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Rail and Public Transit Division Statewide Transportation Improvement Fund DRAFT Discretionary and Intercommunity Discretionary Rules for RAC and Public Review January 2, 2018

Introduction This document includes the current draft Oregon Administrative Rules for implementation and disbursement of the Statewide Transportation Improvement Fund (STIF) General, Formula, Discretionary, and Intercommunity Discretionary Funds.

Feedback Process: Draft Discretionary and Intercommunity Discretionary Rules • The draft rules for the Discretionary and Intercommunity Discretionary Funds begin on page 29.

Additional rules pertaining to the Discretionary Fund grants are located in the STIF General Information Division, beginning on page 3.

• ODOT seeks public comment on the draft rules for the Discretionary and Intercommunity Discretionary Funds. The public review period is January 2 – 17, 2018. Commenters should consider both the Discretionary and Intercommunity Discretionary fund rules and relevant General rules when commenting.

• ODOT is accepting comments on the draft rules for the Discretionary and Intercommunity Discretionary Funds in the following ways:

o Complete the online survey on the STIF webpage between January 2 and 17. o Provide verbal comments in-person at the Public Listening Session, January 9 from 5:30 to 7

p.m. at ODOT, Region 2 Campus, 885 Airport Rd SE, Bldg “X”, Salem, OR 97301. o Email comments to Seth Baker at sbaker@enviroissues.com. o Provide verbal comments to the RAC at its 2 p.m. meeting on January 9 in Salem. Written

comments are always welcome.

• The Rules Advisory Committee will discuss the draft rules for the Discretionary and Intercommunity Discretionary Funds at its next meeting on January 9, 2018. Additional details about the RAC meeting are located on the ODOT STIF web page: http://www.oregon.gov/ODOT/RPTD/Pages/STIF.aspx

• After the close of the January public comment period, ODOT will work with DOJ to refine the draft rules to incorporate Oregon Transportation Commission, RAC, stakeholder, and public comments. A major reorganization of the draft rules by DOJ is anticipated prior to the February RAC meeting to reduce redundancies and make provide additional clarity.

Update on General and Formula Draft Rules • Redline revisions to the General and Formula draft rules were completed following the December

STIF Rules Advisory Committee meeting to reflect input from the RAC and preliminary feedback from the Oregon Department of Justice (DOJ).

STIF Rule Organization General Information Division rules apply to all three sub-allocation funds: Formula, Discretionary, and

Intercommunity Discretionary. General rules are followed by specific rules for each of the sub-allocation

funds: Formula, Discretionary, and Intercommunity Discretionary. The content highlighted in yellow is

content that remains under review and discussion by ODOT. X’s reflect content to be completed at a

later date by the Rail and Public Transit Division (RPTD) or the DOJ.

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DRAFT STIF Rules Table of Contents

DIVISION XX: Statewide Transportation Improvement Fund

General Information

• Purpose of Rule

• Statutory Authority and Procedures

• Definitions

• Purpose and Use of STIF

• Administration by the Agency

• Accounting Requirements

• Reporting Requirements

• Capital Asset Requirements

• Audit and Compliance Review Requirements

• Recipient Qualifications

• Management of Agreements

• Withholding of Funds

• Appeal Procedures

• Redistribution of Funds DIVISION XX: STIF FORMULA FUND

• Fund Purpose

• Planning Requirements

• Qualified Entity Management and Joint Management of STIF Formula Funds

• Advisory Committee Requirements

• Application Procedures

• Application Review

• Disbursement of Formula Funds

• Qualified Entity Sub-Allocation and Distribution of Formula Funds

• Qualified Entity Withdrawal from STIF Formula Funding

DIVISION XX: STIF DISCRETIONARY FUNDS

General Information

• Applicant Eligibility

• Application Submission Procedures

• Application Requirements

DIVISION XX: STIF DISCRETIONARY FUND

• Fund Purpose

• Project Eligibility

• Match Requirements

• Project Selection DIVISION XX: STIF INTERCOMMUNITY DISCRETIONARY FUND

• Fund Purpose

• Project Eligibility

• Project Selection

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AGENCY XX -- Statewide Transportation Improvement Fund

General Information Purpose of Rule

The rules in Chapter X, Divisions X, X, X, and X establish the procedures and requirements of the Agency for the administration of the Statewide Transportation Improvement Fund (STIF) to improve public transportation service in Oregon. Statutory Authority and Procedures

ORS X requires the Agency to adopt rules necessary for the administration and implementation of the STIF under ORS XXX.XXX through XXX.XXX. Definitions

The following definitions apply to rules in chapter XXX Divisions X, X, X, and X: “Advisory Committee” means a local committee formed by a Qualified Entity to assist the Qualified Entity in carrying out the purposes of the STIF Formula Fund and the Advisory Committee requirements specified in XXXX. “Agency” means Oregon Department of Transportation “Capital Asset” means tangible items with a purchase price of $5,000 or more and a useful life of at least one year. For Transit Asset Management Capital assets please see “Reportable Capital Asset”.

“Commission” means the Oregon Transportation Commission established under ORS 184.612. “Community” means an “urbanized area” or “urban cluster” as defined by the US Census Bureau. “Coordinate” means meet and develop sub-allocation methods, plans, programs, and schedules with other Public Transportation Service Providers and non-profit public transportation service providers with the intent of developing efficient and seamless public transportation services and reducing gaps in service. “Continuing Control” means use, management, and disposal of a Capital Asset. “Discretionary Fund” means up to five percent of STIF funds to be disbursed to Public Transportation Service Providers, which includes Qualified Entities, through a competitive grant funding process. “Governing Body” means the decision-making body or board of the Qualified Entity. “High Percentage” and “Low Income HouseholdIndividual” have the meaning established by a Qualified Entity or the Public Transportation Service Provider’s Title VI plan that has been adopted by the applicable Governing Body and approved by the Federal Transit Administration. If neither the Qualified Entity nor the Public Transportation Service Provider have an approved Title VI plan, a “Low Income HouseholdIndividual” 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 Service Block Grant Act (42

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U.S.C. 9902(2)), including any revision required by that section) for a family of the size involved. [NOTE: DOJ recommends revision bc as written is delegation of state authority when leg. hasn’t authorized. Suggests remove reference to title VI and use FTA language. FTA language encourages a more inclusive definition, but doesn’t require it as long as HHC poverty guideline, above is followed. See for more info: https://www.transit.dot.gov/what-meant-%E2%80%9Clow-income-individual%E2%80%9D]

“Indian Tribe” means a federally recognized Indian Tribe in Oregon that has members residing on a reservation or in tribal trust lands in Oregon.

“Intercommunity Discretionary Fund” means up to four percent of STIF funds to be disbursed to Public Transportation Providers, which includes Qualified Entities through a competitive grant funding process. “Intergovernmental Entity” includes entities that organized under ORS 190.010. “Local Match” definition needed. Discuss content with RAC. “Local Plan” means a local or regional public transportation plan or adopted policies that isare developed and approved by the Governing Body of Qualified Entities, or Public Transportation Service Providers, or Metropolitan Planning Organizations, consistent with the Local Plan requirements specified in [reference sections that describe requirements]. Examples of documents that may meet Local Plan requirements included Coordinated Public Transit Human Services Transportation Plans , Transportation System Plans, Transit Development Plans, and Transit Master Plans. “Mass Transit District” means a district organized under ORS 267.010 to 267.390.

“Project” means a public transportation improvement activity or grouping of activities eligible for STIF funding in an application to a Qualified Entity or the Agency. Activities and funding described by an applicant in the Project application becomes defined in the subsequent grant agreement. Examples of project types include, but are not limited to: discrete activity types, such as transit vehicles, planning, or operations; and a group of activities for a particular geographic area or new service, such as a new route that includes a transit vehicle, maintenance, and operations activities. “Public Corporation” means an independent legal entity that was formed by legislative action, serves a public purpose, and is under exclusive public management or control. “Public Transportation Service Provider” means a Qualified Entity, city, county, Special District, intergovernmental entity or any other political subdivision or municipal or public corporation that provides public transportation services. “Public Transportation Services” means any form of passenger transportation by car, bus, or other conveyance, either publicly or privately owned, which provides service to the general public (not including charter, sightseeing, or exclusive school bus service) on a regular and continuing basis. Such transportation may be for purposes such as health care, shopping, education, employment, public services, personal business, or recreation.

“Qualified Entity” means a Mass Transit District, a Transportation District, a county without a mass transit district or transportation district, or a federally-recognized Indian tribe. If more than one Mass Transit District or Transportation District are located within a single county, the larger district is the

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Qualified Entity for the purpose of administering the local STIF planning process and receiving STIF Formula funds from the Commission. “Recipient” means a Qualified Entity or Public Transportation Service Provider that enters into a grant funding agreement directly with the Agency.

“Reportable Capital Asset” means all vehicles owned by the Recipients and Sub-recipients, including non-service vehicles, all facilities, equipment valued at $50,000 or more, and all third-party assets dedicated to the agency’s service. These assets are required to be in the Transit Asset Management Plan to meet Federal Transit Administration state of good repair requirements.

“Special District” means a service district organized under ORS 451.010 that provides Public Transportation Services.

“STIF Formula Fund” means up to 90 percent of the Statewide Transportation Improvement funds to be disbursed to Qualified Entities conditioned upon the Commission’s approval of a STIF Plan.

“STIF Plan” means a public transportation improvement plan that is reviewed and recommended by an Advisory Committee, approved by a Governing Body and submitted to the Agency for review and approval by the Commission in order for the Qualified Entity to receive a proportionate share of STIF Formula funds.

“Statewide Transit Network” means the collection of all transit service that operates in Oregon.

“Sub-Recipient” means a public transportation provider that has entered into an agreement with a direct Recipient in order to complete one or more tasks specified in the agreement between the Agency and the Recipient.

“Transportation District” means a district organized under ORS 267.510 to 267.650.

Purpose and Use of STIF

(1) The STIF funds are continuously appropriated to the Agency to fund investments and improvements in all types of public transportation service, except that the moneys may not be used for light rail. [NOTE: The Joint Committee recently stated it was not their intent to preclude the use of STIF to subsidize low income fare programs for light rail and signaled their intent to amend current law to reflect this in the 2018 legislative session. If this occurs, the draft rules will be revised to reflect the amendment.]

(2) STIF funds are intended to provide a flexible, coordinated, reliable, and continuing source of revenue for public transportation services in Oregon.

(3) STIF moneys may be used for all public transportation purposes that support the effective planning, deployment, operation, and administration STIF-funded public transportation programs.

(a) Improvements to existing public transportation systems and services with origins, destinations or stops in Oregon.

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(b) Creation of new systems and services with origins, destinations or stops in Oregon.

(c) Maintenance or continuation of systems and services that were improved or created using STIF funds.

(d) Planning for and development of a Local Plan or STIF Plan to improve public transportation service.

(4) STIF moneys may be used as local match for state and federal funds also providing public transportation service.

(5) Qualified Entities and Public Transportation Service Providers may use STIF Formula moneys to fund activities necessary to comply with the requirements of [insert ORS for HB 2017 and STIF Formula Fund OAR] including STIF Plan development, Advisory Committee management, contract compliance and management, and reporting. The amount of funding allocated to meeting these requirements may not exceed 5 percent of the total grant award to the Qualified Entity.

(6) Qualified Entities and Sub-Recipients of STIF Formula moneys may, upon approval of a STIF Plan, carry forward unspent funds for as long as specified in the STIF Plan approved by the Commission in order to accumulate sufficient funds for a capital project that costs more than can be funded during a single STIF funding cycle or to make bond payments on the acquisition of a Capital Asset.

(7) Qualified Entities and Sub-Recipients of STIF Formula Fund moneys may include an operating reserve of no more than 10 percent for transit operations Projects to address an unanticipated decline in STIF funding or other unanticipated issue. Any unspent operating reserve funds will be reported by the Qualified Entity or Sub-Recipient and may be carried forward in the next STIF Formula funding cycle.

Commission Role

(1) The Commission shall distribute moneys in the STIF as established by [Insert law and OAR references here].

(2) The Commission shall adopt rules that:

(a) Specify the process for review and approval of a Qualified Entity’s STIF Plan and procedures for appealing a rejection of a STIF Plan

(b) Specify Requirements for local Advisory Committees including:

(A) Membership composition

(B) Criteria that must be considered by an Advisory Committee in making funding recommendations to a Qualified Entity’s Governing Body

(C) Process by which an Advisory Committee shall review each STIF Plan and Public Transportation Service Provider’s Project proposal to the Qualified Entity

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(c) Specify the requirements for the STIF Discretionary and the STIF Intercommunity Discretionary grant programs

(3) Review and decide whether to approve STIF Plans and award STIF Formula funds, considering a recommendation from the Public Transportation Advisory Committee.

(4) Make STIF Discretionary and STIF Intercommunity Discretionary grant award decisions, considering recommendations from the Public Transportation Advisory Committee.

(5) Report to the Joint Committee on Transportation on implementation and outcomes of the STIF by Feb. 1, 2020.

Administration by the Agency

(1) The Agency, with Commission oversight, will conduct the necessary activities to manage the STIF funds and grants, including developing program policies and procedures.

(2) Activities conducted by the Agency include, and are not limited to, distribution of funds, application and review processes, agreement procedures, policy development and program oversight, protests, statewide planning and research, training, technical assistance, and reporting.

(3) Agency may combine STIF Discretionary and Intercommunity Discretionary solicitations with other similar solicitations

(4) STIF Formula, Discretionary, and Intercommunity Discretionary moneys will be accounted for separately.

(5) After the payment of the state administrative costs, the Agency will make available moneys from the STIF consistent with the legislatively-directed sub-allocations:

(a) Ninety percent by formula to Qualified Entities in a proportionate share of the tax paid within each Qualified Entities’ area, which shall be known as the STIF Formula Fund;

(b) Five percent by competitive grant process to Public Transportation Service Providers;

(c) Four percent by competitive grant process to Public Transportation Service Providers to improve public transportation between two or more communities; and

(d) One percent to ODOT to establish a statewide public transportation technical resource center to assist public transportation providers in rural areas with training, planning, and information technology, and administer the STIF Fund.

(6) Of the STIF Formula moneys:

(a) STIF Formula moneys may be distributed to the following:

(b) Counties in which no part of a Mass Transit District or Transportation District exits;

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(c) Mass Transit Districts organized under ORS 267.010 to 267.390;

(d) Transportation Districts organized under ORS 267.510 to 267.650; and

(e) Federally-recognized Indian Tribes in Oregon.

(f) If more than one Mass Transit District or Transportation District is located within a single county, the Commission shall distribute the moneys to the larger district.

(7) Each Qualified Entity with a STIF Plan approved by the Commission will receive a minimum allocation of at least $100,000 annually.

(a) The minimum allocation may increase over time based on factors defined by the Agency related to STIF revenue projections and the cost of providing transportation services and programs by the Qualified Entities with the least employee payroll tax collections.

(8) STIF Formula Fund moneys will be awarded following an application submitted to the Agency during the STIF Formula grant application period defined by the Agency. Failure by a Qualified Entity to apply for three years in a row will result in forfeiture of the available funds for the previous three years.

(9) STIF Formula moneys will be awarded contingent on the completion of all STIF Formula funding requirements:

(a) Prepare a STIF Plan consistent with the requirements specified under XXXX [reference Plan requirements in STIF Formula Rules section] and Agency policies and solicitation guidance.

(b) The STIF Plan must be reviewed and recommended for approval by the applicable Advisory Committee to the relevant Governing Body.

(bc) The Governing Body must approve the STIF pPlan prior to submittal to the Agency.

(cd) The Agency Public Transportation Advisory Committee shall make a recommendation to the Commission whether to approve a STIF Plan.

(de) The Commission will decide whether to approve a STIF Plan and award STIF Formula Program funding.

(ef) In the event the Commission rejects a proposed STIF Plan or Project contained therein, the Commission must state in writing the STIF Plan or Project being rejected and the reason for the rejection.

Accounting Requirements

(1) Recipients and Sub-Recipients will receive and disburse STIF moneys from separate governmental accounts for each of the applicable STIF Funds: STIF Formula Fund, STIF Discretionary Fund, and STIF Intercommunity Discretionary Fund. Any moneys realized as a result of interest accrued will be added to the moneys and will be reported to the Agency.

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(2) Record Retention:

(a) Recipients and Sub-Recipients will maintain all financial records for at least three years after the Agency’s final disbursement for the fiscal year; and

(b) Recipients and Sub-Recipients will maintain all records relating to Capital Assets for three years after disposition.

Reporting Requirements

(1) The purpose of reporting is to:

(a) Ensure that STIF moneys are being used for the purpose of funding and improving public transportation services in Oregon consistent with law, rules, policies, and the terms of the grant agreements;

(b) Measure the outcomes of the STIF; and

(c) Report to the Oregon State Legislature.

(2) Recipients will prepare a quarterly report to the Agency using a form or following a template at Agency’s discretion. The Agency may require additional documentation appropriate to the type of Project and deliverables specified in the grant agreement with the Recipient.

(3) For Projects funded by the STIF Formula Fund, the Qualified Entity will:

(a) Review quarterly reports and prepared by its Sub-Recipients for compliance with the terms of the applicable grant agreements;

(b) Compile Sub-Recipient reports and submit to the Agency using a form provided by the Agency no later than 45 days following the end of a quarter. The fourth quarter report may be a preliminary report, subject to adjustment after completion of the Qualified Entity’s audit.

(4) Recipients may require additional reporting information from its Sub-Recipients;

(5) Failure to submit the required reports may result in withholding of STIF Formula funds:

(a) The Agency may withhold STIF Formula funds if reports have not been submitted for a period of two consecutive quarters; and

(b) Recipients may negotiate an alternate reporting schedule with the Agency.

(6) Recipients of Capital Assets will report regularly as specified by the Agency, during the period of

useful life of the Capital Asset.

(7) In addition to the quarterly reporting requirements, Qualified Entities that receive STIF Formula Fund

funds must submit the following documentation to the Agency no later than 30 days prior to the end of

each fiscal year in which the Qualified Entity receives a percentage of STIF Formula Fund funds:

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(a) A report on any actions taken by any Public Transportation Service Provider located within the area

of a Qualified Entity to mitigate the impact of the STIF tax on passengers who reside in Llow iIncome

communitiesIndividuals;

(b) The adopted annual budget for the upcoming fiscal year, and

(c) The results of any relevant financial audits of the Qualified Entity as required by a local, state or

federal oversight agency for the purposes of statewide reporting including, but not limited to:

(A) The state financial report required under ORS 291.040;

(B) The results of any comprehensive review completed by the Federal Transit Administration; and

(C) Any information submitted by the Qualified Entity as part of the requirements of a statewide audit in

accordance with the federal Single Audit Act of 1984 (31 U.S.C. 7501 to 7507), as amended by the Single

Audit Act Amendments of 1996 (P.L. 104-156).

(8) On or before February 1, 2020, and prior to the start of each state biennium thereafter, the

Commission shall submit a report in the manner provided by ORS 192.245 to the Joint Committee on

Transportation established under XXX on the implementation and outcomes of the STIF.

Capital Asset Requirements

(1) Vehicles may be replaced using STIF funding if:

(a) Public Transportation Service Provider holds clear title to vehicle(s) being replaced. Salvaged titles will not be accepted.

(b) The vehicle(s) has met the useful life guidelines established by Agency.

(c) The vehicle has not been previously replaced.

(2) To be eligible to receive STIF moneys for expansion vehicle(s) a Public Transportation Service Provider must commit to continually use the vehicle for the approved purpose for the useful life of the vehicle(s).

(3) Recipients and Sub-recipients will inventory the Capital Assets purchased in whole or part with STIF moneys. The inventory will include a description of the Capital Asset date of purchase, purchase price, percentage of STIF moneys contributed to the purchase, the source of other funds, the authorized use, the Recipient using the Capital Asset, and the condition of the asset.

(a) If Capital Asset is a vehicle, the inventory will include size of vehicle, total number of passenger seats, total number of ADA stations, total number of seats when all ADA stations are deployed, the current mileage, and the current condition.

(b) If Capital Asset is a Reportable Capital Asset, such as a facility, building, or transit shelter, the inventory will include location of Capital Asset and current condition.

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(4) The Agency will maintain Continuing Control of the Capital Asset purchased in whole or part with STIF funding during the period of useful life established in accordance with subsection (3)(a) of this rule. The Agency may exert Continuing Control beyond the period of useful life, under its own authority.

(5) At a minimum, Recipients and Sub-Recipients will:

(a) Establish useful life standards for Capital Assets exceeding Agency’s, utilize Agency’s, or utilize useful life standards established in an Transit Asset Management Plan adopted according to Federal Transit Administration rules:

(A) Useful life may be based on standards for depreciation established by the Internal Revenue Service, Federal Transit Administration, or other standard in reference to the specific type of capital; and

(B) For vehicles, the definition of useful life will be consistent with or exceed the policy established by the Agency for vehicles financed with state and federal grant funds;

(b) Use the Agency's procedures or equivalent procedures for disposal of a Capital Asset. Agency’s Recipients must seek prior approval from the Agency to use an equivalent procedure;

(c) Retain the net proceeds from a sale of a Capital Asset to reinvest in a future STIF funded capital project or return the net proceeds to the Agency. Net proceeds are defined as the disposal proceeds less original value, less depreciation, less disposal costs. If other funds were used in the purchase, then only the proportion representing STIF participation may be retained to be used to offset a future STIF funded project or returned to the Agency;

(d) Establish procedures to ensure that a Capital Asset is maintained in safe operating condition, as appropriate;

(e) Establish procedures for transfer of a Capital Asset to an eligible Recipient, Sub-Recipient, or utilize Agency capital program for assistance;

(f) Establish procedures for lease of a Capital Asset to a Recipient or Sub-Recipient, or utilize Agency capital program for assistance;

(g) Establish insurance requirements meeting or exceeding state motor vehicle insurance requirements and adequate to protect the interests of the Capital Asset users, Recipient or Sub-Recipient, as appropriate;

(h) Ensure that facilities and real property will be used for the originally authorized purpose by use of reasonable and appropriate means, which may include a restrictive deed covenant, an easement, or other means; and

(i) Ensure that vehicles purchased in whole or in part with STIF moneys are registered with the Oregon Department of Transportation Driver and Motor Vehicle Services Division, with the Agency listed as the first security interest holder:

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(A) If the vehicle is registered in the name of a Sub-recipient receiving the equipment, and that Sub-recipient is not a Qualified Entity or Public Transportation Provider, the Qualified Entity or Public Transportation Provider will be listed on the vehicle title as the secondan security interest holder;

(B) For leased vehicles, the lease will be recorded on the vehicle title, in accordance with Agency Driver and Motor Vehicle Services Division procedures;

(C) Vehicles purchased with other local, state or federal funds in addition to STIF moneys will be titled in accordance to the requirements of the specific source. The Recipient and the Agency will be listed on the title as a security interest holder; and

(D) When requested the Recipient and Agency may release their security interest in the vehicle after the defined period of useful life is past.

(E) Agency may reposes, or re-assign vehicles(s) or otherwise recoup its investment, if: (i) Vehicle(s) found to be out of compliance with authorized purpose, (ii) Vehicle(s) no longer needed for original purpose, or (iii) Public Transportation Service Provider requests disposal of vehicle(s).

(6) The Recipient will notify the Agency of the sale or transfer of the Capital Asset purchased with STIF moneys and will report the use of proceeds, if any, from the sale to the Agency.

(7) To be eligible to receive STIF moneys for a Reportable Capital Asset, such as a transit facility, bus barn, maintenance facility, land, or administration building, a Public Transportation Service Provider must have one or more of the following in place, as applicable, prior to discretionary grant funds being awarded:

(a) Own the property upon which the Reportable Capital Asset will be located; or

(b) Have an executed lease agreement for the property location that will be in place for the useful life of the Reportable Capital Asset; or

(c) Have an executed lien on the property for the useful life of the Reportable Capital Asset; or

(d) If Public Transportation Service Provider is utilizing a local city, county or government property, they must execute an intergovernmental agreement with the property owner guaranteeing ongoing use for the duration of the useful life of the Reportable Capital Asset; or

(e) If the application is to purchase land, the Public Transportation Service Provider must already be in negotiations to purchase land.

(8) Agency may revoke, re-assign, or otherwise re-coup its investment for Reportable Capital Assets found to be out of compliance with authorized purpose.

(9) A Recipient or Sub-recipient may transfer its interest in a Capital Asset to an equivalent asset of equal or greater value if the request is processed as part of a STIF Plan approval process culminating in Commission approval following policies and procedures established by the Agency.

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Audit and Compliance Review Requirements

(1) STIF moneys will be specifically and individually addressed in the Public Transportation Provider’s annual audit.

(2) All financial audit reports shall be submitted to the Agency 30 days after the receipt of the auditor’s final report(s), or 30 days prior to the end of the state fiscal year, whichever comes first.

(3) The Agency may request additional information including, but not limited to, audits of specific Projects.

(4) Recipients and Sub-recipients of STIF funds will be subject to the Agency compliance site review process. The purpose of the compliance site review is to ensure that the Qualified Entities and Public Transportation Service Providers have appropriate, adequate internal controls and management procedures to meet the terms and conditions of grant award(s). (a) Review will cover the following topics, as applicable, program management, financial management, operations management, procurement, use and maintenance of equipment, civil rights, and Americans with Disabilities Act. (b) Qualified Entities and Public Transportation Providers will receive compliance reviews at regular intervals to be determined by Agency. Recipient Qualifications

(1) To be eligible to receive STIF moneys for a Project, a potential Recipient will meet, or have the capacity to meet, the following qualifications, as applicable to the type of Project being funded. A Recipient will:

(a) Be an entity eligible to enter into agreements;

(b) Have the legal, managerial and operational capacity to perform the Project within the agreed schedule;

(c) Not be debarred or suspended from federal grants;

(d) Maintain compliance with federal, state and local laws and regulations including, and not limited to, those pertaining to passenger transportation, civil rights, labor, insurance, safety and health, as applicable;

(e) Comply with the laws, rules and policies of this program;

(f) Properly use STIF moneys; and

(g) Perform the Project in a safe, prudent and timely manner.

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(h) If a Recipient is identified as ineligible to receive other funds offered by the state or federal government resulting from a failure to meet the criteria identified in subsection (a) through (g) of this section, the Recipient may be ineligible to receive STIF moneys.

(2) A Qualified Entity may require additional eligibility qualifications of Sub-Recipients as necessary to implement the Qualified Entity’s STIF Formula Fund or Project specified in the grant agreement.

(3) The Agency may require additional eligibility qualifications of Recipients as necessary to administer the STIF.

(4) The Recipient will confirm the eligibility of a Sub-Recipient prior to awarding STIF moneys and entering into an agreement.

(5) The Recipient will ensure that Sub-Recipients maintain eligibility while receiving STIF moneys.

(6) A Sub-Recipient found by the Recipient or Agency to be ineligible may be required to repay moneys received during the period of ineligibility.

Management of Agreements

(1) The Agency will enter into agreements with a Recipient after approval of the Recipient’s application for STIF moneys. The Agency and Recipients will comply with the terms of the agreements.

(a) The agreement will include:

(A) A description of the use of the STIF moneys;

(B) A beginning and end date;

(C) Termination and suspension clauses;

(D) Other applicable requirements of these rules or other requirements established by the Commission or Agency; and

(E) Sanctions for failure to comply with the requirements of the agreement, including and not limited to, withholding and repayment of funds for cause.

(b) Inspection of records and Projects:

(A) A Recipient, and any organization acting on the Recipient’s behalf, will permit the Agency, the Secretary of State of the State of Oregon, or their authorized representatives, upon reasonable notice, access to all data and records relating to the STIF moneys.

(B) The Agency, the Secretary of State of the State of Oregon, or their authorized representatives, upon reasonable notice, may inspect the STIF Plans and Projects financed with STIF moneys including, but not limited to, the financial records, physical premises and Capital Assets used to deliver public transportation services.

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(2) The Recipient will enter into written agreements with Sub-Recipients for projects funded with STIF moneys within 60 days of execution of agreement with the Agency.

(a) The form of the agreement will include:

(A) A statement of work to be performed in consideration of the moneys;

(B) A beginning and end date;

(C) Termination and suspension clauses;

(D) Sanctions associated with failure to perform, including but not limited to, withholding and repayment of funds for cause.

(b) The Recipient may impose additional requirements under its own authority.

(3) The Recipient will submit copies of Sub-Recipient agreements to the Agency.

(4) The Recipient will monitor the performance of the agreement with the Sub-Recipient at least quarterly, and will take action when the terms and conditions of the agreement are not being met.

(5) Sub-Recipients, and any organization acting on the Sub-Recipient’s behalf, will permit the Recipient, the Agency, the Secretary of State of the State of Oregon, or their authorized representatives, upon reasonable notice, access to all data and records relating to the transportation system supported in whole or part by the STIF, and will allow inspection of the Projects supported in whole or part by the STIF including, but not limited to, the physical premises and Capital Assets used to deliver transportation services.

(6) The Agency may terminate or suspend an agreement between itself and a Recipient, and may require repayment of funds by the Recipient, if the Recipient fails to take action against a Sub-Recipient failing to comply with OAR XX through XX.

Withholding of Funds

(1) The Agency may withhold payment of STIF moneys if:

(a) The funds are not being used in accordance with applicable laws, these rules or associated policies;

(b) All required reporting has not been submitted;

(c) There are any unresolved audit findings relating to the moneys; or

(d) There are any unresolved compliance review findings relating to the moneys;

(2) If an audit or a review of the agreement finds that STIF moneys were used improperly by the Recipient or Sub-Recipient, the Recipient will repay the STIF portion used improperly.

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Appeal Procedures

(1) The Agency will conduct a process to resolve appeals to funding decisions made by the Agency and the Commission.

(2) The Agency will distribute notice of STIF funding award decisions. Within 15 days of notification of a STIF funding decision or rejection of a STIF Plan, the applicant may file a written appeal of the decision by the Commission.

(a) The appeal will be addressed to the Commission and the Administrator of the Agency’s STIF; and

(b) The appeal will identify the STIF Plan, Project or proposed Project affected by the funding decision, the proposed Recipient or proposed Sub-Recipient affected by the decision, any arguments pertaining to the appeal, STIF Plan revisions that address the deficiencies, if any, identified by the Commission, and the requested remedy.

(3) The Commission will investigate the appeal and may choose to reconsider the proposed STIF Plan and Projects contained therein and will make a written statement of finding within 60 days of receipt of the appeal.

(4) During the initial STIF Formula Fund solicitation cycle, in the event the Commission either rejects or upholds the rejection of a STIF Plan under appeal, the affected Qualified Entity has the option of submitting a revised STIF Plan that addresses identified deficiencies if submitted within six months of the date of the rejection notice.

Redistribution of Funds

(1) For STIF Formula Fund moneys, the Agency will redistribute funds that have not been requested after three consecutive years or if a Qualified Entity fails to receive Commission approval of an STIF Plan after two solicitation cycles. The funds will be redistributed to proportionately to participating Qualified Entities.

(2) At the end of each STIF Formula Fund grant agreement period, the Agency will reconcile payments against Qualified Entity actual expenditures. If the payments are found to exceed the expenditures, the amount will be carried forward by the Qualified Entity into the next solicitation cycle.

(3) Recipients that re-pay STIF moneys to the Agency due to misuse will not be eligible to receive those re-paid funds in the following solicitation cycle. Those funds will be redistributed proportionately to all Qualified Entities.

(4) The Agency may extend a discretionary grant agreement for time at the discretion of the Agency. Any unused discretionary funds will be de-obligated at the end of the agreement period and redistributed as part of the next STIF Discretionary Fund or STIF Intercommunity Discretionary Fund solicitation cycle, as applicable.

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AGENCY XX--STIF FORMULA FUND Fund Purpose

The STIF Formula Fund is intended to improve public transportation services for current and potential future Oregon transit users. Applicant Eligibility

Qualified Entities are eligible to apply for STIF Formula Funds. Planning Requirements

(1) A Qualified Entity will develop, adopt, and regularly update a written STIF Plan for submittal to the Agency.

(2) The purpose of the STIF Plan is to establish a program of Projects for public transportation in the Qualified Entity’s area of responsibility under STIF to guide STIF Formula Fund investments.

(3) Qualified Entities that are a Mass Transit District or a Transportation District with jurisdictional boundaries within a portion of a County will conduct a STIF Plan development process and submit a STIF Plan that considers the Public Transportation Services for the area outside of district boundaries but within the remainder of the County(ies).

(4) The Governing Body of the Qualified Entity must approve its first STIF Plan no later than the time of its first application for STIF Formula funds.

(5) A STIF Plan will:

(a) Encompass at least a two year period, but it may include up to a four year longer time period with Commission approval;

(A) A Qualified Entity that receives Commission approval for a STIF Plan for a period longer than two years will be required to submit documentation to the Agency for Commission review in order to extend the grant agreement period beyond the initial two years.

(B) The Qualified Entity must submit information in a format of the Agency’s choosing documenting that the Project is being implemented on budget, performance goals are being met, and the local conditions remain consistent with those referenced in the approved STIF Plan. The Agency may request additional information, at its discretion, to determine whether the Project is being executed consistent with the terms of the grant agreement.

(b) Consider the transportation needs of people residing in or traveling into and out of the Qualified Entity’s jurisdictional boundaries or service area, as applicable;

(c) A summary of any Projects recommended for approval by an Advisory Committee; and

(d) Describe how a the proposed Projects will benefit Low Income Households and communitiesIndividuals.

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(6) STIF Plan funding proposals must, at a minimum, include the following for each Project contained therein:

(a) Project description;

(b) Anticipated Project benefits and discrete measurable outcomes;

(c) Specify the existing Local Plan(s) from which each Project was derived. Local Plans must be approved by the relevant board, council, commission, or other governing body;

(d) The proposed Recipient or Sub-Recipient of the STIF Formula funding;

(e) Proposed funding level for: each Project, each Public Transportation Service Provider (including the Qualified Entity as applicable, the total for the geographic area outside of Mass Transit District or Public Transportation District’s jurisdictional boundary but within its required STIF planning area; and the STIF Plan in total;

(g) Full budget for each proposed Project including fund sources and for unobligated fund sources, timing for such decisions, if known;

(h) If a proposed Project is part of a larger multi-phase project, the phasing plan including schedule and budget with known and potential funding sources identified;

(i) For each proposed Project, the proposal shall specify the amount of moneys from the percentage distribution that would be allocated to fund the following:

(i) Increased frequency of bus service to areas with a High Percentage of Low Income HouseholdsIndividuals;

(ii) Expansion of bus routes and bus services to serve areas with a High Percentage of Low Income HouseholdsIndividuals;

(iii) Implementation of programs to reduce fares for public transportation in communities with a High Percentage of for Low Income HouseholdsIndividuals;

(iv) Procurement of low or no emission buses for use in areas with populations of 200,000 or more;

(v) Improvement in the frequency and reliability of service between communities inside and outside of the Qualified Entity’s service area; and

(vi) Coordination between public transportation service providers to reduce fragmentation in the provision of transportation services.

(j) If the Qualified Entity received funding the previous fiscal year, the amount of that funding that was used for the purposes identified in sections XXX through XXX.

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(7) The STIF Plan is required to be reviewed by the Qualified Entity’s Advisory Committee and approved by the Qualified Entity’s Governing Body.

(8) A Local Plan from which Projects specified in a STIF Plan are derived shall include, but may not be limited to:

(a) A planning horizon of at least 4 years;

(b) An existing and future conditions analysis that includes:

(A) Current and forecast population and demographics, including locations of people who are often transit dependent, including Low Income Households, Individuals, seniors, youth, and racial and ethnic diversity;

(B) Locations of existing and potential future housing, employment, medical and social and human services, major destinations, and other locations with needs for public transportation services and programs;

(C) Inventory of current public transportation services located within, adjacent to or with the reasonable potential to connect to the local public transportation service and/or local or regional public transportation services, as applicable;

(c) Prioritized list of public transportation improvements and capital projects;

(d) Prioritized inventory of capital improvements to assist transit users in more safely reaching transit stops and transportation hubs, such as sidewalks, bike lanes, and curb ramps;

(ed) Be developed in coordination with adjacent or nearby public transportation providers, local land use jurisdictional authorities, and other partners as locally relevant;

(fd) Identify opportunities to coordinate public transportation services within and outside the county, district, or tribal area and with other agencies and areas to improve efficiency and effectiveness of service and reduce gaps in service; and

(eg) Provide the users, potential users, and the public with multiple opportunities and options for participating in the development of the Local Plan.

(9) Qualified Entities or Public Transportation Service Providers eligible for no more than the base STIF Formula allocation or Rural Public Transportation Service Providers that are unable to meet the Local Plan requirements during the first Formula Fund solicitation cycle may use a portion of their first STIF Formula allocation to improve public transportation services if they have a current approved Coordinated Human Services Public Transportation Plan and if they also use a portion of the first allocation to develop a Local Plan that is consistent with STIF Local Plan requirements. Local Plan compliance must be achieved no later than two years after the effective date of the first STIF Formula Fund grant agreement.

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(10) Qualified Entities may join together and with other agencies for mutual benefit to meet these requirements. For example, multiple counties and other transit agencies may join together to create a regional transit plan that is adopted by each agency. Assuming all Local Plan requirements are met, such a plan could be used to meet the Local Plan requirements for all participating agencies.

(11) Prior to adopting a STIF Plan, the Governing Body of the Qualified Entity will consult with and receive a recommendation on the STIF Plan from the Advisory Committee. The purpose of this consultation is to ensure that the STIF Plans reflect a coordinated regional approach to public transportation that considers the public transportation needs of people residing and traveling into and out of the geographic territory of a Qualified Entity as well as larger regional population centers and to ensure that interested parties have the opportunity to review and comment on the proposed STIF Plan.

(12) A Qualified Entity will review its STIF Plan at least biennially, and update it to reflect changes in the service area, demographics, funding levels, service availability or other factors, as applicable.

(13) STIF Plans will be submitted to the Agency by the Qualified Entity as part of the STIF Formula Fund grant application.

Qualified Entity Management and Joint Management of the STIF Formula Funds

(1) Two or more Qualified Entities may jointly manage their STIF Formula Funds. Joint Management means two or more Qualified Entities joining together to manage their STIF Formula Funds by coordination and acting independently, or by jointly managing the functions of the STIF Formula Fund.

(a) Joint management through coordination or consultation does not require an agreement between the parties.

(b) Joint management of the functions including, and not limited to, pooling STIF moneys and jointly allocating funds to Projects, requires an agreement between the Qualified Entities or between one or more Qualified Entity and one or more Public Transportation Service Provider.

(2) When two or more Qualified Entities jointly manage the functions of the STIF Formula Funds, they will:

(a) Designate through an agreement the lead Qualified Entity who will perform the functions of the STIF as defined in this rule and to assure compliance with these rules;

(b) Ensure that the Advisory Committee appointed by the lead Qualified Entity is representative of each of the participating Qualified Entities and their respective Public Transportation Service Providers and other relevant stakeholders; and

(c) Meet together for consultation and review of the jointly managed STIF Formula Fund at least once per year.

(3) One or more Qualified Entity may choose to authorize a third party to manage their STIF Formula Fund administration.

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(4) When one or more Qualified Entity’s choose to authorize a third party to manage their STIF Formula fund administration, they will:

(a) Designate through an agreement the authorized third party who will perform the functions of the STIF as defined in this rule and to assume compliance with these rules

(b) Ensure that the Advisory Committee appointed by the authorized third party is representative of each of the participating Qualified Entities and their respective Public Transportation Service Providers and other relevant stakeholders; and

(c) Meet together for consultation and review of the jointly managed STIF Formula Fund at least once per year.

Advisory Committee Requirements

(1) The Qualified Entity will appoint an Advisory Committee.

(2) The purpose of the Advisory Committee is to assist the Qualified Entity in carrying out the purposes of the STIF Formula Fund and recommenddetermine the Projects to be funded as part of Qualified Entity’s STIF Plan.

(3) The Advisory Committee will:

(a) Meet publicly to Rreview every Project proposed for inclusion in the Qualified Entities’ STIF Plan consistent with the STIF Plan or Project proposal review process;

(b) Advise and assist the Governing Body of the Qualified Entity by recommending Projects to be included in the STIF Plan;

(c) Review and advise ondetermine the distribution of Formula Fund moneys within the Qualified Entity’s area or if the Qualified entity is a Mass Transit or Public Transportation District, the distribution within and outside the district;

(d) Will consider the following criteria when identifying Projects for inclusion in the STIF Plan:

(A) Whether the Project increases the frequency of bus service to areas with a High Percentage of Low Income HouseholdsIndividuals;

(B) Whether the Project expands bus routes and bus services to serve areas with a High Percentage of Low Income HouseholdsIndividuals;

(C) Whether the Project reduces fares for public transportation in communities with a High Percentage of for Low Income HouseholdsIndividuals;

(D) Whether the Project will procure buses that are powered by natural gas or electricity for use in areas with a population of 200,000 or more;

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(E) Whether the Project will improve the frequency and reliability of service connections between communities inside and outside of the Qualified Entity’s service area;

(F) Whether the Project increases the coordination between Public Transportation Service Providers to reduce fragmentation of service and fill service gaps;

(G) Whether the Project will maintain a productive service funded by the STIF Formula funds during a previous funding cycle; and

(H) Other factors to be determined by the Commission, Agency, Qualified Entity or Advisory Committee, such as geographic equity.

(e) Advise the Qualified Entity regarding the opportunities to coordinate STIF funded Projects with other local or regional transportation programs and services to improve transportation service delivery and reduce gaps;

(f) Recommend a STIF Plan to the Governing Body of the Qualified Entity;

(g) A Governing Body may accept the STIF Plan as recommended by the Advisory Committee, return it to the Advisory Committee for modifications, or modify it for submittal to the Agency;

(h) If the Governing Body modifies the Advisory Committee’s recommended STIF Plan, they must inform the Agency and the Commission of all modifications and the justification for such changes.

(i) Adhere to Oregon Public Meetings laws, as applicable;

(j) Meet a minimum of two times per year, or as needed to advise the Qualified Entity in carrying out the purposes of the STIF Formula Fund;

(k) Be guided by written bylaws that include, but are not limited to, name and purpose, committee membership criteria, appointment process, terms of office for the committee members, procedures of the committee, member duties, meeting schedule, public noticing and engagement processes, STIF Plan development process with Public Transportation Service providers, and decision-making criteria.

(4) The Advisory Committee shall review proposed Projects and STIF Plans and may propose any changes to the policies or practices of the Governing Body of the Qualified Entity that the Advisory Committee considers necessary to ensure that:

(a) A Qualified Entity or Public Transportation Service Provider that has received STIF Formula funding has applied the moneys received in accordance with and for the purposes described in the STIF Plan or Project proposal; or

(b) A STIF Plan or Project proposal submitted by a Qualified Entity or Public Transportation Service Provider does not fragment the provision of public transportation services.

(5) The terms of office for the Advisory Committee members are at the discretion of the Qualified Entity.

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(6) The Qualified Entity will notify the Agency of changes in the Advisory Committee membership as part of their application.

(7) Copies of Advisory Committee bylaws, minutes and meeting notices will be published on the Qualified Entity’s website.

(8) The composition of an Advisory Committee shall include:

(a) The Advisory Committee of a Qualified Entity that is an Indian Tribe will be composed of at least three members; and

(b) To be qualified to serve on an Advisory Committee of an Indian Tribe, an individual must be able to represent the public transportation needs of individuals served by the Indian Tribe.

(c) The Advisory Committee of a Transportation District or county will be composed of at least five members and the Advisory Committee of a Mass Transit District will be composed of at least seven members, which meet the qualifications of paragraphs X through X of this rule. Advisory Committees may be larger in order to have effective stakeholder representation.

(d) To be qualified to serve on the Advisory Committee for a Qualified Entity that is a Transportation or Mass Transit District or county, an individual will:

(i) Reside or work within the geographic boundary for which the Qualified Entity receives fundingdistrict or county;

(ii) Be knowledgeable about the public transportation needs of residents or employees located within or traveling to and or from the Transportation or Mass Transit District or county; and

(iii) Be a person who represents one or more of the following:

• local governments, including land use planners

• Public Transportation Service Providers,

• non-profit public transportation service providers,

• neighboring public transportation service providers,

• employers,

• social and human service providers,

• transit users

• transit dependent users that depend on transit for accomplishing daily activities,

• seniors,

• people with disabilities,

• Llow Iincome Iindividuals,

• social equity advocates,

• environmental advocates,

• bicycle and pedestrian advocates,

• people with limited-English proficiency,

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• educational institutions,

• major destinations

(e) At a minimum, an Advisory Committee for a Mass Transit District, Transportation District, and County Qualified Entity must include people who represent:

• Low Income HouseholdsIndividuals,

• seniors and/or people with disabilities,

• Public Transportation Service Providers and/or non-profit public transportation service

providers

(f) A Qualified entity that is a Mass Transit District or a Transportation District will include Advisory Committee members from both within and outside district boundaries.

(g) The Qualified Entity will seek to appoint an Advisory Committee composed of members that represent diverse interests, perspectives, geography, and the population demographics of the area.

(h) A Qualified Entity may use another standing advisory committee or combine committees to meet the requirements of these rules as long as that committee also meets all of the committee requirements contained herein.

Application Procedures

(1) The Agency will inform each Qualified Entity of the estimated allocation of STIF Formula Fund moneys for which they are eligible.

(2) To apply for STIF Formula Fund moneys, the Qualified Entity will submit a completed application on forms supplied by the Agency.

(3) The information required in the application will be sufficient to ensure that the requirements of these rules are met.

(4) An authorized official of the Qualified Entity will sign the application.

(5) If a Qualified Entity fails to apply for STIF Formula Fund moneys or their STIF Plan is rejected by the Commission, the moneys will remain available to the Qualified Entity for a period not to exceed three years.

(6) STIF Formula funds held by the Agency due to failure to apply will not accrue interest.

Application Review

(1) The Agency will review and approve Formula Fund applications:

(a) The Agency will consider material submitted in the application as the basis for application approval; and

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(b) The Agency may ask for further information or clarification.

(2) The Agency may disapprove the application and, if disapproved, will inform the Qualified Entity of the reason for disapproval.

(a) Reasons for disapproval may include, and are not limited to, the following:

(A) No Advisory Committee or improper membership;

(B) Advisory Committee failure to meet and confer;

(C) Qualified Entity failure to confer with the Advisory Committee;

(D) A Recipient that is ineligible;

(E) For STIF Formula Fund applications by Mass Transit and Transportation Districts, disproportionate allocation inside and outside district boundaries;

(F) Agency disapproved STIF Formula Fund applications may be improved and resubmitted by the Qualified Entity;

(G) The Agency will submit each Qualified Entity’s STIF Plan to the Public Transportation Advisory Committee for review and recommendation to the Commission.

(3) The Public Transportation Advisory Committee, when making their recommendation and the Commission when making its decision on a STIF Plan may consider the following:

(a) The degree to whichWhether the STIF Plan increases the frequency of service in communities with a high percentage of Low Income Households;

(b) Whether the STIF Plan improves service or reduces fares for communities with a high percentage of Low Income Households; Low Income Individuals

(c) Whether the STIF Plan expands bus routes and services to reach communities with a high percentage of low income households;.

(bd) For STIF Plans that would procure buses for use in areas with a population of 200,000 or more, the extent to which the proposed buses are powered by low or no emission fuels;

(ec) Whether the STIF Plan includes Projects that will improve the frequency and reliability of service connections between communities inside and outside of the Qualified Entity’s service area;

(fd) Whether the STIF Plan includes Projects that improve the Coordination between Public Transportation Service Providers to reduce fragmentation of service and fill service gaps;

(ge) Whether the STIF Plan includes Projects that will maintain a productive transportation service previously funded by STIF Formula Funds;

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(f) Other factors to be determined by the Commission prior to initiation of a STIF Formula Fund solicitation, such as geographic equity.

Disbursement of Formula Funds

(1) Upon approval of the Qualified Entity’s application and STIF Plan for the Formula Fund moneys, the Agency will enter into an agreement with the Qualified Entity.

(2) After the agreement is signed by both parties and upon determination there is sufficient revenue from the new STIF payroll tax sufficient to fund the STIF Formula Fund grants, as determined by the Legislative Fiscal Office and the Chief Financial Officer, the Agency will make the first quarterly disbursement.

(3) The Agency reserves the right to adjust quarterly payments proportionately if there are insufficient funds.

Qualified Entity Sub-Allocation and Distribution of Formula Funds

(1) Qualified Entities are responsible for working collaboratively with Public Transportation Service Providers and other potential Sub-Recipients, as relevant, to develop a method for sub-allocating Formula Funds to Public Transportation Service Providers.

(2) The sub-allocation method will be proportionate to the amount of employee payroll revenue generated within the geographic territory of each Public Transportation Service Provider, to the extent possible, using the best available data.

(3) The Qualified Entity’s sub-allocation estimate will be a starting point for local STIF planning and funding prioritization processes. The sub-allocation is not an entitlement and other decision criteria may affect the prioritization of Projects.

(4) Funding decisions will be made by the Commission considering recommendations from the Advisory Committee, Governing Body, and Public Transportation Advisory Committee.

(5) A Qualified Entity that is a Mass Transit or Public Transportation District will:

(a) Disburse funding for Projects both within its boundaries (in-district) and outside its boundaries in the surrounding county(ies) (out-of-district);

(b) Work collaboratively with Public Transportation Service Providers and other potential Sub-Recipients Develop to develop a method for sub-allocating Formula Fund moneys to Public Transportation Service Providers located outside of the district;

(c) Estimate Formula Fund sub-allocations to Public Transportation Service Providers proportionate to the amount of employee payroll revenue generated outside of the Qualified Entity’s district;

(d) Consider the Advisory Committee’s recommendation for prioritization of in-district and out-of-district Projects in developing the STIF Plan;

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(e) Report the allocation method, process for developing the method, and proposed distribution of STIF Formula funds in its STIF Formula Fund application to the Agency.

(6) A Qualified Entity that is a County will:

(a) Disburse funding for Projects throughout the County;

(b) Work collaboratively with Public Transportation Service Providers and other potential Sub-Recipients Develop to develop a method for allocating Formula Fund moneys generated within the County;

(c) Estimate Formula Fund sub-allocations to Public Transportation Service Providers proportionate to the amount of employee payroll revenue generated within their jurisdictional boundaries or service area, as relevant;

(d) Consider the Advisory Committee’s recommendation for prioritization of all Projects in developing the STIF Plan;

(e) Report the allocation method, process for developing the method, and proposed distribution of STIF Formula funds in its STIF Formula Fund application to the Agency.

(7) Qualified Entities and Public Transportation Service Providers may contract with Non-profit or private transportation vendors to meet STIF Plan and Project objectives.

(8) The Qualified Entity is not responsible for filling any shortfalls or delays in funding that are due to insufficient STIF Formula funding revenues or for any other reason beyond their direct control.

Qualified Entity Withdrawal from STIF Formula Funding

(1) Qualified Entities eligible to receive STIF Formula moneys may voluntarily withdraw from eligibility:

(a) A Qualified Entity intending to withdraw its eligibility will notify the Agency of the decision to withdraw and the reason for withdrawal;

(b) A Qualified Entity may rescind its withdrawal at any time; and

(c) After a 3-year period, a Qualified Entity that has withdrawn from eligibility will not be included in the STIF Formula allocation calculation and remaining previous allocations for which the entity has not applied will be forfeited.

(2) If a Qualified Entity that has withdrawn eligibility after a 3-year period and been excluded from STIF formula allocation calculations elects to rescind its withdrawal, they will not be eligible to receive distributions until the next allocation cycle.

(3) Failure to apply for STIF Formula Fund for 3 or more consecutive years will be considered withdrawal from eligibility to receive STIF funds.

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(4) Accumulation of STIF Formula Fund moneys allocated to a Qualified Entity that has withdrawn will not exceed the total of 3 consecutive years dating from the year of withdrawal, or from the first year of failure to apply for Formula Fund moneys.

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DIVISION XX: STIF DISCRETIONARY FUNDS

General Information

The information in this section (DIVISION XX) applies to both the STIF Discretionary and the STIF Intercommunity Discretionary funds. It contains general information that supplements the General Information in Division XX. [NOTE: The section may be further integrated with STIF General Information Rules to improve ease of use.]

Applicant Eligibility

Public Transportation Service Providers are eligible applicants for STIF Discretionary and STIF Intercommunity Discretionary funds.

Application Submission Periods

(1) The Agency will announce periods for submitting applications for funding.

(2) Project applications will be reviewed for compliance with the requirements in OAR XXXXX

(3) Applications not funded may be resubmitted during subsequent application submission periods.

Application Requirements

(1) Applicants interested in receiving STIF discretionary funds must submit a written application to the Agency.

(2) The application must be in a format prescribed by the Agency and contain such information as the Agency may require, including the expected outcomes from the proposed Project for each of the considerations as prescribed in [reference project selection section], and for capital construction projects, documentation to validate the Project schedule and costs.

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DIVISION XX: STIF DISCRETIONARY FUND

Fund Purpose

The STIF Discretionary Fund is intended to provide a flexible source to improve public transportation in Oregon. It is not to be relied upon as an ongoing source of operations funding.

Project Eligibility

Eligible projects include, but are not limited to; capital projects such as vehicles, facilities, equipment, and technology, as well as mobility management, planning, and research.

Match

Agency will require at least a 10 percent local match for all eligible projects.

Project Selection

(1) Commission will determine its investment priorities and decision-making criteria with input from the Public Transportation Advisory Committee prior to Discretionary solicitations. In determining the priorities and decision criteria for the solicitation, the Commission may consider whether the Project:

(A) Improves public transportation service to low income households.

(B) Is consistent with Oregon Public Transportation Plan goals, policies, and implementation plans.

(a) Is the result of integrated public transportation planning where two or more agencies planned or partnered to develop the Project proposal.

(b) Proposes technological innovations that improve efficiencies and promote a seamless and easy to use public transportation system.

(c) Advances Agency climate change goals and policies.

(C) Supports other considerations, including, but not limited to a larger local match than the minimum required and geographic equity.

(2) The Commission will select projects to be funded considering a recommendation from the Public Transportation Advisory Committee.

(3) The Commission may solicit additional recommendations from Area Commissions on Transportation.

(4) On behalf of the Commission, the Agency will solicit and provide recommendations from the committees and entities in sections X and X, as appropriate.

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(5) The recommendation will include evaluation results and a list of Projects to be funded with STIF discretionary funds in priority order along with a reasonable number of alternate Projects in priority order.

DIVISION XX: STIF INTERCOMMUNITY DISCRETIONARY FUND

Fund Purpose

The STIF Intercommunity Discretionary Fund is for improving connections between communities, and between communities and other key destinations important for a connected statewide transit network.

Project Eligibility

Eligible projects include, but are not limited to: capital projects such as vehicles, facilities, equipment, and technology as well as mobility management, planning, research, and operations.

Project Selection

(1) Commission will determine its investment priorities and decision-making criteria with input from the Public Transportation Advisory Committee prior to Intercommunity Discretionary solicitations. In determining the priorities and decision criteria for the solicitation, the Commission may consider whether the Project:

(A) Improves public transportation service to low income households.

(B) Reflects improved coordination between Public Transportation Service Providers and reduces fragmentation public transportation services.

(C) Is consistent with Oregon Public Transportation Plan goals, policies, and implementation plans.

(a) Is the result of integrated public transportation planning where two or more agencies planned or partnered to develop and the Project proposal.

(b) Proposes technological innovations that improve efficiencies and promote a seamless and easy to use statewide public transportation system.

(c) Advances Agency climate change goals and policies.

(D) Supports other considerations, including, but not limited to level of applicant and partner agency local funding commitments, presence of a sustainable funding plan, and geographic equity.

(2) The Commission will select projects to be funded considering a recommendation from the Public Transportation Advisory Committee.

(3) On behalf of the Commission, the Agency will solicit and provide recommendations from the Public Transportation Advisory Committee.

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(4) The recommendation will include the evaluation results and a list of Projects to be funded with STIF Intercommunity Discretionary funds in priority order along with a reasonable number of alternate Projects in priority order.