Transportation Enhancement Guidelines

CHAPTER 3 – PROJECT IMPLEMENTATION

There are two phases involved in project implementation: 1) the project development/preliminary engineering phase; and 2) the project construction/completion phase. After an enhancement project is approved for funding and incorporated in the Statewide Transportation Improvement Program (STIP) the CDOT Region and the local agency initiate a detailed sequence of events to complete the project. CDOT’s main objective is to assist project applicants in successfully completing their project with minimal administrative oversight, while ensuring they satisfy all federal and state requirements.

Phase 1 – Project Development/Preliminary Engineering:
A. CDOT/Applicant Agreement - CDOT prepares a project agreement detailing the responsibilities of CDOT and the applicant for the completion of the project. The agreement is developed by CDOT in consultation with the applicant and covers all phases of project work described in the approved application. The local agency will not be reimbursed for any charges incurred by the local agency prior to the execution of the CDOT/Applicant agreement.
B. Applicant/Consultant Agreement - The applicant may hire a consultant(s) to design and/or administer the construction of the project. This option is available using CDOT’s consultant selection process or, the applicant may use its own consultant selection process with approval from the CDOT Region. CDOT approval must be made before the consultant is selected.
C. Environmental Process - Each applicant must ensure that the environmental consequences of its Transportation Enhancement project are adequately considered, and that required mitigation measures can be completed within the time frame and budget specified in the application. CDOT expects environmental impacts to be minimal for most enhancement projects. Environmental clearance must be coordinated with the CDOT Transportation Enhancement Program Manager prior to notice to proceed into construction. CDOT requires this federal environmental review before Enhancement Program funds are released. Assistance with meeting environmental requirements is available from CDOT. Projects with environmental impacts that can not be mitigated are not approved for Transportation Enhancement Program funding.
D. Right-of-Way Process - All right-of-way purchased with Transportation Enhancement Program funds must be acquired in compliance with the Federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. Agencies planning to use Transportation Enhancement funds for right-of-way acquisition, including construction, must follow the procedures outlined in CDOT’s Federal and State Regulations on Right-of-Way Acquisition and Relocation. Before Transportation Enhancement funding is authorized for right-of-way purposes, CDOT must review and approve a set of right-of-way plans that include legal descriptions and topographic features for all land acquisitions, a relocation plan, if applicable, and project cost estimates. The local agency may acquire right-of-way using their own funds prior to the construction project. The local agency must provide documentation of right-of-way clearance prior to advertising the project in order to significantly reduce paperwork, staff time and reporting requirements.
Use of Consultants for Right-of-Way Services - The applicant may use consultants for appraisal, right-of-way acquisitions, and relocation assistance on federal aid projects, if the consultants are included on CDOT’s pre-qualified list, and with the approval of the CDOT Staff Right-of-Way Manager. CDOT’s Right-of-Way Branch must review and approve contracts with consultants for federal contracting requirements. However, CDOT does not normally allow the use of consultants for appraisal review and the preparation of relocation determinations. CDOT and FHWA must approve exceptions in writing on an individual project basis.
E. Railroad Right-of-Way/Utility Agreements and Public Utility Commission (PUC) Applications - CDOT requires these agreements and applications if the applicant’s project affects a railroad or a utility or requires railroad right-of-way. The applicant initiates and coordinates meetings to resolve any conflicts, and arrives at a mutually satisfactory agreement with the railroad, utility, or right-of-way representative. The CDOT Region furnishes standard agreement packages with instructions to any applicant requesting this information and must concur with any agreement. Negotiation of agreements may require an extended period of time and should be considered in the scheduling of the process.

6. 
   Funding Authorization - CDOT may authorize funding in phases that may be used for preliminary engineering through final design, utilities, construction, and right-of-way. CDOT prepares the necessary paperwork to initiate the funding process concurrently with preparation of the CDOT/Applicant Agreement. Funds spent by the applicant before CDOT authorization is obtained are not eligible for reimbursement, unless specifically approved by the FHWA.
   

7. 
   Design – The applicant may be required to have professional personnel on its staff, or under contractual agreement, who are in charge of their project and preparations of design or engineering plans. The professional personnel may consist of: an architect certified by the Colorado Board of Examiners of Architects, a historian, an architectural historian, or a professional engineer certified by the State Board of Professional Engineers and Land Surveyors.
   

The professional engineer seals construction plans in accordance with state and federal laws, rules and procedures. Occasionally, the stamping of plans by a registered professional engineer may not be required. The CDOT Region, in consultation with the applicant’s project manager, makes this decision. All projects involved with the rehabilitation or preservation of historic buildings, structures or sites, must be coordinated with and receive written approval from the State Historic Preservation Officer.

The applicant’s project manager is responsible for coordinating all project-related activities with CDOT, including the status of the project plans. However, the CDOT Headquarters Staff Bridge and Staff Design offices will not review bridge plans for projects administered by a local agency, unless the structure is within, or has an impact on, federal or state right-of-ways, or unless CDOT is designing the project. This does not preclude the CDOT Headquarters Staff Bridge or Staff Design offices from initiating a project review of a local agency administered federal aid project, if during project development, they became aware of an obvious design deficiency that impacts the safety of the public. The CDOT Region has final approval authority for plans submitted for advertisement and construction.
Federal requirements state that one-tenth of one percent of federal funds allocated for landscaping projects will be invested in wild flowers. This requirement is easily met by mixing wild flowers in the seeding mix.

8. 
   Bid Package - The bid package contains a confidential cost estimate, a set of plans, project specifications, and other supporting documents. The CDOT Region may authorize the local agency to administer the bid package after ensuring that the local agency’s bidding procedures meet federal regulations. These regulations include complying with the Davis-Bacon wage rates, Equal Employment Opportunity (EEO) laws, the National Environmental Policy Act (NEPA) of 1960, and Disadvantaged Business Enterprise (DBE) laws as applicable. Generation of bid items used for estimating purposes should meet CDOT specifications and standard bid items. CDOT will furnish applicable bid item information to the applicant for developing project cost estimates. A review of the final cost estimate before completion of the bid package is at the discretion of the CDOT Region. Projects are advertised, usually for three (3) weeks, soliciting contractor participation in submitting a bid. The local agency may request CDOT to administer the bid package. Contact the CDOT Transportation Enhancement Program Manager for further information.
   

Local Agency Certification Acceptance (LACA) - An applicant already certified by CDOT to administer its own projects under LACA procedures may use these procedures to administer Transportation Enhancement projects. LACA procedures allow an agency to administer its federal aid projects with minimal CDOT oversight after the agency has passed CDOT’s requirements for certification. A qualified agency certifies to CDOT that a project will be developed, bid and constructed under all applicable state and federal regulations.
I. Awards – The CDOT Region reviews the awarded bid and then the local agency issues a Concurrence to Award to the contractor. Projects can not begin until the Concurrence to Award is issued. Any funds expended by the applicant prior to receipt of the Concurrence to Award are not eligible for reimbursement.
Phase 2 – Project Construction/Completion:
A. Planning and Feasibility Studies - Projects that do not lead to construction or program implementation in the near future are not eligible for Transportation Enhancement Program funds. Regular STP funds and other funds are available for transportation and system planning activities.
B. Construction/Rehabilitation/Restoration Projects - Each applicant is responsible for administering its own construction, rehabilitation or restoration enhancement project. The applicant may use its own professional engineer(s), architects, historians, architectural historians, or use consultant services. Final project construction acceptance is the responsibility of the CDOT Region. The CDOT Region designates a project manager to assist the applicant as needed, and to monitor project construction for compliance with applicable CDOT, FHWA, or Secretary of the Interior Standards and Materials Testing Requirements. The CDOT Region reviews and approves any contract revisions or modifications proposed by the applicant or its consultant.
C. Methods of Construction – “Force Accounts” - Normally, actual construction of a Transportation Enhancement project is performed under a contract awarded to the lowest responsible bidder. Under some circumstances, an applicant may find it in the public interest to justify restoring or rehabilitating a structure, constructing a portion of, or constructing an entire project on a force account basis. The term "force account" means the direct performance of project work by an entity using labor, equipment, and materials furnished by them and used under their direct control. If the applicant demonstrates that using a force account costs less than letting a contract, the CDOT Region may approve the use of force account based on a formal Finding in the Public Interest (FIPI) justification which is prepared and entered into the project records.
It may be found in the public interest for a local agency to undertake a Transportation Enhancement project by force account when a situation exists in which the rights and responsibilities of the community at large are so affected, as to require some special course of action. Situations considered in support of any request for a FIPI include the following:

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  Bids affected by an insufficient number of qualified contractors in the area,
  
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  Special construction conditions indicating that all bids submitted are unreasonably high, and
  
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  Special situations where time does not allow for completion of the process leading to a contract award. Considerations might be safety, special local agency budgeting requirements, etc.
  

An eligible federal aid local agency construction project must include an end result product (i.e., a bicycle/pedestrian trail). However, this does not preclude the authorization of a project with federal funds participating in only part of the work (i.e., the cost of the materials). The CDOT Region must concur in a FIPI justification before CDOT authorizes an applicant to complete a project, or any portion of a project, by the force account method.

D. State Certification – The CDOT Region certifies to FHWA that the completed Transportation Enhancement project complies with all applicable state and federal requirements. The local agency or its consultant accomplishes the direct administration of each project. The CDOT Region monitors the Project Completion/Construction Phase with no additional charge to the applicant's project budget.

5. 
   Applicant Billings - Upon receipt of the local agency’s Concurrence of Award, the applicant charges eligible costs to their Transportation Enhancement project. Billing charges are submitted once a month to the CDOT Region. Ten percent (10%) of monies due to the applicant are retained by CDOT until final completion and acceptance of the Transportation Enhancement project by CDOT. This retainage is a standard procedure on CDOT projects and insures that local agencies submit all billings, invoices and related documentation to CDOT in a timely manner.
   

5. 
   Advance Payment Options – A new provision under TEA-21 allows for an advance payment option for Transportation Enhancement activities when necessary to make prompt payments for project costs. The Advance Payment Option is only available to projects which are strictly construction, and do not include activities such as preliminary engineering, right-of way acquisition or design. The following provisions apply:
   

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  Advances are limited to Transportation Enhancement projects that are funded from the 10 percent set aside of STP funds for Transportation Enhancement activities.
  
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  The advance is considered a working capital advance and limited to the estimated amount needed for one billing cycle. The local agency then bills the State for costs incurred. The advance is netted out at the time of the final billing.
  
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  To reduce administrative burden, projects with a federal share under $25,000 which are completed in less than one year, may receive an advance for the full amount of the federal share.
  
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  Agreements to provide for the use of this option are developed through the cooperative effort of the CDOT Region and the FHWA division office.