State Transportation Bonds

State Aid Bond Programs LBRP – Local Bridge Replacement Program ◦State Bridge Bond Funds LRIP - Local Road Improvement Program ◦Routes of Regional Significance Bond Funds ◦Rural Road Safety Bond Funds State Emergency Flood and Disaster Program ◦State Flood Bond Funds

State Transportation Bonds State Aid Bond Programs These are not State Aid Funds and must be applied for on a project by project basis. State Transportation Bond Funds are determined by the Legislature. Session Laws dictate the amount of funding provided and sometimes provide specific language regarding how funds are distributed.

State Transportation Bonds Local Bridge Replacement Program SALT – State Aid Local Transportation administers three funding programs for Local Bridge Projects ◦Federal Aid Bridge Replacement Program ◦State Transportation Fund (Bridge Bonds) ◦Town Bridge Program (includes Special Town Bridge)

State Transportation Bonds Local Bridge Replacement Program MnDOT State Aid establishes criteria for a bridge to be considered eligible for a grant. The Local Agency creates a bridge construction program, which includes all Township, Local and State Aid Bridge projects.

State Transportation Bonds Local Bridge Replacement Program Create a Five Year Plan for Bridge Replacement. o Annually reviewed by Local Agency (MS Subd. 1a) County Board passes a resolution – approving the Bridge Program List. County Engineer submits a grant application form to the DSAE for each candidate project.

State Transportation Bonds Local Bridge Replacement Program Approved Bridge Program List is submitted to the DSAE for review, DSAE submits list to SALT Program Engineer. SALT Program Engineer prepares a Master List of Bridge Projects.

State Transportation Bonds Local Bridge Replacement Program SALT uses this list to determine and obtain funding from the Legislature. ◦Planned Year ◦Condition of Bridge ◦Type of Bridge ◦Relative to Other Work ◦Funding Sources

State Transportation Bonds Local Bridge Replacement Program Bridge Projects in the STIP are given priority. Federal Fund Projects must be applied for through the ATP – Area Transportation Partnership for the District and must be included in the STIP – Statewide Transportation Improvement Plan. Selection Criteria is used by the ATP, but each project must also meet FHWA rules for eligibility.

State Transportation Bonds Local Bridge Replacement Program LBRP Bond Funds are determined by the Legislature. Master Bridge Program List is used to help secure funding. ◦State of MN operates on a two year budget cycle, or a biennium. ◦Year One – Bonding Bill is presented and passed. ◦Year Two – There are some laws passed and financial changes, but obtaining bonding funds are less certain.

State Transportation Bonds Local Bridge Replacement Program Reference Materials for the Bridge Program ◦Bridge Grant Agreement Instructions ◦Bridge Grant Agreement Template ◦Bridge Application Form ◦Bridge Eligibility Form These forms can all be found at the following web-site: bridge-replacement-program.html

State Transportation Bonds Local Road Improvement Program In 2002 the Legislature created LRIP, MN Statute ◦Trunk Highway Corridor Projects Account ◦Local Road Account for Routes of Regional Significance. In 2005 the Legislature added a third account. ◦Rural Road Safety Account

State Transportation Bonds Local Road Improvement Program Routes of Regional Significance ◦Applies to all Local Roads ◦Used as a grant for expenditures to cities, towns and counties. ◦Used for constructing or reconstructing city streets, county highways or town roads with Statewide or Regional Significance.

State Transportation Bonds Local Road Improvement Program SALT Staff advertises when an open solicitation period begins and closes. The LRIP Advisory Committee provides guidance to SALT in the administration of this program.

State Transportation Bonds Local Road Improvement Program The Local Agency applies for funding by submitting a Grant Application during an open solicitation period. Based on established selection criteria for each account projects are selected. Grant Applications and Agreements route through the DSAE and are forwarded to the SALT Program Manager.

State Transportation Bonds Local Road Improvement Program Rural Road Safety Account ◦For projects intended primarily to improve safety. ◦Eligibility is based on the project’s ability to reduce the frequency and severity of crashes. ◦Used as a grant for counties only to assist in paying for projects on a CSAH – County State Aid Highway.

State Transportation Bonds State Emergency Flood/Disaster Program Usually enacted after a Presidential Declaration and then dollar thresholds by agency. ◦Requires Legislative Action Language in the bonding bill identifies specific location/counties where storm and flooding damage occurred and funds can be spent.

State Transportation Bonds State Emergency Flood/Disaster Program Used as supplemental funding to address items not eligible for FEMA, FHWA Emergency Recovery (ER) Funds. Used for capital costs of reconstructing and replacing local roads and bridges damaged or destroyed by the Disaster. ◦Permanent Capital Work Only

State Transportation Bonds State Emergency Flood/Disaster Program Information may flow from the DSAE or more frequently the local agency works with the Legislator. Requires a fund application and grant agreement.

State Transportation Bonds State Bond Programs All Bonding Projects selected will receive a Funding Letter from Patti Loken. ◦Once this is received the project can be let. An Encumbrance Letter will be received from Sandra Martinez and funds will be “allocated” to the project in SAAS (State Aid Accounting System). The county must return a signed Grant Agreement and bond resolution before the funds will be encumbered.

State Transportation Bonds State Bond Programs Funds will not be paid until they are encumbered. Projects funded with FHWA Funds and with matching funds of either LBRP, LRIP, or State Emergency Flood/Disaster Bonds will be set-up as DCP (Delegated Contract Process). Payment Requests will be submitted and Paid through SAAS Reports and the Delegated Contract Process (DCP) Payment Request.

State Transportation Bonds

State Bond Programs LBRP, LRIP, State Emergency Flood/Disaster Bond Funds not tied to a Federal Project are processed on a SAPR- State Aid Payment Request. ◦A 100% Bond Funded Project will only be paid at 95% per State Bond Arbitrage laws 5% of the contract value must be withheld. Bonding Fund expenses must be incurred before they are paid for both Federally and State Funded Projects.

State Transportation Bonds State Bond Programs References Select - State Aid Manual (left side menu) ◦Select – 2011 Manual ◦Chapter 4 contains most of the information Select – Programs (top menu) provides links: ◦LBRP – Local Bridge Replacement Program ◦LRIP – Local Road Improvement Program ◦Flood & Disaster Relief

State Transportation Bonds