1. Virginia Department of Rail and Public Transportation Grantee Fall Webinar Terry Brown Amy Inman Jamie Motley Steve Pittard

2. Virginia Department of Rail and Public Transportation Application Season

3. Virginia Department of Rail and Public Transportation Capital Applications FTA is asking for a much higher level of detail in applications – VINs and mileage for vehicles being replaced – Spare ratio / peak fleet for any vehicle purchase – Warranty information for repairs on facilities – Useful life for any and all assets – Please include information in your application

4. Virginia Department of Rail and Public Transportation Capital Applications Please include a title for any generic applications – If you select the code for Construction of Rail Related Facilities, please include a title in the comments section to tell the reviewer the location of the facility For large purchases, include a time line for the project – This should also be reflected in realistic milestones – Milestones should be achievable and realistic. Contracts are written using the milestones you enter in your application.

5. Virginia Department of Rail and Public Transportation Capital Applications When applying for a vehicle, please include the cost for the vehicle to be “road ready” – Include the cost of the radio, security camera, farebox and tablet that must be installed prior to putting rolling stock into service – Don’t forget to include milestones for installation of equipment, so the end date of the vehicle will be set appropriately – All items necessary for the safe and secure operation of rolling stock qualify for Tier 1 funding

6. Virginia Department of Rail and Public Transportation Capital Application Based on the 2014 FTA State Management Review, DRPT will need 5311 and 5310 grantees to attach Preventive Maintenance schedules and plans to capital applications Contact your Project Manager for technical assistance on development or maintenance of plans

7. Virginia Department of Rail and Public Transportation Five Year Capital Budget Data should agree to your TDP Project titles should contain sufficient detail to allow DRPT to determine a tier for the project – E.g., “radios” could be a Tier 1 (if they are being bought for new buses coming in) or a Tier 3 (if you are purchasing several to replace broken radios throughout the fleet, thus making it a maintenance item) Good information is vital to DRPT calculating the future matches that should be available

8. Virginia Department of Rail and Public Transportation 8 Operating Applications Total Operating Expenses ideally should agree to CAFR (audited financial statements) In cases where Total Operating Expenses do not agree to CAFR, you should have supporting documentation of how you came up with the total Crosswalk of expenses that must be subtracted from either the application or the CAFR to make the figures agree Appropriate pages of your General Ledger An Excel spreadsheet is NOT the same as a G/L CAFRs are due to your Program Manager 90 days after the end of your fiscal year. Electronic copies please.

9. Virginia Department of Rail and Public Transportation 9 Intercity Bus Working with consultant to develop an Intercity Bus Program, as required by FTA 5311 Program State required to expend at least 15 percent of its Section 5311 apportionment for an intercity bus program, unless “the chief executive officer of the State certifies to the Secretary of Transportation, after consultation with affected intercity bus service providers, that the intercity bus service needs of the State are being met adequately.”

10. Virginia Department of Rail and Public Transportation 10 Intercity Bus Eligible Projects Support the connection between both rural and nonurbanized areas and the larger regional or national system of intercity bus service. Support services to meet the intercity travel needs of residents in nonurbanized areas. Support the infrastructure of the intercity bus network through planning and marketing assistance and capital investment in facilities.

11. Virginia Department of Rail and Public Transportation Transit Funding – FY 2015 October 28, 2014

12. Virginia Department of Rail and Public Transportation State Transit Revenues Recent Trend: Declining Estimated FY 2015 state revenues – down 10% overall since HB2313 (June 2013) enacted Estimated FY 2015 state revenues – down 7% from SYIP approval (June 2014) to August ($16.5 M) Actual FY 2014 state revenue collections - $14.2 M shortfall Uncertainty concerning federal revenues

13. Virginia Department of Rail and Public Transportation State Transit Revenues MFA Not Approved January 1, 2015 alternative implemented of 1.6% increase to gasoline tax Projected funding for transit will decline by approximately 80% With MFA, projected revenues of $25 M per year compared to about $5 M per year without MFA

14. Virginia Department of Rail and Public Transportation Transit Revenues Reduction – HB2313 to August, 2014

15. Virginia Department of Rail and Public Transportation Transit Revenues Reduction Since Approved SYIP, June 2014

16. Virginia Department of Rail and Public Transportation Revenue Reductions Impact on SYIP Programs Program Amount (millions) Transit Operating$ 12.3 Transit Capital2.5 Transit Special0.3 Transit Reserve0.8 Project Mgmt / Admin.0.6 Total$ 16.5 Rail, Transit Capital, and Transit Special programs reductions addressed with unobligated balances Transit Operating and Capital reserve set-aside reduced for FY 2015

17. Virginia Department of Rail and Public Transportation Summary of Actions to Address Revenue Reductions Program Amount (millions) Capital – Operating Transfer$ 11.6 Unobligated Balances - Transit3.5 Transit Reserve Reduction0.8 Project Mgmt / Admin. Reduction0.6 Total$ 16.5

18. Virginia Department of Rail and Public Transportation Transit Operating SYIP Impact Mitigating Strategies Deobligated balances of $1.6 M from April through July Requesting that CTB recognize a special need as authorized under §58.1-638.A.4.b. Transfer of funds from funding categories in subdivisions 4 b (2) (c) [Capital] and 4 b (2) (d) [Special] to 4 b (2) (b) [Operating] shall be considered by the Commonwealth Transportation Board in times of statewide economic distress or statewide special need. Total of $11.6 M of Mass Transit Trust Fund (MTTF) capital proposed for transfer The MTTF capital funding will be replaced using unobligated CPR bonds

19. Virginia Department of Rail and Public Transportation FY 2015 DRPT Operating Budget Reductions Project management, project compliance, and administration budget cut by 6% or $613 K Reduced / delayed agency initiatives Eliminated bonus funding; language removed from the final Appropriation Act approved June 23rd Plan for additional 2% reduction for FY 2016

20. Virginia Department of Rail and Public Transportation Detailed Information on Various State Sources of Transit Funding

21. Virginia Department of Rail and Public Transportation State Transit Revenues Primary Sources Transportation Trust Fund – 1986 Session Recordation Taxes – 2007 Session Tax on Insurance Premiums – 2007 Session Retail Sales and Use Tax (SUT) – 2013 Session Various Federal Transit Administration (FTA) programs

22. Virginia Department of Rail and Public Transportation

24. Transportation Trust Fund 1986 Session Major Underlying Revenue Sources Motor vehicle fuel tax Motor vehicle sales and use tax Motor vehicle license fees Retail sales and use tax

25. Virginia Department of Rail and Public Transportation Transportation Trust Fund 1986 Session Other Information 14.7% to the Mass Transit Trust Fund (MTTF) - §58.1-638.A.4. Minimum of 72% to transit operations Up to 3% for transit special programs 25% for transit capital projects

26. Virginia Department of Rail and Public Transportation Recordation Taxes 2007 Session Information Tax on recording real estate transactions $0.02 of the state recordation tax to the MTTF [$0.25 per $100 of value is the total recordation tax] Dedicated to transit operating assistance §58.1-815.4.

27. Virginia Department of Rail and Public Transportation Transportation Capital Projects Revenue (CPR) Bonds – 2007 Session Information Total bond authorization $3.0 billion 1/3 of gross insurance premiums tax (2.25%) deposited into the Priority Transportation Fund to provide a revenue stream for the CPR bonds - §58.1- 2531 A minimum of 20% of the bond proceeds for transit capital consistent with subdivision A 4 c of §58.1-638 - the Mass Transit Capital Fund DRPT/CTB elected to receive this funding over ten years -$60 million per year Other uses of the bonds include: rail (4.3%), match to federal funds, revenue sharing funding, statewide or regional projects $50 million a year for 10 years to match WMATA PRIIA federal funds Dulles Metrorail also received bond funds from regional projects category

28. Virginia Department of Rail and Public Transportation Retail Sales and Use Tax 2013 Session Information 0.075% of the general retail sales and use tax to the MTTF Minimum of 72% to transit operations Up to 3% for transit special programs 25% for transit capital projects §58.1-638.3.

29. Virginia Department of Rail and Public Transportation FTA Revenue Sources Information Approximately $24 million a year of flexible STP funds (CTB discretion) Approximately $34 million a year from the various FTA programs FTA 5311 program for rural providers and the FTA 5307 Governor’s Apportionment program for small urban providers

30. Virginia Department of Rail and Public Transportation Grants Management Issues

31. Virginia Department of Rail and Public Transportation Transportation Improvement Program (TIP) Mandated by 49 U.S.C. 5303(j). Project and funding must be in the TIP. The TIP is managed by the MPO and it is the responsibility of the grantee and the MPO to ensure projects and funding are properly reflected in the TIP. The TIP must be financially constrained.

32. Virginia Department of Rail and Public Transportation 32 Statewide Transportation Improvement Program (STIP) Mandated by 49 U.S.C 5304(g). STIP includes highway and transit projects. VDOT is responsible for highway portion and DRPT is responsible for transit portion. Projects/funding in TIP are included in STIP. MPOs and DRPT must work together to make sure TIP and STIP are in agreement.

33. Virginia Department of Rail and Public Transportation State and Federal Approval The Secretary of Transportation or his designee must approve the STIP. Projects and funding must be properly included in an approved STIP before FTA or FHWA will obligate federal funds. Go the DRPT website at www.drpt.virginia.gov and select About DRPT/Finance to see the current STIP.www.drpt.virginia.gov

34. Virginia Department of Rail and Public Transportation 34 Procurement Contracts Available DRPT has set up various vehicle and nonprofessional services contracts that can be used by grantees. Vehicle Contracts Various Sizes of Ford Gas Passenger Vans Low Floor Transit Buses (30’, 35’, and 40’) Procurement for various Chevrolet Gas Passenger Vans is currently out for bid.

35. Virginia Department of Rail and Public Transportation 35 Procurement Contracts Available, continued Nonprofessional Services General Planning Consultant Services for Transit General Financial Consultant Services General Communications and Marketing Services Go the DRPT website at www.drpt.virginia.gov andwww.drpt.virginia.gov select About DRPT/Procurement/Contracts. You can view the contracts and other important information.

36. Virginia Department of Rail and Public Transportation 36 Compliance Reviews Maintain support for the methodology used and amounts calculated for passenger trips, revenue hours, and revenue miles. Operating Expenses Sizing - Most recent audited operating cost available, net of depreciation, projects funded in other DRPT programs, and non-transit related expenses. Net Operating Expenses Performance - Total operating costs less depreciation and any operating income derived from a source other than taxpayers.

37. Virginia Department of Rail and Public Transportation Compliance Reviews DRPT’s asset inventory system in OLGA must be updated by July 15 th of each year. DRPT recommends you update OLGA when you change your own internal system. Travel costs requested for reimbursement must be in accordance with State travel regulations.

38. Virginia Department of Rail and Public Transportation Extension Requests DRPT has gotten stricter on the requirements for these requests – Must be requested at least 30 days prior to the end date in effect – Please include meaningful information on the reason the project has fallen behind, including updated milestones – Even more importantly, provide information on why an additional period of time will make a difference – If you find that the project is not moving forward at this time, work with your project manager to deobligate the funding. You can reapply at a future date when the project is ready to go

39. Virginia Department of Rail and Public Transportation Contracts and Milestones When you receive a contract for approval, please check to make sure the description is what you expected and that the end date is appropriate – It is much easier to change the date before the contract is signed than it is after If the end date on the contract seems incorrect, you will be asked to go into OLGA and correct your milestones

40. Virginia Department of Rail and Public Transportation Billing Regularly Please bill at least quarterly if you have activity on the project – Longer periods between bills result in large amounts of supporting documentation which can be challenging for your program manager to review in a timely manner – Providers who do not bill for long periods can raise concerns about financial well being

41. Virginia Department of Rail and Public Transportation Multi-Year Funding Agreements To address larger capital projects with expenditures over several years, DRPT is now – Include the cost of the radio, security camera and tablet that must be installed prior to putting rolling stock into service – Don’t forget to include milestones for installation of equipment, so the end date of the vehicle will be set appropriately – All items necessary for the safe and secure operation of rolling stock qualify for Tier 1 funding

42. Virginia Department of Rail and Public Transportation Ridership Due Dates For grantees with fiscal year ending June 30, Ridership is required by October 31 of each year For grantees with fiscal year ending September 30, Ridership is required by December 31 of each year – Any change to this calendar must be communicated to your program manager – Keep your support for your calculation of your entry – You will be asked to briefly explain changes of +/- 10% over last year

43. Virginia Department of Rail and Public Transportation Future Reporting Structure DRPT will begin requesting Ridership, Revenue Miles and Revenue Hours on a monthly basis – Annual Report no longer necessary At the end of each quarter, the monthly reporting within that quarter will be closed. Changes can still be made, but they will require an amendment to the current data – Amendment will capture original entry, corrected entry, employee making the change and the date on which the change was made – You can do more than one amendment but each will be captured – Maintain your supporting documentation on the calculations to come up with the data entered

44. Virginia Department of Rail and Public Transportation Six Year Improvement Program The draft Six Year Improvement Program is presented to the Commonwealth Transportation Board on the third Wednesday in April – It is posted on the DRPT website at that time The final Six Year Improvement Program is approved by the CTB on the third Wednesday in June. – It is posted on the DRPT website at that time. After the draft is posted, please access the SYIP on DRPT’s website and review the grants that are listed for you. While DRPT makes EVERY effort to issue a correct draft, we review hundreds of line items each year. You know what your grants should look like. If you see something that may be an error on either your or DRPT’s side, bring it to your Program Manager’s attention immediately.

45. Virginia Department of Rail and Public Transportation 45 www.drpt.virginia.gov 804-786-4440