts with Other Organizations:Eligible Mass Transportation Requirement Grantee Action to be Considered Eligible Mass Transportation Grantee Action to be Considered Eligible Mass Transportation
3. 1. Capacity a. Same
2. Trip Assignment Restrictions a.
3. Contract Terms & Conditions a. Same
The recipient imposes no policy restrictions on the assignment of general public passengers on contract runs.
The recipient, in executing a contract with the agency, does not agree to any provision that pledges the exclusive use of a vehicle to the entity.
Same, except that ODOT will impose a higher standard/level of public ridership when assessing other than social service agency contracts.
The recipient has the capacity in the system during that particular day and time to transport other, general public passengers.
Open to the General Public and Not Closed Door
FTA’s Charter Regulations: A Compliance Guide for Ohio’s Public Transit Systems Page 16
Generally, control of fares and schedules are critical elements in determining eligible mass transportation in this regard. Service is Designed to Benefit the Public-At-Large Service must meet the needs of the public at large, not a single group of users. This criterion is best accomplished when the route serves a multiple set of trip destinations that typically represent transit trip generators (e.g., office complexes, hospitals, medical offices, shopping, grocery stores, etc.) Additionally, marketing efforts should be consistent with other fixed route services operated by the transit system. If system publishes route brochures for its other routes, publication of a route brochure for the route under question would be evidence of a service designed to benefit the public at large. In short, the system’s marketing efforts for all its fixed route services will be examined for consistency if questions arise as to whether the service is eligible mass transportation. Open to the General Public and Not Closed Door The two key elements under this criterion are the level of general public ridership and the intent of the recipient in providing the service (California Bus Association v. Sunline Transit Agency, 1997). While fixed route service bus stop placements are clearly designed to serve a specific location, benefiting customers, shoppers, employees, or residents of a particular business, commercial center, or neighborhood, a sufficient number of such strategically placed stops would represent
good fixed route design and would be indicative of service being available to serve the public-at-large. Routes designed to serve only a single origin and destination, with no intervening stops, will generally not be considered fixed route mass transportation. Additional factors under this criterion that will indicate the recipient is operating service available to the public at large:
♦ The number of other bus stops along the line.
♦ Availability of connections to other
elements (routes/services) of the transit system.
♦ Vehicle destination signs that clearly
communicate the nature of the service and that service is available to the general public.
FTA evaluates the level of marketing efforts employed by the transit system to make the service known to the public as indicative of intent to provide service that is open to the public. ODOT will utilize this same criterion and will consider marketing efforts of a particular service in light of similar efforts for all other transit services operated by the system.
Example of Fixed Route Service In the following exhibit, ODOT presents a graphic that reflect two different fixed route services.
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Exhibit 2.2 Illustrative Fixed Route Services: Eligible Mass Transit and Prohibited Charter Services
Example “A”
In this example, an Ohio fixed route system is approached by a local medical complex to operate an employee shuttle between the main hospital facility and an overflow, remote parking lot. The transit system arranges to operate a fixed route, on frequent intervals, directly connecting the remote lot and the hospital. As the hospital pays for the shuttle, employees may ride for free. This service is not eligible mass transportation. The service is operated exclusively for a single group (hospital employees), the route is not designed to serve the public-at-large, and customers do not pay a fare for the service.
Example “B”
The transit system has expanded the route to incorporate other transit trip generators and has established bus stops at various other points along the route. The route is now integrated with the system’s other fixed route services and transfers to these other routes are now possible. Finally, the hospital now longer directly underwrites the cost of the route on a fee per hour basis, but rather purchases a guaranteed amount of bus tokens for distribution to its employees. In this example, the service is eligible mass transportation.
RemoteParking Lot
Hospital
0 0.5 1
TransferCenter
CountyBldg.
SocialSecurity
Bus Stop
RemoteParking Lot
Hospital
0 0.5 1
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In the first case, a nonurbanized area transit system operating fixed route service is approached by a local medical complex to operate an employee shuttle between the main hospital facility and an overflow, remote parking lot. The transit system arranges to operate a fixed route, on frequent intervals, directly connecting the remote lot and the hospital. As the hospital pays for the shuttle, employees may ride for free. In the second case, the transit system entertains the same request. In this scenario, however, the system plans how the services can meet the needs of the general public in addition to hospital employees and devises a route that circulates in the downtown area as well as serving the hospital and the remote parking lot. The strategy adds several key transit trip generators to the route. The service is no longer oriented towards a single group and the system collects fares from all passengers. The system publishes a separate route brochure for the route and includes the route on its system map and in its website pages.
Does this Guidance Mean We Cannot Provided Service Under Contract?
No. This guidance is designed to facilitate the provision of service under contract consistent with FTA and ODOT guidelines.
What Approach Should be Taken to Achieve Compliance?
ODOT encourages recipients of rural transit funding to seek contracts and maximize
system revenues. In providing contract services, ODOT has always required that the services are open to the public. This guidance provides specific direction to transit systems in providing such service in a compliant manner. In entering into an agreement with a third party organization to provide transit services under contract, transit management should use good, sound planning principles in designing the service. Service design should not be based solely on the requirements of the contract; in virtually all instances, if the transit system applies sound public transportation design principles, the service will meet ODOT and FTA requirements for eligible mass transportation.
What If the Services Provided Do Not Meet the Requirements Described in this
Section? If the services provided under contract do not meet the requirements stipulated in this section, it is likely the service provided is charter service. If this is the case, the transit system must:
♦ Re-design the service to be eligible mass transportation;
♦ Operate the service as designated
charter service, provided it meets the requirements of 49 CFR part 604; or
♦ Cease to operate the service.
In the next section, ODOT reviews the requirements for compliance with FTA’s charter regulations.
Section 3.
Compliance Responsibilities Under FTA Charter Regulations (49 CFR part 604)
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Section 3.
Compliance Responsibilities Under FTA Charter Regulations
(49 CFR part 604)
Purpose of this Section
The purpose of this section is to provide guidance to Ohio’s rural transit systems that have determined that transportation services provided or desired to be provided may fall into the category of charter services. This section provides a detailed description of FTA’s requirements along with explanation and guidance on special situations that are likely to be encountered by rural public transit projects. In this section, ODOT will review:
♦ Limitations in the use of equipment and facilities funded with FTA monies;
♦ Procedures for soliciting the interest of willing and able private operators;
♦ Requirements for determining whether a private operator is “willing” and “able;”
♦ Procedures for handling requests from the public after the system determines that there is at least one willing and able private operator;
♦ The seven (7) exceptions to FTA’s charter rules wherein a system can provide incidental charter service even when there are willing and able private operators; and
♦ The definition of “incidental” charter.
Scope of Coverage of 49 CFR part 604
Scope of Coverage As noted in Section 1, FTA charter regulations apply to recipients of financial assistance under the following programs:
♦ Section 5307 – Urban Formula Program
♦ Section 5309 – Discretionary Capital Program
♦ Section 5311 – Rural Transit Program (Nonurbanized Area Formula Program)
Additionally, if flexible funds from the Highway Trust funds are used to support capital acquisitions by a public transit system (Sections 103(e)(4), 142(a), or 142(c) of Title 23 United States Code which permit the use of Federal-Aid Highway funds to purchase buses), the charter regulations will also apply. The charter regulations are not applicable to the Specialized Transportation Program (Section 5310 program). Annual Certification All applicants who apply directly to FTA for grants subject to the charter regulations must
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submit two copies of the charter certification that reads:
… I, (name), (title), agree that (name of applicant) and all recipients through (name of applicant) will provide charter service that uses equipment or facilities provided under the Federal Mass Transit Act of 1964, as amended (49 U.S.C. 1601 et seq.) or under 23 U.S.C. 103(e)(4), 142(a) or 142(c) (the Acts) only to the extent that there are no private charter service operators willing and able to provide the charter service that (name of applicant) and all recipients through (name of applicant) desire to provide unless one or more of the exceptions in 49 CFR 604.9 applies.
I further agree that (name of applicant) and all recipients through (name of applicant) will comply with the provisions in 49 CFR part 604 before they provide any charter service using equipment or facilities provided under the Acts, that the requirements of 49 CFR part 604 will apply to any such charter service that is provided, and that the definitions in 49 CFR part 604 apply to this agreement. Applicant Name Title Date Federal Transit Administration Name Title Date
One-Time Certification for Nonurbanized Area Projects For nonurbanized area projects that receive Rural Transit Program (Section 5311) funds through ODOT, a one-time certification is required. The certification reads as follows:
…(Name of subrecipient) certifies that it shall comply with 49 CFR part 604 in the provision of any charter service provided with FTA funded equipment or facilities.
General Regulatory Requirement As noted in Section 1, transit systems that receive FTA financial assistance under the subject programs are prohibited from using FTA funded equipment and facilities to provide charter service if it is determined there is one or more willing and able charter operators in the service area.
Can a Grantee Provide Charter Using Vehicles that are Locally Funded?
The preamble to FTA’s charter regulations states that they apply only to charter service performed by transit systems using FTA funded facilities and equipment. If a transit system:
(1) sets up a separate company that has only locally funded equipment and facilities; and
(2) operates these facilities and equipment with only local funds; or
(3) is able to maintain separate accounts for its charter operators to show that
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the charter service is truly a separate division that receives no benefits from the mass transportation division…
…then the charter rule would not apply. ODOT cautions that these conditions will be strictly enforced. Further caution is urged with respect to use of FTA funded facilities. In a recent opinion involving charter operations, FTA has stated that if there is a willing and able private provider, a transit system may not allow its separate charter entity to use, even on an incidental basis, the FTA-funded garage in connection with its charter operations. This interpretation also applies if the separate charter service were to pay the transit authority rent and fees for such incidental use. It should be noted that the term "facilities" applies to offices and other administrative locales. This rule, however, applies only to the use of facilities by public transit authorities and their charter entities. Thus, if a grantee has excess space in its FTA-funded garage, it may lease that space to a private operator on an incidental basis.
Can Our Subcontractors and/or Management Company, As a Private
Entity, Provide Charter Services? Section 3(f) of the FTA Act states that the charter restrictions apply to the transit system "or any operator of mass transportation equipment" acting on behalf of the grant recipient. It is FTA’s opinion that this language provides little room for discretion and
requires that all entities, public or private, that operate transit services on behalf of a transit system are covered by the charter rule. Consequently, all operators, whether public or private, under contract or receiving assistance through the transit system, are subject to the charter rule but only to the extent that the operator uses FTA funded equipment or facilities to provide charter service. In short, the rule treats all operators and/or management companies of a transit system as standing in the shoes of the transit system for purposes of compliance.
How Do We Determine If There Are Willing and Able Private Operators in
Our Service Area? The regulations specify the procedures that must be used to determine if there are willing and able charter operators. A public participation process is used. The steps a transit system must do are as follows:
♦ At least 60 days prior to the provision of charter service, the transit system must place a notice in a newspaper, or newspapers, having general circulation within the proposed geographic charter service area;
♦ Send a copy of the notice to all private charter service operators in the proposed geographic charter service area and to any private charter service operator that requests notice; and
♦ Send a copy of the notice to the United Bus Owners of America and the American Bus Association (in 1996, the United Bus Owners of America become the United Motorcoach Association).
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What Does this Notice Have to Say?
The following elements must be included in the notice. They are:
♦ Transit system name; ♦ Description of the charter service
that the transit system proposes to provide;
♦ Notice that the transit system will provide at least 30 days from the date of publication to allow private operators to submit statements of interest;
♦ The transit system’s mailing address where statements of interest should be mailed;
♦ A statement that specifically identifies the evidence that must be submitted to the transit system to demonstrate the operator is willing and able;
♦ A statement that the transit system will only review submissions submitted by the stated deadline and that the determination process will be completed review within 60 days of the deadline; and
♦ A statement that the transit system
will not provide any charter service using equipment or facilities funded under the Acts to the extent that there is at least one willing and able private charter operator unless the recipient qualifies for one or more of the exceptions in 49 CFR 604.9(b).
Do We Have to Publish This Notice?
No. If a transit system will not provide charter service during the course of the year, it need not publish this notice. However, if the system anticipates providing charter service, or is unable to categorically indicate it will not provide charter service, then the notice must be published.
How Detailed Must Our Description of Planned Charter Service Be?
It is not necessary for the transit system to detail specific details of every single charter
How Do We Send a Notice to the Two Trade Associations? When publishing a notice to solicit the interest of willing and able private charteroperators, 49 CFR 604.11(b)(3) requires the transit system also send a copy to two tradeassociations, the United Bus Owners of America (UBOA) and the American BusAssociation (ABA). UBOA is now known as the United Motor Coach Association. Directcorrespondence to: United Motorcoach Association American Bus Association 113 S. West Street 700 13th Street, NW Alexandria, VA 22314 Suite 575
Washington, DC 20005-5923
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trip that it intends to provide during the course of a year. FTA intends to provide flexibility in the level of detail that must be provided in the notice. 49 CFR part 604.11(c)(2) indicates that the notice include:
♦ estimated number of days charter services will be provided;
♦ the approximate times of day; ♦ the geographic area; and ♦ category of revenue vehicle that
would be used in charter service. This description may be generalized (e.g., description of trip purposes, groups transported, and typical destinations). The notice must not be worded in a way that would discourage a response from any person who meets the minimum criteria for a “willing and able” operator. Regardless of how the transit system describes its own service, the system must make it clear in the notice that private operators are not required to respond in similar detail. Private operators are required to show only that they have the requisite legal authority and the desire to perform the service. Are We Permitted to Discuss Details with
Private Operators During the Notice Solicitation Period?
This is not a procurement; merely a solicitation of interest. As such, transit systems are permitted to discuss charter issues, either individually or collectively, with prospective private charter operators during the solicitation period. A transit system may provide the system telephone number in their notices indicating
that private operators may call the system to obtain further information. Through cooperation, it should be possible to ensure that critical consumer needs for charter service will be met.
How Do We Determine That a Private Charter Operator Qualifies as a Willing
and Able Operator?
Willing Operators When a transit system receives a response from its notice to solicit the interest of private charter companies, it must determine that the respondent is “willing” and “able.” A charter operator need only express, in writing, its desire to perform charter service in the service area specified by the transit agency to be considered a willing operator. The operator is not subject to any test regarding whether it has or has not provided service previously in the service area. Able Operators To be considered an “able,” the charter operator must demonstrate two things:
♦ It has the physical capability of providing the categories of revenue vehicles specified in the notice; and
♦ It has the required legal authority to
operate charter service in the area where it desires to provide such service.
In order to prove that it is "able" to provide the service, the charter operator does not have to demonstrate that it has any particular
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capacity level; in other words, a charter operator is as willing and able if it has one bus as it would be if it had one hundred buses. Also, there are only two categories of revenue vehicles that the transit agency can designate in its notice – buses and vans. This means a private operator does not have to demonstrate that it has any particular type of bus in order to be considered "able." A state agency, the Public Utilities Commission of Ohio (PUCO), has responsibility for establishing whether or not a provider possesses the legal authority to operate charter transportation in the state. In order to operate legally, the provider must have either registered as an interstate or intrastate carrier of passengers. At a minimum, such carriers must:
♦ demonstrate financial responsibility (by carrying $350,000 minimum liability insurance);
♦ file PUC Form 3341; and ♦ follow Ohio specific safety rules.
PUCO’s Office of Motor Carrier Registration should be consulted, if necessary, to verify the evidence submitted to the transit system that the operator possesses the requisite authority to operate in the state. Special Circumstances A transit system may exclude tour/charter “brokers” from the definition of willing and able private operators because they do not own equipment. Brokers typically do not own their own equipment and therefore do not meet the tests defined above for willing and able.
Finally, the "willing and able" concept is not intended to include any duration limitations; in other words, the fact that a private operator may be required by state regulation to charge for a minimum five hour trip does not mean that it is not "able" to provide for charter of lesser duration. In some states, such minimums are imposed as a mater of regulation. PUCO, however, imposes no such state mandated minimum duration on charter trips; therefore, this condition is generally not applicable in Ohio.
How Often Do We Need to Conduct the Solicitation Process?
Transit systems need only conduct the solicitation once a year. ODOT recommends that the system conduct the solicitation in concert with the preparation of the annual grant application. If the transit system determines that significant changes have occurred in the marketplace, there is no prohibition from conducting the process again in mid-year. Examples of changes in the marketplace include, but are not limited, to:
♦ An operator previously determined found to be willing and able loses its PUCO authority;
♦ The transit system becomes aware of other interested private operators early in the fiscal year (after the close of the solicitation period).
Again, in either example, the transit system is not obligated to conduct the solicitation process; if it chooses to so, it must follow the same procedures and timeframes outlined earlier in this section.
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Can a Private Operator Retract its
Willingness to Provide Charter Service?
Yes, a charter operator, previously found to be willing and able, may use its own business judgment during the year and elect not to provide charter service in the service area operated by the transit system. If this retraction occurs in mid-year, and no other private operators in the service area have been determined "willing and able," the transit system may resume charter service without re-publishing a notice for the rest of that year only. If, at the end of this period, the transit system wishes to continue providing charter service, it must repeat the public participation notice process to determine if there are any other willing and able operators in the area.
What Happens if A Willing and Able Operator Refuses to Provide Service in
Our Service Area?
If a private charter operator is found to be willing and able (thereby preventing the transit system from engaging in charters) but then refuses to provide charter service in the service area, the regulations provide no recourse to the transit system. The system may only provide charter service to the extent the charter trip meets one or more of the exceptions outlined later in this section. In this circumstance, it is recommended that the transit system communicate with the operator and determine if the company wishes to retract its previously provided statement of willingness to provide service.
Are We Required to Make Referrals to the Public from Our Willing and able
Operators List?
There is no obligation imposed on the transit system to refer inquiries about charter services to companies on the system’s list of willing and able operators. ODOT recommends that transit systems use either an “all or nothing” approach. When an inquiry is received, the transit system may provide a list of all willing and able charter operators. Alternatively, a transit system may simply indicate it is not permitted to provide that type of service and refer the individual to the Yellow Pages. Transit systems should not make referrals of selected companies on the list or should not use a rotation scheme to select a single company for a referral. A transit system may not “steer” charter referrals to favored companies. Are There Any Circumstances When the
Transit System Can Provide Charter Services When There are Willing and
Able Charter Operators?
If, after the solicitation process, a transit system determines that there is at least one willing and able charter operator, the system is prohibited from providing charter services unless the trip meets one or more of the special exceptions to the regulations detailed in 49 CFR part 604.9. There are seven special exceptions. Five exceptions apply to all recipients of FTA assistance. Two exceptions apply only to the Rural Transit Program (Section 5311).
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If one or more of these exceptions exists, the transit system may provide charter service regardless of whether or not there are willing and able private charter operators in the area. Exception No. 1: No Willing and Able Operators A transit system may provide any and all charter services using FTA funded equipment and facilities to the extent that there are no willing and able private charter operators. If, after going through a notice process, the transit system receives no response, charter service may be provided without further restriction or concern. The period extends for one year; thereafter, the system must repeat the solicitation process. Systems should note, however, that deficits generated from charter operation are not an eligible operating expense. Therefore, when entering into charter agreements, the transit system must be certain that the price quoted will fully recover the costs of charter service provision. Exception No. 2: Equipment Leases for Elderly and Disabled Charter Service or to Supplement Capacity A transit system may enter into a contract with a private charter operator to provide charter equipment or to provide charter service on behalf of the private charter operator if:
♦ The private charter operator is requested to provide charter service that exceeds its capacity; or
♦ The private charter operator is
unable to provide equipment
accessible to elderly and disabled persons.
This exception enables a public transit system to serve as a subcontractor to a private charter company in three circumstances:
(1) A charter operator needs supplemental capacity to augment its own fleet in the provision of a charter service. In this case, the charter operator would lease rolling stock from the public transit system.
(2) A charter operator has neither the
rolling stock nor staff to operate a requested charter. In this case, the operator contracts for supplemental service to be provided by the public transit system.
(3) A charter operator does not have
sufficient accessible vehicles to accommodate a charter party that includes persons with disabilities. In this case, the charter company would lease accessible vehicles from the public transit system to fulfill its obligations under the ADA.
The charter regulations do not require a transit system to fulfill such requests from private operators. Exception No. 3: Special Events A transit system may petition the FTA Administrator for an exception to provide charter service directly for "special events" when the private operators do not have the capacity to provide all necessary service. FTA does not define a special event, however, in subsequent guidance, these events are described as events of national scope and singular in nature. Examples
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given include a visit by the Pope or the Pan American Games. Regularly scheduled yearly or periodic events, such as an Independence Day fireworks display, county fairs, etc. do not qualify as events subject to this exception. Exception No. 4: Social Service Agency Trips A transit system may provide charter to a “social service agency” provided certain conditions are present. These conditions are:
♦ The organization requesting the charter trip is a government entity or a private, non-profit organization exempt from taxation under subsection 501(c)(1), 501(c)(3), 501(c)(4), or 501(c)(19) of the Internal Revenue Code; and
♦ One or more of the following
circumstances are associated with the trip:
o There will be a significant
number of persons with disabilities as passengers on this charter trip; or
o The chartering entity receives funding, or is eligible to receive funding, either directly or indirectly, from agencies listed in Appendix A to 49 CFR part 604 (updated in Appendix A of this guidebook; or
o The chartering entity either receives, or is eligible to receive, either directly or indirectly, from a State or local governmental body public, welfare assistance funds for purposes whose implementation may require the
transportation of a group of transit-disadvantaged or transit-dependent persons; and
♦ The requested charter trip is
consistent with the function and purpose of chartering entity; and
♦ The charter trip will be organized
and operated in compliance with Title VI of the Civil Rights Act of 1964, as amended; and, section 19 of the Federal Mass Transit Act of 1964, as amended, and 49 CFR parts 27 and 37 or, 45 CFR part 80; and,
♦ The transit system obtains a
certification from the chartering entity (see text box, next page) attesting compliance with the three conditions listed in the second bullet item.
It should be noted that in the third condition of the second bullet, ODOT must present a petition to FTA to permit the charter service. Exception No. 5: Charter Operators Permits Trip A transit system may provide charter service directly to the customer where a formal agreement has been executed between the transit system and all private charter operators it has determined to be willing and able in the service area. Once again, there are special circumstances that must be adhered to under this exception:
♦ The agreement must specifically allow the transit system to provide the particular type of charter trip; and
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Required Certifications Under Exception No. 4 The social service agency exception requires that the transit system obtain a written certificationfrom the chartering party. There are three (3) separate circumstances where charter services can be provided; each circumstance has its own certification language, as follows: Significant Number of Persons with Disabilities
[the entity/organization] certifies that it is a government entity or an organization exemptfrom taxation under subsection 501(c)(1), 501(c)(3), 501(c)(4), or 501(c)(19) of theInternal Revenue Code; there will be a significant number of handicapped persons aspassengers on this charter trip; the requested charter trip is consistent with the functionand purpose of [the entity/organization]; and the charter trip will be organized andoperated in compliance with Title VI of the Civil Rights Act of 1964, as amended; and,section 19 of the Federal Mass Transit Act of 1964, as amended, and 49 CFR parts 27and 37; or, 45 CFR part 80.
Eligible Social Service Agency
[the entity/organization] certifies that it is a government entity or an organization exemptfrom taxation under subsection 501(c)(1), 501(c)(3), 501(c)(4), or 501(c)(19) of theInternal Revenue Code; [the entity/organization] is a qualified social service agencyunder appendix A of ODOT’s “FTA’s Charter Regulations: A Compliance Guide forOhio’s Public Transit Systems and Coordination Projects,” as a recipient of funds, eitherdirectly or indirectly, under one or more of the Federal programs listed in appendix A;the requested charter trip is consistent with the function and purpose of [theentity/organization]; and the charter trip will be organized and operated in compliancewith Title VI of the Civil Rights Act of 1964, as amended; and, Section 19 of the FederalMass Transit Act of 1964, as amended, and 49 CFR parts 27and 37; or, 45 CFR part 80.
Welfare to Work
[the entity/organization] certifies that it is a government entity or organization exemptfrom taxation under subsection 501(c)(1), 501(c)(3), 501(c)(4), or 501(c)(19) of theInternal Revenue Code; [the entity/organization] either receives or is eligible to receivedirectly or indirectly, from a State or local governmental body public welfare assistance funds for purposes whose implementation may require the transportation of a group oftransit-disadvantaged or transit-dependent persons; following a petition presented by theState in which the entity or organization resides, FTA has determined in writing that an FTA recipient may contract directly with the entity or organization for charter services;the requested charter trip is consistent with the functions and purposes of the entity ororganization; and the charter trip will be organized and operated in compliance with Title VI of the Civil Rights Act of 1964, as amended; and section 19 of the Federal MassTransit Act of 1964, as amended, and 49 CFR parts 27 and 37; or, 45 CFR part 80.
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♦ The transit system has provided for such an agreement in its annual public charter notice published pursuant to this part before undertaking any charter service pursuant to this exception.
Exception No 6: Nonurbanized Area Economic Hardship There are two special exceptions available only to the Rural Transit Program (recipients of Section 5311 financial assistance). The first is an economic hardship exception. This exception is applicable under limited circumstances. A transit system must specifically seek ODOT’s permission prior to providing charter service under this exception. ODOT’s evaluation of such request will be based on a finding of economic hardship created by one of the following two circumstances:
♦ The willing and able private charter operator or operators impose minimum duration requirements pursuant to state regulation and the desired trip length is shorter than the mandatory trip length; or
♦ The willing and able private operator
or operators are located too far from the origin of the charter service resulting in excessively high rates due to the long deadhead involved.
PUCO imposes no minimum duration requirements. Therefore, only the second condition will be relevant in Ohio. ODOT will evaluate such requests on a case-by-case basis.
Exception No. 7: Nonurbanized Area Elderly Passengers The second rural exception is a charter trip where the chartering entity is a social service agency and more than fifty percent of the passengers are elderly. The following conditions must be present:
♦ The organization requesting the charter trip is a government entity or a private, non-profit organization exempt from taxation under subsection 501(c)(1), 501(c)(3), 501(c)(4), or 501(c)(19) of the Internal Revenue Code; and
♦ More than fifty percent of the
passengers on the trip will be elderly; and
♦ The charter trip will be organized
and operated in compliance with Title VI of the Civil Rights Act of 1964, as amended; and, section 19 of the Federal Mass Transit Act of 1964, as amended, and 49 CFR parts 27 and 37 or, 45 CFR part 80; and
♦ The transit system obtains a
certification from the chartering entity attesting compliance with the these conditions.
The certification of this exception reads as follows:
[the entity/organization] certifies that it is a government entity or an organization exempt from taxation under subsection 501(c)(1), 501(c)(3), 501(c)(4), or 501(c)(19) of the Internal Revenue Code; more than 50% of the passengers on this charter trip will be elderly; the requested charter trip is consistent with the function and purpose
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of [the entity/organization]; and the charter trip will be organized and operated in compliance with Title VI of the Civil Rights Act of 1964, as amended; and, Section 19 of the Federal Mass Transit Act of 1964, as amended, and 49 CFR parts 27 and 37; or, 45 CFR part 80.
FTA does not define “elderly.” If the transit system receives Elderly and Disabled Transit Fare Assistance funds from ODOT, elderly will be defined consistent the transit system’s definition used in this program. If a transit system anticipates provision of charter trips under this exception, the system should publish in its annual notice soliciting willing and able operators its definition of “elderly.” In no case shall this definition include persons less than 60 years of age.
Are There Any Other Requirements Imposed on the Transit System When We
Do Provide Charter Service?
If the transit system publishes the notice and finds that it can meet one of the seven exceptions, the system may provide charter services. However, there is one final element in 49 CFR part 604. Any allowable charter service that is provided is permitted only to the extent the charter trip is “incidental” to the provision of eligible mass transportation.
What is Incidental Charter Service?
Any charter service provided by the transit system must be “incidental.” Incidental
charter service means charter service that does not:
♦ interfere with or detract from the provision of the mass transportation service for which the equipment or facilities were funded under the Acts; or
♦ does not shorten the mass transportation life of the equipment or facilities
Examples of what would not be “incidental“ may include:
♦ service performed during peak hours; ♦ service which does not meet its fully
allocated cost; ♦ service being used to count toward
meeting the useful life of any facilities or equipment; or
♦ service provided in equipment that is in excess of an ODOT approved spare ratio.
Note that this list is merely guidance; peak hour service may not be indicative of non-incidental charter. Again, ODOT will evaluate such situations on a case-by-case basis. This guidance also does not impose upon transit systems a requirement to track charter usage by specific system vehicles to comply with the useful life criterion above. The rule permits any reasonable computation. The system may apply an average of charter usage to all system vehicles, for example. The key element is that the system may not replace vehicles in advance of their useful life plus accumulated charter usage. Records of specific charter usage should be maintained to document this requirement.
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Can We Provide Charter Service If the Chartering Party Requests Use of Our
Trolley Vehicle?
Many public transit systems operate specialty vehicles (e.g., replica trolleys, double decker buses, etc.) that may not be operated by willing and able private charter companies in your service area. However, as FTA recognizes only two types of equipment in its charter regulations (buses and vans), requests to use a system’s specialty vehicles is not an allowable charter opportunity under the exceptions listed above. If We Opt to Provide Service Free to the
Chartering Party as a Gesture of Goodwill, Are We Still Subject to the
Regulations?
Cost is not relevant in determining whether or not a service is a charter. If other elements of the service indicate the service is charter, the transit system is subject to these regulations. Can We Use System Vehicles to Respond to Request for Service from Our County
Board of Commissioners?
Many rural transit systems are departments of city or local government rather than separate authorities or commissions. As such, they are occasionally requested by another city or county department to make a bus available for some use, typically to take members of the city council and staff on a
tour of that department's facilities or projects, or some other trip in connection with the department's operations. FTA has determined that such trips described above share most of the characteristics of charter service. Since the regulations do not include an exception for a particular category of customers (local elected officials), a transit system that wishes to provide service of this type would be obliged to comply with the requirements of the charter regulations. What if We Are Ordered to Use Transit
System Vehicle in a Court of Law?
ODOT is aware that in some cases a court order has been issued to transport juries or other related parties to legal proceedings and that the local transit system was designated to provide the vehicles. Such trips are charter services and are not permitted under the regulation. If a transit system finds itself subject to such an order, ODOT recommends that the system’s legal counsel advise the court of this Federally imposed limitation to provide such service. This may result in the order being withdrawn or rescinded. What are the Consequences for Violations
of the FTA Charter Regulations?
ODOT will monitor transit system compliance through a combination of techniques, including a review of the proposed scope of transit services contained in the annual grant application, periodic site visits, and the management performance
FTA’s Charter Regulations: A Compliance Guide for Ohio’s Public Transit Systems Page 33
review process. Further, ODOT will conduct formal inquiries in response to complaints raised by private charter operators. If violations are found to exist, ODOT may order the transit system to cease operating the service, order the system to re-design the
service, or operate the service as an eligible charter service consistent with these guidelines. Failure to adhere to one of these remedies may result in a withholding of the system’s transit operating subsidy payments or other such remedies as deemed appropriate by ODOT.
Appendix A.
List of Federal Funds
Appendix II: Inventory of Federal Programs
Providing Transportation Services to the
Transportation-Disadvantaged
Page 42 GAO-03-697 Transportation Coordination
Program
Popular title of authorizing legislation
U.S. Code provisions authorizing funds for transportation
Typical uses as reported by program officials
Types of trips as reported by program officials
Target population as defined by program officialsa
Fiscal year 2001 federal spending on transportationb
Department of Agriculture, Food and Nutrition Service
Food Stamp Employment and Training Program
Food Stamp Act of 1977, as amended
7 U.S.C. § 2015(d)(4)(I)(i)(I)
Reimbursement or advanced payment for gasoline expenses or bus fare
To access education, training, employment services, and employment placements
Low-income persons between the ages of 16 and 59
$12,952,956c
Department of Education, Office of Elementary and Secondary Education
21st-Century Community Learning Centers
No Child Left Behind Act of 2001
20 U.S.C. § 7173(a)(10)
Contract for service
To access educational services
Students from low-income families
$84,600,000 (estimate)d
Department of Education, Office of Innovation and Improvement
Voluntary Public School Choice
No Child Left Behind Act of 2001
20 U.S.C. § 7225a(a)
Contract for services, purchase and operate vehicles, hire bus drivers and transportation directors, purchase bus passes, redesign transportation plans including new routing systems, offer professional development for bus drivers
To access educational services and programs
Students from under-performing schools who choose to transfer to higher performing schools
New program, no actual data or estimate available from the federal agency
Department of Education, Office of Special Education and Rehabilitative Services
Assistance for Education of All Children with Disabilities
Individuals with Disabilities Education Act
20 U.S.C. §§ 1401(a)(22), 1411(a)(1)
Purchase and operate vehicles, contract for service
To access educational services
Children with disabilities
No actual data or estimate available from the federal agency
Centers for Independent Living
Workforce Investment Act of 1998
29 U.S.C. §§ 796f-4(b)(3) and 705(18)(xi)
Referral, assistance, and training in the use of public transportation
To access program services
Persons with a significant disability
No actual data or estimate available from the federal agency
Appendix II: Inventory of Federal Programs Providing Transportation Services to the Transportation-Disadvantaged
Appendix II: Inventory of Federal Programs
Providing Transportation Services to the
Transportation-Disadvantaged
Page 43 GAO-03-697 Transportation Coordination
Program
Popular title of authorizing legislation
U.S. Code provisions authorizing funds for transportation
Typical uses as reported by program officials
Types of trips as reported by program officials
Target population as defined by program officialsa
Fiscal year 2001 federal spending on transportationb
Independent Living Services for Older Individuals Who Are Blind
Workforce Investment Act of 1998
29 U.S.C. § 796k(e)(5)
Referral, assistance, and training in the use of public transportation
To access program services, for general trips
Persons aged 55 or older who have significant visual impairment
No actual data or estimate available from the federal agency
Independent Living State Grants
Workforce Investment Act of 1998
29 U.S.C. §§ 796e-2(1) and 705(18)(xi)
Referral, assistance, and training in the use of public transportation
To access program services, employment opportunities
Persons with a significant disability
No actual data or estimate available from the federal agency
Supported Employment Services for Individuals with Most Significant Disabilities
Workforce Investment Act of 1998
29 U.S.C. §§ 795g and 705(36)
Transit subsidies for public and private transportation (e.g. bus, taxi, and paratransit), training in the use of public transportation
To access employment placements, employment services, and vocational rehabilitation services
Persons with most significant disabilities
No actual data or estimate available from the federal agencye
Vocational Rehabilitation Grants
Rehabilitation Act of 1973, as amended
29 U.S.C. § 723(a)(8)
Transit subsidies for public and private transportation (e.g. bus, taxi, and paratransit), training in the use of public transportation
To access employment placements, employment services, and vocational rehabilitation services
Persons with physical or mental impairments
$50,700,000 (estimate)e
Department of Health and Human Services, Administration for Children and Families
Child Care and Development Fund
Child Care and Development Block Grant Act of 1990, as amended
42 U.S.C. § 9858c
States rarely use CCDF funds for transportation and only under very restricted circumstances
To access child care services
Children from low-income families
$0 (estimate)f
Community Services Block Grant Programs
Community Opportunities, Accountability, Training, and Educational Services Act of 1998
42 U.S.C. § 9904
Taxi vouchers, bus tokens
General trips Low-income persons
No actual data or estimate available from the federal agency
Appendix II: Inventory of Federal Programs
Providing Transportation Services to the
Transportation-Disadvantaged
Page 44 GAO-03-697 Transportation Coordination
Program
Popular title of authorizing legislation
U.S. Code provisions authorizing funds for transportation
Typical uses as reported by program officials
Types of trips as reported by program officials
Target population as defined by program officialsa
Fiscal year 2001 federal spending on transportationb
Developmental Disabilities Projects of National Significance
Developmental Disabilities Assistance and Bill of Rights Act of 2000
42 U.S.C. §§ 15002, 15081(2)(D)
Transportation information, feasibility studies, planning
General trips Persons with developmental disabilities
No actual data or estimate available from the federal agencyg
Head Start Augustus F. Hawkins Human Services Reauthorization Act of 1990
42 USCA § 9835(a)(3)(C) (ii)
Purchase and operate vehicles, contract with transportation providers, coordinate with local education agencies
To access educational services
Children from low-income families
$514,500,000 (estimate)h
Refugee and Entrant Assistance Discretionary Grants
Refugee Act of 1980, as amended
8 U.S.C. §§ 1522(b)(7)(D), 1522(c)
Bus passes To access employment and educational services
Refugees No actual data or estimate available from the federal agency
Refugee and Entrant Assistance State Administered Programs
Refugee Act of 1980, as amended
8 U.S.C. §§ 1522(b)(7)(D), 1522(c)
Bus passes To access employment and educational services
Refugees No actual data or estimate available from the federal agency
Refugee and Entrant Assistance Targeted Assistance
Refugee Act of 1980, as amended
8 U.S.C. §§ 1522(b)(7)(D), 1522(c)
Bus passes To access employment and educational services
Refugees No actual data or estimate available from the federal agency
Refugee and Entrant Assistance Voluntary Agency Programs
Refugee Act of 1980, as amended
8 U.S.C. §§ 1522(b)(7)(D), 1522(c)
Bus passes To access employment and educational services
Refugees No actual data or estimate available from the federal agency
Social Services Block Grants
Social Security Act, as amended
42 U.S.C. § 1397a(a)(2)(A)
Any transportation-related use
To access medical or social services
States determine what categories of families and children
$18,459,393
Appendix II: Inventory of Federal Programs
Providing Transportation Services to the
Transportation-Disadvantaged
Page 45 GAO-03-697 Transportation Coordination
Program
Popular title of authorizing legislation
U.S. Code provisions authorizing funds for transportation
Typical uses as reported by program officials
Types of trips as reported by program officials
Target population as defined by program officialsa
Fiscal year 2001 federal spending on transportationb
State Councils on Developmental Disabilities and Protection and Advocacy Systems
Developmental Disabilities Assistance and Bill of Rights Act of 2000
42 U.S.C. §§ 15002, 15025
State Councils provide small grants and contracts to local organizations to establish transportation projects or collaborate in improving transportation for people with disabilities; Protection and Advocacy Systems ensure that people with disabilities have access to public transportation as required by law
All or general trips
Persons with developmental disabilities and family members
$786,605 (partial outlay)i
Temporary Assistance for Needy Families
Personal Responsibility and Work Opportunity Reconciliation Act of 1996, as amended
42 U.S.C. §§ 604(a), (k)
Any use that is reasonably calculated to accomplish a purpose of the TANF program and the allowable matching portion of JARC grants
General trips No assistance is provided to families without a minor child, but states determine specific eligibility
$160,462,214 (partial outlay)j
Department of Health and Human Services, Administration on Aging Grants for Supportive Services and Senior Centers
Older Americans Act of 1965, as amended
42 U.S.C. § 3030d (a)(2)
Contract for services
To access program services, medical, and for general trips
Program is targeted to persons aged 60 or over
$72,496,003
Program for American Indian, Alaskan Native, and Native Hawaiian Elders
Older Americans Act of 1965, as amended
42 U.S.C. §§ 3057, 3030d(a)(2)
Purchase and operate vehicles
To access program services, medical, and for general trips
Program is for American Indian, Alaskan Native, and Native Hawaiian elders
No actual data or estimate available from the federal agency
Appendix II: Inventory of Federal Programs
Providing Transportation Services to the
Transportation-Disadvantaged
Page 46 GAO-03-697 Transportation Coordination
Program
Popular title of authorizing legislation
U.S. Code provisions authorizing funds for transportation
Typical uses as reported by program officials
Types of trips as reported by program officials
Target population as defined by program officialsa
Fiscal year 2001 federal spending on transportationb
Department of Health and Human Services, Centers for Medicare & Medicaid Services
Medicaid Social Security Act, as amended
42 U.S.C. §§ 1396a, 1396n(e)(1)(A)
Bus tokens, subway passes, brokerage services
To access health care services
Recipients are generally low-income persons, but states determine specific eligibility
$976,200,000 (estimate)k
State Children’s Health Insurance Program
Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000
42 U.S.C. §§ 1397jj(a)(26), (27)
Any transportation-related use
To access health care services
Beneficiaries are primarily children from low-income families, but states determine eligibility
$4,398,089
Department of Health and Human Services, Health Resources and Services Administration
Community Health Centers
Public Health Service Act, as amended
42 U.S.C. § 254b(b)(1)(A) (iv)
Bus tokens, vouchers, transportation coordinators, and drivers
To access health care services
Medically underserved populations
$4,200,000 (estimate)l
Healthy Communities Access Program
Public Health Service Act, as amended
42 U.S.C. § 256(e)(1)(B)(iii)
Improve coordination of transportation
To access health care services
Uninsured or underinsured populations
No actual data or estimate available from the federal agency
Healthy Start Initiative Public Health Service Act, as amended
42 U.S.C. § 254c-8(e)(1)
Bus tokens, taxi vouchers, reimbursement for use of own vehicle
To access health care services
Residents of areas with significant perinatal health disparities
No actual data or estimate available from the federal agency
HIV Care Formula Grants
Ryan White Comprehensive AIDS Resources Emergency Act of 1990
42 U.S.C. §§ 300ff-21(a), 23(a)(2)(B)
Bus passes, tokens, taxis, vanpools, vehicle purchase by providers, mileage reimbursement
To access health care services
Persons with HIV or AIDS
$19,500,000 (estimate)m
Maternal and Child Services Grants
Social Security Act, as amended
42 U.S.C. § 701(a)(1)(A)
Any transportation-related use
To access health care services
Mothers, infants and children, particularly from low-income families
No actual data or estimate available from the federal agency
Appendix II: Inventory of Federal Programs
Providing Transportation Services to the
Transportation-Disadvantaged
Page 47 GAO-03-697 Transportation Coordination
Program
Popular title of authorizing legislation
U.S. Code provisions authorizing funds for transportation
Typical uses as reported by program officials
Types of trips as reported by program officials
Target population as defined by program officialsa
Fiscal year 2001 federal spending on transportationb
Rural Health Care, Rural Health Network, and Small Health Care Provider Programs
Health Centers Consolidation Act of 1996
42 U.S.C. § 254c
Purchase vehicles, bus passes
To access health care services
Medically underserved populations in rural areas
No actual data or estimate available from the federal agency
Department of Health and Human Services, Substance Abuse and Mental Health Services Administration
Community Mental Health Services Block Grant
ADAMHA Reorganization Act, as amended
42 U.S.C. § 300x-1(b)(1)
Any transportation-related use
To access program services
Adults with mental illness and children with emotional disturbance
No actual data or estimate available from the federal agency
Substance Abuse Prevention and Treatment Block Grant
ADAMHA Reorganization Act, as amended
42 U.S.C. § 300x-32(b)
Any transportation-related use
To access program services
Persons with a substance related disorder and/or recovering from substance related disorder
No actual data or estimate available from the federal agency
Department of Housing and Urban Development, Office of Community Planning and Development
Community Development Block Grant
Housing and Community Development Act of 1974
42 U.S.C. § 5305(a)(8)
Purchase and operate vehicles
General trips Program must serve a majority of low-income persons
$6,761,486 (partial outlay)n
Housing Opportunities for Persons with AIDS
AIDS Housing Opportunity Act
42 U.S.C. § 12907(a)(3)
Contract for services
To access health care and other services
Low-income persons with HIV or AIDS and their families
$190,252 (partial outlay)o
Supportive Housing Program
McKinney-Vento Homeless Assistance Act of 1987, as amended
42 U.S.C. § 11385
Bus tokens, taxi vouchers, purchase and operate vehicles
To access supportive services
Homeless persons and families with children
$14,000,000 (estimate)p
Department of Housing and Urban Development, Office of Public and Indian Housing
Revitalization of Severely Distressed Public Housing
Housing and Community Development Act of 1992, as amended
42 U.S.C. § 1437v(l)(3)
Bus tokens, taxi vouchers, contract for services
Trips related to employment or obtaining necessary supportive services
Residents of the severely distressed housing and residents of the revitalized units
$700,000 (estimate)q
Appendix II: Inventory of Federal Programs
Providing Transportation Services to the
Transportation-Disadvantaged
Page 48 GAO-03-697 Transportation Coordination
Program
Popular title of authorizing legislation
U.S. Code provisions authorizing funds for transportation
Typical uses as reported by program officials
Types of trips as reported by program officials
Target population as defined by program officialsa
Fiscal year 2001 federal spending on transportationb
Department of the Interior, Bureau of Indian Affairs
Indian Employment Assistance
Adult Indian Vocational Training Act, as amended
25 U.S.C. § 309
Gas vouchers To access training
Native American persons between the ages of 18 and 35
No actual data or estimate available from the federal agency
Indian Employment, Training and Related Servicesr
Indian Employment, Training and Related Services Demonstration Act of 1992
25 U.S.C. § 3401
Gas vouchers Employment-related
Low-income Native American persons
No actual data or estimate available from the federal agency
Department of Labor, Employment and Training Administration
Job Corps Workforce Investment Act of 1998
29 U.S.C. §§ 2888(a)(1), 2890
Bus tickets To access Job Corps sites and employment services
Low-income youth
$21,612,000
Migrant and Seasonal Farmworkers
Workforce Investment Act of 1998
29 U.S.C. §§ 2801(46), 2912(d)
Mileage reimbursement
To access employment placements or intensive and training services
Low-income persons and their dependents who are primarily employed in agricultural labor that is seasonal or migratory
No actual data or estimate available from the federal agency
Native American Employment and Training
Workforce Investment Act of 1998
29 U.S.C. § 2911(d)(2)
Bus tokens, transit passes, use of tribal vehicles and grantee staff vehicles, mileage reimbursement for participants operating “car pool” services
To access employment placements, employment services
Unemployed American Indians and other persons of Native American descent
No actual data or estimate available from the federal agency
Senior Community Service Employment Program
Older Americans Act of 1965
42 U.S.C. § 3056(c)(6)(A) (iv)
Mileage reimbursement, reimbursement for travel costs, and payment for cost of transportation
To access employment placements
Low-income persons aged 55 or over
$4,400,000 (estimate)s
Appendix II: Inventory of Federal Programs
Providing Transportation Services to the
Transportation-Disadvantaged
Page 49 GAO-03-697 Transportation Coordination
Program
Popular title of authorizing legislation
U.S. Code provisions authorizing funds for transportation
Typical uses as reported by program officials
Types of trips as reported by program officials
Target population as defined by program officialsa
Fiscal year 2001 federal spending on transportationb
Trade Adjustment Assistance - Workers
Trade Act of 1974, as amended
19 U.S.C. § 2296(b)
Mileage reimbursement, transit fares
To access training
Persons found to be impacted by foreign trade, increased imports, or shift in production
No actual data or estimate available from the federal agency
Welfare-to-Work Grants to Federally Recognized Tribes and Alaska Nativest
Personal Responsibility and Work Opportunity Reconciliation Act of 1996
42 U.S.C. § 612(a)(3)(C)
Any transportation-related use, though purchasing vehicles for individuals is not allowable
To access employment placements, employment services
American Indians and other persons of Native American descent who are long-term welfare recipients or are low-income
No actual data or estimate available from the federal agency
Welfare-to-Work Grants to States and Localitiest
Personal Responsibility and Work Opportunity Reconciliation Act of 1996
42 U.S.C. § 603(a)(5)(C)
Any transportation-related use, though purchasing vehicles for individuals is not allowable
To access employment placements, employment services
Long-term welfare recipients or low-income individuals
No actual data or estimate available from the federal agency
Work Incentive Grants Workforce Investment Act of 1998, as amended
29 U.S.C. §§ 2801(46), 2864(d)(2)
Encourage collaboration with transportation providers
To access one-stop services
Persons with disabilities who are eligible for employment and training services
No actual data or estimate available from the federal agency
Workforce Investment Act Adult Services Program
Workforce Investment Act of 1998, as amended
29 U.S.C. §§ 2801(46), 2864(e)(2)
Mileage reimbursement, bus tokens, vouchers
To access training
Priority must be given to people on assistance and low-income individuals
No actual data or estimate available from the federal agency
Workforce Investment Act Dislocated Worker Program
Workforce Investment Act of 1998, as amended
29 U.S.C. §§ 2801(46), 2864(e)(2)
Transportation allowance or reimbursement, bus/subway tokens
To access transition assistance in order to find or qualify for new employment
Includes workers who have been laid off, or have received an individual notice of termination, or notice that a facility will close
No actual data or estimate available from the federal agency
Appendix II: Inventory of Federal Programs
Providing Transportation Services to the
Transportation-Disadvantaged
Page 50 GAO-03-697 Transportation Coordination
Program
Popular title of authorizing legislation
U.S. Code provisions authorizing funds for transportation
Typical uses as reported by program officials
Types of trips as reported by program officials
Target population as defined by program officialsa
Fiscal year 2001 federal spending on transportationb
Workforce Investment Act Youth Activities
Workforce Investment Act of 1998, as amended
29 U.S.C. §§ 2801(46), 2854(a)(4)
Public transportation
To access training and other support services
Youth with low individual or family income
No actual data or estimate available from the federal agency
Youth Opportunity Grants
Workforce Investment Act of 1998, as amended
29 U.S.C. §§ 2801(46), 2914(b)
Bus tokens To access program services
Youth from high poverty areas, empowerment zones, or enterprise communities
$415,000 (estimate)u
Department of Labor, Employment Standards Administration
Black Lung Benefits Program
Black Lung Benefits Reform Act of 1977
30 U.S.C. § 923
Mileage reimbursement, transit fares, taxi vouchers
To access health services
Disabled coal miners
No actual data or estimate available from the federal agencyv
Department of Labor, Veterans Employment and Training Service
Homeless Veterans’ Reintegration Project
Homeless Veterans Comprehensive Assistance Act of 2001
38 USCA §§ 2011, 2021
Bus tokens To access employment services
Homeless veterans
No actual data or estimate available from the federal agency
Veterans’ Employment Program
Workforce Investment Act of 1998, as amended
29 U.S.C. §§ 2801(46), 2913
Bus tokens, minor repairs to vehicles
To access employment services
Veterans No actual data or estimate available from the federal agency
Department of Transportation, Federal Transit Administration
Capital and Training Assistance Program for Over-the-Road Bus Accessibility
Title 49 Recodification, P.L. 103-272
49 U.S.C. § 5310
To make vehicles wheelchair accessible and training required by ADA
General trips Persons with disabilities
$2,877,818
Capital Assistance Program for Elderly Persons and Persons with Disabilities
Title 49 Recodification, P.L. 103-272
49 U.S.C. § 5310
Assistance in purchasing vehicles, contract for services
To serve the needs of the elderly and persons with disabilities
Elderly persons and persons with disabilities
$174,982,628
Appendix II: Inventory of Federal Programs
Providing Transportation Services to the
Transportation-Disadvantaged
Page 51 GAO-03-697 Transportation Coordination
Program
Popular title of authorizing legislation
U.S. Code provisions authorizing funds for transportation
Typical uses as reported by program officials
Types of trips as reported by program officials
Target population as defined by program officialsa
Fiscal year 2001 federal spending on transportationb
Capital Investment Grants
Transportation Equity Act for the 21st Century
49 U.S.C. § 5309
Assistance for bus and bus-related capital projects
General trips General public, although some projects are for the special needs of elderly persons and persons with disabilities
$17,500,000 (estimate)w
Job Access and Reverse Commute
Transportation Equity Act for the 21st Century
49 U.S.C. § 5309 note
Expand existing public transportation or initiate new service
To access employment and related services
Low income persons, including persons with disabilities
$85,009,627
Nonurbanized Area Formula Program
Title 49 Recodification, P.L. 103-272
49 U.S.C. § 5311
Capital and operating assistance for public transportation service, including paratransit services, in nonurbanized areas
General trips General public, although paratransit services are for the special needs of persons with disabilities
$0 (partial obligation)x
Urbanized Area Formula Program
Title 49 Recodification, P.L. 103-272, as amended
49 U.S.C. § 5307
Capital assistance, and some operating assistance for public transit, including paratransit services, in urbanized areas
General trips General public, although paratransit services are for the special needs of persons with disabilities
$36,949,680 (partial obligation)y
Department of Veterans Affairs, Veterans Benefits Administration
Automobiles and Adaptive Equipment for Certain Disabled Veterans and Members of the Armed Forces
Disabled Veterans and Servicemen’s Automobile Assistance Act of 1970
38 U.S.C. § 3902
Purchase of personal vehicles, modifications of vehicles
General trips Veterans and service members with disabilities
$33,639,000
Department of Veterans Affairs, Veterans Health Administration
VA Homeless Providers Grant and Per Diem Program
Homeless Veterans Comprehensive Service Programs Act of 1992
38 U.S.C. § 7721 note
20 vans were purchased under this program
General trips Homeless veterans
$565,797
Appendix II: Inventory of Federal Programs
Providing Transportation Services to the
Transportation-Disadvantaged
Page 52 GAO-03-697 Transportation Coordination
Program
Popular title of authorizing legislation
U.S. Code provisions authorizing funds for transportation
Typical uses as reported by program officials
Types of trips as reported by program officials
Target population as defined by program officialsa
Fiscal year 2001 federal spending on transportationb
Veterans Medical Care Benefits
Veterans’ Benefits Improvements Act of 1994
38 U.S.C. § 111
Mileage reimbursement, contract for service
To access health care services
Veterans with disabilities or low incomes
$126,594,591
Total (reported or estimated spending on transportation services for the transportation-disadvantaged)
$2,445,453,139
Sources: GAO analysis of information from the Departments of Agriculture, Education, Health and Human Services, Housing and Urban Development, the Interior, Labor, Transportation, and Veterans Affairs; the Coordinating Council on Access and Mobility; the Catalog of Federal Domestic Assistance; the U.S. Code; the Code of Federal Regulations; and the Community Transportation Association of America.
aA supplemental source for the target populations was the Catalog of Federal Domestic Assistance.
bActual outlays or obligations on transportation are given for programs that track this information. All data are outlays, except for the following programs, which are obligations: Capital Investment Grants, Urbanized Area Formula Program, Nonurbanized Area Formula Program, Job Access and Reverse Commute, Capital and Training Assistance for Over-the-Road Bus Accessibility, Capital Assistance Program for Elderly Persons and Persons with Disabilities, Automobiles and Adaptive Equipment for Certain Disabled Veterans and Members of the Armed Forces, and Veterans Medical Care Benefits. Actual data and estimates are the total for the program, unless otherwise noted as partial outlays or obligations in the table. When actual information was not available, estimates are given based on information provided by program officials or the officials agreed with an estimate made by another source.
cAccording to a program official, outlays for the Food Stamp Employment and Training Program have increased due to changes in the program from the 2002 Farm Bill. The 2002 Farm Bill eliminates the $25 per month cap that the Department of Agriculture will reimburse the states for transportation and other work costs incurred by participants. In fiscal year 2002, federal outlays for transportation were $18,523,535.
dA program official said that 10 percent of total program outlays would be a conservative estimate of transportation outlays.
eGrantees report total expenditures and unliquidated obligations made by the state Vocational Rehabilitation (VR) Agency for transportation services provided to individuals served under the State VR Services Program for a fiscal year. Total obligations include both federal and nonfederal funds under the State VR Services Program, the supplemental federal funds awarded to the State VR Agency for the cost of supported employment services under the Supported Employment Program, and funds from other rehabilitation sources. The Department of Education does not collect data on the specific sources of funds used for transportation obligations under the program. However, based on information available from total annual obligations on a national aggregate basis, a program official estimated that of the total amount reported for transportation, about 96 percent would be from the State VR Services Program, and of that amount approximately 76 percent would be federal funds. Similar estimates could not be made for the Supported Employment Program.
fA program official said that, while transportation is an allowable use of funds, using funds for transportation is not encouraged. Program officials estimate that transportation expenditures are zero or close to zero for this program.
gFiscal year 2001 data are not available because transportation was not an area of emphasis until fiscal year 2002. The preliminary fiscal year 2002 outlays for transportation projects totaled $1,084,798.
hA program official estimated that transportation outlays were 8.3 percent of total outlays.
Appendix II: Inventory of Federal Programs
Providing Transportation Services to the
Transportation-Disadvantaged
Page 53 GAO-03-697 Transportation Coordination
iThis is a partial outlay based on voluntary reporting by grantees. Full outlays are not available because, according to a program official, grantees were not required to report transportation outlays prior to fiscal year 2002. Fiscal year 2002 data are incomplete, however preliminary data on transportation outlays from 46 of the 51 grantees totaled $2,215,498.
jThis is a partial outlay based on the amount grantees reported as non-assistance outlays in a category exclusively for transportation. States reported an additional $356.5 million as outlays on assistance in a category that includes transportation and supportive services, however program officials were unable to determine what percentage of the outlays on assistance were spent on transportation.
kProgram officials indicate that federal data on nonemergency medical transportation are not available. Estimate assumes that transportation outlays are 0.73 percent of total program outlays, based on previous research, including a survey of state Medicaid programs.
lAccording to a program official, grantees report total outlays for transportation and it is not possible to distinguish between federal and nonfederal funds. The official said 22 percent of total transportation outlays would be a good estimate of the federal portion of fiscal year 2001 transportation outlays.
mEstimate of transportation outlays is based on data from grantee’s budget allocations, as suggested by an agency official.
nThis is a partial outlay for transportation through the Community Development Block Grant program. This figure includes transportation outlays for the Entitlement program, but excludes the State Administered program.
oThis is a partial estimate because, according to a program official, data on transportation outlays are not available from all grantees. The program official could not provide an estimate of outlays for transportation for all grantees.
pHUD provided data for transportation spending by 3,187 grantees in fiscal year 2001 that totaled $7,221,569. According to HUD program officials, there are a total of 6,323 grantees, about twice as many as reported data. The officials therefore estimated that about $14,000,000 would have been spent on transportation from all grantees in fiscal year 2001.
qEstimate of outlays for transportation is based on a program official’s review of the budgets from 15 grantees who renewed their grants in fiscal year 2001. The official projected total transportation outlays for the program based on these 15 grantees.
rPublic Law 102-477 is applied to allow tribal governments to consolidate funding from several federal programs. These include: the Department of Health and Human Services’s Temporary Assistance for Needy Families, and Child Care and Development Fund programs; the Department of Labor’s Native American Employment and Training, and Welfare-to-Work Grants for Federally Recognized Tribes programs; and the Bureau of Indian Affairs’ Employment Assistance, Indian Social Service and Welfare Assistance, Adult Basic Education, and Higher Education programs. The Indian Social Services and Welfare Assistance Program is not used for transportation outside 102-477. The Adult Basic Education and Higher Education programs do not target transportation-disadvantaged populations as defined in this study outside of 102-477. The Employment Assistance program and the HHS and DOL programs provide transportation assistance separately from 102-477.
sA program official estimated that transportation outlays were approximately 1 percent of total program outlays.
tProgram funding from fiscal year 1998 and 1999 may still be spent, but the program no longer receives funding.
uEstimate of transportation outlays is based on a program official’s review of grantee obligations.
vAccording to a program official, fiscal year 2001 data are not available due to changes in the program’s reporting system. The official reported that transportation outlays for fiscal year 2002 totaled $478,408.
Appendix II: Inventory of Federal Programs
Providing Transportation Services to the
Transportation-Disadvantaged
Page 54 GAO-03-697 Transportation Coordination
wAccording to a program official, there are three distinct allocations of funds under the Capital Investment Grants: the New Starts allocation, which funds new rail projects; the fixed-guideway modernization allocation, which provides funding to maintain and update aging rail systems; and the bus allocation, which provides funding for the purchase of buses, bus-related equipment and paratransit vehicles, and for the construction of bus-related facilities. Because the Capital Investment Grants fund projects that provide services for the general public, the transportation-disadvantaged likely benefit from many projects funded through each of the three allocations, but information was not available to estimate what portion of these funds for the general public benefit the transportation-disadvantaged. However, the program official said that the bus allocation would likely provide the most direct benefit for the transportation-disadvantaged and the obligation level could be estimated by totaling allocations to purchase vans, buses for the elderly or disabled, or paratransit vehicles and equipment.
xThe Nonurbanized Area Formula Program funds projects that provide services for the general public, however grantees can use up to 10 percent of their funds to provide complementary ADA paratransit services. Although grantees did not report obligations for complementary ADA paratransit, a program official said that transportation-disadvantaged populations might benefit from other services provided through this grant, such as demand-responsive services. However, the program official could not identify the amount of spending that directly benefits the transportation-disadvantaged.
yAccording to a program official, the Urbanized Area Formula Program funds projects that provide services for the general public, however grantees can use up to 10 percent of their funds to provide complementary ADA paratransit services. The figure listed in the table is the total obligations that grantees reported for providing complementary ADA paratransit services. Although grantees may benefit from other services provided through this grant, such as demand-responsive services, the amount spent on complementary ADA paratransit is the only portion that program officials could identify as directly benefiting the transportation-disadvantaged.