DOT 49 CFR PART 639-2010 CAPITAL LEASES.pdf

1、466 49 CFR Ch. VI (10110 Edition) 633.27 construction and for system installa-tion and integration of system compo-nents; (h) Material testing policies and pro-cedures; (i) Plan for internal reporting re-quirements including cost and schedule control procedures; and (j) Criteria and procedures to be

2、 used for testing the operational system or its major components; 633.27 Implementation of a project management plan. (a) Upon approval of a project man-agement plan by the Administrator the recipient shall begin implementing the plan. (b) If a recipient must modify an ap-proved project management p

3、lan, the recipient shall submit the proposed changes to the Administrator along with an explanation of the need for the changes. (c) A recipient shall submit periodic updates of the project management plan to the Administrator. Such up-dates shall include, but not be limited to: (1) Project budget;

4、(2) Project schedule; (3) Financing, both capital and oper-ating; (4) Ridership estimates, including op-erating plan; and (5) Where applicable, the status of local efforts to enhance ridership when estimates are contingent, in part, upon the success of such efforts. (d) A recipient shall submit curr

5、ent data on a major capital projects budg-et and schedule to the Administrator on a monthly basis. 633.29 PMP waivers. A waiver will be considered upon ini-tiation by the grantee or by the agency itself. The Administrator may, on a case-by-case basis, waive: (a) Any of the PMP elements in 633.25 of

6、this part if the Administrator determines the element is not nec-essary for a particular plan; or (b) The requirement of having a new project management plan submitted for a major capital project if a recipi-ent seeks to manage the major capital project under a previously-approved project management

7、 plan. PART 639CAPITAL LEASES Subpart AGeneral Sec. 639.1 General overview of this part. 639.3 Purpose of this part. 639.5 Scope of this part. 639.7 Definitions. Subpart BRequirements 639.11 Lease qualification requirements. 639.13 Eligible types of leases. 639.15 Eligible forms of grant. 639.17 Eli

8、gible lease costs. 639.19 Other Federal requirements. Subpart CCost-Effectiveness 639.21 Determination of cost-effectiveness. 639.23 Calculation of purchase or construc-tion cost. 639.25 Calculation of lease cost. 639.27 Minimum criteria. Subpart DLease Management 639.31 Early lease termination or m

9、odifica-tion. 639.33 Management of leased assets. AUTHORITY: 49 U.S.C. 5302; 49 CFR 1.51. SOURCE: 56 FR 51794, Oct. 15, 1991, unless otherwise noted. Subpart AGeneral 639.1 General overview of this part. This part contains the requirements to qualify for capital assistance when leasing facilities or

10、 equipment under the Federal transit laws. This part is set out in four subparts, with subpart A containing general information on scope and definitions. Subpart B con-tains the principal requirements of this part, including eligibility require-ments, the self-certification system used, and identifi

11、cation of the various forms of leases and grants that are eli-gible under the program. Subpart B also contains a section on other Fed-eral requirements that may apply. Sub-part C includes the actual calculations that each recipient should undertake before certifying that a lease is cost-ef-fective.

12、Finally, subpart D contains re-quirements on early lease termination and project management in general. 63 FR 68366, Dec. 10, 1998 VerDate Mar2010 10:10 Dec 13, 2010 Jkt 220218 PO 00000 Frm 00476 Fmt 8010 Sfmt 8010 Y:SGML220218.XXX 220218wwoods2 on DSK1DXX6B1PROD with CFRProvided by IHSNot for Resal

13、eNo reproduction or networking permitted without license from IHS-,-,-467 Federal Transit Admin., DOT 639.13 639.3 Purpose of this part. This rule implements section 3003 of the Transportation Equity Act for the 21st Century (Pub. L. 105178). Section 3003 amended section 5302 of Chapter 53 of Title

14、49 of the United States Code to allow a recipient to use capital funds to finance the leasing of facilities and equipment on the condition that the leasing arrangements are more cost ef-fective than purchase or construction. 63 FR 68367, Dec. 10, 1998 639.5 Scope of this part. This part applies to a

15、ll requests for capital assistance under Chapter 53 of Title 49 of the United States Code where the proposed method of obtain-ing a capital asset is by lease rather than purchase or construction. 63 FR 68367, Dec. 10, 1998 639.7 Definitions. In this part: Applicant is included in the term recipient.

16、 Capital asset means facilities or equipment with a useful life of at least one year, which are eligible for capital assistance. Capital assistance means Federal fi-nancial assistance for capital projects under section 9 of the FT Act. Capital lease means any transaction whereby the recipient acquir

17、es the right to use a capital asset without ob-taining full ownership regardless of the tax status of the transaction. Equipment means non-expendable per-sonal property. Facilities means real property, includ-ing land, improvements and fixtures. Interest rate means the most advan-tageous interest ra

18、te actually avail-able to the recipient in the market. Present value means the value at the time of calculation of a future pay-ment, or series of future payments dis-counted by the time value of money as represented by an interest rate or simi-lar cost of funds. Recipient means an entity that re-ce

19、ives Federal financial assistance from FTA, including an entity that re-ceives Federal financial assistance from FTA through a State or other public body. In this part, a recipient in-cludes an applicant for Federal finan-cial assistance. FT Act means the Federal Mass Tran-sit Act of 1964, as amende

20、d, 49 U.S.C. 1601 et seq. FTA means the Federal Transit Ad-ministration. Subpart BRequirements 639.11 Lease qualification require-ments. (a) A lease may qualify for capital as-sistance if it meets the following cri-teria: (1) The capital asset to be acquired by lease is otherwise eligible for cap-it

21、al assistance; (2) There is or will be no existing Federal interest in the capital asset as of the date the lease will take effect unless as determined pursuant to 639.13(b); and (3) Lease of the capital asset is more cost-effective than purchase or con-struction of the asset, as determined under su

22、bpart C of this part. (b) Once a lease has been qualified for capital assistance, it need not be re- qualified absent an affirmative act or omission by the recipient that vitiates the cost-effectiveness determination. 639.13 Eligible types of leases. (a) General. Any leasing arrangement, the terms o

23、f which provide for the re-cipients use of a capital asset, poten-tially is eligible as a capital project under Chapter 53 of Title 49 of the United States Code, regardless of the classification of the leasing arrange-ment for tax purposes. (b) Special circumstances. A recipient may request FTA to d

24、etermine the eli-gibility of a certain financial arrange-ment if the recipient believes it might not meet the requirements of this part. (c) Lump sum lease. A recipient that wishes to enter into a lease which re-quires the draw down of a single lump sum payment at the inception of the lease (or paym

25、ents in advance of the incurrence of costs) rather than peri-odic payments during the life of the lease must notify FTA prior to execu-tion of the lease concerning how it will ensure satisfactory continuing control of the asset for the duration of the lease. FTA has the right to disapprove VerDate M

26、ar2010 10:10 Dec 13, 2010 Jkt 220218 PO 00000 Frm 00477 Fmt 8010 Sfmt 8010 Y:SGML220218.XXX 220218wwoods2 on DSK1DXX6B1PROD with CFRProvided by IHSNot for ResaleNo reproduction or networking permitted without license from IHS-,-,-468 49 CFR Ch. VI (10110 Edition) 639.15 any arrangements where it has

27、 not been demonstrated that the recipient will have control over the asset. FTA may require the recipient to submit its cost-effectiveness comparison for re-view. (d) Pre-existing lease. A lease entered into before grant approval, or before November 14, 1991 may be eligible for capital assistance fo

28、r costs incurred after approval of such a lease by FTA under this part, if (1) The lease is otherwise eligible under this part; (2) The recipient can demonstrate that the lease, when entered into, was more cost effective than purchase or construction; and (3) The procurement of the asset by lease wa

29、s in accordance with Federal requirements that applied at the time the procurement tool place. 56 FR 51794, Oct. 15, 1991, as amended at 63 FR 68367, Dec. 10, 1998 639.15 Eligible forms of grant. A recipient may choose to receive capital assistance for a capital lease approved under this part (a) In

30、 a single grant under which lease payments may be drawn down pe-riodically for the life of the lease; or (b) In increments that are obligated by FTA periodically (usually in annual section 9 grants). In this case, a recipi-ent (1) Must certify to FTA that it has the financial capacity to meet its fu

31、-ture obligations under the lease in the event Federal funds are not available for capital assistance in subsequent years; and (2) May incur costs under its lease be-fore FTAs obligation of future incre-ments of funding for such a lease. These costs are reimbursable in future grants, so long as the

32、terms of the lease do not substantially change. 639.17 Eligible lease costs. (a) All costs directly attributable to making a capital asset available to the lessee are eligible for capital assist-ance, including, but not limited to (1) Finance charges, including inter-est; (2) Ancillary costs such as

33、 delivery and installation charges; and (3) Maintenance costs. (b) Any asset leased under this part must be eligible for capital assistance under a traditional purchase or con-struction grant. 61 FR 25090, May 17, 1996 639.19 Other Federal requirements. (a) A recipient of capital assistance for a ca

34、pital lease is subject to the same statutory and administrative re-quirements as a recipient who pur-chases or constructs a capital asset. (b) A lessor of a capital lease is sub-ject to the same statutory and admin-istrative requirements as a direct sell-er of the same capital asset would be when th

35、e lessor (1) Purchases or constructs a capital asset in contemplation of leasing it to a recipient; or (2) Modifies an existing capital asset in contemplation of leasing it to a re-cipient. Subpart CCost-Effectiveness 639.21 Determination of cost-effec-tiveness. (a) To qualify a lease for capital as

36、-sistance, a recipient must (1) Make a written comparison of the cost of leasing the asset with the cost of purchasing or constructing it; and (2) Certify to FTA before entering into the lease or before receiving a cap-ital grant for the asset, whichever is later, that obtaining the asset by lease i

37、s more cost-effective than purchase or construction of such asset. (b) For purposes of this part, obtain-ing the asset by lease is more cost-ef-fective than purchase or construction when the lease cost calculated under 639.25 of this part is less than the pur-chase cost calculated under 639.23 of th

38、is part. (c) If a recipient is unable to perform the prescribed cost-effectiveness com-parison as described in this subpart, it may ask FTA to approve an alternate form of cost-effectiveness evaluation. 639.23 Calculation of purchase or construction cost. (a) For purposes of this subpart, the purcha

39、se or construction cost of a cap-ital asset is (1) The estimated cost to purchase or construct the asset; plus VerDate Mar2010 10:10 Dec 13, 2010 Jkt 220218 PO 00000 Frm 00478 Fmt 8010 Sfmt 8010 Y:SGML220218.XXX 220218wwoods2 on DSK1DXX6B1PROD with CFRProvided by IHSNot for ResaleNo reproduction or

40、networking permitted without license from IHS-,-,-469 Federal Transit Admin., DOT 639.31 (2) Ancillary costs such as delivery and installation; plus (3) The net present value of the esti-mated future cost to provide any other service or benefit requested by the ap-plicant in its proposal to obtain t

41、he capital asset. (b) The estimated cost to purchase or construct must be (1) Reasonable; (2) Based on realistic current market conditions; and (3) Based on the expected useful life of the asset in mass transportation service, as indicated in paragraph (c) of this section. (c) For purposes of this p

42、art, the ex-pected useful life of a revenue vehicle is the useful life which is established by FTA for recipients of Federal assist-ance under FTAs Circulars for section 9 recipients. For assets other than rev-enue vehicles, the applicant is respon-sible for establishing a reasonable ex-pected usefu

43、l life. If the recipient does not intend to use the capital asset it is proposing to obtain by lease in mass transportation service for its entire ex-pected useful life, when calculating the purchase cost, the recipient must cal-culate the fair market value of the asset as of the date the lease will

44、 ter-minate pursuant to Guidelines found in section 108(b) of part II Standard Terms and Conditions for valuation of property withdrawn from transit use before the end of its useful life and sub-tract that amount from the purchase price. The resulting amount is the pur-chase price for purposes of th

45、is rule. 639.25 Calculation of lease cost. (a) For purposes of this part, the lease cost of a capital asset is (1) The cost to lease the asset for the same use and same time period speci-fied in the recipients proposal to ob-tain the asset by purchase or construc-tion; plus (2) Ancillary costs such

46、as delivery and installation; plus (3) The net present value of the esti-mated future cost to provide any other service or benefit requested by the ap-plicant in its proposal to obtain the capital asset. (b) The estimated lease costs must be reasonable, based on realistic market conditions applicabl

47、e to the recipient and must be expressed in present value terms. 639.27 Minimum criteria. In making the comparison between leasing and purchasing or constructing an asset, recipients should ascribe a re-alistic dollar value to any non-finan-cial factors that are considered by using performance-based

48、 specifications in the comparison. In addition to fac-tors unique to each recipient, the fol-lowing factors are to be used where possible and appropriate: (a) Operation costs; (b) Reliability of service; (c) Maintenance costs; (d) Difference in warranties; (e) Passenger comfort; (f) Insurance costs;

49、 (g) Costs/savings related to timing of acquisition of asset. (h) Value of asset at expiration of the lease. Subpart DLease Management 639.31 Early lease termination or modification. (a) Except as provided in paragraph (c) of this section, if a capital lease under this part is terminated or its terms substantially modified before the end of the period used in the cost- effectiveness evaluation, or if the re-cipient by