Difference between revisions of "141.1 Cost Share Program"

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m (Per Resource Management, article updated and retitled. Old article (from May 2010), Partnership Funding Programs, had no appreciable history.)
 
m (→‎141.1.3 Application Process: Updated Cost Share Program application link)
 
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The purpose of the Cost Share Program is to build partnerships with local entities to pool efforts and resources to deliver state highway and bridge projects. MoDOT allocates Cost Share funds based on the [http://www.modot.mo.gov/about/commission/index.htm Missouri Highways and Transportation Commission’s] approved funding distribution of which at least $5 million is set aside for projects that encourage economic development. Economic development set-aside balances in excess of $25 million are available for any Cost Share project. Projects are selected by the Cost Share Committee, which consists of the Chief Engineer, Chief Financial Officer and the Director of Program Delivery.
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The purpose of the Cost Share Program is to build partnerships with local entities to pool efforts and resources to deliver state highway and bridge projects. The Missouri Department of Transportation (MoDOT) allocates Cost Share funds based on the [https://www.modot.org/missouri-highways-and-transportation-commission-0  Missouri Highways and Transportation Commission’s (MHTC)] approved funding distribution formula. Ten percent (10%) is set aside for projects that demonstrate economic development through job creation. Projects are selected by the Cost Share Committee, which consists of the Chief Engineer, Chief Financial Officer, Assistant Chief Engineer, and two members selected by the Director. They are then recommended for approval by the MHTC via a Statewide Transportation Improvement Program (STIP) amendment.  
 
[[image:141.1.jpg|right|275px]]
 
[[image:141.1.jpg|right|275px]]
  
 
===141.1.1 Eligible Projects===
 
===141.1.1 Eligible Projects===
The Cost Share Program provides financial assistance to public and private applicants for state highway and bridge projects satisfying a transportation need.
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The Cost Share Program provides financial assistance to public and private applicants for state highway and bridge projects satisfying a transportation need.  
  
===141.1.2 Types of Cost Share Projects===
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===141.1.2 Level of Participation===
  
'''Cost Share'''
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When project sponsors are willing to partner with MoDOT, MoDOT matches their investment up to fifty percent (50%) of the project cost.  MoDOT works in cooperation with the Department of Economic Development with project sponsors to determine when targeted investments can be made to create jobs and may provide up to one hundred percent (100%) of the project cost.  Retail development projects do not qualify as economic development projects that create jobs.
  
MoDOT participates up to 50 percent of the total project costs on the state highway system. The amount of Cost Share funds allocated to a project is reduced by the estimated cost of activities performed by MoDOT such as preliminary engineering, right of way incidentals and construction inspection.
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MoDOT’s participation includes the amount of Cost Share funds allocated to the project, district STIP or Operating Budget funds and activities performed by MoDOT such as preliminary engineering, right of way incidentals and construction engineering.
  
'''Economic Development'''
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Applicants are required to deposit their share of project costs with MoDOT as specified in the project agreement which is typically prior to the project being let.
  
MoDOT participates up to 100 percent of the total project costs on the state highway system, if the project creates jobs that have been verified by the Department of Economic Development. Retail development projects are not eligible. The amount of Economic Development Cost Share funds allocated to a project is reduced by the estimated amount of activities performed by MoDOT such as preliminary engineering, right of way incidentals and construction inspection. The project agreement will identify requirements for returning funds if jobs are not created as planned.
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If applicants provide federal funds (including earmarks) as part of their portion of the project costs, they must, if applicable, also provide the cash for matching the federal funds.
If a REMI (Regional Economic Modeling, Inc.) analysis is being considered, contact Resource Management.
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Applicants will be responsible for any cost overruns.
  
 
===141.1.3 Application Process===
 
===141.1.3 Application Process===
The applicant works with the appropriate MoDOT district contact to determine the project scope and costs. The district assists the applicant in preparing the Request for Environmental Services (RES) and the Cost Share application. The [http://www.modot.mo.gov/partnershipdevelopment/application.htm application is available online].
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The applicant works with the appropriate MoDOT district contact to determine the project scope and costs. The district assists the applicant in preparing the Request for Environmental Services (RES) and the Cost Share. The [https://www6.modot.mo.gov/Partnership/login.aspx application is available online].
  
A letter of support from the district engineer must be submitted with the application. The letter of support shall explain in detail the significance of the project and the impact it could have on the department. A letter of support from the [http://www.modot.mo.gov/plansandprojects/long-range_plan/documents/rpcmpo08-06.pdf metropolitan planning organization (MPO) or regional planning commission (RPC)] is also required.
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The letter of support shall explain in detail the significance of the project and the impact it could have on the state transportation system. A letter of support from the [http://www.modot.mo.gov/plansandprojects/long-range_plan/documents/rpcmpo08-06.pdf metropolitan planning organization (MPO) or regional planning commission (RPC)] is also required.
  
The items listed below must be submitted to Resource Management by the established deadline. Applications received after the deadline will be considered at the next Cost Share Committee meeting. Application deadlines are posted on the [http://www.modot.mo.gov/partnershipdevelopment/dates.htm Partnership Development website].
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The items listed below must be submitted to Financial Servies by the established deadline. Applications received after the deadline will be considered at the next Cost Share Committee meeting. Application deadlines are posted on the [http://www.modot.mo.gov/partnershipdevelopment/dates.htm Partnership Development website].
  
 
:* Signed and completed application
 
:* Signed and completed application
Line 28: Line 29:
 
:* Traffic models or traffic reports
 
:* Traffic models or traffic reports
 
:* Project map
 
:* Project map
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Note:  If the applicant is planning to use the Community Development Block Grant (CDBG) Program as match for the Cost Share Program, the CDBG application must be submitted to the Department of Economic Development as follows:
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:* General Infrastructure applications must be submitted by April 1st.  Applications are available at https://ded.mo.gov/programs/cdbg/general-infrastructure.
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:* Industrial Infrastructure applications must be submitted by the Cost Share application deadline.  Applications are available at https://ded.mo.gov/programs/cdbg/industrial-infrastructure-grant.
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:* Please contact the Department of Economic Development at (573) 526-6708 to determine the appropriate application to submit.
  
 
===141.1.4 Review Process===
 
===141.1.4 Review Process===
 
Each application is reviewed for verification of the following criteria:
 
Each application is reviewed for verification of the following criteria:
  
:*The total project costs are in excess of $200,000.
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:* The project is on the state highway system.
:* The total project costs include preliminary engineering, right of way, utilities, construction and construction inspection.
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:* The total project costs are in excess of $200,000.
:* The applicant agrees to provide their share of the total project costs on the state highway system and full funding for any portion of the project not on the state highway system.
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:* The total project costs include preliminary engineering, right of way acquisition and incidentals, utilities, construction and construction inspection.
:* The Cost Share funding request is not in excess of $20 million and is limited to $5 million per year. (Projects too costly to be eligible for the Cost Share program may be considered for special cost participation from other statewide funding sources. Contact Resource Management for additional information.)
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:* The applicant agrees to provide their share of the total project costs.
:* Additional funds, such as Federal Earmarks, clearly obtained or held by the applicant are credited to their contribution. All other Federal Earmarks are applied to the total project costs.
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:* Generally, the Cost Share funding per project is limited to $10 million in total and $2.5 million per year. However, projects exceeding this limit can be considered based on factors such as project need, the opportunity for economic development and the willingness of the local partners to be flexible and bring resources to the table. Applicants are encouraged to work with the district and Financial Services to explore options.
:* If debt financing is used to accelerate the Cost Share project to complete it earlier than funding is available from MoDOT, the applicant must pay and not include the debt-financing costs in the total project costs. The debt-financing costs include items such as bond counsel, underwriter, financial advisor fees, application fees and interest.
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:* Projects that significantly expand the state highway system or increase maintenance costs for MoDOT must have pre-approval by the Chief Engineer prior to submittal of the application to MoDOT. If a project significantly expands the state highway system or increases maintenance costs, the MHTC may seek an agreement for the project sponsor to either: 1) accept the transfer of ownership of a portion of the existing state highway system in an amount of miles as determined by the MHTC, or 2) payment of all increased maintenance costs.
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:* If debt financing is used to accelerate the project and complete it earlier than funding is available from MoDOT, the applicant must pay and not include the debt-financing costs in the total project costs. The debt-financing costs include items such as bond counsel, underwriter, financial advisor fees, application fees and interest.
  
After initial verification of the application, Resource Management forwards the application to the Cost Share Pre-approval Team.
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After initial verification of the application, Financial Services forwards the application to the Cost Share Staff Review Team.  
  
The Cost Share Pre-approval Team consists of staff from Resource Management, Right of Way, Transportation Planning, Design, Traffic and Chief Counsel’s Office. The team is responsible for submitting comments and a recommendation to Resource Management on or before the specified deadline. The Cost Share Pre-approval Team meets with district staff to discuss the application, resolve any outstanding issues and determine the team’s recommendation to the Cost Share Committee. The Cost Share Pre-Approval Team ranks each application based on the following criteria:
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The Staff Review Team consists of staff from Financial Services, Transportation Planning, Highway Safety and Traffic, Design (including Right of Way staff), Chief Counsel’s Office and Department of Economic Development. The team is responsible for submitting comments and a recommendation to Financial Services on or before the specified deadline. The Staff Review Team meets with district staff to discuss the application, resolve any outstanding issues and determine the team’s recommendation to the Cost Share Committee. The Staff Review Team prioritizes each application based on the following criteria:  
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:* Transportation Need (including impacts to the state highway system)
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:* Public Benefit
 
:* Economic Development
 
:* Economic Development
:* Transportation Need
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:* Applicant’s Share of Total Project Costs.
:* Public Benefit
 
  
Resource Management prepares the Cost Share notebooks, which include the meeting agenda, project review sheets, project maps and team recommendations. Notebooks are distributed to the Cost Share Committee members one week prior to the meeting.
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Financial Services prepares the Cost Share documents, which include the meeting agenda, project review sheets, project maps and team recommendations. Documents are distributed to the Committee members one week prior to the meeting.  
  
 
===141.1.5 Approval Process===
 
===141.1.5 Approval Process===
The district presents the team’s recommendation for each application to the Cost Share Committee.
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The district presents the team’s recommendation for each application to the Committee.
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The Committee recommends, denies or requests additional information for each application. Recommended projects are included in a subsequent STIP amendment for MHTC approval.  
  
The Cost Share Committee approves, denies or requests additional information for each application.
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Financial Services provides a letter for the district engineer to send the applicant informing them  of the Cost Share Committee’s decision and discussion points. If additional information is needed, Financial Services will compile the requested information and provide it to the Committee.  
  
Resource Management provides a letter for the district engineer to send the applicant informing them of the Cost Share Committee’s decision and discussion points. If additional information is needed, Resource Management will compile the requested information and provide it to the Cost Share Committee.
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'''Project Agreement and Programming Process'''
  
:'''Project Agreement and Programming Process'''
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The district works with the approved applicant to draft the Cost Share agreement, using the form FS08 found on the eAgreements website at http://sp/sites/eagreements/Agreements/Forms/My%20Agreements.aspx. Agreements identify project costs, each party’s financial responsibility, the maximum amount of approved Cost Share funding and the year the funding is available. The district sends the agreement to the “Agreements Review Group” for review as outlined in the eAgreements review process. The district and applicant address all comments and make appropriate changes to the agreement. The agreement is sent to the Chief Counsel’s Office for a final review before the applicant executes the agreement.
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The applicant must execute the agreement within six months after the recommendation of the Committee to prevent the funds from expiring and being allocated to another project, unless an extension is approved by the Committee.
  
:The district works with the approved applicant to draft the Cost Share agreement, using the form RM08 found on the [http://wwwi/intranet/cc/contracts.asp?f=RM&nav=modot Chief Counsel’s Office intranet page]. Agreements include the maximum amount of approved Cost Share funding and the year the funding is available. The district sends the agreement to the “Agreements” list in Lotus Notes for review. The district and applicant address all comments and make appropriate changes to the agreement. The agreement is sent to the Chief Counsel’s Office for a final review before the applicant executes the agreement.
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If the project is within an MPO, the district and applicant will coordinate with the MPO to amend the Transportation Improvement Program (TIP) at this time.  
  
:The applicant must execute the Cost Share agreement within six months after the approval of the Cost Share Committee to prevent the funds from expiring and being allocated to another project, unless an extension is approved by the Cost Share Committee.
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Once the applicant executes the agreement, the district coordinates with Transportation Planning to amend the project to the STIP. Once the month is set for the project to be amended to the STIP, the district sends the agreement to the Chief Counsel’s Office to sign as to form.  Financial Services then forwards the agreement to the Commission Secretary’s Office for approval and execution at the same time the project is amended to the STIP. The funds are contingent upon an executed agreement between the applicant and the MHTC.  The execution and distribution of the agreement will follow the eAgreements process as outlined in the eAgreements Sharepoint Site Manual.
  
:If the project is within an MPO, the MPO amends the Transportation Improvement Program (TIP) at this time.
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Project programming is complete after the MHTC and Federal Highway Administration approve the STIP and the MPO approves the TIP, for projects in an MPO area.  
  
:Once the applicant executes the agreement (six copies), the district submits the agreement to Resource Management. The district coordinates with Transportation Planning to amend the project to the STIP. Once the month is set for the project to be amended to the STIP, Resource Management sends the agreement to the Chief Counsel’s Office to sign as to form. The Chief Counsel’s Office then forwards the agreement to the Commission Secretary’s Office for approval and execution at the same time the project is amended to the STIP. The funds are contingent upon an executed agreement between the applicant and the Missouri Highways and Transportation Commission (MHTC). Resource Management forwards the fully executed agreement to the district (three copies, two to be forwarded to the applicant), Controller’s Division (one copy), Transportation Planning (one copy) and retains one copy.
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'''Project Delivery Process '''
  
:'''Project Delivery Process'''
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The district ensures the design, right of way, utility and construction activities comply with the Engineering Policy Guide (EPG).
  
:The district ensures the design, right of way and construction activities comply with the Engineering Policy Guide (EPG).
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Financial Services works with Transportation Planning to determine funds utilized on projects (at bid award and/or project completion) and returns any excess funds to the Cost Share Program.
  
Resource Management works with Transportation Planning and Controller’s Division to determine actual Cost Share funds utilized on projects (at bid award and/or project completion) and returns any excess funds to the Cost Share program.
 
  
 
[[Category:141 Partnership Development]]
 
[[Category:141 Partnership Development]]

Latest revision as of 07:03, 29 March 2019

The purpose of the Cost Share Program is to build partnerships with local entities to pool efforts and resources to deliver state highway and bridge projects. The Missouri Department of Transportation (MoDOT) allocates Cost Share funds based on the Missouri Highways and Transportation Commission’s (MHTC) approved funding distribution formula. Ten percent (10%) is set aside for projects that demonstrate economic development through job creation. Projects are selected by the Cost Share Committee, which consists of the Chief Engineer, Chief Financial Officer, Assistant Chief Engineer, and two members selected by the Director. They are then recommended for approval by the MHTC via a Statewide Transportation Improvement Program (STIP) amendment.

141.1.jpg

141.1.1 Eligible Projects

The Cost Share Program provides financial assistance to public and private applicants for state highway and bridge projects satisfying a transportation need.

141.1.2 Level of Participation

When project sponsors are willing to partner with MoDOT, MoDOT matches their investment up to fifty percent (50%) of the project cost. MoDOT works in cooperation with the Department of Economic Development with project sponsors to determine when targeted investments can be made to create jobs and may provide up to one hundred percent (100%) of the project cost. Retail development projects do not qualify as economic development projects that create jobs.

MoDOT’s participation includes the amount of Cost Share funds allocated to the project, district STIP or Operating Budget funds and activities performed by MoDOT such as preliminary engineering, right of way incidentals and construction engineering.

Applicants are required to deposit their share of project costs with MoDOT as specified in the project agreement which is typically prior to the project being let.

If applicants provide federal funds (including earmarks) as part of their portion of the project costs, they must, if applicable, also provide the cash for matching the federal funds.

Applicants will be responsible for any cost overruns.

141.1.3 Application Process

The applicant works with the appropriate MoDOT district contact to determine the project scope and costs. The district assists the applicant in preparing the Request for Environmental Services (RES) and the Cost Share. The application is available online.

The letter of support shall explain in detail the significance of the project and the impact it could have on the state transportation system. A letter of support from the metropolitan planning organization (MPO) or regional planning commission (RPC) is also required.

The items listed below must be submitted to Financial Servies by the established deadline. Applications received after the deadline will be considered at the next Cost Share Committee meeting. Application deadlines are posted on the Partnership Development website.

  • Signed and completed application
  • District Engineer’s support letter
  • MPO’s or RPC’s support letter
  • Traffic models or traffic reports
  • Project map

Note: If the applicant is planning to use the Community Development Block Grant (CDBG) Program as match for the Cost Share Program, the CDBG application must be submitted to the Department of Economic Development as follows:

  • Please contact the Department of Economic Development at (573) 526-6708 to determine the appropriate application to submit.

141.1.4 Review Process

Each application is reviewed for verification of the following criteria:

  • The project is on the state highway system.
  • The total project costs are in excess of $200,000.
  • The total project costs include preliminary engineering, right of way acquisition and incidentals, utilities, construction and construction inspection.
  • The applicant agrees to provide their share of the total project costs.
  • Generally, the Cost Share funding per project is limited to $10 million in total and $2.5 million per year. However, projects exceeding this limit can be considered based on factors such as project need, the opportunity for economic development and the willingness of the local partners to be flexible and bring resources to the table. Applicants are encouraged to work with the district and Financial Services to explore options.
  • Projects that significantly expand the state highway system or increase maintenance costs for MoDOT must have pre-approval by the Chief Engineer prior to submittal of the application to MoDOT. If a project significantly expands the state highway system or increases maintenance costs, the MHTC may seek an agreement for the project sponsor to either: 1) accept the transfer of ownership of a portion of the existing state highway system in an amount of miles as determined by the MHTC, or 2) payment of all increased maintenance costs.
  • If debt financing is used to accelerate the project and complete it earlier than funding is available from MoDOT, the applicant must pay and not include the debt-financing costs in the total project costs. The debt-financing costs include items such as bond counsel, underwriter, financial advisor fees, application fees and interest.

After initial verification of the application, Financial Services forwards the application to the Cost Share Staff Review Team.

The Staff Review Team consists of staff from Financial Services, Transportation Planning, Highway Safety and Traffic, Design (including Right of Way staff), Chief Counsel’s Office and Department of Economic Development. The team is responsible for submitting comments and a recommendation to Financial Services on or before the specified deadline. The Staff Review Team meets with district staff to discuss the application, resolve any outstanding issues and determine the team’s recommendation to the Cost Share Committee. The Staff Review Team prioritizes each application based on the following criteria:

  • Transportation Need (including impacts to the state highway system)
  • Public Benefit
  • Economic Development
  • Applicant’s Share of Total Project Costs.

Financial Services prepares the Cost Share documents, which include the meeting agenda, project review sheets, project maps and team recommendations. Documents are distributed to the Committee members one week prior to the meeting.

141.1.5 Approval Process

The district presents the team’s recommendation for each application to the Committee.

The Committee recommends, denies or requests additional information for each application. Recommended projects are included in a subsequent STIP amendment for MHTC approval.

Financial Services provides a letter for the district engineer to send the applicant informing them of the Cost Share Committee’s decision and discussion points. If additional information is needed, Financial Services will compile the requested information and provide it to the Committee.

Project Agreement and Programming Process

The district works with the approved applicant to draft the Cost Share agreement, using the form FS08 found on the eAgreements website at http://sp/sites/eagreements/Agreements/Forms/My%20Agreements.aspx. Agreements identify project costs, each party’s financial responsibility, the maximum amount of approved Cost Share funding and the year the funding is available. The district sends the agreement to the “Agreements Review Group” for review as outlined in the eAgreements review process. The district and applicant address all comments and make appropriate changes to the agreement. The agreement is sent to the Chief Counsel’s Office for a final review before the applicant executes the agreement.

The applicant must execute the agreement within six months after the recommendation of the Committee to prevent the funds from expiring and being allocated to another project, unless an extension is approved by the Committee.

If the project is within an MPO, the district and applicant will coordinate with the MPO to amend the Transportation Improvement Program (TIP) at this time.

Once the applicant executes the agreement, the district coordinates with Transportation Planning to amend the project to the STIP. Once the month is set for the project to be amended to the STIP, the district sends the agreement to the Chief Counsel’s Office to sign as to form. Financial Services then forwards the agreement to the Commission Secretary’s Office for approval and execution at the same time the project is amended to the STIP. The funds are contingent upon an executed agreement between the applicant and the MHTC. The execution and distribution of the agreement will follow the eAgreements process as outlined in the eAgreements Sharepoint Site Manual.

Project programming is complete after the MHTC and Federal Highway Administration approve the STIP and the MPO approves the TIP, for projects in an MPO area.

Project Delivery Process

The district ensures the design, right of way, utility and construction activities comply with the Engineering Policy Guide (EPG).

Financial Services works with Transportation Planning to determine funds utilized on projects (at bid award and/or project completion) and returns any excess funds to the Cost Share Program.