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FTA's Charter Regulations: a Compliance Guide for Ohio's Rural

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FTA's Charter Regulations: a Compliance Guide for Ohio's Rural FTA’s Charter Regulations: A Compliance Guide for Ohio’s Rural Public Transit Systems The Ohio Department of Transportation Office of Transit May 2004 An Equal Opportunity Employer Table of Contents Section 1. INTRODUCTION AND PURPOSE ........................................................................................... 1 Purpose........................................................................................................................................ 1 Who Should Read This Guidebook?........................................................................................... 1 Are There Any Exceptions to the Applicability of the Charter Regulations? ............................ 2 What is Charter Service? ............................................................................................................ 2 FTA’s Basic Requirements Pertaining to Charter Service ......................................................... 3 ODOT Definition of Contract Services ...................................................................................... 3 Organization of this Guide.......................................................................................................... 3 Section 2. GUIDANCE ON ELIGIBLE PUBLIC TRANSIT, CONTRACT, AND CHARTER SERVICES..................................................................................................................................... 6 What is Eligible Mass Transportation?....................................................................................... 6 Contract Services: Eligible Mass Transportation or Charter Service? ....................................... 6 What is the Definition of a.......................................................................................................... 7 Social Service Agency? .............................................................................................................. 7 Why is a Distinction Being Made Between Social Service Agencies and Other Entities that May Contract for Service?.......................................................................................................... 8 Transit Service is Under the Control of the Recipient................................................................ 9 Transit Service is Designed to Benefit the Public-At-Large .................................................... 10 Transit Service is Open to the Public........................................................................................ 11 Are the Criteria for Providing Service Under Contract to Social Service Agencies Different from Providing Service Under Contract to Other Organizations?............................................ 11 Are Fixed Route Services Subject to Similar Requirements? .................................................. 13 Example of Fixed Route Service .............................................................................................. 16 Does this Guidance Mean We Cannot Provided Service Under Contract?.............................. 18 What Approach Should be Taken to Achieve Compliance? .................................................... 18 What If the Services Provided Do Not Meet the Requirements Described in this Section? .... 18 Section 3. COMPLIANCE RESPONSIBILITIES UNDER FTA CHARTER REGULATIONS (49 CFR PART 604).................................................................................................................... 20 Purpose of this Section.............................................................................................................. 20 Scope of Coverage of 49 CFR part 604.................................................................................... 20 General Regulatory Requirement ............................................................................................. 21 Can a Grantee Provide Charter Using Vehicles that are Locally Funded?............................... 21 Can Our Subcontractors and/or Management Company, As a Private Entity, Provide Charter Services? ...................................................................................................................... 22 How Do We Determine If There Are Willing and Able Private Operators in Our Service Area?............................................................................................................................ 22 What Does this Notice Have to Say?........................................................................................ 23 Do We Have to Publish This Notice?....................................................................................... 23 How Detailed Must Our Description of Planned Charter Service Be?..................................... 23 Are We Permitted to Discuss Details with Private Operators During the Notice Solicitation Period?................................................................................................................... 24 How Do We Determine That a Private Charter Operator Qualifies as a Willing and Able Operator?................................................................................................................................... 24 How Often Do We Need to Conduct the Solicitation Process?................................................ 25 Can a Private Operator Retract its Willingness to Provide Charter Service? ........................... 26 What Happens if A Willing and Able Operator Refuses to Provide Service in Our Service Area?......................................................................................................................................... 26 Are We Required to Make Referrals to the Public from Our Willing and able Operators List?.......................................................................................................................... 26 Are There Any Circumstances When the Transit System Can Provide Charter Services When There are Willing and Able Charter Operators? ............................................................ 26 Are There Any Other Requirements Imposed on the Transit System When We Do Provide Charter Service?........................................................................................................................ 31 What is Incidental Charter Service? ......................................................................................... 31 Can We Provide Charter Service If the Chartering Party Requests Use of Our Trolley Vehicle?........................................................................................................................ 32 If We Opt to Provide Service Free to the Chartering Party as a Gesture of Goodwill, Are We Still Subject to the Regulations? ........................................................................................ 32 Can We Use System Vehicles to Respond to Request for Service from Our County Board of Commissioners?.................................................................................................................... 32 What if We Are Ordered to Use Transit System Vehicle in a Court of Law?.......................... 32 What are the Consequences for Violations of the FTA Charter Regulations? ......................... 32 Appendix A: List of Federal Funding Sources Section 1. Introduction and Purpose Section 1. Introduction and Purpose Purpose ♦ the compliance requirements associated with 49 CFR part 604; ♦ specific examples of eligible mass As a condition of receipt of funds under 49 transportation (“public U.S.C. § 5307, 5309, or 5311 from the transportation”); Federal Transit Administration (FTA), ♦ ODOT requirements for the whether received directly from FTA or provision of public transportation through the Ohio Department of under contract; Transportation, all transit systems must ♦ differences between charter certify that they will comply with FTA’s transportation and eligible services charter regulations (49 CFR part 604). provided under contract; ♦ the concept of “incidental” charter These programs are: services and explain when such services may be provided; and ♦ Section 5307 – Urban Formula ♦ the procedures that must be followed Program if any allowable charter services are to be provided by a transit system. ♦ Section 5309 – Discretionary Capital Program ♦ Section 5311 – Rural Transit Who Should Read This Guidebook? Program (Nonurbanized Area Formula Program) All Ohio public transit systems that are There is substantial confusion among Ohio recipients of FTA financial assistance, or transit systems with respect to FTA’s charter any coordination project that anticipates regulations. Moreover, ODOT has received receipt of Federal financial assistance in the complaints filed by private operators of future, should read this manual. charter services alleging violations of the policy. Subsequent investigation by ODOT Existing coordination projects that do not has indicated that transit systems are receive Federal financial assistance under potentially and unknowingly out of any of the three (3) programs listed above compliance with the charter regulations. should consult an ODOT white paper on this topic for guidance on their current The purpose of this manual is to define: compliance responsibilities. FTA’s Charter Regulations: A Compliance Guide for Ohio’s Public Transit Systems Page 1 Are There Any Exceptions to the specified in advance or modified after Applicability of the Charter Regulations? having left the place of origin.” This definition includes the incidental use of There is one exception to
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