SECTION 11: Trans 4.02 (1d) and Trans 4.02 (1p) are created to read:
Trans 4.02 (1d) “Capital equipment” means non-expendable personal property for use in the provision of public transportation service and having:
(a) an anticipated useful life of one year or more; and
(b) an acquisition cost of $5,000 or more per unit.
Trans 4.02 (1p) “Job access and reverse commute project” means a transportation project to finance planning, capital, or operating costs that support the development and maintenance of transportation services designed to transport welfare recipients and low-income individuals to and from jobs and employment-related activities, including transportation projects that facilitate the provision of public transportation services from rural and urbanized areas to suburban employment locations, where:
(a) “low-income individual” means an individual whose family income is at or below 150 percent of the poverty line, as that term is defined in Section 673(2) of the Community Services Block Grant Act, 42 U.S.C. 9902(2), including any revision required by that section, for a family of the size involved; and (b) “welfare recipient” means an individual who has received assistance under a State or tribal program funded under part A of title IV of the Social Security Act, 42 U.S.C. 601 et seq., at any time during the previous three-year period. SECTION 12: Trans 4.02 (1r) is renumbered Trans 4.02 (1t) and, as renumbered, is amended to read:
Trans 4.02 (1t) “Joint-use facility” means a facility that is shared by the public transit operation a mass transit system and at least one other business.
SECTION 13: Trans 4.02 (2) is amended to read:
Trans 4.02 (2) “Local public bodies body” are defined to be means:
(a) Counties, municipalities or towns, or agencies thereof A county or municipality as defined in s. 59.001, Stats.; (b) Transit A transit or transportation commissions or authorities commission or authority, and or a public corporations corporation established by law or by interstate compact to provide mass transportation services and facilities; or,
(c) Two or more of any such bodies acting jointly under ss. 66.0301 to 66.0303, Stats. SECTION 14: Trans 4.02 (3) is repealed and recreated to read:
Trans 4.02 (3) “Mass transit system” has the meaning given in s. 85.20 (1) (e), Stats., and additionally may include specialized transportation subsystems for seniors and individuals with disabilities, but does not include transportation services exclusively for a subgroup of the general public. SECTION 15: Trans 4.02 (3g) and (3r) are created to read:
Trans 4.02 (3g) “Operating deficit” means the amount by which the total operating expenses incurred in the operation of a mass transit system exceeds the amount of operating revenues derived therefrom.
Trans 4.02 (3r) “Operating revenues” means income that accrues to a mass transit system by virtue of its operations, excluding any income derived from the sale of charter service or the hauling of freight.
SECTION 16: Trans 4.02 (4) is amended to read:
Trans 4.02 (4) “Private provider” means a privately owned entity that owns facilities or revenue passenger vehicles used to provide transit service is paid by an eligible applicant to provide transit service on its behalf.
SECTION 17: Trans 4.02 (4m) is created to read:
Trans 4.02 (4m) “Project year” means a calendar year in which an eligible applicant executes a public transit project receiving funding under s. 85.20, Stats.Trans 4.02(5) SECTION 18: Trans 4.02 (5m), (7) and (8m) are amended to read:
Trans 4.02 (5m) “Revenue hours” means hours in which a mass transit vehicle is operating in revenue service, such as being available to pick up or discharge passengers times when an eligible applicant’s revenue passenger vehicle operates during advertised hours of service, plus any additional times during which it transports revenue paying passengers, travels to its base destination at the end of daily operation, or undergoes a pre-trip inspection.
Trans 4.02 (7) “Shared-ride taxicab" means a taxicab legally able to simultaneously transport passengers having different origins, or different destinations, or both.
Trans 4.02 (8m) “Unlinked trip” means a trip beginning when a passenger boards the vehicle and ending when the passenger alights from the vehicle, even though if the passenger may have to transfer transfers to another vehicle to complete his or her journey reach a destination.
SECTION 19: Trans 4.02 (10m) is created to read:
Trans 4.02 (10m) “Urbanized area” means an area of the state so defined by the U.S. bureau of the census.
SECTION 20: Trans 4.04 (1) and (2) are amended to read:
Trans 4.04 (1) Eligible project costs are limited to the operating expenses of an urban mass transit system, including labor, fringe benefits, materials and supplies, utilities, insurance, purchased transportation services, license fees and lease expenses. For publicly owned mass transit systems, the only the wages and fringe benefits that shall be considered eligible project costs are those of those employees whose activities are directly related to the day-to-day operation of the system shall be considered eligible project costs. If those the employees do not work full time on transit, only expenses related to that portion of their time spent on transit shall be considered eligible costs. For services provided by private transportation providers operating under mass transit contracts, eligible project costs may include profit, return on investment, interest on short term debt obligation, and depreciation of facilities and capital equipment used directly for the provision of urban mass transit services, provided that the facilities and equipment were acquired without benefit of public financial assistance. If a facility is a joint-use facility, depreciation costs for only of that portion of the facility used in the provision of urban mass transit services are is an eligible project costs cost. For shared-ride taxicab services provided by private transportation providers operating under mass transit system contracts, eligible project costs may include management administrative fees the eligible applicant incurs in the course of satisfying state and federal requirements.
Trans 4.04 (2) Eligible project costs may include the costs of user-side subsidies provided to disabled persons individuals with disabilities. User contributions to the user-side subsidy service are considered eligible project costs in accordance with s. 85.20 (3m) (b), Stats. SECTION 21: Trans 4.04 (3) is created to read:
Trans 4.04 (3) If the recipient contracts for mass transit service with a private provider, the recipient shall execute a formal written contract with the provider. Only costs incurred under a properly executed written contract shall be considered eligible project costs.
SECTION 22: Trans 4.04 (4) is amended to read:
Trans 4.04 (4) (a) If urban mass transit service is provided under a local public body contract with a private provider chosen following advertisement for competitive bids, eligible project costs may include profit, return on investment, and depreciation of facilities and capital equipment used directly for the provision of urban mass transit services, provided that the facilities and equipment were acquired without benefit of public financial assistance. If a facility is a joint-use facility, depreciation costs for only of that portion of the facility used in the provision of urban mass transit services are is an eligible project costs cost. If transit services are competitively bid, eligible project costs are eligible project costs only if the eligible applicant uses the competitive bid process set forth in par. (b), and these costs may only include costs those associated with the bid accepted by the local public body. If transit services are competitively bid, no costs shall be eligible project costs unless the eligible applicant uses the competitive bid process set forth in par. (b). A contract awarded to a private provider following the competitive bid process may not exceed 5 years in length.
(b) Eligible applicants shall use the following competitive bid process:
1. An eligible applicant shall prepare a “request for qualifications proposal” document. That The document shall request expressions of interest from providers, shall and describe essential provider qualifications and shall describe criteria for evaluating the provider those qualifications. The eligible applicant shall send the request for qualifications document to all providers of passenger transportation services, either for the general public or for elderly or disabled persons, operating within the service area of the applicant post the document, 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 qualifications to be published in a local newspaper of general circulation.
2. If only one qualified provider expresses interest in providing the eligible public transportation service, the eligible applicant may negotiate a contract with that provider. The negotiated contract shall be subject to the department's approval.
3. If 2 or more qualified providers express interest in providing the eligible public transportation service, the eligible applicant shall send each party a “request for proposal” document. The document shall describe the eligible public transportation service requirements and the criteria that shall be used in evaluating the bid proposals rank each provider on the criteria set forth in the request for proposal.
4. When a publicly owned mass transit system responds to a request for proposal issued by a local public body under subd. 3., the cost proposal shall include an analysis of fully allocated costs that will be used as the basis for evaluating costs when ranking proposals. The analysis shall include all of the system's costs measured in accordance with generally accepted accounting principles, regardless of whether these costs are otherwise paid for through other public financial assistance, including operating subsidies and capital grants. When the public body which owns the mass transit system has prepared a cost allocation plan in accordance with United States office of management and budget circular A-87, or OMB circular A-87 2 CFR 200, costs of the mass transit system shall be allocated in accordance with that plan. When the mass transit system has not prepared a cost allocation plan in accordance with OMB circular A-87 2 CFR 200, costs which are allocable to the mass transit system shall be determined using the principles outlined in OMB circular A-87 2 CFR 200. Expenses of the mass transit system shall be allocated to segments of service considered using the following categories: a. Costs that depend on the number of vehicle hours operated, including particular operators operators’ salaries and fringe benefits.
b. Costs that depend on the number of vehicle miles traveled, including fuel costs, maintenance costs and maintenance personnel salaries and fringe benefits.
c. Costs that depend on the maximum number of vehicles that are in service during the day, including administrative and capital costs.
5. The “request for qualifications” and the “request for proposal” may be combined and sent to transportation providers as one document.
6. When a contract is awarded based on bids for purposes of state aids, the The proposed costs in an awarded bid shall be reduced by an allowance for operating and capital costs subsidized through other state and federal grants.
7. An eligible applicant shall establish an appropriate procedure for resolving bid proposal complaints and conflicts, and shall include the procedure in its request for proposal.
(c) If a local public body contracts for urban mass transit service with a private provider on the basis of negotiated procurement, eligible operating expenses may include as costs depreciation of facilities and capital equipment used directly for the provision of urban mass transit services, provided that the facilities and equipment were acquired without benefit of public financial assistance. If a facility is a joint-use facility, depreciation costs for only of that portion of the facility used in the provision of urban mass transit services are is an eligible project costs cost.
Note: Copies of the OMB Circular A−87 may be obtained, without cost, by writing to the Division of Transportation Investment Management, Bureau of Transit and Local Roads, Room 951, P. O. Box 7913, Madison, WI 53707−7913. A copy of this document is also on file with the offices of the Secretary of State, and the Legislative Reference Bureau.
SECTION 23: Trans 4.04 (5) (q), (r), (t), (x) and (z) are amended to read:
Trans 4.04 (5) (q) Indirect transit-related Expenses for general public administration functions or activities of regional or local entities performed as a normal or direct aspect of general public administration that are not transit-related.
Trans 4.04 (5) (r) Expenses for contingencies or capital acquisitions, including contributions to a capital reserve account or fund. For purposes of determining eligible operating expenses, capital acquisitions are defined as the purchase of non-expendable personal property with a useful life of more than one year and an acquisition cost of $1,000 or more per unit. 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 such repairs involve replacement of existing items.
Trans 4.04 (5) (t) Fees imposed upon a contracted service provider by the recipient public body, such as taxi taxicab license fees.
Trans 4.04 (5) (x) Expenses for the direct operation of private or public transit van pools, except public van pool administrative and marketing expenses associated with the public transit van pool program.
Trans 4.04 (5) (z) For transit systems providing services outside of their jurisdictional boundaries, expenses related to services which duplicate those provided by another public mass transit system in terms of geographic area served, hours operated, frequency of service and passenger boarding and alighting locations. Decisions on duplication of service shall be made by the department, after consultation with the affected public bodies.
SECTION 24: Trans 4.04 (5) (aa) is created to read:
Trans 4.04 (5) (aa) Job access and reverse commute project expenses, except in cases where the recipient’s grant agreement with the department explicitly authorizes use of funds for such project(s).
SECTION 25: Trans 4.05 is amended to read:
Trans 4.05 State share of eligible project costs.
(1) The department of transportation may audit all public and private providers of urban mass transit services receiving state aids under the urban mass transit operating assistance program. The audits shall be the basis for computing the maximum share of state and federal aids each eligible applicant can apply against operating deficits for each state aid contract period. If a private provider is a subsidiary corporation, the department of transportation may audit both the subsidiary and the parent corporation. The department shall conduct audits as follows:
(a) For all urban mass transit systems participating in the state aid program, except privately owned systems with which a local public body contracts for services on the basis of competitive bids, the department shall audit the actual operating revenues and operating expenses for each state aid contract period. Audits shall be conducted in accordance with generally accepted governmental auditing standards.
(b) For privately owned mass transit systems private providers with which a local public body contracts for services on the basis of competitive bids, the department shall conduct contract compliance audits, except that the department may not conduct financial audits of the business records of the private provider. This provision shall apply only for years in which an actual dollar amount was bid. Years for which a definite percentage increase over first year costs has been specified in the bid, or years in which costs are to be increased by the rate of inflation as measured by the consumer price index shall be considered years in which an actual dollar amount was bid. Additionally, the department shall audit any fees the local public body charges to the department for administration of the private provider’s service.
(2) The state’s share of eligible project costs shall be in accordance with s. 85.20 (4m), Stats. (3) “Operating deficit” means the amount by which the total operating expenses incurred in the operation of a mass transit system exceeds the amount of operating revenues derived therefrom.
(4) “Operating revenues” means income accruing to a mass transit system by virtue of its operations, excluding any income derived from the sale of charter service or the hauling of freight.
(5) “Operating expenses” shall be determined in accordance with s. Trans 4.04. SECTION 26: Trans 4.06 is amended to read:
Trans 4.06 Distribution of state aids.
(1) The department shall distribute the state appropriations for this program among eligible applicants in accordance with the procedures set forth in s. 85.20 (4m), Stats., and also in accordance with provisions of the annual state contract grant agreements executed between the each applicant and the department. (2) Except as provided in sub. (3), each eligible applicant shall provide a local contribution, exclusive of user fees, toward operating expenses in an amount equal to at least 20% of all state allocations to that applicant under this chapter. No in-kind services, federal or state categorical financial aids or passenger revenues are allowed as part of the local contribution. No part of the local contribution may be paid by a private transportation provider contracting with the applicant public body. The local contribution shall be determined by audit and calculated by subtracting passenger revenues, federal aids and state aids from eligible operating expenses.
(3) Subsection (2) does not apply to an eligible applicant that is served exclusively by a shared-ride taxicab system.
(4) State aids shall be paid to a recipient on a quarterly recurring basis, and no more than four times annually. If the department’s audit establishes that the state aid payment to a recipient has exceeded any limitation on the state’s share of eligible project costs under s. 85.20, Stats., then the recipient shall refund to the department an amount sufficient to reduce the state aids to an amount that is in conformity with s. 85.20, Stats. SECTION 27: Trans 4.07 is amended to read:
Trans 4.07 Application for state aids. (1) Applications shall be made in a form and manner prescribed by the department. If more than one multiple public body bodies in a given urban area contributes contribute assistance to a mass transit system, one public body should submit a single application on behalf of all participating local governments. The applicant public body, as well as all other participating local governments, shall assure that the required local shares of eligible project costs will be available.
(1m) Each state aid application shall include a transit management plan which describes for the coming year the transit system’s operations, including the amount of service to be provided, the fares to be charged, any steps to be taken to improve system effectiveness and efficiency, and the procedures to be used for counting revenue passenger trips.
(2) Applications for aids shall be submitted to the department no later than November December 15 of the year immediately preceding the proposed project year. Applicants may request up to a 45-day extension of this due date and the department may grant such requests. No application received after January 1 of the project year shall be funded unless the secretary of transportation determines that a later date is appropriate in order to properly respond to an emergency situation.
(3) Eligible applicants in “urbanized” areas serving an urbanized area with a population exceeding 50,000 shall submit a copy of their application to the appropriate metropolitan planning organization.
(4) For purposes of this chapter a “project year” is defined to be a calendar year. The assisted transit Transit services receiving financial assistance may be operated for less than a calendar year.
(5) Costs for services not included in the application for state aids will not be eligible for funding until the following calendar project year unless the department so approves them in writing prior to the time at which costs start accruing.
(6) An eligible applicant intending to submit an application to support a new mass transit system shall notify the department of the applicant’s its intention no later than April January 15 of the even-numbered preceding year to be eligible for funding in the next biennium.
SECTION 28: Trans 4.07 is amended to repeal Trans 4.07 (1) (Note).
SECTION 29: Trans 4.08 is amended to read:
Trans 4.08 State aid contracts grant agreements. (1) For each calendar year, the department may execute an annual aid contract grant agreement with each eligible applicant.
(2) State aid contracts grant agreements may be terminated by either the department or the applicant under the following conditions:
(a) By the department, if the department determines that the purpose of the aid program as expressed in s. 85.20, Stats., is not being fulfilled, or if the recipient fails to comply with the terms and conditions of the state aid contract grant agreement. (b) By the recipient, if the recipient makes a formal application to the department to do so.
(3) A state aid contract grant agreement may be terminated as provided in sub. (2) by giving written notice of intent to terminate, sent by certified mail, at least 30 calendar days prior to the proposed termination date.
(4) State aid contracts grant agreements shall require that recipients do the following:
(a) Pay the operating deficit of the mass transit system;
