Eligible agencies are:

(1) Counties that have an urban area;

(2) Incorporated cities with a population of five thousand or more. For the purposes of determining population, cities may include the population of any state correctional facility located within the city. Agencies exceeding population of five thousand are eligible pending designation as a federal urban area following the next federal census; and

(3) Transportation benefit districts.

Generally, the eligible agency will be designated as the project lead. However, the executive director may designate another agency as lead in the best interest of project completion or for convenience to both parties.