Goodhue County weighs MnDOT limited‑use permit, insurance requirements for snowmobile trails

Goodhue County commissioners on Tuesday reviewed a request tied to the Minnesota Department of Transportation’s limited‑use permit (LUP) process for a short snowmobile crossing in the City of Goodhue and discussed whether the county should sign an LUP that shifts liability to the sponsor.

The issue matters because the county acts as the sponsor for Grants‑in‑Aid snowmobile trails and must certify landowner permissions and benchmarks to the Minnesota Department of Natural Resources (DNR). Commissioners were told that signing MnDOT’s LUP in its current form would expose Goodhue County to indemnity obligations that Minnesota County Intergovernmental Trust (MCIT) has said it would not cover; delayed DNR payments to local clubs also hinge on whether a sponsor signs the LUP.

Finance Director Lucas Staling summarized the Grants‑in‑Aid program role and local figures: the DNR awards roughly $84,000 to the county’s trail system this season, Goodhue County’s program includes about 320 trail miles, and the county receives $264 per trail mile. "The benchmark number 1 payment, it's 45% of the total award. So this is it's about $38,000 that'll get split amongst the 6 clubs," Staling said, describing an initial payment that is currently delayed pending resolution of the LUP question.

Minnesota Department of Transportation District staff said a limited‑use permit is required for any trail segment where a groomer or snowmobile operates within MnDOT right of way. "If the groomer enters into the trunk highway system, a limited use permit is needed, for any part of the trail that is in within MnDOT right away," said Dave Evans, the MnDOT official who handles issuance of LUPs. Evans and MnDOT staff said the agency can shorten the permit term; MnDOT agreed at the meeting that a two‑year term would be acceptable if the county prefers a shorter renewal cycle.

DNR parks and trails consultant Wade Miller explained the Grants‑in‑Aid framework and the underlying liability waiver that applies when a landowner grants permission for a public trail. "When at no fee, someone grants permission to cross their property, whether it's public or private, that underlying landowner is waiving liability," Miller said, and he described the sponsor role as the fiscal agent that must verify benchmarks and permissions to receive grant funds.

County attorney Steve O'Keefe and staff outlined legal concerns. O'Keefe noted state law restrictions on two‑way nighttime operation and cautioned that the county’s exposure depends on whether the county is negligent. "It is under state law illegal for snowmobile riders to do 2 way traffic after dark at night. And that's what this permit allows," O'Keefe said, adding that the county's liability exposure would be based on county negligence if the county signs the LUP and is later sued.

Staff summarized three principal options: (1) sign MnDOT’s LUP as sponsor (the county would assume the indemnity language in the current form and likely assume liability for the LUP‑covered segments); (2) refuse to sign (the DNR would require clubs to remove official trail sections in MnDOT right of way, update maps and reduce funded trail miles by $264 per mile, and groomers would not operate those sections); or (3) have staff draft contracts between the county and the local clubs that require specified insurance limits, certificates, and naming Goodhue County as an additional insured before the county signs any LUPs.

Staling told commissioners that MCIT — the county’s insurer covering 81 Minnesota counties — reviewed the permit language and indicated it would not insure the county where the county is "assuming someone else's liability." Commissioners discussed whether other Minnesota counties have signed similar LUPs and whether MCIT coverage varies among counties; MnDOT said many counties statewide hold LUPs but that local clubs must request permits so MnDOT may not have been approached in all southeast Minnesota cases.

After discussion of insurance minimums, enforcement and monitoring responsibilities, and potential operational risk, commissioners gave staff consensus direction to pursue option (3): draft an agreement with the clubs requiring evidence of insurance (DNR guidance for nonprofit clubs is a $1,000,000 liability minimum), require Goodhue County be listed as additional insured or certificate holder where practicable, and return to the board with contract language. Commissioners also instructed staff to continue to negotiate with MnDOT and DNR on a shorter LUP term; MnDOT indicated it would accept a two‑year permit.

No formal vote was taken at the Committee of the Whole; the board provided consensus for staff to draft agreements and return with proposals. Staff told commissioners they will seek additional information from MCIT and from other counties with existing LUPs, and will return to the board with contract language and options for insurance limits and permit terms.

The matter affects six local clubs in Goodhue County that together manage about 320 miles of trail under the Goodhue County trail sponsorship. The county’s next step is to draft the club agreements and to present a recommended course of action for the full board at a future meeting.