the art of cost allocation

..............................................................

The Art of Cost AllocationCareful accounting is needed for fee-for-service transit.

Atop priority for Rodney E.Slater, the United StatesSecretary of Transportation,

is reducing fatalities resulting frommotor carrier-related crashes by 50percent over the next ten years. TheUSDOT has been active in encour-aging Congress to take action to helpmeet this goal. A resolution (HR2679) requiring drivers of commer-cial vehicles capable of transportingmore than eight passengers to obtaincommercial drivers licenses was

Inside:

CostAllocation,continued Page 2

PossibleChanges inCDL Legisl.,continued1

Getting YourBoard Back inthe GroovePage 4

New Form990DisclosureRulesPage 6

Drug andAlcoholTrainingUnder WayPage 7

Developing a Transit/TourismGuidePage 8

Handling a Cold-WeatherVehicleBreakdownPage 10

MaydaySystemsPage 12

CalendarPage 14

ResourcesPage 15

Possible Changesin CDL Legislation

. . . . . . . . . . . . . . . . . . . .by Dawn Jourdan. . . . . . . . . . . . . . . . . . . .

Go to page 2 Go to page 11

. . . . . . . . . . . . . . . . . . . .by Pat Weaver. . . . . . . . . . . . . . . . . . . .

The Kansas Department of Socialand Rehabilitation Services(SRS) recently modified its rules

to allow federally-funded vehicles to beused in transporting Medicaid clients. Thisopens the door for increased funded rider-ship for Kansas transit agencies.However, obtaining a contract to pro-vide these services requires careful allo-cation of funding resources and certifi-cation that there is no duplication of fund-ing. Developing a sound fee-for-service con-

January 2000

The Newsletter for Kansas Rural and Specialized Transportation Providers ● The University of Kansas Transportation Center

2 KTR ● January 2000

Features

tract, for Medicaid transportation orany other contracted services,requires adequate record-keepingand billing procedures to ensureequitable distribution of expensesamong funding sources and compli-ance with contracting regulations.

The Kansas Department ofTransportation (KDOT), SRS andthe KU Transportation Center haveworked together recently to provideguidance to Kansas transit agenciesand area SRS managers to developvalid contracts. The purpose of thisarticle is to outline the steps neces-sary for cost allocation in providingMedicaid transportation services.These procedures can be used indeveloping rates for any fee-for-ser-vice contract—subject, of course, tospecific rules or regulations of thefunding agency.

What is cost allocation?Cost allocation is a financial plan-ning technique for distributing costsamong funding sources or to indi-vidual routes or services. A two-variable model is recommended byAASHTO’s Multi-State TechnicalAssistance Program (MTAP) in itspublication Comprehensive FinancialManagement Guidelines for Rural andSmall Urban Public TransportationProviders. This fully-allocated costmodel, one which accounts for allcosts of providing transportation ser-vice, is a simple equation which useshours and miles as the two servicevariables.

How much does this ride cost?An allocation model determines thecost of services provided by anagency. Allocating costs in a fee-for-service contract requires thatagencies answer two questions:

“How much does this ride cost?” and“What are the sources of paymentfor this service?”

The first question requires acomprehensive revenue and expensestatement along with records docu-menting overall miles and revenuehours of service. Answering the sec-ond question about what entities arepaying for the service requires know-ing the policy rules for each of thefunding sources; in this example, theKansas Medicaid program and theFederal Transit Administration(FTA).

Medicaid and FTA: Selectedpolicy rules for contractingNo duplication. Kansas Medicaidtransportation dollars may not dupli-cate or replace existing fundingresources. If a provider is being paidentirely for a medical trip fromanother source,additionalfunds are notavailable from the

Medicaid program. However, someprograms, such as FTA’s Section5311, do not pay for the entire trip.Section 5311 pays only 50 percent ofeligible expenses associated with theoperating and administrative deficit.Some costs, such as depreciation, arenot eligible for reimbursement fromthe Section 5311 program.

Medicaid can be used to pay forthe portion of regular-service tripsnot reimbursed by Section 5311.

Cost Allocation,continued from page 1

Medicaid dollars can be used to payfor the entire operating cost of thetrip on a Section 5311-financedvehicle only if those trips are not partof the provider’s regular service andthe provider does not receive operat-ing funds from the Section 5311program for that trip or service.

Lowest cost option. The KansasMedicaid program also requires thatthe transportation ser-vices provided forhealth care accessshould be thelowest costoptionavailableto thatclient.SRS orits

agents look for the transit providerthat can offer adequate service at theleast cost.

Private enterprise involvement.If Federal Transit Administrationdollars are involved, agencies mustcomply with FTA’s private enterprisepolicy which requires a true costcomparison when offering servicethat is also provided in the servicearea by private for-profit agencies.

Identifying the true cost of pro-

Detailed accounting is essential. It may be necessary to subdivide your current lineitems to allocate costs accurately. For exam-ple, wages and fringe benefits for personnelneed to be broken down by type of position.

represent most maintenance laborand materials costs as well as fuelexpenses and depreciation. Fixedcosts are expenses that do not varywith number of miles or hours ofoperation; rather, they are dependenton the size of the agency.

Although there are no hard rulesabout expense assignments, a goodstrategy should be logical and under-stood by all, defensible and able topass scrutiny of your funders, andconsistent so that it is useful forwatching cost trends over time.

Finally, once line item assign-ments are made, it is time to calcu-

late unit costs. First, determine thequantity of each resource variable(number of vehicle hours, number ofvehicle miles, and dollar amount offixed costs). Next divide the resourcecosts by the resource quantities toobtain the average unit costs.

For example, an agency with$100,000 assigned to vehicle hours is divided by the number of servicehours (10,000) to give an annual costper service hour of $10. The samecalculation is made for service miles.

The fixed cost factor is calculatedby dividing the costs assigned tofixed costs by the total expense of the service. For example, a programwith $200,000 in total expenses,$50,000 of which are assigned tofixed costs would have a fixed costratio of 25 percent. The fixed costfactor is 1 plus the fixed cost ratio,

KTR ● January 2000 3

or 1.25.To find the cost of one vehicle

or a program, see the formula below.In the case of multiple fundingsources, one method of allocationbetween sources is to use ridershipstatistics to estimate the requiredrevenue from each funding sourceonce the fully-allocated cost estimateis calculated.

Suggestions for more help and informationAn excellent guide to cost allocationis available in Comprehensive Finan-cial Management Guidelines for Rural

and Small Urban Public Transpor-tation Providers, a handbook pro-duced by AASHTO’s Multi-StateTechnical Assistance Program(MTAP) in 1992. A copy of thechapters on cost allocation are avail-able by contacting the Kansas RTAPprogram (see page 15). These chap-ters explain fully-allocated cost models, and provide sample calcula-tions of single agency billing, multi-ple agency billing and multiple fund-ing sources.

Other resources available toKansas providers in developing aMedicaid contract are SRS areaMedicaid managers, your KDOTprogram coordinator (to answer spe-cific questions about your Section5311 contract), the Kansas CTDCouncil for information from other

Features

viding rides is useful for both costreimbursement and performancemonitoring. Cost allocation deter-mines the fair share of costs attribut-able to different entities or fundingagencies for multi-jurisdictional ormulti-purpose services. In perfor-mance monitoring, cost allocationhelps to determine the revenue-to-costs ratio and overall deficit foreach service.

A quick guide to allocatingcosts using a two-variable costmodelApplying a fully-allocated cost modelconsists of three basic steps: 1) assem-ble expense, revenue and operationsdata; 2) assign line item expenseaccounts, and 3) calculate average unitcosts. Most of the data needed can beobtained from the revenue andexpense statement from a full 12-month period. However, a detailedchart of accounts is essential to thisexercise. It may be necessary to sub-divide the line items in your currentsystem to allocate costs accurately. Forexample, wages and fringe benefits forpersonnel need to be broken down bytype of position—drivers, dispatchers,maintenance, and administrative. Asample chart of accounts is availablein the MTAP Financial ManagementGuidelines. It is important to includea full 12-month cycle since all costsmight not be represented in a shortertime frame.

The second step requires catego-rizing line item expenses. In a two-variable fully-allocated cost model,each line item expense is either avariable cost that can be linked toeither hours or miles of service, or isa fixed cost. The rationale for assign-ing costs should be well documented.

The number of vehicle hours isclosely related to driver labor costssince driver expense is a function ofthe amount of time that vehicles arein operation. The number of miles Go to page 5

How to calculate cost?

To find the cost of one vehicle or a program, the formula is as follows:

Annual Total Cost =Fixed Cost Factor x [(Cost per hour x Annual hours of operation) +

(Cost per mile x Annual miles of operation)]


Management

Many transit agencies aregoverned by boards ofdirectors. The members

of these boards are usually volun-teers or agency personnel. Becauseof the rigorous demands placed onboard members, the position canbe challenging, frustrating andoverwhelming—and directorscan sometimes feel uninspiredin their work. It is essentialthat continuous efforts bemade to reinvigorate thesevery important people whodedicate so much of their freetime to providing effectivetransit service. This article providesideas for inspiring the tired anduninspired.

In the May/June 1998 edition ofNon-Profit World, Michael Michalkooutlined seven ways the chairpersonof a Board of Directors might goabout energizing board meetings.These creative strategies are:

1Idea Ticket. New ideas createexcitement. This is why Michalko

suggests that the chairperson requireall members of the board to bring anidea written on a note card to eachmeeting. These idea “tickets” serve asthe member’s pass to get into the

meeting. Meeting time should be setaside so that the members of theboard may share their ideas.

2Everyone’s a Consultant. Thisnext technique proves that you do

not have to hire a consultant to getgood advice. At the beginning of aboard meeting, ask each member towrite down a problem or concern ona sheet of paper. Ask members topass what they’ve written to theright. Have each member take aminute to write a response to theidentified problem and pass it on.Once the papers are back where theystarted, each member should be givenan opportunity to share the proposedsolutions from other board members.You never know—a great solutionmight be right in front of you.

3Showtime! It’s a fact—peoplelike to be entertained. The more

fun something is, the more likelyboard members are to engage in theprocess. Michalko suggests the selec-tion of a thematic concept to attractthe attention of the members. Forexample, the chairperson mightchoose football to emphasize theconcept of teamwork. The chairper-son could wear a football jersey. Theboardroom might be decorated withposters containing inspirational quo-tations from successful footballcoaches. A whistle could be blown tosignify a change in topics. At theconclusion of the event, each boardmember could be rewarded with

. . . . . . . . . . . . . . . . . . . .by Dawn Jourdan. . . . . . . . . . . . . . . . . . . .

GrooveGetting Your Board Back in the

Playful ideas for rejuvenating your board of directors


some sort of memorabilia to com-memorate the event.

4The Sound of Success. Everytime we turn on our television

sets, we are inundated with a vastarray of sounds—from music tolaugh tracks to the realistic sound ofheart surgery being performed onER. These sounds assist in makingviewing experiences more captivatingand memorable. And just as theaddition of sound effects enhancestelevision dialogue, sounds can alsoenhance board meetings. For exam-ple, music may be used to reduce theformality of meetings. The soundeffect of a roaring crowd would be aplayful way to reward a member formaking a valuable contribution atthe meeting. Using a laugh trackmay help diffuse tense situations thatarise among members.

5Toy with Success. Many adultshave the attitude that playing

with toys is for children, not serious-minded professionals. Perhaps this iswhy creative thinking is sometimesso difficult for members of the boardof directors. The truth is, just aschildren learn many lessons fromplaying games, adults may also bene-fit from these activities.

Michalko suggests that thechairperson bring a toy chest to thenext meeting containing varioustoys. The members would then giventhe opportunity to select and playwith a toy. After the board membershave begun acting a little more likechildren, the chairperson should callthe meeting to order and have mem-bers explain what attracted them tothe toy, how playing with it madethem feel and how their toy is simi-lar or different than the organiza-tion. This kind of activity can helpreduce stress, at least temporarily,and can help board members thinkin different ways.

6You’re Fired! Getting fired can bea terrible blow to an individual.

However, Michalko contends thatsometimes it takes this sort of wakeup call to “jolt people out of theircomplacency.” This does not meanthat the chairperson actually needs tofire the members of the board.Rather, the chairperson might insteadask the board members to imaginethat they have been fired from theirpositions and then to consider reap-plying for the job. Have each memberstate why he or she is qualified for theposition and what special skills theywill bring to the job.

7Tell a Story. As children, welearned many lessons of morality

from the telling of Aesop’s Fablesand other stories. Storytelling is alsoa valuable way to teach and inspireadults. This concept may be used to

providers who have allocated costsfor contracting, or Kansas RTAP for

a sample chart of accounts andexamples of cost allocation.

The future of Medicaid contracting in KansasChanges are in the works for con-tracting in the Kansas Medicaid pro-gram. SRS is in the process of devel-oping a Medicaid transportationbrokerage for scheduling medicaltrips. Instead of contracting withyour SRS area office, Kansasproviders would contract with the

motivate a board of directors by hav-ing each of the members pretendthat they have been voted “boardmember of the year.” Have eachmember give an acceptance speechto the group, explaining the contri-butions made by them. This exercisemay be used as a reminder for eachmember about why they got involvedin board service and way to check tosee if they are living up to their ownexpectations.

Sometimes extreme measuresmust be taken to reinvigorate aboard of directors. The ideas listedabove, being more playful than someapproaches, offer a release-valve thatmay free board members from feel-ing bogged down and overwhelmed.

Sources:Non-Profit World, May/June 1998,www.exlaw.com ▲

Cost Allocation, continued from page 3

broker to provide trips.The move to a brokerage system

may produce changes inexisting limitations asso-ciated with the Medicaidprogram. This is becausethe broker likely will havemore discretion in devel-oping contracts to ensuredelivery of service at a

cost-effective rate.In the meantime, any Kansas

transit agency that has not yet devel-oped a fee-for-service contract forMedicaid trips, but has the capacityto do so, is encouraged to contact theSRS Area Office to explore the pos-sibility of a contract.

Source: Comprehensive FinancialManagement Guidelines for Rural andSmall Urban Public TransportationProviders, AASHTO, 1992. ▲

Kansas may be movingtoward a brokerage systemfor Medicaid programs.

Management


Management

990

Nonprofit agencies and donororganizations have encoun-tered difficulties accessing

information from other nonprofits,such as types of services provided,kinds of funding being sought, ortypes of projects philanthropic non-profits are seeking to fund. Suchinformation has been difficult toobtain due to vague statewide andnational record-keeping procedures.

In an effort to increase the qual-ity of reporting and to improve theflow of information, the IRS hasinstituted new rules for disclosure ofinformation on Form 990. The IRShopes to make organizational infor-mation more accessible, to increasethe public knowledge of nonprofitorganizations, to facilitate potentialcollaborations among like-mindednonprofits, to make nonprofits moreaccountable, and resolve problemswith filing previously encountered.

The New RulesThe new rules, which took effect onJune 8, 1999, require nonprofit orga-nizations to provide, on request fromanyone in the public interested inthe information, copies of their threemost recent financial filings of theForm 990 and/or their tax exemptapplication. Previously, nonprofitorganizations were only required tomake the forms available for publicinspection at their offices. Strictpenalties for failure to comply withthe new regulations are also in effect.

The new disclosure rules were

made to comply with a 1996 lawenacted after public complaints aboutthe difficulties in obtaining financialinformation on nonprofits. They pro-vide specific guidelines for makingcopies of nonprofit informationavailable. The rules require that:

● Copies of the three most recentannual tax returns be providedimmediately, upon personal requestor within 30 days of a writtenrequest;

● Copies of the tax exemption appli-cation be provided immediately,upon personal request or within 30days of a written request;

● No charge can be applied to theserequests other than a reasonable feefor copying and mailing the tax documents.

What must be disclosed?All information on Form 990 mustbe disclosed, just as it had in the

IRS Form 990: How will the newdisclosure rules affect your agency?. . . . . . . . . . . . . . . . . . . .by Stephanie M. White. . . . . . . . . . . . . . . . . . . .

There’s no need to worry about a lot of extra work. The option ofon-line filing makes complying with new disclosure rules a snap.


Management

Training Under Way

Tim Harris and I have beenbusy recently. Tim is withThe Consortium, Inc.

(formerly The Mental HealthConsortium, Inc.). Last October weheld six training sessionsacross the state on the set-upand maintenance of FederalTransit Administration Drug& Alcohol Programs forSection 5311 Programproviders. We covered Policy& Procedure Development,Communication, Drug &Alcohol Procedure, Types ofTesting, Substance AbuseProfessional, Training andAdministrative Requirements.

There were 120 people inattendance. Checklists andforms were handed out toassist the providers in the set-up and/or maintenance oftheir program. The feedbackwe received from theproviders was positive. It was obviousthat all of these providers want tohave their FTA Drug and AlcoholPrograms in compliance. Now thatall of the Section 5311 Programproviders have been trained on howto comply with FTA Drug andAlcohol Regulations, I will be visit-ing each of them to ensure that theyremain in compliance.

We were honored to have DaveLumbert, the Drug & AlcoholProgram Manager from Arkansas,attend the Dodge City training.While Arkansas has not been auditedby the FTA, they have been proactive

in collecting valuable informationfrom states that have been audited.This information was used to assistTim and me with our training.Arkansas and Kansas will be workingclosely together to help other stateswith their audit concerns.

Staff at the specimen collectionsites around Kansas will be goingthrough training next year for FTA

compliance. In October, I attendedtraining to become a CertifiedProfessional Collector Trainer, build-ing on my 22 years of nursing expe-rience. The Professional CollectorTrainer certification allowed me tointeract with professionals that havebeen collectors for a number ofyears, gaining insights from theirexperiences. I look forward to con-tinued work with these individuals.

My goal for Kansas is to be inthe forefront of Drug and Alcoholmanagement. I look forward to thechallenges and growth Kansas willhave in the future. ▲

. . . . . . . . . . . . . . . . . . . .by Janet E. Blue, Drug & AlcoholProgram Manager, KDOT. . . . . . . . . . . . . . . . . . . .

Federal Audit Update

Last September, KDOT received aletter from Judy Z. Meade, Office

of Safety and Security Director withthe U.S. Department of Transportation.This letter informed KDOT thatKansas is in compliance with the feder-ally-mandated Drug and AlcoholTesting Program. This cleared theOctober 1998 federal audit findings.

KDOT would like to thank theaudited transit providers for workingdiligently to make this happen.

past, with on-site visits. Thisincludes asset information, a list ofofficers and trustees, and a list ofgrants or contributions. Nine sec-tions make up the full form:

● Part I—revenue, expenses, andchanges in net assets or fund balances● Part II—statement of functionalexpenses● Part III—statement of programservice accomplishments● Part IV—balance sheets, includingreconciliation of revenues and recon-ciliation of expenses● Part V—list of officers, directors,trustees, and key employers● Part VI—other information,including unrelated business, inspec-tion requirements, etc.● Part VII—analysis of income-producing activities● Part VIII—relationship of activitiesto the accomplishment of exemptpurposes● Part IX—information regardingtaxable subsidiaries

Online Option Eases DisclosureComplianceThe rules for providing informationupon request are waived for anyorganization that chooses to posttheir 990 Forms and tax exemptionapplication online. Nonprofits caninclude this data on their own Website, post the information as a singlepage, or can provide the informationon one of the large charitable-givingWeb sites that provide individualorganizations’ financial informationonline. For example, The FoundationCenter (fdncenter.org) andGuideStar (www.guidestar.org) eachhave expansive directories that pro-vide donor information and listingsof nonprofit tax forms. GuideStar isin the process of digitizing and mak-ing 1997 Form 990s available for

Go to page 14

Section 5311 Providers Receive Drug and Alcohol Testing Training

Does your bus route pass bya quaint city park or aninteresting historic district?

Do your customers enjoy eating ateclectic little restaurants or visitingyour city’s art museum? Are yourcurrent customers and potentialfuture patrons fully aware of theamenities within your communitythat can be reached by public transit?By creating a community transitguide that highlights attractionsaccessed by public transit, you canbetter meet the needs of your currentpassengers, encourage new people touse your transit system and promoteregional tourism.

Example from Seattle AreaSnohomish County CommunityTransit (CT) in Washington is atransit agency that has developedsuch a guide. Community Transit,which offers fixed-routes, vanpools,rideshares, and dial-a-rides, providesservices for Snohomish Countyincluding downtown Seattle andoutlying rural areas. CommunityTransit’s A Visitor’s Guide to GettingAround Snohomish County by Bus,provides tourists and local passengerswith information about how to ridethe CT buses, what routes serve eachcommunity, and information aboutattractions in the area including a listof parks, pools, shopping, restau-rants, theaters, and other highlights.To receive copies of the transitguides, riders can contact theSnohomish County Tourism Bureau


Marketing

at (888) 338-0976, pick up the guideat various distribution sites in thecounty including tourism offices andhotels, or they can get a copy on anyCommunity Transit bus.

The transit guides have proven tobe a successful marketing tool toincrease the visibility of SnohomishCommunity Transit and transit ingeneral. CT Executive Director JoyceOlson commented, “By showing visi-

tors how they can get to SnohomishCounty attractions conveniently andcomfortably, the brochure promotesregional tourism and encourages morepeople to use transit.”

While the guide is primarilydesigned for tourists, the guide alsoalerts local people about communityattractions, businesses, and servicesof the agency.

Designing a BrochureOnce you have decided that a com-munity transit brochure would bebeneficial for your community andyour transit agency, start by outliningthe specific amenities you wish tohighlight. Specific target areasshould include: parks, restaurants,

museums, shopping centers, lakes,theaters, historic sites, hotels, publicoffices and other destinations typi-cally frequented by tourists.

Ask your riders about theirfavorite places within the communitythat they can either reach by bus orwould like to be able to access by bus.Consider their inputwhen deciding whatshould be included in

your transit brochure. Also, contactthe office of tourism or the chamberof commerce for your city or countyfor additional information and ideasfor other attractions that you mayhave overlooked.

When deciding what to include,consider the timespan you want thebrochure to cover. Will you periodi-cally update your brochure to includenew amenities or do you want toemphasize attractions that are likelyto be permanent spots like parks,lakes, and large shopping areas? Ifyou are not interested in periodicupdates, you may want to considerwhether or not you want to includeshops and restaurants that may notbe around in the future.

A transit guide should include places on your routes, like restaurants, historicsites and parks that people would enjoy visiting.

. . . . . . . . . . . . . . . . . . . .by Stephanie M. White. . . . . . . . . . . . . . . . . . . .

Transit & Tourism


Importance of PartneringNeil Neroutsos, Public InformationCoordinator for Community Transit,suggests that an essential componentwhen developing a transit guide is tocollaborate with your visitor center,tourism bureau, Chamber ofCommerce, and local businesses.Partnering with these agenciesensures that the guide will contain allthe necessary information and will bewell distributed after its publication.

Community Transit strives towork with businesses to build “cam-paigns” together, promoting both thebusiness and transit services. A cre-ative example is how CommunityTransit packages theme-based cam-paigns with area businesses. Forinstance, CT promotes specific sum-mer festivals by offering specials forindividuals who ride the bus to thefestival on a certain day of the week.The rider is either given a reducedbus fare for the ride or a reduced fes-tival admission. Festival advertisingand the transit guide then advertisethe special, promoting commerce inthe community and the use of publictransportation.

Organization and DesignOnce you know what should beincluded in your transit guide, youneed to decide whether your agencyhas the expertise needed to designthe guide in-house or whether itwould be more efficient to contractwith an outside agency to design thebrochure for you. If you have thecomputer technology and personnelto design the brochure within theagency, you can cut costs somewhat.However, hiring an outside individ-ual to create the brochure mightprove to be more effective while alsostill being relatively inexpensive.

The brochure should include notonly a list and description of ameni-ties that can be reached by publictransit, but it should also include

how to use the transit system, thecost of riding the bus, a map of theroutes with the amenities displayedalong the routes, and schedule infor-mation. If space permits, it is also anice touch to include some historicinformation about the town or thecounty and the transit system.

An essential part of designingthe brochure is to remember theguide must be easy for riders to readand understand. Include addressesand phone numbers forinformation and anyother technical assistanceinformation that may beneeded, i.e., for disabledaccess. Also, strive tomake the brochure asvisually appealing as pos-sible. Consider putting apicture of your bus oryour logo on the cover so people canrecognize it when they see it.

Cost ConsiderationsThe cost of producing the transitguide is minimal considering theamount of marketing and advertisingthat it can provide for your agency,especially if it is produced in-house.To further cut costs, you can consid-er having a few advertisers or co-sponsors for your guide. One optionis to charge a minimal fee for restau-rants or shopping centers wishing tobe highlighted in the guide. Butremember, the guide should be smalland convenient to carry, so you willwant to keep advertisers and spon-sors at a minimum.

To reduce their production costs,Snohomish Community Transit part-nered with the Snohomish CountyTourism Bureau to produce theirguide. The total budget for theirguide was $10,000—$8,000 forprinting and development and$2,000 for labor. Community Transitreceived a 50 percent grant from thecounty for printing and develop-

ment, so CT’s expenses for the pro-ject were $6,000. CT is consideringincluding advertisements in thefuture when they update the guide.

Marketing and DistributionDistributing and marketing yourtransit guide are relatively easy. LikeSnohomish County, you can distrib-ute the guide on buses, in tourismoffices, at restaurants and shoppingcenters, or by answering phone

requests received by your agency andyour community’s office of tourism.If your agency or community has aweb site, you can provide the infor-mation about the transit guide onthe Internet. Some agencies chooseto provide all of the information intheir transit guide on the Internetwhile others choose only to say howto obtain a copy of the guide.Whichever you choose, the Internetis becoming a good resource for dis-tributing information and marketingtransit agencies.

For more information on theSnohomish Community Transitguide, contact CT at (425) 348-7100or the Snohomish County TourismBureau at (888) 338-0976.

Sources“Community Transit Guide High-lights Attractions Within Reach byBus,” Grass Routes, Washington StateRural Transportation Newsletter,May-June 1999, page 4.

CT’s Web Page, www.wsdot.wa.gov/pubtran/getthere/Ctbus.htm ▲

Marketing

Think about how oftenyou’ll update the

brochure in decidingwhat features to include.


Safety

Few things are inevitable, butKansans can count on this:Just as Kansas summers are

hot, the winters will be cold. Transitvehicles are sensitive to extremeweather conditions—and so are theirpassengers. For this reason, driversmust prepare to deal with weather-related problems, such as a vehiclebreakdown when the temperaturehas dropped below freezing.

Most breakdowns can be pre-vented if the vehicle is properlyinspected and maintained on a dailybasis. However, some problems eludeeven the most diligent drivers. Yourmust have a plan of action to enableyou to “keep their cool” when it iscold outside.

Your primary concern should bethe safety the passengers. Therefore,the first step in dealing with a vehic-ular malfunction is removing thevehicle from the flow of traffic.Slowly pull over onto the shoulder ofthe road or other location out of theway of traffic. Put the vehicle in“park,” apply the emergency brakeand turn on the hazard lights. Thenradio your agency’s dispatcher toreport the problem. Depending onthe malfunction, you may wish toask for assistance immediately orwait until the problem has been

thoroughly assessed.If you choose to assess the prob-

lem before seeking assistance fromthe dispatcher, a number of impor-tant steps must be taken before youleave the vehicle. First, tell the pas-sengers why you have pulled overand the steps you are taking toaddress the problem. Tell passengersto remain inside the vehicle and intheir seats, for the time being. Next,check to make sure that each passen-ger is wearing a coat, hat and gloves.The vehicle should be equipped withadditional hats and gloves andenough warm blankets to haveenough for each passenger.

You should also be able toinstruct passengers on a few simpleexercises that they may do whileseated to keep themselves warm.Hand clapping and foot stompingare the easiest and most effectiveways to help keep warm.

Once the passengers have beenadequately advised about the situa-tion and their warmth is assured, youshould let the passengers know thatyou will be momentarily exiting thevehicle so that the problem may beassessed. Be aware of traffic andweather conditions when exiting thevehicle. The door of the vehicleshould be closed immediately to pro-tect passengers from the cold.

The vehicle assessment must beconducted as quickly as possible.

Brrrr!If your vehicle breaks down inthe cold, don’t lose your cool.

Don’t attempt to fix any malfunctionthat would take more than a fewminutes. A few minutes out in theelements can be detrimental to yourhealth.

Unless a quick fix is possible,your next step should be to get help.Most transit vehicles are equippedwith a radio or cell phone. Oncecontacted, the dispatcher can sendhelp immediately. If these fail tofunction, you may be tempted toseek help on foot. However, leavingthe vehicle and its passengers unat-tended is not recommended for safe-ty reasons. The best option is to flagdown a passerby willing to telephonethe dispatcher or the police.

Upon summoning assistance,return to the vehicle and check onthe passengers. Begin by telling pas-sengers the steps that have beentaken to secure assistance. Thenassess the comfort of your passengersby asking them how they feel. Oftenolder passengers, passengers withdisabilities or those taking medica-tions will not be as aware of thecold. This does not mean that theyare not at risk. Rather, some passen-gers are slow in realizing that theyare being affected by the change intemperature.

The effects and quick onslaughtof hypothermia on stationary passen-gers should not be underestimated.Join the passengers in foot-stomping

. . . . . . . . . . . . . . . . . . . .by Dawn Jourdan. . . . . . . . . . . . . . . . . . . .

❆

❆Winter Emergency Kit

The Scotti School of Defensive Driving, Medford, Mass., encour-ages drivers to carry the following:

❆ windshield scraper ❆ snow brush❆ booster cables ❆ de-icing spray❆ small snow shovel ❆ tire chains❆ boots and heavy socks❆ sand or cat litter (for traction)❆ wire-drying spray for moisture problems under the hood❆ a blanket for yourself (as well as those for passengers)

Also helpful are: flashlights, rope, a first aid kit, extra fuses, a fireextinguisher, flares or reflective emergency triangles, a pocket knife,extra chains and a CB radio or cellular phone. Waterproof winterclothing, high-calorie food and a jug of water can come in handy, too.

Reprinted with permission from Safedriver, published by the NationalSafety Council, 1121 Spring Lake Drive, Itasca, IL 60143-3201.


and hand-clapping exercises.Passengers that are unable to per-form such movements should becarefully monitored for signs of coldsuch as shivering or numbness.Cover them with extra blankets toensure their health and safety.

While this plan of action ishighly detailed, the steps containedin it will happen quickly in the caseof a breakdown. All drivers in youragency should be instructed on theseor similar procedures and have theopportunity to practice them so thatthey are well equipped to deal withwinter breakdowns if, and when,they occur.

Sources:www.commuter-register.org;www.theautochannel.com;Nevada Milepost, Winter 1995;Kansas LTAP Winter Fact Sheet,Fall 1999. ▲

Safety

CDL Legislation, continued from page 1

passed by the House of Represen-tatives in October, 1999 as one strat-egy to improve motor carrier safety.A similar bill entitled the “MotorCarrier Safety Improvement Act of1999” is pending before the Senate.

Program Changes ProposedNew Motor Carrier SafetyAdministration. A purpose of thisproposed legislation is to improve theCommercial Drivers License (CDL)Program, as presently set forth in 49U.S.C. 31311(a). If adopted, the billwould establish a separate MotorCarrier Safety Administration withinthe Department of Transportation.According to an August 5, 1999press release sent out by the office ofSenator John McCain (R-AZ), thisnew agency would be charged withcarrying out the Federal motor carri-

er safety enforcement and regulato-ry responsibilities currently held bythe FHWA. The agency would beheaded by an administrator,appointed by the President andapproved by the Senate.

CDLs Needed to Drive SmallerVehicles. The legislation, if passed,also would change certain elementsof the current CDL Program. Onekey change for Kansas transitproviders is a proposed requirementthat drivers of commercial vehiclescapable of holding eight or morepassengers obtain a commercial dri-ver’s license. The current law appliesto drivers of vehicles designed totransport 16 or more passengers.The potential implications of thislegislation is that agencies may havedifficulty finding drivers with

CDLs, agencies may bear the cost ofre-licensing in order to attract orretain drivers, and agencies will haveadditional costs of testing for drugand alcohol now required of CDL-licensed drivers of larger vehicles.

This bill is currently being exam-ined by the Senate Surface Transpor-tation Subcommittee and has notbeen slated for hearing. Its status maybe monitored by contacting SenatorMcCain’s office by telephone at (202)224-2235. The text of the bill isaccessible on the Web at:http://thomas.loc.gov

Sources: www.fhwa.dot.gov/contac-tus/press/1999/101499.htm;“Commercial Driver License inKansas,” RTAP Fact Sheet, April1990; and Kansas Trans Reporter,May 1990. ▲

❆


Computers

MayDay!

“Help! I’ve been in anaccident! Please sendan ambulance!!”

“I will, sir, as soon as you tell meyour location.”

“I’m not really sure. We’re some-where on Highway 50, west ofHolcomb.”

Similar scenarios happen all toooften making it difficult for injuredmotorists or disabled vehicles to getthe emergency help they need.Consider a bus filled with passengersstranded on a rural Kansas road dur-ing the middle of the winter. If thedriver is unable to successfully con-tact a source of emergency assis-tance, a minor problem couldbecome a major emergency in a mat-ter of minutes.

In efforts to improve the abilityof emergency teams to locate andassist motorists in crises, MaydaySystems, have been developed todetermine the exact location of anaccident or distressed vehicle—andthen pass that information on toemergency response teams. Asreported by Dr. Eric Meyer,Assistant Professor of Civil andEnvironmental Engineering at theUniversity of Kansas, “MaydaySystems represent an integration oftechnologies that can reduce high-way crash notification time to aboutone minute.”

One of the first MaydaySystems to be installed on a vehiclewas the RESCU System on the Ford

1996 Lincoln Continental.Since then, about six auto man-ufacturers including GeneralMotors, Lexus, Infiniti,Mercedes-Benz, BMW, andJaguar have begun offeringMayday Systems as optionson several of their models.Currently, GM has over70,000 users of their OnStarMayday System. Individualvendors have also begunoffering “after-market”Mayday Systems that canbe installed in any existingvehicle.

How Does it Work?A Mayday System notifies the prop-er authorities of emergency situa-tions quickly, relying on automaticmechanisms to convey informationabout the location and nature of theincident. For example, if an individ-ual is having car trouble and needs atow truck or if they are lost and needto get directions, they can use theMayday System to call for assistancewithout personally needing to knowtheir location.

In non-collision incidents, theindividual would generally use a cel-lular phone (included in mostMayday packages) to request assis-tance. When the driver pushes a spe-cial button, the Mayday deviceinstalled in the car would send a sig-nal that would provide the authori-ties with information concerning thelocation (latitude and longitude, andelevation) or condition of the vehi-cle. Or when a vehicle is involved ina collision, the Mayday System

would work automatically, noti-fying authorities that an acci-dent has occurred, providingboth a location as well assome idea of the severity ofthe accident. In most MaydaySystems, when the driver’sside airbag deploys, theimpact of the airbag triggersa device which in turn initi-ates the Mayday Systemand the distress signal issent. However, not all acci-dents will cause the dri-ver’s side airbag to deploy.As the systems becomemore sophisticated, devel-opers are producing ones

that will be triggered by accelerome-ters that can detect any type of crashincluding rollovers. These moresophisticated systems exist, thoughthey are not yet commercially avail-able.

Five Components of MaydayIn-Vehicle Activation System. SomeMayday Systems have the ability toautomatically detect when a collisionhas occurred. Those systems that donot have this feature require a driveror passenger who is not incapacitat-ed to press a button on the dash-board or overhead console to activatethe response system.

Vehicle Location System. Various tech-nology exists that can relay vehiclelocation information via satellite tothe appropriate authorities. TheGlobal Positioning System (GPS) isa “system of satellites which broad-cast signals from which a special

. . . . . . . . . . . . . . . . . . . .by Stephanie M. White. . . . . . . . . . . . . . . . . . . .

●


receiver can determine its location,according to the Mayday for KansasWeb site.

Communication System. The vehicle isequipped with a special device thatcan contact authorities with perti-nent information. Various transmit-ters are on the market ranging fromdevices that are automatically trig-gered upon impact to transmittersthat require an individual to activatethem. All the systems marketed tothe general public use cellularphones for both data transmissionand voice communication betweenthe emergency response team andthe caller.

Mayday Response Center. The distresscall is received at a facility equippedto pinpoint the accident on a map.The response center can then callthe closest appropriate responderand provide the responder (ambu-lance, police, etc.) with directions tothe incident location.

Emergency Response Team. Once thesystem has helped to alert the appro-priate emergency response personnel,the emergency team can quickly andmore effectively meet the needs ofthose in need.

Are Mayday Systems Feasiblein Rural Kansas?Definitely! Rural areas need MaydaySystems more than any other areasdue to the relative isolation of ruralroads and available emergencyresponse teams. Mayday Systems are being offered relatively inexpen-sively and can be easily installed ontransit vehicles. Currently, the cost of the system is generally less than$1000. It is expected that as thetechnology becomes standard andaccess improves, the system cost willbe reduced.

As Mayday systems are becom-

ing more popular, subscriber servicesare being offered much like for cellu-lar phones. For example, GeneralMotors has recently run an offer toinstall their OnStar system for free,as long as the customer commits to ayear’s subscription, paying a monthlyrate of $20 to $25. Considering thatall systems marketed to the publicuse cellular phones for data trans-mission, you can get the cellularphone and the Mayday System forabout the same cost as a cellularphone alone.

Though Dr. Meyer doubts thatthe Mayday System will ever becomestandard or required on vehicles, hedoes believe that they will becomeincreasingly common options. Hesuggests that the devices have futureinsurance implications and benefitsas well. It is expected that onceinsurance companies are able to seethe safety benefits from such sys-tems, they will offer reduced rates toindividuals and agencies that use theMayday technology.

Establishing a Mayday Systemin Your AgencyMayday Systems are relatively easyto establish in transit agencies. Thefirst step is to contact one of theafter-market vendors like ATXTechnologies, RoadTrac orAdvanced Wireless Technologies.For a list of vehicle security serviceproviders, check out Fall CreekConsultants’ Web site atwww.comm-nav.com/security.htm.This site provides links to over35 different vendors that offer differ-ent types of security services, includ-ing Mayday Systems. Compare thevarious services that they provideand determine which company hasthe services that meet your needs atthe best price.

The General Motors’ site,www.onstar.com, describes the vari-ous services that they provide and

allows you to search for the closestdealer. GM’s OnStar MaydaySystem’s motto is “Wherever you go,here we are.”

If your agency has a radio dis-patch system, a Mayday-relatedcomponent could be integrated intothe radio system that would allowthe driver to contact the agency forassistance. The Kansas HighwayPatrol has implemented a pilot radiosystem in eastern Kansas that hasworked well. They are consideringimplementing it throughout thestate. The system has a console withstatus buttons that a driver can pushto notify a dispatch center of anyactivity. For example, a bus drivercould push a button that would sig-nal vehicle trouble or a button thatwould suggest delays. The transitagency would then need to contactthe necessary authorities for assis-tance to be provided. Radio systems,while offering some Mayday fea-tures, do not deploy automatically inthe case of an accident.

For more information onMayday Systems, search the Internetwith key word “Mayday” or link tothe Mayday for Kansas Web site athttp://129.237.114.62/mayday/com-ponents.html.

SourcesMayday for Kansas Web site athttp://129.237.114.62/mayday/com-ponents.html

“Rural Highway Deployment Plan,”Arizona Transportation ResearchCenter, May 1999.

www.comm-nav.com/security.htm

www.onstar.com

Meyer, Eric. “Assessment ofMayday-Related Technologies,” apaper presented to KDOT, Oct, 20,1999. ▲

Computers


Calendar

January 9-13, 200079th Transportation ResearchBoard Annual Meeting,Washington, D.C. For moreinformation, contact PatriciaMcLaughlin at (202) 334-2934 or access the TRBhomepage atnas.edu/trb/meeting/index.html.

January 29-February 2, 2000APTA General Managers’Seminar. For more information,contact Tom Urban at(202) 898-4053.

January 30-February 1, 2000SWTA 20th Annual Conferenceand 2000 EXPO, San Antonio,Texas. For more information,contact SWTA at (210) 967-6446.

February 27-29, 2000FTA Compliance Workshop,Kansas City, Missouri. Formore information, contact FTAat (202) 366-0201.

March 26-29, 2000Transit Trainers’ Workshop2000, Portland, Oregon. Formore information, contact theNational Transit Institute at(732) 932-1700, ext. 23.

April 2-4, 2000APTA Risk ManagementSeminar, Long Beach,California. For more informa-tion, contact Vivienne Williamsat (202) 898-4057.

June 3-June 9, 2000CTAA EXPO 2000 AnnualConference, Ft. Lauderdale,Florida. For more information,contact Charles Dickson at(202) 661-0208 or at [email protected].

Editor’s Note: To include meetings or workshops in ourcalendar section, please sendinformation to Kansas TransReporter, KUTC, 2011 LearnedHall, Lawrence, KS 66045.

Rural Transit Conferences and Workshops

New Disclosure Rules for IRS Form 990, continued from page 7

over 200,000 organizations on itsWeb site. GuideStar and TheFoundation Center provide descrip-tive information about the 990 Formso visitors to the sites can betterunderstand the nine sections of theform. On GuideStar’s site, nonprofitswill eventually be able to link theirsites to their 990 form on GuideStar,providing easy access to informationseekers just one link away.

In order to reduce IRS’ costs ofproviding forms as well as individualagencies’ costs of making the formsavailable, it is anticipated that agen-cies will eventually be required to fileIRS forms electronically. WhileWilliam Levis, director of the “990in 2000” Project, says that “There’s alot of hurdles to go over beforethere’s mandatory filing,” he expectselectronic filing to be in place withinten years.

Benefits of Electronic FilingElectronic filing not only provideseasier access to tax information but itmakes it easier and more efficient fordonors to give to charitable organiza-

tions. It also guards against charitablefraud. Requiring that the Form 990be made readily available for the pre-ceding three years allows donors tochart the effectiveness of an organi-zation while also allowing them todiscern specific target areas for fund-ing needs. Electronic access makesthis task even easier.

Growth in the philanthropicsector can also be charted. Nonprofitorganizations seeking funding canchart the giving of donors in order togain insight into the specific areasthat donors are willing to fund.Nonprofit agencies can search theGuideStar and The FoundationCenter Web sites for donors whogive to certain types of agencies orwho target specific types of services.

Realizing that a major obstaclefor nonprofit organizations is thelack of across-agency communica-tion, nonprofit organizations andInternet site designers hope thatelectronic filing and the new Form990 will provide the basis for orga-nizing a national nonprofit collabo-ration. By providing the information

online, nonprofits will have aresource to connect with other simi-lar agencies for advice and will begina dialogue to work toward moreeffective delivery of services.

Sources“The Form 990: New Accountabilityhas its Price,” The Nonprofit Times,August 1999. Page 31.

“The IRS Form 990-PF,” TheFoundation Center Online Orientationto the Grantseeking Process, found onwww.fdncenter.org.

“IRS Releases Regulations onDisclosure of Nonprofit FinancialReporting,” The Foundation Center Online Orientation to theGrantseeking Process, found onwww.fdncenter.org.

Form 990, “Return of OrganizationExempt from Income Tax,” OMBNo. 1545-0047, IRS. ▲


Resources

Publications Videotapes

Resources Order Form

THESE RESOURCES are distributed free of charge, unless noted otherwise, as a service ofthe Kansas Rural Transportation Assistance Program. Please use the order form onthis page to order the publications and videos described here. Videos are available fortwo-week loans; please request no more than two videos at a time.

❏ Complying with Federal Regulations: A Primerfor Rural Transit Providers. (7 pages). RTAPTechnical Assistance Brief, 1996. DiscussesFederal requirements most likely to affect ruraltransit systems.

❏ Estimation of Operating and MaintenanceCosts for Transit Systems. (150 pages).USDOT/FTA/KPMG Peat Marwick, 1992.

❏ Public Transportation Marketing EvaluationManual. (82 pages). UMTA, 1997.

❏ Chapters on cost allocation from:Comprehensive Financial Management Guidelinesfor Rural and Small Urban Public TransportationProviders, AASHTO, 1992.

❏ Mayday! Emergency Notification System. (10 min.). The Enterprise Group, 1996. This video pro-vides a good introduction to the Mayday System,which notifies authorities of an incident quickly andconveys important information about the nature andlocation of the incident.

❏ Ready...Set...Winter! Driving Safely on Ice andSnow. (10 min.). AAA and General Motors, 1996.This video provides an overview of how to prepare thevehicle for winter weather, describes several drivingsituations requiring special attention and explainshow to handle common winter driving problems.

Video Cassette Recorder Loan Program❏ Please send a video cassette recorder!If you will need a video cassette recorder to view videos available from us, please note it here. Videosand recorders are available for two weeks to help make the service available to everyone. We are cur-rently building our video library; if you have a video you are willing to share, please call us on the Hotline.

Name Title

Agency Phone

Street Address

City State Zip + 4 Date Materials Needed

The Kansas Trans Reporter is an educational publication published quarterly by the KansasUniversity Transportation Center. The newsletter is distributed free to rural and specializedtransit providers and others with an interest in rural and specialized service.

The Kansas Trans Reporter is co-sponsored by the Federal Transit Administration under its Rural Transportation Assistance Program (RTAP) and the Kansas Department of Transpor-tation. The purposes of the program are to: 1) educate transit operators about the latest technologies in rural and specialized transit; 2) encourage their translation into practical application; and 3) to share information among operators.

Reproduction of material appearing in the Kansas Trans Reporter requires written permis-sion. Copyright 2000, Kansas University Transportation Center. All rights reserved.

For a free subscription to the Kansas Trans Reporter or tocontact one of our faculty or staff, call toll-free 800/248-0350 (in Kansas) or 785/864-5658 (outside Kansas) orsend a fax to 785/864-3199. Send correspondence to KansasTrans Reporter, Kansas University Transportation Center,2011 Learned Hall, Lawrence, KS 66045. Send e-mail messages to Patricia Weaver at [email protected] Lisa Harris at [email protected].

Please send us the inside form with corrected addressinformation, or fax your changes to 785/864-3199.

In addition to publishing the Kansas Trans Reporter, theKansas RTAP program offers a variety of other educationalservices. Following is a partial list of these services:

● Publication dissemination ● Technical assistance ● Computer database searches ● Telephone consultation ● Referral services ● Training development ● Video lending library● Program planning assistance

Assistance can be obtained by contacting a Kansas TransReporter staff person at the numbers or address above.

Project Director . . . . . . . . . . . . . . . . . . . . . Pat WeaverEditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lisa HarrisEditorial Assistant . . . . . . . . . . . . Stephanie M. WhiteStudent Writers . . Stephanie M. White, Dawn Jourdan

Co-sponsored by

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