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In-Depth Federal Aid Project Delivery Workshop

In-Depth Federal Aid Project Delivery Workshop . Friday, April 17, 2009. Project Funding. Federal Funds (today and tomorrow) Match Requirements State Funds Legislative Package Special Programs Summary. Federal Funds (today). SAFETEA-LU

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In-Depth Federal Aid Project Delivery Workshop

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  1. In-Depth Federal Aid Project Delivery Workshop • Friday, April 17, 2009

  2. Project Funding • Federal Funds (today and tomorrow) • Match Requirements • State Funds • Legislative Package • Special Programs • Summary

  3. Federal Funds (today) • SAFETEA-LU • Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users • Enacted August 10, 2005, as Public Law 109-59. SAFETEA-LU authorizes the Federal surface transportation programs for highways, highway safety, and transit for the 5-year period 2005-2009.

  4. Federal Funds (today) (cont’d) • Different Categories (sometimes referred to as “colors of money”) • Formula Limitation (vs. Apportionment) • Receive annually • Used on most projects • Earmarks • Project specific funding • From SAFETEA-LU (set record for earmarks) • 6400 earmarks totaling $23 billion • Funds paid out over life of Act

  5. Federal Funds (today) (cont’d) • From Annual Appropriations Bill • Should be “obligated” in the year received • Federal funding provided on a reimbursement basis • Must spend a dollar to get back .89

  6. Federal Funds (today) (cont’d) • Federal Discretionary Programs US DOT now has very few true discretionary programs • Emergency Relief • Highways for LIFE • Scenic Byways • Covered Bridges • Value Pricing Pilot Program • Truck Parking Facilities

  7. Federal Funds (today) (cont’d) • Programs With Local Components • Surface Transportation Program • Highway Bridge • CMAQ • Planning • Forest Highways • Rail-Highway Grade Crossings • High Risk Rural Roads • Safe Routes to School • Transportation Enhancement • Recreational Trails

  8. Federal Funds (tomorrow) • AKA as NEXTEA • On 7-29-08, USDOT Secretary Peters unveiled a new approach for America’s Transportation Future • “Without a doubt, our federal approach to transportation is broken” • Must refocus, reform, renew • Focus on maintaining and improving the Interstate highway system • No more diverting funds for wasteful pet projects

  9. Federal Funds (tomorrow) (cont’d) • Address urban congestion • Create a Metropolitan Innovation Fund • Reward cities willing to combine a mix of effective transit investments, dynamic pricing of highways and new traffic technologies • Greater flexibility to state and local leaders to invest in their most needed transit and highway priorities • Reduces over 102 federal transportation programs into eight comprehensive, intermodal programs • Refocus and redouble emphasis on safety • Cut down the 13 year average it takes to design and build a new highway

  10. Federal Funds (tomorrow) (cont’d) • Find new revenue sources to supplement the unpredictable and unsustainable gas tax • Tolling, tax on miles driven, etc. • Five states can opt out of federal program • USDOT slides

  11. Federal Funds (tomorrow) (cont’d) • A copy of the reform plan is available at www.fightgridlocknow.gov

  12. Match Requirements • Most federal funds require non-federal funds as match • Match can come from several sources • Cash • Check • Local Government Investment Pool (LGIP) • Irrevocable letter of credit

  13. Match Requirements (cont’d) • Donations (must obtain prior approval in order to qualify) • Cash • Materials • Services • Real property • Six point criteria • Timing of match (as per IGA and AOC/LOC agreement) • Must be provided in advance of PE or ROW phases

  14. Match Requirements (cont’d) • Will receive request for advance deposit when phase of work ready to commence • Amount is provided to Highway Program Office (HPO) from Local Agency Liaison (LAL) who then makes the request • Construction phase requires 110% of engineer’s estimate and receipt must be prior to award • May request any excess funds after award of contract

  15. Match Requirements (cont’d) • Use of match • As expenditures come in, federal funds and associated match funds are used • Match will be used incrementally over life of project phase • At end of project phase, any unused funds are returned

  16. State Funds • Oregon Transportation Investment Act (OTIA) • Legislative authority given to ODOT to issue bonds for transportation needs • I/II/III • Modernization, Preservation, Bridge • State and Local projects received funding • Must be spent within a specified time frame • Project specific funding • Approvals/changes by Committee

  17. State Funds (cont’d) • Non-bonded funds • Derived from license and registration fees, gas taxes and weight-mile taxes, etc. • Shared with Counties and Cities • www.oregon.gov/ODOT/CS/FS/docs/HwyRev_apport/apport_fy09.pdf • Work must be gas-tax eligible • Used as match for federal projects • Stand alone projects

  18. Legislative Package • Governor introducing the Jobs and Transportation Act of 2009 • Raise a billion dollars per biennium to modernize Oregon’s transportation system through a modest increase to the gas tax (.02/gallon), an increase in registration and title fees and a first-time title fee on vehicles new to the state • www.oregon.gov/DAS/BAM/docs/Publications/GRB0911/2009_11GRB_Summary.pdf

  19. Special Programs • Fund Exchange • Trading in federal dollars for state dollars • .94 exchange rate • Provide funding for specific roadway projects, including pavement preservation programs, match for federal-aid projects, and repayment of bonds and loans on eligible projects • May be used for specific maintenance purposes: • Purchase or Production of Aggregate • Used exclusively for highway work

  20. Special Programs (cont’d) • Purchase of Equipment • Must only be used for highway purposes • Special City Allotment • Annual program funded with $1M state highway funds • For use upon city streets that are within cities with populations of 5,000 or less • $25,000/project • Can receive half the funds up front

  21. Special Programs (cont’d) • Special County Allotment • Annual program funded with $1M state highway funds • For counties with a road funding deficit • Used only for maintenance, repair and improvement of existing roads • Free Bridge Design • For the ten counties with the lowest dedicated road funding

  22. Special Programs (cont’d) • Annual calculation • Upon request, plans and specifications for bridges or culverts shall be provided by ODOT without cost

  23. Summary • Project can be funded with any funding source previously mentioned • Either as a sole source or any combination • Don’t start work on federal project until approval given • Important to not only know how a project funded, but also if specific work within the project will have specific funding

  24. Questions?

  25. Contact Information • Steve Leep • Program and Funding Services Manager • Highway Program Office • (503) 986-4453 • steve.r.leep@odot.state.or.us

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