Nys Route 17 Parksville

NYS ROUTE 17 PARKSVILLE D260985

Fed ID# 9066(743) St ID # 9066.74.322/.323/.324

INITIAL FINANCIAL PLAN January 2009

SUBMITTED TO: FEDERAL HIGHWAY ADMINISTRATION

SUBMITTED BY: NEW YORK STATE DEPARTMENT OF TRANSPORTATION

1 INTRODUCTION

This proposed project is located in the Town of Liberty in Sullivan County. Beginning at reference marker 17-9609-1108, work proceeds 2.6 miles (4.2 km) in an easterly direction to approximate reference marker 17-9609-1135.

Route 17 in Parksville is a four-lane divided highway serving the Southern Tier and Catskill Mountains regions of New York. Presently Route 17 is classified as a principal arterial and is on the National Highway System. Most of Route 17 was built in the 1960s with full control of access. However, there are sections with only partial access control, one of which is Parksville. This section of NY 17 contains driveways, at-grade intersections and U-turns. The signalized intersection at the intersection of NY 17 and Cooley Road has been attributed to accidents throughout the years and has been identified on past Priority Investigation Location lists.

During the 1960s, a right-of-way corridor was acquired to the south of existing NY 17 for a project which proposed a full access control highway on new alignment. This project was deferred due to other priorities in the state. Since the completion of this section of NY 17, no significant work has been completed.

Exhibit 1: Project Location

2 In 1998, as part of the Transportation Equity Act for the 21st Century, NY 17 was designated for inclusion in the Interstate Highway System as I-86. The most significant aspect of this conversion is providing full access control by eliminating all existing driveways and intersections within the project area. Another objective of this project is to improve safety and meet the current Interstate Standards to allow for the future designation as I-86.

The proposed project will reconstruct 2.6 miles (4.2 km) of Route 17 in the Parksville area of the Town of Liberty, Sullivan County. The project will extend from just west of Benton Hollow Road to a point east of Cooley Road in the Hamlet of Parksville. Route 17 is to be upgraded to Interstate Standards (future I-86), requiring full control of access along the highway and ramps. A new interchange will be constructed to provide access to local roads in the area, including a new alignment of Liberty Highway that connects with the westbound lanes of the existing Route 17. Overall, in addition to the new pavement, the project will construct thirteen new structures and rehabilitate four structures and one large culvert.

Four alternatives and a no build alternative were analyzed as part of the Environmental Impact Statement (EIS) which was circulated for review and comment in December 2003. A public hearing was held on January 21, 2003. The Record of Decision, signed by the Federal Highway Administration February 26, 2007, adopted Alternate A4 as the preferred alternative for the project.

PROJECT TIMELINE

The project will be let on March 26, 2009 as one project. Construction is expected to be completed by October 1st, 2012.

SECTION 1 - CURRENT COST ESTIMATE

The design consultant used historical bid price data which includes labor and material for computing the project cost. Approximately 20 major work items were analyzed for cost based on local conditions and local pricing trends with special attention given to item costs associated with petroleum products given the recent volatility. Such items include asphalt and earthwork items. Additionally, steel manufacturers were contacted to assist in determining the estimated bid price for steel. The estimated construction cost at PS&E, inflated at 4 % to the mid-point of construction, is $91.276 million. This construction estimate includes a $0.168 million water betterment which will be paid to NYSDOT, prior to award, by the Village of Liberty for work to be performed by the Contractor. The construction estimate does not include reimbursable cost for utility relocations by New York State Electric & Gas and Verizon in the amount of $0.192 million. The Utility Reimbursable costs will be paid directly to the Utilities by the NYSDOT, thus is not included in the construction estimate. The total non-reimbursable costs by the three utility companies are approximately $1.041 million.

3 Exhibit 2: Total Project Costs and Fund Shares

Cost Category Federal State Total

Scoping & Preliminary Design $3,332,000 $833,000 $4,165,000 ROW Incidentals and Acquisitions 731,000 183,000 914,000 Final Design 2,591,000 648,000 3,239,000

COSTS TO DATE (Nov. 2008) $6,654,000 $1,664,000 $8,318,000

Construction * $70,006,000 $21,270,000 * $91,276,000 * Construction Inspection 8,800,000 2,200,000 11,000,000 Final Design / Construction Support Services 1,470,000 367,000 1,837,000 Utilities - Total 153,600 38,400 192,000 NYSEG - Reimbursable 8,000 2,000 10,000 Verizon - Reimbursable 145,600 36,400 182,000

FUTURE COSTS $80,429,600 $23,875,400 $104,305,000

PROJECT TOTAL $87,083,600 $25,539,400 $112,623,000

* Includes $168,000 betterment from the Village of Liberty There are no contingencies included in the estimates. Changes to the construction cost over time will be addressed through Orders-On-Contract (OOC). As an integral part of managing NYSDOT’s capital funds, OOC’s are expected and budgeted for on a program wide basis. When the magnitude of OOC’s exceed the budgeted amount, adjustments are made to the Statewide Transportation Improvement Program (STIP) and future lettings as necessary.

SECTION 2 – IMPLEMENTATION PLAN

Below are some highlighted activities of the construction elements and year the elements are expected to take place:

Construction Season– 2009  Install all box culverts & storm pipes east of O’Keefe Hill Road  Install waterline at east end of the project and in the vicinity of Short Avenue  Complete the relocation of all utilities  Construct Mechanically Stabilized Earth System (MSES) Walls adjacent to Structures #1, #2, #11, #12  Begin construction of Structures #1, #2, #11 and #12  Begin earthwork operations at west end and O’Keefe Hill Road  Begin and complete Rehabilitation of Structure #4

4 Construction Season– 2010  Continue excavation and embankment work  Construct MSES walls at Structures #13, #14 and the two walls along new westbound lanes  Erect temporary access structure at Cold Water Seeps  Commence Structures #3, #3a, #13, #14, #15, #5, #6, #9 & #10  Substantial completion of Structures #1, #2, #11, #12  Complete wetland mitigation areas  Prepare proposed east bound lanes for pavement (and ramps)

Construction Season – 2011  Complete construction of Structures #3, #3a, #13, #14, #15, #5, #6, #9 & #10  Construct crossovers and temporary fill on current Route 17  Complete main line paving  Complete the tie-ins for new eastbound and westbound lanes, switch traffic to its final position  Complete miscellaneous earthwork

Construction Season– 2012 Liberty Highway  Complete all Bridge Rehabilitations  Complete realignment and reconstruction areas  Overlay the remainder of current westbound Route 17  Remove current eastbound lanes of Route 17  Complete landscaping, guide rail, signing, and fencing  Complete stream restoration elements

PERMITS / NECESSARY AGREEMENTS

The following permits and agreements are required for this project.

Exhibit 3: Required Environmental Permits and Agreements

PERMIT AGENCY DESCRIPTION STATUS SPDES GP-08-001 NYSDEC Storm water and point source In-place discharges Section 404 Individual USACE Discharge of dredge material Pending Section 27 Nationwide USACE Stream Restoration Pending Section 401 – Section 404 NYSDEC Water Quality Certification In-place Section 401 – Section 27 NYSDEC Water Quality Certification Pending Protection of waters (MOA) NYSDEC Consultation In-place EO-11990 FHWA Protection of Wetlands In-place AGREEMENTS Electric NYSEG Relocations Pending Phone Verizon Relocations In-place Water Village of Relocations Pending Liberty Cable Time Warner Relocations In-place 5 There are two Section 401 Water Quality Certification permits required for this project. The first, which is in place, corresponds to the Section 404 Permit: the second corresponds to the Section 27 Permit. The second Section 401 WQC went out for Public review on January 6, 2009 and expires on January 23, 2009. Once the review period is over, the Nationwide 27 Permit will be in place unless there are comments which need to be addressed. Ongoing discussions with the New York District of the Army Corps of Engineers regarding the Section 404 Permit indicate that Permit is expected to in place by mid February 2009.

The reimbursable and non-reimbursable Utility work required for this project will be performed by the respective Utility Company with the exception of water line work. Water line work is part of the contract and will be performed under PIN 906674. The Utility Resolutions and Agreements were sent to the Utilities in mid December 2008. Currently the Regional Utilities Engineer (RUE) has signed Agreements from Time Warner and Verizon. NYSEG has indicated to the RUE that their agreements will be signed and returned by the end of January 2009. The Village of Liberty is meeting January 28th, 2009 to pass the Resolution allowing the NYSDOT to perform the required work and decide on the betterment portion of work.

NYSEG and Verizon have obtained Highway Work Permits from the NYSDOT. Work on the utility relocations has commenced and is expected to be completed by June 30 th, 2009. Time Warner will begin their relocations sequentially following the completion NYSEG and Verizon work.

MANAGING THE PROJECT

The Contractor will be required to designate an individual as a Project Scheduler who will develop and maintain the construction progress schedule. After Award but prior to commencing work, the Contractor will be required to develop a baseline project schedule and submit it for approval to the NYSDOT. The schedule will be developed using the critical path method (CPM) depicting the entire scope of work to be performed to complete the project including, but not limited to, all activities of the contractor, subcontractors, consultants, the NYSDOT and others as required. The contractor will be required to revise and update the progress schedule monthly and use it in planning, coordinating and performing all work. Regional NYSDOT staff will also monitor the project schedule from a NYSDOT server where it will be required the schedule be kept and maintained.

Project costs will be monitored by reviewing progress payments either once or twice per month, depending on the contractors preference. The Departments computerized payment system is used to assess the status of project cost to date, percentage complete, over and under runs on items etc. This information will be reviewed by the project Engineer-in-Charge, project supervisor and the Regional Construction Engineer.

SECTION 3 – PROJECT FINANCING AND REVENUES

Funding has been identified for all future expenditures, including construction and construction inspection. 6 Exhibit 4: Project Funding Summary

NHS SDF 2005 Bond Total Construction $70,006,000 $10,952,000 $10,150,000 $91,108,000 Construction Inspection 8,800,000 2,200,000 11,000,000 Final Design/ Const Support Svcs 1,470,000 367,000 1,837,000 Utilities 153,600 38,400 192,000

TOTAL FUTURE $80,429,600 $13,557,400 $10,150,000 $104,137,000

While all project costs are Federally eligible, additional State funding has been programmed for this project for construction. Included in the State share is $10,150,000 from the 2005 Bond Act.

The NYSDOT has identified this project as a candidate for funding through the Economic Stimulus Plan (ESP). If the ESP is realized, the NYSDOT will utilize as much funding through the Stimulus package as is allowed. If ESP funds are utilized the funding package, as shown in Exhibit 4, will be adjusted in the first Financial Plan update and the remaining 2005 Bond dollars will be reallocated by the Department to be used elsewhere.

The possibility of actual bid amounts exceeding the current budgeted amounts will be addressed programmatically. While the Bond funds are project specific fixed amounts, the NHS and SDF funds for this project are included in a much larger context of a seven year capital program. The first 4 years of these programmed funds are included in the STIP, which is a fiscally constrained plan.

Total anticipated funding for both the Statewide and Regional Programs(*) through the next seven years is shown in Exhibit 5:

Exhibit 5: Program Funding Summary (in M's of $'s)

7 Yr Programs: SFY 08/09 thru 14/15 Future Regional (*) Statewide Project Costs Allocations Allocations

Federal NHS Funds $80.430 $792.132 $2,037.249

State Dedicated Funds $13.557 $215.279 $7,329.990

(*) This project is part of the program called Projects of Statewide Significance (SWS) which is distinct yet comparable to other "regional programs"

There is flexibility in the Department’s program to absorb potential cost increases through adjustments that occur routinely in managing the capital program.

7 SECTION 4 – CASH FLOW

Consistent with the administration of other construction projects, the Department will be requesting Federal approval to advance construct this project and will request partial conversion to regular obligation as the project progresses. Based on the work activities progressed the Department anticipates annual expenditures as follows.

Exhibit 6: Expected Conversion of Total FA $80,430,000 Advance Construction Total Costs FA Share May 2009 - Sept. 2009 First 5 mos 12% $12,496,000 $9,652,000 Oct. 2009 - Sept. 2010 12 mos 30% 31,241,000 24,129,000 Oct. 2010 - Sept. 2011 12 mos 33% 34,365,000 26,542,000 Oct. 2011 - Sept. 2012 12 mos 18% 18,745,000 14,477,000 Oct. 2012 - Sept. 2013 Close out 7% 7,290,000 5,630,000 TOTAL 100% $104,137,000 $80,430,000

SECTION 5 – OTHER FACTORS

Construction Inspection (CI): A mix of NYSDOT and consultant staff will be employed to inspect the contractors work and progress. The consultant to perform the CI has been designated and the contract is being finalized.

Construction Support Services (CSS): The Design Consultant has been retained to perform CSS. The Consultant will provide support services consisting of design response to unanticipated or changed field conditions, analysis and participation in proposed design changes, Value Engineering Proposals, review of shop drawings and ongoing interpretation of design plans.

Traffic Control: There is little risk associated with traffic control and as such no incentive/disincentive clauses have been included in the contract. A majority of this project consists of a new alignment and will be built off line. Appropriate Traffic Control Plans are included within the contract documents establishing lane closures, crossovers etc. conforming to the National MUTCD and NYS Supplement where appropriate.

Utilities: Utility relocations, other than water mains, are expected to be completed by June 30, 2009 as noted within the Agreements. In an effort to minimize delays NYSEG and Verizon have began their portion of the work. Should the utilities cause delays, the NYSDOT will work with the contractor to alter the sequence of operations in an effort to eliminate/minimize potential delay damages.

Environmental Issues: In an effort to limit the impacts to environmental sensitive areas such as the cold water seeps and protected streams, the NYSDOT has identified ‘Do Not Disturb’ areas on the contract plans and added Item 209.2201 09 – Construction Access Through Environmentally Sensitive Areas. Additionally, the contract, via Special Specification, requires the contractor to employ a full time Environmental Supervisor on site to ensure the Contractor is conforming to the requirements stipulated in the Contract Documents and Permits.

8 Earth Work: The actual nature of the subsurface field conditions cannot be fully known until the actual work begins. The subsurface conditions are documented based on boring logs and are available to potential bidders as supplemental information. The NYSDOT has identified and made available to potential bidders locations to deposit a portion of the spoil. It will be the Contractors’ responsibility to obtain environmental clearance for NYSDOT and Contractor identified locations. This project does not anticipate any borrow material, therefore borrow areas are not of concern. A request has been made to the NYS Department of Environmental Conservation to deviate from the 5 acre maximum allowable disturbance. Erosion and Sediment Control and Storm Water Pollution Prevention Plans have been developed and approved. It will be the responsibility of the contractor, with the assistance of the NYSDOT and the Environmental Supervisor to ensure the methods and treatments are in place and inspected as required to prevent excessive run-off, sedimentation or slope failures.

Permits: It is anticipated that all permits will be in place by the award of the project. The Section 401 Water Quality Certification for the Section 404 permit has been granted allowing the USACE to grant the Section 404 permit. The Public review period for the Section 401 permit as it relates to the Section 27 Permit expires on January 23, 2009. Assuming there are no comments, the Section 27 permit will be in place.

Agreements: Several Utility Agreements are required for the project. The Project Engineer is currently working with the Regional Utilities Engineer to progress and secure the Agreements as expeditiously as possible. As of January 22, 2009 two of the four Utility Agreements have been signed. The remaining two Agreements are expected to be signed by the end of January, 2009.

Alternate Bidding: The NYSDOT is utilizing an ACC/ PCC alternate bid format due to recent volatility of petroleum products and the lack of asphalt suppliers within the project area. The contractor will have the option of bidding on ACC or PCC for the mainline pavement as shown in the contract documents. One factor that may effect the preferred bidding option is the elimination of the asphalt adjustment factor for those areas in which alternate bidding has been specified. Also, it may be cost effective for a contractor to establish a portable PCC plant on-site with the amount of concrete which will be required for the structures within the project.

Inflation: Prices for petroleum, steel and cement have been volatile during 2008. While care has been taken to anticipate inflationary increases, rapidly changing market trends make these items the most difficult cost variables to anticipate. The NYSDOT includes fuel, asphalt and steel price adjustments to relieve the Contractor of some inflationary risks.

Market conditions: Bid prices may be favorably impacted by the recent downturn in the national economy. The slowing of new construction should result in more competitive bidding. However, it is unclear what impact the prospects of a Federal stimulus package may have by the letting for this project.

FINANCIAL PLAN UPDATES

Annual updates to the financial plan will be done by the end of each November through 2013. 9