State Aid Programs

Introduction and outline Programs funded with State Transportation Funds also known as General Obligation (GO) Bond Funds Local Bridge Replacement Program Local Road Improvement Program Safe Routes to School

Local Bridge Replacement Program

Program overview The Local Bridge Replacement Program (LBRP) was created in 1976 under Minnesota Statutes 174.50. The program is administered by the MnDOT State Aid for Local Transportation Division. The Local Bridge Replacement Program provides local agencies transportation funding for the reconstruction, rehabilitation or removal of bridges or structures on their local road system. Minnesota Statutes 174.52 - https://www.revisor.mn.gov/statutes/?id=174.52

Types of funding Funding used for bridge replacement and rehabilitation is dependant on the jurisdiction and may include one or a combination of the following: Federal State aid State Transportation Funds (General Obligation Bonds) Town Bridge Account Local

Subprograms Three subprograms under the Local Bridge Program Federal Aid Bridge Replacement Program (MN STIP) State Transportation Fund (Bridge Bonds) Town Bridge Program (includes Special Town Bridge) Chapter 4 of the State Aid Manual provides information for each type or source of bridge funds, the unique criteria in how and when the funds become available, and how they may be spent. State Aid Manual - http://www.dot.state.mn.us/stateaid/manual.html

Local Bridge Replacement Program State Aid administers the program and establishes the criteria for a bridge to be considered eligible for a bond grant, federal, or town bridge funding. The program administrator maintains a Master Bridge Priority List, which is a compilation of all eligible local bridge projects identified by local bridge owners as priority for replacement or rehabilitation. The local agencies prioritize eligible bridge projects and pass a resolution identifying bridge anticipated for replacement over a 5-year construction program. Resolution includes all township, local (city and county) and state aid system bridge projects. MnDOT owned bridges are not eligible for LBRP funding.

Master Bridge Replacement Priority List Applying for funding requires bridge owner to formally prioritize bridges for replacement by county board or city council resolution and submit to the State Aid Program Administer. All resolutions are combined to develop the data for the Master Bridge Replacement Priority List. Updated annually by county and city Used for budget requests and legislative hearings to demonstrate support for local bridge bond funding Estimates cost and desired year for replacement Master Bridge Replacement Priority List - http://www.dot.state.mn.us/stateaid/local-bridge-replacement-program.html

State Transportation Funds (bridge bond) State Transportation Bond Funds amounts are appropriated by the legislature through the passage of session law/bonding bill. Session laws dictate the amount of funding provided and may include specific language regarding how funds are distributed. Bridge bond funds are not considered State Aid funds and must be applied for on a project by project basis. Minnesota Rules Chapter 8810 and specific session laws govern what is an eligible use of the State Transportation Funds (bridge bonds).

Bridge bond funds Eligibility criteria include: Located on local road and owned by a city, county or township, and Be at least 10 feet long, have a sufficiency rating of 80 or less, and be structurally deficient or functionally obsolete, hydraulically deficient Build a road-in-lieu of a bridge - limited to the structure replacement cost Cost to abandon or remove a structure

Bridge bond funds CSAH/MSAS - eligible costs are funded 50 percent state aid and 50 percent bridge bonds. Local bridges off the state aid system - eligible costs are funded 100 percent bridge bonds. Cities less than 5,000 population are eligible for all 100 percent of the costs in excess of $10,000 for both engineering and construction.

Federal bridge funds Approximately 25 percent of Minnesota’s federal funding is authorized on local road and bridge projects. Selection for federal bridge projects occurs annually and programed in the fourth year of the State Transportation Improvement Program (STIP) cycle. Selection criteria and eligibility is established by the Area Transportation Partnerships for Bridge Replacement (BR) and by State Aid Program Administrator for Bridge Off-System (BROS). Projects must be in the current Minnesota STIP. Bridge Replacement (BR) are projects selected through the Area Transportation Partnership (ATP). Each district establishes criteria and timelines resulting in projects added into the STIP annually. Bridge Off-System (BROS) are projects selected in January by State Aid staff with consultation of the bridge owners. Approximately $6 million of federal funds is allocated for BROS projects statewide resulting in projects added into the STIP annually.

Federal bridge funds To be eligible, the bridge must: Have a clear span of at least 20 feet Be structurally deficient or functionally obsolete Have a sufficiency rating of less than 50 Major bridges and bridges on regionally important routes often rank highly for federal funds. Local agencies should apply for federal funds on these types of bridges. This will leave the state funds available for those projects that will not be selected by the ATPs.

State aid funds State aid funds can be used for bridge replacement or rehabilitation if the bridge is located on a County State Aid Highway (CSAH) or Municipal State Aid System (MSAS) roadway. All bridges on the county and city state aid system collect “State Aid Needs” on bridge structures as part of the annual distribution of state aid funding.

Town bridge funds Located on township road and owned by the township. Townships must coordinate bridge replacements with the county engineer. County engineer assists townships prioritize replacements based on structural or functional condition, local priority, and availability of Town Bridge Funds or other state funds. Township bridges are identified on the counties bridge priority resolution for inclusion on the Master Bridge Replacement Priority List.

Town bridge funds To be eligible for Town Bridge Funds, the bridge must: Be at least 10 feet long, with sufficiency rating of 80 or less, and replaced with another bridge Be hydraulically deficient Road-in-lieu of bridge can be constructed Bridge may be removed/abandoned

Town bridge funds Costs covered by town bridge funds: 100 percent of bridge structure or culvert costs Approach grading and bridge removal costs over $10,000 Engineering costs over $10,000 or 100 percent of engineering costs if your net tax capacity is less than $300,000 100 percent of the costs to abandon a bridge or build a road-in-lieu of a bridge, up to the cost of the replacement bridge

Application process All bridges must be included in local agency’s bridge construction program identified by board resolution and the resolution submitted to State Aid Program Administrator. State Transportation Fund Grant Application must be completed, approved by the District State Aid Engineer (DSAE), and submitted to State Aid Program Adminstrator with attached bridge inventory data sheet and index map.

When bond funds are approved Legislature appropriates funds in the program by session law Funds are awarded on first-come/first-served basis when plans are approved by State Aid Federal bridge projects in STIP are priority to provide match requirements All agencies receive a funding approval letter from State Aid Program Administrator DSAE provides notice to advance the status of the project to advertise and award

After funds are approved Submit low bid documentation to DSAE and State Aid Finance for final funding determination. Bridge bond projects require two original copies of grant agreement, agreement templates and guidance on the LBRP webpage. Federal and state bridge bond funds are reimbursed as work is completed by submittal of state aid pay requests through DSAE. LBRP webpage - http://www.dot.state.mn.us/stateaid/local-bridge-replacement-program.html

Local Road Improvement Program

Program overview The Local Road Improvement Program (LRIP) provides funding assistance to local agencies for constructing or reconstructing local roads. Funds for the program are appropriated based on Minnesota Statutes 174.521. The program was created in 2002 and began with two types of funding, Trunk Highway Corridor Account and Routes of Regional Significance Account. In 2005, the Rural Road Safety Account was added to the program. Minnesota Statutes 174.521 - https://www.revisor.mn.gov/statutes/?id=174.52

Funding types Trunk Highway Corridor – local road projects associated with MnDOT highway improvements. Routes of Regional Significance - constructing or reconstructing city streets, county highways or town roads with statewide or regional significance. Rural Road Safety –projects on CSAHs intended primarily to reduce traffic crashes, deaths, injuries, and property damage.

Trunk Highway Corridors Used as a grant for counties, cities, and township to assist in paying for local roads impacted by a MnDOT trunk highway improvement project. Eligibility is based on the project’s effectiveness in eliminating a system deficiency on the local road. Improvement must benefit the local road.

Routes of Regional Significance Funding is based on: availability of other funds regional significance of the route support by agency board or council and other agencies impacted by the project effectiveness in eliminating a system deficiency number of people impacted contribution to local, regional, or state economic development efforts ability of the local government to safely operate and maintain the road

Routes of Regional Significance Criteria for eligibility under this program: Local road construction, reconstruction or reconditioning project A minor collector or higher (some exceptions) Be ready for bid by a specified date Have a minimum expected life of 10 years Be located on a CSAH, MSAS, county road, city street, or township road and owned by the city, county or township

Rural Road Safety Used as a grant for counties to assist in paying for safety projects on county state aid highways Intended primarily to reduce traffic crashes, deaths, injuries, and property damage Eligibility is based on the project’s ability to reduce the frequency and severity of crashes

Rural Road Safety To be eligible under this program, the project must: Be located on a designated CSAH Reduce or eliminate a safety deficiency that will reduce crashes, deaths, injuries, or property damage Employ a safety strategy identified in Minnesota’s Best Practices and Policies for Safety Strategies on Highways and Local Roads. Be ready for bid by a specified date Minnesota’s Best Practices and Policies for Safety Strategies on Highways and Local Roads - http://www.dot.state.mn.us/stateaid/trafficsafety.html

Application process Project selection occurs when Legislature appropriates funding in the program through the passage of session law: Legislature selects either by identification of a project in the law or can be by legislative or governor intent State Aid administers an open solicitation where local agencies can apply for funding Criteria is established by Advisory Committee Local agency submits applications and letters of support Cities less than 5,000 and townships must have a county sponsor

After project selection All agencies receive notice of project selections from State Aid Program Administrator. All projects are required to follow the state aid process for project/plan approval. Agencies begin the plan development process working with DSAE to request a state aid project number.

When funds are approved Plans are completed and approved by DSAE and notice provided to Program Administrator. All agencies receive a funding approval letter from State Aid Program Administrator. DSAE provides notice to advance the status of the project to advertise and award.

After bond funds are approved Submit low bid documentation to DSAE and State Aid Finance for final bond funding determination. Bond projects require two original copies of grant agreement, agreement templates and guidance on the LRIP webpage. Bond funds are reimbursed as work is completed by submittal of state aid pay requests through DSAE. LRIP webpage - http://www.dot.state.mn.us/stateaid/lrip.html

Safe Routes to School

Program overview Safe Routes to School (SRTS) initially started in Denmark in 1970s to reduce the number of students killed while walking and bicycling to school. Gained international popularity and was picked up in New York in 1997. SRTS interest in the U.S. increased with Congress funded SRTS pilot studies and community grassroots efforts.

Infrastructure federal funding Federal SRTS program Created in the 2005 SAFETEA-LU transportation bill as a stand alone program. 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 In 2012, it changed from being a stand alone program to being eligible under the Transportation Alternatives Program (TA) in MAP-21.

Infrastructure federal funding (continued) Eligible use of funds Sidewalks Traffic calming and speed reduction improvements On-street bicycle facilities Off-street bicycle and pedestrian facilities Secure bicycle parking facilities Traffic diversion improvements

Infrastructure funding distribution TA solicitations coordinated by the Office of Transportation System Management and regional ATP ATP select projects in their region and program them into the STIP County sponsors required for small cities, townships, and schools Statewide TA outcome objectives Promote projects identified through a planning process Support SRTS Serves a transportation purpose Ensure project delivery

Infrastructure project delivery (federal) Once awarded, local agencies follow the State Aid Delegated Contract Process (DCP) process to implement their federal projects. Requires approved environmental documentation, plan and federal authorization.

Infrastructure state funding State SRTS program Created in 2014 under Minnesota Statutes 174.40 for funds to supplement or replace infrastructure projects under the federal program Eligible use of funds Engineering: predesign, preliminary and final design, environmental analysis Construction: infrastructure projects for walking and bicycling to school Minnesota Statutes 174.40 - https://www.revisor.mn.gov/statutes/?id=174.40

Infrastructure state funding (continued) Solicitations are administered by State Aid when funding is appropriated by the Minnesota Legislature Eligibility requirement Adopted subdivision regulations that require SRTS infrastructure in developments County sponsors required for small cities, townships, and schools Project evaluation criteria Improves safety Encourages walking and bicycling Comply with capital improvements of the federal SRTS program Developed through planning or engineering study Supported by the community Project readiness

Infrastructure project delivery (state) Once selected for state funds, local agency follow the state aid bond project process to implement their project Requires a DSAE approved plan and an executed grant agreement

Questions? Patti Loken patti.loken@state.mn.us 651-366-3803