The Tom Warne Report
The Tom Warne Report, Volume 7, No. 22 - June 11, 2010        pdf PDF Archives
 

In This Issue

bullet New Player joins Race for High-Speed Rail to Vegas
bullet Ga. Gov. Signs Transportation Funding Measure
bullet Legislative Leaders’ Districts Packed with Road Projects
bullet Okla. Director: Budget Woes won’t Delay Projects
bullet Iowa approves $2.3B I-35 Widening Program
bullet $1.3B in Charlotte-Area Road Projects Planned
bullet Voters Reject Coronado Proposition H (California)
bullet INDOT Commissioner to Step Down

New Player joins Race for High-Speed Rail to Vegas

Associated Press – June 7, 2010

LAS VEGAS – A new competitor has joined the race to connect Las Vegas and Southern California with a high-speed rail line. The “Desert Lightning” has been proposed by Genesis High Speed Rail America LLC, and is unique in its route that includes an intersecting line from Phoenix, linking three southwest metro areas with one line. Desert Lightning would use 200 mph electric locomotion technology and a dedicated line, similar to DesertXpress, which is widely viewed as leading the race among five existing proposals in various and is reportedly ready to break ground this year on its Victorville, Calif.-to-Las Vegas line.

Genesis proposes a T-shaped route, running south from Las Vegas parallel with the Colorado River and U.S. 95, just east of Mojave National Preserve. Near I-10, it would intersect with an east-west line running parallel to the freeway between Phoenix and Los Angeles. The route may make the most sense long-term, connecting the three cities within an hour and a half of one another, and would also capture the Palm Springs, Calif. market.

Genesis chairman Duane Wilder said the group and its impressive list of investors is seeking approximately $35 million in federal funding to study whether it would be best to use proven Japanese technology or proven European technology. Wilder said once a study is complete, investors would help pay for the project’s estimated $35 billion to $40 billion cost.

Ga. Gov. Signs Transportation Funding Measure

Land Line Magazine – June 3, 2010

After three years of working on a transportation funding plan, a measure has been approved, which Gov. Sonny Perdue said will bring additional resources to invest in the state’s transportation network. The measure creates 12 separate election districts in the state. During the presidential primary election in two years, voters in each district will have the option to hike the sales tax by 1 cent to pay for transportation projects.

“We have worked extremely hard to bring a level of accountability never seen before in our transportation planning process,” said Governor Perdue. “Now, voters in each area of the state will have a chance to approve a plan that meets the needs of their area of the state while also connecting to the state’s transportation network.” The new transportation funding follows passage and implementation of Senate Bill 200, which was designed to transform how the state’s transportation program is run.

Districts that approve the tax increase will get new road and bridge funding, and those that reject it will not. Georgia currently ranks second-to-last in per capita transportation spending, in spite of significant population growth.

Legislative Leaders’ Districts Packed with Road Projects

Louisville Courier-Journal - June 3, 2010

Frankfort, Ky. – Top lawmakers in Kentucky routed the most transportation funding to their districts when the final state road plan was unveiled Saturday night. Republican Senate President David William’s district wound up with the largest funding boost from the legislative process that started in January with Gov. Steve Beshear’s transportation funding proposal. The governor’s Transportation Cabinet recommended $127 million for William’s six-county jurisdiction through the plan that extends through June 30, 2012.

The final plan, however, which was presented to lawmakers just before the special session concluded Saturday night, sent an additional $179 million to William’s district to total $306 million. The Floyd County district of House Speaker Greg Stumbo, R-Prestonsburg, had a funding increase from $23 million in the initial proposal to $63 million in the version passed Saturday night. Williams said the funding increase for his district is misleading since most of the projects in his region come from the funding source that will have the least amount of money through 2012.

The $6.7 billion road plan covers 1,100 projects for the remainder of the current fiscal year and two years following. Lawmakers acknowledged that the bill contains many more projects than will be funded. Acting Transportation Secretary Mike Hancock said that about $4.1 billion is anticipated to be available to pay for the $6.7 billion in projects.

Okla. Director: Budget Woes won’t Delay Projects

Bloomberg Businessweek – June 7, 2010

OKLAHOMA CITY – The Oklahoma Department of Transportation will not cut construction projects despite a reduction in state funds, the head of the agency told the state Transportation Commission June 7. ODOT Director Gary Ridley told the commissioners a number of factors will help keep construction projects on track, including staff reductions and cost-saving measures made over the past year; the legislature’s approval of bond sales for construction projects; and lower-than-expected bids on construction projects in recent months.

“We take a conservative approach each year in anticipating what our revenues will be, both state and federal, and try to come up with an estimate that is realistic but conservative,” Ridley said. “It’s worked well for us over the years.” He noted that the department’s staff is in the process of updating ODOT’s eight-year Construction Work Plan, balancing needs with expected revenue.

In all, commissioners awarded 44 contracts totaling $82.97 million to improve highways, interstates and roads in 36 counties. The projects include bridge replacements on state highways in Custer, Grady, Sequoyah and Washita counties.

Iowa approves $2.3B I-35 Widening Program

Des Moines Register – June 8, 2010

The Iowa Transportation Commission has approved plans to widen Interstate Highway 35 in West Des Moines from four to six lanes under a five year, $2.3 billion transportation program. Hundreds of projects across the state will be funded with state and federal funding between 2011 and 2015, focusing primarily on safety, maintenance and preservation. About $1.2 billion will be targeted for enhanced safety features and preservation during that time period.

Iowa Department of Transportation Director Nancy Richardson said the program is based on 2009 federal highway funding levels, as revenue through 2015 could not accurately be predicted until Congress passes a new federal highway spending bill. “Once an authorization bill is finally passed by Congress, revenue projections and the program will be adjusted accordingly,” Richardson said.

The five-mile I-35 widening project is expected to be completed by 2015. Other key projects in the plan include rebuilding the interchange at Interstate Highway 80 and U.S. Highway 65 in Altoona and the construction of a new Ankeny interchange at Northeast 36th Street and I-35. Both the Altoona and Ankeny projects will begin construction in 2011 and be finished in 2015.

$1.3B in Charlotte-Area Road Projects Planned

Charlotte Observer – June 4, 2010

CHARLOTTE – Construction on the final segment of I-485 Charlotte Outer Loop project will begin later this year, as the first piece of nearly $1.3 billion in highway projects planned for the Charlotte, North Carolina-area over the next 10 years.

“This innovative public-private partnership enables us to take advantage of the favorable construction market,” Transportation Secretary Gene Conti explained at the signing ceremony for the $139.5 million contract with Blythe Construction of Charlotte. “It allows us to build essential infrastructure now, when costs are low and value is high. It also means we can put people to work when the economy needs it most.”

Other planned projects include a high-speed interchange for I-485 and I-85 south of Concord Mills with several layers of bridges; a $150 million project to widen I-85 from Bruton Smith Boulevard to N.C. 73 to eight lanes; a $180 million project to replace the 55-year-old Yadkin River bridge northeast of Salisbury with an eight-lane bridge; and the $800 million Monroe Connector/Bypass project by the N.C. Turnpike Authority. The 20-mile project plans to construct a toll road to allow drivers to bypass the heavily congested U.S. 74 in Union County, with completion scheduled for 2014.

Voters Reject Coronado Proposition H (California)

Coronado Eagle & Journal – June 9, 2010

A measure requesting voter approval for $2 million to complete a study on traffic relief options on the State Route 75/282 corridor was decidedly rejected. Initiated in 1998, approximately $13.1 million has already been spent on the study which is 90 percent complete. More than two-thirds of Coronado voters in the June 8 California Primary Election were against the further study of traffic relief measures in the city, including a tunnel from the San Diego-Coronado Bridge to the San Diego Naval Base.

In 1998, 83 percent of voters responded they were in favor of pursuing a tunnel. Opponents of Proposition H said a tunnel would not solve traffic problems and would be an expensive project for which residents would have to pay. Proponents of the measure wanted the city to continue seek federal, state and local money to study solutions to the region’s congestion.

It would be interesting to know why the voters rejected Measure H. Was it because they are satisfied with the level of service they already get and don’t want to spend any more money? Or is it because they feel “taxed out” and don’t want to raise their assessments? A two-thirds vote against the measure is a definite sign of voter sentiment. TW

INDOT Commissioner to Step Down

Governor's News Release – June 9, 2010

INDIANAPOLIS - Governor Mitch Daniels said Wednesday that he has accepted the resignation of Indiana Department of Transportation (INDOT) Commissioner Mike Reed. Reed intends to return to employment in the private sector. Reed has been INDOT commissioner since February 2009.

Daniels has named Michael B. Cline, INDOT's deputy commissioner of operations, as the new INDOT commissioner. Cline joined INDOT in 2007 and has 21 years of management and engineering experience in the surface transportation industry. In his current role, he is responsible for 3,200 employees and manages a $290 million annual operating budget and $500 million annual capital budget.

The INDOT transition will occur on June 13.

Mike Reed led INDOT in their Major Moves capital improvement program and was at the helm as the agency launched into the construction of I-69 from Evansville to the north—55 miles of new interstate. It has been a period of significant investment for Indiana. We wish Mike the best in his new endeavors. The new Commissioner, Mike Cline, is a respected leader and engineer who will adeptly fill this important role in Indiana. He is a practical, common sense leader and has broad respect from throughout the industry. Congratulations to both Mike and Mike. TW
 
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