Once the applicant has paid the technical review fee, the department will
conduct a technical review of transit services project applications advanced
from the completeness review process. If the applicant does not submit the
required technical review fee to the department within 21 calendar days of
mailing of the notification for technical review, the department may deny the
(2) The department
will review the information provided in the application against industry
standards to determine whether the service will operate as represented by the
To be eligible the
transit services must meet the following requirements:
(a) The project must meet the requirements of
the statutes, these rules and the Opportunity Announcement. Transit services
may operate for a period of less than five years.
(b) The applicant must be the owner, contract
purchaser or project lessee at the time of the project's performance.
The applicant must be a recipient or
sub-recipient of state or federal funds for the transit services included in
(A) "Recipient" refers to the
entity that directly receives funds from the state or federal agency for
"Sub-recipient" refers to the entity that directly receives state or federal
funds from a recipient for transit services. Vendors or contractors of
recipients who are not an owner, contract purchases or lessee of the project
are not considered sub-recipients and may not submit applications.
The department will
review transit services costs for eligibility. If a cost is eligible under the
agreement that qualifies the applicant as a recipient or sub-recipient, it will
be considered a qualifying service cost. The application must document cost by
providing a line item budget.
services cost may include:
(A) Costs for all
materials and supplies needed for the performance of the proposed transit
Cost of work
performed by employees or independent contractors of the applicant based on the
(i) Employees or
contractors must be certified, accredited, licensed or otherwise qualified to
do the work;
(ii) The work must be
associated with the performance of the transit services for which state or
federal funds were received;
Fiscal administration costs, which may include accounting, auditing, contract
management and fiscal reporting expenses and other similar costs for the
transit services may not exceed 20 percent of the eligible costs; and
(iv) Costs for employees' or contractors'
work on the transit services must be detailed and documented as to specific
tasks, hours worked and compensation costs. This cost may include employee
benefits and taxes.
Costs of training associated with the transit services that is approved by the
(D) Other costs the
department determines should be included.
(b) Qualifying transit services cost does not
include items that are ineligible under the standards for federal Office of
Management and Budget Circular A-87 as in effect on May 10, 2004 or A-122 as in
effect on May 10, 2004.
(5) If an application does not include all
information needed to complete the technical review, the department may notify
the applicant in writing, requesting additional information. If the department
does not receive the requested information within 30 calendar days of the date
of the notice, the department may deny the application.
(6) The department will notify the applicant
in writing if the department denies the application during the technical
(7) If the technical review
determines that inaccurate information was submitted by the applicant during
the allocation of tax credits, the department may reduce the amount of
potential tax credit allocated to the applicant.