m1 DEPARTMENT OF TRANSPORTATION Office of Transit 395 John Ireland Blvd. St. Paul, MN 55155 Date: February 3, 2017 To: Greater Minnesota Public Transit Providers RE: 2017 - 2019 Greater Minnesota Public Transit Service Expansion Program Dear Public Transit Provider, New Grant Program A new special discretionary grant pilot program will be released to encourage public transit service growth, system efficiency, and service effectiveness throughout Greater Minnesota. This pilot program is above and beyond your existing 2017 contracts. No Local Match -100% State Funds for up to Two Years This pilot program offers 100% state funding for new .public transit service beyond what is already approved for 2017. Local matching funds are not required for this special discretionary grant program, except for operating revenue generated from the new service, for up to two years. The 100% funding will end by July 2019. Minnesota Statutes 174.24, subd. 3b (e) allows the Commissioner ofTransportation to reduce the loca l match requirement for up to two years. Local matching funds will be required after July 2019 (Minnesota statutes 174.24, subd. 3b (c) for operations and Minnesota rules 8835 .0350, subp. 3 for capital) for future state funding. Capital project contracts will be 100% state funds (Greater Minnesota Transit Account) while operating contracts will be 100% state funds less operating revenues. Why are we doing this? This new special discretionary grant program is intended to stimulate transit service growth in Greater Minnesota by reducing the local match requirement, which is known to be a barrier to adding new service quickly. A total of 500,000 new service hours must be added by 2025 to meet the Legislative target of 90% of Greater Minnesota public transit need. The Greater Minnesota Transit Investment Plan, which will be completed in April 2017, illustrates the types of service expansions that are targeted for meeting this need. 2017 - 2019 Greater Minnesota Transit Service Expansion Program 1 Grant Application Process The grant application process will be the same as previous grant applications with the following proposed schedule: • February 3, 2017: Application notification . • February 15, 2017: Application release through Black Cat . • February 23, 2017: Online application workshop . • March 3, 2017: Draft Project Scopes/Management Plans are due for Program Management technical review and assistance. • March 15, 2017: Final Project Scopes/Management Plans are due for review and evaluation . • March 20, 2017 : Notice of Final Awards • March -April: Contract development, encumbrances, release and intended execution of all operating and capital contracts . Selection Process Because available funds are limited, grants will be awarded based on fulfilling Transit Investment Plan priorities. Further information will be available in the application workshop. Please contact your Transit Program Manager for additional information about this opportunity to expand service with a reduced need for local matching funds. Sincerely, Mike Schadauer Director Office of Transit --------------2017 - 2019 Greater Minnesota Transit Service Expansion Program 2
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