Program guidance that details the eligibility, criteria and application process. Ferry Boat Program. Ohio Department of Transportation

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1 Program guidance that details the eligibility, criteria and application process. Ferry Boat Program Ohio Department of Transportation

2 TABLE OF CONTENTS Program Overview Program Administration Program Mission Program Background...2 Program Funding. 2 Eligibility Requirements Eligible Entities...3 Eligible Activities...4 General Program Requirements...5 Application Process Application...7 Sponsor Responsibilities Sponsor Responsibilities..7 Definitions/Acronyms Definitions. 8 Forms Application...9 1

3 Program Overview 1.1 Program Administration The Ohio Department of Transportation is responsible for the development, implementation and the administration of various federal funding programs. The Office of Local Programs is tasked with the management of the Ferry Boat Program. This includes the development of the program guidance, creation of a program committee and eligibility determination with an application process. 1.2 Program Mission The program s mission reflects the department s desire to assist locals in improving services that access areas where it is not feasible to build a bridge, tunnel, combination thereof, or other normal highway structure by the use of ferry boats. 1.3 Program Background The Ferry Boat Program was established under 23 U.S.C. 147 through section 1121 of the Moving Ahead for Progress in the 21 st Century Act (MAP-21) federal transportation authorization bill. The program is subject to the provisions established for the original Ferry Boat Discretionary Program under 23 U.S.C This program provides critical access for passengers and vehicles to areas that are not well served by other modes of surface transportation. Funding is available for the design and construction of ferry boats and for the design, acquisition of right-of-way, and construction of ferry terminal facilities. Ferry boats and terminal facilities that serve vehicular travel as links on public highways (other than interstate highways), as well as ferry boats and terminals only serving passengers as a fixed route transit facility, may be eligible for certain types of Federal-aid highway and Federal Transit Authority funding. 1.3 Program Funding Funding of the federal Ferry Boat program is by contract authority from the Highway Trust Account of the Highway Trust Fund, to remain available until expended. Funds are subject to the overall Federal-aid obligation limitation. MAP-21 replaced the Ferry Boat Discretionary Program with a formula program and authorizes $67 Million available for federal Fiscal years 2013 and The funds will be allocated to the States, United States Territories and Puerto Rico and further distributed among eligible entities based on the following ratio: 20% based on the number of ferry passengers carried by each ferry system; 45% based on the number of vehicles carried by each ferry system; and 35% based on the total route miles serviced by each ferry system. The formula was applied by using the latest data collected in the National Census of Ferry Operators (NCFO) as implemented by the Bureau of Transportation Statistics (BTS). FHWA will use only publicly available data in the allocation of funds. Funds are suballocated to specified ferry systems and are not transferable among these entities. If it is determined that an entity is not eligible for the program, the funds are to be returned to FHWA and then will be redistributed among the remaining eligible entities. New or revised entities may not be 2

4 added after October 1 of the applicable fiscal year and should be added as part of the latest NCFO conducted by BTS. Funds allocated under this program may be used only for the specified ferry operation identified in the distribution of funds. If the ferry operation operates in more than one State, the operator may elect to transfer funds to another State to implement a project within that State to, for example, rehabilitate a terminal. The maximum federal share for a project is 80 percent. 2.1 Eligible Entities Before obligating funds to any project, it must be confirmed that the ferry operator and the route meet the eligibility requirements outlined below and provided in 23 U.S.C. 147 and 129(c). An eligible project and entity must meet all the following conditions, and must certify each project accordingly prior to State obligation of funds: Ownership 1. Publicly owned, where the title for the boat or terminal is vested in a Federal, State, county, town or township, Indian tribe, municipal or other government instrumentality, or 2. Publicly operated, where a public entity operates the boat or terminal, either with public employees or by paying others to do so, even though the boat or terminal may be privately owned, or 3. Majority publicly owned where more than 50 percent of the ownership is vested in a public entity and where substantial public benefits of the ferry operation are documented. The ownership test is applied to the specific facility being improved. For example, if a ferry system has privately owned and operated boats but the terminal is publicly owned, Federal-aid highway funds could be used for improvements to the ferry terminal but could not be used for improvements to the ferry boats. The operation of the ferry and fares must be under the control of a public entity as previously discussed. Location 1. It is not feasible to build a bridge, tunnel, combination thereof, or other normal highway structure in lieu of the use of such ferry. 2. The operation of the ferry shall be on a route classified as a public road within the State and that has not been designated as a route on the Interstate System. Included are ferry boats carrying cars and passengers and ferry boats carrying passengers only on a fixed route. 3. The ferry may be operated only within a State (including the islands which comprise any territory of the United States) or between adjoining States or between a point in a State and a point in the Dominion of Canada. 3

5 Operation & Fares 1. The ferry boat or ferry terminal facility using Federal funds shall be publicly owned or operated, or majority publicly owned (51 percent) if the Secretary determines that the facility provides substantial public benefits. 2. The operating authority and the amount of fares charged for passage on such ferry shall be under the control of the State or other public entity, and all revenues derived shall be applied to actual and necessary costs of operation, maintenance, and repair, debt service, negotiated management fees, and, in the case of a privately operated toll ferry, for a reasonable rate of return. 3. Temporary ferry operations are not eligible for this program. 2.2 Eligible Activities 1. Construction of ferry boat and ferry terminal facilities, including ferry maintenance facilities. 2. Construction, according to 23 U.S.C. 101(a)(4), includes the following applicable activities: A. Preliminary engineering, engineering, and design related services directly relating to the construction of a highway project, including engineering, design, project development and management, construction project management and inspection, surveying, mapping (including the establishment of temporary and permanent geodetic control in accordance with specifications of the National Oceanic and Atmospheric Administration), and architectural-related services; B. Reconstruction, resurfacing, restoration, rehabilitation and preservation; C. Acquisition of rights-of-way; D. Relocation assistance, acquisition of replacement housing sites, and acquisition and rehabilitation, relocation, and construction of replacement housing; E. Elimination of roadside hazards; and F. Improvements that directly facilitate and control traffic flow, such as grade separation of intersections, widening of lanes, channelization of traffic, traffic control systems, and passenger loading and unloading areas. 3. The capital cost of leasing a vessel or facilities. Such lease cannot include the cost of operating such ferry. 4. Temporary ferry operations are not eligible for this program. A. Temporary ferry operations that are used for maintenance of traffic for a bridge replacement project, for example, would be an eligible activity for the same funds used for the bridge replacement. Temporary ferry operations are also eligible for emergency relief purposes in accordance with 23 U.S.C. 125(d)(2) and 23 CFR

6 2.3 General Requirements Applicable Federal Aid Requirements: All ferry boat projects are to be constructed in accordance with Title 23 of the United States Code and Title 23 of the Code of Federal Regulations. This includes all planning, environmental, design, authorization, advertising and construction requirements. Federal-aid highway funding can only be used to pay for costs incurred after FHWA has authorized the work to proceed [23 CFR 1.99(a) and (b)]. Several other key federal-aid requirements: National Environmental Policy Act (NEPA) Right-of-Way Acquisition Competitive Bidding Process Davis-Bacon Wage Rates Buy America Disadvantaged Business Enterprise (DBE) Design-Build Maintenance Other laws may also apply to the construction of ferry boats and facilities. For instance, the Jones Act, administered by MARAD, requires that vessels be constructed in the U.S. A waiver process is available for small passenger vessels. In addition to the Jones Act, the Passenger Vessel Services Act prohibits a foreign vessel from transporting passengers between ports of places in the US. Additional information may be found at: Planning Requirements: Projects must be identified in the applicable Statewide Transportation Improvement Program (STIP) or metropolitan Transportation Improvement Program (TIP) pursuant to 23 U.S.C. 135, and they must be consistent with the Statewide and Long Range Transportation Plan and the Metropolitan Transportation Plan(s), if applicable. Disposal: In accordance with 23 U.S.C. 129(c)(6), no ferry for which Federal-aid funds have been used shall be sold, leased, or otherwise disposed of without prior approval of the Secretary of Transportation. This authority has been delegated to the FHWA Administrator. Contact the Office of Program Administration if a disposal is anticipated to occur. The Federal share of any proceeds from a disposition shall be credited to the unprogrammed balance of Federal-aid highway funds of the same class last apportioned to the State. Disposal of terminals and real property should occur in accordance with 23 U.S.C. 156 and 23 CFR Part 710, Subpart D. Ferries which serve the NHS: Pursuant to 23 U.S.C. 147(g), projects for ferries that serve as a highway link between two points of the NHS must be designed and constructed under all provisions applicable to the NHS. Other Uses of Vessels, Ports, Marinas or Terminals: The use of Federal-aid funds is limited to capital improvements necessary for and directly attributable to the construction of a functional ferry and ferry 5

7 terminal. In accordance with 31 U.S.C. 1301(a) and 2 CFR Part 225, Appendix A, Paragraph C, "Federal cost principles," only direct cost items may be used for the purpose of the award. When ferry terminal projects are constructed in conjunction with other uses (cost objectives) such as cruise ships, general marina, museum, and port management facilities, the Federal cost principles require that costs be allocated to the various benefiting uses. The following are examples of eligibility determinations the FHWA has made concerning the construction of ferry terminals: a. Shared space, such as waiting areas, rest room facilities, ticket sales, or crew quarters, are to be allocated proportionately between or among eligible uses directly associated with the provision of the ferry service and the ineligible uses associated with the shared space. General administration space not primarily for the ferry service is not eligible. b. If a facility is being constructed for multiple uses, the costs of the shell of the building, heating, ventilation and air conditioning, plumbing, etc., require analysis to determine the portion attributable to the ferry service. c. If a dock is to be constructed for the use of cruise or other vessels in addition to the ferry, the construction costs are to be allocated among the defined uses. d. Only the terminal parking spaces needed for the ferry service are eligible for reimbursement. e. Construction or rehabilitation of maintenance and fueling facilities that are solely for the ferry service and are owned or operated by a public entity, or by a private entity under an agreement with the public entity, are eligible. Cost allocation applies if these facilities serve other ineligible uses. f. Operation and maintenance costs (i.e., staffing, regular maintenance of vessels or facilities, fuel, periodic inspections, certifications or permits, such as required by the U.S. Coast Guard, or disposable supplies) are not eligible. g. Dredging in the immediate area of the terminal and docks as part of a terminal project necessary for the ferry operation is eligible but requires cost allocation when the dredging location will be used by other vessels. h. The cost of the ineligible portion of a project cannot be used for the State or local share of the project costs. 3.1 Application Process Applications can be submitted by an eligible ferry boat operator on an as needed basis. The application must clearly outline the project description, detailed cost information, project schedule and show 6

8 eligibility for operator and project. Five copies of all appropriate attachments must be submitted for review. Applications will be reviewed by the Ferry Boat Program Review Board. The Board shall have 30 days to review application and notify applicant of final determination. 4.1 Sponsor Responsibilities Upon funding notification, the project sponsor shall meet with an ODOT representative to review project development requirements, and Federal and State laws, rules and regulations. Proceed to project development as quickly as possible if awarded funds. To comply with the National Environmental Policy Act (NEPA) and the National Historic Preservation Act, projects must have an environmental review to assess and/or mitigate effects on social, economic and environmental factors. Similarly, work involving sensitive historic structures or archaeological sites must conform to the U.S. Secretary of the Interior s standards and guidelines for archaeology and historic preservation. The sponsor must carry out and comply with all Federal, State and local laws, and acquire environmental approvals and any required permits from the appropriate Federal, State and local agencies. Also, the sponsor must acquire building and other local permits, if applicable. Engineering and architectural designs for all facilities must conform to the Americans with Disabilities Act. The sponsor is responsible for all costs over and above the approved awarded funding amount. Funding for project costs in excess of those awarded initially will not be provided. Therefore, obtaining realistic cost estimates for the services to be performed are extremely important to insure that adequate funding is provided. For this reason, the services of a professional engineer, architect, or contractor must be obtained to assist in the development of the required project services and cost estimates. Costs for professional services associated with preparation of the application are not eligible for reimbursement. Sponsors should carefully control increases and overruns as they may jeopardize completion of the entire project. If the Sponsor decides not to complete a project, the applicant will reimburse all federal expenditures to ODOT. The sponsor must adhere to the original project scope. Make sure the application provides for the complete termini and a detailed project description. If a plaque or sign is used on the project, ODOT must be identified as providing part of the funding for the project. The applicant must commit to manage and maintain the project after completion. A facility must be open to the public for a period of not less than 10 years, or an otherwise agreed to term depending on the project. 7

9 5.1 Definitions Approach Road. An approach road is a public road that connects the ferry terminal passenger parking, vehicle ramp, or transfer bridge to a Federal-aid highway as defined in 23 U.S.C 101 or a National Highway System (NHS) Intermodal Connector. Approach roads do not include access roads to maintenance facilities. Control. Control means that a public entity has an interest in the continued operation of the route and oversees the schedules, fares, and operation. This can include a service on a public route that is operated by a private entity under a contract, permit, or other agreement with a public entity. Disposal. A disposal is any ending of service, use for other purposes, or significant change of service that is not consistent with the eligible operation of a vessel or facility purchased or leased according to 23 U.S.C. 129(c)(6). Long- or short-term lease or sale of a vessel for any other purpose is considered a disposal. Ferry Boat. A ferry boat is any water transportation vessel, including ships, barges, and hovercraft that transport pedestrians and/or automobiles with passengers (roll-on/roll-off) for public transportation purposes on a fixed route where it is not feasible to build a bridge, tunnel, combination thereof, or other normal highway structure in lieu of such ferry. Terminal Facility. A ferry terminal facility includes the structures and amenities that directly serve the ferry boat operation. These include passenger parking, ticketing, waiting area, boarding and disembarking facilities, docks, slips, dolphins and shore improvements necessary for docking, administrative space specifically for on-site ferry administration and vessel crew, and ferry vessel maintenance facilities. It does not include approach roads to the terminal facility. Public Entity. A public entity includes Federal, State or local governmental agencies, Tribal governments, and organizations established by Federal, State or local law with control of ferry boat services, including routes and fares. A public entity does not include any other "not for profit" organization. Operating authority. The public or private entity responsible for operating the ferry service. 8

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