alternative acquisition/delivery...

Alternative Acquisition/Delivery Methods

PRESENTED BY:

Dave Leighow, FHWA

ALTERNATIVE ACQUISITION / DELIVERY METHODS

Looking Down The Road!


• Implementer – This is the way we need to do it – Let’s be careful and not take

too many risks – I don’t know about that; we’ve

always done it this way – Let’s stick to the “tried and

true”

Are you an implementer or a pathfinder?

• Pathfinder – Let’s consider some other

options – Sure, it may be risky, be we can

manage the risk – The old way has just not been

efficient for us – We can save time and money if

we are willing to give this a try


• Transportation Planning – ROW is at the table – ROW “in the corridor” – Demographics – Regional Impacts

Start With An Essential Linkage

• NEPA – Communities – Neighborhoods – Residents – Businesses


• 23 USC 108(c) – Acquire pre-NEPA clearance – Use State funds to acquire – State has planning process – Governor certified – Federal funds

reimbursement

Consider This: Early Acquisition (per MAP-21)

• 23 USC 108(d) – EA project in STIP – EA project NEPA cleared – Fed $$$ authorized – Acquire w/Fed $$$ – 20 years to use


• “Walk in the other fella’s shoes!”

• Design team includes ROW from the start

• Plan changes reduced • Engineers:

“Understand ROW’s requirements!”

• ROW: “Understand the project constraints!”

Get Design and ROW in Sync


Be Creative in ROW Certification

• Cert 1: ROW clear, project can proceed to ad. • Cert 2: ROW not clear, but have right of entry • Cert 3: ROW not clear, may be some displacees

Remember: “It’s all about risk management!”


Know the Risk—Manage It!

• Cert 1: Risk free • Cert 2: Limited risk; manage terms of the ROE • Cert 3: Several risks, but manageable

» Contractor claims if ROW is not clear on schedule » Adverse impacts on property owners, displaced persons » Noncompliance with Federal and State requirements

• All ROW Cert risks can be managed, if properly planned


Here’s What a Proactive Program Looks Like


What does the Road Look Like Now?


David Leighow Right of Way Program Manager

FHWA – Office of Reality (503) 316-2543

Email: [email protected]

mailto:[email protected]

Alternative Acquisition/Delivery Methods

PRESENTED BY:

Hugh Hadsock, FHWA James Olschewski, UDOT


IF WE ARE NOT BUILDING ROADS

THEN WE ARE BUILDING ROAD BLOCKS


EVERY DAY COUNTS INITIATIVE

These are methods and tools within the Uniform Act that will help you save

Time and Money


What different type of Incentive Programs are currently available?

Incentive for Acquisition

Incentive for Relocation

Pilot Program for Single Payment Relocation


Incentive for Acquisition

Incentive for signing with 1st 30 days either: Signed Contract Signed Right to Enter and Construct (ROO)


6 Different Projects Signed Contract within 30 days

35 Owners Signed (including commercial properties)

Signed Right of Entry within 30 days

25 Owners Signed (including commercial properties)

If only one (1) day per ownership is saved, 60 days have been saved… If an average single days delay claim is $40,000…

UTAH DEPARTMENT OF TRANSPORTATION Incentive Program for Acquisition


6 Different Projects 35 Owners Signed 25 Owners Signed $40,000 Cost Per day Delay Claim

TOTAL UDOT SAVINGS

$2,400,000

UTAH DEPARTMENT OF TRANSPORTATION Incentive Program for Acquisition


Incentive for Relocation Incentive for relocating early Incentive for not renewing or creating new tenants Protective Rents

Presently UDOT does not have any projects where we have

been able to use this valuable tool.


Pilot Program for Single Relocation Payment Choice for a single payment


1 Project 12 Owners Relocated 12 Owners Accepted Single Payment

Time to Vacate Building and reduction in UDOT Relocation Oversight 59 Days Saved Per Relocation $40,000 Cost Per day Delay Claim

TOTAL UDOT SAVINGS

$2,360,000

UTAH DEPARTMENT OF TRANSPORTATION Pilot Program for Single Relocation Payment


What is the dream Job/Project?


What does our Opportunity look like


What does success look like

Using all the tools = Success


“Change is the law of life.

Those who look only to the past or present

are sure to miss the future.”

- John Fitzgerald Kennedy

ALL ABOUT CHANGE


Appraisal Waiver Valuation Limits &

Conflict of Interest

The waiver valuation is an efficiency provided for both in law and in regulation under 49CFR 24.102(c)(2).


Proposal

Increase the waiver valuation limit from $25,000 to $50,000

Increase the conflict of interest limit from $25,000 to $50,000


Reasoning Expedite acquisition process for property owners, reduce

staff time and project costs and increase overall efficiencies

Reduction in staffing levels and limited project funding

Attempt to make the valuation limits more consistent with current property values


Recommendations

1) Duration of pilot program will be five years 2) UDOT will produce a semi-annual interim report measuring

staff time savings, project cost and overall project efficiencies.

3) Appraisal waivers will only be prepared on appropriately selected, non-complex, low value parcels that present time and cost saving

4) Appraisal waivers will only be prepared by qualified UDOT staff, using confirmed arms length transactions.


Recommendations Cont.

5) If the property owner request and appraisal on their property, UDOT will have an appraisal prepared and the Waiver of Appraisal process will not be used.

6) The appraiser or review appraiser shall have no interest in the property being valued.

7) UDOT will amend the, Real Estate Procedure Manual on Waiver of Appraisals and UDOT’s requirements & guidelines for UDOT staff prepared market studies to reflect the increase $25,000 to $50,000.


Recommendations Cont.

8) Wavier of Appraisal valuations will be informally reviewed by UDOT appraisal staff as part of the procedure to achieve valuation consistency.

9) Waiver valuations will be complete using, the most up-to-date market data available.


Key Element When possible, UDOT staff will contact the property owner prior to

commencing the waiver of Appraisal process.


Anticipated Outcomes

Efficient use of its appraisal and acquisition staffs

Reduce project costs/Shorten project delivery time


UTAH DEPARTMENT OF TRANSPORTATION Riverdale Road Pilot Program


Appraisal vs.

Administrative Compensation Estimate(ACE) Appraisal

61 Appraisals completed average 44 days each

The average cost for 61 appraisals was $2,854

Appraisal Review 61 Reviews completed average 14 days each The average cost for 61 reviews was $875



Appraisal vs.

Administrative Compensation Estimate (ACE) ACE 29 Aces' completed average 16 day each The average cost for 29 Aces' was $900

ACE Review 29 Reviews completed average 4 days each The average cost for 29 reviews was $250



COST SAVINGS Appraisal Report and Review - $3,729.00 per parcel

Appraisal Waiver Valuation and Review - $1,150.00 per parcel

Total Cost Savings = $2,579 per parcel

TOTAL PROJECT SAVINGS

$74,791.00



TIME SAVINGS

Preparation of Administrative Comp Est. = 20 Days

Preparation of Appraisal Report:

Produce Sales Brochure = 60 Days Produce an Appraisal = 44 Days Produce Appraisal Review = 4 Days

Total Days Saved

108 Days – 20 Days = 88 Days



TIME SAVINGS 30 of the 61 Appraisal value below $50,000 (Ace completed in 20 days; additional days saved) = 88 Days

COST SAVINGS 30 ACES’ performed with value below $50,000 (Ace cost per parcel savings $2,579) = $77,370

TOTAL PROJECT SAVINGS

88 Days & $77,370



“Determine that the thing can and shall be done, and then we shall find the way”

- Abraham Lincoln


What’s Next?


Hugh Hadsock Right of Way Program Manager

FHWA – NV & UT Divisions (801) 955-3518


James Olschewski Right of Way Deputy Director

UDOT (801) 965-4821




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