MnDOT State Management PlanSection 5311 Non-urbanized Area Formula Program

March 2016

Minnesota Department of Transportation Office of Transit

State Management PlanSection 5311 Non-urbanized Area

Formula ProgramMarch 2016

In conformance with circular FTA 9040.1G

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MnDOT State Management PlanSection 5311 Non-urbanized Area Formula Program

March 2016

MnDOT State Management PlanSection 5311 Non-urbanized Area Formula Program

March 2016

Table of Contents

IntroductionProgram Goals and Objective

1. Program Management …………………………………………………….. 1Roles and Responsibilities

……………………………………………………………….. 1Public Input Process

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

……………………………………………………………………………………..2Written Agreements

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

………………………………………………………………………….. 3Eligible Subrecipients

………………………………………………………………………….. 4Project Selection and Method of Distributing ……………………………………..

5Eligible Services and Service Areas

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

………………………………………………………….. 6Local Share and Local Funding Requirements ………………………………..

7Subrecipient Monitoring

…………………………………………………………………….. 7

2. Grant Administration …………………………………………………………. 8

3. Project Management …………………………………………………………. 9Vehicles………………………………………………………………………………………………..9Real Property……………………………………………………………………………………..9

4. Financial Management and Capacity ……………………………………. 10Operating Assistance…………………………………………………………………………. 10Audits……………………………………………………………………………………………….10

5. Procurement …………………………………………………………………….. 11Guidance………………………………………………………………………………………….11

MnDOT State Management PlanSection 5311 Non-urbanized Area Formula Program

March 2016

Vehicle Procurements…………………………………………………………………………. 12Architectural and Engineering Procurements …………………………………….13

6. Disadvantaged Business Enterprise ……………………………………. 13

7. Asset Management …………………………………………………………….. 13

8. Charter Bus ……………………………………………………………………… 14

9. School Bus ……………………………………………………………………… 14

10. Americans with Disabilities Act …………………………………………….. 14Accessibility and MnDOT

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

………………………………………………………….. 14

11.

MnDOT State Management PlanSection 5311 Non-urbanized Area Formula Program

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11. Title VI ……………………………………………………………………………… 16Subrecipient Responsibilities

………………………………………………………….. 16

12. Equal Employment Opportunity ………………………………………… 17

13. Drug Free Workplace Act and Drug and Alcohol Programs ……………………………………………………………… 18

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

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

14. Other Provisions ………………………………………………………………….. 18Productivity, Cost Effectiveness and Service Standards …………………

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

19Environmental Protection

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

19Lobbying

……………………………………………………………………………………………19

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

MnDOT State Management PlanSection 5311 Non-urbanized Area Formula Program

March 2016

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

MnDOT State Management PlanSection 5311 Non-urbanized Area Formula Program

February 1, 2016

Introduction (a)

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

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

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

(2) increase the efficiency and productivity of public transit systems;(3) alleviate problems of automobile congestion and energy consumption and

promote desirable land use where such activities are cost-effective;(4) maintain a state commitment to public transportation; and(5) meet the needs of individual transit systems to the extent they are consistent

with the other objectives stated above.

1. Program Management

Roles and Responsibilities (b)Under Minnesota Statute §4.07 the governor designates the Department of Transportation to receive and administer Federal Transit Administration Section 5311 funds for non-urbanized areas in Greater Minnesota1. The Federal 5311 program provides grant funds to support public transportation in rural areas, with population of less than 50,000 The MnDOT Office of Transit administers the state’s Rural 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

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

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Providing technical assistance, training and workshops for subrecipients including direct training of transit operators

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

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

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

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

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

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

Written Agreements

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

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

The MnDOT Office of Transit staff provides a wide scope of technical and management assistance to Section 5311 subrecipients. Program Administration staff activities 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 technical assistance to and oversight of all Greater Minnesota public transit systems. Transit Project Managers visit each of their transit systems several times a year to:

Develop or modify plans for new or expanded transit service Review and analyze transit operations Provide assistance in understanding and carrying out requirements of federal

and state regulations Review and approve operating specifications and procurement documents Provide encouragement and assistance to coordinate transit services Provide advice and assistance in the preparation of the Annual Management

Plan

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

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

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

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

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

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

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

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

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

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

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

Completeness and compliance with state and federal requirements Financial plan that demonstrates fiscal capacity and reasonableness Service plan that matches the fiscal capacity and is appropriate in scale and

scope Unmet needs, if any, are clearly articulated Capital plan that matches fiscal capacity and is effective and efficient Contractual relationships (if present) conform with state and federal

requirements Coordination relationships with other organizations and agencies (existing or

in development)

Project Selection Criteria and Method of Distributing (h) The procedure for soliciting applications for funding and determination of distribution of funds is established in State Administrative Rules Chapter 8835.0250 Application for Financial Assistance, 8835.0260 Management Plan and 8835.0270 Financial Assistance.

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

1. Operating assistance to existing public transit systems2. Capital assistance to existing public transit systems3. Operating and capital assistance for the provision of public transit services in

a community or area not currently served by public transit

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

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

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

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outside the UZA are eligible for funding. A chart and map of eligible origins are used to determine funding.

Eligible Services and Service Areas (e)The State does not impose any limitations on eligible services or service areas that are more restrictive than those limitations imposed by the Federal government.

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

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

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

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

Eligible Assistance Categories (f)1. Operating Assistance : The State does not treat the subrecipient’s administrative

and operating costs of the transit system as two separate categories. All administrative costs are part of operating costs. The Federal share of operating deficits cannot exceed fifty percent.

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

3. Intercity Bus Assistance : Section 5311(f) funds provide operating assistance to private mass transit companies to support specific rural intercity route segments, capital and marketing that improve connectivity in Greater Minnesota.

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

5. State Administration : MnDOT annually determines the amount needed for administrative purposes and requests up to the maximum 10% from the Section 5311 program.

Local Share and Local Funding Requirements (g)Subrecipients are required to contribute a portion of the total operating cost of the transit system. Minnesota Statutes §174.22 Subd. 12 through Subd. 15 describes

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operating assistance recipient classifications and prescribes the statutorily required local shares.

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

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

Subrecipients typically fund twenty percent of the local share for capital equipment projects funded through either the Section 5311 or Section 5309 programs. Occasionally the State may participate in the local share depending upon the availability of funds.

Subrecipient MonitoringIn Minnesota subrecipients are overseen by Office of Transit staff, many of whom are located in MnDOT’s district offices in the non-metro areas of the State. Oversight includes, but is not limited to:

Periodic in person visits with transit managers and program staff Frequent telephone and e-mail communication Budget development and reporting Monitoring for compliance with state and federal requirements Assistance with special projects

Public transit subrecipients are required to report monthly through the 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

Reports are followed by an electronic Request for Funds that includes the financial information and any reportable incidents (per NTD definition). District Transit Project Managers review for accuracy, authorize, and submit for payment. Electronic requests are reviewed and approved by Program Coordinator and Program Director and forwarded to the Financial Officer who also reviews for accuracy before authorizing payment.

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Any program operations findings are documented on the Annual Checklist 2 . Transit project managers may issue corrective orders whenever a transit system is found out of compliance with federal or state requirements. A written procedure is found in the OT Administrative Procedure Policy Manual. Transit systems found to be out of compliance on a regular basis may have their quarterly state and federal funds retained until such time as they are in compliance.

2. Grant Administration (j)

MnDOT Office of Transit takes into account the amount of available funding available prior to applying for new funds. Each of these decisions is influenced by the annual application process where subrecipients propose their annual budgets. Program performance and compliance is a factor in the amount of funding awarded to each subrecipient.

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 distributes applications with explanatory material to all subrecipients. 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 approved Management Plans are the basis for projects that are incorporated into Area Transportation Improvement Plans (ATIPs) for each MnDOT district and into Transportation Improvement Plans (TIPs) for each Metropolitan Planning Organization (MPO) area. The ATIPs and TIPs are combined into the Minnesota State Transportation Improvement Plan (STIP).

According to the agreements with each subrecipient, grantees have ninety days after the end of the grants period to submit their final requests for funds and any other required paperwork. Once all the documentation is complete, MnDOT Office of Transit sends a Final Audit Request to MnDOT Audit. Office of Transit Administrative Procedure #2013-09 Federal Grant Closeouts describes the internal procedure for timely closure of grants upon completion of activity in the Program of Projects.

2 Explanation of checklist items is found here.

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Milestone reports for each open federal grant are submitted according to the scheduled due dates.

Prior to the transfer of 5307 funds to rural areas, or transfer of 5311 funds to small urbanized areas, MnDOT will consult with local officials and publicly owed operators of public transportation services in each area to which the funding was originally apportioned. After such consultation, MnDOT will seek Governor’s authorization to transfer funds between programs.

3. Project Management

Vehicles (t)MnDOT Office of Transit writes the specifications for all the vehicles used in Greater Minnesota rural public transit programs. The Department of Administration under the Minnesota Cooperative Purchasing Venture issues RFPs/IFBs to potential vendors and invites them to respond with price information. Greater Minnesota public transit operators are then permitted to purchase vehicles from any one of the responsible bidders. All aspects of the vehicle procurement conform to the requirements as described in FTA Circular 4220.1F Third Party Contracting Guidance. MnDOT also maintains a permanent record for each vehicle purchased with Section 5311 funds and ensures that all equipment used by recipients purchased with federal funds is restricted for use by 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 website.

Real Property (t)Subrecipients who use federal funds to acquire property or services (other than vehicle procurement) are directed to work closely with their transit project manager and the appropriate Office of Transit Program Coordinator to ensure that all the proper procedures outlined in FTA Circular 4220.1F Third Party Contracting Guidance are followed. MnDOT reserves the right to review and approve the related RFPs and resulting contracts to ensure that the appropriate federal clauses are included. Throughout a project, such as construction of a facility, MnDOT staff are available to advise rural transit managers to ensure continued compliance with federal and state requirements.

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 Real Property (Facility) Disposition Guideline. The process requires the subrecipient to explain in writing

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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.

MnDOT Office of Transit does not use force accounts in the development of capital projects.

4. Financial Management and Capacity (t)

Operating AssistanceMinnesota Statutes 174.24, Subd. 3b Operating Assistance; Recipient Classifications specifies percent of operating assistance and transit subrecipient receives, stating the exact percent of local share that is required. The government funds in the grant contract agreement are made up of federal and state sources. At no time will the operating assistance derived from federal funds exceed fifty percent of the operating deficit. Local match is derived from farebox and contract revenues. Should the transit subrecipient choose to operate service whose expenses exceed the amount of the grant contract the additional deficit is made up by local funds.

The use of in-kind match is not permitted except in the case of Section 5311(f) Intercity Bus. The method for carrying out in-kind match is detailed in the Intercity Bus Technical Memorandum.

AuditsSubrecipients are contractually and statutorily obligated under Minnesota Statutes §16B.36 Investigations 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. 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.

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.

Subrecipients submit monthly expenses, revenues, passenger trips, revenue hours and revenue miles monthly to the database. These are reviewed by the Transit Project Managers and are approved and forwarded for payment or returned to the subrecipient for corrections. The State’s software does not permit payments to be made for amounts greater than the amount encumbered to the subrecipient’s grant contract.

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New subrecipients are required to undergo pre-award audits in order to determine that they have financial systems capable of carrying out the responsibilities of receiving and disbursing federal and state funds.

MnDOT Audit Office conducts pre-award and post-award audits of every subrecipient agreement (i.e. contract). If there are any findings, corrective action is taken including fund repayment. MnDOT’s auditing practices are modeled after Government Auditing Standards, also known as “Yellow Book.” Audit ensures that costs are paid in compliance with all state and federal laws, rules, and regulations, and that contracts are administered properly and efficiently. Additionally, if thresholds are met, a subrecipient is required to complete the Single Audit prior to MnDOT’s final audit, per 2 CFR 200 (Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards).

Additionally, In July 2012 (revised September 2015), the Minnesota Department of Administration, Office of Grants Management (Minnesota Management and Budget), recognized the importance of Single Audits and adopted Policy 0402-03, which aligns with the requirements of 2 CFR 200. The objective of the policy is to outline the responsibilities of a state agency that provides Federal funds to a subrecipient to carry out a Federal program. Furthermore, MnDOT also conducts required 2 CFR 200 Single Audit trainings for project and program staff to educate on key definitions, determination of eligibility, risk, performance management, procurement, information in agreements, monitoring, noncompliance, and closeout associated with federally funded agreements and contracts.

5. Procurement (t)

GuidanceProcurement planning takes place on an annual basis with the submission of the Annual Management Plan application. Subrecipients are required to update the 10-Year Capital Plan with requests for vehicles; vehicle related equipment, facilities and equipment and advanced technology projects. As the applications are reviewed and approved for funding the approved projects are matched with the STIP for the current year and upcoming three years.

MnDOT Office of Transit provides detailed guidance to subrecipients to ensure that all appropriate regulations are followed during the procurement process. The Office Transit website contains detailed information on the many types of procurements that take place as well as sample forms for use by subrecipients. Alternatively, MnDOT also encourages subrecipients to use the National RTAP Procurement Pro software to effect appropriate procurements using federal funds.

All grant contracts with Section 5311 subrecipients include the following requirements:• Compliance with FTA Circular 4220 Third Party Contracting Guidance• Prior approval of third party contracts by State• Submission of subrecipient procurement policies to State

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Office of Transit administrative procedures require staff to review and approve all federally funded third party contracts to ensure federal contract clauses are included. Technical assistance for federal procurements is available from transit project managers and Office of Transit legal staff. Administrative Procedure #2013-01 Technical Assistance to Subrecipients for Procurements Supported with FTA Funds provides detailed guidance to Office of Transit staff on how to assist subrecipients with determining the appropriate procurement methodology. This applies purchases of goods, small construction projects and third party operating procurements.

Vehicle ProcurementsVehicle procurement for Section 5311 subrecipients is carried out by the MnDOT Office of Transit and the Minnesota Department of Administration through the Minnesota Cooperative Procurement Program. The Invitation for Bid is currently let for one year plus an option year. At no time, now or in the future, will there be a contract for vehicle purchases that is longer than five years. The IFB document and resulting contracts specifically call out Altoona testing requirements, pre-award and post-delivery audits and domestic content (Buy America) regulations.

The following documents provide detailed guidance to Office of Transit staff in overseeing procurements of vehicles:

Administrative Procedure #2010-08 Buy America Requirements for Direct Vehicle Procurements supported with Federal Transit Administration (FTA) Funds.doc

Administrative Procedure #2014-07 Vehicle Procurements.docx

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Architectural and Engineering ProcurementsSpecific guidance related to A & E procurements is detailed in the following documents:

Administrative Procedure #2012-03 Federally Supported Procurements of Architectural and Engineering Services

Administrative Procedure #2012-04 Federal Clauses in FTA funded Purchase Orders for Small Purchases (supersedes 2007-04) (8-10-12).doc

6. Disadvantaged Business Enterprise

(p) 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.

Transit contracts and procurement solicitation incorporate DBE special provisions to assist potential contractors in fulfilling their responsibilities.

Subrecipients must report as required on DBE goal achievement.

7. Asset Management MnDOT Office of Transit has an approved State Management Plan for the Section 5339 Bus and Bus Facilities Formula Program. Attached to the aforementioned plan is the Office of Transit Asset Management Plan which describes the requirements for subrecipients and how conformance to the requirements is monitored.

The Office of Transit Asset Management Plan includes the following information: Asset inventory

o Rolling stocko Facilitieso Equipment with a replacement value of $5,000 or more

Condition rating and remaining useful life Minimum useful life standards Life cycle and replacement costs Service standards Risk assessment Operations and maintenance expenditure Optimizing capital investments Replacement funding strategy Documentation

The 2016 Greater Minnesota Transit Investment Plan will include a section on asset management.

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8. Charter Bus (q)

The annual Federal Certifications and Assurances for Federal Transit Administration Assistance signed by all subrecipients contains the Charter certification. Sub-recipients receive periodic updates on the charter regulation and exceptions. Subrecipients are trained on how to use the FTA charter registration website. 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.

9. School Bus (u)

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 require the subrecipient to verify that they are not providing school bus service with each annual grant contract.

Students choosing to use public transit to travel to or from school access service that is also open to all members of the general public.

10. Americans with Disabilities Act (r)

There are two aspects to the Americans with Disabilities Act relative to the Greater Minnesota Public Transit Program. The first area is how the State, or MnDOT Office of Transit, complies with the requirements of the ADA and the second is how subrecipients comply.

Accessibility and MnDOTThe Minnesota Department of Transportation ADA and Accessibility Program Office carries out the accessibility program including design and construction, as well as receiving input or complaints from the public regarding accessibility issues. Their webpage contains detailed information on the agency’s plan, as well as how to file a complaint,

Subrecipient ResponsibilitiesSubrecipients are required to be fully ADA compliant in their facilities, vehicles, and communications. The annual Federal Certifications and Assurances for Federal Transit Administration Assistance signed by all subrecipients contains the ADA certification.

Subrecipients’ Annual Management Plans describe the Service Levels provided by the public transit service. The Service Level Plan identifies each vehicle, 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.

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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. Compliance is reviewed annually by the district Transit Project Manager.

Subrecipients obtain vehicles through the Minnesota Cooperative Procurement program. All vehicles are specified with ADA accessibility features. The state does not encourage the acquisition of vehicles outside the program. The state will not grant either federal or state funds if a subrecipient chooses to acquire a non-accessible vehicle. Intercity buses travelling on Section 5311 routes are accessible

Transit facility construction, regardless of funding source, is closely monitored to ensure full compliance with all relevant aspects of the Americans with Disabilities Act. The Facility Maintenance Checklist addresses accessibility features.

Complementary Paratransit is not required in the rural public transit program. There are no rural transit operators providing fixed route services, thus there is no requirement for stop announcements and priority seating. All vehicles deployed in the Greater Minnesota Rural Public Transit Program are accessible to persons with disabilities. Other requirements such as those related to wheeled mobility devices (WhMDs), lift deployment, portable oxygen, and service animals are addressed at the annual Spring Workshops. In addition, Office of Transit and MnDOT ADA Program office are available to provide technical assistance to individual transit systems upon request.

The MnDOT RTAP program offers training throughout the year in Passenger Assistance and Defensive Driving. A Minnesota-specific class entitled Maltreatment Awareness is also offered. MnDOT RTAP also offers a train-the-trainer program so that transit operators can have certified instructors within their transit programs. Certification of trainers is done through the MnDOT Office of Freight and Commercial Vehicle Operations.

Deviated routes in Greater Minnesota rural public transit programs operate in two ways. Long distance routes from small towns to a larger regional trade center run on a specific weekly frequency. The bus deviates from the main corridor to pick up passengers in smaller towns that are within a defined distance from the route. There are also deviated routes in municipalities. The bus will deviate off the route within a defined distance. The policy on the distance of deviations is a local decision. Both types of deviations require calling ahead to schedule the pickup. Deviations are available to all members of the public regardless of ability.

University and college services may be provided during the academic year as part of a transit systems’ general public service. All vehicles used in university and college service are accessible to students with disabilities.

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Compliance with the Americans with Disabilities Act requirements is monitored by District Transit Project Managers and noted on the Annual Checklist. It is further reviewed on an exception basis as the need arises.

11. Title VI (p)

The MnDOT Office of Transit Title VI program was submitted to the FTA in April 2015. There are no changes to the program since that time. The MnDOT Office of Transit Title VI program was prepared in accordance with FTA Circular 4702.1B and addresses: Notice to the Public Title VI Complaint Form and Procedure for Submitting a Complaint Title VI Complaints, Investigations and Lawsuits Public Participation Plan Language Assistance Plan Transit-related Advisory Committees Endorsement by the Minnesota Commissioner on Transportation

The Office of Transit analyzes the overall allocation of benefits and burdens of public transit investments by annually creating a table showing the amount of public funds invested in subrecipient transit operations relative to the low income and minority populations within the service area. The resulting table is used as one decision point for investments in the next year’s grant cycle.

Subrecipient ResponsibilitiesSubrecipients are required to resubmit their Title VI program annually with their Management Plan Application. Each of the following elements is uploaded to the database: Title VI Notice to Beneficiaries: 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: 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: Subrecipients submit a report of investigations/complaints/lawsuits annually with their Annual Plan Application. 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: Subrecipients are required to submit public outreach plans with the Annual Management Plan application. Most 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

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receive input regarding public transit plans. Public Outreach Plans are reviewed periodically to ensure adequate inclusivity.

Limited English Proficiency: 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. These factors include:

o The number or proportion of limited English proficiency persons in the service area who are likely to be served by the transit system;

o The frequency with which the LEP persons come into contact with the transit system;

o The nature and importance of the service provided to the LEP persons, and

o The resources available to the transit system and the cost to provide language assistance.

The Language Assistance Plan then describes the measures it currently uses or might use to address the needs of the LEP persons. Staff training is an integral part of a successful Language Assistance Plan. Finally, the Plan describes how notice to LEP persons about available language assistance is publicized. Language Assistance Plans are reviewed for accuracy and submitted by recipients with the Annual Management Plan application. Plans are reviewed periodically to ensure adequacy.

Minority Representation on Planning and Advisory Bodies: Transit subrecipients are required to submit a table showing the minority representation on planning and advisory bodies with the Annual Management Plan application.

Office of Transit Administrative Procedure #2013-15 Title VI Program Compliance Monitoring describes how compliance monitoring of subrecipients’ Title VI obligations is monitored.

Subrecipients receive training at the annual application workshop on the elements of a compliant Title VI program. A sample training program is attached.

12. Equal Employment Opportunity (p)

Subrecipients who meet the criteria for a required EEO Plan submit their plans to the Minnesota Department of Human Rights who reviews the plans for appropriate EEO Officer designation, utilization and analysis goals, and statistical information. Subrecipients submit copies of their programs upon renewal of their certificates which are stored electronically with program files.

13. Drug Free Workplace Act and Drug and Alcohol Programs (u)

Minnesota Drug Free WorkplaceThe State of Minnesota’s cognizant agency for administering drug and alcohol programs is Minnesota Management and Budget. The state policy is updated periodically. MnDOT endorses the state policy and issued additional supplementary guidance relative to operating motor vehicles that are part of MnDOT’s fleet.

Further, MnDOT maintains and intranet website that clearly describes the testing procedures and the consequences of a positive test. Training regarding the

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negative impacts on performance, safety and morale are delivered through an online interactive program.

Drug and Alcohol Program OversightSubrecipients are monitored in accordance with MnDOT Office of Transit Administrative Procedure #2013-04 Drug and Alcohol Testing Compliance Monitoring. The procedure outlines, in detail, how the Office of Transit monitors the subrecipient’s compliance with all applicable Drug and Alcohol Program regulations and reporting. It also provides information about technical assistance with regulatory compliance, best practices, and available Drug and Alcohol Program Management resources.

The Federal Program Manager and the Federal Program Assistant perform periodic on-site technical reviews with the subrecipients and their contracted service vendors. Timely follow-up for all issues that may be determined to jeopardize compliance is monitored within 40-90 days after the completion of the on-site review. Desk reviews are conducted two years after the completion of the on-site review follow-up to ensure on-going compliance with all issues.

MnDOT Office of Transit maintains a website to provide Drug and Alcohol Program Resources to subrecipients that includes pertinent information about reporting, service vendor oversight, best practices, and links to web-based drug and alcohol management information and resources. Annual MIS reports are reviewed and completed by March 15.

14. Other Provisions

Productivity, Cost Effectiveness and Service StandardsVarious service types, i.e., demand-response and deviated routes in small urban and rural areas have different passenger per hour guidelines. In addition, there are cost per hour, cost per passenger trip and revenue recovery guidelines. MnDOT develops the guidelines through an examination of peer grouped systems.

Transit subrecipients are examined periodically to determine how well and how consistently the suggested guidelines are met. Underperforming transit subrecipients are advised on corrective action and monitored accordingly.

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 ReviewsMnDOT Office of Transit Administrative Procedure #2010-08 Buy America Requirements for Direct Vehicle Procurements Supported with Federal Transit

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Administration Funds describes the detailed steps that must be undertaken when a subrecipient does not use the State Cooperative Purchasing Venture. 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 Administrative Procedure #2013-01 Technical Assistance to Sub-recipients for Procurements Supported with Federal Transportation Administration (FTA) Funds outlines the steps taken when the State Cooperative Purchasing Venture is used for procuring vehicles on behalf of subrecipients.

L obbying MnDOT does not fund lobbying activities with Federal funds.

Safety and SecurityMnDOT Office of Transit is planning to develop a Safety and Security program that will conform with the new regulations proposed in 49 CFR 5329.

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