Annual Transit Conference August 2009

Bureau of Passenger Transportation

Presentation Overview

FY2009 and FY2010 CTF Budgets Recovery Act Vehicle Update and Mi Deal Federal Applications Federal and State Reviews Economic Benefit Contract Notes

FY 2009 CTF Budget

FY 2009 Comprehensive Transportation FundProgram Appropriations

Intercity Service/ Equipment, $1,875,000

Rail Passenger, $7,300,000

Marine Passenger, $400,000

Freight and Port, $4,792,900

Specialized Services,

$4,100,100

Bus Transit Capital, $9,403,000

Transportation to Work, $4,844,000

Intercity Terminals, $550,000

Other Public Transportation (Municipal Credit,

Vanpooling, Service

Initiatives) $2,311,500

Local Bus Operating, $166,624,000

CTF Total Program $202,200,500

FY2009 CTF – Local Transit Programs

Specialized Services

$4,100,1002%

Local Bus$166,624,000

89%

Bus Transit Capital$9,403,000

5%

Other$2,311,500

1%

Transportation to Work

$4,844,0003%

Local Transit Total -

$189,043,200

Other - Municipal Credit, Service Initiatives, Vanpool

FY 2010 CTF Governor’s Budget

Revenue Projections

Declining gas tax revenue Toll credits and bond funds won’t be an

answer to shortfalls

FY 2010Governor’s Comprehensive Transportation FundProgram Appropriations

Local Bus Operating, $166,624,000

Marine Passenger, $374,600

Rail Passenger, $5,667,000

Freight and Port, $2,732,400

Intercity Service/ Equipment, $700,000

Intercity Terminals, $150,000

Specialized Services, $3,848,100

Bus Transit Capital, $5,178,200

Transportation to Work, $4,536,400

Other Public Transportation (Municipal Credit, Vanpooling,

Service Initiatives) , $2,118,000

CTF Total Program $191,928,700

FY2010 CTF – Local Transit ProgramsGovernor’s BudgetSpecialized

Services$3,848,100

2%

Local Bus$166,624,000

92%

Bus Transit Capital$5,178,200

3%

Other$2,118,000

1%

Transportation to Work

$4,536,4002%

Local Transit Total -

$182,304,700

Other - Municipal Credit, Service Initiatives, Vanpool

FY2010 CTF – Local Transit ProgramsSenate Version BudgetSpecialized

Services$3,848,100

2%

Local Bus$162,340,600

93%

Bus Transit Capital$2,178,200

1%

Other$1,423,000

1%

Transportation to Work

$4,536,4003%

Local Transit Total -

$174,326,300

Other - Municipal Credit, Service Initiatives

Senate vs. Governor’s Budget Senate version is $7,978,400 lower for Local

Transit Programs LBO reduced by $4.3 million Bus Transit Capital reduced by $3 million Vanpool funding eliminated

Local Bus Operating

FY 2010 – Projected Governor’s budget $166.6M (Senate $162.3) Statewide budgeted eligible expenses $541M Urban > 100,000 pop – 29.47% Nonurban and urban < 100,000 pop – 34.77% Senate – 28.64 % and 33.75 %

FY2009-13 Five Year ProgramLocal Public Transit Costs vs. Revenues

State Share of Operating Expenses

48.90%

41%33.48% 32.52%

28.44%23.94%

18.49%

58.68%

49.13%

39.91% 38.62%34.13%

28.73%22.18%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

1998 2000 2005 2007 2008 2010 2013

Urban Nonurban

1998 - 2007 actual; 2008 - 2013 projected

Operating Expenses by Category

$0$100,000,000$200,000,000$300,000,000$400,000,000$500,000,000$600,000,000$700,000,000

1995 2000 2005 2007 2008

Fuel Insurance

Other Wage & Fringe

State Reimbursed Expenses

CAPITAL MATCH

Capital Match

FY 2009 Federal for buses $37M – matched with $9.3M of

mostly cash Federal for facilities - $20M – matched with $5M

of mostly bond funds Federal for equipment, preventive maintenace -

$56M – matched with $11M of toll credit Some projects not yet under contract so will need

to use FY 2010 match

Capital Match

FY 2010 Governor’s Budget Appropriations is $5.1M

(Senate Bill $2.1M) Toll credit – do not have department approval to

use Bond funds – Can only be used for projects that

will be completed by FY 2011 This shortfall will continue into future years

American Recovery and Reinvestment Act(Recovery Act)

Section 5307

All urban agencies have applied MDOT’s Section 1511 certifications

completed 5 agencies have grants awarded Approximately $1 million was reallocated

$500,000 to Saginaw (City of Promise) $500,000 to MDOT for mini-hybrids Contracts mailed in August – must be executed

by 9/15

Section 5311

Phase 1 application submitted 21 agencies New facility construction, facility purchase, facility

improvement, replacement buses, intercity coaches, shelters, and signage

$13 million – 53% of local transit $s and 42% of intercity $s

State/local project authorization – mailed in August - must be executed by 9/15

Section 5311

Phase 2 Results of Summit

Operating assistance - highest priority need 37 percent for vehicles 28 percent for facility upgrades 28 percent for communications technology AND safety

and security

Section 5311 – Phase 2

Preliminary strategy – local transit Operating Assistance - $2.1 million - 2% increase

Upgrade of infrastructure is MDOT’s priority For Remaining Capital Funds

About 5% – new facilities About 60% – vehicles including hybrids About 25% – facility upgrades including greening About 10% – communications and safety/security

equipment

Section 5311 – Phase 2

Preliminary strategy – Intercity Bus

Facility improvements

Motorcoach replacement – Indian Trails and Greyhound

Transit Investment in Greenhouse Gas and Energy Reduction (TIGGER)

Discretionary program $100 million available nationwide Support transit capital projects that resulted

in greenhouse gas reductions or reduced energy use

FTA should announce awards at end of fiscal year

TIGGER 

MDOT application on behalf of: ALTRAN: hybrid electric bus Allegan: wind turbines & solar panels AATA: Ultra-light hybrid buses Blue Water: CNG compressor Clinton: facility energy reductions Jackson: hybrid buses

TIGGER

Other Michigan TIGGER applications: AATA: Mini-hybrid thermal systems and hybrid electric

buses BATA: Fuel cell bus CATA: Mini-hybrid thermal systems and hybrid electric

buses MTA: Modifications to facilities for CNG buses and

hybrid electric buses Thunder Bay: hybrid electric buses SMART: Mini-hybrid thermal systems, hydrogen hybrid,

and hybrid electric buses

Grants for Transportation Investment Generating Economic Recovery (TIGER) 

$1.5 billion available nationwide Multi-modal discretionary program to support

major capital infrastructure investments for highways, transit, aviation, and ports

Will be awarded on a competitive basis to projects that have a significant impact on the Nation, a metropolitan area, or a region.

Administered by the Office of the Secretary Applications are due by September 15, 2009.

TIGER

MDOT application – transit projects under development

Urban agencies - Fisher Coachwork buses Working with RTCC on a possible Southeast

Michigan Transit application

Recovery Act Reporting

Section 1201 c (FTA) – Periodic Section 1512 c (OMB) – Quarterly Milestone Progress Report (FTA) –

Quarterly Congress (House Committee T & I) –

Monthly Special inquiries from multiple sources

Recovery Act Reporting

Reporting elements include: Project description and amount Project status – bid, contract, spent, etc. Job information - # of jobs, hours and $

Collection of data by MDOT Will expand milestone report format Rurals will report through MDOT – also Small Urbans for

the House T & I report Working with Governor’s office on OMB reporting –

agencies may report through federal system Important to submit information timely

Recovery Act Reporting

All recipients, subrecipients, and contractors receiving funds under ARRA must:• Obtain a DUNS number • Register on the Central Contractor Registration

(CCR) database• Both will be used for ARRA reporting• Also may need to register for the 1512

reporting• DOT will send an email with instructions

Recovery Act – Transparency State and federal websites – all 1511

certifications – list recovery projects included in TIPs and STIP

Press releases Ground breaking ceremonies Recovery stories Logos on projects or for vendors

Recovery Act - Transparency

Recovery Act – TransparencySupplier Logo

Intercity and Passenger Rail

Intercity Bus Terminals

New facility construction and minor upgrades underway throughout the intercity bus network St. Ignace Battle Creek Detroit Pontiac Southfield Saginaw East Lansing Owosso

Intercity Bus Terminals

Phase 1 - Potential American Recovery and Reinvestment Act (ARRA) Projects Gogebic – Passenger shelters Saginaw – Facility upgrades Shiawassee – ADA upgrades Statewide – Pathway signs

MDOT Office of High Speed Rail and Innovative Projects Advancement

Focal point for MDOT high speed rail funding under ARRA

Also strategic planning, administrative, and operational support for all public-private partnerships within MDOT

Joint venture of the Bureaus of Transportation Planning; Passenger Transportation; Highway Development: Aeronautics and Freight, and Finance and Administration

Office answers to Director Steudle

Tim Hoeffner has been asked to head this office

From the Bureau of Passenger Transportation - Al Johnson, Therese Cody and Mike Bedore on special assignment to the new office. Office will oversee our ongoing rail passenger program

STATE VEHICLE CONTRACTS

State Vehicle Contracts – Multiple Awards Small bus

Hoekstra Transportation (El Dorado) Shepard Brothers (Coach and Equipment) Expire March, 2011

Medium bus Midwest Transit Equipment (Startrans) Hoekstra Transportation (El Dorado) Expire May, 2011

Hybrid Small bus (cutaway) Midwest Transit Equipment (Startrans) Expire August, 2011

State Vehicle Contracts

State vehicle contract/ordering information available on our state web site

State Vehicle Contracts vs. Local Purchase

Medium Bus Price – Hoekstra Transportation /ElDorado (International) vs. Midwest Transit Equipment/Startrans (GM) – International chassis approximately $21,000 more then GM chassis

Future State Vehicle Contracts Volume Purchasing

MiDEAL

Cooperative purchasing program: Allows local units of government to purchase from State

contracts on the same terms, conditions and prices Administered by DMB Over 150 competitively bid contracts available

Average savings (based on lg. volumes) – 25% Saves time spent sending out bid requests and

negotiating contracts Nominal annual membership fee for Transportation

Authorities: $180

MiDEAL

Features and Benefits Wide range of products and services

Road salt and fuel oil Vehicles Buses – small cutaway/medium Hybrid buses – coming soon Energy audits Tires Office supplies and furniture Software Lawn and garden equipment Cell phones Copiers Etc.

MiDEAL

How to join Visit our website: www.michigan.gov/mideal

Contacts Phone: Mary Hanses (517)335-4364 Email: HansesM@michigan.gov Listserv: www.mi.us/listserv/subscribe.html Questions about presentation:

Genevieve Hayes (517)335-4730 or hayesg2@michgan.gov

MI JumpStart

Streamlined program to provide additional staffing for Recovery Act of 2009 projects Vendors are pre-registered Provide specified skill sets

Environmental specialists, auditors, IT specialists, accountants, etc.

Registered vendors can provide services to state agencies and local units of government

Questions: Jacque Kuch (517)(241-0239) or www.michigan.gov/buymichiganfirst

FEDERAL AND STATE REVIEWS

Title VI Review

Remaining items

Limited English Proficiency (LEP) Plan – have not received from all agencies (Due 8/15/08)

Title VI Plans including complaint procedures – have not received from all agencies (Due 6/5/09)

Add Title VI Section to Compliance Monitoring

State Management Review

Remaining items

Satisfactory Continuing Control• Develop procedures to manage and maintain control over all

FTA-funded assets• Provide a list of all FTA-funded assets

Maintenance• Develop a program and schedule for obtaining facility

maintenance plans from all subrecipients DBE

• Include requirement for transit vehicle manufacturers (TVM) certification in all bid specs and that subrecipients must obtain from all successful bidders

Drug and Alcohol Compliance

FY 2009: October and November – Reasonable Suspicion and Requirements of Service Agents

Continue to provide yearly drug and alcohol training

MDOT’s contract with NDI expires in December 2009 – we will go out to bid this summer

Procurement System Review (PSR) FTA will be conducting a PSR of MDOT this year May include site visits of some rural transit agencies Purposes of PSR:

Assist grantees to maintain efficient and effective procurement systems

Ensure that its grantees expend their funds in accordance with FTA regulations

Phase of PSR Assessment Phase Contract Review Phase Reporting Phase

Federal Compliance Reviews MDOT Team updating the checklists

Charter, ADA, and Drug and Alcohol portions have been updated

Adding new section on procurement and Title VI Revising transit letter format Planning to use new checklists beginning Oct

Timely Project Completion

Recovery Act – significant emphasis

FTA will be meeting with MDOT quarterly on open federal grants – first meeting September 30, 2009

MDOT will begin emphasizing timely completion on all contracts Majority of project authorizations extended multiple

times Many capital match contracts over five years old FTA Region V wants federal grants closed more quickly

MDOT considering guidelines for project completion

FEDERAL APPLICATIONS

Federal Applications – FY 2009 Section 5309 Earmarks – submitted Section 5309 Statewide – will submit in September Section 5310 – submitted Section 5311 Flex – submitted Section 5311 Recovery Act - submitted Section 5311 Recovery Act Flex – will submit in fall

once all task forces have sent in projects Section 5307 Recovery Act - submitted

Federal Applications - 2010 Section 5316 JARC – small urban and rural –

submitted Section 5317 NF – small urban and rural –

submitted Section 5311 Operating – will submit in the

fall

ECONOMIC BENEFIT

Economic Benefit of Transit Overall Goal: Build an Economic Analysis

Model for Transit Agencies to Measure Local Economic Benefits. Model should be: Operable by Local Agencies without external

consultation Scalable to fit urban to rural systems Able to Update and Replicate the Model Over

Time at Minimal Expense Able to Aggregate a Statewide Picture of Local

Transit Economic Benefits

Economic Benefit of Transit Phase I Completed June 2009 - Model Development and Initial

Testing at The Rapid and ICTC Phase II To Start August-September, 2009. Complete by May

2010. Major Elements of Phase II include: Local economic data collection including user

surveys; local employment data; health care related data; social service data

Local data analysis Develop eight in depth case studies of selected

communities (based on the eight transit agency classifications in PTMS)

User training

CONTRACT NOTES

Capital Payment Request Format The agency must provide a cover letter requesting

reimbursement for any eligible project costs.   The cover letter must include:

the agreement and project authorization numbers the payment request number (e.g., request #3) identification of the payment as partial or a final payment the amount to be reimbursed and, if applicable, the third party contract number Highly recommended that line item balances be included

JARC and New Freedom

Farebox revenue is NOT eligible as local match for JARC and New Freedom. Therefore, the agency should back out the

farebox amount from the eligible expenses using code 55008 Other Ineligible Expenses.

A Cost allocation plan is required if providing other services. Method of Farebox allocation should be stated in

CAP.

Cost Allocation Plan (CAP)

The CAP should clearly state which expenses will be allocated and which expenses will be direct expense.