HomeMy WebLinkAboutReso 123-1997RESOLUTION NO. 123-97
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING A COMPREHENSIVE AGREEMENT
BETWEEN BART AND THE CITY OF SOUTH SAN FRANCISCO
WHEREAS, the City of South San Francisco and BART staff have prepared an agreement
related to the construction of the proposed BART facilities in South San Francisco; and
WHEREAS, the City of South San Francisco and BART desire to enter into an agreement
establishing the responsibilities of each party with regard to the construction of said BART facilities.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of South San
Francisco that it hereby approves the comprehensive agreement, attached hereto as Exhibit A, between
the City of South San Francisco and BART, subject to City Attorney review and approval.
BE IT FURTHER RESOLVED that the City Manager is authorized to execute the Agreement on
behalf of the City.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the City
Council of the City of South San Francisco at a regul ar meeting held on the 22nd day of
October ,1997 by the following vote:
AYES: Councilmembers James L. Datzman,
Mayor Joseph A. Fernekes
NOES: Councilmembers John R. Penna and
ABSTAIN: None
ABSENT: None
ATTEST:
J :\WPD\MNRSW\405\01 \RESO\AUG97\BART.RES
Eugene R. Mullin and
Robert Yee
EXHIBIT A TO RESOLUTION NO. 123-97
COMPREHENSIVE AGREEMENT
BETWEEN
THE SAN FRANCISCO BAY AREA RAPID TRANSIT DISTRICT
AND THE CITY OF SOUTH SAN FRANCISCO
RELATING TO THE BART/SFO AIRPORT EXTENSION
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SECTION 1:
SECTION 2:
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SECTION 6:
SECTION 7:
SECTION 8:
SECTION 9:
SECTION 10:
SECTION 11: '
SECTION 12:
SECTION 13:
SECTION 14:
SECTION 15:
SECTION 16:
SECTION 17:
SECTION 18:
SECTION 19:
SECTION 21:
SECTION 22:
SECTION 23:
SECTION 24:
SECTION 25:
SECTION 26:
SECTION 27:
AFFIRMATION OF RECITALS AND OPERATIVE DATE ............... 5
DEFINITIONS ........................................................................................ 5
PURPOSE OF THE AGREEMENT ....................................................... 8
SPECIFIC MITIGATION MEASURES ................................................. 8
PROJECT FEATURES ......................................................................... 13
GENERAL COMMITMENTS ............................................................. 14
CITY INFRASTRUCTURE ................................................................. 22
TRAFFIC MAINTENANCE AND DETOURS ................................... 30
CONSTRUCTION SITE FENCING .................................................... 31
EROSION CONTROL PLAN ............................................................ 32
CONTRACT DOCUMENTS INDEMNITY ...................................... 32
DESIGNATED AGENT OF THE PARTIES ..................................... 33
INDEMNIFICATION .................................................... ..................... 33
INSURANCE ...................................................................................... 34
WARRANTIES ................................................. i ................................. 34
RESOLUTION OF DISPUTES .......................................................... 35
NOTICES ............................................................................................ 40
PARTIES NOT CO-VENTURERS .................................................... 41
FURTHER ASSURANCES, TIME PERIODS AND RECORDS ..... 41
HEADING AND TITLES ................................................................... 43
APPLICABLE LAW ........................................................................... 43
SEVERABILITY ................................................................................ 43
BINDING UPON SUCCESSORS ...................................................... 44
REMEDIES NOT EXCLUSIVE ........................................................ 44
FORCE MAJEURE ............................................................................. 44
INTEGRATION .................................................................................. 45
This is a Comprehensive Agreement ("Agreement") between the City of South San
Francisco, a general law city of the State of California ("City") and the San Francisco
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Bay Area Rapid Transit District, a public transit district ("BART") (collectively, the
"Parties"). This Agreement is entered into this ~ day of 1997 (th,e
"Effective Date").
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RECITALS
BART has adopted as a project an 8.2 mile extension of its existing electric
powered, heavy rail regional transit system from the existing Colma Station to a
terminus station in Millbrae. BART intends to construct and operate this
extension, known as the BART-San Francisco Airport Extension (the "Project").
BART, along with its co-lead agencies, the San Mateo County Transit District
("SamTrans") and the Federal Transit Administration ("FTA"), has completed a
final environmental impact report/final environmental impact statement
("FEIR/FEIS") for the Project and has adopted a mitigation monitoring and
reporting plan ("MMRP") which includes mitigation measures in the City. As
part of the FEIR/FEIS process, the City reviewed the environmental documents
and provided comments and suggestions on and proposed revisions to the
Project. In addition, BART and the City have further consulted regarding the
Project. BART has incorporated many of the City's comments into the design,
engineering, and mitigations of the Project.
The City desires to cooperate with BART to facilitate the construction and
operation of the Project. BART and the City desire to memorialize the
interagency cooperation and consultation between the Parties in this
Comprehensive Agreement.
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The Parties acknowledge that the Project is funded in part with funds made
available by the Federal Transit Administration. Accordingly, this
Comprehensive Agreement and the obligations imposed on the Parties hereby
shall be interpreted in a manner consistent with both Federal and State laws and
regulations.
The Parties acknowledge that BART and SamTrans have entered into, and may
in the future enter into, various agreements with respect to the Project or portions
of the Project. To the extent that such agreements affect the obligations of this
Agreement, BART will obtain the necessary approval and/or concurrence by
SamTrans.
The locations of certain elements of the Project are expected to require the use of
certain City streets for hauling operations during construction of the Project.
BART and the City acknowledge that it will be necessary to develop procedures
to ensure careful and continued cooperation between the Parties, including the
following: (1) procedures for finalizing any necessary design and construction
options relating to City Infrastructure; (2) procedures to avoid all unnecessary
delays to either the contracting or construction process; and (3) procedures for
inspecting the construction, relocation, and replacement, as necessary, of City
Infrastmcture.
The parties recognize and agree that this Agreement may not reasonably
anticipate all aspects of the Project and changes thereto which may occur due to
unforeseen circumstances. Accordingly, the Parties acknowledge their respective
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obligations to act reasonably and in good faith and to modify the terms hereof
when necessary to accomplish their mutual goals.
SECTION 1: AFFIRMATION OF RECITALS AND OPERATIVE DATE
BART and the City affirm that the above recitals are true and correct. The obligations
imposed pursuant to this Agreement shall not become operative unless and until the
Project has executed its Full Funding Grant Agreement ("FFGA") with the Federal
Transit Administration, with the exception that BART may, prior to execution of the
FFGA, wish to acquire certain properties, demolish certain buildings, and modify or
relocate certain utilities within the City. In the event that BART purchases or
demolishes said buildings and/or modifies or relocates said utilities prior to execution of
the FFGA, BART and the City agree that the terms of this Agreement concerning such
work shall become operative. In the event that BART acquires property within the City
prior to execution of the FFGA, but does not utilize said property for the Project, BART
agrees to provide the City with the fight of first refusal, at fair market value, to purchase
such property.
SECTION 2: DEFINITIONS
The following definitions relate to such terms found in the entire Agreement, including,
without limitation, all Exhibits hereto.
A. "BART" See "District."
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"Betterment" The replacement of any City Infrastructure with infrastructure of
greater capacity, durability, or efficiency than the one replaced, unless such
replacement is required by the Project.
"Bid Package" The Invitation to Bid, Instructions to Bidders, Forms for the
submittal of Bids, and all other documents provided to prospective Bidders.
"CEQA" The California Environmental Quality Act, Public Resources Code
Section 21000, et.seq.
"City" The City of South San Francisco, its officers, employees, agents, and
contractors.
"City Infrastructure" City streets (including curbs, gutters and sidewalks),
traffic control devices, storm drains, sanitary sewers, water lines, hydrants,
electroliers, landscaping, irrigation systems, and all other public facilities and
appurtenances.
"Contract Documents" The executed Contract; Contract Drawings; Contract
Book; Construction Drawings and Construction Specifications (to be developed
by the Contractor and approved by the District); design criteria; Contract Bonds;
Addenda; Change Orders; and additional documents incorporated by express
reference into the Contract.
"District" or "BART" The San Francisco Bay Area Rapid Transit District, its
employees, agents, consultants, and contractors.
"FEIR" The Final Environmental Impact Report for the Project certified by
BART and SamTrans on June 1 $ and 19, 1996, respectively.
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"FEIS" The Final Environmental Impact Statement for the Project approved
by the Federal Transit Administration on August 30, 1,996.
"FSRO Specific Plan" The Project Fire Suppression and Rescue Operations
Specific Plan being developed by BART and, among others, the City for the
construction and operations phases of the Project.
"FTA" The United States Department of Transportation, Federal Transit
Administration.
"MMRP" The Mitigation Monitoring and Reporting Plan for the Project
adopted by the BART and SamTrans Boards of Directors on June 18 and 19,
1996, respectively.
"MTC PCI Index" The Pavement Condition Index set forth in the December
1988 Metropolitan Transportation Commission Pavement Management System
Users Guide.
"Parties" The City and BART.
"Plans and Specifications" Drawings, documents, plans, specifications, general
and special conditions, and related construction documents for the "Project."
"Project" The Alternative VI Aerial Design Option described in the FEIR,
consisting of an extension of BART's tracks south from Colma to the San
Francisco International Airport and Millbrae with a station located in South San
Francisco, as adopted by the BART Board of Directors. From the City limits,
just north of the Proposed subway station at the future extension of Hickey
Boulevard, the alignment will continue in a subway box within the Southern
Pacific Transportation Company right-of-way to South Spruce Avenue, passing
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under Colma Creek, Chestnut Avenue, Twelve Mile Creek, and Orange Avenue.
South of Spruce Avenue the Project subway alignment shifts east into the San
Francisco Water Department right-of-way.
"ROD" The Record of Decision issued by the Federal Transit Administration
for the Project on August 30, 1996.
"SamTrans" The San Mateo County Transit District.
"SFIA" The San Francisco International Airport.
"Standard Specifications" The standard construction details, drawings, general
and special conditions, and construction methods usually and customarily
utilized by the City for public works projects.
SECTION 3: PURPOSE OF THE AGREEMENT
The purpose of this Agreement is to memorialize the Parties' consultation and
cooperation, define the respective rights and obligations, and ensure cooperation
between BART and the City in connection with construction of the Project.
SECTION 4: SPECIFIC MITIGATION MEASURES
CEQA requires that each significant adverse environmental impact of a project be
identified in the Project's Environmental Impact Report and that feasible mitigation
measures or alternatives be identified and implemented. The FEIR identifies each
significant environmental impact of the proposed BART-San Francisco Airport
Extension. The mitigations set forth in Paragraphs A through K, below, are not intended
to constitute a comprehensive list of mitigations, but are described in this Agreement
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because they are of particular concern to the City. A comprehensive list of mitigations
associated with the Project is set forth in the MMRP. BART shall comply with and
implement the requirements of the MMRP. Should the City determine that, in its
estimation, BART has failed to implement the MMRP requirements, the City may
invoke the dispute resolution procedure set forth in Section 16 of the Agreement to
resolve any dispute between the City and BART as to BART's compliance with the
MMRP requirements.
A. The South San Francisco Station is within the FEMA-designated 100-year
floodplain. Construction of this BART station, parking lots, and access roads
would require that fill be provided to cover an area currently designated as a
floodplain. The drainage system improvements to be made are described as
Alternative II in the Reimer Associates Colma Creek Improvements Validation
Study (February 1995), with funding contribution from the San Mateo County
Flood Control District. A summary of the plan is described at pp. 3.8-10 and
3.8-11 of the FEIR. BART will provide the Bid Package which includes the
Colma Creek improvements to the City for review and comment prior to
awarding the contract for such work. BART will ensure that the San Mateo
County Flood Control District has been given the opportunity to assist in the
formulation of acceptable design specifications for minimum safe elevation in
areas where undesignated but known flooding occurs.
B. Removal and reconstruction of the arched, cut-stone bridge in South San
Francisco as follows:
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Prior to removal of the bridge, record it as part of the National Park Service's
Historic American Engineering Record.
The southern visible headwall of the bridge will be dismantled under the
supervision of an expert professional stonemason, and pieces will be numbered
so that they can be reassembled with the original placement of stones under the
direction of the stonemason. Reassemble covered northern headwall, if it exists,
and reestablish visibility as feasible. Stones that are found but cannot be
included in the reconstructed bridge will be donated to a historic group.
Construct a new bridge of cOncrete in compliance with current engineering
standards and codes. Return the original headwall to its original position.
Provide a marker or display identifying the bridge location and its historical
significance.
Construction of the subway structure will require bracing the earthen side walls
before placing the concrete forms. Typically, impact pile drivers are used to
drive soldier piles and lagging is inserted to retain the earthen side walls.
Significant noise and vibration impacts from unshielded pile drivers could occur
at various locations in the City. Implementation of one of the following
measures would reduce noise and vibration impacts to an insignificant level:
(1) In many instances, holes can be pre-drilled which reduces the force
necessary to install piles and decreases the duration of noise and vibration
exposure as well as the noise and vibration level.
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(2)
(3)
(4)
(5)
Cast-in-drilled-hole piles will be used where soil cOnditions permit.
Soil-mix wall technology will be used where it is cost effective.
Shielded pile drivers will be used only where it is possible to meet
BART's noise and vibration criteria.
Vibratory pile drivers with shielding will be used only where it is
possible to meet BART's noise and vibration criteria.
BART will construct temporary noise barriers to the appropriate height(s) (likely
to be from 8 to 12 feet) to reduce noise impacts to or below the Project noise
criteria at the following locations within the City: Treasure Island Trailer Court;
Lagomarsino Farm District; Sunshine Gardens neighborhood along the west side
of Mission Road; mobile homes in Red Arrow Trailer Park; residences in the
area between South Spruce and West Orange Avenues (Mayfair and Town of
Baden neighborhoods); residences on Antoinette Lane (Orange Park
neighborhood); and the Los Cerritos Elementary School. BART will track
complaints regarding noise to ensure that the mitigation is being implemented.
BART will classify Kaiser Hospital as a "special zone" with appropriate noise
level and construction time restrictions to be defined and included in the Contract
Documents.
BART will retain a qualified independent environmental consultant to monitor
construction noise and vibration to assure compliance with the Project's
construction noise and vibration criteria. BART will verify in the field that the
Project's construction noise and vibration criteria are met.
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The City will provide BART with a list of preferred trees to be planted in the
Station area. From the list of preferred trees, BART will select and pi .ant street
trees with full canopies to reach a height of approximately 30 to 40 feet at
maturation to screen glare at the BART Station within the City.
Parking light fixtures in the BART Station within the City will be fitted with
lenses, hoods, and reflectors to minimize spillover light and glare into adjacent
residences while still providing adequate lighting for security. BART will ensure
that the City is given the opportunity to review and comment on the plans for the
proposed light and glare screening and modified lighting fixtures prior to
installation of such screening and fixtures.
BART acknowledges that, although the MMRP calls for implementation of an all
way stop control at the South San Francisco Station exit to the Hickey Boulevard
Extension, the City does not desire, and has not approved the installation of such
an all-way stop. The City acknowledges that a one-way stop limiting movement
of automobiles exiting the station would create an unacceptable traffic condition
at the station. Based on these understandings, BART agrees to install a traffic
signal and interconnect at the intersection of the South San Francisco Station Exit
and Hickey Boulevard Extension. The City and BART agree to share in the cost
of the installation and the traffic signal and interconnect with fifty percent of the
reasonable costs allocated to each party. The City shall reimburse to BART the
City's fifty percent share upon acceptance of the intersection by the City.
BART will implement parking restrictions at the South San Francisco Station
and will control the South San Francisco parking lot with a system similar to
existing parking control systems throughout the BART system, utilizing
validated parking stubs, parking attendants, ticketing or booting of vehicles,
including vehicles that park overnight and do not obtain new validation. BART
will monitor trips from the South San Francisco Station to the SFIA to assess if
patrons are parking at the South San Francisco Station to avoid parking charges
at the SFIA. If SFIA passengers park at stations near the SFIA to avoid parking
charges, BART will consider implementation of a surcharge on short trips or an
equivalent mitigation.
SECTION 5: PROJECT FEATURES
The project features set forth in Paragraphs A through D, below, are not intended to
constitute a comprehensive list of project features, but are described in this Agreement
because they are of particular concern to the City. A comprehensive list of project
features associated with the Project is set forth in the FEIR.
A. BART will improve site access and traffic management, including shifting the
mid-day parking area, as requested by the City and incorporated into the FEIR on
Figure 2.3-3, Vol. I, at p. 2-12, a copy of which is attached hereto as Exhibit "1 ."
B. BART will depress the profile of the tracks at South Spruce Avenue, and
maintain the current grade of South Spruce Avenue and the flow lines of the
gravity sewers and open waterways. The revised BART alignment in the vicinity
of South Spruce Avenue is contained in Volume IV, Design Appendix,
Conceptual Design Drawings, of the FEIR.
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In order to provide access to the parking structure within the City, BART will
relocate the Lawndale PG&E Substation and Transmission Tower from their
present locations to the southerly perimeter of the South San Francisco Station
site, as shown on Figure 2.3-3, Vol. I of the FEIR, at p.2-12, a copy of which is
attached as Exhibit "1"
As part of the Project, BART will construct the Hickey Boulevard extension
from Mission Road to E1 Camino Real at no cost to the City, except for costs
related to the installation of a traffic signal, if requested, at the South San
Francisco Station exit to the Hickey Boulevard extension, pursUant to the terms
set forth in Section 4(I), above, if necessary. BART will also obtain a street
name for the Hickey Boulevard extension from the City.
SECTION 6: GENERAL COMMITMENTS
A. After completion of the improvements to the Colma Creek Flood Control
channel, BART will work with the San Marco County Flood Control District to
arrange for dedication of said improvements to the San Mateo County Flood
Control District.
B. BART and the City acknowledge that they intend to enter into a separate
agreement relating to City-owned utilities that will be affected by the Project.
Attached Exhibit "2" identifies those City-owned utilities which BART believes
will be affected. A comprehensive list of affected utilities will be prepared by
the Design-Build Contractor, and will be incorporated into the separate utilities
agreement between BART and the City. In the interim, BART and the City
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acknowledge that they intend to enter in Letter(s) of Intent, allowing BART to
modify and/or relocate City-owned utilities affected by the Project. The City
further agrees to cooperate with BART to identify said utilities.
BART will provide the City with a letter supporting the City's desire to extend
Hickey Boulevard from Mission Road to Hillside Boulevard.
BART and the City acknowledge that BART and SamTrans (the "transit
agencies") have entered into an agreement whereby the transit agencies will
cooperate to prepare environmental review documents and obtain approvals and
funding to implement a bike path along the entire length of the Project. The
BART/SamTrans agreement further provides that, absent other funding sources,
BART and SamTrans will share equally in the cost to construct the minimum
requirements for a bike path up to two million dollars ($2,000,000). The City
agrees that it will cooperate with the transit agencies in their effort to secure
funding. BART and the City anticipate that the bike path will comply with the
standards set forth in the California Department of Transportation Bikeway
Planning and Design manual dated July 1993, as amended, as those standards
apply to bike paths constructed primarily off streets and highways. The parties
further anticipate that the bike path will, assuming funding is available and
consistent with the language of the agreement between BART and SamTrans,
contain amenities such as benches, lighting, minimal landscaping including sod
and occasional trees.
In the event that the SamTrans/BART bike path is not constructed in the
BART right-of-way, BART will work with the City and SamTrans to effect
transfer of a surface easement to the City for the purpose of developing a similar
bike path above the alignment within the City. Also, in that event, BART and
the City shall share in the reasonable costs of development of the subject bike
path. BART's share shall be equal to the proportion of the minimum funding it
would have provided under the BART/SamTrans agreement for the segment of
the bike path in South San Francisco as a proportion of the length of the BART
extension from Colma through Millbrae. In the event that BART does not
expend the total minimum funding it would have provided under the
BART/SamTrans agreement for construction of the bikeway, BART shall apply
the remaining funds to the bike path constructed in the City up to amount that
would equal fifty percent of the bike path construction costs. In the event BART
enters into similar agreements with other cities along the bike path, however,
remaining funds shall be shared with South San Francisco and other cities
electing to share the costs of the bikeway construction in their cities in proportion
to the length that the bike path segment in each city bears to the length of the
extension from Colma to Millbrae.b~BART would be responsible for finish
grading above the BART subway structure. The City would assume maintenance
and liability responsibilities.
Normal work hours for on-site construction work shall be between 7:00 a.m. and
7:00 p.m., Monday through Friday. On-site construction work shall include, but
is not limited to, noise related to equipment maintenance, site preparation and
deliveries. In the event that on-site construction work needs to be performed
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Additional language regarding bikeway.
BART'S share shall be calculated based on the total amount
committed by BART and Samtrams ($2,000,000) in the event that
Samtrans authorizes Bart to allocate said total amount to the cost
sharing specified in this paragraph.
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outside of the above specified normal work hours, BART will contact the City
for approval of such work, which approval shall not be unreasonably withheld.
BART will maintain pedestrian access across Chestnut, Orange, and South
Spruce Avenues during construction of the Project, except to the extent that a
detour within the vicinity of an affected street has been identified and approved
by the City, which approval shall not be unreasonably withheld.
In consultation and cooperation with the City, BART will provide safe pedestrian
access in the area directly adjacent to the north side of the South San Francisco
Station site from Mission Road to E1 Camino Real for use by E1 Camino High
School students. BART will also maintain the existing pedestrian access in the
area toward the north end of the Macy's property.
BART will provide the City with plan(s) addressing delivery routes for City
review and approval, which approval shall not be unreasonably withheld. BART
will provide the City with plan(s) addressing storage areas, BART contractor
employee parking, construction yard location, and construction site ingress and
egress to the City for review and comment. Street cleaning on streets affected by
construction of the Project will be performed in accordance with the Contract
Documents. Site drainage and storm water pollution shall be performed in
accordance with the MMRP.
BART and the City will cooperate to reduce impacts of the Project on local
police, fire, and emergency services. BART has retained an independent
emergency response consultant, and is in the process of developing a Fire
Suppression and Rescue Operations Specific Plan ("FSRO Specific Plan") for
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both the construction and operation phases of the Project. Based on the results of
the FSRO Specific Plan, BART will fund any identified shortfalls in tr.aining and
equipment which cannot be provided through existing fire and rescue
departments, consistent with any applicable grant program criteria.
Following the Effective Date of this Agreement but prior to commencement of
service in South San Francisco, the BART and City Police Departments will
execute a cooperative police services letter memorializing the respective
obligations of the BART and South San Francisco Police Departments regarding
communications; dispatch, investigative procedures, and disposition; response
times; and other protocols related to the operation of the South San Francisco
Station.
During construction of the Project, BART shall provide the City with a list of
BART personnel to be contacted in the event of an emergency on the Project
construction site within the City.
During construction of the Project, BART shall provide the City with an
emergency response plan outlining BART's general procedures for responding to
an emergency on the Project construction site within the City.
In consultation and cooperation with the City, BART will utilize and implement
the South San Francisco BART Design Guidelines dated January 1997 in the
design of the South San Francisco BART Station to the extent that such
guidelines are within Project budget and are consistent with BART safety and
security standards and BART operational criteria. Not later than sixty (60) days
prior to the issuance of the bid package for the South San Francisco BART
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Station design-build contract, BART shall submit the draft design standards for
the station, including all parking facilities, to the City for review and comment.
The City's comments to the draft design standards shall be delivered in writing to
BART no later than thirty (30) calendar days from the City's receipt of the draft
design standards.
During construction of the Project, BART will take responsibility for
maintaining the security of BART construction areas within the City in
consultation with the South San Francisco Police Department, as necessary.
BART will work with the City and other potentially responsible parties,
including but not limited to the Greystone Developers, concerning the
installation of a traffic signal at the intersection of E1 Camino Real and the
Greystone Development. In the event that BART agrees to install such signal, it
intends to enter into an separate agreement with all responsible parties
concerning such matters as the timing of the installation of the signal and pro rata
allocation of costs among the parties.
BART shall construct the Hickey Boulevard Extension and make it available for
public us~ at the earliest possible date. In any event, the segment of the Hickey
Boulevard Extension between El Camino Real and the South San Francisco
Station must be constructed and available for public use within fifteen (15)
months of issuance by BART to the contractor of the notice to proceed with
construction of the South San Francisco Station which, at the date of execution of
this agreement, is scheduled to occur on or about November 1, 1998. If desired
by the City, BART will work with the City and other potentially responsible
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parties concerning the early installation of the segment of the Hickey Boulevard
extension between E1 Camino Real and the South San Francisco BART Station
exit. BART agrees that upon written request of the City, BART shall allow the
'City or its designee to construct said segment pursuant to plans and specifications
approved by BART and the City with the costs initially paid by the City or its
designee. Said costs, which must be reasonable, may be subject to
reimbursement by BART pursuant to the provisions herein. In the event that the
City desires to accelerate the construction of that segment, BART also agrees that
it will consider entering into a reimbursement agreement, subject to all federal
and state laws, regulations and applicable guidelines, pursuant to which the City
or its designees would construct the segment. In the event that BART agrees to
enter into such agreement, BART would reimburse the City or its designee for
the reasonable costs of constructing the segment.
For the duration of project construction, BART shall assign a lead representative
to handle project-related complaints from City residents, City officials, and/or
staff. BART shall provide written notice to the City and shall publicize the
telephone number, fax number and E-mail address of the lead representative.
BART shall ensure that said representative makes an initial response to all health
and safety-related complaints within a reasonable period of time, not to exceed 4
hours. In addition, BART shall make an initial response to all other complaints
within a reasonable period of time not to exceed 8 hours. Follow-up of
complaints will be completed within a reasonable time following initial contact
with the complainant. BART shall take all reasonable actions to ensure that its
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lead representative is authorized to and does in fact, ensure that corrective actions
are implemented within a reasonable period of time following the initial contract
with the complainant. It is BART's intent to ensure that its community liaison
staff is effective and satisfactorily meets the needs of the City staff and residents;
and, to do so, BART will seek input from the City Manager at 90 day intervals to
measure performance of the liaison. In the event that the City Manager informs
BART that the lead representative is not satisfactorily meeting the needs of the
City, BART shall take all reasonable actions to improve the effectiveness of its
lead representative.
Prior to issuance of the bid package for construction of the South San Francisco
Station, BART will consider a request from the City to allow a developer to
construct a portion of the road referred to as the Hickey Boulevard Extension
between E1 Camino Real and the southerly exit of the BART Station. Any such
construction would be subject to a reimbursement agreement between BART and
the City whereby BART would reimburse the City for the costs of constructing
the roadway portion. The City agrees that should BART agree to allow
construction of the Extension by anyone other than BART or its contractors, the
City shall comply with all applicable federal and state procurement and grant
management guidelines, including but not limited to FTA Circular 4220.1 D,
"Third Party Contracting Requirements," FTA Circular 5010.1 B, "Grant
Management Guidelines," copies of which are attached hereto as "Exhibit "3,"
and [48 C.F.R. Part 31 ].
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BART will perform a survey of parking conditions in the vicinity of the South
San Francisco Station prior to commencement of operations at the station. A
monitoring program will also be designed by BART to determine if substantial
spillover parking occurs at the South San Francisco Station following
commencement of oPerations. During the first year of operation of the
extension, BART will verify if problematic spillover parking is occurring within
a quarter mile radius of the station. Thereafter, in years two through five
following commencement of operations of the South San Francisco Station, upon
request of the City based on reasonable evidence of a spillover parking problem,
BART will verify if problematic spillover parking is occurring within a quarter
mile radius of the station. The monitoring program will be based on field checks
and reviews with BART police, local parking authorities and data from the City.
If spillover parking were to cause local parking shortages, BART will assist the
City in implementing a parking control plan. Reasonable costs of developing
the parking control plan, as well as material and equipment installed in South San
Francisco for the purpose of implementing the plan shall be borne by BART. A
spillover parking problem could be mitigated with programs including, but not
limited to, a residential parking permit program, restricted parking zones, or
other programs BART has used to respond to parking problems.
SECTION 7: CITY INFRASTRUCTURE
A. Construction Standards: All BART-administered construction of City
Infrastructure will be constructed in accordance with City Standard
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Specifications and City Standard Drawings in effect as of the advertisement date
for each contract for work to be performed within the City.
City Review of Project Plans and Specifications:
1. Prior to construction of any phase or portion of the Project within the
City, BART will provide the City with the Bid Package for review and
comment. Such comment shall be considered by BART and
incorporated, as appropriate, into the relevant documents. BART will
also provide the City with periodic construction progress schedules as
they are developed by the design-build contractor for the City's review.
2. Prior to construction of any phase or portion of the Project within the
City, BART will provide the City with Plans and Specifications showing
work to be performed on or directly affecting City Infrastructure for
review and approval, which approval shall not be unreasonably withheld.
City approval will be limited to elements of the Project affecting fire
safety elements in the Station Area, City Infrastructure, and other
facilities and appurtenances owned by, or which will be conveyed to, the
City pursuant to the terms and conditions of this Agreement. Approval or
disapproval of the Plans and Specifications will be delivered in writing to
BART no later than fifteen (15) calendar days from the City's receipt of
such Plans and Specifications. BART and the City may agree in writing
to mutually convenient time extensions. BART will make reasonable
efforts to provide the City with five (5) working days notice prior to
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submission of plans pursuant to this Section 7(B)(2) in order to allow the
City to mobilize review forces.
3. BART will be responsible for reimbursing the City for its reasonable
costs incurred in its review of the Plans and Specifications identified in
Section 7(B)(2), above. Said costs shall be the then-applicable City Fee
Schedule; the usual and customary City billing practice for such review
work; or the reasonable costs paid to a consultant selected by the City to
perform such review work. The City and BART shall agree on the rate
structure to be paid to consultants retained by the City to review the Plans
and Specifications referred to in Section 7(B)(2). Prior to payment by the
City, the City and BART shall jointly review the invoices submitted by
the City's consultants referred to herein. BART will remain responsible
for all work on City Infrastructure until such work is accepted by the
City.
4. Payments under this Agreement shall meet all applicable Federal and
State funding guidelines, and shall be subject to audit pursuant to the
terms set forth in Section 19, below.
Permits:
The City will issue all necessary permits for work to be performed in the City in
accordance with the South San Francisco Municipal Code. BART shall be
responsible for payment of usual and customary fees charged by the City for such
permits. The City will cooperate with BART in identifying all City permits
necessary for work to be performed under this Agreement.
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Construction Management and Inspection:
1. BART shall be responsible for all construction management, in.spection
and testing necessary to ensure that all construction of City Infrastructure
is performed in accordance with City Standard Specifications in effect as
of the advertisement date for each Contract for work to be performed
within the City. BART shall provide all test results and construction
documentation to the City on a timely basis to enable the City to review
the adequacy of the work during construction and to permit timely
acceptance of the completed work.
2. BART will pay the usual and customary inspection fees charged by the
City for any inspection, oversight services, and testing performed by City
inspectors on City Infrastructure. Testing shall include, but is not limited
to, compaction for utility trenches, backfill and roadway structural
sections; traffic control devices; TV inspection of the sanitary sewer lines
and storm drains shown on attached Exhibit "4"; and testing to determine
the quality of materials applied to the work performed by BART.
3. The City retains the right to exercise full control over the employment,
compensation, and discharge of it's personnel performing any inspection
or testing services under this Agreement. The City agrees to coordinate
all inspections and/or testing by city personnel through the BART
Resident Engineer.
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Construction Impacts to City Infrastructure Other Than Streets: BART shall be
responsible for the repair, relocation, reconstruction, or replacement, as
appropriate under the terms set forth in this Agreement, of City Infrastructure
other than streets affected by construction of the Project.
1. After construction is completed in the area, BART shall be responsible
for inspecting the traffic signal at Chestnut Avenue and Antoinette Lane
to ensure that said signal is fully operational with either new or
refurbished components, as necessary. Correction of any damage to City
Infrastructure other than streets shall commence as soon as practicable
after written notice of any claimed damage to BART by the City. Said
notice by the City of any claimed damage shall be given as soon as
possible after the City's receipt of BART's notice of substantial
completion of the portion of the Project for which damage is claimed, but
in no event shall notice of any claimed damage be made by the City or
accepted by BART more than eleven (11) months after BART's notice of
substantial cOmPletion of construction of the portion of the Project for
which damage is claimed.
2. BART, in consultation with the City, shall perform a pre-construction
survey including photographs of all City-owned irrigation systems and
landscaping which will be affected by construction activities. BART
shall repair any irrigation systems or landscaping determined by BART
and the City to have been damaged by BART during construction to a
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condition reasonably satisfactory to the City and BART, as determined by
the pre-construction survey.
Construction Impacts to City Streets:
1. Coordination with City Planned Street Improvements:
In order to coordinate construction of the Project with City-planned street
improvements, the City agrees to timely provide BART with a copy of its
annual Capital Improvement Program, identifying, among other things,
all sources of funding, whether federal, state or local, for City-planned
street improvements.
2. Repair and Reconstruction of City Streets: Both before and after
construction, BART, in consultation and cooperation with the City, will
perform a pavement survey and videotape of City streets which may be
affected by construction activities. Said pre-construction and post-
construction pavement surveys will be performed in accordance with the
December 1988 Metropolitan Transportation Commission Pavement
Management System Users Guide (the "MTC PCI Index"). BART and
the City agree that, in accordance with the MTC PCI Index, BART will
pay the City the Dollar Amount reflecting the decline in the PCI directly
attributable to construction of the Project. The relevant pages of the
MTC PCI Index and the methodology for determining any decline are
attached hereto as Exhibit "4." BART and the City shall enter into a
separate Memorandum of Understanding ("MOU") implementing
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disbursement of funds to the City for any decline in the PCI attributable
· to construction of the Project.
Betterments:
If the City determines that any City Infrastructure should be improved beyond
that which is necessary to fulfill the Project Plans and Specifications, such work
shall constitute a Betterment. The City shall reimburse or credit BART for the
value of any such work or Betterment. In that event, BART and the City shall
agree on the nature and extent of any Betterment, including related Plans and
Specifications, and on the amount of credit due to BART prior to commencement
of construction of any such Betterment. Credit for any salvage value of facilities
which were either removed or retained by the City during replacement,
modification, enlargement or expansion shall be based on the resale value of
these facilities, less selling expenses. The City shall reimburse BART for all
Betterments within thirty (30) days from the date a BART invoice calculated
according to the credit provisions provided above is received by the City.
Notwithstanding the terms set forth in this Section 7(G), BART and the City may
agree in writing, with supporting documentation, on a case-by-case basis, that,
where construction of the Project will preclude future economical access to or
repair, improvement or construction of City utilities, inclusion of methods to
avoid such future detriment shall not be construed to be a Betterment.
Completion and Acceptance:
Upon completion of construction, reconstruction, enlargement, expansion or
relocation of any City Infrastructure and at such time as it is appropriate for the
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City to become responsible for operation of such City Infrastructure, BART will
notify the City that said infrastructure has been completed. The City will accept
such infrastructure or any useable portion thereof in a timely manner and in
accordance with the City's usual and customary practice for accepting such
infrastructure, if, after inspection by the City, it is determined that the work,
including any work performed pursuant to a change order, has been performed in
accordance with the Plans and Specifications and the City Standard
Specifications in effect as of the advertisement date for each Contract for work to
be performed within the City. If, after inspection by the City, it is determined
that the work has not been so performed, the City shall notify BART of any
claimed deficiency within ten (10) working days. Thereafter, BART will
investigate and, if BART agrees with the City's determination, BART will
correct the work prior to City acceptance. Except for warranty work, the City
will become responsible for these facilities upon acceptance.
As-Built Drawings:
Upon completion of any and all work by BART on City Infrastructure, and
acceptance of such work by the City, BART shall provide to the City, within
twelve (12) months after completion of the Project, electronic files compatible
with the latest version of auto cad and a set of reproducible plastic film As-Built
Drawings, and any parts, operations, and maintenance manuals that are readily
available for City Infrastructure showing the completed work in place. Such As-
Built Drawings shall be in sufficient detail as the City customarily requires of the
City's own public works contractors.
SECTION 8: TRAFFIC MAINTENANCE AND DETOURS
BART will assume full responsibility for maintaining in service, or causing to be
maintained in service, all traffic detours during BART construction of the Project in a
manner reasonably satisfactory to the City, subject to and consistent with all applicable
California Department of Transportation requirements. All traffic control, lane closure,
and detour plans shall be submitted to the City for approval prior to commencement of
any phase of construction requiring either traffic control or detour(s), which approval
shall not be unreasonably withheld. The traffic control, lane closure, and detour plans
shall specify the length of time that portions of City streets will likely be closed.
A. Although certain City streets will, of necessity, be partially closed for some
period during construction of the Project, BART will, to the greatest extent
practicable, maintain in service, or cause to be maintained in service, all City
streets and related City Infrastructure within the limits of the Project area in a
manner reasonably satisfactory to the City. At a minimum, two-way service will
be maintained on all City streets affected by the Project, unless otherwise agreed
to by BART and the City.
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In its Contract Documents, BART will require its contractor(s) to submit traffic
plans showing haul routes, temporary closures, and the method of traffic
maintenance and staging to the City for approval, which approval shall not be
unreasonably withheld. BART will also require its contractor(s) to use
reasonable efforts to provide the City with three (3) working days notice prior to
submitting traffic plans. The City shall'approve or disapprove the plans no later
than ten (10) working days following the City's receipt of such plans.
In its Contract Documents, BART will, prior to the temporary closure to traffic
of all or part of any street, sidewalk, or other public access, require that its
contractor(s) provide at least ten (10) working days notice of such closure to the
City. Deviation from this ten (10) working day requirement may be permitted in
bona fide emergency situations as determined by BART and the City.
At least seventy two (72) hours prior to the temporary closure to traffic of ail or
part of any street, sidewalk, or other public access, BART will post notice of
such closure. Such notice of any road closure shall include, at minimum, use of
an electronic sign. BART will also provide closure-information fliers to
residents, schools, and businesses within a one hundred (100) foot radius of any
such closure.
SECTION 9: CONSTRUCTION SITE FENCING
BART shall require that its general contractor and subcontractors, as appropriate, based
on consultation between the City and BART, shall provide security personnel, lighting
and fencing along the line, at the station site, and at construction yards. Security and
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fencing plans shall be submitted to the City for review and comment prior to the
commencement of construction.
SECTION 10: EROSION CONTROL PLAN
BART shall require its contractors to provide for an erosion control plan to retain
sediments on site in accordance with BART's NPDES permit and Plans and
Specifications. All stockpiled earthwork shall be protected from wind and water
erosion. Dust control shall be undertaken in accordance with BART Plans and
Specifications and the MMRP and shall provide for dust, erosion and pollution control
seven days a week, 24 hours a day for the duration of construction activities. BART and
the City shall meet prior to issuance of the construction bid package to confirm that the
BART NPDES standards are at least as stringent as those of the City.
SECTION 11: CONTRACT DOCUMENTS INDEMNITY
For any work performed on City Infrastructure, BART will require in its general
conditions of its contracts that all of the Project's construction confractors defend,
indemnify and hold the City, its officers and employees harmless against any liability
arising out of the acts or omissions of each such contractor and such contractor shall
include the City, its elective and appointed officers, employees and agents as additional
insured in any insurance policies obtained by them at no cost to the City.
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SECTION 12: DESIGNATED AGENT OF THE PARTIES
The City contact person for all matters related to this Agreement will be the Ci,ty
Manager or his or her designee. BART'S contact person for all matters related to this
Agreement will be the Executive Manager for West Bay Extensions or his or her
designee.
SECTION 13: INDEMNIFICATION
It is understood and agreed that neither the City nor any officer, agent or employee of the
City is responsible for any damages or liability occurring by reason of anything done or
omitted to be done by BART, it directors, officers, agents and employees, under or in
connection with .any work, authority or jurisdiction delegated to BART under this
Agreement. It is also understood and agreed that, pursuant to Government Code Section
895.4, BART will fully indemnify, hold harmless and defend in any claim or litigation,
the City, its officers, agents and employees from any damage or liability occurring by
reason of anything done by BART, its directors, officers, agents and employees under or
in connection with any work, authority or jurisdiction delegated to BART under this
Agreement. The duty of BART to indemnify and hold harmless, as set forth above, shall
include the duty to defend as set forth in Section 2778 of the California Civil Code,
provided, however, that nothing herein shall be construed to require BART to indemnify
the City, its officers, agents, and employees against any responsibility or liability in
contravention of Section 2782 of the California Civil Code.
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It is understood and agreed that neither the BART nor any officer, agent or employee of
BART is responsible for any damages or liability occurring by reason of anytl~.ing done
or omitted to be done by the City, it directors, officers, agents and employees, under or
in connection with any work, authority or jurisdiction delegated to the City under this
Agreement. It is also understood and agreed that, pursuant to Government Code Section
895.4, the City will fully indemnify, hold harmless and defend in any claim or litigation,
BART, its officers, agents and employees fi.om any damage 'or liability occurring by
reason of anything done by the City, its directors, officers, agents and employees under
or in connection with any work, authority or jurisdiction delegated to the City under this
Agreement. The duty of the City to indemnify and hold harmless, as set forth above,
shall include the duty to defend as set forth in Section 2778 of the California Civil Code,
provided, however, that nothing herein shall be construed to require the City to
indemnify BART, its officers, agents, and employees against any responsibility or
liability in contravention of Section 2782 of the California Civil Code.
SECTION 14: INSURANCE
BART shall include in its Contract Documents a requirement that the City be named an
additional insured on all policies of insurance required of its contractors.
SECTION 15: WARRANTIES
BART will require warranties from all of its contractors for all work performed and for
all contractor-installed equipment and materials supplied in connection with the Project.
BART acceptance of all work performed and for all contractor-installed equipment and
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materials supplied in connection with City Infrastructure shall be predicated upon City
acceptance of such work, equipment, and materials. All BART warranties to ,the City
shall be for a period of twelve (12) months from acceptance by the City, except where
the manufacturer's usual warranty is for a longer period. In that event, the longer period,
less thirty (30) days, will apply. Upon written request by the City, BART will pursue all
of its available remedies under those warranty provisions for correction of any defects in
materials and/or workmanship discovered within the warranty period. Correction of '
such defects in the work performed for the City shall commence within sixty (60)
working days of written notification to BART by the City, at no cost to the City, so long
as the notification is within the warranty period.
SECTION 16: RESOLUTION OF DISPUTES
If any dispute under this Agreement cannot be resolved by the Parties, upon the written
request of either of the Parties, the matter shall be dealt with as described below:
A. First Level: Each party will designate project staff or individuals to be the
initial person or persons to discuss any apparent dispute or disagreement between
the parties and initiate this procedure. Each such designated first level person
may contact his or her counterpart at the same level at any time to raise any
apparent disagreement related to the Project. For the City the first level person
shall be designated by the City at the time of execution of this Agreement. For
BART, the first level person, unless BART shall designate otherwise in writing,
shall be the BART-SFO Extension Project Manager for the City.
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1. Urgent Matters: For any matter designated by the initiating party as
"urgent," the other party shall make its first response within twe. nty-four
hours, or within such other period as the first level persons may agree.
2. Non-Urgent Matters: Unless a matter is designated "urgent" by the
initiating party, the other party shall respond with in five (5) work days,
or within such other period as the first level persons may agree.
Second Level: Each party will designate individuals to whom matters not
resolved at the First Level shall be referred. Each such designated second level
person may contact his or her counterpart at the same level at any time to raise
any apparent disagreement related to the Project. For the City at the time of
execution of this Agreement. For BART the second level person, unless BART
shall designate otherwise in writing, shall be the Executive Manager, West Bay
Extensions.
1.
Urgent Matters: For any matter designated by the initiating party as
"urgent," the other party shall make its first response within twenty-four
hours, or within such other period as the second level persons may agree.
2. Non-Urgent Matters: Unless a matter is designated "urgent' by the
initiating party, the other party shall respond within three work days, or
within such other period as the second level persons may agree.
Third Level: Each party will designate individuals to whom matters not
resolved at the second level shall be referred. These designated third level
persons shall constitute the final internal level within BART and the City for
resolution of issues between the parties. Each such designated third level person
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may contact his or her counterpart at the same level at any time to raise any
apparent disagreement related to the Project. For the City, the third level person
shall be designated by the City at the time of execution of this Agreement. For
BART, the third level person, unless BART shall designate otherwise in writing,
shall be the General Manager.
1. Response: The initiating third level person will request a response
from his or her counterpart and that response will be made within a time
period agreed between the third level persons.
Alternative Dispute Resolution Board: If the designated third level
individuals are unable to reach resolution, upon written request of either of the
parties, the matter shall be presented to an Alternative Dispute Resolution Board
("ADRB") as follows:
1. Composition of the ADRB: The ADRB shall consist of one member
selected by BART and one member selected by the City. These two
members shall, within 40 days of their selection, choose the third member
who will chair the ADRB. If the two members cannot agree on the third
member, either member may request the American Arbitration
Association in San Francisco to appoint the third member. It is desirable
that all ADRB members be experienced with the type of construction
involved in this Agreement, and interpretation of Contract Documents.
No member of the ADRB shall have any conflict of interest, which would
prevent the member from impartially serving on the ADRB. No member
shall have a financial interest in the Agreement, except for payment for
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services on the ADRB. No member shall have been an employee, within
a period of one year prior to the Effective Date of this Agreeme.nt, of any
entity with a financial interest in the Agreement; except that service as a
member of other Alternative Dispute Review Boards on other BART
contracts will not preclude a member from serving on the ADRB for this
Agreement. All prospective members of the ADRB shall make full
disclosure of all financial interest in, or other involvement with, the work
contemplated under this Agreement and any entities associated with the
work, including any close professional or personal relationships.
Cost of the ADRB: BART and the City shall pay compensation for
fees and expenses for the ADRB member each has selected. BART and
the City shall each pay one-half of all compensation for fees and expenses
for the Chair.
Hearing on Disputes: When a written notice of a dispute is referred to the
ADRB, a hearing shall be held within thirty (30) days of referral. The
ADRB may request written documentation and arguments from both
parties prior to the hearing. A party furnishing written documentation to
the ADRB must furnish a copy to the other party at least fifteen (15) days
before the hearing begins.
Hearing Procedure: BART and the City shall be represented at all
heatings by their resPective project management. Lawyers may
participate only by agreement of both parties. BART and the City shall
each be afforded an opportunity to be heard by the ADRB and to offer
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evidence. The ADRB members may ask questions, seek clarification, or
request further data. The ADRB may request from either party
documents or information that would assist the ADRB in making its
findings and recommendations. A refusal by a party to provide
information requested by the ADRB may be considered by the ADRB in
making its findings and recommendations. Additional hearings may be
necessary in order to consider all evidence presented by both parties. The
ADRB may make any other rules applicable to its proceedings, which it
deems necessary.
Post-Hearing Procedures: After the hearings are concluded, the
ADRB shall meet in private and reach a conclusion supported by two or
more members. As soon as practicable thereafter, its findings and
recommendations, together with its reasons, shall be submitted as a
written report to both parties, at the addresses indicated in Section 17,
below. If a unanimous decision proves impossible, the dissenting
member may prepare a minority report.
Nonbinding Nature of ADRB Recommendations: Although both
parties should strongly consider the ADRB recommendations, such
recommendations are not binding. Either party may appeal to the ADRB
for reconsideration of a recommendation when there is new evidence to
present. If the ADRB's recommendations do not resolve the dispute,
however, it is the intent of the parties that all documents submitted to it
and its hearing record and written report pertaining to the dispute will be
admissible as evidence, to the extent permitted by applicable law, in any
subsequent proceeding. The Parties expressly acknowledge that the
foregoing provisions of this Section 16 axe the sole and exclusive
administrative or non-judicial remedies which must be exhausted prior to
seeking any remedy provided at law or equity for a default hereunder.
Notwithstanding the above, nothing in this Section shall prevent either
Party from seeking an interim remedy in extraordinary circumstances.
SECTION 17: NOTICES
All notices required hereunder may be given by personal delivery, US Mail, courier
service(e.g, federal express) or Telecopier transmission. Notices shall be effective upon
receipt at the following addresses.
To BART by U.S. Mail:
San Francisco Bay Area
Rapid Transit District
P.O. Box 12688
Oakland, CA 94604-2688
Attention: General Manager
Telefax (510)-464-6009
San Francisco Bay Area
Rapid Transit District
979 Broadway
Millbrae, CA 94030
Attention: Executive Manager
Telefax (415) 689-8321
To BART by personal or
special delivery
San Francisco Bay Area
Rapid Transit District
800 Madison Street
Oakland, CA 94604-2688
Attention: General Manager
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To City:
San Francisco Bay Area
Rapid Transit District
979 Broadway
Millbrae, CA 94030
Attention: Executive Manager
City of South San Francisco
P.O. Box 711
South San Francisco, CA 94083
Attention: City Administrator
Telefax: (650) 872-3269
SECTION 18: PARTIES NOT CO-VENTURERS
Nothing in this Agreement is intended to nor does it establish the Parties as partners, co-
ventures or principal and agent with one another.
SECTION 19: FURTHER ASSURANCES, TIME PERIODS AND RECORDS
A. Each party shall execute and deliver to the other all such additional instruments
or documents as may be necessary to carry out this Agreement or to assure and
secure to the other party the full and complete enjoyment of its rights and
privileges under this Agreement, subject to appropriate approvals of each party's
governing body.
B. Should unforeseen circumstances occur, BART and the City shall negotiate in
good faith to reach agreement on any amendment(s) that may be necessary to
fully effectuate the Parties' respective intentions in entering into this Agreement.
C. The City agrees to establish and maintain records pertaining to the fiscal
activities of the Project, which records shall show the actual time devoted and the
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costs incurred by the City with respect to any work performed under this
Agreement. The accounting systems of the City shall conform to generally
accepted accounting principles, and all records shall provide a breakdown of total
costs charged to the Project, including properly executed payrolls, time records,
invoices and vouchers. Upon written request, the City shall, at a mutually
convenient time, permit BART to inspect, examine, re-examine, and copy the
City's books, records, accounts, and any and all data relevant to this Agreement
for the purpose of auditing and verifying statements, invoices or bills submitted
by the City pursuant to this Agreement, and shall provide such assistance as may
be reasonably required in the course of such inspection. The City shall, at
BART's request, provide a letter of representation concerning its usual and
ordinary charges for work similar to the work to be performed under this
Agreement, as well as the accounting systems utilized by the City for work to be
performed under this Agreement.
BART reserves the right to examine and re-examine such books, records,
payrolls, accounts and data during the three (3) year period after final payment
under this Agreement and until ali pending matters are closed, and the City shall
in no event dispose of said books, records, payrolls, accounts and data in any
manner whatsoever for three (3) years after the final payment under this
Agreement or until all pending matters are closed, whichever is later.
Pursuant to California Government Code Section 8546.7, the Parties shall be
subject to the examination and audit of the State Auditor, at the request of BART
or as part of any audit of BART by the State Auditor, for a period of three (3)
years after final payment under this Agreement. The examination and audit shall
be confined to those matters connected with the performance of this Agreement
including, but not limited to, the cost of administering the Agreement.
SECTION 20: NON-LIABILITY OF OFFICIALS, EMPLOYEES AND AGENTS
No director, member, official, employee or agent of the City or BART shall be
personally liable to any party to this Agreement or any successor in interest in the event
of any default or breach of this Agreement or for any amount which may become due on
any obligation under the terms of this Agreement.
SECTION 21: HEADING AND TITLES
Any titles of the Sections of this Agreement are inserted for convenience of reference
only, and shall be disregard in construing or interpreting any part of its provisions.
SECTION 22: APPLICABLE LAW
This Agreement shall be interpreted under and pursuant to the laws of the State of
California. The Parties agree that the jurisdiction and venue of any dispute between the
Parties to this Agreement shall be the Superior Court of San Mateo County.
SECTION 23: SEVERABILITY
If any term, provision, covenant or condition of this Agreement is held by a court of
competent jurisdiction to be invalid, void or unenforceable, the remainder of the
provisions shall continue in full force and effect unless the rights and obligations of the
Page 43
Parties have been materially altered or abridged by such invalidation, voiding or
unenforceability.
SECTION 24: BINDING UPON SUCCESSORS
This Agreement shall be binding upon and inure to the benefit of the transferees,
successors and assigns of each of the Parties to it, except that there shall be no transfer of
any interest by any of the Parties to this Agreement except pursuant to the terms of the
Agreement.
SECTION 25: REMEDIES NOT EXCLUSIVE
No right or remedy conferred upon or reserved to BART or the City under this
Agreement is intended to be exclusive .of any other fight or remedy, except as expressly
stated in this Agreement, and each and every right and remedy shall be cumulative and
in addition to any other right or remedy given under this Agreement or now or hereafter
existing at law or in equity or by statute, except such fights or remedies as are expressly
limited in this Agreement.
SECTION 26: FORCE MAJEURE
In addition to specific provisions of this Agreement, performance by either party shall
not be deemed to be in default where delays or defaults are due to war, insurrection,
strikes, lockouts, riots, floods, earthquakes, fires, quarantine restrictions, casualties, acts
of God, acts of the public enemy, epidemic, government restrictions on priorities, freight
embargoes, shortage of labor or materials, unusually inclement weather, lack of
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transportation, court order, or any other similar causes beyond the control or without the
fault of the party claiming an extension of time to perform. An extension of time for any
cause will be deemed granted if notice by the party claiming such extension is sent to the
other party within thirty (30) days from the commencement of the cause and such
extension is not rejected in writing by the other party within thirty (30) days of receipt of
the notice. Time of performance under this Agreement may also be extended by mutual
written agreement, signed by both Parties.
SECTION 27: INTEGRATION
This Agreement represents the full, complete and entire agreement of the Parties with
respect to the subject matter hereof, and supersedes any and all other communications,
representations, proposals, understandings or agreements, whether written or oral,
between the Parties hereto with respect to such subject matter. This Agreement may not
be modified or amended, in whole or in part, except by a writing signed by an authorized
officer or representative of each of the Parties hereto.
This Agreement is made and entered into as of the date set forth above.
SAN FRANCISCO BAY AREA RAPID CITY OF SOUTH SAN FRANCISCO
TRANSIT DISTRICT
By:
Thomas E. Margro
General Manager
By:
Michael A. Wilson
City Manager
Page 45
APPROVED AS TO FORM
Office of the General Counsel
APPROVED AS TO FORM
South San Francisco City Attorney
By:
BART Legal Counsel
By:
Page 46
OGDEN
Hickey StatiOn Site Plan
(South San Francisco Station)
FIGURE
2.3"3 I /
~'~ - EXHIBIT ~:~
OWNER I.D. NO.
City of South San Frandsco CSSF #1
City of South San Frandsco CSSF #2
City of South San Francisco CSSF ~F3
City of South San Francisco CSSF Jr4
City of South San Francisco CSSF #5
City of South San Francisco CSSF #6
City of South San Francisco CSSF #7
City of South San Francisco CSSF ~/8
City of South San Francisco CSSF #9
City of South San Francisco CSSF #10
City of South San Francisco CSSF #11
City of South San Francisco CSSF #12
City of South San Francisco CSSF #13
City of South San Francisco CSSF #14
City of South San Frandsco CSSF #15
City of South San Francisco CSSF #16
UTILITY INVENTORY LIST - CITY OF SOUTH SAN FRANCISCO
IMPACTED UTILITY/FACILITY PROPOSED REARRANGEMENT REARRANGEMENT
W2 LOCATION DESCRIPTION REARRANGEMENT METHOD AREA IMPACTED JURISDICTION
419+50 to 423+00
(Mission Road) 15" RCP SD Remove BART
419+40
(Mission Road) 12" RCP w/CB SD Protect Mission Road BART
Historic Arch Culvert
332+30 Historic Arch Culvert Remove and Reconstruct Wetland Area BART
332+ 15 15" VCP SS Reconstruct wi 15" DiP and Support Wetland Area BART
Connect BART Subway Drainage
330+60 to 33i+84 12" SD Sump to Existing 12" SD
332+00 84" RCP SD Protect and Support
354+92 30" RCP SD Protect
354+92 24" RCP SD Protect
358+00 to 361+00 12" RCP/4"ClP w/CB SD Remove and Relocate West Orange Ave. BART
358+75 10" VCP SS Reconstruct wi 10" DiP and Support BART
366+63 18" RCP SD Support
367+15 8" VCP SS Reconstruct wi8" DIP BART (12YU-1 I0)
Remove and Relocate wi 12" DIP
380+72 12" VCP SS w/MH Support Chestnut Ave. BART
380+40 to 381+83 4" VCP SS Remove and Relocate Chestnut Ave. BART
382+15 to 383+10 18" RCP SD Protect Chestnut Ave. BART
Remove and Relocate wi 16" DIP
410+80 10" VCP SS Combine wi KFH #1 SS/Support Trailer Park BART
PROPOSED DRAFT UTILITIES IMPACT REPORT
BART SFO EXTENSION
BART '12YC.120
CONTRACTOR
Remove
Protect
Remove and Reconstruct
Reconstruct and Support
Connect BART Subway Drainage
Sump to ExisL 12' SD
Protect and Support
Protect
Protect
Remove and Relocate
Reconstruct and Support
Support
Protect and Support
Remove and Relocate/Support
Remove and Relocate
Protect
Remove and Relocate/Support
E. XHIBIT '~
*OWNER I.D. NO.
UTILITY INVENTORY LIST - CITY OF SOUTH SAN FRANCISCO
IMPACTED UTILFTY/FAClLITY PROPOSED REARRANGEMENT REARRANGEMENT
W2 LOCATION DESCRIPTION REARRANGEMENT METHOD AREA IMPACTED JURISDICTION
BART 12YC-120
CONTRACTOR
City of South San Francisco CSSF #17 423+30
City of South San Francisco CSSF #18 438+25
City of South San Francisco CSSF #t9 420+00 to 423+50
City of South San Francisco CSSF #20 354+92 to 357+97
City of South San Francisco CSSF #21 358+00
City of South San Fmnctsco CSSF ~22 382+15
City of South San Francisco CSSF #23 438+35
City of South San Frandsco CSSF #26 376+20
City of South San Francisco CSSF #27 376+30 to 381+25
City of South San Francisco CSSF f~8 354+92
City of South San Francisco CSSF #29 394+08 to 454+00
City of South San Francisco CSSF #30 394+50
City of South San Francisco CSSF #31 395+50
City of South San Fmnctsco CSSF #32 425+10
City of South San Francisco CSSF #33 411+30
City of South San Francisco CSSF #34 413+90
54" RCP & 54" CMP SD
2 - 42' x 72" CMP SD
15" VCP SS
8" VCP SS
12" RCP SD
12. CMP w/CB SD
18" RCP SD
6" PVC SD
Double 9' x 5' RCB SD
18" CMP SD
2 - 12. RCP SD
Colma Creek Trapezoidal
Channel
18" CMP SD
2 - 18" CMP SD
30" CMP SD
36" RCP SD
2 - 3O" CMP SD
Remove and Relocate
Reconstruct w/15" DIP
Abandon
Protect
Remove and Reconstruct
Protect and Support
End at Channel and Install 6" Flapgate
Remove and Reconstruct
Protect
Remove and Reconstruct
w/1-30" RCP/Support
Colma Creek Diversion
Extend 18" CMP to Channel and Install
18" Flapgate
Extend 2-18" CMP to Channel and
Install 2-18" Flapgates
Remove
Extend 36" RCP to Channel and Install
36" Flapgate
Extend 2-30" CMP to Channel and
Install 2-30" Flapgates
Mission Road
Colma Creek
West Orange Ave.
Twelve Mile Creek
Colma Creek
BART
BART (12YU-110)
BART
BART
BART
BART
BART
BART
BART
BART
BART
BART
BART
BART
Remove and Relocate
Protect and Support
Abandon
Protect
Remove and Reconstruct
Protect and Support
End at Channel and Install 6"
Flapgate
Remove and Reconstruct
Protect
Remove and Reconstruct
w/1-30" RCP/Support
Construct Colma Creek Diversion
Extend 18" CMP to Channel and
Install 18" Flapgate
Extend 2-18" CMP to Channel and
Install 2-18" Flapgates
Remove
Extend 36" RCP to Channel and
Install 36" Flapgate
Extend 2-30" CMP to Channel and
Install 2-30" Flapgates
PROPOSED DRAFT UTILITIES IMPACT REPORT
9'~0~' er(~ EXTENSION
EXHIBIT ~.~
OWNER I.D. NO.
UTILITY INVENTORY LIST - CITY OF SOUTH SAN FRANCISCO
IMPACTED UTIUTY/FACIUTY PROPOSED REARRANGEMENT REARRANGEMENT
W2 LOCATION DESCRIPTION REARRANGEMENT METHOD AREA IMPACTED JURISDICTION
BART t2YC-t20
CONTRACTOR
City of South San Francisco CSSF #35 313+00
City of South San Francisco CSSF#36 312+20to313+00
City of South San Francisco CSSF #37 315+00 to 315+50
City of South San Francisco CSSF ~38 312+20 to 315+20
City of South San Francisco CSSF #39
City of Soulh San Francisco CSSF ~0
City of South San Francisco CSSF #41
City of Soulh San Francisco CSSF #45
City of South San Francisco CSSF #50
332+10
320+00
381 +25 to 382+25
410+00
420+00
30" SD Remove and Reconstruct Asphalt Paving
24" SD Remove and Reconstruct Asphalt Paving
24' RCP SD Remove and Reconstruct Asphalt Paving
30" RCP SD Remove and Reconstruct Asphalt Paving
Street Light Protect
30" RCP SD Protect Colma Creek
Remove and Reconstruct CB. Extend
18" RCP SD 18" RCP SD Colma Creek
Extend 18" RCP to Channel and Install
18" RCP SD 18" Flapgate Colma Creek
3' CSP W Abandon
BART
BART
BART
BART
BART
CWSC
Remove and Reconstruct
Remove and Reconstruct
Remove and Reconstruct
Remove and Reconstruct
Protect
Protect
Remove and Reconstruct CB.
Extend 18" RCP SD
Extend 18" RCP to Channel and
Install 18" Flapgate
PROPOSED DRAFT UTILITIES IMPACT REPORT
I:~A RT RFCtEXTENSION
CITY OF SOUTH SAN FRANCISCO
SANITARY SEWER AND STORM DRAINS TV INSPECTION LIST
NO.
W2 Location Description Proposed Contractor 12YC-
Rearrangement 120
Method DWG.
No.
CSSF
DWG. No.
CSSFg4
CSSF#6
CSSF#7
CSSF#11
CSSF#15
CSSF#22
CSSFg41
332+15 15"VCP SS Reconstruct w/15" 12YC-120 U406
Spruce Ave. DIP and Support
(Portion to be TV)
332+00 84"RCP SD Protect and Support 12YC-120 C706
Spruce Ave.
354+92 30" RCP SD Protect 12YC-120 C304
Nr. Orange (Portion to be TV)
366+63 18" RCP SD Support 12YC-120 C305
B&G Club
382+15 to 383+10 18" RCP SD Protect 12YC-120 C711
Chesmut Ave 12"VCP CCSF
382+15 18" RCP SD Protect & Support 12YC-120 C711
Chestnut Ave 12"VCP CSSF
381+25 to 382+25 18" RCP SD Remove & 12YC-120 C711
Chestnut Ave. 12"VCP CSSF Reconstruct
CB
4C1
4C1
3C2
3C2
3C2
3C2
EXHIBIT 3
1
EXHIBIT
MTC PCl Index
and
Methodology
MTC
PAVEMENT MANAGEMENT SYSTEM
USER'S GUIDE
DECEMBER 1988
MTC
METROPOLITAN
TRANSPORTATION
COMMISSION
JOSEPH P. BORT METROCENTER · 101 EIGHTH STREET · OAKLAND, CA 94607-4700 · (415)464-7700 * FAX: (41S)464.7848
~.xhibit "1"
Pege 2 of g
Table E-1. f~inCenance and Rehabilitation Treatments with
Associaced Unic Cosl:s in $/SY in 1985.
e
:1.
9.
10.
11.
12.
13.
14.
15.
16.
17.
~ IN'I'F~ANCE TREATMENT
RECORST. SURFACE & BASE
RECONSTRUCT. SURFACE
'I'IIICK AC OVKI{I.AY (2.5")
AC OV~U~'(1.S"). W/F~BR~C.
s~K & uN Ac
ART
COL
ART
COL
COl.
RF.S
HEATER SCARIFY & THIN AC OVERLAY
SLURRY SEAL
SINGLE CHIP SEAL
DOUBLE CHIP SEAL
RUBBERIZED ORIP SEAL (2% LATEX)
(mi1, SEAl, &' suma¥ SF~L
SEAL CRACKS (S/In .fl:)
RF2UVEHATI~G TY, EA~
SKIN PATCH
SHALIDW PATi~I
DEEP PATCH
S/sr.
$38.13 -
$32.~.4
$26.75
$14.00
$11.38
$8.75
$5.93
$5.73
$5.53
$s.5o
$.5.70
$o.~2
$o.s~
$0.92
$1.25
$1.oo
$0.60
$0.~2
$5.oo
$32.67 .
Exhibit "1"
109
Page 3 of 9
METHODOLOGY
To establish a systematic approach to pavement repairs related to construction haul
routes, the following approach was taken. The foundation for this system is MTC's
Pavement Management System (PMS) and its Pavement Condition Index (PCI). In the
PMS User's Guide (1988), Section 7 correlates rehabilitation needs with budget
parameters. AS applied in San Bruno, three levels of rehabilitation are used:
1. Thin overlay (1.5") for streets with a PCI above 50.
2. Thick overlay (2,5") for streets with a PCl between 25 and 50.
: 3. Reconstruction of pavement only for streets with a PCI below 25.
In Table E-1 (attached), units costs for these treatments are listed. These are
presented in a "per square yard" basis. Assuming that the cost for any treatment will
bring a pavement back to a PCI of 100, the incremental (or "per PCI point") cost would
be computed by dividing the listed cost by the maximum number of PCI points that a
particular treatment can produce. Additionally; the listed costs are for 1985. To inflate
these costs to 1997, the Engineering News Record's "Construction Cost Index"
(attached) is applied. The factor for this step is computed as 1.325. Referring to the
three treatments above, Table E-l, and the inflation factor, the table below represents
the incremental costs.
Street Type
Year and Basis of Cost
Thin Overlay 100 < PCI < 50 (50 points)
Thick Oveday 50 < PCI < 25 (75 points)
Reconstruct Surface 25 < PCl > 0 (100
points)
Arterial Collector Residential
~985~ ~ ~985~sy ~, ~985/sy
3.45 ~ 3.45~ 3.45
5.93 ~ 5.73 5.53
14.00 ~ 11.38 ~ 8.75
The costs in the columns labeled '19851sy' are directly from Table E-1.
Values in the shaded columns are the incremental costs to be
applied to pavement repair assessments, or assessment rates.
Exhibit '1" Page 4 of 9
Application of Incremental Costs
The methodology to be used includes a preconstruction survey using the MTC
guidelines for establishing the PCI. This will be done for the entire surface area of a
street, and will be conducted jointly by both the City's representative and the BART's
representative. The amount of area included into each PCI segment can be agreed
upon in the field, but is not recommended to include more than 500 linear feet. The
results of the survey will be recorded and the PCIs computed. After construction has
ceased, the same procedure will be followed, and any decrease in PCI will be used as
basis for computing the dollar value of the damage.
BART willl pay this amount to the City, and the City will then use the funds toward the
maintenance/rehabilitation of the street on its own schedule. This method avoids three
problems common to the process: 1) the procedure is established up front, thus
arguments concerning the method of assessment or repair are avoided, 2) BART can
avoid making repairs that bdng a street to a PCI of 100 when it may have been much'
less pdor to beginning work, and 3) BART can be assessed for small amounts of
damage that previously had not been corrected because they did not warrant repairs at
the time. The pre-construction PCI will govern the rate category.
For any projects for which the haul routes are used for more than one year, the change
in PCI will be reduced by an amount which represents normal wear and tear expected
on the pavement. Each treatment category is assigned a PCI discount based on the
number of years that a pavement would take to reach the lowest PCl in the category.
For the thin overlay category, the 50 PCI point drop would be reached in 20 years, or
2.5 points per year. For the thick overlay, the discount (based on 75 points over 25
years) is 3.0 points per year, and for reconstruction, the discount (based on 100 points
over 30 years) is 3.3 points per year.
In addition to this assessment method, a minimum serviceability must be maintained by
BART. That is to say all potholes and other damage that affects whether the street is
serviceable must be repaired on an ongoing basis as determined by the City Engineer
during construction.
Proposed standard language for permits is below:
Prior to commencement of any hauling, a joint survey shall be performed by the City and
BART to establish the Pavement Condition Index (PCI) for each segment of all haul
routes. This survey and subsequent PCI computation shall follow the MTC guidelines.
Upon cessation of hauling, a post-construction survey shall be performed to establish
the change in PCI. Prior to finalizing the permit, BART shall pay the City an amount
computed using the following formulas. These amounts shall be adjusted annually
using the construction cost index of the Engineering News Record.
Assessment = PCI Change x Affected Area x Assessment Rate
Exhibit '1' Page 5 of 9
Thin Overlay 100 < PCI < 50 (50 points)
Thick Overlay 50 < PCI < 25 (75 points)
Reconstruct Surface 25 < PCI > 0 (100
points) .
Arterial I Collector I Residential
0.0914 0.0914 0.0914
O. 1048 O. 1012 0.09~7
0.1855 0.1508 0.1159
The PCI change is the difference between the Pre-construction PCI and the Post-
construction PCl. For haul routes in use for over one year, a PCl discount will be
applied against the PCl change as listed below:
Treatment Category I PCI Discount I
Thin Overlay 2.5 points per year
Thick Overlay 3.0 points per year
Reconstruction 3.3 points per year
If the Post-construction PCI is higher than the Pre-construction PCI, the PCI change
shall be considered to be zero.
Additionally, the Contractor shall be responsible for maintaining all haul routes in a
serviceable condition by repairing all potholes and other defects affecting general
serviceability throughout hauling activities as directed by the City Engineer.
EXAMPLES.
Three examples are shown below. These are based on a haul route that is a 1,000 feet
long, 40' wide collector street. The PCI is measured in 5 - 200' increments. The haul
route is used for just over one year, so a PCl discount is included.
EXAMPLE "A" Roadway Segmeht
PCl Before 74 78 65 71 72
PCl After 70 76 52 66 69
PCl Change 4 2 13 5 3
PCl Discount 2.5 2.5 2.5 2.5 2.5
Final PCl Change 1.5 0 10.5 2.5 0.5
Affected Area (200 x 40 / 9 -- 889) 889 889 889 889 889
Assessment Rate 0.0914 0.0914 0.0914 0.0914 0.0914
Cost 122 I 0 I 853 I 203 41
TOTAL ASSESSMENT $1,2'19
Exhibit '1' Page 6 of 9
EXAMPLE "B"
PCI Before 55
PCI After 49
PCI Change 6
PCI Discount 2.5
Final PCl Change 3.5
Affected Area (200 x 4019 -- 889) 889
Assessment Rate 0.1012
Cost I 3151
Roadway Segment
62 58 54 60
59 47 46 47
3 11 8 13
2.5 2.5 2.5 2.5
0.5 8.5 5.5 10.5
889 889 889 889
0.1012 0.1012 0.1012 0.1012
45I 765I 495 945
TOTAL ASSESSMENT $2,564
EXAMPLE "C
PCI Before 24
PCI After 20
PCI Change 4
PCl Discount 2.5
Final PCI Change 1.5
Affected Area (200 x 40 / 9 -- 889) 889
Assessment Rate 0.1508
Cost I 201-
Roadway Segment
21 19 22 17
17 7 14 4
4 12 8 13
2.5 2,5 2.5 2.5
1.5 9.5 5.5 10.5
889 889 889 889
0.1508- 0.1508 0.1508 0.1508
TOTAL ASSESSMENT $3,82¶
Exhibit '1' Page 7 of 9
CONSTRUCTION COST INDEX [CCI)
· ~1: f~ 37~.~ J~ 1997
CCI: Ind~ 6~0~ J~ 1997
~R f~ue: ~7
~ auiidlng C~t Index [BCl) A~e~
Year Month Index Factor Factor
1987 Dec 754.39 4.847 0,206
1966 Dec 833.84 4.443 0.225
11~g Dec 834,84 4.438 0.225
~970 De~ 927.48 $.995 0.250
1071 Dec 1082.28 3.42~ 0292.
1072 De= 1189.53 $.115 0,321
107~ Dec 1240.77 2.964 0.337
1974 Dec 1380.03 2.687 0.375
1975 Dec 1508.51 2.450 0.407
1976 Dec 1688.84 2.194 0.456
t977 Dec 1788.85 2.095 0.477
1978 Dec 1040.78 1.gog 0.824
1979 Dec 2172.g~ 1.705 0.587'
1080 Dec 2395.21 1.547 0.647
· 108t Dec 2558.49 1.448 0.691
': 1082 Dec 2708.06 1.323 0.758
'1983 De~' 2828.13 1.311 0.783
1984 Dec 27,58,35 1.344 0,744
1085 De= 2~19,50 1.~14 0.761
1988 De(; 2961.4.7 1.251
1067 Dec 3044.27 1217 0.822'
1988 De= 3076.27 1.204
1089 Jan 3076.27 1.20¢
~ ;om. Be ~o~ o~2
Jul ~074..36 1.205
Oct 3074.$8 1.205 0.830
1090 Jan $119.95 1.167 0.842.
~ $148.09 1.178 0.849
Jul ~.24.4T 1.149 O,6TO
Oct 3231.99 1o140 0.872
1091 Jan ~245.04 1.142 0.8715
Apr 3180.42 t.t65 0.868
Jul 3215.88 1.1.,~2, 0.888
Oct 3215.81 1.162 0.868
1902 J~ 3260.55 t.133 0.883
Apr :~:~'~:75 .. 1.160 0.870
Jul 3200.44 1.134 0.882
Oct 3282.08 1.129 0.886
lgg~. Jan $296.40 1.124 0.890
Mar W00.48 1.119 0.893
Apr 3318.22 1.t t7 0.896
MW' 33:~B.18 1.110 0.901
Jun 3:378.80 1.097 0.011
Jul :3409.01 1.088 0.020
Aug 3421.88 1.083 0.924
8ep 3463.34 t.ITZO 0.035
~ 3435.77 1.078 0.92/
Exhibit "1"
8an FranciBco Bay Region
Published by'~=-nglneeflng News Recom"
Year
1967
1;68
t970
1971
1972
1973
1074
1075
1070
1977
1078
1970
t080
198t
1082
108~
1054
191~5
1986
1087
1989
1990
1991
1992
tgg3
Construction C(;st Index [CCI) --
Adjustment I Over
Month Index Factor Faclor
De= 1317.62 5.09 0.20
Dec 1413.24 4.741 0.211
Oe~ 1471}.41 4.538 0.220
Deo t598.08 4.193 0.230
De= 1M9.4~ 3.023 0276
Dee 2021.54 3.314 0.~02
De= 2235.M, 2.997 0.334
Dee 250~.50 2.~71 0.374
Dec 2507.0T 2..3,67 0.4.19
Deo 3t04.02 -2.159 0.463
Deo 3150.78 2.127 0.470
Dec 5412.20 1.954 0.509
De(; $B06.14 1.760 0.668,
Dec 4371.96 1.533 0.653
Dec, 4592.45 1.4.59 O,~B5
Dec 499;.30 1..342 0.745
Dec 5.122.74 1.308 O.Ta$
Dec S540.t3 1.327 0,754
De= 5~5.0¢ 1.32,5 0.754
Deo 6508.43 1.~16 0.622
Dec 5732.~7 '1.169 0.858
De(; 6734.4.8 1.168 0.856
Jan ~48 1.168 0.856
Apr 5'r42.0g 1.167 0.857
Jul. . b'732-~ 1.169 0.BTB
Oct ~32.57 t.16.9 0.856
J~ $9~.5/ 1.129 Q.M~5
Apr 59~.71 1,124
Jul 61342,55 1 ,t 09 0,902
Oct 8~42,55 LlOg 0.9O2
~ 8~55.8t 1.t06 0,904
Apr $O90,Og- t.118 0.894
du{ 6t31.10 t.093 0,915
Od: 813%04 1,093 0.glS
J~n 6220.71 1.077 0.92~
N~' e234.31 1.075 0.~30
Jul 6270.02 1~ 0,936
O~t 6285.42 1.008 0.038
Jan 6293.15 1.065 0.939
Mar 8398.20 1.052
Apr 6574.06 1,051 0.961
May 6394.92 1.846 0,954
Jmt 048~.65 1.036 0,g86
Jul 84~.~, 1.038 . 0.g~5
Sop ~489.00 1.0~ 0.068
Oct 6489.09 1.033
Page 8 of 9
BUILDING COST INDEX (BCI} - (~913 ,-
CONSTRUCTION COST INDEX (CCi) -
· BCt: me,ex: 3704.66 Jun 1997
CCI: Index: 67~2.2 Jun 199?
ENR Issue: 0M)2/97
~ Bu;{~ng Co=t Index {BCI) ~
Adjustment 1 Over
Year Monlh Index Factor Factor Year Month
Nov 3434.46 t.DTg 0.g27 Nay
t094 Dec 3428.04 1.081 0.925 1994 De~.
Jan 3438.60 1.077 0.928 Jan
Feb 3448.79 1.074 0.93t Feb
Mar 3467.40 1.0~S 0.936 Mar
Apr 3471.38 1.067 0.937' Apr
May' 3480.14 '1.065 0.939 May
Jun 3499.57 1.059 0.~45 Jun
Jul 3509.53 1.056 0.947 Jul
Aug 3510.41 1.055 0.948 Aug
Sep 3513.90 1.054 0.948 ~ep
Oct 3513.g0 1.054 0.946 Oct
Nov 352~.79 1.050 0.952 Nov
Dec 3519.17 1.053 0.950 Dee
1995 Jan 3507~0 1.558 0.947 1 gg5 Jan
~ Feb 3507'.20 1.058 0.947 Feb
· . Mar 3505.61 1.057 0.946 Mar
Apr 3508.56 1.056 0.947' Apr
May 3514.00 1.054 0.948 May
Jun 3531.80 1.049 0.953 Jun
Jul 3542.11 1.048 0256 Ju!
Aug 3557.91 1.041 0.960, Aug
~ep 3549.95 1.044 0.958, 8ep
Oct 3b'/9.79 1.03S 0.1N~ Oct
Nov 3569.42 1.038 0.g63 ' Nov
~ 35~1.60 1.040 O. g81
1996 Jan ~5. 50.17 1.044 0.g58 lg9~ Jan
Feb ~540.38 1.048 0.956 Feb
Mar 3537.28 1.047 0.955 Mar
&or
~ 3540.05 1.047 0.956 Jul
Aug 35t2.2g 1J~55 o.g4a Aug
8ep 3531.~g 1.049 0.953 8ep
O~ · O~
Nov Nov
tgg7 den 3532.~ t.049 0,g,~l lgg7 ,/an
· .Feb ~.~14.72 t.O4~ 0.gb'7 Feb
~ar Mar
Apr Apr
May May
dun 3704.80 1.000 1.000 Jun
Jul Jul
Aug Aug
8ep 8ep
Exhibit "1"
~mt Fran~sco Bay Ragion
Published by '~.xtgtrleadng News Rec~rcl'
2
Construction Coat Index (CCI) --
Adjustment 1 Over
Index Factor Factor
0484.30 !.033 0.968
0¢'/7.95 1.03¢ 0.967
04~1.51 t.033 0.968
6498.70 1.051 0.970
65f7.3~ 1.028 0~973
6521.28 1.027 0.973
8536.04 1.025
6557.48 1.022 0.970
6587.44 1.020 0.980
65.~.09 1.023 0.978
6553.57 1.022 0.978.
6553.5;' 1.022 0.978
6537.97 1.025 0.976
653;3.35 1.026 0.976
6516.38 1.028 0.973
8518.38 1.928 0.973
6.516.79 t.028 0.973
8519.51 1.028 0.97:3
8524.95 1.027 0.974
6542.75 1.024 0.976
6552.16 1.023 0.g?8
6577.g5 1.019 0.982
8589.99 1.020 0.981
658?__5O 1.018 0.982
8572.14 1.019 0.981
6558.16 1.Q22 0.G79
6546.74 1.023 0.977
5556.94 1.022 0.979
5553.B2 1.022 0.978
5550.87 1.025 0.978
6556.59 1.022 0.970
5528.85 !.028 0.974
6548.15 1.023 0.977
. 6549.61 1.023 0.978
6548.86 L023 0.917
85~1~-~ 1.021 0.979
6700.22 1.000 1.000
Page g of g
THIRD PARTY CONTRACTING REQUIREMENTS
FTA CIRCULAR 4220.1D
INTER-OFFICE COPWf0NI CATION
TO:
Fromz
All Attorneys
Sharon Flin
Date: -.June 18,. 1996~--~
RECEIVED
Subject: FTA c 4220.1D
OCT 1 0 1996
EXTENSIONS
· CONTRACT
MANAGEMENT
I have reviewed~he new circular 4220.1D and o~her than format and
gr~_~, the following are the only changes Zrom the former
4220.1C.
1. In Section 7.f., #Use of GSA Schedules And Excess or Surplus
Federal Property#, the phrase "once GSA develops procedures,, was
added at the beginning of the first paragraph before the word
"State".
In the second sentence of this same paragraph, the word
"par~icipating" which appeared after the word efrom- and before
"GSA" was deleted; and the word "contractore was deleted which
appeared a£ter "GSA" and before "and".
2. A new paragraph ea. Procurement by Mioro-Purchaees" was added
~o Section 9, "METHODS OF PROC~m. NT". (See circular for text)
3. In 9.b.,(9.a. in 4220.1c) "Proctlre~ent by Small Purchase
Procedures", "cost more than $2,500" was inserted after "property
thate and before "do note in t he third line of the first paragraph.
4. In 9.g.(1), "Evaluation of Options", the phrase %'If required in
the solicitation,e was deleted.
5. In Section 16, eSTATUTORYANDREGUIATORYREQ~S", -(such
· as Davis-Bacon Act, Dieadvantaged Bueines$ Enterprise, Clean Air,
and Buy Amerioa)# was~nserted in the first sentence after,he word
"pr0ouremen~" and before the word "is#.
Michael O'Connor
Attachment (LMA~ttorneys)
10090.1
CIRCULAR
U.S. I;:)epamTtent
of Transpo[tation
Federal Transit
Admb'dstration
1~& c 4220.~D
,Eg iVED
MAY C.
I~'NI:RAIJ~IAt~.GER'$ OFFICE
PDI~OSE. This circular sets forth the requ£remenCS a .qrantee
must.` a~here to in the solicit=eton, award ~nd administration
o£ its ~hir~ party contracts. These re~uirem~ts are base~
on the co0m~m gr~-t rules, Federal statutes, ~xecutive orders
azu/ their /m91ement~n9 reGulat£ons, _~_nd PTA policy.
_OAN~.T.%TZON. This circular cancels FTA Circular 4220.1C
Party Contracting Requirements, · dated 10-1-95.
a. Federal. Transit Laws, 49 U.S.C. Chapter 53.
Intez=m~al Surface Tr_~_~portation Efficiency Act of
1991 (ZST~A), P.L. 102-240.
c. Sect, ions ~001 and 1555 oE the Feder&l Ac~uisttion
Screamllntn9 Act of 1994, 41 U.$.C. § 403 (11) and
· 0 U.S.C. § 481(b}, respec~ively,
d. 49 CF~ part 18, U-4 [orm A~m4 n4 strative 1~ec/utrements
for Gr~s _~..~:_~ Cooperative Agree-~ts to S=a~e an~
~ocal Gover/m~nts.
e. 49 CI~ pa_~C 19, Uni:l[orm /%.~4-4stractve 1~-~uir~cs
for Grants ~n~ .A~reements wi~h Institutions of
Higher-P~uca~ion, Hospitals, an~ Other Non-Profit
Organizations'.
f. Executive Order 12612, .Fe~eraliem," 4._~.t.,ed 10-26-87.
9. FTA Mas=er AGreement.
4. APFLI~BILZTY. This circular applies to _~ 1 PTA Grantees
~~t.,ees t~t contact with ~t~ide e=oee ~er ~A
USiS~e pr~. If a ~tee accepts
t~n-tt-~lat~ t~ p~y ~rchaee o~ers ~n~
~A=~~, ~A H~e~ 0f~ices (T-W-2) ~X, Office o~
~ ~i0~l Offices (T-X-2) ~c~c
~A Gr~eee
Page 2 PTA C 4220.1D
4-15-96
· ~tat.es. When procuring property and services %ulder a
grant, a State will follow the s.-m- procurement pol£oies
_~-d procedures that it uses for procurements using
non-Pederal funds. States must, as a minimum, comply
with the requirements of paragraphs ?m, Sa and b, &ad 9d
of this circular and ensure that every purchase order and
contract executed by i= or a sub~rantee using Federal
funds includes all clauses required by Federal statu~es
~-d e. xecu=ive orders and their ~plementing re9ulations.
Sttbgrantees of states (excluding lnstl:utions of higher
education, hospitals or other non-profit ozu_~-[zations)
shall follow state law and procedures when awarding and
a~m~-[stering contracts.
Regional transit authorities are not state agencies or
instrumentalities for purposes of this circular.
If a transit authority receives funds both as a direct
grantee and as a sub~rantee from a State, the State may
permit the tr~it authority to follow the requirements
of chis circular instead of State procurement
requirements.
.Ot~er Recipien~. Subgrantees of states which are
institutions of hi~her education, hospitals or other
nonprofit organizations, and all other PTA grantees will
&~J'ster contracts in accordance with thiscircular.
POLICY. FTA's role ~ ~rantee procurements is reflective of
Executive Order 12612, Federalism, which directs Federal
agencies to refrain from substitutin~'their Judgment for that
o£ their recipients ,,-~ess the matter is primarily& Pederal
concern an d to defer, to the maxi mu m extent feasible, to the
States to establish standards rather than setting national
The National Perfo~.~ce Review Team ,-~ FTA ~ra~.~ees and
their con~ractors have requested FTA=o clarify the
requirements appllcable to ~r~_-tee procurements. In
respc~_.~e, FTAhAs decided to reduce its role in~r~.n~ee third
party procurement &ctivit~ in sevezal im~ort~-t respects. At
the same t4m~, to ensure c~mp. liancewithPedera!procurement
requirements, FTA intends to ~ke ~uidance ~n~ techni~l
assistance more accessible to its ~antees consistentwith
£CS Pederal oversight responsibilities.
~z~_~te_e ~elf-~-e~c~F~cat£o.n.. Reco~nizing that most PTA
gr--tees have severs/ years enq~erience with the third
pa~-ty ¢on~ractiug requirements of the "c~ Trant
rules" (49 CFR parts 18 and 19), FTA intends to rely
pr~-~rily on ~-an=ees' "sel£-cezl;iEications, tha~ their
procurement system meets. FTA requirements to suppor~ the
required f;-~$ng that a 9rancee has the technical
capacity to ccx~ly with Pederal p~~~ requirements.
FTA C 4220.1D
4-15-96
Consequently,'iall grantees -~,et 'self certify' in the
~val Ce~cification/Assur~ce Process.
FTAwill monitor compliance as par~ of its routine
oversight respons~ilities. If FTAbeoomes &w~re of
circumstanoee'whichm/ght ~nvalidate & gra_-cee's
self-ce~c££ic~Cion, PTA will investig&te and recommend
appropriate m~asures co correct whatever de£ioiencymay
exist.
FT~Pre~award£evie~ o~ Third ~art~ Cont. rac~.
Consistent wi~h a reduced Pederal role in ice grantees,
pro~uremen:s,!'FTAin=ends to rely to a greater extent ou
the validity of eaahgranteees self cer~ific&tion rather
than on PTA~e!.pre-award review of third Dar fy contra¢:s.
Accor~Lngly, chis circular eliminates F~A~re-a~
review of thirdp~r:y cootracts in favor of periodic,
post gra-c r~views ~0 ensure that grantees &o in fact
comply wi~h Pedezal requirements an~ sta-~rds. Grantees
are always £~ee to request PTA's pre-award review of
their procurements, conversely, if FTAreques:e ~o
review the r~cor~ of a pa~cicular ~roaurement, grantees.
must make their procurement documents available for PTA's
pre-&waz~ (o~ poeC-awazd) r&view.
c. Procure~e...Dt ~stemRe~lews. FTAis required by49 U.S.C.
§530? co perfoz~reviews a,a evaluations of grant
pL~::>g~_me m~fl~tope:L'~OZ~.a f%Lll reviewand evaluation of
the performance of grantees in carrying out grant
progxams w~hspec~Lfic reference to cheer comDliance wi~h
~ will Dez'~ozm procuremen: system reviews as parc of
=ts on-going~oversigh~ responsib%lity. PTA may.rec~and
im~roving £t~ procurement practices. In such cases, PTA
d. ~ ~woC~l~=m~nt ~echnical As,£s~a-~e. 'F~Lwill also
provide procurem_~: cra,4~ng and technical assistance at
bo~hregional an~ationa~ levels by offering~---lous
~n~trao~io~ cotLTses ~n~by issu/~g ~- PTA Third Party
Procurement Manual. The r~nl~.] will con, a{ n procurement
cjui~a~<~.e ~n&~. "best practices" chat gr~_n=ees may choose to
follow in pe~fozmLtng their procurement f~nctions. T~
SUCh cases, FTAwI11 identify such rece~e-ml~ations as
· Advisory. · ·
e. g, on:,'ao~ ~l~Lgees .ns ~rovieloms. T~e Mas~er A~reement,
issued ~wmmaly, lists &11 ~he PTA and other Peleral
cross-ou~ti~ requirements applicable to FTAgrantees.
Many of these z%~tuiz~aen=a are related uo gram:es
Dro.=ur~men=eL Fur:her gulf--ce and suggested wora~ng for
oon=~aoc ~l~es ax~ provision- will be provide4 in
4-15-96
Use of c~=~ral..9~v~ge~_~Admin~ srwat4 on CGSA) ~-hed,,les.
As a result of ~e Pede~ ~isition Stre~m~in~g Act,
certa~ ~tees will be ~tted to ~e purchases
~ugh ~SA supply e~ules ~ acco~nce wiuh GSA
p~lish~ process. ~ui~*-ce will be pr~id~ ~ the
~i~ P~y P~c~t ~ual.
pgFv~'I~OHg. All def!~tions in 49 U.S.C. §5302 _~re
applicable to this circular. The following definitions are
provided:
-~-~antee, means ~he public or private entity to which a
grant or cooperative agreement is awarded by FTA. The
grantee is ~he entire legal entity even if only a
particular oo-~.onent of the entity is desi~nated in the
assistance award document.
For the p%lrposes of this circular, "grantee" also
includes any sub~rantee of the grantee. Furthermore, a
grantee is responsible for assuring that its gubgrantees
comDly with ~he requirements and s~a-d~ds o~ ~his
circular, and that subFrantees are aware of requirements
imposed upon them by Federal statutes an~ regulations.
· S~ate' means any of the several states of the United
States, the District of Columbia, the Conmonwealth of
Puerto Rico, any. territory or possession of ~he United
States, or _~-y a~ency or instrumentality of a state
exclusive of loc~1 ~ove.~nts. "S~ate" does not include
a county, ..~._,-~ciDality, city, town, township, local
public authority (which includes _~_~.y public and
housing a~ency ,,nder the United States HOUS~n~ Act of
19~?) school ~4-~--ict, council of governments (whether or
not incorporated, as a nonprofit corporatio~ ,_,nder state
law), any ocher 're~ional or ~nterstate government entity
(such as a regional Cr~___-~_it authority), or any agency or
4--trumentali~y of a local government.
c. '.I~TA" refers =o ~he Pederal T£~--~it A~m4Dietracion.
d. ,Th4r~ party cont~a~t' refers to s~y p~rc_h_ase order or
contract awarded, by a Trances Co a vendor or contractor
ustu~ Fedez~] financial usistanoe awarde~ by FlA.
C~nform~_.~ce with -~t~te add r~.l r,aw. Gr_-__-tees and
~cees s~l ~e ~eir ~ pr~~n~ p~ged~s
~t reflect a~li~le S~Ce ~d lo~ ~ws ~
~atio~, p~d~ that ~e pro~r~s ~o~ to
appli~le F~ law, ~=l~g ~e ~ir~Us s,~
b. _~.gnt~ct ~_~_~/n["~Fati~n 8y-tern. GL-o. nCees s_~_-_~ 1 maintain
a ~ontract adm~4stration system that a--utes that
4-15-96
contractors perform in accordanoe with the terms,
cond/tions, and sDecifications of their contraots or
purahase orders.
Ce
Wr~tt.en ~t---dards 0f Conduct. Grantees shall maintain a
writ=eh co~e of st~-d~ds of conduct go-,,er=U ~e
perforce of ~eir e~loyeee ~gage~ ~ ~e a~ ~d
~-Cee s~ll :~ici~e ~ ~e selec=~, a~, or
co~lic~ o~ interest, re~ or ap~ren=, ~d be
~ e~lved.
Such a confli¢2 would arise when any of the following has
a fi~_-__ncial or other ~n=erest in the firm selected for
award:
(1) The employee, og£tcer, agent, or Board member,
(2) ~ny member of his/her ~mmediate £amily,
(3) His or her Dartner, or
(4) An orcjanization th~= e-~loys, or ks about to employ,
'any of ~he above.
The grantee' e officers, employees, agents, or Boar~
members will neither solicit nor accept gifts,
~ratuicies, Z. avore, or anything o~ monetary value f_rom
contractors, potenti&l contractors, or parties to
eub~greements. Grantees -~y set m4~4m~, rules where the
unsolicited item of n~~ intrinsic value. To the,
extent ~e~u.'Ltt:e~ 1:~ stace or local law or re~ulations,
'such s~%na~ds o£ con~uc~ will provide for penalties,
s_~-¢~ions, or other discipliuary aa=ion for violation of
such s~-~&~ds by the grantee's officers, employees, or
agents, or by contractors or their agents.
~nqu~4%a MOS~- ~f~ic~l;; A.~I ~conomio ~u~chase. Grantee
procedures sb_~ 1 provide for a review of~ proposed
procurements-to avoid pu~.~2ase of ~eceesa~ or
duplicative ~,tem~. Cons=deration should be given co
consolidating or break4-g ~t procurements to obtain a
more economical purchase.
~here a~ropriate, an analysis will be made .of lease
versus ~urchase alternatives _-__nd any o~her appro~r£ate
:~ysis to ~eter~4-e the most economical approach.
e. ~nte,~goy~m~al P~o~uv~,~nt Aa~ement~. TO foster
greater eco.~ and efficiency, grantees are encourage~
to enter info .graCe _-_-d local inte~gover-~.utal
agree-~nts for procurement or use of c~.~on good5 o,~
se=vices. The =equ~z~ments and s~.a~a~ds of th~s
Page 6
FTA C 4220.~D
4-15-96
circular apply =o procurements entered into under such
agreements using FTA funds.
f. Use of GS;t~hedulRs And Rxcess Or.SurD]us Federal
P~o~e~%y. Once GSA ~evelops procedures, State and local
grantees m~y use Federal supply schedules (FSS) of GSA
for the procurement of certain goods and services, 40
U.S.C. §481(b). Price lists will ~hen be avallable
~SA ~_~dmay include anadm4nistratlve fee ~or GSA in the
price of items on the schedule. Grantees must con, act
....................... sch u es.
~rantees are encouraged to use Federal excess and surplus
proper=y in lieu of purchasin~ ~ew equipment
property, whenever such use is feasible and reduces
project costs.
~se of V~ue Ena~neerin~.{n Const~,ct4op Contracts.
Gran~ees are encouraged to use value eng~eering clauses
~- contr&c=s for construction projects of sufficient size
to offer reasonable opportunities for cost reductions.
Value engineering is a systematic and creative analysis
of each con=tact item or task Co ensure that its
essen~ial function is provided at the overall lowest
cost.
~_waz~s to Respon~4h~e C~nt~cDors. Grantees shall make
awards oD~y ~o responsible contractors possessing ~he
ability to perfozmsuccessfullyunder ~he terms and
conditions of a proposed procurement. Consideration
shall be given to such matterS as contractor integrity,
com~liance wi~hpublic policy, record of past
perfor~__.~ce, and financial and tech-{dal' r~W6urces/' '
Written _Reco~d of.P~ocur~mgnt Hietgry. Grantees shall
_~_~t&inrecords de~a£1ing the history of a procurement.
At a m4-~mum, =hess recoz~s sh-ll include;
(1) the rationale for the method of procurement,
(2) selection of contract ty~e,
(3) reasons for contzactor selection or rejection, and
(4) ~he basis for the contrac~ price
Us_e of T~e -~ Mate_.~',t.,~l~ Ty~e Contract~.
use time ~-~=erial type contracts only:
Gra-tees will
(1) After a decer~4-*tion t~at no o~her type o£ con=tact
is sui~able; and
(2) If the contract specifies a ceiliu~ price t/mc the
contractor shall not exceed except at its own risk.
4-15-96
k.
Is~ue~/1~4 ~p~tFe~. G~ees
acco~ce wl~ g~ a~n~e~tive
b~ess Ju~~ for ~e
These issues inolude, but are not limited to, source
evalua~iono protests, d~sputee, and claims. These
s~~ do no~ relieve the gr--Cee of _*-y contrao~ual
PTA will no= substitu~e its judgmen= for cha~ of ~he
9r~_nCee or sub~rantee, ~less the matter is ~rtmarily a
Fe~e. ral concern. Viol&clone of khe law will be referred
co =he local,. S~&Ce, or Fe~er~. ~ authority having proper
~ uris~ c~ion.
Written_ Prof. s_st Procedures. Gran~ees shall have writnen
protes~ procedures ~o h~.a~ e and resolve disputes
rela~i~ ~o their proouremenCs ~n~ shall i~ all instances
disclose ~nf0~tion re~ardln~ the proces~ ~o PTA. All
~rotee~ decisions mas= be in writinG. A pro=ester must
exhaus= &11 a~m{-4scr&=ive remedies wi~h the grantee
before purs%~in9 a protest wich PTA.
- Reviews of protests by FTA will be limite~ to a gr-~tee,s
£ailure =o have or follow its pro~es~ procedures, or its
fa/lure ~o review a cc~Dl&int or protest. An ~ppeal ~o
PTA must be received by the cognizan= FTA' regional or
Headquarters OEfice within five (S) workin~ _~_~ys o~ ~he
da~e the protester knew or should have known of the
viol&=ion.
Violations of Federal law or recjulation will be handled
by the compl~int process sta=e~ with{n ~hat law or
regul&tion. Viola~ions of S~ate or local law or
recjula~ions will be ,~-der the jurisdiction of State or
local authori~ies.
Contract Per. iod of Perfo,~-_ _nee ¥,{~C~iOn. Gran~ees
shall not ~-~er ~ ~y c~C~ct wi~'a peri~ of
perfo~oe ~ee~ five (~) ~ars lnclusi~ of ~=io~
~C~u= prior ~it~ ~A appr~l.
Full and O~en Competition. All procurement crans&c~ions
will be cond~CCe~i~.a"~'-nne~ provi~in~ full an~open
compeCiCion2 Som~ of ~he situatio~s oonsidered~obe
res~ricuive 'of con~eticion ~.~=lude, bur are no= l~m4ted
gage 8
Ce,
4-15-96
(2) Unnecessary ex~erience and excessive bonding
rec/uirements;.
(3) Noncom~euitive pricing practices between firms or
becween affiIia=e~
(4) Nonoompeti=ive awards to any person or firm on
retainer contracts;
Org~nimational conflicts of interest. An
organiz&tioual.c~nflict of interest meene that
because of other aotivities, relationships, or
contracts, a~oontraotor is unable, or potentially
unable, to ~r ~.m~rtial assistance or advice to
the ~_~tee; a contractor's obJeotiv~ty in ~er£orming
the contract'work is or might be otherwise im~ired;
or a contractor has an unf&ir com~etitive &~vantage;
(6) The specification of only a "brandname" product
without listin~ its salient c~u~acteris~ios and not
allowin~ "eu~equal" product Uo be offered; an~
(?) Any arbitre~y action in ~he procurement process.
or lOc~ ge~~ p~fer~oes ~ ~e e~uation of
bi~ or pr~s~s, ~ept ~ those ~es whe~ a~li~le
Feder~ s=a~u~es ~ssly ~-~=e or ~c~ge
ge~~c p~fer~ce. ~s ~oes not p~=. 9~=e
licking laws. H~er, geog~p~c lo~tion ~y be a
~gine~g (~) se~c~ pr~~ its a~lication
l~ve~ ~ a~r~te ~her of ~lfied f~, ~iven
~e ~=~e ~_~ size of ~e pro]ec~, =o c~e~e for ~e
con=tact.
W~i~-~ P~ocur~ene. ~el.ecr~Lon Procedures. Grantees
have wri~=en selection~rooe~ures for ~rocurement
tra~s&c~io~ls. All soliciCations sh~ll~
(1) Incorporate a clear an~ accurate description of the
~echnice.l req~Lrements for the material, pro~uc=, or
service ~o be procured. Such desc~-lpt/on shall not,
in com~etitive procurements, contain features that
uncluly restricC ~om~etition. The ~eSeription
include a s~a~ement of ~he qualita~ive nature of the
material, ~r~K%uct, or service Do be Drooured en~ when
necessary, shall set forth those m~g~,~,, essential
chexacteristics an~ steapsins to which it must
coa~orm if ~t is to satisfy its intem~eduse.
DeDaile~ Dro~luct speci£ications should be avoided if
at all possible. When it is ~m~ractioal or
FTA C 4220
4-15-96
uneconomical tO maJce a clear _-.._~d accurate
description of the technical requirements,
name or equal, description may be used.
a 'brand
A 9~_~_ntee shall use a "br_~_-d name or equ~l"
description only wh~u it ~o~
~ci~i~cion or ~ decailed description, wi~h~t
perZo~4nS ~- i~c~ion ~d ~--lysis, in t~ for
~e ac~is'ition ~der co. ideation.
c~fully id~=ify ice
~o~ ~ose sali~= physi~ ~d
~c=er2s~ics of the b~ ~ pr~uc~ in the
solici~t~on.
(2) Identify ~11 requirements that offerors must ful£ill
and ~11 o~her factors to be used in evaluating bids
or proposals.
P~equa/if.~cation_ c~i~er~. Grantees shall ensure that
all lists of prequalified persons, firms, or products
that ar~ used tu acquir~n~ ~oods and services are current
and include enough qualified sources 2o ensure max/mum
f~t11 _~d ope.~ con~etitfon. Also, ~r~cees shall not
preclude potential bidders ~r~n quali~-yin~ durin~ the
solici~a=ion period, which is Erin issuance of the
sol£cita~ion to its closin~ date.
~~S DF FR~CU~mWT. The Eollowin8 methods of
procurement may be used as appropriate:
Procur.~nt b~ Micro-Purchases. Procure~-~t by
m/cro-pur-_-_~*~ee are nhose purchases under $2,500.
Purchases beIow ~ha~ ~-~eshold may be m-de without
ob~4~g cc~e=itive quoha=ions if 2he ~r~tee
determines ~t ~ price ie ~a2r ~ r~s~le. Su~
~e~ s~uld be ~i~le ~sC~tion
supplie~ (~ ~e 1~ ~a) ~,~ no split=~ of
p~~~ to a~id c~eciti~.
applies to c~c~cUi~ contacts be~e~ $2,000
$2,500. ~n~ do~~t~ is r~ed: A
dete~n*tion ~t ~ price
~v ~s dece~-~cio~ ~ deriV.
p~c~s ~ ~ose relatively s~le ~-~ ~o~1
p~=m~ m~ for se~-~ semces, sullies, or
o~ pro~ ~h cos= ~re ~ $2,500 ~t do no= cost
~ t~ ~e e~li2i~ aa~isi~ion ~shold E~ at
41 U.$.C. ~403(11) =~ly eec a~ $100,000. IZ ~]1
~=~e p~ed~s ~ ~ed, price or ~=e ~o~=io~
s~l ~ ob=~n~ fr~ ~ ~e~e ~er of ~lified
Page 10 ~ a~ u
4-15-96
P~ocuremer~ Rjr .Sea]e~ ~/Tnvi~at. io~ For Bid $~).
Bi~ are ~licly soliait~ ~d a fi~-f~ed-price
co~t~c~ (1~ s~ or ~ price) is a~~ to ~
respo~le bidder whose bid, co~o~n~ ~ch a11 ~e
~=eri~ ~e~-~ ~ condicio~ of ~he ~tation for bi~,
is ~e lowest in price.
(1) In order £or sealed bidding to be feasible, the
following conditlon~ should be presen2:
(a) A complete~, adequate, a~d realistic specification
or purchase description is available;
(b) Two or more responsible bidders are will~n_g and
able =o compete effectively for the busines~;
(c) The procurement lends itself to a firm fixed price
contract and r_he selection of the successful
bidder c~n be made principally on the basis of
price.
(d) No discussion withbidders is needed.
(2) If this procurement method is used, the followin~
requirements apply:
(a) The invitation £or bids will be publicly
advertised and bids shall be solicited from an
adequate number of known suppliers, providiu~ them
sufficien: t.~- to prepare bids prior ~o ~he da~e
set for openin~ the bids;
(b) The _~nvitation for bids, which 'will include any
specifications and pertinent attachments, shall
define the items or services sought in order ~or
~he bidder to .properly respond;
(c) All bids will be publicly opened at the time
place prescribed in =he _~_nvicauion for bids;
(d) A firm fixed-price contract award will be made
in writin~ to the lowest responsive
responsible bidder. Whe- specified ~n biddin~
do~um~--~s, factors such as
=r~-po~ca~ion costs, and life cycle costs
' shall be considered in de=erm~{~g wh~-h bid is
lowest;
Paymen~ discounts will only be used to
de~-rm~ n- ~he low bid when prior .ex~erience
ind~ca~es that such 4_~ecounts are usually taken
adv~_-~a~e of; and
(e) Any or ax1 bids ma__y be rejected if ~here is a
sound d~cumented business reason.
FTA C 4220.1u
4-15-96
d®
(3) The sealed bid method is the preferred method for
procuring construction if the condition~ in
pa~ag~ph 9 c (1) above apply.
procurement ~y Competitive Pz~posal/Reque~t £or
~ro~osals. f~FP). The aom~e=iCive proposal method of
procurement is noz=nally conducted with more than one
source submitting an offer i.e., proposal. Either a
a~arded. Thi~ me=hod o~ procurement is generally used
when condi=tons are no,- appropria=e for the u6e o£
sealed bid~. If this procurement method is used the
following requiremen=s apply:
(1) ~equests for proposals will be publicized. Ail
evalu&t~on £ac=ors will be identified &lon~ with
their relative im~urt~ce.
(2) Propos~3s will be solicited fromm- adequate number
of qualified sources.
(3) ~rantees will have a method in pl&ce for conducting
2eohnical evaluations of the proposals received and
for selectin~ awardees.
(4) Awaxds will be made ~o the responsible firm whcse
proposal is most advantageous to the 9~antee~s
pro~ramwithprice ~d other factors co~sidered.
The Brooks Ac= requires that:
(1) .An o~£eror'e qualiEica=ions be evaZuated;
Price be excluded am ~ evalua=i~u fac=or;
(~) Nego~iations be conducted with only ~hemost
qualiflied oE~eror; and
(4) Failin~ agreement on price, negotiation~with the
next most ~u~lified offeror be conducted until &
contr~cg award can be made to ~he'~ost qualified
offeror'whose price is fair and reasonable to the
Thio'uqualifica~ionsbasedproc~rementmethodu c~n only
be ueed £or the procuremen= of A~B se~w-lces. This method
4-15-96 '
fe
of procurement cannot be used to obtain other types of
se=vices even ~hou~h a firm t/mt provides AaE services is
also a potential source to perform other types of
services.
These requir~ts apply except to the extent any s~ate
adopts or has a~opte~by statute a formal procedure for
the procurement of architectural and engineering
services.
procurement By. Noncomp_etitive. Proposals ~$ole Sou=ce).
Sole Source procurements are accomplished through
solicitation or.acceptance of a proposal from only one
source, or after solicitation of a number of sources,
competition is determined inadequate. A contract
amendment or change order chat is no= within the scope of
:he origin&l oontract is considered a sole source
procurement :ha= must com~ly with this subparagraph.
(1) Procurement by noncon~etitive proposals may be used
only when ~he award o: a contract is infeasible under
small purchase procedures, sealed bids, or
com~etitive~proposal~ a~_d at leas~ one of the
following circumstances &pplies:
(a) The ite~ is available only from a single source;
(b) The public exigency or emergency for the
requirement will'not permit a ~elay resulting from
co=~etitive solicitation;
(c) FTA authorizes nonco~etitive negotiations;
(d) After solicitation of a number o£ sources,
coa~etition is determined inadequate~ or
(e) The item is an associated capital maintenance item
u defined in49' U.S.C. §5307(a)(1) t. hat is
procured directlyfremthe original manufacturer
or supplier of ~he ite~ to be replace~. The
grantee 'taus: £~rst certify~n' writ/nS :o ~:
(i) ~aet su~ ~fac:urer or auppli~r ie ~e only
so~e for su~ it~; ~ (ii) ~t ~ price of
eu~ i~m i~ ~ ~gher tb~ ~e ~ce ~id for
suCh item by like customers.
(2) A cost analysis, l.e., verifying the proposed cost
data, the projections of the data, snOt he evaluation
of ~he spec££ic elements of costs and profit, is
requ~re~.
Options. Grantees may include options in contracts. An
option is a unilateral right in a contract by which, for
a specified time, s grantee may elect to purc~ase
ad~Ltional equipment, supplies, or services called £orby
FTA C 4220.LD
4-15-96
the con=tact, or may elect co e~x~e~d the term of the
contract. If a grantee chooses to use 09tions, the
requirements below &pply:
~valuati~n .o~ _0~tig.n~. The option quantities or
periods co~tained in the contractor~ s bid or
must be evaluated in order to determine contract
&ward. ~nen options hav~ not been evalvated as part
o~ the award, ~he exercise of such o~tions will be
considere~: a sole source procurement.
(2) Exercise of Options.
(a) A gTantee~ ensure ~hat ~he exercise of an
option, is in accordancewith the terms and
conditions of the option stated in the initial
contrac~ awarded.
(b) An option may not be exercisedunless the 9r~ntee
has det~4~ed that ~he option price is better
t.h~ prices available in t he market or that the
optio~ is the~ore &dvanCa~eous o~fer at the tilue
the option i~ exercised.
co~ction~ ~e~pro~~t action, in~u~g contact
~ficatio~. ~e~~~ ~e of ~ysis
de~~= ~ ~e fac~s ~~ing the~i~pro~~t
eit~tion, ~ ~:. a st~ing point, ~-tees
~dep~t est,=es ~ore reoei~ bi~ or
a. Cost ~ysts~ A cOSt ~lysis ms~ ~ perfo~ when
the offe~r ~s ~~d =o ~t ~e el~cs (i.e.,
~or Ho~m, ~erhe~, ~terials, etc.) of
cost, e.~., ~profession~l c~tin~
~ibecu~l ~ ~inee~g se~oes c~t~cts.
be
A COSt analys.ie will be necessary wh~u adequate price
competition is lacking _-~. ~or sole source procurements,
in~u~g c~t~ct ~ifl~tions or ~ge o~e~, ~ess
price reuon~l~ess ~ be es~lished on ~e ~ie o~
~=~ or ~r~t p~ce of a c~rc~ pr~uct sold in
s~sC~=~ ~tiCies to the g~l ~lic or on ~e
~ie of ~ces sec ~ law or ~lati~.
P~ioe ~lys~s. A price ~yeis ~y be ~ed ~ all
o~er ~~ces to detains ~e ~aso~l~ess of the
pr~osed contact price.
~o~i=. ~tees ~11 negotiate D~fit as a serrate
el~t of ~e price for e~ conc~t in wb~ there
no price com~etition ~-a.in all cases where cost analysis
is performed. To establish a fair ~ reasonable profit,
consideration will be~iven to the complexity of ~he work
to be'per£ormed, ~he risk borne by the contractor, the
Page 14 ~'rA U 4220.1D
4-15-96
contractor's inves~ment, the amount of subcontracting,
the quality of its recor~ of past perfor-~-ce, and
industry profit rates in the su~£ounding geographical
area for similar work.
Federal. C_ost Pr%nc%pies. Costs or prices based on
estimated costs for conuracts un~ergran~s will be
allowable only =o the ex, enO that costs incurred or cost
estimate~ included in ne~otiated prices are conslsuent
with Federal cost princ~ples. ~ran=ees may reference
their own cost prin~ciples that comply with applicable
Federal cost principles.
~ost Plus Percentage of Cost Prg~{b{ted. The cost plus a
percentage of cost and percentage of construc~ion cost
methods of contracting shall not be used.
11. BOND. INCRE~tIP4~ENT~. For those construction or facility
{mprovement contracts or subcontracts exceedin~ $100,000, FTA
-~y &ccept the bon~ policy and requirements of the
~xantee, provided t~at they meet ~heminimum requirements for
construction contracts as follows:
A bid g~&rantee from each bidder equivalent to five (5)
percent of the bid price. The "bid guarantee" shall
consist of a firm commitment such as & bid bond,
cer~ified check, or other negotiable instrument
acco~oany~g a bid as assurance th_at ~he bidder will,
upon accept_-._eue of his bid, execute such contractual
documents as _m~.__y-be required within the time specified;
A performance bond on the par~ of the contractor for
100percent of the. contract price. A "perform~_ncebond.
fulfillment of all the contractor's obli~ations under
such contract;
A paymentbond on the parc of the contractor. A paymen=
bond is one exe=ute~ in oonnectionwith a contr&ct to
assure payment, as required by law, of all persons
supplyin~ labor ~-~ materi~l in the execution of the work
provi~e~forin the contract. Payment bond amounts
required from ~ontractors are as follows=
(1) 50% of the con=taut price if the oontrac~ price is
no~ ~ore th~n $1 million;
(2) 40% of the contract price if the contract price is
more ~mn $1 million but not more ~han $5 million; or
$2.5 m(llion if the con=r&ct price is more th~n
$~ million.
A cash deposit, oer~ified check or other ne~otiable
instrument may be accepted by a grantee in lieu of
pe~ormanoe an~ pa~men~ Uon~s, ~provided the grantee ~.s
· Page 15
FTA C 4220.1D
4-15-96
established a procedure Co assure ~hat ~he ~-teresc of
FTA is adequately protected.
12. pA]~TP~O~IS~ONR IN TIIIRD..P_A~T~' ~~.
~dvance ~ayments. FTA does not authorize ~-d will not
participate in fundingpayments Co a contractor prior to
~he inaurxence of costs by the contractor unless prior
written concurrence is obtained fr0~FTA.
b. ~roarA~s Pa~ents. Grantees may use Drocjress payments
provided the following requirements are followed:
(1) Procjress payments are only made to the contractor for
costs incurred in the perfor-~nce of ~he contract.
(2) When progress payme-ts are used, the grantee must
obtain title to proper~y (~eterials, work in
progress, and finished 9oods) for which progress
payments &remade. Alternative security for progress
Payments by irrevocable letter of oredit or
equivalent means to protect the ~rantee'e interests
in the procjress payments may be used j- lieu of
ob~aining title.
i~.DI~UID_ATED DAMAGES PROFI~IORS. A granteemayuse liquidated
damages if it~a~ reasonably expect co suffer
(increased costs on project involved) from late completion
~-~ ~he extent or amount of such ~m~ges would be d/fficult
or im~ossible to .determine.
The assessment for damages shall be at a specific rate per
day for each d~y o£ ove~-~un in contract t~-~; and the race
mus~ be s~ec~fied in the thirdpar~y contraut. Any
liquidateddama~es reooveredsh~llbecredited Co the project
aoooun= involved~-less the PTA permits otherwise.
14. CONTRACT AWARD. AN~0uR~. If a grantee a-nounces contract
· awards with respect =o any procurement for goods and sezvices
(inoludin~ construction services) h~vin~ an aggregate value
of $S00,Q00 or more, the ~tee sh~11:
SDeci£y the amount o£ Federal funds t~aC will be used
finance t. he acquisition in ~gy a]:u:~uncelmenC of the
contract award for suc. h~oods or sezWioes; and
b. Express ~he ~&id amc,,n~ as a percentage of the =oCal
costs of ~he pl,--ed ac~uisi=ion.
15. C0N~R~_.~ROVTAIONA. All contracts shall inulude provisions
to de~ne a soun~ p~4 complete a~reemen~. In addition,
contracts an~ suboon~racts shall con~ain contr&ctual
provisions or conditions that allow for:
4-15-96
a. Adminis~ra=ive, contractual, or legal remedies in
instances where contractors violate or brea~h¢ontract
te~-~, includin~ s~ctio~s a~d penalties as ~ay be
appropriate. (All contracts in excess of the small
purchase =hreshoI~.)
b. Termination for cause and for convenience by the grantee
or subgr~_?tee tn¢lud/~g theme-her by which it will be
effecte~ and ~he basis for settlement. (All contracts in
excess o£ ~10,000.)
16. $~ATUTORXAND REG~ATDR~REOUIREMENTS. A current and
ccm?rehensive list of 'Statutory ~d re,la,cry requirements
applicable to grantee procurements (such as Davis-Bacon Act,
Disadv~_nta~ed Business Enterprise, Clean Air, and Buy
America) is contained in the FTAMasUerA~reement. ~zantees
are responsible for evaluating these requiremen~s for
relevance and applicability to each procurement. For
example, procurements'involving the purchase of iron, steel
and manufactured ~oods will be subject ~o the "Buy America.
requirements in 49 C.P.R. P&r~ 661. Furt/xer ~idance
concernin~ these requirements and su~ested wording for
contract clauses ~ay be £ound in FTA's Third Party
Procurement Manual.
For specific guidance concern~-g the cross-cu~ing
requirements of o~her Federal agencies, grantees are advised
to contac~ those a~encies.
,~m-~ -~-strator
GRANT MANAGEMENT GUIDELINES
FTA CIRCULAR 5010.1B
some of the chan~es to
GRANT MANAGEMENT GUIDELINES
FTA Circular 5010. IB
(effective date of change 9/7/95)
First revision of this circular since 1987.
Scope: The scope of a grant has been liberalized to allow more changes without the
requirement ora grant amendment. This involved a redefinition of what constitutes a
~scope" and was concurred in by the Office of Chief Counsel. That is, the scope of a
grant is defined as the broad purpose or objectives of a grant.
The scope of a grant may encompass one'0f:more specific projects. (There may be
multiple project scopes identifying each of the different projects within a grant and each of
these projects may contain a number of activities which represent the estimate of actions
needed to complete the project. [The question ofrol]ing stock quantifies is addressed at
the project level.] )
Budget ReviSions:: Liberalized to allow grantees to make more budget changes without
prior FTA approval, consistent with authority in the Common Grant Rule. Prior to this,
budget revisions could not exceed 10% of the.project budget without prior FTA approval.
This threshold has been increased to 20°,4.
References to budget line item have been amended to read activity line item and
references to quarterly progress reports have changed to milestonedpro~ess reports in
keeping with the ECflVI&M initiative.
Acquisition. Use and Disposition of property_ section has been expanded to include:
** Key issue. ~The Rea/ProPerty section includes a new disposition threshold that the
grantee may (with prior FTA approval) dispose of excess parcels of $5,000 value or less,
without return of FTA financial participation. (This is in keeping with the same threshold
provision for equipment payback reflected in the Common Rule 49 CFR part 18.)
** Key issue. The requirement for prior FTA approval for all utility relocation
astreements has been eliminated.
Transfer of capital assets for non-transit public purpose with no obligation to pay back
FTA for financial interest, is a disposition option of excess real property, under §5334(g).
Prior FTA concurrence for _m'antee acquisition of real property is required when estimated
value excess $250,000. which is a change fi.om the previous $100.000 limit.
0
One apprai'sal in real property acquisition is required regardless of value,, with a second
appraisal recommended for complex problems only.
A new alternative option of property acquisition' for major capital projects has been added.
This is by rearrangement with FTA Real Estate specialist who makes a site visit to
qualify the grantee's acquisition system for extended certified acceptance.
Prior FTA concurrence for 'just compensation* is required when the proposed settlement
:is $50,000 higher than the grantee's offer. This is a change from the former $125,000 limit.
The option of ~fun~tional replacement~ has been reinstated as per an. earlier FTA 4/7/92
memonmdum
On-site/nspections has been expanded to include l~maneial Management Oversight;
Procurement Reviev~, Safety and State Management Reviews; and Civil Rights Review.
The Statement of Revenues and Expenses has been eliminated. This infonnationis now
contained in quarterly milestone/progress reports.
Substitution of Equipment Involuntarily Removed from revenue service prior to
expiration of useful, life with local purchased assets may be permissible under specified
criteria.
U& De~x~ment
o~ Transfx~a~k~
Federal Transit
Administration
Administrator
Sep~ 7, 1995
400 Seventh St., S.W.
Washington, D.C. 20590
C-95-33
Dear Colleague:
As you know, many changes have occurred in the Federal Transit Administration (FTA) over the
past several years. Many of these changes have taken place in order to provide you, the grantee,
with the best technical and professional assi.stance possible. Consequently, PTA guidance
circulars have become outdated and in need of revision. I am happy to provide to you a revised
edition of the FTA Grant Management Guidelines Circular 5010. lB, which includes features such
as deletions of certain requirements, addition of helpful initiatives, and clarification of conflicting
information.
One such initiative is the Electronic Clearing House Operation (ECHO) payment system which
has eliminated the letter of credit, the reimbursement by Treasury check and the Federal cash
transactions report. Your reimbursement requests are now being handled more speedily and
efficiently through the ECHO .system. Another change concerns the threshold for budget
revisions requiring prior FTA approval. This threshold has been raised'to 20 percent to enable a
more realistic approach for budget revisions within.the project scope without changing the
purpose or intent of the grant..
Another FTA pilot initiative during this past year has been the Electronic Grant Making and
Management (EG~ system. As grantees come on-line with BGMM, they will be allowed to
apply, certify, revise, report and dose-out grants electronically, thereby e 'hminating massive'
.amounts of paper, countless hours of time and w, illng delays. Both you and your FTA
representative will benefit from this technical advancement in managing your grants.
In addition, statutes such as the Federal Transit Act, now codified at 49 U-S.C. Chapter 53,
included changes to the management of FTA grant programs that are nbt reflected in the 1987
edition of FTA Circular 5010. lA. These changes have been incorporated in this revised edition.
I hope you will find many benefits to assist you in the managemint of your FTA transit grant
programs. I urge you to become familiar with the changes as this circular is now the operational
document for FFA program management. You also have my personal assurance that in the
months ahead, PTA will continue its efforts to 'assist you in the management of your transit grants
in'/he most business-like manner possible.
Sincerely,
'O
Federal Transit
Subject: GRANT MANAGEMENT GUIDELINES
CIRCULAR
FTA C 5010. IB
SeDt~mber 7, 1995
PURPOSE. The purpose of this circular is to promote guidelines and management
procedures after award for Metropolitan Planning grants, Capital Program grants and
Urbanized Area Formula grants for assistance programs of the Federal Transit
Administration (FTA). -Guidance is provided which covers Grant Administration and
Management in Chapter I, Financial Management in Chapter II and Payment Procedures in
Chapter HI.
CANCELLATION. This circular cancels FTA Circular 5010. lA, "Urban Mass
Transportation Project Management Guidelines for Grantees," dated 9-18-87.
EXPLANATION OF CHANGE. This circular incorporates the new codification of Federal
transit laws in the United States Code Chapter 53 with reference to the more familiar
Federal Transit Act, as amended, which was repealed when codified on July 5, 1994.
Chapter 53 uses new language in some instances and generally rearranges the old
provisions; however, it effects no substantive changes to the law. Copies of the new
.chapter 53 of the Code are available'from the FTA regional offices, as is an index showing
each provision of the Federal Transit.Act (FT Act), and its corresponding new citation.
Other changes incorporated are required to conform this circular with current practices
concerning payment procedures, real estate, project management oversight program, value
en_gineer~ seismic guidelines, and procurement. Other new areas have been added which
cover such issues as involuntary removal' of equipment from service, transfer of assets no
loo~er needed, warranties, and the tagging of equipment.
Public Law 103-272 enacting 49 U.S.C., Chapter 53.
49 U.S.C., Set, on 53070), "Re%4ews, Au&ts, and Ev~duagon%" (formerly Set, on
9(gX2) of the FT Act. [This includes reference to the triennial review process.]
49 U.S.C., Section 5327, "Project Management Oversight," (formerly Section 23 of
the FT Act.)
31 CFR Part 205, Ch. H, "Withdrawal of Cash From the Treasury for Advances Under
Federal Grant and Other Programs." (Treasuary C. I07.5.)
49 CFR Pan 18, the Common Rule, 'Uniform Administrative Kequirements for Grants
and Cooperative Agreements to State and Local Governments ."
ols?Rlaffra)N: F'~ Head~_~_,-ters Offices (T-N-2)
Office of Program
Manac~$~m~nt
Page 2
go
ko
FTA C 5010. lB
9-7-95
49 CFR Part 21, "Nondiscrimination in Federally-Assisted Programs of the
Department of Transportation-Effeetuation of Title VI of the Civil Rights Act of
1984."
49 CFR Part 23, 'Participation by Minority Business Enterprise in Department of
Transportation Programs."
49 CFR Part 24, "Uniform Relocation Assistance and Real Property 'Acquisition
Regulations for Federal and Federally Assisted Programs," dated 3-2-89.
49 CFR Part 27, S~bpart E, "Mass Transportation Services for Handicapped Persons."
49 CFR Part 663, 'Pre-Award and Post Delivery Audits of Rolling Stock Purchases,
dated 9-24-91.
OMB Circular A-87, "Cost Principles Applicable to Grants and Contacts with State
and Local Gove .mments,' dated 1~15-81, and changes to this document published
5/17/95, which become effective 9/1195.
OMB Circular A-128, 'Audit of State and Local Governments,' dated 4-12-85.
m. Department of Health and Human Services Publication No. OMC-10, 'A Guide for
Local Government Agencies - Cost Principles and Procedures for Establishing Cost
Allocation Plans and Indirect COSt Rates for Grants and Contracts with the Federal
Government.'
n. FTA Circular 4220. lB, "Third Party Contracting Guidelines,' dated 5-5-88.
o. FTA Circular 4702-1, FTA, 'FTA Guidelines for Title VI Information Specific to FTA
Programs," dated 5-26-88.
po
qo
So
FTA Circular 4704.1, 'Equal Employment Opportunity Program Guidelines for FTA
Recipients,' dated 7-26-88.
FTA Circular 4715.1A, 'Section 20 ('Human Resource) Guidelines for FTA
Applicants," dated 7-26-88.
FTA Circular 4716. IA, "FTA Disadvantaged Business Enterprise Requirements for
Recipients and Transit Vehicles Manufa~l.urers,' dated 7-26-88.
IrrA Circular 5700.1, "Requirements and Responsibilities for Indirect Cost
Proposals/Cost Allocations Plans for Technical Studies and Capital Grants," dated
5-24-83.
· ~ C 5010.1B
9-7-95
Page 3
to
FTA Circular 8100. IA, "Program Guidance and Application Instructions for Planning
and Technical Studies Grants," dated 8-30-85,
Uo
FTA Circular 9030. lA, "Section 9 Formula Grant Application Instructions,~ datod
9-18-87.
e
BACKGROUND. This revised circular updates the general grant management procedures
applicable to FTA grantees that receive Federal funds under 49 U.S.C., Chapter 53. The
revisions are consistent with the current provisions ofthe FT Act and other applicable
statutes, OMB guidelines and DOT policy and regulations.
These procedures are intended to assist grantees in administering FTA-funded projects and
in meeting grant responsibilities and reporting requirements. More specific guidance
regarding certain subjects, such as civil rights or cost principles, is provided in the above-
referenced documents, which deal more specific~y with individual topics. Grantees are
reminded of their responsibility to comply with regulatory requirements and should be aware
of all pertinent matgrial to assist in the management of federally assisted grants..
WAIVERS. To the extent permitted by law, the Federal Transit Administrator reserves the
right to waive any provision of this circular.
FTA C 5010. lB
9-7-95
CHAPTER
Page i
TABLE OF CONTENTS
PAGE
PROJECT ADMINISTRATION AND MANAGEMENT ............ I-1
1. General ......................................................... I-I
2. Grant Approval ................................................. I-I
a. Notification ................................................ I-I
b. Co~t Eligibility ............................................. I-2
c. Execution of Grant Agreement ............................. I-2
3. Grantee Responsibilities for Grant Administration
and Management ............................................... I-2
4. Civil Rights Requirements ....................................... I-3
a. General .................................................... I-3
b. N. ondiscrimination ......................................... I-3
c. Title VI (Service Delivery/Benefits) ........................ I-3
d. Equal Employment Opportunity (EEO) .................... I-4
e. Disadvantaged Business Enterprise (DBE) Program ........ 1-4
f. Elderly Persons & Persons with Disabilities Requirements .. I-4
5. Grant Reporting Requirements .................................. I-4
a. lVfilestone/Progress Reports ................................ I-5
b. Quarterly Financial Reports ................................ I-6
c. Disadvantaged Business Enterprise (DBE) Quarterly ...... 1.6
Progress Reports
d. Reports of Significatnt Events .............................. 1-6
e. Report Due Dates ......................................... I-7
6. Changes in an Approved Orant- Budget Revisions
and Amendments of the Cvrant Agreement · I-7
a. General .................................................... I-7
b. Definitions ................................................. I-7
¢. Budget Revisions .......................................... I-$
d. Administrative Amendments ............................... I- 10
e. Full Grant Amendments ' I-10
Acquisition, Use and Disposition of Project Property ............. I-11
ao
Definitions ............ · ............ : .... : ................... I- 11
Real Property ................................. : .............1-14
Equipment ................................................ 1-20
Non-Traditional Insurance Programs ....................... 1-22
Leasing Agreement-Project Equipment & Fadlitiea ........ 1-22
Equipment Management ................................... 1-22
Disposition Standards for Equipment and Supplies ......... 1-23
Page ii
CHAPTER
FTA 5010~ lB
9-7-95
PAGE
8. Relocation ...................................................... 1-25
a. Housing Replacement Requirements ....................... -I-25
b. Utility Relocation Agreements ............................. 1-25
9. Procurement .................................................... 1-26
10. Pre-Award and Post Delivery .................................... 1-26
I 1. Peer Review and Crime Prevention Review ...................... 1-27
a. Peer Review ............................................... 1-27
b. Crime Prevention Review .................................. 1-27
' 12. Value Engineering ............................................... 1-27
a. Definition ................................................. 1-27
b. Other VE Projects ........................................ : 1-28
c. VE Report ................................................ 1-28
13. Project Management Plan ....................................... 1-28
a. Definition ................................................. 1-28
b. Basic Requirement ......................................... 1-28
14. Force Ac~:ount .................................................. 1-28
a. Definition ................................................. 1-28
b. Eligibility .................................................. 1-28
e. Basis for Reimbursement .................................. 1-29
d. Justification ............................................... 1-29
e. Calculation ........... '. ............................... ; ....1-30
f. Safety and Effieien.ey of Operations ........................ 1-30
g. Reporting ................................................. !-30
15. Claims and Change Orders ...................................... 1-30
a-e Interest and Rights ......................................... I-3 l
f. Claim Settlement .......................................... 1-31
g. Cost Sharing "- 1-32
h. FTA Review and ConoJrrence ............................. 1-32
i. Claims Review ............................................. 1-33
j. Claims List ................................................ 1-33
16. Sales Proceeds ' 1-33
a. General .................................................... 1-33
b. Definition ................................................. 1-33
c. Requirement ............................................... 1-33
d. Refunds to FTA ........................................... 1-33
e. Proceeds Retained ......................................... 1-34
17. Program Income ................................................ 1-34
18. Retention and Access Requirements for Records ................. 1-34
a. Applicability ............................................... 1-34
b. Length of Retention Period ................................ 1-34
c. Starting Date of Retention Period .......................... 1-35
d. Substitution of Microfilm .................................. 1-35
FTAC 5010.1B
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CHAPTER
Page iii
PAGE
e. Access to Records ......................................... 1-36
f. Restrictions on Public Access .............................. 1-36
19. Speoial Requirements ............................................ 1-36
a. Political Aotivities ......................................... 1-36
b. Environmental Mitigation ................... · ..............1-36
c. Copyrights and Rights in Data ............................. 1-37
d. Patent Rights .............................................. 1-37
e. Published Reports ......................................... 1-38
f. Seismic Design and Construction Standards ................ 1-35
20. FTA Oversight .................................................. 1-38
a. Project Management Oversight (PMO) ..................... 1-38
b. Quarterly Project Management Meetings ................... 1-39
c. Triennial Review .......................................... · 1-39
d. £inandal Management Systems Review .................... 1-39
e. Procurement Review ....................................... 1-39
f. Safety Reviews ............................................ I40
g. Civil Rights Review ........................................ 1-40
21. Suspension ...................................................... 1-40
22. Termination ..................................................... 1-40
a. Termination for Cause ..................................... I40
b. Termination for Convenience .............................. I-41
¢. Partial Termination ........................................ 1-41
23. Close-out Procedures ........................................... 1-41
~ Final F'mandal Sectlement .................................. I41
b. Close-Out by FTA ......................................... 1-42
c. Adjustments to Federal Share of Costs ..................... 1-42
FINANCIAL MANAGEMENT ...................................... IL1
1. Internal Controls ................................................ H-1
a. General .................................................... H-I
b. Definitions ................................................. II-1
c. Objectives ................................................. H-I
d. Necessary Elements ........................................ II-2
e. Standards of Internal Control and Audit Resolutions ....... II-2
2. Cost Allocation Plan/Indirect Cost Proposal ..................... II-$
ao
General .................................................... II-5
Definitions ................................................. ILS
Types of Plans ............................................. ILS
Preparation otPlan ........................................ II-5
Cognizant Federal Agency ................................. II-6
Costs Supported ........................................... II-7
Page iv
CHAPTER
FTA 5010.1B
9-7-95
PAGE
g. Plan Content .............................................. 11-7
h. Plan Approval ..................... ' ........................11-8
3. Cost Standards .................................................. 11-8
a. General ........... i ........ · ................................ II-8
b. Allowable'Costs ........................................... 11-8
4. Program Income ................................................ II-10
a. General ................................................... 11-10
b. D~finition ................................................. 11-10
¢. Requirement ............................................... II- 10
5. Financial Reporting Requirements ............................... II-10
a. General ..... .' .............................................. II-10
b. Disclomre Criteria ......................................... 11-10
c. Financial Status Report Electronically through
: EGM~'(or SF 269A)'. ................................. 11-11
6. Annual Audit .................................................... 11-11
a. General .................................................... H-11
b. Purpose ....... . ............................................ II-Il
c. Requirement ' ' ' ' II-12
d. Resolution of Audit Findings ............................... H-12
7. Third Party Contract Audits ..................................... 11-13
a. Responsibility for Audit .................................... H-13
b. Outside Audit Services · H-13
c. Costs ...................................................... 11-14
d. Contracting for Audit' Services - H-14
pAYMENT PROCEDURES ..:.: .................................... III-I
a. Payment Methods ......................................... Ill-I
b. Disallowed Costs .......................................... m-I
c. Requirement to Remit Interest ............................. IH-2
d. Bond Interest .............................................. rn-2
e. De-obligation of Funds .................................... HI-2
f. Right of FTA to Terminate ................................ III-2
2. Electronic Clearing House Operation (BCHO)
Payment Method ............................................... 111I-3
a. Objective .................................................. 11I-3
c. Procedures to Apply for Electronic Clearing
Houso Operation ......................................... 11I-4
d. Grantee Organization Requirements ........................ I11-$
e. Rejection of Messages ..................................... I11-6
· FTA C 5010. lB
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CHAPTER
EXHIBITS
I-1
I-2
IL1
IlI-1
m-2
iii.3
m-4
HI-5
iii-6
Page v
PAGE
f. Excessive or Premature Withdrawals ....................... IH-6
g. Repayment to FTA ........................................ HI-7
h. Repayment Procedure ..................................... HI-7
i. Revocation of ECHO Control Number ..................... HI-8
Request for Advance or Reimbursement (SF-270) ............... ITI-8
a. General .................................................... HI-8
b. Instructions ................................................ 11I-8
c. Re'~iew of the SF-270 ...................................... III- 10
A Summary of Planning~ Capital and Operating Grant Changes ... 1-43
Overview of the Grant Management Sequence ................... 1-45
Financial Status Report (SF-269A) .............................. H-I 6
Signatory Authorization and Certification ........................ 17I-11
Payment Information Form - ECHO-ACH Payment System ...... Ill-13
Authorization Form ' III-15
ECHO Payment Request Format ................................ HI-16
Payment Information Form ACH Vendor Payment System ....... HI-17
Request for Advance or Reimbursement ......................... HI-19
FTA C 5010. lB Page I-1
9-7-95
CHAPTER I
PROJECT ADMINISTRATION AND MANAGEMENT
GENERAL. This circular describes the process and provides guidelines and procedures for
management of FTA grants at 49 U.S.C;ehapter 53, sections:
*5309 "Capital Program" (was § 3 of the FT Act);
*5303 "Metropolitan Planning" (was § 8 oftbe FT Act);
*5307 "Urbanized Area Formula Program" (was § 9 of the FT ACt); and'
*5313(b) "Sate/National Planning'and Research" (was § 26(a)(2) ofthe FI' Act);
*5322 'Human Resource Programs" (was § 20 of the FT Act).
Procedures for managemeht of 49 U.S.C. 5310, 'Special Needs of Elderly Individuals and
Individuals with Disabilities' grants, (was § 16 of the FT Act) are provided in the current version
of FTA Circular 9070. lC.
Procedures for management of 49 U.S.C. 5311, "Financial Assistance for Other than'Urbanized
Areas" grants, (was § 18 of the FT Act) are provided in the current version of FTA Circular
9040.1C.
Chapter I of this circular deals with'Project Administration and Management, Chapter H with
Financial Management, and Chapter HI with Payment Procedures. In'the circular, agencies that
receive FTA assistance are referred to as grantees. The term "projects" refers to public transit
improvement activities funded under an executed grant. Similarly, 'projects" refer to locally
developed groups or lists of projects as pre~nt~ in the Transpo~on Improvement Program
or State Transportation Improvement Program (TIP/$TIP) and to FTA, and approved and
defined in executed agreements (referred to herein as 'program").
FTA Regional Offices retain responsibility for management oversight of most grant projects.
References in this circular to the cognizant agency mean the FTA Regional Office.
2. GRANT APPROVAL.
ao
Notification. FTA notifies grantees of grant approval by lett~r, or electronically if the
grantee is part of the Electronic Grant Making and Management (EGMM) system. The
grant approval (and copies if in paper form) includes the grant agreement and the approved
project budget. Special conditions of the approval may be included in the letter or the
electronic grant agreement, or the conditions for using pre-award authority if applicable.
Pro-award authority may be granted for rolling stock purchases to carry passengers in
revenue service with funds made available under certain FTA programs. See 49 CFR,
Part 663 for more details. Certain other items of cost may also require specific prior FTA
approval, i.e., those which may not be part of the grant approval.
Page 1-2
FTA C 5010. lB
9-%95
bo
Cost Eligibility. The grantee may begin to incur project costs as of the obligation date
stated in the Notification of Ch'ant Approval. Cash payments are made by the Automated
Clearing House Method (ACH). See Chapter llI-I for more details. Requests for
reimbursements will not be honored until the grant agreement has been executed by both
FTA and the grantee and returned to FTA. Information regarding a cost allocation plan,
force account requirements, and maintenance and insurance plans are discussed in
Chapter II.
Execution. of Grant Agreement. At~er grant approval, FTA will send the grantee four
copies of the grant agreement for signature with instructions. The grantee shall execute,
date and return two copies to FTA. FTA shall be advised promptly if the grant agreement
cannot be executed by the grantee within 90 days of the obligation date. Different
arrangements apply for those grantees who are part of the Electronic Grant Making and
Management System (EGMM). Execution of a grant agreement electronically is explained
in the EGMM polioies and procedures manual. Elimination of paper copies is anticipated
when EGMM is fully implemented for all grantees.
GRANTEE RESPONSIBILITIES FOR GRANT ADMINISTRATION AND MANAGEMENT.
The grantee is responsible for.admini.'stmfion and, management of the grant in compliance with
the grant agreement and other incorporated documents including the Master Agreement, and
other requirements of this and other applicable FTA circulars and regulations. The grantee is
also responsible for funds which "pass through" to another grantee. Grantees may revise budgets
in ways that do not change the scope of a grant. Procedures for changes to an approved grant
are discussed later in this chapter. FTA monitors grants to confirm that grantees establish and
· follow procedures that are reasonable and comply with FTA requirements. Required grantee
submission of Annual Certifications... and Assurance. stand in lieu of detailed FTA....-..scrutiny,
substantiated by annual independent audits and triennial reviews.
The grantee's responsibilities include actions to:
a. Provide continuous administrative and management direction of project operations;
bo
Provide, directly or by contract, adequate technical inspection and supervision by qualified
professionals of all work in progress;
Assure conformity to grant agreements, applic~able statutes, codes, ordinances, and safety
standards;
do
Maintain the project work s~hedule agreed to by FTA and-the grantee and constantly
monitor grant activities to assure that schedules are met and other performance goals are
being' achieved;
e. Keep expenditures within the latest approved 'project budget;
FTA C 5010. lB
9-7-95
Page I-3
Assure compliance with FTA requirements on the part ofagenoies, consultants,
contraotors, and subcontraotors working under approved third party contrac,,'ts or
inter-agency agreements;
go
Request and withdraw Federal cash only in amounts and at times as needed to make
payments that are immediately due and payable (see Chapter III for further information on
payment procedures); ._
ho
Account for project property and maintain property inventory records that contain all the
elements required, as described in Chapter I, paragraph 17;
Arrange for an annual independent organization-wide audit in accordance with OMB
Circular A-128;
jo
Prepare and submit force account, cost allocation and non-traditional insurance plans prior
to incurring costs if seeking reimbursement for these costs. Update' and retain these
approved documents for FTA upon request and during Triennial Revievr, and
Provide reports. FTA requires several previously submitted reports, once submitted and
approved by FTA, to be updated and retained by the grantee for availability during the
Triennial Review process.
CIVIL RIGHTS REOUIREMENTS.
ao
General. It is the respons~ility of FTA to ensure that grantees are in compliance with all
civil fights program requirements that apply to FTA-assisted Pr0jeets and activities. The
applkagale civil rights program areas are: 'rifle VI of the Civil Rights Act of 1964 (Service
Delivery/Benefits); Equal Employment Opportunity (EEO); Disadvantaged Business
Enterprise (DBE) Program; and the Americans with Disabilities Act (ADA) Program.
These program areas are detailed in the Annual List of Certifications and Asmrances and in
the Master Agreement.
All required civil fights program submissions must be approved by FTA and periodic~dly
updated in accordance with program guidelines.
bo
Nondiscrimination. 49 U.&C.§ 5332, (formerly § 19 of the FT Act), states that no person
on the basis of race, color, ereed, national origin, sex, or age, shall be excluded from
partidpation in, be denied the benefits of; or be subject to disofimination under any project,
program, or activity funded in whole or in part through Federal financial assistance.
This nondisotiminafion provision and associated _affirmative action obligations apply to
employment and bus'mess opportunities and is in addition to the provisions of Title VI of
the Civil Rights Aot of 1964.
Page 1-4
FTAC 5010. lB
9-7-95
Title VI (Service Delivery/Benefits). Each grantee receiving Federal finandal assistance
pursuant to any section of 49 U.S.C. chapter 23 or Title 23, U.S.C., covered by this
circular, must have its Title VI submigaion.approved by FTA, ap ifi l in gTA (2]rcular
4702. I, "Title VI Program Guidelines for Urban Mass Transportation Recipient," and
annually certify compliance regarding the level and quality of transit service.
Equal Employment Opportunity (EEO). Grantees with 50 or more employees that have
received in the previous_ Federal fiscal year capital and/or operating funds of over
$1 million, or technical studies grants totaling over $250,000, must develop and submit to
FTA an EEO program. Areas covered by the EEO program are specified in FTA
Circular 4704.1, ~Equal Employment Opportunity Program Guidelines for [FTA]
Recipients.N
eo
Disadvantaged Business Enterprise (DBE) Program. Grantees must meet the
requirements of the Department of Transportation's (DOT) Disadvantaged Business
Enterprise Regulation (49 CFR Part 23, as amended) which implements Section 1003Co) of
the Intermodal Surface Transportation Efficiency Act of 1991 (ISTEA). DBE program
requirements are specified in FTA Circular 4716. IA, "Disadvantaged Business Enterprise
Requirements for Recipients and Transit Vehicle Manufacturers."
Elderly Persons and Persons with Disabilities Requirements. Consistent with the provisions
of 49 U.S.C. Section 5310, (formerly § 16(a) of the FT Act), (Title llI of P.L. 102-240,
ISTEA), elderly and persons with disabilities have the right to utilize transit facilities and
services and special efforts will be made in the planning and design of transit facilities and
services so these are available to and can be effectively utilized by elderly persons and
persons with disabilities.
The Americans with Disabilities Act of 1990 (ADA) prohibits di~on on the basis of
disability. In the area ofpublio transit, the ADA mandates increased access~ility'and
nondiscriminatory service. This .includes the construction of facilities, acquisition of rolling
stock or other equipment, undertaking of studies or research, or participation of any
program or activity receiving or benefiting from FTA financial assistance. The Act also
broadens the range of disabilities which must be accommodated. To comply with this
provision, aH entities must meet the requirements of DO'Ps regulations implementing the
ADA. (49 CFR Parts 27, 37 and 38).
The grantee must annually signify compliance with the above civil rights requirements
through the Master Agreement and the Annual 'Certifications and Assurances for FTA
GRANT REPORTING REOUIREMENTS. The purpose of a grant is defined at the time of its
approval and is formalized in the grant agreement. The grantee is responsible for accomplishing
this purpose as outlined earlier in paragraph 3 of this chapter. FTA monitors grant activities to
ensure proper grantee stewardship of Federal funds and compliance with the laws and regulations
FTA C 5010. lB Page I-5
9-7-95
that govern its grant programs. FTA must also be able to report on program results, industry
trends and its own oversight responsibilities. The information FTA needs for program
forecasting, management and reporting is furnished through narrative milestone/progress reports
by grantees ab. out significant events, relevant grant activities and any changes to or variances in
the grant schedule or budget.
With respect to the level of detail required for these reports, FTA treats all approved activity line
items alike. Thus, an activity_contained in 49 U.S.C. 5309, a Capital Program (formerly § 3 of
· the FT Act) grant and a project contained in an approved § 5307, an Urbanized Area Formula
Program (formerly § 9 of the FT Act) Transportation Improvement Progrmn, each listed as
activity line items, must be presented in the reports in sufficient detail that important information
is not lost in aggregation. For example, the number of full sized buses in a grant must not be
reported together with vans and supervisory automobiles under the heading *rolling stock.* FTA
staff are available to meet with grantees soon after grant approval to mutually agree on an
appropriate level of reporting detail. This will assure that FTA has the information needed to
manage its overall program and to respond fully to specific requests from Congressional
committees, auditors and the general public.
MilestoneA~rogress Reports. The requirement for quarterly milestone/progress reports
applies to all FTA grants covered by this circular. At the FTA Regional Offices' direction,
this report should be provided electronically, rather than in written form, through the FTA
EGMM initiative. Procedures for EGMM are contained in a manual available from the
FTA regional offices, ffonly operating assistance is involved, the reporting requirement is
limited to the estimated and actual dates when all funding has been expended. In addition,
FTA reserves the right to review operating revenue and expense records for these
operating-only grants. Depending on project complexity, FTA may also request other
special reports or quarterly project numagement meetings. Final .project reports are
discussed in paragraph 22 of:this chapter. ~. _.
O)
Required Information. At a minimum, each milestone/progress report should provide
the following information. The narrative should address each activity item or project
within the TIP/STIP as follows unless FTA advises otherwise:
(a) A discussion of budget or schedule changes not requiring FTA approval that
were made during the reporting period, as well as those requiring approval;
Milestones should include original estimated completion date, revised estimated
completion date, and the actual completion date. The dates of expected or
actual requests for bid, delivery, etc., should also be provided. Narrative text
should be specific and include status; specification preparation; bid solicitation;
resolution of protests; and contract awards. An analysis of significant project
cost variances should be included. Completion and acceptanc, o of equipment
and construction or other work should be discussed, together with a breakout
of the costs incurred and those required to complete the project. Use
Page I-~
FTA C 5010. lB
9-7-95
(2)
bo
Co
quantitative measures, such as hours' worked, sections completed or units
delivered, and where required by the grant agreement, an updated bar chart;
Reasons why any scheduled milestones or completion dates were not met,
identifying problem areas and discussing how the problems will be solved.
Discuss the expected impacts of delays and the steps planned to minimize them;
(d)
A list of all.outstanding claims exceeding $100,000 and all claims settled during
the reporting period. This list should be accompanied by a brief description,
estimated costs and the reasons for the claims; and
A list of all change orders and amounts exceeding $100,000 pending or settled
during.the reporting period. This list should be accompanied by a brief
description.
Other Helpful Information. The following is helpful to FTA in monitoring the
progress ora project;
(a) Projected activities for the next quarter and steps planned to carry them out;
(b) Expected changes in scheduled activities, whether or not prior approval or
amendments will be needed; 'and
(c) Pertinent photographs.
Ouarterly Financial Reports. FTA recipients submit fmancial information us'rog the form
prescribed by 49 CFR Part 18.41, the Financial Status Report (FSR) SF269A, or
electronieally through the FTA EGMM system. This report is discussed separately in
Chapter H of this circular and should accompany the milestone/progress reports when
submitted to FTA.
Disadvantaged Business Enterprise (DBE) Ouarterly Progress Reports. As with financial
reports, grantees may submit these reports required by the FTA Circular 4716.1A with
other quarterly reports if'furnishing paper form.
Reports of Signific~ant Events. Unforeseen events that impact the schedule, cost,
capacity, usefulness or purpose of the project should be reported to FTA immediately
after detection and then reflected in the next quarterly progress report. Special reports
should be submitted when:
(1)
Problems, delays, or adverse conditions will affect the grantee's ability to achieve
project objectives within the scheduled time period or within the approved project
budget. The report should discuss actions taken and/or contemplated and any
Federal assistance needed to resolve the situation; or,
FTAC 5010. lB
9-7-95
Page 1-7
'6.
(2) Favorable developments will enable the grantee to achieve project goals/complete
project activities ahead of schedule or at lower cost.
eo
Report Due Dates.. An original quarterly report is due within 30 days aider the end of each
calendar quarter. Reports are currently on a quarterly cycle. However, in the future,
changes in the electronic processes may allow some reports to be submitted semiannually.
In individual cases, FTA_may grant extensions of report due dates. Note that payments
may be withheld when reports are not submitted on time.
CHANGES IN AN APPROVED GRANT - BUDGET REVISIONS AND AMENDMENTS OF
THE GRANT AGREEMENT.
ao
General. A grant obligates the grantee to undertake and complete activities defined by the
scope and budget as i0corporated in the grant agreement. The grant budget, as used in this
circular, means the approved financial plan that FTA and the grantee agree will be followed
in carrying out the purposes of the grant. During the course of the program or project, it
may be necessary to modify the grant by revising the budget or amending the grant
agreement. For example, modifications may be required, because of changes in the
purpose, description, terms and conditions, or an increase in the cost of an approved grant.
It is important to note that many grant funds lapse for use in an urbanized area three years
at~er the year in which they are apportioned (e.g., Formula program funds apportioned for
FY 1994 lapse 10-1-97). The Comptroller General has ruled that when the sc, ope of a
grant changes, any lapsed grant funds unobligated by the grantee remaining under the old
sc, ope must be deobligated by the FTA and only am'ently available funds may be obligated
by the FTA for the new. scope. For this reason, pwposed changes in the sc, ope of a grant
cannot be made if funds approved for it have lapsed. The grantee, shq.uld eontaot its
regional representative as soon as.poss~le when this becomes imminent to avoid losing
lapsed funds. Because of the potential for severe penalties for anti-deficiency violations,
grantees must exercise careful judgment in determining whether a grant change will alter its
sc, ope.
Planning and capital grant changes are summarized in Exhibit I-1, at the end' of this chapter.
The table provides an overview of the relationship between budget revisions,
administrative amendments and full grant amendments as described in the text.
b. Definitions.
O)
(a) The scope of a grant is defined as the broad purpose or objectives of a grant.
The scope of a grant may encompass one or more specific projects.
Page I-8
FTA C 5010. lB
9-7-95
Co
(b)
A project scope is defined as the broad purpose of a particular project within a
grant. There may be multiple scopes identifying each of the different projects
within a grant and each scope may contain a number of activities which
represent the estimate of actions needed to complete the project. Quantities f~r
revenue rolling stock should be reflected in the scope.
(2)
Project Activity Line Item. This is defined as the description and dollar amount
contained in the budget for an approved grant activity associated within a particular
scope approved as part of a grant. Activity line items.under each scope are
informational and are used as tools for the FTA and grantee to manage the grant.
(3)
Budget Revision. A budget revision is any change within the scope of the original
grant. A budget revision may be a transfer of funds within a project or among
projects within an approved grant. It could also include'the addition or deletion of an
activity. A budget revision cannot be used to materially change the purpose or intent,
i.e., scope, or Federal dollar amount of the grant.
Budget revisions approved by FTA are updated in FTA's EGMM system. Budget
revisions are discussed further in the following paragraph c.
(4)
Administrative Amendment. This is defined as a minor change in a grant agreement
normally, initiated by FTA to modify or clarify certain terms, conditions or provisions
of a grant. Administrative amendments are discussed further in the following
paragraph d.
An administrative amendment cannot be used to change the scope of a grant.
(5) Full Grant Amendment.: An increase in the Federal share or a change in the scope of
a grant requires a full grant amendment.
Full amendments are subject to the same application requirements as a new grant
request. Issuance of a revised grant agreement and budget is.required for a full
amendment and, because a change in scope or funding of the grant results, a change
in the previous obligation of funds is also required. FTA can reobligate funds only if
the previously obligated funds have not lapsed. Guidelines and approval requirements
for full amendments are outlined in the following paragraph e.
Budget Revisions. The approved grant budget is sent to the grantee with the grant
approval letter or electronically following VIA approval of the grant. The grantee is
responsible for controlling and monitoring all grant activities to ensure that they are
carried out in accordance with the approved budget, including control of individual
projects within the grant.
FI'AC S010.1B
9-7-95
Page I-9
(I)
Approval Requirements for Budget Revisions. Beyond assuring that grantees' budget
revisions will not change the amount or scope of a grant, FTA does not exercise
control over the dollar amount to be spent to procure or construct items under an
individual activity item. F'FA monitors grants to confirm that grantees establish and
follow procedures that are reasonable and comply with FTA requirements. Grant
changes may be made by budget revision if the purpose, scope and amount of the
grant will remain unchanged.
Required grantee certifications stand in lieu.of direct FTA review and approval,
substantiated by annual independent audits and triennial reviews. Grantees must
obtain prior FTA approval either in writing or electronically through EGMM for the
following proposed budget revisions.
(a)
Prior FTA approval is required when the Federal share of the grant exceeds
$100,000 ~and the cumulative amount of project funds to be transferred between
or among activities, (including all budget revisions since the last one specifically
approved by FTA) exceeds twenty percent (20%). Proposed budget revisions
for planning grants which exceed thirty percent (30%) require prior FTA
approval.
Co)
Prior FTA approval is required when the revision would transfer funds between
operating and capital/planning categories, or between activity line items with
different Federal matching ratios, such as from 80/20 to 83117 option to include
"Americans with Disabilities Act" or "Clean Air Act" requirements;
(c)
Prior FTA approval is required when the revision is for the addition or deletion
of items that are set forth as requiring prior awarding, agency approval in OMB
Circular A-$7. These inclu~de, among others, automatic.data processing
services, building space, insurance and indemnification, management studies,
preagreement costs, professional services and.proposal costs;
(d) Prior FTA approval is also required for a formula or discretionary capital grant
fi.the budget revision would:
!
Increase or reduce the number of revenue rolling stock to be purchased by
more than two units.
Change the size or physical characteristics of the activities specified in a
grant.
3_
Advance a formula program §5307 (formerly § 9 of FT Act) contingency
project if the contingency project is not in year one of current STIP.
Page 1-10
FTA C 5010. lB
9-7-95
(2)
Budget Format. For paper submissions, a three column format is recommended for
budget revision proposals: Column A, the current approved budget; Column B, the
activity changes; and Column C, the revised activity items which combines Column A
+ Column B. A statement should be included for each change that identifies and
fully explains its need and how it will affect the project. Ali budget revisions should
be dated and numbered consecutively. Those not requiring FTA prior concurrence
must be submitted to FTA at least quarterly (i.e., with Milestone/Progress Report), or
electronically following procedures in the E(3MM policies and procedures manual.
Administrative Amendments. An administrative amendment may be used to change or
clarify the terms, conditions or provisions of a grant contract. These usually are initiated
by FTA and may be used only when no change will result in the scope, amount or purpose
of the grant.
An administrative amendment is used to modify a grant contract for such purposes as to
· comply with changes required by FTA law, to change the year or type of funds obligated
for a grant, to transfer equipment fi.om one grantee to another, to reflect a change in the
grantee's name, or to deobligate Federal funds that are not needed to complete approved
project scope or purpos.e:.
F. pll Grant Amendments.
.(1) Requirement. A grant amendment is required when proposed changes in the grant
would:
(a) Materially alter the objective'oithe approved project (i.e., change the scope); or
Co) Require an increase, in the Federal project amount.
(2) Change of Scope. The scope of a grant is changed by any of the following:
A transfer within an approved planning grant budget that cumulatively exceeds
thirty percent 00°,4) of the budget most recently approved by FTA when FTA's
share of the grant is more than $I00,000 would constitute a scope change.
Co)
Changes in quantity of items to be purchased or constructed generally trigger an
amendment only when they are significant enough to materially change the
purpose or intent of the approved grant as defined by the scope. Changes in
quantities for revenue rolling stock that exceed 20°,4 of the base amount where
specified, are generally considered significant changes and will require
processing of a grant amendment.
The 20% threshold does not apply to changes in activity items when quantities
are not specified in the scope. These changes in activity item quantities may be
FTAC 5010. lB
9-7°95
Page I-11
made by budget revision unless the change is so significant as to materially alter
the grant's basic purpose.
(c)
A change to a grant to add a project, if not previously included as a contingency
project in an approved TIP/STIP, or to delete a project if the deletion affects
the intent or objectives of the grant would constitute a scope change.
A change ~at FTA concludes is material which modified an activity item, project
description or the size or type of items specified in any grant would constitute a
scope change.
0)
Procedures. A full amendment must be used for grant changes that cannot be handled
by a budget revision or administrative amendment. Full amendments require the
issuance of a revised grant agreement and budget, and may require a change in the
amount offunds obligated for the grant. A deobligation and reobligation of funds to
accompany a change in project scope can occur only if the previously obligated funds
have not lapsed, or new funds are available.
A full amendment is subject to the same requirements as a new grant request except
that the grantee need not resubmit portions of the original grant application that are
unaffected by the change. The grantee must submit a detailed description of the
changes, a revised project budget and if applicable, a SF-424 form if there are
changes in funding levels. These changes may be accomplished electronically through
EGMM when applicable.
Funds Reobligation. To effect a change in scope of a formula grant, the Federal
funds previously approved must not have lapsed and the obligation of Federal funds
must be changed as follows:
(a) If the scope of a grant is reduced, the funds obligated to. it must be reduced
accordingly unless offsetting cost increases are approved by FTA.
(b) If a grant is changed to replace some activities by others, funds must be
adjusted to reflect the change.
(5) Increase in the Project Amount. ffthe scope of a grant increases and additional
Federal funds are required, new funds may be obligated to the project.
ACQUISITION. USE AHD DISPOSITION OF PR0~CT PROPERTY.
ao
Definitions. The following definitions apply to FTA property management standards, but
not to eligibility of an item for capital funding:
Page 1-12
FTA C 5010. IB
9-7-95
(1)
(2)
O)
Real Property means land, including affixed land improvements, structures and
appurtenances.. It does not include movable machinery and equipment.
Personal Property means property of any kind that is not real property. It may be
tangible-having a physical existence--or intangible, such as patents, inventions and
copyrights.
Equipment _means ali tangible, nonexpendable, personal property that has a
useful life of more than one year and an acquisition cost that exceeds $5,000 per
unit. Includes rolling stock and all other such property used in the provision of
public transit service. A grantee may use its own definition of equipment
provided that such definition would at least include all equipment so defined
above.
1
Unit Value: The market value ora single piece of equipment such as a
bus.
Market Value: The most probable price which the equipment should bring
in a competitive and open market.
Service Life (Useful Life). Service life of revenue rolling stock which
begins on the date the vehicle is placed in revenue service and continues
until it is removed from service.
Straight .Line Depreciation. The value of a vehicle is depreciated on a
straight-line basis over the service life as a percentage of cost. The
Federal interest in rolling stock is determined on the basis of straight line
depreciation over the service life of the asset.. '
That is, a 12 year minimum service life depreciates 1/12 of its original
purchase price each year. The FTA interest in that bus therefore
decreases each year by 1/.1.2 of the amount of the Federal grant that was
awarded for its purchzJe.
Co) Supplies mean aH tangible personal property other than equipment.
Acquisition Cost of Purchased Equipment means the purchase price of equipment.
This is the net invoice unit price, including the cost of modifications, attachments,
accessories, or auxiliary apparatus necessary to make the equipment usable for the
intended purpose. Other charges such as the cost of. inspection, installation,
transportation, taxes, duty or protective in-transit insurance should be treated in
accordance with the grantee's regular accounting practices, as' separate line items.
The cost of items separately installed and removable from rolling stock, such as fare
FTA C 5010. lB
9-7-95
Page 1-13
(4)
(s)
boxes and radios, is treated as a separate acquisition and not as part of the cost of the
vehicle.
Excess Property means property which the grantee determines is no longer required
for its needs or fulfillment of its responsibilities under a FTA assisted grant.
Net Proceeds from the Sale of Projeet Equipment and Real Property means the
amount realized from the sale of property no longer needed for transit purposes less
the expense to sell'it.
(a)
Equipment. Net proceeds from equipment means that selling expenses of $100 or
10 percent of the sale price, which ever is greater, can be deducted to achieve
net proceeds.
Co)
Real Property. Net proceeds from the sale of real property means that the actual
selling expenses up to 10°,4 of the sale price can be deducted. With FTA
approval, the grantee may dispose of excess real estate parcels of up to $5,000
value without ca'edit to FI'A, 4~rovided Federal funds do not partic/pate in any
associated disposition costs. The grantee should retain documentation for
review dm'lng the Triennial Review process. (Also see page 1-27.)
Incidental Use of Projeet Property. The authorized use of real and personal property
acquired with FTA funds for purposes other than provision of transit service. Such
use must be compatible with the approved purposes of the project and not interfere
with intended uses of project assets. Air rights sale and lease are treated as incidental
uses and not as disposition of excess property. (See p/ge 1-17, paragraph 7b(3).)
Airspace. Airspace, as used herein, is that space located abOve: at, or below
(subterranean) the established gradeline~ lying within a project's approved
right-of-way limits. (See page 1-17, paragraph ?b(3).)
(8) Excess Property Inventories.
Excess Real Property Inventory and Utilization Plan means the document that
lists each real estate parc~ acquired with partic/pation of Federal funds that is
no longer needed for approved FTA project purposes and states how the
grantee plans to use or dispose of it.
Co)
Equipment Inventory means that a physical inventory of the property must be
taken and the results reconciled with the property records at least once every
two years.
Page 1-14
FTA C 5010. lB
9-7-95
bo
(9)
~eview Appraisal. A review appraisal is prepared by an appraiser who examines the
reports of other appraisers to determine whether their conclusions are consistent with
the data reported and with other generally known information.
(10)
Non-Traditional Insurance means contribution to a reserve fund covering the risk of
loss of, or damage to federally assisted property specifically approved by FTA. This
may include self-insurance or other if expressly provided for in the Federal award or
as described in OMB Circular A-$7. (See page 1-22, paragraph 7d.)
Real Property. The following requirements govern the acquisition, use or disposition of
real property purchased with Federally participating funds. The grantee isadvised to
contact FTA for technical assistance xegarding contaminated property.
Hazardous Waste Contamination Under no circumstances will there be Federal
participation in .costs to remediate a property unless the grantee has exercised due
diligence before acquisition in seeking and evaluating the risks for contamination and
has aggressively sought legal recourse against, potentially responsible parties. Due
diligence includes a parcel-by-parcel Phase I I-l~7*rdous Waste Initial Site
Assessment, with both on-site ahd off-site reconnaissance, conducted by personnel
trained and .experienced in identifying potential hazardous material problems. The
Phase I assessment should be coordinated with appropriate State agencies and
documented in a report that describes the procedures and methodology used and
contains an analysis of the results, opinions and recommendations regarding further
actior~. If the potential for contamination exists, further studies (a Phase II
Preliminary. Site Investigation) by appropriately qualified speciali~ will be necessary
in order to assess the type and cost of mitigation that might be required. Results of
the reports should be discussed with FTA prior to acquisition of property.
The legal responsibility for hazardous.material dean-up r~sts wiffiin the property title
chain and, as such, ownership should be avoided until the grantee can be reasonably
cemfin the property is contamination-free. If contamination is encountered during
construction, legal actions should be taken against previous property owners as liable
parities for the costs involved in the clean-up.
CO, nsiderable experience-by both public and private entities-has been gained in
minimizing contamhm, tion-related liability and in establishingguldelines for what
constitutes adequate site assessment practices to satisfy due diligence responsibilities
of participants in real estate transactions. Guidance documents have been printed.
Authors of publications, current at the time of this writing, include the American
Society for Testing and Materials (ASTM), the National Ground Water Association,
the Urban Land Institute, the Transportation Research Board, the American
Association of State Highway and Transportation Officials (AASHTO), and the
Occupational Safety and Health Administration. ASTM has developed one of the
most respected set of procedures for conducting environmental site assessments for
FTA C 5010. lB
9-7-95
Page 1-15
Phase I and II. A transit agency that is developing in-house due diligence procedures
should consider AS'TM recommended procedures. [ASTIVl, Philadelphia, PA., (215)
299-5585]
(2) Acquisition.
(a)
Relocation. Real property acquisition and relocation activity must be carried
out pursuant to the requirements in the Uniform Relocation Assistance and Real
Property Uniform Relocation Act of 1970, as amended, (Uniform Act). and'
codified in 49 CFR Part 24. Also see category XI in the FTA Annual
Certifications and 'Assurances.
Co)
Appraisals. Real Property is acquired at its current fair market value. Except as
discussed in paragraph (h), fair market value will be established on the basis of a
recent independently prepared appraisal by a certified appraiser. Only one
appraisal is required regardless of the value. An additional appraisal may be
made if the grantee finds the valuation problem complex and deems a second
appraisal to be appropriate. In. accordance with 49 CFR Part 24, grantees shall
instruct appraisers to disregard any decrease or increase in the fair market value
of the real.property caused by the project for which the property is to
acquired or by the likelihood that the property would be acquired for the
project.
Review Appraisals. All appraisals for acquisition of rea~ property are to be .
reviewed in accordance with the 49 CFR Part 24 and with Standard 3 of the
Uniform Standards of Professional Appraisal Practice (USPAP). Deviation
from appraiser and review appraiser qualification is prohibited without a waiver
fi.om FTA." : :
Before acceptance of an appraisal, the review appraiser must determine that the
appraisers documentation, including valuation data and the analysis of that data,
demonstrates the soundness of the appraiser's opinion of value. The reviewer
must condu~t a field view of the subject and the comparables used in the
valuation of the subject or make satisfactory comment as to why such field
review was not necessary. The review appraiser must, prior to acceptance of an
appraisal, seek necessary corrections or revisions. Ii'the appraiser cannot be
convinced to make the corrections or revisions, a second appraisal can be
ordered or the review appraiser can set a different value as long as he or she
provides the support for any changes. The review appraiser can use the
acceptable support data within the existing appraisal. Ii'the review appraiser
establishes a different value instead of ordering another appraisal., the grantee
may at its discretion decide whether a second review is needed.
Pa~e 1-16
FTAC 5010.1B
9-7-95
FTA Requirements. Prior FTA concurrence is required when the grantee's
recommended offer of just compensation exceeds $250,000. Prior FTA
concurrence is also required when a property, appraised at $250,000 or more,
must be condemned.
Instead of using its power of eminent domain, when a proPerty cannot be
purchased at appraised value, a grantee may propose acquisition through
negotiated settlement. The grantee must document that reasonable efforts to
purchase it -at the appraised amount have failed and prepare written justification
· supporting why the settlement is reasonable, prudent and in the public interest.
When the settlement exceeds the offer by $10,000, a litigation attorney must
provide a written assessment of proposed settlement risks over the risks of
proceeding in court. Prior FTA concurrence is needed when the settlement is '
$50,000 higher than the offer.
Alternatix;e Procedure. A grantee conducting a major capital project may prefer
a process approval, which permits higher dollar thresholds before FTA prior
concurrence is needed. To do this, a FTA real estate specialist must review
and approve the processes used in ncquiring and clearing real estate. Grantees
may request a review through the FTA Regional Office.
In-Kind Contributions. In-kind contributions of real properW ns part of the
local mat~ share are eligible for a grant if needed to carry out the scope of
the approved project. The property can be owned and donated by the grantee
or by a third party. The in-kind contribution allowance will be based on the
current market value as independently appraised.
Credit can only be allowed for the value of the portion of real .property used or
consumed by the project. The request must includ~ a statement that Federal
funds were not used to purchase the property. -Only the non-federal share of the
property may be counted as cost sharing or matching.
Functional Replacement. Functional replacement provides a method of paying
the cost necessary to replace a publicly owned facility (i.e., a fire station or
school) being acquired with a s'unllar needed faoility that offers the same utility,
including requirements of present day local laws, codes, and reasonable
prevailLn~ standards in the area for shnilar facilities. The property to be
functionally replaced must be in public ownership (State, County, City or other
public jurisdiction), and State law must permit the incurrence of functionally
replacement costs. The grantee must demonstrate and FTA must concur that
functional replacement is in the public interest.
FTA C 5010. lB
9-7-95
Page 1-17
O)
(h)
Exceptions. Full appraisal and/or negotiation procedures are not necessary in
certain instances. FTA should be contacted for further guidance when any one
of the following situations occurs:
I The owner is donating the property.
The grantee does not have authority to acquire property by eminent
domain.
The property qualifies as a voluntary'acquisition as defined in 49 CFR
24.101(a).
The valuation problem is uncomplicated and .the fair market value is
estimated at $2,500 or less, based on a review of available data.
Incidental Use of Real Property. Title to real property is vested in the grantees or
other public bodies. It is FTA policy to permit grantees maximum flexibility in
determining the best and most cost-effective use of FTA-funded property. To this
end, FTA encourages incidental uses of real property that can raise additional
revenues for the transit system or, .at. a reasonable marginal cost, enhance system
ddersh/p. For example, grantees may be able to encourage incidental use of airspace
rights at, over and under transit facilities and project areas. FTA approval is
required for these incidental uses of real property which must be compatible w/tti the
original purposes of the grant.
Incidental use of project real property is subject to the following considerations:
This policy applies only to property that continues to be n..e~ed and used for an
FTA project or program. It is FTA's intention to assist only in the purchase of ,
property that is needed for an FTA project.
Assurance must be provided that the incidental uso will not compromise the safe
conduct of the intended purpose and activity of the initial mass transit project
activity.
Incidental use mus~ not in any way interfere with the grantee's continuing
control over the use of the property or its continued ability to carry out the
project or program.
(d) While FTA is particularly interested in'encouraging incidental use as a means of
supplementing transit revenues, non-profit uses are also permitted.
(e) Proceeds from sale or lease of airspace should refiect appraised fair market
value.
Page 1-18
FTA C 5010. lB
9-7-95
Income received from the authorized use of airspace may be retained by the
grantees (without returning the Federal share) ifthe income is used for eligible
transit planning, capital and operating expenses. This income cannot be used is
part of the local share of the grant from which it was derived. However, it may
be used as part of the local share of another FTA grant.
Disposition of Excess Real Property. When real property is.no longer needed for the
originally authorized purpose the grantee will request disposition concurrence from
FTA. Following are disposition options:
Sale. Market and competitively sell the property and pay FTA its share of the
fair market value of the property. This is the percentage of FTA participation in
the original grant times the best obtainable price, net of reasonable sales costs.
With FTA approval, the grantee may dispose of excess real estate parcels of up
to $5,000 value without credit to FTA, provided Federal funds do not
participate in any associated disposition costs. The grantee must document the
basis detcrmining value.
Retention of Title. Retain title after compensating FTA. Compensation will be
computed by applying FTA's percentage of participation in the original cost to
the current fair market value of the property. With FTA approval, credit to
FTA is not required when documented property value is $5,000 or less. The
grantee must docmnent the basis for value determination.
Transfer for Other Transit Use. The grantee may transfer the property to
another FTA project or to .another grantee to use for a different FTA project
without a reimbursement of funds to FlA. The new:bwner acquires the
transferors proportional interest in the appraised fairmarket value of the
property and assumption of liability for any continuing Federal interest in it.
Transfer for Non-Trnnsit Public Purpose. 49 U.S.C. § 5334(g) (formerly
Section 12(k) of the FT Act), subject to certain findings, allows transfer of
capital assets, facilities, equipment or land to a local governmental authority to
be used for any public purposes other than transit with no further obligation to
the Government.
The following procedures may assist in implementing a transfer which will be
effected only upon n written determination by FTA:
The grantee forwards a copy of the original FTA grant budget for the
asset as well as a copy of any records describing the current condition of
the asset and the current value of the Federal interest in the asset;
FTA C 5010. lB
9-7-95
Page 1-19
(5)
The grantee forwards a current appraisal of real property or statement of
value for other assets which should be prepared by an entity other than
the public entity proposed to receive the asset;
The grantee provides a description to include address of the asset (when
land or facilities), sufficient for the Government to advertise its availability
to other Federal agencies;
The gra-ntee provides a resolution from its board which states that the
grantee no longer has a need for the asset and there are no other recipients
of Federal transit assistance that could use it;
FTA, through an appropriate survey process in the Federal Register, then
determines whether there is interest in acquiring the asset ('fffacility or
land) ;for other Federal Government use;
If no other Federal use is identified for the existing land or fac'dity, FTA
requests formal confumation from the grantee that the value of the asset
for the non-transit public purpose is equal to or more than the remaining
Federal interest. Value need not necessarily be limited, to fair market
value. Other factors may be considered;
_7
The transfer agreement between the grantee and transfer recipient must
include a requirement that the asset, land, facility or equipment will remain
in public use for at least 5 years; and
This provision is in addition to and not in lieu of other law governing the
use and disposition of a facility or equipment under_a~, assistance
agreement.
Excess Real Property Inventory and Utilization Plan. The grantee must prepare (or
update) an excess property utilization plan for all property that is no longer used to
carry out the originally intended purpose. Grantees are also required to notify FFA
when property is removed from the service originally in{ended at grant approval and
put to additional or substitute uses.
If the grantee determines that real property is no longer needed for the approved
project, FTA may approve use of the property for other purposes. This may include
use in other Federal grant programs or in non-Federal programs that have consistent
purposes with those authorized for support by FTA.
In those situations where a grantee or subgrantee is disposing of real property
acquired with grant funds and acquiring replacement real property under the same
Page 1-20
FTA C 5010. IB
9-7-95
Co
program, FTA may permit the net proceeds from the disposition to be used as an
offset to the cost of the replacement property.
(a) Reason For Excess Property. The grantee shall identify property and the reason
it is excess. Such reasons could include:
The parcel, when purchased, exceeded the grantee's need (uneconomic
remnant, to logical boundary, part of administrative settlement, etc.);
The property was purchased for commotion staging purposes such as
access, storage or underpinning, and now is no longer being used for
those purposes;
The intended use of the parcel is no longer possible because of system
changes, such as alignment, or amendments to the project grant
agreement;
Improvements on real property that are damaged or destroyed, and thus
not be'rog used for project.purposes, may still be needed for the project, ff
so, they may be renovated or replaced. In this case, applicable cost
principles must be observed; or
A portion of the parcel remains unused, will not be used for project
purposes in the foreseeable future, and can be sold or otherwise disposed
of.
(b)
The inventory list should include such things as property iocati.o.n; summary of
any conditions on-~he title, original acquisition cost. and the Federal participation
ratiO; FTA grant number, appraised value and date; a brief description of
improvements; current use of the property; and :the anticipated disposition or
action proposed.
Unless FTA and the grantee agree otherwise, the excess real property inventory
and updated excess property utilization plan is to be retained by the grantee,
available upon FTA request and during the Triennial Review process.
Equipment. Certain equipment management standards apply to equipment purchased with
Federal funds.
Title. Subject to the obligations and conditions set forth in this section, title to
equipment acquired under a grant or subgrant will vest upon acquisition in the
grantee, subgrantee or another participating public body.
FTA C 5010. lB
9-7-95
Page I-2 !
(2) Use.
O)
(a)
Equipment is to be used by the grantee in the programs or projeot for which it
was acquired as long as needed, whether or not the program or project
continues to be supported by Federal funds.
The grantee may make equipment available for use on other projects.or
programs currently or previously supported by the Federal Government,
providing such use will not interfere with the work on the project or program
for which it was odginaily acquired. FTA.reserves in the grant agreement the
right to require the grantee to transfer title to equipment no longer needed or
used for the purposes of the grant (or program) to:the Federal Government or
an otherwise eligible grantee.
The grantee, must not use equipment acquired with grant funds to provide
services to ~ompete unfairly with private companies that provide'equivalent
· services. Non-transit use ofFTA fmanciaily assisted equipment is acceptable so
long is it is incidental, does not interfere with transit use (i.e., transit has
priority), and income generated is retained by the grantee in transit use.
Insurance. State and local insurance requirements govern the type and extent of
insurance coverage grantees should provide to safeguard Federally funded equipment.
Grantees are nonetheless respons~le for reimbursing to FTA the Federal share of any
casualty loss for grant-funded assets that are not replaced by proceeds from a
settlement received from an insurance carrier or from an approved non-traditional
insurance arrangement, including self-insurance by the grantee.
Grantees may handle insu:rance proceeds received as reimbursement for casualty
losses on federally funded equipment in either of two ways:
With no further FTA assistance,, use the insurance proceeds to replace or repair
the destroyed or damaged asset(s) to the standard and condition it was in. before
the loss. In this ease, there i~ no requirement to reimburse FTA, but FTA does
continue to have a proportionate interest in the replaced or renewed property.
This interest is established at the fair market value of the asset immediately prior
to the casualty loss; or.
If the item is not being repaired or replaced, the grantee must remit to FTA the
Federal share of the insurance proceeds and any applied dedu~tible fi'om the
pre-loss value, based upon the Federal/grantee cost sharing ratio under which it
was originally acquired.
Page 1-22
FTAC 5010. lB
9-7-95
do
eo
Non-Traditional Insurance Programs. Contributions to non-traditional insurance programs
are eligible for reimbursement under the FTA operating programs subject to the following
provisions, which are consistent with those applied to self-insurance programs in OMB
Circular A-87. This program stipulates that contributions to a reserve fund for a
self-insurance program approved by the Federal grantor agency are allowable to the extent
that the type of coverage, extent of coverage, and the rates and premiums would have been
allowed had insurance been purchased to cover the risks. This plan must be approved by
FTA and is subject to audit. The plan must cover certain criteria.
(1) The amounts eligible as expenses must be the actual cash deposits to the program for
reimbursement.
(2) Deposits remaining at the end of the fiscal year must be carried over into the
following year.
(3) The amounts deposited must be reasonable and actuarially sound.
(4) Interest and income earned on such programs must be used to offset insurance
programs costs.
(5) The funds in the insurance program must be used for the stated purpose.
(6) Losses charged to the program are not eligible operating expenses.
(7) In addition to (1) through (6) above, the grantee must be in compliance with FTA
Annual Certifications and. Assurances.
Leasing Agreement-Project Equipment and Facilities. The grantee may enter into a
contract for the leasing ofitS project equipment and facilities'with a'private operator.
Under this arrangement the grantee should include the following provisions in the proposed
lease agreement:
(1) Project equipment shall be operated by the lessee to serve the best interest and
welfare of the project sponsor and the public.
Lessee shall maintain project equipment at a high level of cleanliness, safety, and
mechanical soundness under maintenance procedures outlined by the project sponsor.
The project sponsor and/or FTA shall have the right to conduct periodic maintenance
inspections for the purpose of confimfing the existence, condition, and the proper
maintenance of the project equipment.
Equipment Management. Equipment management procedures include the following
minimum requirements:
FTA C 5010. lB
9-7-95
Page 1-23
0)
Property records must be maintained by the grantee. Records must include a
description, identification number, procurement source, acquisition date, cost,
percentage of Federal participation in the cost, the grant project under which it w~
procured, location, use and condition, and any disposition data, including the date of
disposal and sale price, or, where applicable, the method used to determine its fair
market value. The grantee should also state who holds title to the equipment.
(2)
A physical inventory of equipment must be taken and the results reconciled with
equipment record~ at least once every two years. Any differences must be
investigated to determine the cause of the difference.
(a)
A control system must be developed to ensure adequate safeguards to prevent loss,
damage, or theft of property. Any loss, damage, or theft must be investigated and
documented by the grantee.
Adequate maintenance procedures must be developed and implemented to keep the
property in good condition. -These procedures should be consistent with the
maintenance plan required of grantees for equipment funded under 49 U.S.C.5309
(formerly {}3 of FT Act) and 5307 (formerly §9 of FT Act) and should be documented
and avallabl~for audit or triennial review.
(s)
Equipment contracts should include supplier standard warranties that provide for
correction of unacceptable material or workmanship. These should specify coverage
and duration, and meet accepted industry standards. Grantees are responsible for:
Establishing and maintaining a system for recording warranty claims. This
system should provide information needed by the grantee on the extent and
provisions of coverage and on claim processing procedures;
(b) Identifying and diligently enforcing warranty system for recording warranty
claims; and
(c) Tagging or otherwise identifying property as Government property.
Disposition Standards For Equipment and Supplies. When equipment or supplies acquired
under a grant are no longer needed for FTA supported projects or programs, they may be
retained by the grantee or disposed of. Disposition should follow competitive sales
procedures to ensure the highest possible return. Service life of equipment is determined
by.acceptable industr~t standards for such equipment, and service life of rolling stock such
as buses or rail cars is determined in FTA Circular 9030. IA or by contacting the regional
office.
(1) Over $5.000 value: ARer the service life of equipment is reached, equipment with a
current market value exceeding $5,000 per unit, or unused supplies with a total
Page 1-24
FTA C 5010. lB
9-7-95
(3)
O)
(5)
aggregate fair market value of more than $5,000, may be retained or sold, with
reimbursement to FTA of an amount calculated by multiplying the total aggregate fair
market value at the time of disposition, or the net sale proceeds, by the percentage of
FTA's participation in the original grant. The grantee's transmittal letter should state
whether the equipment was retained or sold. Sales proceeds are discussed in
paragraph 15 of this chapter.
Less than $5.000 value: Equipment with a unit market value of $5,000 or less, or
supplies with a total aggregate market value of $5,000 or less, may be retained, sold
or otherwise disposed of with no obligation to rehnburse FTA. Records of this
action must be retained according to paragraph 17 of this chapter.
Before end of service life: Any disposition of equipment (including revenue rolling
stock) before the end of its service life is subject to prior FTA concurrence in the
method of disposition. The reimbursement amount for revenue rolling stock
removed from ,,/ervice before the end of its useful life is the greater of the FTA share
of the unamortized value of the remaining service, life per unit, based on straight line
depreciation of the original purcb~ase price or the Federal share of the sales price,
even though the unamortizedvalue is $5,000 or less. [See definitions in paragraph 7a.]
Unused Supplies. Disposition of unused supplies before the end of the industry
standard life expectancy is determined in total aggregate fair market value and if
found to exceed $5,000, the grantee or subgrantee shall compensate FTA for its
share.
.L~:e-Kind Exchange Option.. The "like-kind exchange" policy is a disposition
initiative which adds the option Of trading a vehicle or selling it and applying the
pr .oc.~ds to replacement vehicles. A grantee may elect to use the trade-in value or
the sales proceeds from a bus or rail transit vehicle, to acqhire a' replacement vehicle
of like-kind. If a grantee chooses to re-invest the proceeds, I00 percent of the net
proceeds must be applied to acquisition of the replacement vehicles. (See 49 CFR,
Pan 18.32; and Federal Register pp. 39328/39329, dated August 28, 1992).
Involuntary Removal. When equipment is involuntarily removed from revenue
service (e.g. loss through fire, accident, earthquake, etc.) prior to the expiration ofits
useful life, the sub .stimtion of capital assets purchased with local funds for those
acquired with Federal funds is permissible when:
(a) Substituted equipment is of equal or greater value.
(b) Substituted equipment was procured in accordance with guidance contained in
FTA Circular 4220. lB, Third Party Contracting Guidelines.
FTAC 5010. lB
9-7-95
Page 1-25
(c) Useful life criteria are adjusted to coincide with the original.
Equipment is to be us~l in the programs or projects that are consistent with the
· purpose for which the original equipment was procured, as prescribed in this
circular.
(e) The grantee amends its property records to include the equipment, as
appropriate.
(7)
Trade-In. Equipment may be used'as a trade-in or be'sold and the proceeds used to
offset the cost of replacement property, subject to FTA approval. [49 CFR
18.32(c)(4)]
RELOCATION. In order to be eligible for Federal participation in any phase of a project
which causes displacement of families, individuals, business concerns, nonprofit organizations
or personal property, the relocating agency must conduct relocating activity in accordance with
the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as
amended (42 U.S.C. 4601 et seq.) and referred to as the Uniform Act. Implementing
regulations are contained in 49 CFR Part 24. Before the FTA or any Federal agency, may
approve any grant, contract, or agreement with a displacing agency under which Federal
financial assistance will be made available, the displacing agency, or grantee, must provide
assurances in accordance with section 210 of the. Uniform Act. The grantee, as an acquiring
agency, must also provide assurances in accordance with section 305 of the Uniform Act.
Costs incurred to comply with State hws that are not expressly authorized by Federal law are
not always eligible project costs.
Housing Replacement Requirements. No person can be displaced, from his/her residence
because of a project until the grantee has made decent, safe, and sanitary replacement
housing aVailable to the displaced person in accordance with 49 CFR 24.204. Such
replacement housing must be located in areas generally not less desirable with respect to
public uti!ities and public: and commercial facilities, reasonably accessible to their places
· of employment, at rents or prices within their financial means, and must be fair housing
(i.e., open to all persons regardless of race, color, religion, sex or national origin).
b. Utility Relocation Agreements.
O)
General. The construction of transit systems may require the relocation and/or
rearrangement of privately and publicly owned utilities. These utilities include, but
are not limited to systems and physical plant for producing, transmitting or
distributing communications, electricity, gas, oil, crude oil products, water, steam,
waste storm water, or other substances; publicly owned fire and police signal
systems; and railroads and streets which directly or indirectly serve the public or
any part thereof. Relocating and/or re. arranging utilities and facilities necessary to
Page 1-26
FTA C 5010. lB
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10.
accommodate an FTA-funded transit system may be considered an eligible expense
as part of an FTA-funded project. Exceptions to this include those situations where
grate and local law expressly prohibit the f~nancing ot~ such by the public entity.
(2)
Eligibility for FTA Funding. In order to qualify for FTA funding, the grantee must
execute an agreement for relocating or rearranging facilities with the entity
responsible for the facilities prescribing the procedures for the relocation and/or
rearrangement_of the facilities for the purpose of accommodating the construction
of the FTA funded project. Prior FTA approval is not required in reaching a utility
relocation agreement. These agreements are distinguishable fi.om third party
contracts in that:
(a)
Only actual allowable, allocable, and reasonable costs are reimbursable.
Where the work is to be performed by the public utility's forces, no profit is
allowed; and
Co)
Reimbursement is limited to the amount necessary to relocate and/or
rearrange the facilities to effect a condition equal to' the existing utility
facilities. Gen~y, re'unbursement would not provide for greater capacity,
capability, durability, efficiency or function, or other betterments. Indirect
costs of governmental entities incurred under a utility relocation agreement
are eligible for FTA reimbursement only in accordance with an approved Cost
Allocation Plan as prescn~oed in OMB Circular A-$7.
PROCUREMENT. Third party contracts are entered into by the grantee for procurement of
supplies, equipment, construction, and other services required to execute a grant project.
Grantees must follow certain procedures to ensure that these materials and services are obtained
in free and open competition, prie~es are fair and reasonable, and are ih compliance with the
provisions of applicable Federal, .State and local laws. This. includes affording Procurement
opportunities to small and disadvantaged business enterprises.
Forinformation on specific third party contracting standards, see FTA Circular 4220. IB entitled
."Third Party Contracting Guidelines," and FTA Circular 4716.1A, entitled "FTA Disadvantaged
Business Enterprise Requirements for Recipients and Transit Vehicle Manufacturers."
Inter-Agency Agreements passing through grant funds to other public bodies (including transit
operators) are not third-party contracts. However, the pass-through grantee must comply with
FTA Circular 4220.1B (or subsequent revision), if it enters into any subsequent third-party
contracts using FTA grant funds.
PRE-AWARD AND POST DELIVERY. FTA requires grant recipients purchasing revenue
passenger rolling stock to undertake reviews of the rolling stock prior to the award of the
contract and following deliveqt of the vehicles. The requirement is fi.om 49 U.S.C. § 5335(a),
(formerly § 120) of the FT Act); the intention is to improve compliance with Buy America
FTA C 5010. lB Page 1-27
9-7-95
requirements, the grantee's bid specifications, and Federal Motor Vehicle Safety Standards.
Compliance must be certified on the Annual List of Certifications and Assurances.
11. pEER REVIEW AND CRIME PREVENTION REVIEW.
a. Peer Review. Peer review is a process used by the grantee in the planning, design and
implementation of capital projects. The concept of peer review can be applied to any
problem or situation where a second opinion can be useful to decision makers. FTA
encourages the grantee to confer with other transit operations and maintenance experts in
order to benefit from their experiences. It has been used to review rail extensions, new
start projects and the planning ora system of bus fac'dities. It has provided an in-depth
critique of rail systems designs at the preliminary and final engineering stages, provided
operations and maintenance information with respect to a variety of rail subsystems and
validating the process used by a grantees' planning staffto site bus facilities. The purpose
of peer review is to improve the performance of the process or product being reviewed.
-Basically the question asked is "can we do this better?" Althbugh the grantee is
encouraged to conduct peer review with all capital projects, in some instances it may be
required by FTA.
b. Crime Prevention Reviei~,. Grantees are encouraged (although not required) to perform
crime prevention reviews during the design phase of all FTA funded transit facilities with
particular focus on the incorporation and use of crime prevention design techniques. This
review should be carried out as a project intended to improve and increase the safety and
security of an existing or planned transit system or facility for both transit patrons and
transit employees. The level of the review should complement the project size and scope.
.Local oime prevention.professionals shoaidbe included in the review process. Review
documentation should remain on file by the grantee and be available for FTA review upon
request.
12. VALUE ENGINEERING.
a. Definition.
O)
Value Engineering (VE) is the systematic application of recognized techniques which
identify the funotion of a product or service, establish its value, and provide it
reliably at the lowest overall cost. This function should be achieved at the lowest
possible life-oycle cost consistent with requirements for performance, reliability,
maintainability, safety and esthetics. It is best accomplished at or near the end of the
preliminmy engineering stage.
Major capital project means the constru~on, extension, rehabilitation or
modernization of fixed guideway or new-start projects with a total project cost in
excess of $100 million; or a project which FTA determines is a major capital project
based on criteria defined in 49 CFR, Part 633.
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FTA C 5010. lB
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bo
It is the policy of FTA to require VE on major capital projects, and encourage the
application of VE techniques to all construction projects. A major capital project is
usually identified during the grant review process.
Other/VE Projects, Grantees are encouraged (but not required) to conduct VE on all
construction projects including bus maintenance and storage facilities whose costs are
estimated to exceed $2_ million, and on revenue railcar acquisition and rehabilitation.
VE Report. Grantees with major capital projects are required to submit a VE report to
the appropriate FTA Regional office at the end of each Federal fiscal year indicating the
results of their VE efforts. Copies of the VE report form are available in each i'egional
office.
13. PROJECT MANAGEMENT PLAN.
14.
Definition. A written plan required by 49 U.S.C. §5327 that grantees develop and
implement a project man~ement plan for all major capital projects funded by FTA as part
of the Project Management Oversight Program. This plan covers a grantee's detailed
project management ~h-ategy to controlthe project budget, schedule and quality. (See
paragraph 10 of this chapter for definition of major capital project.)
b. Basis Requirement. As a general role, if the project meets the definition of major capital
project, the grantee must submit the project management plan during the grant application
review process. IfFTA determines the project is major after the grant has been approved,
FTA will inform the grantee of its detemfifiatfon and will require submission of the plan
within 90 days. (See 49 CFR Part 663, dated 9-1-89.)
FORCE ACCOUNT
Definition. Force account work is work other than grant or project administration that is
included in an approved grant and performed by a grantee's own labor forces. Force
account work may consist of design, construction, refurbishment, overhaul and inspection,
and construction management activities if eligible for reimbursement under the grant. (See
paragraph 14b below.) lnoremental labor costs from flagging protection, service diversions
or other activities directly related to the capital grant may also be defined as force account
work. Force account work does not include grant or project administration activities
which are otherwise direct project costs.
Eligibility. One of four conditions may warrant the use of a grantee's own labor forces.
These are cost savings, exclusive expertise, safety and efficiency of operations, and union
agreement.
FTA C 5010. lB Page 1-29
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Co
FTA prior review of a force account plan and justification are required where the total
estimated cost of force account work to be performed under the grant is greater than
$1,000,000. When work to be performed is less than $1,000,000 but over $100,000, a
force account plan is required to be in the grantee's file, but does not require prior FTA
approval. When work to be performed using force account is less than $100,000 a detailed
plan is not required.
Basis for Reimbursement. Reimbursement for force account work is subject to the grantee
providing the following:.
(1) Justification for using grantee forces;
(2) Preparation of a force account plan;
0) A description of the scope of work;
(4) A copy of the construction plans and specifications which includes;
(a) A detailed estimate of costs;
(b) A detailed schedule and budget; and
(c) A copy of the proposed cooperative agreement when another public agency is
involved.
.lustitication. Submit documentation equivalent to a sole source justification stating the
basis for a determination that no private sector contra~or has the expertise to perform the
work. In addition, the required documentation must provide the basis for the grantee
decision to use force account labor including the following information:
(1)
Provide the present worth of the estimated cash drawdown for both the force account
and private sector contract options. In the analysis, use the current interest rate paid
on one-year Treasun] Bills as the discount rate;
Include the cost of preparing documents; cost of administration and inspection; cost
of labor, materials and specialized equipment; cost of overhead; profit for private
contract;
0) Include the unit prices for labor, materials and equipment; overhead, and profit if
applicable for private contract;
(4) Provide certification that costs presented are fair and reasonable;
Page 1-30
FTA C 5010. lB
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(5)
Provide an analysis, of force account labor availability, considering normal operations
and maintenance activities as well as other programmed and existing capital projects.
This must be consistent with costs of labor, material and specialized equipment; and
(6) Provide relevant citations from labor union agreements and an analysis of how it
pertains to the work in question.
eo
Calculation. Base thepresent value calculation on the midpoint of construction; and if the
time for completion of the work differs for force account and a private sector contract,
include an estimate of the cost of not using the completed improvement.in the present
worth calculation. For example, if the work is to replace leased facilities, the cost of
continuing the lease until the work is complete should be taken into account in the cost
estimate for each option considered.
Safety and Efficiency'of Operations. Safety considerations may be addressed by a
statement of the transit operator's safety officer that performing the work with private
sector contractors would have an adverse effect on public safety. Efficiency concerns may
be addressed by a present worth calculation, 'including an estimate of the value of lost
transit operation efficiency.
Special care must be taken to ensure that requirements of OMB Circular A-87 are
followed, especially for charging expendable property to force account projects and making
sure that allowable costs are assigned to the._ correct activity codes.
Most general purpose equipment and tools can be used in force account work and thereby
benefit more than one project. Therefore, the cost of these items normally should not be
treated as a direct charge to the project. However, an appropriat..e use or depreciation
charge is an allowable indir~ cost if otherwise provided forin the project budget.
.Unusual' circumstances may call for purchase of specialized equipment that is unique to the
force account work that is being performed. Ir'such equipment is required, prior FTA
approval must be obtained. The usual FTA equipment disposition requirements apply.
go
Reporting. The progress and status of force account activities sho.u, ld be separately
discussed in milestone/project reports, with emphasis on schedule 'and budget.
· CLAIMS AND CHANGE ORDERS. FTA will not substitute its judgment for that of the
grantee or subgrantee unless the matter is primarily a Federal concern Grantees and subgrantees
alone will be responsible, in accordance with good administrative practice and sound business
judgment, for the settlement of all contractual and administrative issues arising out of
procurements. These issues include, but are not limited to source evaluation, protests, disputes,
and claims. These standards do not relieve the grantee or subgrantee of any contractual
responsibilities under its contra¢~ts.
FTA C 5010. lB Page I-31
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Consistent with provisions of the grant agreement, third party contractor claims are to be
evaluated and resolved, by the grantee pursuant to the following considerations, requirements and
ao
FTA has a vested interest in the settlement of disputes, defaults, or breaches involving any
federally assisted third party contracts.
FTA retains a right to a share of any proceeds recovered through a third party contract
claim, in proportion to'~e Federal share committed to the project. If the third party
contract contains a liquidated damages provision,, any liquidated damages recovered must
be credited to the project un]ess FTA permits other uses ofthe funds involved.
c. The grantee must pursue all legal rights available under any third party contract.
The grantee must notify FTA of any current or prospective litigation or major disputed
claim in excess of $100,O00 relating to any third party contraS.
Claims for rehubursement that result from third party contract change orders issued by the
grantee are handled as sole source procurements under provisions of FTA Circular
4220.1B, not as claims. All change orders must be approved by authorized grantee
officials and supported by cost justification. The cost must be allowable, within the grant
scope, allocable and reasonable for the completion ofprojeet scope to be eligible for
funding under an FTA grant.
Claim Settlement.
(1) In order to substantiate each part of a large claim before settlement, a formal audit
may be conducted by the grantee. In those instances,, the. audit_ should be conducted
in accordance with "C. venerally Accepted Auditing Standards" as defined by the
American Institute of Certified Public Accountants;
(2) Before settlement of other claims, the grantee may prefer to undertake an audit or
shnilar analysis;
(3)
The grantee'must adequately document in its project files all pertinent facts, events,
negotiations, applicable laws, and a legal evaluation of the likelihood of success in any
potential litigation proceeding; and
O)
The grantee must assure that its documentation provides sufficient information to
serve as the basis for FTA concurrence in the compromise or settlement of the claim,
in the event that FTA review and concurrence become necessary. Although FTA
does not become involved in the negotiation of a claim, The FTA may review the
reasonableness of a negotiated claim settlement for the purpose of determining the
extent of our participation in the settlement.
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FTA C 5010. lB
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go
ho
Cost Sharing. Any Federal cost sharing in grantee's third party contractor claims will be
determined as follows. Claims that result from grantee negligence or error normally are not
eligible for FTA participation. For example, FTA normally will not participate in any claim
for which the grantee failed to:
(1) obtain clear access to all needed right-of-way prior to award of the construction
contract;
(2) execute all required utility agreements in time to assure'uninterrupted construction
progress;
(3) undertake comprehensive project planning and scheduling to achieve proper
coordination among contractors;
(4) inform potential contractors of aH available geo-technical information on subsurface
conditions;
(5) assure that aH grantee-furnished materials are compatible with contractor project
facilities and/or equipment and available when needed;
(6) complete aH pre-construction survey and engineering prior to issuing the contractor a
Notice to Proceed;
(7) .obtain the necessary approvals and agreements from aH other public authorities
~ 'affected by the project prior to contract award; or
(8) assure that aH design and shop drawings are promptly apprOved, and made available to
the contractor as needed.
If the grantee's claim records substantiate that reasonable and prudent measures were taken
to prevent or offset the causes underlying the claim,.FTA may participate in the negotiated
cost. Subject to availability offunds, FTA can fund a prorated share of the properly
incurred, eligible costs of contractor claims that are not caused by mismanagement on the
pan of the grantee or attributable to the contractor.
FTA Review and Concurrence. Grantees must secure VIA review and concurrence in
proposed claim settlement before using Federal funds in the following instances:
(1) When negotiated claim settlement exceeds $100,000, if the grantee is not
procurement self-cortilied;
(2) When insufficient funds remain in the approved grant to cover the settlement; or
FTA C 5010. lB Page 1-33
9-7-95
(3) Where a special Federal interest is declared because of program management
concerns, possible mismanagement, impropriety, waste or fraud.
Claims Review. When deemed necessary, FTA may initiate review of grantee claims.
Claimed amounts, determined to be ineligible through subsequent audit or FTA review, if
already disbursed, must be returned to FTA by the grantee.
Claims List. A list of all outstanding claims exceeding $100,000 and a list of all claims
settled during the reporting period are required as part of each quarterly progress report.
This list should be accompanied by a briefdescription and reasons for each claim.
16. SALES PROCEEDS.
General. Procedures for disposition of proceeds from the sales of FTA-funded assets are
set forth below. These apply to all planning and capital grants governed by this circular
except for previously approved grants that contain terms and conditions to the contrary.
Also see paragraph 7 of this chapter regarding Acquisition. Use and Disposition of Project
Property, and Chapter II, paragraph 4 of this circular and 49 CFR, 15~25' regarding
Program Income.
bo
Definition. Sales ProceSs are the net proceeds generated by the disposition of excess real
property or equipment that was purchased in part with FTA grant funds.
Requirement. When a grantee disposes of equipment with a unit value of more than
$5,000, or supplies with an aggregate residual value of more than $5,000, the grantee must
remit to FTA the Federal portion oforiginal participation in market value or net sales
proceeds. This provision applies to both real property and equipment that are declared
excess, regardless of whether it was;disposed:ofby sale, conversion by the grantee to
non-transit use, or disposal as a result of casualty loss. Real property must be appraised for
its market value. This provision does not apply to proceeds from sale or lease of air rights
or from other incidental uses of project property, which are treated as program income.
do
RefUnds to FTA. Sales proceeds refunded to FTA must be paid in the form cfa check or,
if over $ i 0,000, must be transmitted to FTA by the electronic funds transfer system.
Payment to resolve an audit finding may not be accomplished by an off~t against the
amount of a requisition or the amount drawn under a letter of credit. The check should be
accompanied by a memorandum explaining the purpose of the cheek and identifying the
project number under which the sales proceeds are being refunded. Mail payments to the
FTA lockbox facility at:
U.S. Department of Transportation
Federal Transit Administration
P.O. Box 360324M
Pittsburgh, PA 15251-6324
Page 1-34
FTA C 5010. IB
9-7-95
17.
eo
Proceeds Retained. Certain proceeds from the sale or other disposition of assets will be
retained by the grantee. These include the local share of proceeds from the sale of a~setg
that were funded with Federal assistance, ali proceeds from the sale of assets not funded
with Federal assistance, and all proceeds from the sale of air and subsurface rights
generated through incidental use of project real property. Proceeds from the sale of
locally financed assets that were replaced under a Federal grant must be retained for mass
transit purposes. (Als0. see insurance proceeds in page 1-24, paragraph 7c.)
PROGRAM INCOME. Program income means gross income received by the grantee or
subgrantee directly generated by a grant supported activity, or earned only as a result of the
grant agreement during the grant period, the time between the effective date of the award and the
ending date as reflected in the final financial report. In general it includes income from fee~, for
services performed, from the use or rental of real or personal property acquired with grant funds,
fi'om the sale of commodities or items, fabricated under a grant agreement, and from payments of
principal and interest on loans made with grant funds. Except as otherwise provided in
regulations, program income does not include interest on grant funds, rebates, credits,
discounts, refunds, etc., and interest earned on any of them.
15. RETENTION AND ACCESS EEOUIR MENTS FOR RECORDS.
Applicability. This section applies to all financial and programmatic records, supporting
documents, statisticafl records, and other records of recipients which are:
(1) Required to be maintained by this circular or the terms of the grant agreement, or
otherwise reasonably considered as-pertinent t6 FTA program requirements or the
grant agreement.
(2) Records executed electronically may.be retained in.that manner; but files must be
accessible for possible review, audit or down-loading to paper copy,when required.
(3) This section does not apply to records maintained by contractors or subcontractors.
b. Length of Retention Period.
(1) Except as otherwise specified, records must be retained for three years from the
starting date specified in paragraph 18c, below.
(2)
ffany litigation, claim, negotiation, audit or other action involving the records has
been started before the expiration of the 3-year period, the records must be retained
for three years at, er completion of the action and resolution of all issues which arise
from it.
FTA C 5010.1B
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Page I-35
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(3)
To avoid duplicate record keeping, FTA may make special arrangements with
grantees (including subgrant~,es as appropriate) to retain any records which are
continuously needed for joint use. FTA will request transfer of records to its custody
when it determines that the records possess long-term retention value. When the
records are transferred to or maintained by FTA, the 3-year retention requirement is
not applicable to the recipient.
Starting Date of Retention Period.
(1)
General. The starting date for retention ofrec, ords related to multiyear projects is
the date of submission of the expenditure report upon project completion or, if
waived, the date it would have been due.
Equipment records. The retention period for the equipment records required by
paragraph 7c(2)(a) and Co) starts from the date of the equipment's disposition or
replacement or transfer at FTA's direction.
O)
Records for income transactions after grant closeout. In some cases grantees must
report income after a grant is closed out. Where there is such a requirement, the
retention period for the records pertaining to the earning of the income starts from
the end of the grantee's risc, al year in which the income is earned.
0)
Indirect cost rate proposals, cost allocation plans and similar rate and rate allocation
methods. This paragraph applies to the following types of documents, and their
supporting records; indirect cost rate computations or proposals, cost allocation
plans, and any s'unilar accounting computations or the rate at which a particular
group of costs is chargeable (such as computer usage charge back rates or
composite fringe benefit rates).
(a)
Ii'submitted for negotiation: If the proposal, plan, or other computation is
required to be submitted to the Federal Government (or to the grantee) to form
the basis for negotiation of the rate, then the 3-year retention period for its
supporting records starts from the date of such submission.
If not submitted for negotiation: If the proposal, plan, Or other computation is
not required to be submitted to the Federal Government (or to the grantee) for
negotiation purposes, then the 3-year retention period for the proposal, plan,
or computation and its supporting records starts from the end of the fiscal year
(or other accounting pedod) covered by the proposal, plan, or other
computation.
Substitution oflVliorofilm. Copies made by microfilming, photocopying, or similar
methods may be substituted.
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FTA C 5010. lB
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e. Access to Records.
(1)
Records of grantees and subgrantees. FTA and the Comptroller General
of the United States, or any of their authorized representatives, have the right of
access to any books, documents, papers, or other records of the grantee which are
pertinent to the grant, in order to make audit, examination, excerpts, and transcripts.
(2) Expiration ofrig.ht of access. The right of access in this section is not limited to the
required retention period but continues as long as the records are retained.
Restrictions on Public Access. The Federal Freedom of Information Act (5.U.S.C. 552)
does not apply to grantee records owned and possessed by the .grantee. Unless required
by State or local law, grantees and subgrantees are not required to provide periodic public
access to thew records. However, FTA may request a grantee to provide access to those
records the grantee maintains on behalfofFTA i.e., records FTA requires by Federal
statute or regulation, such as Davis-Bacon wage records.
19. SPECIAL REQUIREMENTS.
Political Activities. Chapter 15 ofTitle 5 of the United States Code (Hatch Act) provides
that all State or local agency employees who are engaged in an activity financed by
Federal Government grants or loans may not be candidates for elective office or use their
positions to influence public elections. Furthermore, those State and local agencies
receiving .Federal assistance are prohibited from coercing their employees into making
political contributions. Exceptions to the general Hatch Act prohibition do exist, such as
that for certain non-supervisory transit employees and persons holdin~ elective office.
State and local agencies should contact the appropriate FTA Regional Counsel or the FTA
Office of Chief Counsel to discuss any questions they may have about the'specific
applicability of these provisions to their situation.
bo
Environmental Mitigation. The National Environmental Policy Act (42 U.S.C. 4321) and
the FTA's implementing procedures (23 CFR. Part 771) require that the environmental
effects of proposed transit projects be documented and that environmental protection be
considered before a decision can be made to proceed with a project. Where adverse
environmental effects are likely to result, 49 U.S.C. § 5324Co) Economic. Social and
Environmental Interests. require that alternatives be considered to avoid those effects. If
there is no feasible and prudent alternative to avoid the adverse environmental effects, ali
reasonable steps must be taken to minimize those effects.
Measures to avoid or mitigate environmental harm are described in the environmental
documents prepared for projects. These measures have been developed jointly by FTA
and the grantee to respond to State and local as well as Federal environmental
requirements. The mitigation measures in final environmental documents are expressed as
commitments on the part of the grantee which will be implemented if the project receives
FTA C 5010. lB
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Page 1-37
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Federal funding. When a grant is made, the mitigation measures are incorporated by
reference in the grant agreement for construction and become legally binding terms and
conditions of the grant which cannot be withdrawn or substantively changed without
FTA's approval.
The progress in implementing adopted mitigation measures is monitored by FTA regional
staff through periodic project reviews, on-site inspections and special meetings when
necessary. The grantee has the responsibility to apprise FTA at the earliest possible time
of any problems in implementing the adopted measures and any need for changes. Where
mitigation options are being considered, FTA will maintain a role in the decision process
to ensure continuing compliance with DOT regulation 23 CFR Part 771 implementing
Environmental Impact & Related Procedures. and 49 U.S.C.. § 5324 Co) Economic. Social
and Environmental Interests (formerly § 14 of the FT Act).
Information about FTA's environmental protection process is available through the FTA
regional office.
· Copyrights and Rights in Data. When FTA provides financial assistance for demonstration
projects, it is with the general intention to increase public transit knowledge, rather than
limit thc benefits of the project to the participants of the project. Except as otherwise
provided in the grant agreement, the grantee is free to copyright any material developed
under or during the course ora project.
However, FTA reserves a royalty-flee non-exclusive and irrevocable fight to reproduce,
publish, distribute, .or otherwise use, and to authorize others to use the work for
Government purposes. This applies particularly to FTA assisted capital and operating
projects. In addition, for research, development, demonstration projects financed with
'FTA awarded assistance, FTA reserves the,right to acquLre greAter.rights in data. including
Patent Rights. All grantees must notify FTA of any inventions, improvements, or
discoveries conce'nmd or actually reduced to practice by the grantee or its employees in
the course of~ or under the terms of~ the grant contract. FTA determines whether or not
and where a patent application will be filed, as well as the disposition of all rights in such
inventions, improvements and/or discoveries, including title to and rights under any patent
application Or patent that may be issued. The grantee is responsible for executing aH
documents to effect the determination.
Page 1-38
FTA C 5010. lB
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0°
Published Reports. All FTA sponsored reports must contain on the inside front cover the
following disclaimer:
NOTICE
"This document is disseminated under the sponsorship of the
Department of Transportation in the interest of information exchange.
The United States Government assumes no liability for
the contents or use thereof."
When trade names or manufacturers names are used in a report, this fact must be
spe~icadly brought to the attention of FTA before the report is approved. These reports
must contain the following notice on the inside front cover:
NOTICE
"The United States Government does not endorse products or .manufacturers.
Trade or manufacturers' names appear here'm solely '
because they are considered essential to the object of this report."
Seismic Design and Construction Standards. All Federal agencies must ensure that new
Federally funded buildings and additions to existing buildings built with Federal fissistance
are designed and constructed in accordance with required standards. The applicant is
responsible to know before accepting delivery that the building complies with the seismic
designa~.d construction requirements and certify through the Annual Certification and
· ' Assurimce process, as required by 49 CFR, Part 41.
'FTA OVERSIGHT. FTA may conduct on-site inspections of project~ to evaluate the grantee's
effectiveness in implementing the Project in conformance with the grant agreement. Inspection
visits may be made, for example, to follow up on information received from the grantee about
an event with significant impact on the project, or to determine whether the grantee has
ndequately complied with civil rights laws, regulations, and agreements.' Inspection and
concurrence by FTA in project work does not relieve the grantee of its responsibilities and
liabilities as the responsible party for carrying out the grant.
:a. Project Management Oversight (PMO).
(1)
Definition. PMO is the monitoring cfa project's progress in order to determine if
the project is on time, within budget, in conformance with grantee's approved plans
and specifications, and is implemented efficiently and effectively.
Requirement..FTA conducts PMO for major capital projects, using its own staffer
a combination of FTA and contractor staff. For general guidance, grantees are
required to provide all needed information about each project selected for this
FTAC 5010. lB
9-7-95
Page 1-39
do
oversight. PMO begins as early in project implementation as practical, usually
during the preliminary engineering process.
(3)
FTA Project Team. FTA may assign its own or contractor staffto provide special
oversight or monitoring of major construction or equipment acquisition projects.
Contractor staff are generally used for major projects.
Ouarterly Project Management Meetings. Quarterly project management meetings may be
instituted with selecteC~ grantees. These meetings will provide a forum for management
briefings; status/progress reports, discussion :of.~tccomplishments and problems and, as
appropriate, an. opportunity for site inspection. The quarterly meetings do not replace
quarterly written reports unless a specific exemption is granted by FTA.
Triennial Review. VIA is required by law to perform reviews and evaluations of grantees
to evaluate formula grant management performance and grantee compliance with current
FTA requirements. The reviews must be conducted for each formula grant recipient at
least once'every.3 years and integrated into FTA's grant management functions. The
reviews are conducted by teams formed by FTA staff and outside contractors following an
annual work program. Desk reviews are followed by a site visit. The team documents its
findings and commendations in a draft triennial review report, which is furnished to the
grantee for comment before it is released in final form to interested local, State and
Federal officials.
When appropriate, corrective actions are recommended to resolve grantee program
mmutgement deficiencies. FTA monitors the grantee's actions until compliance with all
program requirements is achieved. If needed, VIA can invoke sanctions to assure that
grantees act to correct any noted program deficiencies.
Financial Management Systems Reviews..Grantees are select~ for FMO review by VIA
to provide VIA an oversight to°l and the grantees with technical assistance on financial
management systems issues. The FMO review scope requires FMO contractors to conduct
a series of interviews, full transaction review and appropriate substantive tests.
Determination is made whether the grantee's financial management system meets the
requirements of the Common Rule (49 CFR Part 18.20), and expresses an objective,
external, independent professional opinion to FTA on the effectiveness of the grantees
internal control environment. An average FMO review takes three to four weeks at the
grantee site.
Procurement Review. Conduct of procurement system reviews of FTA grantees normally
involve a site visit to .ensure that the requirements and standards of the common rule on
administrative requirements for grants, 49 CFR Part 18.36 as it specifically applies to
procurements, are met.
· Page 1-40
FTA C 5010. IB
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21.
Safety Reviews.
(l)
Drug and Alcohol Program. Based on information acquired from a variety of
possible sources (media reports, triennial review .findings, annual MIS reports), FTA
'will assign its own staff, plus contractor support, to audit grantees' drug and alcohol
testing, programs which appear to be in non-compliance with FTA regulations. The
-audits will be extensive, in-depth reviews and will include detailed examination of
records and interviews with appropriate grantee personnel and their contractors.
(2)
Security Audits. Grantees' security activities will bexeviewed, on a voluntary basis,
to assist grantees in their efforts to enhance the personal security~of patrons and
employees. The National Transit Data Base [49 U.S.C.i§5335(a), formerly § 15 of
FT Act] will be used to target which grantee would benefit from security audits;
audit findings would be used subsequently to focus technical assistance efforts and
capital program resources where most needed.
O)
State Fixed Guideway Safety Oversight Management Reviews. FTA state safety
oversight regulation mandates that states with other regulated rail fixed guideway
systems assume safety oversight responsibility of those systems. FTA will conduct
management reviews of the states' plans and reports which are submitted periodically
to FTA.
Civil Rights Review. Civil rights compliance is required by recipients and subrecipients of
Federal assistance as specified in the FTA Master Agreement which sets'forth the terms
and-conditions governing the.administration of a transit project or projects supported with
FTA financial assistance. FTA retains the right to review grantee compliance status at any
time during the life of the project.
SUSPENSION.-The suspension of a grant is an action by FTA~whioh temporarily suspends
Federal assistance for a project pending corrective action by'thegrantee.or pending a decision
to terminate the grant by FTA~ IfFTA determines that the grantee has failed to comply with the
terms and conditions of the grant agreement, including the civil rights requirement, FTA will
notify the grantee in writing of its intent to"suspend the grant. FTA may withhold further
payments and/or prohibit the grantee ~om incurring additional obligations pending corrective
a~tion by the grantee or a decision to terminate the project for cause. This includes work being
performed by third party contractors or consultants. Unless FTA notifies the grantee otherwise,
suspension will not invalidate obligations properly incurred by the grantee prior to the date of
suspension to the extent that they are uncancelable.
22. TERMINATION. A grant may be terminated either for convenience or cause.
Termination for Cause. FTA may terminate a grant, in whole or in part, at any time before
project completion, whenever it determines that the grantee has failed to comply with the
conditions of the grant including failure to make reasonable progress. FTA will promptly
FTA C 5010. lB
9-'7-95
Page I-41
notify the grantee in writing of its intent to terminate and the reasons thereof and the
effective date. Payments made to the grantee or recoveries by FTA will be in accordance
with the terms of the grant agreement and the legal rights and liabilities of both parties as
defined in the agreement.
Termination for Convenience. FTA or the grantee may. terminate a grant in whole or part,
when both parties agree that continuation of the project would not produce results
commensurate with _the further expenditure of funds. By signing the grant agreement, the
grantee agrees at the outset to a termination for convenience ifFTA makes such a finding.
Both parties must agree upon the termination conditions, including the effective date and,
in case of partial termination, theportions to be terminated. The grantee may not incur
new obligations for the terminated portion after the effective date .and must cancel as many
outstanding obligations as possible. FTA will evaluate each noncancelable obligation to
determine its eligibility for inclusion in project costs. Settlement will be made in
accordance with terms and conditions of the grant agreement. FTA allows full credit to
the recipient for the Federal share of the noncancelable obligations properly incurred by
the grantee prior to termination.
Partial Termination. In some cases, FTA may deobligate funds in an approved grant
before close-out because they are no longer needed to accomplish the grant purpose.
CLOSE-OUT PROCEDURES. Close-out is the process by which FTA determines that aH
responsibilities and work by the grantee have been completed-and the associated financial
records ar~ closed. Close-out begins hnmediately after aH work activities under the grant are
completed and all dose-out documentation must be submitted within the following 90 days.
Final Financial Settlement. The grantee must initiate cioso-out of a grant when all
approved activities have been completed.. This requ'tres a.l .ett6r notifying FTA that the
grant is ready for dose-out: In order to expedite grant dose-out the following should be
(1) A final Financial Status Report (SF-269A);
(2) Final budget listing of actual project costs by scope and activity;
0) Final progress report including a narrative discussion of each activity item contained
in the final grant budget;
(4) Refund of any unexpended balance of Federal funds;
(5) A list of equipment purchased through the grant; and
(.6) Any other report(s) required as part of the terms and conditions of the grant.
Page 1-42 .
FTA C 5010. lB
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Close-Out by FTA. FTA reserves the right to unilaterally initiate grant dose-out. There
are certain circumstan. ~ that .could cause FTA to close-out a grant in whole or in part at
any time before project completion such as:
(1) Grantee failure to comply, with the terms or conditions' of the grant agreement or
other Federal requirement;
Continuation of the project would ngt produce results commensu'rate with further
expenditUre of ffinds; "
(3) Funds are no longer needed to accomplish the grant purpose;
(5)
Failure by the grantee to ~ce ~easonable progress to complete appro{,ed grant
aotivi.ties; or,
· Determination that tho.. project has been essentially C°mplet~l and/or approved funds
have been substantially drawn down.
Adju. stments to Federal Share of Costs. Nece4. sa~ adj.ustments to the Federal share of
cost will be'made aRer~ FTA has received and l:eviewed the reqfiired clo~ht'infom~on.
· Adjustments..,may. also be necessary aRer the audit required by OMB Circular A:128 has
been performed. FTA funds are not ..available for.audit..or other grant activities af[er a
.grant has been closed out.-. Additional information on-audit is contained'in Chapte? H,
paragraph'6 ..... ..
Any Federal' gnmt funds received by the grantee but not expend.ed mast be r~mmed a
check payable to the Federal Transit Administration and mailed to the address shown
below, or wire transfer, if the amount is.$10,O00 or more.. "- ..
Checks should be mailed to:
U.S. D'ePartme~t of Transp°Ration
Federal Transit Administration
P.O. Box 360324M' '
Pittsburgh, PA 15251-6324
Whenever checks are mailed to PittsbUrgh the grantee shohld send a letter of explanation
to the FTA Regional Office.
The following 2 pages are Exhibits l-I and I-2
FTA C 5010. lB Page 1-43
9-7-95
A SUMMARY OF
PLANNING, CAPITAL AND OPERATING GRANT CHANGES
BUDGET REVISION - A transfer of funds within an approved grant budget. None of the budget
revisions described below permits a change in the grant amount, scope, or terms and conditions.
Planning Grants: 49 U.S.C. § 5303 (formerly Section 8 of FT Act).
Urbanized Area Formula Program: Including Planning, Capital And Operating
Grants Under 49 U.S.C.§ 5307 (formerly Section 9 of FT Act).
Capital program: 49 U.S.C.§ 5309 (formerly Section 3 of FT Act).
Budget revisions that do not require prior FTA approval are:
~ 1) Fund transfers within scope and between scopes of same matching ratio if under 20% of
'- most recently FTA-approved budget;
2) Adding activities that are within scope;
With prior FTA approval and limitations listed below, a budget revision is also used to:
Add, delete or modify grant work tasks consistent with the currently approved Unified
Planning Work Program or State work program;
Transfer.funds within an approved budget that cumulatively exceeds 20 percent of the budget
most recently approved by FTA, but does not exceed 30 percent of plannin, g~gr~n_ ts, and FTA's
share of grant is more than $100,000;
Increase or reduce the number:of units to be.purchased or constructed where the change does
not exceed the greater of two units or 20 percent of the approved.grant scope;
Change the size of physical characteristics of the project scope items;
Transfer funds between operating, capital/planning scopes; or scopes with different matching
ratios.
Refer to section 6 of chapter I for more detailed information.
(Exhibit I-1 continued on following page)
Page 1-44
FTA C 5010. lB
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PLANNING, CAPITAL AND OPERATING GRANT CHANGES (Continued)
ADMINISTRATIVE AMENDMENT - An amendment normally initiated by FTA that is needed to
change or clarify the terms, conditions or provisions ora grant contract, but does not change the
scope, amount or purpose of the grant.
An administrative amendment is used to modify a grant contract for such purposes as to comply with
changes required by FTA law, to_'change the year or type of funds obligated for a grant, to transfer
equipment from one grantee to another or to reflect a change in the grantee's name - all programs.
FULL GRANT AMENDMENT - A change in the scope of a grant or the Federal .participation. A full
grant amendment requires a revised grant agreement and budget, and may require obligation of
additional funds, reduction of the amount of funds obligated or deobligation and obligation of funds.
The following are-considered scope changes for planning, capital and operating grants:
A transfer of funds within an approved budget for planning grants that cumulatively exceeds 30
percent of the budget approved most recently by FTA;
A.change that exceeds the greater of two units or 20 percent of the units to.be purchased or
constructed under an approved grant scope;
..A change to add a project scope, if not previously included as a contingency proj .ect in an
approved TIP/STIP, or to add or delete a project scope which changes the grant scope;
Any other changes that alter the scope of a grant.
Page 2 of Exhibit I-1
FTA C 5010.1B
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Page I45
OVERVIEW OF THE GRANT MANAGEMENT SEQUENCE
One Time Events
Notice of grant approval.
Sign grant agreement.
Set up ECHO procedures
if needed.
Periodic or
Recurring Events
S~bmit Annual Certifications
and Assurances which will
assure grantee controls
are in place.
Request ECHO
or requisition payments.
.-Submit reports as required,
milestone/progress; financial;
and DBE, other special reports.
Update excess Property Ufi]~v~tion Plan.
Possible FTA on-site insp~'tions.
Prepare triennial inventories.
Review third party contracts.
Events that May Occur
Budget revision.
Grant amendments.
Property disposition.
Control sales and
insurance proceeds.
...
.Single annual audit occurs.
Audit of third-party
FTA triennial review occurs.
Grant suspension possible.
Grant termination possible.
Submit final reports..
trmal financial settlement.
Grant close-out occurs.
Exhibit 1-2
I
FTA C 5010. lB
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Page II- 1
INTERNAL CONTROLS.
so
CHAPTER II
FINANCIAL MANAGEMENT
bo
General. FTA payments to a grantee are made in cash to meet its share of eligible
expenses under a grant.
Acceptance of an FTA grant obligates the grantee to use funds it receives as specified in
the grant agreement. This creates a vested intere~ of the United States in unused grant
balances, any improperly applied funds, and property or facilities purchased or otherwise
acquired under the grant-whether funds are received by the grantee as an advance or by
reimbursement.
Grantees and subgrantees are responsible for establishing and maintaining adequate
internal control over all their function%that govern implementation of a grant.
For proper management of grants, these controls mu~t be used by each grantee in all its
operating, accounting, financial and administrative systems. To assure proper
accountability for grant funds, ihternal controls must be integral with the management
systems used by the grantee to regulate and guide it operations.
Definitions.
(1) Internal Controls. The organization plan, methods and procedures adopted by the
grantee to insure that resources are. properly used and safeguarded, and that
necessary informatioh is provided to grantee and FTA managers, specifically:
(2)
Accounting System. The formal books, accounts., supporting records, documents,
papers, reports and governing procedures used to aCCOunt for the resources and
operations of an organization.
Objectives. Resources must be used in accordance with applicable State, local, and
Federal laws, regulations and policies, and the grant contract. Resources must be
safeguarded against waste, loss, and misuse. Reliable data on resource use and
safeguards must be accumulated, maintained and fairly disclosed in reports to grantee
management and FTA. A proper system of internal controls will help the grantee to:
(1) Operate efficiently and economically;
(2) Keep obligations and costs within the limits of authorizations and legal
requirements, consistent with accomplishing the purpose of the grant;
Page II-2
FTA C 5010.1B
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(3) Safeguard assets against waste, loss and misuse;
(4) Ensure timely collection and proper accounting of the grantee's operating and other
revenues; and
(5) Assure accuracy and reliability in financial, statistical and other reports.
Necessary Elements. Certain elements are necessary to achieve these objectives and meet
the standards discussed later in this chapter. Each facilitates the grantee's use of internal
controls. These are:
(1) Reasonable assurance that internal controls are in fact an integral part' of the
grantee's management systems;
(2) Existence ora positive and supportive attitude among grantee managers and
employees; ·
(3) Assignment of internal control functions to competent and experienced employees;
(4) Identification of specific internal control objectives to assure that needs are
identified and that valid controls are planned and implemented;
(5) Adoption of internal control policies, plans and procedures that reasonably assure
then' effectiveness, such as organizational separation of duties and physical
arrangements such as locks and fire alarms;, and
(6) The grantee should conduct ~' regular program of testing to identify vulnerabilifies
in the internal control system.
Standards of Internal'Control and Audit Resolutions.
(1) General.
Grantee management policies that govern grant implementation must be
dearly stated, understood throughout the organization and conform to
applicable legislative and administrative requirements.
(b) The grantee's formal organization structure must clearly define, assign and
delegate appropriate authority for all duties.
(c)
Responsibility for duties and functions must be iegregated within the
orgavlvzfion to assure that adequate internal checks and balances exist.
Cn-antees should pay particular attention to authorization, performance,
recording, inventory control and review functions to reduce the opportunity
for unauthorized or fraudulent acts.
FFA C 5010. lB
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Page II-3
(2)
(d) A system for organizational planning should exist to determine financial,
property and personnel resource needs.
(e)
Written operating procedures should be simply stated, yet meet the grantee's
operating, legal and regulatory requirements. In developing its procedures,
the grantee should consider such factors as feasibility, cost, risk of loss or
error, and availability of suitable personnel. Other important considerations
are the prevention of illegal or unauthorized transactions or acts.
(0 The grantee's information system must reliably provide needed operating and
financial data for decision making and performance review.
(g) Proper supervision must be provided and performance must be subject to
review of an effective internal audit program.
All personnel must be properly qualified for their assigned responsibilities,
duties and functions. Education, training, experience, competence and
integrity should be considered in assigning work. All must be held fully
accountable for the proper' discharge oftlieir assignments.
Expenditures must be controlled so that construction, equipment, goods and
services are acquired at least cost and received as contracted for (as to
quality, quantity, prices and time of delivery).
Authorizations for expenditures must conform to applicable statutes,
regulations and policies.
0)
All real property, equipment, expendables and fund~ must be safeguarded to
prevent misuse, misappropriation, waste or unwarranted deterioration or
destruction.
Financial Management Systems. lVfmimum requirements cfa grimtee's financial
management system are contained in the Common Rule, 49 CFR part 18.20 Co).
Each grantee and subgrantee must establish and maintain an adequate financial
management system that provides for:
(a) Accumulation and reporting of accurate, current and complete financial
information for each grant;
Co)
Records that identify the source and application of funds for grant supported
activities. These must include information about Federal awards and
authorizations, obligations, unobligated balances, assets, liabilities, outlays and
income;
Page H-4
FTA C 5010. IB
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O)
(4)
(d)
Control and accountability for all funds, property and other assets, including
safeguards against unauthorized use;
Comparability of actual outlays with budgeted amounts for each grant-funded
activity. Where appropriate, unit cost information should be provided for
productivity comparisons;
Procedures that assure the shortest elapsed time between U.S. Treasury
advances and grantee disbursements. Cash received from FTA must be
disbursed within three calendar days. ff not disbursed within three days, cash
becomes excess funds and must be returned to FTPc Grantees should refer to
OMB Circular A-87, revised, "Cost Principles for State and Local
Governments," for more specifics and possible exceptions. Primary grantees
must conform to equivalent standards of timing and amount in transferring
funds .to secondary grantees;
Procedures for determining reasonableness, eligibility and proper allocation of
costs as ?equired by OMB Circular
(g) Accounting records that are supported by source documentation; and
(h) Procedures that assure timely and appropriate resolution of audit findings and
recommendations (see paragraph 6d of this chapter).
Accounting Systems.
standards:
Grantees and subgrantees must meet these accounting system
Grantee accounting systems must be complete and reliable:- They must
embrace and hccurately represent the status of all funds, property, assets and
liabilities, obligations, receipts and revenues, expenditures, disbursements and
costs. Accounting records appropriately in61ude financial data and
quantitative data where the latter are necessary for planning, control or other
management purposes.
Financial transactions must be adequately supported in the grantee's files with
pertinent documents available for audit. All transactions must be recorded
when made, in a way that readily permits them to be traced from originating
documents through summary records and financial reports.
FTA Review of Grantee's Internal Controls. DOT auditors or designated Financial
Management Oversight representatives may visit a grantee after project approval to
review its system of internal controls. On-site surveys are usually limited to new
grantees of major grants or those who have encountered difficulties in administering
previous FTA grants. The review will address grantee compliance with the
foregoing internal and financial control standards.
· FTAC 5010. lB
9-7-95
Pagc II-5
FTA will provide the grantee a copy of the review and discuss action by the grantee
to correct any reported deficiencies.
COST ALLOCATION PLAN/INDIRECT COST PROPOSAL.
ao
General. Under federally funded grant programs, recipients may incur costs of both a
direct and indirect nature. A cost allocation plan is required if a grantee desires to charge
indirect administrative costs related to the grant program to an FTA grant.
Definitions. Direct costs are those that can be identified specifically with a particular
project. These costs may be charged directly to a grant project.
Indirect costs are those that are:
" (1) Incurred for a common or joint purpose benefiting more than one cost objective;
and
(2) Not readily assignable to the cost objectives specifically benefited, without effort
disproportionate to the results achieved.
The term *indirect costs' applies to costs of this type originating in each of the grantee's
operating or organizational units' (hereinafter referred to as unit or department), as well as
those incurred by others in supplying goods, services, and facilities to each unit.
Examples of indirect costs are operation and maintenance of buildings and expenses of
unit heads and their immediate staff. Principles and standards for determining costs
applicable to grants and contracts with grantees or other State or local, agencies are
presented in OMB Circular A-$7; and the appropriate Department of Health and Human
Services (DHHS) publications.
Types of Plans. There are two types of cost allocation plans presented in OMB Circular
A-$7. The first plan covers distribution of costs of support services provided to local
government agencies and is referred to as a consolidated, local government-wide cost
allocation plan. The second plan covers distribution of costs within an individual grantee
or contractor agency, including costs of services allocated to it under the consolidated
local government-wide cost allocation plan, for all work performed by that agency. This
second type of plan is commonly referred to as a central service cost allocation plan or
an indirect cost proposal. DHHS brochure, OASC-10, contains questions and answers
regarding cost' allocation plans and sample formats for both consolidated and central
service cost allocations plans. This brochure is available from FTA.
Preparation of Plan. Grantees who intend to seek FTA reimbursement for indirect costs
must prepare a cost allocation plan or indirect cost rate proposal for concurrence before
incurring and charging these costs to an FTA project:
Pa§c II-6
FTA C 5010. lB
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eo
(1) Purpose. The purpose of the plan is to guide the grantee's allocation of costs,
assuring that:
(a) All activities of local government departments or State agencies have been
considered;
Co) Distribution of indirect costs is based on a method(s) reasonably indicative of
the amount of services provides;
(c) Services provided are necessary for successful conduct of Federal programs;
(d) Level of costs incurred are reasonable;
(e) Costs of State or local centralized government services may be charged in
conformance with government-wide cost allocations plans; and
(0 Costs claimed are allowable in accordance with OMB Circular A-87, as
applicable.
(2) Steps in Plan Development. Four Steps are basic in preparing a coSt allocation plan:
(a) Identifying costs of each type of service to be claimed;
Co) Determining the method for allocating each type of service cost to users;
(c) Mathema~eally allocating these costs to users; and
(d) Summa~.'~irtg amounts allocated if using a single, f..ormal, comprehensive local
government-wide plan.
Once FTA or an.other cognizant Federal agency has accepted a grantee's coSt
allocation plan or indirect cost rate proposal, the grantee muSt update it annually.
The update should be retained and made available for review at the time of the
grantee's organization-wide audit.
Cognizant Federal Agency. The cost allocation planfmdirect cost rate proposal should be
submitted to the "cognizant" or "lead" Federal agency in the following cases:
(1) The grantee is working on its first assistance project or has not previously had a
cost allocation planfmdirect cost rate proposal reviewed and accepted;
(2) The grantee has made a change in its accounting system, thereby affecting the
previously approved coSt allocation plan/indirect cost rate and its basis of
application; or
FTA C 5010. lB
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Page H-7
go
(3) The grantee's proposed cost allocation plan/indirect cost rate exceeds the amounts
and rated approved for the previous year(s) by more than 10 percent.
In other instances, the grantee should forego submission of its annual cost location
plan/indirect cost rate proposal directly to the cognizant agency, retaining the documents
for future review. In accordance with OMB Circular A-128, this review will be
accomplished at the time of the organization-wide audit of the grantee.
Cognizance is generally assigned to the Federal agency having the greatest dollar
involvement with a grantee organization within a given State or locality. (OMB has
assigned cognizant audit agencies for State and local Governments - Federal Register,
If DOT is the cognizant agency, cost allocation plans should be sent to FTA for DOT
review unless the Federal Highway Administration (FHWA) is the primary awarding
agency. In that case, the plans should be sent to FHWA with a copy to FTA.
Costs Supported. All costs in the plan must be supported by formal accounting records
to substantiate the propriety of eventual charges. The allocation plan of the grantee
should cover all applicable costs. It should also cover costs allocated under plans of
other agencies or organizational units which are to be included in the costs,of other
federally sponsored programs. To the extent feasible, cost allocation plans of all agencies
rending assistance to the grantee should be presented in a single document.
The cost allocation plan should contain but need not be limited to the following:
O)
The nature and extent of services provided and then' relevance to federally
sponsored programs;
(2) -Items of expense to be included;
O) Methods to be used in distributing cost; and
(4) Appropriate civil rights data.
Plan Content. The cost allocation plan should contain, but not necessarily be limited to,
the following:
(1) Individual position or group classifications for direct staff services;
(2) The annual salary rate or salary range for each position classification, with
estimated average salary charged to the project for each rate;
Page
FTA C 5010. lB
%7-95
(3)
The estimated period of service as provided by each position classification,
estimates percentage of time each position will devote to the project, and the
estimated cost of each;
(4) The nature and extent of services provided by each position classification;
(5) Details of other direct charges including the nature of charges and estimated costs;
and
(6)
All categories of indirect costs, proposed methods, and the basis for allocating them-
to the project, total indirect costs, and the estimated amount to be charged to the
project.
It is important to note that although personnel services should be estimated on a
percentage-of-time basis for planning purposes, only actual time charged to the project as
supported by adequate time sheets will be eligible for reimbursement`
ho
Plan Approval. Whenever the cognizant agency gives prior approval to a
government-wide cost allocation plan or indirect cost proposal, such approval is
formalized, distributed to all interested Federal agencies, and applicable to aH Federal
grants in accordance with OMB Circular A-$7.
COST STANDARDS.
General. Grantees must follow the guidelines contained in OMB Circular A-87 (State
and local governments), in determining whether project costs are allowable or
unallowable. Project costs must specifically relate to the purpose of the grant contract
and the latest approved project budget. Care must be exercised when-incurring costs to
ensure that all expenditures meet the criteria of eligible costs. Failure to exercise proper
discretion may result in expenditures for which use of project funds cannot be authorized.
b. Allowable Costs.
O)
General. The criteria that govern the eligibility of project costs are discussed
below. These criteria are drawn fi-om OMB Circular A-87. To be allowable under a
grant program, costs .must:
(a)
Be necessary and reasonable for proper and efficient administration of the
grant program, be allowable under theprinciples contained in the OMB
circulars and except as specifically provided in this circular, not be general
expenses required to carry out the overall responsibilities of State or local
governments;
Co) Be authorized or not prohibited under State or local laws or regulations;
FTA C 5010. lB
9-7-95
Page II-9
(c) Conform to any limitation or exclusions set forth in the principles, Federal
laws, or other governing limitations as to types or amounts of cost items;
Be consistent with policies, regulations, and procedures that apply uniformly
to both federally assisted and other activities of the unit of government of
which recipient is a part;
(e) Be treated consistently through application of generally accepted accounting
principles appropriate to the circumstances;
(0 Not be allowable or included as a cost of any other federally financed program
in either current or prior periods;
(g) Be net of all applicable credits;
Not be incurred prior to grant award unless specifically provided for in a
Letter of No Prejudice or equivalent document approved by FTA, or in the
'p'~'eaward'authority as described in the Federal Register listing of the Annual
Apportionments;
Direct costs are those that can be identified specifically with a particular cost
objective; and
Indirect costs are those incurred for a common or joint purpose benefiting
more than one cost obj. ecfi've, and not readily assignable to the cost objectives
specifically benefited without effort disproportionate to the results achieved.
The term ,indirect costs" as used here, applies to.costs of this type originating
in the grantee department, as well as those incurred by other depamnents in
supplyihg goods, services, and facilities, to the grantee department. For more
information on direct and indirect costs, please refer to OMB Circular A-87.
Program Specifics. The following three provisions de.wribe allowable costs for
§ 5309 Capital Grant and Loan projects, 35307 operating assistance projects,
§ :5303 and § $307 technical study projects. Determination of allowability in each
c~e should be based on treatment of standards provided for similar or related items
of costs. If any problems arise, contact the appropriate FTA regional or
Headquarters office.
Capital Grant and Loan Projects. Grantees mu~t follow the principles of A-87
in determining allowable costs under capital projects, subject to § 5323(h),
which states, "No grant or loan fimds shall be used for payment of ordinary
governmental or non-project operating expenses."
Page II- 10
FTA C 5010. lB
9-7-95
(b)
Operating Assistance Grants. Information on allowable costs for operating
assistance grants can be .found in FTA Circular 9030. IA, "Section 9 Formula
Grant Application Instructions."
(c) Technical Study Grants. Grantees are to follow the principles of A-87 in
determining allowable costs under § 5303 and § 5307 technical study grants.
PROGRAM INCOME.
General. FTA's program income policies are governed by 49 CFR, Part 18, the Common
Rule, and may differ from OMB Circular A-102 for State and Loe.~l Governments. The
following provisions apply to ail FTA planning and capital grant~ governed by this
circular except for approved grants that contain specific terms and conditions to the
contrary. Additional reference is made in Chapter I, paragraph 15 of this circular.
Definition. Program income is revenue generated directly or indirectly from grant
supported activities (i.e., income generated by grant funds alter they have been applied to
authorized grant purposes). Program income is a form of mass transit revenue, but
excludes sales proceeds, interest earned on advances of Federal funds and revenues
generated by activities that are not grant supported. Examples of program income
include fare box revenues and income from the sale or lease of. air rights or from other
leases; advertising; concessions; and the sale of planning reports and maps.
Co
Requirement. Grantees may retain program income so long as it is used only for mass
transit purposes. These may include planning, capital or operating expenses. Program
income may not be used to refund or reduce the local share of the grant from which it
was earned, but may be used for oder'transit grants.
Grantees must aCX'°unt for:program income in the'tr accounting system, which is subject
to audit. The accounting system must be capable of identifying program income and the
purpose for which it was used.
FINANCIAL REPORTING RF_,OUIREMENTS.
General. FTA uses the Financiai Status Report to monitor project funds either through
the electronic grant making system or in certain circumstances, through use of SF-269A.
Note that payment can be withheld for failure to submit either financial or narrative
reports in a timely manner.
bo
Disclosure Criteria. The following criteria are basic to full disclosure in financial reports
by recipients:
(1)
All essential financial facts relating to the scope and purpose of each financial report
and applicable reporting period should be completely and clearly displayed in the
reports.
FTA C 5010. IB
9-7-95
Page II-1 1
Reported financial data should be accurate and timely. The requirement for
accara~ does no{ rule out inclusion of reasonable estimates when precise
measurement is impractical, uneconomical, unnecessary, or conducive to delay.
(3)
(4)
Financial reports should be based on the required supporting documentation
maintained Under an adequate accounting system that produces information which
objectively discloses financial aspects of events or transactions.
Financial data reported should be derived from accounts that are maintained on a
consistent, periodic basis;' material changes in accounting policies or methods and
their effect must be clearly explained.
(5) Reporting terminology used in financial reports to FTA should be consistent with
receipt and expense classifications included in the latest approved project budget.
c. Financial Status Report Electronically throughEGM&M (or SF-269A).
(1)
Quarterly finandal status reporting is required for all capital grants covered under this
circular, as well as combination capital/operating grants. These quarterly reports are
to be submitted electronically through the Electronic Grant Making & Management
System (EGM&M), unless the grantee is limited in this capability. If so restricted the
grantee may submit these reports with original signature on SF-269A no later than 30
days afl, er the end of the calendar quarter. A sample copy and instructions for the
SF-269A are included at the end of this chapter as Exhibit II-1.
(2)
These reports are to be submitted for all non-construction and construction projects
on an accnud basis.
The reports should be prepared by activity line item code, task or project as
appropriate. Manuals for EGM&M procedures are available from the FTA regional
office. Financial Status Reports for Urbanized Area Formula Programs (§ 5307)
grants should show the financial activities of the TIP or STIP as a whole, including
any operating assistance.
General. OMB Circular A-128 implements the provisions of the "Single Audit Act of
1984," establishing the single annual audit requirement for State/local governments and
other public bodies that receive Federal assistance.
b. Purpose. The purpose of the single annual audit report is to determine whether the
Page I1-12
FTA C 5010. lB
9-7-95
do
(2)
Has prepared financial statements that fairly present its financial position and the
results of its financial position and the results of its financial operations in
accordance with generally accepted accounting principles;
Has in place internal accounting and other control systems to provide reasonable
assurance that it is managing Federal financial assistance programs in compliance
with applicable laws and regulations; and
Has complied-with laws and regulations that may have material effect on its
financial statements and on each of its major Federal assistance programs (as
defined according to the sliding scale discussed in A-128).
The annual single audit is to be performed by an independent auditor who is required to
determine and report on whether the grantee has internal control systems that reasonably
assure it is managing Federal assistance programs in compliance with applicable laws
and regulations. 'Review ora proposed contract for the services of'an independent
auditor can be arranged through FTA with the grantee's cognizant Federal auditor.
OMB has assigned a cognizant Federal audit who; generally represents the agency from
'which the recipient receives the preponderance of its Federal assistance. OMB has
published a list of"Cognizant Agency Assignments for Cost Allocation Under OMB
Circular A-87 and for Single Audit under OMB Circular A-128" in the Federal Register,
Vol.$1, No. 3, dated 1-6-86. The "Federal Cognizant Agency Audit Organization
Guidelines" prepared by theSingle Audit Committee of'the President's Council on
Integrity and Efficiency, 10-85, may be a useful guide to grantees in arranging and
monitoring their third party contract audits.
Finally, grantees now are required to determine whether certain subgrantees spend
Federal assistance funds they receive in accordance with applicable laws and regulations.
Audit judgment eoncernihg the grantee's determination is left to the independent auditor.
Requirement. FTA grantees are required to obtain the services of an independent
auditor to conduct a single audit each year in conformance with OMB Circular A-128,
except where a State constitution or statute provides for a single biennial audit.
Inasmuch as grantees are required to comply with all provisions of this OMB circular, it
is incorporated herein by reference.
Two copies of each audit report must be provided to FTA and one copy to the DOT
regional office of the Inspector General. The annual single audit will encompass and
meet the needs of all Federal departments and agencies, except where Federal law
provides otherwise.
Resolution of Audit Findings. Grantees and subgrantees are responsible for prompt
resolution of all audit findings and recommendations. This responsibility requires that
the grantee:
' FTA C 5010. lB
9-7-95
Page H-13
(1) Promptly evaluate the report;
(2) Determine the ~,ppropriate followup actions and establish a date for their
completion; and
(3) Complete all required actions within the established period of time.
Deficiencies or opportunities for improvement identified in an audit must be resolved by
the grantee. The resolution of audits begins with FTA's report to the grantee and
continues until the grantee corrects identified deficiently, implements needed
improvements or demonstrates that the findings or recommendations are not valid or do
not warrant management action.
The audit is not resolved until FTA concurs in the documentation of steps taken to
implement any needed corrective actions. The status of outstanding audit findings and
recommendations' should be monitored and reported by the grantee in quarterly progress
reports and, where appropriate, significant events reported.
THIRD PARTY CONTRACT AUDITS.
Responsibility for Audit. Grantees must ensure that grant assisted activities are carried
out effectively and efficiently. Audit of third party contracts is an important tool
available to grantees in meeting this obligation. A third party audit may be initiated by
the grantee as part of its own management process. For example, consultant,
engineering or service contracts commonly include provisional overhead (Burden) and
General & Administrative (G & A) rates which need to be.verified by audit for the
applicable contract periods. Contract audits may also be requested by .FI'A to ascertain
that payments were made in Conformance with the terms of the contra, ct, or for other
purposes. Finally, 'audit of a.third party contract may be recohunended by the finn
conducting the grantee's single annual audit.
Third party contract audits must be conducted by independent auditors, whether within
the grantee's organization (but independent of the grant management office) or
contracted with an outside audit agency or private finn.
Outside Audit Services. Many FTA grantees assign proposal evaluation and contract
monitoring duties to the'u' own auditors or financial management personnel. However,
some do not have qualified personnel within their organization to conduct this kind of
audit review. They must obtain these services elsewhere. Two available sources for
audit services are qualified independent accounting firms and contract auditors from
agencies and departments of the Federal Government. Private firms usually are able to
initiate the audit sooner after the grantee's request than a Federal agency can, but in
some cases, a continuing Federal audit function is maintained at contractor locations and
can be used for audit of FTA grantees' third party contracts. In other cases, an audit by
a Federal agency may best serve the overall government interest
Page II- 14
FTA C 5010. lB
9-7-95
Costs. Costs of third party contract audit and proposal evaluation are eligible for
reimbursement by FTA as a direct or indirect charge in accordance with OMB Circular
A-87. FTA recommends that grantees seek guidance bom the cognizant Federal auditor
before negotiating audit contract agreements. (Cognizant Federal audit is earlier
described under Annual Audit, paragraph 6d of this chapter).
Contracting for Audit Services. In contracting with a private firm for an independent
audit, grantees should follow standard procedures for third party contracts. Grantee
should.direct requests for Federal audit assistance to FTA.
F~A C 5010
9-7-95
I. Fe0eral Agency and OrgamzaKN~aJ Element
to Whch Report ~s Submntecl
FINANCIAL STATUS REPORT
(Short Form/
(FOllOw mStruchOn$ o~ ~e Dack)
2. Federal Grant o~ Otne~ ~ N~r A~n~
By F~ A~
,3. Rec~ent Orgamza~ (Name and complete ~ n:duding ZIP cocM)
Page II-15
OMB Apoeoval
NO.
O348-O039
P&3e of
4. Eml~qlt I(:l~l;fic. aoon Nu~
'5. I~.,Acx:x:xJ~ NumC)er or Identifying NumbM 6. Fin,at Rei:x~t
O Y~ O No
7. 8a.~s
OCa~ OA~:~
a. Fundk~Grant Penocl (See instruceo~s;
From: (Momh. Day. Year)
,, Tota/ou~ays
IT o: (Month, Day. Year)
9. Pan~ Cew-ecf tw e'~ stepon
I
Front (MO~'~ Day. Year) I
!
I II
Prev~u.~ ThLI
R__._,~jcnea_ Period
To:
(Mo.~. Day. Ye&'l
Itl
g. Total Fec~eral ih&1(Sum of lines c &'~i f)
L U~batanceofFede~lur~ (Unehm~luslineg)
& Ty~e of P~e (Piece 'X' in appropriate tx)x)
0 PrCWU~MI C] Prec~v.,.,,dned
12. Remarks: AttaCh any ex4Nana#ons deemed necessary Or informs#on required by Federal sponsoring agency ~n compliance w~th gOvern,nO
13. Cect~c~oon: I certify to the I~$t of mT knowiedfe end belleFtb.~( ~ report |l co..r~ct ~Ad .complete mid thst -ti outh)'l sad
unliquidAMd obiiftdons &re rot tho purposes H~ forth in t~e twar= Gocumenu.
Typed or Pflmed Nine and T'~Se
PTe~nous Ed(t~o~l ~ot UMW
Stiff, ltd FMm 260A (REV
'Page II-16
FTAC 5010.lB
9-7-95
FINANCIAL STATUS REPORT
(Short Form)
Please type or print legibly. The following general instructions explain how to use the form itself. You may need
additional information to complete certain items correctly, or to decide whether a specific item is applicable to this
award. Usually, such information will be found in the Federal agency's grant regulations or in the terms and
conditions of the award. You may also contact the Federal agency directly.
Item
Entry Item
1, 2 and 3. Self-explanatory.
4. Enter the employer identification number
assigned by the U.S. Internal Revenue Service.
5. Space reserved for an account number or other
identifying number assigned by the recipient.
6.Check yes only If this is the last report for the
period shown in item 8.
7. Self-explanatory.
10b.
8. Unless you have received other instructions from
the awarding agency, enter the beginning and 10c.
__ ending dates of the current funding period. If this
10d.
is a multi-year program, the Federal agency
might require cumulative reporting through
consecutive funding periods, In that case, enter
the be~nning and ending dates of :the grant
period, .and in the rest of these instructions.
substitute the term "grant period" for."t'unding
period."
10. The purpose ofcolunms, I, I1 and IH is to show the
effect .of this reporting period's transactions on
cumulative financial status. The i, mounts
entered in column I will normally be the same as 10e,
those in column III of the previous report in the 1 la.
same funding per/od. If this is the i'u-st or only
report of the funding period, leave columns I and tlb.
II blank. If you need to adjust amounts entered
on previous reports, footnote the column l entry
on this report and attach an explanation. 1 lc.
10a. Enter total progra-, v_.~tlays less any rebates,
refimds, or other credits. For reports prepared on lid.
a cash basis, outlays are the sum of actual cash
disbursements for direct costs for goods and
lie.
services, the amount of indirect expense charged,
"-- the value of in-kind contributions applied, and Note:
1 the amount of cash advances and payments made
;~ to sub-recipients. For reports prepared on an
accrual basis, outlays are the sum of actual cash
disbursements for direct charges for goods and
services, the amount of indirect expense
incurred, the value of in.kind contributions
Entry
contributions applied, and the net increase or
decrease in the amounts owed by the recipient for
goods and other property received, for services
pe. rformed by employees, contractors,
subgrantees and other-payees, and other
amounts becoming owed under programs for
which no current services or performances are
required, such as annuities, insurance claims,
and other benefit payments.
Self-explanatory.
Sell-explanatory.
Enter the amount of unliquidated obligations,
including unliquidated obligations to s~bgran-
tees and contractors.
Unliquidated obligations on a cash basis are
obligations incurred, but not yet paid. On an
accrual basis, they are obligations incurred, but
for which an outlay has not yet been recorded.
~D~_not include any amounts on line 10d that have
been included on lines 10a, b or c.
On the final report, line 10d must be zero.
f, g, h and i. Self-explanatory.
Enter the indirect cost rate in effect during the
Enter the amount, of the base against which the
rate was applied.
Enter the total amount of indirect costs charged
during the report period.
Enter the Federal share of the amount in lid.
If more than one rate was in effect during the
period shown in item 8, attach a schedule
showing the bases against which the different
rates were applied, the respective rates, the
calendar periods they were in effect, amounts
of indirect expense charged to the project, and
the Federal share of indirect expense charged
to the project to date.
FTA C 5010. IB
9-7-95
Page IIIol
1. GENERAL.
PAYMENT PROCEDURES
Payment Methods. FTA makes all payments by the Automated Cleating House
(ACH) method of payment, regardless of the money amount involved. The cash
payments to grantees are made using two ACH methodS:· .
(!) Electronio Cleating House OPeration (ECHO) Payment; and
(2) Requisition Payment.
Under these ACH methods, FTA provides payment to grantees by electronicallywiring
funds to the recipient's financial institution.
The Department of Treasury Circular 1075 (31 CFR, Part 205, dated 7-1-94)
governs payment to recipients for financing operations under Federal grant and other
programs. These regulations require that payment to a grantee be limited to the
minimum amounts needed and timed so as to be in aooord only with the aotual,
immediate cash requ'u'ements of the grantee in carrying out the approved project. For
further/nformation regarding cash management procedures, refer to the FTA ECHO
System Users Manual for Grantees.
Disallowed Costs. In determining the amount of Federal assistance FTA will provide,
FTA will exclude:
(1) Any project costs incurred by the grantee prior to the date of either the approved
grant or the approved project budget (whichever is earl/er), unless otherwise
permitted by Federal law or regulation or unless an authorized representative of
FTA states in writing to the contrary, and
(2)
Any costs attributable to goods or services received under a contract or other
arrangement that is required to be, but has not been concurred in or approved in
writing by FI'A.'
The grantee agrees that reimbursement of any cost in accordance with indicated
payment methods for an approved grant does not constitute a final FTA decision about
the allowability of that cost and does not constitute a waiver of any violation by the
grantee of the terms of approved grant. The grantee understands that FTA will not
make a final determination about allowability until an audit of the project has been
conducted, If the government determines that the grantee is' not entitled to receive any
part of the Federal funds requested, the government will notify the grantee stating the
Page III-2
FTA C 5010. lB
9-7-95
do
reasons therefore. Project closeout will not alter the recipient's obligation to return
any funds due to FTA as a result of later refunds, corrections, or other transactions.
Nor will project closeout alter FTA's right to disallow costs and recover funds on the
basis cfa later audit or other review. Unless prohibited by law, FTA may offset any
Federal assistance funds to be made available under this project necessary to satisfy
any outstanding monetary claims that FTA may have against the grantee. Exceptions
pertaining to disallowed costs are set forth in FTA directives or in other written
Federal guidance.
Requirement to Remit Interest. The Grantee agrees that:
(1)
Any interest earned by the grantee on Federal funds must be remitted to FTA,
except as provided by 31 U.S.C. § 6503, or the Indian Self-Determination Act,
23 U.S.C. § 450, and any regulations thereunder that may be issued by the U.S.
Secretary of the Treasury.
Irrespective of whether the grantee has deposited funds in an interest-bearing
account, the grantee agrees to pay to FTA interest on any FTA funds that the
grantee has drawn down and failed to spend for project activities. Unless waived
by FTA, interest will be calculated'at rates imposed by the Secretary of the
Treasury beginning on the fourth day after the funds were deposited in the
grantee's bank or other financial depository. This requirement does not apply to
any grantee that is a State, State Instrumentality, or Indian Tribal Government.
(3) Upon notice by the FTA to the grantee of specific amounts due FTA, the
grantee agrees to promptly remit any excess payment of amounts or disallowed
costs to FTA, including any interest.due thereon.
Bond Interest. To the'extent permitted by FTA, bond interest is an allowable cost.
De-obligation of Funds. FTA reserves-the right to de-obligate unspent Federal funds
prior to project cioseout.
Right of FTA to Terminate. The grantee agrees that, upon written notice, FTA may
suspend or terminate ali or part of the financial assistance provided herein if the
grantee is, or has been in violation of the terms of the approved grant, or ifFTA
determines that the purposes of the statute under which the project is authorized
would not be adequately served by continuation of Federal financial assistance for the
project. Any failure to make reasonable progress or other violation of tho approved
grant that significantly endangers substantial performance of the project shall be
deemed to be a breach of the approved grant.
In general, termination of any financial assistance under the approved grant will not
invalidate obligations properly incurred by the grantee and concurred in by the FTA
before the termination date, to the extent those obligations cannot be canceled.
FTA C 5010. lB
9-7-95
Page III-3
However, if FTA determines that the grantee has willfully misused FTA'assistance
funds by failing to make adequate progress, to make-reasonable use of the project real
property, facilities, or equipment, or to honor the terms of the approved grant, FT^
reserves the right to require the grantee to refund the entire amount of Federal funds
provided herein or any lesser amount as may be determined by the FTA.
Expiration of any project time period established for this project, does not, by itself'
constitute an expiration or termination of the approved grant.
Neither the receipt by the grantee of any Federal funds for the project nor the closeout
of Federal financial participation in the project shall constitute a waiver of any claim
that FTA may otherwise have arising outofthe approved grant.
ELECTRONIC CLEARING HOUSE OPERATION (ECHO) PAYMENT METHOD.
Objective. Ii'payment is made under the Electronic Clearinghouse Operation (ECHO),
by means of an ECHO Control Number (ECN), the grantee agrees to comply with the
following ECHO requirements pursuant to Department of the Treasury Circular 1075,
Part 205, 'Withdrawal of Cash from the Treasury for Advances Under Federal Grants
and Other Programs,* and as established by the 'Guidelines for Disbursements' set
forth in the FTA ECHO System Users Manual for Grantees.
b. Policy.
(1)
The grantee may initiate cash drawdowns only when actually needed for
immediate disbursement required for poject purposes~. A. ccordingly, the grantee
agrees to expend all Federal funds obtained under the project for project
purposes no later than three (3) days after receipt of those funds.
Failure to expend those Federal funds, within three (3) days of their receipt or to
return the funds to FTA within a reasonable period, or an unwillingness or
inability On the recipient's part to establish procedures that will minimize the time
elapsing between cash advances and the disbursement shall cause FTA to revoke
or temporarily suspend the grantee's ECHO Control Number and the grantee's
access to the ECHO System. In addition, failure to honor these requirements
may result in other remedies authorized by Federal law or regulations.
The grantee agrees to report its cash disbursements and balances in a timely
manner as required by FTA through completion of the Status of Federal Funds
Report when requested.
(3) The grantee agrees to provide for control and accountability for all Project funds
consistent with Federal requirements and procedures for use of ECHO system.
Page llI-4
(4)
(s)
(6)
FTA C 5010. lB
9-7-95
The grantee may not draw down funds for a project in an amount ti~at would
exceed the sum obligated by FTA or the current available balance for that
project.
The grantee shall limit drawdowns to eligible project costs and to refrain from
drawing down Federal funds before they are needed for disbursement.
The grantee agrees to all applicable requirements in accordance with paragraphs
2b(1) through (,5) on its sub-recipients.
(7)
The grantee must notify the appropriate FTA regional office when. an individual
draw down will exceed $50 million. (In mm, the FTA Headquaffers AcaT, ounting
Office should be notified by regional office, because FTA must provide Treasury
with 48 hours prior notification to draw down funds exceeding $50 million.)
Procedures to Apply for Electronic Clearing House Operation. The following
reference is a brief outline of the procedures under the ECHO method of
reimbursement. (The Treasury Financial Communications System (TFC$) - Letter of
Credit (LOC) method previously used was phased out by the Department of Treasury
on 12-31-90.)
(1)
FTA determines that a grantee should be funded under the ECHO method and
sends the grantee an ECHO Systems Users Manual for Grantees which includes
the applicable information and forms which are required to establish an ECN.
~Th._e responsible FTA regional office must approve aH projects under the ECHO
method before an ECN can be authorized for the grantee organization. This also
applies to existing atffdve projects that are currently being paid via the requisition
method. :
O)
The grantee completes and returns to FTA an original Signatory Authorization
and Certification letter (see Exhibit ITl-l) and a Payment Information Form (see
Exhibit m-2).
(4) FTA reviews the completed forms and when approved, initiates the process to
establish the grantee on the ECHO system.
(5) FTA furnishes the grantee a notification for establishment of an ECN and
provides the password for ECHO access by registered mail. (See Exhibit HI-3.)
(6)
Following the effective date of the ECN, the grantee may transmit an ECHO
Drawdown request message (see Exhibit III-4) to FTA in order to receive funds
necessary to meet immediate cash disbursement needs.
FTA C 5010. lB
9-7-95
Page III-5
de
(7)
The ECHO System processes the grantee's message. If no problems are noted
by FTA, the amount requested or a partial amount is transmitted to Treasury via
the Electronic Certification System (ECS).
(8) Treasury electronically transfers the payment to the grantee's financial institution
within 24 hours.
(9)
In the event a grantee receiving funds by an ECN demonstrates an unwillingness
or inability to-establish procedures to minimize the time elapsing between the
withdrawal of funds under the ECN and the disbursement of such funds, FTA
will cancel the ECN to the extent of the undisbursed balance not obligated in
good faith in execution ofthe Federal project as authorized, and require the
grantee to finance its operations with its own working capital.
(10)
FTA encourages issuance ora single consolidated ECN to cover all payments to
agrantee for grant programs covered by this circular. If the grantee or FTA
administrative needs require more than one ECN, FTA must approve issuance of
another. In no instance may one project be included on more than one ECN.
An 'ECHO Systems Users Manual for Grantees" is also available from FTA that
details ECHO procedures for Grantees.
Grantee Organization Requirements.
(1) Signatory Authorization and Certification. The grantee organization must
submit a Signatory Authorization and Certification Letter containing the
signature of the Authorizing Official(s), signature of the head of the organization
or designee, contact person and the official stamp/seal of the organization.
(2) Payment Information. The grantee organization must complete all information
on the Payment Information Form containing the organization's contact person,
· bank account and muting numbers, and the original signatures of the
organization's authorizing official and bank representative.
(3) Request for Payment on ECHO. The grantee organization must access the
ECHO System each time funds are needed to meet current cash disbursement
needs. The instructions for accessing the ECHO System are included in the FTA
ECHO System Users Manual for Grantees.
(4)
Planning ECHO Withdrawals. The grantee organization must exercise sound
financial judgment and planning to ensure that the requirements for maintaining
minimum cash balances are met.
Pn~e I1'I-6
eo
FTA C 5010. lB
9-7-95
Rejection of Messages. The transmitted message will be edited by ECHO for errors,
deficiencies, or omissions which may necessitate the rejection of all or part of the
request:
(1) The approved grant has not been received in the accounting office which initiates
the authorization to disburse funds.
(2)
The amount requested for a project is greater than the unexpended balance on
that project. If such is the case, onlythe drawdown request for the project will
be rejected. If the message is for one project then the total message is rejected;
'but if the message contains more than one project then only the drawdown for
that project is rejected, not the total message. .'.
0) The breakdown of amounts requested for each project does not sum to the total
amount claimed.
(4) The total amount requested is $50,000,000 or more and at least 48 hours prior
notice was not given.
(5) There are excessive funds in the hands of the grantee organization as determined
by FTA.
(6) A written request has been received fi.om FTA officials to withhold payment for
a reason other than those listed above.
Excessive or Premature Withdrawals. In accordance with the Common Rule (49 CFR
18.21), when excessive cash is being held by a grantee, FTA must requesa refund of
the excessive cash and, if the grantee is not a State Government or an,instrumentality
of the State, .the interest earned on those funds. However,.FTA requires that interest
on excess cash held be remitted irrespective.of whether the excess funds were
deposited into an interest-bearing account. Interest will be calculated at rates imposed
by the Secretary of the Treasury beginning on the fourth day aRer the funds were
deposited in the. recipient's bank or other financial depository. This requirement does
not apply to any grantee that is a State, State Instrumentality, or Indian Tribal
Government.
(1) Exceptions. The only exceptions to the requirement for prompt refunding are
when the funds involved:
(a) Will be disbursed by the grantee within seven calendar days; or
Co) Are less than $10,000 and will be disbursed within 30 calendar days.
FTA C 5010. IB
9-7-95
Page III-7
These exceptions to the requirement for prompt refunding should riot be
construed as approval for a grantee to maintain excessive funds. They are
applicable only to excessive amounts of funds which are erroneously drawn.
(2) Return of Funds. The remm of funds is accomplished as follows:
FTA requests the recipients to remit the excessive cash and any interest to
FTA by a check made payable to the Federal Transit Administration. If a
single check is used to remit both the premature withdrawal and the
interest, the amount of each must be separately identified; and
Co)
The check(s) are to be mailed to the'FTA lockbox fac'dity (see paragraph
h(2) below) and be accompanied by a letter explaining the purpose of the
check(s) and identifying the project number. A copy of the check and the
letter should be sent to the grantee's Regional Office.
go
Repayment to FTA. FTA program managers will be alert to any information which
may indicate a potential repayment. The following.are possible reasons for payments
becoming due to FTA:
(1) insufficient non-Federal funds to match Federal payments;
(2) the sale of project equipment; or
O) excessive Federal funds in the project account.
ho
Repayment Proce~iure. Required repayments must be made promptly to FTA. The
grantee is instructed to::
(1) Make the check payable to "Federal Transit Administration;"
(2) Mail all checks to the FTA lockbox facility at:
U: S. Department of Transportation
Federal Transit Administration
P. O. Box 360324M
Pittsburgh, PA 15251-6324
(a)
IFS10,000 or more, the amount should be wired to FTA using Treasury's New
York City Federal Reserve Bank for deposit to FTA Agency Location Code
(AL,C) 69080001.
(4) Specify applicable project number(s) on the check;
(5) Provide written explanation as to purpos~ of payment;
Page 1'I1-8
FTA C 5010.1B
9-7-95
(6) Send a copy of the check and the explanatory letter to the grantee's regional
office; and
(7)
If the project is on ECHO, the amount may be.repaid through a credit on the
FTA drawdown message. This credit must be shown in full and not netted
against any amount being claimed on the s~ane project, unless an appropriate
credit is shown for the original project, with a charge to the new project.
Payments of interest mUst be made by check.
Revocation of ECHO Control ·Number. An ECN will be revoked when it has been
determined that the grantee has demonstrated an unwillingness or inability to establish
procedures to withdraw only the amounts necessary to meet current disbursement
needs and to time withdrawals as closely as possible to the actual cash disbursements.
"REOUEST FOR ADVANCE OR REIMB~SE~ (SF-270).
a~ General. If the requisition method'of payment is used, the grantee agrees to:
(1) Complete and submit "Payment Information Form - ACH Vendor Payment
System", (See Exhibit Ill-5) to FTA's Accounting Division.
Complete and submit Standard Form 270, 'Request for Advance or
Reimbursement', (See Exhibit IH-6) to the designated FTA office. No other
document need accompany this form. An original and two copies should be sent
to FTA.
Upon receipt cfa payment request, FTA will authorize payment by ACH deposit if the
grantee is complying with:its obligations under the approved grant; has satisfied FTA
that it needs the requested Federal funds during the requisition period; and is making
adequate progress towardthe timely completion of the project. If all these
circumstances are present, FTA may re'unburse apparent allowable costs incurred (or
to be incurred during the requisition period) by the grantee up to the maximum amount
of Federal funds payable through the fiscal year in which the requisition is submitted,
as stated in the project budget.
bo
Instructions. Instmcedons for completing an SF-270 are printed on its reverse side. In
addition, the following instructions should assist recipients in completing this form.
(1) ' Only the total column on this form should be completed, unless the project
involves more than one funding ratio. In such instances, the other columns are
also to be used.
In addition, grantees may elect to round all figures to the nearest dollar; i.e.,
amounts of $.50 or over would be rounded to the higher dollar. For example: If
FTA C 5010. lB
9-7-95
(2)
(3)
(5)
Page Ill-9
the non-Federal share is computed to be $2,572.70, the amount reported would
be $2,573.
Block #5--AIl requisitions should be numbered consecutively beginning with #1
as the first requisition.
Block #8-The first requisition covers the date of the grant approval letter
through the end of the period for which reimbursement is requested. When a
requisition requests reimbursement only, the "ending" date will be the same date
which outlays are reported on line 1 la of this form. ffthe reimbursement and/or
an advance .is being requested, the 'ending' date should reflect the period through
which the advance funds are needed.
All requisition report periods should run consecutively. For example, ifa
requisition is submitted for the period 1/I/94 to 3/31/94, the next requisition will
begin 4/1/94.'
Block #9-The name of the grantee should be exactly as indicated on the grant
.contract.
Block #11--Line A-The "as of" date should be the date for which the grantee
has actual costs recorded. This date should be the same as the "to" date, Block
#8, unless the grantee is requesting an advance.
Line B--Represents the amount applicable to program income that was required
to be used for the project or program by terms of the grant or other ~greement.
Line D-Represents the estimated expenditures for the advance period, both FTA
share and the local share.
Line F-Non-Federal share of line E, depending on the funding ratio for a
particular project. If anything other than those percentages, the reason should be
specified.
Line G-Federal share of line E, depending on the funding ratio for.a particular
project.
Line H--Total of previous requisition(s) submitted. Tiffs line should not
represent actual checks received because the grantee may have submitted a
requisition that is in the process of be'rog paid. Requisition #1 on this llne should
be zero.
Note that recipients should only complete the "total" column of Block #11,
unless the grant award letter or grant agreement specified that there is more than
Page III- 10
FTA C 5010.1B
9-7-95
Co
one funding source supporting the project. In such cases, separate columns
should be utilized for each funding source.
Review of the SF-270. Each SF-270 for funds will be reviewed in light ofthe periodic
progress reports and financial reports required for each project. Changes requiring
grant amendments or prior approval of a budget revision must be approved before
funds for these changes are requisitioned.
EXHIBITS III-1 through III-6 follow
Page III-11
F'I~C 5010.1B
9-7-95
SAMPLE
SIGNATORY AUTHOI;tr;'.&TION AND CERTIFICATION
(Signature of Authori~-g Official)
This is to certify that the above is the signature of
(Type4 Name)
(Name of R~ipient Organization)
and ~ they are duly aut~ to approve p~/rneat requests submitted to tho Federal Transit
Administration on the ~ of (your organization).
This (does/do,snot) supersede previous signatory authorization for this F. CttO COntrol Number.
In addition,
m-~-t~,~, the ECHO Password.
(Name of Com,,q Person) is ~uthorized to receive and
(Signature ofR,~pieat ~i~tion Official
(Typed Name and Title)
(Date)
(S~u,ture of
Exhibi~ III-i
Page III-12
FOR ECHO PAYMENTS ONLY
FTA C 5010. lB
9-7-95
PAYMENT INFORMATION FOE]~ - ECHO-ACH PAYJfl~T SYSTEM
Control Number (ECN)
Initial
ECHO Setup ~--~ Bank Info. Change
(If initial ECHO Setup, Agency
will assign ECN Number).
Grantee Information Change
Information from this form is required under the provision of 31 U.S.C. 3322
and 31 CFR 210. Treasury uses this to transmit payment data .by electronic
means to a grantee's financial institution. Failure to provide the requested
information may delay or prevent the receipt of payments through the Treasury
ACH Payment System. Notez See back for instr~ctions on com~leting this
form.
GRANTEE INFORMATION
ADDRESS:
.CONTACT. PERSON. HAME
SZ~NATURE' OF.AUTHORZZED OFFICIAL ON FILE IN FTAz
AGENCX INFORMATION
~D~SS~ 400 7~ S~ee=, ~, ~-24, ~ 9422,
TELEPHONE
( )
Washington DC
II
(~otet ~ave Your Bank Complete This Seat~on)
ADDRESS:
CONTACT PERSON NAME
20590
)EPOSZTOR ACCOUNT TITLE t
EPOSZTOR ACCO~dT NUMbErs
.TYPE OP ACCOUNTs CHECKINg
8ZQNATURE AND TITLE OF REPP, FJ3ENTATIVEt
DATE TELEFAX NUMBER t
/ / ( )
Tu~.~PHQNE
(' )
F~% C 5010. lB
9-7-95
Instructions for Com~le~ing Form~
Page III-13
Fill in your ECHO Control Number. If this is an Init/al ECHO
Setup, Agency will assign ECHO Control Number.
Check appropriate box(es):
a. Initial ECHO Setup.
b. Change in Bank Information.
c. Change in Grantee Information.
Fill in information in the appropriate section(s) listed below:
Comp-ny/Grantee Information Seot~an - Print or type the name of
the grantee and address that will receive ECHO/ACH payments.
Also include a contact person's name, date, telephone a~d telefax
number.
Financ~al Institut~on Information Section - Have your ba~k fill
out this section. They should print or-type the.name.~d address
of the fi~ancial institution who will .receive the ECHO/ACH
payment. Also included are the ACH coordinator'..s-name, telephone
number, nine-digit routing transit number (ABA #), depositor
(grantee} account title, depositor (grantee) account number, and
type of account (type ca- ONLY be designated as Checking or
Saving).
Mail the form to the name a~d address shown in the A~en~
Information ~eot~on. This section -also includes a contact
person's name and telephone number.
Page III-14
FEDERAL 'I'R~SIT
~lectronic ~learing ~ouse 9peration System
F'IIA C 5010. lB
9-7-95
AUTHORIZATION FORM
ECHO Control No~
Type of Action:
Initial Issuance N Revocation ~
Change in ECHO-ACH Information []
C0~PANY/. GRANTEE INFORMATZON
ADDRESS:
'CITY, STATE
ZIPCODE
ADDRESS:
To Be Com~let~lbyFTAAaaountLng DLvis£on
DaCe~Prepared:
/ /
Effective Date: / /
Signature:
~-Title :
Exhibit III-3
F~% C 5010. lB
9-7-95
Page III-15
' ~J~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~[
_-- i , ~ --
.,,.. .c~ . . ~:~ .?,.) ....
,maim imam
- ~ -
~_ ~ -~,,~,,,,,,~ .=
= ~ ~,,,,,,,,,, _-
O ~ '
~~~~~~~~~~~~
1%'"' ~,- T., 4 I-,, 4 +- TT'T' ~1
Page III-16
PAYM~TT II~FORMATION FORM
ACH VENDOR PAYMENT STSTEM F~A C 5010.lB
9-7-95
Bank Info. Change ~ Company Information Change
~ ~ form is used for ACH payment with an addendum that carries payment
z_lated information. Recipients of these payments should bring this
information to the attention of their financial institution when presenting
this form for completion.
The information being collected on this form is requiredu~der the provision
of 31 U.S.C. 3322 and 31 CFR 210. This information will be used by the
Treasury Department to transmit payment data by electronic means to a
vendor's financial institution. 'Failure to provide the requested information
may delay or prevent the receipt of payments through the ACH Payment System.
· -ADD~8:
SZ~Z~LTUH~ OP AUTHO~Z~ OFFICIAL:
/ /
400 7th 8tree~, ~1~, TBP-24, ~ 9422, Washington, DC 20590
ADDRESS t
CONTACT
I~~:EAL' Z~uw&'zv,-ZC~ lZFOm~zTZO~
DEPOSZTOR ACCOUNT TZTL~:
~DEPOSZTORACCOUNT NOM~E~.:
TYPE OF ACCO~dT: CHZCK3:N~
8ZC~ATUP,.E AND TZTLE OF R~PR~ENTATZFE:
~ 0 5010.1])
9-?-95
Zns tructions
for Com~leting
Fox-m:
Page III-17
o
Check appropriate box(es):
a o
New Form.
Change in Bank Information.
Change in Company Information.
Fill out information in the appropriate section(s) listed
below:
C_-~.any Znform~tion Section - Print or type the name of the
company and address that will receive ACH payments. Also
include a contact person's name, date, telephone and telefax
numbers.
Financial Institution Information Section .- Have your bank
fill out this section. They. should print or:type che-name, and
address' of th~ financial i.nstitution who will receive the ACH
payment. Also included 'are the. ACH :'coordinator's name,
telephone number, nine-digiC routing transit number (ABA#),
depositor (comr~ny) account title, depositor (company) account
number, and type of-account (Cype ca~ ONLY be designated as
Che~kLng or Saving), signature ~-d title of representative,
date and .telefaxnumber. ..
Mail the 'fo~m to the name and address shown in the A~ency
Information Section. This section also includes a contact
person's ns~e and telephone number.
Exhibit 111-5
Page III-18
REOUEST FO~
~ REIMBURS~
f. Ifl~
I IGii &)
~ C 5010. ].B Page
9-7-95
11
III-19
Exhibit III-6