ACTION REQUESTED:
Title
Communication from the City Manager and Director of Public Works with a Request to AUTHORIZE Staff to Submit an APPLICATION for the FEDERAL HIGHWAY ADMINISTRATION’S LOCAL EMPOWERMENT FOR ACCELERATING PROJECTS (LEAP) PILOT PROGRAM. (All Council Districts)
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BACKGROUND: The U.S. Department of Transportation’s Federal Highway Administration (FHWA) has announced a nationwide Solicitation for Interest and Participation in a Direct Aid Pilot Program. The Local Empowerment for Accelerating Projects (LEAP) Pilot Program will permit, on an experimental basis, direct delivery of federal-aid funding for up to five Local Public Agencies (LPAs). Selected LPAs will enter into agreements with their respective State DOTs and FHWA under Section 1420 of the Fixing America’s Surface Transportation Act (FAST Act) that will set forth the terms of the parties’ responsibilities, and the amount of Federal-aid highway funds to be transferred to the LPA from the state’s apportionment.
The solicitation period has a very short turnaround time, with applications for the program due to be received by November 25, 2016. Staff anticipates a six-month FHWA review period for applications.
In effect, the LEAP program will remove the intermediary level of oversight and approval between the funding source (FHWA) and the LPA. Public Works staff believes there is significant time savings in this approach, which will translate to cost savings and more efficient project delivery. For example, if the City holds a contract, rather than the State of Illinois (IDOT), the contractor will likely get paid weeks, if not months sooner. This may improve efficiency in contractor bids. Additionally, state processes that typically take 3 months per limited-item review could be accelerated to shorter review periods with direct City-FHWA discussions. Finally, Public Works is highly interested in working toward even more innovations to stretch funding for roads, which may be hindered by the IDOT review in the present system.
Federally-funded projects that could be positively impacted and present opportunity for economical and time-saving benefits include the following, already approved for Federal dollars:
• Northmoor Road reconstruction, Allen Road to University Street
• Alta Road and Radnor Road Roundabout Construction
• MacArthur Highway Bridge Reconstruction
• Rock Island Trail Bridge (Over US 150) Retrofit
• Pioneer Parkway Extension
The current application would not preclude the City of Peoria from applying for additional FHWA grants and using those potential grant funds for additional projects within this agreement.
FINANCIAL IMPACT: If selected, the City would be required to transfer one percent (1%) of funds that would ordinarily flow through the State to the FHWA for administration of this pilot program. For example, we normally receive a 70% share of construction funding via IDOT for federally supported projects, such as Northmoor Road. If selected, we would receive 69.3% funding, and 0.7% of the funding amount (1% of 70%) would go to FHWA as an administrative fee. Engineering Staff strongly believes that project savings realized from the flexibility of local bidding, scheduling, and prompt payment to contractors will more than cover this administrative fee.
NEIGHBORHOOD CONCERNS: N/A
IMPACT IF APPROVED: Staff will submit the application on or before November 25, 2016.
IMPACT IF DENIED: Staff will not apply for this program.
ALTERNATIVES: N/A
EEO CERTIFICATION NUMBER: N/A
WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2014 - 2029 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?
1. Financially Sound City Government, Effective City Organization
2. Grow Peoria: Businesses, Jobs, and Population
WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?
1. Have an efficient government.
2. Invest in our infrastructure and transportation.
3. Keep taxes and fees competitive.
DEPARTMENT: Public Works