1. Office of Project Development Department of Highways Retreat June 12, 2008

2. Project Development Highway projects can be generally characterized into two broad types of projects: –One of which is to provide access and mobility –The other is related towards preserving our current highway system

3. System Preservation Activities System Preservation – any activity to maintain our existing highway system –Examples from the PreCon database include: Resurfacing and asphalt overlay Bridge and pavement rehabilitation Bridge replacement Restoration County Road Aid Transportation Enhancement

4. Access & Mobility Activities Access & Mobility – any other activity to enhance and add capacity to the current highway system –Examples from the PreCon database include: Major and minor widening New route construction Reconstruction Relocation Interchange reconstruction

5. Total Historic Expenditures by Phase

6. DRU % of Total Project Expenditures

7. Expenditures by Type of Work (for all Phases)

8. Total Expenditures by Phase

9. So where are we now?

10. Active Preconstruction 6YP Projects

11. Total Projected Funding by Phase

12. Projected Funding by Type of Work (for all Phases)

13. Total Projected Funding by Phase

14. Total Projected Funding by District (Through FY 2010)

15. Historic Fiscal Issues In 2000, the General Assembly mandated a spend-down of the $800m cash reserve and transition to Cash Flow Management system The proposed gas tax increase was not passed by legislation, causing the Six-Year Plan to become unbalanced and grossly under-funded

16. We had to pull a rabbit out of our hat

17. Creative Financing Solutions 1) $440m in GARVEE bonds –$150m in FY05, $290m in FY06 –Used for IM and NH projects on I-65 and I-75 2) $650m in state bonds –$300m in FY05, $350m in FY06 Total bonds were more than $1 billion –All funds went towards the construction phase and is complete or currently under construction

18. Creative Financing Solutions (cont.) 3) Deferred construction payments –Increased cash on hand for future projects 4) Cash Flow Management process –Projects were let with cash on hand –Projected future revenues had to be higher than current expenditures to remain balanced

19. Current Financing Issues 1) Our credit card is maxed out 2) We have no new revenue source 3) Not as much construction for the same price –The Producers Price Index for highway construction shows: Using 2000 as the base year, a 43% increase through 2007 Using 2007 as the base year, a 12% increase through April 2008

20. It is time to pull out another rabbit

21. New Transportation Delivery Process 1)Take a business approach to analyze the transportation system we are delivering Satisfy our customers Deliver our transportation system more prudently and at a more economical cost 2)Satisfy only purpose and need of project 3)Streamline organization Transition current staff into flexible positions Explore potential for additional outsourcing

22. New Transportation Delivery Process (cont.) 4)Improve technological delivery processes and cost-saving measures, such as: Efficient management tools for project managers Expand databases to allow electronic delivery of project information, plan sets, and procurement documents Implement a GIS-based right-of-way system and a holistic approach to right-of-way and utility activities 5)Focus on type of road and safety need, such as: Spot improvements Safety improvements Bridge replacement Median-crossover protection Roadside hazard-elimination Upgrading our existing infrastructure

23. Developing Projects with Limited Funds Options to continue a sustainable highway network with limited funds: –Develop innovative financing methods to continue highway projects –Develop cost-effective projects –Focus on smaller budget items such as highway safety

24. Rural Highway Mileage

25. Rural Highway AADT

26. Fatal Rural Crash Rates (per 100mvm)

27. Urban Highway Mileage

28. Urban Highway AADT

29. Fatal Urban Crash Rates (per 100mvm)