Two delivery methods, one free

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I have only one location and I want to offer free delivery on orders over $40. Otherwise, there is a $5 delivery fee. In local delivery, I can set a location to allow free shipping on orders over $40. I can also make it only show the $5 option.

How do I make it show the $5 option only to those with a cart of less than $40? If I configure local delivery with for free with orders over $40, then the customer sees "can't ship to you" when they don't have $40 in their cart.

I tried making shipping rules for this, which worked, but then orders aren't tagged as local deliveries and then the Shopify Delivery app doesn't see them. Can someone help?

I DO NOT want to install a 3rd party app for this simple functionality.