La. Admin. Code tit. 56 § III-2111

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-2111 - Evaluation

A. Analysis. In determining a score to prioritize the request for funds, the following factors will be considered:

1. technical feasibility;

2. economic feasibility;

3. economic impacts; and

4. port management.

a. Technical Feasibility. Indicators of technical feasibility are as follows:

i. completeness of project design;

ii. appropriate consideration of alternatives;

iii. compatibility of project to port's master plan;

iv. level of detail of preliminary plans (should be adequate to allow award of a construction contract within a year but still allow input from the department);

v. items of work as shown in the cost estimate are at a level of detail that may be readily verified.

b. Economic Feasibility. The primary factor in determining economic feasibility is the benefit-cost ratio. For purposes of evaluation, the investment is the amount of program funds needed for the proposed port improvement project.

c. Economic Impacts. The economic impacts are to be analyzed by the number of permanent jobs created or saved by the port improvement project after construction.

d. Port Management. The primary factor in appraising the management of the port is the average return on investment for the last five years.

e. Location. The elements in assessing the port's location are as follows:

i. adequacy of the navigable waterways;

ii. suitable railroad access;

iii. ample highway facilities;

iv. location of nearest competing port.

f. Multi-Year Projects. Multi-year projects will receive priority over new projects after the initial year of funding, provided the years are consecutive and the implementation of the previous year components was in accordance with the Program Procedure Manual.

B. Methodology

1. The procedure for evaluating applications for funding is as follows.

a. Completeness. If an application is complete, then proceed, otherwise advise applicant so that he may provide missing data for funding consideration next submittal date.

b. Need. Is the need verifiable and real? If not then application will be rejected.

c. Location. The port must be located on an adequate navigable waterway, and upon completion of the proposed port improvement, have sufficient rail and/or highway access. Also, the port must be situated so that the improvement will not just shift trade from one Louisiana port to another. Noncompliance will result in rejection.

d. the minimum rate of return for the state's investment as defined herein or more shall be funded by the program.

e. Benefit-Cost Ratio. Only projects that have a benefit-cost ratio equal to one or more shall be funded by the program. In calculating the B/C for this criteria, the cost shall be the total investment, both private and public, needed to implement the total project and derive the benefits. Note that the B/C used in the economic feasibility is based on program funds in lieu of total investment.

i. For projects that have a private investment that is equal to or greater than the amount of program funds required, the project may be exempted from this requirement. If exempted, the project must meet a program benefit-cost ratio equal to one or more. The cost for the program benefit-cost ratio is equal to the amount of program funds required for the project.

f. Technical Feasibility (60 points) To proceed, the technical feasibility score must be 40 or more.

g. Economic Feasibility (250 points) Projects with benefit-cost ratios greater than 10 are scored from 100 to 250 points with the highest of those ratios receiving 250 points. The remaining projects with benefit-cost ratios greater than 10 are pro-rated. Projects with benefit-cost ratios of 10 or less are scored from 0 to 100 points with the highest of those ratios receiving 100 points. The remaining projects with benefit-cost ratios of 10 or less are pro-rated.

h. Economic Impacts. (20 points) The project which creates or saves the most jobs per state investment receive the maximum points. The others are pro-rated.

i. Management of Port. (20 points) The port with the highest rate of return on investment for the last five years will receive 20 points. The others are pro-rated.

2. After the applications have been analyzed, they shall be graded by the department according to the point system above. The projects will then be prioritized by score.

La. Admin. Code tit. 56, § III-2111

Promulgated by the Department of Transportation and Development, Division of Flood Control and Water Management, LR 18:758 (July 1992), repromulgated by the Department of Transportation and Development, Office of Public Works, LR 31:942 (April 2005), amended LR 34:1046 (June 2008), Amended by the Department of Transportation and Development, Office of Multimodal Commerce, LR 491443 (8/1/2023).

AUTHORITY NOTE: Promulgated in accordance with R.S. 34:3451-3463.