Minnesota Administrative Rules

8835.0320 CAPITAL ASSISTANCE.

Subpart 1.

Budget.

An applicant seeking financial assistance for capital costs shall include in its budget a description of the vehicle, facility, or equipment desired, its cost and the reason for the request.

Subp. 2.

Criteria.

The department shall use the following criteria to evaluate requests for capital assistance:

A.

the extent to which the request maintains public transit services, promotes safety, and promotes efficient operations;

B.

the extent to which accessibility is enhanced; and

C.

the availability of local share money.

Subp. 3.

Allocation formula.

The department shall determine the amount of capital assistance for the public transit participation program according to the discretion provided to the commissioner in Minnesota Statutes, section 174.24, subdivision 3c. Except as provided in subparts 4 and 5, the department shall fund 80 percent of the capital costs approved by the department under the public transit participation program. The recipient shall provide the remaining 20 percent of the approved capital costs from local sources.

Subp. 4.

Program deviation from allocation formula.

Under the discretion provided to the commissioner in Minnesota Statutes, section 174.24, subdivision 3c, the department may establish a capital assistance allocation formula that deviates from the formula established in subpart 3. In setting this formula, the department must consider all relevant conditions relating to funding the public transit participation program.

Subp. 5.

Individual exception to allocation formula.

The department may deviate from the capital assistance allocation formula for an exceptional circumstance. A recipient that seeks capital assistance from the public transit participation program in an amount greater than the allocation formula, established under subpart 3 or 4, must make a written request to the department that includes:

A.

a detailed description of the exceptional circumstance that is the basis of the written request; and

B.

a resolution from the governing body that the request is due to an exceptional circumstance.

The department shall consider a request for an individual exception to the allocation formula after assessing the nature of the exceptional circumstance, balancing the request against other requests from recipients for capital assistance, and considering the assurance provided by the governing body that the circumstance that gave rise to the request is exceptional.

Subp. 6.

Vehicle replacement or disposition.

The department shall determine financial assistance to a public transit system to replace, refurbish, or dispose of a vehicle based on the condition of the vehicle and the availability of funds.

Subp. 7.

Contract.

The financial assistance contract between the department and the recipient must specify the maximum amount of capital assistance to be allocated to the recipient and the terms and conditions of assistance. The department shall determine the actual amount of capital assistance based on the availability of funds.

Statutory Authority:

MS s 174.23

History:

25 SR 61; 44 SR 332

Published Electronically:

September 3, 2019