MnDOT State Management Plan

Section 5311 Non-urbanized Area Formula Program

March 2016


Minnesota Department of Transportation Office of Transit
State Management Plan
Section 5311 Non-urbanized Area Formula Program
March 2016
In conformance with circular
FTA 9040.1G


Table of Contents

Introduction

Program Goals and Objective

  1. Program Management……………………………………………………..1

Roles and Responsibilities………………………………………………………………..1

Public Input Process…………………………………………………………………………..2

Coordination……………………………………………………………………………………..2

Written Agreements…………………………………………………………………………..3

Technical Assistance…………………………………………………………………………..3

Eligible Subrecipients…………………………………………………………………………..4

Project Selection and Method of Distributing……………………………………..5

Eligible Services and Service Areas……………………………………………………..6

Eligible Assistance Categories…………………………………………………………..6

Local Share and Local Funding Requirements………………………………..7

Subrecipient Monitoring……………………………………………………………………..7

  1. Grant Administration………………………………………………………….8
  1. Project Management………………………………………………………….9

Vehicles………………………………………………………………………………………………..9

Real Property……………………………………………………………………………………..9

  1. Financial Management and Capacity…………………………………….10

Operating Assistance………………………………………………………………………….10

Audits……………………………………………………………………………………………….10

  1. Procurement……………………………………………………………………..11

Guidance………………………………………………………………………………………….11

Vehicle Procurements………………………………………………………………………….12

Architectural and Engineering Procurements…………………………………….13

  1. Disadvantaged Business Enterprise…………………………………….13
  1. Asset Management……………………………………………………………..13
  1. Charter Bus………………………………………………………………………14
  1. School Bus………………………………………………………………………14
  1. Americans with Disabilities Act……………………………………………..14

Accessibility and MnDOT……………………………………………………………………..14

Subrecipient Responsibilities…………………………………………………………..14

  1. Title VI………………………………………………………………………………16

Subrecipient Responsibilities…………………………………………………………..16

  1. Equal Employment Opportunity…………………………………………17
  1. Drug Free Workplace Act and Drug and

Alcohol Programs………………………………………………………………18

Minnesota Drug Free Workplace……………………………………………………………18

Drug and Alcohol Program Oversight…………………………………………………18

  1. Other Provisions…………………………………………………………………..18

Productivity, Cost Effectiveness and Service Standards…………………19

Employee Protection Provisions Sec. 5333(b)…………………………………19

Environmental Protection…………………………………………………………………19

Buy America and Pre-award and Post-delivery Reviews…………………19

Lobbying……………………………………………………………………………………………19

Safety and Security……………………………………………………………………………19

NOTE: Letters in parentheses marked in green reference location of requirements in Chapter VI-4, FTA Circular 9040.1G.

MnDOT State Management Plan

Section 5311 Non-urbanized Area Formula Program

February 1, 2016

Introduction(a)

Program Goals and Objectives

The mission of the Minnesota Department of Transportation Office of Transit is to help people and communities meet their mobility needs by supporting safe, responsive, efficient, and environmentally sound transit services.

The goal of the Minnesota Section 5311 program is to foster public transit service throughout rural Minnesota. In addition to administering FTA funding in a consistent and equitable manner, the State also supports rural public transit with enabling legislation through Minnesota Statutes §174.21 whose purpose is to:

(1)provide access to transit for persons who have no alternative mode of transit available;

(2)increase the efficiency and productivity of public transit systems;

(3)alleviate problems of automobile congestion and energy consumption and promote desirable land use where such activities are cost-effective;

(4)maintain a state commitment to public transportation; and

(5)meet the needs of individual transit systems to the extent they are consistent with the other objectives stated above.

  1. Program Management

Roles and Responsibilities(b)

Under Minnesota Statute §4.07 the governor designates the Department of Transportation to receive and administer Federal Transit Administration Section 5311 funds for non-urbanized areas in Greater Minnesota[1]. The Federal 5311 program provides grant funds to support public transportation in rural areas, with population of less than 50,000 The MnDOT Office of Transitadministers the state’s Rural Public Transit Participation Program established underMinnesota Statutes §174.24 by providing state and federal financial assistance through the following activities:

  • Managing subrecipient selection process, notifying eligible subrecipients of availability of program, developing project selection criteria, soliciting applications, reviewing and selecting projects for approval
  • Managing contracts, developing and executing grant agreements with eligible subrecipients, amending grant agreements
  • Managing data, collecting financial reports, operating statistics and vehicle data; maintaining databases, monitoring and evaluating transit system performance
  • Administering finances including biennial budget, payments, encumbrances, reimbursements, audits, closeouts
  • Managing capital investment strategy
  • Managing Federal grants, program of projects, reporting, grant closeouts
  • Monitoring subrecipient compliance with Federal requirements
  • Engaging in planning and research activities, transit plans and studies
  • Providing technical assistance, training and workshops for subrecipients including direct training of transit operators

The Office of Transit works collaboratively with other divisions of the Minnesota Department of Transportation, other state agencies and their subdivisions, local units of government, tribal governments, boards and councils, and other interested parties to ensure the effective delivery of public transit in Greater Minnesota.

Public Input Process

The Greater Minnesota Public Transit Advisory Committee meets approximately four times per year. Major policy shifts are discussed with membership. In addition, Office of Transit Staff maintains a presence during TIP development at at Area Transportation Partnership meetings.

In the development of plans affecting the whole state, MnDOT involves members of the public throughout the state. Participation encourages a joint vision for transportation shared by stakeholders, the public and MnDOT. Development of plans is completed in consultation with local elected officials and/or appointed representatives. Steering committees are formed which allow individuals to provide comments during the formation of each stage of each plan. Plans are drafted, and workshops, focus groups, surveys, outreach meetings and public hearings are held throughout the state. Members of the general public as well as elected officials are invited. The 2016 Greater Minnesota Transit Investment Plan is currently in its final stages.

Coordination(c)

The Minnesota Council on Transportation Access was established in statute in 2010. The Council works at the policy level to promote effective and efficient service delivery to people who are transit dependent.Numerous state agencies, including for example, the Department of Human Services, the Council on Disability, and the Department of Veterans Affairs, participate in developing, evaluating, overseeing and making recommendations to improve coordination, availability, accessibility, efficiency, cost-effectiveness and safety of transit services provided to the transit public.

MnDOT Office of Transit works with public transit systems, local units of government, non-profit organizations, as well as private providers to foster transportation coordination. The Office of Transit has undertaken a number of initiatives relative to coordination. The most recent studies are the Greater Minnesota Regional Coordination Plans. Updated coordinated plans are scheduled for late 2016.

Internal coordination with Minnesota Section 5310 Enhanced Mobility Services for Elderly and People with Disabilities is a critical element in the grant making process. In addition, local coordination groups, strive to make use of the passenger transportation resources available across many different types of agencies.

Written Agreements

Grant contracts follow the calendar year and are preceded by the Management Plan application period which starts in the spring of the previous year. In addition to budget requests and service plans each applicant is required to demonstrate compliance with Federal requirements such as Title VIand the Americans with Disabilities Act. The Management Plan is incorporated by reference (and linked within the database) to the resulting Annual Grant Contract which includes all the required Federal clauses. The Annual Certifications and Assurances are also executed along with the contract and linked within the database.

Technical Assistance(l)

Staff of the Office of Transit regularly engage in continuing education opportunities offered to all State and MnDOT personnel. These include topic specific workshops and classes as well as leadership development programs, conferences and training programs. Staff regularly attend training programs such as those offered by the National Transit Institute and the Community Transit Association of America.

The MnDOT Office of Transit staff provides a wide scope of technical and management assistance to Section 5311 subrecipients. Program Administration staff activitiesmay include development of statewide plans and studies, issuance of statewide policies and procedures that affect transit operations in Greater Minnesota, development and maintenance of the public transit database, and the carrying out of the annual application and contracting process.

MnDOT district Transit Project Managers (TPMs) are responsible for direct technical assistance to and oversight of all Greater Minnesota public transit systems. Transit Project Managers visit each of their transit systems several times a year to:

  • Develop or modify plans for new or expanded transit service
  • Review and analyze transit operations
  • Provide assistance in understanding and carrying out requirements of federal and state regulations
  • Review and approve operating specifications and procurement documents
  • Provide encouragement and assistance to coordinate transit services
  • Provide advice and assistance in the preparation of the Annual Management Plan

Transit project managers issue corrective orders whenever a transit system is found out of compliance with federal or state requirements. A written procedure is foundAdministrative Procedure #2013-14 Issuing Corrective Actions to Subrecipients. Transit systems found to be out of compliance on a regular basis may have their quarterly state and federal funds retained until such time as they are in compliance.

The Office of Transit holds an annual Spring Workshop where much of the subject matter centers on updates and refresher training of Federal and state requirements. Subrecipients are provided with multiple opportunities for continuing education through the Minnesota Rural Transit Assistance Program (RTAP). Tribes who are direct recipients of Section 5311 funding are eligible for and encouraged to make use of the RTAP program

(m) The RTAP training program consists of topic specific workshops for various types of transit personnel such as passenger assistance and defensive driving for drivers, service planning training or policy writing for managers and operations personnel, and general topics such as customer service, safety and emergency preparedness. In addition, Minnesota RTAP provides “train-the-trainer” programs so that transit operators have knowledgeable trainers near at hand.

Eligible Subrecipients(d)

Under Minnesota Statutes §174.24, Sub. 2, the Minnesota Public Transit Participation Program defines eligibility to include “any legislatively established public transit commission or authority, any county or statutory or home rule charter city providing financial assistance to or operating public transit, any private operator of public transit, or any combination is eligible to receive financial assistance through the public transit participation program. Eligible recipients must be located outside of the metropolitan area.”

Private for-profit entities participate in the public transit program through third party operator contractual relationships with eligible subrecipients. Third party operators may provide operations services for bus programs while taxi operators may provide taxi rides as part of a full service public transit program.

Tribes may choose to apply for Section 5311 funding through the State using the standard annual Management Plan application process. Once funds are awarded the tribe must notify the State whether it will access its funds as a direct recipient from the Federal Transit Administration or receive its funds through MnDOT.

(i) FTA regulations require that fifteen percent of the Non-urbanized Area Formula Program funds are dedicated to the Intercity Bus Program operating in the State of Minnesota. MnDOT solicits competitive applications on a periodic basisannually in late summer from eligible intercity operators. Detailed information on the process for applying for Section 5311(f) funds is found in theIntercity Bus Technical Memorandum.

Eligible organizations, including private non-profit organizations, wishing to provide job access transportation services in rural areas may apply for federal funds through the State using the standard annual application process.

Potential new subrecipients work closely with MnDOT Office of Transit staff during the development stage to ensure that they are adequately staffed and have the appropriate capital assets to deliver the program.New subrecipients or subcontracted third party operators undergo a pre-award audit before a grant contract is issued.

The procedure for soliciting applications for Federal and State funding and the process for the distribution of funds is established in State Administrative Rules Chapter 8835.0250, Application for Financial Assistance, 8835.0260 Management Plan and 8835.0270 Financial Assistance. Sections of the Rules provide detail on the contents of the application and the management plan, including allowable and unallowable costs, third party contracts and disbursement of funds.

Applicants for rural public transit, tribal, and job access programs under the Section 5311 Non-urbanized Area Formula Program use the same application process of developing an Annual Management Plan. Eligible subrecipients prepare and submit documents that conform to all elements required in the Rules. All applications are treated equally and reviewed using the same procedures. Applications are reviewed by MnDOT staff for:

  • Completeness and compliance with state and federal requirements
  • Financial plan that demonstrates fiscal capacity and reasonableness
  • Service plan that matches the fiscal capacity and is appropriate in scale and scope
  • Unmet needs, if any, are clearly articulated
  • Capital plan that matches fiscal capacity and is effective and efficient
  • Contractual relationships (if present) conform with state and federal requirements
  • Coordination relationships with other organizations and agencies (existing or in development)

Project Selection Criteria and Method of Distributing (h)

The procedure for soliciting applications for funding and determination of distribution of funds is established in State Administrative Rules Chapter 8835.0250 Application for Financial Assistance, 8835.0260 Management Plan and 8835.0270 Financial Assistance.

Federal and state funds are awarded to eligible subrecipients according to the following priority:

  1. Operating assistance to existing public transit systems
  2. Capital assistance to existing public transit systems
  3. Operating and capital assistance for the provision of public transit services in a community or area not currently served by public transit

Once the Annual Management Plan is approved and the appropriate contract amount is determined, funds are awarded using a combination of formulae that take into account federal, state and local sources. Section 5311 funds are awarded at or below the amount of fifty percent of the operating deficit. (g) Eligible subrecipients are contractually obligated to provide a local share. The balance is made up of state funds.

(n) Private operators, both for-profit and non-profit, are involved in public transit in several ways. When a subrecipient chooses to engage a third party operator to provide public transit service there is full and open competition. The qualified bidder is chosen and a contract is executed. Private sector representation is included on MnDOT Office of Transit panels and project committees such as statewide plans and studies.

A portion of the Section 5311 Non-urbanized Area Formula funds are granted to the Metropolitan Council to support public transit service in areas outside of the Minneapolis-St. Paul UZA but inside the 7-county metropolitan area. Trips eligible for reimbursement are based on the origin location. Only trips that originate outside the UZA are eligible for funding. A chart and map of eligible origins are used to determine funding.

Eligible Services and Service Areas (e)

The State does not impose any limitations on eligible services or service areas that are more restrictive than those limitations imposed by the Federal government.

Transit service areas are determined locally. Service levels are part of each subrecipient’s annual management plan. For each service segment the following characteristics are described:

  • Hours of service
  • Days of service
  • Origin, destination and interim stops
  • Type of service (route deviation, dial-a-ride)
  • Annual passenger trips
  • Annual miles
  • Annual hours
  • Annual cost
  • Annual revenue

All service must be open to the general public. Transit service provided to destinations outside the state must conform to applicable Federal Motor Carrier Safety Regulations.

Changes in Service Levels may be made during the course of year but must be authorized by MnDOT Office of Transit.

Eligible Assistance Categories (f)

  1. Operating Assistance: The State does not treat the subrecipient’s administrative and operating costs of the transit system as two separate categories. All administrative costs are part of operating costs. The Federal share of operating deficits cannot exceed fifty percent.
  2. Capital Assistance: The State’s limitations on eligible capital assistance are not more restrictive than Federal limitations.
  3. Intercity Bus Assistance: Section 5311(f) funds provide operating assistance to private mass transit companies to support specific rural intercity route segments, capital and marketing that improve connectivity in Greater Minnesota.
  4. Rural Transit Assistance Program: The State’s limitations on eligible RTAP are not more restrictive than Federal limitations.
  5. State Administration: MnDOT annually determines the amount needed for administrative purposes and requests up to the maximum 10% from the Section 5311 program.

Local Share and Local Funding Requirements (g)

Subrecipients are required to contribute a portion of the total operating cost of the transit system. Minnesota Statutes §174.22Subd.12 through Subd. 15 describes operating assistance recipient classifications and prescribes the statutorily required local shares.

Subrecipients in urbanized areas with populations greater than 50,000 and subrecipients in smaller urban areas with populations between 2,500 and 50,000 are required to contribute twenty percent local share. Subrecipients in rural areas and those in small urban areas with populations less than 2,500 are required to contribute fifteen percent local share. The statute also includes an undue hardship clause. Local share means all local sources of funds and includes all operating revenue, tax levies, and contributions from public funds.

After developing the total approved operating expense budget the local share is subtracted. The remainder is paid through a combination of state funds and Section 5311 FTA funds. The federal share is determined by calculating the operating deficit and may be awarded up to fifty percent of the operating deficit. State funds complete the total amount of the award.