Minnesota Department of TransportationARRA, Greater Minnesota Transit,

Airport Program Status, & Local Bridge Bonding Update

House TransportationFinance Committee HearingSeptember 23, 2009

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Mn/DOT Topics

Opening Remarks (Tim Henkel) ARRA (Road/Modes), TIGER, HSIPR Status (Jon Chiglo/Tim

Henkel) Greater Minnesota Transit Funding Status (Tim Henkel)

– Northstar operating funds– Rural Metro Area 5311 Fund eligibility– Shift in MVST Revenues from highways to transit in FY2010-2011

Airports Fund –program impact of $15 Million shift (Tim Henkel) Local Bridge Bonding - (Rick Kjonaas)

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BackgroundMinnesota ARRA Funds Received

ARRA Highway and Bridge Apportionment ($ millions)

SurfaceTransportation Program $150.7    Urban > 200K $73.2   200K-5K $61.8   < 5K $15.7STP any area (State Discretionary) $336.5  Enhancement $ 15.1

Total $502.3

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State and Local Highway Funds Authorized

Mn authorized 50% of flexible funds within 60 days of ARRA enactment

0.00

50,000,000.00

100,000,000.00

150,000,000.00

200,000,000.00

250,000,000.00

300,000,000.00

350,000,000.00

400,000,000.00

16-Mar 15-Apr 15-May 15-Jun-09

15-Jul 15-Aug

Do

llars

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Progress to Date: State and Local Highway Projects as of August 30

129 projects out to bid– $346,000,000

114 projects under contract– $310,000,000

102 projects have begun work– $242,000,000

24 projects completed– $37,000,000

3,448 Direct on-the-project jobs

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Progress to Date:Reporting

Highway Infrastructure Reporting Requirements include:

 Certifications– Section 1607 Request and Acceptance of Recovery Act funds– Section 1201 Maintenance of Effort– Section 1511 Projects have been fully reviewed and vetted

Monthly reports to FHWA– 1585 Project Plan – “certified projects” receiving ARRA funds,

project identification and environmental status – 1586 Project Status-construction start/completion status– 1587 Employment (Labor) Summary- jobs created/payroll paid– 1512 Quarterly Summary

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Progress to Date:Additional Reporting

Monthly report to the House Transportation and Infrastructure Committee: Program, Project, Labor Status

Minnesota Legislature – FHWA reports by District

Department of Labor (DOL)- Davis-Bacon and DBE

Office of Inspector General (OIG) – Auditing/Investigation

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ARRA - Modal Program Status

Transit5307 Funds - $73M to MN ($6M to Greater MN and $67M to Twin Cities MPO)

5311 Funds - $19M to MN ($13.701M to Greater MN, $5.299M transferred to urban areas

Aviation$20.749M in approved project fundingMN received more ARRA FAA airport funding than

any of our neighboring states!

Passenger RailApplied for Round 1 HSIPR program fundingMore applications will be submitted for Round 2 in Spring 2010

FreightDuluth Port ImprovementsMinnesota Valley Regional Rail AuthoritySt. Croix Valley Regional Rail Authority

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ARRA–Greater MN Transit

$19,029,588 Section 5311 appropriation– 50% obligated by 9/1/09– Balance obligated by 3/5/10

$ 7,414,000 – vehicles (57 vehicles purchased for 30 transit organizations)

$ 4,335,000 – facilities (4 facilities funded) $ 5,299,000 – transfer to urban areas $ 1,617,515 – metro rural areas $ 364,073 – ITS projects

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FRA’s HSIPR Program

High Speed Intercity Passenger Rail (HSIPR) Program Identified four “Tracks” for applying for funding Round 1

– Track 1, 3, and 4 applications due on August 24, 2009– Track 2 due on October 2, 2009

Round 2 in Spring 2010

Project Track Round Due Date

Service NEPA for Milwaukee, WI-Twin Cities, MN leg of MWRRI

3 1August 24, 2009

(Submitted)

St. Paul Union Depot Renovation 1 1August 24, 2009

(Submitted)

Milwaukee, WI-Twin Cities, MN leg of MWRRI 2 2 April 2010

Duluth- Twin Cities (Northern Lights Express) 2 2 April 2010

St. Cloud-Minneapolis (Northstar Phase II) 1 2 March 2010

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TIGER Grant

National Competitive Discretionary Grant Program (TIGER GRANTS) - $1.5B State Agencies and Local Units of Government can apply All surface transportation modes eligible Grants of $20-$300M

Timeline September 15, 2009 – Project applications due to USDOT Grant Submittals Include:

– BNSF Third Main Line– St. Croix River Crossing Project– Duluth Intermodal Project– Southern Rail Corridor– 494/169 and TH 13/101 Interchanges

Grant Awards – expected in early 2010

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Greater Minnesota Transit Funding Status

Transit Service Transit Coverage Northstar Operating Funds Status Metro Area Eligibility for 5311 Funds Bus Service Hour Projections

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Greater MN Transit

Outside the 7-county metro area 61 Transit Systems

– 12 multi-county– 23 municipal– 25 single county– 1 reservation

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200968 Counties with countywide service 8 Counties with municipal service only 4 Counties with no public transit service

Transit Coverage

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Greater MN Transit Funding Status

Northstar operating funds Rural Metro Area 5311 Fund eligibility Shift in MVST Revenues from highways to

transit in FY2010-2011

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Greater MN Transit Funding

Estimates 2008 2009 2010 2011

General Fund $18.8 $23.0 $17.3 $14.8

MVST $7.3 $7.7 $18.8 $17.8

MVST % 1.50% 1.75% 4.75% 4.00%

Total State Funds $26.1 $30.7 $36.1 $32.6

State fiscal years (July 1 – June 30)

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Greater Minnesota Transit Investment Plan

Assess public transit need by county Compare need versus the level of current service

“gap” by county Estimate the additional service hours to address

service gap Calculate the cost to address service gap Develop investment guidance based on local and

statewide priorities Determine an implementation timeframe

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Airports Fund: The Program Impactof the $15 Million Shift

2008(SFY 09) $15 Million transfer impacts:– Met obligations for Maintenance Grants– Reduced Navigational Aids Program by 50%– Canceled entire FY 09 Construction Program– FY 09 projects were moved to FY 10

Asked airports to submit new CIP’s for FY 10 to 14 Prioritized projects based on need and benefit:

– Preservation– Expansion– Maintenance– Safety

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Airports Fund: The future

Airport fund balance is targeted at $3 million

– Allows a program given fluctuations in the market such as

Bankruptcies Reduced revenue due to economic conditions

– Allows for good flexibility to leverage dollars with federal, local, or private dollars

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Mn/DOT Aeronautics

In coming year working on Statewide Airport System Plan– Evaluation of existing conditions– Establishment of statewide objectives– Performance measures set– Funding revenues forecasted

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Questions?

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