# Presentation: 747996

## Vanpool Funding from USDOT

## What is a commuter vanpool?

- Volunteer driven
- Near home & work
- Long commutes
- Shared expense
- Monthly subscription
- Group determines schedule and route
- 10 cars  1 vanpool

- A big carpool with rules
-  and a schedule!

## Simple Benefit: Net Vehicle Reduction

| 1.2 occupants |  |  |
| --- | --- | --- |
| 1.2 occupants |  |  |
| 1.2 occupants |  |  |
| 1.2 occupants |  |  |
| 1.2 occupants |  | 12 occupants |
| 1.2 occupants |  |  |
| 1.2 occupants |  |  |
| 1.2 occupants |  |  |
| 1.2 occupants |  |  |
| 1.2 occupants |  |  |

***10 Cars***

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

## 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
- Bus/Vanpool Revenue Miles
- Bus/Vanpool Passenger Miles
- Fixed Guideway Revenue Miles (Rail, HOV, Ferry)
- Fixed Guideway Miles (Rail, HOV, Ferry)
- Population
- 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)

- FY2001 National Transit Database Statistics, USDOT
- Reauthorization proposal – Increases to ~$0.55/Rev-Mile (1 MM Pop.)
- and ~$0.60/Rev-Mile (200K->1MM Pop.)

- Current Formula @ $0.39/Rev-Mile (Large) and $0.52/Rev-Mile (Medium)

## Balance CCofC & Formula

**CMAQ**

**CCofC**

**Formula**

**CCofC**

- Takes two years to reach formula cycle.

## FHWA CMAQ Funding (Billions $) 

- 100% Federal for Vanpool projects

## FTA Section 5307 Small UZA

- Small UZA (50K to 200K 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 |
| Fare Revenue | $ 150 | $ 217 |
|  |  |  |
| Federal Operating | $ 0 | $ 208 |
| State and Local Operating | $ 0 | $ 208 |
| Fare Revenue
 | $ 750 | $ 208 |
| Total Fare Revenue | $ 900 | $ 425 |

## 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**

**Lansing**

**Ann Arbor**

**Detroit**

**Troy**

**Mt. Clemens**

**4**

**2**

**1**

**2**

**2**