Project Delivery
A transportation project has been "delivered" once it's been funded
and programmed, and the funds have been obligated. SACOG assists project
sponsors in several important ways in making sure that their projects
get delivered. First, funds are applied for, then they are programmed,
or linked to a particular project. The next phase is allocation. Allocation
allows a project sponsor to spend money on a project with a guarantee
that they will be reimbursed. Typically, funds are allocated on an
incremental basis for environmental & engineering, right-of-way
acquisition, and construction. When Caltrans or the California Transportation
Commission makes an allocation, it allows programmed projects to incur
costs for later reimbursement. Funds must then be obligated, which
means that the project sponsors have received approval from federal
agencies to proceed with the project and receive funds. This is particularly
important, as many funds have "use it or lose it" provisions that
require the funds to be obligated by a certain deadline. If the funds
are not obligated, the sponsor risks losing the money.
The California Assembly passed AB
1012 to ensure that transportation funds are obligated in a timely manner. This
bill was drafted in response to the large balance in the State Highway Account
fund. These funds had been accumulating for many years, because local project
sponsors could not get the funds obligated quickly enough.
SACOG's project delivery effort includes assisting project sponsors
with project scoping, environmental analysis design engineering,
right-of-way and construction phases as they proceed with implementation.
In cooperation with the project sponsors, SACOG will track projects
and make sure that appropriate funding is available to ensure project's
timely completion. In addition, SACOG will provide project status
reports to the Board, local agencies and the state
SACOG has developed a policy on
the timely use of funds, known as the "Use it or Lose it
Policy."
As an aid to local agencies, Caltrans has prepared a memo
identifying common procedural errors in the federal-aid process which can cause
project delays and loss of federal funds. Project sponsors may find it useful
to review "Twelve Procedural Errors That Can Result in
the Loss of Federal Transportation Funds".
For more information contact Olin Woods.
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