Introduction to the Federal-Aid Highway “Reimbursement” Process

1. Introduction to theFederal-Aid Highway “Reimbursement”Process May 23, 2012

2. Workshop Agenda • Module 1: Roles and Responsibilities • Module 2: Key Elements of the Federal-Aid Highway Program • Module 3: Overview of the Federal-Aid Highway Project Process

3. Module 1 Roles and Responsibilities

4. Roles & Responsibilities • FHWA • NYSDOT • Local Agency

5. Roles & Responsibilities FHWA’s authority and oversight roles are defined in: • 23 USC & 23 CFR • FHWA/NYSDOT SAFETEA-LU Agreement, our authority for delegation • Chapter 2 of the Procedures for Locally Administered Federal Aid Projects (PLAFAP) Link to PLAFAP – Chapter 2, Page 14 https://www.dot.ny.gov/PLAFAP

6. FHWA’s Roles • Ensure the Federal-aid program accomplishes its purpose • Ensure Federal Laws, Regulations, and Standards are Met • Ensure that NYSDOT adequately administers the project • Project Funds Management Inactive Project; De-obligate orWithdraw

7. STEP 1 Plan and Identify Project STEP 14: Operate & Maintain Facility STEP 2: Obtain Project Funding STEP 13: Close Project Agreement STEP 3: Execute a Project Agreement Federal-Aid Highway “Reimbursement” Process STEP 12: Construct & Inspect Project STEP 4: Select and Hire Consultant STEP 11: Bid & Award Project STEP 5: Authorization to Proceed with Preliminary Design STEP 10: Authorization to Proceed With Construction STEP 6: Prepare Design Approval Document STEP 9: Prepare Contract Documents STEP 7: Authorization to Proceed With Detailed Design STEP 8: Acquire Property

8. NYSDOT’s Role • Determines eligibility Federal and State funding • Ensures projects are developed and constructed in full compliance with Federal requirements • Protects Federal/State investment on projects regarding the quality, safety and financial integrity of the project • Takes necessary corrective actions regarding the above

9. NYSDOT provides guidance and assistance to Sponsors thru… • The Procedures for Locally Administered Federal Aid Projects Manual (PLAFAP) https://www.dot.ny.gov/PLAFAP • The Regional Local Projects Liaison (RLPL) • Interprets regulations, manuals and guidelines • Monitoring • Completeness reviews • Consulting with NYSDOT Main Office and FHWA • Standard Federal-Aid Local Project Agreement • Periodic Program Update Meetings • Local Programs Bureau in the Main Office

11. https://www.dot.ny.gov/plafap

12. NYSDOT’s Key Project Responsibilities • Seek Federal authorization for each project phase, i.e., design, ROW, construction • Process Sponsor’s reimbursement requests • Approve design exceptions/non-standard features for work on/related to non-NHS State Highways and non-Interstate NHS • Grant design approval for projects on/related to non-NHS State Highways and non-Interstate NHS

13. NYSDOT’s Key Project Responsibilities (cont’d) • Approve Railroad and Utility Relocation Agreements • Concur with Contract Award Recommendation • Verify Sponsor’s final inspection and final acceptance of construction contract • Close out local agreement and make final payment

14. NYSDOT • Local Programs https://www.dot.ny.gov/divisions/operating/opdm/local-programs-bureau • State Aid CHIPS • Scenic Byways • Locally Administered Federal Aid Projects (LAFAP) • Local Projects GreenLites Program • Transportation Enhancement Program (TEP) • Safe Routes to School Program (SRTS) • Pedestrian Information • Biking Information • Industrial Access Program

16. National Highway System

17. Functional Classification https://www.dot.ny.gov/divisions/engineering/technical-services/highway-data-services/functional-class-maps

18. The Sponsor’s Role Responsible for front-ending all project costs Delegated responsibility for administering and implementing federal-aid projects Responsible for any work done by contract • Planning • Programming • Environmental Investigation • Design • Construction • Maintenance

19. Standard Federal-Aid Local Project Agreement • Between Sponsor and NYSDOT • Project specific • Describes project phase, funding and deposit requirements (Schedule A) • Describes allocation of responsibility (Schedule B) • Municipal/Sponsor Resolution • Approves project • Funding appropriation • Authorizes appropriate official to execute Agreement

20. Sponsor’s Role Initiates TIP/STIP Process Reviews and signs Master Agreement for NYSDOT’s approval and processing Requests Obligation of Funding NYSDOT

21. Sponsor’s key project decisions/activities • Getting the project into the STIP and authorized • Procuring and approving Consultant contracts • Preparing and submitting reimbursement requests • Performing/overseeing project design and environmental activities • Approving design exceptions/non-standard features on local roads/bridges

22. Sponsor’s key project decisions/activities • Preparing and submitting NEPA Class II automatic and programmatic categorical exclusion determinations to NYSDOT for concurrence • Making SEQR determinations • Granting design approval

23. Sponsor’s key project decisions/activities • Certifying and acquiring Right of Way (FHWA approval required if not completed prior to contract advertising) • Acquiring needed permits • Coordinating Railroad and Utility Relocation Agreements • Determining/approving DBE goals • Approving construction contract documents

24. Sponsor’s key project decisions/activities • Advertising and awarding construction contracts • Administering the construction contract • Performing/overseeing construction inspection • Initiating contract change orders • Accepting construction contract work

25. What Sponsor Needs to Know All Work Performed Prior to • Adding Project to TIP & STIP (excluding Emergency Relief Program) • Processing State-Local Project Agreement • Receiving an Authorization to Proceed From NYSDOT Is Ineligible for Federal Reimbursement

26. Fundamentals & Responsibilities • Program is based on laws, regulations and policies • FHWA is accountable for the Federal-aid Highway Program • NYSDOT assumes certain project responsibilities delegated by FHWA • NYSDOT/FHWA Oversight Agreement (EB 07-001) • SAFETEA-LU Design Related Approval Matrix (EB 08-001) • SAFETEA-LU Design Related Approval Matrix for Locally Administered Federal-Aid Projects (handout)

27. PLAFAP -Chapter 8Project Approvals Matrix

28. Sponsor Responsibility • Administering… • Contracts with Design Firms • Construction Inspection Teams • Construction Contracting Firms • Ineligible items are the responsibility of the Sponsor • The Sponsor is responsible even if a “hired hand” made the mistake

29. Two Key Documents to Ensure Success • Project Management Plan (PMP) • Chapter 2 of PLAFAP • Construction Management Plan (CMP) • Chapter 12 of PLAFAP

30. Project Management Plan (PMP) • Implementation strategy (a LIVING document) • Primary communication tool • Provides clear assignment of authority and accompanying responsibility • Assigns project manager, Schedule & Funding/Budget • Outlines milestones, products, reviews, approvals • Sample PMP in PLAFAP Chapter 2 Appendix https://www.dot.ny.gov/PLAFAP

31. Construction Management Plan (CMP) Outlines how contract will be administered Provides clear assignment of authority and accompanying responsibility Addresses procedures, record keeping, staffing, subcontractor approvals, EEO, inspection, change orders, contract close-out, etc. Approved by NYSDOT before contract advertising 31

32. Construction Management Plan Sponsor Must Develop a Written Management Plan Construction Management Plan Should Address Contract Administration Contract Documentation OOC Procedures Subcontractor Approvals Inspection QC/QA Labor Relations Civil Rights / EEO Record Retention Contract Closeout Any project specific issues 32

33. New requirements for CMP • PLAFAP Chapter 12 updated March 2011 • Appendix 12-3 includes sample CMP • Submitted as part of PS&E package • Reviewed and Signed at Pre-Con Meeting • CI Team – Supervisor • CI Team – Resident Engineer • NYSDOT Representative – RLPL • Sponsor

34. Learning Assessment Questions 1. What PLAFAP chapter addresses Roles and Responsibilities? 2. One of NYSDOT’s roles is to ensure projects are developed and constructed in full compliance with federal requirements. True or False? 3. All work performed prior to receiving an authorization to proceed from NYSDOT are eligible for federal reimbursement. True or False?

35. Learning Assessment Questions 4. Which of the following are some of the sponsor’s key project decisions/activity? A. Making SEQRA determination. B. Acquiring needed permits? C. Administers construction contract. D. All of the above 5. The sponsor is responsible even if a “hired hand” (Consultant, contractor, etc.) made the mistake. True or False?

36. Module 2 Key Elements of the Federal-Aid Highway Program

37. Objectives • Identify the key elements of the Federal-Aid highway program that you need to know • Identify contacts and sources of information for additional assistance

38. Key Program Elements • Reimbursement • Authorization • Eligible Costs • Planning • Environment • Right-of-Way • Contract Administration • Special Projects • Audits

39. Reimbursement • Reimbursement Program • NOT A GRANT • Federal Share Cannot Exceed 100% • Federal Share is 80% in most cases

40. Reimbursement Program (a range of monthly-quarterly) Contractor Does Work Local Agency Pays Contractor Local Agency Submits Bill to NYSDOT NYSDOT Reimburses Local Agency NYDSOT Submits Bill to FHWA FHWA Reimburses NYSDOT

41. Authorization • Formal contract defining the scope of work, and other project related commitments • Constitutes the Federal obligation to pay its share of the project costs for eligible items. • NO Authorization – NO Reimbursement • The Scope and location of the work accomplished must align with the Authorized scope and location.

42. Eligible Costs • Defined in highway law • Purpose and location • Some programs also defined in regulation • Federal-Aid eligible roads • For most funding categories, all public roads except local roads and rural minor collectors • For bridge and safety projects (data driven), all public roads are eligible for Federal-aid

43. EligibilityMajor Federal-Aid Programs • National Highway System (NHS) • Interstate Maintenance (IM) • Surface Transportation Program (STP) • Transportation Enhancements (TEP) • Highway Bridge Program (HBP)

44. EligibilityAdditional Federal-Aid Programs • Congestion Mitigation & Air Quality Improvement (CMAQ) • Highway Safety Improvement Program (HSIP) • Safe Routes to School (SRTS) • Discretionary • Bridge (HBD) • Ferry Boat (FBD) • Public Lands (HPL) • Interstate Maintenance (IM) • Transportation Community and System Preservation (TCSP) • High Priority • Others

45. Eligibility -- Laws • Highway Laws • Title 23 U.S Code, SAFETEA-LU and ??? • Highway Regulations – 23 CFR • Other Laws • NEPA, Civil Rights, Clean Air Act, Brooks Act, Copeland Act, Buy America, Americans with Disabilities Act, Wage Rate Acts, National Historic Preservation Act, etc………………………

46. Planning Pivotal Documents • Statewide • Long-Range Master Plan - 23 CFR 450.214 • STIP - 23 CFR 450.216 • MPO • Metropolitan Transportation Plan – 23 CFR 450.322 • TIP – 23 CFR 450.324

47. Federal Environmental Laws &Executive Orders Affecting Transportation 70 EO13148 TEA-21 EO13186 EO13061 EO13112 60 EO13007 EO13089 SNRTA SDWA CAA EO12898 CZARA ISTEA STURAA ADA 50 URA NAGPRA EWRA STURAA HSWA CWA FPPA SDWA ANILCA CBRA 40 ARPA LAA CUMULATIVE NUMBER OF LAWS AND AMENDMENTS EO11990 CERCLA CWA EO11998 MSFCMA CAA SDWA RCRA 30 CZMA FNWA WBA ESA RRA CWA EAA URA CAA NEPA 20 FAHA WSRA 4(f) FAHA HBA FAHA CAA NHPA AHPA 10 FIFRA SWDA FWCA MBTA CRA AA WA RHAA LWCF CAA HSBAA 0 1890 1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 YEAR

48. Environment • Purpose - Need • Alternatives • Impacts • NEPA Classification (CE, EA or EIS)

49. EnvironmentNEPA • National Environmental Policy Act of 1969 • Intended to… • Prevent or eliminate damage to the environment • Stimulate the health and welfare of mankind • Enrich the understanding of ecological systems and natural resources important to the nation

50. Environment • NEPA Classification of Actions • Class I - Environmental Impact Statement/Record of Decision (EIS/ROD) • Class II - Categorical Exclusion (CE) • Class III - Environmental Assessment/Finding of no significant impact (EA/FONSI)