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VanPool Policy

Number 2015-06
02-25-15
 

REGION 8 BULLETIN NO: 2015-06 (PDF)

Subject: Vanpool Policy

Date: February 25, 2015

Dear Grantees:

Section 5323(i)(1) of Title 49 of the United States Code (USC) allows a grantee to credit towards its local share the costs a private provider incurs when acquiring rolling stock to be used in providing public transportation in the grantee’s service area. In order to take advantage of this credit, the private provider must exclude any amounts received from the Federal, State or local government when acquiring the rolling stock. In addition, subsection (i)(2)(B) allows a vanpool provider to use revenues in excess of its operating costs to acquire rolling stock if the private provider and the grantee enter into an agreement that the private provider will use the rolling stock in the grantee’s service area.

FTA grantees have been requesting clarification on guidance in the recently issued FTA Circular 9030.1E and the language of 59 USC § 5323(i)(2).

FTA confirms that a grantee may credit toward its local share the costs a private provider incurs when acquiring rolling stock to be used in providing public transportation in the grantee’s service area.

The calculation of the credit is:
Cost of the van(s) minus any Federal, state or local government assistance received = credit

The grantee should provide the following information when utilizing the vanpool credit found in § 5323(i)(2):

Calculation method grantee should use when seeking credit towards its local share
(van purchased without Federal funds)


Year of Purchase


Vehicle Identification Number

(A)
Cost of Van

(B)
Amount of state or local financial assistance

(C)
Amount Available as Credit
(A-B)

(D)
Amount used as credit for  previous grants
(E)
Amount to be used as credit for this grant
(C-D)

Certified Statement to verify van is being used in grantee's service area

               

 Calculation method grantee should use when seeking credit towards its local share
(van purchased with Federal funds)


Year of Purchase

 
Vehicle Identification Number

(A)
Cost of Van
 (B)
Amount of federal financial assistance
(C)
Required local match
(D)
Amount of state or local financial assistance beyond the match requirement
 (E)
Amount to be used as credit for this grant
(A-B-C-D)
Certified statement to verify van is being used in grantee's service area
             

Grantees intending to utilize this provision in a grant must inform FTA in advance of submitting the grant and must attach the required agreement to the application in FTA’s electronic award management system. The agreement must specify the amount intended to be counted as local match and must identify any amounts under that agreement that have already been applied as local match on any other previous grants.

The information above should be attached in TEAM as evidence the grantee has met the requirements. This information should also be kept in the grantee’s file and be available for review upon request by FTA staff.

Additional Guidance:

  • The local match resulting from private providers’• rolling stock investments qualifies as match for any Chapter 53 grant.
  • If the amounts expended for acquisition of a van are undertaken through a third party leased van, the party should follow the Capital Cost of Contracting Guidance found on pages IV -I 1-1 3 of FTA Circular 9030.1 E to determine the amount that can be treated as local match.
  • If the van is a third party leased van, the commencement date for calculating the amounts attributable to local match is the date the third party leased van is first registered for program participation.
  • If the van was acquired before the participant joined the program, the value of the van should be calculated for when it joined the program using straight-line depreciation and subtracting any federal, state or local participation per Circular 5010.

Grantees are encouraged to review this bulletin in conjunction with Circular 9030.1E Ch. III(8)(g).

Sincerely,

Linda M. Gehrke
Regional Administrator

Updated: Wednesday, March 16, 2016
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