Welcome to the

AGC/ODOT

Annual Meeting

February 20, 2015

AGENDA

• Governor’s Transportation Initiatives

• Federal Surface Transportation Funding Update

• Seismic Bridge Program and Rough Roads Ahead

• Office of Civil Rights Updates

• Automated Machine Guidance

• Work Zone Safety and Speed Reduction Efforts

• Construction Streamlining Initiative

• Jobs Transportation Act Project Showcase

• AGC and ODOT Perspective

Reference Materials

Copies of all presentations and handouts

available at:

ODOT Construction website

http://www.oregon.gov/ODOT/HWY/CONSTRUCTI

ON/Pages/index.aspx

AGC website

http://www.agc-oregon.org/government-

affairs/heavyhighwayutility-contractors-council/

ODOT Industry Leadership Group

• ODOT and FHWA Representatives

• Industry Representatives

• AGC Highway Council Representatives

– Roadwork

– Bridges

– Specialty

– Specifications and Administration

ODOT Industry Leadership Team ODOT

Steven Cooley

Dan Anderson

Wynnette Gentemann

Tiffany Hamilton

Tom Lauer

Brenda Marcus

Bob Pappe

Angela Ramos

John Schnaderbeck

Joe Squire

Marge West

Industry

Alan Aplin

Tyrone Bailey

Larry Gescher

Brian Gray

Tim Hendrix

Kerry Kuenzi

Mark Matthews

Ric Miller

Dave Mingo

Jeff Moreland

Brad Sullivan

FHWA

Chris Bucher

2014 Leadership Group

Accomplishments

Accomplishments

• Steel Delivery CM001

– Offered options for accepting material that is more

commonly manufactured and available in western

United States.

• Subcontract Amendments CA001

– Offered guidance for the requirement of Prime

Contractor to submit any amendments or modifications

proposed to Agency-approved subcontracts agreements

at any tier.

• ODOT Form 734-1964 CA003

– Contractor’s request for subcontract consent allowance

to electronically transmit Form FHWA 1273.

Accomplishments (cont.)

• Partnering Agreement 150.05 is now

optional.

• Wage Zone Determination Calculator

• Notice to Contractors – “no advertisement

posted”

• DBE monthly Report

2015 Work Items

• Construction Streamlining Initiative

• e-Construction

• Plant Establishment Specification

• 2nd to 3rd Note Process

• Workforce Development Program

• Liquidated Damages Rate Review

ODOT Industry Leadership Meeting

Minutes are located at:

ODOT Construction website

http://www.oregon.gov/ODOT/HWY/CONSTRUCTI

ON/Pages/index.aspx

AGC website

http://www.agc-oregon.org/government-

affairs/heavyhighwayutility-contractors-council/

AGC/ODOT Annual Meeting Karmen Fore

Governor Kate Brown’s Office

February 20, 2015

Amos Switzer’s Farm Border of Oklahoma & Kansas

-Time Magazine, 1956

I-35W Bridge Minneapolis, MN

-August, 2007

I-35W Bridge Minneapolis, MN

-August, 2007

I-35W Bridge Minneapolis, MN

-August, 2007

I-35W Bridge Minneapolis, MN

-August, 2007

Federal Update

Oregon Department of Transportation

Trevor Sleeman | ODOT Federal Affairs Advisor

AGC/ODOT Annual Meeting

February 20, 2015

Salem Convention Center

Federal Surface Transportation Funding

3

10

12

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22

24

26

1975

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2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Mil

es P

er

Gallo

n

Fuel Efficiency of New Vehicles is Increasing Adjusted Fuel Economy for Model Year 1975-2013

Source: U.S. Environmental Protection Agency

4

Vehicle Miles Traveled are Down

Federal Funding: Stagnant and Uncertain B

illio

ns o

f D

olla

rs

Highway Account Revenue, Expenditures and Balance Source: U.S. Department of Transportation

-80.0

-60.0

-40.0

-20.0

0.0

20.0

40.0

60.0

80.0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Balance

Expenditures

Revenue

General Fund

6

Oregon’s Share: Highway Trust Fund Projection

0.0

100.0

200.0

300.0

400.0

500.0

600.0

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Oregon Federal Highway Funding (Millions of Dollars)

30% Federal Funding Adjusted by Pacific Northwest Construction Cost Index

30% Reduction

30% Reduction reflects impact of limiting expenditures from Highway Account to Revenues to the Account absent any Congressional Action to

$458

$321

$250

$175 (avg)

Oregon Highways

Seismic PLUS

Report

Presented by:

Paul Mather, ODOT Highway Division Administrator

Click to add text

The Oregon Resilience Plan

Required by the

legislature,

supported by

Governor

Comprehensive

plan, developing

a strategic

approach

Transportation is

critical

Concepts

Retrofit increases

resiliency if done

incrementally &

strategically

Secondary loss of

life and long term

economic losses can

be significantly

reduced

Strategic planning is

critical to success

and will require

widespread

consensus

Highway Bridge Losses

Moderate I-5 Marquam Bridge

Moderate I-405 Fremont Bridge

Collapse US 26 Ross Island Bridge

Collapse Astoria-Megler Bridge

Collapse US 30 Longview-Rainier Bridge

Collapse I-5 Interstate Bridge

Slight to

Moderate I-205 Glenn Jackson Bridge

Retrofitting progress First 16 years since vulnerability was identified

Years Actions

1994/1997 Prioritized total bridge needs 1155

1985-2012

Phase 1 retrofit added to projects

(STIP & OTIA III program) bridges addressed 355

Future Bridges still needing retrofitting

(About 200 years at current funding) 800

-Oregon Highway Seismic Options Report

• Minimize long term economic damage

• Address overall bridge condition

• Identify strategic lifeline routes

Route selection

Survivability • Emergency responders

• Critical care facilities

Life Support

• Critical care facilities

• Life support resources

• Evacuation routes

Economic Recovery • Critical freight corridors

• Mobility into and out of the region

• Routes between large metro areas

Recommended lifeline routes

Total Seismic PLUS Program Cost

Program Phases

Total Bridge Cost Landslides/Rockfalls Cost Total Seismic PLUS Program Costs

1 $738 Million $197 Million $935 Million

2 $632 Million $272 Million $904 Million

3 $612 Million $483 Million $1,095 Million

4 $640 Million $126 Million $766 Million

5 $1,432 Million $0 $1,432 Million

Total $4.1 Billion $1.0 Billion $5.1 Billion

Major Seismic Event: Isolated Areas

Total economic loss: $350 B

Isolated Zones: Phase 1 & 2 Scenario

Reduce economic loss by: $35 B

Isolated Zones: Full Seismic Program

Reduce economic loss by: $84 B

Non-distressed bridges with Seismic PLUS funding

levels

0%

20%

40%

60%

80%

100%

2010 2020 2030 2040 2050 2060

Perc

en

t N

on

-Dis

tress

ed

Year

Predicted Percent of Non-Distressed Bridges with 'Seismic Plus' Funding Levels (2010 - 2060)

Seismic Plus Current Funding Level

Out of 2681 State Owned NBI Bridges

80% Target

Cost = $5.1 Billion

Economic Loss Avoided = $250 Billion

We need to start NOW Transportation is key to the overall response

Seismic Retrofit by State

5147 Bridges

$13 Billion

416 Bridges

$177 Million

143 Bridges

$44 Million

Oregon Resilience Plan Recommendations

Begin immediately to prepare critical state highway

bridges and the transportation system to withstand a

major earthquake.

• Additional revenue be identified to complete the most critical routes.

• Funding source should be “pay as you go.”

• Research to ensure the most current technology and efficient methods are applied.

• Conduct a thorough inventory and assessment of transit, port and rail assets.

Presented by:

Paul Mather, ODOT Highway Division Administrator

Condition of

the System

ODOT Construction Programs

Data Source: Highway Budget Office, Revised 09/24/2014 (actuals through June 2014)

Pay a little now, or much more later

Pavement conditions fail as funding declines

Interstate Interstate Statewide Statewide Reg/Dist Reg/Dist

0%

20%

40%

60%

80%

100%

2012(Current) 2035 (Current)

Pa

ve

me

nt C

on

ditio

n, %

"fa

ir"

or

be

tte

r Pavement Condition - Current and Future

Approx. 2,300 miles more

poor pavement by 2035.

Only the Interstate will survive

Most bridges beyond design life

0

100

200

300

400

500

600

700

800

900

<1950 1950-1959 1960-1969 1970-1979 1980-1989 1990-1999 2000-2009 2010-2014

Nu

mb

er

of

Bri

dge

s

Bridges remaining in service

OTIA bridge investment needs to continue

Bridges need major new funding

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

2010 2020 2030 2040 2050 2060

Perc

en

t N

on

-Dis

tress

ed

Year

Predicted Percent of Non-Distressed Bridges with Variable Funding Levels (2010 - 2060)

$230M $50M

Out of 2681 State Owned NBI Bridges

80% Target

Critical 13%

Poor 20%

Fair/ Good 67%

Oregon’s highway assets

Condition

of Oregon’s

34,000 culverts

statewide

ODOT spends

$12.5 million per

year on culverts

today

$95 Million a

year to maintain

conditions to

today’s level

The hidden problem of culverts

More reactive

maintenance

More load

postings of

bridges

Roads posted as

rough-roads with

speed reductions

As money is diverted to

maintenance, less money is available

for projects

The system will deteriorate faster, and require more

funds in the future

Shifting maintenance priorities

Economic impacts of deterioration

Fewer future jobs

(more than

100,000 jobs

forfeited)

Reduced Oregon

Gross Domestic

Product (GDP)

Higher truck

freight and auto

vehicle operating

costs

Transportation moves the Oregon economy

Trucks carry over 70% of freight moving in Oregon

Nearly one-third of all trucked goods are shipped in

loads between 80,000-105,000 pounds

Truck

294 million tons, $185 billion value

Rail 47 million tons, $17 billion value

Water 48 million tons, $32 billion value

Pipeline 13 million tons, $3 billion value

Air 0.27 million tons, $17 billion value

Goods moved by heavy trucks are important for

Oregon’s economy

Heavy trucks carry many commodities

0% 5% 10% 15% 20% 25% 30% 35%

Other

Farm/Food products

Forest/Lumber/Furniture

Chemicals/Fuel/Ores

Pulp/Paper

Metals

Machinery/Instruments/Equipment

Sand/Stone

Waste

Textiles/Leather/Rubber

Share of State Tonnage

up to 64,000 lbs (15%)

64,000-80,000 lbs (53%)

80,000-105,500 lbs (31%)

over 105,500 lbs (1%)

Source: ODOT Special Weighings Truck data; 1997 Oregon Commodity Flow Survey.

Estimated jobs forfeited due to rising

transportation costs associated with declining

highway and bridge conditions

Highway conditions impact industry production Deteriorating conditions lead to:

By 2035

$94 billion

lost GDP

2035 – 2050 – an

additional $240

billion lost GDP

Poor bridge and pavement conditions mean

higher transportation costs

Additional travel

time due to

detours and

more congestion

Lighter loads and

more trucks to

move the same

weight and

amount of goods

Increased vehicle

operating costs

due to rough

pavement

Rough roads increase users costs Approximately $400 additional cost per year for a medium sedan

Bankrate.com

Estimated Costs

Cost Driving

on Smooth

Pavement

Cost Driving on

Very Rough

Pavement

Vehicle Repairs $380 $646

Gasoline $942 $1055

Annual Total $1322 $1701

Conclusions

Investing in the highway system to

maintain current conditions will support

Oregon’s economy

• Preserve more than 100,000 jobs

• Preserve industry production

• Avoid higher vehicle operating costs