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Office of Real Estate Services - Project Development Guide
Chapter 15
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23
CFR 710.201 (f)
23 CFR 710.403
23 CFR Part 140
23 U.S.C. 156
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References
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The
final phase in the right-of-way project development process is the closing
of the project by the State Transportation Department (STD). During this
phase, all records, documentation, and final right-of-way maps for the project
are retained and stored; any excess properties and/or right-of-way encroachments
are cleared from the project; and all financial claims are summarized and
submitted for payment. |
The initial step to this
phase is generally prompted by the acquiring agency's submission of the Right-of-Way
Certification (See chapter 13) for the project.
The acquiring agency's
claims and records maybe subject to auditing by the agency's internal audit
staff, FHWA audit, or the US DOT's Office of Inspection General.
15.1 CLOSING REGULATIONS
The regulations which prescribe
record keeping and retention requirements for the Federal-aid highway program
are found in 23 CFR 710.201 (f). These regulations define the types of records
and the period of time these records are to be held for auditing and/or inspection.
The regulations which prescribe
billing procedures to be followed in claiming reimbursable costs for the Federal-aid
highway program are found in 23 CFR Part 140.
15.2 STEPS TO PROJECT
CLOSING
Step 1
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initial step to closing a right-of-way project is the accumulation of all
official project records. These records include all accounts, papers, maps,
photographs, or other documentary materials regardless of physical form
or characteristics, made or received by the agency, firm, or individuals
in connection with a Federal-aid highway project. |
| Closing a project
is more than just closing the book on it. There is much to be done
to finalize a right-of-way project: record keeping, disposals, certificates,
etc. must be dealt with. This Section discusses what is to be done
when closing a Federal-aid project. |
Summary
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also includes, but is not limited to, financial records, supporting documentation,
statistical records, and other records pertinent to the Federal-aid right-of-way
project. These records should be kept in a central location by the acquiring
agency. Records pertaining to the project such as acquisition and relocation
costs shall be retained for a minimum period of 3 years with some exceptions.
The 3 year retention period starts when final claims are submitted for payment.
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- If any
litigation, claim, or audits are started before the expiration
of the 3 year period, the records shall be retained until all
litigations claims, or audit findings involving the records have
been resolved.
- Records
of nonexpendable property acquired with Federal funds shall be
retained for 3 years after the final disposition of the property.
- Records
which have been transferred to the FHWA for retention.
- Toll facility
records shall be retained for 3 years subsequent to the date when
the facility became operable on a toll-free basis.
Record
Retention Exceptions
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Step 2.
The next step in project
closing is to review the project's final right-of-way plans. This step is necessary
in order for the agency to identify any excess lands or uneconomic remnants
not needed for the construction, operation, and maintenance of the highway facility.
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Uneconomic
remnants acquired by the agency but not incorporated into the right-of-way
may be disposed of without FHWA approval, but the Federal share
of net income from the sale or lease of excess real property shall
be used by the acquiring agency for activities eligible for funding
under title 23 of the United States Code.
Uneconomic
Remnants
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Excess
properties identified during this review should be made a part of the agency's
inventory of excess lands and submitted to the department responsible for
the disposal and management of excess lands. Any excess property should
be disposed of in accordance with the agency's disposal procedures. If property
is disposed of for it's fair market value, a credit to the FHWA is
not required when the Federal share of the net income is used by the acquiring
agency for activities eligible for funding under title 23 of the United
States Code. |
Another reason to review
the final right-of-way plans is to identify any encroachments within the project
right-of-way. Any encroachments identified during this review should be directed
to persons responsible for maintaining the integrity of the highway facility.
The encroachments should be cleared.
Step 3
Any right-of-way claims
for reimbursement must be supported by the records as described in step 1.
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The claims can be
reimbursed as part of a progress voucher or as part of the final payment.
All right-of-way costs should have been incurred and accounted for before
submitting the final cost document.
This may not be possible
when there are outstanding condemnation cases or litigation which extends
beyond the completion of the highway's construction. On those projects,
the agency may consider alternative methods for closing its right-of-way
projects. One alternative is to close the existing project and create
"take-up" projects to accommodate the outstanding condemnations or other
litigation issues.
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A "take-up"
project is created to cover outstanding right-of-way costs When
all right-of-way costs on a project have been incurred except for
the outstanding litigation cases, then the agency could request
that the outstanding cases be made a part of the "take-up" . After
a final judgement, the final cost would be paid from the "take-up"
project funds. This would allow the agency to close the normal right-of-way
project in a timely manner and receive its final federal-aid reimbursement.
Take-Up
Project
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Closing projects assists
in managing obligation authority, such that large amounts of unexpended obligated
funds do not remain unused on dormant projects. When a regular project is closed,
any unexpended funds should be transferred to a new or existing project involving
the same class of funds. As an additional option, the closed project can be
re-opened at a later date to cover any eligible costs not yet reimbursed, which
the agency may later discover.
Chapter
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