Trans 4.02 (4g) and (4r) are created to read:
Trans 4.02 (4g) “Project” means operation of an urban mass transit system, or subsystem thereof, during a project year.
Trans 4.02 (4r) “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 (5m), (7) and (8m) are amended to read:
Trans 4.02 (5m) “Revenue hours” means the annual number of hours in which a mass transit vehicle is operating in revenue service, such as being available to pick up or discharge passengers for which a mass transit system’s revenue passenger vehicles offer advertised public transit service, plus the annual sum of any additional hours during which these vehicles transport revenue paying passengers and, for shared-ride taxicab services, during which they travel to a base destination at the end of daily operation or undergo 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.
Trans 4.02 (10g) and (10r) are created to read:
Trans 4.02 (10g) “Urbanized area” means an area of the state so defined by the U.S. bureau of the census.
Trans 4.02 (10r) “Useful life” means a minimum time period, specified by the department, during which an asset is expected to remain in suitable condition for continued use in its intended capacity.
Trans 4.02 (11) is amended to read:
Trans 4.02 (11) “User-side subsidy” means financial assistance provided directly to a user of a mass transit system or of a subsystem thereof in the form of a voucher provided to the user by the local public body for use in payment of a fare, or a portion of a fare, for a trip taken on an urban transit system or eligible subsystem.
Trans 4.02 (12) is created to read:
Trans 4.02 (12) “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. Trans 4.03 is amended to read:
Trans 4.03 Appropriateness of urban areas. All urban areas shall be deemed appropriate for an urban mass transit system for purposes of receiving state aid, except that no city or village shall be deemed appropriate may receive state aid for a municipal bus transportation transit system unless the system is approved by action of it’s its governing body and by referendum vote of its electorate pursuant to s. 66.0803 (2) (a), Stats. 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 For employees who do not work full time on transit system operations, only expenses related to that portion of their time spent on transit shall be considered eligible project costs. For urban mass transit services provided by a private transportation providers provider operating under mass transit contracts contract with an eligible applicant, 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 of only 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 contract with an eligible applicant, eligible project costs may include management administrative fees that 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. Trans 4.04 (3) is created to read:
Trans 4.04 (3) If an eligible applicant contracts for mass transit service with a private provider, it shall execute a formal written contract with the provider. Only costs incurred under a properly executed written contract shall be considered eligible project costs.
Trans 4.04 (4) (a) is repealed and recreated to read:
Trans 4.04 (4) (a) If an eligible applicant contracts with a private provider to operate an urban mass transit system on its behalf, it shall do so using the competitive proposal process set forth in par. (b), and eligible project costs are limited to those costs associated with the proposal accepted by the eligible applicant.
Trans 4.04 (4) (b) 1., 2., 3., 4. (intro.) and a. are amended to read:
Trans 4.04 (4) (b) 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 proposal to be published in a local newspaper of general circulation.
Trans 4.04 (4) (b) 2. If only one qualified provider expresses interest in providing the eligible public transportation urban mass transit service, the eligible applicant may negotiate a contract with that provider. The negotiated contract shall be subject to the department’s approval.
Trans 4.04 (4) (b) 3. If 2 or more qualified providers express interest in providing the eligible public transportation urban mass transit 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.
Trans 4.04 (4) (b) 4. (intro.) 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 if so required by the request for proposal. 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: Trans 4.04 (4) (b) 4. a. Costs that depend on the number of vehicle hours operated, including particular operators operators’ salaries and fringe benefits.
Trans 4.04 (4) (b) 4. (Note) is repealed.
Trans 4.04 (4) (b) 5. is repealed.
Trans 4.04 (4) (b) 6., 7. and (c) are amended to read:
Trans 4.04 (4) (b) 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.
Trans 4.04 (4) (b) 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.
Trans 4.04 (4) (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 project costs 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.
Trans 4.04 (5) (f), (g), (o), (q), (r), (s), (t), (u), (w), (x) and (z) are amended to read:
Trans 4.04 (5) (f) Lease payments to a related party which are made under less than an arms- arm’s length agreement. Only actual eligible expenses project costs of owning the property, including depreciation and taxes taxes, shall be allowed, as authorized under sub. (1).
Trans 4.04 (5) (g) Lease payments for revenue passenger vehicles unless the situation exists necessitating a short−term lease. For purposes of this subsection, a short−term lease is defined to be of one year or less in duration. If the grantee is actively pursuing a federal grant to purchase vehicles, the eligibility of lease payments may be extended until such time as the purchased vehicles have been delivered unless, and only for the term, pre-approved by the department.
Trans 4.04 (5) (o) Charter-related expenses. Such expenses shall be considered to be equal to the revenue received directly from the provision of charter service, except when charter revenues exceed 10% of the total annual operating revenues of the eligible mass transit system. When charter revenues exceed 10% of the total annual operating revenues of the eligible mass transit system, charter-related expenses shall be determined in accordance with a cost allocation plan approved by the department.
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 related to the provision of mass transit service.
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 project costs so long as such repairs involve replacement of existing items.
Trans 4.04 (5) (s) For privately owned mass transit systems operated under contract by a private provider, the wages and fringe benefits of any public employees, except those employees involved in administration of the mass transit contract or in monitoring the performance of the private transportation provider.
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) (u) Return on investment, except as authorized by sub. (1). 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 transportation provider’s equipment and facilities used in providing the contracted for transportation service.
Trans 4.04 (5) (w) Franchise fees paid by the recipient public body to a private transportation provider.
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 mass 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.
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).
Trans 4.05 (1) is amended to read:
Trans 4.05 (1) State share of eligible project costs. 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 those in which a local public body contracts for services with a private provider 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 with in which a local public body contracts for services with a private provider 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.
Trans 4.05 (3), (4) and (5) are repealed.
