Transportation - Minnesota Senate
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Transcript Transportation - Minnesota Senate
Charlie Zelle, Commissioner
Minnesota Department of Transportation
February 10, 2014
Health…
the people
the environment
the economy
U.S Bureau of Economics:
MN ranked 5th among nation’s
fastest growing economies
Politico: MN ranked
2nd best state in the nation
What we do today impacts tomorrow:
Population will increase by 1M (2030)
Population is growing and changing
Truck freight increases 30% (2030)
Customers Increasingly value and rely on
transportation options
Other states are investing in transportation
50% state highway pavements are
over 50 years old
35% of MnDOT bridges are over
50 years old
MN 9th most extreme temperature
variations in the nation
Interstates in MN rank 38th in the
nation
5
Transportation Finance Advisory Committee (TFAC)
$50B in total needs over 20 years, all modes
To achieve an economically competitive system
Funding Needs:
Need $30B for the state highway system alone
Forecasts of $18B capital revenue over 20-years
Risk:
Need revenue source(s) that mitigate inflation risk
Deferred preservation of roads and bridges increases life cycle costs
Federal fiscal outlook increases state’s risk and responsibility
20 Year Funding Needs
System/Mode
Economically Competitive
FUNDING GAP
State Highway System*
$10.0 - 12.0
(Includes bike and pedestrian needs)
$500 mil- $600 mil AFG
County State Aid System
County System
$9.0
$450 mil AFG
$9.0
$450 mil AFG
Township Roads
Municipal State Aid System
$0.5
$2.0
$100 mil AFG
Municipal System
Greater Minnesota Transit
$8.0
$400 mil AFG
$0.9
$45 mil AFG
Metropolitan Area Transit
Passenger Rail
Freight - Rail and Ports
State Airports
$4.2
$210 mil AFG
$5.0 - 7.0
$250 mil -$350 mil AFG
$0.6
$30 mil AFG
$0.8
$40 mil AFG
Metropolitan Airports
Commission
Totals
$0.6
$30 mil AFG
$50.6 -$54.6
Source: TFAC 2012
Metro Area Multimodal Vision
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Loss of purchasing power, due to inflation
Increased life-cycle cost
Debt ceiling
9
Life Cycle
25%
20%
15%
10%
5%
0%
2012
2013
2014
2015
Debt Service
2016
2017
2018
2019
Debt Limit
12
Additional $12B investment over 20
years, yields $31B (average) benefit
ROI 2.5
Project types with the highest ROI:
◦ Active Traffic Management
◦ General Congestion Mitigation
◦ Safety Spot Improvements
13
Source: Smart Growth America Report
MnDOT is replacing or rehabbing 172 Bridges
Large-Scale Bridge Projects Shown – total costs are estimated
Desoto (TH 23) in St. Cloud over the Mississippi River (complete) – $39M
Robbin-Drayton (TH 11) of the Red River (complete) – $16.5M
Hastings (US 61) over the Mississippi River (underway) – $147.8M
Lafayette (US 52) in St. Paul over the Mississippi River (underway) – $172.4M
St. Peter (TH 99) over the Minnesota River (underway) – $3.5M
Dresbach (I-90) over the Mississippi River (underway) – $212.8M
Cayuga (I-35E) in St. Paul over Cayuga Street (underway) – $194.2M
St. Croix Crossing (TH 36) over the St. Croix River (underway) – $280M to
$310M
Winona (TH 43) over the Mississippi River (beings 2015) – $158.6M
Sorlie (US 2B) in East Grand Forks over the Red River (begins 2017) – $45.5M to
$61.5M
Baudette (TH 72) over the Rainy River (begins 2017) – $59.8M to $79.7M
Red Wing (US 63) over the Mississippi River (beings 2017) – $160M to $240M
New Ulm (TH 14) over the Minnesota River (begins 2017) – $44.1M to $51.4M
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MnDOT is completing other projects as well
Major Projects Utilizing Chapter 152 Bonds Shown – total costs are estimated
TH 55 Pavement Improvement from near Kensington to Glenwood - $11.8M
TH 60 two-to-four-lane conversion from Bigelow to Worthington - $68.9M
TH 169/I-494 Interchange - $170.0M
I-90 Concrete Overlay East of Rochester - $16.3M
I-35 Concrete Overlay from near Sturgeon Lake to Mahtowa - $17.3M
TH 11 Pavement Improvement from Frontier to Indus - $15.1M
TH 23 Mill and Overlay from Russell to Marshall - $21.7M
I-35 Bridges in Duluth - $88.6M
I-94 Interchange at Albertville - $11.3M
I-94 Lowry Hill Tunnel to John Ireland Blvd - $28.0M
US 169 Brooklyn Park - Interchanges, Bridges, etc. - $58.6M
Better Roads Program example - I-35 Maryland to University - $111.0M
Flood Mitigation example - Realign Hwy 75; new bridge near Kent - $10.4M
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Performance-based design projects (Hwy 169/494, TH100 near Hwy 7)
MnPASS Lanes
Innovative Construction Methods – Maryland & Hastings Bridges
Both projects benefited from ‘08 (Chapter 152) funding
HASTINGS BRIDGE: $120M. New bridge was built next to the old structure to keep
the river crossing open to travelers and avoid a 47-mile detour.
Original bridge
Float down the river 9/12/12
Lifted into place 60 hours later
Completed bridge
16
Enhancing
Financial Effectiveness
◦ MnDOT runs the equivalent of a multi-billion dollar
project execution and services business
◦ Focused on being effective, accountable, transparent
and efficient
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Seek a sustainable, long-term solution
Addresses inflation risk
Upholds tenets of user pay
Discussions underway
Apply general sales tax rate to wholesale gas receipts to
hedge against inflation?
Restructure Tab Fees?
Redirect sales tax collected on leased vehicles; auto
parts, etc. to non-trunk highway transportation needs?
Next generation revenue sources?
Thank you
Comments / Questions