Vanpool Funding from USDOT

1
Vanpool Funding from USDOT
2
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!
3
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
1 Vanpool
10 Cars
4
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

5
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)

6
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
7
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
8
Existing Private Vanpool Operations
9
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 _at_ 100
• Flexible Funding
• Between sections for unspent monies

10
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

11
Capital Operating Expense/Rev-Mile Motor Bus,
ADA Paratransit Vanpool (Texas)
Current Formula _at_ 0.39/Rev-Mile (Large) and
0.52/Rev-Mile (Medium)
FY2001 National Transit Database Statistics,
USDOT Reauthorization proposal Increases to
0.55/Rev-Mile (1 MM Pop.) and 0.60/Rev-Mile
(200K-gt1MM Pop.)
12
Balance CCofC Formula
CCofC
Formula
CCofC
CMAQ
Takes two years to reach formula cycle.
13
FHWA CMAQ Funding (Billions )
100 Federal for Vanpool projects
14
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

15
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!

16
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

17
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.

18
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
19
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
2
Mt. Clemens
Troy
1
Lansing
2
Detroit
Ann Arbor