Chapter 2 — Roles and Responsibilities

DLA, 12 districts, primary LPA implementation responsibility

Within Caltrans, responsibility for administering Federal and State Local Assistance Highway Programs resides in the Division of Local Assistance (DLA) under Planning and Modal Programs. Each of the twelve Caltrans districts has a District Local Assistance Engineer (DLAE) who is the LPA's primary contact for processing projects, aiding development efforts, and answering questions.

"The responsibility for implementing individual projects on the local streets, roads, and other transportation systems resides with the LPAs, principally the cities and counties."

State-Funded vs Federal-Aid

State-Funded Projects: Developed per CTC and Caltrans state law/policy. "It is Caltrans policy to provide these funds to local transportation programs with a minimum of state oversight." Procedures vary; LAPG governs.

Federal-aid Projects: FHWA is the federal agency typically involved. "FHWA has the authority and responsibility for implementing and monitoring federal laws, regulations, and executive orders affecting these programs."

"Caltrans obtained major delegations of authority and/or responsibility from FHWA and has passed on these delegations to LPA partners to the greatest extent possible. Delegation includes the accountability for initiating and completing each project phase in accordance with the appropriate state and federal laws and regulations without extensive FHWA or State oversight."

FTIP/FSTIP inclusion is mandatory before fund authorization: "Federal-aid projects must be included in a regional transportation plan and the approved Federal Statewide Transportation Improvement Program (FSTIP). This inclusion must precede fund authorization for any activity for which Federal-aid funds are being sought."

Programming responsibility: MPOs handle urbanized area FTIPs; County Transportation Commissions and RTPAs handle non-MPO LPAs. The FTIPs are incorporated into the FSTIP.

Exhibit 2-B (Federal-Aid Project Responsibilities List for Delegated Projects off the State Highway System) outlines the roles of the parties involved.

The 99%+ delegated framework under 23 USC 106(c)

National Highway System (NHS)

"The NHS provides an interconnected system of principal arterials that serve major population centers, international border crossings, ports, airports, public transportation facilities, intermodal transportation facilities, and other major travel destinations; meets national defense requirements; and serves interstate and interregional travel."

Developed by USDOT in cooperation with states, local officials, and MPOs. The California Highway System Map displays statewide road system information including Functional Classification roadways and the NHS.

Stewardship and Oversight Agreement (S&O)

The FHWA/Caltrans S&O defines roles and responsibilities, outlines authorities, and assures accountability in effectively and efficiently managing program and project delivery of the FAHP.

Authority: 23 USC §106(c) — "requires the USDOT and the State to enter into an agreement for the extent to which the State assumes the project approval and oversight responsibilities of the USDOT."

"Unlike previous stewardship agreements, the current S&O utilizes a risk-based approach to manage the FAHP."

Delegated Projects — the 99%+ rule

"Caltrans has authority for all aspects of a Federal-aid project except those activities which may not be delegated by federal law (requiring FHWA approval)."

Minimum 24 RBI projects, both Caltrans and locally administered, 12 districts

RBPI is FHWA's annual process that considers risk, data, and judgment to select Risk-based Involvement (RBI) projects and provide stewardship and oversight beyond what is required.

Annual list of RBI projects and involvement activities are established and communicated to Caltrans by October 31st.

Pre-2019 nomenclature: these were "Projects of Division Interest (PoDI)." Renamed RBI to reflect the data-driven selection methodology.

"Approval authority for RBI projects is delegable per statute or regulation, as documented in the current FHWA/Caltrans S&O. Retaining a delegable action by FHWA requires approval by FHWA's Division Administrator."

Minimum RBI Selection Parameters

"There is no maximum number of RBI projects each year, but FHWA will select at least 24 projects."

• At least one Caltrans-administered RBI project in each of the 12 Caltrans districts
• At least one locally-administered RBI project in each of the 12 Caltrans districts
• FHWA establishes the approximate number of RBI projects per district based on available resources and workloads

RBI Screening Criteria

FHWA screens the project universe using required criteria — projects meeting any are RBI candidates (though not required to be selected):

1. Discretionary Grants and Financing — INFRA Grants (formerly FASTLANE), BUILD (formerly TIGER), Surface Transportation System Funding Alternatives, Advanced Transportation and Congestion Management Technologies Deployment, TIFIA
2. Major Projects — Total estimated project cost ≥$500 million with any amount of Federal-aid in construction phase (23 USC 106(h))
3. Public-Private Partnerships (PPP) — Any project including private financing
4. Unusual Bridges and Structures — Projects meeting the 1998 memorandum on Project Oversight Unusual Bridges and Structures
5. Program Involvement Findings — Projects aligning with the top risk(s) identified by the division office from their program involvement findings

California-specific discretionary screening: nationally identified focus areas (Inactive Obligations); OIG and GAO Reviews; CADO Program Reviews; CADO Top 10 Risks; innovative technologies.

Primary data source: Financial Management Information System (FMIS). Some projects without Federal Project Numbers (e.g., some ER projects determined eligible but not yet requesting authorization; LPA Direct Recipient projects never authorized within FMIS) are also screened.

Stewardship & Oversight Plans

"Once the overall list of involvement activities is completed and the final RBI projects have been determined, FHWA completes an S&O Plan for each RBI project by selecting the relevant activities. Some activities will be relevant to all RBI projects (i.e., validating the Project End Date) while others may only apply to Discretionary Grant or ER projects."

S&O Plan includes project description, key milestone dates, descriptions of project's risks. Discretionary Grant or Major Project RBIs must include required activities in addition to risk-based discretionary activities.

Off-SHS vs On-NHS procedural differences

R/W Certification Delegation: See Ch 13 §13.2 Federal Aid and the Federal/State/Local Agency Relationship.

Non-NHS Projects

"Many of the responsibilities delegated to Caltrans under the S&O are further delegated to the local project sponsors for non-NHS projects. Caltrans preliminary engineering, construction review and approval activities are reduced. Other activities involving environmental reviews, project authorization, DBE, consultant selection, and agreement procedures are streamlined to eliminate duplication of effort and multiple reviews."

NHS Project Differences

"The delegation of responsibilities to LPAs described above for non-NHS projects also applies for NHS projects. With the following exceptions, procedures are the same."

$500M Major Project and $100M Mini-Major Project requirements

"The requirements of this section only apply if Federal-aid is used in any construction activity."

$500M Major Projects (per 23 USC 106(h))

"LPAs receiving any amount of federal financial assistance for a Major Project with an estimated total cost of $500 million or more (includes all phases) and LPAs for such projects as may be identified by FHWA, submit to Caltrans for each project:

• Project Management Plan (PMP)
• Financial Plan which consists of an Initial Financial Plan (IFP) and Financial Plan Annual Updates (FPAU)"

A Cost and Schedule Risk Assessment (CSRA) must be completed by FHWA prior to the Final NEPA document, and prior to the construction authorization for all major projects (≥ $500 million).

PMP Requirements

• Draft PMP (including Project Management Plan Checklist) must be submitted prior to finalization of IFP
• Document procedures and processes to provide timely and appropriate information to project decision-makers to manage scope, costs, schedules, quality, and federal/state requirements
• Document the role of agency leadership and management team in delivery of the project
• Updated and submitted with the construction authorization request and updated thereafter as required

Financial Plan Requirements

For projects $100M but less than $500M, AND Major Projects over $500M, the Financial Plan (with Financial Plan Checklist):

• Submitted when all elements are completed, but not later than when requesting federal authorization to proceed with construction
• For Major Projects, FHWA HQ has to concur in IFP approval — late submission delays authorization
• For design/build projects, plan received prior to award of the design/build contract
• Updated annually (FPAU) once IFP approved until construction substantially complete
• FPAU due no later than 90 days after end of annual reporting period; draft (uncertified) FPAU should be submitted within 60 days of annual reporting period
• Based on detailed estimates of cost to complete as defined in NEPA document
• Costs expressed in year of expenditure dollars; estimated using risk-based approach consistent with current FHWA Cost Estimating Guidance

$100M-$500M Mini-Major Projects

"LPAs receiving any amount of Federal-aid for a project with an estimated total cost of $100 million or more (includes all phases) must prepare an IFP and FPAU and make the plan available to Caltrans/FHWA upon request. Financial Plans for projects with an estimated total cost of $100 million or more, but less than $500 million, must be approved prior to Construction Authorization and must be submitted with the Construction Authorization request."

23 USC 106, the non-delegable approval list, three review types

"FHWA has the overall responsibility for the FAHP pursuant to 23 USC §106 except for the environmental responsibilities under 23 USC §326/327. In addition, FHWA is ultimately responsible for ensuring the financial integrity and compliance with applicable federal laws and regulations."

FHWA Non-Delegable Project Actions

FHWA's "routine approval actions" are those NOT delegated to Caltrans. Include but not limited to:

• Federal-aid project agreements and modifications
• Obligation of federal funds
• Reimbursement to Caltrans of interim and final vouchers
• Project-level conformity determinations
• R/W Certificate 3
• Protective buying and hardship acquisition
• New/modified interstate access determination of engineering and operations acceptability (minor access changes assigned to Caltrans)
• Buy America waivers
• Innovative contracting practices

FHWA Program Reviews — Three Types

FHWA California Division Office (CADO) verifies Caltrans and LPA compliance via annual program reviews for Federal-aid projects and programs. Typically result in observations, findings, and corrective actions for DLA implementation.

1. Compliance Assessment Program Annual Reviews: Based upon random selection of LPAs or LPA Federal-aid projects. FHWA performs reviews to establish a confidence level that LPAs and their projects fully comply with federal and state laws and regulations.

2. Financial Integrity Review and Evaluation (FIRE): Improper Payment Reviews, Inactive Obligation Reviews, Financial Management Reviews and others to fulfill FIRE Program requirements per FHWA Order 4560.1C. Supports FHWA's annual certification of internal and financial controls.

3. Other Program Reviews: FHWA identifies high-risk areas through annual risk assessments and day-to-day interactions. Reviews involve assessment of policies, procedures, and project implementation. Goal: identify program improvements to mitigate risks and increase compliance.

Policy & Procedures · Program Management · Project Implementation

"Caltrans is responsible and accountable to FHWA for administering the successful implementation of Federal-aid programs and projects in accordance with laws, regulations, and policies that govern the Federal-aid program. Caltrans also administers the implementation of state-funded programs and projects for the CTC and State Legislature."

2.11.1 Policy and Procedures

"Caltrans establishes uniform policies and procedures to assist the LPAs in meeting the program requirements for their projects. Caltrans, in collaboration with FHWA, interprets federal and state laws, rules and regulations, and provides guidance in the form of manuals, guidebooks, handbooks, reference materials and service, and training."

2.11.2 Program Management

"Caltrans distributes both state and federal fund allocations to the MPOs, RTPAs, cities, counties and others as specified by law. Once the distributions are established, Caltrans provides program guidance for their expenditure... Caltrans also monitors project implementation to ensure that the projects are implemented in a timely manner to achieve program goals."

2.11.3 Conflict of Interest

49 CFR 19.36(b)(3): grantees and subgrantees will maintain a written code of standards of conduct governing the performance of their employees engaged in the award and administration of contracts. No employee, officer, or agent shall participate in selection, award, or administration of a contract supported by federal funds if a conflict of interest, real or apparent, would be involved.

Caltrans implementation: Deputy Directive DD-09-R5: Incompatible Activities and Conflict of Interest.

2.11.4 Project Implementation — Caltrans Cannot Delegate

"Some major Federal-aid project implementation steps delegated by the FHWA to Caltrans cannot be further delegated to the LPA level and remain Caltrans' responsibility."

From Exhibit 2-B, Caltrans-only actions include:

• Ensure project in FSTIP/TIP
• Identify proposed funding category
• All EA/FONSI/ROD, 4(f), 106, 6(f), and other approval actions required by federal environmental laws and regulations included in the FHWA-CA 327 NEPA Assignment MOU
• Airway highway clearance coordination and respective public interest finding (if required)
• Provide approval of preliminary plans for unusual/complex bridges or other structures (non-interstate)
• Retaining R/W encroachments
• Use of local force account agreements
• Use of publicly owned equipment

2.11.5 Oversight

"Oversight is defined as the act of ensuring that the FAHP is delivered in accordance with applicable laws, regulations, and policies. Oversight is the compliance or verification component of the joint FHWA/Caltrans stewardship activities."

Two major Caltrans oversight goals: (1) demonstrate federal/state requirements are being met and correct procedures are being followed by LPAs; (2) maintain a continual process of updating and improving Local Assistance procedures.

2.11.6 Maintenance Reviews — The 4-Year Cycle

"Annually, Caltrans reviews project maintenance for selected LPAs using Federal-aid funds so that every agency is covered during a four-year cycle. LAPM Chapter 18: Maintenance describes these maintenance review procedures in detail."

Every StanCOG member jurisdiction can expect a maintenance review at minimum every 4 years.

Full-time public employee per 23 CFR 172.9 — non-delegable to consultant

"The cities, counties, joint power authorities, transit agencies, and other public agencies have the primary responsibility for implementing the specific projects which carry out the programs described in this manual. Nonprofit entities may also qualify."

2.12.1 Project Implementation Scope

"The LPA is responsible for the conception, planning, programming, environmental investigation, design, right of way, construction, and maintenance of the projects on their local transportation system. It must ensure that its staff members, consultants, and contractors comply with the applicable state and federal laws, regulations, and procedures."

LPA delegated decision-making authority includes:

• Getting the project into the FSTIP
• Preparing the Request for Authorization for each project phase
• Determining Project DBE contract goals
• Making a preliminary classification of High-Risk, Low-Risk, or Exempt for ITS projects
• Selecting consultant and approving consultant contracts
• Approving local design standards for projects off the NHS
• Approving design exceptions for projects on or off the NHS
• Preparing and certifying PS&E (Caltrans must approve LPA PS&E procedures for most NHS projects)
• Qualifying/selecting right of way consultants
• R/W acquisitions and relocation
• Preparing and approving Quality Assurance Programs
• Advertising and awarding construction project
• Construction contract administration and inspection (Caltrans must approve the LPA construction administration procedures for high cost, complex, corridor-type NHS projects)
• Construction contract acceptance on delegated projects
• Coordinating railroad agreements
• Contract compliance

2.12.2 Person in Responsible Charge — 23 CFR 172.9

The 7 duties of the person in responsible charge per 23 CFR 172.9:

1. Administering inherently governmental activities including contract negotiation, payment, and evaluation of compliance, performance, and quality of services provided by consultant
2. Being familiar with the contract requirements, scope of services, and products to be produced
3. Being familiar with the qualifications and responsibilities of the consultant's staff and evaluating any requested changes in key personnel
4. Scheduling and attending progress and project review meetings, commensurate with magnitude, complexity, and type of work
5. Ensuring consultant costs billed are allowable per federal cost principles and consistent with contract terms
6. Evaluating and participating in decisions for contract modifications
7. Documenting contract monitoring activities and maintaining supporting contract records, as specified in 2 CFR 200.334

2.12.3 Unique Entity ID

"As of April 4, 2022 the Data Universal Numbering System (DUNS) Number is no longer valid for federal award identification. The Unique Entity ID is now the identifier of record and can be generated at SAM.gov."

2.12.4 Records and Documentation — The 3-Year Retention Rule

The programming and allocation framework

2.13 California Transportation Commission (CTC)

"The CTC has programming and fund allocation responsibility for some Federal-aid and state-funded programs used for Local Assistance projects. It is the LPA's responsibility to submit a request for allocation on time per the CTC preparation schedule."

Programming: CTC currently selects federal Active Transportation Program projects for inclusion in the STIP.

Fund Allocation: "When a project is ready for implementation, the CTC must vote to allocate funding to the programs. This action is commonly called the second vote."

The "second vote" pattern: programming is the first decision; allocation (when project is ready) is the second decision. Both must happen before LPA can begin reimbursable work on programs requiring CTC allocation.

2.14 MPOs, RTPAs, and County Transportation Commissions

These organizations have broad transportation planning duties and responsibility for programming most projects using Federal-aid or state allocations.

"They are responsible for providing each LPA with their application rules, procedures, and timelines. They are also responsible for providing the LPA with results of the decisions about its projects and the agency, CTC, and federal approval dates."

"The LPA must work closely with these organizations to ensure that its projects are placed in the appropriate TIP with the correct funds in the proper years. Federal funds and many state funds cannot be obtained without this programming step."

StanCOG is the MPO for the Stanislaus region — handles FTIP programming for its 11 member jurisdictions (Modesto, Turlock, Ceres, Patterson, Riverbank, Oakdale, Newman, Hughson, Waterford, Stanislaus County, and StanCOG itself).

2.15 Other Public Agencies and Organizations

Other federal, state, regional, and local entities may have an interest, role, or jurisdiction:

• Federal: Environmental Protection Agency, Army Corps of Engineers, Fish and Wildlife Service
• State: Department of Fish and Wildlife (CDFW), Air Resources Board (CARB), State Historic Preservation Officer (SHPO)
• Regional: Air or Water Quality Control Boards, Flood Control Districts

"Coordination should begin early to prevent critical delays later in the project development."

Quasi-public or nonprofit organizations may apply for and receive programmed funds. They must follow the same rules and regulations. "When such an agency does not have a full staff of administrative, engineering, contracting, or accounting personnel, Caltrans encourages it to work through an LPA that can provide these services and is familiar with the applicable rules."