2012 TRB State Representatives Annual Meeting July 24, 2012 Leading in Lean Times Rich Tetreault, PE Vermont Agency of Transportation

L EAN ? Transportation Revenues Infrastructure Health Time Staff Size Knowledge & Experience Construction Materials Quality Climate Predictability Federal Funding Predictability Appropriate Driver Behavior 2

VT RANS ’ S IX Y EAR B UDGET H ISTORY FY2013 is a record high! 3

P AVING $28 million increase (36%) 70 miles on interstate 220 miles on state highways 4

B RIDGE P ROGRAMS $18.0 million increase (17%) ◦ Town Highway Bridges  $3.1m increase (17.7%)  First ABP project - Thetford ◦ State Highway Bridges  $3.2m decrease (6%)  Reflects completion of Lake Champlain Bridge ◦ Interstate Bridges  $18.0m increase (50%)  Three design-build projects  Brattleboro  Milton  Windsor 5

S OME P RE R ECORD L EVEL H ISTORY 2005 – Weak revenues required tough decisions 2007 – Revenue and Expenditure forecasts yielded Vermont’s “The Road to Affordability” – American Recovery & Reinvestment Act (ARRA) 2011 – Tropical Storm Irene 6

2005 W EAK S TATE R EVENUES Nine VTrans District Transportation Administrators cut down to five Agency wide reduction in force Project Prioritization Some things went undone Increased consultant and temporary employee usage 7

R OAD T O A FFORDABILITY AND R EALIGNMENT OF P RIORITIES Primary investment in traveler safety and the preservation of existing infrastructure. Optimize resource performance by focusing attention on a realistic number of large projects. Limit annual funding of new roadway segments at 30% of the total Roadway Program (in FY07 about $20M) per year including Design & Construction. 8 8

ARRA Already Agency reduced workforce expected to obligate millions of dollars under tight timeframes Use of consultants as Project Managers Innovative Contracting ◦ Design/Build Legislation Passed and first projects rolled out. ◦ FHWA SEP-14 using Maintenance Rental Agreements ◦ Accelerated Bridge Construction 9

A CCELERATED B RIDGE P ROGRAM Now is the Time!

Tropical Storm Irene August Transformational 11

12 Moretown North Main Street - Waterbury Waitsfield

I RENE I NNOVATION T ASK T EAM March, 2012

H IGH L EVEL R ECOMMENDATIONS Increase the use of cross-functional teams Increase capacity in documenting new processes Prioritize integration with other state agencies 14

W ORKFLOW Streamline the permitting process Evaluate other process for the need to streamline Move away from committees and towards task groups Close roads more frequently 15

I NFORMATION T ECHNOLOGY Many IT innovations were used during Irene response and can increase efficiency of the agency. To implement IT innovations VTrans needs ◦ End users who are willing to pilot and champion them ◦ The capacity to design and map the new process ◦ The ability to develop policies and governance structures 16

O PERATIONS Work to recruit young talent Work to create a less risk adverse culture Simplify design plans Prioritize prevention work ◦ Selective stream stabilization ◦ Including ability to withstand flooding in design criteria for bridges 17

Lean “Times”? Leadership and Management mindset must function over multiple year timeframes. Asset Management Performance Management Measure Results 18

Pavement International Scanning Tour Key Findings Agency culture supports a long-term view towards managing pavements. Elected officials understand their responsibilities as stewards of public funds. The road network is managed as a service provided to the traveling public. Agency priorities are known and agency personnel are held accountable for their actions. Agencies recognize the importance of building internal capacity and capabilities. Efficiency and value have driven program delivery approaches. 19

Vermont’s Asset Management Pavements – Developed and evolving Bridges – Developed and evolving Culverts – Under Development Signs – Developed and evolving Airports –Developed and evolving Railroads – Under Development 20

T RI S TATE P ERFORMANCE M EASURES 21

22 T RI S TATE P ERFORMANCE M EASURES

23 T RI S TATE P ERFORMANCE M EASURES

“L EADING ” IN L EAN T IMES Awareness Tough Decisions Comfort Zone Risk Management Vision Bold Communication Accountability Hope 24

Thank You 25