1. Minnesota Intercity Bus Program Industry Consultation
What type of project available? Don’t lay out what is not.
How much funds are available?
Schedule
Match requirements
2 year contracts – changes
Megan Neeck| Transit Program Coordinator
Office of Transit & Active Transportation
July 9, 2019
mndot.gov

2. Agenda 10:30 a.m. to 12:30 p.m. Introductions Program overview
Intercity bus program policy
Discussion of Unmet needs
Upcoming application/solicitation opportunity
Q & A
A quick run through the afternoons agenda – I am hoping to get through all of the information in about an hour.
Chuck Morris will jump in at the end to go through an orientation to the Panther/Blackcat application process.
For the most part the Information presented today should be quite similar to last years consultation.
This powerpoint will be posted on the ICB website after this webinar along with the recording.

3. Introductions Megan introduce herself
ICB Program Coordinator (2 months) – I manage all program admin and project management responsibilities.
Give an opportunity for folks on the line to say hello and say a few words

4. Intercity Bus programs at a glance
The 5311 (f) program provides funding assistance to support long distance transit service within and amongst states.
Operations
Capital
While intercity bus transportation serves only a small fraction of long-distance travel demand throughout the Midwest, it provides an essential mobility link for many citizens who cannot or choose not to drive a private automobile.
The Intercity Bus Program seeks to enhance the connection between rural areas and the larger regional or national system of intercity bus service;
Provide services that meet the intercity travel needs of residents in rural areas; and
Develop the infrastructure of the intercity bus network through planning and capital investments.
MN has funded 10 or 11 routes for at least the past 5-10 years to complement private unsubsidized service operating in the state

5. As it is translated, this means ICB:
ICB is targeted to support mobility from small towns and rural areas by
In Minnesota
Connecting these places with the larger regional and national system of intercity transportation service;
Investing in the development of infrastructure crucial to a robust bus transportation network through planning, and capital investments.
Nationally
FTA has 3 Objectives for Funding the ICB program
The connection between nonurbanized areas and the larger regional or national system of intercity bus service.
The infrastructure of the intercity bus network through planning and capital investment in facilities.
Services that meet the intercity travel needs of residents in nonurbanized areas.
FTA encourages states to use the funding under Section 5311(f) to support these national objectives as well as priorities determined by the state.
When the Federal funding appropriation exceeds the “need” for transit in individual states, program funds may be certified by a state’s governor for use in other rural transit programs.
Ask if anyone has questions about certifying ICB funds.

6. What does Intercity bus look like?
When people think of intercity bus, usually the large, commercial providers come to mind: Greyhound, Megabus, Jefferson Lines, etc.
Intercity bus operations is not limited to full-size motorcoaches running across the country. In fact, the Intercity bus network seeks smaller public and private operators to provide shorter haul feeder operations that will supplement the trunk lines running between major regional centers.

7. Intercity bus
This program defines “intercity bus” as service that meets all of the following criteria:
Regularly scheduled bus service
Open to the general public
Operates with limited stops over fixed routes
Connects two or more communities not in close proximity
Has the capacity for transporting baggage carried by passengers
Makes meaningful connections with scheduled intercity bus service to more distant points, if such service is available

8. Eligible Participants
Private intercity bus companies
Companies wishing to start intercity bus service
Public transit agencies either operating or proposing to operate intercity bus services
Local communities wishing to support intercity bus connections to their community.

9. Intercity Bus Program Policy
Purpose:
To support public transportation in rural areas
To ensure compliance with the Minnesota State Management Plan (Section 5311).
To clarify management procedures that apply uniquely to intercity bus service. *
Subrecipients must understand and follow applicable Federal, State, and Local requirements with support of staff in the Office of Transit.
The Intercity bus program policy appears at:
There are a number of Eligible Activities – that all rely upon supporting service to distant rural and small urban areas under Section 5311(f), including:
Section 5311(f) specifies eligible intercity bus activities to include
“planning for intercity bus transportation,
capital grants for intercity bus shelters,
joint-use stops and depots,
operating grants through purchase-of-service agreements,
user-side subsidies and demonstration projects,
and coordination of rural connections between small transit operations and intercity bus carriers.”
Note: This list of eligible activities does not preclude other capital and operating projects provided they can be shown to support rural intercity bus service.

10. Policy Implications: Fund Match
In-Kind Match provisions
Beginning in 2018, 15% local share will be required even with state matching funds.
In-Kind matching routes not limited to State boundaries.
FTA allows States to utilize Section 5311(f) funding for operating, capital, and planning activities that support intercity bus service to non-urbanized communities.
FTA Circular G, Chapter VIII(8)
FTA allows a Federal share of up to 50 percent of the net operating deficit of eligible intercity bus services. Matching funds can be provided in one of the following two ways:
1. Direct (local) match
Under a direct-match arrangement, the remaining 50 percent of net operating deficit (the portion not subsidized by Federal funds) must be provided by the
subrecipient as local match, or by some other non-Federal funding source, whether public or private. The MnDOT OTAT may also consider adding State
transit assistance funding to reimburse program subrecipients provided a 15% local share is met. Local Share may come from a combination of revenue and Cash-out-of-pocket contributions. (In the past, a 50/50 funding arrangement existed but MNDOT has opted not to continue that practice to remain consistent with FTA program guidance).
2. In-kind match – what match provisions are allowed?? I did not see any In-Kind Matches in the current contracts, if I am incorrect, please let me know.
The In Kind Match opportunity leverages private investment in one route that operates without subsidy, to account for losses on a subsidized connecting route.
Please connect with me if you are thinking of doing the In-Kind Match Provisions
Deficit includes both the operating loss on the subsidized route (A to B) and the capital cost of the unsubsidized connecting route (B to C).
The following requirements apply to the use of in-kind match:
 The unsubsidized connecting route must meet the definition of “intercity bus”, as specified in this brief.
 A meaningful connection, as defined in this brief, must be provided between the subsidized and unsubsidized connecting routes.
 Only those unsubsidized vehicle trips that actually connect with the subsidized service can be used for in-kind match. For example, if the
unsubsidized route operates four vehicle trips from the connecting point daily, but the subsidized service operates only two vehicle trips daily,
only the capital costs of the two daily connecting trips can be used as inkind match.
 The allowable capital cost is calculated using the Capital Cost of Contracting guidance.
 Only privately-funded operations and capital assets are allowed in the calculation of capital cost. Assets provided through subsidy by any public agency must be excluded.

11. Unmet Needs Gaps in Service Insufficient Service Changes/needs?
(does not exist)
Insufficient Service
(inadequate for
market)
Changes/needs?
Ask the question: Are there any changes with needs that are new??
The OTAT evaluates “Unmet Needs” leading to the process of obtaining the Governor’s certification (when necessary) that all intercity transit needs in the state have been met.
The map pictured on the slide shows the extent of subsidized service as of 2014.
Here are a few of the routes we heard of in the past:
In 2016, we heard there may have been some interest in providing service to Wadena in Becker County via a feeder serving the White Earth Reservation, Brown County talked about a connection to Mankato, and the Go Rochester Direct shuttle service proposed several runs per day between Rochester and Twin Cities. Those routes have yet to materialize.
In 2017, Jefferson Lines was awarded funding to operate new service on the 169 Corridor between Mankato and Minneapolis. To my understanding , this service has begun. MNDOT will continue to work with Jefferson to support this expansion service.
Besides some interest in a connection from St Cloud to St John/St Benedicts, I am not currently aware of any other new proposals. I am interested if any industry players are considering routes.
Questions/Comments about Unmet Needs??

12. Application/Solicitation Opportunity
Application/Solicitation Opportunity

13. Application Opportunity
Basic information about solicitation
Solicitation period: July 15 – August 30, 2019
2 year contracts
Applicants will use BlackCat, MnDOT’s web-based grant administration system
Eligible Projects:
Operating (50-100% Federal / State share
Each year, grant applications received in the summer will apply for funding for following calendar year.
How much funding will be available for CY 2020?
The overall ICB program budget will approach $6 Million in Minnesota.
ICB funding will be provided for based on a blend of state and federal funds that will be determined after the solicitation.
Public (State/Federal Funds) are leveraged by system revenues and the local share contributed by MNDOT subrecipients and partners.
As with last year, a separate application for marketing will not be required. Applicants seeking support for ICB marketing expenses may continue to claim these as operating expenses.

14. Federal 5311 (f) Appropriation
Subsection (f) of Section 5311 requires each state to spend
15% of its annual 5311 apportionment.
Statewide Available 5311 (f) Funds:
2017: $745,000
2018: $2,469,000
2019: $2,687,000
FTA Apportionments page:

15. Program Management Process
Reporting is monthly with Payments on a QUARTERLY basis consistent with 5311 Rural Public Transit
State Payments: January, April, July & October – this is an automatic payment
Federal Payments: March, June, September & December – payment made after 3 months of reports are ALL approved.
Contracts will be on a 2 year basis
Blackcat Grants (Web) to enter application information, manage projects, extend funds.
Performance Evaluation for ICB program are being updated: more to come.

16. Deadline for submission
Calendar
Date
Phase of program
July 9
Consultation and Workshop
July 15
Release of solicitation
August 30
Deadline for submission
Beginning of Sept*
Review and selection
Sept 16*
Award Announcement
Mid-October*
Contracts prepared/released
January 1, 2018
Grant contracts effective
If you are interested in making an application, it is important that you obtain access to Blackcat grants ASAP
* Denotes Tentative Dates

17. Application Opportunity
Basic information about solicitation
A user account is required to make an application in Blackcat, MnDOT’s transit grant management system
If you are interested in making an application, it is important that you obtain access to Blackcat grants ASAP. To do so send a request to soon as possible.
Chuck will jump in and ask some questions.

18. Questions?

19. Next Steps? Comments accepted anytime – contact me!
This presentation will be uploaded to the OT website and placed in Blackcat grants by the opening of the solicitation on July 15 (next week).
For additional information about the program:
Intercity Bus Program Coordinator

20. Thank you again! Megan Neeck Megan.neeck@state.mn.us 651-366-4174
10/14/2019
mndot.gov