Wisconsin Administrative Code › Department of Transportation › Chapter Trans 6 - Rural And Small Urban Area Public Transportation Assistance Program › Section Trans 6.03 - Federal share of project costs

Current through June 24, 2024
(1) The federal
			 share of an eligible public transportation service's operating project costs
			 shall not exceed 50% of its operating deficit, except for projects where the
			 department uses capital cost of contracting procedures to determine the
			 service's reimbursement amount. On applicable projects, the capital cost of
			 contracting reimbursement rate shall be based on allowances specified in
			 federal transit law or guidance. The following operating revenues and expenses
			 shall be used to establish the project operating deficit:
(a) Operating revenues shall consist of all
			 passenger revenue derived from the project service, including the portion of
			 through revenue attributed to eligible project routes, station revenues derived
			 from the project service and any unrestricted federal, state or local funds
			 received as a result of providing the project service that are not used to
			 match federal section 5311 funds. Operating revenues also may include income
			 generated through approved job access and reverse commute type projects,
			 consistent with
			 49 USC
			 5311.
Note:
Charter, package delivery, and package
				express operating expenses and revenues for all applicants are assumed to be
				equal and, therefore, shall not have any net financial effect on the
				project.
(b) Eligible
			 operating costs are those transportation and overhead expenses associated with
			 the provision of public transportation service including labor, fringe
			 benefits, materials and supplies, utilities, insurance, purchased
			 transportation service, license fees and certain lease expenses. They also may
			 include other expenses associated with approved job access and reverse commute
			 type projects, consistent with
			 49 USC
			 5311. The following are not eligible project
			 costs:
1. Depreciation and amortization for
			 publicly owned facilities and equipment;
2. Expenses that are offset or that will be
			 offset by means that include, but are not limited to, cash discounts or
			 refunds, tax rebates including fuel tax rebates, insurance proceeds or resale
			 proceeds;
3. Interest expense,
			 except that privately owned systems may include interest on short-term debt
			 obligation;
4. Return on
			 investment, except that a private provider that negotiates all or part of a
			 transportation service contract with an eligible applicant is eligible for a
			 return on its investment. Its return on investment shall be a fixed amount and
			 may not exceed an amount calculated by applying the interest rate the secretary
			 of the treasury specifies under 50 USC App. 1215 (b) (2) as applicable to the
			 period ending on December 31 of the year prior to the project year to the net
			 book value of the private provider's equipment and facilities used in providing
			 the contracted transportation service;
5. Lease-purchase payments;
6. Lease payments to a related party which
			 are made under less than an arm's length agreement. Only actual eligible
			 project costs of owning the property, including depreciation and taxes, shall
			 be allowed;
7. Lease payments by
			 small urban area systems for revenue passenger vehicles unless, and only for
			 the term, pre-approved by the department;
8. Entertainment costs;
9. Fines and penalties;
10. Bad debts;
11. Charitable deductions;
12. User-side subsidies except those
			 specifically funded under an intercity bus project;
13. Payments to members of advisory
			 committees, transit commissions or transit boards;
14. Federal, state and local income
			 taxes;
15. Expenses related to
			 contractual agreements for special planning studies;
17. Expenses for contingencies or capital
			 acquisitions, including contributions to a capital reserve account or fund. The
			 cost of materials and supplies utilized in facility or vehicle repairs,
			 regardless of cost, shall be considered as eligible operating costs so long as
			 the repairs involve replacement of existing items.
18. Fees imposed upon a contracted service
			 provider by the grant recipient, such as taxicab license fees.
19. Job access and reverse commute project
			 expenses, except in cases where the recipient's grant agreement with the
			 department explicitly authorizes use of federal funds for such
			 project(s).
(c) An
			 eligible applicant that contracts with a provider for eligible public
			 transportation service shall use the competitive procurement process set forth
			 in this paragraph to choose a provider. An eligible applicant shall follow this
			 competitive procurement process for each of its eligible public transportation
			 service contracts not less than once every 5 years. If, however, service is
			 provided by a transit commission formed in accordance with an applicable
			 enabling statute, the competitive procurement process need not be used.
			 Eligible applicants shall use the following competitive procurement process:
1. An eligible applicant shall prepare a
			 "request for proposals" document that solicits proposals from providers and
			 that describes essential provider qualifications and criteria for evaluating
			 proposals. The eligible applicant shall send the document to the department for
			 its approval and, after receiving departmental approval, shall post it along
			 with any ancillary documents on the department of administration's statewide
			 goods and services electronic purchasing system website. The eligible applicant
			 shall also cause an appropriate notice of the request for proposals to be
			 published in a local newspaper of general circulation.
2. If only one qualified provider submits a
			 proposal to provide the eligible public transportation service and the proposal
			 satisfies all requirements of the eligible applicant's request for proposals,
			 the eligible applicant may negotiate a contract with that provider. The
			 negotiated contract shall be subject to the department's approval.
3. If 2 or more qualified providers submit
			 proposals to provide the eligible public transportation service and the
			 proposals satisfy all requirements of the eligible applicant's request for
			 proposals, the eligible applicant shall rank each provider on the criteria set
			 forth in the request for proposals, and may negotiate a contract with the
			 highest-ranking provider.
4. An
			 eligible applicant shall establish an appropriate procedure for resolving bid
			 proposal complaints and conflicts. The department shall consider procedural
			 complaints or conflicts that include, but are not limited to, complaints that
			 allege that established proposal evaluation procedures have not been followed.
			 The department shall not review the substance of an eligible applicant's
			 decision to select a particular service provider. This subdivision may not
			 limit the department's authority to review an eligible applicant's actions or
			 inactions under this section or under other state or federal law.
(d) Paragraph (c) applies only to
			 eligible applicants filing applications due on or after November 15, 1988.