Mn/DOT Economic Recovery Forum

1. Mn/DOT Economic Recovery Forum Feb. 13, 2009

2. 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 Agenda

3. Welcome Julie Skallman, Mn/DOT

4. Modal Program Overview Tim Henkel, Mn/DOT

5. Status of Stimulus Bills • House Version (as passed January 28) • $46.1 billion for transportation • Highways and Bridges: $30 billion • Minnesota’s 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

6. Status of Stimulus Bills • Senate Version (as passed February 10) • $45.47 billion for transportation • Highways and Bridges: $27 billion • Minnesota’s 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

7. 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: www.mndot.gov

8. 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: www.mndot.gov

9. 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

10. 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

11. 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

12. 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

13. Highway Program Overview Jon Chiglo, Mn/DOT

14. 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

15. 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

16. 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 13th • 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

17. 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

18. 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)

19. 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)

20. Program Delivery • What does Authorization mean? • The time plans are advertised • The time Request for Proposals (RFP’s) 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 2nd and 17th are Saturday, Sunday respectively and so we use the previous working day

21. Highway Program delivery timeline(based on House bill) • Feb. 16 - 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

22. 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

23. 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)

24. Break

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

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

27. Appropriation for Highways $27.06 Billion Less Administration Up to $12 Million Federal Lands Highways Programs Indian Reservation Roads $320 M Park Roads & Parkways $100 M Forest Highways $70 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 S. 336 as Reported

28. 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 Park Roads & Parkways $250 M Highway Surface Transportation & Technology Training (§140(b)) - $20 M DBE Bonding Assistance – 49 USC §332(e) - $20 M Apportionment to Each State - Total $29.2 B Apportionment to Puerto Rico and Territories - Total $154.2 M Any Area of State - 55% Further Sub-Allocation per 23 USC 133(d) – 45% Transportation Enhancements – 10% Sub-Allocation by Area – 90% To Areas Based on Population - 62.5% Any Area of State - 37.5% To Individual Urbanized Areas over 200,000 by % of Population To Areas with Population ≤ 200,000 To Areas with Population < 5,000

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

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

31. 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

32. Question and Answer Session

33. Future Communications Kevin Gutknecht, Mn/DOT

34. Mn/DOT Contacts State Aid – Rick Kjonass, 651-366-3802, rick.kjonaas@dot.state.mn.us Freight – Bill Gardner, 651-366-3665, william.gardner@dot.state.mn.us Highways – Jon Chiglo, 651-366-4826, jon.chiglo@dot.state.mn.us Transit – Tom Gottfried, 651-366-4171, tom.gottfried@dot.state.mn.us Bike and pedestrian – Tim Mitchell, 651-366-4162, tim.mitchell@dot.state.mn.us Passenger rail – Mike Schadauer, 651-366-4161, mike.schadauer@dot.state.mn.us Aeronautics – Peter Buchen, 651-234-7242, peter.buchen@dot.state.mn.us Communications – Kevin Gutknecht, 651-366-4266, kevin.gutknecht@dot.state.mn.us Mn/DOT Web site: www.mndot.gov

35. Communications • Mn/DOT Web site – www.mndot.gov • Link to Recovery site on home page

36. Closing Remarks Commissioner Tom Sorel, Mn/DOT