ANNUAL TRANSIT PROVIDER MEETING FY 2017 GENERAL SESSION, SEPTEMBER 29, 2016

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1 ANNUAL TRANSIT PROVIDER MEETING FY 2017 GENERAL SESSION, SEPTEMBER 29,

2 PROGRAMMATIC OVERVIEW & FIXING AMERICA S SURFACE TRANSPORTATION (FAST) ACT 2

3 REGIONAL TRANSIT COORDINATION AND OPERATIONS TEAM Planning Sarah Chadderdon, Principal Transportation Planner Kelli Schlicher, Transportation Planner III Donato Perez, Transportation Planner II Implementation Jamie Patel, Principal Transportation Planner Leah Brown, Transportation Planner III Karina Maldonado, Transportation Planner III Edgar Hernandez, Transportation Planner I Alka Agnihotri, Transportation Planner I Jessie Huddleston (through February 2017) 3

4 OUR ROLE(S) North Central Texas Council of Governments (5%) Assist local governments in planning for common needs and cooperating for mutual benefit in a 16-county region Metropolitan Planning Organization (20%) Regional Transportation Council sets transportation policy Programs all federal funding in the region (TIP) Coordinated transportation planning in a 12-county region Designated Recipient of Federal Transit Funding (75%) Managing Subrecipients Reimbursements Oversight and Compliance Focused on the Urbanized Areas in 8 counties 4

5 5

6 REVIEW: FORMULA-BASED PROGRAMS Four formula programs $118M annually Urbanized Area Formula (includes Job Access/Reverse Commute): Section 5307 $85M Enhanced Mobility of Seniors and Individuals with Disabilities: Section 5310 $3.5M State of Good Repair: Section 5337 $24M Bus and Bus Facilities: Section 5339 $6M (Does not include Capital Investment Grants: Section 5309 Awarded competitively) 6

7 REVIEW: FISCAL YEAR 2016 PROGRAMS OF PROJECTS Total Funds Awarded = $118M DISTRIBUTION BY All PROVIDER Others 11% The T 16% Maintenance 70% DISTRIBUTION BY PROJECT Other Capital Items 22% DCTA 5% DART 68% Vehicles 8% 7

8 PAST, PRESENT, AND FUTURE Fiscal Year(s) Theme Business as usual Catching up (patchwork) Getting back on track Simplify Program Changes SAFETEA-LU continues Lots: changes due to MAP-21 None: MAP-21 continues Lots: FAST ACT Funding Levels Steady increase Significant increase: 2010 Census Slight increase Increases Operating Assistance Eligibility based on exceptions Limited eligibility Limited eligibility Structured eligibility 8

9 FIXING AMERICA S SURFACE TRANSPORTATION ACT (FAST) Effective Dates October 1, 2015 September 30, 2020 Guidance Issued Pending, but we are moving forward Key Points Provides predictable funding for 5 years with a $1B increase for transit programs Targets additional funding for the bus program Streamlines vehicles procurement and leasing Continues to increase focus on performance 9

10 VEHICLES: BUY AMERICA AND COOPERATIVE PROCUREMENT Buy America Requirement Changes (more detail later) Procurement Changes Allows for interstate procurements Allows for state-led cooperative procurements Requires FTA to create a National Joint Procurement Clearinghouse to identify existing collaborations and allow grantees to join forces Encourages capital leases by relaxing the lease vs. buy analysis requirement 10

11 SELECTED PROGRAMMATIC HIGHLIGHTS: ENHANCED MOBILITY Revised to allow direct recipients (e.g., DCTA, Mesquite, Arlington, Grand Prairie and NETS) Continues to allow approximately 50% to be used for operations (approx. $1.5M total) Introduces a competitive pilot program for Innovative Coordinated Access and Mobility Requires FTA to develop a best practices guide Requires the government to produce a strategic plan to address coordination across all federal agencies 11

12 SELECTED PROGRAMMATIC CHANGES: BUS AND BUS FACILITIES + STATE OF GOOD REPAIR Bus and Bus Facilities Formula and discretionary with +$55M for low/no emissions buses Our local process follows the Urbanized Area Formula Program for awards. FTA awards the discretionary funding. Encourages cooperative procurement to reduce costs State of Good Repair (Only DART and The T) Minor tweaks 12

13 SELECTED PROGRAMMATIC HIGHLIGHTS: URBANIZED AREA FORMULA PROGRAM Keeps Job Access/Reverse Commute as an eligible project, including operating expenses. Our region maintains a 2% set-aside for non traditional providers to be awarded competitively Eliminates the requirement for 1% of the apportionment to be spent on Associated Transit Improvements (Tracking and reporting only) Allows 20% of an agency allocation to be spent on ADA-paratransit operations under certain conditions (up from 10%) Allows FTA to award funds competitively for Workforce Development Modifies the 100 Bus Rule to include demand responsive service (i.e., operating assistance) 13

14 OPERATING ASSISTANCE: URBANIZED AREA FORMULA PROGRAM 2012: Based on a formula from 2002 or an arbitrary cap : Operating assistance only for fixed-route providers (under 100 buses), based on National Transit Database (NTD) reports. Everyone else moved to 5310 Program : Operating assistance formula includes fixed-route and demand response NTD data (2 years behind). More funding for operations in Urbanized Area Formula Program. Providers move around again. Result: Constantly moving providers in and out of federal funding programs to allow for maximum flexibility for operating assistance. Confusion and unpredictability. 14

15 FY FUNDING PROPOSAL Take advantage of new operating assistance calculations in the Urbanized Area Formula Program Develop an approach that allows agencies to grow and respond to service changes with consistent and predictable funding sources Use a process-based method based on the services agencies provide to find the most beneficial funding buckets for Continue to allow agencies to compete competitively for projects, if desired Simplify administrative, contract and reporting functions 15

16 PROPOSED FY17 FUNDING GROUPS Consistent Services Consistent Funding Sources Group 1: Transit Authorities Rail Fixed-route/ Commuter Demand- Response YES YES YES Primary Secondary Tertiary Urbanized Area Formula Bus/Bus Facilities State of Good Repair Group 2: General Public Providers NO YES YES Urbanized Area Formula Bus/Bus Facilities Group 3: Seniors and People with Disabilities Group 4: Specialized Projects NO NO YES Temporary, short-term or pilot projects Enhanced Mobility (up to 3 years) Competitive Awards Bus/Bus Facilities * Agencies may still apply for competitive calls for projects and 16

17 NEXT STEPS October 2016 Work with NCTCOG staff to identify most appropriate funding buckets for FY2017 Continue giving feedback to assist NCTCOG with developing policy Ongoing Focus on National Transit Database reporting Group 3: Seniors and People with Disabilities needs to get a transition plan Watch for additional guidance on procurement, coordination and performance-based planning and implementation 17

18 FEDERAL TRANSIT ADMINISTRATION (FTA) FUNDING REVIEW A LOOK BACK, AT WHERE WE ARE AND WHAT IS AHEAD 18

19 PROGRAM OF PROJECTS (POP) PROCESS (FY ) Develop POP Enter into Subgrantee Agreements Program POP in the TIP (RTC Approval) Request and Receive FTA Grant Funding FTA Publishes Apportionment Send Funding Split Letter 19

20 PROGRAM OF PROJECTS (POP): A TWO-STEP PROCESS Step 1: Develop estimated POP Step 2: Develop POP revisions Enter into Subgrantee Agreements Request and Receive FTA Grant Funding *This cycle is completed at least 2 times depending on number of apportionments. Program POP in the TIP (RTC Approval) FTA Publishes Apportionment(s) Send Funding Split Letter 20

21 A LOOK BACK AT FY 2015 FUNDING What happened in FY 2015? FY 2015 funding came in 3 apportionments between February and August 2015 Access to TrAMS (FTA s new grant management system) was delayed What it meant 3 FTA split letters 3 revisions to grants for some agencies Delayed grants and contracts for final (actual) funding Agencies continued to provide service without the certainty of knowing when actual funds would become available 21

22 A LOOK BACK AT FY 2016 FUNDING What happened in FY 2016? No TIP modification cycle available in February 2016 Congress passed the FAST Act and FTA published fully funded apportionments in February 2016 What it meant Step 1: POP development (Estimated funding) process was rushed (14 days vs. 2 months) Long term funding stability Changes in the Bus and Bus Facilities program (Section 5339) led to lower than expected apportionments for the transit authorities No TIP modification cycle available in August 2016 Step 2: POP revision (actual funding) process was delayed by 3 months 22

23 A LOOK AT WHERE WE ARE: FY 2015 AND 2016 POP POP FY Step 1 (Program and Award Estimated Amount) Step 2 (Program and Award Actual Amount) In Progress 23

24 A LOOK AHEAD: ESTIMATED FUNDS FOR FY 2017 POP Program Dallas-Fort Worth- Arlington Denton-Lewisville McKinney Urbanized Area Formula (Section 5307) Enhanced Mobility (Section 5310) State of Good Repair (Section 5337) Bus and Bus Facilities (Section 5339) $73.9M* $5.6M* $2.6M $2.6M* $85k* TxDOT awards $23.6M N/A N/A $5.8M $377k TxDOT awards *Amounts listed do not include funds to be awarded through the next Call for Projects 24

25 A LOOK AHEAD: POP PROCESS FOR FY FUNDS FTA Publishes Final Apportionment Enter into Subgrantee Agreements Develop POP *This cycle is completed 1 time. Request and Receive FTA Grant Funding Program POP in the TIP (RTC Approval) Send Funding Split Letter 25

26 A LOOK AHEAD: FY 2017 POP SCHEDULE Action Date Providers submit proposed Program of Projects (POP) December 1, 2016 NCTCOG reviews POP December 2, 2016 January 20, 2017 FTA publishes apportionment(s) February May 2017 NCTCOG submits POP for inclusion in the Transportation Improvement Program (TIP) July 2017 Regional Transportation Council awards funds October 2017 Direct recipients apply for grants and enter into contracts November 2017 March 2018 with subrecipients, if applicable 1 26

27 KEYS TO DEVELOPING YOUR POP Review annual expenses are there any trends? Leftover funds are old funds still available? Anticipate growth are there any new services starting? Provide description of each project for which you are requesting funds If requesting funds for vehicles, specify whether they are for replacement or expansion and note general type and size of vehicle(s) Specify your security and associated transit improvement projects 27

28 FUNDING SUMMARY: KEY TAKEAWAYS General Suballocation of all FY 2017 formula funding will occur only after FTA publishes a full funding apportionment notice Small provider needs will continue to be met first, then the transit authorities will receive the remainder of the available funds (current RTC policy) Transit Authorities Annual associated transit improvements (ATI) are no longer required but ATI activities must still be reported annually Annual security expenditures are still required and NCTCOG will continue to provide minimum amounts that must be programmed Small Transit Providers Transportation Developments Credits (TDCs) can be used as local match for capital projects 28

29 NEW FTA PROGRAMS 29

30 NEW AND MODIFIED FTA PROGRAMS Effort to increase safety and accountability, allows for scalable and flexible programs Safety and Oversight Transit Asset Management Performance-Based Planning Requirements Buy America Requirements Bus Testing Program Additional Guidance - Revised and Upcoming 30

31 PUBLIC TRANSPORTATION SAFETY PROGRAM Applies to recipients of federal financial assistance Effective September 12, 2016 FTA may withhold funds and/or issue restrictions on operations as a result of unsafe conditions/practices Four parts to the program: National public transportation safety plan (not adopted yet) Safety certification training program (interim requirements) State safety oversight program (final) Public transportation agency safety plan (no rule yet) 31

32 TRANSIT ASSET MANAGEMENT (TAM) Applies to recipients of federal financial assistance who have assets over $50k in acquisition value Effective October 1, 2016 Strategic and systematic process for transit agencies to procure, operate, inspect, maintain, rehabilitate and replace transit capital assets. At a minimum, plans must include: An inventory of assets (equipment, rolling stock, infrastructure and facilities) Condition assessment Prioritization of investments Targets for state of good repair performance measures Annual NTD reporting requirements (set targets by Jan. 1, 2017; evaluate performance Sept. 30, 2017) Initial TAM plans must be developed by October 2018, then updated every 4 years 32

33 TRANSIT ASSET MANAGEMENT (TAM) CATEGORY PROVIDER PLAN ELEMENTS PLAN SPONSOR TIER I Operates rail or >100 vehicles across all fixed route (FR)/non-FR modes Inventory of capital assets Condition assessment Decision support tools Investment prioritization TAM and SGR Policy Implementation strategy List of key annual activities ID of resources Evaluation plan Develop and carry out their own plan TIER II 5311 subrecipient or American Indian Tribe or <100 vehicles across all FR/non-FR modes Inventory of capital assets Condition assessment Decision support tools Investment prioritization Develop and carry out their own plan or Participate in a group plan 33

34 PERFORMANCE-BASED PLANNING REQUIREMENTS FHWA and FTA jointly issued a Final Rule on Statewide and Nonmetropolitan Transportation Planning and Metropolitan Transportation Planning effective June 27, Performance targets for both Public Transportation Agency Safety Plans and Transit Asset Management must be coordinated between transit providers, the Metropolitan Planning Organization (MPO this is NCTCOG), and the State Targets will be integrated into: Long range transportation plans (Mobility 2040 and its updates) Transportation Improvement Program (TIP) Additional information on coordination coming soon 34

35 BUY AMERICA NEW REQUIREMENTS The FAST Act updated requirements for domestic content of rolling stock FTA s Buy America requirements apply to third-party procurements for steel, iron or manufactured goods (including rolling stock) The cost of the components and subcomponents produced in the U.S. must be more than: 60 percent for FY2016 and FY percent for FY2018 and FY percent for FY2020 and beyond Domestic content requirements for railcars and buses will be based on the scheduled delivery date of the first vehicle Buy America provisions do not apply to small purchases (less than $150k) 35

36 BUS TESTING PROGRAM Establishes pass/fail standard and scoring system for buses and modified vans that addresses: Structural integrity Safety Maintainability Reliability Fuel economy Emissions noise Performance Effective October 31, 2016 FTA funds cannot be used to lease or buy busses that have not met the minimum standards of the program Bus reports available at 36

37 MORE UPDATES AND UPCOMING FEDERAL GUIDANCE Updated Guidance Americans with Disabilities Act Guidance updated October 2015 (C ) Award Management Circular updated February 2016 (C E) Coming Soon Equal Employment Opportunity Program Guidelines anticipated in Fall 2016 U.S. Department of Labor s Final Rule on Overtime takes effect December 1, 2016 (see handouts) 37

38 ACCESS NORTH TEXAS 38

39 ACCESS NORTH TEXAS 2013 PLAN Focused on better serving older adults, individuals with disabilities, low-income individuals, and other groups with transportation challenges as they travel in the 16-county North Central Texas region Includes county-specific prioritized public transportation strategies Strategies focused on topics such as: Targeted implementation plans Funding new services Enhancing the user s experience 39

40 PROGRESS FROM ACCESS NORTH TEXAS 2013 PLAN Increase regional connections STAR launched new commuter bus service through funding partnerships with local governments Interlocal agreement between Dallas Area Rapid Transit (DART) and STAR Transit allows STAR Transit to drop off riders at DART rail stations Provided previously inaccessible access to jobs and services in Dallas 40

41 PROGRESS FROM ACCESS NORTH TEXAS 2013 PLAN Establish and communicate the cost of service to potential partners City of Coppell identified the need to provide transit service Older adults and individuals with disabilities were their priority Annual contract with Span for transit service Additional local match for Span s federal transit funds 41

42 UPDATE TIMELINE AND OUTCOMES Visit 42

43 UPDATING THE PLAN GET INVOLVED! Continue to identify successfully implemented strategies Work with communities to identify transportation needs Identify, select, and update solutions Incorporate into funding recommendations for transit 43

44 COMMUNITY MEETINGS Fall 2016 Spring 2017 Summer

45 QUESTIONS OR COMMENTS? 45

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