Remarks to the 2005 Partnering Conference of the Kentucky by SayreW

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									Remarks to the 2005 Partnering
      Conference of the
Kentucky Transportation Cabinet
     FHWA/KYTC/ACEC

2005 Highway Program Update

       Marc D. Williams, P.E.
Commissioner, Department of Highways
     Presentation Overview
• Review of 2004 Program
• Initiatives to Improve Efficiencies,
  Program Revenues, and Financing
• Status of 2005 Program
• Looking Ahead
       Status of Construction
       Lettings and Programs
         - Calendar 2004 -
• $460 million in contract lettings
•   Resurfacing - $62 million let
•   State Construction - $7.5 million let
•   Federal Construction - $312 million let
•   Maintenance - $34 million let
      2005 Revenue Initiatives
   Made permanent the penny increase in the
    user fee (increased road fund by $15 million
    in FY 2006 and $30 million in future years)
   $10 million return of Road Fund revenue
    going to fund State Police in FY 2006
   Raised drivers license fees from $8 to $20
    per for year renewal
   Changed the collection on usage tax on
    motor vehicles from registration to titling.
      These initiatives will add over $50 million
               annually to the road fund
     2005 Financing Initiatives
   $150 Million in Federal GARVEE Bonds to
    accelerate construction of
   $300 Million in State Program Bonds to
    advance state construction projects
   $150 Million in County and City Road Bonds
    to assist localities in meeting addressing local
    road and bridge improvement needs
Financing initiatives have helped KYTC to have better
   flexibility in managing its cash flow and advance its
        construction/project development program
      Improved Efficiencies
• Modernization and Oversight of
  Contract Management
  – Deployment of new electronic
    Transport/Site Manager program
  – Quick approval and close monitoring of
    change orders
• Improve Bidding Process
  – Improved accuracy of Engineer’s Estimate
         Improve Contracting
       Processes and Oversight
             (Continued)
       Contract Modifications as a Percentage of Total
                  Contract Establishments
                                                          A ll M O D IF IC A T IO N S            % OF
                          CONTRACTS                      P R O C E S S E D D U R IN G           TOTAL
    F IS C A L Y E A R   E S T A B L IS H E D                     Y E A R (3 )                    (4 )
          2000              $ 6 2 7 ,6 0 8 ,9 8 3 .8 6               $ 8 9 ,5 6 0 ,7 4 7 .1 9 1 4 .2 7 %
          2001              $ 7 4 6 ,4 7 7 ,6 9 5 .9 4             $ 1 0 1 ,6 0 6 ,7 6 5 .3 9 1 3 .6 1 %
          2002              $ 8 3 7 ,5 4 9 ,7 2 7 .2 7               $ 7 1 ,7 4 5 ,3 8 8 .6 2    8 .5 7 %
          2003              $ 8 3 6 ,8 8 1 ,7 0 0 .9 9               $ 9 4 ,4 2 9 ,1 0 2 .3 6 1 1 .2 8 %
          2004              $ 4 5 0 ,3 8 5 ,0 1 7 .9 2             $ 1 0 5 ,1 8 1 ,3 5 9 .7 6 2 3 .3 5 %
          2005              $ 5 3 8 ,8 6 5 ,3 0 7 .9 6               $ 4 3 ,3 4 7 ,4 7 8 .5 4    8 .0 4 %
     2 0 0 6 to d a te      $ 1 8 1 ,3 6 0 ,7 5 8 .0 4                 $ 9 ,6 9 0 ,0 0 7 .0 4   5 .3 4 %
                         $ 4 ,2 1 9 ,1 2 9 ,1 9 1 .9 8             $ 5 1 5 ,5 6 0 ,8 4 8 .9 0 1 2 .2 2 %

Note: Contracts include construction, resurfacing, mowing, striping and
other contract maintenance activities
     Status of Construction
     Lettings and Programs
       - Calendar 2005 -
• Year to Date Project Awards:
  – $380 million
• August 5 Letting (Pending Award)
  – $50 million
• Remaining 2005 Lettings
  – $300 to $350 million in projects anticipated
• Target 2005 Letting Total
  – $730-$780 million
     Status of Construction
     Lettings and Programs
       - Calendar 2005 -
• Resurfacing (30% increase)
  – $ 60 million let with $ 25 million remaining
  – Represents a $20 million increase over past
    years
• Federal Construction
  – $ 150 million let with $200 million remaining
• GARVEE Program
  – $ 22 million let with $35 million remaining
     Status of Construction
     Lettings and Programs
       - Calendar 2005 -
• State Construction
  – $ 40 million let
• State Bond Program
  – $ 70 million let with $130 million remaining
• Additional $75 million to cities and
  counties
     Status of Construction
     Lettings and Programs
       - Calendar 2005 -
• The 2005 Construction Program
  Represents the Restoration of a Strong
  Construction Program
• Historic Construction Letting Totals:
  – 2004: $ 460 million
  – 2003: $ 656 million
  – 2002: $ 694 million
  – 2001: $ 775 million * KYTC record year
    Federal Transportation
   Program Reauthorization!
• H.R. 3 establishes a guaranteed
  spending authority of $286.4 billion over
  six years
• Gives Kentucky an average annual
  federal apportionment of $632.7 million
  over FY 05-FY 09 compared to $485.5
  million for six years of TEA-21
• This represents a 30% increase in
  funding levels for Kentucky
    Federal Transportation
   Program Reauthorization!
• Over $350 million in special earmark
  projects are included for Kentucky in
  H.R. 3
• These funds are included in the $632.7
  million average annual federal
  apportionment noted for Kentucky
           Looking Ahead
• Vision: Continue Development of a Safe and
  Reliable Transportation System that Supports
  Kentucky's Future
   Economic Growth,
   National Competitiveness
   Overall Quality of Life

 Good roads open new economic development
     opportunities & improve accessibility to
  government services, education, employment,
     commerce, medical services & tourism
            Looking Ahead
• Safety: 964 people lost their lives on
  Kentucky's roadways last year and this trend
  has been increasing for the past 5 years.
  – Our highways are becoming more congested and
    our pavement conditions are deteriorating.
  – The increase funding measures and bonds will be
    critical for helping the KYTC to reverse these
    trends.
• Trend for 2005 looks promising!
  – 2005 Fatalities Year to Date (551)
  – 2004 Fatalities through same period (580)
            Looking Ahead
• Maintain a strong and sustainable
  transportation program for Kentucky
  – Sustain a trend of improving safety on our
    highways
  – Increase our maintenance funds to improve the
    condition, quality and character of our existing
    highway system
  – Improved Transportation Systems Management
  – Advance strategic mega-projects and corridors
    throughout Kentucky
           Looking Ahead
            (Continued)
• Working on 2006 Edition of the Six Year
  Highway Plan
  – Reflect new federal funding program
  – Cash management practices
  – Innovative financing
  – Strategic mega projects
    • Louisville Bridges
    • I-66 and I-69
    • Brent Spence Bridge
              Conclusion
• This year’s Partnering Conference
  comes at a Critical Time for Kentucky
• Strong Partnerships are needed with a
  Shared, Collective Vision for Kentucky’s
  Transportation System
  – KYTC
  – Federal Partners
  – Industry Partners

								
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