PLANNING HORIZONS Project Initiation Documents: Challenges and How to Move Forward

1. PLANNING HORIZONSProject Initiation Documents:Challenges and How to Move Forward California Department of Transportation Marlon Flournoy, Chief Office of Project Plan Coordination

2. Presentation Overview • Overview of Project Development Process • Overview of PIDs • Different Types of PIDs • Influencing Factors • Challenges • How to Move Forward • Conclusions • Questions

3. How Projects are Built?

4. How Projects are Funded?

5. Relationship Between Project Development and Funding

6. What is a PID? • Engineering or technical document that documents • Project scope, cost, and schedule • Conceptual or scope approval for locally-funded projects • Outcome of the project scoping effort. • Both Caltrans and local entities prepare PIDs for projects on the State Highway System.

7. Purpose of a PID • PID documents the purpose and need. • Need (transportation deficiency) • Purpose (objectives that will be met to address the transportation deficiency) • Also documents • Approach (i.e. scope) including alternatives that will be taken to meet or reduce transportation deficiencies and address the purpose and need. • Existing information, initial assumptions, identified risks, and constraints. • The scope is tied to realistic cost estimates and schedules.

8. How a PID is Prepared?

9. Relationship Between Scope, Cost, and Schedule

10. Why are PIDs so Important? • PIDs (i.e. project scoping) provide • a sound basis for commitment of future funding • a key opportunity to achieve consensus on project scope, schedule, and proposed cost. • Projects programmed into state or local funding programs that are inadequately defined or scoped carry additional project risks that can impact project costs and schedules. • Funding programs are financially constrained • Cost overruns on one project translates into a reduction of funds allocated to other projects.

11. When is a PID Required? • Government Code requires • PIDs for projects programmed in the State Transportation Improvement Program (STIP) • Caltrans review and approve PIDs prepared by local entities • Caltrans policy requires • PIDs for all major projects on the State Highway System regardless of funding. • California Transportation Commission (CTC) Guidelines for the Preparation of Project Study Reports • Provide a framework for preparation of PIDs.

12. Different Types of STIP and Local PIDs • Project Study Reports (PSR) • Used to program all project phases. • Require more detail. • Project Study Report-Project Development Support (PSR-PDS) • Streamlined PID used to only program PA&ED phase. • Require only enough detail to fund PA&ED. • Develop order-of-magnitude estimate for PS&E, R/W, and Const. • Approved Project Report (PR), the outcome of PA&ED, used to program remaining phases (PS&E, RW, and Const).

13. PSR vs. PSR-PDS

14. State Highway Operation Protection Program (SHOPP) PIDs • The 10-Year SHOPP Plan drives the need to develop PIDs for SHOPP projects. • There are more than 30 SHOPP programs—each with very specific objectives. • All SHOPP PIDs are driven by the SHOPP programs funding the project and thus have very specific goals. • Vast majority of SHOPP projects are programmed through construction. • Different types of PIDs are used depending on the project. • Most SHOPP PIDs that combine the PID and PAED phases. • Small Capital Value Project PID, a streamlined SHOPP PID, is used for single alternative low risk safety and ADA projects that are $3 million and less.

15. History of Influencing Factors • 2008 LAO Report • Concluded that PIDs completed for many projects could not be funded • Recommended reducing staffing levels, basing staffing levels on workload, and improving management of PID activities • 2010 Report to the Joint Legislative Budget Committee • Identify options to share costs, lower costs, streamline procedures, and reduce delays associated with PIDs. • 2010 Three-Year Strategic Plan for PIDs • An annually developed plan that provides resource needs over a three-year period. • Roadmap for how the Department will manage and improve its PID program.

16. Historical Reduction of PID Positions

17. Current and Future Challenges • State Budget • Limited State Highway Account (SHA) funds • Budgeting Process • PID Reimbursement • Local agencies required to reimburse the Department for developing PIDs and providing oversight of PIDs • Limited local funds • Streamlining but Striking a Balance • Many factors driving the need to streamline (e.g. state budget, PID reimbursement, etc.) • Don’t want to streamline too much or too little • Workload Standards • Most projects are unique in nature • Ensure that workload standards align with actual work performed

18. Moving Forward • Current streamlining efforts • PSR-PDS (September) • Small Capital Value Project PIDs (September) • Continue to streamline processes and procedures • Limit the number of PIDs on the shelf • Focus on funding PIDs tied to available funding • Define the appropriate level and effort

19. PSR-PDS Streamlining Efforts • Caltrans is coordinating with local entities to streamline the PSR-PDS. • Expand the use of the PSR-PDS • Goals include • Streamline scoping processes and procedures • Eliminate process redundancies • Clarify roles and responsibilities • Improve communication between Caltrans, local agencies, and project stakeholders • Improve risk identification

20. Conclusions • PIDs are a very important project scoping tool. • PIDs add a lot of value to the project development process. • Important to tie PID development to fundable projects. • Strike a balance between streamlining and having adequate detail in the PID.

21. Resources • Project Development Procedures Manual • http://www.dot.ca.gov/hq/oppd/pdpm/pdpmn.htm • Office of Projects Plan Coordination • http://www.dot.ca.gov/hq/tpp/offices/oppc/index.html • Guidelines for the Preparation of Project Study Reports • http://www.dot.ca.gov/hq/oppd/design/psr12-8.htm • 2011 10-Year SHOPP Plan • http://www.dot.ca.gov/docs/reports/2011_Ten_%20Year_Shopp_Plan.pdf

22. Questions