Starting and Growing Rural Vanpool Programs: From Financing to Vehicle Procurement

Transcription

1 Starting and Growing Rural Vanpool Programs: From Financing to Vehicle Procurement Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

2 Presenter: Jon Martz Vanpool Program Development and Fleet Financing Capital Cost of Contracting, Capital Leasing, CommuterBucks, NTD Reporting, Pricing Federal Transit Policy Consultant Director of Research, FTA-FHWA Joint Center for Urban Mobility Research at Rice University Touring Instructor, FTA Transit Cost Analysis Course Vanpool Marketing, Operations and Management Houston, Dallas, Fort Worth and Austin Transportation Planning & Rideshare Program Management Metropolitan planning organization (MPO), Dayton B.S. in Civil Engineering Major - Transportation and Air Pollution Control Association for Commuter Transportation (ACT) Immediate Past President Regional Director ( ACT Public Policy Council, Current Chair ACT Vanpool Council, Former Chair ACT Leadership Academy, Director Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

3 What is a Commuter Vanpool? Characteristics A big carpool with rules and a schedule! Volunteer driven Near home & work Long commutes Shared expense Monthly subscription Group determines schedule and route 10 cars 1 vanpool Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

4 VPSI Customer Service Centers Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

5 Vanpool Fleet Growth (January 02 to January 10) 5,500 5,000 4,500 4,000 3,500 3,000 2,500 2,000 '02 '03 '04 '05 '06 '07 '08 '09 '10 Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

6 Ridership Surge in % Percentage Increase in Ridership 40% 30% 20% 10% 0% 35% 5.2% 6.3% 7.2% 8.5% VPSI Heavy Rail Commuter Rail Motor Bus Light Rail Data Source: VPSI and American Public Transportation Association (APTA) Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

7 The Safest Mode of Public Transportation Fatalities per 100 Million Vehicle-Miles Commuter Rail Light Rail Automated Guideway Heavy Rail Motor Bus Demand Responsive Personal Auto * Vanpool Transit Safety and Security Statistics and Analysis Annual Report by Mode for Reported Accidents: National Transit Database; * NHTSA Traffic Safety Facts 2006 Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

8 The Most Efficient Mode of Public Transportation at Reducing CO 2 Emissions per Public Subsidy Dollar Pounds Reduced per Subsidy Dollar (Capital and Operating) Vanpool Heavy Rail Commuter Rail Motor Bus Light Rail CO2 Emission Reductions 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. Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

9 Rural Market Opportunities Environmentally-Sensitive locations Nuclear Power Facilities Meat Processing Facilities Prisons and Correctional Facilities Mining facilities Seasonal Needs Other Agriculture Fire Fighters Department of Defense Army Corps of Engineers Colleges and Universities State Capitals and Administrative Offices Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

10 In the foreground This is what it looks like to the consumer Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

11 let s see what is in the background Make Buy Public/Private Partnership Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

12 Federal Funding Sources (Rural) FTA Section % Federal / 20% Local Category C FTA Job Access & Reverse Commute 80% Federal / 20% Local Income criteria FHWA CMAQ Vanpool capital 100% Federal... New, growth or expansion only Vanpool marketing 100% Federal May transfer $$$ to FTA FHWA 100% Flexible Funding Transfer between FTA Sections Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

13 FTA Section 5311 & Vanpooling Eligible Project Costs at 80% Federal Capital Vans, Financing, Maintenance, Delivery Charges Non-Operating (Capital) Project Management and Marketing Insurance Premiums & Payments to Self-Insurance Reserve Facilities and Equipment Rental Standard Overhead Rates Drug and Alcohol Testing (Not Required for Vanpools) Promoting and coordinating ridesharing eligible, if part of coordinated public transportation program. Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

14 FTA Section 5311 (continued) Service Considerations Areas not currently in UZA are eligible for Sec funding, even if they are included in metro area planning boundary (which includes the air quality non-attainment boundary) Projects may include transportation TO and FROM urbanized areas Service area may include destinations ACROSS a state line Funding and Procurement Considerations Governors (State DOTs) have authority to transfer unspent 5307 to 5311 (and vice versa ) Common Rule permits some states to use own procurement rules Federal procurement threshold is only $100,000 Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

15 CMAQ Eligible Funding (FHWA) Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

16 Public-Private Partnership Provision of Vehicles Contract, Lease, Purchase or At-Arm s Length Terms Life of utilization, 30-day pay-as-you-go Risk 0% to 100% Features not readily available via OEM dealer network Services (Experience & Economy of Scale) Maintenance/Repair Management Insurance and Risk Management Marketing Management Fuel Management NTD Reporting Voucher Services Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

17 Vehicles (FTA Buy America: OK ) Full-size Vans/Wagons Minivans Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

18 FTA Capital Cost of Contracting Service Contract: Contractor provides Maintenance and transit/vanpool service, grantee provides vehicle Service Contract: Contractor provides transit/vanpool service only, grantee provides vehicles and maintenance Vehicle Maintenance Contract: Contractor provides maintenance, grantee provides vehicles and transit/vanpool service Vehicle Lease Contract: Contractor provides vehicles, grantee provides maintenance and transit/vanpool service Maintenance/Lease Contract: Contractor provides vehicles and maintenance, grantee provides transit/vanpool service Turnkey Contract: Contractor provides vehicles, maintenance and transit/vanpool service Vehicle/Service Contract: Contractor provides vehicles and transit/vanpool service, grantee provides maintenance 40% 0% 100% 100% 100% 50% 10% 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. Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

19 Turnkey Vanpool Service Vehicles Maintenance Service delivery Fare collection Subsidy mechanism Payment terms Net 30 days FTA Third Party Contracting Guidelines FTA National Transit Database Reporting Compliance and Audit Provisions Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

20 FTA Capital Cost of Contracting $1,500 shared by 12 riders = $125/mo $900 shared by 12 riders = $75/mo $750 $750 $1,500 $150 $750 $600 Private, No Subsidy FTA Cap Cost of Contracting Current Scenario. Eligible Capital Expense (50%) Operating Expense Federal Share of 80% Local Share of 20% Passenger Revenue Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

21 Impact of Capital Assistance on Fleet Growth , Pre-Subsidy Growth Rate: 9% per year (Compounded) Subsidized Growth Rate: 24% per year (Compounded) Fleet Size * * Atlanta Houston Miami Michigan Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

22 FTA Capital Cost of Contracting S & H.R The Private Investment in Commuter Vanpooling Act $1,500 shared by 12 riders = $125/mo $900 shared by 12 riders = $75/mo $750 $750 $900 $1,500 $150 $750 $600 $600 Private, No Subsidy FTA Cap Cost of Contracting Current Scenario Proposed Scenario Eligible Capital Expense (50%) Operating Expense Federal Share of 80% Local Share of 20% Passenger Revenue Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

23 PPP: Elements for Success 1) Application or Proposal Process 2) Agreement with Scope of Services 3) Invoice and Status Report Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

24 Subrecipient of FTA Funding Section Capital Investment Grants The Secretary may make grants under this Section to assist State and local governmental authorities in financing 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 Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

25 PPP: Elements for Success (continued) 1) Application for Federal Assistance 2) Agreement with Scope of Services 3) Invoice and Status Report Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

26 Various Driver Agreements 1) Volunteer Driver Agreement 1) Alternate Volunteer Driver Agreement 3) Three-Party Volunteer Driver Agreement Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

27 Risk Management 1) Vanpool Driver Approval Criteria 2) Volunteer Driver Application Process 3) Consumer Report Authorization: Driving Record 4) Consumer Report Authorization: Driving and Credit Records Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

28 National Transit Database Reporting 27 VPSI Locations: DO (Blue) & PT (Yellow) Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

29 Florida DOT Rural Vanpool FDOT identified Areas of Critical Economic Concern (includes 28 of 32 rural counties) Low per capita income Low per capita taxable values High unemployment High underemployment Low weekly earned wages Low housing values High % of population receiving public assistance High poverty levels Lack of year-round employment opportunities Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

30 Florida DOT Rural Vanpool (continued) $2,000 $1,500 Unsubsidized Monthly Rate $1, = $145/mo Taxes Profit Other Fuel Operating Expenses Monthly Rate ( 5311 Applied ) $ = $58 per month Fare Revenue $1,000 Insurance Mgt, Mktg & Ovrhd $500 Maintenance Spares Interest Allowable Federal Capital Federal 5311 (Use 60% for East of Administration. Less than Max. Allowable) Depreciation $0 2,000 Miles/month FTA Capital Cost of Contracting Policy (Actual Costs) Proposal Capital Expenses Non-Operating Expenses Operating Expenses Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

31 Florida DOT Rural Vanpool (continued) Proposed Funding Federal FTA 5311 Capital Private Capital Investment Fare Revenue TOTAL $ 391,680 $ 1,124,800 $ 264,550 $ 1,781,230 CY % 63% 15% Up to thirty-eight (38) vanpools placed in service during first twenty-one months of contract Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

32 Florida DOT Rural Vanpool (continued) Thirty-eight vanpools over 21 months Use of FTA 5311 AARA via FTA Capital Cost of Contracting Impact on est. pricing ~$60/month vs. ~$150/month Florida DOT Has NO ownership interest or financial obligation for vehicles Is fully-insured and indemnified Is sent a monthly invoice and pays only for service-consumed Is relieved of 1. Day-to-day vanpool program administration 2. Legal and financial responsibilities of vehicle operations, and 3. Coordinating marketing efforts throughout the service area Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,

33 Questions? Jon Martz VPSI Inc. Vice President, Government Relations Tel: (248) Starting and Growing Rural Vanpool Programs From Financing to Vehicle Procurement March 23,