~ DEPARTMENT OF I I

State Management Plan Section 5311 Non-Urbanized Area Formula Program

DRAFT March 2019

Minnesota Department of Transportation Office of Transit and Active Transportation 395 John Ireland Blvd, MS 430 St. Paul, MN 55155 (Phone) 651-296-3000 mndot.gov/transit

In conformance with FTA Circular 9040.1G

Upon request, this material will be made available in an alternative format such as large print, Braille or audio recording. Printed on recycled paper.

Contents

Program Goals and Objectives.................................................................................................................. 2

Program Goal ........................................................................................................................................ 3

Program Objectives............................................................................................................................... 4

Roles and Responsibilities......................................................................................................................... 8

Office of Transit and Active Transportation.......................................................................................... 8

Other Agencies and Units of Government............................................................................................ 8

Long Range Planning Process.................................................................................................................... 5

Public Participation Process.................................................................................................................. 6

Statewide Plan ...................................................................................................................................... 6

Transit Plan ........................................................................................................................................... 7

STIP........................................................................................................................................................ 7

Coordination ............................................................................................................................................. 9

Eligible Subrecipients ..............................................................................................................................10

Eligible Services and Service Areas .........................................................................................................10

Eligible Assistance Categories .................................................................................................................11

Local Share and Local Funding Requirements ........................................................................................12

Project Selection Criteria and Method of Distributing Funds.................................................................12

Intercity Bus Transportation ...................................................................................................................20

Annual Program of Projects Development and Approval Process .........................................................21

Funds Transfers.......................................................................................................................................21

State Administration and Technical Assistance ......................................................................................22

State RTAP...............................................................................................................................................22

Private Sector Participation ....................................................................................................................23

Civil Rights...............................................................................................................................................23

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Title VI .................................................................................................................................................24

Disadvantaged Business Enterprise (DBE) ..........................................................................................25

Equal Employment Opportunity .........................................................................................................26

Maintenance ...........................................................................................................................................27

Vehicle Maintenance ..........................................................................................................................27

Facility Maintenance...........................................................................................................................28

Charter Rule ............................................................................................................................................29

Section 504 and ADA...............................................................................................................................29

National Transit Database (NTD) Reporting ...........................................................................................30

State Program Management...................................................................................................................30

Procurement .......................................................................................................................................30

Financial Management........................................................................................................................30

Property Management........................................................................................................................31

Accounting Systems ............................................................................................................................31

Financial Reviews ................................................................................................................................32

Productivity, Cost Effectiveness and Service Standards .....................................................................32

Reporting Requirements.....................................................................................................................34

Other Provisions......................................................................................................................................35

Employee Protection Provisions Sec. 5333(b) ....................................................................................35

Environmental Protection...................................................................................................................35

Buy America and Pre-award and Post-delivery Reviews ....................................................................35

School Transportation.........................................................................................................................35

Drug and Alcohol Testing including monitoring subrecipients ...........................................................36

Program Goals and Objectives

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Program Goal

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.

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

Federal Goals from Circular 9040.1:

A. enhancing access in rural areas to health care, shopping, education, employment, public services, and recreation;

B. assisting in the maintenance, development, improvement, and use of public transportation systems in rural areas;

C. encouraging and facilitating the most efficient use of all transportation funds used to provide passenger transportation in rural areas through the coordination of programs and services;

D. providing financial assistance to help carry out national goals related to mobility for all, including seniors, individuals with disabilities, and low-income individuals;

E. increasing availability of transportation options through investments in intercity bus services;

F. assisting in the development and support of intercity bus transportation;

G. encouraging mobility management, employment-related transportation alternatives, joint development practices, and transit-oriented development; and

H. providing for the participation of private transportation providers in rural public transportation

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Program Objectives

The Office of Transit and Active Transportation embraces the Minnesota Department of Transportation Strategic Operating Plan, http://www.dot.state.mn.us/consult/documents/notices/1029281-strategicoperatingplan.pdf, in aspects that are applicable to the provision of public transit in Greater Minnesota. These include promoting a safe and reliable modern transportation system, improving access and enhancing movement of people and freight, and fostering innovation. In addition, the following specific transit-related objectives are addressed:

• To increase access to public transit throughout Greater Minnesota. • To encourage and support coordination of passenger transportation services between public

and private resources, and • To alleviate transportation barriers and improve mobility opportunities for elderly people,

people with disabilities, economically disadvantaged people, and others who are transit dependent.

Minnesota GO http://minnesotago.org/index.php?cID=531 The Minnesota Department of Transportation, in 2011, launched the Minnesota GO visioning process to better align the transportation system with what Minnesotans expect for their quality of life, economy and natural environment. The effort is based on an understanding that transportation is a means to other ends, not an end in itself.

It also recognizes that infrastructure is only one of many elements necessary to achieving a high quality of life, a competitive economy and a healthy environment. This 50-year vision for transportation will require consistency and collaboration across jurisdictions and sectors. Although MnDOT initiated the effort to develop the vision, this is a vision for all forms of transportation. Ownership of the vision is a shared responsibility.

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GO VISION

Minnesota's multimodal transportation system maximizes the health of people, the environment and our economy.

The system:

• Connects Minnesota's primary assets-the people, natural resources and businesses within the state-to each other and

to markets and resources outside the state and country

• Provides safe, convenient, efficient and effective movement of people and goods

• Is flexible and nimble enough to adapt to changes in society, technology, the environment and the economy

Quality of Life

The system:

• Recognizes and respects the importance,

significance and context of place-not

just as destinations, but also where

people live, work, learn, play and access

services

• Is accessible regardless of

socioeconomic status or individual

ability

Environmental Health

The system:

• Is designed in such a way

that it enhances the

community around it and is

compatible with natural

systems

• Minimizes resource use and

pollution

Economic Competitiveness

The system:

• Enhances and supports Minnesota's

role in a globally competitive economy

as well as the international significance

and connections of Minnesota's trade

centers

• Attracts human and financial capital to

the

Long Range Planning Process

The Statewide Multimodal Transportation Plan is Minnesota’s highest level policy plan for transportation. It is a 20-year plan based on the Minnesota GO Vision for a transportation system that maximizes the health of people, the environment and the economy.

The plan is for all types of transportation and all transportation partners. It is about more than just roadways and more than just the Minnesota Department of Transportation. It evaluates the status of the entire transportation system, takes into account what is changing and provides direction for moving forward over the next 20 years.

How is the Plan Updated?

MnDOT is required by state and federal law to plan for 20 years into the future but also to update the plan every four years. The SMTP was last updated in 2012.

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1: Statewide Multimodal Transportation Plan Update Process

How "" Whatwil~ ~ide~ ~fl fflDW1II

l>e next 20 ye;n? khard?

STEP 1

� STEP2

� STEP 3

� BACKGROUND TREND POLICY INFORMATION ANALYSIS DIRECTION

Rev,ew other MnOOT I ReV1ew a~ refine policy I and partner plans Re'llew and update objectives

existmg trends I Review and refine I I- .. 2012 SMTP I performance measures

I Develop strategies I klentrfy and analyze

Rev,ew legal new trends

I I requirements Develop work plan

Input from pubric and stakeholder engagement

Whstisnextb "4n00T?

NEXT STEPS

Implement the updated plan

Update modal I system

Public Participation Process

MnDOT involves members of the public throughout the state in the development and implementation of its plans and programs. This participation encourages the development of 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.

Statewide Plan

The Statewide Transportation Policy Plan, Minnesota Statewide Transportation Policy Plan 2009-2028 is the cornerstone of a family of plans. It establishes a long-range multimodal vision for transportation in the State of Minnesota, examines the most critical trends and issues, and sets the overall policy direction. The overarching plan provides direction to the many modal and specialty plans and studies developed by MnDOT and its partners. The figure below depicts the family of plans.

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4: MnDOT's Family of Plans

Pedestrian Mmesola Plan

l!Ml5tmcnt Plan

Blcyc Plan

Minnesota GO 50-year V1s10n W""M iefr ~r. fr,,r.c; •n ;-,<}Jie.r.7

Statewide Mul!Jmodal Transportation Plan Ho-A arp ~e qo,..,q :o d!:,,,•e~e 1f 7

Modal and System Plans Wh;J' does 1~2t rr,edr ;DI eJcf' :-,pe of ~•~ms.por·dt10,)

Sae Highway

lnvestmen Plan

Freight Sys em

Plan

I

Tran LJ - -

Aviation Plan

Rail Plan

Ports& Wa erways

Transit Plan

The Greater Minnesota Transit Investment Plan 2016-2030 is an element of the family of plans. It establishes a 20-year strategic plan that sets forth directions for the future of public transportation in Greater Minnesota. It describes current challenges, examines future transit service needs and estimates future levels of funding that are required to meet that need. Finally, it establishes policies to guide future transit investments in Greater Minnesota. The Greater Minnesota Transit Investment Plan quantifies the number of service hours and the level of funding that is required to meet rural public transit needs from the present through 2030.

STIP

The Statewide Transportation Improvement Program (STIP) is Minnesota’s four year transportation improvement program. The STIP identifies the schedule and funding of transportation projects by state fiscal year (July 1 through June 30). It includes all state and local transportation projects with federal highway and/or federal transit funding along with 100% state funded transportation projects. Rail, port, and aeronautic projects are included for information purposes. The STIP is developed/updated on an annual basis.

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Roles and Responsibilities

Office of Transit and Active Transportation

• 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 Minnesota1. The MnDOT Office of Transit and Active Transportation administers the Public Transit Participation Program established under Minnesota 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

Other Agencies and Units of Government

The Office of Transit and Active Transportation 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.

The Minnesota Council on Transportation Access was established in statute in 2010. 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.

Most Section 5311 eligible subrecipients are local units of government. Others are community action agencies, joint powers boards, or free-standing non-profit organizations. In all cases the

1 Eighty rural counties outside the seven county Minneapolis-St. Paul Metropolitan Area.

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Office of Transit and Active Transportation works collaboratively with subrecipients to ensure that local needs are met while providing technical assistance to improve the efficiency and effectiveness of service delivery.

Coordination

MCOTA The Minnesota Council on Transportation Access is the highest intergovernmental level of coordination. The Council works at the policy level to promote effective and efficient service delivery to people who are transit dependent. Information about MCOTA and Transportation coordination can be found at www.coordinatemn.org.

Transit for Our Future

MnDOT Office of Transit and Active Transportation 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 and Active Transportation has undertaken an initiatives relative to coordination of public transit systems. The initiative is referred to as Transit for Our Future. http://www.dot.state.mn.us/transit/transit-for-our-future/.

Human Service-Public Transit Coordination Plans

To develop local coordination plans in Greater Minnesota, the Minnesota Department of Transportation (MnDOT) Office of Transit partnered with local planning organizations in Greater Minnesota’s 12 economic development regions.

The local coordination plans are developed as a result of participation by a wide range of stakeholders, including but not limited to, representatives of public, private, and non-profit and human services transportation providers, advocacy organizations, and the general public. These local plans, county and/or regional, representing non-urbanized and urbanized areas, have been developed and adopted locally.

Each local coordination plan must contain:

1. An assessment of available services that identifies current transportation providers (public, private, and non-profit);

2. An assessment of transportation needs for individuals with disabilities, older adults, and people with low incomes.

3. Strategies, activities and/or projects to address the identified gaps between current services and needs, as well as opportunities to improve efficiencies in service delivery; and

4. Priorities for implementation based on resources (from multiple program sources), time, and feasibility for implementing specific strategies and/or activities identified.

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Plans can be found at http://www.coordinatemntransit.org/regionalplans/2011/index.html

Eligible Subrecipients

Minnesota Public Transit Participation Program under Minnesota Statutes §174.24, Sub. 2 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.

Fifteen percent of the Non-urbanized Area Formula Program is dedicated to the Intercity Bus Program operating in the State of Minnesota. MnDOT solicits competitive applications on a periodic basis from eligible intercity operators.

Eligible Services and Service Areas

All subrecipients must, establish a local service area whose primary boundaries are the city limits or county/multi-county lines. If a boundary other than the city limits or county lines is used, e.g., a zone or zones within the city or county, then a map must be provided showing the exact boundaries. Or, if one or more primary trip generators for the community are located just outside the city limits or county/multi-county line, and the subrecipient intends to provide service to these trip generators as part of their primary service area, this must also be clearly indicated and marked on a service area map and included in their service plan.

In addition, the subrecipient may propose to provide service outside the defined service area boundaries to other non-urbanized areas on an incidental basis when this service is determined to be essential to the community. For example, when major medical services, employment centers, etc. are not available within the transit system’s primary service area (city or county) and connection to these services or areas is critical to the mobility of the citizens of the transit system’s community. When service is provided outside a subrecipient’s primary service area, the subrecipient is encouraged to work with the neighboring system to make connections to the extent feasible, with other services which may be operating in the areas they are accessing.

In addition, a subrecipient may also provide service to an adjacent urbanized area under the conditions stated above, providing:

A. one trip originates or ends in the nonurbanized service area;

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B. the service does not duplicate existing public transportation service provided within the adjacent urbanized area; and

C. the service links with other public transportation service, to the maximum extent feasible. MnDOT encourages systems to work together to make these service connections.

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, demand response) • 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 MOTAT.

Eligible Assistance Categories

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.

Capital Assistance: The State’s limitations on eligible capital assistance are not more restrictive than Federal limitations. Vehicle Capital Replacement criteria are more restrictive.

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.

Rural Transit Assistance Program: The State’s limitations on eligible RTAP are not more restrictive than Federal limitations.

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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

Subrecipients are required to contribute a portion of the total operating cost of the transit system. Minnesota Statutes §174.24 Subd. 3b 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 10,000 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.

Subrecipients typically fund twenty percent of the local share for capital equipment projects funded through either the Section 5311 or Section 5339 programs. Occasionally the State may participate in the local share depending upon the availability of funds.

Project Selection Criteria and Method of Distributing Funds

Application Process: MnDOT Annual Transit Operating Grant

The Minnesota Department of Transportation (MnDOT) Office of Transit and Active Transportation (OTAT) annually solicits and awards grant funding to support the operating costs of transit systems in Greater MN.

Timing: Mid-April – OTAT staff share operating grant information during the annual Spring Workshop, this includes details about any changes to the process, scoring, or weighting criteria used to make funding decisions for the coming year May 1 – MnDOT releases application to transit system

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DATE? – Application due from transit systems to MnDOT OTAT DATE? – OTAT provides award letters to transit systems

The May 1 application is advertised with all eligible providers three ways:

1. Via email directly to all eligible providers 2. Through the State Register 3. On the OTAT website under “Grant Program”

To be eligible, transit systems must have a management plan and clearly describe their operating grant request in terms of “continuation funding” and “unmet needs.” OTAT does not apportion 5311 and State Transit Assistance funds based on geographic areas. Rather, OTAT uses two separate methods of project selection. Both methods include a reasonable cost component as required in Admin Rules 8835.

Specific documentation requirements for all three of these grant application elements is described in the following pages. The funding decision-making process is also described.

Management Plan

To be eligible to apply for operating funding assistance (continuation or unmet needs), applicants are required to submit a management plan (Admin Rules 8835).

Subp. 3. Approval of management plan. The department shall approve a management plan for incorporation into a financial assistance contract after determining the reasonable costs of the proposed public transit

The management plan must include all of the following: 1. Service plan

a. Describes levels of service during the contract period, service area and general population, type or types of service, vehicle descriptions, days and hours of service, service schedules, contract services, and route maps.

2. Description of unmet service needs 3. Financial plan

a. General narrative to support and explain the budget b. Detailed narrative for each budget line item, including any increases c. Actual operating expenses and revenues for the most recent calendar year and

anticipated operating expenses and revenues for new contract period d. Actual miles, and hours of service, and passenger trips for most recent calendar year

and anticipated miles, and hours of service, and passenger trips for the new contract period

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4. Coordination/Marketing plan with costs and expected benefits of major elements 5. Capital plan

a. Describes major capital assets of the transit system with outline of how they will be maintained, improved, or replaced

6. Description of all revenue-producing contracts for transit services provided by, or for, the applicant

7. Description of expense contracts for services and goods procured by the transit system 8. Description of vehicle maintenance program for the period of financial assistance 9. Description of organizational structure that will direct, control, review, and implement the

management plan 10. Description of measurable goals and objectives for the transit system, includes expected

benefits of the state transit operating grant 11. Description of the system’s fare structure 12. List the transit and paratransit systems, existing or potential coordination with these systems,

and union affiliations of all systems currently operating in the applicant's area 13. Description of safety and training policies, including its driver selection process 14. Description of proposed insurance carrier and the limits of coverage 15. Description of internal controls policy for the collection and deposit of fares 16. A copy of the most recent drug and alcohol policy as approved by the local recipient's governing

body 17. All third party contracts relating to transit operations 18. A copy of the governing body's third-party contract procurement policy

Continuation Funding – Operating Costs for Existing Public Transit Services

Subp. 2. Determination of financial assistance: The department shall evaluate the budget, service delivery and design, and administration of a public transit system.

The following process is used to review continuation funding requests:

a) Compare service hours proposed to service hours delivered in the previous year b) Compare service level variances by service segment

a. Variances of 10% or greater must be justified c) Evaluate productivity of each service segment and identify segments with less than the

minimum productivity standard (Min. standard = 3 pph)

The following process is used to fund a “reasonable cost” funding continuation:

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a) Compare the proposed budget line item expenses to actual expenses in the previous year b) Line item variances of 5% or greater are reviewed and justified. c) Revenue analysis to determine if adequate to meet local match requirements

Transit Project Managers then recommend a reasonable cost (Admin Rules 8835) for continuation funding in the upcoming year using the unit tracking spreadsheet (TASUM).

Subp. 16. Reasonable cost. "Reasonable cost" means a price for a commodity or service which, in its nature or amount, does not exceed that which would be incurred by an ordinarily prudent person in the conduct of competitive business.

UnMet Needs – Operating Costs for Expansion of Services

Requests for financial assistance for unmet needs include operating assistance for service expansion projects (new geographic area, increased span of service for existing services, increased frequency of services). Funding unmet needs is made at MnDOT’s discretion.

Applicants must complete the unmet need application (Exhibit 1). OTAT Implementation Unit staff evaluate reasonable cost budgets for each unmet need requested (Admin Rules 8835). Review includes the following:

1. Service delivery and design 2. Proposed budget line item expenses; identify incremental costs of the additional service

(e.g., actual cost per hour x approved hours)

Each project is evaluated and scored based on the application scoresheet (Exhibit 2). The combination of application scores and system ranking in Decision Len are used to determine the final ranking. The ranked by the OTAT Implementation Unit. The rankings are then submitted to the Project Selection Team (name TBD) for the final funding decision.

Factors determining grant awards for unmet operating needs include:

1. The demonstrated need for services, 2. Utilization of capital 3. Evidence of a sound and comprehensive management plan 4. Capital Asset Management, 5. Coordination 6. Past Record of Service (Evidence that the organization possesses adequate technical, administrative and managerial personnel and skills to properly administer the program, sustain the operation, or maintain the capital investment)

Number six (6) specifically is accomplished by several progressive steps: (a)

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documentation presented, (b) our experience with the sub-recipient relative to timeliness and accuracy of reporting, etc., (c) results of compliance reviews and follow-up, and (d) technical assistance including on-site technical assistance visits.

The ranked unmet needs project list is then submitted to the funding allocation committee to determine which projects are funded, based on availability of funding.

Projects remain unmet until approved.

Local Share Requirement

OTAT funds the reasonable cost of transit service operating contract per 174.24 on a fixed local share basis. For rural systems, MnDOT can support up to 85% of operating costs. For small urban transit systems, MnDOT can support up to 80% of operating costs.

Operating System Comparison

Administrative Rules 8835 Subp. 2. Determination of financial assistance. The department shall compare the past performance of a transit system to its current performance and to the performance of other similar transit systems. To measure the performance of a public transit system, the department shall consider cost efficiency, cost-effectiveness, service effectiveness, and quality.

To address this requirement OTAT utilizes a nominal ranking process by utilizing a software tool, Decision Lens, with the following factors and criteria. Decision Lens: Software Solutions to Deliver a Data-Driven, Mission and Performance-Based Portfolio. Optimize the Competing Forces of Value and Budget Balancing benefit against cost is a constant battle in capital planning. And organizations that quickly, transparently, and collaboratively optimize these competing forces will walk away with the spoils. Decision Lens equips you with the data insights you need to prioritize your highest value projects and defend your investment decisions.

Perform dynamic analysis of budget and resource allocation scenarios to reduce long-term investment costs.

Collaborate on trade-offs between strategic and operational outcomes to increase confidence in your selection decisions

Criteria Components: 1. Performance Measures – Scoring Weight 40%

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2. Financial Metrics – Scoring Weight – 20% 3. Access Scoring Weight 15% 4. Compliance – Scoring Weight 25%

Criteria with factors for evaluation: 1. Performance Measures Facilitate improved performance

A. Three year Service Level Analysis (using actuals vs. application) i. Historical review of service level

B. Review of Service Hour creep and/or underachieving Service Hours i. Per service level

ii. Percentage of service level hour creep: <5% C. Passengers per Hour (per GMTIP Productivity Table)

i. Per service level ii. Percentage of service level ridership underperforming: <20%

D. On-Time Analysis i. System Policy vs. actual analysis (reports) by system

E. Fleet Condition i. Within useful life span (miles, years, condition)

2. Financial Metrics Secure financial support to sustain system A. System Revenues to Expenses

i. Three year analysis ii. revenues at 5% above local share requirement

iii. service segments with full cost recovery (Action Item in 2020 – Contract Cost Participation Policy

B. Cost per Trip i. Three year analysis

ii. System overall average iii. Mean = + 1%

C. Cost per Hour i. Three year analysis

ii. System overall average iii. Mean = + 1%

D. Reserve Funds i. Sustain local share responsibilities – excess revenues: target of 20%

3. Access Demonstrate value of local and regional transit to stakeholders and address transit needs. A. Percentage of Need (hours/capita) for Specific Groups:

i. Primary: Hard to Reach populations, veterans, elderly, low income, disability ii. Secondary: commuter, university/college

B. Percentage of County/Rural service provided (based on per capita) (County/Multi-County systems)

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i. 20% of total service hours C. Span of Service

i. GMTIP Table on Span of Service ii. Per Olmsted Plan (connect home, work, employment, recreation)

4. Compliance

Tracking strengths and weaknesses

A. Provides Contract Reports/Requests within timeline i. special requests of supporting documents

B. Submits regular contract reporting within timeframe i. Budget and Ridership Statistics: 30 days from previous month and 90 days from

final period of grant agreement. ii. When required, Request for Fund completed, with support documentation (if

applicable) within 30 days of expense. iii. As requested, Line Item support documentation is supplied with reporting. iv. Vehicle Statistics report completed as required (2 x/year) and within timeframe.

C. Notifies OTAT Project Manager within timeframe required on Accidents/Incidents and Service Interruptions.

D. In compliance with reporting program documents i. Title VI

ii. Civil Rights iii. Facility Plans iv. Vehicle Plans

E. Procurement i. Follows procurement methods and reporting requirements in a timely fashion

F. Public Engagement i. Plan

ii. Reporting iii. TAC/JPB: # of meetings/year as outlined in plan, roles and responsibilities

Funding Allocation

OTAT Implementation Unit staff review the sub-recipients management plan for errors, reviews the proposed service delivery and design, and right sizes the proposed budget. (Admin Rules 8835)

Once TASUM and the unmet needs ranked list are complete, the funding allocation process is conducted by OTAT Office Director and OTAT Program Section Director (Proposed - Broader Funding Allocation Committee of Internal MnDOT Staff)

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The committee allocates funds based on the funding priority (Admin Rules 8835)

Subpart 1. Allocation priorities. The department shall allocate financial assistance to recipients for purposes of the public transit participation program according to the following order of priority:

1. Operating costs for existing public transit systems 2. Capital costs for existing public transit systems 3. Operating and capital costs for the provision of public transit services in a

community or area not currently served by public transit

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

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.

By an annual process of developing an Annual Management Plan, eligible subrecipients prepare and submit documents that conform to all elements required in the Rules. These 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) • For projects located within Metropolitan Planning Areas, letters of support of the project by the

Metropolitan Planning Organization (MPO)

Once the Annual Management Plan is approved and the appropriate contract amount is determined, funds are awarded using a formula that takes into account federal, state and local sources. Section 5311 funds are awarded at or below the amount of fifty percent of the operating deficit. Eligible subrecipients are contractually obligated to provide a local share as described in Section G above. The balance is made up of state funds.

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Proposals for new transit system operating and/or capital assistance under Section 5311 follow the steps outlined in the Office of Transit and Active Transportation Technical Assistance Memorandum Contact Strategy-New Transit System Starts issued April 1, 2007. The memorandum covers each step from the first contact by a locally interested party, through stakeholder and public official involvement, service plan development, application and final execution. Metropolitan Planning Organizations and Regional Development Commissions are consulted in the new transit system starts depending on the location and breadth of the proposal.

All applications are treated equally and reviewed using the same procedures.

Tribal governments who choose to have Section 5311 funding administered through the state follow the same procedures as all other Section 5311 applicants. Those who choose to become direct recipients are provided equivalent technical assistance upon request.

Intercity Bus Transportation

The goal of MnDOT’s intercity bus program is to develop a support network of interstate and intrastate services which best meet the needs of Minnesota’s citizens. The program includes but is not limited to determining statewide and regional intercity bus needs, purchasing capital and support equipment, initiating new intercity services, constructing intercity bus facilities, intercity bus marketing, and bus terminal signing, subsidizing existing intercity carriers, and expanding capabilities of existing county and multi-county public transportation systems. MnDOT’s Qualifications for Intercity Bus Programs describes program objectives, eligible activities, and eligible recipients.

The Office of Transit and Active Transportation has developed an intercity bus program application that complies with all federal regulations. Projects are solicited and operated on the following cycle as follows:

The consultation process begins when MnDOT identifies and compiles a list of likely or interested potential intercity carriers. This group includes existing public transit systems. Metropolitan Planning Organizations and Regional Development Commissions are sent information explaining the 5311(f) program. The packet also includes a questionnaire about existing services provided by the carrier, identification by the carrier of unmet intercity regional needs, and the potential needs for assistance. A summary report of the responses is compiled and kept on file.

The application is distributed to all organizations expressing interest in the program through the consultation process. Additionally, after the applications are distributed, the Office of Transit and Active Transportation invites all prospective recipients to attend a question and answer session where the application process is reviewed. Applications are analyzed by an advisory committee and a final list of approved projects developed.

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The Office of Transit and Active Transportation Minnesota Intercity Bus Network Study (March 2014) evaluated Minnesota’s existing intercity bus network, determined changes and improvements based on intercity transportation needs and service gaps, and provided an operational plan and policy recommendations to meet intercity bus needs.

Annual Program of Projects Development and Approval Process

The Public Transit Participation Program application process results in approved subrecipient Management Plans and grant contracts. These form the basis of the Program of Projects. There is an annual timetable for accepting, reviewing and approving applications.

Approximately four months before the submission of the program of projects to the FTA, the MnDOT Office of Transit and Active Transportation distributes applications with explanatory material to all recipients. Workshops are hosted throughout Greater Minnesota to instruct subrecipients on the completion of the applications. Workshop topics may include an overview of funding, technical instructions, federal and state regulatory updates, if any, deadlines, and any other related topic that is pertinent to the application process. Approximately one month before the program of projects is submitted MnDOT staff reviews each application for content and compliance with all requirements. Awards are based on the criteria outlined in Section H. Once the awards are made the details of each award are included in a program of projects that is submitted to the FTA regional office.

The 10 Year Capital Plans submitted as part of the Section 5311 subrecipients Management Plan are the basis for projections for future projects that are incorporated into Area Transportation Improvement Plans (ATIPs) for each MnDOT District. The District ATIPs are combined into the Minnesota State Transportation Improvement Plan (STIP).

Funds Transfers

MnDOT may transfer Section 5307 funds, Section 5310 funds, or flexible funds to Section 5311 as specified in FTA guidance. Notice of the transfers is forwarded to FTA.

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State Administration and Technical Assistance

The MnDOT Office of Transit and Active Transportation staff provides a wide scope of technical and management assistance to Section 5311 subrecipients. This may 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 oversight and technical assistance to 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 systems found to be out of compliance with federal, state or both requirements on a regular basis may have their quarterly state and federal funds retained until such time as they are in compliance.

Administration associated with the Section 5311 program is funded with a combination of state and federal funds.

Rural Transit Assistance Program allocations are used exclusively for providing training opportunities and resource materials to transit operators.

State RTAP

The goal of the Minnesota Rural Transit Assistance Program is to provide grantees of Section 5311, Section 5310, Section 5316 and Section 5317 programs access high quality training and technical assistance programs. Tribes are eligible for and encouraged to make use of RTAP.

Training objectives include: • A scholarship program enables tribal and Section 5310 subrecipients to attend national or

regional conferences offering programs related to rural transit or transit operations. • Topic specific workshops are organized several times a year and offered at no cost to grantees. • Hands-on driver training is provided throughout the state throughout the year. • Transit Manager Training

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Technical assistance takes place through a series of events such as conferences that are offered to eligible grantees several times per year. Research activities are undertaken on a periodic basis responding to an expressed need of transit operators and results are distributed to grantees.

Development and oversight of RTAP program delivery is provided by the state RTAP Committee. The group consists of a representative cross section of grantees as well as a liaison member from the state public transit association.

Private Sector Participation

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. • As transit services is regionalized, the local entity is directed by MnDOT to form a local advisory

committee. MnDOT staff assists the new committee in developing a mission statement, conducting feasibility studies, planning for transit services and forming recommendations to local governing bodies.

• The private sector participates on other MnDOT Office of Transit and Active Transportation panels and project committees as well, e.g. statewide plans and studies.

Civil Rights

Through annual grant agreements, subrecipients agree to comply with all applicable civil rights statutes and regulations. These include Title VI of the Civil Rights Act, Equal Employment Opportunity, and Americans with Disabilities Act. Each recipient must have a signed DOT Title VI Assurance and FTA Civil Rights Assurance on file with MnDOT. A summary of this information is provided to the FTA as required in the FTA Title VI Report every three years.

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Title VI

MnDOT annually signs the FTA Annual List of Certifications and Assurances for Federal Transit Administration Grants and Cooperative Agreements which binds MnDOT to all civil rights requirements. Section 5311 subrecipients annually sign FTA’s Certifications and Assurances in their grant contracts with the State and Section 5307 direct recipients sign FTA’s Certifications and Assurances to qualify for receiving Section 5307 funds.

Transit systems are instructed annually on the requirements for Title VI Program compliance as described in FTA Circular 4702. These requirements are:

Evidence of Approval of Title VI Plan. The subrecipient must provide evidence of approval of the Title VI plan

Title VI Notice to Beneficiaries: The subrecipient must inform customers and the public of their rights under Title VI regulations by posting a Title VI public notice. Each transit subrecipient is required to display this information in the buses, in common locations, including the transit facility, where users congregate, and on their websites if they have one. Subrecipients submit a copy of the Notice with the Annual Management Plan application. Transit project managers verify the presence of the posted notifications on the Annual Checklist.

Title VI Complaint Form and Procedure: The subrecipient must have a clear and consistent procedure for responding to customer complaints on Title VI issues. The subrecipient must provide a Title VI Customer Complaint Form. Subrecipients submit a copy of the Notice with the Annual Management Plan application. Transit project managers verify on the Annual Checklist.

Investigation of Title VI-related Complaints/Lawsuits: The subrecipient shall maintain a list or log pertaining to their transit-related activities. Subrecipients submit a report of investigations/complaints/lawsuits to MnDOT. MnDOT gathers any further information from subrecipients during the annual visits and documents findings Annual Checklist. MnDOT prepares a Title VI Report for submission to the FTA every three years. Compliance with Title VI Civil Rights takes place through monitoring of complaints. When a complaint is deemed a civil rights issue it is referred to the MnDOT Title VI coordinator.

Public Outreach Plan: The subrecipient must have a written Public Participation Plan which describes the strategies, procedures and desired outcomes supporting their public participation activities. Many transit systems have Transit Advisory Committees (TACs) that represent various groups within the transit service area. County boards and city councils are also opportunities to receive input regarding public transit plans. Public Outreach Plans are reviewed periodically to ensure adequate inclusivity.

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Limited English Proficiency: The subrecipient must have a written Language Assistance Plan Each subrecipient develops a Language Assistance Plan as appropriate for the area in which the transit system operates. Each subrecipient completes a four factor analysis.

The LEP Four Factor Analysis

Factor 1: Demography: What is the number or proportion of LEP persons served and the languages spoken in the service area?

Factor 2: Frequency: How often do LEP persons come into contact with the service or program?

Factor 3: Importance: How does the program, service or activity affect people’s lives?

Factor 4: Resources and Costs: What funding and other resources are available for LEP outreach?

The Language Assistance Plan then describes the measures it currently uses or might use to address the needs of the LEP persons. Finally, the Plan describes how notice to LEP persons about available language assistance is publicized. Technical Assistance is provided to assist subrecipients in complying with LAP Plan requirements.

Minority Representation on Planning and Advisory Bodies: A subrecipient with transit-related, non-elected planning boards, advisory councils, or committees selected by the subrecipient must provide a table depicting the membership of those organizations broken down by race. Transit subrecipients are required to submit a table showing the minority representation on planning and advisory bodies with the Annual Management Plan application.

Title VI Equity Analysis in Location of Facilities: In the siting and location of transit facilities subrecipients are required to complete a rigorous evaluation of the alternatives to assure that there are no disparate impacts on populations with regard to race, color or creed.

When a subrecipient constructs a facility, such as a vehicle storage facility, maintenance facility, operations center, etc., the subrecipient includes a copy of the Title VI equity analysis conducted during the planning stages with regard to the location of the facility.

Disadvantaged Business Enterprise (DBE)

The MnDOT Office of Civil Rights (OCR) administers the DBE program for MnDOT by establishing an overall DBE goal for transit. To achieve this goal, the OCR assigns DBE goals to MnDOT and subrecipient projects where there is a potential for DBE participation. The OCR provides technical assistance to subrecipients to identify DBE contracting opportunities and, if necessary, to provide assistance to potential DBEs to become certified. The OCR is responsible for monitoring DBE achievements in transit and for training MnDOT staff on DBE requirements.

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Subrecipients must report as required on DBE goal achievement.

Equal Employment Opportunity

All subrecipients agree to comply, and assure the compliance of each third-party contractor and each subrecipient at any stage of the project with all equal employment opportunity requirements of Title VII of the Civil Rights Act of 1964 and with any implementing regulations issued by the Department of Transportation.

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Maintenance

Vehicle Maintenance

Each subrecipient is required to describe the transit system’s vehicle maintenance program as part of its annual application. The plan describes vehicle repairs, maintenance scheduling, and record keeping. A more detailed vehicle maintenance plan is to be kept on the system’s premises where it can be reviewed as part of the Annual Checklist.

Adherence to the maintenance plan, in particular, conformance with the manufacturer's recommended maintenance schedule, is spot checked by the District Transit Project Manager during visits.

In addition, the State of Minnesota requires all vehicles to undergo at least one inspection depending upon program certification or status:

Commercial Vehicle Inspection

Subrecipients operating commercial motor vehicles only within Minnesota and with a gross vehicle weight of greater than 26,000 pounds, or in a bus designed to transport more than 15 people including the driver, are required by Minnesota Statute §169.781 to have the vehicle inspected annually by a person certified by the Minnesota State Patrol.

Special Transportation Service

Those public transit subrecipients who have chosen to certify as Special Transportation Service operators are required to conform to all the vehicle safety, construction and maintenance standards described in Minnesota Rules Chapter 8840.5940 Inspection and Audit, 8840.5700 Vehicle Construction Standards, and 8849.5975 Standards for Maintenance. The annual STS inspection is carried out by MnDOT inspectors from the Office of Commercial Vehicle Operations.

Department of Public Safety (DPS)

Those public transit subrecipients who are not STS are required by Minnesota Statute to undergo an annual inspection of accessibility devices; that is, securement devices and passenger restraints. These requirements are described in Minnesota Rules Chapter 7450.0250 Type of Securement Required, 7450.0400 Minimum Standards for Frame-attached Devices, 7450.0460 Minimum

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Standards for User-friendly Devices, and 7450.0600 Occupant Restraint. The annual DPS inspection is carried out by a member of the Minnesota State Patrol.

In all cases, all vehicles with accessibility features must undergo either an STS or DPS annual inspection. It is the responsibility of the District Transit Project Manager to verify that vehicle inspection stickers on all public transit vehicles are current and note this on the Annual Checklist.

Facility Maintenance

Public transit subrecipients who have built or remodeled a facility with federal funds are required to develop and adhere to a facility maintenance plan that preserves assets and promotes safety and efficiency in the work environment. Elements of the maintenance plan include:

• Doors, including overhead and emergency doors • Plumbing • Heating, ventilating and air conditioning system • Generator or other power backup • Painting and exterior care • Landscaping and irrigation system, if applicable • Parking lots • Roof • Vehicle maintenance equipment • Vehicle washing equipment

The maintenance plan is developed locally, although technical assistance and guidance is provided by the Office of Transit and Active Transportation. Once adopted, subrecipients are monitored by their District Transit Project Managers for compliance during annual visits.

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Charter Rule

The annual Federal Certifications and Assurances for Federal Transit Administration Assistance signed by all subrecipients contains the Charter certification. The sub-recipients receive periodic updates on the charter regulation and exceptions. The FTA Charter regulations serve as procedural guidance for the process used to determine any willing and able private providers, the review process for subrecipients requesting exceptions from FTA, and the process the State has for reviewing complaints and appeals. MnDOT District Transit Project Managers verify compliance during on-site visits.

Section 504 and ADA

The annual Federal Certifications and Assurances for Federal Transit Administration Assistance signed by all subrecipients contain the ADA certification

Section 5311 subrecipient Annual Management Plans describe the Service Levels provided by the public transit service. The Service Level Plan identifies each route or service area, span of service and days of operation that the service is open to the public. All buses in service in Minnesota public transit service are fully ADA accessible.

Public transit operators are required to meet ADA alternative communication requirements for people with hearing disabilities through the use of either a TTY machine or the Minnesota Relay 711 service. The method must be identified on publicity materials. Materials prepared in alternative formats are available upon request for people with disabilities other than hearing. Compliance is reviewed annually by the district Transit Project Manager.

Compliance with Section 504 and ADA requirements is monitored by District Transit Project Managers and noted on the Annual Checklist

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National Transit Database (NTD) Reporting

Subrecipients are contractually obligated to report revenues, expenses, service hours, service miles, safety incidents and ridership each month. The Office of Transit and Active Transportation’s reporting data base captures all elements required for the Annual NTD Report. As required by 49 U.S.C 5335(b), NTD annual mandated reports, due October 29th of each year, are comprised of all data gathered based on the State’s fiscal year of July 1st through June 30th is used.

State Program Management

Procurement

All grant contracts with Section 5311 subrecipients include the following requirements: • Compliance with FTA Circular Third Party Contracting guidance • Prior approval of third party contracts by State • Submission to State of subrecipient procurement policies

Office of Transit and Active Transportation administrative procedures require staff to review and approve all federally funded third party operating contracts to ensure federal contract clauses are included. Technical assistance for federal procurements is available from transit project managers and Office of Transit and Active Transportation legal staff.

Subrecipients who use federal funds to acquire property or services in support of a proposed project are required to conduct and independent cost estimate (ICE). The ICE must be completed as part of a request for information.

Financial Management

The Office of Transit and Active Transportation is responsible for managing grants, contracts and interagency agreements to ensure that expenditures comply with federal rules and regulations for all FTA grant programs. Financial management responsibilities include:

• Managing the ECHO process between FTA and MnDOT so that transactions are processed in a timely manner and the accounts are balanced and well documented,

• Investigating and resolving accounting problems to ensure compliance with state and federal rules,

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• Managing the documentation entered into MnDOT’s database relative to individual grants, contracts and interagency agreements,

• Submitting federal financial reports in TrAMS • Rectifying and closing out FTA grants when projects are completed, and • Working with MnDOT finance to develop indirect cost rates.

Property Management

MnDOT maintains a permanent record for each vehicle purchased with Section 5311 funds. MnDOT ensures that all equipment used by recipients purchased with federal funds is used for the program or project for which it was acquired.

In the event subrecipients no longer need equipment purchased with federal funds, and useful life remains, the equipment is transferred in accordance with the MnDOT Vehicle Disposition/Transfer Procedure. The procedure describes what steps to follow when a vehicle’s fair market value exceeds ten percent of the original purchase price. Both the procedure and the accompanying form are downloadable from the Office of Transit and Active Transportation website.

MnDOT maintains a comprehensive list of all subrecipient facilities purchased with federal funds. If a facility is no longer needed the subrecipient must obtain a written appraisal and dispose of the facility according to federal disposition requirements as well as the MnDOT Office of Transit and Active Transportation Real Property (Facility) Disposition Guidelines found in Exhibit IV. The process requires the subrecipient to explain in writing why the property is no longer needed, obtain appraisals, and follow MnDOT’s directions regarding the fiscal requirements of the disposal.

With the yearly submission of the Annual Management Plan the subrecipients update the capital improvement plan. This includes updating the fleet inventory and fleet analysis for replacement vehicles. Vehicle use is monitored by district Transit Project Managers during annual visits. Proposed facility construction or renovations and ITS projects are also included in the ten year plan

Accounting Systems

Subrecipients establish a set of accounts in which all transit related costs, revenues, and operating sources are recorded and clearly identified, easily traced, and substantially documented. Accounting practices and records must be in accordance with Generally Accepted Accounting Principles.

All State agencies use a common accounting and procurement system for the procurement of agency goods and services and payments to vendors. The data that is entered into this system is collected in a data warehouse for agency users to compile information and generate reports. Data

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can also be accessed via Crystal Reports for specific reports. Ad hoc reports are also prepared for federal grant financial reporting.

Financial Reviews

Subrecipients are contractually and statutorily obligated under Minnesota Statutes §16B.36 to submit, upon request, their books, records, documents, and accounting procedures and practices for audit and examination by MnDOT, the Legislative Auditor or the State Auditor.

The MnDOT Audit Section audits each agreement included in the Section 5311 grant. Once all subrecipient agreements are audited and closed, the Section 5311 grant is closed. Once the final payment in a Section 5311 grant has been made, the grant closure process begins.

Project Monitoring/On Site Reviews

MnDOT uses the subrecipient’s annual management plan as a basis for monitoring financial and operational performance. Proposed deviations from the plan, for example, change of service hours or routes, must be approved in advance by the District Transit Project Manager. When proposed changes have a fiscal impact MnDOT Office of Transit and Active Transportation staff must approve changes.

Project monitoring is an ongoing process undertaken by MnDOT Office of Transit and Active Transportation and District Transit Project Managers. Subrecipients are required to report expenses, revenues and operating statistics monthly via electronic data entry. A Service Analysis Report is automatically generated that contains both year to date and projected outcomes for:

• Expenses • Cost per mile • Revenues • Cost per hour • Miles • Cost per passenger • Hours • Passengers per hour • Passenger Trips • Revenue per passenger

• Revenue to expense ratio

Transit Project Managers use the information contained in the reports to monitor subrecipients’ fiscal and operational activities.

Productivity, Cost Effectiveness and Service Standards

Throughout the GMTIP planning process, MnDOT identified 24 metrics in collaboration with Greater Minnesota transit providers. MnDOT highly recommends, but does not require, each system choose,

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igure 7-4: Productivity: Passengers per Service Hour

SERVICE TYPE ROUTE AVERAGE* Fixed Route 15

Commuter Bus 15

Route Deviation (Urban/Community) 8

Route Deviation (Rural) 5

Dial A Ride (Urban/Community) 3

Dial A Ride (Rural) 2

' Route average represents the average passengers per service hour over the entire day. Individual hours may fall below the standard. Also, service hours is defined as one bus operating for one service hour.

adopt and refine some of the proposed guidelines to reflect the operational characteristics of each system.

The metrics are grouped into the following two categories:

1. Service Design and Reliability Guidelines: (not associated with cost or productivity) a) Service Design Guidelines b) Reliability Guidelines

2. System Performance Standards (related to cost or productivity): a) Measure the change in network usage (passengers per hour) b) Ensure services operate responsibly (cost per ride).

SYSTEM PERFORMANCE STANDARDS

Performance standards evaluate the productivity and efficiency of services provided. These standards serve as indicators of route performance and call attention to routes that may need adjustment.

Productivity: Passengers per Hour

Productivity is measured as the number of passengers per hour (Figure 7-4).

Productivity: Passengers per Trip

The passengers per trip applies to intercity and regional mobility services only. These services are typically several hours in length. Therefore, the standard for passengers per hour does not apply. This standard describes the minimum acceptable capacity of service operating on a given route, Figure 7-5. Routes that do not meet these minimum standards should be reviewed for potential changes to increase ridership or reduce service. Very poor performing routes may be considered for elimination.

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Figure 7-5: Passengers per Trip

SERVICE TYPE Regional Mobility

Intercity Bus Feeder

3

3

MINIMUM PER TRIP

Figure 7-6: Cost per Passenger

COST PER PASSENGER

20 to 35 percent over

system average

35 lo 60 percent over

system average

Greater than 60 percent

over system average

MONITORING GOAL

For quick review

For intense review

For significant change

POSSIBLE ACTION

Minor modification lo

route

Major changes to route

Restructure or eliminate

route

Cost Effectiveness: Cost per Passenger

A route’s cost effectiveness is measured by the cost required to deliver service on a per passenger basis. This standard identifies the possible cost ranges when comparing overall system averages and focuses on corrective action for those services falling below averge. Figure 7-6 shows the cost per passenger thresholds and possible corrective action. Routes should be assessed after being in operation for one year.

Cost Effectiveness: Cost Recovery

A second measure for determining route cost effectiveness is the percentage cost recovery for a route (revenue/expense). Cost recovery calculates the amount of revenue generated by a service to cover the operating expense. Revenue typically includes fares, contract revenue, local contributions or local tax subsidy.

MnDOT recommends transit systems generate a minimum of five percent excess revenue on their services (20 percent rurals/25 percent urbanized).

Reporting Requirements

Public transit subrecipients are required to report monthly through the Public Transit Application (PTA) database. The monthly report includes:

• Expenses by line item • Revenues by line item • Number of passenger trips by demographic cohort and service type • Number of miles by service type • Number of hours by service type

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Reports are followed by a paper copy Request for Funds that includes the financial information and any reportable incidents (per NTD definition). Electronic reports and the subsequent paper requests are approved by the District Transit Project Managers before processing for payment.

Other Provisions

Employee Protection Provisions Sec. 5333 (b)

Each contract year subrecipients agree to be bound by the terms and conditions of the Special Section 5333(b) Warranty. The document is signed and submitted with the annual grant contract.

Environmental Protection

Environmental protection requirements are met whenever Section 5311 funds are used for capital projects.

Buy America and Pre-award and Post-delivery Reviews

MnDOT Office of Transit and Active Transportation Administrative Procedure #2010-08 Buy America Requirements for Direct Vehicle Procurements Supported with Federal Transit Administration Funds describes the detailed steps that must be undertaken when a subrecipient does not use the State Cooperative Vehicle Procurement Process. The procedure documents how all requirements are to be verified for compliance. It also provides subrecipients with all the appropriate legal paperwork that must be completed and kept on file.

MnDOT Office of Transit and Active Transportation Administrative Procedure #2010-01 Vehicle Procurements supported with Federal Transit Administration (FTA) Funds outlines the steps taken when the State Cooperative Vehicle Procurement Process is used for procuring vehicles on behalf of subrecipients.

School Transportation

Title 49 CFR Part 605 permits the use of public transit service by students in rural areas as long as the service is open to the general public and is not operated exclusively for school students. Public school students who are not eligible for school bus transportation for reasons such as attending an out of district school or not residing in the area for which school bus service is provided, may choose to ride the public transit bus as members of the general public. All subrecipients are in possession of the FTA published brochure entitled Federal Transit Administration: Public Transportation and

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School Buses—Questions and Answers. https://www.stmarysmd.com/docs/FTA%20SchoolBusBrochure.pdf

There are no subrecipients operating exclusive school bus service. There are no Section 5311 subrecipients operating school tripper service. The Federal Certifications and Assurances for FTA Grants requires the subrecipient to verify with each annual grant contract.

Drug and Alcohol Testing including monitoring subrecipients

All subrecipients comply with FTA drug and alcohol testing requirements. This includes pre-employment, random, post-accident and reasonable suspicion testing. All subrecipients test for marijuana, cocaine, opiates, phencyclidine, amphetamines and alcohol. Rates for 25 percent for drugs and 10 percent for alcohol are achieved.

During the Annual Checklist visit the program records are observed to be stored in a secure location with controlled access as are the testing records themselves of new hires. Subrecipients are monitored in accordance with MnDOT Office of Transit and Active Transportation Administrative Procedure #2007-01 Drug and Alcohol Testing Compliance Monitoring. The procedure outlines in detail how the Transit District Project Managers monitor compliance and how, in turn, the Office of Transit and Active Transportation Federal Programs Manager compiles appropriate reports and submits them to the Federal Transit Administration.

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APPENDICES

(NOT HYPERLINKED)

EXHIBIT I Contact Strategy-New System Starts pages i—iv

EXHIBIT II Qualifications for Intercity Bus Program page v

EXHIBIT III Annual Checklist pages vi—xvi

EXHIBIT IV Real Property (Facility) Disposition page xvii Guidelines

EXHIBIT V Administrative Procedure #2013-14 page xviii Issuing Corrective Orders to Subrecipients

EXHIBIT VI Title VI Program Compliance Monitoring page xx

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EXHIBIT I

STATE OF MINNESOTA

DEPARTMENT OF TRANSPORTATION

OFFICE OF TRANSIT

Mail Stop 430

Phone: (651)366-4177

395 John Ireland Blvd.

E-mail: sb.lenz@dot.state.mn.us

St. Paul, MN 55155

TECHNICAL ASSISTANCE MEMORANDUM

Date: April 1, 2007

To: Office of Transit and Active Transportation Staff and DPMs

From: Sarah Brodt Lenz, State Program Administrator

Subject: Contact Strategy-New Transit System Starts

1. Local interest contacts MnDOT. Office of Transit and As a result of the recently concluded Local Active Transportation or District Office makes other Coordination Meetings, inquiries regarding party aware of contact. public transit system start up may become

more frequent and may come to either the Office of Transit and Active Transportation or the local District Office.

i

EXHIBIT I

2. Transit Project Manager responds to initial inquiry. TPM is usually part of the district planning staff, otherwise notify district planner. Don’t talk about money this early; it promotes the “how much are you gonna give me/what are you gonna do” discussion.

3a. City or County requests formal meeting with District Transit Project Manager/Office of Transit and Active Transportation to confirm intent to explore transit potential

New Start presentation (by MnDOT staff; need to modify)

City or County endorses forward progress with advisory committee

Document intent in writing to MnDOT City or County invites additional key people, if

necessary, to the advisory committee

Appoint leader/local champion (does NOT have to be a County Commissioner, could be a city official, a local organization, or a highly motivated individual citizen).

If it ever comes down to competition for funding, the early documentation establishes priority.

Once the advisory committee is formed review the New Start presentation if necessary

3b. Other request, for example, a CAP agency, other non-profit or interested local advocate or group.

New Start presentation for the interested group(s)

Invite local unit(s) of government to participate Document intent in writing to MnDOT Invite additional key people, if necessary, to the

advisory committee

Note that if a local government unit does not want to participate the project can still continue2

2 For example, Productive Alternatives, Inc. was the organizing force behind initiating public transit service throughout Otter Tail County despite the County board not participating.

ii

EXHIBIT I

4. Working group consisting of 5-6 key people is established to assist with and set parameters of the potential service.

5. Research existing transportation options, service gaps and estimate public transit levels of service. Refer to the locally developed coordinated plan

for insight. Consider a variety of methods such as surveys,

economic development resources, regional development commissions, local city and county planning, etc. expertise to advise the working group.

A community open house may be useful at this time (optional).

There must be a group leader/local champion who is responsible for calling and chairing the working group meetings. This person does not have to be a person with titular authority, nor does it commit the person to becoming the transit manager once service is established. The District Transit Project Manager will be the key since this is where a tentative budget of funding and number of service hours is developed.

District and regional planning staff may provide assistance with identifying facilities in the area that could be trip generators or destinations for passengers.

Avoid assumptions about transit dependency (e.g., “everyone know old people need rides.”)

Bring in staff with data collection/market research (Office of Transit and Active Transportation Survey Template)

Review IPMP Citizen Participation Workbook for guidance on conducting open house presentations.

iii

6. Once the data have been assembled and summarized, develop service options

Identify service options

Develop preliminary budgets for each service option

Establish acceptable performance measures for each service option

Determine whether service operated by the organization or contracted to a third party operator

7. Local champion and MnDOT staff presents recommendations/service option to County/City/Local Organization Board.

8. County/City/Local Organization Board makes formal resolution to pursue development of public transit service. Complete Annual Management Plan and submit

MnDOT for preliminary review.

9. Once MnDOT notifies applicant that funding is available, adjust Annual Management Plan to include: Operational budget to fit the remaining calendar

year. Include allowable start up costs that will be incurred prior to start of operations.

Choose vehicles (do not order new vehicles until contract is awarded.)

If vehicles are transferring from a Section 5310 program, complete appropriate transfer documents.

10a. Office of Transit and Active Transportation requests pre-award audit of grant recipient’s organization.

EXHIBIT I

Wait until this stage to develop the budget to avoid the issue listed in No. 2.

We are no longer permitting dial-a-ride on a county-wide basis. DAR is acceptable for municipal service.

Third party operator contracts must be competitively procured.

Be prepared to display rough budget estimates that include local share commitment for capital and first year of operations

TPM to provide technical assistance in application preparation.

Identify ATP impact (vehicle acquisition, vehicle replacement schedule, facility, etc.)

Determines that the applicant organization has the ability to account for transit costs.

iv

10b. Applicant disclosures:

All pending applications for financial assistance and all financial assistance currently provided by Federal agencies

Any active lawsuits or complaints naming the applicant which allege discrimination on the basis of race, color, or national origin

EXHIBIT I

Auditor may make recommendations on preferred procedures.

Determines whether the applicant already or will be required to conform to OMB Circular A-133 Federal Single Audit Act

Ensures that all Civil Rights regulations are followed according as part of the Civil Rights Circular 4702.1 Chapter III General Reporting requirements.

v

EXHIBIT I

11a. Award start-up contract. Encumber state funds Only start up activities covered by the grant and which occur on or after the date of execution are eligible for reimbursement.

11b. If using a third party operator, solicit proposals, evaluate and award contract.

12. Order or transfer vehicles and associated equipment.

13. Hire transit coordinator.

14. Conduct marketing, education and public outreach activities

15. Hire and train drivers, dispatchers and other staff, as needed.

16. Buses delivered. Transit service begins.

17. Start up transit committee transforms to Transit Advisory Committee (TAC) and continues periodic meetings. Ongoing review of policies and procedures Operations review Receive public input

TPM works with grantee to ensure that the grantee follows all federal procurement rules. MnDOT must approve both the RFP and the resulting contract.

TAC should continue to meet at least quarterly during the first few years. There should be a well-publicized opportunity for public participation.

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EXHIBIT I

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EXHIBIT II

Qualifications For Intercity Bus Programs

Intercity Bus Program Objectives – The first objective of the funding for intercity bus service under Section 5311 is to support the connection between nonurbanized areas and the larger regional or national system of intercity bus service. A second objective is to support services to meet the intercity travel needs of residents in nonurbanized areas. A third objective is to support the infrastructure of the intercity bus network through planning and marketing assistance and capital investment in facilities. FTA encourages states to use the funding under Section 5311(f) to support these national objectives as well as priorities determined by the state.

Eligible Activities – Assistance under Section 5311(f) must support intercity bus service in rural and small urban areas. Section 5311(f) specifies eligible intercity bus activities to include “planning and marketing for intercity bus transportation, capital grants for intercity bus shelters, joint-use stops and depots, operating grants through purchase-of-service agreements, user-side subsidies and demonstration projects, and coordination of rural connections between small transit operations and intercity bus carriers.” This listing does not preclude other capital and operating projects for the support of rural intercity bus service.

Eligible Recipients – FTA has generally allowed states to pass through funds to local public bodies and to private nonprofit organizations as subrecipients, while requiring that assistance to provide for-profit operators of transportation service be in the form of third party contracts. For the purpose of Section 5311(f) only, however, FTA permits states to pass through funds to private intercity bus providers in a subrecipient relationship. In some instances, certain intercity bus providers may be unwilling or unable to accept the terms and conditions the state applies to subrecipients and may prefer to maintain a contractual relationship, in order to isolate the remainder of their operations from Federal requirements related to the grant. The state may use either mechanism to provide assistance to private operators for intercity bus service. In either case, the state should use a merit based selection process to ensure that the private operator is qualified, will provide eligible service, can comply with Federal and state requirements, and is the best, or only, provider available to offer service at a fair and reasonable cost.

Definition – For the purpose of this provision, FTA defines intercity bus service as regularly scheduled bus service for the general public which operates with limited stops over fixed routes connecting two or more urban areas not in close proximity, which has the capacity for transporting baggage carried by passengers, and which makes meaningful connections with scheduled intercity bus service to more distant points, if such service is available. Schedule information for intercity service typically maintained in the Official Bus Guide (Russell’s Guide).Commuter service (service designed primarily to provide daily work trips within local commuting area) is excluded from the definition. Intercity service is not limited by the size of the vehicle used or by the identity of the carrier.

The following nine key points define intercity bus: 1. Regularly scheduled bus service (not demand service); 2. Available to the general public (not reservations only); 3. Limited stops; 4. Operates on fixed routes (does not deviate from route); 5. Connects two or more urban areas not in close proximity; 6. Makes meaningful connections to national intercity network; 7. Predominately passenger service: 8. Not charter service; and 9. Not air, water or rail service.

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EXHIBIT III

Annual Monitoring Checklist-Section 5311 Programs

Name of Transit System: Date of Completion:

Items in blue are covered in the Annual Management Plan or by PTA reports and may be completed at any time during the monitoring period.

Annual Management Plan Conferences

Visit Record at end of checklist

Use Date and Comments section to note deficiencies and corrective actions. Provide subrecipient with written documentation of deficiencies, corrective actions and expected date of completion.

Checklist Category

1.0 ORGANIZATIONAL STRUCTURE

1.1 Type of Governing Board1

__ County Commission

__ City Council

__ Community Action Council

__ Other Non-profit Board

__ Joint Powers Board

__ Tribal Government

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EXHIBIT III

1.2 Public Input Opportunities

__ Public Outreach Plan2

__ Formal Transit Advisory Committee3

__ Other Citizens Input

Frequency of meetings:

1.3 Third Party Contractor4

__ Driver Services

__ Dispatch

__ Maintenance

__ Vehicle Storage

__ Other:

Contract Term Dates

Start:

End:

Amendments:

N/A

1.4 Special Transportation Service §174.305

Certificate Number:

Date of Expiration:

N/A

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EXHIBIT III

2.0 ADMINISTRATION

Contract Compliance6

__ PTA reporting is timely

__ RFF submissions are timely7

__ Revenue contract renewal dates are current

__ Expense contract renewal dates are current

__ Other Federal and State compliance:

__ Title VI (Section 13.0)

__ ADA (Section 14.0)

__ Drug and Alcohol Program (Section 15.0)

3.0 HUMAN RESOURCES AND LABOR RELATIONS

3.1 Labor Contract

__ Labor relations agreement

Date of expiration:

N/A

3.2 Job Descriptions8

Last update:

__ Essential duties

__ Physical requirements

__ Licensure requirements*

__ Safety sensitive status

3.3 Background Checks9

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EXHIBIT III

__ Criminal background check completed annually

__ Driving record check completed annually

__ Medical card is up to date

__ Driver qualification files are current

3.4 Recruitment and Turnover10

__ Number of open positions

__ Recruitment methods

__ Average length of vacancy

3.5 Work Related Injuries11

__ Number of injuries

__ Cause of injuries

__ Return to work outcome

3.4 Employee handbook12

Last updated:

4.0 RISK MANAGEMENT AND SAFETY TRAINING

4.1 Driver Training13

__ Driver training program conforms to Minnesota Rules Chapter 8840

__ Maximizes uses the RTAP Program __ Uses other safety training programs • Describe: • __ Accident/incident procedures are reviewed annually

N/A

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EXHIBIT III

4.2 Passenger Safety14

__ Safety belt notices are posted in the buses

__ Passengers are aware of safety policies

__ Incident reporting in timely

4.3 • Maintenance Training15

• __ Mechanics are appropriately certified for duties/specialties

• __ Maintenance training—Describe activities during last year:

• Specialty training: • __ Garage • __ Building • __ Vehicle and Equipment •

N/A

5.0 SERVICE DESIGN

5.1 Service Plan16

__ Published service hours conform to current Management Plan

__ Published service area conforms to current Management Plan

__ Changes in hours/area in current year

Last updated:

5.2 Review of Service Trends17

__ Review of ridership statistics

__ Review year to date service analysis

__ Review 3 year trend

6.0 SERVICE DELIVERY

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EXHIBIT III

6.1 Trip Scheduling18

__ Method of scheduling Describe:

__ Advanced technologies used __ Two-way communications method __ Same day trip requests __ Advance reservations __ Answering machine/voice mail available __ Referrals to other organizations __ Volunteer program available __ Service to special groups __ Denial rate19

6.2 Service Policies20

__ Cancellation policy __ No-show policy __ Billing services

__ Quality indicator review

__ On time performance

__ Pick up window

__ Complaints

7.0 PERFORMANCE STANDARDS

7.1 Review Service Analysis – Overall Program21

__ Cost per hour

__ Cost per trip

__ Cost per mile

__ Passengers per hour

__ Revenue/expense ratio

__ Service segment review22 – individual:

__ Cost allocation model completed:

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EXHIBIT III

7.2 Trend Analysis23

__ 5-year spreadsheet showing progress on performance indicators

8.0 VEHICLES AND VEHICLE MAINTENENCE

9.1 Vehicle Inventory24

__ Reconcile to PTA

__ Reconcile to insurance certificate

__ Disposed vehicles are not part of MnDOT budget

8.2 Maintenance Plan and Schedule

__ Review vehicle maintenance plans, if new notify Jan K.

__ Review vehicle maintenance schedules25

__ Spot check maintenance records

__ Documented repetitive issues26

__ Spot check daily vehicle inspection reports

Complete specialty checklist.

Vehicle Maintenance On Site Spot Check

8.3 Insurance

__ Insurance certificate is on file at Office of Transit and Active Transportation at N:\TRA\PROGRAMS\Public Transit Participation Program\Insurance Certificates

8.4 Inspections27

__ USDOT or STS number

__ Annual vehicle inspections

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EXHIBIT III

__ Commercial Vehicle:

__ Department of Public Safety:

__ Special Transportation Services: N/A

9.0 FACILITIES

9.1 Facilities28

__ Facility and related equipment inventory—Last update:

__ Facilities maintenance plan— if new, notify Kent E. Last update:

__ Facility Site Checklist, date:

Complete Facilities Checklist if applicable.

9.2 Facilities under construction29

__ Construction files are current

9.3 Facilities in planning stages30

10.0 PROCUREMENT

10.1 Local procurement policy31

Last update: _________

10.2 Federal Requirements32

• __ Disadvantaged Business Enterprise process followed with any RFPs.

• __ Direct vehicle procurements • __ Buy America

__ Labor Clauses and Federal Certifications are included

Verify proper procedures.

Administrative Procedure 2010-04

Verify proper procedures.

Administrative Procedure 2010-08

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EXHIBIT III

11.0 FINANCIAL MANAGEMENT

11.1 Cost allocation plans33

__ Payroll Allocation Plan

__ Premium/contract service

__ Space/utility sharing

__ Staff sharing

Most recent cost allocation plan submission:

Date: ____________

11.2 Audits

__ Most recent independent financial audit34

Date:

__ Most recent MnDOT field audit35

Date:

11.3 Fare Collection and Reconciliation36

__ Farebox procedures are congruent with the Annual Management Plan

__ Segregation of duties is verified

__ Counts of non-cash media and deposit of cash media are reconciled with trip sheets

12.0 MARKETING AND COMMUNICATIONS

12.1 External Publications37

__ Brochure—Last update:

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EXHIBIT III

__ Riders Guide—Last update:

__ Website—Last update:

__ Rider survey—Last update:

__ Title VI notifications included in all publications31

12.2 Marketing Plan38

Last update:

__ Media relations policy

__ Crisis communications

__ Advertising policy

__ LEP/LAP Advertising

13.0 TITLE VI – CIVIL RIGHTS

13.1 Notice of rights under Title VI39

__ Posted on vehicles __ Included in brochures/promotional materials __ Posted on website

13.2 Complaint form and procedure40

__ Most recent update:

13.3 List of Investigations/Complaints/ Lawsuits40

__ Most recent update:

13.4 Racial breakdown of non-elected boards and committees40

__ Most recent update:

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EXHIBIT III

13.5 Public outreach plan40

__ Most recent update:

13.6 Language assistance plan41

__ Most recent update: • __ Most recent staff training on language assistance

measures

14.0 AMERICANS WITH DISABILITIES

14.1 Transit rolling stock and facilities

__ Vehicles are accessible

__ Bus stops, where they exist, are accessible42

14.2 Complaints43

• __ Lawsuits alleging discrimination on the basis of disability

14.3 Communications44

__ Call taking and ride reservation __ Published materials

14.4 Service Delivery __ Loading and unloading passengers45

__ Service animals46

15.0 DRUG AND ALCOHOL COMPLIANCE

15.1 Drug and Alcohol Compliance

These are completed separately from the Annual Checklist and submitted to Deborah Ellis. N:\Transit\Drug & Alcohol Compliance Checklists

Note date of last Drug & Alcohol review:

Specialty checklists

__ Recordkeeping

__ Monitoring

__ Test facility

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EXHIBIT III

File at N:\Transit\Drug & Alcohol Compliance Checklists\2012 D&A Checklists from Districts under your name.

16.0 SAFETY AND SECURITY

16.1 Safety & Security Plan47

Last update:

16.2 Impact on federal transit assets48

Review any reports of events where public transit assets were affected. See related Technical Assistance Brief -- Reporting Adverse Transit Impacts

N/A

17.0 JARC [Section 5316 for CY 2013]

17.1 Program Content49

__ Review of the Annual Management Plan

__ Low income individuals

__ Early morning late evening services

__ FTA report submitted to Program Coordinator

19.0 NEW FREEDOM [Section 5317 For Cy2013]

19.1 Program content50

__ Review of the Annual Management Plan

__ Used for elderly and/or people with disabilities

__ FTA report submitted to Program Coordinator

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EXHIBIT III

DATE OF ON-SITE VISIT: TOPICS ADDRESSED: PRESENT AT VISIT:

SITE VISIT RECORD

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EXHIBIT III

ENDNOTES

ANNUAL MONITORING CHECKLIST VERSION 4.3 Effective for Calendar Year 2013

Annual Management Plan Conferences may occur over several dates and may not all occur in person. Note dates each time the plan is discussed.

Corrective orders must be noted on the checklist and followed up in writing as described in MnDOT Office of Transit and Active Transportation Administrative Procedure #2013-14 Issuing Corrective Orders to Subrecipients.

Section 1.0 ORGANIZATIONAL STRUCTURE

1 Complete once. Modify only if changed.

2 Public Outreach Plan should be congruent with the requirements outlined in FTA Circular C 4702.1B, Chapter III. See also Section 13.0 Title VI Civil Rights.

3 The Minnesota Transit Providers Guidebook, Chapter 2, recommends the formation of a Transit Advisory Committee that includes representation from users, stakeholders and local officials. Absent a formal TAC, we recommend at least one annual opportunity for the public to provide input on local public transit.

4 Indicate which services are provided by the third party contractor. The assumption is that all other services are provided by the subrecipient.

5 If a subrecipient is also certified Special Transportation Service under Minnesota Statutes §174.30 review the latest inspection completed by MnDOT Office of Commercial Vehicle Operations. Note any deficiencies still outstanding.

Section 2.0 ADMINISTRATION

Non-compliance issues of any type should be noted here with detailed information about the reporting issues. Further details relative to Title VI, ADA, and Drug and Alcohol should be detailed in the appropriate sections.

6 PTA reporting is timely: Note deficiencies only and corrective action taken.

7 Requests for Funds (RFFs) are submitted within a reasonable time after the PTA report is entered. Note deficiencies and corrective action taken.

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EXHIBIT III

Section 3.0 HUMAN RESOURCES AND LABOR RELATIONS

8 Review most recent set of job descriptions to ensure they include the four elements listed. Special attention to what positions are safety sensitive. Not necessary to review annually unless there has been a change.

9 Background and record checks, medical and driver qualifications: Review only the procedure for these. DO NOT review employee files! If there are no written procedures assist subrecipient with development. In the case of a third party operator, review same (some of these requirements should be included in the subrecipient’s contract with the third party operator.)

10 New category for CY2013. Look for evidence that direct service positions (drivers, dispatchers, mechanics) are replaced in a timely manner.

11 If there is an excessive number of work related injuries cross reference to the orientation training and ongoing training to ensure that safety is continually reinforced.

12 Employee handbook and driver handbook may be two separate documents. Review both initially and then any subsequent changes as they occur. NOTE: The employee handbook may be the document in place for the subrecipient’s larger organization (city, county, CAP).

Section 4.0 RISK MANAGEMENT AND SAFETY TRAINING

13Driver training program is not contractually obligated nor is STS training required unless the subrecipient is certified STS. However, conformance should be recommended as a risk management strategy.

Describe what training programs do exist and for whom. If subrecipients are unfamiliar with the RTAP program, direct them to our website. If they have issues with the program, please share these with the RTAP staff.

14 Public notices about the safety belt requirements should be posted. Ensure that the subrecipient understands the contradiction between the adult safety belt requirement and the child seat exemption. Encourage the development of a written policy to cover all bases.

Passenger-related policies: Ensure that the public is aware of these policies through Riders Guides, posters, website and information on other publicity materials. Review the materials if there have been changes.

Check both reportable and non-reportable incident reports. Verify that any reportable incident has been reported to the Office of Transit and Active Transportation for inclusion in the annual NTD report. Verify that there is a regular review and analysis of all incidents. Subrecipients should refer to Technical Assistance Brief Incident Reporting-revised(2).doc for guidance.

15 If the transit subrecipient employs in-house mechanics, verify that they are appropriately trained and certified to perform their duties. Describe any specialty training, e.g., lifts, air conditioning, etc.

Section 5.0 SERVICE DESIGN

16 Verify conformance of published schedule with that described in the Service Levels section of the Annual Management Plan. Change Management Plan as appropriate. Changes must be approved by TPM.

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EXHIBIT III 17 Review any statistical information that may determine whether service adjustments should be made. In particular, if there is a regular pattern of denials on specific days and times, examine service design with the goal of freeing up travel opportunities for those times.

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EXHIBIT III

Section 6.0 SERVICE DELIVERY

18 Describe the steps from call intake to schedule creation. If a computer assisted dispatch program is used describe the brand and version used. Update description whenever there are significant changes in process.

Describe the communications system between dispatch office and vehicles on the road. Update description whenever there are significant changes in technology.

Describe the procedure for making advance reservations and for taking calls when the office is not open. Update as appropriate.

When referrals are made to other service providers are these documented?

Describe the volunteer driver program, if one exists. Carefully delineate the differences between the public transit section and private section of the program.

19 Denials are documented. Estimate the denial rate for previous period. Determine cause of denials such as lack of capacity, trip request is outside service area/hours.

20 Service delivery policies, e.g., no shows or cancellations, should be known to drivers, dispatchers and passengers through Riders Guides, brochures, etc.

Describe how service to special groups is handled.

Section 7.0 PERFORMANCE STANDARDS

21 Review all data as reported to PTA. Make corrections as necessary.

22 Selective reviews of individual service segments to ensure continued conformance with MnDOT performance standards.

23 Review five year trend on major performance indicators (others may be added that are specific to transit systems.) Address significant changes.

Section 8.0 VEHICLES AND VEHICLE MAINTENANCE

24 THIS REPLACES THE ITEM CALLED CAPITAL PLAN. IT’S INTENDED TO GET AT THE ISSUE OF “ROGUE’ VEHICLES AND ALSO TOO MANY SPARES. Verify that all vehicles in the PTA inventory are in public transit service. Vehicles not in MnDOT fleet may be used for public transit but only operating expenses affiliated with delivering a public transit trip are reportable.

25 Review maintenance plans and schedules. Verify that scheduled maintenance is taking place as planned.

26 In reviewing the vehicle capital plan report on any vehicles that are not likely to conform to the estimated life cycle, i.e., “lemons,” or those that can be used for an extra year. Report repetitive problems to Vehicle Procurement Coordinator.

27 Verify presence of appropriate vehicle decals. Verify presence of appropriate inspection stickers.

Section 9.0 FACILITIES

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EXHIBIT III 28 For existing facilities review inventories and maintenance plan if applicable. Complete facility site checklist and submit with Annual Checklist.

29 Kent, please put in some explanation for this that amplifies what the non-specialist is supposed to be looking at.

30 Kent, we probably need some categories here like environmental, pre-design, or whatever could be looked at by the non-specialist. May be some elements of procurement in here too.

Section 10.0 PROCUREMENT

31 We haven’t asked to see the policies recently. The subrecipients could send them in, e.g., by 12/31/13, and we could scan them into EDMS.

32 Ensure compliance for direct procurements with federal requirements. Attach any specialty checklists if required. Internal policies governing direct procurements by subrecipients are found at MnDOT Office of Transit and Active Transportation Administrative Procedure #2011-02 MnDOT Office of Transit and Active Transportation Oversight of FTA-funded Procurements.

Section 11.0 FINANCIAL MANAGEMENT (RENAMED FROM “ACCOUNTING AND FINANCE” TO INCLUDE OTHER ASPECTS OF SOUND FINANCIAL MANAGEMENT)

33 Plans for the various categories should be revised whenever a major change takes place. Expense and revenue congruence with budget measures how much service delivery is funded through formula sources and how much is strictly local. If the Annual Management Plan reflected a percent of non-formula funded service provision, determine whether the relative proportion of local only funded service is still in place.

Cost allocation plan for premium/contract services: Verify that various programs continue to be congruent with annual plan.

34 Non-federal organizations receiving more than $500,000 per year are required to conform to Office of Management and Budget Circular A-133 Audits of States, Local Governments, and Non-Profit Organizations.

35 Audits: If any issues remain unresolved note here (e.g., mainly procedural issues). Use comments section to describe citations and administrative decisions.

36 Fare collections policy: Verify that the actions described in the Annual Management Plan are the actual activities taking place. If there is a discrepancy either the Annual Management Plan must be amended or the subrecipient procedures must be compliant with the Annual Management Plan.

Section 12.0 MARKETING AND COMMUNICATIONS

37 Review most recent system brochure/schedule and verify that the advertised services are the same as those shown in the current Annual Management Plan.

Review other materials related to publicity and check for ADA compliance and Language Assistance measures.

If a rider survey has been conducted (outside of those organized by Office of Transit and Active Transportation) describe summary findings.

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EXHIBIT III 38 Review marketing plan if there is a formal document. Otherwise, determine what the policies are on each item listed.

Section 13.0 TITLE VI – CIVIL RIGHTS

39 Determine that the Title VI notice is available in public locations.

40 Verify that 15.2. 15.3, 15.4 and 15.5 are congruent with materials submitted with Annual Management Plan.

41 Must be updated annually. Staff must receive annual training on language assistance measures. Data updates are to be completed using 2010 census and most recent American Community Survey data.

Section 14.0 AMERICANS WITH DISABILITIES

42 Ensure that bus stops that are the responsibility of the transit system are fully accessible to persons with disabilities.

43 Check any lawsuits alleging discrimination based on disability. NOTE: This is NOT the same as a Title VI complaint alleging discrimination on the basis of race, color or national origin.

44 Ensure that passengers with communications disabilities can contact transit office using accessibility features such as TTY or Minnesota 911. Ensure that published materials about transit service are available to persons with communications disabilities in accessible formats, including website information.

45 Ensure that drivers are trained to proficiency in loading and unloading passengers.

46 Ensure that drivers are trained for the appropriate accommodation of service animals as required under 49 CFR Part 37 (US DOT)

Section 15.0 DRUG AND ALCOHOL

See notes on checklist.

Section 16.0 SAFETY AND SECURITY

47 Review recent amendments to the transit subrecipient’s Safety and Security Plan. (NOTE: Transit may be included as an element of a larger organization’s plan).

48 Review any summary data from emergencies that may have impacted transit assets (flood, fire, other weather, spills, evacuations, etc.)

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EXHIBIT IV

MnDOT Office of Transit and Active Transportation

Real Property (Facility) Disposition Guideline

At disposition, MnDOT is entitled to reimbursement by the grantee for real property funded by state or federal capital assistance. Reimbursement is based on the same percentage as established in MnDOT’s grant contract with grantee. When the real property is no longer needed for the originally authorized purpose, the grantee will follow this MnDOT disposition guideline.

This guideline is based on Federal Transit Administration Circular 5010.1D GRANT MANAGEMENT GUIDELINES, Chapter IV PROJECT MANAGEMENT.

State bond funded projects must also comply with the requirements of:

• Minnesota Statutes, Section 16A.695 Property Purchased with State Bond Proceeds; Department of Finance Order Amending Order of Commissioner of Finance Relating to Use and Sale of State Bond Financed Property (1995); and

• G.O. Compliance Checklist, SALE OF G.O. PROPERTY located on the Office of management and Budget website at http://www.mmb.state.mn.us/doc/bonds/grants/checklist-sale.pdf.

Definition:

Real Property is defined as “land, including affixed land improvements, structures and appurtenances.”

Initiating Real Property Disposition Process

Real property must be disposed when one of the following events occurs:

A. Real property is no longer needed for the originally authorized purpose;

B. Recipient acquires replacement real property under the same program; or

C. Recipient discontinues transit services. Steps for Disposing of Real Property

A. Recipient submits the following to its Transit Project Manager:

1. Letter requesting approval to dispose of real property. 2. Copies of the following documents:

a. Two independent appraisals of the real property’s fair market value; b. Original purchase agreement, if applicable; and

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EXHIBIT IV

c. Original MnDOT grant contract and amendments.

B. Transit Project Manager reviews the disposition request, and may request an additional appraisal and/or supporting documentation. Transit Project Manager forwards the written request to Office of Transit and Active Transportation for final disposition approval.

C. Office of Transit and Active Transportation will advise the recipient in writing about the final details and fiscal obligations of the recipient to dispose of the property.

MnDOT Office of Transit and Active Transportation 1-22-09

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EXHIBIT V

Minnesota Department of Transportation – Office of Transit and Active Transportation

Administrative Procedure

2013-14

Title: Issuing Corrective Orders to Subrecipients

Background: The purpose is to ensure that all corrective actions issued to subrecipients are documented. A series of documents creates a paper trail that can be referenced for contract non-compliance and subsequent sanctions.

Policy/Objective: The objective is to create document that describes contract compliance and conformance with state and federal rules and regulations for each subrecipient over the course of the previous contract year. Documented correction orders and resulting failure to comply result in potential financial sanctions for subrecipients.

Forms: Annual Checklist

Attached documentation of correction orders

Procedure

Step Responsible Action Partners

1 TPMs Subrecipients

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EXHIBIT V

Interact with subrecipients throughout the calendar year to monitor progress. This includes providing technical assistance in conforming to state and federal guidelines and monitoring monthly financial reporting.

2 TPMs Issue corrective orders in writing to subrecipients when appropriate. Copy appropriate program coordinator.

Subrecipients

Program Coordinators

3 TPMs Request to hold quarterly federal and state payments when corrections are not completed in a timely manner. Enter “hold” directive to Master TASUM Worksheet Public OP TASUM.

Program Coordinator

Program Planning Director

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EXHIBIT V

4 TPMs Notify Program Coordinator/Program Planning Director when correction has been completed.

Subrecipient Program Coordinator

Program Planning Director

5 Program Coordinator Authorizes quarterly payments.

Accounting Staff

This procedure is effective on: _____________________________________________

Approved by: ___________________________________________________________

Director, Office of Transit and Active Transportation Date

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Minnesota Department of Transportation – Office of Transit and Active Transportation

Administrative Procedure

2013-15

Title: Title VI Program Compliance Monitoring

Background: FTA Circular 4702.1B requires that all public transit systems ensure that the level and quality of public transportation service is provided in a nondiscriminatory manner; promote full and fair participation in public transportation decision-making without regard to race, color, or national origin; and ensure meaningful access to transit-related programs and activities by persons with limited English proficiency.

Policy/Objective: The purpose is to ensure that all subrecipients are in compliance with Title IV of the Civil Rights Act regarding the prohibition of discrimination of access to services because of race, color or national origin.

Description: Compliance is monitored by Transit Project Managers through the Annual Checklist and by the Greater Minnesota Public Transit Coordinator through the Annual Management Plan Application.

Forms: Title VI Notification to Beneficiaries

Title VI Complaint Procedure and Form

Public Outreach Plan

Language Assistance Plan for Persons with Limited English Proficiency

Minority Representation of Planning and Advisory Bodies

EXHIBIT V

Procedure

Step Responsible Action Partners

1 Public Transit Coordinator

Makes annual presentation to subrecipients regarding Title VI compliance at application workshops.

Subrecipients

Transit Project Managers

2 Transit Project Managers

Review Annual Management Plan application to ensure that required documents are submitted. Subrecipients

3 Transit Project Managers

During visits vehicles and public transit locations are spot checked for postings of Title VI Notification to Beneficiaries.

Subrecipients

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EXHIBIT V

4 Public Transit Coordinator

Reviews submissions in the Annual Management Plan application for content and clarity. Advises subrecipients on completeness and provides directives for corrections.

Subrecipients

Transit Project Managers

This procedure is effective on: _____________________________________________

Approved by: ___________________________________________________________

Director, Office of Transit and Active Transportation Date

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EXHIBIT V

Column A Column B Column C Column D

First Result Second Result Third Result Fourth Result

Fifth Result Sixth Result Seventh Result Eight Result

Ninth Result Tenth Result Eleventh Result Twelfth Result

Thirteenth Result Fourteenth Result Fifteenth Result Sixteenth Result

Table 1 – You can add captions to tables and figures by selecting “Insert Caption” in the References tab

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