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HomeMy WebLinkAbout99-025~-„ ;CQLJNTY. ~E.`.BUTTE, STATE QF CALIFORNIA l~c'SOlUfion No. 99-25 RESOLUTION REQUESTING THAT CAI~TRANS IMPLEMENT AN ALTERNATIVh, PAYMENT PROCEDURE FOR PAVMEN'TS TO THE RIVER ROAD BRIDGE AT BIG CHICO CREEK CONTRACTOR AND AUTHORIZING THE BOARD OF SUPERVISORS AND AUDITOR TO ACCOMPLISH THIS ALTERNATIVE PAYMENT PROCEDURE WHEREAS, in order to facilitate payment to the conh~actor for the River Road Bridge at Big Chico Creek replacement project, County staff worked with Caltrans staff to develop a payment procedure that would minimize cash flow concerns to the County; and, WHEREAS, this Alternative Payment Procedure allows the contractor to be paid with advanced state funds allocated for the project; and, WHEREAS, $utte County has considered all other options for payment in a timely mannc;r and found them not to be feasible; and, WHEREAS, the project could be delayed if an Alternative Payment Procedure is not implemented: NOW, THEREFORE, BE I'h RESOLVID that the Board oCSupe~wisors of`thc County oCButte. hereb}% request that Caltrans implement an Alternative Payment Procedure for the River Road Bridge at Big Chico Creek replacement pr©jcct, which would allow payments to the contractor, based on cstimatccl pay amounts. BE IT FURTHER RESOLVED that the Auditor is authorized to execute revisions to the program supplement to State-Local Entity Master Agreement Na. 03-5912 to accomplish the Alternative Payment Procedure. PASSEll AND ADOPTED by the Board of Supervisors of the County of Butte, State of Califonua, this 23rd day of February _, 1999, by the following vote: AYES: Supervisors Beeler, Davis, Houx, ,Tosiassen and Chair Dolan NOES: None ABSENT: None NOT VOTING: None ~ '~. ~ f,..i-., ~~, _...~.~.. C1I 1R, E3oard of Supervisors Cout tv of Butte, State of California ATTEST: JOHN S. BLAKCLOCK. Chief Administrative Officer and Cleric of the Board ~ -~ "~ CI rk/Deputy .Local Programs Procedures pert!tershi~" LPP 98-OS Expedited Payment Procedures Reference: Local Assistance Program Guidelines, Chapter 15, "State and Local Transportation Partnership Program"; and Local Assistance Procedures Manual, Chapter 5, "Accountingllm-oices" Effective Date: January 1, 1999 Approved: ALAN P. GLEN Assistant Program Manager Design and Local Programs This LPP provides information on expedited payment procedures for local assistance projects. EXISTING PROCEDURES Procedures for reimbursement and other accounting functions for local federal-aid or State highway projects are handled through Caltrans' Local Programs Accounting (LPA). Local agency invoices that are submitted for reimbursement of participating project costs are routinely processed for payment within 25 days of receipt by LPA. Some current procedures allow for expediting the payment process. These procedures are as follows: A lump sum advance payment is available through the State and Local Transportation Partnership Program (SLTPP) when the State's share is $300,000 or less (Section 15.5 of the Local Assistance Program Guidelines and Chapter 5 of the Local Assistance Procedures Manual). • Local agencies may seek reimbursement of 100% of all eligible project costs in the SLTPP until the State share has been fully paid out (Section 15.5 of the Local Assistance Program Guidelines and Chapter 5 of the Local Assistance Procedures Manual). A lump sum advance payment is available for Planning, Programming, and Monitoring (PPM) funds, and Rideshare projects programmed in the 1998 State Transportation Improvement Program (STIP) when the State's share is $300,000 or less (Sections IV and VII of Caltrans' Procedures for Administering Local Grant Projects). Caltrans -Office of Local Programs January 1, 1999 LPP 98-OS Expedited Payment Procedures Page 2 NEVV PROCEDURES Two other expedited procedures (underlined below} are also available, but these are only available for use on an exception basis and are not described in the publications noted above. Accelerated Pa~rnent of Invoices through the State Controller's Office Payment of invoices through the State Controller's office may be accelerated upon payment of a fee by the local agency. Because of the labor intensive effort by both Caltrans and the State Controller's Office, this process is not to be used routinely. This acceleration can result in payment of invoices within five to ten days of receipt, a fee of $75 for five days and S10 for ten days. Normal invoicing through the State Controller will require about 25 days. A letter authorizing LPA to deduct the State Controller's Office fee should be sent to LPA with the invoice. Alternative Construction Progress Payment Procedure This procedure is designed to assist local agencies in the implementation of their local transportation projects when they are experiencing severe cash flow problems. These problems could be the result of either 1) unusual cash shortages within the local agency caused by economic or other conditions, 2) the need to provide up front payment on an unusually large federal or state transportation project or 3) cash drain to repair damages caused by flood, earthquake or other acts of nature. Most federal and. state funded local agency projects are invoiced in arrears. This means that local agencies must first make payments to their contractors and then request reimbursement from Caltrans for the costs. Since this process can take a month, some agencies have experienced severe cash flow problems when implementing their projects. Since this alternative procedure requires extra work by Caltrans and thus adversely affects other agency processing, it will be used only for the construction phase of projects and should be used only as a last resort. Recent construction contract administration process reviews have found that mast local agencies are not invoicing Caltrans for money that is due them in a timely manner. Local agencies that have money due to them from local assistance projects or programs, but have not invoiced in a timely manner, will not be eligible to use this procedure since this would not demonstrate a cash flow problem. LPA will provide the invoice format to be used for this expedited procedure. Local agencies should follow the following procedures when requesting use of these alternative payment procedures: Caltrans -Office of Local Programs January 1, 1999 LPP 98-OS Expedited Payment Procedures Page 3 Loco] agency governing board must pass a resolution requesting use of this procedure .for a specific project. The resolution must include the reasons for the request and a statement that all other options have been considered and that the project cannot be implemented, or will be delayed, unless this procedure is used. Local agency must also provide a written schedule of estimated monthly construction payments for the project. This resolution and estimated payment schedule should accompany the local agency's Request for Authorization to the District Local Assistance Engineer for the construction phase of their project. The estimated payment schedule will be forwarded to LPA through the headquarters Office of Local Programs Area Engineer. 2. After approval of the Request for Authorization and execution of the Program Supplement (which must include language allowing payment based on estimated costs), an invoice requesting payment for the first month's estimated payment (less local matching funds), may be submitted to LPA. This invoice can be submitted anytime within thirty calendar days prior to the date of the first month's payment to the contractor. This will allow payment to be made to the local agency at approximately the same time they are required to pay the contractor. 3. The estimated payment amount shown on second and subsequent invoices must reflect most current estimated payment to the contractor. In addition, the invoices will reflect the difference between the estimated payment claimed on the prior invoice and the actual payment made to the contractor. 4. Local agency must provide a final invoice and a final report of expenditures, showing actual project costs (including claims), within 184 days of project completion. This final invoice, the final report of expenditures, and final inspection fornz is sent to the District Local Assistance Engineer for written approval. If Caltrans has overpaid, a check for the amount of overpayment by Caltrans, along with a copy of the final invoice, must be sent to LPA within 34 calendar days of the final invoice approval by Caltrans. 6. Failure by a local agency to adhere to all the terms of this procedure will result in termination of the alternative payment procedure for that project. 7. For projects with Federal funds, only two month's payments will be made under these procedures if a PR-2 has not been signed by FHWA. LPA will reimburse local agencies far invoices based on estimated payments to the contractor in the same manner as normal reimbursement billings are paid. Caltrans -Office of Local Programs January 1, 1999