US Department of Transportation

FHWA PlanWorks: Better Planning, Better Projects

US Department of Transportation

FHWA Planworks: Better Planning, Better Projects

PRO-2: Approve Project Cost and Revenue Allocation Approach

Programming

Description:

This Key Decision establishes a consistent methodology for estimating project costs for both the long range transportation plan and the TIP. It also documents the specific requirements and restrictions associated with each funding source. By establishing consistent project cost methodology and revenue requirements as well as the overall available revenue from PRO-1, this ensures that the fiscal constraint for the plan and the TIP are consistent.

There is information developed in prior Key Decisions that informs this step.

Basics:

The first table describes the purpose and anticipated outcome of a Key Decision. If the decision is federally mandated, the purpose and outcome will relate to the legal intent.

The second table describes roles for key partners with legal decision making authority in the transportation process. The roles indicate the influence a partner can have on a decision, and show each partner where their input is most needed. For a full understanding of roles see the Partner Portal.

Purpose

To develop a method for estimating associated project costs and establish the criteria for revenue allocation. This should occur prior to the identification of specific deficiencies and potential solutions so that criteria are not targeted toward particular projects.

Outcome

A method for estimating project costs that can be used across the region by local governments, private developers, MPO staff, and others, so that project costs are developed uniformly to allow comparison.
A document identifying the restrictions and requirements for each for available revenue sources.

Partner Role Type Description
MPO Formal Decision Maker Approves a methodology for consistently identifying project costs and allocating revenue that is easily understood by partners and stakeholders.
FHWA/FTA Advisor Ensures project cost and revenue allocation are inclusive, consistent, and appropriate.
State DOT Advisor Ensures project costs and revenue allocation are reasonable and consistent with state plans and programs.
Resource Agency Observer Observe the project cost and revenue allocation development.
Public Transportation Operator(s) Advisor Ensures project costs and revenue allocation are reasonable and consistent with transit plans and programs.

Questions to Consider

Questions are a way to gather input from partners and stakeholders that can be used to inform the decision. Decision makers can discuss the questions provided to ensure a broad array of interests are considered to support a collaborative process. Questions also allow staff to collect stakeholder interests, ensure these are included in the decision, and provide a response based on the decision outcome. Although Public Transportation is not represented by a PlanWorks Application, the information provided may be useful in a collaborative transportation process.

Category Questions to Consider
Long Range Planning
  • Does the methodology ensure that fiscal constraint in the TIP is consistent with the long range plan?
  • Are the revenue sources broad enough to allow consideration of transportation and non-transportation solutions to address our vision and goals?
Programming
  • What approach will be used to allocate revenue and estimate project costs?
  • Is the approach to assigning costs and allocating revenues inclusive enough to cover costs, revenues, financing, implementation issues and potential benefits?
  • What costs and funding sources are associated with projects currently in development?
Corridor Planning
  • Are there active corridor planning studies that need to be informed about the methodology and criteria used?
Environmental Review
  • No specific questions
Bicycles and Pedestrians
  • How are the costs of bicycle and pedestrian improvements estimated, including when they are components of larger projects?
  • Are the cost estimates updated and generally in line with local experience?
Capital Improvement
  • How are planned capital improvement investments integrated into the cost methodology?
  • How are any cost-sharing arrangements accounted for with local capital improvement partners?
Economic Development
  • Does a mitigation strategy exist for potential adverse economic impacts? For example, the costs of any losses or displacements of business and residents.
Freight
  • Is the methodology inclusive enough to allow potential funding sources from freight stakeholders?
  • Is there an existing freight plan with cost-benefit analyses or other methodologies or cost estimates for comparison?
  • Does the approved methodology adequately assess the costs of freight projects?
Greenhouse Gas Emissions
  • How will GHG emission mitigation measures be reflected in project costs?
  • Should higher priority be given to GHG-reducing projects with significant payback? For example, through energy savings or revenue generation.
Health in Transportation
  • This Key Decision is not associated with the Application.
Human Environment and Communities
  • This Key Decision is not associated with the Application.
Land Use
  • This Key Decision is not associated with the Application.
Linking Planning and Operations
  • Does the cost methodology include long-term maintenance and operation of individual projects?
  • How are the costs associated with TSMO developed?
Natural Environment and Implementing Eco Logical
  • Have data and methods used to estimate the cost of regional ecological mitigation been considered?
Performance Measures
  • Does the revenue allocation criteria reflect performance target priorities?
Planning and Environment Linkages
  • This Key Decision is not associated with the Application.
Public Private Partnerships
  • Are there recommended methodologies for allocating revenue and identifying costs related to P3s?
  • Are mitigation actions anticipated for potential negative impacts of P3 projects? If so, have mitigation costs been considered?
  • Does information exist about the time period over which any P3 project will be funded or revenues will be generated?
Safety
  • Are there specific costs associated with safety improvements identified in the long range plan?
Stakeholder Collaboration
  • This Key Decision is not associated with the Application.
Transportation Conformity
  • This Key Decision is not associated with the Application.
Visioning and Transportation
  • This Key Decision is not associated with the Application.

Data

The following list of data may be needed to support the Key Decision. Practitioners collect this information for decision makers to consider. Although Public Transportation is not represented by a PlanWorks Application, the information provided may be useful in a collaborative transportation process.

Category Data to Consider
Long Range Planning
  • Vision and goals from the adopted long-range plan
  • Bridge / culvert replacement costs
Programming
  • Methods used for cost estimation from previous studies
  • Cost / benefit analysis
  • Data from research on similar regions to inform methodology approaches
  • Data on individual revenue resources and their requirements and restrictions
  • Methods used for cost estimation at the state level
  • Return on investment
  • Cost data associated with projects under development
Corridor Planning
  • Active corridor studies that should be informed
Environmental Review
  • No specific data
Bicycles and Pedestrians
  • Costs for pedestrian and bicycle Infrastructure improvements
Capital Improvement
  • Capital improvement investments that may contribute to project costs
  • Capital improvement partner input on the potential for cost sharing
Economic Development
  • Metrics and analytical methods to evaluate impact on economic competitiveness
Freight
  • Methodologies and allocation priorities from existing freight plans
Greenhouse Gas Emissions
  • Cost of various GHG emissions mitigation measures that can be applied during project construction or development
  • Projections of revenues or savings, if any, from specific GHG-reducing projects
Health in Transportation
  • This Key Decision is not associated with the Application.
Human Environment and Communities
  • This Key Decision is not associated with the Application.
Land Use
  • This Key Decision is not associated with the Application.
Linking Planning and Operations
  • Operations and maintenance costs relevant to each project and/or program type
  • Cost and value of mitigation
Natural Environment and Implementing Eco Logical
  • Methods used in ecological planning to compare the cost of conservation and restoration opportunities
  • Methods used to develop a crediting strategy for mitigation
Performance Measures
  • Performance targets
  • Performance measurement factors
Planning and Environment Linkages
  • This Key Decision is not associated with the Application.
Public Private Partnerships
  • Methodologies for allocating revenue and identifying costs of P3 projects
  • Assessment of the potential negative impacts of P3 projects and the costs to mitigate those impacts
Public Transportation
  • Operating and capital costs for public transportation and other demand-management strategies
Safety
  • Costs and funding sources for specific safety improvements
Stakeholder Collaboration
  • This Key Decision is not associated with the Application.
Transportation Conformity
  • This Key Decision is not associated with the Application.
Visioning and Transportation
  • This Key Decision is not associated with the Application.

Examples

In - depth case studies of successful practices in collaborative decision making were used to develop the Decision Guide.Links in this table point to a specific paragraph or section of a case study that supports a Key Decision. It is not necessary to read through an entire case study to find the example; however, full versions are available in the Library.

PlanWorks Case Study Examples:
I-5 Beltline Interchange Plan - Using Community Values as Performance Measures pro-2

Other Examples:
None.