State Aid 101

About us State Aid for Local Transportation (SALT) was established in 1957 The purpose of the state aid program is to provide resources, from the Highway Users Tax Distribution Fund (HUTDF), to assist local governments with the construction and maintenance of community-interest highways and streets on the state aid system. The goals of the state aid program are to provide users of secondary highways and streets with: Safe highways and streets Adequate mobility and structural capacity on highways and streets An integrated transportation network

State Aid’s organization State Aid (Central Office) Administration Project Delivery: Federal, State Aid, State Aid Programs, Emergency Relief, Safe Routes to School, and Traffic Safety County Needs Municipal Needs Information Resources District Engineers District State Aid Engineers (DSAE) District State Aid Assistant (DSAA) State Aid (Central Office) - http://www.dot.state.mn.us/stateaid/index.html District Engineers - http://www.dot.state.mn.us/stateaid/dsae.html

Role of State Aid (Central Office) Administer the distribution of funding Distribute funds for highway maintenance and construction to counties, cities, and townships Provide technical assistance Highway and bridge design Construction and maintenance Authorize funds for bridge construction Coordinate locally funded projects Provide overall management of the state aid system Consistency of rules interpretation Equitable division of funding

Role of District Engineers Each district has one District State Aid Engineer (DSAE) and at least one District State Aid Assistant (DSAA) Liaison to local agencies State Aid responsibilities Needs review Plan approval/processing Construction review/approval Assist in local issues as needed

State Aid partners State Aid partners State Aid Bridge State Aid Finance State Aid Bridge – http://www.dot.state.mn.us/stateaid/bridge/index.html State Aid Finance - http://www.dot.state.mn.us/safinance/

State Aid Bridge Process state and/or federally funded local bridges and structures Ensure compliance with current MnDOT Bridge Office specifications and policies, AASHTO specifications and the State Building Code. Vehicular bridges and tunnels Pedestrian bridges, tunnels, and boardwalks Culverts Retaining walls Bridge rehabilitation and repair projects Parking ramps Other related structures

State Aid Bridge (continued) Local bridge technical assistance Design Load Rating and permitting Hydraulics Construction Local bridge research and implementation projects Serves as the Technical Liaison or Technical Advisory Committee Member Local Road Research Board National Cooperative Highway Research Program Transportation Pooled Fund Program Local Road Research Board (LRRB) National Cooperative Highway Research Program (NCHRP) Transportation Pooled Fund (TPF)

State Aid Bridge (continued) Local bridge information resource Annual Local Bridge Cost Reporting Annual State Aid Bridge News Reporting Liaison with MnDOT Bridge Office Presentations and updates at District State Aid Meetings Local agency training

State Aid Finance State Aid Finance provides accounting and financial support to Minnesota’s cities and counties. Accountant training through on-site visits Provide financial support and training for engineers through on-site visits Federal Aid and State Aid payments Commissioner’s Order for HUTDF apportionment Bridge bond and other grant requisitions and encumbrances Answer finance questions State Aid Finance works with the State Aid Office, District State Aid Engineers, Federal Highway Administration, Legislative Audit, and city and county engineers and accountants.

State Aid Finance (continued) Provide technical assistance: Advances Local Agency Bonds State Aid Payment Requests Agency Agreements and Payment Requests CSAH Regular and Municipal Construction Funds State Transportation Funds Town Bridge and Special Town Bridge State Park Road Account Federal Fund Exchanges Turnbacks FHWA Form Disaster and emergency relief Roles and responsibilities - http://www.dot.state.mn.us/safinance/contact/saf-roles-responsibilities-external.pdf View a full chart of the roles and responsibilities by employee.

Professional and technical resources Construction Pavement Traffic Safety

Construction State Aid provides online resources in four areas of construction Pay item forms Testing forms Contract administration forms Information and resources Professional and technical construction contacts State Aid Construction Specialists/Engineers: Districts 1-4, Districts 6-8 and Metro District District Materials and Road Research Specialist/Engineers Pay item forms - http://www.dot.state.mn.us/stateaid/construction.html#pay Testing forms - http://www.dot.state.mn.us/stateaid/construction.html#testing Contract administration forms - http://www.dot.state.mn.us/stateaid/construction.html#contract Information and resources - http://www.dot.state.mn.us/stateaid/construction.html#info construction contacts - http://www.dot.state.mn.us/stateaid/construction.html

Pavement State Aid provides online resources on three areas of pavement Pavement Design Pavement Preservation Pavement Management Professional and technical pavement contacts State Aid Pavement Engineer Other pavement resource engineers Pavement Design - http://www.dot.state.mn.us/stateaid/pavement.html#design Pavement Preservation - http://www.dot.state.mn.us/stateaid/pavement.html#preservation Pavement Management - http://www.dot.state.mn.us/stateaid/pavement.html#management State Aid Pavement Engineer - http://www.dot.state.mn.us/stateaid/pavement.html#contacts

Traffic Safety State Aid provides services and resources for several areas of traffic safety Highway Safety Improvement Program County Road Safety Plans Sign retroreflectivity and sign supports Crash data Site reviews Professional and technical traffic safety contacts Program Support Engineer Traffic safety contacts - http://www.dot.state.mn.us/stateaid/staff.html

Tools and applications BridgeInfo3 Interactive map of Minnesota bridges eAdvert Tool for locals to post construction projects for bid Minnesota Crash Mapping Analysis Tool (MnCMAT) Application to help retrieve and analyze crash data Project Mapping Tracking Interactive map of current State Aid projects BridgeInfo3 - http://dotapp9.dot.state.mn.us/bridgeinfo3/ eAdvert - http://www.dot.state.mn.us/stateaid/eadvert.html Minnesota Crash Mapping Analysis Tool (MnCMAT) - http://www.dot.state.mn.us/stateaid/crashmapping.html Project Mapping Tracking - http://www.dot.state.mn.us/stateaid/project-mapping.html

Tools and applications (continued) Project Memo Writer Online documentation creation tool for Project Memos SA NEEDS 3 Application that is used to determine the annual apportionments State Aid Accounting System (SAAS) Generate various financial reports Project Memo Writer - https://dotapp7.dot.state.mn.us/pmwriter/ SA NEEDS 3 - http://dotapp7.dot.state.mn.us/saneeds3/ State Aid Account System (SAAS) - http://www.dot.state.mn.us/safinance/saas.html

State Aid’s role State agencies and federal agencies: State Aid MnDOT PCA DNR FHWA FTA Army Corp of Engineers State Aid Local agencies Counties Cities Townships

Funding 95% of highway user funds are distributed as follows: 62% to the trunk highway fund 29% to county state aid highway fund 9% to the municipal state aid fund The remaining 5% is set aside for these three funds: Town Road Account Town Bridge Account Flexible Highway Account For the most up-to-date funding, see our yearly HUTDF pamphlet. Yearly HUTDF pamphlet - http://www.dot.state.mn.us/stateaid/admin/sa-hutdf.pdf

What’s included in the state aid system? County State Aid Highway (CSAH) 87 counties 8 metro counties and 79 counties in greater Minnesota Municipal State Aid Street (MSAS) 148 cities of population greater than 5,000 84 metro cities and 64 cities in greater Minnesota Town road and bridge Jurisdictional Transfers (Turnbacks)

How is State Aid governed? State Aid is governed by two entities: Screening Boards Rules Committee In addition, the Local Road Research Board (LRRB) governs research conducted with state aid funds. Screening Boards Members are appointed by the Commissioner Includes one engineer from each district, two engineers from metro, and representatives from each county with a population of 175,000 or more Reviews needs of the CSAH system Meet two times per year: June and October Rules Committee Oversees State Aid rules for operations Members are selected by the officers of the Association of Minnesota Counties. Made up of nine members One county member from each District No more than five county commissioners At least four members must be county highway engineers. Rules have the force of law Local Road Research Board (LRRB) Four county and two city engineers who may serve a maximum of two, four-year terms. State Aid Engineer A representative from a MnDOT specialty office Director of Research Services, who is the ex officio secretary and a voting member A University of Minnesota Center for Transportation Studies representative

State Aid operations MN Constitution (Article X) MN Statutes (Chapter 162) MN Rules (Chapter 8820) State Aid Manual (SAM) FHWA Stewardship Plan MN Constitution (Article X) - https://www.revisor.leg.state.mn.us/constitution/#article_10 MN Statutes (Chapter 162) - https://www.revisor.leg.state.mn.us/statutes/?id=162 MN Rules (Chapter 8820) - http://www.dot.state.mn.us/stateaid/programlibrary/stateaidrules.pdf State Aid Manual (SAM) - http://www.dot.state.mn.us/stateaid/manual.html FHWA Stewardship Plan - http://www.dot.state.mn.us/information/fhwa_docs/fhwa_agreement.pdf

Minnesota Rule Chapter 8820 (State Aid Design Standards) Chapter 8820 was established 1957 Revised approximately every 2.5 years Urban vs Rural Reconstruction vs Reconditioning Carry the force of law Variance Administrative Rules of the State of MN. Carry the force of law. There are standards for roadway design included within these Rules. When I use the term Rule or standard within this presentation, they will both refer back to what is in the Blue Book. Chapter 8820 - http://www.dot.state.mn.us/stateaid/programlibrary/stateaidrules.pdf

State Aid Manual The State Aid Manual is your go to document for answers. It should be your first point of reference if you have any questions. It provides instructions for state aid and federal aid projects Gives links to forms and websites related to specific category areas Manual is up-to-date and is updated as changes occur or updates are necessary State Aid Manual - http://www.dot.state.mn.us/stateaid/manual.html

Project involvement State Aid should be involved in the following projects: Projects on the state aid system Locally proposed projects with federal funding Municipal agreement projects involving the State Aid system Trunk Highway projects with state aid system involvement

Project number format SP indicates project with federal funds SAP indicates project without federal funds (state aid and local funds) First number (xxx-xxx-xxx) 1 -87 = county, 100 – 236 + = state aid city, 88-98 = misc. agencies Middle number (xxx-xxx-xxx) If on-system is route number Last number (xxx-xxx-xxx) Last number is sequence number A full breakdown can be found in the project number format document. Project number format - http://www.dot.state.mn.us/stateaid/projectdelivery/sa-project-no-format.pdf

State Aid programs Programs funded with State Transportation Funds also known as General Obligation Bond Funds. Local Bridge Replacement Program Local Road Improvement Program Safe Routes to School Local Bridge Replacement Program - http://www.dot.state.mn.us/stateaid/local-bridge-replacement-program.html Local Road Improvement Program - http://www.dot.state.mn.us/stateaid/lrip.html Safe Routes to School - http://www.dot.state.mn.us/saferoutes/index.html

Local Bridge Replacement Program MnDOT State Aid Office establishes criteria for a bridge to be considered eligible for a grant. The local agency creates a 5-year bridge construction program, which includes all township, local (city and county) and state aid system bridge projects. MnDOT owned bridges are not eligible for local bridge bond funds. Legislature appropriates funds in the program by session law Bond projects require execution of a grant agreement prior to award and request for payment.

Local Road Improvement Program The Local Road Improvement Program provides funding assistance to local agencies for constructing or reconstructing local roads. Three types of accounts established by the Legislature with specific criteria and funding emphasis: Trunk Highway Corridor Account – local roads associated with MnDOT projects Routes of Regional Significance Account– local roads with regional significance Rural Road Safety – reducing crashes and injuries on County State Aid Highways Bond projects require execution of a grant agreement prior to award and request for payment

Safe Routes to School Safe Routes to School is a federal program that was created in 2005 followed by the Legislature creating the State program created in 2014. The program promotes the following: Enable and encourage all children to walk and bicycle to school Make walking and bicycling a more appealing Improve safety and reduce traffic, fuel consumption, and air pollution around schools Eligible use of funds Engineering: predesign, preliminary and final design, environmental analysis Construction: infrastructure projects for walking and bicycling to school

Federal aid Federal projects – Delegated Contract Process (DCP) Require DCP Agreement Process is from cradle to grave Projects follow: DCP Checklist OR Full oversite process (projects of division interest, projects on the NHS, projects funded by other FHWA divisions (FLAP)) PODIs - PS&E must be reviewed & approved by FHWA, FHWA must concur in award and contract changes on PODIs

Federal aid (continued) Federal projects – In the State Transportation Improvement Program (STIP) Must be listed in the STIP Projects selected by ATPs Authorized based on state FY (July 1 – June 30) Federal funds based on federal FY ( October 1 – September 30) STIP typically approved in November every year STIP - http://www.dot.state.mn.us/planning/program/stip.html

Federal aid (continued) Federal Projects – National Environmental Policy Act Any project funded with federal money must undergo a NEPA review - including Design Engineering, Right of Way, Construction, Construction Engineering, as approved by ATP In State Aid we generically refer to these as Project Development Reports (PDR) Examples: Project Memo, Environmental Assessment and Environmental Impact Statement PDR Must match STIP project description as well as the plan December 1st (before) project bid year – deadline for submittal of PDRs to DSAEs

Federal aid (continued) Federal Projects – Plan Format - Chapter 5.4 Plans and Proposals of State Aid Manual EXCEPT Projects requiring approval by MnDOT must adhere to MnDOT Design Guidance Any non-participating items must be grouped. Funding participation guidance can be found under Chapter 5.4 Plans and Proposals, Section VI. - Eligibility April 1st - deadline for Plan Packages to be submitted (PDR must be approved by this date) Plan Package includes: Plan – signed by County Engineer, Designer, DSAE Completed R/W Certificate No. 1 or 1A Completed Utility Certificate – if utility impacts Signed Engineer’s Estimate - matches SEQ in plan Executed RR Agreement if applicable Approved permits (completed NPDES Application if contractor will obtain) State Aid Manual – http://www.dot.state.mn.us/stateaid/manual.html MnDOT Design Guidance - http://www.dot.state.mn.us/pre-letting/scene/index.html

Federal aid (continued) Federal Projects Must have a sponsor (if not a state aid entity) Must be authorized by the FHWA prior to advertising or performing any work Are subject to Davis Bacon Laws Are subject to Buy America Federal funds are REIMBURSABLE – work must be completed and payment made by local agency before the federal dollars are reimbursed

State aid project process Should your project follow the State aid project process? Project funding sources will determine the plan preparation and review requirements. Projects selected for federal aid funds will follow the federal aid DCP process. Projects that have TH funds or significant impact to the TH will follow the Cooperative Agreement process. Projects that only use a city’s or county’s state aid construction funds, with the possible addition of other agency or local funds will follow the state aid project process.

State aid project process (continued) There are a number of helpful State Aid guidance documents. State Aid Operations Chapter 8820 (The Rules) - contains the primary guidance for State Aid projects. State Aid Manual Chapter 5.4 is a good resource for plan preparation Chapter 5.4, Section II. goes over basic plan requirements Metro District State Aid has prepared a Design Guide for State Aid Projects. State Aid Operations Chapter 8820 – http://www.dot.state.mn.us/stateaid/programlibrary/stateaidrules.pdf State Aid Manual - http://www.dot.state.mn.us/stateaid/manual.html Design Guide for State Aid Projects - http://www.dot.state.mn.us/metro/stateaid/ftp/sades.pdf

State aid project process (continued) Submit your plans and other documents for review. Plans and other required documents are submitted to the State Aid district office. Submit a completed State Aid Checklist appropriate for your plan type/project components. Plan review comments are returned to the local agency/designer. We welcome questions/comments on redline comments if you don’t agree with them. Redline comments are meant to open a dialogue with our partners to discover if there are circumstances involved of which we have no knowledge, or if we are not fully understanding a designer’s intent.

State aid project process (continued) BEWARE DO NOT open bids until State Aid has approved your plan State Aid Operations Chapter 8820.2800 Subpart 2.A. says: “Only those projects for which final plans are approved by the state aid engineer before opening bids are eligible for state aid construction funds.”

State aid project process (continued) Sometimes the “right” design does not meet State Aid Rules. If so, there is a Variance process. If you need to seek a Variance Variances are addressed in 8820.330. Variances are also addressed on the State Aid Variance webpage and State Aid Manual. Check in with your DSAE early. There may be alternative solutions other than a Variance. The Variance Committee meets quarterly. Review your need for a Variance early in your project. 8820.330 - http://www.dot.state.mn.us/stateaid/programlibrary/stateaidrules.pdf State Aid Variance webpage - http://www.dot.state.mn.us/stateaid/variance.html State Aid Manual - http://www.dot.state.mn.us/stateaid/manual.html

County Needs – state aid system The County State Aid Highway (CSAH) system is a network of key routes under the jurisdiction of Minnesota’s counties (Minnesota Statues 162.02). CSAH system covers just over 30,700 miles (2/3) of county roads. The system was established in 1957 and has remained relatively constant. There are established criteria for eligible routes. Minnesota Statutes 162.02 - https://www.revisor.mn.gov/statutes/?id=162.02

County Needs – funding overview County state aid funds are collected by the state according to the constitution and law, distributed from the Highway Users Tax Distribution Funds (HUTDF). The county share of the HUDTF is 29% of the regular 95%. The County State Aid Highway Needs Unit collects and maintains data to calculate the annual distribution to the counties to maintain, improve and construct their designated county state aid highways.

County Needs – Money Needs “Needs” is the estimated total annual cost of constructing, over a period of 25 years, the CSAH system to standards in a county (Minnesota Statutes 162.07, Subd. 2). Annually, we collect information from counties to calculate their 25-year needs. Changes to the system due to system revisions (and corresponding Commissioner’s Orders), construction, or turnbacks. Project costs for construction and right of way Attributes to their roads, bridges, culverts, and railroad crossing Every October the County Screening Board submits its findings and recommendations in writing as to each county's lane-mileage and Money Needs. Minnesota Statutes 162.07, Subd. 2 - https://www.revisor.mn.gov/statutes/?id=162.07

County Needs – Screening Board The County Screening Board is made up of county representatives from the eight MnDOT districts and six urban counties. Two county engineers from the metro district One county engineer from each outstate districts One additional county engineer from each county with a population of 175,000 or more

County Needs - accounts After each county's total allocation is determined their money is further divided into regular and municipal accounts. Regular is based on all mileage outside the corporate limits of cities under 5,000 population which includes the miles inside corporate limits of cities over 5,000 population. Municipal is based on mileage inside the corporate limits of non-state aid cities (under 5000 pop.). The regular and municipal accounts are further divided into construction and maintenance Construction is 60% of the account and must have an approved plan or agreement Maintenance is 40% of the account and does not require a plan. Counties must report their expenses to the State Aid office annually

Municipal Needs – state aid system Eligible cities can designate up to 20% of their roadway system for the Municipal State Aid Street (MSAS) system (Minnesota Statutes 162.09). The total miles of city streets and county roads within the city’s jurisdiction (and on corporate limits) will be included in the basic street mileage. Trunk Highway/County Road /CSAH Turnback miles are also allowed on the MSAS system - in addition to a city’s statutory 20%. Minnesota Statutes 162.09 - https://www.revisor.mn.gov/statutes/?id=162.09

Municipal Needs – funding overview Municipalities share of the HUTDF is 9% (of 95%). The Commissioner annually sends a statement for the amount to be apportioned to each city’s MSAS fund. To qualify for a share, a city has to have at least 5,000 in population. 50% of the total apportionment is distributed on prorated share of each city’s population 50% of the total apportionment is based on a prorated share of each city’s Construction Needs (or Money Needs)

Municipal Needs – Money Needs What are the Money Needs for a State Aid city? For each city, this is defined as the estimated cost of constructing and maintaining the MSAS System for a period of 25 years (Minnesota Statutes 162.13, Subd. 2). Every year, State Aid cities update and forward their Money Needs information to the Commissioner via the MSAS Unit. State Aid then prepares the MSAS fund in accordance with the apportionment formula that has been set forth by the Municipal Screening Board. Minnesota Statutes 162.013, Subd. 2 - https://www.revisor.mn.gov/statutes/?id=162.13

Municipal Needs – Screening Board The Municipal Screening Board is composed of one engineer from each of the nine state highway construction districts, plus one engineer from each city of the first class. Each year, the Board reviews the Needs information for each city. By November 1st of each year, the Board submits a letter with their recommendations for each city’s Money Needs to the Commissioner. The final determination of each city’s money Needs is made by the Commissioner.

Municipal Needs – Needs Unit Annual Certification of Mileage MSAS System Revisions Needs Updates / Reviews Unit Cost Study Traffic Updates Construction / Maintenance Accounts Annual Reports (three) See WIG 2.0 Training Document for more details

Questions? Contact your DSAE.