SJR 60: Virginia's Future Transportation Needs

November 27, 2006

The meeting was called to order by the Delegate Wardrup, Jr., co-chair of the joint subcommittee. He introduced Commissioner of the Virginia Department of Transportation (VDOT), Mr. David Ekern, who made a few opening remarks.

Presentations

Dr. Gary Allen, Chief of Technology, Research, and Innovation, VDOT
Dr. Allen updated the members on the consolidation of maintenance facilities and interstate outsourcing currently underway which he stated is a result of VDOT's work to streamline its operation and reduce costs. The two main factors taken into consideration in consolidating maintenance facilities across the Commonwealth were:

• The number of superintendents needed to manage the work statewide.
• The number of needed facilities from which to deploy.

Lane miles and traffic volumes, population and growth, response time, and deicing chemical storage requirements were taken into consideration with extensive review and involvement by each of the individual districts. Dr. Allen stated that the final decision as to maintenance facility consolidation will be made by the Commissioner near the middle of December. VDOT has a target reduction of facilities from 335 to 244, 176 of these being retained as area headquarters and 68 retained for other purposes such as storage for materials and equipment. Approximately 600 positions will be impacted by the consolidation and an expected reduction of $4 million in costs.

In regards to interstate maintenance outsourcing, Dr. Allen reminded the members that this outsourcing was provided for in recent legislation (HB 667) and requires that it be completed by June 30, 2009. Interstate outsourcing contracts include maintenance for roadways, drainage, structures, signs, vegetation control, traffic services, incident management, snow and ice control, pavement resurfacing, and bridge rehabilitation. Contracts for two portions of Interstate 64 have been awarded to date with the remaining to be awarded within the next two years. Outsourcing interstate maintenance is expected to produce an $8.9 million reduction in costs.

Mal Kerley, Chief Engineer, VDOT
Mr. Kerley gave a presentation on TIFIA Loans, an update on the status of PPTAs, and information on asphalt pricing trends. Mr. Kerley explained that TIFIA Loans provide federal credit assistance to nationally or regionally significant surface transportation projects, including highway, transit, and rail with a goal of leveraging limited federal resources and stimulating private capital investment in transportation infrastructure. TIFIA loans may be utilized as the nonfederal share to federal funding on a qualifying project. TIFIA contributions are limited to 33 percent and must be repaid within 35 years after the project's substantial completion.

As for the PPTA update, Mr. Kerley stated that since 1995, 53 proposals have been received for 27 different projects/contracts, and five contracts have been completed; these include Route 895, Route 288, Route 199, Route 58, and Interstate Maintenance. Proposals have been received for two more projects: Interstate 81 and U.S. Route 460. In addition, VDOT is currently managing six contracts including Interstate Maintenance, Interstate 495 HOT Lanes, Route 28, Route 895 Concession, Coalfields Expressway, and Interstate 95/395. Mr. Kerley closed his presentation by stating that conventional asphalt prices have risen from $35.65/ton in 2001 to $51.70/ton in 2006 and gave some other more detailed, statistical data.

Draft Legislation

The members closed the meeting with an overview of draft legislation that passed the House in the 2006 Special Session but was not acted on favorably by the Senate. Chairman Wardrup stated that the following bills would most likely be introduced in the 2007 Session of the General Assembly: HB 5016, HB 5047, HB 5062, HB 5065, HB 5066, HB 5067, HB 5068, and HB 5069.

Co-Chair:
The Hon. Martin E. Williams

Co-Chair:
The Hon. Leo C. Wardrup, Jr.

For information, contact:
Alan Wambold and Stephanie, DLS Staff

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