Overview of the IT 3 Initiative CONFIDENTIAL Discussion Document September 2008

1 Develop Investment Strategy Phase 1 Late Sept. – end Nov. 2008Jun. – Oct Phase 2 Benchmark other states’ transportation successes Develop strategies and goals Estimate cost Set up policies and governance Project prioritization Develop options to pay for improved mobility –Leveraging existing revenues –Examining new equitable and sustainable resource options January 2009 – Legislative and/or budgetary actions Refine policies Translate to operating plans Continued improvement of project delivery Begin Execution of Strategy Support Strategy with Resources Phase 3 Develop investment strategy Execute with focus Support strategy with resources Building management capacity at GDOT Building relationships with partners 1 IT3: INVESTING IN TOMORROW’S TRANSPORTATION TODAY

2 WE WILL ENGAGE THE STATE TRANSPORTATION BOARD THROUGHOUT THE PROCESS PRELIMINARY July 16: Applying “business planning” to Georgia’s transportation strategy Week of October 1: Review of proposed investment scenarios for other regions (2 hours) August 20: Finalizing objectives for the state investment strategy October 29 (offsite): Review of scenario results and implications for choices August 14: Review of goals and “customer service objectives” October 15: Offsite agenda and proposed scope of work for financial analysis Week of September 8 th ?: Past performance and key choices for the state November 12: Initial findings on financial options September 17: Review of proposed investment scenarios for non attainment regions (1 hour) Week of November 20: Update on financial options and implications for key choices

3 OVERVIEW OF STRATEGIC GOAL-SETTING PROCESS Focus of discussions to date Develop targets and scenarios Freight Rural citizen Medium-sized city Suburban resident Urban dweller Inputs: Set objectives Determine performance measures MPO/stakeholder interviews Board interviews and vision Goals/objectives in competing states GA performance vs. peers User group expectations 5 guiding principles Location site consultant interviews Set goals Prioritize objectives and measures

4 Source:State transportation plans GOALS FOR GEORGIA Economic development and competitiveness Economic development and competitiveness Support Georgia’s economic growth and competitiveness Economic development and competitiveness Economic development and competitiveness Ensure safety and security Economic development and competitiveness Economic development and competitiveness Maximize the value of GA’s transportation assets Economic development and competitiveness Economic development and competitiveness Protect the environment Reflects: Goals embraced by other countries, states, and cities Priorities articulated by the Board in interviews and discussed in August 14 th Board Committee meeting Transportation service objectives by citizen groups and freight haulers PRELIMINARY Equity/social inclusion

5 Source:State transportation plans; Congestion and Mobility Task Force; MPO / stakeholder interviews; Board member interviews; team analysis ALIGNMENT ON PERFORMANCE OBJECTIVES (1/2) Goals Move Georgia ’ s citizens to work, school, and play reliably, affordably, and within an acceptable time frame Support development patterns that improve Georgians ’ access to efficient, desirable living environments that fit their surroundings Increase the labor-shed and accessibility of Georgia ’ s regional employment centers Reduce congestion costs to Georgia ’ s economy below that of competitors Capture Georgia ’ s growth opportunity in freight and logistics –Provide sufficient network capacity –Ensure efficient connections between key origins and destinations Objectives Support Georgia’s economic growth and competitive- ness PRELIMINARY Population GDP Employment

6 ALIGNMENT ON PERFORMANCE OBJECTIVES (2/2) Goals Sustain existing transportation infrastructure at a level that balances efficient use of resources and usable life Optimize throughput of people and goods in existing network assets Accelerate the delivery of new capacity, while balancing quality and cost Objectives Maximize the value of GA’s transportation assets Ensure safety and security Reduce injuries and fatalities on the transportation system Minimize accidents on road and rail that cause losses to freight Create a transit environment that is comfortable and secure throughout its hours of operations PRELIMINARY Improve air quality and reduce the number of smog days Minimize the impact of transportation on the environment (e.g., land and water usage; energy use) Protect the environment Source:State transportation plans; Congestion and Mobility Task Force; MPO / stakeholder interviews; Board member interviews; team analysis

7 CHOOSING OBJECTIVES FOR INVESTMENT SCENARIOS Source: Team analysis PRELIMINARY There are two primary criteria for determining which transportation objectives could be used as a “centerpiece” for an investment strategy: 2. Can the state “move the needle”?1. Is there a performance gap (today or in the future) ? Change trajectory Acceptable Good Change trajectory Acceptable Good If Georgia’s transportation is underperforming relative to targets and the State can influence the network’s performance, then the objective could be a “priority” for an investment case

8 PROPOSED SCREENING PROCESS Is there a performance gap (today or in the future)? Can the state “move the needle”? Focus of investment modeling* 13 objectives (E.g., objectives) (E.g., 3 – 4 objectives) *Objectives with acceptable performance and/or trajectory will be modeled at current/acceptable levels ILLUSTRATIVE PRELIMINARY

9 NEXT STEPS Determine performance measures and targets –Tailor to different parts of the state, as appropriate –Syndicate objectives with other stakeholders Prioritize objectives and determine which 3-5 are potential “centerpieces” of an investment case Determine potential strategies for accomplishing the objectives and begin development of investment “scenarios” –Outcomes to drive –Role of supply-side investments vs. demand management in achieving the outcome –Role of different modes (e.g., road, transit, bike/ped) within “supply” –Resourcing PRELIMINARY