Local Government Road Fund and Capital Outlay

1. Local Government Road Fund and Capital Outlay The NMDOT Process

2. Local Government Road Fund • Created to provide funds to Local Governments for projects where Local Entities take the lead in developing and contracting construction and maintenance projects. • Funding used for project development, construction, reconstruction, improvement, maintenance or repair of public highways, streets and public school parking lots, acquisition of right-of-way, and in place material for construction or improvement. • State Funding • 75% State Match • 25% Local Entity Match

3. LGRF Funding Types • Cooperative Program – SP (or Coop) • Counties, Municipalities, School Districts, Universities and Tribal • 18-Month Project Timeframe-Agreement Terminates December 31st. • County Arterial Program – CAP • Counties Only – (Funding based on road miles maintained) • 18-Month Project Timeframe-Agreement Terminates December 31st. • School Bus Route Program – SB • Counties Only • 18-Month Project Timeframe-Agreement Terminates December 31st. • Municipal Arterial Program - MAP • Municipalities Only • 24-Month Project Timeframe-Agreement Terminates June 30th.

4. Call for Projects(Dec-Jan) • NMDOT District Coordinators will send out a letter to Local Entities asking for their project proposals for the new LGRF year for Coop, CAP and SB projects. • The letter should include a copy of the Project Tracking Guide, along with samples of the Project Proposal Letter and the Preliminary Cost Estimate. • Project Proposals are due by March 15th. Incomplete proposals or late proposals will be returned for resubmittal next year.

5. Municipal Arterial Program(MAP) • The Call for Projects comes from Statewide LGRF Coordinator in Santa Fe. • Your complete project proposal requires more information, multiple copies and is submitted directly to Statewide LGRF Coordinator in Santa Fe. • If your project is awarded, you will begin working with the NMDOT District Local Government Road Fund Coordinator during the Agreement signature process. • Certification of the Pre-Construction Contract Phase (Certification No. 1) is due to be submitted to District LGRF Coordinator no later than June 30th of the year following the award of your project.

6. Submitting Project Proposals(Coop, CAP and SB) • Local Entities should submit a complete project proposal addressed to their NMDOT District Engineer. The proposals must be received in the District Office before the March 15thdeadline. The proposal should include: • Letter of intent from governing body or agency head. Must list scope, termini & reference estimated project cost. • Location of proposed project including route designation & termini – include a map showing the location. • Scope of work to be performed. • Project estimate, including the amount of State participation requested. • Justification for project construction. • Certification that proposed work is on a public highway and necessary for the public good and convenience and to serve the public of the municipality, county and/or school district.

7. Submitting Project Proposals(MAP) • Local Entities should submit a complete project proposal addressed to the Statewide LGRF Coordinator in Santa Fe by March 15th. The proposal should include: • Map of project limits (including proposed phasing). • Current and 20-year projected traffic volumes. • Pavement design criteria (10-year min.). • Typical section. • Major intersection & traffic signal analysis. • Drainage reports. • Preliminary cost estimate (include State share & Municipality share). • Local Government resolution of support for the project. • Project data sheet summarizing existing & proposed project information. • Statewide LGRF Coordinator • Clarissa Martinez, NMDOT Project Oversight Division - 505-699-6646

8. Budget Recommendations(March-April) • After NMDOT receives your project proposal District Coordinators await notification of the dollar amounts approved by the legislature for the current LGRF year. • As soon as District Coordinators receive the dollar amounts the available funding is split among the applicants - taking into account the amounts requested.

9. Budget Recommendations (cont.)(March-April) Coop, CAP, SB MAP • Based on available funding District Coordinators prepare budget recommendations for the current LGRF year. • Statewide LGRF Coordinator sends a copy of the MAP applications to each district and asks for their recommendation. • Budget recommendations due back to Statewide LGRF Coordinator by April 15th.

10. State Transportation Commission (STC) Approval/Resolutions(May/June) • Local Entity receives notification of State Transportation Commission’s approval/denial from NMDOT. (May) • Local Entity forwards a resolution to their NMDOT District Coordinator. Resolution must include: • Adopting the project & verifying its priority standing. • Exact scope of work. • Route designation. (which streets/roads) • Termini. (beginning point and ending point) • Reference the project cost (including State share of 75% and Entity share of 25%). • Project Number. (found on STC notification) • Control Number. (found on STC notification)

11. RESOLUTION (ENTITY NAME) PARTICIPATION IN LOCAL GOVERNMENT ROAD FUND PROGRAM ADMINISTERED BY NEW MEXICO DEPARTMENT OF TRANSPORTATION WHEREAS, the (ENTITY NAME) and the New Mexico Department of Transportation enter into a Cooperative Agreement. WHEREAS, the total cost of the project will be ($XXX.XX) to be funded in proportional share by the parties hereto as follows: New Mexico Department of Transportation’s share shall be 75% or ($XXX.XX) and (ENTITY NAME)’s proportional matching share shall be 25% or ($XXX.XX) TOTAL PROJECT COST IS ($XXX.XX) (ENTITY NAME) shall pay all costs, which exceed the total amount of ($XXX.XX). Now therefore, be it resolved in official session that (ENTITY NAME) determines, resolves, and orders as follows: That the project for this Cooperative agreement is adopted and has a priority standing. The agreement terminates on December 31, 20XX and the (ENTITY NAME) incorporates all the agreements, covenants, and understandings between the parties hereto concerning the subject matter hereof, and all such covenants, agreements and understandings have been merged into the written agreement. NOW therefore, be it resolved by the (ENTITY NAME) to enter into Cooperative Agreement Project Number (XXXX), Control Number (XXXX) with the New Mexico Department of Transportation for LGRF Project for year 201X – 201X to (LIST SCOPE, ROUTE, AND TERMINI)within the control of the (ENTITY NAME) in (CITY/COUNTY), New Mexico. (Appropriate Signatures & Dates below (Council, Commission, School Board, Tribe, Pueblo, Nation, etc.)

12. Agreement Signature Process(June – October) • Once the District Coordinator receives the resolution, they will draft three original agreements and send to the Entity for signature. • When the District Coordinator receives the agreements signed by the Entity, they submit the agreement package to Santa Fe where the agreements are executed by the Cabinet Secretary. • Once executed by the Cabinet Secretary, the funding on your award will be encumbered. • NO WORK can begin before a fully executed agreement is in place.

13. Agreement Process cont. • Local Entity receives fully executed agreement from NMDOT District Coordinator. • Your District Coordinator will provide supplemental information and samples of the standardized forms with the fully executed agreement package to aid you in progressing through the project. • All Agreements Must Be Fully Executed no later than October 31st.

14. Match Waiver Applications(June-July) • The Match Waiver program authorizes the Department to distribute up to one million dollars of LGRF money, to entities that can demonstrate financial hardship, for use as all or a portion of the their 25% match fund requirement. • Municipalities (SP or MAP awards) • Counties (CAP & SP awards only) • Financial hardship is determined by a financial analysis preformed by the Department of Finance and Administration. • Matching funds will not be waived for more than one project per entity, except for counties which would be eligible for one cooperative project and one county arterial project. • The District LGRF Coordinator can provide you with a sample resolution and letter of intent to assist you in applying for the Match Waiver program. • Match Waiver applications should be submitted to Santa Fe by July 31.

15. Match Waiver Approval/Amendments(September) • NMDOT reviews financial analysis from the Department of Finance and Administration and presents recommended projects for approval to the State Transportation Commission. • Local Entity receives notification of State Transportation Commission’s approval/denial from NMDOT. • District Coordinator will draft three original amendments and send to the Entity for signature. When the District Coordinator receives the amendments signed by the Entity, they will submit the amendment package to Santa Fe for execution. • Once Executed Match Waiver funds will be added to the encumbrance.

16. Disbursements • LGRF is a “Disbursement” program, not a “Reimbursement” program so funds can be requested and disbursed before work has been completed • Ask for your disbursement of funds as soon as the Notice of Award and Notice to Proceed have been issued to all parties.

17. Disbursement Packet • Letter from Public Entity requesting the disbursement. • Notice of Award / Work Order • Notice To Proceed • Estimated Summary of Costs and Quantities • Certification of Liability Insurance (be sure it contains the verbiage required in the Cooperative Agreement) • Project Timeline

18. Amendments to the Agreement • Three types of amendment can be requested on LGRF awards: • Change (or add) Routes & Termini • No formal amendment needed • District concurrence required • New Resolution with routes • Time Extension • Amendment to the Cooperative Agreement required • Change of Scope of Work • Amendment to the Cooperative Agreement required AND approval from STC required • The Public Entity shall be responsible for initiating amendments to LGRF Agreements. • Time Extension Amendments will not be allowed unless initiated at least 60 days prior to the Agreement’s expiration date. • Due to the need to be heard by the STC, Scope Change requests should be initiated at least 90 days prior to the Agreement’s expiration date. • A maximum of only two (2) amendments for Time Extension will be allowed per project.

19. Project Closeout • All projects must complete no later than the agreement termination date. • December 31st for CAP, SP, SB projects. • June 30th for MAP projects. • Closeout packet is due to the District Coordinator within 30 days of project completion • Required forms for closeout: • Project Certification of Design, Construction & Cost (CAP, SP, SB). • Certification #2 (MAP’s Only). • As Built Summary of Costs & Quantities. • Professional Engineer’s Certification - required on projects $100,000.00 or more – or for any project that is structural in nature. • Equipment Table - for Local Entities who use their own equipment. • Final inspection by District Coordinator (MAP project only) • Contact your District Coordinator for assistance/questions with required closeout documents.

20. Capital Outlay Overviewand CPMS Reporting

21. Capital Outlay • New Mexico Legislature • Awards projects funded with Severance Tax Bonds depending upon budget availability • Appropriation Bills require Public Entities to comply with the following Severance Tax Provisions • Enter into a third party contract to expend at least five percent (5%) of the bond proceeds within six months after the bond is sold • spend at least eighty-five percent (85%) of the bond proceeds within three years after the bond is sold • NMDOT Program Oversight Division (POD) • Notifies Public Entity to complete Severance Tax Bond Certification Questionnaires on DFA’s web-based system

22. Bond Questionnaires • Public Entity (municipality, county, etc.) • Completes Severance Tax Bond Certification Questionnaire in CPMS • Severance Tax Bond Sales • Occur in June and in December • NMDOT Program Oversight Division (POD) • Issues Capital Outlay Grant Agreements to Public Entity for signature • Severance Tax agreements issued for projects included in the last Bond Sale

23. Agreement & Notice of Obligation Process • Public Entity (municipality, county, etc.) • Returns signed agreements AND RESOLUTION to NMDOT District Capital Projects Coordinator • NMDOT District Capital Projects Coordinator • Submits signed agreements to NMDOT Program Oversight Division in Santa Fe to be fully executed • NMDOT Program Oversight Division (POD) • Sends fully executed agreement to Public Entity along with a letter explaining the Third Party Agreement / Notice of Obligation steps • Public Entity (municipality, county, etc.) • Advertises project in accordance with State Procurement Code • Provides a copy of their Third Party Agreement with a contractor and /or professional services provider, along with a completed Notice of Obligation Form, approved scope of work and budget to the District Capital Outlay Coordinator

24. NMDOT District Capital Projects Coordinator • Reviews the Third Party Agreement • Issues a Notice of Obligation in the amount of the Third Party Agreement only (cannot issue Notice of Obligation for more than the full amount of the Capital Outlay Award) • A copy of the Notice of Obligation goes to the Public Entity and another to Program Oversight Division. • NMDOT Program Oversight Division (POD) • Encumbers the funding amount listed on the Notice of Obligation • Prepares a Purchase Order (PO) in the amount encumbered and sends a copy to District Capital Projects Coordinator and to District Construction Audit • Public Entity (municipality, county, etc.) • Upon receipt of Notice of Obligation – completes the execution of the Third Party Agreement and can now proceed with the construction and / or design of the project

25. Public Entity (municipality, county, etc.) • Utilizes Exhibit 2 of their Capital Outlay Agreement to request monthly reimbursements from their District Capital Projects Coordinator • Contact your District Coordinator for information on who to send the monthly reimbursement request to within your NMDOT District Office • Reports the project status by the 30th of every month into the Capital Project Monitoring System (CPMS) – failure to do this could result in the reversion of your funding • go to http://cpms.dfa.state.nm.us to access the Department of Finance Administration website to view and update your Capital Outlay Appropriations.

26. Updating CPMS • At the top right of the “Capital Appropriations Search” title bar Click Login. • Select Local Entity to access the local entity “Capital Appropriations” login page. • Enter Username and Password. Click Submit. For Login username and password information contact: New Mexico Department of Finance Capital Outlay Bureau (505) 827-3696

27. Click on the Approp ID in the “Approp ID” column to access project information for updates. • Update all required fields for the monthly update: • For Project Status provide specific details about the project including any delays, problems, percentage complete, or changes to timelines or milestones. Date each comment to keep a history on the project progress. Project Status is required for each monthly update – if there is no activity for the project indicate “No Activity” and explain WHY.

28. Once updates are done print page and click Submit. (If you do not submit, updated information will be lost.) • Once changes are submitted, the screen will go back to the “Capital Appropriations” page. At the top in the yellow header it will display in red “Appropriation ID: ##-#### successfully updated”. If you do not receive this statement, the changes were not saved.

29. Questions? Contact Information: Clarissa Martinez Capital/LGRF Manager 505-699-9946