State and Federal Initiatives

1. State and Federal Initiatives 2003 DPI Transportation Services Teleconference

2. BSIP and FleetCross

3. BSIPGo Live - DOT - February? • DPI - Shooting for a Go-Live July 1, 2003 • Training - April/May

4. FleetCross • All counties have had the opportunity to send some staff for training • User ID’s are now set up • We will be including a list of User ID’s for your county in the monthly mailing and also faxing to you • Most Counties have provided IP Addresses • “Plan B” if you can’t

5. Transportation Allotments

6. Transportation Allotments • Funding Base for 2002-2003 includes: • Eligible state expenditures • Eligible local expenditures • Up to $5000 ($10,000 for large LEAs) of equipment expenditures • UNSPENT State Funds, as reported on form TD-1 (amount you would have spent in the absence of the state spending freeze)

7. Transportation Allotments • Does not include: • Expenditures for which you received special allotments (e.g. equipment, TIMS license) • Local expenditures beyond projected total expenditures (in excess of $200,000) • applies only to a few counties - refer to line 10 of your data review sheet

8. Budget Ratings • Input 2001-2002 Student Count, 2001-2002 # Buses &Eligible State/Local expenditures into SIMULATOR to determine SIMULATOR rating. • Input 2001-2002 Student Count, # Buses, Expenditures into the Funding Formula to determine new model rating • Assign worst case TIMS site characteristics for LEAs not submitting complete TIMS data

9. Determine Transportation Allotments • Multiply each rating by funding base and use the higher amount • Adjust upward if increase in ADM • Reduce proportionately for $5.8 million legislative cut (this is about 1 1/2 times the cut last year - $4 million statewide) • Reduce for retirement contribution, based on actual expenditures last year

10. Last Year Avg. Sim. Rating: 93.78% Avg. New Rating: 94.44% Avg. “Funded At” Rating: 95.75% This Year Avg. Sim. Rating: 94.61% Avg. New Rating: 96.16%* Avg. “Funded At” Rating: 96.43%* *Not finalized Budget Rating Comparisons -

11. 2002-2003 Transportation Allotment Data Sheets will be Mailed from DPI by December 2

12. School Bus Replacements • Transportation Services has identified up to 500 buses to be replaced • General Assembly went very late, so there wasnt a budget until September

13. 2 big things impacting school bus replacements and contracts • E-Procurement • Lease-Purchase

14. 1. E-Procurement • Eprocurement provides state government with the capability to access state contracts and purchase items electronically. A private company operates the system for the state. Vendors pay a 1.75% "transaction fee" for all sales transacted through the e-procurement system. • 1.75% of the cost of a school bus is around $1000!

15. Legislative Action: • Contracts for school buses and activity buses exempted from the e-procurement transaction fee. • Attorneys determined that this law does not apply to contracts already in place, but it will apply to new contracts. • LEAs are not on e-procurement yet, but it is coming.

16. Lease-purchase of school buses • The legislature directed us to use this year's $10 million appropriation to lease purchase buses This will allow for 450 or so replacement buses rather than 150 or so like this year. Also directed us to get pricing thru banks and bus companies.

17. Current Contract • in place through December ..Does NOT contain lease purchase pricing and includes e-procurement.

18. 2003 Bus Bid - To be opened December 3 • The new contract, beginning January 1, will meet the same specifications, but will address these two issues - lease-purchase and e-procurement pricing • There will be an award in each category for a cash price and for a 3 year lease-purchase price.

19. Financing Option • Once we have the cash prices - December 3 - we will send out an IFB for financing and then open those bids at the same time as lease purchase prices from bus companies. • Lease-purchase or Finance Payments: 3 equal payments • #1 - within 15 days of delivery • #2 - One year from delivery • #3 - Two years from delivery

20. Determine Lowest Price for Each Model Bus • School Bus • School Bus LIFT • School Bus LIFT Flat Floor • Activity Bus • Activity Bus LIFT • Activity Bus LIFT Flat Floor • Activity Bus A/C • Activity Bus A/C, LIFT • Activity Bus A/C, LIFT, Flat Floor • SIZES: • 36 passenger • 54 passenger • 66 passenger • 72 passenger OR

21. Once the lowest price is determined, we will send out an allotment for the LEAs to purchase the buses. LEAs will initiate the purchase LEAs have legal authority to lease-purchase State does not have authority to lease-purchase, especially for other agencies PO’s will still go through DPI Transportation Services Determining Lowest Price

22. FEDERAL INITIATIVES

23. Safety Vests - NHTSA Interim Final Rule • November, 2001 - Issue raised of two inconsistent NHTSA rules/guidelines • Guidelines for Pre-School Transportation; Safety Vests listed as a viable Child Safety Restraint System • FMVSS 213 - prohibition against attaching anything to seat back

24. Major uproar in the industry • State directors survey indicated widespread used of safety vests • EZ On requested NHTSA Action

25. Interim Final Regulation - Exempts Vests Used on School Buses • Restraint System Used only on School Bus Seats • Entire Seat Immediately Behind must be empty or have passengers restrained • To keep seat from taking forces from both directions in a crash • Beginning Feb. 1 seat-mounted harnesses must contain a warning label

26. New category: Multi-function School Activity Bus • Intended to provide a non-school bus option for day care centers and others that transport students but do not make passenger stops • Same construction standards as school buses • No flashing lights or stop signs required • 15,000 lb. Limit

27. Impact of 15,000 Pound Limit • North Carolina Activity Buses - large and small - would still be required to be sold with flashing lights and stop sign, which amounts to unnecessary cost

28. Comments Through January 3, 2003 • http://dms.dot.gov • Docket Number NHTSA - 2002 - 13704

29. Federal "S" Endorsement - School Bus Driver CDL • It appears that a P Endorsement will be required • Implementation - by 2005? • DMV seeking clarification - more info later

30. No Child Left Behind • Letter from Education Secretary Rodney Slater • http://www.ed.gov/News/Letters/020614.html

31. “Transportation. If a student exercises the option to transfer to another public school, the school district has certain obligations to provide or pay for with federal funds the student's transportation to the new school. The school district's obligation for choice-related transportation and supplemental education services is equal to 20 percent of its Title I, Part A allocation. Within the 20 percent, a district must spend: (1) an amount equal to 5 percent for choice-related transportation; (2) an amount equal to 5 percent for supplemental education services; and (3) an amount equal to 10 percent for transportation or supplemental education services, or both, as the district determines. This obligation may be satisfied through use of regular Title I, Part A funds, school improvement funds under Section 1003, or Title V, Part A funds. Additionally, school districts may use funds transferred to Title I from other federal education programs under Section 6123 to pay such costs. Programs eligible for such transfers include Title II, Part A Improving Teacher Quality State Grants; Title II, Part D Educational Technology State Grants; Title IV, Part A Safe and Drug-Free Schools and Communities State Grants; and Title V, Part A State Grants for Innovative Programs. Nothing in the NCLBA prohibits a district from spending more for transportation. Furthermore, a school district is not prohibited from spending state or local funds, if it wishes, to assist in paying for transportation”

32. Education of Homeless Children • McKinney-Vento Homeless Assistance Act • Child that becomes homeless during a school year has a right to attend the school that he was attending before he became homeless • Even if across school district lines - 2 districts must work it out. • If they can’t work it out, each pays half the cost • Transportation Must Be Provided If Requested