JARC and New Freedom Programs Frequently Asked Questions

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1 JARC and New Freedom Programs Frequently Asked Questions I. Match Contribution 1. Q. Do applicants have to list the source of non-u.s. DOT funds for the local match? A. As a general rule, applicants do not have to list the source of a non-u.s. DOT local match. However, FTA grant representatives reserve the right to ask for more detailed information from the grantee such as the source of local match. 2. Q. Are contributions of funds from human service agencies eligible to be used as local match? How are these applied as local match? A. Local funds and non-u.s. DOT federal funds may be used as local match for these programs. If human service agencies are using other federal funds as a source of local match, the grantee should verify that those funds are eligible to match transportation projects and are being used for eligible costs of the project. 3. Q. Can revenue from human service transportation contracts be used as local match? A. Income from contracts to provide human service transportation may be used either to reduce the net project cost (treated as revenue) or to provide local match for New Freedom or JARC operating assistance. In either case, the cost of providing the contract service is included in the total project cost. FTA program funds may not be used as a source of local match for other FTA programs, even when used to contract for service. For example, if a Section 5316 sub-recipient has a service contract to buy service from a Section 5317 provider, the Section 5317 provider may not use the revenue from the Section 5316 service contract as local match for other FTA grants. 4. Q: Can fare-box revenue be used as local match? A: Fare box revenue cannot be used as local match, however it can be used to reduce the net project cost of a project. 5. Q: Can Federal Lands Highway Program Funds be used as local match for JARC and New Freedom projects? A: Yes. While matching funds generally must come from non U.S. DOT funding sources, there is an exception for the Federal Lands Highway

2 Program. According to, 23 USC - Section 120(l), Notwithstanding any other provisions of law, the funds authorized to be appropriated to carry out the Federal lands highways program under section 204 may be used to pay the non-federal share of the cost of any project that is funded under this title or chapter 53 of title 49 and that provides access to or within Federal or Indian Lands." 6. Q. Who is responsible for determining that matching funds are allowable for transportation purposes? A. The grantee is responsible for ensuring that non-u.s. DOT federal funds may be used to match transportation projects and that the funds are available for the project. 7. Q. What kinds of funding are eligible as local match? A. Eligible sources of local match include state, municipal, self-generated, and federal funds (with exceptions). Donations and volunteer drivers are also eligible local match sources. The only exceptions are US Department of Transportation funds (CMAQ, STP, Sections 5307, 5310, etc.) and farebox revenues, which are ineligible local match sources for JARC and New Freedom. 8. Q. What materials and supplies may be charged? A. Materials & Supplies: Those which are necessary to carry out an award are allowable and should be charged at actual price after discounts and rebates received by org. Withdrawals from stockrooms should be charged at cost under any recognized method of pricing consistently applied. When charged as a direct cost, it should include only materials & supplies actually used for performance of contract or grant and due credit for excess or returned to vendors. (OMB circular A-122, section 28) 9. Q. What is In-Kind? A. In-Kind = In terms of using donations, in-kind contributions, and volunteer services, LACMTA follows the FTA policies as contained in the JARC and New Freedom program implementation circulars, as excerpted below: *Non-cash share(s) such as donations, volunteered services, or in-kind contributions are eligible to be counted toward the local match as long as the value of each is documented and supported, represents a cost which would otherwise be eligible under the program, and is included in the net project costs in the project budget. *Income from contracts to provide human service transportation may be used either to reduce the net project cost (treated as revenue) or to provide local match for JARC operating assistance. In either case, the cost of providing the contract service is included in the total project cost. No FTA program funds

3 can be used as a source of local match for other FTA programs, even when used to contract for service. 10 Q. What form of contribution qualifies as a match? A. All contributions, including cash and third party in-kind shall be accepted as part of recipient's cost sharing or matching when such contributions meet ALL of the following 1) Verifiable from recipients records. 2) Not incl. as contributions for any other federally-assisted project or program. 3) are necessary and reasonable for proper and efficient accomplishment of project and program objectives. 4) are allowable under the applicable cost principles. 5) are not paid by Fed Gov. under another award, except where authorized by Fed statute to be used for cost sharing or matching. 6) are provided for in the approved budget when required by the Fed awarding agency. 7) conform to other provisions of this circular, as applicable. (OMB circular A-110 Sec._.23) * Space - The value of the donated property shall be determined in accordance with usual accounting policies of the recipient with the following qualification. a) the value of donated space shall not exceed the fair rental value of comparable space as established by an independent appraisal of comparable space and facilities in a privately-owned bldg. in the same locality. (OMB circular A-110 Sec._.23) II. Coordinated Plan and Planning Process 11. Q. Do the FTA regional offices have to verify that projects are derived from coordinated plans? A. Yes, in coordination with the grant application. Direct and designated recipients must certify that projects to be funded are derived from a coordinated plan and the grant application should include a page reference to the plan. In reviewing the application the FTA Regional Office needs to ensure that the grantee provides this information in the program of projects (POP). Appendix A of the circulars includes the following language: Project activities shall be sufficiently described to assist the reviewer in determining eligibility under the program and shall include the page number of the coordinated plan from which the project was derived, as well as the date the plan was adopted. 12. Q: Are applicants required to attach their coordinated plan to their application in TEAM? A: No. FTA regional offices will not review coordinated plans as a part of their review of an application for JARC, or New Freedom funding. Rather, FTA will rely on: (1)The applicant's certification in the grant that a project is derived from a coordinated plan; and

4 (2)The "paper clipped" Program of Projects that contains the name of the applicable plan and the page number where the project or strategy is located within the plan. 13. Q. May a transportation provider bid on projects if it participated in the coordinated planning process? A. Yes. 14. Q. Is a transportation provider required to participate in the coordinated planning process in order to bid on projects? A. No. 15. Q. My agency is working on JARC and New Freedom proposals. However, Los Angeles County s Coordinated Plan does not list the project/program for which my agency is requesting funds. How can we certify that the project/program is derived from the Coordinated Plan? A. The Los Angeles County s Coordinated Plan does not name specific projects/programs, but includes a listing of projects, programs, and strategies that need to be implemented to address gaps identified in the Coordinated Plan. Applicants should demonstrate in their proposals the need for JARC and/or New Freedom funds and how the proposed project/program addresses one or more gaps identified in Los Angeles County s Coordinated Plan. Applicants are required to certify that their proposed projects/programs were derived from Los Angeles County s Coordinated Plan and reference the page number that contains information relevant to their projects. 16. Q. Do projects have to be specifically listed or can they be generally consistent with the coordinated plan? A. Projects do not have to be listed specifically, but they have to be consistent with and derived from the coordinated plan. Chapter IV of the circulars contains examples of different types of competitive selection processes. These examples also illustrate how projects may be derived from the coordinated plan without being specifically listed in the plan. III. Eligible Applicants and UZAs 17. Q. What is the difference between a direct and a designated recipient? A. The designated recipient is the entity designated, pursuant to 49 U.S.C. 5302(a)(2), by the Governor of a State to receive FTA funds. Under the JARC and New Freedom programs, the designated recipient is responsible for competitively allocating JARC or New Freedom funds to itself and subrecipients in an area. The direct recipient is an entity that can apply directly to FTA for grant funding they have received through the designated recipient s

5 competitive selection process. The designated recipient may be the direct recipient for all funds on behalf of itself and all sub-recipients For example: In Small UZAs (50, ,000 population) an entity receiving Section 5307 funds directly from FTA can be the direct recipient for JARC and New Freedom funds if the State (the designated recipient) transfers the funds to Section 5307 after consultation with responsible local officials and publicly owned operators of public transportation. In a large UZA (over 200,000 in population) a public entity that is a designated recipient for Section 5307 can be the direct recipient of a JARC and New Freedom grant if it is selected for funding through the designated recipient s competitive selection process. In nonurbanized areas (areas under 50,000 in population) tribes can be direct recipients for JARC and New Freedom funds if the funds are transferred to the Section 5311 program and applied for in a Section 5311 grant. The appropriate scope codes and should be used in TEAM. In all other cases, the entity selected to receive JARC and New Freedom funds will be a sub-recipient of the designated recipient. Private non-profits Private for profit operators Public transportation providers in nonurbanized areas. 18. Q. Does the designated recipient have to be a public agency? A. Yes, consistent with FTA s interpretation of 49 U.S.C. 5307(a)(2). 19. Q. Large UZA If a traditional grantee that is not a designated recipient of New Freedom is allowed to apply directly, do they need to apply in a Section 5317 ( 57 ) application or can the funds be added to their regular Section 5307 ( 90 ) application for administrative purposes? A. A traditional grantee in a large UZA could apply directly to FTA for the Section 5317 funds allocated to them through the designated recipient's competitive selection process. However, the grantee must make an application for a Section 5317 (57) grant in TEAM because there is no transfer provision that allows transfer to Section 5307 for large urbanized areas. A supplemental agreement will need to be executed between the designated recipient and the traditional Section 5307 recipient. This would also be the process if the funds being applied for were JARC funds: the direct recipient would apply for a Section 5316 (37) grant.

6 20. Q. Are public agencies with jurisdiction outside of an urbanized area eligible to apply? A. Yes, if they are proposing a project that would provide services within an urbanized area. 21. Q: Are private, for-profit taxicab companies that seek to purchase accessible taxis eligible sub-recipients under the New Freedom program? A: In some cases, yes. FTA considers private taxi companies that provide shared-ride taxi service to the public or to special categories of users (such as older adults or persons with disabilities) on a regular basis to be operators of public transportation, and therefore eligible sub-recipients. Shared-ride means two or more passengers in the same vehicle who are otherwise not traveling together. Similar to general public and ADA demand response service, every trip does not have to be shared-ride in order for a taxi company to be considered a shared-ride operator, but the general nature of the service must include shared rides. Local (municipal/state) statutes or regulations, or company policy, will generally determine whether a taxi company provides shared-ride or exclusive ride service. For example, if the local regulation permits the driver to determine whether or not a trip may be shared, the service is not shared-ride. Similarly, if the regulation requires the consent of the first passenger to hire a taxi be obtained before the taxi may take on additional riders, the service is not shared-ride. In essence, services which can be reserved for the exclusive use of individuals or private groups, either by the operator or the first passenger s refusal to permit additional passengers, is exclusive-ride taxi service, and is not shared-ride taxi service. A recipient passing funds through to a taxi company sub-recipient should request documentation from the taxi company to assure the company is providing shared-ride service. Taxi companies that provide only exclusive-ride service are not eligible subrecipients; however, they may participate in the New Freedom program. Exclusive-ride taxi companies can receive New Freedom funds to purchase accessible taxis under contract with a State, designated recipient or eligible sub-recipient such as a local government or non-profit organization. The taxi company may hold title to the accessible vehicle(s) as long as the agreement between the State, designated recipient or sub-recipient and the taxi company is sufficient to establish satisfactory continuing control. Acceptable means of establishing satisfactory continuing control could include a State, designated recipient or sub-recipient s lien on the vehicle, or contract provisions that require the accessible taxi to be used to provide transportation to people with disabilities, and that the vehicle may not be removed from service or disposed of prior to the end of its useful life without the express written consent of the FTA recipient or sub-recipient. 22. Q. Are private, for-profit taxi companies eligible to partner with a public

7 agency for proposed projects? A. Yes. If the public agency wants to use New Freedom funds for accessible taxis, the agency can purchase the accessible vehicles or fund the accessibility enhancements, hold the title to the vehicle, and lease the vehicle to the taxicab provider who will put the accessible vehicle in service. IV. Solicitation Process and Requirements 23. Q. My agency is considering submitting a proposal requesting JARC funds and we want to ask elected officials to send letters of support for our project to Metro? To whom at Metro we need to ask the elected officials to address their letters? Can we ask Metro to provide us with a letter in support of our project? A. Letters of support are not required. They are neither part of the Project Narrative of the Application Package or the Evaluation Criteria. Metro staff will not consider or share with the Evaluation Panel any materials that are not part of the agency s Application Package and comply with the page limitation and other requirements of the Solicitation of Proposals, including any letters of support sent directly to Metro staff or Executive Management. Applicants should focus on answering the questions included in the Project Narrative, while addressing the Evaluation Criteria, within the page limitation of the Application Package. Although Metro cannot provide a letter of support for any project, it encourages potential applicants to consult with Metro and other agencies about the proposed project as part of its efforts to meet coordination requirements. The scope of work of all proposals received will be shared with Metro s Operation Department for review to ensure that there is no duplication of services. 24. Q. For projects or needs that cross UZA and rural or small urbanized boundaries, whose coordinated plans or competitive selection process should we compete in? A. This is a local decision. If the service is completely located within an urbanized area, providers should compete for those funds in the urbanized area; and in a rural competition if the area is rural. If the service is targeted to serve the residents of the rural area (even if the provider is located within the urbanized area) the service is eligible for rural funding. Ideally in this situation the coordinated plan boundaries could include services in urbanized, rural, and small urban areas; however, this does not have to be the case. 25. Q. May a stakeholder or transportation provider that meets the criteria of both urban and rural compete within both categories? A. A transportation provider that provides services in rural, small urban, and/or large urbanized areas can compete and therefore receive funding in any area to provide services. 26. Q: In response to a designated recipient s request for proposals, can a

8 potential sub-recipient propose to pass through the funds to another subrecipient, or must an applicant conduct a third-party procurement before passing through funds to the sub-recipient? A: States or designated recipients can, in some cases, choose to grant JARC, or New Freedom assistance to a sub-recipient through an intermediary subrecipient. For example, a state could pass funds to a non-profit organization through a local government authority. The arrangement between the first tier and second tier sub-recipient is not a third party contract if the ultimate subrecipient would otherwise be eligible under JARC, or New Freedom to receive funds directly from the State or Designated recipient. If the ultimate subrecipient is not otherwise eligible, the intermediary sub-recipient would need to conduct procurement, consistent with FTA guidelines in Circular Q. Can an agency apply for projects under both JARC and New Freedom? A. An agency may apply for funding under both programs but the applications must be for separate projects. Thus, if an agency were to submit an application for JARC, it may not apply for the same project under New Freedom. The agency may, however, apply for a different project under New Freedom. 28. Q. Is there a maximum grant amount? A. For large urbanized area funds, there is no limit (maximum nor minimum) for grant amounts. Practically, however, a grant request should not exceed the target amount(s) for the urbanized area(s) in which the proposed project would provide services. 29. Q. Is it advisable to submit a small grant requests? Does the risk of not being awarded a grant increase with the requested grant amount? A. No, there is no preference with respect to amount of the requested grant. However, LACMTA reserves the right to negotiate with applicants to award lesser amounts than requested to develop a program of projects that the application evaluation panel deems would be most advantageous to the region s disabled or low-income population. 30. Q. If a project has received New Freedom funds from a prior funding cycle, would it still be eligible to receive funding in future New Freedom calls for projects? A. Yes. The project would still be considered new i.e. the receipt of New Freedom funding would not count towards the eligibility requirement for a project to not have had an identified funding source as of August 10, Q. What happens to the funds if no one applies for them? Do they get rolled

9 over to the next funding cycle? A. New Freedom funds are available for obligation during the fiscal year of apportionment plus two additional years. For example, for the Third Cycle, which involves the FY 2008 and FY 2009 large urbanized area apportionment, LACMTA has until September 30, 2010 to obligate the FY 2008 funds, and until September 30, 2011 to obligate the FY 2009 funds (meaning LACMTA should, by those dates, have applied for and received approval from FTA for the grant associated with the program of projects). LACMTA anticipates that the Third Cycle will be oversubscribed, and that there will not be any trouble meeting those obligation deadlines; However, should any funds either from our region or from another region remain unobligated at the end of the period of availability, they will be reapportioned by FTA to all urbanized areas across the country according to the New Freedom formula. 32. Q. Can a grant be spent over a period of years or would an applicant need to apply for each year of funding separately? A. Grants may be spent over a period of years. If an applicant wishes to spend a grant over a period of years, that should be indicated in the project implementation and timeline section of the application. 33. Q. Is a letter of resolution from the applying agency required as part of the application? A. There is no requirement to supply a letter of resolution for the applying agency. 34. Q. Is there a specific amount of funding within each program set aside specifically for capital projects? A. No. All projects will be ranked using the criteria and money awarded to top ranked projects regardless of project type. 35. Q. What help is available in preparing an application submittal? A. Two application workshops will be held at the LACMTA headquarters in downtown Los Angeles. See official announcement on this website. V. Project Management and Eligible Expenses 36. Q Can New Freedom funds be used to expand service hours and days for existing fixed route or demand responsive services (other than ADA complementary paratransit), and (2) Can NF funds be used to fund public transportation services where they currently do not exist?

10 A. FTA has published a notice of policy statement for eligible New Freedom projects in the Federal Register (see 74 FR 19624, April 29, 2009). Under this statement, new or expanded fixed route service and new or expanded demand response service constitute new public transportation services beyond those required by the ADA that assist individuals with disabilities with transportation, and are therefore eligible for funding under the New Freedom program, provided that these services: (1) Are identified in the grant applicant s coordinated public transit-human services transportation plan; (2) Are available to the public at large but were planned and designed to meet the mobility needs of individuals with disabilities in response to circumstances where existing fixed route and demand response transportation is unavailable or insufficient to meet the mobility needs of individuals with disabilities; (3) Were not operational on August 10, 2005, and did not have an identified funding source as of August 10, 2005, as evidenced by inclusion in the Transportation Improvement Program (TIP) or the State Transportation Improvement Program (STIP); and (4) Are not designed to allow an agency to meet its obligations under the ADA or the DOT ADA implementing regulations at 49 CFR parts 37 and 38. Examples of such services would be a fixed route service that is open to the general public but that is extended to serve a congregate living facility or a workplace serving large numbers of individuals with disabilities, or demand response service that is available to the general public but whose service coverage or span of service is designed in response to mobility needs expressed by individuals with disabilities. FTA notes that expanded fixed route service may result in expanded ADA complementary paratransit service; since the ADA complementary paratransit service is required under the ADA, it would not be eligible for New Freedom funding. All new or expanded fixed route and demand responsive services funded under the New Freedom program will be subject to the requirements of the ADA and DOT ADA implementing regulations. 37. Q: Can New Freedom program funds be used to purchase new vehicles designed to accommodate oversized wheelchairs or that include multiple securement areas, for use on fixed route or demand response service? A: Yes. While the New Freedom circular lists the acquisition of vehicles designed to accommodate oversized wheelchairs and installing additional securement locations within the context of enhancing paratransit services beyond the minimum requirements of the ADA, these vehicles can also be put into service on fixed routes and demand response service, provided that the service is targeted towards people with disabilities. New Freedom funds can be used to acquire the vehicle and fund the labor costs of aids to help drivers assist passengers with over-sized wheelchairs. 38. Q: Can a human service transportation provider use New Freedom funds to

11 reduce the cost of fares paid by their clients? A: No. Although New Freedom program funds can be used to support voucher programs offered by human service providers, the vouchers are intended to supplement existing services and expand the number of providers available or the number of passengers receiving transportation services. Offering reduced fares on an existing service does not meet the New Freedom program goal of expanding services. Other Federal funding is available for transit passes. 39. Q: Can mobility management projects be funded and implemented over multiple years? A: Yes. Although mobility management refers to short term : management activities to plan and implement coordinated services these activities can occur on a multi-year basis. 40. Q: Is sidewalk construction an eligible activity under the JARC and New Freedom programs? A. Sidewalk construction is not an eligible activity under the JARC program and may be an eligible activity under the New Freedom program, provided two conditions are met. First, the sidewalk must be constructed in order to provide an accessible path to a bus stop that is currently inaccessible. Secondly, the recipient should determine whether Federal highways or other funds are available for pedestrian improvements before applying for New Freedom funds for this purpose. 41. Q: Is bus shelter construction an eligible activity under the JARC and New Freedom programs. A: Grantees may use JARC funds to construct shelters provided that the shelters are located in predominantly low-income areas and along transit routes that connect low-income persons to employment or employment related activities. Shelters can also be installed along routes that provide reverse commute service. JARC funds can also be used to make existing shelters accessible for people with disabilities, provided that the above conditions apply. Grantees may also use New Freedom funds to construct accessible bus shelters or to modify existing bus shelters to make them accessible. 42. Q. Is travel training an eligible expense only for ADA-eligible individuals? A. No. Travel training for any individual with a disability is an eligible expense. 43. Q. Is replacement of equipment that was in use on August 10, 2005 an eligible

12 capital expense? A. Yes. Replacement of the equipment would qualify as new, so it would be an eligible capital expense. 44. Q. Are vouchers an eligible expense? A. Yes, if used for: (a) mileage reimbursement as part of a volunteer driver program; (b) a taxi trip; and/or (c) trips provided by a human service agency. Only new voucher programs or expansion of existing programs are eligible. Transit passes for use on existing fixed route or ADA complementary paratransit service are not eligible. Vouchers are considered an operational expense. 45. Q. Can Agency use grant money to buy monthly transit passes for (mentors) to help them perform their training? A. Per FTA, transit passes may be purchased for (mentors) so long as they use transit to perform training duties to riders. 46. Q. Who will have ownership of vehicle? A. Although not mandatory, LACMTA may hold title or record a lien against title to vehicles. It is mandatory for LACMTA establish control over the vehicles and accept responsibility for continued public transit use of vehicles particularly NF whether by LACMTA or subrecepient. If substantial public transit benefit is gained, such as low-cost blanket insurance, bulk fuel or maintenance supplies at reduced cost than to sub-recipient, LACMTA should consider retaining title, which can provide for the same and agree to be bound by all terms & cond. of the grant. (FTA C NF Pg.VI-4) 47. Q. What can be invoiced? What items and tasks can be paid for? A. Staff to be compensated is considered reasonable as long as it conforms to the established policy of the organization consistently applied to both Federal and non-federal activities. Also consistent with that paid for similar work in the organization s other activities. 48. Q. What can grant pay for as far as new staff hired and how must it be invoiced? A. Fringe Benefits in the form of regular compensation to employees during periods of authorized absences from job, i.e. vacation, sick, military and the like are allowable provided costs are absorbed by all organization activities in proportion to the relative amount of time actually devoted to each.

13 49. Q. What type of documentation will be required to show billing seeking reimbursement? Such as Payroll docs? With existing staff, can we bill time worked on new project? If so what tasks can be paid for? Can it be billed hourly, benefits? A. Payroll sheet must be included per employee showing activities performed and linked to project and amount of hours at what rate. Staff working on tasks other than grant project will allocate their time and support on documented payrolls approved by a responsible official(s) of the org. Distribution of salaries to awards must be supported by personnel activity reports: - reflect an after-the-fact distribution of the actual activity per employee. - account for total activity each employee is compensated for. - prepared at least monthly and coincide w/ 1 or more pay periods and signed by employee or supervisory official who can confirm the employee's report. Also applicable to nonprofessional/nonexempt employee and in conformance with Dept. of Labor regulations. (Budget estimates determined before the services are performed do not qualify as support for charges to awards) (OMB circular A-122, section 7m.) 50. Q. Will it be necessary to re-bid already contracted transportation services (proposals solicited in 2003) either in total or for the additional svc funded under NF to comply w/grant procurement requirements? A. Considered procurement by noncompetitive proposal (sole source). Determined inadequate if the reason is a restrictive specification or delivery requirement that only 1 bidder could meet then it must be processed with internal agency approvals or cancel the solicitation, change the requirements to allow for more bids and re-solicit bids. If the reason non-responders did not bid is unrelated to specifications or terms, then competition is presumed adequate and you may proceed with award as a competitive one. File must be documented in order to have a clear audit trail for reviewers and understand how procedure was followed. (FTA Cir F page VI-16) In addition, if subgrantee requires an existing contractor to make a change to its contract that is beyond the scope of that contract, the subgrantee has made a sole source award that must be justified. (FTA Cir F page VI-16). It must be in writing according to the previous sentence (FTA Cir F page VI-15) VI. Title VI 51. Q. We don t provide actual transportation to our beneficiaries, do we still need to submit a Title VI Update? A. Yes, if you have received federal funds through Metro you must submit a Title VI Program.

14 52. Q. If we are required to submit a Title VI Program to another federal agency, may we submit the same Title VI Program to all federal agencies? A. We don t have a clear answer from the FTA. As it stands, each agency may have specific reporting requirements. You may be able to reuse information in all Title VI Programs, but please make sure you address all the DOT Title VI reporting requirements listed in Circular B. 53. Q. Is there a requirement for transit providers to document how a contractor is following its Title VI Program? A. There is no explicit requirement to document; however, the agency is responsible for making sure the contractor is following the approved Title VI program. It s a good policy to document how the contractor is following the Title VI Program. 54. Q. Is discrimination on the basis of disability covered under Title VI? A. We understand Title VI to cover the following protected classes: race, color, and national origin. For Title VI Program reporting purposes, please report Title VI discrimination complaints based on race, color or national origin. There are additional requirements under the ADA and enforced by the FTA in this area. Please be sure to confer with counsel about your obligations. 55. Q. We ve received FTA funds from another agency and submitted a FTA Title VI Program using circular B, do we need to create another Title VI Program for Metro? A. Please submit your existing Title VI Program to Metro. VII. Miscellaneous Questions 56. Q. Are planning projects eligible to receive funding? A. Yes, but only in regard to planning for a mobility management project. 57. Q. Can the title for vehicles purchased using JARC or New Freedom funds pass from a designated recipient through to a sub-recipient? A. Yes. Please refer to Chapter VI, Section 6 TITLE TO VEHICLES and Section 7 SATISFACTORY CONTINUING CONTROL in the FTA circulars. The designated recipient is encouraged to either hold title or record a lien against the title to vehicles. This is not mandatory, however. What is mandatory is that the designated recipient establish continuing control over the vehicles and accept the responsibility for continued public transit use of the vehicles, and more particularly use for New Freedom purposes, whether by itself or a subrecipient. When capital equipment or facilities are acquired, built, or

15 improved, provisions must be made to assure satisfactory continuing control of that capital equipment and facilities. While the designated recipient may delegate these responsibilities to a sub-recipient, the designated recipient is ultimately responsible for compliance with this requirement. This means that designated recipients responsible for administering JARC or New Freedom funds may hold title to vehicles purchased with Section 5316 or Section 5317 funds, or title may be held by a sub-recipient. 58. Q: Are there limits on what constitutes an employment support service for the purposes of the JARC program? A: FTA considers job training and childcare to be employment support services because access to these services can help low-income persons attract and retain employment. Applicants who are considering providing service to destinations other than job training or child care locations should contact FTA to determine whether these destinations constitute employment support service. Projects that transport children of low-income parents to and from school or after school locations do not constitute transportation to employment support services under the JARC program and would not be eligible for JARC funds. 59. Q: Is travel training considered a capital expense on an operating expense under the New Freedom program? A: The New Freedom program circular treats travel training as a component of mobility management, which is considered a capital expense and is eligible for up to an 80 percent Federal match. 60. Q. If a project includes purchase of a vehicle for a specific program and the program ceases to exist before useful life of the vehicle is achieved, what happens to the vehicle? A. Grantees must follow the requirements of the Common Rule (49 CFR Part 18 or Part 19, depending on the nature of the grantee). This information is also referenced in Chapter VI, Section 5 in the program circulars. 61. Q. What is mobility management? A. In the context of the New Freedom Program, it is any initiative that is aimed at enhancing transportation access for the disabled population through increased coordination. It could involve brokering, facilitating, encouraging, coordinating, and managing traditional and non-traditional services to expand the array of transportation services available to individuals with disabilities. Mobility management is an eligible capital expense. 62. Q. Are there predetermined amounts that will go toward capital versus

16 operating projects? A. No. Projects will be selected based on the evaluation criteria. 63. Q. Who is considered low-income under the JARC program? A. Low income is defined as having a household income less than 150% of the poverty level. Definitions of poverty and links to the current poverty levels can be found at Q. Is person with a disability the same as ADA-certified under the New Freedom program? A. The New Freedom program defines person with a disability as the following: "An individual who, because of illness, injury, age, congenital malfunction, or other incapacity or temporary or permanent disability (including an individual who is a wheelchair user or has semi-ambulatory capability), cannot use effectively, without special facilities, planning, or design, public transportation service or a public transportation facility. New Freedom projects do not have to target ADA-certified riders but they do have to target persons with disabilities. 65. Q. What is beyond the ADA? A. Services that are not required under the ADA or services, equipment, or facility enhancements that exceed minimum ADA obligations. 66. Q. What is new? A. The New Freedom Program defines new as not having been implemented or operational on August 10, 2005 and not having an identified funding source as of August 10, 2005, as evidenced by inclusion in the Transportation Improvement Program (TIP) or State TIP. In other words, new refers to projects that would not have consideration for funding and enhanced services that would not be available to individuals with disabilities were it not for the New Freedom Program. Note that applicants may not terminate ADA paratransit enhancements or other services funded as of August 10, 2005 in an effort to reintroduce the service as new and then be eligible to receive New Freedom funds for those services. 67. Q. Can grant money for vehicles be front funded? A. No, awarded funds received by the agency is based on reimbursement to eligible costs already incurred.

17 68. Q. Is a feasibility study considered a capital project? A. Yes feasibility study is considered a capital project. 69. Q. What is Indirect Cost? A. Classified in 2 categories Facilities i.e. depreciation and use allowances on buildings, equipment, and capital improvement, int. on debt associated w/certain buildings., equipment, cap improvements, and ops and maintenance exp. Admin Costs: Gen. Admin and gen expenses such as the Dir. office, accounting, personnel, library exp. & other types of exp. not listed specifically under one of the subcategories of Facilities. Also, amounts not recoverable as indirect or admin costs under one Federal Award may not be shifted to another Fed award, unless specifically authorized by Fed legislation or regulation. 70. Q. My agency has been providing transportation to people with disabilities since April 2002 and currently is using vehicles acquired prior to August 10, My agency is looking to expand its transportation services by adding one vehicle to areas not currently served. Are the capital and operating costs of the expansion vehicle eligible for New Freedom funds? Is the replacement of the vehicles that have been providing service since April 2002 an eligible expense? A. Notice that the services were being provided prior to August 10, 2005 (the day the SAFETEA-LU legislation authorizing the New Freedom Program became law). Per SAFETEA-LU, only new projects and programs (those not having been implemented or operational on August 10, 2005 and not having an identified funding source as of August 10, 2005) are eligible for funding. However, FTA s clarification in the April 29, 2009 Federal Register notice indicates that expanded services are potentially eligible under the New Freedom Program, even where the original service existed prior to August The eligibility of the vehicle purchases as proposed depends on the service for which they will be used, not on whether the vehicles are new or replacement. New Freedom funds may only be used to support the expanded service. The sub-recipient would have to segregate the incremental operating or vehicle purchase costs of the expanded service. Only those incremental costs would be reimbursable under the New Freedom grant approved by FTA. The grant-funded service must be made available for use by the public at large, but designed to meet the transportation needs of people with disabilities. A service could be considered open to the public even if it only serves specific origins and destinations. Consequently, there is no inherent problem with a service that only takes people to or from specific hospital departments. In order to be open to the public, such a service must be available to anyone who would want to go to/from those specific departments. 71. Q. My agency added door-through door services in September 2007 to a Dial-A-Ride (DAR) service that has been in existence since July My agency is considering the purchase of one additional vehicle and providing travel escorts. Are the purchase of the new vehicle and the operating costs for providing door-though-door (DTD) service with this new vehicle both eligible expenses under the New Freedom Program? With DTD service added in

18 2007, can the operating costs of existing DTD service be eligible for New Freedom funds? Is it a requirement for the service to be available to the general public (not just persons with disabilities)? A. Notice that the services were being provided prior to August 10, 2005 (the day the SAFETEA-LU legislation authorizing the New Freedom Program became law). Per SAFETEA-LU, only new projects and programs (those not having been implemented or operational on August 10, 2005 and not having an identified funding source as of August 10, 2005) are eligible for funding. Accordingly, only the incremental costs of service expansions are eligible where the original service existed prior to August 10, In order to be eligible for New Freedom funds, a project must be both new (started after August 10, 2005) and provide service beyond the ADA. In order to be considered beyond the ADA, the project must either: [1] enhance mandated services, such as ADA complementary paratransit service, so that the level of service exceeds the minimum ADA requirements; or, [2] provide expanded or new service that is open to the public and targeted to people with disabilities. Turning first to the issue of whether the project is new, the DTD service can be viewed as either a new service or an expansion of the existing DAR service. In either case, the entire DTD portion of the service is new. For DAR service (without DTD) that existed prior to August 10, 2005, the costs for existing DAR service, including capital costs of vehicles to be used in existing DAR service, are not eligible. Adding increased capacity alone is insufficient to make a project new under New Freedom. Increased capacity, without expansion (e.g., service area, hours of operation, etc.) is not discussed as an eligible new project in either the New Freedom Circular or the April 2009 Federal Register Notice. An expansion will not inherently result in a change in service; therefore, it is not service that is new. Any vehicle purchased would have to either exclusively serve DTD trips or the incremental vehicle capital and operating cost attributable to DTD would have to be segregated for reimbursement. Turning to the issue of whether the project is beyond the ADA, the DAR service seems to be limited to seniors and people with disabilities. Consequently, the DTD service would be limited to seniors and people with disabilities since DTD would be provided to DAR riders. This raises the issue of whether the DTD service is open to the public, as required by New Freedom. The allowance for expansion of ADA mandated services discussed in the New Freedom Circular is a separate category of beyond the ADA projects from the category of expanded and new targeted projects discussed in the April 2009 Federal Register Notice. Consequently, although expansions of ADA complementary paratransit service can be funded with New Freedom funds (as described in the Circular), that does not mean that new or expanded dial-a-ride service (which is not mandated by the ADA) can be funded in every circumstance. Any new or expanded service permitted under the April 2009 Federal Register Notice must be open to the general public and cannot be restricted to elderly and/or disabled riders. In order for DTD service to be eligible, the DAR service must be opened to the general public. Nothing would preclude a project that was designed to serve primarily elderly and disabled riders through a targeted service or pick up/drop off locations, but if a person who is not disabled or elderly wishes to ride the service, that person must be able to do so. 72. Q. My agency operates a fixed route service and would like to apply for JARC funds to pay the contracted services (about $60,000) to operate an expansion of a fixed bus route by increasing the frequency of trips. Can we use the current service provider if we apply for and are awarded a JARC grant to pay for the contracted services?

19 A. The agency must follow federal procurement guidelines. The agency could use the existing service provider if the existing contract (assuming it includes federal funds among its funding sources) meets all federal procurement guidelines, including required and suggested clauses (as applicable to the type and amount of contract) and it includes an option for the expansion of services that can become effective after grant award by the Federal Transit Administration. Alternatively, with the proposed contract amount being less than $100,000 (small purchase), the agency can request and document not less than quotes for the expansion services from three different service providers (which could include the existing service provider). The applicant must ensure that applicable federal guidelines, including required and preferred language, are reflected in the contract with the service provider and that such contract not be executed prior to the grant award. The applicant must coordinate with its Procurement Department or personnel.

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