Local Highway Safety Project Delivery

Dear Transportation Partners:
The purpose of this letter is to bring to your attention the project delivery status of Local
Highway Safety Improvement Program (HSIP). It also outlines measures that the California
Department of Transportation (Caltrans) plans to take to help speed up the delivery of HSIP
projects.
HSIP Obligation Authority (OA) Balance and Year to date delivery:
At the beginning of federal fiscal year (FFY) 2014- 2015, the Local HSIP Program Obligation
Authority (OA) balance was $228 million. This amount is about four times the annual Local
HSIP OA share ($60 million)!  As of February 28,2015, through the first five months of the
FFY, only about $8.5 million HSIP funds have been obligated.
Also, as of February 28, 2015, 117 HSIP projects were considered “delayed” per the Caltrans
“Project Delivery Requirements for Local Safety Programs” (52 projects are “delayed PE” and
65 projects are “delayed Construction”). Currently, for delayed HSIP projects, Caltrans’ policy
is to exclude the project sponsor from competing for HSIP funding for new HSIP projects.
For those “delayed Construction” projects:
• Cycles 0 & 1 – 9 projects were delayed an average of 60 months, or 5 years
• Cycle 2 – 14 projects were delayed an average of 43 months
• Cycle 3 – 11 projects were delayed an average of 28 months
• Cycle 4 – 31 projects were delayed an average of 16 months

HSIP Project Delivery Encouragement Measures:
To encourage the delivery of HSIP projects, Caltrans Division of Local Assistance will
implement the following measures, effective immediately.
1. Penaltv for prolonged delivery delays -Project Removal from HSIP Program
The following HSIP project delivery deadlines will be enforced:
• Cycles 0, 1 & 2 projects- September 30,2015
• Cycle 3 projects – December 31, 2015
• Cycle 4 projects – March 31, 2016
• Other cycles of HSIP projects- 60 months from HSIP cycle release.
Projects that do not meet the above delivery deadlines will be removed from the HSIP Program.
A HSIP project that has been removed from the Program may still compete for future HSIP
Program cycles.
For a project to be considered delivered, a complete “Request for Authorization to Proceed for
Construction” package shall be received and accepted by the District Local Assistance Engineer
prior to the above mentioned due date.
Second Chance – To provide the delayed HSIP projects in Cycles 0, 1, 2, & 3 another
opportunity for success, Caltrans will work with project sponsors to review and revise the project
scope and develop an alternative project that meets the original HSIP project purpose. Such rescoped
HSIP projects will be given a new project delivery deadline which will then be strictly
enforced. Such project re-scoping must be completed by July 31,2015.
For those projects that are removed from the HSIP Program, the project sponsors may be
responsible for the repayment of HSIP funds expended on the early phases of the project
development as required by federal regulations.
2. Incentive {or early project delivery -100% federal funding for a limited time using Toll
Credits
Effective immediately and until September 30. 2016, to encourage the early delivery of HSIP
projects, Caltrans will increase the federal funding share to 100% of the eligible HSIP project
cost through the use of toll credits. However, this project delivery incentive will only be offered
to Cycle 6 HSIP projects. The reason for limiting 100% federal share only to Cycle 6 HSIP
project is because “undelivered” HSIP projects in all prior cycles are either already-delayed or
soon-to-be-delayed, including Cycle 5 projects. Rewarding those projects with 100% federal
share is considered by most to be unfair to those project sponsors that have delivered their HSIP
projects.
In the coming days, those HSIP project sponsors with delayed HSIP projects will receive
notification of potential project removal from the HSIP Program, along with instructions on
updating project status and on project re-scoping.
The on-time delivery of safety projects should be the top priority for any local agencies that have
projects in the HSIP program. I am confident that with your and Caltrans’ renewed focus on the
delivery of HSIP projects, we can make our roads safer for the traveling public.
For your reference the delayed HSIP project list along with a copy of this letter can be found on
the Division of Local Assistance web-site http://www.dot.ca.gov/hg/LocalPrograms/.

Sincerely,
………
RIHUI ZHANG
Chief
Division of Local Assistance

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