The Highway Fund – Planning, Measuring, and Reporting

Mike Holder, PE, Chief Engineer 2015 CAPA / DOT Workshop February 24, 2015

Funding Allocations For Maintenance, Preservation, and Construction Activities

Federal Funding • Interstate Maintenance • Bridge Program State Highway Funds • Bridge Program • Highway Maintenance • Contract Resurfacing • Pavement Preservation Program • Secondary Road Paving Program • Small construction • Public access • Spot safety • Contingency 2

Federal Funding

Interstate Maintenance Program • $100M/yr • Pavement $91M • Bridge $9M Bridge Program • FFY 2016 $100M • FFY 2017 $75M • FFY 2018 $50M 3

Highway Maintenance (FY 2015 = $514.7M)

• Distributed by: • Primary System • Secondary System • General Maintenance Reserve • Serves as primary funding source for all routine highway and bridge maintenance operations • Funds allocated to highway divisions by needs-based formulas • Some funds set aside for snow and ice removal and emergencies 4

Allocation Formulas

Primary and Secondary Road Maintenance

Division Needs Statewide Needs + Division Administration

Statewide/Division Needs Calculation For Assessed Needs:

Funds Needed to bring assets to current target.

Examples: Bridges, Pavement, Unpaved Shoulder, Ditches, Ground Mounted Signs, etc.

Division Administration

Landscaping Incident Management Rest Areas Traffic Signalization

For Non-Assessed Needs:

B ased on cyclical cost or historical expenditure data

Examples: Mowing, Litter, Guardrail, Unpaved Roads

5

Primary Allocation Example: Division 5

Division Needs Statewide Needs X Statewide Allocation + Division Administration $35,367,693 $501,471,677 X $37,042,462 + $6,253,894

= $8,866,417

6

General Maintenance Funding

$600 000 000,00 $500 000 000,00 $400 000 000,00 $300 000 000,00 $200 000 000,00 $100 000 000,00 $0,00 2004 2005 2006 2007 2008 Allocation 2009 2010 CPI Adjusted 2011 2012 2013 2014 2015 7

Challenges

Material Costs • Asphalt (+133%) • Salt (+134%) • CRS2 (+162%) Unit Costs • Patching (-8%) • Pipe Installation (+35%) • Guardrail Installation (+114%) • Striping (+50%) 8

What does North Carolina’s System Look Like?

• • • • System size second only to Texas Approximately 60,000 miles on Secondary Paved System; 50,000 have less than 2000 vehicles/day 54% have Plant Mix 44% have Asphalt Surface Treatment 9

Contract Resurfacing

• FY

2015 = $408M • Needs assessed through pavement condition survey • 100% of pavements surveyed • Formula for annual distribution to Divisions: Division Needs Statewide Needs 10

Contract Resurfacing Allocation Example: Division 5

Division Needs Statewide Needs X Statewide Allocation $40,225,895 $411,479,733 X $405,548,088

= $39,646,023

11

Resurfacing

• • • • Single lift of hot mixed asphalt Pavement is in fair to good condition Patching of failed localized areas for good performance Requirement to let to contract 70% of program funds by Sept 1, 2016 12

• Contract Resurfacing Letting List

Contract Resurfacing Let List • https://connect.ncdot.gov/letting/12%20Month%20Tentative %20Letting%20Library/CR-12LL-Feb16-2015.pdf

Pavement Preservation

• FY 2015 = $65M

• Formula: Division Needs Statewide Needs

Based on Pavement Condition Ratings

15

Pavement Preservation Example: Division 5

Division Needs Statewide Needs X Statewide Allocation $7,276,628 $100,947,331 X $65,045,024

= $4,688,667

16

Why Pavement Preservation?

Cost Effective Approach

• Planned vs. Reactive Strategy • Up to a 6 to 1 savings ratio vs. “worst first”

Good Pavements Stay Good

• Prevents failures before they occur • Results in smoother, safer roads • Reduces vehicle operations costs • Improved highway/user satisfaction • Reflects favorably on agency and paving industry 17

Pavement Preservation Outsourcing

2014-2015 Budget: $65 Million Funds allocated for pavement preservation should meet the following targets: Mileage requirement: 4300 lane miles Outsourcing requirement: FY 2015 : FY 2016 : FY 2017 : FY 2018 : 20% 30% 55% 80% 18

Pavement Preservation Outsourcing

Funds allocated for pavement preservation should meet the following targets: • • FY 2014-2015 2150 lane miles paved by June 30, 2015 4300 lane miles paved by the end of the 2015 paving season • FY 2015-2016 4300 lane miles paved by June 30, 2016 19

Statewide Summary

Treatment Type

Chip Seals Slurry Seal Fog Seal Sand Seal Scrub Seal Cape Seal Microsurfacing Profile Milling Overlay Less Than 1,000 ft in Length Diamond Grinding Joint Sealing Dowel Bar Retrofit

STATEWIDE SUMMARY Anticipated Total Amount ($) Anticipated Amount Performed by Contract ($)

$51,970,624.28 $26,263,987.00

$60,500.00

$60,500.00

$469,889.11

$0.00

$469,889.11

$0.00

$0.00

$930,500.00

$899,787.21

$0.00

$0.00

$930,500.00

$899,787.21

$0.00

Anticipated % Performed Anticipated State Force by Contract Lane Miles

51% 100% 100% 0% 0% 100% 100% 0% 2142 0 0 0 0 0 0 0 $1,160,000.00

$0.00

$100,000.00

$425,000.00

$850,000.00

$0.00

$0.00

$377,871.00

73% 0% 0% 89% 2 0 5 0

Anticipated Contract Lane Miles

1478.41

3.80

147.04

0.00

0.00

34.00

42.98

0.00

13.00

0.00

0.00

9.58

Partial/Full-Depth repairs and reclamations Thin Lift and Sand Asphalt Overlays $3,195,900.00

$5,787,799.40

$1,725,900.00

$5,508,377.40

54% 95% 268 0 66.30

156.00

TOTALS: $65,000,000.00

$37,086,811.72

57% 2417 4368.11

1951.11

** Note there are no asphalt rejuvenating, open graded asphalt friction course or ultra-thin white topping activites planned at this time for FY 2014-15 20

• • • •

Rehabilitation

Pavement is in poor condition Traffic volumes exceed current strength Pavement is structurally inadequate Can be funded from Contract Resurfacing 21

Final FY15 Funding By Category

Bridge Preservation $153.0M

Primary $140.8M

Pavement Preservation $65.0M

Secondary $262.8M

Contract Resurfacing $408.1M

General Maintenance Reserve $111.1M

22

Staffing Study – Transportation Divisions

Consolidated Division functions for smaller organization structure Increased Worker to Supervisor Ratios Increase Construction Engineering Inspection outsourcing 4 –year Plan for Increased Outsourcing of Pavement Preservation Continued Assessment for Needs Based Staffing 23

Funding

Categories: i. Contract resurfacing (Primary and Secondary) Interstate pavement resurfacing ii. Pavement preservation iii. Routine highway, bridge and pavement maintenance, and culverts Primary Secondary iv. Disasters and emergencies Primary Secondary v. Structurally sound bridge preservation Primary Secondary vi. Structurally unsound bridge rehabilitation, repair or replacement.

Primary Secondary Total Need $411,480,000 $101,000,000 $100,947,000 $899, 127,000

$456,514,000 $442,613,000

$74,133,000

$43,443,000 $30,670,000

$60,000,000

$48.000,000 $12,000,000

$325,000,000

$195,000,000 $130,000,000

$1,870,668,000 State Allocation $408,173,000 $65,045,000 $439,413,000

$154,626,000 $284,796,000

$56,500,000

$33,118,000 $23,382,000

Federal Allocation $91,000,000 $153,008,000 $191,000.000

$91,805,000 $61,203,000

$1,122,139,000 $282,000,000 Impact

Currently fully funded Pavement lives will shorten, condition visibly degrading in next 4-5 years Targets continue not to be met. Targets and priorities to be reviewed to optimize current funding levels and enable consistent application across the State.

Shortfalls will be addressed using routine maintenance funds. Further reducing the abilities to meet targets.

More of our bridges will become structurally deficient as they exceed their average replacement age at higher rates than previously seen 24

Needs

• • • Increased resurfacing funding for pavement rehabilitation Increased pavement preservation funding Increased maintenance funding flexibility 25

Highway Maintenance Improvement Plan

• • • • • Includes: Year work is to be completed Specific roadways in each county Specific sections of roadways to be treated Type of treatment applied Estimated cost

Plan Year

FY 2016 FY 2016

County

Bertie Bertie

Route

SR 1107 US 17

Begin Description

SR 1106 NC 308 + 1.793 miles

End Description

END MAINT SR 1001 + 1.082 miles

Length

0.880

Budget Group

Preservation 2.000

Resurfacing

Treatment

Split Seal Mill 1.5" & Replace (B Level)

Estimated Cost

$ 35,000.00 $397,750.00 FY 2016 Bertie US 17 .4 mile E NC 308 NC 308 + 1.793 miles 1.793

Rehabilitation Mill 1.5" & Replace / 1.5" Overlay (B Level) $354,750.00 (Sample from Division 1) 26

Future HMIP Cycles • • • • • •

Divisions report delivery of Year 1 Divisions modify Years 2 & 3 as necessary Year 2 & 3 become new Years 1 & 2 Divisions add a new Year 3 in consultation with PMU Board adopts new 3-year HMIP New HMIP posted on web by April 1, 2016 27

Legislative Directives - Summary

• Report on the condition of the State highway system and maintenance funding needs • GS 136-44.3 • MOPAR delivered January 2015 • Annual Highway Maintenance Improvement Program • GS 136-44.3A • First one to be delivered on April 1, 2015 • Pavement Preservation Outsourcing • GS 136-44.17

• Annual Report due December 1 of each year • Contract Maintenance Resurfacing Program Letting Schedule • SL 2014-100, Section 34.11(e) • 70% of the FY 2016 program funds must be let to contract by September 1, 2016 • Staffing Study for Transportation Divisions • SL 2014-100, Section 34.16(a) and (b) 28