Mn/DOT Economic Recovery Forum Feb. 13, 2009

Agenda 8 a.m. - Welcome Julie Skallman, Mn/DOT 8:15 a.m. - Transit, Freight and Aviation Overview Tim Henkel, Mn/DOT 9 a.m. – Highway Overview Jon Chiglo 9:45 a.m - Break 8 a.m. - Welcome Julie Skallman, Mn/DOT 8:15 a.m. - Transit, Freight and Aviation Overview Tim Henkel, Mn/DOT 9 a.m. – Highway Overview Jon Chiglo 9:45 a.m - Break 10 a.m. - Federal Administration, Oversight and Reporting Derrell Turner, FHWA 10:30 a.m. Q and A session 11:30 a.m. – Future Communications Kevin Gutknecht, Mn/DOT 11:45 a.m. – Closing Commissioner Tom Sorel, Mn/DOT

Welcome Julie Skallman, Mn/DOT Welcome Julie Skallman, Mn/DOT

Modal Program Overview Tim Henkel, Mn/DOT Modal Program Overview Tim Henkel, Mn/DOT

Status of Stimulus Bills House Version (as passed January 28) $46.1 billion for transportation Highways and Bridges: $30 billion Minnesotas share approximately $487 million Intercity Passenger Rail: $1.1 billion $850 million – Amtrak $250 million – Intercity passenger Rail (FRA) Transit: $12 billion Airports: $3 billion Corps of Engineers: $4.5 billion (waterways projects) 50% obligated within 90 days of apportionment 50% obligated by August 1, 2010 House Version (as passed January 28) $46.1 billion for transportation Highways and Bridges: $30 billion Minnesotas share approximately $487 million Intercity Passenger Rail: $1.1 billion $850 million – Amtrak $250 million – Intercity passenger Rail (FRA) Transit: $12 billion Airports: $3 billion Corps of Engineers: $4.5 billion (waterways projects) 50% obligated within 90 days of apportionment 50% obligated by August 1, 2010

Status of Stimulus Bills Senate Version (as passed February 10) $45.47 billion for transportation Highways and Bridges: $27 billion Minnesotas share approximately $562 million Intercity Passenger Rail: $3.1 billion $850 million – Amtrak $250 million – Intercity passenger Rail (FRA) $2 billion – High Speed Rail Corridor Program Transit Capital: $12 billion Airports: $1.1 billion 50% obligated within 180 days 50% obligated within 1 year of enactment Senate Version (as passed February 10) $45.47 billion for transportation Highways and Bridges: $27 billion Minnesotas share approximately $562 million Intercity Passenger Rail: $3.1 billion $850 million – Amtrak $250 million – Intercity passenger Rail (FRA) $2 billion – High Speed Rail Corridor Program Transit Capital: $12 billion Airports: $1.1 billion 50% obligated within 180 days 50% obligated within 1 year of enactment

MnDOT Modal Programs and Candidate Needs Highway Infrastructure $519 million Freight Infrastructure (eligible for highway funding in Senate version) Highway/Rail Grade Crossing Safety$ 34 million Rail Infrastructure Improvements$ 20 million Port Infrastructure Improvements$ 10 million Truck Enforcement and Safety Inspection$2.5 million ** Candidate project lists can be found at: Highway Infrastructure $519 million Freight Infrastructure (eligible for highway funding in Senate version) Highway/Rail Grade Crossing Safety$ 34 million Rail Infrastructure Improvements$ 20 million Port Infrastructure Improvements$ 10 million Truck Enforcement and Safety Inspection$2.5 million ** Candidate project lists can be found at:

MnDOT Modal Programs and Candidate Needs Transit Capital Intercity Passenger Rail$160 million Bicycles and Pedestrians$ 48 million Greater Minnesota Transit$ 60 million Airport Infrastructure $122 million Pavements: e.g. Runways, Taxiways, Aprons (aircraft parking) Expansions: e.g. Lengthen Runways and Taxiways Buildings: e.g. Hangars, Terminals, Snow Removal Equipment Buildings ** Candidate project lists can be found at: Transit Capital Intercity Passenger Rail$160 million Bicycles and Pedestrians$ 48 million Greater Minnesota Transit$ 60 million Airport Infrastructure $122 million Pavements: e.g. Runways, Taxiways, Aprons (aircraft parking) Expansions: e.g. Lengthen Runways and Taxiways Buildings: e.g. Hangars, Terminals, Snow Removal Equipment Buildings ** Candidate project lists can be found at:

Freight Infrastructure Grade Crossing Safety May be eligible for funding under multiple federal programs Rail Infrastructure Improvements No federal stimulus funding identified Port Infrastructure Improvements No federal stimulus funding identified Grade Crossing Safety May be eligible for funding under multiple federal programs Rail Infrastructure Improvements No federal stimulus funding identified Port Infrastructure Improvements No federal stimulus funding identified

Transit Capital: Greater Minnesota Illustrative Projects Vehicles: Buses and vans Facilities: Bus garages, transfer stations, shelters, fare boxes, park and rides, ITS equipment Possible Project Selection Criteria Fulfill federal program guidelines In 10-year capital plans Meet requirements Vehicles: Mileage, age, useful life Facilities: NEPA, property, permits Illustrative Projects Vehicles: Buses and vans Facilities: Bus garages, transfer stations, shelters, fare boxes, park and rides, ITS equipment Possible Project Selection Criteria Fulfill federal program guidelines In 10-year capital plans Meet requirements Vehicles: Mileage, age, useful life Facilities: NEPA, property, permits

Transit Capital: Intercity Passenger Rail Illustrative Projects Preparation for improved passenger rail service Grade crossing improvements Capacity improvements Environmental documents and design Possible Project Selection Criteria Fulfill federal program guidelines Preserve infrastructure Improve safety Improve mobility Illustrative Projects Preparation for improved passenger rail service Grade crossing improvements Capacity improvements Environmental documents and design Possible Project Selection Criteria Fulfill federal program guidelines Preserve infrastructure Improve safety Improve mobility

Airport Infrastructure Airports municipally owned Priorities developed locally, prioritized statewide by FAA with input from MnDOT 96 of 136 airports statewide federal-aid eligible and able to receive stimulus funding Possible project selection criteria: project deliverability, improves safety or security, preserves infrastructure and enhances capacity Airports municipally owned Priorities developed locally, prioritized statewide by FAA with input from MnDOT 96 of 136 airports statewide federal-aid eligible and able to receive stimulus funding Possible project selection criteria: project deliverability, improves safety or security, preserves infrastructure and enhances capacity

Highway Program Overview Jon Chiglo, Mn/DOT Highway Program Overview Jon Chiglo, Mn/DOT

Program Goals Minnesota Program Even Distribution of Project Work Type across letting schedule Work Type Diversity Take advantage of entire industry capacity to deliver program Transparency Communication Program Development Administration Reporting Program/Project Progress Minnesota Program Even Distribution of Project Work Type across letting schedule Work Type Diversity Take advantage of entire industry capacity to deliver program Transparency Communication Program Development Administration Reporting Program/Project Progress

Program Development Principles Project Readiness Environmental status, R/W availability, etc. Consistency with Performance based plans/needs Commitment to make a lasting transportation need Statewide Coverage Create jobs statewide Balanced Program Use full capacity of construction industry Project Readiness Environmental status, R/W availability, etc. Consistency with Performance based plans/needs Commitment to make a lasting transportation need Statewide Coverage Create jobs statewide Balanced Program Use full capacity of construction industry

Program Delivery Project Development Lessons learned from Past Projects This is not Business as Usual Expedited Delivery Processes Letting Schedule Spaced every 14 days starting March 13 th Driven by delivery time lines in Economic Recovery Act Projects Distributed throughout letting schedule Give as many possibilities to bid contracts as possible Will be monitoring inflation closely Project Development Lessons learned from Past Projects This is not Business as Usual Expedited Delivery Processes Letting Schedule Spaced every 14 days starting March 13 th Driven by delivery time lines in Economic Recovery Act Projects Distributed throughout letting schedule Give as many possibilities to bid contracts as possible Will be monitoring inflation closely

Program Delivery Contract Administration Contracting Methods Design Bid Build, Design Build Best Value, Design Build Low Bid Package projects Max price contracts Disadvantaged Business Enterprises Goals will be established for each project Industry interaction Build off success from 35W Project Contract Administration Contracting Methods Design Bid Build, Design Build Best Value, Design Build Low Bid Package projects Max price contracts Disadvantaged Business Enterprises Goals will be established for each project Industry interaction Build off success from 35W Project

Program Delivery Economic Recovery Bill Timelines Local Timelines 50% of local funds require Authorization in 75 days Unauthorized Funds up to 50% will go to Mn/DOT as discretionary fund 50% of funds require Authorization by Aug, 2010 Reporting requirements: 30 days, 60 days, 120 days, 180 days, 1 year, 3 years Projects (Awarded, Started, Completed) Jobs (Created or Sustained) Funds (Appropriate, Allocated, Authorized) Economic Recovery Bill Timelines Local Timelines 50% of local funds require Authorization in 75 days Unauthorized Funds up to 50% will go to Mn/DOT as discretionary fund 50% of funds require Authorization by Aug, 2010 Reporting requirements: 30 days, 60 days, 120 days, 180 days, 1 year, 3 years Projects (Awarded, Started, Completed) Jobs (Created or Sustained) Funds (Appropriate, Allocated, Authorized)

Program Delivery Economic Recovery Timelines State Timelines 50% of funds require Authorization in 90 days Unauthorized funds up to 50% go to DC for redistribution 50% of all funds require Authorization by Aug, 2010 Reporting requirements: 30 days, 60 days, 120 days, 180 days, 1 year, 3 years Projects (Awarded, Started, Completed) Jobs (Created or Sustained) Funds (Appropriate, Allocated, Authorized) Economic Recovery Timelines State Timelines 50% of funds require Authorization in 90 days Unauthorized funds up to 50% go to DC for redistribution 50% of all funds require Authorization by Aug, 2010 Reporting requirements: 30 days, 60 days, 120 days, 180 days, 1 year, 3 years Projects (Awarded, Started, Completed) Jobs (Created or Sustained) Funds (Appropriate, Allocated, Authorized)

Program Delivery What does Authorization mean? The time plans are advertised The time Request for Proposals (RFPs) are issued What does Shovel Ready mean? Important Dates to remember Feb 16 – Assumed date of enactment May 1 – 75 day deadline May 15 – 90 day deadline May 2 nd and 17 th are Saturday, Sunday respectively and so we use the previous working day What does Authorization mean? The time plans are advertised The time Request for Proposals (RFPs) are issued What does Shovel Ready mean? Important Dates to remember Feb 16 – Assumed date of enactment May 1 – 75 day deadline May 15 – 90 day deadline May 2 nd and 17 th are Saturday, Sunday respectively and so we use the previous working day

Highway Program delivery timeline (based on House bill) Feb Bill Enactment Mar. 13 – First Mn/DOT Letting First report to USDOT Due April 16 – Second USDOT report May 1 50 percent local sub-allocation committed Feb Bill Enactment Mar. 13 – First Mn/DOT Letting First report to USDOT Due April 16 – Second USDOT report May 1 50 percent local sub-allocation committed

Highway Program delivery timeline (based on House bill) May 1 – Redistribution to Mn/DOT Discretionary May 15 – 50 percent State allocation committed May 15 – Redistribution to States June 15- Reports due to USDOT 120 days, 180 days, 1 year, 3 years May 1 – Redistribution to Mn/DOT Discretionary May 15 – 50 percent State allocation committed May 15 – Redistribution to States June 15- Reports due to USDOT 120 days, 180 days, 1 year, 3 years

Program Delivery Project Development Mn/DOT and Consultant resources Coordinating closely with FHWA Authorization of Projects Risk Management Who can manage the risk most effectively Coordination with Metropolitan Planning Organizations (MPO) Amendment of State Transportation Improvement Plan (STIP) Project Development Mn/DOT and Consultant resources Coordinating closely with FHWA Authorization of Projects Risk Management Who can manage the risk most effectively Coordination with Metropolitan Planning Organizations (MPO) Amendment of State Transportation Improvement Plan (STIP)

Break

FHWA Administration, Oversight and Reporting Derrell Turner, FHWA FHWA Administration, Oversight and Reporting Derrell Turner, FHWA

Highway Infrastructure Investment H.R. 1 $30 Billion S. 336 $27.06 Billion Formula (FHWA) $5.5 Billion Discretionary (OST) H.R. 1 $30 Billion S. 336 $27.06 Billion Formula (FHWA) $5.5 Billion Discretionary (OST)

Distribution of Highway Stimulus Funds under S. 336 as Reported Appropriation for Highways $27.06 Billion Less Administration Up to $12 Million Federal Lands Highways Programs Indian Reservation Roads $320 M Forest Highways $70 M Park Roads & Parkways $100 M Refuge Roads $10 M Ferry Boats and Ferry Terminal Facilities - Discretionary Grants - $60 M Apportionment to Each State (also DC & PR) To Areas Based on Population - 40%Any Area of State - 60% To Individual Urbanized Areas over 200,000 by % of Population To Areas with Population 200,000 To Areas with Population < 5,000

Distribution of Highway Stimulus Funds under H.R. 1, as Passed by House Appropriation for Highways $30 Billion Less Administration 0.2 % Deductions Indian Reservation Roads - $300 M Highway Surface Transportation & Technology Training (§140(b)) - $20 M Park Roads & Parkways $250 M DBE Bonding Assistance – 49 USC §332(e) - $20 M Further Sub-Allocation per 23 USC 133(d) – 45% To Areas Based on Population %Any Area of State % To Individual Urbanized Areas over 200,000 by % of Population To Areas with Population 200,000 To Areas with Population < 5,000 Apportionment to Each State - Total $29.2 B Apportionment to Puerto Rico and Territories - Total $154.2 M Any Area of State - 55% Transportation Enhancements – 10% Sub-Allocation by Area – 90%

What Does This Mean To Minnesota? * State $477.6 Million Twin Cities Metro Area $58.7 Million *H.R. 1 State $477.6 Million Twin Cities Metro Area $58.7 Million *H.R. 1

The Bills Do NOT Contain Language Waiving Any: Laws Regulations Policies Laws Regulations Policies

Actions To Expedite Getting Projects Moving Flexible Expedited Reviews Reduced Advertising on Select Types of Projects Alternative Contracting Mechanisms COMMUNICATE EARLY WITH YOUR FEDERAL PARTNER Flexible Expedited Reviews Reduced Advertising on Select Types of Projects Alternative Contracting Mechanisms COMMUNICATE EARLY WITH YOUR FEDERAL PARTNER

Question and Answer Session Question and Answer Session

Future Communications Kevin Gutknecht, Mn/DOT Future Communications Kevin Gutknecht, Mn/DOT

Mn/DOT Contacts State Aid – Rick Kjonass, , Freight – Bill Gardner, , Highways – Jon Chiglo, , Transit – Tom Gottfried, , Bike and pedestrian – Tim Mitchell, , Passenger rail – Mike Schadauer, , Aeronautics – Peter Buchen, , Communications – Kevin Gutknecht, , Mn/DOT Web site: State Aid – Rick Kjonass, , Freight – Bill Gardner, , Highways – Jon Chiglo, , Transit – Tom Gottfried, , Bike and pedestrian – Tim Mitchell, , Passenger rail – Mike Schadauer, , Aeronautics – Peter Buchen, , Communications – Kevin Gutknecht, , Mn/DOT Web site:

Communications Mn/DOT Web site – Link to Recovery site on home page Mn/DOT Web site – Link to Recovery site on home page

Closing Remarks Commissioner Tom Sorel, Mn/DOT Closing Remarks Commissioner Tom Sorel, Mn/DOT