AUTHORITY: Implementing Article III of the Downstate Public Transportation Act (Ill. Rev. Stat. 1981, ch. 1112/3, pars. 681 et seq.) and authorized by Section 2 of Article III of the Downstate Public Transportation Act (Ill. Rev. Stat. 1981, ch. 1112/3, par. 690).
SOURCE: Adopted at 4 Ill. Reg. 16 p. 127, effective April 4, 1980; codified at 7 Ill. Reg. 16031.
SUBPART A: GENERAL
Section 651.101 Introduction
Section 313 of the Federal Public Transportation Act of (42 U.S.C. 1614) amended the Urban Mass Transportation Act of 1964 (49 U.S.C. 1601 et seq.) by adding Section 18, entitled "Formula Grant Program for Areas Other than Urbanized". Section 18 authorizes the establishment of a new federal grant program to provide federal funds for operating and capital assistance for public transportation services in rural and small urban areas. The Surface Transportation Assistance Act provides for federal funding of the Section 18 Program for a period of four (4) years beginning in federal fiscal year 1979. No guarantees of additional federal funding beyond this period can be made, although many federally funded programs of initially limited duration are later extended.
Section 651.102 Authority and Applicability
a) These regulations are adopted and issued pursuant to the authority of the Illinois Department of Transportation as specified by the Downstate Public Transportation Act, as amended.
b) These regulations apply to all participants with "new programs" (as hereinafter defined) eligible to receive grant funds available under the Formula Grant Program for Areas Other Than Urbanized provided under Section 18 of the Federal Urban Mass Transportation Act of 1964, as amended.
c) These regulations are subject to and governed by federal administrative rules to be promulgated by the U.S. Department of Transportation Federal Highway Administration.
Section 651.103 Definitions
Unless the context clearly requires otherwise, the following words and phrases as used in these regulations shall have the meanings ascribed to them in the following sections.
"Act" means the Downstate Public Transportation Act (Ill. Rev. Stat. 1981, ch. 1112/3, par. 661 et seq.).
"Apportioned funds" means 75% of the funds appropriated by the General Assembly in any fiscal year for expenditure by the Department for operating assistance for new programs which the Department apportions among the non-urbanized area transportation assistance regions pursuant to Section 651.104 herein.
"Department" means the Illinois Department of Transportation, Division of Public Transportation.
"Discretionary funds" means 25% of the funds appropriated by the General Assembly in any fiscal year for expenditure by the Department for operating and capital assistance for new programs.
"Eligible capital expenses" means any expenditure of monies for capital items necessary for the provision of public transportation services, including expenditures for:
the purchase of vehicles for use in public transportation service;
the purchase of maintenance and support equipment directly related to the support of such service operations (e.g. maintenance tools, fareboxes, wheelchair lifts, ramps, radios, etc.);
the purchase or construction of fixed facilities.
"Eligible operating expenses" means eligible operating expenses as defined in Section 1.04 of Article III of the Act.
"FHWA" means the Federal Highway Administration of the U.S. Department of Transportation.
"Fiscal year" means the fiscal year of the State of Illinois for the period July 1 through June 30.
"New programs" means:
those public transportation programs operated by participants which did not receive financial assistance under the Act during fiscal year 1979 or did not receive demonstration project funds from the U.S. Department of Transportation during fiscal year 1979; and
those public transportation programs operating outside the geographic boundaries of service areas (as approved by the Department or by the U.S. Department of Transportation in fiscal year 1979) of those participants which received financial assistance under the Act during fiscal year 1979 or which received demonstration project funds from the U.S. Department of Transportation during fiscal year 1979.
"Nonurbanized area transportation assistance regions" means those regions established by the Department for apportioning 75% of the total Section 18 funds appropriated by the General Assembly for new programs as provided under Article III, Section 4 of Act and Section 651.103 herein.
"Operating deficits" means operating deficits as defined in Article III, Section 1.02 of the Act.
"Operating revenue" means:
revenues from nonreimbursable fares, reduced fare reimbursements, rentals of properties, advertising, and any other amounts collected or received in the process of providing public transportation under the Section 18 program which, under standard accounting practices, are properly classified as operating revenue or operating income attributable to providing public transportation; and
any unrestricted Federal, State or local funds received as a result of providing public transportation services funded under the Section 18 program which are not used to match grant funds awarded under the Section 18 program.
"Participant" means participant as defined in Article III, Section 1.02 of the Act, except that only participants providing transportation services under new programs will be governed by these regulations. For the purpose of determining the boundaries of "cities over 20,000" as used in Article III, Section 1.02 of the Act, the Department will consider two cities that, at any point, share coterminous boundaries and whose populations together exceed 20,000 in number to be eligible participants for the purposes of receiving assistance from the Section 18 program and will accept joint applications from such cities.
"Program of proposed expenditures" means:
the services to be provided and the budget for the provision of those services both as approved by the Department under the Section 18 program; or
the project budget for the purchase of capital items as approved by the Department under the Section 18 program.
"Public Transportation" means public transportation as defined in Article III, Section 1.05 of the Act. In determining whether a participant's proposed program should be classified as public transportation, the Department will consider all transportation services included in an application as one program. Although some client specific transportation services may be included as part of a proposed program, some portion of transportation services to be funded under any single program must be available to the general public or groups of the general public with special needs (such as the elderly and handicapped) in order for that program, as a whole, to be classified as public transportation. For programs that include subsidized taxi service, rides shared by two or more passengers must be allowed and encouraged in order for taxi service to be classified as public transportation. FHWA will review all proposed service provided under a participant's program to determine the eligibility of the service for funding under Section 18, and FHWA's decision as to the eligibility of the proposed service will be final.
"Section 18" means Section 18 of the Urban Mass Transportation Act of 1974, as amended.
"State" means the State of Illinois.
Section 651.104 Nonurbanized Area Transportation Assistance Regions
In accordance with Article III, Section 4 of the Act, the Department hereby establishes regions among which the Department shall apportion 75% of the total Section 18 funds appropriated by the General Assembly in any fiscal year for making operating assistance grants for new programs. These regions, which were determined on the basis of nonurbanized area population, square miles of land, and percentage of transportation disadvantaged, are as follows:
COUNTIES:
|
Region 1 |
Region 2 |
Region 3 |
|
|
||
|
Boone |
Bureau |
Adams |
|
|
||
|
Carroll |
Ford |
Brown |
|
|
||
|
DeKalb |
Henry |
Calhoun |
|
|
||
|
Grundy |
LaSalle |
Cass |
|
|
||
|
Kankakee |
Livingston |
Christian |
|
|
||
|
Kendall |
Marshall |
Fulton |
|
|
||
|
JoDaviess |
McLean |
Greene |
|
|
||
|
Lee |
Mercer |
Hancock |
|
|
||
|
Ogle |
Peoria |
Henderson |
|
|
||
|
Stephenson |
Putnam |
Jersey |
|
|
||
|
Whiteside |
Rock Island |
Knox |
|
|
||
|
Winnebago |
Stark |
Logan |
|
|
||
|
|
Tazewell |
McDonough |
|
|
||
|
|
Woodford |
Mason |
|
|
||
|
|
|
MaCoupin |
|
|
||
|
|
|
Menard |
|
|
||
|
|
|
Montgomery |
|
|
||
|
|
|
Morgan |
|
|
||
|
|
|
Pike |
|
|
||
|
|
|
Sangamon |
|
|
||
|
|
|
Scott |
|
|
||
|
|
|
Schuyler |
|
|
||
|
|
|
Warren |
|
|
||
|
Region 4 |
Region 5 |
|
|
|
||
|
Champaign |
Alexander |
|
|
|
||
|
Clay |
Bond |
|
|
|
||
|
Clark |
Clinton |
|
|
|
||
|
Coles |
Effingham |
|
|
|
||
|
Crawford |
Fayette |
|
|
|
||
|
Cumberland |
Frankling |
|
|
|
||
|
DeWitt |
Gallatin |
|
|
|
||
|
Douglas |
Hamilton |
|
|
|
||
|
Edgar |
Jackson |
|
|
|
||
|
Edwards |
Jefferson |
|
|
|
||
|
Iroquois |
Marion |
|
|
|
||
|
Jasper |
Massac |
|
|
|
||
|
Lawrence |
Johnson |
|
|
|
||
|
Macon |
Pulaski |
|
|
|
||
|
Moultrie |
Perry |
|
|
|
||
|
Richland |
Randolph |
|
|
|
||
|
Shelby |
Saline |
|
|
|
||
|
Piatt |
Union |
|
|
|
||
|
Vermillion |
Washington |
|
|
|
||
|
Wabash |
Williamson |
|
|
|
||
|
Wayne |
|
|
|
|
||
|
White |
|
|
Section 651.105 Nonurbanized Area Regional Apportionments
a) Article III, Section 4 of the Act requires that apportionments be made among the established regions on the basis of three regional transportation indicators-nonurbanized area population, square miles of land, and percentage of transportation disadvantaged. The regional transportation indicators are based upon the following:
1) The indicator for population is the population of each region exclusive of the population in the urbanized areas of that region.
2) The indicator for square miles of land is the square miles of each region exclusive of the square miles of the urbanized areas of that region.
3) The indicator for transportation disadvantaged is the number of transportation disadvantaged in each region exclusive of those transportation disadvantaged in the urbanized areas of that region and is based on three separate factors:
A) The number of families below the poverty level in each region exclusive of the urbanized areas of that region.
B) The number of people 65 and over in each county exclusive of the urbanized areas of that region.
C) The estimated number of disabled in each region exclusive of the urbanized areas of that region.
b) The sum of the three regional transportation indicators (population, square miles, and transportation disadvantaged) for each region is divided by the total sum of the three indicators for all regions to yield a regional apportionment percentage for each region. Each regional percentage is applied to the total amount of Section 18 funds appropriated by the General Assembly in the current fiscal year for operating assistance grants for new programs in order to determine the apportionment of funds for each region. In order to allow for a fair and equitable distribution of available funds to all nonurbanized areas of the State, the Department determined the boundaries of each region so as to insure that the regional apportionment percentages are approximately equal (i.e. approximately 20%).
Section 651.106 Use of Discretionary Funds
Discretionary funds will be used for capital and operating assistance grants to participants in any region under the circumstances described in Sections 651.303 and 651.306 herein. The comparison and selection of proposed programs to receive discretionary funds shall be based upon the same evaluation criteria listed in Sections 651.301 and 651.304 herein.
SUBPART B: APPLICATION REQUIREMENTS
Section 651.201 Filing Deadlines for Operating Assistance Grants
The following dates are established for the filing by participants of Section 18 operating assistance applications with the Department:
a) Fiscal Year 1980
1) Preliminary applications for operating assistance for deficits incurred in the fourth quarter of fiscal year 1980 must be received by the Department within thirty (30) days after the promulgation of these regulations.
2) Formal applications for operating assistance for deficits incurred in the fourth quarter of fiscal year 1980 must be received by the Department within sixty (60) days after the promulgation of these regulations.
b) Fiscal Year 1981 and Thereafter
1) Preliminary applications for operating assistance grants for any fiscal year after fiscal year 1980 must be received by the Department no later than April 1 of the year immediately preceding such fiscal year.
2) Formal applications for operating assistance grants for any fiscal year after fiscal year 1980 must be received by the Department no later than July 1, the first day of such fiscal year.
c) Combined Applications for Fiscal Years 1980 and 1981.
Those applicants who wish to submit an application covering the period April 1, 1980 to June 30, 1981 may do so, provided the level of assistance requested for the period covering April 1, 1980 to June 30, 1980 is identified separately from the level of assistance requested for the period July 1, 1980 to June 30, 1981 within the combined application. The applications are due according to the application filing dates established for fiscal year 1980.
Section 651.202 Contents of Operating Assistance Applications
a) Preliminary operating assistance applications shall contain the following information:
1) The name of the participant and the name and address of the contact person for the participant.
2) A brief description of the proposed transportation program including the geographic area to be served by the program, the number and type of vehicles that will be operated and the name of the proposed transit provider(s).
3) An estimate of the deficit expected to be incurred in the operation of the program, and the amount of Section 18 funds that will be requested in the formal application.
4) The sources of funding expected to provide the matching funds required under the Section 18 program.
b) Formal operating assistance applications shall contain the following information:
1) A cover letter from the participant to the Department requesting Section 18 operating assistance funds.
2) A board resolution and certification by the participant that it will supply or cause to be supplied funds which, together with funds made available under the Section 18 program, will be sufficient to cover the cost of operating the proposed program.
3) Applications containing proposals to provide transportation service to an area through a transportation provider other than the participant must contain copies of purchase of service agreements entered into by the participant and the provider(s). Purchase of service agreements must contain the following information:
A) A description of the service to be provided, including the service area covered under the agreement.
B) The amount to be paid for the purchase of service under the agreement.
C) A certified copy of the resolution of the governing board of each party authorizing the execution of the agreement.
D) An explanation of the method used by the transportation provider to allocate expenses and revenues to the transportation service provided under the purchase of service agreement. Transportation providers which have entered into a purchase of service agreement with a participant are subject to both pre-grant and post-grant award audits by the State to determine the acceptability of the method for allocating expenses and revenues to the transportation service provided under the purchase of service agreement and to determine the adequacy of the transportation provider's record-keeping system.
4) Such other information as is required in the application forms provided by the Department, including information that is necessary for the Department to evaluate a proposed program based on the criteria provided in Section 651.301 herein and other documentation and assurances required by The Federal Highway Administration (FHWA).
Section 651.203 Filing Deadlines for Capital Assistance Grants
Applications for capital assistance under the Section 18 program must be filed by participants according to dates established in Section 651.201 herein.
Section 651.204 Contents of Capital Assistance Applications
a) Preliminary capital assistance applications shall contain the following information:
1) The name of the participant and the name and address of the contact person for the participant.
2) A brief description of the type of and number of vehicles, equipment or fixed facilities to be purchased or constructed and the name of the transit provider that will operate the vehicles or fixed facilities.
3) A description of how the need for the vehicles, equipment, or fixed facilities was determined.
4) An estimate of the cost of the vehicles, equipment, or fixed facilities.
5) The sources of funding expected to provide the matching funds required under the Section 18 program.
b) Formal capital assistance applications shall contain the following information:
1) A cover letter from the participant to the Department requesting Section 18 capital assistance funds.
2) A detailed description of the capital items for which capital grant assistance is being requested.
3) A detailed proposed project budget.
4) A board resolution and certification by the participant that it will supply or cause to be supplied funds which, together with funds made available under the Section 18 program, will be sufficient to meet the total cost of the capital items described.
5) Such other information as is required in the application forms provided by the Department, including information that is necessary for the Department to evaluate a proposed program based on the criteria provided in Section 651.304 and other documentation and assurances required by FHWA.
Section 651.205 Joint Applications
a) The unique nature of public transportation needs of small urban and rural areas may lead to the formation of proposed programs that extend beyond the geographic boundaries of any single participant. Therefore, in cases where two participants are located within one county, or where a program to serve two or more adjoining counties is being proposed, the participants involved may submit a joint application. Any participant who wishes to submit an application that includes the provision of transportation services outside its geographic boundaries may do so provided that the assurances submitted by the participant as part of the application for Section 18 assistance cover the entire service area proposed in the application.
b) All participants included under a joint application shall agree upon and designate one participant to be the primary participant to be responsible for the following functions:
1) Receiving and expending Section 18 funds granted under the joint application.
2) Preparing and submitting quarterly reimbursement requests to the Department for eligible operating or capital expenses for the approved program.
3) Submitting such information on program performance as the Department may require.
4) Maintaining adequate records, carrying out all grant administration activities, and submitting required audits for the approved programs.
c) Joint applications filed with the Department must contain copies of agreements between the primary participant and each other participant. Each agreement must contain the following information:
1) A description of the service to be provided within the service area of each participant.
2) The amount that each participant will contribute to the program to be funded under the joint application.
3) A designation of the primary participant as provided in Subparagraph (b) of this Section.
4) A certified copy of the resolution passed by each participant's governing board authorizing the participant to execute the agreement.
5) Copies of all the assurances required in the Department's application forms signed by each participant. The assurances given by an individual participant need only be for that portion of the proposed program that is to provide service within the individual participant's service area.
Section 651.206 Place of Filing
All Submittals required under these regulations shall be filed with the Department at the following address:
Nonurbanized Area Grants Section
Illinois Department of Transportation
Division of Public Transportation
300 North State Street
Chicago, Illinois 60610
Phone: (312) 793-2111
SUBPART C: REVIEW AND APPROVAL
Section 651.301 Criteria Considered in Review of Operating Assistance Applications
The Department will consider the following criteria in evaluating applications for operating assistance and comparing and selecting for Section 18 funding proposed programs (in whole or in part) from within a region.
a) Level of need for the proposed transportation program and the capability of the proposed program for meeting the level of need, based upon:
1) The adequacy of planning activities performed to substantiate the need for the proposed service and its capability of meeting those needs as demonstrated by:
A) The formal planning process followed in developing the plan for the proposed service, including:
i) involvement of user groups, local and regional planning agencies, human services agencies, and existing transit providers in the development of the plan of the proposed program
ii) use of existing local or regional planning documents in the development of the plan for the proposed program (for example, comprehensive development plans)
B) Assessment made of existing transportation service and equipment currently available in the participant's service area, based upon:
i) Inventories of public and private agencies currently operating transportation services (including social service agencies, taxi operators, and school bus operators)
ii) surveys of the general population and of special user groups (such as the elderly and handicapped) to solicit information as to major travel destinations and current transit service needs
2) The level of local support for the proposed program as demonstrated by letters of support and minutes of public meetings and of other meetings of local agencies.
b) Managerial and Operating Capabilities
The Department will review each application to assess the ability of the participant and proposed transit provider(s) (if different from the participant) to provide the transportation service outlined in the proposed program. In making this assessment the Department will consider the following capabilities of the proposed transit provider(s):
1) The ability to dispatch and operate the proposed service.
2) The ability to maintain equipment and vehicles to be used in providing transportation service.
3) The ability to train the drivers of vehicles to handle the special transportation needs of elderly and handicapped.
4) The ability to complete and submit the forms and information as required by the Department.
5) The past performance of a participant or proposed transit provider as it relates to the scope and nature of the proposed program.
c) Coordination Efforts
The Department will review proposed transportation programs to determine the amount of pooling of equipment, technical skill, and financial resources available in the community. For example, the Department will evaluate efforts by the participant to utilize existing vehicles owned by private transit providers or equipment owned by public or private nonprofit agencies purchased under other Federal and State funded transportation and social service programs. The degree of support and cooperation from other Federal and State agencies and the extent of participation by user groups, social service agencies, planning agencies, and existing private and public transit service providers in the planning and implementation of the proposed program will be considered when evaluating the level of coordination to be achieved in the proposed program.
d) Continuation of Funding from Sources Previously Providing Assistance for Transit Service
Section 18 grant funds are intended to supplement, rather than to replace, funding sources for small urban and rural transportation programs. In evaluating applications the Department will consider the level of operating assistance provided to public transportation programs within the participant's service area from other funding sources in previous years and available for the current fiscal year. Specifically, the Department will assess a participant's intention to maximize the level of operating assistance for transit service in the participant's service area from other funding sources.
e) Potential User Groups
Proposed programs will be evaluated based on the number of potential riders to be served and on the ability to meet the unmet special transit needs of the elderly and handicapped in areas.
f) Section 22 of the UMTA Act
Section 22 of the Urban Mass Transportation Act of 1964, as amended, entitled "Intercity Bus Service", authorizes a federal grant program for the specific purpose of providing assistance to intercity bus operations. The existence of the Section 22 program will be a factor considered by the Department when reviewing Section 18 applications which propose transportation services eligible for Section 22 grant assistance.
Section 651.302 Approval of Operating Assistance Grant Program of Proposed Expenditures
a) After the comparison and selection of programs (in whole or in part) to receive Section 18 operating assistance based on the criteria in Section 651.301 herein, the Department will review the proposed budget of each selected participant's proposed program to assess the reasonableness of the relationship between the level of proposed services and the projected costs of such services. As part of this review, the Department will consider:
1) The comparison of the participant's projected costs for proposed services with the actual costs of providing similar transportation services in comparable nonurbanized areas;
2) The effect of any proposed expansion of transportation services above the previously approved Section 18 program of proposed expenditures, upon overall operating ratios, including but not limited to the following:
A) Passenger per vehicle mile.
B) Fare box revenue per vehicle mile.
C) Deficit per vehicle mile.
D) Operating expense per vehicle mile.
3) Where no expansion of service is proposed, the comparison of the proposed budget with the program budget approved for the previous fiscal year so as to determine the cause of any rapid escalation in the cost of providing transportation services under the proposed program.
b) If after the Department has completed the review as provided in this Section and has determined that the participant's proposed budget is unreasonably high in relation to the proposed services to be provided, the Department will work with the participant to modify the proposed budget to achieve a reasonable level. As a result of this process, particular line items of a participant's proposed budget will be increased or decreased and a final program of proposed expenditures will be approved by the Department.
Section 651.303 Amounts of and Limits on Operating Assistance Grants
The Department is authorized under the Act to make operating assistance grants to any participant for an amount not to exceed 50% of the project operating deficit from the participant's approved program of proposed expenditures. The Department will make grants from apportioned funds for 50% of such deficits; however, if 50% of the total approved projected operating deficits of all participants from a region exceeds the total amount of funds apportioned to that region, then the Department will make grants from apportioned funds for less than 50% of such deficits to participants in that region. In such regions, available discretionary funds can be used by the Department for the purpose of supplementing a grant to be made to a participant from apportioned funds so that the total Section 18 operating assistance grant to such participant is closer to the full 50% of the participant's approved projected operating deficit.
Section 651.304 Criteria Considered in Review of Capital Assistance Applications
In addition to the criteria listed in Section 651.301 herein for the evaluation of operating assistance applications, the Department will consider the following additional criteria in evaluating the applications for capital assistance and comparing and selecting the proposed capital programs (in whole or in part) for Section 18 funding:
a) If proposed eligible capital expenses are to be incurred for the replacement of existing vehicles, whether the condition of the existing vehicles justifies such replacement.
b) Whether other vehicles or equipment are available within the proposed service area, and to what extent such vehicles or equipment could meet the transportation needs outlined in the application.
c) Whether other funding sources are available to fund the eligible capital expenses for which Section 18 funds are being requested.
d) Whether the participant has the ability to operate and maintain the capital items for which funding is being requested.
e) Whether the transportation needs and proposed method of operating the equipment and vehicles as described in the application, indicate that such equipment and vehicles will be fully utilized.
f) If proposed eligible capital expenses are to be incurred for the purchase or construction of fixed facilities, in addition to the other criteria listed in this Section:
1) Whether the proposed fixed facilities are necessary in relation to the participant's current level of service; and
2) Whether it can be expected that the participant will utilize the fixed facility in the provision of transit services beyond the four year period of the Section 18 program and for the useful life of the facility; and
3) Whether the amount of funds requested for such fixed facilities is so great as to prevent compliance by the Department with federal requirements that Section 18 funds be expended on a fair and equitable basis.
Section 651.305 Approval of Capital Assistance Grant Project Budgets
a) After the comparison and selection of programs (in whole or in part) to receive Section 18 capital assistance based on the criteria on Section 651.304 herein, the Department will review the proposed project budget of each participant's proposed program to assess the reasonableness of the relationship between the proposed capital items and the projected cost of such items. As part of this review, the Department will consider the comparison of the participant's proposed capital items and costs with the actual costs of purchasing or constructing comparable capital items for other transportation programs.
b) If after the Department has completed the review provided in this Section and has determined that the participant's proposed project budget is unreasonably high or low in relation to the capital items to be purchased or constructed, the Department will work with the participant to modify the proposed project budget. As a result of this process, particular line items of a participant's proposed project budget will be increased or decreased and a final program of proposed expenditures will be approved by the Department.
Section 651.306 Amounts of and Limits on Capital Assistance Grants
The Department is authorized under the Act to make grants to any participant for an amount not to exceed 80% of the proposed eligible capital expenses from the participant's approved program of proposed expenditures. The Department will make grants to participants for 80% of such capital expenses to the extent that sufficient discretionary funds are available.
Section 651.307 Acknowledgment of Applications; Additional Information Required
The Departments will acknowledge to participants receipt of formal applications for Section 18 operating or capital assistance. Acknowledgment of an application is an assurance that the Department will review the application. It does not obligate the Department to approve the application. During the review and evaluation of an application, the Department may require the participant to provide further information or to file additional supporting documents by a date set by the Department. The nature of these documents will vary with the particular application and will be specified by the Department.
Section 651.308 Notification of Results of Department Evaluation and Review
The participant will be notified in writing, within sixty (60) days of receipt by the Department of a complete formal application, of the Department's approval or disapproval, in whole or in part, of the proposed programs based on its review of the applications. In cases where the Department notified the participant of its disapproval of a proposed program the participant, within five (5) days after such notification, may request the Department to reconsider the proposed program based on any additional relevant information the participant can provide the Department. In cases where the Department recommends approval of an application to FHWA, the Department will notify the applicant of the level of funding and the program of proposed expenditures recommended for approval. Concurrently the Department will submit the application to FHWA and ask that the program be included in the State's Program of Section 18 Projects. No application is officially approved until such time as FHWA notifies the Department that the proposed program has been given FHWA approval. All disapprovals by the Department or FHWA of proposed programs shall be final.
SUBPART D: PROGRAM ADMINISTRATION
Section 651.401 Contract Requirements
a) Upon notification to the Department from the FHWA that a proposed operating or capital program has been approved for inclusion in the Illinois Section 18 Program of Projects and that funding for such programs has been approved, the Department will send three copies of a Section 18 grant contract to each such participant specifying the terms and conditions of the grant awarded. Within thirty (30) days of the receipt of such contract, each participant must execute and return all three (3) copies of such contract to the Department together with:
1) An attested resolution of the governing board of the participant(s) agreeing to the terms of the contract, and authorizing the execution of the contract; and
2) A legal opinion from a licensed attorney representing the participant certifying that the agreement is valid and binding upon the participant(s).
b) The Department will cause the contract to be executed on behalf of the State and will return one executed copy to each participant. No Section 18 financial assistance can be made available prior to the execution of such a grant contract by both the participant(s) and the State.
Section 651.402 Quarterly Reports and Quarterly Requisitions for Operating Assistance Grants
a) For Fiscal Year 1980
For fiscal year 1980 participants shall submit to the Department, on forms provided by the Department for that purpose, a report of the actual operating deficit incurred in the fourth quarter of the fiscal year. This report shall be submitted within thirty (30) days following the close of the quarter.
b) For Fiscal Year 1981 and thereafter
For fiscal year 1981 and thereafter, no later than thirty (30) days following the end of each quarter of any fiscal year, each participant shall submit to the Department, on forms provided by the Department for that purpose, a report of the actual operating deficit incurred during that quarter.
c) The Department will review quarterly reports to determine if the expenditures and the resulting operating deficits were incurred in conformity with the approved program of proposed expenditures, based on the following criteria:
1) Whether the expenditures were made only for line items specifically listed in the approved program of proposed expenditures. (Items not specifically listed in the approved program of proposed expenditures are not eligible for Section 18 assistance.)
2) Whether obligations incurred to date exceed the amount listed in the approved program of proposed expenditures.
d) Participants may transfer from a particular line item an amount not to exceed 10% of that particular line item to other line items in order to offset unanticipated expenditures, without prior Departmental concurrence. Prior to the transfer of amounts greater than 10% of a particular line item, participants must submit written requests for approval of such a change to the Department and receive the Department's approval. Approval will be granted by the Department where such transfers do not adversely affect the level of transportation service approved for Section 18 funding.
e) After review and approval of the participant's submitted quarterly requisition the Department will request FHWA approval for payment. To allow sufficient time for State and Federal review and approval of reimbursement requests, participants should have the capability of covering expenditures for the previous quarter for up to 60 days following the close of that quarter.
Section 651.403 Operating Assistance Grant Close-Out
a) The participant shall furnish to the Department a complete audit of the eligible operating expenses approved under the Section 18 program. The audit shall be prepared by an independent certified public accountant, shall be based on the State's fiscal year, shall be performed in accordance with standard accounting principles, and shall include a calculation of the approved operating deficit for the previous fiscal year.
b) The audit shall be submitted to the Department no later than one hundred eighty (180) days following the close of the fiscal year for which an operating assistance grant was approved.
Section 651.404 Capital Assistance Requisitions
a) The form "Requisition for Grant Payment" shall be used by participants to request the payment of Section 18 funds for approved eligible capital expenses. This form is available from the Department.
b) The participant shall submit requisitions for reimbursements of actual approved capital expenditures and for advances for payment of approved capital expenses.
c) Department approval of each requisition is contingent upon the following:
1) Submission of documents to verify expenditure of funds for eligible capital expenses or to verify need for advances for payment of approved capital expenses.
2) Determination by the Department that capital expenditures were made in conformity with approved programs of proposed expenditures.
3) Determination by the Department that the participant has met all terms of the capital grant contract.
Section 651.405 Departmental Concurrence on Eligible Capital Expenses
a) General Requirement
The participant shall not initiate a formal public advertisement and solicitation of bids for approved capital items without receiving prior Departmental concurrence on the plans and specifications to be used in conjunction with the advertisement and solicitation of bids. All bid advertisement, solicitation, and award shall be conducted in conformity with the requirements and procedures prescribed in either the Illinois Municipal Code (Ill. Rev. Stat. 1981, ch. 24, pars. 1-1-1 et seq.) or the statutory requirements governing purchases by county governments County Executive Act (Ill. Rev. Stat. 1981, ch. 34, pars. 1001-1011), whichever is applicable.
b) Bid Award
Participants shall notify the Department in writing of all awards, regardless of the amount. In connection with any grant for capital assistance neither the Department nor the State shall be obligated or liable to any person or organization other than the participant.
Section 651.406 Capital Assistance Grant Close-Out
a) The participant shall notify the Department in writing immediately when all eligible capital project activities have been completed and all eligible capital expenses incurred. The Department will then initiate final settlement of capital grant funds for the project, including the following:
1) On-site inspection of the project by a Department representative, where appropriate;
2) Final financial audit of the books and accounts by the State and settlement of any audit findings;
3) Submission of a list of vehicles and equipment purchased, identified individually by serial number or other distinguishing designation, and such other comparable information regarding fixed facilities as the Department may require.
4) Submission of a final requisition requesting payment of the balance of the approved Section 18 capital grant, or a check payable to the Department for the full amount of any overpayment of Section 18 capital grant funds; and
5) Notification to the participant by the Department that final settlement has been reached.
b) The participant shall retain, for three (3) years following final settlement, all project contract documents, financial records, and supporting documentation.
Section 651.407 Protection of Program Funds Received Under Operating and Capital Assistance Grants
a) Each participant shall establish separate accounts for both operating and capital assistance funds received under Section 18 grants, either to be maintained within its existing accounting system or to be established independently. The accounts shall be in conformity with the uniform accounting requirements established by the State and the FHWA.
b) All Section 18 operating and capital assistance funds must be deposited in a bank or trust company which is a member of the Federal Deposit Insurance Corporation.