1. www.drpt.virginia.gov DRPT Transit/TDM Grantee Webinar December 2012 Kevin Page Chief Operating Officer Steve Pittard Chief Financial Officer

2. December 2012 Transit/TDM Grantee Workshops 2 Welcome and Introduction Today’s Agenda  Opening Remarks –Webinar Logistics –Kevin Page (15 minutes) –Steve Pittard (15 minutes)  Transit (30 minutes) Terry Brown –MAP-21 Changes –Grants Management –Capital Facility and Infrastructure Review Program  Fiscal (60 minutes) Jamie Motley –New OLGA –Contracting –Invoicing  Planning and Mobility Programs –SJ297 (30 minutes) Amy Inman –TDM (30 minutes) Chris Arabia –Planning Initiatives (30 minutes) Kimberly Pryor

3. December 2012 Transit/TDM Grantee Workshops 3 Organizational Update  DRPT’s progress since September 2011 transition to a new business model –Vacancies filled Program administrator positions filled All but 4 staff level positions filled –Initiated the transit facility construction review program –Initiated accountability and compliance program New financial review of grant/project billings OLGA grant administration expanded Project performance compliance effort underway

4. December 2012 Transit/TDM Grantee Workshops 4 Organization Chart Thelma Drake Director Director’s Office: James Dyke – NVTC and WMATA Board Member Nancy Auth, Legal Support 1 Vacant #00039 Administrative Assistant to the Director Steve Pittard Chief Financial Officer (#00021) Kevin Page Chief Operating Officer (#14041) 1 Office of the Attorney General Linda Maiden DBE and Title VI Coordinator (#00053) Amanda Reidelbach Manager of Policy, Communications & Administration (#00992)

5. December 2012 Transit/TDM Grantee Workshops 5 Finance and Administration Steve Pittard Chief Financial Officer (#00021) Scott Wells IT Manager (#00026) Jason Cheeks Web/Database Application Developer (#00060) Joli Huelskamp Web/Database Application Developer (#00068) Lynne McCarthy Public Relations and Marketing Coordinator (#00052) Vacant Communications Specialist (#00051) Jamie Motley Director of Financial Planning and Budget (#07201) Marie Berry Mgr of Financial Programming (#00032) Patrice Strachan Lead Financial Compliance Analyst (#00056) Donnie Karabaich Audit Manager (#00027) Ashley Nusbaum Financial Compliance & Procurement Analyst (#00003) Aqueelah Walker Financial Compliance Analyst (#00058) Judith Gifford Director of Accounting and Administration (#00986) Vanessa Harding Accountant (#00002) Tashiba Johnson Fiscal Technician/ Administration Specialist (#00059) Kurt Pastuszak Controller (#00991) Amanda Reidelbach Mgr of Policy, Communications & Administration (#00992) Sarah Jackson Receptionist (#00015) Vacant Financial Reporting Analyst (#TBD) Angela Thompson Mgr of Budget & Financial Compliance (#00988) John Garofalo Special Projects (P-14) Vacant – On Hold Administrative Assistant to the Director (#00039) Vacant Financial Compliance Analyst (#00057) Sara Johnson- Ward Financial Compliance Analyst (P-14)

6. December 2012 Transit/TDM Grantee Workshops 6 Rail and Transit Velvet Walker Manager of Rail State Safety Oversight Agency Emergency Preparedness (#00055) Sharmila Samarasinghe Manager of Safety, Security & Emergency Preparedness (#14045) David Harlan Engineering and Safety Manager (#00035) Michael Todd Rail Corridor & Planning Program Manager (#00064) Jeremy Latimer Manager of Rail Preservation and Rail Industrial Access Programs (#00062) Jacob Craig Rail and Transit Project Execution Manager (#00065) Amy Inman Manager of Transit Planning (#00038) Kimberly Pryor Planning and Mobility Programs Administrator (#00989) Tim Roseboom Statewide Transit Planner (#00040) Phil DeLeon Dulles Corridor Project Coordinator (#00036) David Awbrey Transit Project Manager (#00006) Kathy Leidich Transit Project Manager (#00033) John Mahoney Human Service Transportation Project Manager (#13249) Steve Hennessee Transit Project Manager (#00034) Terry Brown Public Transportation Programs Administrator (#000987) Lisa DuMetz-Rosier Mobility Program Project Administrator- Northern Virginia (#00024) Chris Arabia Manager of Mobility Programs (#00031) Thomas Freeman Rail Transportation Programs Administrator (#00990) Omar Necko Manager of Rail Enhancement and Corridor Programs (#00066) Neil Sherman Transit Project Manager (#00061) Joe Swartz Program Manager – WMATA Funding Oversight (#00005) Emily Stock Manager of Rail Planning (#00063) Linda Maiden Rail and Transit Program Analyst (#00053) Kevin Page Chief Operating Officer (#14041)

7. December 2012 Transit/TDM Grantee Workshops 7 Points of Emphasis  FY2014 Grant Application Process begins December 1 –General Ledger/Comprehensive Annual Financial Audit must be submitted by February 1, 2013  Revenue estimate for FY2014 –Consider 80% state participation for Vehicles and 50% state participation for other capital items –Consider 17.5% state operating subsidy  SJ297 report submission pending  Engineering Review of capital/facility items  OLGA will go live system wide December 15 –Cradle to Grave grant administration

8. www.drpt.virginia.gov PUBLIC TRANSPORTATION PROGRAMS MAP-21, GRANTS MANAGEMENT, CAPITAL REVIEW Terry Brown Public Transportation Programs Administrator

9. December 2012 Transit/TDM Grantee Workshops 9  MAP-21 Changes  Grants Management Methodology  Capital Facility and Infrastructure Review Program 9 Presentation Overview

10. December 2012 Transit/TDM Grantee Workshops 10 MAP-21 Funding  Federal Transit Administration Programs –Sec. 5307 Urban Transit Formula Assistance –Sec. 5309 Capital –Sec. 5310 Elderly & Disabled –Sec. 5311 Rural Transit Formula Grants –Sec. 5316 Job Access/Reverse Commute –Sec. 5317 New Freedom 10

11. December 2012 Transit/TDM Grantee Workshops 11 Section 5307 – Urban Formula Assistance  MAP-21 continues the Section 5307 program with a few key changes  The biggest difference it brings to the Section 5307 program is the addition of a tier of funding based on areas' share of low-income population.  Overall Section 5307 funding rises by 7 percent by FY 2014.  Large Urbans will be able to apply a portion of their 5307 funding to operating, based upon the entity’s fleet size. 11

12. December 2012 Transit/TDM Grantee Workshops 12 Section 5310 – Elderly and Disabled  Projects will continue to be derived from a locally developed coordinated human services transportation plan.  Apportioned in a fashion similar to the current New Freedom – 60% allocated to large urbanized area; 20% to states for urbanized areas under 200k and 20% to states for rural areas.  New Freedom (FTA 5317) is combined with 5310. –DRPT has some small balances of 5317 available under SAFETEA-LU. We will continue to accept applications for New Freedom projects. 12

13. December 2012 Transit/TDM Grantee Workshops 13 Section 5311 – Rural Transit Operating and Capital  Total program will grow 30% from 2012 to 2014 levels.  Rural transit assets will be included in the nationwide transit asset management system.  Rural transit will have to participate in the FTA transit safety and security program.  FTA Section 5316 funds will be moved into the Rural program.  Rural Transit has been oversubscribed of late. Possible that 5311 funding will fall below 50% of operating deficit.

14. December 2012 Transit/TDM Grantee Workshops 14 Grants Management Methodology

15. December 2012 Transit/TDM Grantee Workshops 15 Quarterly Reviews vs Project Management  Developed quarterly review process two years ago to address large inventory of aging and inactive grants –With grantee assistance, brought grants under control  Now moving more towards project management focus –Will lead to documentation of a more thorough understanding of individual projects. –Should also result in a decrease in paperwork –Will also lead to DRPT Project Managers talking to grantee project managers for larger projects, rather than dealing with grants personnel 15

16. December 2012 Transit/TDM Grantee Workshops 16 Quarterly Reviews vs Project Management  Results? –Fewer phone calls from us asking for an update on a project right now! –Better understanding of cash flow needs on an ongoing basis –Lower loss of institutional knowledge due to staff turnover 16

17. December 2012 Transit/TDM Grantee Workshops 17 Capital Facility and Infrastructure Review Program 17

18. December 2012 Transit/TDM Grantee Workshops 18 Capital Facility and Infrastructure Review Program  DRPT will now be involved in value engineering for large construction projects  New focus based on development of past facilities which provided too much capacity or which did not adequately meet the needs of the grantee 18

19. December 2012 Transit/TDM Grantee Workshops 19 Questions?

20. www.drpt.virginia.gov FISCAL OLGA, CONTRACTING, INVOICING Jamie Motley Director of Financial Planning and Budget

21. December 2012 Transit/TDM Grantee Workshops 21 Questions?

22. www.drpt.virginia.gov PLANNING AND MOBILITY PROGRAMS SJ297 Amy Inman Manager of Transit Planning

23. December 2012 Transit/TDM Grantee Workshops 23  Overview  Operating Assistance Methodology  Capital Assistance Methodology  Recommendations  Statewide Transit and TDM Plan Needs Assessment  Next Steps Presentation Overview

24. December 2012 Transit/TDM Grantee Workshops 24 Senate Joint Resolution No. 297  In February 2011, The General Assembly passed Senate Joint Resolution 297 (SJR297), which directed the Virginia Department of Rail and Public Transportation to study key issues relating to the distribution of funding to transit agencies within the Commonwealth of Virginia.  In conducting its study, DRPT shall study, but not be limited to the following issues: –Performance –Prioritization –Stability –Allocation

25. December 2012 Transit/TDM Grantee Workshops 25 Study Approach  Convened SJR 297 Funding Study Advisory Committee  Review and documentation of existing funding allocation models and practices  Conducted best practice peer review and analysis of nationwide trends for public transportation funding allocation  Examined options for distribution of State operating and capital assistance  Identified data needs for use in potential allocation of funds  Developed recommendations for allocating State operating and capital assistance  Conducted needs assessment as part of a separate, but parallel process

26. December 2012 Transit/TDM Grantee Workshops 26 Key SJR 297 Dates  February 2011: General Assembly Approved SJR 297  June 16, 2011: Kickoff meeting of Funding Study Advisory Committee  August 3, 2011: Funding Study Advisory Committee meeting  September 14, 2011: Funding Study Advisory Committee meeting  May 7, 2012: Funding Study Advisory Committee meeting  July 18, 2012:SJR 297 CTB Briefing  July 30, 2012:Funding Study Advisory Committee meeting  September 6, 2012: Presentation of SJR 297 findings to transit community

27. December 2012 Transit/TDM Grantee Workshops 27 Operating Assistance Methodology

28. December 2012 Transit/TDM Grantee Workshops 28 Current Operating Assistance Funding Allocation  Current funding allocation formula is based on one factor, operating cost  The amount of operating assistance provided to each grantee is equivalent to the relative share of expenditures for each of the State’s various transit providers proportional to all transit providers’ expenditures  The operating assistance formula does not distinguish between transit service type or area in which the service is delivered  No direct link to the Commonwealth Transportation Board’s policy goals  The funding allocation is based on two year old data  Ineligible versus eligible costs add unnecessary complexities  Data can be validated based on audited information

29. December 2012 Transit/TDM Grantee Workshops 29 Recommended Operating Assistance Allocation Methodology  Applies only to state operating assistance program  Based on a hybrid model where 50% of funding is allocated by formula and 50% of funding is allocated based on performance  Performance is based on industry standard performance measures  Recommending a three-year transition period beginning in FY2015  Rewards efficient, customer oriented, performance  Demonstrate the funding needs of transit operators and importance of increased funding

30. December 2012 Transit/TDM Grantee Workshops 30 Recommended Operating Assistance Hybrid Allocation Approach Formula- Based 50% Net Cost Per Revenue Hour 12.5% Customers Per Revenue Hour 12.5% State Operating Assistance Allocation from DRPT 100% Operating Expenses 25% Ridership 25% Net Cost Per Revenue Mile 12.5% Performance- Based 50% Customers Per Revenue Mile 12.5%

31. December 2012 Transit/TDM Grantee Workshops 31 Overall funds allocated to metrics based on weights Funds for each metric distributed proportionally to agencies based on their relative share of total costs Formula-Based Allocation

32. December 2012 Transit/TDM Grantee Workshops 32 Performance-Based Allocation Peer groups of similar agencies created Funds in each metric pool allocated to peer groups based on size Funds in each peer group metric pool distributed to agencies based on performance

33. December 2012 Transit/TDM Grantee Workshops 33  Formation of Peer Groups – Service Area Population – Service Area Population Density – Ridership – Operating Cost – Peak Vehicles – Steel Wheeled vs. Rubber Wheeled Operating Assistance Performance Based Allocation

34. December 2012 Transit/TDM Grantee Workshops 34 Capital Assistance Methodology

35. December 2012 Transit/TDM Grantee Workshops 35  Mass Transit Capital Fund - Bond funding will be exhausted by 2018 - Application driven process - Flexibility to prioritize funding - Ability to fund State of Good Repair at 80% (ex. rolling stock replacement and major mid-life overhauls) - Ability to fund other capital items at blended rate of 50% (ex. Bus shelters, sidewalks, landscaping, etc) Current Capital Assistance Funding and Allocation  Mass Transit Trust Fund (MTTF) - Twenty-five percent, approximately $30M annually, of the MTTF - Allocate based on non-federal share of project compared to total for all projects - Application driven process - No flexibility to prioritize funding - All capital items under this program funded at the same blended rate as bonds, approximately 50%

36. December 2012 Transit/TDM Grantee Workshops 36 Recommended Capital Assistance Allocation  Continue application driven process  Allow flexibility to prioritize funding via a tiered approach –Example: Bus replacement and overhauls 20% total cost –Example: Bus shelters and bike racks 10% total cost –Example: Computers and landscaping 5% total cost  Revisit funding priorities every three to five years  Allow capital funds to supplement operating assistance

37. December 2012 Transit/TDM Grantee Workshops 37 Recommendations

38. December 2012 Transit/TDM Grantee Workshops 38 Recommendations  Performance –Revise the Code of Virginia to implement a hybrid formula and performance-based allocation system  Prioritization –Establish allocation processes that allow the CTB to prioritize capital investment decisions  Stability –Identify a source of transitional assistance to minimize impacts of implementing the new allocation system –Establish a reserve fund to stabilize match ratios for capital and operating expenses  Allocation –Allow capital and special programs funds to be used to supplement operating funds –Funds may not be allocated without requiring a local match from the recipient

39. December 2012 Transit/TDM Grantee Workshops 39 Recommendations  Capital and Operating Needs –Document the gap between transit needs and available funding as part of the Statewide Transit and TDM Plan in order to advocate for increased funding to maximize the capacity of the existing infrastructure –Findings will be incorporated into the SJ297 report

40. December 2012 Transit/TDM Grantee Workshops 40 Recommendations  Transition Assistance –2015 100% Transition Assistance Funding –2016 50% Transition Assistance Funding –2017 100% Performance Based Funding Allocation

41. December 2012 Transit/TDM Grantee Workshops 41 DRPT Statewide Transit and TDM Plan Needs Assessment

42. December 2012 Transit/TDM Grantee Workshops 42  Currently underway with final plan in November 2012  Transit and TDM recommendations statewide for three themes and investment scenarios  Capital and operating cost to support the transit and TDM recommendations for each investment scenario (Low, Moderate, High)  Conducted needs assessment  Develop Transit Resource Allocation Plan  Stakeholder meetings next week Statewide Transit and TDM Plan

43. December 2012 Transit/TDM Grantee Workshops 43  Four themes for evaluating investment scenarios –Transit State of Good Repair (SGR) –Transit Capacity Enhancements –TDM Capacity Enhancements –Transit Major Capital Projects Transit and TDM Investment Themes

44. December 2012 Transit/TDM Grantee Workshops 44  Low Investment –Addresses SGR for existing vehicles –Maintains existing service levels plus TDP commitments, escalates costs for inflation (3%) –Assumes Major Capital Projects currently under development  Moderate Investment –Addresses SGR for existing and future growth vehicles –Increases service levels TDPs through 2018 Service level growth consistent with area population growth 2019 through 2040 –Assumes Lower Level of Major Capital Project Investment  High Investment –Addresses SGR for existing and future growth vehicles –Increases service levels Moderate Growth plus –3% service hour growth / year – Top quartile performers –2% service hour growth / year – 2 nd quartile performers –Assumes High Level of Major Capital Project Investment Transit Investment Scenarios

45. December 2012 Transit/TDM Grantee Workshops 45  Low Investment –Maintains existing service levels for existing TDM programs with no growth –Costs escalated for inflation at 3% per year  Moderate Investment –Closes geographic gaps to expand to a statewide TDM program while maintaining existing service levels –TDM services increased to keep up with population growth and area type changes –Costs escalated for inflation at 3% per year  High Investment –Closes geographic gaps to provide statewide TDM service and increases service levels to recommended levels based on area type –TDM services increased to keep up with population growth and area type changes –Costs escalated for inflation at 3% per year TDM Investment Scenarios

46. December 2012 Transit/TDM Grantee Workshops 46 Investment Scenario Funding Needs/RevenuesCapital Funds (Millions YOE$) O&M Funds (Millions YOE$) Transit TDM Low Investment Total Funding Needs$15,892$43,668$739 Total Projected Revenue$12,439$31,157$482 Total Funding Gap$2,453$12,511$257 State Funding Gap (maintaining state share) $1,210$3,963$177 Moderate Investment Total Funding Needs$42,515$61,293$897 Total Projected Revenue$13,439$31,157$482 Total Funding Gap$29,076$30,136$415 State Funding Gap (maintaining state share) $7,717$7,489$304 High Investment Total Funding Needs$55,028$67,606$1,637 Total Projected Revenue$13,439$31,157$482 Total Funding Gap$41,589$36,449$1,155 State Funding Gap (maintaining state share) $10,815$8,751$896M Transit and TDM Investment Scenarios

47. December 2012 Transit/TDM Grantee Workshops 47 Questions?

48. www.drpt.virginia.gov PLANNING AND MOBILITY PROGRAMS TRANSPORTATION DEMAND MANAGEMENT (TDM) PROJECTS/PROGRAMS UPDATE Christopher Arabia Manager of Mobility Programs

49. December 2012 Transit/TDM Grantee Workshops 49 TDM Grant Applications TDM Operating Assistance  Competitive application process  No guarantee you will receive a grant amount equal to what you received last year  Show need  REQUIRED: A detailed Annual Work Plan submitted with application for TDM Operating Assistance  Use expense names for staff salaries & wages, indirect costs, supplies, etc.

50. December 2012 Transit/TDM Grantee Workshops 50 TDM Grant Applications TDM Operating Assistance (continued)  Balanced marketing of TDM (carpool, vanpool, bike, transit, employer outreach, telework, etc.)  Staff must work on TDM program  Read Program Application Guidance and Grantee Handbook  Contact your DRPT grant manager for assistance

51. December 2012 Transit/TDM Grantee Workshops 51 TDM Grant Applications Transportation Management Projects  REQUIRED: Submit detailed scope with application  Demonstrate benefit  Use expense names for staff salaries & wages, indirect costs, supplies, etc.  Read Program Application Guidance and Grantee Handbook  Contact your DRPT grant manager for assistance

52. December 2012 Transit/TDM Grantee Workshops 52 TDM Grant Administration  Invoice DRPT at least quarterly  Submit grant extension requests 60 days prior to end of project  Grant extensions are not automatic  Avoid food and beverage expenses –Use State per diem –Get prior approval from your DRPT grant manager –No food for meetings with staff or contractors  Travel –Get prior approval from your DRPT grant manager –Use State rates for staff and contractors –Show mileage (MapQuest, Google Maps, etc.)  Read Program Application Guidance and Grantee Handbook  Contact your DRPT grant manager for assistance

53. December 2012 Transit/TDM Grantee Workshops 53  Online resource – www.teleworkva.orgwww.teleworkva.org –Set up checklist –Sample policy and teleworker agreement –Assessment tools –eLearning tools How to set up a telework program How to sell telework to management How to train teleworkers How to manage teleworkers  Guidance and resources

54. December 2012 Transit/TDM Grantee Workshops 54  Local Employer Outreach staff – sales force  Learn about the Telework Tax Credit assistance (www.tax.virginia.gov)  Existing 60+ businesses in program being managed by DRPT

55. December 2012 Transit/TDM Grantee Workshops 55 Telework Tax Credit  Up to $50,000 per business for taxable years 2012, 2013, 2014, 2015 and 2016 –Up to $20,000 for a telework assessment –Up to $1,200 per employee for eligible expenses  Total statewide credits not to exceed $1 million annually  Businesses must pre-apply by completing the TEL-1 form and submit to Dept. of Taxation between Sept 1 and Oct 31  If credit applications exceed $1 million, then all credits will be allocated pro rata based on the requested amount.  Taxation will notify taxpayers of tentative credit allocations by December 31

56. December 2012 Transit/TDM Grantee Workshops 56 Telework Tax Credit  Businesses subject to income tax in Virginia  Must create new teleworkers  Must remove auto trips  New teleworkers must telework at least one day a week  New teleworkers must sign a telework agreement on or after July 1, 2012, but before January 1, 2017  Eligible expenses must be for the purpose of enabling telework, not a regular expense

57. December 2012 Transit/TDM Grantee Workshops 57 Questions?

58. www.drpt.virginia.gov Planning and Mobility Programs PLANNING INITIATIVES Kimberly Pryor Planning and Mobility Programs Administrator

59. December 2012 Transit/TDM Grantee Workshops 59 Overview  TDP Updates  CMAQ/RSTP Change  5303 Funding Formula  UPWP Deadline

60. December 2012 Transit/TDM Grantee Workshops 60 TDP Updates  All public transit operators receiving state funding prepare, adopt, and submit a TDP –Full updates are required every six years –Update letters are required annually –Identify needs and required resources for modifying/enhancing services –Provide a basis funding requests and feed into the programming process  TDP Update Letters and Constrained FY2014–FY 2019 Financial Plans due December 3, 2012 –Submit to DRPT project managers –If FY2014 budget has not been approved, use the anticipated budget and provide a schedule for when the approved budget is expected to be submitted

61. December 2012 Transit/TDM Grantee Workshops 61 CMAQ/RSTP Change  CMAQ and RSTP funded transit projects will be shown in DRPT’s portion of the SYIP in FY2014  Streamline process for flexing funds and project initiation  Enables DRPT to accurately report on transit funding and performance/accomplishments  Clearly establishes project oversight upfront  More consistent with how transit agencies are accustomed to viewing project funding information  Will be important to correctly identify projects as “VDOT” or “DRPT” projects up-front

62. December 2012 Transit/TDM Grantee Workshops 62 5303 Funding Formula  5303 funds are provided to MPOs to support required metropolitan planning activities as outlined in the UPWP  Formula is being revised based on the 2010 Census  DRPT is working with VDOT to evaluate multiple scenarios  Formula must be developed in consultation with MPOs and FTA, consider urbanized population, and provide an appropriate distribution to carry out the required cooperative planning process  DRPT proposal is to base 5303 funding levels on relative share of PL funds each MPO receives based on final scenario VDOT selects –If an MPO received 10% of the statewide total of PL funds based on VDOT’s selected scenario, they will receive 10% of 5303 funds

63. December 2012 Transit/TDM Grantee Workshops 63 UPWP Deadline  OLGA will be open for UPWPs beginning December 1 through May 31  Certifications and assurances must be signed  20-30% of 5303 funds may be used for Administration  DRPT will not apply for additional 5303 funds if an MPO still has two full years of funds remaining on existing executed grant agreements  Include items necessary for MAP21 (e.g., freight planning, performance measures and targets, etc.)

64. December 2012 Transit/TDM Grantee Workshops 64 Questions?

65. December 2012 Transit/TDM Grantee Workshops 65 www.drpt.virginia.gov drptpr@drpt.virginia.gov 804-786-4440