Mn/DOT Economic Recovery Program Update Feb. 19, 2009

Enacted Bill & Modal Program Overview Tim Henkel, Mn/DOT Enacted Bill & Modal Program Overview Tim Henkel, Mn/DOT

Enacted Economic Stimulus Bill Final version (enacted Feb. 17, 2009) $48.12 billion for transportation Highways and bridges: $27.5 billion Minnesotas share approximately $502 million Mn/DOT/local split- $345 Mn/DOT; $155 local High-speed and Intercity Passenger Rail: $8 billion Amtrak $1.3 billion Transit formula: $6.9 billion Minnesotas share approximately $92 million Transit fixed-guideway: $750 million Transit new starts: $750 million Competitive Surface Transportation Grants: $1.5 billion Airports: $1.1 billion Final version (enacted Feb. 17, 2009) $48.12 billion for transportation Highways and bridges: $27.5 billion Minnesotas share approximately $502 million Mn/DOT/local split- $345 Mn/DOT; $155 local High-speed and Intercity Passenger Rail: $8 billion Amtrak $1.3 billion Transit formula: $6.9 billion Minnesotas share approximately $92 million Transit fixed-guideway: $750 million Transit new starts: $750 million Competitive Surface Transportation Grants: $1.5 billion Airports: $1.1 billion

Supplemental Discretionary Grants for a National Surface Transportation System $1.5 Billion $20 million minimum (may be waived) $300 million maximum per state/project Criteria - Project of national, metropolitan or regional significant impact Up to 100% federal funding Grant criteria from US DOT in 180 days $1.5 Billion $20 million minimum (may be waived) $300 million maximum per state/project Criteria - Project of national, metropolitan or regional significant impact Up to 100% federal funding Grant criteria from US DOT in 180 days

Supplemental Discretionary Grants for a National Surface Transportation System Potentially eligible projects Highways and bridges Passenger rail - Capacity improvement project Freight rail - Rail line rehabilitation - Intermodal yard Port infrastructure - Intermodal terminal - Dock wall Transit - Bus facilities - Fleet replacement Up to 100% federal share Potentially eligible projects Highways and bridges Passenger rail - Capacity improvement project Freight rail - Rail line rehabilitation - Intermodal yard Port infrastructure - Intermodal terminal - Dock wall Transit - Bus facilities - Fleet replacement Up to 100% federal share

Transit Capital Assistance: $6.9 B Urbanized Area Formula Grants (5307) $5.5 B Minnesota allocation $73 M – to Duluth, St. Cloud, Rochester, Moorhead, La Crescent, Met Council Other than Urbanized Formula Grants (5311) $.69 B Minnesota allocation $19 M Project selection criteria In 10-year capital plans Meet vehicles requirements: Mileage, age, useful life Meet facilities requirements: NEPA, property, permits Illustrative projects Vehicles: Buses and vans Facilities: Bus garages, transfer stations, shelters, fare boxes, park and rides, ITS equipment Up to 100% federal share, Obligate 50% within 180 days, 50% within 1 year Urbanized Area Formula Grants (5307) $5.5 B Minnesota allocation $73 M – to Duluth, St. Cloud, Rochester, Moorhead, La Crescent, Met Council Other than Urbanized Formula Grants (5311) $.69 B Minnesota allocation $19 M Project selection criteria In 10-year capital plans Meet vehicles requirements: Mileage, age, useful life Meet facilities requirements: NEPA, property, permits Illustrative projects Vehicles: Buses and vans Facilities: Bus garages, transfer stations, shelters, fare boxes, park and rides, ITS equipment Up to 100% federal share, Obligate 50% within 180 days, 50% within 1 year

High-speed Rail and Intercity Passenger Rail: $8B Competitive grants to states for: High speed rail corridors Intercity rail passenger service Congestion mitigation projects Criteria US DOT issue grant requirements and procedures in 120 days (Mid June, 2009) Use by 2012 Up to 100% federal funding Competitive grants to states for: High speed rail corridors Intercity rail passenger service Congestion mitigation projects Criteria US DOT issue grant requirements and procedures in 120 days (Mid June, 2009) Use by 2012 Up to 100% federal funding

Airport Improvement Grants $1.1 B Airports municipally owned Priorities developed locally, prioritized statewide by FAA with input from Mn/DOT 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 Mn/DOT 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

Airport Improvement Grants: $1.1 B Illustrative projects Pavements: Runways, taxiways, aprons (aircraft parking) Expansions: Lengthen runways and taxiways Buildings: Hangars, terminals, snow removal Equipment buildings 100% Federal share 50% Awarded to grantees within 120 days, 50% within 1 year Use by 2010 Illustrative projects Pavements: Runways, taxiways, aprons (aircraft parking) Expansions: Lengthen runways and taxiways Buildings: Hangars, terminals, snow removal Equipment buildings 100% Federal share 50% Awarded to grantees within 120 days, 50% within 1 year Use by 2010

Mn/DOT 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:

Mn/DOT 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:

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 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 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 timelines State timelines 50% of funds require authorization in 120 days Unauthorized funds up to 50% go to DC for redistribution Remainder of all funds require authorization by Feb. 17, 2010 Reporting requirements: 90 days, 180 days, 1 year, 2 years, 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 120 days Unauthorized funds up to 50% go to DC for redistribution Remainder of all funds require authorization by Feb. 17, 2010 Reporting requirements: 90 days, 180 days, 1 year, 2 years, 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 Date of enactment June day deadline 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 Date of enactment June day deadline

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)

Next Steps Finalize program based on funding constraints Continue developing projects MPO Approvals Authorization of projects FHWA First letting on March 13 Approx. $46.5 million Anticipated start of construction: Early May Reporting and tracking progress Communication Finalize program based on funding constraints Continue developing projects MPO Approvals Authorization of projects FHWA First letting on March 13 Approx. $46.5 million Anticipated start of construction: Early May Reporting and tracking progress Communication