CHIPS, EWR A ND PAVE-NY PROGRAM GUIDELINES NYSDOT …

1 Prepared by CHIPS, EWR AND PAVE-NY PROGRAM GUIDELINES Revised NYSDOT April 2020 Page 1 of 9 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.

2 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: Prepared by CHIPS, EWR AND PAVE-NY PROGRAM GUIDELINES Revised NYSDOT April 2020 Page 2 of 9 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.

3 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.

4 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.

5 Prepared by CHIPS, EWR AND PAVE-NY PROGRAM GUIDELINES Revised NYSDOT April 2020 Page 3 of 9 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 .

6 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 ( , costs of issuance) on local bonds issued to finance eligible project costs.

7 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.

8 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. Prepared by CHIPS, EWR AND PAVE-NY PROGRAM GUIDELINES Revised NYSDOT April 2020 Page 4 of 9 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.

9 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.

10 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.