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Local Road and Bridge Matching Grant Fund

The Community Crossings Matching Grant Program provides funding for local road and bridge improvements in cities, towns, and counties across Indiana. The program is a partnership between the Indiana Department of Transportation (INDOT) and Hoosier Communities, with funding coming from gas taxes and vehicle registration fees. Since 2016, INDOT has awarded $300 million in state funds to support local road and bridge projects. This program offers different matching ratios based on population size and allows for surtax/wheel tax changes. Unused funds do not revert to the state general fund. Local governments must have an approved asset management plan to be eligible for funding, which can be assisted by the Local Technical Assistance Program (LTAP) at Purdue University. Eligible projects include road resurfacing, bridge rehabilitation, road reconstruction, and more.

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Local Road and Bridge Matching Grant Fund

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  1. Local Road and BridgeMatching Grant Fund Kathy Eaton-McKalip Local Programs Director Indiana Department of Transportation

  2. Community Crossings Matching Grants • Community Crossings Matching Grant Program provides funding to cities, towns, and counties across Indiana to make improvements to local roads and bridges • Funding for these grants come from gas taxes and vehicle registration fees • Partnership between INDOT and Hoosier Communities • Since 2016, INDOT has awarded $300 million in state funds to support local road and bridges. • $1.0 million dollar cap per calendar year

  3. Population-based match • 25% local/75% state match for counties with population less than 50,000 and cities and towns with population less than 10,000 • 50/50 match for counties with population of 50,000 or more and cities or towns with 10,000 or more • INDOT uses Auditor of State population chart • Local match is not capped, can be higher

  4. Surtax/wheel Tax changes • Fiscal body adopts an ordinance to impose, rescind or change the rate or amount of a surtax • Send copies of ordinance to Kathy Eaton-McKalip at kaeaton-mckalip@indot.in.gov • INDOT responds with letter approving asset management plan • Submit ordinance and INDOT letter to Bureau of Motor Vehicles and Indiana Department of Revenue by Sept. 1 to be effective Jan. 1 the following year

  5. Rule of “50” • 50 percent of Community Crossings funds are for projects in counties with less than 50,000 in population • Cities, towns and counties must use at least 50 percent of Motor Vehicle Highway funds provided by State Auditor for construction, reconstruction, and maintenance of roads and bridges Unused Community Crossings funds do not revert to the state general fund

  6. Local match funding sources • Any funds authorized for use on a local road or bridge project

  7. Match Examples • Under 50,000/10,000 25% match • Total Project Cost $500,000 • 25% = $125,000 75% = $375,000 • Total Project Cost $1,400,000 • Cap $1,000,000 – Local $400,000 • Over 50,000/10,000 50% match • Total Project Cost $750,000 • 50% = $375,000 50% = $375,000 • Total Project Cost $2,400,000 • Cap $1,000,000 Local $1,400,000

  8. Transportation Asset Mgmt. Plans • Local government must have approved pavement plan to submit road projects and bridge plan to submit bridge projects • Includes planning for drainage systems and rights of way that affect transportation assets • Local Technical Assistance Program (LTAP) at Purdue University assists locals in developing road and bridge asset management plans. Visit www.purdue.edu/INLTAPor call toll free 1-800-428-7639 • LTAP approves asset management plans • Project(s) in application must be part of approved asset management plan(s) • Asset plans are living documents and should be updated as improvements are made • Transportation asset management plans must be completely updated every two years

  9. Eligible Projects • Road resurfacing and preservation (concrete overlay, rejuvenation, Ultra-thin bonded wearing surface, mill & overlay) • Bridge rehabilitation/maintenance or replacement, • Road reconstruction • Material cost for chip sealing and crack filing • Small structure and pipe replacements • Preservation type projects • Sidewalk work is eligible with minimum 1 ½ “ mill and overlay

  10. Not eligible • Railroad crossing upgrades • Water and sanitary sewer line replacements • Standalone sidewalk projects • Trails • Bike paths • Enhancement-type work, including: • Street lights • Street informational signs • Decorative pavers • Trees and plants • Trash receptacles • Gateway aesthetics • Preliminary engineering • Land purchasing • Utility relocation • Construction inspection • Labor or equipment costs for governments that perform their own force account work

  11. Multiple projects or communities • Submit as many applications as you’d like. • Governments can apply jointly for a project that crosses multiple jurisdictions • $1 million cap per local government per calendar year still applies • Bundled projects must be of same work type or treatment • INDOT scores each application separately • Rank/prioritize separate applications • Applications must provide: • A thorough description of project’s from and to points • Applications with vague locations/descriptions/incomplete applications will not be awarded funding

  12. Changes to 2018 program • The August call for projects will be the last call where INDOT will accept projects that have already been procured, completed or under construction. There will be “NO” more retroactive projects allowed after the August 2018 call. • ADA sidewalk and ramp work can only be done with a minimum of a mill and overlay. (Milling and overlaying is a process of grinding asphalt with a milling machine, removing the debris, and installing new asphalt. The overlay must be a minimum of 1 ½ inches • 2 calls for projects each calendar year as we move forward • January and July - 1 award per calendar year

  13. Changes to 2018 Program • Electronic Application • Must get registered in ITAP (Indiana Technical Assistance Program) to access application • Contact District LPA Program Director for instructions • Frequently Asked Questions paper on website.

  14. August Call for Projects • Call opens August 6, 2018 at 8:00 AM (EDT) • Closes September 28, 2018 at 5:00 PM (EDT) • Awards announced late October/Early November • If awarded funding - projects should be bid this winter • INDOT/LPA Contract must be in INDOT’s hands by March 1, 2019 • Date on contract cannot be over 30 days old • INDOT must receive accepted contractor bids/vendor bids and other proper documents by April 15, 2019 IF THESE DATES ARE NOT MET, ALL FUNDS ARE FORFEITED NO EXCEPTION!

  15. Other Important Dates • 2016 projects must be completed, closed out with INDOT before you can receive any future funding by August 15, 2018 • Construction on last year’s (2017) grants should be completed and closed out with INDOT by December 31, 2018 to be eligible for the January 2019 call • Only submit projects that will be under contract before April 15, 2019

  16. Program web page • Frequently Asked Questions • Program information • Instructions INDOT > Doing Business with INDOT > Local Public Agency Programs www.in.gov/indot/2390.htm

  17. Email and text updates Recommend each local government have more than one staff member sign up • Visit http://alerts.indot.in.gov • Submit your email address or wireless number • Select your regional district or statewide under LPA & Grants Administration and click submit

  18. Federal and state laws • Federal laws that apply • Permitting – DNR, IDEM, Corp of Army Engineers, etc. • Americans with Disabilities Act • Historic preservation • State laws that apply • I.C. 36-1-12 – Public works projects • I.C. 8-23-10 – Qualifications of bidders for contracts • I.C. 5-16-13 – Contractor requirements for public works projects Look up Indiana Code at General Assembly website, http://iga.in.gov

  19. Indiana Code 36-1-12 PUBLIC WORKS – construction, reconstruction, alteration, or renovation of a public building, airport facility or other structure that is paid for out of a public fund or special assessment The term includes the construction, reconstruction, alteration or repair of a highway, street, bridge, sewer, drain or other improvement paid out of public funds or special assessment. Also includes any public work leased with an option to purchase

  20. Qualification of bidders of contracts • A Public Works projects awarded after December 31, 2016, by a local unit. A contractor in any contractor tier is not required to be qualified under this chapter before doing any work on a public works project awarded by a local unit whenever: (1) the total amount of the contract awarded to the contractor for work on the public works project is less than three hundred thousand dollars ($300,000); and (2) the local unit complies with IC 36-1-12 in awarding the contract for the public works project. (3) Projects over $300,000 must have a pre-qualified INDOT contractor

  21. Categories of Projects • Categories of Projects (based on estimated cost) • Project cost < $50,000 • Project cost at least $50,000 / not more than $150,000 • Project cost > $150,000

  22. Public Works Projects < $50,000 • INDIANA CODE 36-1-12-5: • Shall invite quotes by mail from at least 3 persons known to deal in the type of work proposed to be done at least 7 days before the time fixed for receiving the quotes. • Quotes may be taken by fax or by phone if the project is less than $25,000 – the 7 day waiting period would not apply • Quotes shall be opened publicly • Award to lowest responsible and responsive quoter • Board may reject all quotes

  23. Public Works Projects < $50,000 SPECIAL RULES FOR ROAD, STREET OR BRIDGE PROJECTS For resurfacing of a road, street or bridge (1) the weight or volume of the materials in the projects is capable of accurate measurement and verification; and (2) the specifications define the geographic points at which the project begins and ends For the purpose of 36-1-12-5, if contiguous sections of road, street or bridge are to be resurfaced in a calendar year, all of the work shall be considered to comprise a single public work project.

  24. Public Works Projects > $50,000 but < $150,000 Indiana Code 36-1-12-4.7 • Almost identical to existing 36-1-12-5 • Invite quotes by mail from at lease 3 vendors 7 days prior • Receiving of quotes open to public and read aloud • Awarded to lowest responsible & responsive quoter • Board can reject all quotes

  25. Public Works Projects > $150,000 INDIANA CODE 36-1-12-4 • Plans and specifications required • Resurfacing roads, streets and bridges • Specs must show how weight & volume of materials will be accurately measured & verified • Advertise twice, at least one week apart, with the second advertisement at least 7 days before the bid opening • Financial statement, statement of experience, proposed plan for performing the work and equipment available are required • General Form 96 (Contractor’s Bid for Public Work ) must be used • www.in.gov/sboa Political Subdivisions / Counties/ Electronic Forms

  26. Public Works Projects > $150,000 • Board shall award the contract to the lowest responsible and responsive bidder • May reject all bids • If awarded to someone other than the low bidder, the board minutes MUST state the factors used to determine which bidder was the most responsible and responsive • Non-collusion affidavit A county may award sand, gravel, asphalt paving materials, or crushed stone contracts to more than 1 responsible and responsive bidder IF: The specifications allow for bids to be based upon the service to specific geographic areas and The contracts are awarded by geographic area

  27. Projects < $250,000 Using Own Workforce • INDIANA CODE 36-1-12-3 • Board ma perform the public work without awarding a contract • Must have staff capable of doing the work • Cost includes the actual cost of labor, materials, equipment, and rental, use of trucks and heavy equipment owned and all other expenses. • Projects over $100,000 – Board must hold a public meeting on the project • Must be inspected and accepted as would a contract

  28. Award of Contract – Notice to Proceed • Must be done within 60 days after bid opening • 90 days if financed by a general obligation bond or 150 days if financed by a revenue bond

  29. Bond or Certified Check Indiana Code 36-1-12-4.5 • Required from each bidder on all projects estimated to be more than $200,000 • Can be required on smaller projects • Amount may not be set at more than 10 % of the contract price

  30. Payment Bond • INDIANA CODE 36-1-12-13.1 • Required from each bidder on all projects estimated to be more than’ $200,000 • Can be required on smaller projects • Must be equal to the contract price

  31. Open Price Provision INDIANA CODE 36-1-12-8 • Road, street or bridge work projects may be awarded subject to the open price provisions under IC 26-1-2-305 • May provide that prices for construction materials are subject to price of material adjustment • Method of price adjustments must be specified in the contract • Does not authorize the expenditure of money above the total amount appropriated for contract

  32. Change Orders INDIANA CODE 36-1-12-18 • May be issued to add, delete, or change an item in the original contract • Becomes an addendum to the contract • Requires approval by board and contractor • Must be prepared by licensed architect or engineer, if one is assigned to the project • Total of all change orders cannot exceed 20% of the original contract amount • Change orders issued as a result of circumstances that could not have been foreseen do not increase the scope of the project

  33. Performance Bond INDIANA CODE 36-1-12-14 • Required on all projects $200,000 or more • Must be equal to the contract price • Can be waived for projects less than $250,000 but the contractor must then provide an irrevocable letter of credit for the amount of the contract • Actions against a surety on the bond must be taken within 1 year after final settlement with the contractor

  34. FINAL PAYMENT Indiana Code 36-1-12-12 • Withhold until contractor has paid subcontractors, material suppliers, laborers and those furnishing services • Claim forms must be signed by an individual from the political subdivision who is directly responsible for the project and can verify: • The quantity of a purchased item or • The weight or volume of materials applied for the road, street or bridge project.

  35. Payment of Claims Indiana Code 36-1-12-17 • Contract for road or street work must contain provision for timely payment of claims • Each contract must provide for final payment with 120 days after final acceptance and completion of contract • Final payment may not be made on amount in dispute, but may be made on amounts not in dispute • Each day after 120 days the contractor paid interest for late payment (12% annual rate on unpaid balance)

  36. EMERGENCIES INDIANA CODE 36-1-12-9 • Declaration of emergency of Board required • Once declared, a board may contract for a public work project without advertising for bids if bids or quotes are invited from as least 2 persons known to deal in the public work • Documentation in minutes is required

  37. Private Road Work (Specific to counties) INDIANA CODE 8-19-7 • Petition by resident taxpayer of county executive to use county highway equipment and employees for ditching, grading or hauling gravel on taxpayers premises • May be done if equipment being used in vicinity and not needed • County executive shall fix the charges for the work which may not be less than actual cost

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