Vanpool Funding from USDOT What is a

Vanpool Funding from USDOT

What is a commuter vanpool? § § § A big carpool with rules and a schedule! Volunteer driven Near home & work Long commutes Shared expense Monthly subscription Group determines schedule and route § 10 cars 1 vanpool

Simple Benefit: Net Vehicle Reduction 1. 2 occupants 10 Cars 12 occupants 1 Vanpool

Vanpool Programs for the Commuting Public • Private sector initiatives New York, Los Angeles, Washington, San Francisco, Philadelphia, Boston • Public sector initiatives Chicago, Seattle • Public/Private Partnerships Detroit, Dallas-Fort Worth, Houston. Galveston, Atlanta, Miami-Fort Lauderdale, Phoenix, Minneapolis-St. Paul

The Make-Buy Decision • • Purchase/Lease vans – FTA Capital Grant (80% Federal / 20% State-Local) – At-risk, disposition responsibility – Subject to out-of-service depreciation, insurance, etc. Contract for Service – FTA Capital Cost of Contracting (80% Federal / 20% State/Local) – Never at-risk, no disposition responsibility – Pay only for revenue service, no downtime expense Maintenance – Preventive Maintenance is 80% Federal / 20% State & Local Insurance, Marketing and Management – 80% Federal for “Non-Operating Expense” in Rural Areas (5311)

FTA Capital Cost of Contracting Turnkey service contract • • • Vehicles Maintenance Service delivery Fare collection Subsidy mechanism Payment terms – Net 30 days FTA Third-Party Contracting Guidelines FTA National Transit Database (NTD) Reporting Audit Provisions 50% of Total Cost at 80% Federal and 20% State/Local Translation: 40% Federal, 10% Local and 50% Fares

4 Year Cash Flow – One vanpool Year 1 Year 2 Year 3 Year 4 Total Vehicle (At-Risk) $26, 000 $0 $26, 000 Maintenance 250 750 1, 250 1, 750 4, 000 Interest 900 900 3, 600 Spares 600 600 2, 400 $27, 750 $2, 250 $2, 750 $3, 250 $36, 000 Federal (Capital) $7, 200 $28, 800 Local (Capital) 1, 800 7, 200 $9, 000 $36, 000 Private Expense Public Expense

Existing Private Vanpool Operations

Federal Funding for Vanpools • FTA Section 5307 – Urban Formula Funding • FTA Section 5311 – Category “C” • FTA Section 3037 – Job Access and Reverse Commute (JARC) • FHWA CMAQ – Transfer to FTA @ 100% • Flexible Funding – Between sections for unspent monies

FTA Section 5307 Large UZA (200, 000+ population) – Funds flow to designated recipient – MPO planning process – Formula based on reported NTD statistics 1. 2. 3. 4. 5. 6. Bus/Vanpool Revenue Miles Bus/Vanpool Passenger Miles Fixed Guideway Revenue Miles (Rail, HOV, Ferry) Fixed Guideway Miles (Rail, HOV, Ferry) Population Density – Capital: 80% Fed / 20% State & Local 90% Federal for ADA and Clean Air Act – Operating: None

Capital & Operating Expense/Rev-Mile Motor Bus, ADA Paratransit & Vanpool (Texas) Current Formula @ $0. 39/Rev-Mile (Large) and $0. 52/Rev-Mile (Medium) FY 2001 National Transit Database Statistics, USDOT Reauthorization proposal – Increases to ~$0. 55/Rev-Mile (1 MM Pop. ) and ~$0. 60/Rev-Mile (200 K->1 MM Pop. )

Balance CCof. C & Formula CCof. C CMAQ CCof. C Formula Takes two years to reach formula cycle.

FHWA CMAQ Funding (Billions $) 100% Federal for Vanpool projects

FTA Section 5307 Small UZA (50 K to 200 K population) – – Funds flow to Governors or designees State DOT planning process Formula: Population & Population Density Capital: 80% Fed / 20% State & Local 90% Federal for ADA and Clean Air Act – Operating: 50% Fed / 20% State & Local

FTA Section 5311 • Category A – Projects meet all Federal requirements • Category B – Projects in process of meeting Federal requirements • Category C – “Program Reserve” – – Funds to finance unidentified projects Not a contingency fund for Category A & B No more than 10% of total grant can be in “C” Use it or lose it!

FTA Section 5311 Eligibility • Areas not currently in UZA are eligible for Sec. 5311 funding, even if they are included in metro area planning boundary (which includes the AQ non-attainment boundary) • Projects may include transportation TO and FROM urbanized areas • Service area may include destinations CROSSING a state lines

FTA Section 5311 & Vanpools Eligible Project Costs at 80% Federal $$$ – Capital Vans, Financing, Maintenance, Delivery Charges – Non-Operating Project management and Marketing Insurance premiums & payments to self-insurance reserve Facilities and equipment rental Standard overhead rates Drug and alcohol testing “Promoting and coordinating ridesharing eligible, if part of coordinated public transportation program. ”

Vanpool Pricing Scenario Urban FTA 5307 Rural FTA 5311 Federal Capital $ 600 $ 868 State and Local Capital $ 150 $ 217 Federal Operating $0 $ 208 State and Local Operating $0 $ 208 Fare Revenue $ 750 $ 208 Total Fare Revenue $ 900 $ 425 Fare Revenue

Job Access & Reverse Commute (JARC) FTA Section 3037 • Use of transit/vanpool by workers with non-traditional work schedules • Use of transit/vanpool vouchers for welfare and eligible low-income recipients • Use of employer-provided transit/vanpool, including the Commuter Choice program Flint 4 2 Lansing 2 1 Ann Arbor Troy Mt. Clemens 2 Detroit