Lease Revenue Bonds
State Highway Operations and Protection Program (SHOPP)
Intent or Criteria : Funds shall be available for projects in the State Highway Operations and Protection Program to augment funds otherwise available for this purpose from other sources. Funds will be allocated by the California Transportation Commission (CTC), upon appropriation by the Legislature, in accordance with existing SHOPP processes.
Accountability Plan: Projects are tracked as part of the normal SHOPP process.
1. Front-End Accountability:
For the State Highway Operation and Protection Program (SHOPP), Front-End Accountability begins with the project selection processes and the presentation of a program to be funded from bond proceeds. Consistent with current SHOPP project selection and programming processes, a portfolio of vehicle detection, ramp metering, pavement rehabilitation, auxiliary lanes, truck climbing lanes, building projects and other operational improvement projects are presented to the California Transportation Commission (Commission) for approval. The program can be amended with Commission approval.
2. In-Progress Accountability:
Project development starts with a project work plan that identifies project initiation and development activities. The work plan translates the baseline agreements into necessary activities with desired outcomes. The project manager determines the disciplines needed to develop the project and assembles a project development team. Project teams develop and evaluate alternatives, help direct studies, make recommendations and carry out the project work plan. Transportation projects are typically broken into four distinctive components or “phases” to facilitate decision making and approval processes: “environmental phase”, “design or plans, specifications and estimates phase”, “right of way phase”, and “construction phase”. A closeout process is employed at the end of each of these phases, but this process is most prominent at the end of the construction phase. Once the construction has been completed, the project “closeout phase” is initiated to address outstanding construction claims, assemble a project history file and complete the project’s as-built plans, perform final right of way environmental mitigation activities, develop lessons learned, and complete a final project financial statement.
The “Environmental Phase” concludes with the preparation and approval of the project report and environmental document. The Project Report in conjunction with the environmental document, provide a record of the decision-making process regarding a project’s ultimate scope, schedule and cost. The project report contains information about the project’s background, need and purpose, alternatives investigated and issues encountered in the engineering and environmental investigations. The environmental document includes a range of alternatives that were considered, and the reasons why certain alternatives were set aside. The environmental document identifies all significant adverse effects, and related mitigation measures, of each reasonable alternative.
The design or plans, specifications and estimates (PS&E) phase delivers documents that contain construction details, contract provisions, permits, agreements and certifications required to advertise, award and administer a construction contract. The “Design (PS&E) Phase” concludes with an estimate of cost and a projected schedule against which contractors’ bids are evaluated and project budget and completion schedules are established.
As the construction details for the project are developed, necessary permits and right of way access rights are obtained. Right of Way processes (Right of Way Phase) assure that all property rights are sufficient, all utility conflicts are avoided or mitigated, all clearance and demolition work are addressed and that control of the right of way is achieved within the cost, scope and schedule of the project. Right of Way Certification is a written statement summarizing the status of each right of way related matter pertaining to a proposed construction project so that the project is ready for contract.
The final project documents and bid package are then assembled for advertising. After the construction contractors’ bids are opened, the contract is awarded to the lowest responsible bidder. Contract award and approval authorizes construction of a project (Construction Phase). The contractor’s bid amount and proposed number of working days become the critical elements of the project’s cost and schedule baselines for the construction phase. If changes are required, the project team prepares engineering details and calculations, and agreements are negotiated with the contractor to implement needed changes.
For the SHOPP Program, In-Progress Accountability involves managing project progress against established baselines. Progress is monitored closely during all phases of a project. Schedule and budget elements of each project are reported on a regular basis to project stakeholders. Changes are documented and approvals are obtained to continue with the development and execution of the work. The bond accountability website includes a list of projects included in the program, cost and schedule baseline information for each project, and a status report that is update at least semi-annually.
3. Follow-Up Accountability (Audit):
The project is not complete until the final construction contract payment is made and contractor’s claims are resolved, project history file and as-built plans are completed, and final right of way activities and environmental mitigation are accomplished (Close-out Phase). A close-out report is produced to document the financial, scope, and the performance state of the completed project, as well as document lessons learned and best practices for use in the development of future projects. This process is referred to as the close-out process, and constitutes the typical follow-up accountability steps for State highway transportation projects.
Follow-Up Accountability for SHOPP Program projects involves post-project assessments. This assessment will be made against the baselines established during the project nomination process.