Grant program underwrites operators that bring coach transit to rural markets

Public transit subsidies aren't just for places with large populaces, or just for big-city transit agencies. Just ask any operator that has purchased MCI Commuter Coaches with what are called Section 5311 funds to serve local transit routes.

Section 5311 refers to a federally funded program that helps transit providers pay for motor coaches and operation expenses in low-density areas such as small towns, rural communities and Indian reservations. More specifically, the 5311 program provides formula funding to states for the purpose of supporting public transportation in areas with populations of less than 50,000. It is apportioned in proportion to each state's non-urban population, and funding can be used for capital, operating, administration and project expenses. Recipients can be governmental bodies, nonprofit groups such as Indian tribes and transit operators.

They're the government, and they're here to help
The maximum federal share for capital purchases (including buying coaches) and project administration is 80 percent, though projects that meet certain requirements, such as the Americans with Disabilities Act or Clean Air Act, may get funded at 90 percent. Section 5311 may fund up to 50 percent of net operating costs and up to 80 percent of feasibility study costs.

"There are a lot of states that are looking for operators to provide bus service to more remote areas," says Karen Honeysett, business development manager for MCI's public-sector division. "There's a real need, and it's a great opportunity for operators, including those in the private sector, to get coaches with public funding."

The process isn't necessarily simple, but the rewards can be great.

Bob Hoxie, director of safety training and public funding for Burlington Trailways, has written RFPs (Requests for Proposals) that have resulted in seven MCI Commuter Coaches for the company, which is headquartered in Iowa and provides scheduled service in six states. The 5311-funded coaches run as far west as Denver, as far east as Chicago and as far south as St. Louis, making connections with other carriers in those major cities.

Navigation course
"It takes a lot of time and sweat and other things," says Hoxie, pointing out that it took him a year to put together his last RFP. He recommends that other carriers looking to get 5311 funding develop a relationship with their state departments of transportation. Burlington Trailways has gotten 80-percent funding for coaches through Iowa, Colorado and Missouri, and Hoxie says the Iowa DOT has been extremely helpful in helping him navigate the paperwork.

Hoxie has also learned to write RFPs with options — options to buy additional coaches and options to transfer options to other carriers. By building such options into the grant request, he's managed to save himself the trouble of starting the RFP process all over again every time the company needs another coach. It's also served as a way to help other operators get coaches without having to go through the entire 5311 RFP process themselves. Hoxie says that MCI's public sector team has been an important source of information for such transfers.

While such option transfers may be viewed as a glorious example of how coach professionals look out for one another, they ultimately serve the government's original intent for the program — to improve connectivity throughout the United States. Hoxie points out that it's possible for a passenger to ride scheduled-service coaches all the way from Canada to Panama, and his company is more able to be a part of that with 5311 funding.

To view the rules and benefits in greater detail, visit the Federal Transit Administration's Section 5311 page at http://www.fta.dot.gov/funding/grants/grants_financing_3555.html. Or contact the Office of Program Management, (202) 366-4020; or the Office of Resource Management and State Programs at (202) 366-2053.

To take a closer look at MCI's Commuter Coach, click here.

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