MINNESOTA DEPARTMENT OF
OFFICE OF TRANSIT
SECTION 5316 STATE MANAGEMENT PLAN
(JARC – SMALL URBAN AND RURAL)
Table of Contents
A. Program Goals and Objectives 3
B. Roles and Responsibilities 3
C. Coordination 4
D. Eligible Subrecipients 5
E. Local Share and Local Funding Requirements 5
F. Project Selection Criteria and Method of Distributing Funds 5
G. Annual Project Development Process 6
H. Administration, Planning and Technical Assistance 8
I. Transfer of Funds 9
J. Private Sector Participation 9
K. Civil Rights 9
L. Section 504 and ADA Reporting 11
M. Program Measures 11
N. Designated Recipient Program Management 12
O. Other Provisions 14
A. PROGRAM GOALS AND OBJECTIVES
To improve access to transportation services to employment and employment related activities for
welfare recipients and eligible low-income individuals in the rural and small urban areas of Greater
1. To implement and administer the Minnesota Section 5316 Job Access and Reverse Commute
(JARC) grant program in accordance with Federal Transit Administration (FTA) program
management guidelines and Mn/DOT developed procedures, designed to attain the above
2. To inform eligible private non-profit organizations; state or local governmental authorities and
operators of public transportation services, including private operators of public
transportation services within the state of grant application opportunities.
3. To convene a statewide review committee representing community action agencies; regional
development commissions; the Minnesota Department of Human Services, Disability Services;
the Minnesota Department of Employment and Economic Development; the Minnesota Public
Transit Association; the Minnesota Coalition for Citizens with Disabilities; the Minnesota
Department of Human Services, Aging and Adult Services; Mn/DOT District Transit Project
Managers; Mn/DOT staff in charge of organizing the development of the Human Services and
Public Transportation Coordination Plans; and the Mn/DOT JARC Program Coordinator for
4. To recommend applications for funding during a competitive selection process based on
evaluation criteria developed by Mn/DOT’s Office of Transit and consistent with May 1, 2007,
FTA Job Access and Reverse Commute Program Guidance and Application Instructions, FTA
5. To track and compile data on the capital, planning, operating and marketing components of
funded JARC projects to ensure their compliance with state and federal regulations.
6. To maintain records and exercise administrative oversight for all grant funded capital,
planning, operating and marketing activities.
B. ROLES AND RESPONSIBILITIES
1. Mn/DOT Office of Transit
The Governor of Minnesota has designated the Minnesota Department of Transportation as
the administrator of the Section 5316 program in Greater Minnesota (outside the seven-
county Twin Cities Metropolitan Area). More specifically, the Office of Transit administers the
Section 5316 program. Greater Minnesota includes urbanized areas with populations less
than 200,000 and non-urbanized areas.
The Office of Transit undertakes the following activities under the Section 5316 program:
a. Develop and distribute an application for the federal Section 5316 Job Access and
Reverse Commute Grant Program;
b. Reviews applications for content, thoroughness, and eligibility;
c. Establishes the Section 5316 statewide review committee made up of individuals from
organizations such as regional development commissions, metropolitan planning
organizations, disabled and elderly groups, the employment sector, planners, community
action agencies, the Minnesota Public Transit Association and Mn/DOT Transit Project
d. Approves grant applications based on review committee recommendations;
e. Monitors recipient compliance with federal rules and regulations pertaining to the use of
federal funds for capital, planning, operating and marketing activities.
a. Be an eligible subrecipient;
b. Complete the state JARC application;
c. Coordinate with partners and provide local match;
d. Complete reporting requirements; and
e. Utilize program funds appropriately.
The roles and responsibilities of the subrecipient are detailed in the Job Access and Reverse
Commute federal Section 5316 Program application can be found at
www.dot.state.mn.us/transit/grantapplications/5316ap.html and are detailed in the state
grant contract agreement.
1. Local Coordinated Public Transit-Human Services Transportation Plans.
JARC projects must be linked to the coordination strategies listed in the Coordinated Public
Transit-Human Services Transportation Plans for all applicable regional development
commission or planning areas which the JARC projects impact.
Copies of Greater Minnesota’s coordination plans can be found at
www.coordinatemntransit.org/regionalplans/. The coordinated plans include an assessment
of available services that identify current transportation providers; and an assessment of the
transportation needs for individuals with disabilities, older adults and people with low
incomes. The coordinated plans were developed through a process that included
representatives of public, private and non-profit transportation and human service providers
and members of the public.
The coordinated plans were developed separately from the statewide transportation planning
processes, and are incorporated into the statewide transportation planning process.
2. Project Partners
Applications must also indicate coordination with one or more organizations in an effort to
develop a comprehensive transportation network in the project area. Partnering
organizations can also contribute to the local match requirements for JARC funding.
Applicants that demonstrate a coordinated effort will be given priority in project ranking.
D. ELIGIBLE SUBRECIPIENTS
An eligible applicant must be:
a. Private non-profit organization;
b. State or local governmental authority; or
c. Operators of public transportation services, including private operators of public
transportation services, public or private.
In addition to the above requirements, the applicant organization must have approval of its
agency’s executive board in order to be eligible. The applicant organization must also be able to
demonstrate financial capability to provide the 20 percent local share for capital (Mobility
Management), planning and marketing activities and the 50 percent local share of any operating
deficit. A more detailed description of eligibility requirements is listed in the Section 5316 JARC
Sub-recipients of Section 5316 capital, planning, operating or marketing funds provide service
primarily to low-income and welfare clients. While the service provided must address specific
grant related purposes, other patrons may benefit from the activities.
E. LOCAL SHARE AND LOCAL FUNDING REQUIREMENTS
1. Eighty percent federal funding is available from the Federal Transit Administration for
planning, capital and marketing for the Section 5316 program. The remaining 20 percent can
be funded from non-DOT federal programs, from local sources or from other organizations or
2. Fifty percent of the net operating deficit for federal funding is available from the Federal
Transit Administration for operating after farebox revenues are applied. The remaining 50
percent can be funded from non-DOT federal programs, from local sources or from other
organizations or employers.
F. PROJECT SELECTION CRITERIA AND METHOD OF DISTRIBUTING FUNDS
1. Project Selection Criteria
Per FTA guidelines the state established criteria for selection of projects to be funded from the
applications submitted by eligible organizations. Once applicant eligibility is established based
on federal circular guidance, an application is evaluated for conformance with program
The criteria used to determine which JARC projects will be funded are discussed in the Section
5316 Application. The evaluation materials used by the Statewide Review Committee to rank
projects in each of the two JARC funding categories (Small Urban and Rural) are identical.
a. Provide low income workers job access transportation opportunities;
b. Developed strong partnerships and secure financial responsibility; and
c. Have the capacity to properly execute the JARC project.
2. Distribution of Funds
JARC applications are reviewed and awarded and funds are distributed within their
appropriate funding category (Small Urban and Rural). The state will use funds apportioned
for small urbanized and rural areas for projects serving another area of the state when the
Chief Executive Officer, the Governor of Minnesota, of the state certifies that all objectives of
JARC are met in the specified areas. If multi-year JARC funds are used to fund Small Urban and
Rural projects, any funds not expended from the most current FTA funding year are
reprogrammed to other projects.
G. ANNUAL PROGRAM OF PROJECTS DEVELOPMENT AND APPROVAL PROCESS
The Office of Transit solicits projects, at a maximum of two years, and establishes a timetable for
accepting, reviewing and approving applications as noted on the following Application/Contract
Dates Tasks Responsible Staff
January/February Application incorporates input from Statewide OT – Program section
February/March Notice of application availability posted on Office of OT – Program Section
Transit (OT) website, in OT “Transit Bulletin” and in
March/May Applications posted on OT website OT – Program/Planning
June-July District Transit Project Managers (DTPMs) and OT DTPMs & OT Program Staff
staff work with applicants to complete applications
End of July Applicants submit applications Applicants
End of July- Applications reviewed for “completeness” and OT – Program Section
September evaluation forms and applications prepared for
Mid-September Statewide review of applications OT and Review Committee
Mid-October OT Director final approval of Program of Projects Director and OT – Program
Mid-October Projects amended into current State Transportation OT/OIM
Mid-October Grants submitted to FTA OT
Late October Applicants notified of application standing OT – Program Section
Late October Contracts prepared Staff Attorney
Late October Contracts encumbered OT – Planning Section
Late October-Early Encumbrances checked, appropriate signature Staff Attorney and OT
November obtained from Office of Financial Operations Program Section
contracts sent to recipients for signature
Mid-December Deadline for recipients to return executed contracts Recipients and TMPs
End of December OT processes contracts, obtains Director’s signature Director, Staff Attorney and
and returns original executed contract to recipient, Administration Staff
Mn/DOT Contract Management, Planning Section
and copy to DTPMs and Office of Audit
Applicants for JARC funds must submit an application to the Office of Transit. The application
must include: a cover letter; a signed application checklist; applicant overview, coordinated plan
reference, overall project costs, an overview for capital, operating and marketing expenses as
applicable; projected budgets and route information as applicable. The application must also
include a resolution from the governing body. If chosen for funding, this application becomes the
management plan and is incorporated into the recipient contract with Mn/DOT.
The management plan is the key document in the application process. It contains a description of
all elements that will affect the subrecipient during the contract period. The management plan
must contain the following: introduction; description of service; project goals and objectives;
levels of service; revenues; marketing; coordination with existing transit operations; revenue
contracts; capital improvements; vehicle maintenance program and proof of insurance.
To initiate the application process, workshops are held throughout the state to discuss application
procedures and timelines, federal and state program requirements and related transit issues. The
Office of Transit staff and District Transit Project Managers work with applicants to develop their
Mn/DOT reviews each application for completeness and reasonableness and works with
applicants to make any necessary adjustments to the management plan and project budget. The
applications are reviewed by a Statewide Review Committee in a fair and competitive process.
The committee includes, but is not limited to, representatives of community action agencies;
regional development commissions; the Minnesota Department of Human Services, Disability
Services; the Minnesota Department of Employment and Economic Development, the Minnesota
Public Transit Association; the Minnesota Coalition for Citizens with Disabilities; the Minnesota
Department of Human Services, Aging and Adult Services; Mn/DOT District Transit Project
Managers; Mn/DOT staff in charge of organizing the development of the Human Services and
Public Transportation Coordination Plans and the Mn/DOT Section 5316 Program Coordinator for
The Mn/DOT Section 5316 Grant Coordinator forwards the list of selected projects to the
appropriate Area Transportation Partnership for inclusion in their Area Transportation
Improvement Program (ATIP) and to appropriate Metropolitan Planning Organizations (MPOs) for
inclusion in their Transportation Improvement Plan (TIP). TIPs and ATIPs are forwarded to
Mn/DOT for integration into Minnesota’s Statewide Transportation Improvement Program (STIP).
The Office of Transit develops the program of projects list from the approved STIP projects and
submits its Section 5316 grant request to the FTA.
Contracts are prepared, encumbered and forwarded to project recipients for execution.
H. ADMINISTRATION, PLANNING AND TECHNICAL ASSISTANCE
Mn/DOT provides technical and management assistance to all applicants and recipients of Section
5316 funds in a variety of ways.
The District Transit Project Managers, located in each District Office, and Office of Transit staff act
as a transit resource for planning, project development, vehicle procurement, scheduling,
marketing, computer program development, and route and system development. Office of
Transit staff is available as needed to assist applicants and recipients of Section 5316 funds in all
phases of the application and implementation process.
On-going technical assistance provided by the Office of Transit staff and District Transit Project
1. Providing input into JARC related transit service development plans or assisting and advising in
potential program changes;
2. Providing methodology for review and analysis of transit operations related to JARC;
3. Providing funding continuity with local, state and federal units of government;
4. Providing assistance in the development of system expertise in areas such as transit labor
costing, as applicable; route design, marketing campaigns and computer usage;
5. Providing assistance in meeting state and federal regulations, e.g., civil rights requirements;
6. Providing assistance in coordinating transit services;
7. Providing marketing assistance for recipients;
8. Assisting recipients in purchasing vehicles and other capital; and
9. Assisting in the development of transit operating specifications and issuing requests for
proposals in accordance with federal and local procurement guidelines.
I. TRANSFER OF FUNDS
Mn/DOT may exercise its option to transfer JARC funds to Section 5311 or 5307 programs and to
use flexible funds as program needs are determined through each Public Transit Participation
Program grant application process. If a transfer occurs, notice of funds is transferred to FTA.
J. PRIVATE SECTOR PARTICIPATION
Private sector providers of public transportation are afforded notification of JARC project
1. Mailing Lists – Lists of private transportation providers are used to inform agencies and
organizations about the Statewide Coordination Study. Notice of the development of
transportation plans is sent to the mailing lists noted above and is also advertised in local
2. Statewide Notification – Notification of intent to solicit Job Access and Reverse Commute
(JARC, Section 5316) applications are published in the State Register.
3. Electronic Media – An e-mail notification of applications is sent to all known participants in the
Section 5307, 5310, 5311, 5316, 5317 and Tribal Transit programs.
4. Website Posting – Notification of the availability of the JARC application is also posted on the
Minnesota Department of Transportation’s Office of Transit website.
5. Open Competition – All eligible applicants are invited to apply for Section 5316 funds.
6. Selection Process – The selection process is fair and equitable based on project merits.
K. CIVIL RIGHTS
Through annual grant agreements, subrecipients agree to comply with all applicable civil rights
statutes and regulations. These include Title VI of the Civil Rights Act, Equal Employment
Opportunity, and Americans with Disabilities Act. Each recipient must have a signed DOT Title VI
Assurance and FTA Civil Rights Assurance on file with Mn/DOT. A summary of this information is
provided to the FTA as required in the FTA Title VI Report every three years.
Mn/DOT annually signs the FTA Annual List of Certifications and Assurances for Federal Transit
Administration Grants and Cooperative Agreements which binds Mn/DOT to all civil rights
requirements. Section 5311 subrecipients annually sign FTA’s Certifications and Assurances in
their grant contracts with the state.
Investigation of Complaints/Lawsuits
Mn/DOT also gathers information from subrecipients during the annual visits and any findings are
documented on the Section 5311 Public Transit Annual Subrecipient Checklist (Annual Checklist).
Mn/DOT prepares a Title VI Report for submission to the FTA every three years. Compliance with
Title VI Civil Rights takes place through monitoring of complaints. When a complaint is deemed a
civil rights issue it is referred to the Mn/DOT Title VI coordinator.
Each transit system is visited at least annually by a District Transit Project Manager to review the
Annual Checklist. The Annual Checklist covers Title VI and other related federal compliance topics
and other topics such as Americans with Disabilities Act (ADA), Limited English Proficiency (LEP)
plans, Equal Employment Opportunity, etc.
Disadvantaged Business Enterprise
The Mn/DOT Office of Civil Rights (OCR) administers the Disadvantaged Business Enterprise (DBE)
program for Mn/DOT by establishing an overall DBE goal for transit. To achieve this goal, the OCR
assigns DBE goals to Mn/DOT and subrecipient projects where there is a potential for DBE
participation. The OCR provides technical assistance to subrecipients to identify DBE contracting
opportunities and, if necessary, to provide assistance to potential DBEs to become certified. The
OCR is responsible for monitoring DBE achievements in transit and for training Mn/DOT staff on
Subrecipients must report as required on DBE goal achievement.
Public Notification of Rights
Subrecipients are instructed to notify the public of their rights under Title VI Civil Rights.
Notification takes place through notices posted on vehicles and in transit facilities, on printed
publicity materials and websites. District Transit Project Managers verify the presence of public
notification on the Annual Checklist.
Limited English Proficiency (LEP)
Each subrecipient develops a Language Assistance Plan as appropriate for the area in which the
transit system operates. Each subrecipient completes a four factor analysis. These factors
The number or proportion of LEP persons in the service area who are likely to be served by the
The frequency with which the LEP persons come into contact with the transit system;
The nature and importance of the service provided to the LEP persons, and
The resources available to the transit system and the cost to provide language assistance.
The Language Assistance Plan then describes the measures it currently uses or might use to
address the needs of the LEP persons. Staff training is an integral part of a successful Language
Assistance Plan. Finally, the Plan describes how notice to LEP persons about available language
assistance is publicized.
Public Participation and Outreach
District transit project managers discuss opportunities for public participation and outreach
annually during the review of the Annual Checklist. Most transit systems have Transportation
Advisory Committees (TACs) consisting of seniors, people who are disabled, general users and
organizations that work with people who are transit dependent. County boards and city councils
also address transit issues periodically.
L. SECTION 504 AND ADA REPORTING
The American with Disabilities Act (ADA) certification is signed by each subrecipient as part of the
Section 5316 Grant Contract with Mn/DOT in the Federal Certifications and Assurances for FTA
Through the JARC application process the Office of Transit monitors its subrecipients to ensure
transit services provided are ADA accessible. The Service Design is a description of the
subrecipient’s transit compliant with the ADA. For example, JARC capital projects (bus shelters)
are installed per ADA requirements.
In addition, Mn/DOT staff provide technical assistance as needed (or requested) to Section 5316
applicants regarding policies which address accessibility issues such as the transportation of
service animals, portable oxygen or other medical devices and personal care attendants.
The Office of Transit requires that each subrecipient meet the ADA alternative communication
requirement by requiring the use of either a TTY machine or by providing the Minnesota Relay 711
service. Subrecipients identify how calls will be accessible to communication disabled persons on
their publicity materials. Materials in alternative formats are also available upon request for
persons with disabilities other than hearing. This is a required component of the application when
the applicant is applying for operating funds. Additional information is included in the Section
5316 JARC Application. These requirements are monitored annually during the annual
subrecipient site visit. Review of the Service Design determines whether a subrecipient is
compliant with ADA accessibility. In addition, Mn/DOT requires all vehicles purchased through the
state to be accessible.
Maintenance of lift equipment and securement devices is monitored with the annual checklist
utilized by the District Transit Project Manager.
M. PROGRAM MEASURES
Mn/DOT uses the subrecipient’s Management Plan to monitor and evaluate subrecipient’s
performance. Transit policy, management decisions, and actions taken by the subrecipient during
the contract period must conform with the Management Plan. Any proposed deviation from the
Management Plan must be reported to the District Transit Project Manager and Office of Transit
staff who must concur in writing prior to implementation of the proposed change.
Management review is an on-going process undertaken by Mn/DOT District Transit Project
Managers and Office of Transit staff. Subrecipients are required to report expenses, revenues and
passenger counts monthly. District Transit Project Managers use these reports to monitor the
system’s fiscal and operational management.
The reporting form automatically calculates the following performance measures:
▪ Cost per passenger
▪ Revenue per passenger
▪ Passengers per mile
▪ Passengers per hour
▪ Revenue/expense ratio
▪ Maintenance costs
In addition to previously mentioned annual on-site reviews, staff from the Office of Transit in
conjunction with District Transit Project Managers, also conduct on-site performance evaluations.
The purpose of the evaluation is to identify best practices in transit operations, identify areas
where efficiency and effectiveness can be improved, and better manage and safeguard the state
and federal transit investment.
Subrecipients found to be out of compliance with federal or state rules and regulations are issued
instructions for correction with a deadline for compliance. Completion dates for suggested
operational and service design improvements are negotiated with the transit system manager, the
District Transit Project Manager and the evaluator. The District Transit Project Manager is
responsible for follow up.
Mn/DOT auditors perform fiscal annual desk audits of Section 5316 contracts and conduct a
standard field audit approximately every three years.
The grant applicant reports performance results from the previous completed calendar year and
estimates results for the current year of operations. Proposed performance measures for the
upcoming year are estimated. Grant applicants are also encouraged to develop quantifiable goals
for their Section 5316 funded project. These results are measured in the application.
N. DESIGNATED RECIPIENT PROGRAM MANAGEMENT
Mn/DOT’s grant contracts with Section 5316 subrecipients require subrecipient compliance
with FTA Circular 4220.1F Third Party Contracting guidance; Mn/DOT’s prior approval of third
party contracts by the state; and subrecipient’s submission of current local procurement
policies to Mn/DOT.
Mn/DOT reviews and approves all federally funded subrecipient subcontracts and third party
contracts before execution to ensure federal contract clauses are included.
2. Financial Management
The Office of Transit is responsible for managing grants, contracts and interagency
agreements to ensure that expenditures comply with federal rules and regulations. This
includes FTA reconciliation of projects for Section 5316. Financial management
responsibilities include: managing the ECHO process between FTA and Mn/DOT so that
transactions are processed in a timely manner, and the accounts are balanced and well
documented; investigating and resolving accounting problems to ensure compliance with
state and federal rules and regulations; managing the documentation entered into Mn/DOT’s
automated database relative to individual grants, contracts or interagency agreements;
submitting federal financial reports in TEAM; rectifying and closing out FTA grants when
projects are completed; and working with Mn/DOT finance to develop indirect cost rates.
Grant contract payments are made only after costs have been incurred and reporting
requirements are met.
3. Property Management
Mn/DOT maintains a Permanent State Vehicle Record for each vehicle purchased with Section
5316 funds. Mn/DOT ensures that all equipment used by subrecipients purchased with
federal funds is used for the program or project for which it was acquired. In the event
subrecipients no longer need equipment purchased with federal funds and useful life remains,
the equipment is transferred in accordance with Mn/DOT’s Vehicle Disposition/Transfer
Procedures can be found at
Mn/DOT maintains a comprehensive list of all Section 5316 transit facilities purchased with
federal funds. If a facility is no longer needed, the system must obtain a written appraisal and
dispose of the facility according to federal disposition requirements.
4. Vehicle Use
The grant vehicle must first use the equipment to deliver the JARC Program services or to
provide additional services that are a part of the locally developed coordinated plan. The
recipient shall use the vehicle in the project or program for which it was acquired as long as
needed, even if the project does not continue to receive federal funding.
During the period the vehicle is used to serve the project or program needs for which it was
acquired, the designated recipient or subrecipient shall make it available for use on other
projects or programs as long as such other use does not interfere with the service for which
the vehicle was originally acquired.
Vehicle use is monitored as part of the annual subrecipient site visit by the District Transit
5. Maintenance and Disposition
A vehicle maintenance program is required as part of each Section 5316 subrecipient’s
contract. This plan describes vehicle repairs, maintenance scheduling, and recordkeeping and
includes the following key elements:
a. Time and mileage maintenance specified by the manufacturer;
b. Drivers daily checklist;
c. Fleet maintenance cost per mile.
The vehicle maintenance program is monitored as part of the annual on-site subrecipient visit
by the District Transit Project Manager. If a vehicle is to be disposed, the appropriate policy
can be found at www.dot.state.mn.us/transit/grantapplications/grantapindex.html
6. Accounting Systems
Subrecipients establish a set of accounts in which all transit related costs, revenues and
operating sources are recorded and clearly identified, easily traced and substantially
documented. All accounting practices applied and all records maintained must be in
accordance with Generally Accepted Accounting Principles.
Mn/DOT uses the Minnesota Accounting and Procurement System (MAPS) for the
procurement of agency goods and services and payments to vendors. The data that is entered
into MAPS is collected in the Information Access Data Warehouse for agency users to compile
information and generate reports. Data entered into MAPS can also be accessed via Crystal
Reports for specific reports. Ad hoc reports are prepared using Excel spreadsheets for
financial reporting by federal grant.
7. Audit and Closeout
According to the agreement between Mn/DOT and subrecipients, subrecipient records are
subject to final audit.
“Pursuant to Minnesota Statutes, Section 16B.06 , Subdivision 4, the books, records,
documents and accounting procedures and practices of the Subrecipient and any
subcontractors relevant to this contract shall be subject to audit and examination by Mn/DOT,
the Legislative Auditor or the State Auditor.”
The Mn/DOT Audit Section audits each agreement included in a Section 5316 grant. Once all
approved activities are completed and/or applicable federal funds are expended, the Section
5316 grant is closed.
O. OTHER PROVISIONS
Oversight of all other FTA Provisions
All subrecipients of Section 5316 funds enter into a grant contract with Mn/DOT which includes
federal contract clauses and annual FTA certifications and assurances. In addition District Transit
Project Managers conduct annual reviews of each subrecipient and administer checklists of
relevant federal requirements, including environment protection, Buy America, pre-award and
post delivery, restrictions on lobbying, school transportation, and drug and alcohol monitoring.