D R A F T R E P O R T

I. TRIENNIAL REVIEW BACKGROUND

The United States Code, Chapter 53 of Title 49, requires the Federal Transit Administration (FTA) of the United States Department of Transportation (USDOT) to perform reviews and evaluations of Urbanized Area Formula Grant activities at least every three years. This requirement is contained in 49 U.S.C. 5307(i):

(2) At least once every three years, the Secretary shall review and evaluate completely the performance of a recipient in carrying out the recipient’s program, specifically referring to compliance with statutory and administrative requirements and the extent to which actual program activities are consistent with the activities proposed under subsection (d) of this section and the planning process required under sections 5303-5306 of this title.

(3) The Secretary may take appropriate action consistent with the review, audit and evaluation under this subsection, including making an appropriate adjustment in the amount of a grant or withdrawing the grant.

The Triennial Review includes a review of the grantee’s compliance in 23 different areas. The basic requirements for each of these areas are summarized below.

This report presents the findings from the Triennial Review of the City of Lawrence, Kansas (the City). This review was performed in accordance with FTA procedures (published in FTA Order 9010.1B, April 5, 1993) and included preliminary reviews of documents on file at the Region VII Office in Kansas City, and on-site discussions and review of the procedures, practices, and records of the City of Lawrence, as deemed necessary. The review concentrated primarily on procedures and practices employed during the past three years, however, coverage was extended to earlier periods as needed to assess the policies in place and the management of grants. During the visit, administrative and statutory requirements were discussed, documents were reviewed, and facilities were toured. Specific documents examined during the Triennial Review are available in FTA’s and the City’s files.

II. REVIEW PROCESS

The desk review was conducted on January 19, 2005. Following the desk review, an agenda package was sent to the City advising it of the site visit and indicating additional information that would be needed and issues that would be discussed.

The site visit to the City occurred on July 25-26, 2005. The individuals participating in the review are listed in Section VII of this report.

At the entrance conference, the purpose of the Triennial Review and the review process were discussed. During the site visit, urbanized area formula grant program administrative and statutory requirements were discussed and documents were reviewed. The City’s transit facilities were toured to provide an overview of activities related to FTA-funded projects. A sample of FTA-funded vehicles was inspected during the site visit.

On completion of the review, an exit conference was held with City staff to discuss findings, corrective actions, and schedules. This information is summarized in the table in Section V of this report. A draft copy of this report was provided to the City at the exit conference.

III. DESCRIPTION OF THE GRANTEE

The Lawrence Transit System, known as the “T”, provides transit service in the City of Lawrence and surrounding area. The population of its service area is approximately 80,000. Transit service began in the City on December 16, 2000. The “T” is a City department reporting to the City Manager. The City Commission has authorized a nine member advisory board to provide input on transit issues. Members are appointed by the Mayor and serve three-year terms. The “T” contracts for all service with MV Transportation.

The “T” operates a network of eight routes within the City. Service is provided Monday through Saturday from 6:00 a.m. to 8:00 p.m. There is no service on Sundays. ADA complementary paratransit service is provided during the same hours as fixed route service.

The basic adult fare for bus service is $0.50. A reduced fare of $0.25 is offered at all times. The “T” operates a fleet of twelve buses for fixed-route service. The “T”s bus fleet consists of El Dorado Transmark 30-foot transit coaches. The current peak requirement is for ten vehicles. Paratransit service is provided by nine 15-passenger vans. The “T” operates from a single maintenance and operations facility in the City of Lawrence. Its services are oriented around a downtown hub.

The City of Lawrence’s National Transit Database Report for FY 2004 provided the following financial and operating statistics for its fixed-route with service deviations:

	Fixed-Route Service	Paratransit Service
Unlinked Passengers	434,928	49,718
Revenue Hours	44,139	23,259
Operating Expenses	$1,809,831	$775,642

The City of Lawrence is presently involved in the planning and installation of shelters and other bus stop/transfer amenities and is pursuing a feasibility study for a new bus operations and maintenance facility. In addition, the City of Lawrence and the University of Kansas are working with a joint parking and transit task force to review the potential combination of City and University transit resources. An interim task force report, outlining the study findings and recommendations, will be completed in early September 2005.

IV. RESULTS OF THE REVIEW

The Triennial Review focused on the City’s compliance in 23 areas. This section provides a discussion of the basic requirements and findings in each area. During this Triennial Review, no deficiencies were found with the FTA requirements in 22 of the 23 areas. Deficiencies were found in the area of Technical. Subsequent to the site visit, the City provided information to resolve the deficiencies in Technical. Advisory comments were made in the Safety and Security area.

1. Legal

Basic Requirement: The grantee must be eligible and authorized under state and local law to request, receive, and dispense FTA funds and to execute and administer FTA funded projects. The authority to take all necessary action and responsibility on behalf of the grantee must be properly delegated and executed.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for legal.

2. Financial

Basic Requirement: The grantee must demonstrate the ability to match and manage FTA grant funds, to cover cost overruns, to cover operating deficits through long-term stable and reliable sources of revenue, to maintain and operate federally funded facilities and equipment, and to conduct an annual independent organization-wide audit in accordance with the provisions of OMB C A-133.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for financial.

3. Technical

Basic Requirement: The grantee must be able to implement the Urbanized Area Formula Grant Program of Projects in accordance with the grant application, Master Agreement, and all applicable laws and regulations, using sound management practices.

Findings: During this Triennial Review of the City, deficiencies were found with the FTA requirements for technical. The City’s grant management procedures are lacking detail in areas regarding the preparation of items such as Milestone Progress Reports (MPRs), Financial Status Reports (FSRs), and National Transit Database (NTD) reports. The Milestone Progress Report for KS-03-0022 dated April 29, 2005 did not reflect the current status of milestones. KS-03-0022, a grant for bus shelters and services amenities, was initiated on June 1, 2001 with a total project cost of $618,946. As of the date of the Triennial Review site visit, an unobligated grant balance of $219,028 remained. The City is revaluating its transit priorities based on the outcome of a task force evaluation of the potential combination its transit services with the University of Kansas’ (KU) transit system. The evaluation is scheduled to be completed in September 2005. The possibility of a re-aligned bus transit system is causing a delay in the location selection of bus shelters and other transit amenities, thereby delaying the implementation of remaining projects within KS-03-0022.

Subsequent to the site visit, the City provided the FTA Region VII office with written grant administration procedures, which provide detail in areas regarding the preparation of items such as Milestone Progress Reports (MPRs), Financial Status Reports (FSRs), and National Transit Database (NTD) reports. This finding is now closed.

4. Satisfactory Continuing Control

Basic Requirement: The grantee must maintain control over real property, facilities and equipment and ensure that they are used in transit service.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for satisfactory continuing control.

5. Maintenance

Basic Requirement: The grantee must keep federally funded equipment and facilities in good operating order.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for maintenance.

6. Procurement

Basic Requirement: FTA grantees will use their own procurement procedures that reflect applicable state and local laws and regulations, provided that the process ensures competitive procurement and that the procedures conform to applicable federal law including 49 CFR Part 18, specifically Section 18.36 and FTA C 4220.1D, “Third Party Contracting Requirements.” Grantees will maintain a contract administration system that ensures that contractors perform in accordance with terms, conditions, and specifications of their contracts or purchase orders.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for procurement.

7. Disadvantaged Business Enterprise (DBE)

Basic Requirement: The grantee must comply with the policy of USDOT that DBEs, as defined in 49 CFR Part 26, are ensured nondiscrimination in the award and administration of USDOT-assisted contracts. Grantees also must create a level playing field on which DBEs can compete fairly for USDOT-assisted contracts; ensure that only firms that fully meet eligibility standards are permitted to participate as DBEs; help remove barriers to the participation of DBEs; and assist the development of firms that can compete successfully in the marketplace outside the DBE program.

Findings: During this Triennial Review of the City, no deficiencies were found with USDOT requirements for DBE.

8. Buy America

Basic Requirement: Per Buy America law, federal funds may not be obligated unless steel, iron, and manufactured products used in FTA-funded projects are produced in the United States, unless FTA has granted a waiver, or the product is subject to a general waiver. Rolling stock must be manufactured in the United States and have a 60 percent domestic content.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for Buy America.

9. Suspension/Debarment

Basic Requirement; To prevent fraud, waste, and abuse in federal transactions, persons or entities, which by defined events or behavior, potentially threaten the integrity of federally administered programs are excluded from participating in FTA-assisted programs. FTA grantees are required to certify that they are not excluded from federally assisted transactions. Grantees also are required to ensure that none of the grantee’s “principals” (as defined in the governing regulation 49 CFR Part 29), subrecipients, and third-party contractors and subcontractors is debarred, suspended, ineligible or voluntarily excluded from participation in federally assisted transactions.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for suspension/debarment.

10. Lobbying

Basic Requirement: Recipients of federal grants and contracts exceeding $100,000 must certify compliance with P.L. 101-121, Section 319, Restrictions on Lobbying, before they can receive funds. In addition, grantees are required to impose the lobbying restriction provisions on their contractors.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for lobbying.

11. Planning/Program of Projects

Basic Requirement: The grantee must participate in the transportation planning process in accordance with FTA requirements. Each recipient of a grant shall have complied with the public participation requirements of Section 5307(c)(1) through (7). Each recipient is required to develop, publish, afford an opportunity for a public hearing on, and submit for approval a Program of Projects (POP).

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for planning/POP.

12. Title VI

Basic Requirement: The grantee must ensure that no person in the United States shall, on the ground of race, color, or national origin, be excluded from participating in, or denied the benefits of, or be subject to discrimination under any program or activity receiving federal financial assistance. The grantee must ensure that federally supported transit service and related benefits are distributed in an equitable manner.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for Title VI.

13. Public Comment Process for Fare and Service Changes

Basic Requirement: The grantee must have a locally developed process to solicit and consider public comment before raising a fare or carrying out a major reduction of transit service.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for public comment process for fare and service changes.

14. Half Fare

Basic Requirement: Grantees must ensure that elderly persons and persons with disabilities, or an individual presenting a Medicare card, will be charged during non-peak hours for transportation using or involving a facility or equipment of a project financed under Section 5307 not more than 50 percent of the peak hour fare.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for half fare.

15. ADA

Basic Requirement: Titles II and III of the Americans with Disabilities Act of 1990 provide that no entity shall discriminate against an individual with a disability in connection with the provision of transportation service. The law sets forth specific requirements for vehicle and facility accessibility and the provision of complementary paratransit service.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for ADA.

16. Charter Bus

Basic Requirement: Grantees are prohibited from using federally funded equipment and facilities to provide charter service except on an incidental basis and when one or more of applicable exceptions for urban areas set forth in the charter service regulation at 49 CFR 604.9 (b) applies.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for charter bus.

17. School Bus

Basic Requirement: Grantees are prohibited from providing exclusive school bus service unless the grantee qualifies under specified exceptions. In no case can federally funded equipment or facilities be used.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for school bus.

18. National Transit Database (NTD)

Basic Requirement: The grantee must collect, record, and report financial and non-financial data in accordance with the Uniform System of Accounts (USOA) and updated with the National Transit Database (NTD) Reporting Manual as required by 49 USC 5335(a).

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for National Transit Database.

19. Safety and Security

Basic Requirement: Any recipient of Urbanized Area Formula Grant Program funds must annually certify that it is spending one percent of such funds for transit security projects or that such expenditures for security systems are not necessary.

Under the safety authority provisions in the federal transit laws, the Secretary has the authority to investigate the operations of the grantee for any conditions that appear to create a serious hazard of death or injury especially to patrons of the transit service. However, FTA has no specific requirements for transit safety. States are required to oversee the safety of rail fixed guideway systems through a designated oversight agency.

Findings: A summary of the City’s expenditures for security projects is provided in Section VI of this report. The City is encouraged to develop a comprehensive security program plan (http://www.transit-safety.volpe.dot.gov/Publications/security/planningguide.pdf), make security awareness information available to the public, and use the City’s Police Department to conduct an audit of security polices and procedures and threat and vulnerability assessments.

20. Drug-Free Workplace

Basic Requirement: Grantees are required to maintain a drug-free workplace for all employees and to have an ongoing drug-free awareness program.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for drug-free workplace.

21. Drug and Alcohol Program

Basic Requirement: Grantees receiving FTA funds under Capital Grant, Urbanized Area Formula Grant, or Non-Urbanized Area Formula Grant Programs must have a drug and alcohol-testing program in place for all safety-sensitive employees.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for the drug and alcohol program.

22. Equal Employment Opportunity (EEO)

Basic Requirement: The grantee must ensure that no person in the United States shall, on the ground of race, color, creed, national origin, sex, age, or disability be excluded from participating in, denied the benefits of, or be subject to discrimination in employment under any project, program or activity receiving federal financial assistance from the federal transit laws.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for EEO.

23. ITS Architecture

Basic Requirement: Intelligent Transportation Systems (ITS) projects funded by the Highway Trust Fund and the Mass Transit Account must conform to the National ITS Architecture, as well as to U. S. Department of Transportation (DOT) adopted ITS standards.

Findings: During this Triennial Review of the City, no deficiencies were found with the FTA requirements for ITS architecture.

V. SUMMARY OF FINDINGS AND CORRECTIVE ACTIONS

Review Area	Finding	Deficiency	Corrective Action	Response Days/Date	Date Closed
1. Legal	ND
2. Financial	ND
3. Technical	D	01: Inadequate grant administration procedures 03: Progress reports lack required information	Provide the FTA Region VII office with written grant administration procedures, which provide detail in areas regarding the preparation of Milestone Progress Reports (MPRs), Financial Status Reports (FSRs), National Transit Database (NTD), etc. The City must revise the KS-03-0022 milestone progress report to include an updated implementation schedule that reflects a revised project implementation resulting from the Lawrence/KU task force recommendations.	90 days 90 days	8/4/05 8/4/05
4. Satisfactory Continuing Control	ND
5. Maintenance	ND
6. Procurement	ND
7. Disadvantaged Business Enterprise	ND
8. Buy America	ND
9. Suspension/ Debarment	ND
10. Lobbying	ND
11. Planning/POP	ND
12. Title VI	ND
13. Public Comment for Fare and Service Changes	ND
14. Half Fare	ND
15. ADA	ND
16. Charter Bus	ND
17. School Bus	ND
18. National Transit Database	ND
19. Safety and Security	AC	27: Security information not provided to passengers 09: No written security plan 31: Audit of security policies and procedures not performed	Make security awareness information available to the public. Develop and implement security plan Use the City’s Police Department to conduct an audit of security polices and threat and vulnerability assessments.
20. Drug-Free Workplace	ND
21. Drug and Alcohol Program	ND
22. EEO	ND
23 ITS Architecture	ND

Findings: ND = No Deficiencies; D = Deficient; NA = Not Applicable; NR = Not Reviewed; AC = Advisory Comment

VI. TRANSIT SECURITY EXPENDITURES

Does the City utilize the one percent expenditure of its Urbanized Area Formula Grant funds for transit security?: Yes _ No X h

If no, why does the City consider such an expenditure unnecessary (check all that apply):

X Existing security measures meet agency needs

X _Level of incidents does not warrant further security expenditures

X Potential security threats are minimal

X Adequate local and federal (less than one percent) funds are spent on security projects.

Security Projects	Annual Expenditures (in Dollars $)
	FY 2002		FY 2003		FY 2004
	FTA 5307	Other	FTA 5307	Other	FTA 5307	Other
Infrastructure/Capital Improvements:
Increased Lighting
Increased Surveillance
Emergency Communication
Other Projects (list)
Passenger waiting shelters		$48,518				$19,978
Bus stop signage				$4,361

Subtotal		$48,518		$4,361		$19,978
Operating/Personnel Expenditures ⁽¹⁾:
In-house Security Personnel
Contract Security Personnel
Other Projects (list)



Subtotal		$48,518		$4,361		$19,978
TOTAL ⁽²⁾		$48,518		$4,361		$19,978
UAFG Funds Received	$883,355		$1,166,134		$1,166,003
Security Percentage	0%		0%		0%

(1) Federal operating funds available to agencies in areas with populations under 200,000

(2) Safety and security were funded through federal earmarks and local funding. No UAFG funds were used.

VII. ATTENDEES

Name	Title/Organization	Phone Number	e-mail address
Wendy Koerner	Public Transit Clerk/ Lawrence Transit System	785-832-3465	wkoerner@ci.lawrence.ks.us
Cliff Galante	Transit Adminstrator/ Lawrence Transit System	785-832-3462	cgalante@ci.lawrence.ks.us
Michael Sweeten	MV Transit	785-312-7054	msweeten@mvtransit.com
Michael Wildgen	City Manager/ City of Lawrence	785-832-3401	mwildgen@ci.lawrence.ks.us
Rachel Cornish	Marketing/ Lawrence Transit System	785-832-3471	rcornish@ci.lawrence.ks.us
William R. Kalt	Regional Engineer, FTA Region VII	816-329-3927	William.kalt@fta.dot.gov
Jim Buckley	Lead Reviewer, Milligan & Company, LLC	410-732-4626	Jbuckley@milligancpa.com
Valerie Piper	Reviewer, Milligan & Company, LLC	215-496-9100	vpiper@milligancpa.com

August 2005