Chapter Trans 6

Trans 6.03(1)(b) (b) Eligible operating costs are those transportation and overhead expenses associated with the provision of public transportation service including labor, fringe benefits, materials and supplies, utilities, insurance, purchased transportation service, license fees and certain lease expenses. They also may include other expenses associated with approved job access and reverse commute type projects, consistent with 49 USC 5311. The following are not eligible project costs:

Trans 6.03(1)(b)1. 1. Depreciation and amortization for publicly owned facilities and equipment;

Trans 6.03(1)(b)2. 2. Expenses that are offset or that will be offset by means that include, but are not limited to, cash discounts or refunds, tax rebates including fuel tax rebates, insurance proceeds or resale proceeds;

Trans 6.03(1)(b)3. 3. Interest expense, except that privately owned systems may include interest on short-term debt obligation;

Trans 6.03(1)(b)4. 4. Return on investment, except that a private provider that negotiates all or part of a transportation service contract with an eligible applicant is eligible for a return on its investment. Its return on investment shall be a fixed amount and may not exceed an amount calculated by applying the interest rate the secretary of the treasury specifies under 50 USC App. 1215 (b) (2) as applicable to the period ending on December 31 of the year prior to the project year to the net book value of the private provider’s equipment and facilities used in providing the contracted transportation service;

Trans 6.03(1)(b)5. 5. Lease-purchase payments;

Trans 6.03(1)(b)6. 6. Lease payments to a related party which are made under less than an arm’s length agreement. Only actual eligible project costs of owning the property, including depreciation and taxes, shall be allowed;

Trans 6.03(1)(b)7. 7. Lease payments by small urban area systems for revenue passenger vehicles unless, and only for the term, pre-approved by the department;

Trans 6.03(1)(b)8. 8. Entertainment costs;

Trans 6.03(1)(b)9. 9. Fines and penalties;

Trans 6.03(1)(b)10. 10. Bad debts;

Trans 6.03(1)(b)11. 11. Charitable deductions;

Trans 6.03(1)(b)12. 12. User-side subsidies except those specifically funded under an intercity bus project;

Trans 6.03(1)(b)13. 13. Payments to members of advisory committees, transit commissions or transit boards;

Trans 6.03(1)(b)14. 14. Federal, state and local income taxes;

Trans 6.03(1)(b)15. 15. Expenses related to contractual agreements for special planning studies;

Trans 6.03(1)(b)17. 17. Expenses for contingencies or capital acquisitions, including contributions to a capital reserve account or fund. The cost of materials and supplies utilized in facility or vehicle repairs, regardless of cost, shall be considered as eligible operating costs so long as the repairs involve replacement of existing items.

Trans 6.03(1)(b)18. 18. Fees imposed upon a contracted service provider by the grant recipient, such as taxicab license fees.

Trans 6.03(1)(b)19. 19. Job access and reverse commute project expenses, except in cases where the recipient’s grant agreement with the department explicitly authorizes use of federal funds for such project(s).

Trans 6.03(1)(c) (c) An eligible applicant that contracts with a provider for eligible public transportation service shall use the competitive procurement process set forth in this paragraph to choose a provider. An eligible applicant shall follow this competitive procurement process for each of its eligible public transportation service contracts not less than once every 5 years. If, however, service is provided by a transit commission formed in accordance with an applicable enabling statute, the competitive procurement process need not be used. Eligible applicants shall use the following competitive procurement process:

Trans 6.03(1)(c)1. 1. An eligible applicant shall prepare a “request for proposals” document that solicits proposals from providers and that describes essential provider qualifications and criteria for evaluating proposals. The eligible applicant shall send the document to the department for its approval and, after receiving departmental approval, shall post it along with any ancillary documents on the department of administration’s statewide goods and services electronic purchasing system website. The eligible applicant shall also cause an appropriate notice of the request for proposals to be published in a local newspaper of general circulation.

Trans 6.03(1)(c)2. 2. If only one qualified provider submits a proposal to provide the eligible public transportation service and the proposal satisfies all requirements of the eligible applicant’s request for proposals, the eligible applicant may negotiate a contract with that provider. The negotiated contract shall be subject to the department’s approval.

Trans 6.03(1)(c)3. 3. If 2 or more qualified providers submit proposals to provide the eligible public transportation service and the proposals satisfy all requirements of the eligible applicant’s request for proposals, the eligible applicant shall rank each provider on the criteria set forth in the request for proposals, and may negotiate a contract with the highest-ranking provider.

Trans 6.03(1)(c)4. 4. An eligible applicant shall establish an appropriate procedure for resolving bid proposal complaints and conflicts. The department shall consider procedural complaints or conflicts that include, but are not limited to, complaints that allege that established proposal evaluation procedures have not been followed. The department shall not review the substance of an eligible applicant’s decision to select a particular service provider. This subdivision may not limit the department’s authority to review an eligible applicant’s actions or inactions under this section or under other state or federal law.

Trans 6.03(1)(d) (d) Paragraph (c) applies only to eligible applicants filing applications due on or after November 15, 1988.

Trans 6.03(2) (2) The federal share of capital project costs shall not exceed 80% of eligible costs, except that the federal share of vehicle-related equipment required by the Clean Air Act or the Americans with Disabilities Act of 1990 may, at the department’s discretion, be up to 90% of the net project cost of such equipment. The department shall establish the appropriateness of each capital expenditure. Where capital equipment is to be shared with parties not directly involved in the provision of the project service, the department will consider the equipment eligible for funding only if the applicant satisfactorily demonstrates that it will be used for the project service at least 50% of the available time. In such cases, the project cost shall be prorated according to the use percentage.

Trans 6.03(3) (3) No eligible applicant may use funds received from the United States department of transportation as part of its local contribution towards operating and capital project costs. This includes federal section 5311 operating assistance funds received in past calendar years.

Trans 6.03 History History: Cr. Register, April, 1984, No. 340, eff. 5-1-84; emerg. am. (1) (b) 1., 3., 4., and 6., eff. 2-12-85; am. (1) (b) 1., 3., 4., 6. and 7., Register, November, 1985, No. 359, eff. 12-1-85; am. (1) (a) and (b) 4., r. and recr. (1) (b) 2., cr. (1) (c) and (d), Register, December, 1987, No. 384, eff. 1-1-88; reprinted to restore dropped copy in (1) (b) (intro.), Register, May, 1988, No. 389; am. (1) (a), (c) 3. and (2), cr. (1) (b) 18., Register, October, 1989, No. 406, eff. 11-1-89; am. (1) (b) 12. and 17., (c) and (2), Register, January, 1993, No. 445, eff. 2-1-93; CR 18-065: am. (1) (intro.), (a), (b) (intro.), 4., 6., 7., r. (1) (b) 16., am. (1) (b) 17., 18., cr. (1) (b) 19., am. (1) (c) 1. to 4., (2), cr. (3) Register October 2020 No. 778, eff. 11-1-20.

Trans 6.04 Trans 6.04 Distribution of federal aids.

Trans 6.04(1) (1) The state’s annual apportionment of federal section 5311 funds shall be distributed as follows:

Trans 6.04(1)(a) (a) Up to 10% will be reserved by the department for administrative and technical assistance purposes. Such technical assistance may include project planning, program development, management development, coordination of public transportation programs and research the department deems appropriate to promote effective means of delivering public transportation services in rural and small urban areas. Any uncommitted balance of the state’s apportionment of administrative funds from a preceding project year may be used during subsequent years until the balance is depleted.

Trans 6.04(1)(b) (b) Apportionments are initially available for operating assistance grants to eligible applicants, but when combined with state s. 85.20, Stats., operating assistance funds are limited to the lesser of either the operating deficit or 65% of the total eligible operating project costs. No city, village, or town may receive federal section 5311 funds to operate a municipal bus transportation system unless the system is approved by action of its governing body and by referendum vote of its electorate pursuant to s. 66.0803 (2) (a), Stats.

Trans 6.04(1)(c) (c) Any balance remaining in the apportionment referred to in par. (b) after operating assistance limits are met under par. (b) shall be available to all eligible applicants for capital grants awarded in accordance with criteria set forth under s. Trans 6.06.

Trans 6.04(1)(d) (d) Any balance remaining in the apportionment after capital assistance needs are met under par. (c) shall be available to all eligible applicants for operating assistance beyond the 65% limitation initially imposed in par. (b), not to exceed allowable limits under 49 USC 5311.

Trans 6.04(1)(e) (e) Not less than 15% of the apportionment made available to the state shall be used for the development and support of intercity bus service. Eligible activities under this program may include planning and marketing, capital grants for intercity bus shelters, joint-use stops and depots, operating grants through purchase-of-service agreements, user-side subsidies and demonstration projects, and coordination of rural connections between small transit operations and intercity bus carriers. This requirement is effective unless the governor certifies that the intercity bus service needs of the state are adequately being met.

Trans 6.04(2) (2) Any uncommitted balances of the state’s apportionments or any unexpended balances from previous obligations shall be carried forward to the following year.

Trans 6.04 History History: Cr. Register, April, 1984, No. 340, eff. 5-1-84; emerg., am. (1) (c), eff. 2-12-85; emerg. am. (1) (c), eff. 6-5-85; am. (2), Register, November, 1985, No. 359, eff. 12-1-85; am. (1) (c), cr. (1) (d), Register, December, 1989, No. 408, eff. 1-1-90; emerg. r. (1) (b), renum. (1) (c) and (d) to be (1) (b) and (c) and am., cr. (1) (d), eff. 2-20-92; r. (1) (b), renum. (1) (c) and (d) to be (1) (b) and (c) and am., cr. (1) (d), Register, June, 1992, No. 438, eff. 7-1-92; cr. (1) (e) Register, January, 1993, No. 445, eff. 2-1-93; am. (1) (e), Register, July, 1996, No. 487, eff. 8-1-96; correction in (1) (b) made under s. 13.92 (4) (b) 7., Stats., Register March 2012 No. 675; CR 18-065: am. (1) (intro.), (a), (b), (d), (e) Register October 2020 No. 778, eff. 11-1-20.

Trans 6.05 Trans 6.05 Operating grants to rural and small urban areas. Subject to the limitations set forth in s. Trans 6.03 (1), the operating assistance funds available in s. Trans 6.04 (1) (b) and (d) shall be allocated among eligible applicants in proportion to each applicant’s share of the projected operating project costs of all applications.

Trans 6.05 History History: Cr. Register, April, 1984, No. 340, eff. 5-1-84; emerg. am. eff. 2-20-92; am. Register, June, 1992, No. 438, eff. 7-1-92; CR 18-065: am. (title) Register October 2020 No. 778, eff. 11-1-20.

Trans 6.06 Trans 6.06 Capital grants.

Trans 6.06(1) (1) When awarding capital assistance funds under s. Trans 6.04 (1) (c), the department shall consider the age and condition of items for which eligible applicants request funding, and the following funding hierarchy:

Trans 6.06(1)(a) (a) Urgent capital needs that, based on available information, the department deems critical to transportation safety, operations, or asset management;

Trans 6.06(1)(b) (b) Replacement of vehicles operated by existing systems;

Trans 6.06(1)(c) (c) Projects to initiate a public transportation service;

Trans 6.06(1)(d) (d) Replacement of maintenance and storage facilities of existing systems;

Trans 6.06(1)(e) (e) Purchase of vehicles by existing systems for expansion of transit services;

Trans 6.06(1)(f) (f) Expansion and rehabilitation of maintenance and storage facilities of existing systems;

Trans 6.06(1)(g) (g) Purchase and installation of passenger amenities for existing systems such as shelters and bus stop signs;

Trans 6.06(1)(h) (h) Capitalized maintenance projects for existing transit systems;

Trans 6.06(1)(i) (i) Mobility management projects;

Trans 6.06(1)(j) (j) Job access and reverse commute projects, except where the department evaluates these projects through a stand-alone process using a set-aside of section 5311 funds; and

Trans 6.06(1)(k) (k) Other capital projects for which the use of section 5311 is permitted under 49 USC chapter 53.

Trans 6.06(2) (2) The department shall make awards until all allocated funds are committed. If available funds are not sufficient to fund all capital requests, then the department may, after consulting with applicants, reduce the scope or modify the timing of proposed projects to fit available funding.

Trans 6.06 History History: Cr. Register, April, 1984, No. 340, eff. 5-1-84; r. (1) (a), renum. (1) (b) to (g) to be (1) (a) to (f) and am. (1) (b), Register, November, 1985, No. 359, eff. 12-1-85; emerg. am. (1) (intro.), eff. 2-20-92; am. (1) (intro.), Register, June, 1992, No. 438, eff. 7-1-92; CR 18-065: r. and recr. Register October 2020 No. 778, eff. 11-1-20; correction in (1) (a) made under s. 35.17, Stats., Register October 2020 No. 778.

Trans 6.07 Trans 6.07 Application for federal aids.

Trans 6.07(1) (1) Eligible applicants may apply to the department for federal section 5311 funds. If more than one local public body will financially participate in the project, one body shall submit a single application on behalf of all. In those cases, the federal aids received shall be allocated among all local public bodies in proportion to each one’s share of eligible project costs.

Trans 6.07(2) (2) Applications shall be submitted to the department no later than December 15 of the year immediately preceding the project year. The department may accept revisions to a submitted application during the application review period. No application for operating assistance or capital assistance received after December 15 of the year immediately preceding the project year may be funded unless the department secretary determines that a later date is appropriate in order to properly respond to an emergency.

Trans 6.07(3) (3) The transit services receiving financial assistance may be operated for less than a calendar year.

Trans 6.07(4) (4) Applications shall be made in a manner and form prescribed by the department in accordance with governing federal regulations.

Trans 6.07(5) (5) All applicants shall submit their applications to the department’s bureau of transit, local roads, railroads and harbors.

Trans 6.07(7) (7) The department reserves the right to reject applications for any of the following reasons:

Trans 6.07(7)(a) (a) The proposed project is not consistent with the intent of the federal section 5311 program;

Trans 6.07(7)(b) (b) Insufficient federal funds are available;

Trans 6.07(7)(c) (c) The application is incomplete;

Trans 6.07(7)(d) (d) The proposed project is not effective and efficient when compared to projects of a similar type. Such measures as the ratio of operating revenues to operating expenses, passengers per mile of service, operating expenses per passenger, and passengers per population served may be used to determine effectiveness and efficiency.

Trans 6.07 History History: Cr. Register, April, 1984, No. 340, eff. 5-1-84; emerg. am. (2) eff. 6-5-85; am. (2), Register, November, 1985, No. 359, eff. 12-1-85; am. (2), Register, December, 1987, No. 384, eff. 1-1-88; am. (2) and (5), Register, January, 1993, No. 445, eff. 2-1-93; correction in (6) made under s. 13.92 (4) (b) 6., Stats., Register March 2012 No. 675; corrections in (5), (6) made under s. 13.92 (4) (b) 6., Stats., Register February 2013 No. 686; CR 18-065: am. (1) to (3), (5), r. (6), am. (7) (a), (b) Register October 2020 No. 778, eff. 11-1-20.

Trans 6.08 Trans 6.08 Reporting requirements. All grant recipients shall maintain books and records in the manner required by the department and shall make periodic and special reports as required by the department or by governing federal regulations. If the reports are not filed as required, the department may withhold grant payments due the recipient until the recipient’s reports are filed as required.

Trans 6.08 History History: Cr. Register, April, 1984, No. 340, eff. 5-1-84; am. Register, January, 1993, No. 445, eff. 2-1-93.

Trans 6.09 Trans 6.09 Labor protection requirements. Each eligible applicant, through formal resolution by its governing body, shall assume all responsibility and liability for all labor protection requirements imposed by the federal government to implement section 13 (c) of the urban mass transportation act of 1964, as amended. The department shall not fund any applicant that fails to comply with this section.

Trans 6.09 History History: Cr. Register, April, 1984, No. 340, eff. 5-1-84.

Trans 6.10 Trans 6.10 Property management and disposition.

Trans 6.10(1) (1) Grant recipients shall retain ownership of, and exercise continuing control over, equipment and facilities purchased with federal section 5311 funds throughout their useful life. Grant recipients shall ensure that equipment and facilities so purchased are maintained consistent with manufacturer instructions, sound asset management practices, and the terms of their grant agreements with the department.

Trans 6.10(2) (2) Grant recipients shall report on equipment and facilities purchased with federal section 5311 funds in a manner, format, and timeframe that the department specifies.

Trans 6.10(3) (3) Grant recipients shall request disposal instructions from the department when they are ready to dispose of any equipment or facilities purchased with federal section 5311 funds.

Trans 6.10(4) (4) Proceeds received from the disposition of equipment and facilities may be retained by the grant recipient subject to the provision of sub. (4m) below but shall be used for public transit purposes consistent with applicable federal transit administration guidelines, such as the following:

Trans 6.10(4)(a) (a) To purchase additional capital equipment.

Trans 6.10(4)(b) (b) To pay expenses of the operating assistance project.

Trans 6.10(4)(c) (c) To pay the local share of capital assistance projects.

Trans 6.10(4)(d) (d) To pay the local share of operating assistance projects.

Trans 6.10(4m) (4m) For each disposition of a federally funded asset that generates proceeds in excess of $5,000, the federal transit administration is due the federal share of the proceeds.

Trans 6.10(5) (5) Any use by the grant recipient of proceeds from the disposal of equipment or facilities requires prior approval of the department. Records shall be maintained by the grant recipient to permit tracking of the use made of the disposal proceeds.

Trans 6.10 History History: Cr. Register, December, 1987, No. 384, eff. 1-1-88; r. and recr. Register, October, 1989, No. 406, eff. 11-1-89; CR 18-065: r. and recr. (1), (2), am. (3), (4) (intro.), cr. (4m), am. (5), r. (6) Register October 2020 No. 778, eff. 11-1-20.

Trans 6.11 Trans 6.11 Federal aid grant agreements. No eligible applicant shall receive federal section 5311 funds without full execution of a grant agreement with the department, and continuing adherence to the terms therein.

Trans 6.11 History History: Cr. Register, December, 1987, No. 384, eff. 1-1-88; CR 18-065: r. and recr. Register October 2020 No. 778, eff. 11-1-20.