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STATE OF INDIANA MITCHELL E. DANIELS, JR., GOVERNOR STATE MANAGEMENT PLAN FOR SECTION 5316 FEDERAL TRANSIT ADMINISTRATION (FTA) JOB ACCESS AND REVERSE COMMUTE (JARC) PROGRAM June 2008 Indiana Department of Transportation Office of Transit 100 North Senate Avenue, Room N955 Indianapolis, Indiana 46204-2219 317/234-5161 317/232-1499 (FAX) 1 TABLE OF CONTENTS SECTION A. Program Goals and Objectives • Introduction • Program Goals and Objectives • Definitions B. Roles and Responsibilities • Federal Transit Administration (FTA) • Indiana Department of Transportation (INDOT) • Metropolitan Planning Organizations (MPOs) C. Coordination • Coordinated Public Transit-Human Services Transportation Plans • Local Coordination • Statewide Coordination D. Eligible Subrecipients • Direct Subrecipients • Pass-Through Recipients E. Funding Requirements • Federal Share • Local Share F. Application Process, Financial Assistance, Eligible Projects, Selection Criteria, and Funds Distribution • Types of Financial Assistance • Eligible Activities • Project Eligibility • Applications/Requests for Funding • Competitive Selection Criteria • Distribution of Funds G. Annual Program of Projects Development and Approval Process • Program of Projects • Applicant Award Notification and Appeal Process • Contract Execution H. Administration, Planning and Technical Assistance I. Transfer of Funds J. Private Sector Participation K. Civil Rights L. Section 504 and ADA Reporting M. Program Measures N. Designated Recipient Program Management • Accounting Systems, Financial Management, and Reporting • Procurement • Satisfactory Continuing Control • Property Management • Vehicle and Equipment Use • Maintenance 2 • Disposition • Vehicle Classifications and Useful Life • Monitoring • Audits and Close-outs O. Other Provisions • Environmental Protection • Buy America • Pre-Award and Post-Delivery Reviews • Restrictions on Lobbying • School Transportation • Drug and Alcohol Testing • Miscellaneous Requirements o Section 5333(b) o Charter Rule o Commercial Driver’s License o Lease Versus Buy Considerations o Evaluation of Flood Plains o Real Estate Acquisition and Relocation o FTA Safety Jurisdiction P. State Management Plan Revisions and Updates Exhibits 1-Required Federal Contract Clauses 2-Competitive Selection Criteria 3 A. PROGRAM GOALS AND OBJECTIVES Introduction Indiana annually receives federal funds for the Job Access and Commute Program (JARC) to distribute on a federal and local matching basis. The Governor of Indiana has designated the Indiana Department of Transportation (INDOT) as the agency responsible for administering Indiana’s JARC allocation. The Indiana Department of Transportation, Office of Transit solicits JARC applications, provides technical assistance to prospective applicants, selects projects, executes grant awards, and monitors equipment purchases and vehicle operation. This State Management Plan meets the requirements of FTA as set for the in the Job Access and Reverse Commute Program Circular, FTA C 9050.1 issued May 1, 2007, and describes the process by which INDOT implements the JARC Program within the State of Indiana. This Plan also contains the criteria by which applicants can apply and receive JARC funding. To participate in the JARC program, an applicant must submit an application that meets the criteria listed in this plan and the instructions and forms contained in the INDOT Application for JARC Funding application package. Program Goals and Objectives The Indiana Department of Transportation (INDOT) Office of Transit’s mission is to improve personal mobility and quality of life through the preservation and enhancement of passenger transportation systems. This mission is carried out through the following goals: • Improve access to employment, services, education, and recreation for all Indiana citizens. • Increase modal choices through high occupancy, shared-ride travel options to provide every community with a broad range of transportation options. • Support affordable modal choices for all Indiana citizens. • Encourage energy conservation. The JARC program is a formula-based program, which is intended to provide an equitable funding distribution to States and communities as well as stable and reliable funding in order to implement locally developed, coordinated plans. The goal of the JARC program is to improve access to transportation services to employment and employment related activities for welfare recipients and eligible low-income individuals. The programs objective is to provide maximum flexibility to communities in designing plans and projects to meet these needs in all areas— urbanized, small urban, and rural. Funds are available for all areas—urbanized, small urban, and rural; projects must be derived from a locally developed coordinated public transit-human services transportation plan. The Coordinated Plan will be integrated into the metropolitan and statewide transportation planning processes. 4 Transit in INDOT’s Long Range Planning Process INDOT conducts a consultation process with local officials through the the Annual Program Development Process (APDP) and a state consultation tour process involving meetings at its six district offices. In addition, INDOT has conducted other processes including statewide forums on statewide planning issues held periodically, focus groups on rural transportation issues, and a cooperative transportation planning program with Metropolitan Planning Organizations, and selected, multi-county, regional planning commissions. The INDOT process prepares a 25 year Long Range Transportation Plan, a multiyear (6 to 10 year) “production schedule” list of projects and a 3-year Indiana Statewide Transportation Improvement Program (INSTIP). The APDP is a series of cooperative programs development activities including program review, a “call for projects” and statewide revisions resulting in the updated annual production schedule and INSTIP. In each of the six INDOT district offices, an “early consultation process” is conducted for rural area local elected officials, local government agency representatives, special interest groups, and other key transportation stakeholders. All are notified by mail that a call for new projects is in process. Participants are instructed to contact the INDOT District Offices. INDOT Districts each approach the early consultation process differently. Some Districts conduct meetings, other Districts conduct onsite visits to communities, and others rely upon mail or telephone-based contacts. Projects drawn from the INDOT Long Range Transportation Plan provide input into the review of capacity expansion projects recommended for advancement into the production schedule. The INDOT districts coordinate the project identification process and submit a list of recommended projects to the INDOT Office of Integrated Transportation Planning. A statewide priority analysis is conducted in conjunction with fiscal analysis resulting in a draft program then receiving executive level review and approval. The recommended program is then provided to the district with a request for comments. Based upon the recommended program and the review process, the draft production schedule and INSTIP are prepared. 5 B. ROLES AND RESPONSIBILITIES Federal Transit Administration (FTA) The FTA is the federal oversight agency. With headquarters in Washington, D.C., FTA is responsible for: providing overall policy and program guidance for the JARC program; allocating funds annually to the States; developing and implementing financial management procedures; initiating and managing program support activities; and conducting national program review and evaluation. The FTA Region V Office in Chicago is responsible for the day-to-day administration of the program. Regional office activities include: reviewing and approving state grant applications; obligating funds; working with states to implement the annual program; receiving state certifications and revisions to the program of projects; review and approval of State Management Plans; oversight of state management responsibilities; and overall grant management. Indiana Department of Transportation (INDOT) INDOT has been designated by the Governor as the agency responsible for the administration of U.S. DOT Federal Transit Administration (FTA) programs, including the JARC Program, within the State of Indiana. Within INDOT, that responsibility falls upon the Office of Transit. The Office of Transit’s responsibilities include a fair and equitable distribution of funds, adhering to federal and state program guidelines, notifying eligible applicants about the availability of the program, developing program criteria, soliciting applications, and monitoring and improving coordination of public transportation services at the local and state levels. The Office of Transit will, for non-urbanized areas, certify eligibility of applicants, review applications, select applications for approval, apply for and receive funding, execute contracts, monitor grants, ensure that audits are performed on all JARC grants, and close out projects. The Office of Transit will also provide appropriate technical assistance to all subrecipients. Metropolitan Planning Organizations (MPOs) The INDOT Office of Transit will provide program guidance and selection criteria to each respective Metropolitan Planning Organization (MPO), which will conduct the application and selection process for urbanized areas of 50,000 to 200,000 population. MPOs will then submit the selected applications to the Office of Transit for review and concurrence. Following this process, the Office of Transit will make the necessary transfer of Section 5307 funds to the designated recipients for the respective urbanized areas. Each designated recipient will be responsible for executing contracts, monitoring grants, project audits and close-out. The Office of Transit will provide technical assistance to these urbanized areas as appropriate. 6 Subrecipient The subrecipient is responsible for developing the Section 5316 grant application and support documentation as required by INDOT. The subrecipient must also accept responsibility for all applicable rules and regulations. Local Transportation Advisory Committee (TAC) INDOT requires all subrecipients to participate in any existing Transportation Advisory Committee (TAC), or establish a TAC should none exist. Many areas already have groups that perform the functions of a TAC. These groups are acceptable as long as they have the proper representation and perform the activities required of a TAC. The local TAC should consist of representatives from all sectors interested in the delivery of transportation services to elderly persons and persons with disabilities. Suggested representation includes: 1. 2. 3. 4. 5. 6. 7. Private for-profit and private non-profit transportation operators Public non-profit transportation operators Public transit providers Social service agencies Local elected officials Consumers of elderly/disabled transportation services Local and/or regional planners C. COORDINATION SAFETEA-LU, the Federal authorizing legislation for highway and transit funding, requires locally developed coordinated public transit human services transportation plans as a condition for funding under three FTA Programs: Elderly Individuals and Individuals with Disabilities (Section 5310), Job Access and Reverse Commute (JARC) (Section 5316), and New Freedom Initiative (Section 5317) grant programs. The JARC program specifically requires coordination of federally assisted programs and services in order to make the most efficient use of Federal resources. By identifying both the transportation needs and issues of a particular area and the transportation services available to meet these needs, locally developed coordinated plans can help reduce or eliminate many of the problems and issues previously mentioned, such as duplication of services and underutilization of resources, and actually help extend or expand service to meet unmet transportation needs. Coordinated Public Transit-Human Services Transportation Plans All JARC projects are selected for funding from a locally developed Coordinated Plan, developed as a result of participation by a wide range of stakeholders, including but not limited to, representatives of public, private, and non-profit and human services transportation providers, potential JARC applicants, potential JARC customers, advocacy organizations, medical professionals, local businesses, the general public. These 7 coordinated plans, county and/or regional, representing nonurbanized and urbanized areas, have been developed and adopted locally and comprise the Indiana statewide coordinated plan. To be considered, each local coordinated plan must contain: a. An assessment of available services that identifies current transportation providers (public, private, and non-profit); b. An assessment of transportation needs for individuals with disabilities, older adults, and people with low incomes. c. Strategies, activities and/or projects to address the identified gaps between current services and needs, as well as opportunities to improve efficiencies in service delivery; and d. Priorities for implementation based on resources (from multiple program sources), time, and feasibility for implementing specific strategies and/or activities identified. The Coordinated Plans will serve as the foundation for the program of projects and will be integrated into the metropolitan and statewide transportation planning processes and documents to demonstrate local policy support and Federal fund eligibility. The Office of Transit provides assistance through its technical assistance contract for the development of the plans. Local Coordination Efforts Prior to the coordination plan requirement, coordination occurred primarily through local Transportation Advisory Committees (TACs), primarily as a requirement for the FTA Section 5310 program. The Office of Transit requires all Section 5310 applicants to participate in any existing TAC or to establish a TAC, and strongly recommends Section 5311 applicants to establish a TAC. The local TAC serves as an advisory and information resource to the applicant for activities including, but not limited to assisting the applicant in assessing and identifying transit needs and resources within their service area; and establishing goals and objectives for coordinated transportation service delivery. Since this process is in place for the Section 5310 and 5311 Programs, it will also be the clearinghouse for developing the coordinated plans and to ensure on-going coordination among all FTA programs, including JARC and New Freedom. Where necessary, representation on the TACs will be expanded to ensure the widest participation by affected parties has been accomplished, including representation of public, private, and non-profit and human services transportation providers and the general public, as well as other transportation providers, advocacy groups, human service agencies and passengers. Coordination at the State Level The Office of Transit will, as part of the process to develop the statewide Coordinated Plan, establish a subcommittee to facilitate cooperation and coordination between other 8 state administered transportation programs and INDOT’s transit programs. This subcommittee will provide input into the coordinated plan process as well as provide a forum for discussing strategies and policies that may assist INDOT in achieving its JARC program goals. In addition to Office of Transit representatives, subcommittee members will represent the appropriate divisions of the Indiana Family & Social Services Administration, including, but not limited to the Divisions of Family Resources, Aging, and Disability and Rehabilitation Services. D. ELIGIBLE SUBRECIPIENTS Direct Subrecipients For purposes of INDOT’s JARC program, direct eligible subrecipients which will be entering into a contract with INDOT for a JARC project must be an existing Section 5311 grantee or Section 5307 designated recipient in good standing, having met all requirements for those programs as stipulated in the INDOT Section 5311 State Management Plan and FTA Circulars 9040.1E and 9030.1C. Section 5307 designated recipients must have previously received their designated status. For the Section 5311 Program, eligible recipients must be a unit of government authorized under state law to provide and carry out a local public transportation project. Eligible Applicants include counties, cities, or towns; Public Transportation Corporations (PTC) as established under Indiana Code 36-9-4-11; Regional Transportation Authorities (RTA) as established under I.C. 36-9-3-2; Regional Planning Commissions as established under I.C. 36-7-7, This does not prohibit, however, projects where an eligible subrecipient would pass through the funding to another entity (see Pass-Thru Recipients paragraph below). Eligible subrecipients must document their participation in a locally developed coordination plan and how their proposed JARC project will serve the employment transportation needs of welfare recipients and eligible low-income individuals. In areas where there are no Section 5311 grantees, INDOT will accept New Applicants, eligible subrecipients that are units of local government authorized under state law to provide and carry out a local public transportation project. Eligible Applicants include counties, cities, or towns; Public Transportation Corporations (PTC) as established under Indiana Code 36-9-4-11; Regional Transportation Authorities (RTA) as established under I.C. 36-9-3-2; Regional Planning Commissions as established under I.C. 36-7-7. Pass-Through Recipients An eligible subrecipient may choose to pass all or a portion of its JARC funds through to another agency to carry out the purposes of the JARC project and its agreement with the State. This arrangement is required for private nonprofit organizations that have obtained a formal resolution of a local governing board to apply for JARC funding. In these situations, a written agreement must be executed between both local parties to assure the State and FTA that the recipient will be able to comply with its obligation to satisfy the requirements of the JARC grant agreement. Pass thru agreements must be clearly described in the JARC application and the State must be notified of any changes to the agreements over the life of the project. A pass through agreement does not relieve the grantee of its responsibilities to carry out the terms and conditions of the grant agreement. 9 E. FUNDING REQUIREMENTS Federal Share JARC funds may be used to finance capital, planning, and operating expenses. The Federal share of eligible capital and planning costs may not exceed 80% of the net cost of the activity. The Federal share of the eligible operating costs may not exceed 50% of the net operating costs of the activity. The local share of eligible capital and planning costs shall be no less than 20% of the net cost of the activity, and the local share for eligible operating costs shall be no less than 50% of the net operating costs. Although FTA allows for the incremental cost of equipment required by the Clear Air Amendments Act (CAAA) or Americans with Disabilities Act (ADA), to be funded at the Federal funding rate of 90% of the incremental cost only, INDOT has chosen to fund all capital equipment, including CAAA and ADA required equipment at the 80% rate. Local Share All of the local share must be provided from sources other than Federal DOT funds. Some examples of sources of local match which may be used for any or all of the local share include State or local appropriations; other non DOT Federal funds; dedicated tax revenues; private donations; revenue from human service contracts; toll revenue credits; and net income generated from advertising and concessions. Non-cash share such as donations, volunteered services or in-kind contributions is eligible to be counted toward the local match as long as the value of each is documented and supported, and represents a cost which would otherwise be eligible under the program. 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. Local match may be derived from other Federal funds derived from Federal programs that are eligible to be expended for transportation, other than from the Department of Transportation programs. Examples include Temporary Assistance for Needy Families (TANF), Medicaid, Employment training programs, Rehabilitation Services, and Administration on Aging. To be eligible for local match for FTA funds, the other Federal funds must be used for activities included in the total net project costs of the FTA grant. Expenditure of other Federal funds for transportation outside of the scope of the project cannot be applied as a credit for local match in the FTA grant. F. APPLICATION PROCESS: FINANCIAL ASSISTANCE, ELIGIBLE ACTIVITIES AND PROJECTS, SELECTION CRITERIA, AND FUNDS DISTRIBUTION The JARC application process will be conducted by INDOT for nonurbanized areas, and by the requisite Metropolitan Planning Organizations, for urbanized areas under 200,000 population. INDOT will develop and distribute all application and selection materials to the MPOs. The types of financial assistance and JARC activities and projects which are eligible for funding, along with application information, funds distribution, and project selection criteria are described below. 10 Types of Financial Assistance JARC funds may be used for planning, capital, and/or operating projects that support the development and maintenance of new or expanded transportation services designed to transport low-income individuals to and from jobs and job related activities. Eligible JARC Activities Eligible projects may include, but are not limited to, the planning and implementation of transportation and support activities such as: 1) 2) 3) 4) 5) 6) 7) Late night and weekend service, Guaranteed ride home service, Shuttle service, Expanded fixed-route public transit routes, Demand responsive van service, Ridesharing and carpooling activities, Transit related aspects of bicycling (adding bicycle racks to vehicles to support individuals that bicycle a portion of their commute or providing bicycle storage at transit stations), 8) Promotion and marketing efforts targeted to eligible program service, e.g., use of transit by workers with non-traditional work schedules, use of transit pass programs and benefits under Section 132 of the Internal Revenue Code of 1986, or the development of employer-provided transportation such as shuttles, ridesharing, or carpooling, 9) Promotion of, and supporting expenses for, voucher programs, 10) Applying technological tools and solutions (e.g., GIS, AVL, ITS, etc.) to achieve service efficiency, including customer trip information technology, and vehicle position-monitoring systems; 11) Integrating automated regional public transit and human service transportation information or scheduling and dispatch functions, or 12) Establishing regional mobility managers or transportation brokerage activities, including supporting new mobility management and coordination programs among public transportation providers and other human service agencies providing transportation. While promotion of transit pass programs is eligible for JARC funding, the actual purchase of the passes is not, as this does not meet the overall objective of adding to or increasing the capacity of transportation services to connect low-income individuals to employment and related services. 11 Project Eligibility Project eligibility will be determined as follows: Applicant must be: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. An existing Section 5311 grantee or 5307 designated recipient or grantee in areas with no existing Section 5311 grantees, i. units of local government authorized under state law to provide and carry out a local public transportation project in areas. Units of local government include counties, cities, or towns; a Public Transportation Corporation (PTC) as established under Indiana Code 36-9-4-11, Regional Transportation Authorities (RTA) as established under I.C. 36-9-3-2, Regional Planning Commissions as established under I.C. 36-7-7; or ii. non-profit organizations with formal resolution of the local governing board of an eligible public recipient. The proposed project must have been derived from a locally developed coordinated plan for the respective small urbanized or nonurbanized area, which is on file with INDOT, or is included with the JARC application. The proposed project must support the development and maintenance of transportation services designed to transport low-income individuals to and from jobs and activities related to their employment. The applicant must ensure that adequate funds are available to match JARC funds and to provide for continuing service. The Federal share of eligible capital costs may not exceed 80% of the net capital costs of the project. The Federal share of the eligible operating costs may not exceed 50% of the net operating costs of the activity. All of the local share must be provided from sources other than U.S. Department of Transportation funds. Non-cash share such as donations, volunteer services, and in-kind contributions is eligible to be counted toward the local match. The value of any non-cash share shall be documented and supported, represent a cost which would otherwise be eligible under the program, and be included in the net project costs in the project budget. Applicant must demonstrate a commitment to maintain the project over its life cycle. Applicant must have no known and documented issues with past performance concerning liability, negligence or safety. Applications/Requests for Funding JARC funds are available to eligible applicants on a calendar year basis. Availability of JARC funding will be announced during the first week of September. Potential applicants will be sent a grant application package containing instructions for submitting a completed grant application. Technical assistance is provided to all applicants, as needed, in the preparation of the applications. The deadline for submitting applications will be approximately the last week in August. Applicants having difficulty in completing the application may request assistance from INDOT before the August deadline. Projects are to begin the following January 1. 12 In general, the grant application will include the following items: 1. Project description and budget: The applicant must describe existing transportation services, the service area, and number of passengers served, including, a. The actual or estimated number of jobs that can be accessed as a result of geographic or temporal coverage of JARC projects implemented in the current reporting year; and b. The actual or estimated number of rides (as measured by one-way trips) provided as a result of the JARC projects implemented in the current reporting year. Also required are an existing vehicle inventory, a description of the type(s) of service to be provided, capital needs, proposed operating and capital budgets, procurement system, and system operation and performance. 2. INDOT recommends that applicants begin small when establishing new or expanded transit service. Experience has shown that service, which is heavily utilized, can successfully expand into a larger operation. 3. Coordinated Plans: All projects must have been derived from a locally developed coordinated plan. Applicants will be asked to indicate the name of the agency responsible for developing the plan, the date the plan was adopted, provide a description of the applicant’s participation in the plan, and the priority or recommendation documented in the plan that this project addresses. 3. Public Involvement: Public involvement is essential to providing a service that addresses community needs. Efforts to involve the public should be made. INDOT strongly encourages applicants to establish a local Transportation Advisory Committee (TAC) or board. The local TAC is expected to encourage private sector participation and to afford an opportunity for input in plan developments. For capital grants public hearings are required. 4. Grant justification: The applicant must provide evidence of how the services or equipment requested support the development and maintenance of new or expanded transportation services designed to transport low-income individuals to and from jobs and job related activities. In addition, an explanation of how this project complements existing services and resources must be provided. 5. Governing body authorization: The appropriate legislative body must pass a resolution authorizing the applicant to pursue JARC funding. Once approved, Section 5311 transit systems located within metropolitan planning boundaries must submit their transit projects to the applicable Metropolitan Planning Organization (MPO) for inclusion in the current Transportation Improvement Program (TIP). Guidance is provided in 23 CFR Part 450 and 49 CFR Part 613. In addition, applicants (and their third party contractors) must annually certify compliance with the various federal requirements, described in detail later in this plan, 13 including, but not limited to, civil rights, bus testing and Buy America Provisions, Restrictions on Lobbying, Disadvantaged Business Enterprise (DBE), labor protection laws, regulations for charter and exclusive school service provision, and environmental protection. A complete listing of assurances and certifications that will be required is included in Exhibit 1 to this document. INDOT continually monitors compliance through the application process, including the self-certification process, the auditing process and periodic on-site reviews. Competitive Selection Criteria Applicants must have demonstrated a) their participation in a locally developed coordination plan, and b) that the project was derived from the plan, before the application will be evaluated. Applications are then reviewed with established criteria, including compliance with the locally developed coordination plan, demonstrated financial capacity, adherence with program goals and measures, and administrative, managerial, and operational capability. One hundred points are possible; an application must score a minimum of 50 in order to be considered for funding. Office of Transit staff (one transit planner, two program managers, two project managers) will review, score, and rank the JARC applications with the selection criteria and review forms developed for the JARC Program. Projects will be selected beginning with the highest score and continuing with all applications scoring 50 points or better, until all available JARC funds have been awarded. INDOT reserves the right to partially fund applications. See Exhibit 2 for INDOT’s JARC Program Selection Criteria. Distribution of Funds/Project Awards Funds will be awarded to applications achieving a score of 50 or higher, beginning with the highest score until all funds have been awarded. As part of the review and selection process, careful consideration will be given to the JARC program goals to ensure that low-income individuals are the major focus of the proposed new or expanded services. Equity of distribution of benefits among eligible groups within Indiana, as required by Title VI of the Civil Rights Act will covered through the following measures: (1) a verification that the locally developed plan identified minority and low-income areas; (2) a certification and list of agencies participating (or offered an opportunity to participate) in development the coordinated plan, Each application is to be derived from a Coordination Plan which identifies all agencies and transportation providers invited to participate in the development of the coordinated plan as well as those entities who actually participated, including individuals with disabilities, older adults utilizing transportation services and low income individuals; (3) a reference identifying where in the coordinated plan that the project is supported by selected and prioritized strategies. 14 G. ANNUAL PROGRAM OF PROJECTS DEVELOPMENT AND APPROVAL PROCESS Program of Projects INDOT develops an annual calendar for accepting JARC applications and for developing a Program of Projects that corresponds with the Federal funding cycle. Once the competitive selection process is completed, Office of Transit staff compiles an approved list of applicants, indicating whether they are public bodies, public transit operators, private nonprofit organizations, etc.. Each planning, capital, and operating request is listed as a separate line item and the funding amounts are identified. The POP also contains a brief description of the projects, total project costs and Federal share for each project, and the amount of funds required for planning and program administration. The total Federal funding level for the program of projects cannot exceed the total amount of JARC funds available. POP projects are organized in two categories: A, projects certified by the State to have met all Federal statutory and administrative requirements for project approval applicable to both the project activities and subrecipient that will carry out those activities; and B, projects that the State anticipates approving during the current year, but which have not met all of the Federal statutory or administrative requirements or are proposed to be implemented by a subrecipient that has not yet met all applicable Federal requirements. Once all requirements have been satisfied, the state will request that these projects are moved to Category A. Category A projects will receive FTA’s unconditional approval, and upon grant execution, funds can be drawn down. The POP is then presented to the INDOT Office of Transit Manager for approval, and then submitted to FTA for its approval. Applicant Award Notification and Appeal Process Concurrent with compiling the Program of Projects, all applicants receive written notification of the selection process. Applicants not receiving approval of their application may appeal the selection decision to the INDOT Office of Transit Manager. The process for filing an appeal is as follows: 1. Applicant must send, by certified mail, an appeal within 15 calendar days after receiving notification of INDOT’s decision. Mail To: Indiana Department of Transportation Manager, Office of Transit 100 N. Senate Avenue Indianapolis, IN 46204 2. INDOT will conduct a preliminary review within five working days, and if necessary, request by certified mail additional information from the applicant; 3. INDOT will allow five working days for receipt of additional materials; 15 4. INDOT’s Office of Transit manager will make a final decision within 15 working days from the receipt of the appeal request, or within 15 working days from the receipt of additional materials; 5. INDOT will notify the applicant in writing within five working days of its final decision; 6. Applicant may appeal INDOT’s final decision in accordance with I.C. 4-21.5-3-1, et seq. Contract Execution Upon receiving FTA approval of the statewide application, INDOT will execute a grant contract with each nonurbanized grantee. Contracts will describe the responsibilities of each party and must be signed by the appropriate authorized official and attested. INDOT, State Budget Agency, Indiana Department of Administration and the Attorney General’s Office then sign the contract. The contract execution process takes approximately three months. INDOT returns a copy of the fully executed contract to the grantee with a notice to proceed. Contracts for JARC projects in urbanized areas will be executed between FTA and the designated recipient. H. ADMINISTRATION, PLANNING, AND TECHNICAL ASSISTANCE The INDOT Office of Transit will administer the JARC program, including developing and distributing applications, conducting the selection projects, and developing the Annual Program of Projects. INDOT will not use the 10% allowable administration funds for this administration. Administration The JARC Program is administered as part of INDOT’s overall FTA program administration, which includes the Sections 5310, 5311, and 5317 Programs. These activities include providing technical assistance during the application process (previously described), and continuing through contract execution, service implementation, vehicle purchases, if applicable, monitoring, financial management, audits, and project close-outs. Planning Planning assistance is available upon request and may include transit feasibility studies, ridership surveys, ridership estimates, routing and scheduling, revenue and cost projections, and an identification of equipment needs. Further, INDOT has provided assistance in all nonurbanized counties for the development of a coordinated plan. Technical Assistance The INDOT Office of Transit provides management and technical assistance to small urban and rural public transit providers to help develop knowledgeable transit 16 management staff and improve the effectiveness of transit operations. In addition, a variety of technical assistance is provided in the areas of funding, vehicle and equipment procurement, and vehicle maintenance, and training. The INDOT Office of Transit sponsors seminars, workshops and training sessions on rural transit management and operations and other related topics through the Rural Transit Assistance Program (RTAP), a comprehensive and flexible program of training, technical assistance, research, and support services for rural public and specialized transit agencies. RTAP has both a national component and a state component. The National RTAP program develops products and services which are used in INDOT’s State RTAP Program. In addition, INDOT receives an annual RTAP allocation which it uses to develop products and services for training and technical assistance specific to Indiana’s transit operators. Although RTAP was developed as part of the FTA Section 5311 program specifically for rural transit systems, its goals, for example to promote the safe and effective delivery of public transit in rural areas and make more efficient use of public and private resources, and to support the coordination of public, specialized, and human service transportation services are applicable to all areas, nonurbanized and urbanized, public transit operations and specialized transportation services. As such, INDOT envisions including JARC projects in its state RTAP program. Indiana RTAP provides and supports a host of training opportunities, including Passenger Assistance Techniques training, and Drug and Alcohol Compliance and Reasonable Suspicion training, and offers a scholarship program for agencies to help offset the costs to send staff to other workshops and training programs. In addition, INDOT can arrange to provide assistance in other functional areas such as marketing and promotion, accounting and reporting, coordination, and personnel and labor relations. RTAP funding is not used for administrative, operating or capital assistance. I. TRANSFER OF FUNDS JARC funds apportioned to Indiana for use in urbanized areas with populations below 200,000 will be transferred to Section 5307 to be obligated for JARC purposes within grants to the respective urbanized area designated recipients. Any other transfers will be initiated on a case by case basis after conferring with FTA and the local subrecipient. In any case, the purpose of the original grant funds will be maintained through any funds transfer. Flexible Funds INDOT may transfer flexible funds from the Federal Aid Highway Program to the Section 5316 program for use by INDOT. Flexible funds transferred to the Section 5316 program will be treated under the program requirements applicable to Section 5316. For transfers of flexible funds to Section 5316, INDOT will notify both the Federal Highway Administration (FHWA) and FTA and request FHWA to transfer the funds. 17 J. PRIVATE SECTOR PARTICIPATION By Federal statute, the public is required to be involved in the transportation planning process. Specifically, private providers must be consulted in developing transportation plans and programs in both urbanized and rural areas. To this end, JARC applicants are strongly encouraged to establish a local Transportation Advisory Committee (TAC) or board with private provider participation that would afford an opportunity to these providers for input into plan and project development. Applicants must encourage every possible transportation provider, including private-for-profit providers, to participate in the project. For capital projects, applicants are required to conduct a public hearing. Additionally, the grantee is required to resolve any complaints from transportation providers resulting from a local decision or interpretation concerning the JARC program. The grantee is required to keep a record of correspondence related to the issue, information used in making its decision and the process used in resolving the issue. Also, the grantee must inform the transportation provider of the local appeal process and the transportation provider’s rights under the process. If the complaint is not satisfactorily resolved, the originating party may appeal the grantee’s decision to INDOT. All complaints presented to INDOT will be heard by the Office of Transit’s JARC Program Manager, the Office of Transit Manager, and the Local Programs Division Director with concurrence by the INDOT Chief of Staff. The originating party must file with INDOT a written request of complaint within 15 calendar days following the grantee’s final decision. The complaint request must be made by certified mail and contain a brief description of the issues and copies of all relevant information. INDOT will conduct preliminary review within five working days and, if necessary, request by certified mail additional information from the originating party or the grantee. INDOT will allow five working days for receipt of additional materials. INDOT will make a final decision within 15 calendar days from the receipt of the complaint request or, if additional material was requested, within 15 calendar days from the receipt of the additional material. INDOT will notify the originating party and the grantee of its decision within five calendar days. INDOT’s decision may be appealed in accordance with Indiana Code 4-21.5-3-1, et seq. All applicants (non profit and public bodies) must notify all public and private transit and paratransit providers in their service area. Each applicant must assure that Private for-profit transit and para-transit providers have been afforded a fair and timely opportunity by the applicant to participate to the maximum extent feasible in the planning and provision of the proposed transit services. 18 K. CIVIL RIGHTS Under Title VI, Nondiscrimination, no person will be excluded from participation in, or denied the benefits of, a project funded in whole or in part by FTA [including assistance required for limited English proficient (LEP) persons] because of race, color, creed, national origin, sex, age, or disability. Equal Employment Opportunity (EEO) prohibits any recipient of FTA funds from discriminating against any employee or applicant for employment based on race, color, religion, sex, or national origin. Environmental Justice with regard to Minority Populations and LowIncome Populations requires that environmental justice principles be incorporated into existing programs, policies, and activities. The Disadvantaged Business Enterprise (DBE) Program requires that all recipients of FTA funds be responsible for meeting applicable regulations regarding participation by DBEs in U.S. DOT programs set forth at 49 CFR Part 26, or any revision or supplement thereto. Documentation includes but is not limited to: quarterly Disadvantaged Business Enterprise utilization reports, Good Faith Effort documentation, the impact of grantee service provision on minority/disabled population and the employment make up of transit system personnel. L. SECTION 504 AND ADA REPORTING Section 504 requires recipients of FTA funds to make special efforts to provide transportation that is accessible to individuals with disabilities. Americans With Disabilities Act (ADA) requires that equivalent services are provided to meet the needs of individual with disabilities. INDOT monitors grantee compliance with Section 504 and ADA requirements by apprising them of their responsibilities, requiring the appropriate certifications as part of the application process, reviewing their service hours and other operating characteristics to ensure that accessible and equivalent service is being provided, and collecting other documentation as appropriate as part of the compliance review conducted every three years. M. PROGRAM MEASURES FTA has established two measures for the JARC Program: (1) Actual or estimated number of jobs that can be accessed as a result of geographic or temporal coverage of JARC projects implemented in the current reporting year; and (2) Actual or estimated number of rides (as measured by one-way trips) provided as a result of the JARC projects implemented in the current reporting year. These indicators are targeted to capture overarching program information as part of the Annual Report to be submitted to FTA. INDOT will collect this information for all subrecipients of JARC funding in projects, including those that were transferred to Section 5307 for administration. N. DESIGNATED RECIPIENT PROGRAM MANAGEMENT The following sections describe INDOT’s JARC program management as it relates to on-going accountability and oversight of Indiana’s JARC projects. 19 Accounting Systems, Financial Management, and Reporting The INDOT Office of Transit has an established accounting and reporting system that meets or exceeds FTA requirements for financial management. In addition, all subrecipients must assure the state that each has fiscal control and accounting procedures that will permit preparation of the required reports for the JARC program as well as a level of expenditures adequate to establish that such funds are used consistent with the rules and requirements of the JARC program. These systems will also allow for the accurate, current, and complete disclosure of all financially assisted activities, the establishment and maintenance of accounting records which are supported by source documents such as cancelled checks, paid bills, payrolls, etc. and which adequately identify the source and application of funds provided, the effective control and accountability of cash, real and personal property, and other assets; the comparison of actual expenditures with budgeted amounts, allowing for the development of performance or productivity data and unit cost information, where appropriate; the application of OMB cost principles, agency program regulations, and the terms of subrecipient’s grant agreement to determine the reasonableness, allowability, and allocability of costs; and a procedure for minimizing the time elapsing between the receipt of Federal funds and local disbursement. All of these activities will also be documented and reviewed as part of a project audit and close-out. The INDOT Office of Transit and its grantees will also dispense and account for program funds in accordance with Indiana Code 5-11-1-2. INDOT monitors grantee expenditures, checking for eligibility and conducts periodic site visits of its grantees during which time random invoices are traced throughout the local accounting system. Currently, all grantees receiving operating assistance are required to report financial and operating data on a quarterly and annual basis. Milestone reports are also required for all capital and planning grants. Failure to provide these reports will result in INDOT withholding future reimbursement requests under the grant agreement. Also, INDOT compiles and publishes an annual report for all transit systems in the state based on information from this reporting system. Grantees receiving capital assistance are required to keep appropriate property control records on all equipment and real property. Grantees are responsible for submitting these records to INDOT to meet the capital asset reporting requirement. Federal Office of Management and Budget and Federal Transit Administration guidelines are used in meeting this reporting requirement. Procurement INDOT Section 5316 procurement practices will comply with five specific Federal requirements contained in the current FTA Circular 4220.1. These include the following: • For rolling stock, a five year limitation on contract period of performance; • A requirement for full and open competition; 20 • A prohibition against geographic preferences; • The use of Brooks Act procedures for procurement of architectural and engineering services if INDOT has not adopted a statute governing procurement of such services; and, • Inclusion in contracts of all Federal clauses required by Federal statutes and Executive Orders and their implementing regulations. INDOT assists grantees with the procurement of grant related equipment and has produced a guide for developing small vehicle specifications and general guide on procuring equipment and services which will be provided to each JARC grantee. In addition, some equipment such as computers and passenger vehicles may be purchased from state quantity purchase awards. 1. Standards a. Competition: All procurement will be conducted in a manner providing for full and open competition. b. Code of Conduct: Grantees must have a written code of conduct governing the performance of their employees engaged in the award and administration of contracts. Employees of the grantee shall not participate in selection, award, or administration of contract supported by federal and state funds if a conflict of interest, real or apparent, is involved. c. Purchase Review: Grantees must develop a process for reviewing purchases to avoid unnecessary and duplicate items. Consideration must be given to the most economical approach. Where appropriate, an analysis of lease versus purchase shall be made. All grantees are encouraged to use intergovernmental agreements, where possible. d. Price or Cost Analysis: Grantees shall perform a price or cost analysis with every procurement, including contract modifications. As a starting point the grantee must make an independent estimate before receiving bids or proposals. Usually a price analysis will be used to determine the reasonableness of the proposed contract price. This may also be established based on the catalog or market price of products sold in substantial quantities to the public, or based on price set by law. A cost analysis is required when the bidder is required to submit the cost elements of his estimated price (e.g., under professional service contracts such as, consulting or architectural and engineering). Also, a cost analysis is necessary when adequate price competition is lacking. e. Contract Awards: Grantees shall only make contract awards to responsible and responsive bidders. “Responsible” means a bidder who is 21 capable of performing the contract requirements fully and who has the integrity and reliability that will assure good faith performance. “Responsive” means a bidder who has submitted a bid or quote conforming in material respects to the bid terms, conditions, and specifications. Federal regulations prohibit the use of contractors who have been debarred or suspended. INDOT will monitor adherence to this regulation by way of its annual compliance reviews and reviewing procurement documents for the presence of the Debarment and Suspension Certification (49 CFR Part 29). 2. f. Contracts: All contracts must include all appropriate federal and state clauses. Most of these are identified in the Section 5311 grant assistance contracts between INDOT and the grantees. See Exhibit 1 for a listing of applicable contract clauses. g. Contract Administration: Grantees must maintain a contract administration system, which ensures that contractors perform in accordance with the terms, conditions, and specifications of all purchases. h. Contract Records: Grantees shall maintain records to sufficiently detail the procurement history. At a minimum this should include the rationale for the method of procurement, selection of contract type, contractor selection or rejection, and the basis for the contract price. i. Disputes and Protests: Grantees are responsible for resolving all contractual and administrative issues arising out of procurement. Violations of law should be referred to the proper local authority having jurisdiction. If there is no local authority, the matter should be referred to INDOT. Grantees must have protest procedures to handle and resolve disputes relating to their procurement. A protester must exhaust all administrative remedies with the grantee before pursuing protest with INDOT. Purchasing and Leasing Most purchases and leases (procurement) made under the JARC program will be made through Sealed Bid (formal advertising) method. All procurement must be conducted in accordance with I.C. 5-22-7 Competitive Bidding, which has in most respects replaced I.C. 36-1-9 Purchasing and Leasing. Copies of all Indiana Codes related to procurement are available in Vol. II of the Section 5311 Program Manual. a. Annual Purchases & Leases Over $25,000: Purchasing by Sealed Bids is required by state law (I.C. 5-22-7). The formal advertisement (notice) must be published in accordance with Indiana Code 5-3-1 Publication of Notices. Bids are publicly solicited and a firm-fixed-price contract (lump sum or unit price) is awarded to the lowest responsible and responsive bidder. In addition to the published notice, INDOT strongly recommends direct solicitation to known vendors. 22 The grantee is responsible for preparing the bid contract and specification, advertising and soliciting bids, receiving and reviewing bids, and awarding the contract to the lowest responsible and responsive bidder. An exception to the sealed bid requirement is for the development of specifications. A grantee may request proposals (using competitive procurement methods) for the development of specifications which will lead to a sealed bid procurement. The need to request proposals must be documented by the grantee and approved by the grantee’s executive officer and INDOT. The resulting specification shall be subsequently issued for bid. b. c. Annual Purchases and Leases Under $25,000: Purchases and leases under $25,000 are considered small purchases, therefore relatively simple and informal procurement methods may be used. Grantees are allowed two options under this situation: (1) If the grantee has small purchase procedures which meet the intent of I.C. 5-22-8, or which are stricter, then the grantee’s procedures may be followed. If the grantee does not have small purchase procedures, they may invite quotes from at least three vendors known to deal in the type of purchase or lease being made. A copy of the specification should be mailed to the vendor not less than seven days before the time for receiving written quotes. (2) The grantee may purchase or lease in the open market without inviting or receiving quotes. However, INDOT does not recommend the use of option 2 except under emergency or severe time constraint situations. Request for Proposals: Request for Proposals (RFP) is the method generally used when conditions are not appropriate for the use of sealed bids and it is allowed by State law. One situation mentioned earlier is for the development of specifications. Also, a grantee may use the RFP method for the procurement of architectural, engineering, and land surveying services. Services of architects, engineers, and land surveyors must be procured in accordance with Indiana Code 5-16-11.1. If this method is used, the following requirements apply: (1) The request must identify: (a) All evaluation factors and their relative importance, including cost as a factor. Please note that cost may not be used as an evaluation factor for architectural and engineering services, in accordance with the federal Brooks’ Amendment. (b) Any bonding requirements or other evidence of financial responsibility. 23 (2) Solicitation of an adequate number of qualified vendors. (3) Grantee must have a method for conducting technical evaluation for the proposals. (4) Contract award will be made to the responsible vendor whose proposal is most advantageous to the program. d. Sole Source Procurement: Grantees may purchase or lease parts for machinery or equipment that can only be purchased from the manufacturer of the machinery or equipment without advertising or bids. e. Pre-award and Post-delivery Audits of Vehicle Purchases: Grantee must certify to INDOT that it will conduct a pre-award and post-delivery audit of vehicles purchased with FTA funds. The three sections of both audits are: Buy American, Bid Specifications, and Federal Motor Vehicle Safety Standards. INDOT has produced a guide to meeting these regulations. It is called A Guide To The FTA’s Pre-award and Post-delivery Audits Of Rolling Stock Purchases and copies may be requested from INDOT. Documentation of all pre-award and post delivery audits must be submitted to INDOT. (1) Pre-award Audits: The grantee must ensure that audits are complete before the grantee enters into a formal purchase contract for vehicles. (a) Buy America: For vehicle purchases in excess of $100,000, the grantee must review documentation from the bidder as to the cost of the vehicle’s major components and primary sub-components, their country of origin, the location of final assembly, and any activities that will take place at the location. Cost information is used to determine whether a vehicle meets the Buy America regulation; 60% of the vehicles’ components must be domestically produced. All information resulting from this audit must be kept on file by the grantee. If the vehicle does not have to meet Buy America regulations, then the grantee must have the federal waiver letter on file. This audit shall not be done by the bidder or manufacturer. The grantee must do the necessary review and certification or hire an independent third party contractor to conduct the review and certification. (b) Bid Specification: The grantee must assure that the vehicle(s) proposed is the same vehicle(s) as described in the bid specifications. Also, they must certify that the 24 bidder is a “responsive manufacturer with the capability to produce” the specified vehicle. If a grantee is purchasing eleven or more vehicles, they must also provide a resident inspector on-site where the vehicles are being manufactured. This inspector must certify that they were on-site throughout the manufacturing process, monitored the vehicles’ manufacturing, and must prepare a report about the manufacturing process. (c) Federal Motor Vehicle Safety Standards: If the vehicles being purchased are subject to FMVSS, the Grantee must ask for a certification from the bidder stating this fact. This bidder’s self-certification must be kept on file. If the vehicles are not subject to FMVSS, the bidder must provide a certification stating this. This certification must also be kept on file by the grantee. Therefore, the burden of proof is on the bidder to comply with this regulation. (2) Post-delivery Audits: The grantee must ensure that audits are complete before vehicle titles are transferred to the grantee. (a) Buy America: This is a certification that Buy America regulations (after change orders or other revisions) are still being met. If the vehicle does not have to meet Buy America regulations, then the grantee must have the waiver letter on file. (b) Bid Specification: This audit is to assure that the delivered vehicle(s) conform to the contract specifications. It must make sure that any change orders have been considered in the review. Road testing is required as a part of the audit review. For procurement of eleven vehicles or more, the grantee must certify that the resident inspector was on-site throughout the manufacturing period and monitored the manufacturing process. A copy of the resident inspector’s report must be kept on file. (c) Federal Motor Vehicle Safety Standards: The grantee must maintain on file the FMVSS certification by the bidder. If the vehicle(s) is not subject to FMVSS, then the grantee must maintain on file the bidder’s certification that FMVSS do not apply. (d) Bus Testing: Any new bus model must be tested at the FTA test facility in Altoona, Pennsylvania in accordance 25 with federal regulation 49 CFR PART 665. This requirement covers all medium and heavy duty body-onchassis and purpose built buses of 25 feet or greater. The grantee must require that the bidder/manufacturer provide the testing report before final acceptance of the vehicle(s). It is the grantee’s responsibility in dealing with the bidder/manufacturer to determine if the vehicle is subject to these requirements. FTA and the manufacturer pay the cost of testing. 3. INDOT Review All bid contracts, invitation for bids, and request for proposals for purchases or leases of $25,000 or greater must be submitted to the INDOT Office of Transit for review. In addition, grantees must make all technical specifications available for review, when it is determined that such a review is needed to ensure that the purchase or lease specified is consistent with the grant award. Also, grantees must make available all procurement documentation upon request by INDOT. Satisfactory Continuing Control JARC grantees must maintain satisfactory continuing control over facilities and equipment and ensure that they are used in transit service. A grantee must demonstrate control and use as required in FTA Circular 5010.1C. INDOT will monitor these stipulations through the annual compliance reviews. Any change in the use of vehicles or equipment must be approved by INDOT. 1. Management Requirements: The grantee shall provide management records of all vehicles and equipment based on the following, as a minimum effort: a. Vehicle and equipment control records must be maintained. These records shall include: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) b. description of vehicle or equipment; serial or identification number; purchase date and price; source of property; title holder (owner); federal participation; physical location; current use and condition; disposal data; and disposal price; A physical inventory of vehicles and equipment must be taken and the results reconciled with the control records at least every two years. A grantee must maintain a listing of a vehicle inventory, peak vehicle requirements and active vehicles. 26 c. A control system must be developed to safeguard against loss, damage, or theft of vehicles and equipment. Each grantee is required to maintain adequate insurance coverage as required by federal, state and local law. d. Adequate maintenance procedures and programs must be developed to keep vehicles and equipment in good condition. Preventive maintenance programs are required for all JARC funded vehicles. Property Management Subrecipients must provide management records of all vehicles and equipment, including a physical inventory which is reconciled a minimum of every two years. Said inventory must contain a description of the vehicle or equipment, serial or identification number, purchase date and price, source of property, title holder (owner), federal participation, physical location, current use and condition, and disposal data. In addition, subrecipients must indicate their peak vehicle requirements and denote active vehicles on the listing. A control system must be developed to safeguard against loss, damage, or theft of vehicles and equipment. Each grantee is required to maintain adequate insurance coverage as required by federal, state and local law. Vehicles and Equipment Use INDOT encourages the maximum use of all FTA-funded vehicles. Vehicles purchased with JARC funds will primarily be used for JARC projects, which have been derived from locally developed coordinated plans. However, so long as JARC needs continue to be met, vehicles can also be used for other Federal Programs. If the original subrecipient no longer needs the vehicle for the purposes for which it was acquired, the vehicle can be kept in use for the JARC program by transferring it to another subrecipient. The transfer will be shown in an INDOT active program of projects. Once th