In-Depth Federal Aid Project Delivery Workshop

1. In-Depth Federal Aid Project Delivery Workshop • Friday, November 13, 2009

2. Project Funding • Federal Funds (today and tomorrow) • Match Requirements • State Funds • 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 (today) (cont’d) • ARRA • Oregon received $334M • OTC approved projects to ODOT and Locals for $234M • Locals received remaining $100M through sub-allocation by ODOT or by federal requirement (three TMAs) • Through 10-30-09, $216M obligated for Oregon • Must obligate all funds by March 1, 2010

9. Federal Funds (tomorrow) • AKA as NEXTEA • See Travis Brower’s presentation

10. 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

11. 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

12. 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

13. 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

14. 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

15. State Funds (cont’d) • Jobs and Transportation Act of 2009 • AKA as HB 2001 • Increase baseline funding to help modernize Oregon’s transportation system • Funding comes from increase in registration and title fees and a .06/gallon gas tax increase • Split 50/50 between state and cities/counties • $960 million in projects earmarked by Legislature

16. 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

17. 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

18. 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

19. 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

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

21. 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

22. Questions?

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