Prepared by CHIPS, EWR AND PAVE-NY PROGRAM GUIDELINES Revised NYSDOT April 2020
TABLE OF CONTENTS
I. PROGRAMS
A. Consolidated Local Street and Highway Improvement Program (CHIPS) B. Extreme Winter Recovery (EWR) C. PAVE-NY
II. REQUIREMENTS FOR CHIPS, EWR AND PAVE-NY CAPITAL PROJECTS
A. Project Eligibility B. Stockpiled Materials C. Eligible Equipment D. Eligible Project Costs and Payment Reimbursements E. Reimbursement Certification F. Project Design and Construction Standards G. Quarterly CHIPS, EWR and PAVE-NY Payments H. Limits on Work Performed By Municipal Forces/Competitive Bid Requirements I. Compliance with Applicable Laws J. Use of CHIPS, EWR and PAVE-NY Capital Funds for Local Match K. Timely Expenditure of CHIPS, EWR and PAVE-NY Capital Funds
III. PROGRAM CONTROLS
A. Financial Audits B. Program Reviews
IV. QUALITY ASSURANCE (QA) PROCESS
A. Reimbursement Request Processing B. Records Retention
NYS Department of Transportation Policy and Planning Division Local Programs Bureau Email: [email protected]
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I. PROGRAMS
A. Consolidated Local Street and Highway Improvement Program (CHIPS)
CHIPS provides State funds to municipalities to support the construction and repair of highways, bridges, highway-railroad crossings, and other facilities that are not on the State highway system.
The authorization for the CHIPS Program is contained in Section 10-c of the State Highway Law. Funds are apportioned to municipalities annually by the New York State Department of Transportation (NYSDOT) pursuant to a formula specified in this section of the Law.
Upon approval of the State Budget, NYSDOT determines each municipality's final CHIPS Capital apportionment for the new State fiscal year and notifies them of the available amount via the letter for the scheduled June payment and a posting to the Capital Apportionment Balances link on the CHIPS website.
B. Extreme Winter Recovery (EWR)
The EWR Program provides State funds to municipalities to support the construction and repair of highways, bridges, highway-railroad crossings, and other facilities that are not on the State highway system.
C. PAVE-NY
The PAVE-NY Program provides State funds to municipalities to support the rehabilitation and reconstruction of local highways and roads.
PAVE-NY follows all the programmatic and reimbursement requirements of CHIPS, with one exception, eligible project activities are limited to Highway Resurfacing and Highway Reconstruction.
II. REQUIREMENTS FOR CHIPS, EWR AND PAVE-NY CAPITAL PROJECTS
In order to be eligible for CHIPS, EWR and PAVE-NY Capital reimbursement, the capital project must: (1) be undertaken by a municipality; (2) be for highway-related purposes; (3) have a service life of 10 years or more with normal maintenance or comply with the exceptions below; and (4) follow the CHIPS, EWR and PAVE-NY Guidelines as outlined in this document.
A. PROJECT ELIGIBILITY
The municipality is responsible for selecting eligible project activities for CHIPS and EWR and eligible activities for PAVE-NY and must certify the project is expected to have a useful service life of at least 10 years, except for the following resurfacing project subtypes: (1) microsurfacing; (2) paver placed surface treatment; (3) single course surface treatment involving chip seals or oil and stone; or (4) double course surface treatment involving chip seals or oil and stone.
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Under NYSDOT policy, if a municipality is reimbursed for expenditures on one of these four resurfacing treatments, the municipality would not be eligible for reimbursement for similar treatment at the same location for another ten (10) years. Items which are not eligible for reimbursement include:
• Operation and maintenance activities such as pavement patching, pothole repairs, crack sealing, slurry seal, snow removal, brush and weed control, street cleaning, highway planning studies, administrative disbursements (including administering CHIPS, EWR and PAVE-NY) not associated with a specific capital project, and purchase of materials not associated with a specific capital project. • State highways, including locally maintained State arterials in cities. • All parking facilities not owned by a municipality and those municipally-owned parking facilities which do not primarily serve a mass transportation commuter parking purpose. Examples of ineligible municipally owned parking facilities that do not primarily serve a mass transportation commuter parking purpose include, but are not limited to, a parking lot serving a municipal building, school, ball field, park, or retail shopping. • Sanitary sewers, water lines, and other utilities which are not impacted by a highway/bridge reconstruction project. • Bicycle access features outside the highway right-of-way. • Amounts paid by a municipality for interest payments or indirect costs (e.g., costs of issuance) on local bonds issued to finance eligible project costs.
B. STOCKPILED MATERIALS
Municipalities may realize cost savings by purchasing materials (crushed stone, pipes, etc.) in bulk and stockpiling those materials for future use. In order to avoid the possibility of stockpiled materials being paid for twice (first as a stockpile and a second time when actually placed as part of a specific project), NYSDOT will only provide a CHIPS, EWR or PAVE-NY reimbursement for stockpiled materials when those materials have actually been placed as part of a specific CHIPS, EWR or PAVE-NY funded project.
A municipality can receive reimbursement from their current State fiscal year CHIPS, EWR, or PAVE NY apportionment for stockpiled materials that are placed in service in the current State fiscal year even if they had no CHIPS, EWR or PAVE NY balance at the time they purchased those stockpiled materials.
Consistent with Section K of these Guidelines, reimbursement eligibility is limited to only those unreimbursed local stockpiled expenditures made within an 18-month period prior to the scheduled quarterly payment date specified in the current NYSDOT payment notification letter. The specific 18-month time period for each quarterly payment will be identified in each quarterly letter.
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C. ELIGIBLE EQUIPMENT
In order to be eligible for CHIPS and EWR reimbursement, the equipment must have a service life of 10 years or more with normal maintenance. In order for equipment “attachments” to be eligible for CHIPS and EWR reimbursement, the municipality must purchase the equipment attachment(s) at the same time that they purchase the corresponding equipment.
If you have any questions concerning an equipment’s eligibility for CHIPS and EWR reimbursement, please contact your NYSDOT Regional CHIPS Representative.
D. ELIGIBLE PROJECT COSTS AND PAYMENT REIMBURSEMENTS
1. Eligible project costs consist of disbursements for all phases of an eligible CHIPS, EWR, and PAVE-NY project. These costs may include:
• construction cost for projects performed by contract • cost of labor, materials, and administrative costs (surveys, etc.) • equipment usage o Purchase (CHIPS and EWR only) o Rental (CHIPS, EWR and PAVE-NY) • purchase of necessary right-of-way • design (whether in-house or by consultant) • construction inspection
2. Payment requests for a particular reimbursement may only be for disbursements made during the expenditure eligibility period as detailed in the notification letter specific for that reimbursement.
Municipalities must include all supporting documentation with their CHIPS, EWR, and PAVE-NY reimbursement submissions to NYSDOT for all payment requests. Documentation shall include, but is not limited to, the following:
• Photos of ADA-Required Curb Ramp Installations • Summary record of materials (with project description) • Summary record of equipment usage, force account equipment, and/or rented equipment • Proof of Payment – Acceptable forms of Proof of Payment include: o EFT Statements (or EFT e-mail confirmations) or o Bank Statements (including electronic documentation) or o Credit Card Statements - If bank or credit card statements are used, sensitive information must not be compromised. Account numbers should be removed or redacted prior to submission. While invoices marked paid and vouchers are proof of receiving materials and services they are not considered sufficient proof of payment verified by a financial institution or o a Cancelled Check to Contractors, Subcontractors, and Vendors • Summary reports for labor involved in a Project (including labor rates) (In-House Work)
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Equipment rental rates can be accessed via the NYSDOT Equipment Rental Rate Schedule. As referenced in the Documentation Checklist on the CHIPS website, labor, materials, and equipment costs must be documented using Supporting Documentation Forms for CHIPS, EWR, and PAVE-NY, or an equivalent summary format of your choosing. The supporting documentation forms should be useful for organizing the information required or as a reference for what is required. Municipalities are responsible for providing complete documentation. Project disbursements must be documented and maintained in project records, which are subject to future audits.
E. REIMBURSEMENT CERTIFICATION
The State relies on the signature of the responsible municipal official (most commonly the highway superintendent) to certify the request for reimbursement is consistent with the requirements of these programs. The signatory must understand that the municipality undertakes a legal obligation by signing the appropriate CP73, CP74, or CP 75 form. The signed certification means:
. project has a 10-year minimum service life or where the project is either: (1) microsurfacing; (2) paver placed surface treatment; (3) single course surface treatment involving chip seals or oil and stone; or (4) double course surface treatment involving chip seals or oil and stone; . project disbursements were made during the 18-month reimbursement period; . reimbursement has not been previously requested; . the project is for public purposes, not for the benefit of private parties; . for any street alteration project where street level pedestrian walkways cross curbs, curb ramps with detectable warnings were installed before the improvement or were installed during the alteration project and are ADA compliant; and . appropriate local or state design and construction standards were followed for all projects.
F. PROJECT DESIGN AND CONSTRUCTION STANDARDS
Municipalities must adopt appropriate local standards. All requirements or standards prescribed in the National Manual of Uniform Traffic Control Devices and NYS Supplement, Highway Law, Vehicle and Traffic Law, and other applicable State and local laws, codes, and regulations must be followed. The American Association of State Highway and Transportation Officials (AASHTO) standards for local streets and highways, NYSDOT highway standards, or other standards that are considered appropriate by the municipality, may be used for design of county, town, city, and village roads.
G. QUARTERLY PAYMENTS
CHIPS, EWR, and PAVE-NY reimbursements are issued by the Office of the State Comptroller (OSC) on or about the dates referenced on the CHIPS website (www.dot.ny.gov/programs/chips/payment-schedule). If your municipality is not currently receiving any OSC payments via EFT, submittal of an EFT Authorization Form to OSC is a strongly recommended method to receive CHIPS, EWR, and PAVE- NY payments. The form may be obtained on OSC’s website or the CHIPS website. The
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EFT Authorization Form will require the entry of your municipality’s 10 digit OSC Vendor Number.
H. LIMITS ON WORK COMPLETED/PERFORMED BY MUNICIPAL FORCES/COMPETITIVE BID REQUIREMENTS
Funds apportioned pursuant to Section 10(c)(4)(e) of State Highway Law for local street or highway projects shall be used to undertake work on a project either with the municipality’s forces (force account work) or by contract. If performed by force account, any labor, materials, and/or equipment shall be procured in accordance with all applicable procurement laws or requirements. For calculation purposes, construction cost includes all labor, equipment, and materials required to construct the project. It does not include the cost of design, right-of-way purchase, or construction inspection.
1. When the estimate for the construction work exceeds $100,000 but does not exceed $350,000, the work can be performed with the municipality’s forces or by contract let by competitive bid in accordance with the provisions of General Municipal Law Section 103.
2. When the estimate for the construction work exceeds $350,000, the work must be performed by contract let by competitive bid in accordance with the provisions of General Municipal Law Section 103.
I. COMPLIANCE WITH APPLICABLE LAWS
Municipalities must comply with all applicable federal, state, and local laws, rules, and regulations, including but not limited to the following:
Americans with Disabilities Act (ADA) Accessibility Compliance
The Americans with Disabilities Act (1990) is a law enacted by Congress that requires municipalities to review their CHIPS projects for ADA compliance per Title VI of the Civil Rights Act of 1987. The ADA also requires that states and municipalities develop an ADA Transition Plan to address all ADA deficiencies. For guidance on developing this plan, refer to http://www.fhwa.dot.gov/federal-aidessentials/catmod.cfm?id=32
The U.S. Department of Justice (DOJ) and the Federal Highway Administration (FHWA) issued updated guidance in 2013 that, whenever streets, roadways, or highways are “altered,” curb ramps (28 CFR 35.151) must be provided at locations where there are curbs or other barriers restricting access to sidewalks or other pedestrian walkways. Examples of “alterations” (changes that affect the usability of all or part of a facility) include additions of new asphalt layers, in-place recycling, microsurfacing, mill and fill overlays, new construction, rehabilitation, and reconstruction. Curb ramps and detectable warnings are required to be installed before or during the paving project. The detectable warnings are intended to alert vision-impaired individuals. For more guidance, refer to the following websites:
(1) http://www.fhwa.dot.gov/civilrights/programs/doj_fhwa_ta.cfm (2) https://www.dot.ny.gov/main/business-center/engineering/cadd- info/drawings/standard-sheets-us-repository/608-01_050116.pdf (3) www.access-board.gov
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When curb ramps are installed or upgraded to compliance as part of an “alteration” project, photos of the ramps must be submitted to your NYSDOT Regional CHIPS Representative. “Maintenance” applications do not require curb ramps.
New York State Complete Streets Act
The New York State Complete Streets Act was established in 2011 to enhance safe and convenient access to all roadway users regardless of age or abilities. As highlighted in the law, the inclusion of Complete Street design features (e.g. sidewalks, bike lanes, crosswalks, signage) on roadways has been associated with positive community health, economic and environmental benefits. The New York State Department of Transportation (NYSDOT) has developed an implementation process to inform State and locally- administered projects. Municipalities may develop local policies and processes to enable further progress in this area.
Per the NYS Complete Streets Law, Complete Street design must be considered for transportation projects on roads under NYSDOT’s jurisdiction (state routes, etc.) or for local road projects that receive federal and state funding and are subject to NYSDOT oversight. Exceptions to the law include asset management treatments intended to preserve the existing service life, including resurfacing, maintenance, or pavement recycling projects. The law does not apply where any of the following conditions exist:
• Bicyclists and pedestrians are prohibited by law; • The cost is disproportionate to the need, as determined by factors such as land use context, current project traffic volumes, and population density; • There is a demonstrated lack of need, as determined by factors such as land use, current project traffic volumes, or lack of community support; or • The use of design features would have an adverse impact on or be contrary to, public safety.
The CHIPS, EWR, and PAVE-NY Programs are not subject to the Complete Streets Law unless these funds are used as a match to a Federal or State-funded (State/local agreement required) capital project.
J. USE OF CHIPS, EWR and PAVE-NY FUNDS FOR LOCAL MATCH
CHIPS, EWR, and PAVE-NY funds can be used as the local match on other State or Federally funded highway capital projects. If these funds are used as the local match on Federal-aid projects, a municipality must comply with NYSDOT'S Local Projects Manual (LPM). In addition, for civil rights reporting requirements, please refer to NYSDOT’s web- based civil rights reporting system. As noted, if CHIPS, EWR, or PAVE-NY funds are used as a match to a Federal or State-funded (State/local agreement required) capital project, the project would be subject to the Complete Streets Law.
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K. TIMELY EXPENDITURE OF CHIPS, EWR AND PAVE-NY FUNDS
Municipalities are encouraged to (1) spend up to their full CHIPS, EWR, and PAVE-NY apportionment each State fiscal year (SFY) on capital projects eligible for reimbursement; and (2) submit reimbursement requests for those capital project expenditures to their NYSDOT Regional CHIPS Representative.
Unreimbursed funds from one or more previous SFYs are considered rollover funds that require annual reappropriation by the State Legislature. Municipalities are encouraged to minimize their accumulation of rollover funds. To the extent available, NYSDOT will utilize rollover funds first before reimbursements are made from the current year’s apportionment.
For unreimbursed expenditures eligible for reimbursement from a previous SFY “rollover” balance, reimbursement eligibility is limited to only those unreimbursed local expenditures made within an 18-month period prior to the scheduled quarterly payment date specified in the current NYSDOT payment notification letter. The specific 18-month look backdates for each quarterly payment will be identified in each quarterly letter.
III. PROGRAM CONTROLS
A. FINANCIAL AUDITS
The municipality shall permit the authorized representative of NYSDOT and/or the State Comptroller to inspect and audit all books, records, and accounts of the municipality pertaining to a project. It is important to keep consistent and accurate records on the CHIPS, EWR, and PAVE-NY Programs. It is the responsibility of the municipality to maintain consistent and accurate records of quality construction and accounting practices.
Project costs claimed or previously reimbursed which cannot be supported are subject to audit disallowance by NYSDOT, the State Comptroller, or Office of the Inspector General. Amounts paid to the municipality by NYSDOT which are subsequently dis-allowed are subject to recovery by NYSDOT from the municipality or, at the option of the State, will be offset or reduced against current or future reimbursement claims on the same or other projects.
B. PROGRAM REVIEWS
NYSDOT may periodically review CHIPS, EWR, and PAVE-NY projects for which reimbursement has been requested. This review effort could include site visits to completed projects. The municipality shall at all times make available its employees, records, and facilities to authorized NYSDOT representatives in connection with any such review.
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IV. QUALITY ASSURANCE (QA) PROCESS
A. REIMBURSEMENT REQUEST PROCESSING (from municipalities to the NYSDOT Regional Office):
NYSDOT requires that supporting documentation (as noted in Section II. D) be submitted to the Regional CHIPS Representative for verification before the municipally-certified Reimbursement Request Form submitted for payment may be processed.
B. RECORDS RETENTION:
In order to comply with Federal Tax Law, the municipality will retain the records described above for not less-than thirty-six (36) years, in a manner that ensures complete access for the applicable above described period either in hard copy or electronic format.
All supporting documentation must be retained by the Regional Office for six (6) years beyond the date of final payment on a project for audit purposes.
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