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Bee Branch Trail Project - Phase 3 (12th to 9th Street): Approve Grant Funding AgreementCity of Dubuque City Council CONSENT ITEMS # 9. Copyrighted February 2, 2026 ITEM TITLE: Bee Branch Trail Project - Phase 3 (12th to 9th Street): Approve Grant Funding Agreement SUMMARY: City Manager recommending City Council adopt the attached resolution and authorize the Mayor to sign the Iowa Department of Transportation Federal Aid Funding Agreement for Transportation Alternative Program for the Bee Branch Trail Project - Phase 3 (12th to 9th Street). RESOLUTION Approving The Iowa Department Of Transportation Federal Aid Funding Agreement For A Transportation Alternatives Program (TAP) Project For The Bee Branch Trail Project - Phase 3 (12th To 9th Street) SUGGUESTED Receive and File; Adopt Resolution(s) DISPOSITION: ATTACHMENTS: 1. MVM Memo Bee Branch Trail Project - Phase 3 (12th to 9th Street) Approve Grant Funding Agreement 2. Bee Branch Trail Project Phase 3 (711) Funding Agreement Staff Council MEMO 3. Resolution 4. Bee Branch Trail Project Phase 3 (711) - Location Exhibit 5. Bee Branch Trail Project Phase 3 - Tap Funding Agreement 26-TAP-117 Page 187 of 865 THE CITY OF DUB E-E Masterpiece on the Mississippi TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Bee Branch Trail Project - Phase 3 (12th to 9th Street) Approve Grant Funding Agreement Iowa DOT Agreement No. 26-TAP-117 Iowa DOT Project Number TAP- U-2100--(711)-81-31 DATE: January 26, 2026 Dubuque All -America Ciq IIIr II 2007.2012.2013 2017*2019 City Engineer Gus Psihoyos is recommending City Council adopt the attached resolution and authorize the Mayor to sign the Iowa Department of Transportation Federal Aid Funding Agreement for Transportation Alternative Program for the Bee Branch Trail Project - Phase 3 (12th to 9th Street). The Bee Branch Trail Project - Phase 3 completes a key connection between the downtown/Millwork District and the Bee Branch trail system, extending from 12th Street near the solar fields adjacent to the US 61/151 northbound on -ramp to 9th Street. The primary trail alignment follows Pine Street, where existing sidewalk facilities are upgraded to function as a shared -use trail accommodating both bicyclists and pedestrians. Additional on -street improvements along 11th Street and 9th Street include striped bicycle lanes, creating a continuous and clearly defined route between downtown, nearby neighborhoods, and the Bee Branch. The project also includes enhanced trail and bicycle crossing locations, including street crossings and a railroad crossing, at Pine Street and 11 th Street, Pine Street and 9th Street, and Elm Street and 11 th Street. These connection points incorporate pavement markings, curb ramps, and signing to improve visibility and accessibility for pedestrians and bicyclists as they transition between the shared -use trail, on -street bicycle facilities, and adjacent sidewalks. I concur with the recommendation and respectfully request Mayor and City Council approval. k�4 S4-zn'_ Mic ael C. Van Milligen Page 188 of 865 MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Gus Psihoyos, City Engineer Justine Hull, Civil Engineer - Traffic Robert Schiesl, Assistant City Engineer Jason Duba, Assistant Planner Nathan Steffen, Civil Engineer III Jenny Larson, Chief Financial Officer Chandra Ravada, ECIA 2 Page 189 of 865 THE CF DUIj___B E-E Masterpiece on the Mississippi TO: Michael C. Van Milligen, City Manager FROM: Gus Psihoyos, City Engineer SUBJECT: Bee Branch Trail Project - Phase 3 (12th to 9th Street) Approve Grant Funding Agreement Iowa DOT Agreement No. 26-TAP-117 Iowa DOT Project Number TAP- U-2100--(711)-81-31 DATE: January 22, 2026 INTRODUCTION Dubuque All•Aueft C14 .WiI1CN1L1 NX_'.11.4J.F 2007-2012.2013 2017*2019 The enclosed resolution authorizes the Mayor to execute the Iowa Department of Transportation (Iowa DOT) Federal Aid Funding Agreement for Transportation Alternative Program (TAP) for the Bee Branch Trail Project - Phase 3 (12th to 9th Street). The improvements are fully funded from the transportation grant funding and city general fund savings from revised FY26 budget recommendation. BACKGROUND In November 2023, City staff submitted a grant application agreement with the Dubuque Metropolitan Area Transportation Study (DMATS) for Transportation Alternatives Program (TAP) grant funds for the Bee Branch Trail Project - Phase 3 as the connection from the downtown/Millwork area to the Bee Branch Creek Trail along Pine St. from 9th St.to 12th St. The Iowa Department of Transportation (Iowa DOT) administers DMATS Transportation Enhancement Program grant funds as part of the federal pass -through funding in the Iowa DOT Transportation Alternatives Program. TAP grants provide 80% of project costs. Cities must provide written assurance of the required 20% of local match and maintenance of the completed project for a minimum of 20 years. DISCUSSION The Bee Branch Trail Project - Phase 3 completes a key connection between the downtown/Millwork District and the Bee Branch trail system, extending from 12th Street near the solar fields adjacent to the US 61/151 northbound on -ramp to 9th Street. The primary trail alignment follows Pine Street, where existing sidewalk facilities are upgraded to function as a shared -use trail accommodating both bicyclists and pedestrians. Additional on -street improvements along 11 th Street and 9th Street include striped bicycle lanes, creating a continuous and clearly defined route between downtown, nearby neighborhoods, and the Bee Branch. The project also includes enhanced trail and bicycle crossing locations, including street crossings and a railroad crossing, at Pine Street and 11th Street, Pine Street and 9th Page 190 of 865 Street, and Elm Street and 11 th Street. These connection points incorporate pavement markings, curb ramps, and signing to improve visibility and accessibility for pedestrians and bicyclists as they transition between the shared -use trail, on -street bicycle facilities, and adjacent sidewalks. Overall, the Bee Branch Trail Project - Phase 3 closes a critical gap in the multimodal network by strengthening access between downtown destinations and the Bee Branch, while remaining within the existing corridor and without adding vehicle capacity or altering major roadway function. Limited geometric adjustments at Pine Street and 9th Street support bicycle transitions between on -street facilities and the trail and are designed to remain compatible with a future extension of Pine Street to the Port of Dubuque. BUDGETIMPACT The estimate of probable cost for the Bee Branch Trail Project - Phase 3 is summarized in the following table: Description Cost Estimate Construction $ 232,303.00 Contingency 35,933.00 Subtotal $ 268,236.00 Engineering Design and Administration 40,186.00 Total Construction Cost Estimate $ 308,422.00 The proposed project funding is summarized as follows: Project Code Description Funding Amount 5544000006 DMATS TAP Grant (80%) $ 214,589.00 City Funds - Local Match (20%) 53,647.00 Construction Subtotal $ 268,236.00 City Funds - Engineering Services 40,186.00 Total Construction Cost Estimate $ 308,422.00 ACTION TO BE TAKEN I respectfully request that the City Council adopt the attached resolution and authorize the Mayor to sign the Iowa Department of Transportation for Transportation Alternative Program funding agreement (Agreement No. 26-TAP-117) for the Bee Branch Trail Project - Phase 3 (12th to 9th Street). Prepared By; Justine Hull, Civil Engineer - Traffic cc: Robert Schiesl, Assistant City Engineer Jason Duba, Assistant Planner Nathan Steffan, Civil Engineer III Jenny Larson, Chief Financial Officer Chandra Ravada, ECIA Susan Hollenkamp, Iowa DOT Page 191 of 865 Prepared by Justine Hull, Civil Engineer — Traffic 50 W 13th St Dubuque IA 52001 (563) 589-4270 Return to Adrienne N. Breitfelder, City Clerk, 50 W. 131h St., Dubuque, IA 52001, (563) 589-4100 RESOLUTION NO. 25-26 RESOLUTION APPROVING THE IOWA DEPARTMENT OF TRANSPORTATION FEDERAL AID FUNDING AGREEMENT FOR A TRANSPORTATION ALTERNATIVES PROGRAM (TAP) PROJECT FOR THE BEE BRANCH TRAIL PROJECT - PHASE 3 (12TH TO 9TH STREET) WHEREAS, the City of Dubuque is proceeding with the Bee Branch Trail Project - Phase 3 (12th to 9th Street); and WHEREAS, the trail will be located from the 12th Street / Solar Field entrance along the US 51/161 northbound on -ramp and Pine Street, and along 11th Street and 9th Street from Pine Street to Elm Street; and WHEREAS, the Bee Branch Trail Project - Phase 3 completes a key connection between the downtown/Millwork District and the Bee Branch trail system, extending from 12th Street near the solar fields adjacent to the US 61/151 northbound on -ramp to 9th Street. The primary trail alignment follows Pine Street, where existing sidewalk facilities are upgraded to function as a shared -use trail accommodating both bicyclists and pedestrians. Additional on -street improvements along 11 th Street and 9th Street include striped bicycle lanes, creating a continuous and clearly defined route between downtown, nearby neighborhoods, and the Bee Branch; and WHEREAS, the Iowa Department of Transportation (Iowa DOT) has authorized the use of federal funds for eligible costs for the Bee Branch Trail Project - Phase 3. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF DUBUQUE, IOWA THAT: SECTION 1. That the Mayor is hereby authorized and directed to execute the Iowa DOT Transportation Federal -Aid Funding Agreement for an Iowa's Transportation Alternatives Program (TAP) Project Agreement (26-TAP-117) between the City of Dubuque and the Iowa Department of Transportation be hereby approved for the Bee Branch Trail Project - Phase 3 (12th to 9th Street). Passed, approved, and adopted this this 2n6 Attest: Adrienne N. Breitfelder, City Clerk day of February 2026. l B d M. CaGanagh, Mayor 1111L (a City f D TAP Application 2 2� ty o Dubuque0 3 • Extend Bee Branch Trail • Create on -street bike lanes to meet City's planned bike lanes on Elm, 9th, and 10th Solar Field Trail Branch Trail MEMO New Trail - Westbound % bike lane � ► .� :, ��_. won 11th St I Crosswalk: 11th St n000 / 4 l,; �— Widen from 5' to 10'� Bike lanes, on Elm St Ilk{off\ ,5, N VWestboundr �� , r bike lane 4 Son 10th St Nor Eastbound �-doo, .10.bike lane on 9th St �2 a ©' 0 0.1 0.2 n Miles TAP Project Existing Trail Proposed Trail Proposed Bike Lane Planned Bike Lane 1 " ' L L L D Jqe OWN J rHE CITY OF DuB E Masterpiece on the Mississippi E 6� r t I Cat#is+r 6�eek St9te Preserve a—. January 2023 IOWA DEPARTMENT OF TRANSPORTATION Federal -Aid Agreement for a Transportation Alternatives Program (TAP) Project Subrecipient: City of Dubuque Subrecipient Unique Entity Identifier: TUMHPVMMUD3 Project Number(s): TAP-U-2100(711) --81-31 Iowa DOT Agreement Number: 26-TAP-117 The Subrecipient has received federal funding through the Transportation Alternatives Program (TAP), which is funded by the Transportation Alternatives Set -aside of the Surface Transportation Block Grant Program (TA Set -aside), as codified in Section 133(h) of Title 23, United States Code (U.S.C.), which are hereinafter referred to as TA Set -aside funds. The Catalog of Federal Domestic Assistance (CFDA) number and title for this funding is 20.205 Highway Planning and Construction. Pursuant to the terms of this agreement, applicable statutes, and administrative rules, the Department agrees to provide the funding named above to the Subrecipient for the authorized and approved costs for eligible items associated with the project. Under this agreement, the parties further agree as follows: 1. The Subrecipient shall be responsible for carrying out the provisions of this agreement. All notices required under this agreement shall be made in writing to the appropriate contact person. The Department's contact person shall be Susan Hollenkamp, Systems Planning Bureau, 800 Lincoln Way, Ames, Iowa 50010, 515-239-1810. The Subrecipient's contact person shall be Justine Hall, 50 W 13t" Street, Dubuque, IA 52001, 563-589-4200. 2. The Subrecipient shall be responsible for the development and completion of the following described project: In the city of Dubuque, Bee Branch Trail Phase II 3. The Subrecipient shall receive reimbursement for costs of authorized and approved eligible project activities under the TAP program from TA Set -aside funds. The portion of the project costs reimbursed with TA Set -aside funds shall be limited to a maximum of either 80 percent of eligible costs (other than those reimbursed with other federal funds) or the amount listed ($214,589) in the DMATS current Transportation Improvement Program (TIP) and approved in the current Statewide Transportation Improvement Program (STIP), whichever is less. Eligible project activities will be as described in Section 133(h) of Title 23, United States Code (U.S.C.), and determined by the Department to be eligible. Page 194 of 865 January 2023 4. Eligible project costs in excess of the amount reimbursed by the Department above will be considered the local contribution and may include cash, non -cash or approved state fund contributions, subject to Department approval. The local contribution must equal a minimum of 20 percent of eligible project costs. The subrecipient shall certify to the Department the value of any non -cash contribution to the project prior to it being incurred and in accordance with the procedures outlined in the applicable Instructional Memorandum to Local Public Agencies (I.M.$). The Department retains the sole authority to determine the eligibility and value of the Subrecipient's non -cash contribution for the purposes of this agreement. If the Subrecipient's total cash and non - cash contribution is determined by the Department to be less than that required by this agreement, the Subrecipient shall increase its cash contribution or the grant amount associated with this project shall be reduced accordingly. 5. The Subrecipient must have let the contract or have construction started within two years of October 1, 2026. If the Subrecipient does not do this, they will be in default for which the Department can revoke funding commitments. The Department may approve extensions of this agreement for periods up to six months upon receipt of a written request from the Subrecipient at least sixty (60) days prior to the deadline. 6. If the Subrecipient fails to perform any obligation under this agreement, the Department shall have the right, after first giving thirty (30) days written notice to the Subrecipient by certified mail return receipt requested, to declare any part or all of this agreement in default. The Subrecipient shall have thirty (30) days from date of mailing of the notice to cure the default. If the Recipient cures the default, the Subrecipient shall notify Department no later than five (5) days after cure or before the end of said thirty (30) day period given to cure the default. The Department may thereafter determine whether the default has, in fact, been cured, or whether the Subrecipient remains in default. 7. This agreement maybe declared to be in default by the Department if the Department determines that the Subrecipient's application for funding contained inaccuracies, omissions, errors or misrepresentations; or if the Department determines that the project is not developed as described in the application and according to the requirements of this agreement. 8. In the event a default is not cured the Department may do any of the following: a) revoke funding commitments of funds loaned or granted by this agreement; b) seek repayment of funds loaned or granted by this agreement; or c) revoke funding commitments of funds loaned or granted by this agreement and also seek repayment of funds loaned or granted by this agreement. By signing this agreement the Subrecipient agrees to repay said funding if they are found to be in default. Repayment methods may include cash repayment, installment repayments with negotiable interest rates, or other methods as approved by the Department. 9. The Subrecipient shall comply with Exhibit 1, General Agreement Provisions for use of Federal Highway Funds on Non -primary Highways, which is attached hereto and by this reference is incorporated into this agreement. Page 195 of 865 January 2023 10. The Subrecipient shall maintain or cause to be maintained for the intended public use, the improvement for twenty (20) years from the completion date in a manner acceptable to the Department. 11. This agreement is not assignable without the prior written consent of the Department. 12. If any part of this agreement is found to be void and unenforceable, the remaining provisions of this agreement shall remain in effect. 13. It is the intent of both parties that no third -party beneficiaries be created by this agreement. 14. This agreement shall be executed and delivered in two or more copies, each of which so executed and delivered shall be deemed to be an original and shall constitute but one and the same agreement. 15. This agreement and the attached exhibit constitute the entire agreement between the Department and the Subrecipient concerning this project. Representations made before the signing of this agreement are not binding, and neither party has relied upon conflicting representations in entering into this agreement. Any change or alteration to the terms of this agreement shall be made in the form of an addendum to this agreement. The addendum shall become effective only upon written approval of the Department and the Subrecipient. Page 196 of 865 January 2023 IN WITNESS WHEREOF, each of the parties hereto has executed this agreement as of the date shown opposite its signature below. SUBRECIPIENT: City of Dubuque I By: Date �e6ruar aka rn Title: CERTIFICATION: C. r1►^� R ire, t rCI cue r , certify that I am the Clerk of the city, and that (Name of City Clerk) who signed said Agreement for and on behalf of (Name of Mayor/Signer Above) the city was duly authorized to execute the same by virtue of a formal resolution duly passed and adopted by the city, on the -' day of FekrUr.\.r'y Signed: City Clerk of Dubuque, Iowa. IOWA DEPARTMENT OF TRANSPORTATION Transportation Development Division 800 Lincoln Way, Ames, Iowa 50010 Tel. 515-239-1664 0 Deb Arp Grant Team Leader Local Systems Bureau Da January 2023 EXHIBIT 1 General Agreement Provisions for use of Federal Highway Funds on Non -primary Projects Unless otherwise specified in this agreement, the Subrecipient shall be responsible for the following: 1. General Requirements. a. The Subrecipient shall take the necessary actions to comply with applicable state and federal laws and regulations. To assist the Subrecipient, the Department has provided guidance in the Federal -aid Project Development Guide (Guide) and the Instructional Memorandums to Local Public Agencies (I.M.$) that are referenced by the Guide. Both are available on-line at: https://iowadot.gov/local_systems/im/lpa-ims. The Subrecipient shall follow the applicable procedures and guidelines contained in the Guide and I.M.s in effect at the time project activities are conducted. b. In accordance with Title VI of the Civil Rights Act of 1964 and associated subsequent nondiscrimination laws, regulations, and executive orders, the Subrecipient shall not discriminate against any person on the basis of race, color, national origin, sex, age, or disability. In accordance with Iowa Code Chapter 216, the Subrecipient shall not discriminate against any person on the basis of race, color, creed, age, sex, sexual orientation, gender identity, national origin, religion, pregnancy, or disability. The Subrecipient agrees to comply with the requirements outlined in I.M. 1.070, Title VI and Nondiscrimination Requirements which includes the requirement to provide a copy of the Subrecipient's Title VI Plan or Agreement and Standard DOT Title VI Assurances to the Department. c. The Subrecipient shall comply with the requirements of Title II of the Americans with Disabilities Act of 1990 (ADA), Section 504 of the Rehabilitation Act of 1973 (Section 504), the associated Code of Federal Regulations (CFR) that implement these laws, and the guidance provided in I.M. 1.080, ADA Requirements. When bicycle and/or pedestrian facilities are constructed, reconstructed, or altered, the Subrecipient shall make such facilities compliant with the ADA and Section 504, which includes following the requirements set forth in Chapter 12A for sidewalks and Chapter 12B for Bicycle Facilities of the Iowa DOT Design Manual. d. To the extent allowable by law, the Subrecipient agrees to indemnify, defend, and hold the Department harmless from any claim, action or liability arising out of the design, construction, maintenance, placement of traffic control devices, inspection, or use of this project. This agreement to indemnify, defend, and hold harmless applies to all aspects of the Department's application review and approval process, plan and construction reviews, and funding participation. e. As required by 2 CFR 200.501 "Audit Requirements," a non-federal entity expending $750,000 or more in federal awards in a year shall have a single or program -specific audit conducted for that year in accordance with the provision of that part. Auditee responsibilities are addressed in Subpart F of 2 CFR 200. The federal funds provided by this agreement shall be reported on the appropriate Schedule of Expenditures of Federal Awards (SEFA) using the Catalog of Federal Page 198 of 865 January 2023 Domestic Assistance (CFDA) number and title as shown in this agreement. If the Subrecipient will pay initial project costs and request reimbursement from the Department, the Subrecipient shall report this project on its SEFA. If the Department will pay initial project costs and then credit those accounts from which initial costs were paid, the Department will report this project on its SEFA. In this case, the Subrecipient shall not report this project on its SEFA. f. The Subrecipient shall supply the Department with all information required by the Federal Funding Accountability and Transparency Act of 2006 and 2 CFR Part 170. g. The Subrecipient shall comply with the following Disadvantaged Business Enterprise (DBE) requirements: i. The Subrecipient shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any Department -assisted contract or in the administration of its DBE program or the requirements of 49 CFR Part 26. The Subrecipient shall take all necessary and reasonable steps under 49 CFR Part 26 to ensure nondiscrimination in the award and administration of Department -assisted contracts. ii. The Subrecipient shall comply with the requirements of I.M. 5.010, DBE Guidelines. iii. The Department's DBE program, as required by 49 CFR Part 26 and as approved by the Federal Highway Administration (FHWA), is incorporated by reference in this agreement. Implementation of this program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the Subrecipient of its failure to carry out its approved program, the Department may impose sanctions as provided for under Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.). Termination of funds. Notwithstanding anything in this agreement to the contrary, and subject to the limitations set forth below, the Department shall have the right to terminate this agreement without penalty and without any advance notice as a result of any of the following: 1) The federal government, legislature or governor fail in the sole opinion of the Department to appropriate funds sufficient to allow the Department to either meet its obligations under this agreement or to operate as required and to fulfill its obligations under this agreement; or 2) If funds are de - appropriated, reduced, not allocated, or receipt of funds is delayed, or if any funds or revenues needed by the Department to make any payment hereunder are insufficient or unavailable for any other reason as determined by the Department in its sole discretion; or 3) If the Department's authorization to conduct its business or engage in activities or operations related to the subject matter of this agreement is withdrawn or materially altered or modified. The Department shall provide the Subrecipient with written notice of termination pursuant to this section. Page 199 of 865 January 2023 2. Programming and Federal Authorization. a. The Subrecipient shall be responsible for including the project in the appropriate Regional Planning Affiliation (RPA) or Metropolitan Planning Organization (MPO) Transportation Improvement Program (TIP). The Subrecipient shall also ensure that the appropriate RPA or MPO, through their TIP submittal to the Department, includes the project in the Statewide Transportation Improvement Program (STIP). If the project is not included in the appropriate fiscal year of the STIP, federal funds cannot be authorized. b. Before beginning any work for which federal funding reimbursement will be requested, the Subrecipient shall contact the Department to obtain the procedures necessary to secure FHWA authorization. The Subrecipient shall submit a written request for FHWA authorization to the Department. After reviewing the Subrecipient's request, the Department will forward the request to the FHWA for authorization and obligation of federal funds. The Department will notify the Subrecipient when FHWA authorization is obtained. The cost of work performed prior to FHWA authorization will not be reimbursed with federal funds. c. Upon receiving FHWA authorization, the Subrecipient must show federal aid funding activity to receive the programmed amount authorized for the project. If there is no funding activity for nine or more months after the previous activity, the remaining unused programmed amount will be de -obligated from the project and there will be no further federal aid reimbursement issued for the project. If the Subrecipient knows in advance that funding activity will not occur for the nine months, the Contract Administrator needs to be notified to determine if programming of funds can be adjusted or other options can be explored. d. Upon receipt of Federal Highway Administration (FHWA) authorization a Federal Award Identification Number (FAIN) will be assigned to this project by the FHWA based on a methodology that incorporates identifying information about the federal award such as the federal funding program code and the federal project number. This FAIN will be used to identify this project and award on the federal government's listing of financial assistance awards consistent with the Federal Funding Accountability and Transparency Act of 2006 (FFATA) at usaspending.gov. e. A period of performance for this federal funding award will be established at the time of FHWA authorization. The start date of the period of performance will be the FHWA authorization date. The project end date (PED) will be determined according to the methodology in I.M. 1.200, Federal Funds Management. Costs incurred before the start date or after the PED of the period of performance will not be eligible for reimbursement. 3. Federal Participation in Work Performed by Subrecipient Employees. a. If federal reimbursement will be requested for engineering, construction inspection, right-of-way acquisition or other services provided by employees of the Subrecipient, the Subrecipient shall follow the procedures in I.M. 3.330, Federal -aid Participation in In -House Services. Page 200 of 865 January 2023 b. If federal reimbursement will be requested for construction performed by employees of the Subrecipient, the Subrecipient shall follow the procedures in I.M. 6.010, Federal -aid Construction by Local Agency Forces. c. If the Subrecipient desires to claim indirect costs associated with work performed by its employees, the Subrecipient shall prepare and submit to the Department an indirect cost rate proposal and related documentation in accordance with the requirements of 2 CFR 200. Before incurring any indirect costs, such indirect cost rate proposal shall be certified by the FHWA or the federal agency providing the largest amount of federal funds to the Subrecipient. If approved, the approved indirect cost rate shall be incorporated by means of an addendum to this agreement. 4. Design and Consultant Services a. The Subrecipient shall be responsible for the design of the project, including all necessary plans, specifications, and estimates (PS&E). The project shall be designed in accordance with the design guidelines provided or referenced by the Department in the Guide and applicable I.M.s. b. If the Subrecipient requests federal funds for consultant services, the Subrecipient and the Consultant shall prepare a contract for consultant services in accordance with 23 CFR Part 172. These regulations require a qualifications -based selection process. The Subrecipient shall follow the procedures for selecting and using consultants outlined in I.M. 3.310, Federal -aid Participation in Consultant Costs. S. Environmental Requirements and other Agreements or Permits. a. The Subrecipient shall take the appropriate actions and prepare the necessary documents to fulfill the FHWA requirements for project environmental studies including historical/cultural reviews and location approval. The Subrecipient shall complete any mitigation agreed upon in the FHWA approval document. These procedures are set forth in I.M. 3.020, Concept Statement Instructions; 4.020, NEPA Process; 4.110, Threatened and Endangered Species; and 4.120, Cultural Resource Regulations. b. If farmland is to be acquired, whether for use as project right-of-way or permanent easement, the Subrecipient shall follow the procedures in I.M. 4.170, Farmland Protection Policy Act. c. The Subrecipient shall obtain project permits and approvals, when necessary, from the Iowa Department of Cultural Affairs (State Historical Society of Iowa; State Historic Preservation Officer), Iowa Department of Natural Resources, U.S. Coast Guard, U.S. Army Corps of Engineers, the Department, or other agencies as required. The Subrecipient shall follow the procedures in I.M. 4.130, 404 Permit Process; 4.140, Storm Water Permits; 4.150, Iowa DNR Floodplain Permits and Regulations; 4.160, Asbestos Inspection, Removal and Notification Requirements; and 4.190, Highway Improvements in the Vicinity of Airports or Heliports. d. In all contracts entered into by the Subrecipient, and all subcontracts, in connection with this project that exceed $100,000, the Subrecipient shall comply with the requirements of Section Page 201 of 865 January 2023 114 of the Clean Air Act and Section 308 of the Federal Water Pollution Control Act, and all their regulations and guidelines. In such contracts, the Subrecipient shall stipulate that any facility to be utilized in performance of or to benefit from this agreement is not listed on the Environmental Protection Agency (EPA) List of Violating Facilities or is under consideration to be listed. 6. Right -of -Way, Railroads and Utilities. a. The Subrecipient shall acquire the project right-of-way, whether by lease, easement, or fee title, and shall provide relocation assistance benefits and payments in accordance with the procedures set forth in I.M. 3.600, Right -of -Way Acquisition, and the Department's Right of Way Bureau Local Public Agency Manual. The Subrecipient shall contact the Department for assistance, as necessary, to ensure compliance with the required procedures, even if no federal funds are used for right-of-way activities. The Subrecipient shall obtain environmental concurrence before acquiring any needed right-of-way. With prior approval, hardship and protective buying is possible. If the Subrecipient requests federal funding for right-of-way acquisition, the Subrecipient shall also obtain FHWA authorization before purchasing any needed right-of-way. b. If the project right-of-way is federally funded and if the actual construction is not undertaken by the close of the twentieth fiscal year following the fiscal year in which the federal funds were authorized, the Subrecipient shall repay the amount of federal funds reimbursed for right-of-way costs to the Department. c. If a railroad crossing or railroad tracks are within or adjacent to the project limits, the Subrecipient shall obtain agreements, easements, or permits as needed from the railroad. The Subrecipient shall follow the procedures in I.M. 3.670, Work on Railroad Right -of -Way, and I.M. 3.680, Federal -aid Projects Involving Railroads. d. The Subrecipient shall comply with the Policy for Accommodating Utilities on City and County Federal -aid Highway Right of Way for projects on non -primary federal -aid highways. For projects connecting to or involving some work inside the right-of-way for a primary highway, the Subrecipient shall follow the Department's Policy for Accommodating Utilities on Primary Road System. Certain utility relocation, alteration, adjustment, or removal costs to the Subrecipient for the project may be eligible for federal funding reimbursement. The Subrecipient should also use the procedures outlined in I.M. 3.640, Utility Accommodation and Coordination, as a guide to coordinating with utilities. e. If the Subrecipient desires federal reimbursement for utility costs, it shall submit a request for FHWA authorization prior to beginning any utility relocation work, in accordance with the procedures outlined in I.M. 3.650, Federal -aid Participation in Utility Relocations. 7. Construction Contract Procurement. The following provisions apply only to projects involving physical construction or improvements to transportation facilities: Page 202 of 865 January 2023 a. The project plans, specifications, and cost estimate (PS&E) shall be prepared and certified by a professional engineer, architect, or landscape architect, as applicable, licensed in the State of Iowa. b. For projects let through the Department, the Subrecipient shall be responsible for the following: Prepare and submit the PS&E and other contract documents to the Department for review and approval in accordance with I.M. 3.700, Check and Final Plans and I.M. 3.500, Bridge or Culvert Plans, as applicable. ii. The contract documents shall use the Department's Standard Specifications for Highway and Bridge Construction. Prior to their use in the PS&E, specifications developed by the Subrecipient for individual construction items shall be approved by the Department. iii. Follow the procedures in I.M. 5.030, Iowa DOT Letting Process, to analyze the bids received, make a decision to either award a contract to the lowest responsive bidder or reject all bids, and if a contract is awarded, execute the contract documents in Doc Express. c. For projects that are let locally by the Subrecipient, the Subrecipient shall follow the procedures in I.M. 5.120, Local Letting Process, Federal -aid. d. The Subrecipient shall forward a completed Project Development Certification (Form 730002) to the Department in accordance with I.M. 5.050, Project Development Certification Instructions. The project shall not receive FHWA authorization for construction or be advertised for bids until after the Department has reviewed and approved the Project Development Certification. e. If the Subrecipient is a city, the Subrecipient shall comply with the public hearing requirements of the Iowa Code section 26.12. f. The Subrecipient shall not provide the contractor with notice to proceed until after receiving notice in Doc Express that the Department has concurred in the contract award. 8. Construction. a. A full-time employee of the Subrecipient shall serve as the person in responsible charge of the construction project. For cities that do not have any full-time employees, the mayor or city clerk will serve as the person in responsible charge, with assistance from the Department. b. Traffic control devices, signing, or pavement markings installed within the limits of this project shall conform to the "Manual on Uniform Traffic Control Devices for Streets and Highways" per 761 IAC Chapter 130. The safety of the general public shall be assured through the use of proper protective measures and devices such as fences, barricades, signs, flood lighting, and warning lights as necessary. c. For projects let through the Department, the project shall be constructed under the Department's Standard Specifications for Highway and Bridge Construction and the Subrecipient shall comply with the procedures and responsibilities for materials testing according to the 10 Page 203 of 865 January 2023 Department's Materials I.M.s applicable to the letting. Available on-line at: https://www.iowadot.gov/erl/index.html. d. For projects let locally, the Subrecipient shall provide materials testing and certifications as required by the approved specifications. e. If the Department provides any materials testing services to the Subrecipient, the Department will bill the Subrecipient for such testing services according to its normal policy as per Materials I.M. 103, Inspection Services Provided to Counties, Cities, and Other State Agencies. f. The Subrecipient shall follow the procedures in I.M. 6.000, Construction Inspection, and the Department's Construction Manual, as applicable, for conducting construction inspection activities. 9. Reimbursements. a. After costs have been incurred, the Subrecipient shall submit to the Department periodic itemized claims for reimbursement for eligible project costs. Requests for reimbursement shall be made at least once every six months but not more than bi-weekly. b. To ensure proper accounting of costs, reimbursement requests for costs incurred prior to June 30 shall be submitted to the Department by August 1. c. Reimbursement claims shall include a certification that all eligible project costs, for which reimbursement is requested, have been reviewed by an official or governing board of the Subrecipient, are reasonable and proper, have been paid in full, and were completed in substantial compliance with the terms of this agreement. d. Reimbursement claims shall be submitted on forms identified by the Department along with all required supporting documentation. The Department will reimburse the Subrecipient for properly documented and certified claims for eligible project costs. The Department may withhold up to 5% of the federal share of construction costs or 5% of the total federal funds available for the project, whichever is less. Reimbursement will be made either by state warrant or by crediting other accounts from which payment was initially made. If, upon final audit or review, the Department determines the Subrecipient has been overpaid, the Subrecipient shall reimburse the overpaid amount to the Department. After the final audit or review is complete and after the Subrecipient has provided all required paperwork, the Department will release the federal funds withheld. e. The total funds collected by the Subrecipient for this project shall not exceed the total project costs. The total funds collected shall include any federal or state funds received, any special assessments made by the Subrecipient (exclusive of any associated interest or penalties) pursuant to Iowa Code Chapter 384 (cities) or Chapter 311 (counties), proceeds from the sale of excess right-of-way, and any other revenues generated by the project. The total project costs shall include all costs that can be directly attributed to the project. In the event that the total 11 Page 204 of 865 January 2023 funds collected by the Subrecipient do exceed the total project costs, the Subrecipient shall either: in the case of special assessments, refund to the assessed property owners the excess special assessments collected (including interest and penalties associated with the amount of the excess), or ii. Refund to the Department all funds collected in excess of the total project costs (including interest and penalties associated with the amount of the excess) within 60 days of the receipt of any excess funds. In return, the Department will either credit reimbursement billings to the FHWA or credit the appropriate state fund account in the amount of refunds received from the Subrecipient. 10. Project Close-out. a. Within 30 days of completion of construction or other activities authorized by this agreement, the Subrecipient shall provide written notification to the Department and request a final audit, in accordance with the procedures in I.M. 6.110, Final Review, Audit, and Close-out Procedures for Federal -aid, Federal -aid Swap, and Farm -to -Market Projects. Failure to comply with the procedures will result in loss of federal funds remaining to be reimbursed and the repayment of funds already reimbursed. The Subrecipient may be suspended from receiving federal funds on future projects. b. For construction projects, the Subrecipient shall provide a certification by a professional engineer, architect, or landscape architect as applicable, licensed in the State of Iowa, indicating the construction was completed in substantial compliance with the project plans and specifications. c. Final reimbursement of federal funds shall be made only after the Department accepts the project as complete. d. The Subrecipient shall maintain all books, documents, papers, accounting records, reports, and other evidence pertaining to costs incurred for the project. The Subrecipient shall also make these materials available at all reasonable times for inspection by the Department, FHWA, or any authorized representatives of the federal government. Copies of these materials shall be furnished by the Subrecipient if requested. Such documents shall be retained for at least 3 years from the date of FHWA approval of the final closure document. Upon receipt of FHWA approval of the final closure document, the Department will notify the Subrecipient of the record retention date. e. The Subrecipient shall maintain, or cause to be maintained, the completed improvement in a manner acceptable to the Department and the FHWA. 12 Page 205 of 865