Thinking Outside The Bus Cws Presentation

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Thinking Outside The Bus Cws Presentation

  1. 1. Starting and Growing Vanpool Programs: From Financing to Vehicle Procurement
  2. 2. Overview <ul><li>What is a Commuter Vanpool? </li></ul><ul><li>Vanpooling in context </li></ul><ul><li>Federal funding options </li></ul><ul><li>Sample program </li></ul>
  3. 3. What is a Commuter Vanpool? <ul><li>Characteristics </li></ul><ul><li>Volunteer driven </li></ul><ul><li>Near home & work </li></ul><ul><li>Long commutes </li></ul><ul><li>Shared expense </li></ul><ul><li>Monthly subscription </li></ul><ul><li>Group determines schedule and route </li></ul><ul><li>10 cars  1 vanpool </li></ul>A big carpool with rules and a schedule!
  4. 4. Why Vanpool? <ul><li>Cost </li></ul>Chris’ commute as plugged into www.commuterchallenge.org/commute_costcalc.html Mode Yearly Cost Drive Alone $2331 2-person Carpool $1166 7-person Vanpool $514 Bus (averaged) $792
  5. 5. Why Vanpool? 2009 APTA Public Transportation Fact Book
  6. 6. Why Vanpool? <ul><li>Commuter Choice Tax Benefits </li></ul><ul><li>Otherwise known as qualified transportation fringe benefits (26 USC §132(f)) </li></ul><ul><li>Parking tax-free up to $230/month </li></ul><ul><li>Transit and Vanpools up to $230 month </li></ul><ul><li>Bicycle reimbursement at up to $20 month </li></ul><ul><li>No benefit for pedestrians or carpools </li></ul><ul><li>Must be provided through the employer </li></ul>
  7. 7. Ridership Surge in 2008 Data Source: VPSI and American Public Transportation Association (APTA)
  8. 8. Vanpooling: The Safest Mode of Public Transportation “ Transit Safety and Security Statistics and Analysis Annual Report” by Mode for Reported Fatalities: 1990-2007” Source: National Transit Database and Bureau of Transportation Statistics, USDOT Fatalities per 100 Million Vehicle-Miles
  9. 9. The Most Efficient Mode of Public Transportation at Reducing CO 2 Emissions per Public Subsidy Dollar Data Sources: Transit Modes: based on Passenger-Miles, Fuel and Electricity Consumption, Uses of Capital Funds, Operating Expenses and Fare Revenues in the Federal Transit Administration’s 2007 National Transit Database. Figures are national averages weighted by Passenger-Miles. Emission factors for fuels from U.S. Department of Energy. Emissions factors for electricity from eGRID sub-region data, U.S. Environmental Protection Agency.
  10. 10. Market Opportunities <ul><li>Environmentally-Sensitive locations </li></ul><ul><ul><li>Nuclear Power Facilities </li></ul></ul><ul><ul><li>Meat Processing Facilities </li></ul></ul><ul><ul><li>Prisons and Correctional Facilities </li></ul></ul><ul><ul><li>Mining facilities </li></ul></ul><ul><li>Carbon Emission Reduction Programs </li></ul><ul><ul><li>Regional Climate Change Compacts </li></ul></ul><ul><ul><li>National Climate Change Initiatives </li></ul></ul><ul><li>Other </li></ul><ul><ul><li>Department of Defense </li></ul></ul><ul><ul><li>Army Corps of Engineers </li></ul></ul><ul><ul><li>Colleges and Universities </li></ul></ul><ul><ul><li>State Capitals and Administrative Offices </li></ul></ul>If it is a single location with a large number of employees traveling at the same time every day: You might have an opportunity to form a vanpool.
  11. 11. In the foreground… This is what it looks like to the consumer…
  12. 12. … let’s see what is in the background
  13. 13. Federal Funding Sources <ul><li>FTA Section 5307 </li></ul><ul><ul><li>80% Federal / 20% Local </li></ul></ul><ul><li>FTA Section 5311 </li></ul><ul><ul><li>80% Federal / 20% Local </li></ul></ul><ul><ul><li>Category “C” for new projects </li></ul></ul><ul><li>FTA “Job Access & Reverse Commute” </li></ul><ul><ul><li>80% Federal / 20% Local </li></ul></ul><ul><ul><li>Income criteria </li></ul></ul><ul><li>FHWA CMAQ </li></ul><ul><ul><li>Vanpool capital at 100% Federal share for “new, growth or expansion” only </li></ul></ul><ul><ul><li>Vanpool marketing at 100% Federal share </li></ul></ul><ul><ul><li>May transfer $$$ to FTA Rules @ FHWA 100% </li></ul></ul><ul><li>Flexible Funding </li></ul><ul><ul><li>Transfer between FTA Sections </li></ul></ul>
  14. 14. FTA Formula Funding & Vanpooling <ul><li>Eligible Project Costs at 80% Federal </li></ul><ul><ul><li>Capital </li></ul></ul><ul><ul><ul><li>Vans, Financing, Maintenance, Delivery Charges </li></ul></ul></ul><ul><ul><li>Non-Operating (5311 Funds Only) </li></ul></ul><ul><ul><ul><li>Project Management and Marketing </li></ul></ul></ul><ul><ul><ul><li>Insurance Premiums & Payments to Self-Insurance Reserve </li></ul></ul></ul><ul><ul><ul><li>Facilities and Equipment Rental </li></ul></ul></ul><ul><ul><ul><li>Standard Overhead Rates </li></ul></ul></ul><ul><ul><ul><li>Drug and Alcohol Testing (Not Required for Vanpools) </li></ul></ul></ul>“ Promoting and coordinating ridesharing eligible, if part of coordinated public transportation program.”
  15. 15. FTA Formula Funding (continued) <ul><li>Service Considerations </li></ul><ul><li>Areas not currently in UZA are eligible for Sec. 5311 funding, even if they are included in metro area planning boundary (which includes the air quality non-attainment boundary) </li></ul><ul><li>Projects may include transportation TO and FROM urbanized areas </li></ul><ul><li>Service area may include destinations ACROSS a state line </li></ul><ul><li>Funding and Procurement Considerations </li></ul><ul><li>Governors (State DOTs) have authority to transfer unspent §5307 to §5311 (and “vice versa”) </li></ul><ul><li>Combinations of funding can be used to support programming </li></ul><ul><li>“ Common Rule” permits some states to use own procurement rules </li></ul><ul><li>Federal procurement threshold is only $100,000 </li></ul>
  16. 16. CMAQ Eligible Funding (FHWA)
  17. 17. Impact of Capital Assistance on Fleet Growth 259 Pre-Subsidy Growth Rate: 9% per year (Compounded) 372 Subsidized Growth Rate: 24% per year (Compounded) 1,508
  18. 18. Vehicles (FTA Buy America: “OK”) <ul><li>Full-size Vans/Wagons </li></ul><ul><li>Minivans </li></ul>
  19. 19. Okay, I have money, now what????? <ul><li>It’s a decision point: </li></ul><ul><ul><li>How much of the service do I want to operate? </li></ul></ul><ul><ul><li>Will I be able to get replacement capital in the future? </li></ul></ul><ul><ul><li>How much time is available to manage the service? </li></ul></ul><ul><ul><li>What flexibility do I have available to me? </li></ul></ul>
  20. 20. Public-Private Partnership <ul><li>Provision of Vehicles </li></ul><ul><ul><li>Contract, Lease, Purchase or “At-Arm’s Length” </li></ul></ul><ul><ul><li>Terms – Life of equipment, 30-day pay-as-you-go </li></ul></ul><ul><ul><li>Risk – 0% to 100% </li></ul></ul><ul><ul><li>Features not readily available via OEM dealer network or OEM only </li></ul></ul><ul><li>Services (Experience & Economy of Scale) </li></ul><ul><ul><li>Maintenance/Repair Management </li></ul></ul><ul><ul><li>Insurance and Risk Management </li></ul></ul><ul><ul><li>Marketing Management </li></ul></ul><ul><ul><li>Fuel Management </li></ul></ul><ul><ul><li>NTD Reporting </li></ul></ul><ul><ul><li>Voucher Services </li></ul></ul>
  21. 21. FTA Capital Cost of Contracting A recipient may request FTA participation in a higher percentage of the contract than is shown in the table, but must provide appropriate written cost information and documentation to justify the higher percentage to FTA. 1 Service Contract: Contractor provides Maintenance and transit/vanpool service, grantee provides vehicle 40% 2 Service Contract: Contractor provides transit/vanpool service only, grantee provides vehicles and maintenance 0% 3 Vehicle Maintenance Contract: Contractor provides maintenance, grantee provides vehicles and transit/vanpool service 100% 4 Vehicle Lease Contract: Contractor provides vehicles, grantee provides maintenance and transit/vanpool service 100% 5 Maintenance/Lease Contract: Contractor provides vehicles and maintenance, grantee provides transit/vanpool service 100% 6 Turnkey Contract: Contractor provides vehicles, maintenance and transit/vanpool service 50% 7 Vehicle/Service Contract: Contractor provides vehicles and transit/vanpool service, grantee provides maintenance 10%
  22. 22. Turnkey Vanpool Service <ul><li>Vehicles </li></ul><ul><li>Maintenance </li></ul><ul><li>Service delivery </li></ul><ul><li>Fare collection </li></ul><ul><li>Subsidy mechanism </li></ul><ul><li>Payment terms – Net 30 days </li></ul><ul><li>FTA Third Party Contracting Guidelines </li></ul><ul><li>FTA National Transit Database Reporting </li></ul><ul><li>Compliance and Audit Provisions </li></ul>
  23. 23. FTA Capital Cost of Contracting $1,500 shared by 12 riders = $125/mo $900 shared by 12 riders = $75/mo
  24. 24. FTA Capital Cost of Contracting S. 1795 & H.R. 1571 - “The Private Investment in Commuter Vanpooling Act ” $1,500 shared by 12 riders = $125/mo $900 shared by 12 riders = $75/mo
  25. 25. PPP: Elements for Success <ul><li>Application or </li></ul><ul><li>Proposal Process </li></ul>2) Agreement with Scope of Services 3) Invoice and Status Report
  26. 26. Subrecipient of FTA Funding <ul><li>49 USC §5309(b)(3) Capital Investment Grants </li></ul><ul><ul><li>“ The Secretary may make grants under this Section to assist State and local governmental authorities in financing…” </li></ul></ul><ul><ul><li>“… capital projects to replace, rehabilitate, and purchase buses and related equipment and to construct bus-related facilities, including programs of bus and bus-related projects for assistance to subrecipients that are public agencies, private companies engaged in public transportation , or private nonprofit organizations; and…” </li></ul></ul>
  27. 27. PPP: Elements for Success (continued) <ul><li>Application for </li></ul><ul><li>Federal Assistance </li></ul>2) Agreement with Scope of Services 3) Invoice and Status Report
  28. 28. Various Driver Agreements <ul><li>Volunteer </li></ul><ul><li>Driver </li></ul><ul><li>Agreement </li></ul>3) Three-Party Volunteer Driver Agreement <ul><li>Alternate </li></ul><ul><li>Volunteer </li></ul><ul><li>Driver </li></ul><ul><li>Agreement </li></ul>
  29. 29. Risk Management <ul><li>Vanpool </li></ul><ul><li>Driver </li></ul><ul><li>Approval </li></ul><ul><li>Criteria </li></ul>4) Consumer Report Authorization: Driving and Credit Records 3) Consumer Report Authorization: Driving Record 2) Volunteer Driver Application Process
  30. 30. Florida DOT Rural Vanpool <ul><li>FDOT identified “Areas of Critical Economic Concern” </li></ul><ul><li>(includes 28 of 32 rural counties) </li></ul><ul><ul><li>Low per capita income </li></ul></ul><ul><ul><li>Low per capita taxable values </li></ul></ul><ul><ul><li>High unemployment </li></ul></ul><ul><ul><li>High underemployment </li></ul></ul><ul><ul><li>Low weekly earned wages </li></ul></ul><ul><ul><li>Low housing values </li></ul></ul><ul><ul><li>High % of population receiving </li></ul></ul><ul><ul><li>public assistance </li></ul></ul><ul><ul><li>High poverty levels </li></ul></ul><ul><ul><li>Lack of year-round employment opportunities </li></ul></ul>
  31. 31. Florida DOT Rural Vanpool (continued) Unsubsidized Monthly Rate $1,737 ÷ 12 = $145/mo Monthly Rate ( § 5311 Applied ) $695 ÷ 12 = $58 per month Capital Expenses Non-Operating Expenses Operating Expenses
  32. 32. Florida DOT Rural Vanpool (continued) Up to thirty-eight (38) vanpools placed in service during first twenty-one months of contract Proposed Funding CY10-11 Federal FTA §5311 Capital $ 391,680 22% Private Capital Investment $ 1,124,800 63% Fare Revenue $ 264,550 15% TOTAL $ 1,781,230
  33. 33. Florida DOT Rural Vanpool (continued) <ul><li>Thirty-eight vanpools over 21 months </li></ul><ul><li>Use of FTA §5311 AARA via FTA Capital Cost of Contracting </li></ul><ul><li>Impact on est. pricing… ~ $60/month vs. ~ $150/month </li></ul><ul><li>Florida DOT… </li></ul><ul><ul><li>Has NO ownership interest or financial obligation for vehicles </li></ul></ul><ul><ul><li>Is fully-insured and indemnified </li></ul></ul><ul><ul><li>Is sent a monthly invoice and pays only for “service-consumed” </li></ul></ul><ul><ul><li>Is relieved of… </li></ul></ul><ul><ul><ul><li>Day-to-day vanpool program administration </li></ul></ul></ul><ul><ul><ul><li>Legal and financial responsibilities of vehicle operations, and </li></ul></ul></ul><ul><ul><ul><li>Coordinating marketing efforts throughout the service area </li></ul></ul></ul>
  34. 34. Questions? Chris Simmons VPSI Inc. Government Affairs Executive Tel: (248) 597-3500 Email: [email_address]

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