Appendix G. Wisconsin DOT: Q&A from FTA
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1 Appendix G Wiscnsin DOT: Q&A frm FTA
2 Questins & Answers Elderly Individuals & Individuals with Disabilities (Sectin 5310), JARC & New Freedm Prgrams Last Updated March 25, 2008 All Prgrams: 1. Q. D applicants have t list the surce f nn-u.s. DOT funds fr the lcal match? A. As a general rule, applicants d nt have t list the surce f a nn-u.s. DOT lcal match. Hwever, FTA grant representatives reserve the right t ask fr mre detailed infrmatin frm the grantee such as the surce f lcal match. 2. Q. Are cntributins f funds frm human service agencies eligible t be used as lcal match? Hw are these applied as lcal match? A. Lcal funds and nn-u.s. DOT federal funds may be used as lcal match fr these prgrams. If human service agencies are using ther federal funds as a surce f lcal match, the grantee shuld verify that thse funds are eligible t match transprtatin prjects and are being used fr eligible csts f the prject. 3. Q. Can revenue frm human service transprtatin cntracts be used as lcal match? A. Incme frm cntracts t prvide human service transprtatin may be used either t reduce the net prject cst (treated as revenue) r t prvide lcal match fr New Freedm r JARC perating assistance. In either case, the cst f prviding the cntract service is included in the ttal prject cst. FTA prgram funds may nt be used as a surce f lcal match fr ther FTA prgrams, even when used t cntract fr service. Fr example, if a Sectin 5310 subrecipient has a service cntract t buy service frm a Sectin 5311 prvider, the Sectin 5311 prvider may nt use the revenue frm the Sectin 5310 service cntract as lcal match fr ther FTA grants. 4. Q. Wh is respnsible fr determining that matching funds are allwable fr transprtatin purpses? A. The grantee is respnsible fr ensuring that nn-u.s. DOT federal funds may be used t match transprtatin prjects and that the funds are available fr the prject. 5. Q. If the MPO, State DOT r ther designated recipient had a JARC plan in place prir t the passage f SAFETEA-LU, what else d they need t d t be in cmpliance with the crdinated planning requirements t receive JARC, New Freedm, r Sectin 5310 funds fr FY 2007? A. In rder t receive prgram funds fr FY 2007 the MPO, State DOT, r ther designated recipient must 1) make an assessment f available services; 2) make an assessment f needs; 3) develp strategies t address gaps fr target ppulatins; and 4) the lead agency develping the G-1
3 plan shuld als include the needs f elderly individuals and individuals with disabilities in the crdinated plan, unless they d nt plan t apply fr Sectin 5310 r New Freedm funding. 6. Q. If the MPO, State DOT, r ther designated recipient did nt have a crdinated plan prir t the passage f SAFETEA-LU, will they need t have a cmpleted plan in place t receive JARC, New Freedm, and/r Sectin 5310 funds fr fiscal year 2007? A. Yes, and the crdinated plan shuld be cnsistent with the prgram circulars fr fiscal year 2007 planning requirements. These requirements are utlined in Chapter V f the prgram circulars. 7. Q. Beginning in fiscal year 2008, must MPOs, State DOTs, and ther designated recipients have a cmpleted crdinated public transit-human service transprtatin plan in place in accrdance with the JARC, New Freedm, and Sectin 5310 prgrams befre they can be awarded any prgram funds? A. Yes. FTA expects plans develped fr FY 2008 and beynd t include mre infrmatin than plans develped fr FY Please see Chapter V f the prgram circulars fr the required elements f crdinated plans. JARC (Sectin 5316) and New Freedm (Sectin 5317) Prgrams: 8. Q. Can a Small Urbanized Area be a designated recipient? A. N. Please see Chapter III, Sectin 4, ELIGIBLE DIRECT RECIPIENTS, in the JARC and New Freedm circulars, stating, The State is the designated recipient and may apply directly t FTA fr grant funds fr itself and its subrecipients. This is cnsistent with the language fund in 49 U.S.C and Q. When transferring funds frm JARC r New Freedm t Sectin 5307 r Sectin 5311, is a certificatin r declaratin needed t assure JARC and New Freedm needs are met? A. N. Please see Chapter III, Sectin 8 f the circulars: Transfer t Other FTA Prgrams. A State may transfer funds apprtined t it fr rural r small urbanized areas t apprtinments under Sectin 5311(c) r 5307, r bth. The purpse f the transfer prvisin, hwever, is nt t supplement the resurces available under the State s Sectin 5311 r Sectin 5307 apprtinments. Transfer t Sectin 5311 r Sectin 5307 is permitted, but nt required. Transferred funds must be used fr JARC and New Freedm prjects. A State may make the transfer nly after cnsulting with lcal fficials and publicly wned peratrs f public transprtatin. The perid f availability fr the transferred funds is nt changed by the transfer. Ntificatin f Transfers. The State must ntify the FTA reginal administratr f the State s intent t have funds transferred s that FTA can initiate the transfer. Fr transfers f JARC r New Freedm funds int the Sectin 5307 prgram fr urbanized areas (UZAs) under 200,000 in ppulatin r Sectin 5311(c), and fr transfers f flexible funds, the ntificatin G-2
4 must indicate the amunt f funds transferred, the recipient f transferred funds, and the prgram t which they are being transferred. 10. Q. Hw d we differentiate State administratin fr each prgram at the time f draw dwn if funds are transferred t Sectin 5307? Hw will we knw if they are JARC r New Freedm funds? A. JARC, New Freedm, and Sectin 5307 funds shuld nt be cmbined in a single grant. Grantees shuld have individual Sectin 5307 grants fr each prgram. A Sectin 5307 grant that cntains JARC r New Freedm funds shuld use the apprpriate scpe cde in TEAM ( fr JARC and fr New Freedm.) 11. Q. What is the difference between a direct and a designated recipient? A. The designated recipient is the entity designated, pursuant t 49 U.S.C. 5302(a)(2), by the Gvernr f a State t receive FTA funds. Under the JARC and New Freedm prgrams, the designated recipient is respnsible fr cmpetitively allcating JARC r New Freedm funds t itself and subrecipients in an area. The direct recipient is an entity that can apply directly t FTA fr grant funding they have received thrugh the designated recipient s cmpetitive selectin prcess. The designated recipient may be the direct recipient fr all funds n behalf f itself and all subrecipients Fr example: In Small UZAs (50, ,000 ppulatin) an entity receiving Sectin 5307 funds directly frm FTA can be the direct recipient fr JARC and New Freedm funds if the State (the designated recipient) transfers the funds t Sectin 5307 after cnsultatin with respnsible lcal fficials and publicly wned peratrs f public transprtatin. In a large UZA (ver 200,000 in ppulatin) a public entity that is a designated recipient fr Sectin 5307 can be the direct recipient f a JARC and New Freedm grant if it is selected fr funding thrugh the designated recipient s cmpetitive selectin prcess. In nnurbanized areas (areas under 50,000 in ppulatin) tribes can be direct recipients fr JARC and New Freedm funds if the funds are transferred t the Sectin 5311 prgram and applied fr in a Sectin 5311 grant. The apprpriate scpe cdes and shuld be used in TEAM. In all ther cases, the entity selected t receive JARC and New Freedm funds will be a sub-recipient f the designated recipient. Private nn-prfits Private fr prfit peratrs Public transprtatin prviders in nnurbanized areas. 12. Q: Can a Sectin 5307 recipient in a small urbanized area apply directly t FTA fr JARC and New Freedm funds r des the applicatin need t cme frm the State? G-3
5 A: The 5307 recipient can apply directly t FTA fr funds prvided the State has cmpetitively awarded the funds t small urbanized areas and that the State transfers the funds t the Sectin 5307 recipient. The state must ntify FTA f the amunt f funds transferred, the prgram t which they are transferred, and the specific prjects t be implemented under JARC and New Freedm. 13. Q. Des the designated recipient have t be a public agency? A. Yes, cnsistent with FTA s interpretatin f 49 U.S.C. 5307(a)(2). 14. Q. Can the title fr vehicles purchased using JARC r New Freedm funds pass frm a designated recipient thrugh t a subrecipient? A. Yes. Please refer t Chapter VI, Sectin 6 TITLE TO VEHICLES and Sectin 7 SATISFACTORY CONTINUING CONTROL in the circulars. The designated recipient is encuraged t either hld title r recrd a lien against the title t vehicles. This is nt mandatry, hwever. What is mandatry is that the designated recipient establish cntinuing cntrl ver the vehicles and accept the respnsibility fr cntinued public transit use f the vehicles, and mre particularly use fr New Freedm purpses, whether by itself r a subrecipient. When capital equipment r facilities are acquired, built, r imprved, prvisins must be made t assure satisfactry cntinuing cntrl f that capital equipment and facilities. While the designated recipient may delegate these respnsibilities t a subrecipient, the designated recipient is ultimately respnsible fr cmpliance with this requirement. This means that designated recipients respnsible fr administering JARC r New Freedm funds may hld title t vehicles purchased with Sectin 5316 r Sectin 5317 funds, r title may be held by a subrecipient. 15. Q. Which activities are capital and which are perating? Where can grantees find guidance n determining the difference? Is there a mre detailed listing f eligible capital and perating expenses fr JARC and New Freedm grants? Specifically, are insurance csts assciated with sme f the New Freedm prjects, csts assciated with car lan prgrams, and csts assciated with vucher prgrams perating r capital expenses? A. The basic definitin f an perating cst is smething that des nt have a useful life f mre than ne year. In cntrast, a capital item is usually a tangible item that has a useful life f mre than ne year. Fr example, vuchers are cnsidered an perating expense, cnsistent with FTA prgram requirements; insurance is cnsidered an perating expense; a guaranteed lan fund r a revlving fund used t make lans are capital expenses; and funds used t pay the administrative csts f lan prgrams are perating expenses. The cnstructin f bus stps, installatin f elevatrs, r the purchase f buses are examples f capital expenses. Als, mbility management is defined by law as an eligible capital expense. Chapter III f each prgram circular cntains a list f eligible activities fr the prgram. G-4
6 16. Q: Are private, fr-prfit taxicab cmpanies eligible subrecipients under the New Freedm prgram? A: N. Title 49 U.S.C. 5317(a)(2) states,that eligible subrecipients are State r lcal gvernment authrities, nnprfit rganizatins, r peratrs f public transprtatin. Taxi peratrs are nt State r lcal authrities, they are generally fr prfit, and they d nt prvide public transprtatin--rather they prvide exclusive ccupancy transprtatin. Therefre, taxi peratrs are nt eligible subrecipients If an eligible subrecipient such as a lcal gvernment r nn-prfit rganizatin wants t use New Freedm funds fr accessible taxis, the eligible subrecipient can purchase the accessible vehicles r fund the accessibility enhancements, hld the title t the vehicle, and lease the vehicle t the taxicab prvider wh will put the accessible vehicle in service. 17. Q: Can a prvider f demand respnsive service t the general public fund an expansin f its service area r hurs r days f service with New Freedm Funds? A: N. The bjective f the New Freedm Prgram is t expand transprtatin services that are designed t assist peple with disabilities. Expanding transprtatin that is prvided t the public at large is nt an eligible activity under the New Freedm prgram. A demand respnse service in a rural area may use its Sectin 5311 frmula funds t expand service. 18. Q: Can a human service transprtatin prvider use New Freedm funds t reduce the cst f fares paid by their clients? A: N. Althugh New Freedm prgram funds can be used t supprt vucher prgrams ffered by human service prviders, the vuchers are intended t supplement existing services and expand the number f prviders available r the number f passengers receiving transprtatin services. Offering reduced fares n an existing service des nt meet the New Freedm prgram gal f expanding services. Other Federal funding is available fr transit passes. 19. Q: Are there limits n what cnstitutes an emplyment supprt service fr the purpses f the JARC prgram? A: FTA cnsiders jb training and childcare t be emplyment supprt services because access t these services can help lw-incme persns attract and retain emplyment. Applicants wh are cnsidering prviding service t destinatins ther than jb training r child care lcatins shuld cntact FTA t determine whether these destinatins cnstitute emplyment supprt service. Prjects that transprt children f lw-incme parents t and frm schl r after schl lcatins d nt cnstitute transprtatin t emplyment supprt services under the JARC prgram and wuld nt be eligible fr JARC funds. 20. Q: Can mbility management prjects be funded and implemented ver multiple years? A: Yes. Althugh mbility management refers t shrt term : management activities t plan and implement crdinated services these activities can ccur n a multi-year basis. G-5
7 Planning Prcess: 21. Q. D the FTA reginal ffices have t verify that prjects are derived frm crdinated plans? A. Yes, in crdinatin with the grant applicatin. Direct and designated recipients must certify that prjects t be funded are derived frm a crdinated plan and the grant applicatin shuld include a page reference t the plan. In reviewing the applicatin the FTA Reginal Office needs t ensure that the grantee prvides this infrmatin in the prgram f prjects (POP). Appendix A f the circulars includes the fllwing language: Prject activities shall be sufficiently described t assist the reviewer in determining eligibility under the prgram and shall include the page number f the crdinated plan frm which the prject was derived, as well as the date the plan was adpted. 22. Q: Are applicants required t attach their crdinated plan t their applicatin in TEAM? A: N. FTA reginal ffices will nt review crdinated plans as a part f their review f an applicatin fr Sectin 5310, JARC, r New Freedm funding. Rather, FTA will rely n: (1)The applicant's certificatin in the grant that a prject is derived frm a crdinated plan; and (2)The "paper clipped" Prgram f Prjects that cntains the name f the applicable plan and the page number where the prject r strategy is lcated within the plan. 23. Q. Des the State have t have its wn crdinated plan r can it rely n lcal plans? A. There is n requirement fr a State plan, just a lcal crdinated plan. Hwever, the cmmunity will define lcal and in sme cases the planning area may be defined as statewide. Please reference Chapter V, Sectin 2 f the circulars. 24. Q. D prjects have t be in bth the STIP/TIP? A: If the prject is within the planning bundary f a Metrplitan Planning Organizatin (MPO), the prject has t be in bth the TIP and the STIP. Prjects in nnurbanized areas nly have t be in the STIP. Depending n State r lcal requirements, the prjects may shw n the aggregate (prgram level) r be listed n the individual prject level listing. TIP and STIP listings must be cnsistent with the metrplitan and statewide transprtatin plans. 25. Q: Can an applicant hld a cmpetitive selectin and apply t FTA fr funding fr prjects that a re derived frm draft crdinated public transit human services transprtatin plans? A: Designated recipients can hld a cmpetitive selectin fr prjects that are derived frm a draft crdinated plan and can place thse prjects that were selected e in Categry B f their applicatin t FTA. Prjects in Categry B are thse prjects the designated recipient anticipates apprving during the current year, but have nt yet met all f the Federal statutry r G-6
8 administrative requirements. Grant mney fr prjects derived frm a draft crdinated plan can be bligated by FTA but may nt be expended by the designated recipient until the plan is finalized. Cmpetitive Selectin Prcess: 26. Q. Fr prjects r needs that crss UZA and rural r small urbanized bundaries, whse crdinated plans r cmpetitive selectin prcess shuld we cmpete in? A. This is a lcal decisin. If the service is cmpletely lcated within an urbanized area, prviders shuld cmpete fr thse funds in the urbanized area; and in a rural cmpetitin if the area is rural. If the service is targeted t serve the residents f the rural area (even if the prvider is lcated within the urbanized area) the service is eligible fr rural funding. Ideally in this situatin the crdinated plan bundaries culd include services in urbanized, rural, and small urban areas; hwever, this des nt have t be the case. 27. Q. May a stakehlder r transprtatin prvider that meets the criteria f bth urban and rural cmpete within bth categries? A. A transprtatin prvider that prvides services in rural, small urban, and/r large urbanized areas can cmpete and therefre receive funding in any area t prvide services. 28. Q. May a transprtatin prvider bid n prjects if it participated in the crdinated planning prcess? A. Yes. 29. Q. Is a transprtatin prvider required t participate in the crdinated planning prcess in rder t bid n prjects? A. N. 30. Q. Is it acceptable t cmpete different prject cmpnents/csts in each f the categries, urban and rural? A. Yes, This is acceptable. 31. Q. D prjects have t be specifically listed r can they be generally cnsistent with the crdinated plan? A. Prjects d nt have t be listed specifically, but they have t be cnsistent with and derived frm the crdinated plan. Chapter IV f the circulars cntains examples f different types f cmpetitive selectin prcesses. These examples als illustrate hw prjects may be derived frm the crdinated plan withut being specifically listed in the plan. 32. Q. Can the State ask fr prjects regardless f specific prgram and then determine under which prgram the prject will be funded? G-7
9 A. Yes, the State may have an pen call fr prjects which meet the bjectives f the varius prgrams. Hwever, the State must use develped criteria t cmpetitively select prjects funded by JARC r New Freedm prgram funds. 33. Q: In respnse t a designated recipient s request fr prpsals, can a ptential subrecipient prpse t pass thrugh the funds t anther subrecipient, r must an applicant cnduct a thirdparty prcurement befre passing thrugh funds t the subrecipient? A: States r designated recipients can, in sme cases, chse t grant Sectin 5310, JARC, r New Freedm assistance t a subrecipient thrugh an intermediary subrecipient. Fr example, a state culd pass funds t a nn-prfit rganizatin thrugh a lcal gvernment authrity. The arrangement between the first tier and secnd tier subrecipient is nt a third party cntract if the ultimate subrecipient wuld therwise be eligible under Sectin 5310, JARC, r New Freedm t receive funds directly frm the State r Designated recipient. If the ultimate subrecipient is nt therwise eligible, the intermediary subrecipient wuld need t cnduct a prcurement, cnsistent with FTA guidelines in Circular General Questins/Suggestins: 34. Q. If a prject includes purchase f a vehicle fr a specific prgram and the prgram ceases t exist befre useful life f the vehicle is achieved, what happens t the vehicle? A. Grantees must fllw the requirements f the Cmmn Rule (49 CFR Part 18 r Part 19, depending n the nature f the grantee). This infrmatin is als referenced in Chapter VI, Sectin 5 in the prgram circulars. 35. Q. Has versight fr JARC and New Freedm been established? A. Fr States and Sectin 5307 direct recipients f JARC and New Freedm funds, FTA will incrprate additinal questins int the State Management and Triennial Reviews. FTA is in the prcess f explring versight ptins fr direct recipients that are nt States r Sectin 5307 direct recipients. 36. Q. If the State des nt want t be respnsible fr implementing the JARC r New Freedm prgram can the Gvernr designate a large metrplitan/urban area t be respnsible fr the prgrams? A. N, the State is the designated recipient fr rural and small urbanized areas. Fr JARC and New Freedm the Gvernr may designate any state agency t manage the prgram. 37. Q. Can the State be a designated recipient fr a large urbanized area? A. Yes, if the designatin is in accrdance Sectin 5307(a)(2). G-8
10 38. Q. Large UZA If a traditinal grantee that is nt a designated recipient f New Freedm is allwed t apply directly, d they need t apply in a Sectin 5317 ( 57 ) applicatin r can the funds be added t their regular Sectin 5307 ( 90 ) applicatin fr administrative purpses? A. A traditinal grantee in a large UZA culd apply directly t FTA fr the Sectin 5317 funds allcated t them thrugh the designated recipient's cmpetitive selectin prcess. Hwever, the grantee must make an applicatin fr a Sectin 5317 (57) grant in TEAM because there is n transfer prvisin that allws transfer t Sectin 5307 fr large urbanized areas. A supplemental agreement will need t be executed between the designated recipient and the traditinal Sectin 5307 recipient. This wuld als be the prcess if the funds being applied fr were JARC funds: the direct recipient wuld apply fr a Sectin 5316 (37) grant. 39. Q. Small UZA If the state transfers funds t Sectin 5307 s traditinal grantees can apply directly, is a supplemental agreement with the state necessary? A. N, the transfer als remves the versight respnsibility fr thse funds frm the designated recipient t the grant recipient under Sectin The State will nly be respnsible fr the prgram requirements (such as cmpetitive selectin and ensuring prjects are derived frm a crdinated plan) and data cllectin fr annual reprting purpses. Althugh the funds can be applied fr in a Sectin 5307 grant, the grant shuld nly cntain funding and activities fr the New Freedm prject. New Freedm, JARC, and Sectin 5307 funds cannt be cmbined in a single grant because disbursements cannt be recrded t the apprpriate prgram. 40. Q. If different funding prgrams administered by the State (JARC, New Freedm, 5310, 5311) are included in ne applicatin, what grant number is used (37, 57, 16, 18) r des it matter as lng as the separate scpes are used? A. The State will use the grant number fr Sectin 5311 (18); separate scpes wuld still be used within the prject budget t distinguish between the funds used. States may cmbine funds frm multiple prgrams in a cnslidated Sectin 5311 grant, but the State must track, manage, and reprt n each prgram s funds separately within the cnslidated grant. 41. Q. If a grantee submits ne grant fr the prgram administratin (10%) fr all three prgrams, hw is the grant cded/numbered? A. Administrative funds may nt be cmbined int a single sectin 5307 grant. Hwever, Chapter III f the prgram circulars specifies the fllwing: FTA will allw all r a prtin f the administrative funds fr JARC, New Freedm, and Sectin 5310 t be cmbined t supprt activities (such as crdinated planning) that are cmmn t all three prgrams. Recipients may cmbine prgram administratin funds int ne administrative accunt, s lng as the recipient uses the funds fr csts assciated with administering the Sectin 5310, JARC, and New Freedm prgrams. Hwever, FTA must still track the funds attributable t each prgram at the accunting classificatin cde, Activity Line Item (ALI), and Financial Purpse Cde (FPC) Level in respective grants. As a recipient incurs expenses against the pled funds fr prgram administratin, it can draw dwn the reimbursement against any grant that has undisbursed prgram administratin funds. If the funds fr multiple prgrams are cmbined in a Sectin G-9
11 5311 grant, there culd be ne line item fr state administratin, equaling the ttal f state administratin bligated using FPC 06 fr all the prgrams included in the grant. G-10
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