State of SCDOT Feb 2019 Introduce Commission and Direct Reports

Year 2 of the Phased-in 12¢ Gas Tax Increase

Infrastructure Maintenance Trust Fund (IMTF) New Roads Bill Revenues CTC’s Share of the Increase “Old Money” Swept In $506M Deposited since July 1, 2017 LAC Recommendations implemented. Efficiency Study completed & moving forward with implementation. Developed a new Strategic Plan & embraced Performance Management. Organized and held regional CTC meetings to share information. Now moving to larger regional meetings. Contractor, utility and material supplier industry outreach. Strong Internal Audits, including Six Sigma. 3

How is the Trust Fund being utilized? LAC Recommendations implemented. Efficiency Study completed & moving forward with implementation. Developed a new Strategic Plan & embraced Performance Management. Organized and held regional CTC meetings to share information. Now moving to larger regional meetings. Contractor, utility and material supplier industry outreach. Strong Internal Audits, including Six Sigma. 4

Infrastructure Maintenance Trust Fund (IMTF) Rural Road Safety, Pavements, Bridges, Interstate Widening CTC’s Share Tax Credit Transfer to DOR LAC Recommendations implemented. Efficiency Study completed & moving forward with implementation. Developed a new Strategic Plan & embraced Performance Management. Organized and held regional CTC meetings to share information. Now moving to larger regional meetings. Contractor, utility and material supplier industry outreach. Strong Internal Audits, including Six Sigma. 5

Infrastructure Maintenance Trust Fund (IMTF) $914 Million Committed to Road and Bridge Projects $764M in Rural Road Safety, Paving, Bridges and Interstate Work under Construction $150M in Rural Road Safety and Bridges in Development LAC Recommendations implemented. Efficiency Study completed & moving forward with implementation. Developed a new Strategic Plan & embraced Performance Management. Organized and held regional CTC meetings to share information. Now moving to larger regional meetings. Contractor, utility and material supplier industry outreach. Strong Internal Audits, including Six Sigma. 6

Contractors are Paid as the Work is Completed $98 Million Paid Out since July 1, 2017 The State of SCDOT is: focused and we understand the expectation that these funds are spent wisely. We are currently at our highest level of activity over the past decade and there is much more coming down the pipeline. Over the past 3 years, we have tripled the number of projects we have under construction. We currently have approx $3B in construction work on the streets. 7

The 10-Year Plan banks on the Infrastructure Maintenance Trust Fund, Federal Funds and other state funds dedicated to SCDOT LAC Recommendations implemented. Efficiency Study completed & moving forward with implementation. Developed a new Strategic Plan & embraced Performance Management. Organized and held regional CTC meetings to share information. Now moving to larger regional meetings. Contractor, utility and material supplier industry outreach. Strong Internal Audits, including Six Sigma. 8

The 10-Year Plan Investment Areas Safety $100 M Rural Interstate $110 M MPO/COG $138 M Interstate Upgrades $348 M $49 M Bridges $160 M $25M $138 M $159M $101 M $702 M $291 M Federal & State Funds Combined 9

10-Year Plan Priorities Pavements Rural Road Safety Bridges Interstates The Commission has followed the investment plan for the new funding and concurred in the priorities described to the General Assembly by SOT. Our Priorities to fund with the currently available revenues: Paving: Our plan is to double our paving program by ramping it up incrementally each year based on planned industry growth rates. Each County in the state will see a dramatic increase in paving projects. As a matter of fact, since July 1, we have put out to contract about 1300 miles of resurfacing on 1525 roads in the state. Rural Road Safety: #1 in the Nation. We are going to tackle the deadliest roads in the state. 30% of the fatalities are happening on 5% of our roads. Our target is to address about 100 miles a year. Proud of the team- maintenance already engaged and we have also modified the plan scope of work on 43 miles of resurfacing projects to include these safety features. Bridge replacements: We are being strategic in the way we are handling bridge projects now. Our goal is to completely eliminate all load restricted bridges in the state over the next 10 years. We will also tackle the SD bridges that we have on the National Highway System too. Interstate widenings: We have moved forward with several interstate widening projects that are more than a decade past due. I85/385, I 26/526 and the biggest one of all….Malfunction Junction. Major pinch points in the movement of freight in the state. 10

Projects Under Construction: Year 1 11

A Historic Level of Roadwork is Underway $3B $1B Construction Contracts 2008 2014 2018 Through the passage of Act 98, Act 275 and Act 40, we have tripled the value of construction work out on the streets. It all started in 2013 when $110M in recurring funds was sent to SCDOT, another $154M annually in 2016 and finally the landmark Roads Bill from last year. The Roads Bill is expected to add $149M to SCDOTs program the first year (this year) and then about $50M per year until fully phased in for a total of about $600M associated with the Roads Bill once the tax credit sunsets. All Acts netted together, our state dollars are expected to grow by just under $800M. The bottom line is this: The General Assembly has set the stage for a doubling of state funding for Roads in SC. Based on a previous Darla Moore School of Business study, we estimate that this will have the potential to create at least 25,000 road-construction related jobs in the state. We are seeing the industry respond and ramp up with us. 12

Our industry partners have responded $1.3B paid out 2008 2014 2018 $400M paid out Through the passage of Act 98, Act 275 and Act 40, we have tripled the value of construction work out on the streets. It all started in 2013 when $110M in recurring funds was sent to SCDOT, another $154M annually in 2016 and finally the landmark Roads Bill from last year. The Roads Bill is expected to add $149M to SCDOTs program the first year (this year) and then about $50M per year until fully phased in for a total of about $600M associated with the Roads Bill once the tax credit sunsets. All Acts netted together, our state dollars are expected to grow by just under $800M. The bottom line is this: The General Assembly has set the stage for a doubling of state funding for Roads in SC. Based on a previous Darla Moore School of Business study, we estimate that this will have the potential to create at least 25,000 road-construction related jobs in the state. We are seeing the industry respond and ramp up with us. 13

Interstates 14 ≈$1 Billion is under Construction Another ≈ $2 Billion expected to go to contract in the next 12-18 months > $3 Billion in Development Recently Approved Rural Interstate Widening Priorities 14

SC Legislature dedicating new road funding Impact of SC Legislature dedicating new road funding ≈$1 Billion Annually LAC Recommendations implemented. Efficiency Study completed & moving forward with implementation. Developed a new Strategic Plan & embraced Performance Management. Organized and held regional CTC meetings to share information. Now moving to larger regional meetings. Contractor, utility and material supplier industry outreach. Strong Internal Audits, including Six Sigma. 15

www.scdot.org 16

Looking Ahead 17 Renewal of the Federal Program How do we deal with the growth and congestion needs of the state? 17

LET ‘EM WORK, LET ‘EM LIVE Introduce Commission and Direct Reports